# PUMA CAPITAL, LLC X-17A-5 (2024-02-27) — Broker-dealer annual report - Company: PUMA CAPITAL, LLC - Form: X-17A-5 - Filed: 2024-02-27 - Period: 2023-12-31 - Accession: 0001428740-24-000001 - CIK: 1428740 - File #: 8-67849 - Type: Broker-dealer - Material weakness: No - Auditor: WithumSmith Brown PC - Auditor location: New York, NY - Contact: Joshua Greenstein - Phone: 212-896-2844 - Email: jgreenstein@pumacap.com - Website: pumacap.com - Signed by: Joshua Greenstein (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1428740/000142874024000001/puma23s.pdf --- {0}------------------------------------------------ # **Puma Capital, LLC** Statement of Financial Condition Pursuant to Rule 17A-5 under the Securities Exchange Act of 1934 December 31, 2023 {1}------------------------------------------------ ## UNITED ST A TES 0MB APPROVAL SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 # **ANNUAL REPORTS FORM X-17A-5 PART III** 0MB Number: 3235·0123 Expires: Oct. 31, 2023 Estl mated average burden hours per response: 12 SEC FILE NUMER 8- 67849 | FTLING FOR THE PERIOD BEGINNING O 1/01 /23 | Information Required Pursuant to Rules 17a-5, 17a-12. and lSa-7 under tJ1e Securities Exchange Act of 1934 | AND ENDlNG 12/31 /23 | | | |--------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|-----------------------------------------|------------|--| | | MM/DD/VY | | MM/DD/VY | | | | A. REGISTRANT IDENTIFICATION | | | | | ___
NAME oF FIRM: | P_u_m_a_C_a_p_it_a_l _L_L_C | ____________ | _ | | | TYPE OF REGISTRANT (check all applicable boxes):
I& Broker-dealer
D Check here if respondent is also an OTC derivatives dealer | D Security-based swap dealer | D Major security-based swap participant | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | | 555 Theodore Fremd Avenue, Suite 204 | | | | | | | (No. and Street) | | | | | New York | NY | | 10520 | | | (City) | (State) | | (Zip Code) | | | PERSON TO CONTACT WITH REGARD TO TH IS FILING | | | | | | Joshua Greenstein | (212) 896-2844 | jgreenstein@pumacap.com | | | | (Name) | (Area Code - Telephone Number) | (Email Address) | | | | | B. ACCOUNTANT lDENTIFICATION | | | | | | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | | | WithumSmith+Brown, PC | | | | | | | (Name - if individual, state last, first, and middle name) | NY | 10018 | | | 1411 Broadway 9th floor | New York | | | | | | (City) | (State) | (Zip Code) | | | (Address)
10/8/03
(Date of Registration with PCAOB)(if applicable) | | 100 | | | Persons who are to rcSJ>Ond to the colleclion of information contained in this form are not required to resJ)ond unless the form disJ>lays a currently valid 0MB control number. • Claims for exemption from the requirement thar the annual reports be covered by lhe reports of an independent public accountant must be supported by a statemem of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240. I 7a-5(e)( l)(ii), if applicable. {2}------------------------------------------------ #### AFFIRMATION l, Joshua Gre enstein , swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to Puma Capital LLC as of 12/31/23 , is true and correct. I further swear (or affirm) that neither the company nor any partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely as that of a customer. Title SERGIO LOPE; NEW yQf\K suc-sTAi E o NOiAf\Y PU L00005658 No. Qi h ster countV .. d\ w aste e 027 0ua\1fle n . es 04· i 4-2 mission £xp1r iJiyCom {3}------------------------------------------------ # **This filing\*\* contains (check all applicable boxes):** - ill (a) Statement of financial condition. - ill (b) Notes lo unconsolidated or consolidated statement of financial condition, as applicable. - D (c) Statement of income (loss) or, if there is other comprehensive income in the period(s) presented, a statement of comprehensive income (as defined in § 210. 1-02 of Regu lation S-X). - D ( d) Statement of cash nows. - D (e) Statement of changes in stockholders' or partners' or members' or sole proprietor's equity, as applicable. - D (f) Statement of changes in liabilities subordinated to claims of creditors. - D (g) Notes to unconsolidated or consolidated financial statements .. as applicable. - D (h) Computation of net capital under 17 CFR 240. l 5c3- I or 17 CFR 240. l 8a- l. as applicable. - D (i) Compu1a1io11 of tangible net worth under 17 CFR 240. l 8a-2. - D U) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240. I 5c3-3. - D (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B lo 17 CFR 240. l 5c3- 3 or Exhibit A lo 17 CFR 240. I 8a-4, as applicable. - D (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240. l 5c3-3. - D (m) Information relating to possession or control requirements for customers under I 7 CFR 240. l 5c3-3. - D (n) Information relating to possession or control requirements for security-based swap customers under I 7 CFR 240. l 5c3- 3(p)(2) or I 7 CFR 240. I 8a-4, as applicable. - D (o) Reconciliations. including appropriate explanations. of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240. I 5c3- I, I 7 CFR 240. l 8a- I. or 17 CFR 240. l 8a-2. as app licable, and the reserve requirements under I 7 CFR 240. I 5c3-3 or I 7 CFR 240. I 8a-4, as applicable, if material differences exist. or a statement that no material differences exist. - D (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - ill (q) Oath or affirmation in accordance with 17 CFR 240. I 7a-5, 17 CFR 240. I 7a-12. or 17 CFR 240. I 8a-7. as applicable. - D (r) Compliance report in accordance with 17 CFR 240. I 7a-5 or 17 CFR 240. l 8a-7. as applicable. - D (s) Exemption report in accordance with 17 CFR 240. I 7a-5 or 17 CFR 240. I 8a-7, as applicable. - CEJ (t) Independent public accountant's report based on an examination of the statement of financial condition. - D (u) lndependent public accountant ·s report based on an examination of the financial report or financial statements under 17 CFR 240. I 7a-5. 