# WOMBAT CAPITAL MARKETS LLC X-17A-5 (2020-02-27) — Broker-dealer annual report - Company: WOMBAT CAPITAL MARKETS LLC - Form: X-17A-5 - Filed: 2020-02-27 - Period: 2019-12-31 - Accession: 0001544304-20-000001 - CIK: 1544304 - File #: 8-69059 - Material weakness: No - Auditor: YSL & Associates LLC - Auditor location: New York, NY - Contact: Kathy Efrem - Phone: 212-897-1686 - Signed by: Jean-Jaques Mondoloni (President, CCO) Original filing: https://www.sec.gov/Archives/edgar/data/1544304/000154430420000001/wombat19s.pdf --- {0}------------------------------------------------ # WOMBAT CAPITAL MARKETS LLC # STATEMENT OF FINANCIAL CONDITION AND INDEPENDENT AUDITOR'S REPORT DECEMBER 31, 2019 {1}------------------------------------------------ | UNITED STATES | |------------------------------------| | SECURITIES AND EXCHANGE COMMISSION | | Washington, D.C. 20549 | # **ANNUAL AUDITED REPORT FORM X-17 A-5 PART Ill** | 0MB APPROVAL | |--------------------------| | 3235-0123 | | Expires: August 31, 2020 | | Estimated average burden | | hours per response 12.00 | | | **8** - **69069** #### **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 BEGfNNfNG | 1/1/2019 | A D ENDfNG | -----------
12/31/2019 | |----------------------------------------------------------------------------------|-------------------------------------------------------------------------------|------------|-----------------------------| | | -------------
MM/00/YY | | MM/00/YY | | | A. REGISTRANT IDENTIFICATION | | | | NAME OF BROKER-DEALER: | | | | | | | | OFFICIAL USE ONLY | | Wombat Capital Markets LLC | | | FIRM ID. NO. | | ADDRESS Of PRlNClPAL PLACE Of BUSINESS: (Do not use P.O. Box No.) | | | | | | 366 MADISON AVENUE, 3rd Floor | | | | New York | (No. and S1ree1)
NY | | 10017 | | (City) | (State) | | (Zip Code) | | | | | | | NAME ANO TF.LF.PHO F. NlJMRF.R OF PF.RSON TO CONTACT IN RF.CiARO TO THlS RF.PORT | | | | | Kathy Efrem | | | 212-897-1686 | | | | | | | | | | (Area Code - Telephone No.) | | | B. ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNT ANT whose opinion is contained in this Report* | | | | | | | | | | | YSL & Associates LLC
(Name - i(individuo/, srote lost, (irsr, middle nome) | | | | 11 Broadway, Suite 700 | New York | NY | 10004 | | {Address) | (City) | (State) | (Zip Code) | | | | | | | CHECK ONE: | | | | | ~ Certified Public Accountant | | | | | D Public Accountant | | | | | D Accountant not resident in United States or any of its possessions | | | | *\*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.J 7a-5(e)(2).* | | SEC 1410 (06-02) | | |--|------------------|--| | | | | #### SEC 1410 (06-02) *Potential per\$ons who are to re\$pond to the collection of iµformation contained in this form are not required to respond unless the form displays a currently valid* 0MB *control number.* {2}------------------------------------------------ #### **AFFlRMATlO** I. Jean-Jacques Mondoloni. affirm 1ha1. 10 thl! bcsl ol m) knowkdgc and b~lict'. 1hc accompan~ ing linancial s1a1emcn1(s) and supplemental schedules pertaining to \\ om hat Capital :'1.1,trl..\!ls LLC for the ) car ended December 31, 2019. arc true Jnd correct I further affirm that ncilht:r the Com pan) nor an) officer or director has an) proprietal) in1ere,1 111 an) .iccount clasc;ificd c;old) ao; tha1 of a customer. - PAUL H. **PINCUS Notary** Public, State of **New York** No. 02Pl6186870 Qualified in Kings County Commission Expires May 12, 2020 {3}------------------------------------------------ ### **This report\*\* contains (check all applicable boxes):** - [x] Report of Independent Registered Public Accounting Firm. - [x] Facing Page. - [x] Statement of Financial Condition. - [ ] Statement of Operations. - [ ] Statement of Changes in Member's Equity. - [ ] Statement of Cash Flows. - [ ] Statement of Changes in Liabilities Subordinated to Claims of General Creditors (not applicable). - [ ] Computation of Net Capital for Brokers and Dealers Pursuant to Rule 15c3-l - under the Securities Exchange Act of 1934. - [ ] Computation for Determination of Reserve Requirements for Brokers and Dealers Pursuant to Rule l 5c3-3 under the Securities Exchange Act of 1934. - [ ] Information Relating to the Possession or Control Requirements for Brokers and Dealers Pursuant to Rule l 5c3-3 under the Securities Exchange Act of 1934 (not applicable). - [ ] A Reconciliation, including appropriate explanations, of the Computation of Net Capital Pursuant to Rule l 5c3-l and the Computation for Determination of Reserve Requirements Under Rule 15c3-3. - [ ] A Reconciliation Between the Audited and Unaudited Statements of Financial Condition With Respect to Methods of Consolidation (not applicable). - [x] An Oath or Affirmation. - [ ] A copy of the SIPC Supplemental Report. - [ ] A report describing any material inadequacies found to exist or found to have existed since the date of the previous audit (Supplemental Report on Internal Control). - [ ] Independent Auditors' Report on Internal Control Required by SEC Rule l 7a-5(g)(l ). - [ ] Independent Auditors' Report Regarding Rule 15c3-3 Exemption. - [ ] Rule l 5c3-3 Exemption Report {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) 11 Broadway, Suite 700, New York, NY 10004 Tel: (212) 232-0122 Fax: (646) 218-4682 # **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Member of Wombat Capital Markets LLC ### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Wombat Capital Markets LLC (the "Company") 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 fairly, in all material respects, the financial position of the Company 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 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 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 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 Wombat Capital Markets LLC's auditor since 2014. New York, NY February 24, 2020 {5}------------------------------------------------ ## **WOMBAT CAPITAL MARKETS LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2019** #### **Assets** | Cash | \$
