# SAGEWORKS CAPITAL LLC X-17A-5 (2019-02-04) — Broker-dealer annual report
- Company: SAGEWORKS CAPITAL LLC
- Form: X-17A-5
- Filed: 2019-02-04
- Period: 2018-12-31
- Accession: 0001543192-19-000001
- CIK: 1543192
- File #: 8-69058
- Material weakness: No
- Auditor: Michael T Remus CPA
- Auditor location: Hamilton, NJ
- Contact: Vlad Uchenik
- Phone: 215-806-9031
- Signed by: Vlad Uchenik (CEO/COO)
Original filing: https://www.sec.gov/Archives/edgar/data/1543192/000154319219000001/swcaudpb.pdf
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UNITEDSTATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
OMB APPROVAL OMB Number: 3235-0123 Expires: August 31, 2020 Estimated average burden hours per response.. . . . . . . 12.00
SEC FILE NUMBER
69058
2-
# ANNUAL AUDITED REPORT FORM X-17A-5 PART III
| FACING PAGE | |
|-------------|--|
Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder
| REPORT FOR THE PERIOD BEGINNING | | 01/01/18 | AND ENDING | 12/31/18 |
|--------------------------------------------------------------------------------------------------|--|---------------------------------------------------------------------|---------------|--------------------------------|
| | | MM/DD/YY | | MM/DD/YY |
| | | A. REGISTRANT IDENTIFICATION | | |
| NAME OF BROKER-DEALER: SAGEWORKS CAPITAL LLC | | | | OFFICIAL USE ONLY |
| ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | FIRM I.D. NO. | |
| 1177 AVENEUE OF THE AMERICAS - 7th FLOOR | | | | |
| | | (No. and Street) | | |
| NEW YORK | | NY | | 10036 |
| (City) | | (State) | | (Zip Code) |
| NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
VLAD UCHENIK | | | | (215) 806-9031 |
| | | | | (Area Code - Telephone Number) |
| | | B. ACCOUNTANT IDENTIFICATION | | |
| INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report*
MICHAEL T. REMUS CPA | | | | |
| | | (Name - if individual, state last, first, middle name) | | |
| PO BOX 2555 | | HAMILTON SQUARE | NJ | 08690 |
| (Address) | | (City) | (State) | (Zip Code) |
| CHECK ONE: | | | | |
| Certified Public Accountant | | | | |
| Public Accountant | | | | |
| | | Accountant not resident in United States or any of its possessions. | | |
| | | FOR OFFICIAL USE ONLY | | |
| | | | | |
| | | | | |
\*Clains 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(c)(2)
> Potential persons 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.
SEC 1410 (06-02)
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#### OATH OR AFFIRMATION
| VLAD UCHENIK | |
|--------------|--|
| | |
| | VLAD UCHENIK | , swear (or affirm) that, to the best of |
|----------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------|----------------------------------------------------------|
| | my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of | |
| | SAGEWORKS CAPITAL. LLC | as |
| | DECEMBER 31,
20 18 | , are true and correct. I further swear (or affirm) that |
| 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: | | |
#### NONE
| | Signature |
|-------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------|
| | CEO/COO |
| | Title |
| Notary Public
This report ** contains (check all applicable boxes): | Commonwealth of Pennsylvania - Notary Seal
MICHELLE M MICAN - Notary Public
Bucks County |
| (a) Facing Page. | My Commission Expires Oct 16, 2022
Commission Number 1341844 |
| (b) Statement of Financial Condition. | |
| Statement of Income (Loss).
(c) | |
| (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. | |
| Computation of Net Capital.
