# SWCD LLC X-17A-5 (2019-02-28) — Broker-dealer annual report - Company: SWCD LLC - Form: X-17A-5 - Filed: 2019-02-28 - Period: 2018-12-31 - Accession: 0001580822-19-000001 - CIK: 1580822 - File #: 8-69309 - Material weakness: No - Auditor: Knight Rolleri Sheppard CPAS, LLP - Auditor location: Fairfield, CT - Contact: Peter Gaudet - Phone: 914-861-2113 - Website: krscpasllp.com - Signed by: Peter W. Gaudet (President) Original filing: https://www.sec.gov/Archives/edgar/data/1580822/000158082219000001/Campfire2018PublicAudit.pdf --- {0}------------------------------------------------ ## STATEMENT OF FINANCIAL CONDITION AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Year Ended December 31, 2018 {1}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C.** 20549 | 0MB APPROVAL | | | | | |---------------------------|-----------------|--|--|--| | 0MB Number: | 3235-0123 | | | | | Expires: | August 31, 2020 | | | | | Estimated average burden | | | | | | Hours per response 12.00 | | | | | | | | | | | 8- **69309** SEC FILE NUMBER # ANNUAL AUDITED REPORT FORM X-17 A-5 PART Ill #### **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 | ----------
01/01/2018
MM/DD/YY | AND ENDING | -----------
12/31/2018
MM/DD/YY | | | | |-----------------------------------------------------------------------------------------------|--------------------------------------|---------------|---------------------------------------|--|--|--| | A. REGISTRANT IDENTIFICATION | | | | | | | | NAME OF BROKER-DEALER: | | | OFFICIAL USE ONLY | | | | | SWCD LLC dba Campfire Capital | | FIRM I.D. NO. | | | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | | | | | | 81 Campfire Road | | | | | | | | | (No. and Street) | | | | | | | Chappaqua | NY | 10514 | | | | | | (City) | (State) | | (Zip Code) | | | | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT | | | | | | | | Peter Gaudet | | | 914-861-2113 | | | | | | | | (Area Code - Telephone Number) | | | | | | B. ACCOUNTANT IDENTIFCATION | | | | | | | INDEPENDENT PUBLIC ACCOUNT ANT whose opinion is contained in this Report* | | | | | | | | | | | | | | | | Knight Rolleri Sheppard, CPAS, LLP
(Name - if individual, state last,first, middle name) | | | | | | | | | | | | | | | | 1499 Post Road, PO Box 139
(Address) | Fairfield
(City) | CT
(State) | 06824
(Zip Code) | | | | | | | | | | | | | CHECK ONE: | | | | | | | | [8]
Certified Public Accountant
D | | | | | | | | Public Accountant
D
Accountant not resident in United States or any of its possessions. | | | | | | | | | | | | | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | | | | | | | | | | | *\*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 240.17 a-5 (e) (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 0MB control number.** SEC 1410 (06-02) {2}------------------------------------------------ **OATH OR AFFIRMATION** I, **Peter W. Gaudet** , swear ( or affirm) that, to the best of my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of \_\_\_\_\_\_\_\_\_ **SWCD LLC dba Campfire** ..;;.\_ \_\_ **Capital** \_c;.\_ \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_ \_\_\_\_\_\_\_ \_ , as of **December 31** , 20 **18**, are true and correct. I further swear ( or affirm) that - - - - ------- --- --- -- -- neither the company nor any partner, proprietor, principal officer or director has any proprietary interest in any account classified solely as that of a customer, except as follows: Notary Public This report\*\* contains (check all applicable boxes): ~ (a) Facing page. ~ (b) Statement of Financial Condition. **D** (c) Statement oflncome (Loss). D (d) Statement of Changes in Financial Condition. ,,. Signature **President** Title **D** (e) □ (f) □ (g) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietor's Capital. Statement of Changes in Liabilities Subordinated to Claims of Creditors. Computation of Net Capital. D (h) Computation for Determination of Reserve Requirements Pursuant to Rule 15c3-3. **D** ( i) Information Relating to the Possession or Control Requirements under Rule 15c3-3. **D** U) A Reconciliation, including appropriate explanation, of the Computation of Net Capital Under Rule 15c3-l and the Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3. **D** (k) A Reconciliation between the audited and unaudited statements of Financial Condition with respect to methods of consolidation. ~ **(1)** An Oath or Affirmation. D (m) A copy of the SIPC Supplemental Report. D (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 240.17 a-5 (e)(3).* {3}------------------------------------------------ #### **TABLE OF CONTENTS** | | Page No. | |---------------------------------------------------------|----------| | REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | 1 | | FINANCIAL STATEMENT | | | Statement of Financial Condition | 2 | | Notes to Financial Statement | 3-5 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) Knight • Rolleri • Sheppard, CPAS, LLP Michael J. Knight, CPA, CVA, CFE,ABV John M. Rolleri, CPA, CFE Ryan C. Sheppard, CPA, CFF #### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Member of Campfire Capital #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Campfire Capital as of December 31, 2018, 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 Campfire Capital as of December 31, 2018 in conformity with accounting principles generally accepted in the United States of America. #### **Basis for Opinion** This financial statement is the responsibility of Campfire Capital's management. Our responsibility is to express an opinion on Campfire Capital'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 Campfire Capital 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 included 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. We have served as Campfire Capital's auditor since 2016. Fairfield, Connecticut February 26, 2019 1499 Post Road, Suite I 040 • Fairfield, CT 06824 • p:203.259.2727 • f:203.256.2727 • www.krscpasllp.com American Institute of Certified Public Accountants • Connecticut Society of Certified Public Accountants New York State Society of Certified Public Accountants • Public Company Accounting Oversight Board {5}------------------------------------------------ ## **STATEMENT OF FINANCIAL CONDITION December 31, 2018** #### **ASSETS** | Cash | \$