17 CFR 240. J 8a-7, or 17 CFR 240. J 7a- l 2. as applicable. - D ( v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240. I 7a-5 or 17 CFR 240.18a-7, as applicable. - D (w) lndependent public accountant's report based on a review of the exemption report under 17 CFR 240. I 7a-5 or 17 CFR 240. l 8a-7, as applicable. - D (x) Supplemental reports on applying agreed-upon procedures. in accordance with I 7 CFR 240. I 5c3- I e or 17 CFR 240. I 7a-l 2, as applicable. - D (y) Report describing any material inadequacies found to exist or found to have existed since the date of the previous audit, or a statement that no material inadequacies exist. under 17 CFR 240. I 7a-J 2(k). D (z) Other:------------------------------------- - *\*\*To request confidential lreatmenl of certain portions of lhisflling, see 17 CFR 2./0.l 7a-5(e)(J) or 17 CFR 240.* J *8a-7(d)(2), as applicable.* {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) # **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Managing Members and Those Charged With Governance of Puma Capital, LLC: #### Opinion on the Financial Statement We have audited the accompanying statement of financial condition of Puma Capital, LLC (the "Company") as of December 31 , 2023, and the related notes ( collectively referred to as the "financial statement"). In our opinion, the financial statement presents fairly, in all material respects, the financial position of the Company as of December 31 , 2023, in conformity with accounting principles generally accepted in the United States of America. #### **Basis for Opinion** This financial statement is the responsibility of the Company's management. Our responsibility is to express an opinion on this financial statement based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statement, whether due to error or fraud, and performing procedures that respond to those risks . Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statement. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statement. We believe that our audit provides a reasonable basis for our opinion. We have served as the Company's auditor since 2014. New York, New York February 26, 2024 {5}------------------------------------------------ # **Puma Capital, LLC** # **Statement of Financial Condition December 31, 2023** | ASSETS | | |-------------------------------------------------------|-----------------| | Cash | \$
588,584 | | Due from clearing fams, including deposits | 4,512,098 | | Receivables from brokers | 1,107,243 | | Investments owned, at [air value | 181,843 | | Property and equipment, net | 146,451 | | Operating lease right-of-use assets | 515,819 | | Other assets | 297,049 | | | \$
7,349,087 | | LIAB
ILITI
ES AND MEMB
ERS' EQUITY | | | Securities sold, but not yet purchased, at fair value | \$
47,362 | | Operating lease liabilities | 561,765 | | Accounts payable and accrued expenses | 506,484 | | Compensation payable | 1,115,981 | | Total liabilities | 2,231
,592 | | Members' equity | 5,1 17,495 | | | \$
7,349,087 | The accompanying notes are an integral part of this statement of financial condition. {6}------------------------------------------------ # **l. Nature of operations** Puma Capital, LLC (the '·Company"') was formed on February 9, 2007 under the laws of the state of Florida and is a broker-dealer registered with the Securities and Exchange Commission (the ··SEC") and a member of the Financial Industry Regulatory Authority ("FINRA''). Additionally. the Company is a member of CBOE EDGA and EDGX Exchanges. NYSE Arca Inc. and the NASDAQ Stock Market. The Company acts as a market maker and holds shares of a particular equity security in order to facilitate trading in that security. Additionally, the company serves as an institutional agency broker, specializing in the execution of complex option strategies involving listed equities and options. #### **2. Summary of significant accounting policies** #### **Basis of presentation** These financial statements were prepared in conformity with accounting principles generally accepted in the United States of America ('"US GAAP .. ) which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. #### **Revenue recognition** The Company recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance requires an entity to fol low a five-step model to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract. and (e) recognize revenue when (or as) the entity satisfies a performance obligation. In determining the transaction price. an entity may include variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the unce,tainty associated with the variable consideration is resolved. This revenue