# GRAVITAS CAPITAL INTERNATIONAL INC. X-17A-5 (2018-02-28) — Broker-dealer annual report - Company: GRAVITAS CAPITAL INTERNATIONAL INC. - Form: X-17A-5 - Filed: 2018-02-28 - Period: 2017-12-31 - Accession: 0001631661-18-000001 - CIK: 1631661 - File #: 8-69581 - Material weakness: No - Auditor: Lerner & Sipkin, CPAs LLP - Auditor location: New York, NY - Contact: Robert Mitchell - Phone: 416 479 9785 x 1957 - Signed by: Robert Carbonnaro (President/CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1631661/000163166118000001/FS2017GCIIShortPublicB.pdf --- {0}------------------------------------------------ #### GRA VITAS CAPITAL INTERNATIONAL INC. (Formerly Known As P.S. SECURITIES (USA) INC.) DECEMBER 31,2017 STATEMENT OF FINANCIAL CONDITION #### GRAVITAS CAPITAL INTERNATIONAL INC. #### (Formerly Known As P.S. SECURITIES (USA) INC.) Financial Statement December 31, 2017 (With Independent Auditors' Report Thereon Required by Rule 17a-5) {1}------------------------------------------------ UNITEOSTATES SECURITIESANOEXCHANGECOMMISSI ON Washington, D.C. 20549 # **ANNUAL AUDITED REPORT FORM X-17A-5 PART Ill** | Expires: | August 31, 2020 | | | | |----------|---------------------------|--|--|--| | | Estimated average burden | | | | | | hours per response 12.00 | | | | | | | | | | | | SEC FILE NUMBER | | | | 8-69851 OMB APPROVAL OMB Number: 3235-0123 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 BEGINN ING 01/01
/2017
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A. REGISTRANT IDENTIFICATION
NAME oF BROKER-DEALER: Gravitas Capital International Inc. | AND ENDING 12/31/2017 | MM/DD/YY | | |------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--| | | | | | | | | | | | | | OFFICIAL USE ONLY | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | | | | | | | | (No. and Street) | | | | | | | MSH 2R2 | | | (State) | | (Zip Code) | | | | | 4164799785 | | | | | (Area Code - Telephone Number) | | | | | | | | | | | | | | | | | | | | | | | | | | | | New York | NY | 10038 | | | {City) | {State) | (Zip Code} | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Suite1700
Robert Carbonaro | o~~~~t a~r+inu~------------------~c~~-------------------------------------------
NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
B. ACCOUNT ANT IDENTIFICATION
INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report*
(Name - if i11dividual. stale las/. first. middle 11ame)
Accountant not resident in United States or any of its possessions.
FOR OFFICIAL USE ONLY | | *\*Claims .for exemption .from the requirement that the 01111ual report be covered by* 1he *opinion o.f an independent public accountant must be supported by a statement of(acts and circumstances relied on as the basis .for the exemption. See Section 240.17a-5(e}(l)* > 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 OMB control number. {2}------------------------------------------------ #### **OATH OR AFFIRMATION** I, \_ R\_o\_b\_er\_t\_C\_a\_r\_bo\_ na\_r\_o \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ , swear (or affirm) that, to the best of my knowledge a.nd belief the accompanying financial statement and supporting schedules pertaining to the firm of Gravitas Capital International Inc. ------------------------------------------------------------------------------------- 'as | | December ____31, ____ __j 20 17
of ____________________________ | | | 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: | Signature | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | President | | Title | | This report** contains (check all applicable boxes): | | EJ (a) Facing Page.
(b) Stateme nt of Financial Condition.
v | | (c) Statement of Income (Loss). | | (d) Statement of Changes in Financial Condition. | | (e) 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 ofNet Capital. | | (h) Computation for Determination of Reserve Requirements Pursuant to Rule 15c3-3.
