# ARTIST CAPITAL LLC X-17A-5/A (2022-04-06) — Broker-dealer annual report - Company: ARTIST CAPITAL LLC - Form: X-17A-5/A - Filed: 2022-04-06 - Period: 2021-12-31 - Accession: 0001491897-22-000003 - CIK: 1491897 - File #: 8-68598 - Type: Broker-dealer - Material weakness: No - Auditor: Spicer Jeffries LLP - Auditor location: Denver, CO - Contact: Denise Sadowski - Phone: 646-289-3297 - Website: spicerjeffries.com - Signed by: Jonathan Sands (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1491897/000149189722000003/confirep.pdf --- {0}------------------------------------------------ ### REPORT PURSUANT TO RULE 17a-5(d) YEAR ENDED DECEMBER 31, 2021 The report is deemed CONFIDENTIAL in accordance with Rule 17a-5(e)(3) under the Securities Exchange Act of 1934. A statement of financial condition has been filed with the Securities and Exchange Commission simultaneously herewith as a PUBLIC DOCUMENT. {1}------------------------------------------------ X {2}------------------------------------------------ - - - - - - - - - - - - - - - XXXXXXXXXXXXXX - - - - - - - - - - - - {3}------------------------------------------------ # CONTENTS | | Page(s) | |-------------------------------------------------------------------------------------------------------------------------------|---------| | Report of Independent Registered Public Accounting Firm | 3-4 | | Statement of Financial Condition | 5 | | Statement of Operations | 6 | | Statement of Changes in Member's Equity | 7 | | Statement of Cash Flows | 8 | | Notes to Financial Statements | 9-13 | | Supplementary Schedule: | | | Computation of Net Capital Pursuant to Uniform Net
Capital Rule 15c3-1 | 14 | | Report of Independent Registered Public Accounting Firm on the
Company's Exemption Report Including Management's Statement | 15-16 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) 4601 DTC BOULEVARD · SUITE 700 DENVER, COLORADO 80237 TELEPHONE: (303) 753-1959 FAX: (303) 753-0338 www.spicerjeffries.com # REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Member of Artist Capital LLC ### Opinion on the Financial Statements We have audited the accompanying statement of financial condition of Artist Capital LLC (the "Company") as of December 31, 2021, the related statements of operations, changes in member's equity and cash flows for the year then ended, and the related notes and schedules (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial condition of the Company as of December 31, 2021, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. ### Basis for Opinion These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements 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 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 statements are 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 statements, 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. ![](_page_4_Picture_9.jpeg) {5}------------------------------------------------ ## Supplemental Information The Computation of Net Capital has been subjected to audit procedures performed in conjunction with the audit of the Company's financial statements. The supplemental information is the responsibility of the Company's management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with 17 C.F.R. §240.17a-5. In our opinion, the Computation of Net Capital is fairly stated, in all material respects, in relation to the financial statements as a whole. We have served as Artist Capital LLC's auditor since 2012. Denver, Colorado February 23, 2022 {6}------------------------------------------------ ## STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2021 # ASSETS | Cash & cash equivalents | S | 4,791,975 | |-----------------------------------------------|------|------------| | Commissions receivable | | 7,077,908 | | Fixed assets | | 297.959 | | Prepaid expenses | | 93.589 | | Other assets | | 128,458 | | Right of use assets | | 477,349 | | | | | | | S | 12,867,238 | | | | | | LIABILITIES AND MEMBER'S EQUITY | | | | | | | | LIABILITIES: | | | | Commissions payable | S | 1,650,786 | | Lease liability (Note 3) | | 549,348 | | Due to related parties (Note 5) | | 157,200 | | Accrued liabilities | | 111.252 | | | ಲ್ಲಿ | 2,468,586 | | | | | | COMMITMENTS AND CONTINGENCIES (Notes 3 and 5) | | | | MEMBER'S EQUITY (Note 2) | | 10,398,652 | | | S | 12,867,238 | The accompanying notes are an integral part of this statement. {7}------------------------------------------------ # STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 2021 # REVENUE: | Commissions and service income | S
14,212,612 | |-------------------------------------|-----------------| | EXPENSES: | | | Commissions, salaries and benefits | 7,737,376 | | Professional fees | 587,510 | | Travel and entertainment | 147,937 | | General and administrative expenses | 548,413 | | Advertising and marketing | 62,268 | | Occupancy and equipment | 165,337 | | Regulatory fees | 67,113 | | Research | 8,797 | | Total expenses | 9,324,751 | | NET INCOME | S