87,723 | |----------------------------------------|---------------| | Accounts receivable | 2,474 | | Prepaid expenses | 35,126 | | Other assets | 941 | | Total assets | \$
126,264 | | | | | | | | Liabilities and Member's Capital | | | Liabilities: | | | Accounts payable | \$
5,327 | | Member's capital | 120,937 | | Total liabilities and member's capital | \$
126,264 | **The accompanying notes are an integral part of this financial statement.** {6}------------------------------------------------ ## **WOMBAT CAPITAL MARKETS LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2019** #### **Note** I - **Operation and Structure** Wombat Capital Markets LLC (the "Company"), is a limited liability company organized under the laws of the State of New York, and is a wholly owned subsidiary of Wombat Worldwide Group LLC (the "member"). The Company is a broker-dealer registered with the Securities and Exchange Corrunission ("SEC") under the Securities Exchange Act of 1934 and operates under a membership agreement with the Financial Industry Regulatory Authority ("FINRA"). The Company is required to maintain a minimum net capital pursuant to SEC rule **l** Sc3-l. #### **Note 2 - Summary of significant accounting policies** ### Basis of accounting and use of estimates These financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") which 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 amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. #### Accounts receivable Accounts receivable are comprised of receivables for fees and at times expense reimbursements. The Company evaluates collectability of its accounts receivable and determines if an allowance for uncollectible accounts is necessary based on historical payment information or known customer financial concerns. There was no allowance for uncollectible accounts at December 31, 2019. #### Income taxes The Company is a single member limited liability company for federal, state, and local income tax purposes. As such, the Company is a disregarded entity for tax purposes and does not record a provision for income taxes. The Company's income or loss is included in the tax return of its Member. #### Uncertain Tax Positions Pursuant to GAAP, the Company recognized no material adjustments to liabilities or member's equity. Interest and penalties associated with unrecognized tax benefits would be classified in general and administrative expenses in the statement of operations. The Company had no unrecognized tax benefits and related interest and penalties expenses. #### **Note 3** - **Compliance with Rule 1Sc3-3** The Company does not handle cash or securities on behalf of customers and accordingly has no obligation under SEC Rule 15c3-3. {7}------------------------------------------------ ### **WOMBAT CAPITAL MARKETS LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2019** #### **Note 4** - **Regulatorv requirements** The Company is subject to the SEC Uniform Net Capital Rule (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 to I. At December 31 , 2019, the Company had net capital of \$82,396, which was \$77,396 in excess of its required net capital of \$5,000. #### **Note 5** - **Related party transactions** Pursuant to an administrative service agreement (the "Agreement") between the Company and its Member, The Company records as a capital contribution, the value of monthly administrative costs borne by its Parent on behalf of the Company. The Company was charged \$81,000 for the year ended December 31, 2019 under the Agreement. The Member agreed to pay other expenses on behalf of the Company without seeking reimbursement. The Company estimates that such expenses amount to \$3,000. #### **Note 6** - **Concentrations** The Company maintains its cash balance in one financial institution. The Company does not consider itself to be at risk with respect to its cash. The company earned 77% of its revenues from two customers and 81 % of the Company's receivables are from one customer. #### **Note** 7 - **New Accounting Pronouncement** In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which amends the FASB's guidance on the impairment of financial instruments. The ASU adds to United States generally accepted accounting principles ("U.S. GAAP") an impairment model (known as the current expected credit loss ("CECL") model) that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of lifetime expected credit losses, which the F ASB believes will result in more timely recognition of such losses. The ASU is also intended to reduce the complexity of U.S. GAAP by decreasing the number of credit impairment models that entities use to account for debt instruments. Further, the ASU makes targeted changes to the impairment model for available-for-sale debt securities. The new CECL standard is effective for annual reporting periods beginning after December 15, 2019, and interim periods therein. Management is currently evaluating the effect of adopting the new standard and expects that the impact to the Company's financial statements will be minimal. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.