# HARKEN CAPITAL SECURITIES, LLC X-17A-5 (2019-08-28) — Broker-dealer annual report - Company: HARKEN CAPITAL SECURITIES, LLC - Form: X-17A-5 - Filed: 2019-08-28 - Period: 2019-06-30 - Accession: 0001546132-19-000001 - CIK: 1546132 - File #: 8-69077 - Material weakness: No - Auditor: Larry D. Liberfarb, P.C. - Auditor location: Norwood, MA - Contact: Donald Nelson - Phone: 617-899-2048 - Signed by: Donald Nelson (Member) Original filing: https://www.sec.gov/Archives/edgar/data/1546132/000154613219000001/Harken2019Audit4.pdf --- {0}------------------------------------------------ UNITEDSTATES SECURITIES ANDEXCHANGE COMMISSION Washington. D.C. 20549 # ANNUAL AUDITED REPORT FORM X-17A-5 PART III | OMB APPROVAL | | |--------------------------|-----------------| | OMB Number: | 3235-0123 | | Expires: | August 31, 2020 | | Estimated average burden | | | hours per response. | .12.001 | | SEC FILE NUMBER | | |-----------------|--| | 8-69077 | | 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 07/01/18 | AND ENDING 06/30/19 | | |-------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------|---------------------|------------------------------------------------| | | MM DD YY | | MM DD YY | | | A. REGISTRANT IDENTIFICATION | | | | NAME OF BROKER-DEALER: Harken Capital Securities, LLC | | | OFFICIAL USE ONLY | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | FIRM I.D. NO. | | 16 Ann Vinal Road | | | | | | (No. and Street) | | | | Scituate | MA | | 02066 | | (City) | (State) | | (/ p Code) | | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT | | | | Donald Nelson | | | 617-899-2048
(Area Code - Telephone Number) | | | B. ACCOUNTANT IDENTIFICATION | | | | | | | | | Larry D. Liberfarb, P.C. | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report® | | | | | (Name - if iralividual, sate last, first, middle name) | | | | | 11 Vanderbilt Avenue Suite 220 Norwood | MA | 02062 | | (Address) | (City) | (State) | (1) Codel | | CHECK ONE: | | | | | | Certified Public Accountant | | | | Public Accountant | | | | | | | | | | | Accountant not resident in United States or any of its possessions. | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | | | | "Claims for exemption from the registent that the counted by the opinion of an independent public accounten | | | must be supported by a statement of facts and circumstances relied on as the basis for the exemption. See Section 240, 17a-5(ch2) 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 valld OMB control number. SEC 1410 (11-05) 2011 {1}------------------------------------------------ # OATH OR AFFIRMATION | Donald Nelson
. swear (or affirm) that, to the best of | | |----------------------------------------------------------------------------------------------------------------|--| | my knowledge and belief the accompanying financial statement and supporting schedules persining to the firm of | | | Harken Capital Securities, LLC | | a simme and correct. I further swear (or affirm) that or June 30 June 30 June 30 neither the company nor eny partner, proprietor, principel officer or director has any proprietary interest in any account classified solely as that of a customer, except as follows: | | Signatione ' | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------|--|--|--| | | Member | | | | | Notary Public | TITLE | | | | | This report . " contains (check all ar plicable boxes):
し
(a) Facine Page.
(b) Statement of Financial Candilion.
S
(c) Statement of Income (Lass) 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.
(c) 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 15c2-3.
(i) Information Relating to the Possession or Control Requirements Under Rule 15c3-3.
