# SHARENETT SECURITIES LLC X-17A-5 (2021-03-19) — Broker-dealer annual report - Company: SHARENETT SECURITIES LLC - Form: X-17A-5 - Filed: 2021-03-19 - Period: 2020-12-31 - Accession: 0001468209-21-000005 - CIK: 1468209 - File #: 8-68326 - Material weakness: No - Auditor: DASZKOWSKI, TOMPKINS, WEG & CARBONELLA, CPA, P.C. - Auditor location: MATAWAN, NJ - Contact: BRIAN M MORAN - Phone: 704-840-5943 - Signed by: PETER DOLEZAL (CEO/COO) Original filing: https://www.sec.gov/Archives/edgar/data/1468209/000146820921000005/sharenett2020public1.pdf --- {0}------------------------------------------------ {1}------------------------------------------------ # OATH OR AFFIRMATION | Peter Dolezal | the best swear (or affirm) that, to the best of | |-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | ShareNett Securities, LLC | my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of
. as | | of December 31 | 20 20 , are true and correct. I further swear (or affirm) that | | classified solely as that of a customer, except as follows: | neither the company nor any partner, principal officer or director has any proprietary interest in any account | | | Signaturd | | | CEO/COO | | Notary Public
This report ** contains (check all applicable boxes):
(a) Facing Page.
(b) Statement of Financial Condition.
of Comprehensive Income (as defined in §210.1-02 of Regulation S-X).
(d) Statement of Changes in Financial Condition. | TIMOTHY A AUGUSTINE
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(c) Statement of Income (Loss) or, if there is other comprehensive income in the period(s) presented, a Statement | | (e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital.
(f) Statement of Changes in Liabilities Subordinated to Claims of Creditors.
(g) Computation of Net Capital.
(h) Computation for Determination of Reserve Requirements Pursuant to Rule 15c3-3.
(i) Information Relating to the Possession or Control Requirements Under Rule 15c3-3. | (i) A Reconciliation, including appropriate explanation of Net Capital Under Rule 15c3-1 and the
Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3. | | consolidation.
(1) An Oath or Affirmation.
(m) A copy of the SIPC Supplemental Report. | (k) A Reconciliation between the audited Statements of Financial Condition with respect to methods of
(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 240.17a-5(e){3). {2}------------------------------------------------ ## SHARENETT SECURITIES, LLC Financial Statements and Supplementary Schedules Pursuant to Rule 17A-5 under the Securities Exchange Act of 1934 ## DECEMBER 31, 2020 Report of Independent Registered Public Accounting Firm {3}------------------------------------------------ DASZKOWSKI, TOMPKINS, WEG & CARBONELLA, P.C. Certified Public Accountants & Advisors Walter Daszkowski, CPA, PFS Michele Tompkins, CPA Mark Weg, CPA, PFS Dan Carbonella, CPA Michael R. Ferraro, CPA Richard P. Wismer, CPA # REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Members of Sharenett Securities, LLC ## Opinion on the Financial Statement We have audited the accompanying statement of financial condition of Sharenett Securities, LLC as of December 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 Sharenett Securities, LLC as of December 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 Sharenett Securities, LLC's management. Our responsibility is to express an opinion on Sharenett Securities, LLC'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 Sharenett Securities, LLC 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. Duszboursli, Tomplies Wes + Carbonilla, CAA, P. C. Daszkowski, Tompkins, Weg & Carbonella, CPA, P.C. We have served as Sharenett Securities, LLC auditor since 2019. Matawan, NJ March 19, 2021 {4}------------------------------------------------ ## SHARENETT SECURITIES, LLC STATEMENT OF FINANCIAL CONDITION December 31, 2020 ## ASSETS | Cash and cash equivalents
Accounts receivable | Prepaid expenses and other assets | ક | 382,126
42,133
144,365 | | |--------------------------------------------------|---------------------------------------|---|------------------------------|--| | | Total assets | S | 568.624 | | | | LIABILITIES AND MEMBER'S EQUITY | | | | | Liabilities | Accounts payable and accrued expenses | S | 26.611 | | | | Total liabilities | | 26.611 | | | Member's equity | | | 542,013 | | | | Total liabilities and member's equity | ક | 568.624 | | The accompanying notes are an integral part of these financial statements. {5}------------------------------------------------ ## SHARENETT SECURITIES, LLC NOTES TO FINANCIAL STATEMENTS December 31, 2020 #### NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business: Sharenett Securities LLC (the "Company"), is a securities broker-dealer registered with the Securities and Exchange Commission ("SEC"), a member of the Financial Industry Regulatory Authority ("FINRA"), and a member of the Securities Investor Protection ("SIPC"). The Company is a New York limited liability company (LLC) and a wholly owned subsidiary of Sharenett Holdings LLC (the "Parent" and sole member). The Company operates as a placement agent specializing in private placements of securities and financial advisory services. Cash and cash equivalents: For the purposes of reporting the statement of cash flows, the Company considers all cash accounts, which are not subject to withdrawal restrictions or penalties, and all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. Cash