# ASANTE CAPITAL GROUP ADVISORS LLC X-17A-5 (2021-05-25) — Broker-dealer annual report - Company: ASANTE CAPITAL GROUP ADVISORS LLC - Form: X-17A-5 - Filed: 2021-05-25 - Period: 2021-03-31 - Accession: 0001501393-21-000001 - CIK: 1501393 - File #: 8-68701 - Material weakness: No - Auditor: RSM US LLP - Auditor location: New York, NY - Contact: Alka Patel - Phone: 00442036964730 - Signed by: Warren Thirkell Hibbert (Chief Compliance Officer) Original filing: https://www.sec.gov/Archives/edgar/data/1501393/000150139321000001/ACGLLCFinCond31Mar21.pdf --- {0}------------------------------------------------ ![](_page_0_Picture_0.jpeg) Statement of Financial Condition March 31, 2021 Filed as PUBLIC infonnation pursuant to Rule 17a-5(d) under the Securities Exchange Act of 1934. {1}------------------------------------------------ , **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** ## **ANNUAL AUDITED REPORT FORM X-17A-5 PARTIII** | 0MB APPROVAL | | | | |--------------------------|--|---------------------------|--| | 0MB Number: | | 3235-0123 | | | Expires: | | October 31, 2023 | | | Estimated average burden | | | | | | | hours per resoonse 12.00 | | SEC FILE NUMBER s-68701 ## FACING **PAGE Information Required of B1·okers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder** | REPORT FOR THE PERIOD BEGINNING 04/01/20 | | | ____
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MM/DD/YY | | |------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------|------------|----------------------------------------------------|--| | | MM/DDNY | | | | | | A. REGISTRANT IDENTIFICATION | | | | | NAM0
E OF BROKER-DEALER: Asante Capital Group Advisors LLC | | | OFFICIAL USE ONLY | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | FIRM 1.0. NO. | | | 25 Old Burlington Street, 4th Floor | | | | | | | (No. and Street) | | | | | London | United Kingdom | | W1S 3AN | | | (City) | (State) | (Zip Code) | | | | NAME AND TELEPHONE,NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
Mr Warren Thlrkell Hibbert +44 203 696 4700 | | | | | | | | | (Area Code - Telephone Number) | | | | B. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report*
RSM US LLP | | | | | | | (Name - if individual, i
tate la.,t,flm, middle name) | | | | | 4 Times Square, 19th Floor | New York | NY | 10036 | | | (Address) | (City) | (State) | (Zip Code) | | | CHECK ONE: | | | | | | Iv' I
Certified Public Accountant | | | | | | ublic Accountant | | | | | | | ccountant not resident in United States or any of its possessions. | | | | | | FOR OFFICIAL 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 the exemption. See Sectio11 240.* J *7a-5(e)(2)* > Potential **persons** who are to respond to the collection **of** Information contained In this form are not required to respond unlessthetorm dlsplays a currentlyvalld 0MB control number. {2}------------------------------------------------ ![](_page_2_Picture_0.jpeg) ## OATH OR AFFIRMATION Warren Thirkell Hibbert ート | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of Asante Capital Group Advisors LLC ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ of March, 31 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ neither the company nor any partner, principal officer or director has any proprietary interest in any account classified solely as that of a customer, except as follows; | SOUTHWEST HOUSE
ITS RECOUNT STREET ST TAMES S | | | |-------------------------------------------------------------------------------------------------------------------------|----------------------------------|--| | SW1Y JLB | | | | | | | | | Signature | | | | CHIEF COMPLIANCE OFFICE | | | | Title | | | | | | | Notary Public | DAVID NOEL LLOYD FANCETT | | | | Notary Public of London, England | | | This report ** contains (check all applicable boxes).Empowered to administer Oaths | | | | (a) Facing Page. | My commission expires with life | | | (b) 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 Changes in Financial Condition. | | | | (e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital. | | | | (f) Statement of Changes in Liabilities Subordinated to Claims of Creditors. | | | | (g) Computation of Net Capital. | | | | (h) Computation for Determination of Reserve Requirements Pursuant to Rule 15c3-3. | | | | (i) Information Relating to the Possession or Control Requirements Under Rule 15c3-3. | | | | (i) A Reconciliation, including appropriate explanation of Net Capital Under Rule 15c3-1 and the | | | | Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3. | | | | (k) A Reconciliation between the audited Statements of Financial Condition with respect to methods of
consolidation. | | | | (1) An Oath or Affirmation. | | | - (m) A copy of the SIPC Supplemental Report. - (t) A report describing any material inadequacies found to exist or found to have existed since the date of the previous andit. \*\* For conditions of confidential treatment of certain portions of this filing, see section 240.17a-5(e){3). {3}------------------------------------------------ | Report of Independent Registered Public Accounting Firm | | |---------------------------------------------------------|-----| | | 2 | | Statement of Financial Condition | | | Notes to Statement of Financial Condition | 3-6 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) RSM US LLP #### Report of Independent Registered Public Accounting Firm To the Managers of Asante Capital Group Advisors LLC #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Asante Capital Group Advisors LLC (the Company) as of March 31, 2021, and the related notes to the financial condition (collectively, the financial statement). In our opinion, the financial statement presents fairly, in all material respects, the financial position of the Company as of March 31, 2021, 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. We have served as the Company's auditor since 2012. New York, New York May 21, 2021 THE POWER Of BEING UNDERSTOOD AUDIT I T/1.X I CONSULTING {5}------------------------------------------------ **Statement of Financial Condition March 31, 2021 (amounts expressed** in **U.S. dollars)** #### **ASSETS** | Cash