(i) lnformaltion Relating to the Possession otr Control Requirements Under Rule 15c3-3. | | 0 (j)
A Reconciliation, including appropriate explanation of the Computation ofNet Capital Under Rule I 5c3-I and the | | Computation for Determination of the Reserve Requirements Under Exhibit A of !Rule I 5c3-3. | | 0 (k) A Reconciliation between the audited and unaudited Statements of Financial Condition with respect to methods of
consolidation. | | (I) An Oath or Affirmation. | | (m) A copy of the Sl PC Supplemental Report. | | (n) A report describing any material inadequacies found to exist or found to have existed since the date ofthe previous audit.
~ | *\*\*For conditions of confidential treatment of certain portions of this .filing, see section 240./7a-5(e){3).* {3}------------------------------------------------ ### GRA VITAS CAPITAL INTERNATIONAL INC. (Formerly Known As P.S. SECURITIES (USA) INC.) DECEMBER 31,2017 STATEMENT OF FINANCIAL CONDITION #### ASSETS | Cash | \$
28,735 | |-------------------------------------------------------------------------------------|--------------| | Other Assets | 4,200 | | TOTAL ASSETS | \$
32,935 | | LIABILITIES AND STOCKHOLDER'S EQUITY | | | Liabilities | | | Accounts payable and accrued expenses | \$
19,258 | | Total Liabilities | 19,258 | | Equity | | | Capital Stock, without par value, 200 authorized,
1 share issued and outstanding | 1,250 | | Additional paid in capital | 373,405 | | Accumulated deficit | {360,978} | | Total Equity | 13,677 | | TOTAL LIABILITIES AND EQUITY | \$
32,935 | The accompanying notes are an integral part of this audited financial statements. {4}------------------------------------------------ ## GRAVITAS CAPITAL INTERNATIONAL INC. (Formerly Known As P.S. SECURITIES (USA) INC.) #### NOTE 1 - ORGANIZATION AND NATURE OF BUSINESS GRA VITAS CAPITAL INTERNATIONAL INC. ("we", "our" and the "Company") was incorporated on March 15, 2013 in New York State as a subsidiary of 2242257 Ontario Inc. which is the sole stockholder of the company. The Company is dependent upon its Stockholder. The Company is a member of the Financial Industry Regulatory Authority ("FINRA") and conducts a securities business generally limited to private placements of securities. The company commenced operations after receiving FINRA approval on August 6, 2015. The Company changed its name from P.S. Securities (USA) Inc. to Gravitas Capital International Inc. in May of 2017. #### NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES #### Cash and Cash Equivalents All short-term investments with an original maturity of three months or less are considered to be cash equivalents. #### Revenue Recognition Securities transactions and related income and expenses are recorded on a trade date basis. Commission revenues are recorded on a settlement date basis. ## Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires the Company's 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 revenue and expenses during the reporting period. Actual results could differ from those estimates. #### Concentration of Credit Risk The Company is engaged in various investment and brokerage act1v1ties in which counterparties primarily include broker-dealers, banks, and other financial institutions. In the event counterparties do not fulfill their obligations, the Company may be exposed to risk. The risk of default depends on the creditworthiness of the counterparty or issuer of the instrument. It is the Company's policy to review, as necessary, the credit standing of each counterparty. {5}------------------------------------------------ #### GRAVITAS CAPITAL INTERNATIONAL INC. (Formerly Known As P.S. SECURITIES (USA) INC.) ## NOTE 2- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (continued) #### Income Taxes The Company accounts for income taxes in accordance with the US Generally Accepted Accounting Principles which requires the asset and liability approach for financial accounting and reporting for income taxes and allows recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will expire before the Company is able to realize their benefits. #### Related Party Transactions The stockholder, 2242257 Ontario Inc. pays office and administrative expenses including accounting, rent, telephone and secretarial fees and allocates a portion of the expense to the Company. The Company is dependent upon the stockholder for continued financial support. #### NOTE 3 - NET CAPITAL REQUIREMENTS As a registered broker-dealer and