# AVENDUS CAPITAL, INC. X-17A-5 (2020-07-15) — Broker-dealer annual report

- Company: AVENDUS CAPITAL, INC.
- Form: X-17A-5
- Filed: 2020-07-15
- Period: 2020-03-31
- Accession: 0001461556-20-000002
- CIK: 1461556
- File #: 8-68226
- Material weakness: No
- Auditor: Raich Ende Malter & Co. LLP
- Auditor location: New York, NY
- Contact: Puneet Shivam
- Phone: 646-707-0789
- Signed by: Puneet Shivam (Executive Director)

Original filing: https://www.sec.gov/Archives/edgar/data/1461556/000146155620000002/AvendusPublic2020.pdf

---

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# AVENDUS CAPITAL INC.

# STATEMENT OF FINANCIAL CONDITION REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

# Filed Pursuant to Rule 17a-5(E)(3) Under the Securities Exchange Act of 1934 as a public document

March 31, 2020

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### **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549**

|                          | 0MB APPROVAL |                 |
|--------------------------|--------------|-----------------|
| 0MB Number:              |              | 3235-0123       |
| Expires:                 |              | August 31, 2020 |
| tstimated average burden |              |                 |
| Hours per response       |              | 12.00           |
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SEC FILE NUMBER

8- **68226** 

# ANNUAL AUDITED REPORT FORM X-17A-5

### PART Ill

### **FACfNGPAGE Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule l 7a-5 Thereunder**

| REPORT FOR THE PERIOD BEGrNNING                                           | --------<br>04/01/2019<br>-<br>MM/DDNY | --<br>AND ENDING | -------------<br>03/31/2020<br>MM/DD/YY |  |
|---------------------------------------------------------------------------|----------------------------------------|------------------|-----------------------------------------|--|
|                                                                           | A. REGISTRANT IDENTIFICATION           |                  |                                         |  |
| NAME OF BROKER-DEALER:                                                    |                                        |                  | OFFICIAL USE ONLY                       |  |
| Avendus Capital Inc.                                                      |                                        |                  | FIRM I.D. NO.                           |  |
| ADDRESS OF PRrNCJPAL PLACE OF BUSINESS: (Do not use P.O. Box No.)         |                                        |                  |                                         |  |
| 455 Park Avenue, 19th Floor                                               |                                        |                  |                                         |  |
|                                                                           | (No. and Street}                       |                  |                                         |  |
| New York                                                                  | NY                                     |                  | 10022                                   |  |
| (City)                                                                    | (State)                                |                  | (Zip Code)                              |  |
| NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT lN REGARD TO THJS REPORT   |                                        |                  |                                         |  |
| Puneet Shivam                                                             |                                        |                  | 646-707-0789                            |  |
|                                                                           |                                        |                  | (Arc.1 Code Telephone Number)           |  |
|                                                                           | B. ACCOUNT ANT IDENTIFCATION           |                  |                                         |  |
| INDEPENDENT PUBLIC ACCOUNT ANT whose opinion is contained in this Report* |                                        |                  |                                         |  |
| Raich Ende Malter & Co. LLP                                               |                                        |                  |                                         |  |
| (Namc - ifindfridual, stale loo·t,first, middle name)                     |                                        |                  |                                         |  |
| 1375 Broadway, 15th Floor                                                 | New York                               | NY               | 10018                                   |  |
| (Address)                                                                 | (City)                                 | (State)          | (2,pCode)                               |  |
| CHECK ONE:                                                                |                                        |                  |                                         |  |
| Certified Public Accountant<br>1:8]                                       |                                        |                  |                                         |  |
| D<br>Public Accountant                                                    |                                        |                  |                                         |  |
| 0<br>Accountant not resident in United States or any of its possessions.  |                                        |                  |                                         |  |
|                                                                           | FOR OFFICIAL USE ONLY                  |                  |                                         |  |
|                                                                           |                                        |                  |                                         |  |
|                                                                           |                                        |                  |                                         |  |
|                                                                           |                                        |                  |                                         |  |

*\*Claims for exemption fi·om the requirement that the annual report be covered by the opinion of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis for the exemption. See Section 240. !7a-5(e)(2).* 

> Potential 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 0MB control number.