balances in excess of FDIC and similar insurance coverage are subject to the usual banking risks associated with funds in excess of those limits. As December 31, 2020, the Company had no uninsured cash balances. Placement fee income: The Company's income is substantially derived from placement fees. Fees are recorded as earned. Estimates: The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America 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 revenues and expenses during the reporting period. Actual results could differ from those estimates. Income taxes: The Company, with the consent of its member, has elected under the Internal Revenue Code to be a Limited Liability Company for both federal and state income tax purposes. In Jieu of corporation income taxes, the members of a Limited Liability Company are taxed on their proportionate share of the Company's taxable income. Therefore, no provision or liability for federal or state income taxes has been included in the financial statements. The Company has adopted the provisions of FASB Accounting Standards Codification 740-10, Accounting for Uncertainty in Income Taxes. Under ASC 740-10, the Company is required to evaluate each of its tax positions to determine if they are more likely than not to be sustained if the taxing authority examines the respective position. A tax position included in an entity's status as a pass-through entity, and the decision not to file a tax return. The Company has evaluated each of its tax positions and has determined that no provision or liability for income taxes is necessary. The members and the Company are generally not subject to U.S. federal, state, or local income tax examinations related to the Company's activities for tax years before 2017. #### Revenue from contracts with customers. #### Significant Judgements Revenue from contracts with customers includes placement fees, commission income and fees from commissions. The recognition and measurement of revenue is based on the assessment of individual contract terms. Significant judgement 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; whether revenue should be presented gross or net of certain costs; and whether constraints on variable consideration should be applied due to uncertain future events, {6}------------------------------------------------ ## SHARENETT SECURITIES, LLC NOTES TO FINANCIAL STATEMENTS December 31, 2020 ## NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Revenue from contracts with customers: The Company provides placement services related to capital raising activities. Revenue for placement services is generally recognized at the point in time that performance under the agreement is completed (the closing date of transaction) or the contract is cancelled. In some circumstances, significant judgement is needed to determine the timing and measure of progress appropriate for revenue recognition under a specific contract. Retainers and other fees received from customers prior to recognizing the revenue are reflected as contract liabilities. Fair value of financial instruments: All of the Company's financial assets and liabilities are carried at market value or at amounts, which, because of their short-term nature, approximate current fair value. ## NOTE B - NET CAPITAL REQUIREMENTS The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (Rule 15c3 1), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebledness to net capital, both as defined, shall not exceed 15 to 1. At December 31, 2020, the Company had net capital of \$371,765 which was \$121,765 more than its required net capital of \$250,000and the ratio of aggregate indebtedness to net capital was .072 to 1.0. ## NOTE C - RELATED PARTY TRANSACTIONS During 2020 the Company had an expense sharing agreement ("ESA") in place with its Parent as it relates to rent, technology, communication and personnel services provided by the Parent. The Company's expenses, pursuant to the ESA for the year ended December 31, 2020, were approximately \$785,345. ## NOTE D - BUSINESS CONCENTRATIONS The Company earned revenue from one major customer that accounted for 80% of fees for the year ended December 31, 2020. ## NOTE E - COMMITMENTS AND CONTINGENCIES The Company has no commitments or contingencies. ## NOTE F - COVID-19 During the 2020 calendar year, the World Health Organization has declared COVID-19 to constitute a "Public Health Emergency of International Concern". This pandemic has disrupted economic impact, duration and spread of the COVID-19 virus is uncertain at this time. The financial performance of the Company is subject to future developments related to the COVID-19 outbreak and possible government advisories and restrictions placed on the financial markets and business activities. The impact on financial markets and the overall economy, all of which are highly uncertain, cannot be predicted. If the financial markets and/or the overall economy are impacted for an extended period, the Company's results may be materially affected. The financial statements that might result from the outcome of this uncertainty. ## NOTE G - SUBSEQUENT EVENTS The Company has evaluated subsequent events through March 19, 2021, the date which the financial statements were available to be issued, and has determined that the Company had no events occurring subsequent to December 31, 2020 requiring disclosure. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.