member of FINRA, the Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule 15c3-l. This rule requires that the ratio of aggregate indebtedness to net capital may not exceed 15 to 1, and equity capital may not be withdrawn or cash dividends paid if the resulting net capital ratio would exceed 10 to 1. At December 31, 2017, the Company's net capital was \$9,477 which was \$4,477 in excess of its required net capital of \$5,000. The Company's debt-equity ratio was 2.0321 to 1. #### NOTE 4 - GOING CONCERN The accompanying statements have been prepared assuming the Company will continue as a going concern. The Company bad minimal revenues in 2017 and a loss from operations. This raises substantial doubt about the Company's ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty. However, the parent company has pledged any required additional support to the Company to enable it to continue as a going concern and maintain required regulatory minimum net capitaL {6}------------------------------------------------ #### GRAVITAS CAPITAL INTERNATIONAL INC. (Formerly Known As P.S. SECURITIES (USA) INC.) #### NOTE 5 - RELATED PARTY TRANSACTIONS The Company has an expense sharing agreement with its stockholder. The stockholder provides administrative and other services to the company. During the fiscal year ended December 31, 2017, the stockholder allocated to the Company \$250 per month for office space and administrative support. #### NOTE 6 - INCOME TAXES For income tax purposes, the company operates as a "C" corporation. ASC 740-10 requires a valuation allowance to be recorded when it is more likely than not that some or all of the deferred tax assets will not be realized. At December 31 , 2017, the Company bas available a net operating loss carryforward of approximately \$361,000 which will expire in the year 2037. A valuation allowance of \$126,000 was established to offset the deferred tax asset arising from this carryforward. Therefore, no deferred tax assets have been recorded on the accompanying statement of financial condition. #### NOTE 7 - SUBSEQUENT EVENTS The Company has evaluated subsequent events through January 29, 2018, the date that these financial statements were issued. The Company believes that there are no subsequent events requiring further disclosure. NOTE 8- SIPC Reconciliation Requirement SEA Rule 17a-5(e)(4) requires a registered broker-dealer to file a supplemental report which includes procedures related to broker-dealers SIPC annual general assessment reconciliation or exclusion from membership forms. In circumstances where the brokerdealer reports \$500,000 or less in gross revenue they are not required to file supplemental SIPC report. The Company is exempt from filing the supplemental report under SEA Rule 17a-5( e)( 4) because it is reporting less than \$500,000 in gross revenue. {7}------------------------------------------------ ![](_page_7_Picture_0.jpeg) 132 Nassau Street New York. NY 10038 Tel 212.571.0064 I Fax 212.571.0074 Joy Lerner. C.P.A. Jlcrncr@lerncrslpkill.COm Joseph G. Sipkin. C.P.A. Jslpkln®lcrncrslpkin.com .- #### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Stockholders of Gravitas Capital International ln·c. Bay-Adelaide Centre 333 Bay Street, Suite 1700 Toronto, Ontario MSH 2R2 Canada #### Opinion on the Financial Statement We have audited the accompanying statement of financial condition of Gravitas Capital International Inc. as of December 31, 2017, 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 Gravitas Capital International Inc. as of December 31, 20 17 in conformity with accounting principles generally accepted in the United States of America. #### Basis for Opinion The financial statement is the responsibility of Gravitas Capital International lnc. 's management. Our responsibility is to express an opinion on Gravitas Capital International Inc.'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 Gravitas Capital International Inc. in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and E>;change Commission and the PCAOB. We conducted our audit in accordance with the standards ofPCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the fmancia l 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 opm10n. k..J{ *:' .4;)(./A'(* (.()/<, '-u Lerner & Sipkin CPAs, LLP Certified Pulblic Accountants (NY) We have served as Gravitas Capital International Inc.'s auditor since 2015. New York, NY January 29, 2018 Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.