# JLT CAPITAL PARTNERS LLC X-17A-5 (2020-02-27) — Broker-dealer annual report - Company: JLT CAPITAL PARTNERS LLC - Form: X-17A-5 - Filed: 2020-02-27 - Period: 2019-12-31 - Accession: 0001523182-20-000001 - CIK: 1523182 - File #: 8-68892 - Material weakness: No - Auditor: Morey, Nee, Buck & Oswald, LLC - Auditor location: Bethlehem, PA - Contact: Karen Gendron - Phone: 603-502-4560 - Signed by: James Tovey (Managing Principal) Original filing: https://www.sec.gov/Archives/edgar/data/1523182/000152318220000001/public.pdf --- {0}------------------------------------------------ ![](_page_0_Picture_0.jpeg) #### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Member of JL T capital Partners, LLC #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of JLT Capital Partners. LLC as of December 31, 2019 and the related notes (collectively referred to as the "financial statement"}. In our opinion, the statement of financial condition presents fairty, in all material respects, the financial position of JL T Capital Partners. LLC as of December 31, 2019 in conformity with accounting principles generally accepted in the United states of America. #### **Basis for Opinion** This financial statement is the responsibility of JL T Capital Partners, LLC's management. Our responsibility is to express an opinion on JL T Capital Partners, 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 JLT 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 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 induded 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. Morey, Nee, Buck & Oswald, LLC We have served as JL T Capital Partners. LL C's auditor since 2017. Bethlehem. Pennsylvania February 27. 2020 {1}------------------------------------------------ #### **JL T CAPITAL PARTNERS, LLC** #### **STATEMENT OF FINANCIAL CONDITION** #### **DECEMBER** 31, **2019** #### **ASSETS** | \$
26,075 | |-----------------| | 1,540,601 | | 6,232 | | | | 10,754 | | \$
115831662 | | | | | #### **LIABILmES AND ME MBER'S EQUITY** | Liabilities: | | |---------------------------------------|-----------------| | Accounts payable and accrued expenses | \$
14,960 | | Member's equity | 1,568,702 | | Total liabilities and member's equity | \$
1,583,662 | The accompanying notes are an integral part of these financial statements. {2}------------------------------------------------ # **JLT CAPITAL PARTNERS, LLC NOTES TO F1NANCLU STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2019** # **1. ORGANIZATION AND NATURE OF BUSINESS** JL **T** Capital Partners LLC (the "Company") was organized as a Limited Liability Company on May 6, 2011, in the state of Delaware. Toe Company was granted membership in the Financial Industry Regulatory Authority ("FINRA'~ on January 23, 2012. It is a registered broker-dealer with the Securities and Exchange Commission ("SEC''), and is a member of the Securities Investor Protection Corporation ("SIPC"). Toe Company serves as a marketing and solicitation agent for investment managers and investment advisors. Toe Company is subject to the regulations of certain federal and state agencies and undergoes periodic Pxaminations by the Financial Industry Regulatory Authority. Toe Company operates pursuant to paragraph (.k)(2)(i) of SEC Rule 15c3-3 under which the Company claims an exemption from SEC Rule 15c3-3. ## **2. SIGNIFICANT ACCOUNTING POLICIES** # Basis of Presentation Toe Company's financial statements are prepared iin accordance with accounting principles generally accepted in the United States. #### Cash and cash equivalents Toe Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Cash equivalents are carried at cost, which approximates market value. #### Accounting hasis Toe Company uses the accrual basis of accounting for financial statement and income tax reporting. Accordingly revenues are recognized when services are rendered and expenses realized when the obligation is incurred. #### Revenue recognition Toe Company accounts for revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers. Toe principal source of operating revenue is placement fees in the form of revenue sharing for services related to soliciting and obtaining suitable investors for certain client investment Funds. Toe Company's revenue is recognized on an accrued basis once prospective investors commit investment funds at a client Fund's closing event at the point of which all obligations have been met. #### Significant judgement Significant judgement 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 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. {3}------------------------------------------------ # JLT CAPITAL PARTNERS, LLC NOTES TO F1NANCLU STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2019 # 2. SIGNIFICANT ACCOUNTING POLICIES (continued) # Use of Estimates The