recognition guidance does not apply to revenue associated with financial instruments and interest income. #### *Significant Judgments* Revenue from contracts with customers includes comm1ss1on income. The recog111t1on and measurement of revenue is based on the assessment of individual contract terms. Significant judgment is required to determine whether performance obligations are satisfied at a point in time or over time; how to allocate transaction prices where multiple performance obligations are identified: when to recognize revenue based on the appropriate measure of the Company's progress under the contract; and whether constraints on variable consideration should be applied due to uncertain future events. {7}------------------------------------------------ ### **2. Summary of significant accounting policies (continued)** #### *Securities revenue and execution and clearing costs* The Company buys and sells securities on behalf of its customers. Each time a customer enters into a buy or sell transaction. the Company charges a commission. Commission income, gains and losses on proprietary trading and related clearing expenses are recorded on the trade date. The Company has determined that the performance obligation is satisfied on the trade date because that is when the underlying financial instrument, and counter parties are identified, the pricing is agreed upon and the risks and rewards of ownership have transferred to/from the customer. Realized and unrealized gains and losses are reflected in net gain on principal transactions in the statement of operations. Disaggregation of revenue, for the year ended December 31. 2023, can be found on the accompanying statement of operations. #### *Contract assets and liabilities* The Company had outstanding receivables. from brokers relating to commission revenue aggregating \$1,510,844 and\$ I, I 07,243 at January J, 2023 and December 31. 2023, respectively. Substantial ly all balances at January I, 2023 have been collected during the period. The Company had no contract assets or liabilities at January I, 2023 or December 31. 2023. #### **Cash** All cash deposits are held by one financial institution and therefore are subject to the credit risk at that financial institution and may at times exceed amounts insured by the Federal Deposit Insurance Corporation. The Company has not experienced any losses in such accounts and does not believe there to be any significant credit risk with respect to these deposits. #### **Receivables from brokers** Receivables from brokers are comprised of amounts due for processed trades. #### **Valua tion of investments in securities at fair** - **definition and hierarchy** US GAAP requires the Company to report its investments in securities at estimated fair value on a recurring basis. Fair value is defined as the price that the Company would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent counter-party in the principal market or in the absence of a principal market, the most advantageous market for the investment or liability. A three-tier hierarchy was established to distinguish between (l) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the reporting entity ( observable inputs) and (2) inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances (unobservable inputs); and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Company's investments. The hierarchy is summarized in the three broad levels listed below. {8}------------------------------------------------ #### **2. Summary of significant accounting policies (continued)** - **Levell** - quoted prices in active markets for identical investments - **Level 2** - other significant observable inputs (including quoted prices for similar investments, interest rates, credit risk, etc.) - **Level 3** - significant unobservable inputs (including the Company's own assumptions in determining the fair value of investments) #### **Valuation techniques** - **exchange traded securities** Securities and other investments traded on a national exchange or on the national market system of NASDAQ are valued at their last reported sale price or, if there has been no sale on that date, at the closing "bid" price if long, or closing "ask" price if short. Other securities or investments for which over-the-counter market quotations are avai lable are valued at their last reported sale price or, ifthere had been no sale on that date. at closing "bid" price if long, or closing "ask" price if short as reported by a reputable source selected by the Company. Exchange-traded securities are generally categorized in Level I of the fair value hierarchy, with those exchange-traded securities trading less than actively, categorized in Level 2. #### **Property and equipment** Property and equipment are recorded at cost, net of accumulated depreciation and amortization, which is calculated on a straight-line basis over estimated useful lives of three to seven years. Leasehold improvements are amortized on a straight-line basis over the lease term, which may be shorter than the useful Ii fe of the asset. #### **Income taxes** The Company is treated as a partnership for federal and state income tax purposes. Consequently, these jurisdictional income taxes are not payable by the Company. Members are taxed