# SHARENETT SECURITIES LLC X-17A-5/A (2022-03-30) — Broker-dealer annual report - Company: SHARENETT SECURITIES LLC - Form: X-17A-5/A - Filed: 2022-03-30 - Period: 2021-12-31 - Accession: 0001468209-22-000002 - CIK: 1468209 - File #: 8-68326 - Type: Broker-dealer - Material weakness: No - Auditor: Adeptus Partners, LLC - Auditor location: New York, NY - Contact: Brian Moran - Phone: 704-840-5943 - Email: bmoran@sharenett.com - Website: sharenett.com - Signed by: Peter Dolezal (CEO / COO) Original filing: https://www.sec.gov/Archives/edgar/data/1468209/000146820922000002/sharenettaudit2021pub.pdf --- {0}------------------------------------------------ ## **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 > SEC FILE NUMBER 8-68326 # **ANNUAL REPORTS FORM X-17A-5 PART** Ill **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 **O 1/01/2021** AND ENDING **12/31/2021** MM/DD/YY MM/DD/YY **A. REGISTRANT IDENTIFICATION** # NAME OF FIRM: ShareNett Securities LLC TYPE OF REGISTRANT (check all applicable boxes): [el Broker-dealer □ Security-based swap dealer □ Check here if respondent is also an OTC derivatives dealer □ Major security-based swap participant ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) # 100 Wall Street, Suite #501 | | (No. and Street) | | |-------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------|--------------------------------------------| | New York | NY | 0005
1 | | (City) | (State) | (Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | Brian Moran | (704) 840-5943 | bmoran@sharenett.com | | (Name) | (Area Code - Telephone Number) | (Email Address) | | | B. ACCOUNTANT IDENTIFICATION | | | Adeptus Partners, LLC | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained
(Name -
if individual, state last, first, and middle name) | in this filing* | | | 244 West 54th Street, 9th Floor New York | NY 10019 | | (Address) | (City) | (State)
(Zip Code) | | /
02/2010
01 | | 3686 | | mate of Registration with PCAOB)(if applicable) | | (PCAOB Registration Number, if applicable) | | | FOR OFFICIAL USE ONLY | I | | | | | \* 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-5(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.** {1}------------------------------------------------ ## OATH OR AFFIRMATION | Peter Dolezal | | |---------------|--| I, Peter Dolezal ,swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of ShareNett Securities LLC , as of 12/31 2021 is true and correct. I further swear (or affirm) that neither the company nor any equivalent person, partner, officer, director, or as the case may be, has any proprietary interest in any account classified solely as that of a customer. > NADICA STANOJEVIC Notary Public - State of New York No. 01\$163888917 Qualified in Queens County My Commission Expires March 18, 2023 31022 | Signature: | | |-------------------|--| | Title:
CEO/COO | | Notary Public # **This filing\*\* contains (check all applicable boxes):** - i (a) Statement of financial condition. - D(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. - D (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. - 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. - [ (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. - (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. - (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. - (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 240.18a-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. - (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-1e 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). \_ - D (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.* {2}------------------------------------------------ # SHARENETT SECURITIES, Statement "'\,.\- LL , Financial **Supplementary Schedule** s **Pursuant to ate 17A-5 user the** secues Exchrse et of 1934 lndepe ·a �stered Report of Public Accounting Firm s° C {3}------------------------------------------------ | SHARENETT SECURITIES, LLC
Financial Statements for the Year Ended December 31, 20
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Report of Independent Registered Public Accounting Firm | | | Financial Statements | | | Statement of Financial Condition | 3 | | Statement of Operations
Member's | 4 | | Statement of Changes in | 5 | | 'r
Statement of Cash Flows | 6 | | Notes to Financial Statements
Schedule
tion | 7 -8 | | | | Supplementary of Net Capital Under Rule 15c3-1 of the Securities and Exchange Commissi,voll 934 Supplementary Schedule II- Computation for Determination of Reserve Requirements *k* Supplementa�Schedule Ill - Information Relating to the Possession or Control Requirements {4}------------------------------------------------ # **SHARENETT SECURITIES, LLC STATEMENT OF FINANCIAL CONDITION December 31, 2021** | | ASSETS | | |---------------------------------------------------------------------------------------------------------------|-----------------|---------------------------------------| | Cash and cash equivalents
Accounts receivable
Advance to affiliate
Prepaid expenses and other assets | | 859,125
43,562
70,000
22,352 | | Total assets | MEMBER | \$
995,039 | | | LIABILITIES AND | | | Liabilities
Accounts payable and accrued expenses | ,.V | \$
193,762 | | Total liabilities | | 193,762 | | Member's equity
a | 801,277 | | | Total liabilities | �r's
equity | \$
