# PARSONEX CAPITAL MARKETS, LLC X-17A-5 (2021-03-30) — Broker-dealer annual report - Company: PARSONEX CAPITAL MARKETS, LLC - Form: X-17A-5 - Filed: 2021-03-30 - Period: 2020-12-31 - Accession: 0001590360-21-000003 - CIK: 1590360 - File #: 8-69377 - Material weakness: No - Auditor: Rubio CPA, PC - Auditor location: Atlanta, GA - Contact: Anthony Diamos - Phone: 4045366984 - Signed by: JONATHAN MILLER (CHIEF EXECUTIVE OFFICER) Original filing: https://www.sec.gov/Archives/edgar/data/1590360/000159036021000003/PCMpublc.pdf --- {0}------------------------------------------------ # **PUBLIC** **UNITED ST ATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** **ANNUAL AUDITED REPORT FORM X-17A-5 PART Ill** | 0MB APPROVAL | | | | | | |---------------------------|--|------------------|--|--|--| | 0MB Number: | | 3235-01 23 | | | | | Expires: | | October 37, 2023 | | | | | Estimated average burden | | | | | | | hours per response 12.00 | | | | | | | SEC FILE NUMBER | |-----------------| | s-69377 | **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 _ | | __ 0_1_/ 01_f2._0_dl __
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MM/DDIYY | |---------------------------------------------------------------------------------------------------------------------------------|-----------------------------------|------------------------------------------------|---------|----------------------------------------------------| | | A. REGISTRANT IDENTIFICATION | | | | | NAME OF BROKER-DEALER: PARSON EX CAPITAL MARKETS, LLC | | | | OFFICIAL USE ONLY | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | | FIRM 1.0. NO. | | | 8310 S. VALLEY HIGHWAY, SUITE 110 | | | | | | | (No. and Street) | | | | ENGLEWOOD | | co | | 80
112 | | (City) | | (State) | | (Zip Code) | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THJS REPORT
ANTHONY DIAM OS | | | " | {404} 536-6984
(Arca Code-
Telephone Number) | | | B. ACCOUNT ANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* | | | | | | | | Rubio CPA, PC | | | | | (Name - | ifindivid11al, state lust, first, middle name) | | | | 2727 Paces Ferry Rd SE, Bldg 2, Ste 1680 | Atlanta | | GA | 30339 | | (Address) | (City) | | (State) | (Zip Code) | | CHECK ONE: | | | | | | [l]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 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. l 7a-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.** # **PUBLIC** {1}------------------------------------------------ #### **OATH OR AFFIRMATION** #### I, JONATHAN MILL Ft , swear (or affirm) that, to the best of my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of P PRSONEX CAPITAL MAR �TS J.\_ LC \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ , as of DECEMBER 31 20 ---------------------.J 20 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: ![](_page_1_Figure_6.jpeg) Notary Public This report\*\* contains (check all applicable boxes): - **0** (a) Facing Page. - [2] (b) Statement of Financial Condition. - 12] (c) Statement of Income (Loss) 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). - [Z] (d) Statement of Changes in Financial Condition. - ✓ 0 (e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital. - D (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 15c3-3. - (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 I 5c3- I and the Computation for Determination of the Reserve Requirements Under Exhibit A of Rule l 5c3-3. - **D** (k) A Reconciliation between the audited and unaudited Statements of Financial Condition with respect to methods of consolidation. - [2] (I) 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 o.f c01!fidential treatment o.f certain portions of this.filing, see section 240. /7a-5(e)(3).* {2}------------------------------------------------ # **PARSONEX CAPITAL MARKETS, LLC** ST A TEMENT OF FINANCIAL CONDITION FOR THE YEAR ENDED DECEMBER 31, 2020 WITH REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM {3}------------------------------------------------ # **P ARSONEX CAPITAL MARKETS, LLC** # **CONTENTS** Independent Auditor's Report FINANCIAL ST A1E�NTS Statement of Financial Condition Notes to Financial Statements {4}------------------------------------------------ RUBIO CPA, PC CERTIFIED PUBLIC ACCOUNTANTS 2727 Paces Ferry Road SE Building 2, Suite 1680 Atlanta, GA 30339 Office: 770 690-8995 Fax: 770 83 8-712 3 #### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Members of Parsonex Capital Markets, LLC Opinion on the Financial Statements We have audited the accompanying statement of financial condition of Parson ex Capital Markets, LLC (the ''Company") as of December 31, 2020, the related statements of operations, changes in members' equity, and cash flows for the year then ended