() A Reconciliation, including appropriate explanation of the Computation of Net Capital Under Rule 15c3-1 and the
Computation for Deternsination of the Reserve Requirements Under Exhibit A of Rule 15c2-3. | | | | | | (k) A Reconciliations between the audited and unaudited Statements of Financial Condition with respect to methods of
consolidation
(1) An Oath or Affirmation. | | | | | | (m) A copy of the SIPC Supplemental Report. | (n) A report describing any material inadequacles found to exist or found to have ex issed since the drewors audi. | | | | | · For conditions of confidential treatment of cerialn portlons of this filing, see section 240.17a-S(eX). | | | | | ![](_page_1_Picture_4.jpeg) {2}------------------------------------------------ #### HARKEN CAPITAL SECURITIES LLC HARKEN CAPITAL SECURITIES LV~ #### REPORTS PURSUANT TO RULES 170-5(d) REPORTS PURSUANT TO RULES 17a-5(d) YEAR ENDED .JUNE 30. 2019 YEAR ENDED ,flTNE 30. 2019 {3}------------------------------------------------ ### LARRY D. LIBERFARB. P.c. CERTIFIED PUBLIC A=UNTANTS AND FINANCIAL ADVISORS LARRY D. LIBERFARB, PC. CERTTRED PUBLIC ACCOU 'TA T AND Fb A, CIAL ADVISORS II V;ln.:it,b!it A\mue, Sum- 220. Notvoun.j, MiUi;lc:hU6('H\$ 02062 ~I (181) 255·8800 h x (781) 255·9117 E·M;lII,lnkAUbcriarb.wm 11 Van.klbtl{ r.\cmue . • ulre 2Z ., i1 hU1lt'rts02C62 T~l (7~ I) 255 · F,,,, (7,1) 255·9217 E-M..II: In t I~ tiarb.com # Report of Independent Registered Public Accounting Finn R port of Independent Registered Public Accounting Finn To the Members of Harken Capital Securities LLC To the Members of Harken Capital Securi ti s LLC ## Opinion on the Financial Statements Opinion on the Financial Statements We have audited the accompanying statement of financial condition of Harken Capital Securities LLC as of June 30, 2019, the related statements of operations, changes in members' equity. and cash nows for the year then cnded, and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects. Ihe financial position of Harken Capital Securities LLC as of June 30, 2019, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. We have audited the accompanying statement of fin am:ial condition of Harken Capital Securities LLC a of June 30. 20 19. the related statements of operations. cbange ill members' equity. and cash fl ows fo r the 'ear th n ended and the rcl at d note (collectively reli rred to a..o:; the financia l ~tatemenlS). [11 our opinion. rhe financial statements present fairl y, in aU material respects. the financial position of Harken Capital Securities LLC as of June 30, 2019. and the results of its operalions and its cash flo ws for Ihe \_ ear [hen cnded in conformil. with accounting pri ncipl . gc'nerally accepted in the nil d States of America. ## Basis for Opinion Basis ror Opinion These financial statements are the responsibility of Harken Capital Securities LLCs management. Our responsibility is to expre:ss an opinion on Harken Capital Securities LLC's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (peAOB) and are required to be independent with respect to Harken Capital Securities 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. These financial statements are the respon ' ibility of Harken Capital Securities LLCs management. Our responsibility is to cx-pres an opinion on Harken Capital ecurities LLC s financial statements basd on our audit. W are a public accounting fi nn regisrer d with the Public Company AccQuLH ing 0 ersight Board (Unit d States) (pe AOB) and ar required to be tndependel1l with respect to Harken Capital ecurilies LLC in ccordance with the U . . f deral securities laws and the applicable rule and regulal i ns of the Securities and Exchan e Commis ion and the P AOB. We conducted our audit in accordance with the standards of the peADs. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due 10 error or fraud. Our audit induded performing procedures to assess the risks of material misstatement of the financial statements. 