# CC SECURITIES, LLC X-17A-5 (2019-02-28) — Broker-dealer annual report - Company: CC SECURITIES, LLC - Form: X-17A-5 - Filed: 2019-02-28 - Period: 2018-12-31 - Accession: 0001488053-19-000001 - CIK: 1488053 - File #: 8-68546 - Material weakness: No - Auditor: Singer Lewak LLP - Auditor location: Denver, CO - Contact: Andrew Miller - Phone: 9177105598 - Signed by: Andrew Miller (FinOp, CFO) Original filing: https://www.sec.gov/Archives/edgar/data/1488053/000148805319000001/ccsshort.pdf --- {0}------------------------------------------------ **UNITED ST ATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** | 0MB APPROVAL | | | | | |--------------------------------|--------------------------|-----------------|--|--| | 0MB Number: | | 3235-0123 | | | | Expires: August 31, 2020 | | | | | | | Estimated average burden | | | | | hours oer resoonse • . • 12.00 | | | | | | | | SEC FILE NUMBER | | | | | 8- | 68546 | | | # **ANNUAL AUDITED REPORT FORM X-17 A-5 PART Ill** # **FACING PAGE Information Required** of **Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder** | REPORT FOR THE PERIOD BEGINNING | 01/01/18 | AND ENDING | 12/31/18 | | |----------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------|------------|------------------------------|--| | | -------------
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MM/DD/YY | | | | A. REGISTRANT IDENTIFICATION | | | | | NAME OF BROKER-DEALER: | | | | | | CC Securities, LLC | OFFICIAL USE ONLY | | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | FIRM ID. NO. | | | 1540 Broadway, 10th Floor | | | | | | | (No. and S1n:cl) | | | | | New York | New York | | 10036 | | | (Citv) | (State) | | (Zip Code) | | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT | | | | | | Andrew Miller | | | (212) 751-4422 | | | | | | (Area Code -- Telephone No.) | | | | B. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNT ANT whose opinion is contained in this Report* | | | | | | Singerlewak LLP | | | | | | | (Name -- if individ11al, stale lasl, firs/, middle name) | | | | | 3600 South Yosemite Street, Suite 600 | Denver | co | 80237 | | | (Address) | (City) | (State) | (Zip Code) | | | CHECK ONE:
[?j Certified Public Accountant
D
Public Accountant
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Accountant not resident in United States or any of its possessions | | | | | | | FOR OrflCIAL USE ONLY | | | | | | | | | | *\*Claims for exemption from 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 lhe exemption. See Section 240. 17a-5(e)(2).* SEC 1410 (06-02} *Potential persons who are to respond to the collection of information contained in tl,isform are not required to respond unless the form displays a current(y valid 0MB control number.* {1}------------------------------------------------ I, Andrew Miller , swear (or affirm) that, to the best ofmy knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of CC Securities, LLC , as of December 31 ,20..!!\_, are true and correct. I further swear (or affirm) that 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: CLAUDIA TAYLOR NOT/\RY PiJBUC:, Str.ih) of New York -----~---..,....,..\_\_,,,....,..,..-------- ''' r>·j'l.\[i0lJ{J172 Uti,ilil--,.<.1111 tl'.ings CountY, Commission Exµlres 10/28/ *o2o.;J.:Z.* This report\*\* contains (check all applicable boxes): ~ (a) Facing page. [K] (b) Statement of Financial Condition. D (c) Statement oflncome (Loss). D (d) Statement of Changes in Financial Condition. D (e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietor's Capital. D (f) Statement of Changes in Liabilities Subordinated to Claims of Creditors. D (g) Computation of Net Capital. D (h) Computation for Determination of Reserve Requirements Pursuant to Rule 15c3-3. D (i) lnfo1mation Relating to the Possession or control Requirements Under Rule 15c3-3. D U) A Reconciliation, including appropriate explanation, of the Computation of Net Capital Under Rule 15c3-l and the Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3. D **(k) A** Reconciliation between the audited and unaudited Statements of Financial Condition with respect to methods of consolidation. IX] (I) An Oath or Affinnation. D (m) A copy of the SIPC Supplemental Report. D (n) A report describing any material inadequacies found to exist or found to have existed since the date of the previous audit. D *(* o) Exemption Report. *~For conditiom of confidential treatment of certain portions of this filing, see Section 240.17 a-5 (e)(J).* {2}------------------------------------------------ # STATEMENT OF FINANCIAL CONomoN **AND** REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM DECEMBER 31, 2018 {3}------------------------------------------------ ## CONTENTS December 31, 2018 | Report of Independent Regl9tered Public Accountiog Firm | | |---------------------------------------------------------|-----| | Flnancla.1 Statement | | | St•ement of Financial Condition | 2 | | Notes to Financlal Statement | 3-5 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) # **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** Managing Member CC Securities, LLC # **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of CC Securities, LLC (the "Company") as of December 31, 2018, and the related notes to the financial statement (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, 2018, in conformity 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 firm 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 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. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. 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. *,6~-ew-J,\_ LLP* We have served as the Company's auditor since 2015. February 26, 2019 ![](_page_4_Picture_13.jpeg) {5}------------------------------------------------ **STATEMENT OF FINANCIAL CONDITION December 31, 2018 (Confidential Pursuant to Rule 17a-5(e)(3))** ## **ASSETS** | Cash and cash equivalents | \$ | 485,390 | |------------------------------------------------------------------------------------------------------------------|----|---------------------------------------| | Prepaid expenses and other assets | | 14,782 | | | \$ | 500,172 | | LIABILITIES AND MEMBER'S EQUITY | | | | Liabilities
Due to parent
Accounts payable and accrued expenses
Income tax payable
Total liabilities | \$ | 30,589
78,143
73,789