SEC 1410 (06-02)

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### **OATH OR AFFIRMATION**

| I,      | Puneet Shivam                                                                                  |      |              | , swear (or affirm) that, to the best of                                                                                   |
|---------|------------------------------------------------------------------------------------------------|------|--------------|----------------------------------------------------------------------------------------------------------------------------|
|         |                                                                                                |      |              | my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of            |
|         | __                                                                                             |      | ___          | ___<br>___                                                                                                                 |
|         | _A_v_e_n_d_u_s_C_a_p_i_ta_I_I_n_c_. _<br>_<br>_<br>_<br>_<br>_<br>_<br>_                       | _    |              | _<br>_<br>_<br>_<br>_<br>_<br>_<br>_<br>_<br>_<br>_<br>_ ,<br>as                                                           |
| -<br>-  | -----<br>---<br>---<br>of March 31<br>-<br>-<br>-<br>-<br>-                                    | , 20 | 20<br>-<br>- | --<br>, are true and correct. I further swear (or affirm) that<br>-                                                        |
|         |                                                                                                |      |              | neither the company nor any partner, proprietor, principal officer or director has any proprietary interest in any account |
|         | classified solely as that of a customer, except as follows:                                    |      |              |                                                                                                                            |
|         |                                                                                                |      |              |                                                                                                                            |
|         |                                                                                                |      |              |                                                                                                                            |
|         |                                                                                                |      |              |                                                                                                                            |
|         |                                                                                                |      |              |                                                                                                                            |
|         |                                                                                                |      |              |                                                                                                                            |
|         | MARY JOYCE MARTINEZ                                                                            |      |              |                                                                                                                            |
|         | Notary Public • State of New York                                                              |      |              |                                                                                                                            |
|         | NO. 01 MA6264166<br>Qualified in Richmond Co n\Y                                               |      |              |                                                                                                                            |
|         | Zs<br>~<br>My Commission Expires                                                               |      |              |                                                                                                                            |
|         |                                                                                                |      |              | Executive Director                                                                                                         |
|         |                                                                                                |      |              | Title                                                                                                                      |
|         |                                                                                                |      |              |                                                                                                                            |
|         |                                                                                                |      |              |                                                                                                                            |
|         | This report** contains (check all applicable boxes):                                           |      |              |                                                                                                                            |
|         | (8J (a) Facing page.                                                                           |      |              |                                                                                                                            |
| (8J (b) | Statement of Financial Condition.                                                              |      |              |                                                                                                                            |
|         | 0 (c) Statement oflncome (Loss).                                                               |      |              |                                                                                                                            |
| 0 ( d)  | Statement of Changes in Financial Condition.                                                   |      |              |                                                                                                                            |
|         | 0 ( e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietor's Capital. |      |              |                                                                                                                            |
| 0 ( f)  | Statement of Changes in Liabilities Subordinated to Claims of Creditors.                       |      |              |                                                                                                                            |
|         | 0 (g) Computation ofNet Capital.                                                               |      |              |                                                                                                                            |
|         | 0 (h) Computation for Determination of Reserve Requirements Pursuant to Rule 15c3-3.           |      |              |                                                                                                                            |
|         | 0 (i) Information Relating to the Possession or Control Requirements under Rule I 5c3-3.       |      |              |                                                                                                                            |
| 0 U)    | the Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3.  |      |              | A Reconciliation, including appropriate explanation, of the Computation of Net Capital Under Rule l 5c3-l and              |
|         | consolidation.                                                                                 |      |              | D (k) A Reconciliation between the audited and unaudited statements of Financial Condition with respect to methods of      |
| C8J (I) | An Oath or Affirmation.                                                                        |      |              |                                                                                                                            |
|         | 0 (m) A copy of the SIPC Supplemental Report.                                                  |      |              |                                                                                                                            |

0 (n) A report describing any material inadequacies found to exist or found to have existed since the date of the previous audit.