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 includcd evaluating the accounting principles used and significant estimates made by management. as we ll as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. We conducted our audit in accordance with (he standards of the PCAOS. Tho c ~tandard srequire that we plan and perform the audit to obta in reasonable assural1ce about wh rh r the financia l statements are rree of material mis tatement, whether due to error or fraud. Our audit included p rfonning procedures to assess the risks of material misstatement of (he financial tatemenls. \\hClher due to error or fraud, and performing procedures that re pond to those risks. Such procedures included examjning, on a test basis evidence regarding the amounts and disclosure in the financial statements. Our audit also included evaJuating the accounting prin iples use and significant estimates made b management. as well as evaluating the overall presentation of th financial tatemcOlS. We believe that our audit provides a reasonable basis for ur pini 11. {4}------------------------------------------------ ### Supplemental Information Supplementallnformation The computation of net capital pursuant to SEC Rule 15c3-1, and computation for and information related to possession or control determination of reserve requirements for broker/dealers under SEC Rule 15c3-3 have been subjected to audit procedures performed in conjunction with the audit of Harken Capital Securities LLC's financial statements. The supplemental information is the responsibility of Harken Capital Securities LLC's management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records. as applicable, and perfomling procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its fonn and content, is presented in conformity with 17 C.F.R. §240.17a-5. In our opinion, the computation of aggregate indebtedness and net capital under SEC Rule 15c3-1, and computation for and information related to possession or control determination of reserve requirements for broker/dealers under SEC Rule 15c3-3 8rc fairly stated, in all material respects, in relation to the financial statements as a whole. The compulation of nel capital pursuant 10 SEC Rule ISc3 -l, and complllation for and information re lated to possession or control determination of reserve r quiremcnts fo r broker/dealers under SEC Rule 15c3 -3 have be n subjected [0 audit procl;dw'es perform d in conjunc tion with the audit of Harken Capital Securitie LL financial statements. The supplemental information is the re-ponsibiiity of Harken Capital curities L C" managemenl. Our audit procedur s included detennining whether the supplemental infomlation reconciles 10 the financ ial statements or the underl yi ng accounting and other records. as applicable , and p rfomli.ng procedures to test the completen 5S and accuracy of the information pre ented in the supplemental information. [n formin\_ our opi.nion on the supplemental in formation. we e aluated whether the supplemental information, including its fonn and content, is presented in conformiry with 17 .F.R. §240.17a-S. In Dill opinion, the computation of aggregate indebtedness and n e l capital und r SEC Rule I ~ c3-I J and computation for and infonnation related to posses ion or control determination of re erve requirements for broker/dealers under SEC Rule 15e3-3 are Cairl., l alcd, in all material respects in relation 10 the financial statements as a \ hole. ~ .:- ~h- < ny . Liberfarb, ~ , ~ (~ ~~JlLibe arb *l..c. J* \V have served as Harken Capital Securities LLC's auditor since 2012. W"ve served as Harken Capital Securities LLC's auditor Since 2012 . l\orwood. Massachusetts August 22, 2019 . orwood. Massachusetts ugu l 22, 2019 {5}------------------------------------------------ # HARKEN CAPITAL SECURITIES LLC # STATEMENT OF FINANCIAL CONDITION # JUNE 30, 2019 # ASSETS | Cash | ಲಾ
16.309 | | |--------------------------------|--------------|--| | Receivables from non-customers | 592.805 | | | Other assets | 5,000 | | | Total assels | \$ 614.114 | | # LIABILITIES AND MEMBERS' EQUITY # LIABILITIES: | Accounts payable and accrued expenses | S
2,471 | |---------------------------------------|--------------| | MEMBERS' EQUITY: | | | Members' capital | 611.643 | | Total liabilities and members' equity | 614.114
S | The accompanying notes are an integral part of this statement. {6}------------------------------------------------ # HARKEN CAPITAL SECURITIES LLC # STATEMENT OF OPERATIONS ### FOR THE YEAR ENDED JUNE 30. 2019 YEAR | REVENUES: | | |-------------------------------------------------------------------------|-----------------------| | Success fees | \$ 1,713,549
3,549 | | Retainers | 432,394
432,394 | | Reimbursed expenses
