# SPURRIER CAPITAL PARTNERS LLC X-17A-5 (2021-02-26) — Broker-dealer annual report
- Company: SPURRIER CAPITAL PARTNERS LLC
- Form: X-17A-5
- Filed: 2021-02-26
- Period: 2020-12-31
- Accession: 0001513552-21-000006
- CIK: 1621966
- File #: 8-69540
- Material weakness: No
- Auditor: LERNER & SIPKIN CPA's, LLP
- Auditor location: New York, NY
- Contact: Gennaro J. Fulvio
- Phone: 2124903113
- Email: jlerncr@lernerslpkln.corn
- Website: lernerslpkln.corn
- Signed by: Clark Spurrier (CEO)
Original filing: https://www.sec.gov/Archives/edgar/data/1621966/000151355221000006/spurpub.pdf
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# SPURRIER CAPITAL PARTNERS LLC
# STATEMENT OF FINANCIAL CONDITION
DECEMBER 31,2020
PUBLIC
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UNITEDSTATES SECURITIESANDEXCBANGECOMMISSION Washington, D.C. 20549
# ANNUAL AUDITED REPORT FORM X-17A .. s PART Ill
OMB APPROVAL OMB Number: 3235-0123 Expires: October 31, 2023 Estimated average burden hours per response ...... 12.00
| SEC FilE NUMBER |
|-----------------|
| 8-69540 |
FACING PAGE
Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder
| REPORTFOR THEPERIODBEGINNING01/01/2020 | | AND ENDING 12/31/2020 | | | |
|----------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------|-----------------------|-------------------------------|--|--|
| | MMJDDNY | | MMIDDNY | | |
| | A. REGISTRANT IDENTIFICATION | | | | |
| NAME OF BROKER-DEALER: SPURRIER CAPITAL PARTNERS, LLC
ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | OFFICIAL USE ONLY | | |
| | | | FIRM 1.0. NO. | | |
| 505 PARK AVENUE, 16th FLOOR | | | | | |
| | (No. and Street) | | | | |
| NEW YORK | NY | | 10022 | | |
| (City) | (State) | | (Zip Code) | | |
| NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
GENNARO J. FULVIO | | | (212) 490-3113 | | |
| | | | (Area Code- Telephone Number) | | |
| | B. ACCOUNTANT IDENTIFICATION | | | | |
| INDEPENDENT PUBLIC ACCOUNT ANT whose opinion is contained in this Report* | | | | | |
| LERNER & SIPKIN CPA's, LLP | | | | | |
| | (Name- if individual, state last, first, middle name) | | | | |
| 420 LEXINGTON AVENUE | NEW YORK | NY | 10170 | | |
| (Address) | (City) | (State) | (Zip Code) | | |
| CHECK ONE: | | | | | |
| I ,f I
Certified Public Accountant | | | | | |
| Public Accountant | | | | | |
| B
Accountant 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 Section 240.17a-5(e)(2)*
> Potential persons who· are to respond to the collection of information contained in this fo.rm are not required to respond unless the form displays a currently valid OMB control number.
SEC 1410 {11-05)
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# OATH OR AFFIRMATION
I, CLARK SPURRIER , swear (or affmn) that, to the best of
my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of SPURRIER CAPITAL PARTNERS, LLC ------------------------------------------------------------------------------------- ' ~of DECEMBER 31 2o2o are true and correct. I further swear (or affirm) that
neither the company nor any partner, proprietor, principal officer or director has any proprietary interest in any account classified solely as that of a customer, except as follows:
| DAVID BARNETT
NOTARY PUBLIC-STATE OF NEW YORK
No. 01BA6399087
Qualified in New York County
My Com
xp;•e• lQ-15-2~23
LtA'Lv | |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|
| This report** contains (check all applicable boxes):
0 (a) Facing Page.
0 (b) Statement of Financial Condition.
O (c) Statement of Income (Loss) or, if there is other 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.
D (j) A Reconciliation, including appropriate explanation of the Computation ofNet Capital Under Rule 15c3-l and the | |
| Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3.
0 (k) A Reconciliation between the audited and unaudited Statements of Financial Condition with respect to methods of | |
| §
consolidation.
(l) An Oath or Affirmation.
(m}A copy ofthe SIPC Supplemental Report.
