# ARTIST CAPITAL LLC X-17A-5 (2023-02-28) — Broker-dealer annual report - Company: ARTIST CAPITAL LLC - Form: X-17A-5 - Filed: 2023-02-28 - Period: 2022-12-31 - Accession: 0001491897-23-000001 - CIK: 1491897 - File #: 8-68598 - Type: Broker-dealer - Material weakness: No - Auditor: Spicer Jeffries LLP - Auditor location: Denver, CO - Contact: Denise Sadowski - Phone: 6462893297 - Email: ds@artistcapital.om - Website: artistcapital.om - Signed by: Jonathan Sands (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1491897/000149189723000001/confirep.pdf --- {0}------------------------------------------------ ### REPORT PURSUANT TO RULE 17a-5(d) YEAR ENDED DECEMBER 31, 2022 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}------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ## ANNUAL REPORTS FORM X-17A-5 PART III OMB APPROVAL OMB Number: 3235-0123 Expires: Oct. 31, 2023 Estimated average burden hours per response: 12 SEC FILE NUMBER | | FACING PAGE
Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------|-----------------------|--------------------------------------------| | Filing for the period beginning 1/1/2022 | | AND ENDING 12/31/2022 | | | | MM/DD/YY | | MM/DD/YY | | | A. REGISTRANT IDENTIFICATION | | | | NAME OF FIRM: ARTIST CAPITAL LLC | | | | | TYPE OF REGISTRANT (check all applicable boxes):
Broker-dealer - LI Security-based swap dealer JJ Major security-based swap participant
Check here if respondent is also an OTC derivatives dealer | | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | 20 West 55th Street, 11th floor | | | | | | (No. and Street) | | | | New York | NY | | 10019 | | (City) | (State) | | (Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | Denise Sadowski | 646-289-3297 | | ds@artistcapital.om | | (Name) | (Area Code - Telephone Number) | (Email Address) | | | | B. ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing®
Spicer Jeffries | | | | | | (Name - if individual, state last, first, and middle name) | | | | 4601 DTC Boulevard, Suite 700 | Denver | CO | 80237 | | (Address) | (City) | (State) | (Zip Code) | | (Date of Registration with PCAOB)(if applicable) | FOR OFFICIAL USE ONLY | | (PCAOB Registration Number, if applicable) | | * Claims for exemption from the requirement that the annual reports of an independent public
CFR 240.17a-5(e)(1)(i), if applicable. | accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 | | | Pensons 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 | Jonathan Sands | | | _ swear (or affirm) that, to the best of my knowledge and belief, the | | |----------------|--|--|----------------------------------------------------------------------------------------|-------| | | | | financial report pertaining to the firm of Artist Capital LLC | as of | | 12/31 | | | 2022 is true and correct. I further swear (or affirm) that neither 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. Notary Public ### This filing\*\* contains (check all applicable boxes): - X (a) Statement of financial condition. - [ (b) Notes to consolidated statement of financial condition. - 2 (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). - X (d) Statement of cash flows. - 2 (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. - [] Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - [ (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable. - [1) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. - 1 (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. - I (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-1, 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. - [p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 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. - [ (t) Independent public accountant's report based on an examination of the statement of financial condition. - [u] Independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - [ (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 240.17a-5 or 17 CFR 240.18a-7, as applicable. - [ (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-1e or 17 CFR 240.17a-12, as applicable. - [ (y) Report describing any material inadequacies found to exist or 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). - O (z) Other: - \*\* To request confidential treatment of certain portions of this filing, see 17 CFR 240.170-5(e)(3) or 17 CFR 240.18c-7(d)(2), as applicable. Title: CEO DENISE SADOWSKI Notary Public. State of New York No 01SA5076308 Qualified in Queens County Certificate filed in New York County Commission Expires April 21, 2023 {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, 2022, 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, 2022, 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 25, 2023 {6}------------------------------------------------ ### STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2022 ### ASSETS | Cash & cash equivalents | S | 6,476,353 | |-----------------------------------------------|-----|-----------| | Commissions receivable | | 2,670,434 | | Fixed assets | | 275,706 | | Prepaid expenses | | 39,789 | | Other assets | | 138,623 | | Right of use assets | | 326,604 | | | S | 9,927,509 | | LIABILITIES AND MEMBER'S EQUITY | | | | LIABILITIES: | | | | Commissions payable | ಕಿತ | 823,407 | | Lease liability (Note 3) | | 378,290 | | Due to related parties (Note 5) | | 160,700 | | Accrued liabilities | | 130.954 | | | S | 1,493,351 | | COMMITMENTS AND CONTINGENCIES (Notes 3 and 5) | | | | MEMBER'S EQUITY (Note 2) | | 8,434,158 | | | કે | 9.927.509 | {7}------------------------------------------------ ### STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 2022 | REVENUE: | | |-------------------------------------|------------------| | Commissions and service income | 8,877,258 | | Other income | 2,110 | | Total Income | ಕಿತ
8,879,368 | | EXPENSES: | | | Commissions, salaries and benefits | 8,863,998 | | Professional fees | 649,258 | | Travel and entertainment | 163,758 | | General and administrative expenses | 392,631 | | Advertising and marketing | 130,751 | | Occupancy and equipment | 131,055 | | Regulatory fees | 68,564 | | Research | 7,744 | | | 10,407,759 | | NET INCOME | S