Reirnt)lII':sed e>q)enses | 1,312
l
12 | | Total income
Totol income | 2,147,255 | | EXPENSES: | | | Compensation | 1,750,814 | | Guaranteed payments to members
{jwmll'tcc~d p;a~)f'nenlts to melmers | 992,568 | | General operating | 86,745 | | Marketing | 391 | | Professional services | 58,016 | | Regulatory | 17,061 | | Total expenses
t'xpt!J1SeS | 2,905,595 | | NET LOSS | S
(758.340) | **The accompanying notes are an integral part of this statement.** {7}------------------------------------------------ #### HARKEN CAPITAL SECURITIES LLC HARKEN CAPITAL SECURITIES LLC #### STATEMENT OF CHANGES IN MEMBERS' EQUITY STATEMENT OF CHANGE-S IN EQUITY #### FOR THE YEAR ENDED JUNE 30, 2019 FOR TI-IE YEAR ENDED JUNE 30. 2019 | BALANCE, July 1,2018
BALANCE, July l, 2018 | \$ | 1,36
1,943 | |-----------------------------------------------------------|--------|------------------------------------------| | Contributions
Contrib
utions
Nctloss
Nee loss | | 8,040
8,040
(758,340)
(758,340) | | SALA.1\' CE, June 30 2019
BALANCE, June 30, 2019 | s
s | 611,643
6
11,643 | **The accompanying notes are an integral part of this statement.** TI1e accompanying notes are an integral part Oflhi stalement. {8}------------------------------------------------ ### HARKEN CAPITAL SECURITIES LLC HARKEN CAPITAL SECURITIES LLC ### STATEMENT OF CASH FLOWS STA TEMENT OF CASH FLOWS ### FOR THE YEAR ENDED JUNE 30, 2019 FOR THE YEAR ENDED JUNE 30, 2019 | CASH FLOWS FROM OPERATING ACTIVITIES:
CASH FLO\VS FROM OPERATING ACTIVITIES: | | | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------| | Net income (loss)
Net income (loss) | S
S | (758,340)
(758,340) | | Adjustments to reconcile net loss to net cash used by
Adjustments to reconcile nct 10 s to net
ash used by
operating activities:
operating activities: | | | | Changes in operating assets and liabilities:
Changes in
pcrating assets and liabilities: | | | | Decrease in other assets
Decrease in other assets | | (3,395)
(3,395) | | Decrease in receivables from non-customers
Decrease in receivables from non-<:ustomers | | 684,956
684,956 | | Decrease in accounts payable and accrued expenses
Decrease in aeeou1lts pa) able and accrued expenses | | (591)
(591 ) | | Net cash used by operatiug activities
Nel C(lS/1 used by operating acfh·jlil'.\ | | (77,370)
(77.370) | | CASH FLOWS FROM FINANCING ACTIVITIES:
CASH FLOWS FROM FINANCING ACTIVITfES:
Contributions from members | | | | Contriburlons from members | | 8,040
8,040 | | Net cash /romfinullcillg activities
Net cllsh jromjinallciflg activities | | 8,040
8,040 | | NET DECREASE IN CASH
NET DECREASE IN CASH | | (69,330)
(69,330) | | CASH, at beginning of year
CASH, at b ginning oCyear | | 85,639
,639 | | CASH, at end of year
CASH, at end of year | S
S | 16,309
16r309 | **The accompanying notes are an integral part of this statement.** The accompanying notes are an integral part of (his statement. {9}------------------------------------------------ # HARKEN CAPITAL SECURITIES LLC NOTES TO FINANCIAL STATEMENTS HARKEN CAPITAL SECURlTIES LLC NOTES TO FINANCIA.L STATEMENTS #### JUNE 30, 2019 30, 2019 # NOTE ). SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICiES Nal1lre of Operations: Nature of Operations: The Company was organized in the State of Massachusetts on March 8, 2012 as a limited liability company. The Company is a broker-dealer registered with the Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority. Inc. (FINRA). The Company carries no customer funds or securities and therefore is exempt from the reserve and possession or control requirements under Rule 15c3-3(k)(2)(i) of the Securities Exchange Act of 1934. The Company markets financial products for its clients. The Company organized in Lhe Stale of Massachusetts on March 8, as limited li ability company. The Company is a broker-dealer with the Securities and Exchange Commission (SEC) and is a memberofthe Financial Industry Regulatory Authority, [nco (FI NRA ). The Company carries no customer funds or securities and therefore is exempt from the reserve and possession or conlrol requirements under Rule 15c3-3(k)(2)(i) of the Securities Exchange Act or 1934. The Company financial for irs clienLS. #### Revenue Recognition: Revenue Recognition: Effective July 1, 2018 the Company adopted ASC Topic 606 Revenue from Contracts with Customers (ASe Topic 606), using the modified retrospective