# FORT GHENT BROKERAGE LLC X-17A-5 (2021-03-31) — Broker-dealer annual report - Company: FORT GHENT BROKERAGE LLC - Form: X-17A-5 - Filed: 2021-03-31 - Period: 2020-12-31 - Accession: 0001602135-21-000001 - CIK: 1602135 - File #: 8-69432 - Material weakness: No - Auditor: Sanford Becker & Co. P.C. - Auditor location: New York, NY - Contact: Alex Mack - Phone: 917-923-1478 - Signed by: David Mack (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1602135/000160213521000001/ftgsofc20.pdf --- {0}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** 0MB APPROVAL 0MB Number: 3235-0123 Expires: October 31, 2023 Estimated average burden hours per response ...... 12.00 ## **ANNUAL AUDITED REPORT FORM X-17A-5 PART Ill** | SEC FILE NUMBER | |-----------------| | 8-69432 | **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 01/01/2020 | ----------- | AND ENDING 12/31/2020 | | |---------------------------------------------------------------------------------------|--------------------------------------------------------|-----------------------|------------------------------------------------| | | MM/DD /Y Y | | MM/DD/YY | | | A. REGISTRANT IDENTIFICATION | | | | NAME OF BROKER-DEALER: Fort Ghent Brokerage LLC | | | OFFICIAL USE ONLY | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No .) | | | FIRM I.D. NO. | | 575 Madison Avenue, Suite 1006 | | | | | | (No. and Street) | | | | New York | NY | | 10022 | | (City) | (State) | | (Zip Code) | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
David Mack | | | 212-588-0580
(Area Code - Telephone Number) | | | B. ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* | | | | | Sanford Becker & Co, PC | | | | | | (Name - if individual, state last, first, middle name) | | | | 1430 Broadway, Suite 605 | New York | NY | 10018 | | (Address) | (City) | (State) | (Zip Code) | | CHECK ONE: | | | | | lce rtified Public Accountant | | | | | Public Accountant | | | | | B
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 240.17a-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.** {1}------------------------------------------------ #### **OATH OR AFFIRMATION** | I, David Mack | , swear (or affirm) that, to the best of | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Fort Ghent Brokerage LLC | my knowledge and belief the accompanying financial statement and supporting schedules pertaining to
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are true and correct. I further swear (or affirm) that | | | neither the company nor any partner, propriei:or, principal officer or director has any proprietary interest
in any account | | classified solely as that of a customer, except as follows: | | | | | | MELISSA AU TAR | Signature | | Notary Public - State of New York
NO. 01AU6394597
Qualified in Queens County
My Commission Expires Jul 8, 2023
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This report** contains (check all applicable boxes):
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(a) Facing Page.
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(b) Statement of Financial Condition .
D | | | of Comprehensive Income (as defined in §210.1-02 of ~egulation S-X).
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(d) Statement of Changes in Financial Condition.
(e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital.
(t) Statement of Changes in Liabilities Subordinated to Claims of Creditors.
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(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.
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U) | (c) Statement oflncome (Loss) or, if there is other comprehensive income in the period(s) presented, a
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A Reconciliation, including appropriate explanation of the Computation ofNet Capital Under Rule l5c3-l
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consolidation.
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An Oath or Affirmation.
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(m) A copy of the SIPC Supplemental Report.
D | Computation for Determination of the Reserve Requirements Un(k) A Reconciliation between the audited and unaudited Statements of Financial Condition with respect
to methods of
(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.* J *7a-5(e)(3).* {2}------------------------------------------------ Fort Ghent Brokerage LLC Statement of Financial Condition DECEMBER 31, 2020 {3}------------------------------------------------ # **Fort Ghent Brokerage LLC** #### **CONTENTS** | Report of Independent Registered Public Accounting Firm | | |---------------------------------------------------------|-----| | Financial Statements | | | Statement of Financial Condition | 2 | | Notes to Financial Statements | 3-5 | {4}------------------------------------------------ #### SANFORD BECKER & CO., P.C. CERTIFIED PUBLIC ACCOUNTANTS AND BUSINESS ADVISORS G EORGES. GETZ, CPA SANFORD BECKER, CPA 1922-1994 SANFORD E. BECKER, CPA 1957-2008 1430 BROADWAY, SUITE 605 NEW YORK, N.Y.10018 TELEPHONE (212) 921 - 9000 FACSIMILE (212) 354-1822 #### **Report of Independent Registered Public Accounting Firm** To the Members of Fort Ghent Brokerage LLC #### **Opinion on the Financial Statements** We have audited the accompanying statement of financial condition of Fort Ghent Brokerage LLC, as of December 31, 2020 and the related notes (collectively referred to as the "financial statement"). In our opinion, the financial statement present fairly, in all material respects, the financial position of the Company, as of December 31, 2020 in conformity with the accompanying 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 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 is free of material misstatements, 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 overall presentation of the financial statement. We believe that our audit provides a reasonable basis for our opinion. We have served as the Company's auditors since 2017. New York, NY March 30, 2021 {5}------------------------------------------------ ## **Fort Ghent Brokerage LLC** #### **STATEMENT OF FINANCIAL CONDITION** | | | December 31, 2020 | | |---------------------------------------------------------------------------|----------|-------------------------------------|--| | ASSETS | | | | | Cash
Accounts receivable
Prepaid expense
Total assets | \$
\$ | 31 ,244
4,617
5,190
41 051 | | | LIABILITIES AND MEMBERS' EQUITY | | | | | Liabilities
Accounts payable and accrued expenses
Total liabilities | \$ | 13,596
