# CC SECURITIES, LLC X-17A-5 (2023-02-28) — Broker-dealer annual report - Company: CC SECURITIES, LLC - Form: X-17A-5 - Filed: 2023-02-28 - Period: 2022-12-31 - Accession: 0001488053-23-000002 - CIK: 1488053 - File #: 8-68546 - Type: Broker-dealer - Material weakness: No - Auditor: RW Group, LLC - Auditor location: Kennett Square, PA - Contact: Andrew Miller - Phone: 2127514422 - Email: amiller@dfppartners.com - Website: dfppartners.com - Signed by: Andrew Miller (Chief Financial Officer) Original filing: https://www.sec.gov/Archives/edgar/data/1488053/000148805323000002/ccspublic2022.pdf --- {0}------------------------------------------------ # **STATEMENT OF FINANCIAL CONDITION AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** **DECEMBER 31, 2022** {1}------------------------------------------------ | | UNITED STATES | | | | | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------|----------------------------------------|-----------------------------------------------------------------------------------|--|--| | SECURITIES AND EXCHANGE COMMISSION | | | OMB APPROVAL | | | | Washington, D.C. 20549 | | | OMB Number:
3235-0123
Expires:
Oct. 31, 2023
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hours per response | | | | | ANNUAL REPORTS | | | | | | FORM X-17A-5 | | | SEC FILE NUMBER | | | | | PART II | | 8-68546 | | | | | FACING PAGE | | | | | | Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | | | | | | | REPORT FOR THE PERIOD BEGINNING | 01/01/2022 | AND ENDING | 12/31/2022 | | | | | MM/DD/YY | | MM/DD/YY | | | | | A. REGISTRANT IDENTIFICATION | | | | | | NAME OF FIRM: CC Securities, LLC | | | | | | | TYPE OF REGISTRANT (check all applicable boxes): | | | | | | | Security-based swap dealer
&Broker-dealer | | □Major security-based swap participant | | | | | [] Check here if respondent is also an OTC derivatives dealer | | | | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | | | | | 3 Landmark Square - 5th Floor | | | | | | | | {No. and Street) | | | | | | Stamford | CT | | 06901-2512 | | | | (City) | (State) | | (Zip Code) | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | Andrew Miller
917-710-5598 | | | amiller@dfppartners.com | | | | (Name) | (Area Code - Telephone Number) | | (Email Address) | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this filing* | | | | | | | RW Group, LLC | | | | | | | | (Name - if individual, state last, first, middle name) | | | | | | 400 Old Forge Lane - Suite 401 | Kennett Square | PA | 19348 | | | | (Address) | (City) | (State) | (Zip Code) | | | | 02/23/2010
(Date of Registration with PCAOB)(if applicable) | | | 5020
(PCAOB Registration Number, If applicable) | | | | | | | | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | | * Claims for exemption from the requirement that the annual reports of an independent public
accountant must be supported by a statement of facts and circumstances relied on as the exemption. See 17 CFR
240.17a-5(e)(1){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 OMB control number. | | | | | | {2}------------------------------------------------ #### OATH OR AFFIRMATION I, Andrew Miller, swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of CC Securities, LLC, as of December 31, 2022, is true and correct. I further the company nor any partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely as that of a customer. > LORI ALESSI NOTARY PUBLIC, STATE OF NEW YORK Registration No. 01AL6425911 Qualified In Queens County Commission Expires November 29, 20 x 5 Signature: Undres Title: Chief Financial Officer Notary Public #### This filing\*\* contains (check all applicable boxes): - 区 (a) Statement of financial condition. - 区 (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. - [ (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. - □ (i) Computation of tangible net worth under 17 CFR 240.18a-2. - □ (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - | A to 17 CFR 240.18a-4, as applicable. - [ (I) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. - [ (m) Information relating to possession or control requirements for customers under 17 CFR 240,15c3-3. - □ {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 worth under 17 CFR 240.18c3-1, 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. - O (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - മ (q) Oath or affirmation in accordance with 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable. - □ {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. - 区 (t) Independent public accountant's report based on an examination of the statement of financial condition. - 0 (u) Independent public accountant's report based on an examination of the financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - O (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 240.18a-7, as applicable. - | (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.17-12, as applicable. - □ (y) Report describing any material inadequacies 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). - □ (z) Other: \*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e)(3) or 17 CFR240.18a-7(d)(2), as applicable. {3}------------------------------------------------ # **CONTENTS December 31, 2022** | Report of Independent Registered Public Accounting Firm | | |---------------------------------------------------------|-----| | 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 the Member of CC Securities, LLC # **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of CC Securities, LLC as of December 31, 2022, 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 CC Securities, LLC as of December 31, 2022 in conformity with accounting principles generally accepted in the United States of America. # **Basis for Opinion** This financial statement is the responsibility 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 with respect to CC 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. *RW Group, LLC* We have served as CC Securities, LLC's auditor since 2019. Kennett Square, Pennsylvania February 28, 2023 {5}------------------------------------------------ # **STATEMENT OF FINANCIAL CONDITION** **December 31, 2022** # **ASSETS** | Cash and cash equivalents | \$
1,009,040 | |------------------------------------------------------|-----------------| | Fees receivable | 1,190,512 | | Prepaid expenses and other assets | 23,338 | | | \$
2,222,890 | | LIABILITIES AND MEMBER'S EQUITY | | | Liabilities
Accounts payable and accrued expenses | \$
1,142,005 | | Due to parent | 42,889 | | Total liabilities | 1,184,894 | | Member's equity | 1,037,996 | | | \$
2,222,890 | {6}------------------------------------------------ ### **NOTES TO FINANCIAL STATEMENT December 31, 2022** # **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. Fees receivable were approximately \$1,384,000 as of December 31, 2021. Fees receivable were approximately \$1,191,000 as of December 31, 2022. #### *Allowance for credit losses* The Company applies Accounting Standards Codification ("ASC") Topic 326, Financial Instruments – Credit Losses ("ASC 326") for certain financial assets measured at amortized cost to estimate expected credit losses over the entire life of the financial asset, recorded at inception or purchase. 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, 2022. #### *Significant Judgements* Revenue from contracts with customers includes fees from placement and marketing fee revenues from raising capital. The recognition and measurement of revenue is based on the assessment of individual contract terms. Significant judgment 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; and whether constraints on variable consideration should be applied due to uncertain future events. {7}------------------------------------------------ # **NOTES TO FINANCIAL STATEMENT December 31, 2022** ### **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, 2022, the Company had no provision for income taxes. The Company remains subject to U.S. federal, state and local income tax audits for all periods subsequent to 2019. {8}------------------------------------------------ **NOTES TO FINANCIAL STATEMENT December 31, 2022** # **1. Nature of business and summary of significant accounting policies (continued)** ### *Leases* 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 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. As of December 31, 2022, the amount due by the Company to the Parent was approximately \$43,000 is classified as Due to parent in the Statement of Financial Condition. ### **4. Concentration of fees receivable** As of December 31, 2022, 53% of the fees receivable were due from one customer. # **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, 2022, the Company's net capital was approximately \$848,000, which was approximately \$769,000 in excess of its minimum requirement of approximately \$79,000. {9}------------------------------------------------ **NOTES TO FINANCIAL STATEMENT December 31, 2022** ### **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. Subsequent Events** Management of the Company has evaluated all subsequent transactions through February 28, 2023, the date the financial statement was available to be issued. It has been determined that there are no subsequent events that require recognition or disclosure in the accompanying financial statement. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.