method applied to those contracts which were not completed by July 1, 2018. The new revenue recognition guidance requires that an entity recognize revenue (0 depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance requires an entity to follow a five-step model to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) detennine the transactions price (d) allocate the transaction price to the perfonnance obligation in the contract, and (e) recognize revenue when (or as) the entity satisfies a perfonnance obligation. lbere was no impact on the Company's opening members' equity as revenue recognition and timing ofrevcnuc did not change as a result of adopting ASC Topic 606. Effective July I, 2018 the Company adopted Topic 606 Revenue ContTacts \\;Ih Customers CASe Topic 606), using the modified relrospective method applied to those contracts whjch were not completed by Jul~ 1,2018. The new revenue recognition guidance thal an entity recognize revenue to depict the transfer of promised goods or services to customers in al amount that re flects the consideration to which the entity expects to be entitled io exchange for those goods or services. The guidance requires an entity to follow a five-step model to (a) (he contraC't(s) " ilh a cllstL)mer, (b) identify the performance obliga tions in the contract, (c) detennine the Iransactions price (d) allocate the transaction price to the performance obl igation in the conu-ac[, and (e) recognize revenue when (or as) th entity satisfies a performance obligation. There was no impacl on the Company's opening members' as revenue recognition and timing of revenue did nm change as a result of adopting ASC Topic 606. Accounts Receivable: Accounts Receivable: Accounts receivables are stated at the amount management expects to collect. Management provides for probable uncollectable amounts through a charge to earnings and a credit to an allowance based on the assessment of the current status of individual accounts. At June 30, 2019 management feels that all receivables are collectable. Accounts receivables are 'laled at the amounl managernent exp ec ~to coli ct. Managemel1t provides for probable uncoUectab le amounts through a charge to earn ings and a c redit to an allowance based on the assessment of [he current status of individual accounts. At June 30, 2019 management fee ls that all receivables are collectable. #### Cash and Cash Equivalents: Cash and Cash Equivalents: For purposes of the statement of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. For purposes of the statement of cash flows the Company con -idcrs all highly liquid d bt instruments purchased ,",vith a rnatLlriL. of three months or less to be cash equivalent. {10}------------------------------------------------ # HARKEN CAPITAL SECURITIES LLC # NOTES TO FINANCIAL STATEMENTS, CONTINUED #### JUNE 30, 2019 **30,2019** ### NOTE I· SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (conlinucd) **NOTE 1-** ~'w·"'.iW'.~",." Income Taxes: The Company does not record a provision for income taxes because the partners report their share of the partnership's income or loss on their income tax returns. The financial statements reflect the partnership's transactions without adjustment, ifany. required for income tax purposes. income rax purposes. Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management 10 make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and li abilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates ### NOTE 2 - NET CAPITAL REQUIREMENTS **NOTE 2- REQUIREMENTS** The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (SEC Rule 15c3·1), which requires the maintenance of minimum net capital, and rcquires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1 (and the rule of the ··applicable" exchange also provides that equity capital may not be withdrawn if the resulting net capital ratio would exceed 1 0 to I). At June 3D, 2019, the Company had net capital of S13,838, which was S8,838 in excess of its required net capital of \$5,000. The Company's aggregate indebtedness to net capital ratio was .18 to 1. # NOTE 3 - RELATED PARTY TRANSACTIONS The Company rents office space from its owners on a tenant at will basis. The Company paid them \$6,432 for the fiscal year ending June 3D, 2019. Since these arc related party transactions, operating results could differ if the entities