# CC SECURITIES, LLC X-17A-5 (2021-03-01) — Broker-dealer annual report - Company: CC SECURITIES, LLC - Form: X-17A-5 - Filed: 2021-03-01 - Period: 2020-12-31 - Accession: 0001488053-21-000001 - CIK: 1488053 - File #: 8-68546 - Material weakness: No - Auditor: RW Group, LLC - Auditor location: Kennett Square, PA - Contact: Andrew Miller - Phone: 917-710-5598 - Signed by: Andrew Miller (FinOp) Original filing: https://www.sec.gov/Archives/edgar/data/1488053/000148805321000001/ccsshort20.pdf --- {0}------------------------------------------------ STATEMENT OF FINANCIAL CONDITION AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM DECEMBER 31, 2020 {1}------------------------------------------------ **UNITEDSTATES SECURlTlESANDEXCHANGECOMMISSION Washington, D.C. 20549** ## **ANNUAL AUDITED REPORT FORM X-17A-5 PART Ill** #### **FACING PAGE** | | 0MB APPROVAL | | | | |---------------------------|--------------|------------------|--|--| | 0MB Number: | | 3235-0123 | | | | Expires: | | October 31, 2023 | | | | Estimated average burden | | | | | | hours per resoonse 12.00 | | | | | ## SEC FILE NUMBER 8- 68546 **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 _
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_ | | |---------------------------------------------------------------------------------------------|--------------------------------|--------------------|-----------------------------------|--| | | l\1M/DD/YY | | 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 1.0. NO. | | | 3 Landmark Square - | 5th Floor | | | | | | (No . and Street) | | | | | Stamford | CT | | 06901-2512 | | | (City) | (State) | | (Zip Code) | | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD ·ro TrIIS REPOR'f
Andrew MIiier | | | 917-710-5598 | | | | | | (Area Code - Telephone Number) | | | | B. ACCOUNTANT IDENTI.FICA1'ION | | | | #### IN.l)EPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report\* ## RW Group, LLC | | (Name - if individual, state last, first, middle name) | | | |--------------------------------|----------------------------------------------------------------------|---------|------------| | 400 Old Forge Lane-Suite 401 | Kennett Square | PA | 19348-1914 | | (Address) | (City) | (State) | (Zip Code) | | CHECK ONE: | | | | | [Z]certified Public Accountant | | | | | Public Accountant | | | | | .__ | Accountant not resident in United States or any of its possessions . | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | | *\*Claims for exemption from the requirernent that the annual report be covered by the opinion of an independent public accountant must be supported by a statement of/acts and circu,nstances relied on as the basis/or the exetnption. See Section 240. ! 7a-5{e)(2)* SEC 1410 (11-05) **Potential 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.** {2}------------------------------------------------ ## **OATH OR AFFIRMATION** | --
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- | |--------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------| | CC Securities, LLC | | my knowledge and belief the accotnpanying 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 follo\vS: | | neither the company nor any partner, proprietor, principal officer or director has any proprietary interest in any account | | | | Signature | | | ClAUOIA TAYLOR
NOTARY PUBLIC. Stale of N6W YIJ1l
No. 01TA5068172
uua1;1ieCoorrisslon Exp't\Js !0081itJM,J:. | Finop
Title | | Notary Public | | | This report\*\* contains (check all applicable boxes): - 0 (a) Facing Page. - - **0**(b) Statement of Financial Condition. O ( c) Statement of Income (Loss) or, if there is other co1nprehensive income in the period(s) presented, a Staten1ent of Comprehensive Income (as defined in §210.1 -02 of Regulation S-X). - - 8 (d) Statement of Changes in Financial Condition. (e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital. - 0 (f) Statement of Changes in Liabilities Subordinated to Claims of Creditors. - (g) Computation of Net Capital. - (h) Computation for Determination of Reserve Requiretnents Pursuant to Rule 15c3-3. - (i) Information Relating to the Possession or c:ontrol Requirements Under Rule 15c3-3. - **D** U) A Reconciliation, including appropriate explanation of the Co1nputation of Net Capital Under Rule 1Sc3- 1 and the - Computation for Determination of the Reserve Requirements Under Exhibit A of Rule l5c3-3. - **0** (k) A Reconciliation between the aud ited and unaudited Statements of Financial Condition with respect to 1nethods of consolidation. - (I) An Oath or Affirmation. - (m) A copy of the SIPC Supplemental Report. - (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. 17 a-5(e)(3).* {3}------------------------------------------------ **CONTENTS December 31, 2020** | Report of Independent Registered Public Accounting Firm | 1 | |---------------------------------------------------------|-----| | Financial Statement | | | Statement of Financial Condition | 2 | | Notes to Financial Statement | 3-6 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) #### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To t he Board of Directors of CC Securit ies, LLC #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of CC Securities, LLC as of December 31, 2020, and the relat ed 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 CC 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 responsibi lity of CC Securities, LLC's management. Our responsibility is to express an opinion on CC 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 w ith respect to CC Securit ies, 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 t he audit to obtain reasonable assurance about whether the statement of financia l condition is free of material misstatement. The company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, 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. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the statement of financial position, assessing t he accounting principles used and significant estimates made by management, as well as evaluating the overall statement of financial position presentation. We believe that our audit provides a reasonable basis for our opinion. We have served as CC Securities, LLC's auditor since 2019. Kennett Square, Pennsylvania February 26, 2021 400 Old Forge Lane Suite 401 Kennett Square, PA 19348-1914 Phone: 610· 713-8208 Fax: 610-807--0370 www .rwgroupllc.com {5}------------------------------------------------ ## **STATEMENT OF FINANCIAL CONDITION** **December 31, 2020** # **ASSETS** Cash and cash equivalents \$ 1,077,526 Prepaid expenses and other assets 21 ,435 Due from parent 19,231 \$ 1,118,192 **LIABILITIES AND MEMBER'S EQUITY Liabilities** Accounts payable and accrued expenses \$ 54,004 Income tax payable to parent 69,312 Total liabilities 123,316 **Member's equity** 994,876 \$ 1,118,192 See accompanying notes to financial statement. 2 {6}------------------------------------------------ **NOTES TO FINANCIAL STATEMENT December 31, 2020** ### **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 statement has been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"). #### Use of Estimates The preparation of financial statement 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 statement. Actual results could differ from those estimates. #### Fees Receivable Fees receivable are carried at the amounts billed to customers, net of an allowance for credit losses, which is an estimate for credit losses based on a review of all outstanding amounts. #### Allowance for credit losses Effective January 1, 2020, the Company adopted ASC Topic 326, Financial Instruments - Credit Losses ("ASC 326"). ASC 326 impacts the impairment model for certain financial assets measured at amortized cost by requiring a current expected credit loss ("CECL") methodology to estimate expected credit losses over the entire life of the financial asset, recorded at inception or purchase. Under the accounting update, the Company has the ability to determine there are no expected credit losses in certain circumstances. The Company identified fees receivable carried at amortized cost as impacted by the new guidance. ASC 326 specifies that the Company adopt the new guidance prospectively by means of a cumulative-effect adjustment to the opening retained earnings as of the beginning of the first reporting period effective. The Company believes there is no impact to opening member's equity upon adoption of ASC 326. The allowance for credit losses is based on the Company's expectation of the collectability of financial instruments carried at amortized cost, including fees receivable utilizing the CECL framework. The Company considers factors such as historical experience, credit quality, age of balances and current 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 fees receivables is not significant until they are 90 days past due on the contractual arrangement and expectation of collection in accordance with industry standards. Management does not believe that an allowance is required as of December 31, 2020. {7}------------------------------------------------ **NOTES TO FINANCIAL STATEMENT December 31 , 2020** ### **1. Nature of business and summary of significant accounting policies (continued)** #### 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. 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. For the year ended December 31, 2020, the Company's provision for income taxes consisted of current local income taxes of approximately \$69,000. The Company remains subject to U.S. federal, state and local income tax audits for all periods subsequent to 2017. {8}------------------------------------------------ **NOTES TO FINANCIAL STATEMENT December 31, 2020** ## **1. Nature of business and summary of significant accounting policies (continued)** Leases In February 2016, the FASS issued ASU 2016-02, Leases (Topic 842), which supersedes the existing guidance for lease accounting, Leases (Topic 840). ASU 2016-02 requ ires lessees to recognize all leases with a term greater than 12 months 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 guidance is effective for years beginning after December 15, 2018, with early adoption permitted. ASU 2016-02 did not have a material impact to the Company's financial statement 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. ## **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 2020 under this agreement was approximately \$365,000. As of December 31 , 2020, the overpayment of approximately \$19,000 is classified as Due from parent in the Statement of Financial Condition. ### **4. Concentration of fees receivable** There were no amounts due from customers as of December 31 , 2020. ## **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 1 O to 1. At December 31, 2020, the Company's net capital was approximately \$954,000, which was approximately \$946,000 in excess of its minimum requirement of approximately \$8,000. {9}------------------------------------------------ **NOTES TO FINANCIAL STATEMENT December 31, 2020** ### **6. Exemption from Rule 15c3-3** The Company is exempt from the provisions of SEC Rule 15c3-3 under the Securities Exchange Act of 1934. The Company does not hold customers' cash or securities and therefore, has no obligations under SEC Rule 15c3-3 under the Securities Exchange Act of 1934. ### **7. Risks and Uncertainties** During the 2020 calendar year, the World Health Organization has declared the outbreak of the coronavirus ("Covid-19") to constitute a "Public Health Emergency of International Concern". This pandemic has disrupted economic markets and the 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 of 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 statement does not include any adjustments that might result from the outcome of this uncertainty. ### **8. Subsequent Events** Management of the Company has evaluated all subsequent transactions through February 26, 2021, the date the financial statement was available to be issued. It has been determined that there are no subsequent events that require disclosure. 6 Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.