(n) A report describing any material inadequacies found to exist or found to have existed since the date of the previous audit. | |
| **For conditions of confidential treatment of certain portions of this filing, see section 240.17a-5(e)(3). | |
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# SPURRIER CAPITAL PARTNERS LLC
# CONTENTS
# SECTION I INDEPENDENT AUDITORS' REPORT
PAGE
| INDEPENDENT AUDITORS' REPORT | 1 |
|----------------------------------|-----|
| STATEMENT OF FINANCIAL CONDITION | 2 |
| NOTES TO FINANCIAL STATEMENTS | 3-5 |
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420 Lexington Ave .. Ste. 2160. NY, NY 10170 Tet212.571.0064/Fax 212.571.00'14
Jlerncr@lernerslpkln.corn ,lalpkln~crnerslptln.com
Jay IJerner. C.P.A. Joseph C. Slpkin. C.P.A.
## REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Members of Spurrier Capital Partners LLC 505 Park A venue, 16th floor NewYork, NY 10022
### **Opinion on tbe Financial Statement**
We have audited the accompanying statement offin~cial condition of Spurrier Capital Partners LLC as of December 31, 2020, and the related notes (collectively referred to as the financial statement). In our opinion, the statement of financial condition presents fairly, in all material respects, the financial position of Spurrier Capital Partners LLC as of December 31, 2020 in conformity with accounting principles generally accepted in the United States ofAmerica.
### Basis **for Opinion**
The financial statement is the . responsibility of Spurrier -Capital Partners LLC's management.· Our responsibility is to express an opinion on Spurrier CapitarPartners LLC's financial statement based on our audit. We are a public accounting firmregistered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to Spurrier Capital Partners 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 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 fmancial statement, ·· whether due to error or fraud, and performing procedures tl;lat 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 ofthe financial statements. We believe that our audit provides a reasonable basis for our opinion;
We have served as Spurrier Capital Partners LLC's auditor since 2016.
New York, NY February 24, 2021
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# SPURRIER CAPITAL PARTNERS LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2020
# ASSETS
| Cash and cash equivalents | \$
4,366,705 |
|-----------------------------------------------------------------|-----------------|
| Furniture and equipment, and capitalized web site costs (net of | |
| accumulated depreciation and amortization of \$1,051 ,333) | 293,496 |
| Accounts receivable and other assets | 259,842 |
| Right of use lease asset | 3,744,116 |
| Security deposit | 347,948 |
| TOTAL ASSETS | \$
9,012,107 |
| LIABILITIES & MEMBER'S EQUITY | |
| LIABILITIES | |
| Accrued expenses and other liabilities | \$
626,661 |
| Deferred income | 194,750 |
| Lease obligation | 3,857,658 |
| TOTAL LIABILITIES | 4,679,069 |
| MEMBER'S EQUITY | 4,333,038 |
| | |
| TOTAL LIABILITIES AND MEMBER'S EQUITY | \$
9,012 107 |
**The accompanying notes are an integral part of this statement.**
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# SPURRIER CAPITAL PARTNERS LLC NOTES TO FINANCIAL STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020
# 1. NOTES ON SIGNIFICANT BUSINESS ACTIVITIES
Spurrier Capital Partners LLC, (the "Company") was organized under the Limited Liability Company Laws of the State of New York in May 2009. The Company is a registered broker-dealer with the Securities and Exchange Commission and a member of the Financial Industry Regulatory Authority ("FINRA'). The principal source of the Company's income is through investment advisory services and private placements of securities.
# 2. SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions in determining the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from these estimates.
The Company recognizes revenues pursuant to FASB ASC 600. Revenues are recognized when there is transfer of services to customers in an amount that reflects the consideration to which the Company expects to be entitled to in exchange for these services and arise from financial advisory services provided by the Company to its clients. The Company bills for its services in three ways. First, revenues arise from work based upon hourly rates, second from retainer payments, and third from success fees based upon results experienced by the client. Fees received that are earned only upon a contingent event are recorded as deferred revenue until the event occurs.