and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2020, 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. #### Basis for Opinion These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements 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 statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. Our audit included performing procedures to assess the risks of material misstatement to 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 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. #### Supplemental Information The information contained in Schedules I, IT and Ill has been subjected to audit procedures performed in conjunction with the audit of the Company's financial statements. The supplemental information is the responsibility of the Company's ma'nagem ent. Our audit procedures included determining whether the information in Schedules I, 11 and III reconciles to the financial statements or the underlying accounting and other recdtds, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the ac'companying schedules. In forming our opinion on the accompanying schedules, we evaluated whether the supplemental information, including its form and content, is presented {5}------------------------------------------------ in conformity with 17 C.F.R. §240. I 7a-5. In our opinion, the aforementioned supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole. We have served as the Company's auditor since 2019. March 29, 2021 Atlanta, Georgia �C,J',f,/'� Rubio CPA, PC {6}------------------------------------------------ # **PARSONEX CAPITAL MARKETS, LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2020** | ASSETS | | |---------------------------------------|--------------| | Cash | \$
38,604 | | Advances to broker | 12,748 | | Prepaid expenses and other | 39,664 | | Total Assets | \$
91,016 | | LIABILITIES AND MEMBERS' EQUITY | | | LIABILITIES | | | Accounts payable | 2,200 | | Total Liahilities | \$
2,200 | | MEMBERS' EQUITY | 88,816 | | Total liabiliJies and members' equity | \$
91,016 | *The accompanying notes are an integral part of this statement.* {7}------------------------------------------------ # *NOTE 1* - *SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES* #### *Organization and Business* **Parsonex Capital Markets, LLC (the "Company"), is a Delaware Limited Liability Company formed on May 25, 2010. The Company is owned 49% by Apex Integrated Capital, LLC and 51 % by Parsonex Enterprises, Inc. The Company is approved to operate as a broker-dealer as a member of the Financial Industry Regulatory Authority ("FINRA") and is registered with the Securities and Exchange Commission ("SEC"). The Company provides services in selling tax shelters and limited partnership interests in primary distribution as well as private placements of securities. As a limited liability company, the members' liability is limited to their investments.** #### *Accounting Policies* **The Company follows Generally Accepted Accounting Principles (GAAP), as established by the Financial Accounting Standards Board (the FASB), to ensure consistent reporting of financial condition, results of operations, and cash flows.** # *!d!!!!.* **The Company maintains its bank account in a high credit quality institution. The balance at times may exceed federally insured limits.** # *Revenue Recognition* **Revenue from contracts with customers includes private placement services. The recognition and measurement of revenue is based on the assessment of individual contract terms. Significant judgment 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 appropriate measure of the Company's progress under the contract; whether revenue should be presented gross or net of certain costs; and whether constraints on variable consideration should be applied due to uncertain future events.** **The Company recognizes fees from private placements upon the sale of each unit in an offering as this satisfies the only performance obligation identified in accordance with this standard.** #### *Esdmates* **Management uses estimates and assumptions in preparing financial statements in accordance with generally accepted accounting principles. Those estimate and assumption affect the reported amounts of assets, liabilities, revenues, and expenses. Actual results could vary from the estimates that were assumed in preparing the financial statements.** {8}------------------------------------------------ # *NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)* ### *Income Taxes* **The Company has elected to be taxed as a partnership for income tax reporting purposes. Therefore, the income or losses of the Company flow through to and are taxable to the Members. Accordingly, no income taxes are reflected in the accompanying financial statements.