were autonomous. {11}------------------------------------------------ ### HARKEN CAPlT AL SECURITIES LLC HARKEN CAPn AL SECURITIES **LLC** #### NOTES TO FINANCIAL STATEMENTS, CONTINUED NOTES TO FINANCIAL STATE.MENTS, CONTIN UED ### JUNE 30, 2019 JUNE 30,2019 ### NOTE 4 - CON CENTRA TION OF CREDIT RISK NOTE 4 -CONCENTRATION OF CREDIT R.1SK Cash held in banks sometimes exceeds the Federal Deposit Insurance Corporation's (FDIC) insurance coverage of \$250,000, and as a result there may be a concentration of credit risk related to the amount in excess of FDIC insurance coverage. Cash held in banks sometimes exceeds the Federal Deposit Insurance Corporation's (FDIC) \$250,000, and resu\ t may be credit related the amount in FDIC insurance coverage, The has one cu~tomer represents 49% of accounts June 30 lbe Company has one customer which represents 49% of accounts receivable at June 30, 2019. The Company has another customer which represents 36% of revenue for fiscal year 2019. represents 36% of revenu for 201 9. #### NOTE 5 - SUBSEQUENT EVENTS NOTE 5 - SUBSEQUENT EVENTS Management has evaluated subsequent events through August 22, 2019, the date on which the financial statements were available to be issued. There were no subsequent events that require adjustment or disclosure in the financial statements. Management has evaluated subsequent events through August 22, 2019, the dale on whieh he financial were available to be issued. There were no subsequent events that require adjustment or djsclosure in financial {12}------------------------------------------------ SUPPLEMENTARY INFORMATION {13}------------------------------------------------ # SCHEDULE I # HARKEN CAPITAL SECURITIES LLC # COMPUTATION OF NET CAPITAL UNDER RULE 15c3-1 OF THE SECURITIES EXCHANGE ACT OF 1934 # JUNE 30, 2019 | CREDIT | | | |--------------------------------------------------------------------------------------------------------|----|----------| | Total member's equity | | 611,643 | | DEBRESS | | | | Nonallowable assets | | | | Receivables from non-customers | | 592,805 | | Other assets | | 5.000 | | Total debits | | 597.805 | | Net capital before haircuts on securities positions | | 13.838 | | Harcuts on securities:
Other securities | | | | NET CAPITAL | | 13,838 | | Minimum requirement of 6-2/3% of aggregate indebtedness of
\$2,471 or \$5,000, whichever is greater | | 5.000 | | Excess nel capital | ಲ್ | 8,838 | | AGGREGATE INDEBTEDNESS: | | | | Accounts payable and accrued expenses | S | 2,471 | | RATIO OF AGGREGATE INDEBTEDNESS TO NET CAPITAL | | .18 to 1 | | NOTE: There are no material differences between the above computation of net capital | | | and the corresponding computation as submitted by the Company with the unaudited Form X-17A-5 as of June 30, 2019. See Independent Registered Public Accountants Firm's Report. {14}------------------------------------------------ ### SCHEDULE II SCHEDULE n #### HARKEN CAPITAL SECURITIES LLC HA RKEN CAPITAL SECURITIES LLC #### COMPUTATION FOR AND INFORMATION RELATED TO POSSESSION OR CONTROL DETERMINATION OF RESERVE REQUIREMENTS FOR BROKERIDEALERS UNDER RULE 15c3-3 OF THE SECURITIES EXCHANGE ACT OF 1934 COMPUTATION FOR AJ'-:O lNFORMATION RELATED TO POSSESSION OR ONTROL DETERMINATION OF RESERVE EQUIREMENTS FOR BROKERIOEALERS UNDER R LE 15c3-3 OF THE SECURlT[ES EXCHANGE ACT OF 1934 #### JUNE 30, 2019 JUNE 30,2019 **Harken Capital Securities LLC carries no customer funds or securities and therefore is exempt from the reserve and possession or control requirements under Rule 15c3-3(k)(2(i) afthe Securities Exchange Act of 1934. Accordingly, the computation for determination of reserye requirements pursuant to Rule 1Sc3-3 and information relating to the possession or control requirement to Rule ISc3-3 are not applicable.** Harken Capital Sec urities LLC carries no customer funds or securities and therefore is exempt from the reserve and po session or control requirements under Rule 15c3-3(k)(2(i) 0 f the Securities Exchange Act of 1934 . . ccordingly. the computation for determination of reserve requirements pursuant to Rule 15c3-3 and infonnation rela ing ro the po s ssion or control requirement to Rule 15c3-3 ar not applicabJ . {15}------------------------------------------------ # LARRY D. LIBERFARB, P.c. LARRY D. LIBERFARB, PC. CERTIFIED PUBLIC ACCCUNTANTS AND FINANCIAL ADVISORS CERTlFIED PUBUC ACCOU TAL T\_ A DF! 