# AVENDUS CAPITAL, INC. X-17A-5 (2022-06-30) — Broker-dealer annual report

- Company: AVENDUS CAPITAL, INC.
- Form: X-17A-5
- Filed: 2022-06-30
- Period: 2022-03-31
- Accession: 0001461556-22-000001
- CIK: 1461556
- File #: 8-68226
- Type: Broker-dealer
- Material weakness: No
- Auditor: Raich Ende Malter & Co. LLP
- Auditor location: New York, NY
- Contact: Puneet Shivam
- Phone: 646-707-0789
- Email: puneet.shivam@avendus.com
- Website: avendus.com
- Signed by: Puneet Shivam (Executive Director)

Original filing: https://www.sec.gov/Archives/edgar/data/1461556/000146155622000001/AvendusPublic22.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, 2022

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

0MB APPROVAL 0MB Number: 3235-0123 Expires: Oct. 31, 2023 Estimated average burden hours per response: 12

# **ANNUAL REPORTS FORM X-17A-5 PART** Ill

SEC FILE NUMBER

8-68226

**FACING PAGE** 

**Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934** 

| FILING FOR THE PERIOD BEGINNING                                                                                                       | ----------<br>04/01/21                                     | AND ENDING                              | 03/31/22        | ----------                |
|---------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|-----------------------------------------|-----------------|---------------------------|
|                                                                                                                                       | MM/DD/VY                                                   |                                         |                 | MM/DD/VY                  |
|                                                                                                                                       | A. REGISTRANT IDENTIFICATION                               |                                         |                 |                           |
| Avendus Capital Inc.<br>NAME OF FIRM:                                                                                                 |                                                            |                                         |                 |                           |
| TYPE OF REGISTRANT (check all applicable boxes):<br>IKl Broker-dealer<br>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.)                                                                   |                                                            |                                         |                 |                           |
| 455 Park Avenue, 19th Floor                                                                                                           |                                                            |                                         |                 |                           |
|                                                                                                                                       | (No. and Street)                                           |                                         |                 |                           |
| New York                                                                                                                              | NY                                                         |                                         | 10022           |                           |
| (City)                                                                                                                                | (State)                                                    |                                         |                 | (Zip Code)                |
| PERSON TO CONTACT WITH REGARD TO THIS FILING                                                                                          |                                                            |                                         |                 |                           |
| Puneet Shivam                                                                                                                         | 646-707-0789                                               |                                         |                 | puneet.shivam@avendus.com |
| (Name)                                                                                                                                | (Area Code - Telephone Number)                             |                                         | (Email Address) |                           |
|                                                                                                                                       | B. ACCOUNTANT IDENTIFICATION                               |                                         |                 |                           |
| INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*<br>Raich Ende Malter & Co. LLP                              |                                                            |                                         |                 |                           |
|                                                                                                                                       | (Name - if individual, state last, first, and middle name) |                                         |                 |                           |
| 1375 Broadway, 15th Floor                                                                                                             | NewYork                                                    |                                         | NY              | 10018                     |
| (Address)                                                                                                                             | (City)                                                     |                                         | (State)         | (Zip Code)                |
| 06/23/2004                                                                                                                            |                                                            | 50                                      |                 |                           |
| l"<br>of Regis<caUoo wi<h PCAOBJI" applicable)                                                                                        |                                                            |                                         |                 |                           |
|                                                                                                                                       | FOR OFFICIAL USE ONLY                                      |                                         |                 |                           |

\* Claims for exemption from the requirement that the annual reports be covered by the 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-S(e)(l)(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 0MB control number.** 

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#### **OATH OR AFFIRMATION**

| Puneet Shivam<br>I,                        | swear (or affirm) that, to the best of my knowledge and belief, the                                                                 |         |
|--------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------|---------|
| financial report pertaining to the firm of | Avendus Capital Inc.                                                                                                                | , as of |
| March 31                                   | 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.            |
|-----------------------------------|
|                                   |
| MARY JOYCE MARTINEZ               |
| Notary Public • State of New York |
| NO. 01 MA6264166                  |
| Qualified in Richmond 0           |
| My Commission Expire              |
|                                   |
| Notary Public                     |

Signature:

![](_page_2_Picture_4.jpeg)

Title: E . D. xecutive irector

# **This filing\*\* c**

- IX! (a) Statement of financial condition.
- IXl (b) Notes to consolidated statement offinancial condition.
- 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 Regulation S-X).
- D (d) Statement of cash flows.
- D (e) Statement of changes in stockholders' or partners' or sole proprietor's equity.
- D (f) Statement of changes in liabilities subordinated to claims of creditors.
- D (g) Notes to consolidated financial statements.
- D (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-l, as applicable.
- D (i) Computation of tangible net worth under 17 CFR 240.18a-2.
- D (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3.
- D (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.
- D (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.15c3-3.
- D (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3.
- D (n) 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.
- D (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible 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.
- D (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition.
- IXl (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.
- D (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable.
- D (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable.
- IZI (t) Independent public accountant's report based on an examination of the statement of financial condition.
- D (u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240.17a-5, 17 CFR 240.lSa-7, or 17 CFR 240.17a-12, as applicable.
- D (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.
- D (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-le or 17 CFR 240.17a-12, 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 240.17a-12(k). <sup>D</sup>(z) Other: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_
- 

<sup>\*\*</sup>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.