individually on their share of the Company's earnings. The Company's net income or loss is allocated among the members in accordance with the operating agreement of the Company. The Company assesses its tax positions in accordance with "Accounting for Uncertainties in Income Taxes" as prescribed by the Accounting Standards Codification, which provides guidance for financial statement recognition and measurement of uncertain tax positions taken or expected to be taken in a tax return for open tax years (generally a period of three years from the later of each return's due date or the date filed) that remain subject to examination by the Company's major tax jurisdictions. The Company assesses its tax positions and determines whether it has any material unrecognized liabilities for uncertain tax positions. The Company records these liabilities to the extent it deems them more likely than not to be incurred. Interest and penalties related to unce11ain tax positions. if any, would be classified as a component of income lax expense. At December 3 1, 2023, management has determ ined that the Company had no uncertain tax positions that would require financial statement recognition. This determination wi II always be subject lo ongoing reevaluation as facts and circumstances may require. {9}------------------------------------------------ #### **2. Summary of significant accounting policies (continued)** #### **Leases** The Company recognizes its leases in accordance with ASC Topic 842, Leases ("ASC 842"). The guidance increases transparency and comparability by requiring the recognition ofright-of-use assets and lease liabilities on the statement of financial condition. The Company conducts an analysis of contracts, including real estate leases and service contracts to identify embedded leases, to determine the initial recognition of right-of-use assets ("'ROU") and lease liabilities, which required subjective assessment over the determination of the associated discount rates. The discount rate is the implicit rate if it is readily determinable or otherwise the Company uses its incremental borrowing rate. The implicit rates of the Company's leases are not readily determinable and accordingly, the Company uses its incremental borrowing rate based on the information avai lable at the commencement date for all leases. The Company's incremental borrowing rate for a lease is the rate of interest it would have to pay on a collateralized basis to borrow an amount equal to the lease payments under simi lar terms and in a similar economic environment. The Company has elected, for all underlying classes of assets, to not recognize ROU assets and lease liabilities for short-term leases that have a lease term of 12 months or less at lease commencement, and do not include an option to purchase the underlying asset that the Company is reasonably certain to exercise. The Company recognizes lease costs associated with short-term leases on a straight-line basis over the lease term. The Company's office space leases require it to make variable payments for the Company's proportionate share of the building's property taxes, insurance, and common area maintenance. These variable lease payments are not included in lease payments used to determine lease l iabilities and are recognized as variable costs when incurred. Other information related to leases as of December 31, 2023 are as follows: | Weighted average remaining operating lease term | 3.28 years | |----------------------------------------------------|------------| | Weighted average discount rate of operating leases | 5.16% | The commencement of a new lease resulted in the recording of an operating right-of-use and operating lease liability of\$56.601 during 2023. {10}------------------------------------------------ # **2. Summary of signilicanl accounting policies (continued)** #### **Allowance for Credit Losses** ASC Topic 326. Financial Instruments - Credit Losses ("·ASC 326"') impacts the impairment model for certain financial assets by requiring a current expected credit loss ("CECL") methodology to estimate expected credit losses over the entire life of the financial asset. Under ASC 326. the Company could determine there are no expected credit losses in certain circumstances (e.g., based on the credit quality of the client). The allowance for credit losses is based on the Company's expectation of the collectabi lity of its receivables utilizing the CECL framework. The Company considers factors such as historical experience, credit quality, age of balances and current and future economic conditions that may affect the Company's expectation of the collectability in determining the allowance for credit losses. The Company identified commissions receivable and amounts due from clearing broker as potentially impacted by the guidance. The Company"s expectation is that the credit risk associated with its commissions receivable and amounts due from clearing broker are not significant and accordingly. the Company has not provided an allowance for credit losses at December 31, 2023. #### **Due from clearing firms** The Company has a required deposit of \$500,000 and incurs a monthly minimum clearing fee paid to the clearing firm in accordance with the Correspondent Clearing Agreement. The