# D12 CAPITAL MARKETS INC. X-17A-5 (2023-03-31) — Broker-dealer annual report - Company: D12 CAPITAL MARKETS INC. - Form: X-17A-5 - Filed: 2023-03-31 - Period: 2022-12-31 - Accession: 0001631661-23-000001 - CIK: 1631661 - File #: 8-69581 - Type: Broker-dealer - Material weakness: No - Auditor: WWC.PC - Auditor location: New York, NY - Contact: Robert J Mitchell - Phone: 516 747 1957 - Email: rcarbonaro@d12capital.com - Website: d12capital.com - Signed by: Robert Carbonaro (Chief Execitive Officer) Original filing: https://www.sec.gov/Archives/edgar/data/1631661/000163166123000001/d12pub2022finanlstnt2.pdf --- {0}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** OMB APPROVAL OMB Number: ϯϮϯϱͲϬϭϮϯ Expires: KĐƚ͘ϯϭ͕ϮϬϮϯ Estimated average burden hours per response: > SEC FILE NUMBER 8-69851 # **ANNUAL REPORTS FORM X-17A-5 PART III** **FACING PAGE** **Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934** FILING FOR THE PERIOD BEGINNING \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ AND ENDING \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ MM/DD/YY MM/DD/YY 01/01/2022 12/31/2022 **A. REGISTRANT IDENTIFICATION** #### NAME OF FIRM: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ D12 Capital Markets Inc TYPE OF REGISTRANT (check all applicable boxes): ܆ Broker-dealer ܆ Security-based swap dealer ܆ Major security-based swap participant ܆ Check here if respondent is also an OTC derivatives dealer ■ ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) #### \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 5 Revere Place | | (No. and Street) | | | | | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------|--------------------------------------------|--|--| | Etobicoke | | Ontario Canada
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_____________________________________________________________________________________ | | | | | (City) | (State) | | (Zip Code) | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | Robert Carbonaro | 416 301 0960 | RCarbonaro@D12Capital.com
_____________________________________________________________________________________ | | | | | (Name) | (Area Code – Telephone Number) | | (Email Address) | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
WWC, P.C.
_____________________________________________________________________________________ | (Name – if individual, state last, first, and middle name) | | | | | | 619 Third Ave, Ste. 19B
_____________________________________________________________________________________ | New York | NY | 10017 | | | | (Address) | (City) | (State) | (Zip Code) | | | | 1171 | | 03/12/2004
_____________________________________________________________________________________ | | | | | (Date of Registration with PCAOB)(if applicable) | | | (PCAOB Registration Number, if applicable) | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | | \* Claims for exemption from the requirement that the annual reports be covered by the reports of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-5(e)(1)(ii), if applicable. **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.** {1}------------------------------------------------ #### **OATH OR AFFIRMATION** | Robert Carbonaro | | I, ___________________________________________, swear (or affirm) that, to the best of my knowledge and belief, the | |------------------|-------------------------|---------------------------------------------------------------------------------------------------------------------| | | D12 Capital Markets Inc | financial report pertaining to the firm of ____________________________________________________________, as of | \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, 2\_\_\_\_\_, is true and correct. I further swear (or affirm) that neither the company nor any partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely as that of a customer. 12/31 ⁰²² Signature: Title: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Chief Executive Officer \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Notary Public #### **This filing\*\* contains (check all applicable boxes):** ܆) a) Statement of financial condition. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ - ܆) b) Notes to consolidated statement of financial condition. - ܆) 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). - ܆) d) Statement of cash flows. - ܆) e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - ܆) f) Statement of changes in liabilities subordinated to claims of creditors. - ܆) g) Notes to consolidated financial statements. - ܆) h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. - ܆) i) Computation of tangible net worth under 17 CFR 240.18a-2. - ܆) j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - ܆) k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable. - ܆) l) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. - ܆) m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - ܆) n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable. - ܆) o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist. - ܆) p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - ܆) q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable. - ܆) r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - ܆) s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - ܆) t) Independent public accountant's report based on an examination of the statement of financial condition. - ܆) u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - ܆) v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - ܆) w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - ܆) x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-1e or 17 CFR 240.17a-12, as applicable. - ܆) y) Report describing any material inadequacies found to exist or found to have existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). - ܆) z) Other: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ - *\*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e)(3) or 17 CFR 240.18a-7(d)(2), as applicable.