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# 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)

**1375 Broadway, 15th Floor New York., New York 10018 212.944.4433 212.944.5404 (fax) cpa@rem-co .com** 

Offces in New York City, Long l~and & New Jersey

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

To the Board of Directors and Stockholders 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, 2022, 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 Avendus Capital Inc. as of March 31, 2022 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 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.

**RAICH ENDE MALTER & CO. LLP**  We have served as Avendus Capital Inc.'s auditor since 2018. New York, New York June 29, 2022

![](_page_4_Picture_12.jpeg)

*Independent Accounting Firms* 

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# AVENDUS CAPITAL INC. STATEMENT OF FINANCIAL CONDITION MARCH 31, 2022

| ASSETS                                                                   |    |           |
|--------------------------------------------------------------------------|----|-----------|
| Cash                                                                     | S  | 3,799,045 |
| Accounts receivable                                                      |    | 594,780   |
| Due from parent                                                          |    | 2,020,306 |
| Prepaid expenses                                                         |    | 79,167    |
| Prepaid income taxes                                                     |    | 51,182    |
| Property and equipment, net                                              |    |           |
| Deferred tax asset                                                       |    | 406.608   |
| Security deposits                                                        |    | 169,460   |
| Right-of-use asset                                                       |    | 973,189   |
| Total Assets                                                             | S  | 8,093,737 |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                     |    |           |
| Liabilities                                                              |    |           |
| Accounts payable and accrued expenses                                    | S  | 73,847    |
| Accrued bonuses                                                          |    | 2,760,039 |
| Income taxes payable                                                     |    | 250       |
| Lease liability                                                          |    | 991,684   |
| Total Liabilities                                                        |    | 3,825,820 |
|                                                                          |    |           |
| Stockholders' 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                                                        |    | 2,665,117 |
| Total Stockholders' Equity                                               |    | 4,267,917 |
| Total Liabilities and Stockholders' Equity                               | ತಿ | 8,093,737 |

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{7}------------------------------------------------

# AVENDUS CAPITAL INC. NOTES TO FINANCIAL STATEMENT FOR THE YEAR ENDED MARCH 31, 2022

### NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

#### Deferred Tax Benefits

US GAAP requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed annually for differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future, based on the enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. Income tax expense is the tax payable or refundable for the period, plus or minus the change during the period in deferred tax assets and liabilities.

US GAAP provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. US GAAP requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Company's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year.

#### Use of Estimates

The preparation of financial statements in conformity with US GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the statement of financial condition, and the reported revenues and expenses during the reporting period. Actual results could differ from those 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 follow 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 it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved.

The following table provides information about receivables from contracts with customers:

|                     | March 31  |           |
|---------------------|-----------|-----------|
|                     | 2022      | 2021      |
| Accounts receivable | \$594.780 | \$325.792 |

#### Leases

The Company has elected the package of practical expedients permitted in ASC 842. Accordingly, the Company accounted for its existing operating lease as an operating lease under the new guidance, without reassessing (a) whether the contains a lease under ASC 842, (b) whether classification of the operating lease would be different in accordance with ASC 842, or (c) whether the unamortized initial direct costs before transition adjustments (as of March 31, 2020) would have met the definitial direct costs in ASC 842 at lease commencement. The Company made a policy election to recognize short-term lease payments as an expense on a straight-line basis over the lease term.

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

# AVENDUS CAPITAL INC. NOTES TO FINANCIAL STATEMENT FOR THE YEAR ENDED MARCH 31, 2022

### NOTE 8 - LEASES (CONTINUED)

| Weighted average remaining lease term | 5.2 vears |
|---------------------------------------|-----------|
| Weighted average discount rate        |           |

The lease liability on the statement of financial condition amounts to \$991,684 at March 31, 2022. The Company paid \$227,005 in lease payments during the year.

## NOTE 9-COVID-19

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 related advisories 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.

## NOTE 10 - RUSSIA-UKRAINE CONFLICT

U.S. and global markets are experiencing volatility and disruption following the escalation of geopolitical tensions and the start of the military conflict between Russia and Ukraine. On February 24, 2022, a fullscale military invasion of Ukraine by Russian troops was reported. Although the length and impact of the ongoing military conflict is highly unpredictable, the conflict in Ukraine could lead to market disruptions, including significant volatility in commodity prices, credit and capital markets, as well as supply chain interruptions. The Company's management is continuing to monitor the situation in Ukraine and globally and assessing its potential impact on the Company's operations.

## NOTE 11 - SUBSEQUENT EVENTS

Subsequent events have been evaluated through June 29, 2022, which is 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.