13,596 | | | Members' equity | | 27,455 | | | Total liabilities and members' equity | \$ | 41 051 | | {6}------------------------------------------------ ### **NOTE 1. ORGANIZATION AND BASIS OF PRESENTATION** Fort Ghent Brokerage LLC (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's primary business activities include providing investment banking, merger and acquisition, and consulting services to clients. The Company is a dual member limited liability company; the two members are active principals in the Firm. The Company was organized under the laws of the State of New York on November 1, 2013. The Company became a registered broker-dealer with the Securities and Exchange Commission (the "SEC") and a member of the Financial Industry Regulatory Authority (FINRA) on August 4, 2014. The Company exists as a separate legal entity, unless dissolved in accordance with the provisions of the operating agreement and the laws of New York State. To the fullest legal extent possible, the Members shall not have any liability for the losses, liabilities, or claims against the Company. ### **NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** ### Revenue Recognition Revenue from contracts with clients are comprised of investment banking fees. Such fees are recognized at the point in time when the Company's performance under the terms of the contractual arrangement is completed, which is typically at the closing of the transaction. Reimbursed expenses related to these transactions are recorded as revenue. In certain instances, for advisory contracts, the Company will receive amounts in advance of the deal's closing. In these instances, revenue is recognized over time in which the performance obligations are simultaneously provided by the Company and consumed by the client. At December 31, 2020, there were no advances to the Company. ### 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 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. {7}------------------------------------------------ #### **NOTE 3. CONCENTRATION OF BUSINESS AND CREDIT RISK** All cash deposits of the Company are held by one financial institution and therefore are subject to credit risk at this financial institution. The Company has not experienced any losses in such accounts and does not believe there to be any significant credit risk with respect to these deposits. For purposes ofreporting the statement of cash flows, The Company considers all cash accounts which are not subject to withdrawal restrictions or penalties, and all highly liquid debt instruments with a maturity of three months or less to be cash equivalents. Cash balances in excess of FDIC and similar insurance coverage are subject to the usual banking risks associated with funds in excess of those limits. At December 31, 2020, the Company had no uninsured cash balances. The Company earned 96% of its fee revenues from three clients in 2020. 53% of the Company's accounts receivable at year end were from three accounts. #### **NOTE 4. RELATED-PARTY TRANSACTIONS** The Company shares office space with Compliance Matters, an affiliate under common control with the Company. During the year, the Company paid \$17,359 as its proportional share of the cost for the office space. There are no other transactions with related parties of the firm. ### **NOTE 5. INCOME TAXES** The Company is a limited liability company and as such is not subject to Federal or state income taxes. Federal and State income taxes, if any, are the responsibilities of the individual members. The Company is subject to New York City Unincorporated Business Tax. With few exceptions, the Company is no longer subject to tax examinations by taxing authorities for years before 201 7. The Company recognizes and measures its unrecognized tax benefits in accordance with F ASB ASC 740, *Income Taxes.* Under that guidance, the Company assesses the likelihood, based on their technical merit, that tax positions will be sustained upon examination based on the facts, circumstances and information available at the end of each period. With few exceptions, the measurement of unrecognized tax benefits is adjusted when new information is available, or when an event occurs that requires a change. {8}------------------------------------------------ ### **NOTE 6. COMMITMENTS AND CONTINGENCIES** The Company has a \$1663 liability due to a representative, contingent on collection of a receivable from a client. The Company expects to collect this receivable and pay its representative in the first quarter of 2021. In March 2020, the outbreak of COVID-19 (coronavirus) caused by a novel strain of the virus was recognized as a pandemic by the World Health Organization, and the outbreak has become increasingly widespread in the Unites States, including in each of the areas in which the Company operates. The Company has continued its operations throughout this pandemic and management expects business operations to continue as is for the foreseeable future. The extent to which the outbreak has impacted the Company's operations has not been significant and the Company expects this to remain the case. ### **NOTE 7. NET CAPITAL REQUIREMENTS** The Company is subject to the SEC's Uniform Net Capital Rule ("SEC Rule 15c3-1"), which requires the maintenance of minimum net capital and that the ratio of aggregate indebtedness to net capital, both as defined, not exceed 15 to 1. Net capital and aggregate indebtedness change from day to day. At December 31, 2020, the Company had net capital of \$19,311, which exceeded the Company's minimum net capital requirement of \$5,000 by \$14,311. The Company's percentage of aggregate indebtedness to net capital was 70% at December 31, 2020. #### **NOTE 8. GOING CONCERN** Accounting Standards Update 2014-15 requires that management evaluate conditions or events that might raise substantial doubt about the Company's ability to continue as a going concern. Management has evaluated the Company's conditions and has determined that unless the Company generates revenue or continues to be funded by its members, there is doubt about the Company's ability to continue as a going concern. The Members have pledged additional support to the Company to enable it to operate for the next year should that become necessary. ### **NOTE 9: NEW ACCOUNTING PRONOUNCEMENT** In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments related to ASC Topic 326 ("ASC 326"), requiring the immediate recognition of management's estimates of current expected credit losses. ASC 326 is effective for fiscal years beginning after December 15, 2019 and has been adopted by the Company for fiscal year ended December 31, 2020. The Company currently has no assets on its balance sheet that require measurement of credit losses. As such, the Company has determined that there is no material impact on the Company's financials resulting from the adoption of ASC 326. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.