'A CIALADVI R~ 11 Vandtrfll1r A~enuc. Suite- 220, Noorood. M3\$5;JC.hlMt'tS 02062 Td. (781) 255-8800 F;u (781) 255·9217 E·M~LI: Inf04ZLL~rfarb.com 1 'andt-rbdt A HllUC. Itt' 1 O. oru·ooJ. M~ cnwecr· \_ ,. 2 Tel (7'\) Z- ' - , Fax (7 ]) 255·9! 7 E·~.faJl: Inio@LI~Ib.c m ### Report of Independent Registered Public Accounting Firm Report of Independent. Registered **Public** Accounting Firm To the Members Of Harken Capital Securities LLC To th . Members Of Harken Ca pital 'eclJrities LLC We have reviewed management's statements. included in the accompanying Exemption Report, in which (I) Harken Capital Securities LLC identified the following provisions of 17 C.F .R. ISc3-3(k) under which Harken Capital Securities LLC claimed an exemption from 17 C.F.R. 240.ISc3-(k)(2)(i) (exemplion provisions) and (2) Harken Capital Securities LLC stated that Harken Capital Securities LLC met the identified exemption provisions throughout the most recent fiscal year without exception. Harken Capital Securities LLC's management is responsible for compliance with the exemption provisions and its statements. We ha e reviewed management' statements, included in Ih • accompanyi ng Exempti on Report, in \.vhich (I) Harken Capital ecuritie LLC identified tbe foUowing provisions of 17 C.F.R. I' ~-3(k) under which Harken Capital Securities LLC claimed an exemption from 17 C.f.R. 240. I Sc3 -(k)(2)(i) (exemption pro\'isioll ) and (2) Harken Capital Securities LLC slated that Harken Capital Securities LLC met the identified exemption provisions throughout the mOS l recent ~ cal year \ ithout exception . Harken Capital Securities LLC s managem nl is re pan -ible for compliance with the xemption pro isions an its statements. Our review was conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) and, accordingly, included inquiries and other required procedures to obtain evidence about Harken Capital Securities LLC's compliance with the exemption provisions. A review is substantially less in scope than an examination, the objective of\\hich is the expression of an opinion on management's statements. Accordingly, \\!e do not express such an opinion. Our revi Vol was onducted in accordance with the tandards of tbe Publi Company Accounling OvCrsiJ1! Board niled Slates) and, accordingly. included inquiries and oth r required procedures to obtai.n e ·idence about Harken Capital Securities LLc"s compliance with the exemption provisions. A rcvie\ is substantiall. Ies in s ope lhan an examination. the objecliv o f ,\ hich is the expre sion of an opinion on management s statements. A cordingly, we do nOl express such an opinion. Based on our review, we are not aware of any material modifications that should be made to management's statements referred to above for them to be fairly stated. in all material respects. based on the provisions sct forth in paragraph (k)(2)(i) of Rule ISc3-3 under the Securities Exchange Act of 1934. Based 011 our rc.vie\ we are nO l aware of any material modi ficalians that should be made to management' statements re fi rred to above for lhem to be fairly stated. in all mate.ri.ul rcspec , bas d on lhe provisions et fonh in paragraph (k)(2)(i) of Rule 15c3- "' under (he Sccuriti Exchange Act of 1934. ~~~; ~:;r; ~ .. *.A.../:..-* ;;~ ,~?ts / . Augu 22, 2019 ~ *\_ Z* '-.1.-,-, ~~ ~ ~ '- .v . orwoo ,~us Is / . Augu 22,2019 {16}------------------------------------------------ #### HARKEN CAPITAL SECURITIES LLC HARKEN CAPITAL ... ..,.~"'Trr'T'T".....,. ... #### EXEMPTION REPORT REQUIREMENT FOR BROKERIDEALERS UNDER RULE 170-5 OF THE SECURITIES EXCHANGE ACT OF 1934 EXEMPTION REPORT REQUIREMENT FOR BROKERJDEALERS UNDER OF THE SECURITIES EXCHANGE ACT OF 1934 #### **June 30, 2019** June 30, 2019 **To the best knowledge and belief** of Harken **Capital Securities:** To the best Kn()Wled~;e > The Company claimed the (k)(2)(i) exemption provision from Rule 15c3-3 of the **Securities Exchange Act of 1934.** Company claimed the (k){2)(i) exempllion provision from Rule 15c3-3 the Securities Exchange Act of 1934. > The Company met the (k)(2)(i) exemption provision from Rule 15c3-3, without exceptio throug ut the most recent fiscal year ending June 30, 2019. without Title **See Report of Independent Registered Public Accounting Finn.** Ac~ounti.ng Finn. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.