# COOK PINE SECURITIES LLC X-17A-5 (2024-02-27) — Broker-dealer annual report - Company: COOK PINE SECURITIES LLC - Form: X-17A-5 - Filed: 2024-02-27 - Period: 2023-12-31 - Accession: 0001477073-24-000001 - CIK: 1477073 - File #: 8-68444 - Type: Broker-dealer - Material weakness: No - Auditor: YSL & Associates LLC - Auditor location: New York, NY - Contact: Eiichiro Kuwana - Phone: 203-861-2938 - Signed by: Eiichiro Kuwana (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1477073/000147707324000001/public.pdf --- {0}------------------------------------------------ ## COOK PINE SECURITIES, LLC FINANCIAL STATEMENT AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM DECEMBER 31, 2023 {1}------------------------------------------------ # **COOK PINE SECURITIES, LLC CONTENTS** | Report oflndependent Registered Public Accounting Firm 1 | | |-----------------------------------------------------------|--| | Financial Statements: | | | Statement of Financial Condition 2 | | | Notes to Financial Statements 3-5 | | {2}------------------------------------------------ ![](_page_2_Picture_0.jpeg) 11 Broadway, Suite 700, New York, NY 10004 Tel: (212) 232-0122 Fax: (646) 218-4682 ## **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Members of Cook Pine Secmities LLC #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Cook Pine Securities LLC (the "Company") as of December 31, 2023, and the related notes (collectively refened to as the "financial statement"). In our opinion, the financial statement presents fairly, in all material respects, the financial position of the Company as of December 31, 2023 in confonnity 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 fum 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 seclllities laws and the applicable mies and regulations of the Securities and Exchange Commission and the PCAOB. We conducted om 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 en or or fraud. Om audit included performing procedmes to assess the risks of material misstatement of the financial statement, whether due to en or or fraud, and performing procedmes that respond to those risks. Such procedmes included examining, on a test basis, evidence regarding the amounts and disclosmes 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 om audit provides a reasonable basis for om opinion. We have served as Cook Pine Securities LLC's auditor since 2021. New York, NY Febmaiy 22, 2024 {3}------------------------------------------------ ### **COOK PINE SECURITIES, LLC** ### **STATEMENT OF FINANCIAL CONDITION** ## **DECEMBER 31, 2023** ## **ASSETS** | Cash | \$
46,557 | |---------------------------------------|--------------| | Prepaid expenses | 6,902 | | Total assets | \$
53,459 | | LIABILITIES AND MEMBERS' EQUITY | | | Liabilities | | | Accounts payable and accrued expenses | \$
1,155 | | Members' equity | 52,304 | | Total liabilities and members' equity | \$
53,459 | The accompanying notes are an integral pa1t of these financial statements. {4}------------------------------------------------ # **COOK PINE SECURITIES, LLC NOTES TO FINANCIAL STATEMENT DECEMBER 31, 2023** # **1. ORGANIZATION AND NATURE OF BUSINESS** Cook Pine Securities LLC (the "Company") was organized as a Limited Liability Company on September 22, 2009, in the state of Delaware. The Company was granted membership in the Financial Industly Regulatory Autholity ("FINRA") on Janua1y 23, 2013. It is a registered broker-dealer with the Securities and Exchange Commission ("SEC"), and is a member of the Secmities Investor Protection Corporation ("SIPC"). The Company provides strategic financial advismy, mergers & acquisitions, and entity valuation services to and finding strategic partners for both private and public entities. The Company does not hold accounts or process ti·ansactions for customers. Investors usually consist of institutional investors, pension plans and other legal entities meeting the regulatmy definition of Qualified or Accredited investors. ### Going Concern The Company incmTed a net loss of \$42,758 for the year ended December 31, 2023 and losses in prior years. However, the Company's members had provided capital in prior years and have continued to provide additional working capital to the Company and are committed to continue advancing the required working capital to the Company in the future. ### Recent Issued Accounting Pronouncements The Company does not believe that the adoption of any recently issued, but not yet effective, accounting standards will have a material effect on its financial position and results of operations. # **2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** ## Basis of Presentation The accompanying financial statements have been prepared in conformity with U. S generally accepted accounting principles ("GAAP") and the rnles and regulations of the United States Securities and Exchange Commission (the "Commission"). It is management's opinion, that all material adjustments (consisting of nmmal recun-ing adjustments) have been made which are necessaiy for a fair financial statement presentation. #### Cash and Cash Equivalents The Company considers all highly liquid investments with a matulity of three months or less when purchased to be cash equivalents. Cash equivalents are cai1ied at cost, which approximates market value. #### Accounting Basis The Company uses the accrnal basis of accounting for financial statement and income tax reporting. Accordingly, revenues are recognized when services are rendered and expenses realized when the obligation is incuned. {5}------------------------------------------------ # **COOK PINE SECURITIES, LLC NOTES TO FINANCIAL STATEMENT DECEMBER 31, 