# KELSON CAPITAL LLC X-17A-5 (2022-10-11) — Broker-dealer annual report - Company: KELSON CAPITAL LLC - Form: X-17A-5 - Filed: 2022-10-11 - Period: 2022-06-30 - Accession: 0001454936-22-000003 - CIK: 1454936 - File #: 8-68147 - Type: Broker-dealer - Material weakness: No - Auditor: DeMarco Sciaccotta Wilkens & Dunleavy, LLP - Auditor location: Frankfort, IL - Contact: Dan Ledva - Phone: 212-616-0169 - Signed by: Dan Ledva (Managing Member) Original filing: https://www.sec.gov/Archives/edgar/data/1454936/000145493622000003/KelsonPublic22.pdf --- {0}------------------------------------------------ # KELSON CAPITAL, LLC ### Statement of Financial Condition Including Report of Independent Registered Public Accounting Firm As of June 30, 2022 {1}------------------------------------------------ #### UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 | OMB APPROVAL | | |--------------------------|--| | OMB Number: 3235-0123 | | | Expires: Oct. 31, 2023 | | | Estimated average burden | | | hours per response: 12 | | | SEC FILE NUMBER | | | 8-68147 | | # ANNUAL REPORTS FORM X-17A-5 PART III | FILING FOR THE PERIOD BEGINNING | 07/01/21 | AND ENDING | 06/30/22 | |--------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|-------------------------|-----------------------------------------------------------------------| | | MM/DD/YY | | MM/DD/YY | | | A. REGISTRANT IDENTIFICATION | | | | NAME OF FIRM: Kelson Capital LLC | | | | | TYPE OF REGISTRANT (check all applicable boxes): | | | | | XJ Broker-dealer
Check here if respondent is also an OTC derivatives dealer | | | [ Security-based swap dealer LJ Major security-based swap participant | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | 39 Broadway 16th Floor, Suite 1640 | | | | | | (No. and Street) | | | | New York | NY | | 10006 | | (City) | (State) | | (Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | Dan Ledva | 212-616-0169 | dledva(@kelsongroup.net | | | (Name) | (Area Code - Telephone Number) | | (Email Address) | | | B. ACCOUNTANT IDENTIFICATION | | | | | | | | | | | | | | DeMarco Sciaccotta Wilkens & Dunleavy, LLP | | | | | | (Name - if individual, state last, first, and middle name) | | | | | Frankfort | IL | 60423 | | | (Oty) | (State) | (Zip Code) | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filling®
20646 Abbey Woods Ct N, Suite 201
(Address)
12/21/2010 | | 5376 | | \* Claims for exemption from the requirement that the annual reports of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-5(e)[1)(ii), if applicable. Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number. {2}------------------------------------------------ #### OATH OR AFFIRMATION I, Dan Ledva June 30 2 022 , 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. ![](_page_2_Figure_3.jpeg) Title: Managing Member DANIEL LEDVA #### This filing \*\* contains (check all applicable boxes): - (a) Statement of financial condition. - (b) Notes to consolidated statement of financial condition. - [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 Regulation S-X). - [d) Statement of cash flows. - [e] Statement of changes in stockholders' or partners' or sole proprietor's equity. - [f] Statement of changes in liabilities subordinated to claims of creditors. - [g) Notes to consolidated financial statements. - [ {h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. - [i] Computation of tangible net worth under 17 CFR 240.188-2. - [] Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - [k] Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240. 15c3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable. - [1) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. - [m] Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - [1) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable. - [0] (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist. - [p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - [q] Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable, - [r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - [s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - (t) Independent public accountant's report based on an examination of the statement of financial condition. - [0] Independent public accountant's report based on an examination of the financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - [ (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - [w] Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - [x] Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-1e or 17 CFR 240.17a-12, as applicable. - [ (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 240.17a-12(k). - [ (z) Other: \*\* To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e)(3) or 17 CFR 240.18a-7(d)(2), as applicable. {3}------------------------------------------------ # KELSON CAPITAL, LLC TABLE OF CONTENTS | Report of Independent Registered Public Accounting Firm | | |---------------------------------------------------------|-------| | Statement of Financial Condition | | | Notes to Financial Statement | 3 = 2 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) ## REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Member of Kelson Capital, LLC #### Opinion on the Financial Statement We have audited the accompanying statement of financial condition of Kelson Capital, LLC (the "Company") as of June 30, 2022, and the related notes (collectively referred to as the "financial statement"). In our opinion, the statement of financial condition presents fairly, in all material respects, the financial position of Kelson Capital, LLC as of June 30, 2022 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 the Company's 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 statements. 