Prepaid expenses
Prepaid taxes
Fixed assets (net of accumulated depreciation of \$158,810) | \$
4,562,748
14,109
101,025
15,173 | |-------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------| | Total assets | \$
4,693,055 | | LIABILITIES AND MEMBER'S EQUITY | | | Liabilities:
Due to affiliates
Bank loan
Compensation payable
Deferred income
Accrued expenses and other liabilities | \$
145,828
1,154,700
400,000
128,758
134,264 | | Total liabilities | 1,963,550 | | Commitments (note 6) | | | Member's Equity | 2,729,505 | | Total liabilities and member's equity | \$
4,693,055 | | See Notes to Statement of Financial Condition | | {6}------------------------------------------------ ## Notes to Statement of Financial Condition (amounts expressed in U.S. dollars) ## Note 1. Organization and Summary of Significant Accounting Policies Description of Business: Asante Capital Group Advisors LLC (the "Company"), a Delaware limited liability company, was formed in June 2010 and is an indirect wholly owned subsidiary of Asante Capital Group LLP. The Company became a broker-dealer in September 2011 and is registered with the Securities and Exchange Commission (the "SEC") and is a member of the Securities Investor Protection Corporation ("SIPC") and the Financial Industry Regulatory Authority ("FINRA"). The Company is engaged in a single line of business as a broker-dealer raising capital for private equity firms and investment managers and providing related specialized financial services. The Company does not conduct any retail securities business, offer or hold customer accounts, nor does it hold or receive client or investor funds or securities. The Company is not a party to agreements between an investor and its private fund clients, does not make a market in any security, nor does it trade for its own account or for the account of any client (or investor) in any security . . Significant accounting policies are: Basis of Presentation; The financial statements are presented in accordance with accounting principles generally accepted in the United States of America ("GMP"). Use of Estimates; The preparation of the financial statements in conformity with GMP in the United States of America requires management to make estimates and assumptions in determining the reported amounts of assets, liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. Revenue Recognition:· The Company earns revenue by charging a placement fee and a retainer fee for raising capital for private equity firms and investment managers. Private placement fees are recognized when services related to the underlying transactions are completed under the terms of the agreement. Retainer fees are recognized monthly as ongoing performance obligations are met Cash: Cash represents bank demand deposits, held at one financial institution, which at year end exceeds federally insured limits, however, the Company does not believe that this results in any significant credit risk. Prepaid Expenses: The Company makes payments for certain expenses such as insurance in advance of the period in which it receives the benefit. These payments are classified as prepaid expenses and amortized over the respective period of benefit relating to the contractual arrangement. Fixed Assets: Fixed assets are reported at cost, Jess accumulated depreciation and amortized under the straight line method. Fixed assets are depreciated over their useful lives. Expenses and Liabilities: All costs and expenses are recorded on the accrual basis. Income Taxes: The Company is a single-member limited liability company and has elected to be treated as a "C Corp" for federal income tax purposes, The Company accounts for income taxes in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 740, Accounting for Income Taxes. FASB ASC 740 requires that deferred taxes be established based upon the temporary differences between financial statements and income tax bases of assets and liabilities using the enacted statutory rates. {7}------------------------------------------------ #### **Notes to Statement of Financial Condition (amounts expressed** in **U.S. dollars)** ## **Note 1. Organization and Summary of Significant Accounting Policies (Continued)** The amount of current and deferred taxes payable or refundable is recognized as of the date of the financial statements, utilizing currently enacted tax laws and rates. Deferred tax expenses or benefits are recognized in the financial statements for the changes in deferred tax liabilities or assets between the years. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. FASB ASC 740 provides guidance for how uncertain tax positions should be recognized, measured, disclosed and presented in the financial statements. This requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Company's tax returns to determine whether the tax positions are "more likely than not" of being sustained "when challenged" or "when examined" by the applicable tax 'authority. Tax positions deemed to meet the more-likely-than-not threshold would be recorded as a tax liability in the current year. For the year ended March 31, 2021, management has determined that there are no material uncertain income tax positions. #### New Accounting Pronouncements: In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The standard's main goal is to improve financial reporting by requiring earlier recognition of credit losses on financial receivables and other financial assets in scope. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Fi!'lancial Instruments. The standard's main goal is to improve financial reporting by requiring earlier recognition of credit tosses on financing receivables and other financial assets in scope. The adoption of ASU 2016-13 had no impact on the Company's financial statements. In December 2019, Financial Accounting Standards Board (FASB) issued ASU 2019-12, Simplifying the Accounting for Income Taxes (ASU 2019-12). This standard simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in ASC 740 related to the approach for intraperiod tax allocation, the methodology tor calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. It clarifies that single-member limited liability companies and similar disregarded entities that are not subject to income tax are not required to recognize an allocation of consolidated income tax expense in their separate financial statements, but they could elect to do so. For public business entities (PBEs), the guidance is effective for fiscal years beginning after 15 December 2020 and interim periods within those fiscal years. Early adoption is permitted in interim or annual periods for which PBEs have not yet issued financial statements and all other entities have not made financial statements available for issuance. The Company is evaluating the impact of ASU 2019-12 on its financial statements. {8}------------------------------------------------ #### **Notes to Statement of Financial Condition (amounts expressed in U.S. dollars)** ## **Note 2. Related Party Transactions** The Company entered into agreements ("Agreement") with Asante Capital Group LLP and Asante Capital Group HK Limited. As at March 31, 2021 the Company had a net payable of \$75,468 due to Asante Capital Group HK Limited, which is shown under due to affiliates on the statement of financial condition. There is a high level of integration of the Company's activities and operations with the ultimate parent and the accompanying financial statement is indicative of the Company's current financial condition as part of that group. As at March 31, 2021 the Company had a net payable of \$70,360 due to Asante Capi1al Group LLP, which is shown under due to affiliates on the statement of financial condition. ## **Note 3. Employee Benefit Plans** The Company administers a 401 (k) retirement and savings plan for eligible employees. The plan is a defined ' contribution plan that is funded through contributions by employees and the Company. #### **Note 4. Indemnifications** In the normal course of business, the Company enters into contracts that contain a variety of representations and warranties that provide indemnifications under certain circumstances. The Company's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Company that have not yet occurred. The Company believes that it is unlikely it will have to make material payments under these arrangements and has not recorded any contingent liability in the financial statements for these indemnifications. #### **Note 5. Income Taxes** As described in Note 1, the Company has elected to be taxed as a "C Corp" for federal income tax purposes. As a result, the Company's tax provision comprised of a marginal tax rate of 21 % for federal taxes and an effective tax rate of 21%, Deferred taxes consist of the following components as of March 31, 2021 and is included under accrued expenses and other liabilities on the statement of financial condition: Liability Depreciation \$34,317 #### **Note 6. Commitments** Leases: In October 2017, the Company executed an operating lease for office space in New York, New York, with an affiliate, on a month-to-month basis and until either party notifies the other party of its intent to terminate the agreement. Such notification must be in writing and must be delivered at least thirty {30) days before the date that the terminating party wishes to end the agreement. The Company has made an election not to apply the recognition requirements of ASC 842 to short-term leases. {9}------------------------------------------------ #### **Notes to Statement of Financial Condition {amounts expressed in U.S. dollars)** ## **Note** 7. **Fixed Assets** Fixed assets, at cost consist of the following: | Asset Class | Cost | Estimated useful life | |--------------------------------|-----------|-----------------------| | Computers and office equipment | \$91,528 | 3 years | | Furniture | \$82,455 | 3 years | | | \$173,983 | | | Less accumulated depreciation | \$158,810 | | | Total Fixed Assets, net | \$15 173 | | #### **Note 8. Loans** The Company received loans from Citizens Bank in the amount of \$1,154,700 under the Paycheck Protection Program established by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The loans are subject to notes dated May 1, 2020 for \$775,200 (Loan 1) and February 22, 2021 for \$379,500 (Loan 2) and may be forgiven to the extent proceeds of the loan are used for eligible expenditures such as payroll and other expenses described in the CARES Act. The Company has applied for forgiveness of Loan 1 and is awaiting Small Business Administration approval. The Loan 1 and Loan 2 bear yearly interest at a rate of 1 % and mature on May 4, 2022 and February 24, 2026, respectively. ## **Note 9. Net Capital Requirements** As a registered broker-dealer, the Company is subject to the net capital requirements of Rule 15c3-1 under the Securities Exchange Act of 1934 (the "Act"). SEC Rule 15c3-1 requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1 (and the rule of the "applicable" exchange also provides that equity capital may not be withdrawn or cash dividends paid if the resulting net capital ratio would exceed 10 to 1). At March 31, 2021, the Company had net capital of \$2,599,198, which was \$2,468,295 in excess of its required net capital of \$130,903. The Company's ratio of aggregate indebtedness to net capital was 0.76 to 1. #### **Note 10. Risks** To date the COVID-19 global pandemic has not materially impacted the Company's day-to-day operations. However, continuing uncertainty with respect to global economic activity may negatively impact the Company's revenue opportunities. #### **Note 11. Subsequent Events** The Company has evaluated subsequent events for potential recognition and/or disclosure through the date these financial statements were issued. {10}------------------------------------------------ ![](_page_10_Picture_0.jpeg) Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.