4,887,861 | {8}------------------------------------------------ # STATEMENT OF CHANGES IN MEMBER'S EQUITY YEAR ENDED DECEMBER 31, 2021 | | | Member's Equity | | | |--------------------------------|-------|--------------------------|--|--| | BALANCE, December 31, 2020 | સ્ત્ર | 6,801,131 | | | | Contributions
Distributions | | 2,109,660
(3,400,000) | | | | Net income | S | 4,887,861 | | | | BALANCE, December 31, 2021 | S | 10,398,652 | | | {9}------------------------------------------------ # STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2021 | CASH FLOWS FROM OPERATING ACTIVITIES: | | | |-----------------------------------------------------------------------|---|-------------| | Net income | S | 4,887,861 | | Adjustments to reconcile net income to net cash provided by (used in) | | | | operating activities: | | | | Decrease in commissions receivable | | 344.126 | | Decrease in fixed assets | | 565.164 | | Increase in prepaid expenses | | (17,078) | | Increase in other assets | | (3.784) | | Increase in right of use aset | | (477,349) | | Decrease in commissions payable | | (930,047) | | Decrease in lease liability | | (106,710) | | Increase in due to related parties | | | | Decrease in accrued liabilities | | (113,850) | | Net cash flows provided by operating activities | | 4,148,332 | | CASH FLOWS FROM FINANCING ACTIVITIES: | | | | Contributions | | 2.109.660 | | Distributions | | (3,400,000) | | Net cash flows provided by financing activities | | (1,290,340) | | NET DECREASE IN CASH AND CASH EQUIVALENTS | | 2,857,992 | | CASH & AND CASH EQUIVALENTS, at beginning of year | | 1,933,982 | | CASH & AND CASH EQUIVALENT, at end of year | S | 4,791,975 | The accompanying notes are an integral part of this statement. {10}------------------------------------------------ # NOTE 1 - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES # Organization and business # Cash and Cash Equivalents # Revenue Recognition # Estimates ### Income taxes {11}------------------------------------------------ (continued) # NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) # NOTE 2 - NET CAPITAL REQUIREMENTS # NOTE 3 - COMMITMENTS Leases – # NOTE 3 - COMMITMENTS {12}------------------------------------------------ # NOTES TO FINANCIAL STATEMENTS # NOTE 3 - COMMITMENTS (continued) The package of practical expedient has three components. The Company has specific elections it may utilize; (i) not to reassess historical lease classification, (i) not to recognize short-term leases on the statement of financial position and (iii) not to separate lease and non-lease components. The practical expedient is an all or nothing election; the Company elected to use the package of practical expedients. The Company may elect the hindsight practical expedient to; (i) reassess the likelihood that a lease renewal. termination or purchase option will be exercised and (ii) reassess the impairment of ROU assets. The Company elected to use the hindsight practical expedient. The Company may elect to include both lease and non-lease components of a lease as a single component, by asset class, and account for both components as part of the lease payment. This election relieves the Company from the obligation to perform a pricing allocation. The Company elected to include both the lease components as a single component. For short-term leases, defined as a lease term of twelve months or less, the Company can elect not to apply the recognition requirements and recognize lease payments in the statement of operations on a straight-line basis and recognize variable lease payments, if any, as they are incurred. The Company elected not to apply the recognition requirements to leases classified as short term. ### NOTE 4 - LEASES The Company has an operating lease for office space. This lease has a remaining term ranging from one year to three years and does not contain options to either extend or terminate the lease. The components of lease expense for the year ended December 31, 2021 were as follows: | Operating lease Cost: | | | |-----------------------------|----|---------| | Right-of-use assets | A | 99,858 | | Accumulated amortization | | 15,582 | | Total operating lease costs | ಳಿ | 115,439 | {13}------------------------------------------------ ### NOTE 4 – LEASES (continued) | Operating lease Cost: | | | |------------------------------------------------------------------------|-------|------------------| | Right-of-use assets | ਦੇ ਰੋ | 99,858 | | Accumulated amortization | | 15,582 | | Total operating lease costs | ಕಿತ | 115,439 | | Operating Leases: | | | | Right-of-use assets | ಕಿತ | 786,828 | | Accumulated amortization | | 309,479 | | Right-of-use assets, net | ಿತ | 477,349 | | Operating lease Liabilities | ಕಿ | 549,348 | | Weighted Average Remaining Lease Terms | | | | Operating Leases | | 4.5 years | | Weighted Average Discount Rate: | | | | Operating Leases | | 0.79 | | Maturities