preparation of financial statements in confonnity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported an1ounts of assets and liabilities, and disclosure of contingent assets, and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. # Income Taxes The Company is a limited liability company, taxed as a partnership for federal income tax pwposes, and, thus, no federal income tax expense has been recorded in the financial statements. Taxable income of the Company is passed through to the member and reported on their individual tax return. Pursuant to accounting guidance concerning provision for uncertain income tax provisions contained in Accounting Standards Codification ("ASC") 740-10, there are no uncertain income tax positions. The federal and state income tax returns are subject to examination by the IRS and state taxing authorities, generally for three years after they were filed. The Company is subject to New Hampshire business profits and business enterprise tax. ### Fair Values of Financial Instruments Financial Accounting Standards Board Accounting Standards Codification ("ASC'') 825, "Financial Instruments," requires the Company to disclose estimated fair values for its financial instruments. Fair value estimates, methods, and assumptions are set forth below for the Company's financial instruments: The carrying amount of cash, accounts receivable, prepaid expenses and accounts payable and accrued expenses, approximate fair value because of the short maturity of those instruments. ## Concentrations of Credit Risk The Company places its cash with a high credit quality financial institution. The Company's account at this institution is insured by the Federal Deposit Insurance Corporation ("FDIC") up to \$250,000. To reduce its risk associated with the failure of such financial institution, the Company evaluates at least annually the rating of the financial institution in which it holds deposits. #### Fixed Assets The Company capitalizes major capital expenditures. Depreciation is based on straight line method over the following useful lives: | Computer equipment | 3 years | |------------------------|---------| | Furniture and fixtures | 7 years | Depreciation expense for the year ended December 31, 2019 was \$2,419. {4}------------------------------------------------ ## **JLT CAPITAL PARTNERS, LLC NOTES TO FlNANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2019** # **2. SIGNIFICANT ACCOUNTING POLICIES (continued)** ## Accounts Receivable The detennination of the amount of uncollectible accounts is based on the length of time each receivable has been outstanding, and a reasonable assessment of the capacity of the debtor to pay the receivable. The allowance for uncollectible amounts reflects the amount of loss that can be reasonably estimated by management. As of December 31, 2019, the Company has not recorded an allowance for any potential noncollection. ## Recent Issued Accounting Pronouncements The Company does not believe that the adoption of any recently issued, but not yet effective, accounting standards will have a material effect on its financial position and results of operations. # 3. **NET CAPITAL** The Company is subject to the SEC Uniform Net Capital Rule (Rule 1Sc3-l), which requires the maintenance of minimum net capital of \$5,000, and requires that the ratio of aggregate indebtedness to net capital, both as defined, not exceed 1 S to 1. The rule also provides that equity capital may not be withdrawn, cash dividends paid or the Company's operations expanded, if the resulting net capital ratio would exceed 10 to I. At December 31, 2019, the Company had net capital of\$11,115, which was \$6,115 in excess of the FINRA minimum net capital requirement of \$5,000. The Company's ratio of aggregate indebtedness to net capital as of December 31, 2019 was 1.35 to I. # *4.* **RELATED PARTY TRANSACTIONS** The Company occupies its office facilities in the personal residence of the Managing Member, James Tovey. Rent charged to the Company is \$1,600 a month. For the year ended December 31, 2019, the company had recorded \$19,200 for occupancy expense. The Company does not have any other commitments as of December 31, 2019. The future minimum rental payments for this commitment is \$19,200. ### S. **CONCENTRATION OF CUSTOMER REVENUES** For the year ended December 31, 2019, two customer.s accounted for 100% of the Company's revenue. The revenue percentages are 61% and 39%, respectively. These two customers accounted for 10% and 90%, respectively of accounts receivable as of December 31, 2019. #### **6. SUBSEQUENT EVENTS** The Company evaluated events occurring between the end of its fiscal year, December 31, 2019, and February 27, 2020, when the financial statements were issued. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.