(g) | |
| (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. | |
| consolidation. | (k) A Reconciliation between the audited Statements of Financial Condition with respect to methods of |
| (1) An Oath or Affirmation. | |
| (m) A copy of the 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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SAGEWORKS CAPITAL, LLC. STATEMENT OF FINANCIAL CONDITION FOR THE YEAR ENDED DECEMBER 31, 2018
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# **MICHAEL T. REMUS** Certified Public Accountant
P.O. BR[ 2 HDPLOWRQ STXDUH, N- 080
> **Tel:** 0011 **Fax:** 002
#### REPORT OF INDEPENDENT REGISTERED P8BLIC ACCO8NTING FIRM
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#### **Opinion on the Financial Statement**
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#### **Basis for Opinion**
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Michael T. Remus
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#### SAGEWORKS CAPITAL, LLC STATEMENT OF FINANCIAL CONDITION FOR THE YEAR ENDED DECEMBER 31, 2018
#### A S S E T S
| CDVK
PUHSDLG H[SHQVH | ,123
21,83 |
|------------------------------------------------------|---------------|
| TOTAL ASSETS | , |
| LIABILITIES AND MEMBERS¶
CAPITAL | |
| LLDELOLWLHV
AFFRXQWV SD\DEOH DQG DFFUXHG H[SHQVHV |
|
| MHPEHUV¶ FDSLWDO
MHPEHU¶V FDSLWDO | ,301 |
| TOTAL MEMBERS¶
CAPITAL | ,301 |
| TOTAL LIABILITIES AND MEMBERS¶
CAPITAL |
, |
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#### 1 Organization and Nature of Business
Sageworks Capital, Inc. (the "Company") was originally organized as a Corporation in May 2011 in the State of North Carolina. The Company's majority owner, Raiseworks, LLC., sold an 11% minority ownership stake to CFX Direct, LLC via a Stock Purchase Agreement dated January 1, 2016. Subsequently, Raiseworks, LLC decided to terminate operations in June 2016. In conjunction with this decision, Raiseworks, LLC, and its 100% owner, GLI, LTD., transferred their remaining 89% ownership stake in the Company to CEO, Vlad Uchenik via a Stock Power and a letter from GLI to FINRA dated June 21, 2016. On June 21, the Company submitted a CMA to FINRA and the transaction was approved June 28, 2016. Subsequent to that, Sageworks Capital, Inc. filed a succession filing with SEC and FINRA to become Sageworks Capital, LLC, which is a Pennsylvania Limited Liability Company with the same ownership structure as Sageworks Capital, Inc. The succession filing was approved April 3, 2017. The Company is a securities broker-dealer, registered with the Securities and Exchange Commission ("SEC") and is a member of the Financial Industry Regulatory Authority Inc. ("FINRA").
The Company provides non-sales related broker/dealer services to issuers and platforms that need or desire a regulated entity to process transactions. In addition, the firm also runs a secondary market trading platform in conjunction with its minority owner, CFX Direct, LLC, called CFXtrading.com. The secondary market transactions may include private non-listed REITs, Reg A+, Reg D. Reg CF and any other private securities transactions.
The Company holds no customer funds or securities and does not participate in the underwriting of Securities. Accordingly, the Company claims exemption from the requirements of Rule 15c3-3 under Section (k)(2)(i) of the rule.
#### 2 Significant Accounting Policies
#### (a) Basis of Presentation
The financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") unless otherwise disclosed
#### (b) Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates
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#### *(c) Statement of Cash Flows*
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### *d) Revenue Recognition*
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## *(e) Income Tax*
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#### *(e) Income Tax – continued*
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#### *(f) Fair Value Hierarchy*
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#### *(f) Fair Value Hierarchy - continued*
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*(i) New Accounting Standards Not Yet Adopted*
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### **1et Capital ReTXirements**
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#### 3 Net Capital Requirements - continued
Advances to affiliates, contributions, distributions and other withdrawals are subject to certain notification and other requirements of Rule 15c3-1 and other regulatory rules.
The Company is registered with FINRA as a broker dealer exempt from SEC Rule 15c3-3 under Section (k)(2)(i). Therefore, it is not subject to possession or control requirements under SEC Rule 15c3-3 and is not required to compute 15c3-3 reserve requirements.
#### ব Regulation
The Company is registered as a broker-dealer with the SEC. The securities industry in the United States is subject to extensive regulation under both federal and state laws. The SEC is the federal agency responsible for the administration of the federal securities laws. Much of the regulation of broker-dealers has been delegated to self-regulatory organizations, such as the Financial Industry Regulatory Authority, which has been designated by the SEC as the Company's primary regulator. These self-regulatory organizations adopt rules, subject to approval by the SEC, that govern the industry and conduct periodic examinations of the Company's operations. The primary purpose of these requirements is to enhance the protection of customer assets. These laws and regulatory requirements subject the Company to standards of solvency with respect to capital requirements, financial reporting requirements, record keeping and business practices.
Securities firms are also subject to regulation by state securities administrators in those states in which they conduct business.
#### ਟ Concentrations
The Company's revenues (as discussed in Note 2 above) and profitability are affected by many conditions, including changes in economic conditions, political events, investor sentiment, and the changing security laws. These factors are unpredictable and beyond the Company's control, earnings may fluctuate significantly from year to year.
#### 6 Related Party Transactions
The Company provides broker/dealer services for its minority shareholder in order to process secondary market private securities transactions through their platform at cfxinvesting.com. In addition, 100% of its secondary market commission income was generated using the CFX platform.
The Company and CFX Direct, LLC had a technology in agreement in place through March 31, 2018 which enabled the Company to use CFX technology in order to process primary Reg A+ deals through the broker/dealer. During the year the Company decided that it would not use the CFX technology for primary Reg A+ and the agreement was terminated.
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## **Commitments anG Contingencies**
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