182,521 | | Member's equity | | 317,651 | | | \$ | 500,172 | {6}------------------------------------------------ ## **NOTES TO FINANCIAL STATEMENT December 31, 2018** ## **1. Nature of business and summary of significant accounting policies** #### Nature of Business CC Securities, LLC (the "Company") was formed in Delaware in December 2009 and is located in New York. The Company completed its registration as a broker-dealer in April 2011 with the Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority ("FINRA"). The Company is a wholly owned subsidiary of The CenterCap Group, LLC (the "Parent''). The Company is a strategic and financial advisory firm, which provides mergers and acquisitions, private placement and capital raising advisory services *to* middle market companies and fund managers across the real estate industry. #### Basis of Presentation The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"). #### Accounts Receivable The Company carries its accounts receivable at cost less an allowance for doubtful accounts. On a periodic basis, the Company evaluates its accounts receivable and establishes an allowance for doubtful accounts, based on a history of past write-offs, collections, and current credit conditions. As there were no accounts receivable, an allowance for doubtful accounts was not required as of December 31, 2018. #### Income Taxes The Company, a limited liability company, has elected to be treated as a partnership under the applicable provisions of income tax laws. The Company is a single member limited liability company and, accordingly, no income taxes are incurred by the Company as all earnings and losses flow directly to the Parent. However, the Company is subject to city income taxes and records a provision for unincorporated business taxes and reimburses the Parent for taxes incurred and attributable to the Company's income, which is reported in the Parent's tax returns. The Company follows an asset and liability to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases 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 the deferred income tax assets to the amount expected to be realized. The determination of the Company's provision for income taxes requires significant judgment, the use of estimates, and the interpretation and application of complex tax laws. Significant judgment is required in assessing the timing and amounts of deductible and taxable items and the probability of sustaining uncertain tax positions. The benefits of uncertain tax positions are recorded in the Company's financial statements only after determining a more-likelythan-not probability that the uncertain tax positions will withstand challenge, if any, from tax authorities. When facts and circumstances change, the Company reassesses these probabilities and records any changes in the consolidated financial statements as appropriate. Accrued interest and penalties related to income tax matters are classified as a component of income tax expense. {7}------------------------------------------------ ## **NOTES TO FINANCIAL STATEMENT December 31, 2018** ## **1. Nature of business and summary of significant accounting policies (continued)** ## Income Taxes (continued) In accordance with GAAP, the Company is required to determine whether a tax position of the Company is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit to be recognized is measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. De-recognition of a tax benefit previously recognized could result in the Company recording a tax liability that would reduce net assets. This policy also provides guidance on thresholds, measurement, de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition that is intended to provide better financial statement comparability among different entities. It must be applied to all existing tax positions upon initial adoption and the cumulative effect, if any, is to be reported as an adjustment to net assets as of January 1, 2009. Based on its analysis, the Company has determined that the adoption of this policy did not have a material impact on the Company's financial statements upon adoption. However, management's conclusions regarding this policy may be subject to review and adjustment at a later date based on factors including, but not limited to, on-going analyses of and changes to tax laws, regulations and interpretations thereof. As of December 31, 2018, the Company's provision for income taxes consisted of current local income taxes of approximately \$74,000. The Company remains subject to U.S. federal, state and local income tax audits for all periods subsequent to 2015. ### Use of Estimates The preparation of financial statements in conformity 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 at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. ### Recent Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which supersedes the existing guidance for lease accounting, Leases (Topic 840). ASU 2016--02 requires lessees to recognize all leases with a term greater than 12 months to be recognized on the balance sheet through a right of use asset and a lease liability and the disclosure of key information pertaining to leasing arrangements. This new guidance is effective for years beginning after December 15, 2018, with early adoption permitted. The Company does not expect ASU 2016-02 will have a material impact on its financial statements and related disclosures. ### **2. Cash and cash equivalents and concentration of credit risk** The Company considers bank money market accounts to be cash equivalents. The Company maintains its cash balances in one financial institution, which at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts and believes it is not subject to any significant credit risk on cash. {8}------------------------------------------------ **NOTES TO FINANCIAL STATEMENT December 31, 2018** # **3. Related party transactions** ## Expense Sharing Agreement and Due to Parent Pursuant to an expense sharing agreement, the Company's Parent provides various services and other operating assistance to the Company. These include professional services, physical premises, utilities, the use of office equipment, travel, insurance, subscriptions, personnel, payroll taxes and other general and administrative services. The total amount paid by the Company to the Parent during 2018 under this agreement was approximately \$249,000. As of December 31, 2018, approximately \$31,000 is classified as Due to parent in the Statement of Financial Condition. ## **4. Concentration of accounts receivable** There were no amounts due from customers as of December 31, 2018. ## **5. Net capital requirement** The Company is a member of the Financial Industry Regulatory Authority and is subject to the Securities and Exchange Commission Uniform Net Capital Rule 15c3-1. This Rule requires the maintenance of minimum net capital and that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1 and that equity capital may not be withdrawn if the resulting net capital ratio would exceed 10 to 1. At December 31, 2018, the Company's net capital was approximately \$303,000, which was approximately \$291,000 in excess of its minimum requirement of \$12,000. ## **6. Exemption from Rule 15c3-3** The Company is exempt from the Securities and Exchange Commission Rule 15c3-3 pursuant to the exemptive provisions under sub-paragraph (k)(2)(i) and, therefore, is not required to maintain a "Special Reserve Bank Account for the Exclusive Benefit of Customers". ## **7. Subsequent Events** Management of the Company has evaluated all subsequent transactions through the date the financial statement was available to be issued. It has been determined that there are no subsequent events that require disclosure. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.