# WOMBAT CAPITAL MARKETS LLC X-17A-5 (2021-03-02) — Broker-dealer annual report - Company: WOMBAT CAPITAL MARKETS LLC - Form: X-17A-5 - Filed: 2021-03-02 - Period: 2020-12-31 - Accession: 0001544304-21-000003 - CIK: 1544304 - File #: 8-69059 - Material weakness: No - Auditor: YSL & Associates LLC - Auditor location: New York, NY - Contact: Kathy Efrem - Phone: 2128971686 - Signed by: Jean-Jacques Mondoloni (President, CCO) Original filing: https://www.sec.gov/Archives/edgar/data/1544304/000154430421000003/wom20s2.pdf --- {0}------------------------------------------------ # WOMBAT CAPITAL MARKETS LLC ## STATEMENT OF FINANCIAL CONDITION AND INDEPENDENT AUDITOR'S REPORT DECEMBER 31, 2020 {1}------------------------------------------------ | UNITID STAT!ll | |-------------------------------------| | SECURITllll AND EXCHANGE COMMISSION | | Washington, D.C. 20549 | ## ANNUAL AUDITED REPORT FORM X-17A-5 PART Ill | OMB APPROVAL | | | | | | |---------------------------|--|-----------------|--|--|--| | OMB Nurrber: | | 3235-0123 | | | | | Expires: October 31, 2023 | | | | | | | Estimated average burden | | | | | | | hours per response 12.00 | | | | | | | | | | | | | | | | SEC FlLE NUMBER | | | | 8- 69059 #### FACING PAGE Infonnation Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder | REPORT FOR THE PEIUOD BEGINNING | 1/1/2020
~~~~~~~~~~~ | AND ENDING | 12131/2020
~~~~~~~~~ | | |-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------|---------------|---------------------------------------------|--| | | MMIDDNY | | MMIDDNY | | | | A. REGISTRANT IDENTIFICATION | | | | | NAME OF BROKER-DEALER: | | | | | | Wombat Capital Markets LLC | | | OFFICU\L USE ONLY | | | ADDRESS OF PIUNCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | FIRMID. NO. | | | | 366 MADISON AVENUE, 3rd Floor | | | | | New York | ( o. an Street
NY | | 10017 | | | (City) | {State) | | (Zip Code) | | | Kathy Efrem | | | 212-897-1686
(Area Code-- Telephone No,) | | | | B. ACCOUNTANT IDENTlFICATION | | | | | | YSL & Associates LLC | | | | | | (Name -- if individual, state last, first, middle name) | | | | | 11 Broadway, Suite 700
(Address) | New York
(City) | NY
(State) | 10004
(Zip Code) | | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
INDEPENDENT PUBLIC ACCOUNT ANT whose opinion is contained in this Report'
CllECKONE:
[3 Certified Public Accountant
D Public Accountant | | | | | | D Accountant not resident | in United States or any of its possessions | | | | *\*Claims/or 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/or the exen1ption. See section 240. I 7a-5(e)(2).* {2}------------------------------------------------ #### **AFFIRMATION** I, Jeah"Jacgues·Mondolcini, affirm that; to the best of my kno\v!edge and belief, tlieacc0mpanying financial "' "·'' - - ., - - ' - - - - ' " , ' ' - .. \_sta\_temel)t(s) ,and,s\_l!PP.lemental sc\_heaule;;: pertaining !q V{pmpa!:(capit~l Markeis LLC \_for the )'ear en\ied DeceinberJJ, 2020, are true and con'ect I further affirin that neither the. Coinpah:Y, hor any officer ot dfrector has any proprietary interest in.any account classified solely as that of a customer. ·~ title ~ P~blic Notaiy ![](_page_2_Picture_7.jpeg) {3}------------------------------------------------ ## **This report\*\* contains (check all applicable boxes):** - [ x] Report oflndependent 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 l 5c3-l - under the Securities Exchange Act of 1934. - [ ] Computation for Determination of Reserve Requirements for Brokers and Dealers Pursuant to Rule 15c3-3 under the Securities Exchange Act of 1934. - [ ] Information Relating to the Possession or Control Requirements for Brokers and Dealers Pursuant to Rule 15c3-3 under the Securities Exchange Act of 1934 (not applicable). - [ ] A Reconciliation, including appropriate explanations, of the Computation ofNet 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). - [ ] IndependentAuditors' Report on Internal Control Required by SEC Rule l 7a-5(g)(l). - [ ] Independent Auditors' Report Regarding Rule **l** 5c3-3 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, 2020, and the related notes (collectively referred to as the "financial statement"). In our opinion, the financial statement presents fairly, in all material respects, the financial position of the Company as of December 31, 2020 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 25, 2021 {5}------------------------------------------------ ## WOMBAT CAPITAL MARKETS LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2020 | Assets | | |----------------------------------------|---------------| | Cash | \$
488,207 | | Accounts receivable | 21,685 | | Prepaid expenses | 93,498 | | Other assets | 1,831 | | | | | Total assets | \$
605,221 | | | | | Liabilities and Member's Capital | | | Liabilities: | | | Accounts payable | \$
7,032 | | Member's capital | 598,189 | | Total liabilities and member's capital | \$
605,221 | The accompanying notes are an integral part of this financial statement. {6}------------------------------------------------ ## **WOMBAT CAPITAL MARKETS LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2020** #### **Note** I - **Operation and Structure** Wombat Capital Markets LLC (the "Company"), is a limited liability company organized under the laws of the State ofNew 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 Commission ("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 15c3-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, 2020. #### **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 15c3-3** The Company. does not handle cash or securities on behalf of customers and accordingly has no obligation under SEC Rule l 5c3-3. {7}------------------------------------------------ ## **WOMBAT CAPITAL MARKETS LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2020** #### **Note 4 - Regulatory 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 **1.** At December 31, 2020, the Company had net capital of \$481,175, which was \$476,175 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, 2020 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 91 % of its revenues from two **customers.** #### **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 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, the Company 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, if any. The ASU is also intended to reduce the complexity of 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-forsale debt securities. The new CECL standard became effective on January l, 2020, and the Company applied the modified retrospective method of adoption which resulted in no adjustment to member's capital as of the effective date. #### **Note 8 - COVID** During the 2020 calendar year, the World Health Organization has declared COVID-19 to constitute a "Public Health Emergency oflnternational Concern". This pandemic has disrupted economic markets and the economic impact, duration and spread of the COVID-19 virus is uncertain at this time. The financial performance of the Company is subject to future developments related to the COVID-19 outbreak and possible government advisories and restrictions placed on the financial markets and business activities. The impact on financial markets and the overall economy, all of which are highly uncertain, cannot be predicted. If the financial markets and/or the overall economy are impacted for an extended period the Company's results may be materially affected. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.