2023** ## **2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)** ### Significant Judgments The recognition and measmement of revenue is based on the assessment of individual contract te1ms. Significant judgment is required to dete1mine whether performance obligations are satisfied at a point in time or over time; how to allocate transaction prices where multiple perfo1mance obligations are identified; when to recognize revenue based on the appropriate measme of the Company's progress under the contract; and whether constraints on variable consideration should be applied due to unce1tain future events. #### fucome Taxes The Company is a limited liability company, taxed as a paitnership for federal income tax purposes, and, thus, no federal income tax expense has been recorded in the financial statements. Taxable income of the Company is passed through to the members and repo1ted on their individual tax returns. Pursuant to accounting guidance concerning provision for unce1tain income tax provisions contained in Accounting Standards Codification ("ASC") 740-10, there ai·e no unce1tain income tax positions. The federal and state income tax returns are subject to examination by the IRS and state taxing authorities, generally for three years after they were filed. # Use of Estimates The preparation of financial statements in conf01mity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the rep01ted amounts of assets and liabilities, and disclosure of contingent assets, and liabilities at the date of the financial statements, and the rep01ted amounts of revenues and expenses during the rep01ting period. Actual results could differ from those estimates. ## Fair Values of Financial fustrnments Financial Accounting Standards Board Accounting Standai·ds Codification ("ASC") 825, "Financial fustmments," requires the Company to disclose estimated fair values for its financial instrnments. Fair value estimates, methods, and assumptions are set forth below for the Company's financial instnnnents: The cany ing amount of cash, accounts receivable, prepaid expenses and accounts payable and accmed expenses, approximate fair value because of the sh01t maturity of those instruments. # Concentrations of Credit Risk The Company places its cash with a high credit quality financial institution. The Company's account at this institution is insured by the Federal Deposit fusmance Corporation ("FDIC") up to \$250,000. To reduce its risk associated with the failure of such financial institution, the Company evaluates at least annually the rating of the financial institution in which it holds deposits. {6}------------------------------------------------ # **COOK PINE SECURITIES, LLC NOTES TO FINANCIAL STATEMENT DECEMBER 31, 2023** # **2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)** ### Allowance for Credit Losses The Company follows ASC Topic 326, Financial Instrnments - Credit Losses ("ASC 326"). The Company identified no fees receivable as impacted by the guidance. An allowance for credit losses may be based on the Company's expectation of the collectability of its receivables utilizing the CECL framework. The Company considers factors such as historical experience, credit quality, age of balances and cmTent and future economic conditions that may affect the Company's expectation of the collectability in determining the allowance for credit losses. The Company's expectation is that the credit risk associated with its receivables is not significant. Accordingly, the Company has not provided an allowance for credit losses at December 31, 2023. # **3. NET CAPITAL** The Company is subject to the SEC Unifonn Net Capital Rule (Rule 15c3-l), which requires the maintenance of minimum net capital of \$5,000, and requires that the ratio of aggregate indebtedness to net capital, both as defined, not exceed 15 to 1. The rnle also provides that equity capital may not be withdrawn, cash dividends paid or the Company's operations expanded, if the resulting net capital ratio would exceed 10 to 1. At December 31, 2023, the Company had net capital of \$45,402, which was \$40,402 in excess of the FINRA minimum net capital requirement of \$5,000. # **4. RELATED PARTY TRANSACTIONS** The Company has an Expense Sharing Agreement (the "Agreement") in place with an affiliate (the "Affiliate"), Cook Pine Capital LLC for services that are shared and paid by the Affiliate. The Company reimburses the Affiliate for these expenses, in the amount of \$8,760 for the year 2023 and the balance of \$830 was included in accounts payable and accrned expenses as of December 31, 2023. As per the expense sharing agreement the rent expense is \$630 per month. The rent is month-to-month and there will be no impact on the Company's financial statements upon adoption of ASC 842. # **5. SIPC RECONCILIATION REQUIREMENT** Securities Exchange Act ("SEA") Rule 17 a-5( e )( 4) requires a registered broker-dealer to file a supplemental report which includes procedures related to broker-dealers SIPC annual general assessment reconciliation or exclusion from membership forms. In circumstances where the broker-dealer reports \$500,000 or less in gross revenue they are not required to file supplemental SIPC report . The Company is exempt from filing the supplemental report under SEA Rule l 7a-5(e)(4) because it is reporting less than \$500,000 in gross revenue. # **6. SUBSQUENT EVENTS** The Company evaluated events occurring between the end of its fiscal year, December 31, 2023, and Febrnary 22, 2024, when the financial statements were issued. All subsequent events requiring recognition as of the auditor's report date, have been incorporated into these financial statements herein. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.