995,039 | | 9 | | | The accompanying notes are an integral part of this financial statement. {5}------------------------------------------------ #### **SHARENETT SECURITIES, LLC NOTES TO FINANCIAL STATEMENTS December 31, 2021** #### 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 Corporation ("SIPC"). The Company is a Delaware 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. **Basis of Presentation:** The accompanying financial statements have been prepared on the acc-1\f:. basis of accounting in conformity with accounting principles generally accepted in the United Stat\*G7JJ1.P"). **Cash and cash equivalents:** For the purposes of reporting the statement of cash fl\* 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 e al banking risks associated with funds in excess of those limits. As December 31, 2021, yny had \$609,125 in excess or me Fpict unting **Estimates:** The preparation of financial statements in accord principles generally accepted in the United States of America requires management to ake estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure ot ontingent assets and liabilities at the date of the financial statements and revenues and :::::\_"'" during the reporting period. Actual results could differ from those estimates. { carries jivable **Accounts Receivable:** The Company on a gross basis, with no discounting for bad debts. It is management's policy to re·w the race accounts annually for collectability. There is no collateral held by the Company for accou - Interest is not accrued on accounts receivable wi#ent **Income taxes:** The Company, of its member, has elected under the Internal Revenue Code to be a Limited Liability Com?8yr both federal and state income tax purposes. In lieu of corporation income taxes, the ·eordh of a Limited Liability Company are taxed on their proportionate share of the Company's ta*x''* income. Therefore, no provision or liability for federal or state income taxes has been included in the inanc, statements. �te1 The Company has the provisions of FASB Accounting Standards Codification 740-10, Accounting for Uncertainty in Ir 0mTe axes. Under ASC 740-10, the Company is required to evaluate each of its tax positions to determine it they are more likely than not to be sustained if the taxing authority examines the respective pc3ion. A tax position included in an entity's status, including its status as a pass-through entity, and the c sion not to file a tax return. The Company has evaluated each of its tax positions and has !""e that no provision or liability for income taxes is necessary. The members and the Company are gen@illy not subject to U.S. federal, state, or local income tax examinations related to the Company's activities for tax years before 2018. #### NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) #### **Revenue from contracts with customers:** ### *Significant Judgements* Revenue from contracts with customers includes placement fees, retainer income, and consulting income. 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, 2021** # 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 received from customers are nonrefundable and recognized upon execution of the contract. Consulting income received from customers are recognized at a point in time \*n the services are completed. **Fair value of financial instruments:** All of the Company's financial assets and liabil"tif':s *\** carried at market value or at amounts, which, because of their short-term nature, approximate cu:.e rt fair value. # **NOTE B- NET CAPITAL REQUIREMENTS -:\\_;** The Company is subject to the Securities and Exchange Commission Unifo et - Cj,.pital Rule (Rule 15c3 1), which requires the maintenance of minimum net capital and require,: ha the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15to 1· At eceber 31, 2021, the Company had net capital of \$665,363 which was \$415,363 more than its·83"·,t capital of \$250,000 and the ratio of aggregate indebtedness to net capital was 29.12 to 1.*0.* sharin4"T -,"'ESA") #### **NOTE C - RELATED PARTY TRANSACTIONS** During 2021 the Company had an expense in place with its Parent as it relates to rent, technology, communication and personnel s CS provided by the Parent. The Company's expenses, pursuant to the terms of the ESA )ar,ended December 31, 2021, were approximately vao 4/ #### NOTE D - BUSINESS CONCENTR As of December 31, 2021, tw cu -JJ.de up 100% of the outstanding accounts receivable balance rs At December 31, 2021, t •ee, made up approximately 50% of sales As of December 31ffi2:1 ·..\_ree ,1endors made up approximately 89% of the outstanding accounts payable balance. / NOTE E - C\*MITMENTS AND CONTINGENCIES Contin�liabilities arising from claims, assessments, litigation, fines, penalties, and other sources are recode when it is probable that liabilities can be assessed and the amount of the assessment and/or rer@iation can be reasonably estimated. # NOTE F -ADVANCE TO AFFILIATE On January 4, 2021, the Company made a \$70,000 advance to an affiliate, ShareNett Holdings, LLC. The advance is due on demand and does not carry an interest rate. # NOTE G- SUBSEQUENT EVENTS The Company has evaluated subsequent events through March 29, 2022, 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, 2021 requiring disclosure. {7}------------------------------------------------ ![](_page_7_Picture_0.jpeg) # **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Member of of ShareNett Securities, LLC ## **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition ShareNett Securities, LLC as of December 31, 2021, 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 ShareNett Securities, LLC as of December 31, 2021 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, \*'s management. Our responsibility is to express an opinion on ShareNett Sec"ties, LLC's financial statement based on our audit. We are a public accounting firm,registered with the Public Company Accounting Oversight Board (United States) (PCA) 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 regulatio:sf t e Securities and Exchange Commission and the PCAOB. / We conducted our audit in accordance with the stand@r< of the PCAOB. Those standards require that we plan and perform the audit to o 'ain reasonable assurance about whether the financial statement is free of material misstate. vent, whether due to error or fraud. Our audit included performing procedures t d\$Se sthe risks of material misstatement of the financial statement, whether due to error cf' auu, and performing procedures that respond to those risks. Such procedures incid .ramining, on a test basis, evidence regarding the amounts and disclosures in the tinatial statements. Our audit also included evaluating the accounting principles used ar.' slgrificant estimates made by management, as well as evaluating the overall preseta.'n f the financial statements. We believe that our audit provides a reasonable • ur opinion. We have served a �lt)oecurities, LLC's auditor since 2021. " .< New Yor, New York **MarC:/02'** *\*\* \** Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.