deposit is included in due from clearing broker in the accompanying statement of financial condition. #### **Securities sold, but not yet purchased** At December 31, 2023, securities sold, but not yet purchased, consisted primarily of United States and Foreign corporate equities. Subsequent market fluctuation may require the Company to purchase these securities at prices which exceed the carrying value in the accompanying statement of financial condition. Additionally, the securities owned and the cash held by the clearing broker serves as collateral for rhe short-sale liabil ity. {11}------------------------------------------------ #### **3. Fair value measurement** The following table presents information about the Company's assets measured at fair value as of December 3 I , 2023 : | | Quoted prices
in active
markets for
identical ass
e ts | | Significant
other
observable
ineuts | | Significant
unobservable
inputs | | Total | | |--------------------------------------------------|--------------------------------------------------------------------|---------------|----------------------------------------------|------|---------------------------------------|-----------|-------|---------| | | | (Leve
l I) | (Leve | l 2) | | (Level 3) | | | | Asse
ts at fair value | | | | | | | | | | Equity securities owned | \$ | 181,843 | \$ | | \$ | | \$ | 181,843 | | Liabilities at fair value | | | | | | | | | | Equity securities sold, but not
yet purchased | \$ | 47,362 | \$ | | \$ | | \$ | 47,362 | | Property and equipment | | | | | | | | | | Property and equipment at December 31 | | | , 2023 consists of: | | | | | | | Computer equipment | | | | | \$442,019 | | | | | Purnrture and fixtures | | | | | 218,371 | | | | | Leasehold improvements | | | | | | 35,490 | | | | Computer software | | | | | 201 ,668 | | | | | | | | | | 897,548 | | | | | Less: Accumulated depreciation and amortization | | | | | 75 | 1,097 | | | ## **5. Related party transactions** **4.** The Company receives management and administrative services. from an entity affiliated by virtue of common control ("Affiliate''). In this regard. the Affiliate incurs operating expenses and provides faci Ii ties for the Company in consideration of an administrative service fee. At December 3 1, 2023, there were no amounts due to the Affiliate. \$146,451 The terms of these arrangements may not be the same as those that would otherwise exist or result from agreements and transactions among unrelated parties. {12}------------------------------------------------ #### **6. Regulatory requirements** The Company is subject to SEC Uniform Net Capital Rule I Sc3-I under the Securities Exchange Act of 1934, which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to I. At December 31, 2023, the Company had net capital of approximately \$3,892,000 which exceeded the required net capital by approximately \$2,892,000. The ratio of aggregate indebtedness to net capital, at December 31. 2023 was .43 to l . The Company operates in a highly regulated industry and from time to time they are involved in regulatory inquiries. The Company is exempt from the provisions of Rule l 5c3-3 under the Securities Exchange Act of 1934 as the Company's activities are limited to clearing al l transactions with and for customers on a fu lly disclosed basis with a clearing firm. #### 7. **Commitments** The Company leases office space under two non-cancellable lease agreements in New York and Florida which expire on May 3 I, 2027 and March 3 l, 2025. respectively. The leases have provisions for escalations. The Company has security deposits. in the amounts of \$4,500 and \$39, 161, for the Florida and New York leases, respectively, that are included in other assets in the accompanying statement of financial condition. The future minimum annual payments at December 31, 2023 under these agreements are: | Total lease liabilities | \$
561,765 | |-----------------------------------|---------------| | Less imputed interest | (49,830) | | Total undiscounted lease payments | 61 1,595 | | 2027 | 72,061 | | 2026 | 171,199 | | 2025 | 174,743 | | 2024 | \$
193,592 | #### **8. Employee benefits** Eligible employees of the Company are covered under a defined contribution plan. The Company expects to make a safe harbor contribution for the plan year ended December 31, 2023. {13}------------------------------------------------ #### **9. Indemnifications** In the normal course of its business, the Company indemnities its clearing broker against specified potential losses in connection with their acting as an agent of, or providing services to, the Company. The maximum potential amount off uture payments that the Company could be required to make under this indemnification cannot be estimated. However, the Company believes that it is unlikely it will have to make material payments under these arrangements and has not recorded any contingent I iability in the financial statements for this indemnification. #### **J 0. Subsequent events** Management of the Company has evaluated events or transactions that have occurred since December 31, 2023 and determined that there are no material events that would require recognition or disclosure in the Company's financial statements. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.