# JETT CAPITAL ADVISORS, LLC X-17A-5 (2023-03-30) — Broker-dealer annual report
- Company: JETT CAPITAL ADVISORS, LLC
- Form: X-17A-5
- Filed: 2023-03-30
- Period: 2022-12-31
- Accession: 0001586743-23-000001
- CIK: 1586743
- File #: 8-69353
- Type: Broker-dealer
- Material weakness: No
- Auditor: Raphael, Goldberg, Nikpour, Cohen, Sullivan CPA's PLLC
- Auditor location: Woodbury, NY
- Contact: J. Clarke Gray
- Phone: 9172381263
- Email: clarke@taytorgrayhc.com
- Website: taytorgrayhc.com
- Signed by: J. Clarke Gray (CFO)
Original filing: https://www.sec.gov/Archives/edgar/data/1586743/000158674323000001/short.pdf
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| | UNITED STATES | | |
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| PUBLIC | SECURfflES AND EXCHANGE COMMISSION | | 0MB Number. 3235-0123
Expires: Oct. 31, 2023 |
| | Washington, D.C. 20549 | | Estimated average burden
hours per response: 12 |
| | ANNUAL REPORTS | | |
| | FORM X-17A-S | | SEC FILE NUMBER |
| | PART Ill | | 8-69353 |
| | | | |
| Information Required Pursuant to Rules 17a-5, 17a-u, and 188-7 under the securities Exchange Act of 1934 | FACING PAGE | | |
| FILING FOR THE PERIOD BEGINNING 01/01/22
AND ENDING 12131/22 | | | |
| | --------
MM/DO /YV | | --------
MM/DD/VY |
| | A. REGISTIW'IT Jl>ENTIFICATION | | |
| NAME OF FIRM: Jett Capital Advisors LLC | | | |
| TYPE OF REGISTRANT (check all applicable boxes):
liJ Broker dealer
D Check here if respondent is also an OTC derivatives dealer | , □ Security-based swap dealer | | D Major security-based swap participant |
| ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P .0. box no.) | | | |
| 712 Fifth Ave,, 11th Floor | | | |
| | (No. and Street) | | |
| | | | |
| | | | |
| New York City | N.Y. | | 10019 |
| (Oty) | (State) | | (Zip Code} |
| | | | |
| | 917-238-1263 | | clarke@taytorgrayHc.com |
| | (Area Code-Telephone Number) | | (Email Address) |
| | | | |
| | 8. ACCOUNTANT IDENTIFICATION | | |
| | | | |
| | | | |
| | (Name - If fndlvfdual, state fast, first, and middle name) | | |
| | Woodbury | N.Y. | 01797 |
| | (City) | (State) | (Zip Code) |
| | | 5028 | |
| PERSON TO CONTACT WITH REGARD TO THIS FILING
J Clarke Gray
(Name)
INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained In this filing*
Raphael, Goldberg, Nikpour, Cohen, Sullivan CPAs. PLLC
97 Froehlich Farm Blvd.
(Address}
02/23/10
(DateofR.
tfon with PCAOB if a | If cable | | PCAOB Re istratlon Number, if a llcable |
| | FOR OFFIOAL USE ONLY | | |
CFR 240.17a-S(e)(l)(H), ff appli~ble • . ·,.\_rsons.wf1~are,to respond 19,thecolktctfon of Information contained In-this form·are not required to respond unless the.form
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#### JETT CAPITAL ADVISORS LLC
#### STATEMENT OF FINANCIAL CONDITION
#### AS OF DECEMBER 31, 2022
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## **JETT CAPITAL ADVISORS LLC CONTENTS**
# REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
# FINANCIAL ST A TEMENT
Notes to Financial Statements
3-6
I
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Mork C. Goldberg, CPA Mork Raphael, CPA Florio Somii-Nikpour, CPA Allon B. Cohen, CPA Michael R. Sullivan, CPA
Anita C. Jacobsen, CPA
Founding Portner: Melvin Goldberg, CPA
#### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**
To the Managing Member of Jett Capital Advisors LLC
#### **Opinion on the Financial Statement**
We have audited the accompanying statement of financial condition of Jett Capital Advisors LLC (the "Company") (a limited liability company), as of December 31, 2022, and the related notes to the financial statement. In our opinion, the statement of financial condition presents fairly, in all material respects, the financial position of Jett Capital Advisors LLC as of December 31, 2022, 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 ("SEC") 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.
Raphael Goldberg Nikpour Cohen & Sullivan Certified Public Accountants PLLC
We have served as Jett Capital Advisors LLC's auditors since 2018
Woodbury, New York March 30, 2023
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# **JETT CAPITAL ADVISORS LLC Statement of Financial Condition**
December 31, 2022
#### **ASSETS:**
| Cash | \$ 1,246,264 |
|---------------------------------------|----------------------|
| Due from broker | 16,167 |
| Due from parent | 1,694,484 |
| TOTAL ASSETS | \$2,956,915 |
| LIABILITIES AND MEMBER'S EQUITY: | |
| Accounts payable and accrued expenses | \$
98,620 |
| Deferred rent | 22,608 |
| TOT AL LIABILITIES
Member's Equity | 121,228
2,835,687 |
| TOTAL LIABILITIES AND MEMBER'S EQUITY | \$ 2,956,915 |
**The accompanying notes are an integral part of this financial statement.**
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# Note 1 - **Qrgaqizatiop agd Nature o(Busiuess Activity**
Jett Capital Advisors, LLC ("the Company", "the LLC", "or "JCA") was organized in Delaware on August 19, 2013. On March 18, 2014 the Company was approved as a broker/dealer registered with the Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA). The Company advises its customers in raising capital primarily through private placements of public equity securities to institutional investors. The Company is focused primarily on the mining and minerals sector. It is a wholly owned subsidiary of Jett Capital Advisors Holdings, LLC ("the parent" or "JCAH").