(1,528,391) | | | | {8}------------------------------------------------ # ARTIST CAPITAL LLC STATEMENT OF CHANGES IN MEMBERS EQUITY DECEMBER 31, 2022 | | Member's Equity | | | |----------------------------|-----------------|-------------|--| | BALANCE, December 31, 2021 | S | 10,398,652 | | | Contributions | | 3,963,897 | | | Distributions | | (4.400.000) | | | Net income | S | (1,528,391) | | | BALANCE, December 31, 2022 | S | 8,434,158 | | {9}------------------------------------------------ ### STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2022 | CASH FLOWS FROM OPERATING ACTIVITIES: | | | |-----------------------------------------------------------------------|---|-------------| | Net income | S | (1,528,391) | | Adjustments to reconcile net income to net cash provided by (used in) | | | | operating activities: | | | | Decrease in commissions receivable | | 4.407.474 | | Depreciation | | 22,253 | | Decrease in prepaid expenses | | 53.800 | | Increase in other assets | | (10,165) | | Increase in right of use aset | | 150,745 | | Decrease in commissions payable | | (827,379) | | Decrease in lease liability | | (171,058) | | Increase in due to related parties | | 3,500 | | Decrease in accrued liabilities | | 19,700 | | Net cash flows provided by operating activities | | 2,120,479 | | CASH FLOWS FROM FINANCING ACTIVITIES: | | | | Contributions | | 3,963,897 | | Distributions | | (4,400,000) | | Net cash flows provided by financing activities | | (436,103) | | NET DECREASE IN CASH AND CASH EQUIVALENTS | | 1,684,377 | | CASH & AND CASH EQUIVALENTS, at beginning of year | | 4,791,975 | | CASH & AND CASH EOUIVALENT, at end of vear | S | 6.476.353 | 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, 2022 were as follows: {13}------------------------------------------------ ### NOTE 4 – LEASES (continued) | Operating lease Cost: | | | |------------------------------------------------------------------------|-------|------------------| | Right-of-use assets | ਦਿੱਤੇ | 91,723 | | Accumulated amortization | | 11,400 | | Total operating lease costs | ಕಿ | 103,123 | | Operating Leases: | | | | Right-of-use assets | ਦਿੱਤੇ | 786,828 | | Accumulated amortization | | 460,224 | | Right-of-use assets, net | ਦਿੱਤੇ | 326,604 | | Operating lease Liabilities | ಕಿತ | 378,290 | | Weighted Average Remaining Lease Terms | | | | Operating Leases | | 3.5 years | | Weighted Average Discount Rate: | | | | Operating Leases | | 0.79 | | Maturities of lease liabilities at December 31, 2022, were as follows: | | | | Year | | Operating Leases | | 2023 | | 104,691 | | 2024 | | 115,954 | | 2025 | | 118,273 | | Thereafter | | 56,607 | | otal lease payments | | 395,525 | | ess imputed interest | | (17,235) | | perating lease liability | ਦਿੱਤੇ | 378,290 | ### 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. Currency risk is the risk that the value of instruments may fluctuate as a result of changes in foreign exchange rates. As of December 31, 2022, 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, 2022, the Company held \$6,266,353, 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, 2022 | CREDIT: | | |-------------------------------------------------------------------------------------------------------------|-------------------| | Member's equity | ಕಾ
8,434,158 | | DEBITS: | | | Commissions receivable, net of commissions payable | 1,847,027 | | Fixed Assets | 275,706 | | Prepaid expenses | 39.789 | | Other assets | 138,623 | | Total debits | 2,301,145 | | NET CAPITAL | 6,133,013 | | Minimum requirements of 6-2/3% of aggregate indebtedness of
\$1,166,747 or \$5,000, whichever is greater | 77,783 | | Excess net capital | S
6,055,230 | | AGGREGATE INDEBTEDNESS: | | | Total Liabilities | ಕ್ಕಾ
1,493,351 | | Less: Right of use assets | (326,604) | | | S
1,166,747 | ### RATIO OF AGGREGATE INDEBTEDNESS TO NET CAPITAL .19 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, 2022. {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 most recent fiscal year without exception and thereafter under guidance from the Securities and Exchange Commission included in Footnote 74 to the Adopting Release for the Rule 17a-5 amendments. The Company's management is responsible for compliance with the exemption provisions and its statements. 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 Rule 15c3-3 under the Securities Exchange Act of 1934. Denver, Colorado February 25, 2023 ![](_page_17_Picture_9.jpeg) {18}------------------------------------------------ February 22, 2023 To whom it may concern: Artist Capital LLC, (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 240.17a-5(d)(1)and (4). To the best of its knowledge and belief, the Company states the following: - (1) The Company does not claim an exemption under paragraph (k) of 17 C.F.R. § 240. 15c3-3, and - (2) The Company is filing this Exemption Report relying on Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F .R. § 240. l 7a-5 because the Company limits its business activities exclusively to: (1) receiving transaction-based compensation for identifying potential merger and acquisition opportunities for clients, referring securities transactions to other broker-dealers, or providing technology or platform services; (2) participating in distributions of securities (other than firm commitment underwritings) in accordance with the requirements of paragraphs (a) or (b)(2) of Rule 15c2-4; and the Company (1) did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, ( other than money or other consideration received and promptly transmitted in compliance with paragraph (a) or (b)(2) of Rule 15c2-4 and/or funds received and promptly transmitted for effecting transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company); (2) did not carry accounts of or for customers; and (3) did not carry P AB accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year without exception. The Company hereby affirms that, to the best of its knowledge and belief, this Exemption Report 20 WEST 55th Street, 11th Floor, New York, NY 10019 is true and correct. Regards, Jonathan Sands Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.