The Company maintains cash and cash equivalents with financial institutions. Funds deposited with a single bank are insured up to \$250,000 in the aggregate by the Federal Deposit Insurance Corporation ("FDIC"). Cash deposited with a single brokerage institution are insured up to \$500,000 per customer, including up to \$250,000 for cash deposits, by the Securities Investor Protection Corp. ("SIPC"). The Company considers all highly liquid instruments purchased with a maturity date of three months or less when purchased to be cash equivalents
# 3. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
In February 2016, the FASB issued ASU No. 2016-02, Leases ("ASU 2016-02"). This update requires all leases with a term greater than 12 months to be recognized 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 new guidance was effective for years beginning after December 15, 2018.
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# SPURRIER CAPITAL PARTNERS LLC NOTES TO FINANCIAL STATEMENT FOR THE YEAR ENDED DECEMBER 31,2020 (continued)
# 4. INCOME TAXES
The Company is recognized as a Limited Liability Company (an "LLC") by the Internal Revenue Service. As an LLC, the Company is not subject to income taxes except for New York City Unincorporated Business Tax. The Company's income or loss is reportable by its members on their individual tax returns.
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 Partnership'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 not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense and liability in the current year. The tax years that remain subject to examination are 2017, 2018, 2019 and 2020. For the year ended December 31, 2020 management has determined that there are no material uncertain income tax positions.
# 5. SBALOANS
On May 11, 2020 the Company received a loan from JP Morgan Chase, in the amount of \$373,562, under the Paycheck Protection Program ("PPP") established under the "CARES" act, and administered by the Small Business Administration ("SBA"). The loan bears interest at a rate of 1% per annum. The PPP loan, and accrued interest, is subject to forgiveness to the extent proceeds of the loan have been used for certain defined expenses. The Company intends to apply for loan forgiveness, and believes loan forgiveness will be granted. Until forgiveness is granted, the loan is included on the balance sheet in Accrued expenses and other liabilities.
# 6. RULE 15C3-3
The Company has no possession or control obligations under SEA Rule 15c3-3 (b) or reserve deposit obligations under SEA Rule 15c3-3(e) because its business is limited to private placements of securities and investment advisory services.
# 7. NET CAPITAL REQUIREMENTS
The Company is subject to the Securities and Exchange Commission's Net Capital Rule 15c3-l, which 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 .t~ 1. At De~ember 31, 2020, the Company had net capital of \$3,807,649 whtch exceeded the mmrmum reqmrement of \$37,270 by \$3,770,379. At December 31,2020 the Company's ratio of aggregate indebtedness to net capital was 0.15 to 1.
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# SPURRIER CAPITAL PARTNERS LLC NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31,2020 (continued)
# 8. COMMITMENTS AND CONTINGENCIES
The Company leases office space in New York, NY, under a non-cancelable lease agreement. The lease, inclusive of recent term extensions, expires in 2026 -and contains provisions for escalations based on increases in certain costs incurred by the lessor. Future minimum rent payments on the lease are as follows:
| Year Ended December 31 | | | | |
|------------------------|----|-----------|--|--|
| 2021 | | 700,598 | | |
| 2022 | | 752,320 | | |
| 2023 | | 752,320 | | |
| 2024 | | 752,320 | | |
| 2025 | | 752,320 | | |
| Thereafter | | 626,933 | | |
| | \$ | 4,336,811 | | |
# 9. SUBSEQUENT EVENTS
Events have been evaluated through the date that these financial statements were available to be issued and no further information is required to be disclosed.
A coronavirus (COVID-19) was first reported in China. In January 2020, the World Health Organization declared it a Public Health Emergency of International Concern. This contagious disease outbreak, which has continued to spread to additional countries, and any related adverse public health developments, could adversely affect the Company's customers, service providers and suppliers as a result of quarantines, facility closures, and travel and logistics restrictions in connection with the outbreak. More broadly, the outbreak could affect workforces, economies and financial markets globally, potentially leading to an economic downturn. The ultimate impact of the COVID-19 is uncertain. Management continues to monitor the outbreak, however, as of the date of these financial statements the potential impact of such on the Company's business and operations cannot be reasonably estimated.
The U.S. enacted the CARES Act which is an economic stimulus package to assist eligible small businesses to cover certain operational costs due to the adverse impact of COVID-19. In addition, the CARES Act included temporary tax law changes to provide additional relief to U.S. businesses and individual taxpayers.
Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.