** **The Company has adopted the provisions of FASB Accounting Standards Codification 740-10, Accounting for Uncertainty in Income Taxes. Under FASB ASC 740-10, the Company is required to evaluate each of its tax positions to determine if they are more likely than not to be sustained if the taxing authority examines the respective position.** *A* **tax position includes an entity's status, including its status as a pass-through entity, and the decision not to file a return.** **The Company has evaluated each of its tax positions and has determined that it has no uncertain tax positions for which a provision or liability for income taxes is necessary.** # *NOTE 2 - NET CAPITAL REQUIREMENTS* **The Company is subject to SEC Uniform Net Capital Rule l 5c3-l, which requires the maintenance of a minimum net capital equal to the greater of \$5,000 or 6-2/3% of aggregate indebtedness as well as a ratio of aggregate indebtedness to net capital that shall not exceed 15 to 1, both as defined. At December 31, 2020, the Company had net capital of \$36,404, which was \$31,404 in excess of its required net capital of \$5,000. The Company's aggregate indebtedness to net capital ratio was 0.06 to 1.00.** # *NOTE 3 - RELATED PARTY TRANSACTIONS* **The Company earned all of its private placement revenues from its sale of units in offerings of funds pursuant to managing dealer agreements. The managing members of the funds are wholly owned by the members of the Company.** **Separately, the Company leases office space from a sister broker-dealer pursuant to a month-tomonth sublease agreement. Rent expense under this agreement was \$6,000 in 2020 and has been included in occupancy expense in the accompanying statement of operations.** {9}------------------------------------------------ ### *NOTE 3 - RELATED PARTY TRANSACTIONS (Continued)* **During 2020, the Company entered into a revenue sharing agreement with its sister broker-dealer. The Company receives referrals from its sister broker-dealer and pays a fee to the sister brokerdealer for revenue generated from referred entities. Fees expensed by the Company under this agreement were \$4,200 and have been included in other expenses in the accompanying statement of operations.** **The Company has a facilities and management agreement in place with one of its members whereby the Company is allocated its share of administrative and employee services based upon the relative time and effort spent by employees of the member on the Company. Pursuant to this agreement, the Company paid this member approximately \$65,070 during 2020 which has been included in compensation and benefits in the accompanying statement of operations. Apart from this agreement, the Company paid approximately \$11,600 to this member for monthly back office support provided by an employee of the member to the Company during 2020.** **Financial position and results of operations could differ from the amounts in the accompanying financial statements if these related party transactions did not exist.** ### *NOTE4 - SUBSEQUENT EVENTS* **The Company has performed an evaluation of subsequent events through the date the financial statements were issued. The evaluation did not result in any subsequent events that required disclosure and/or adjustment.** # *NOTE 5 - CONTINGENCIES* **The Company is subject to litigation in the normal course of business. The Company has no litigation in progress at December 31, 2020.** # *NOTE 6 - ECONOMIC RISKS* **In March 2020, the World Health Organization (WHO) declared COVID-19 a global pandemic. This pandemic event has resulted in significant business disruption and uncertainty in both global and U.S. markets. While the Company believes that it is in an appropriate position to sustain the potential short-term effects of these world-wide events, the direct and long-term impact to the Company and its financial statements is undetermined at this time.** {10}------------------------------------------------ ### *NOTE 7 - CONCENTRATION* **Approximately 91 % of the Company's private placement revenue was earned from one fund.** # *NOTE 8 - NET LOSS* **The Company incurred a si**gn**ificant loss for 2020. The Company's Members have represented that they have the means and intention to provide capital contributions as needed to ensure the Company's survival through at least one year subsequent to the date of the report of the independent registered public accounting firm.** **Management expects the Company to continue as a going concern and the accompanying financial statements have been prepared on a going-concern basis without adjustments for realization in the event that the Company ceases to continue as a going concern.** Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.