36,735 | |---------------------------------------|--------------| | Other current assets | 2,531 | | | \$
39,266 | | LIABILITIES AND MEMBER'S EQUITY | | | Accounts payable and accrued expenses | \$
13,050 | | Member's equity | 26,216 | | | \$
39,266 | {6}------------------------------------------------ ## **NOTES TO FINANCIAL STATEMENTS** **December 31, 2018** **(See Report of Independent Registered Public Accounting Firm)** #### Note 1 **Description of the Company** SWCD LLC dba Campfire Capital (the "Company") formed on June 19, 2008, is a registered broker-dealer with the Securities and Exchange Commission ("SEC") and a member of the Financial Industry Regulatory Authority (FINRA). The Company engages in the private placement of securities, mergers & acquisitions advisory services, corporate finance & development services, and investment banking advisory services. The Company received its FINRA approval for membership on April 29, 2014. The Company is exempt from rule 15c3-3 of the SEC under paragraph (k)(2)(i) of that rule. #### Note 2 **Summary of Significant Accounting Policies** ### **Cash and Cash Equivalents:** The Company considers all money market accounts, time deposits and certificate of deposits purchased with original maturities of three months or less to be cash equivalents. At December 31, 2018, there were no cash equivalents. ### **Property and Equipment** Property and equipment are recorded at cost and depreciated using straight-line method over the estimated useful lives of the related assets. #### **Revenue Recognition** Effective January 1, 2018, the Company adopted ASC Topic 606, Revenue from Contracts with Customers ("ASC Topic 606"). The new revenue recognition guidance requires that an entity recognize revenue to 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) determine the transaction price, ( d) allocate the transaction price to the performance obligations in the contract, and ( e) recognize revenue when ( or as) the entity satisfies a performance obligation. In determining the transaction price, an entity may include variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved. Revenue from contracts with customers includes fees from investment banking and financial advisory services. The recognition and measurement of revenue is based on the assessment of individual contract terms. 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 based 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. {7}------------------------------------------------ ## **NOTES TO FINANCIAL STATEMENTS** **December 31, 2018** **(See Report of Independent Registered Public Accounting Firm)** #### Note 2 **Summary of significant accounting policies (continued)** #### **Revenue recognition (continued)** Revenue from investment banking success fees are generally recognized at the point in time that performance under the arrangement is completed (the closing date of the transaction). Revenue from financial advisory retainer fees are generally recognized over time in which the performance obligations are simultaneously provided by the Company and consumed by the customer. Revenue from financial advisory valuation fees are generally recognized at the point in time that performance under the arrangement is completed. Retainers and other fees received from customers prior to recognizing revenue are reflected as contract liabilities. At December 31, 2018, contract liabilities were \$0. Disaggregation can be found on statement of operations for the year ended December 31, 2018. #### **Accounts Receivable** An allowance for doubtful accounts is maintained based on management's assessment of the collectability of accounts receivable. The Company includes accounts receivable balances that are determined to be uncollectible, along with a general reserve, in the overall allowances for doubtful accounts. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. Based on the information available, the Company believes no allowance for doubtful accounts is necessary as of December 31, 2018. #### **Income Taxes** The sole member of the Company has elected to have the Company taxed as a single member LLC. Accordingly, the Company is not subject to federal or state income taxes. All taxable income or loss and tax credits are reflected on the income tax returns of the member. Tax periods from December 31,2 015 are subject to audit. #### **Estimates** The preparation of financial statements in conformity with United States of America generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. #### Note 3 **Related Party Transactions** The Company utilizes office space owned by the sole member. No rent was charged to the Company during the 12 months ended December 31, 2018. {8}------------------------------------------------ ### **NOTES TO FINANCIAL STATEMENTS** **December 31, 2018** **(See Report of Independent Registered Public Accounting Firm)** #### Note4 **Concentrations** #### **Customers** The Company has several contracts with clients that generate more than 10% of total annual revenues, while there are three clients that represent 68% of total revenue for 2018. ### **Cash** The Company maintains its cash at financial institutions in bank deposits, which may exceed federally-insured limits. The Company has not experienced any losses in such accounts and the Company believes it is not exposed to any significant risk with respect to cash. #### Note 5 **Net Capital Requirements** The Company is subject to the Securities and Exchange Commission's Uniform Net Capital Rule (Rule 15c3-1), which requires the maintenance of a minimum net capital balance and requires that the Company's aggregate indebtedness to net capital, as defined, shall not exceed 15 to 1. At December 31, 2018 the Company's net capital was \$23,685, which was \$18,685 in excess of its required net capital of \$5,000. The Company's aggregate indebtedness to net capital was 0.55 to 1. #### Note 6 **Subsequent events** The Company has evaluated subsequent events through February 26, 2019, which is the date the financial statements were available to be issued. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.