* {2}------------------------------------------------ #### OATH OR AFFIRMATION I, Robert Carbonaro Notary Public \_ swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of D12 Capital Markets Inc as of , 2022\_\_\_\_ is true and correct. I further swear (or affirm) that neither the company nor any 12/31 Partner, officer, director, or equivalent person, as the case may be arrim) that neither the company nor any as that of a customer as that of a customer. Signature: Title: Chief Executive Officer This filing \*\* contains (check all applicable boxes): U - (a) Statement of financial condition. - (b) Notes to consolidated statement of financial condition. - O (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). - O (d) Statement of cash flows. - [ (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - □ (f) Statement of changes in liabilities subordinated to claims of creditors. - [ (g) Notes to consolidated financial statements. - [ (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. - [ (i) Computation of tangible net worth under 17 CFR 240.18a-2. - | [j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - | (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable. - [ (I) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. - [ (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - [ (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable. - [0] Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-2, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist. - [ (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - □ (q) Oath or affirmation in accordance with 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable. - [r] Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - @ (t) Independent public accountant's report based on an examination of the statement of financial condition. - □ (u) Independent public accountant's report based on an examination of the financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - □ {v} Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - □ (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - [x] Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.17a-12, as applicable. - a (y) Report describing any material inadequacies found to exist or found to have existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). - [ (z) Other: \*\* To request confidential treatment of certain portions of this filing, see 17 CFR 240.170-5(e)(3) or 17 CFR 240.180-7(d)(2), as applicable. {3}------------------------------------------------ # D12 Capital Markets Statement of Financial Condition December 31, 2022 | ASSIETS | | | |-------------------------------------------------------------------------------------|---|-----------| | Cash | S | 15,469 | | TOTAL ASSETS | S | 15,469 | | LIABILITIES AND STOCKHOLDER'S EQUITY | | | | Liabilities | | | | Accounts payable and accrued expenses | S | 8,119 | | Total Liabilities | | 8,119 | | Equity | | | | Capital Stock, without par value, 200 authorized,
1 share issued and outstanding | | 1,250 | | Additional paid in capital | | 627,145 | | Accumulated deficit | | (621,045) | | Total Equity | | 7,350 | The accompanying notes are an integral part of this financial statement. {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) #### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Shareholders of D12 Capital, Inc f/k/a Gravitas Capital International, Inc #### Opinion on the Financial Statements We have audited the accompanying statement of financial condition of D12 Capital International, Inc as of December 31, 2022, and the related notes and supplemental schedively referred to as the "financial statements"). In our opinion, the financial statements prespects, the financial position of D12 Capital, Inc f/k/a Gravitas Capital International, Inc as of December 31, 2022, in conformity with accounting principles generally accepted in the United States of America. #### Basis for Opinion These financial statements are the responsibility of D12 Capital International, Inc's management. Our responsibility is to express an opinion on D12 Capital International, International, Inc'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 D12 Capital International, Inc in accordance with the U.S. federal securities laws 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 misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatements, 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. WWC,P.C WWC, P.C. Certified Public Accountants PCAOB ID No. 1171 We have served as D12 Capital, Inc f/k/a Gravitas Capital International, Inc's auditor since 2022. San Mateo, CA March 30, 2023 {5}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{6}------------------------------------------------ # **'&\$3,7\$/0\$5.(76,1& 127(672),1\$1&,\$/67\$7(0(176 )257+(<(\$5(1'(''(&(0%(5** # 127(6800\$5<2)6,\*1,),&\$17\$&&2817,1\*32/,&,(6±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{7}------------------------------------------------ ## D 12 CAPITAL MARKETS INC. NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2022 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 # NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (continued) 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 stockholders, pay office and administrative expenses including accounting, rent, telephone and secretarial fees as capital contributions to the Company. The Company is dependent upon the stockholders for continued financial support. See Note 5 # 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 15c3-1. 