of lease liabilities at December 31, 2021, were as follows: | | | | Year | | Operating Leases | | 2022 | | 127,965 | | 2023 | | 130,524 | | 2024 | | 133,134 | | Thereafter | | 200,792 | | otal lease payments | | 592,416 | | ess imputed interest | | (43,068) | | Operating lease liability | ਚਰ | 549,348 | | | | | ### NOTE 5 - RELATED PARTY TRANSACTIONS {14}------------------------------------------------ ### NOTES TO FINANCIAL STATEMENTS # NOTE 6 - CONTINGENCIES The Company is engaged in various corporate financing activities in which counterparties primarily include managers of investment partnerships. In the event that counterparties do not fulfill their obligations, the Company may be exposed to risk. The risk of default depends on the creditworthiness of the counterparty. It is the Company's policy to review, as necessary, the credit standing of each counterparty with which it conducts business. Price risk is comprised of interest rate, market and currency risk. Interest rate risk is the value of financial instruments (mainly investments) may fluctuate as a result of changes in market interest rates. Market risk is the risk that the market values of investments changes in market conditions. Investments in private investment companies are subject to market and interest rate risk is the risk that the value of instruments may fluctuate as a result of changes in foreign exchange rates. As of December 31, 2021, substantially all assets and liabilities of the Company were denominated in United States dollars. The Company also maintains its cash balance in a financial institution, which at times may exceed federally insured limits. As of December 31, 2021, the Company held \$4,541,975, in excess of the federally insured limit at the financial institution. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk. The Company's financial instruments, including cash and cash equivalents, commission receivable, prepaid expenses, fixed assets, other assets, lease liability, due to related party, accrued liabilities, other current liabilities, and commissions payable are carried at amounts that approximate fair value due to the short-term nature of those instruments. Investments are valued as described in Note 1. ### NOTE 7 -SUBSEQUENT EVENTS The Company has performed an evaluation of subsequent events through the date the financial statements were issued. The evaluation did not result in any other subsequent events that required disclosures and/or adjustments. {15}------------------------------------------------ SUPPLEMENTARY INFORMATION {16}------------------------------------------------ ## COMPUTATION OF NET CAPITAL PURSUANT TO UNIFORM NET CAPITAL RULE 15c3-1 DECEMBER 31, 2021 | CREDIT: | | |-------------------------------------------------------------------------------------------------------------|-----------------| | Member's equity | \$ 10,398,652 | | DEBITS: | | | Commissions receivable, net of commissions payable | 5,427,122 | | Fixed Assets | 297,959 | | Prepaid expenses | 93,589 | | Other assets | 128,458 | | Total debits | 5,947,128 | | NET CAPITAL | 4,451,524 | | Minimum requirements of 6-2/3% of aggregate indebtedness of
\$1,991,238 or \$5,000, whichever is greater | 132,749 | | Excess net capital | S
4,318,775 | | AGGREGATE INDEBTEDNESS: | | | Commissions Payable | ಕಾ
1,650,786 | | Other Payables | 340.450 | | | S
1,991,238 | ### RATIO OF AGGREGATE INDEBTEDNESS TO NET CAPITAL .45 to 1 NOTE: There are no material differences between the above computation of net capital and the corresponding computation as submitted by the Company with the unaudited Form X-17 A-5 Part II Filing as of December 31, 2021. {17}------------------------------------------------ ![](_page_17_Picture_0.jpeg) 4601 DTC BOULEVARD • SUITE 700 DENVER, COLORADO 80237 TELEPHONE: (303) 753-1959 FAX: (303) 753-0338 www.spicerjeffries.com # REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Member of Artist Capital LLC We have reviewed management's statements, included in the accompanying management statement regarding compliance with Rule 15c3-3 exemption report, in which (1) Artist Capital LLC (the "Company") identified the following provisions of 17 C.F.R. §15c3-3(k) under which the Company claimed an exemption from 17 C.F.R. §240.15c3-3(k)(2)(i) (the "exemption provisions") and (2) the Company stated that the Company met the identified exemption provisions throughout the period from January 1, 2021 through April 8, 2021 without exception and the company's compliance with Footnote 74 of SEC Release 34-70073 in which (1) Company identified the provisions of Footnote 74 under which the Company is not required to claim an exemption from 17 C.F.R. 240.15c3-3 and (2) the Company stated that the Company met the identified provisions of Footnote 74 throughout the period from April 8, 2021 through December 31, 2021 without exception. The Company's management is responsible for compliance with Footnote 74 and its statements. Exchange Act of 1934 and the provisions set forth in Footnote 74 of SEC Release 34-70073. Our review was conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) and, accordingly, included inquiries and other required procedures to obtain evidence about the Company's compliance with the exemption provisions. A review is substantially less in scope than an examination, the objective of which is the expression of an opinion on management's statements. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to management's statements referred to above for them to be fairly stated, in all material respects, based on the provisions set forth in paragraph (k)(2)(i) of Rule 15c3-3 under the Securities Denver, Colorado February 23, 2022 ![](_page_17_Picture_9.jpeg) {18}------------------------------------------------ February 22, 2022 To whom it may concern: Artist Capital, (the Company") is a registered broker-dealer subject to Rule 17a-5 promulgated by the Securities and Exchange Commission (17 C.F.R. §240.17a-5, "Reports to be made by certain brokers and dealers''). This Exemption Report was prepared as required by 17 C.F.R. §240.l7a-5(d)(l) and (4). To the best of its knowledge and belief, the Company states the following: The Company claimed an exemption from 17 C.F.R. §240.15c3-3 under the following provisions of 17 C.F.R. §240.15c3-3 (k) (2) (i) for the period January 1, 2021 through April 8, 2021. The Company met the identified exemption provisions in 17 C.F.R. §240.15c3-3(k) for the period January 1, 2021 through April 8, 2021 without exception. We identified the provisions of Footnote 74 under which the Company is not required to claim an exemption from 17 C.F.R. §240.15c3-3. The Company met the identified provisions of Footnote 74 for the period April 8, 2021 through December 31, 2021 without exception. The Company's management is responsible for compliance with Footnote 74 and its statements. The Company hereby affirms that, to the best of its knowledge and belief, this Exemption Report is true and correct. Regards, Jonathan Sands {19}------------------------------------------------ ![](_page_19_Picture_0.jpeg) 4601 DTC BOULEVARD · SUITE 700 DENVER, COLORADO 80237 TELEPHONE: (303) 753-1959 FAX: (303) 753-0338 www.spicerjeffries.com ## REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON APPLYING AGREED-UPON PROCEDURES To the Board of Directors and Member of Artist Capital LLC In accordance with Rule 17a-5(e)(4) under the Securities Exchange Act of 1934, we have performed the procedures enumerated below with respect to the accompanying General Assessment Reconciliation (Form SIPC-7) to the Securities Investor Protection (SIPC) for the year ended December 31, 2021, which were agreed to by Artist Capital LLC (the "Company"), the Securities and Exchange Commission, the Financial Industry Regulatory Authority, Inc. and SIPC, solely to assist you and the other specified parties in evaluating the Company's compliance with the applicable instructions of the General Assessment Reconciliation (Form SIPC-7). The Company's management is responsible for the Company's compliance with those requirements. This agreedupon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures we performed and our findings are as follows: - 1. Compared the listed assessment payments in Form SIPC-7 with respective cash disbursement records entries noting no differences; - 2. Compared the amounts reported on the audited Form X-17A-5 for the year ended December 31, 2021, with the amounts reported in Form SIPC-7 for the year ended December 31, 2021, noting no differences; - 3. Compared any adjustments reported in Form SIPC-7 with supporting schedules and working papers noting no differences; - 4. Proved the arithmetical accuracy of the calculations reflected in Form SIPC-7 and in the related schedules and working papers supporting the adjustments noting no differences; and - 5. Compared the amount of any overpayment applied to the current assessment with the Form SIPC-7 on which it was originally computed noting no differences. ![](_page_19_Picture_10.jpeg) {20}------------------------------------------------ We were not engaged to, and did not conduct an examination, the objective of which would be the expression of an opinion on compliance. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report is intended solely for the information and use of the specified parties listed above and is not intended to be and should not be used by anyone other than these specified parties. Denver, Colorado February 23, 2022 {21}------------------------------------------------ # GENERAL ASSESSMENT RECONCILIATION PURSUANT TO FORM SIPC-7 YEAR ENDED DECEMBER 31, 2021 | Amount paid with Form SIPC-7 | S | 15,674 | |-------------------------------------|---|---------| | Less payments made with Form SIPC-6 | | (5,164) | | General assessment per Form SIPC-7 | S | 20.838 | Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.