The Company operates pursuant to the net capital provisions of Rule l 5c3-3 of the Securities Exchange Act of 1934, and accordingly, is exempt from provisions of that Rule. The Company does not hold customer funds or securities. Under these exemptive provisions, the Computation for Determinationof Reserve Requirements and Information Relating to the Possession and Control Requirement s are not required.
# **Note** 2 - **Summary** 0( **Significant Accounting Policies**
## Basis of Presentation
The accompanying financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America ("U.S. **GAAP")** as determined by the Financial Accounting Standards Board ("F ASB") Accounting Standards Codification ("ASC").
## Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of the assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
#### Fair Value of Financial Instruments
The Company's financial instruments consist of cash, accounts receivable, receivable from affiliated entity, and accounts payable. The fair value of cash is based upon the bank balance at December 31, 2022. The fair value of accounts receivable, receivable from affiliated entity and accounts payable is estimated by management to approximate their carrying value at December 31, 2022.
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# Note 2 - Summary of Significant Accounting Policiesfcontinued}
## Income Taxes
ASC Topic 740 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. ASC Topic 740 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Partnership's tax returns to determine whether the tax positions are "more-likely-than- not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more likely-than-not threshold would be recorded as a tax benefit or expense in the current year. The Partnership determined that there are no uncertain tax positions which would require adjustments or disclosures on the financial statements.
## Cash and Cash Equivalents
The Company has defined cash equivalents as highly liquid investments with original maturities of less than 90 days which are not held for sale in the ordinary course of business.
## Due from Brokers
The Company from time to time has cash at brokers. At December 31, 2022 this amounted to \$16,167.
## Concentration of Credit Risk
The Company maintains its cash in bank deposit accounts at high quality financial institutions . The balances at times, may exceed the Federal Deposit Insurance Corporation's (the "FDIC") current \$250,000 limit. At December 31, 2022 the Company exceeded the limit by \$999,264.
#### Credit Losses
The Company complies with ASC Topic 326, Financial Instruments - Credit Losses ("ASC 326"). ASC 326 impacts the impairment model for certain financial assets by requiring a current expected credit loss ("CECL") methodology to estimate expected credit losses over the entire life of the financial asset. Under the accounting update, the Company has the ability to determine that there are no expected credit losses in certain circumstances (e.g., based on the credit quality of the customer).
The Company's advisory fees are impacted by the new guidance. The Company had \$16, 167 due from broker at December 31, 2022 and 2021.
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# **Note** 3 - **Net Capital Requirements**
The Company is registered with the SEC. The Company does not carry customer accounts and does not accept customer funds or securities.
The Company is subject to the SEC Uniform Net Capital Rule (SEC Rule 15c3-1 ), which requires the maintenance of a minimum amount of 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, 2022, the Company had net capital of \$1, 141,203 which was \$1,041,203 in excess of its minimum net capital requirement of \$100,000. The ratio of aggregate indebtedness to net capital is 0.106 to 1.
# Note 4 - **Income Taxes**
The Company is an LLC, wholly owned by JCAH and files consolidated federal and state with its only member, its Parent, and as a result is a "disregarded entity" for Federal and State income tax purposes. Accordingly, no provision or liability for federal and state income taxes has been included in the financial statements. The Company also files a consolidated tax return with its Parent who is subject to New York City Unincorporated Business Tax ("NYCUBT"). The Company accounts for the NYCUBT as though the Company filed its own return separate from the Parent and tax payments, if any, are paid to its Parent for its proportionate share of taxes.
## Note 5 - **Belated Party Jrapsactiops**
The Company has entered into an expense sharing agreement with J CAH as of April 1, 2014 whereby all expenses related to the business of the Company will be borne by the Company as follows:
All registration and filing fees incurred in connection with associated persons of the Company for registrations which may be required under ( i) the Securities Exchange Act of 1934 (the "Exchange Act"); (ii) the By-Laws and Rules of Financial Industry Regulatory Authority ("FINRA"); and (iii) all applicable securities laws and regulations of those States and other jurisdictions in which such associated persons of the Company intend to conduct business; and All FINRA-related dues and assessment fees, annual independent auditor fees, fidelity bond premium fees, and its own federal, state and local tax liabilities.
All expenses related to the business of the Company.
Any expenses paid by JCAH will be reimbursed by the Company at the cost to JCAH including the NYUBCT, as more fully described in Note 4. No expenses were paid by JCAH on behalf of the Company during the year ended December 31, 2022
This agreement can be terminated by either party with six month's written notice.
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#### **Note 6- Commitments, Contingencies and Indemnifications**
In the normal course of its operations, the Company enters into contracts and agreements that contain indemnifications and warranties. The Company's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Company that have not yet occurred. However, the Company has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.
JCAH entered into an office lease which commenced on June 1, 2018 for a period of six and one-half six years tenninating November 30, 2023. The Company uses that space and makes the payments on behalf of JCAH as part of the agreement with JCAH.
As a result of the lease payments the Company recognized rent expenses on a straight-line basis computed by dividing the total rent to be paid over the lease arrangement. At December 31, 2022, the Company had a \$22,608 deferred rent credit to be amortiz.ed through November 30, 2023.
# Note 7 - Subsequent Events
Management has evaluated the Company's events and transactions that occurred subsequent to December 31, 2022, through March 30, 2023 the date of issuance of these financial statements.
There were no other events or transactions that occurred during this period that materially impacted the amounts or disclosures in the Company's financial statements.
Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.