*\*\*For conditions of confidential treatment of certain portions of this filing, see section 240. l 7a-5(e)(3).* 

{3}------------------------------------------------

# TABLE OF CONTENTS

|                                                         | Page No. |  |
|---------------------------------------------------------|----------|--|
| REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM |          |  |
| FINANCIAL STATEMENT                                     |          |  |
| Statement of Financial Condition                        | 2        |  |
| Notes to Financial Statement                            | 3 - 7    |  |

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![](_page_4_Picture_0.jpeg)

1 375 Broadway, 15th Floor **N ew Yo rk, N ew Yor k 1001 8 2 12. 9 44. 4433 212.94 4.5404** lfaxl **cpa@rem•co.com** 

Off<es in NewYon:Cily. Long l~and & NewJern,y

### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Board of Directors of Avendus Capital Inc. New York, New York

### **Opinion on the Financial Statement**

We have audited the accompanying statement of financial condition of Avendus Capital Inc. as of March 31, 2020, 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 Avendus Capital Inc. as of March 31, 2020 in conformity with accounting principles generally accepted in the United States of America.

### **Basis for Opinion**

This financial statement is the responsibility of Avendus Capital Inc.'s management. Our responsibility is to express an opinion on Avendus Capital Inc.'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 Avendus Capital Inc. 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.

**RAICH ENDE MALTER & CO. LLP**  We have served as Avendus Capital Inc.'s auditor since 2018. New York, New York July 13, 2020

![](_page_4_Picture_12.jpeg)

*Independent Accounting Firms* 

{5}------------------------------------------------

# AVENDUS CAPITAL INC. STATEMENT OF FINANCIAL CONDITION MARCH 31, 2020

| ASSETS                                                                   |   |           |
|--------------------------------------------------------------------------|---|-----------|
| Cash                                                                     | S | 1,346,774 |
| Accounts receivable                                                      |   | 63,135    |
| Due from parent                                                          |   | 1,464,714 |
| Due from affiliate                                                       |   | 102,435   |
| Prepaid expenses                                                         |   | 208,345   |
| Property and equipment, net                                              |   | 18,109    |
| Deferred tax asset                                                       |   | 214,553   |
| Security deposits                                                        |   | 261,515   |
| Right-of-use asset                                                       |   | 399,578   |
| Total Assets                                                             | S | 4,079,158 |
| LIABILITIES AND STOCKHOLDER'S EQUITY                                     |   |           |
| Liabilities                                                              |   |           |
| Accounts payable and accrued expenses                                    | S | 457,099   |
| Income taxes payable                                                     |   | 43,075    |
| Lease liability                                                          |   | 437,117   |
| Total Liabilities                                                        |   | 937,291   |
|                                                                          |   |           |
| Stockholder's Equity                                                     |   |           |
| Common stock -1 million shares authorized, \$0.01 par value              |   |           |
| Class A 41,000 shares authorized, issued and outstanding                 |   | 410       |
| Class B 959,000 shares authorized, 698,000 shares issued and outstanding |   | 6,980     |
| Additional paid-in-capital                                               |   | 1,595,410 |
| Retained earnings                                                        |   | 1,539,067 |
| Total Stockholder's Equity                                               |   | 3,141,867 |
| Total Liabilities and Stockholder's Equity                               | S | 4.079.158 |

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{10}------------------------------------------------

# AVENDUS CAPITAL INC. NOTES TO FINANCIAL STATEMENT FOR THE YEAR ENDED MARCH 31, 2020

## NOTE 9 - SUBSEQUENT EVENTS

Subsequent events have been evaluated through July 13, 2020, which is the date the financial statements were available to be issued.

The World Health Organization characterized the recent outbreak of the novel coronavirus ("COVID-19") as a global pandemic on March 11, 2020. COVID-19 continues to adversely impact global and domestic commercial activity and has contributed to significant volatility in financial markets. The impact of COVID-19 on the Company's financial performance will depend on future developments, including the duration and spread of the outbreak and restrictions. These developments and the impact of COVID-19 on the financial markets and the overall economy are highly uncertain and cannot be predicted. If the financial markets and/or the overall economy are impacted for an extended period, the Company's future financial results may be materially adversely affected.


Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.