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, 2022, the Company's net capital was \$7,350 which was \$2,350 in excess of its required net capital of \$5,000. The Company's debt-equity ratio was 1.1046 to 1. # NOTE 4-GOING CONCERN The accompanying statements have been prepared assuming the Company will continue as a going concern. The Company had minimal revenues in 2022 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 owners have pledged to provide any required additional support to the Company to enable it to continue as a going concern and maintain required regulatory minimum net capital. {8}------------------------------------------------ ## **'&\$3,7\$/0\$5.(76,1& 127(672),1\$1&,\$/67\$7(0(176 )257+(<(\$5(1'(''(&(0%(5** ## 127(±5(/\$7('3\$57<75\$16\$&7,216 7KH&RPSDQ\ KDGDQH[SHQVH VKDULQJDJUHHPHQWZLWKLWV VWRFNKROGHU7KH VWRFNKROGHU SURYLGHVDGPLQLVWUDWLYHDQGRWKHUVHUYLFHVWRWKHFRPSDQ\7KHFXUUHQWRZQHUVSURYLGHRQH KXQGUHGSHUFHQWRIDOOH[SHQVHVWRVXSSRUWWKHFRPSDQ\,QWKHFXUUHQWRZQHUVKDYH QRWQHHGHGWRFRQWULEXWHFDSLWDOQRUSD\DQ\H[SHQVHV # 127(±,1&20(7\$;(6 )RULQFRPHWD[SXUSRVHVWKHFRPSDQ\RSHUDWHVDVD³&´FRUSRUDWLRQ\$6&UHTXLUHV DYDOXDWLRQDOORZDQFHWREHUHFRUGHGZKHQLWLVPRUHOLNHO\WKDQQRWWKDWVRPHRUDOORIWKH GHIHUUHGWD[DVVHWVZLOOQRWEHUHDOL]HG\$W'HFHPEHUWKH&RPSDQ\KDVDYDLODEOH DQHWRSHUDWLQJORVVFDUU\IRUZDUGRIDSSUR[LPDWHO\ZKLFKZLOOH[SLUHLQWKH\HDU \$YDOXDWLRQDOORZDQFHRIZDVHVWDEOLVKHGWRRIIVHWWKHGHIHUUHGWD[DVVHW DULVLQJIURPWKLVFDUU\IRUZDUG7KHUHIRUHQRGHIHUUHGWD[DVVHWVKDYHEHHQUHFRUGHGRQWKH DFFRPSDQ\LQJVWDWHPHQWRIILQDQFLDOFRQGLWLRQ #### 127(±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{9}------------------------------------------------ #### D 12 CAPITAL MARKETS INC. NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2022 #### NOTE 9-ALLOWANCE FOR CREDIT LOSSES The Allowance for Credit Losses Effective January 1, 2021, The Company adopted 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 could determine there are no expected credit losses in certain circumstances (e.g., based on the credit quality of the client). The Company identified fees and other receivables (including, but not limited to, receivables related to securities transactions, and advisory fees) as impacted by the new guidance. ASC 326 specifies that the Company adopt the new guidance prospectively by means of a cumulative-effect adjustment to the opening member's equity as of December 31, 2019. Accordingly, the Company recognized no adjustment upon adoption. The allowance for credit losses is based on the Company's expectation of the collectability of financial instruments, including fees and other receivables utilizing the CECL framework. The Company considers factors such as historical experience, credit quality, age of balances and current and future economic conditions that may affect the Company's expectation of collectability in determining the allowance for credit losses. The Company's expectation is that the credit risk associated with the fees and other receivables is not significant accordingly, the Company has not provided an allowance for credit losses at December 31, 2022. #### NOTE 10 - EFFECTS OF CORONA VIRUS A coronavirus (COVID-19) was first reported in China. In January 2021, the World Health Organization declared it a Public Health Emergency of International Concern. This contagious disease outbreak, which has continued to spread to additional countries, and any related adverse public health developments, could adversely affect the Company's customers, service providers and suppliers as a result of quarantines, facility closures, and travel and logistics restrictions in connection with the outbreak. More broadly, the outbreak could affect workforces, economies and financial markets globally, potentially leading to an economic downturn. The ultimate impact of COVID-19 is uncertain. Management continues to monitor the outbreak, however, as of the date of these financial statements the {10}------------------------------------------------ ## D 12 CAPITAL MARKETS INC. NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2022 potential impact of such on the Company's business and operations cannot be reasonably estimated. As a foreign entity, the company did not benefit from any provisions of the CARES Act Enacted by the US congress. {11}------------------------------------------------ # **D 12 CAPITAL MARKETS INC. NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31 , 2022** # SEC Rule 15c3-3(k) Exemption Report For year ending December 31 , 2022 D 12 CAPITAL MARKETS INC., (the "Company") is a registered broker-dealer subject to rule 17a-5 promulgated by the Securities and Exchange Commission (17 C.F.R. §240.1 7a-5, 11Reports to be made by certain brokers and dealer"). Thjs Exemption Report was prepared as required by 17 C.F.R. §240. 17a-5(d)(l) and (4). To the best of its knowledge and belief, the Company states the following: - 1. The Company is not subject to 17 C.F.R. §240.15c3-3 due to the limited nature of its business. - 2. The Company did not handle any customer cash or securities during the year ended December 31, 2022 and does not have any customer accounts - 3. The company is exempt under the provisions of 17 C.F.R. §240.15c3-3 SEC Footnote 74 because it is a private placement agent that effect securities transactions on a best efforts or subscription basis (not on a firm commitment basis) and doesn't receive or hold customer funds or securities. I, Robert Carbonaro, Chie~ Execu ive p rficer, swear (or affirm) that, to my best knowledge and belief, this exemption r~r{ rt true and correct. . '"--/~ L ~ ~·· Signature: *tC.....* 0 G.-, t\_., \.....~ Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.