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 statements. We believe that our audit provides a reasonable basis for our opinion. We have served as Kelson Capital, LLC's auditor since 2011. Frankfort, Illinois October 5, 2022 {5}------------------------------------------------ # %! "& ### %&& &! ! &! #### ' #### **ASSETS** | Cash | \$
250,409 | |---------------------|---------------| | Accounts receivable | 2,009,413 | | Other assets | 5,731 | | TOTAL ASSETS | \$ 2,265,553 | #### **LIABILITIES AND MEMBER'S CAPITAL** | LIABILITIES
Accounts payable and accrued expenses
Accrued commissions | \$
11,517
147,000 | |-----------------------------------------------------------------------------|-------------------------| | TOTAL LIABILITIES | \$
158,517 | | MEMBER'S CAPITAL | \$ 2,107,036 | | TOTAL LIABILITIES AND MEMBER'S CAPITAL | \$ 2,265,553 | &30,..:8;,9D4929:?0>,=0,949?02=,7;,=?:1?34>149,9.4,7>?,?0809? - {6}------------------------------------------------ # KELSON CAPITAL. LLC #### NOTES TO FINANCIAL STATEMENT #### YEAR ENDED JUNE 30, 2022 #### NOTE 1 - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES Organization - Kelson Capital, LLC (the "Company"), a limited liability company, was organized in the state of New Jersey on November 18, 2008. The duration of the Company is perpetual. The Company is registered as a broker/dealer with the Securities and Exchange Commission and is a member of the Financial Industry Regulatory Authority (FINRA). The Company acts as a placement agent for institutional investment money managers. The Company markets the specialized investment management strategies for institutional investors. Basis of presentation - The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"). Concentrations of Credit Risk - The Company is engaged in various brokerage activities in which the counterparties primarily include broker/dealers, banks, other financial institutions and the Company's own customers. In the event the counterparties do not fulfill their obligations, the Company may be exposed to risk. The risk of default depends on the creditworthiness of the counterparty or issuer of the instrument. It is the Company's policy to review, as necessary, the credit standing of each counterparty. In addition, the Company's cash is on deposit at one financial institution and the balance at times may exceed the federally insured limit. The Company believes it is not exposed to any significant credit risk to cash. Cash Equivalents - For purposes of the Statement of Cash Flows, the Company has defined cash equivalents as highly liquid investments, with original maturities of less than three months that are not held for sale in the ordinary course of business. Accounts Receivable - Accounts receivable are stated at the amount management expects to collect from outstanding balances. An allowance for doubtful accounts is provided for those accounts receivable considered to be uncollectible based upon management's assessment of the collectability of accounts receivable, which considers historical write-off experience and any specific risks identified in customer collection matters. Bad debts are written off against the allowance when identified. As of June 30, 2022, management believes no allowance for uncollectible accounts receivable is necessary. {7}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{8}------------------------------------------------ # KELSON CAPITAL. LLC #### NOTES TO FINANCIAL STATEMENT #### YEAR ENDED JUNE 30, 2022 #### NOTE 5 - INCOME TAXES The Company is considered a disregarded entity for federal income tax purposes. Income taxes are therefore the responsibility of the sole member of the Company. The Company accounts for any potential interest or penalties related to possible future liabilities for unrecognized income tax benefits as interest/other expense. The Parent is no longer subject to examination by tax authorities for federal, state or local income taxes for periods before 2018. #### NOTE 6 - RELATED PARTY The Company is under common control with Roberts and Ryan Investments Inc., a FINRA registered broker dealer. For the year ended June 30, 2022, the Company incurred \$159,480 in referral commissions paid to Roberts and Ryan Investments Inc. This amount in included in compensation and commissions on the statement of income. #### NOTE 7 - SUBSEQUENT EVENT Subsequent events have been evaluated through October 5, 2022, which is the date the financial statements were available to be issued. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.