# ZANBATO SECURITIES LLC X-17A-5 (2018-04-11) — Broker-dealer annual report - Company: ZANBATO SECURITIES LLC - Form: X-17A-5 - Filed: 2018-04-11 - Period: 2017-09-30 - Accession: 0001648813-18-000001 - CIK: 1648813 - File #: 8-69654 - Material weakness: No - Auditor: EisnerAmper LLP - Auditor location: San Francisco, NY - Contact: Gergory L. Wright - Phone: 201-747-6223 - Website: e1sneramper.com - Signed by: Knut Nicolai Sand (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1648813/000164881318000001/zase2017.09SHORTFORMSFC3.pdf --- {0}------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 0MB APPROVAL 0MB Number: 3235-0123 Expires: August 31, 2020 Estimated average burden hours per response ... 12.00 ## I SEC FILE NUMBER I 8-69654 #### **ANNUAL AUDITED REPORT FORM X-17A-5 PART III** #### **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 | __
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MM/DDNY | AND ENDING | 09/30/
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MM/DDNY | |--------------------------------------------------------------------------|--------------------------------------------------------|------------|--------------------------------| | | A. REGISTRANT lDENTl | FICA TION | | | NAME OF BROKER -
DEALER: | | | | | Zanbato Securities LLC | | | OFFICIAL USE ONLY | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | FIRM ID. NO. | | | 711 N. Shoreline Blvd. | | | | Mountain View | (No. and Street)
CA | | 94043 | | (City) | (State) | | (Zip Code) | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT TN REGARD TO THIS REPORT | | | | | Gregory L. Wright | | | (201) 747-6223 | | | | | (Area Code -
Telephone No.) | | | B. ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* | | | | | | Eisner Am per LLP | | | | | (Name - if individual, state last, first, middle name) | | | | One Market Landmark, Suite 620 | San Francisco | CA | 94105 | | (Address) | (City) | (State) | (Zip Code) | | CHECK ONE: | | | | | ~ Certified Public Accountant | | | | | D
Public Accountant | | | | | D
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.* J *7a-5(e)(2).* SEC 1410 (3-91) {1}------------------------------------------------ Statement of Financial Condition Pursuant to Rule 17a-5 under the Securities Exchange Act of 1934 September 30, 2017 {2}------------------------------------------------ #### **This report\*\* contains (check all applicable boxes):** - [x] Independent Auditors' Report. - [x] Facing Page. - [x] Statement of Financial Condition. - [ ] Statement of Operations. - [ ] Statement of Changes in Member's Equity. - [ ] Statement of Cash Flows. - [ ] Statement of Changes in Liabilities Subordinated to Claims of General Creditors (not applicable). - [ ] Computation of Net Capital for Brokers and Dealers Pursuant to Rule **l** 5c3-l under the Securities Exchange Act of 1934. - [ ] Computation for Determination of Reserve Requirements for Brokers and Dealers Pursuant to Rule 15c3-3 under the Securities Exchange Act of 1934. - [ ] Information Relating to the Possession or Control Requirements for Brokers and Dealers Pursuant to Rule **l** 5c3-3 under the Securities Exchange Act of 1934 (not applicable). - [ ] A Reconciliation, including appropriate explanations, of the Computation of Net Capital Pursuant to Rule I 5c3-I (included with item (g)) and the Computation for Determination of Reserve Requirements Under Rule 15c3-3 (included in item (g)). - [ ] A Reconciliation Between the Audited and Unaudited Statements of Financial Condition With Respect to Methods of Consolidation (not applicable). - [x] An Affirmation. - [ ] A copy of the SIPC Supplemental Report. - [ ] A report describing any material inadequacies found to exist or found to have existed since the date of the previous audit (Supplemental Report on Internal Control). - [ ] Report oflndependent Registered Public Accounting Firm regarding Rule 15c3-3 exemption report. - [ ] Management Statement Regarding Compliance with the Exemption Provisions for SEC Rule l 5c3-3 - \*\* *For conditions of confidential treatment of certain portions of this filing, see section 240.17 a-5 (e)(J).* {3}------------------------------------------------ #### AFFIRMATION I, Knut Nicolai Sand, affirm th at, to the best of my knowledge and belief, the accompanying statement of financial condition pertaining to Zanbato Securities LLC at September 30, 2017, is true and correct. I further affirm that neither the Company nor any ·officer or director has any proprietary interest in any account classified solely as that of a customer. Signathrc CEO Title {4}------------------------------------------------ | ACKNOWLEDGMENT | | | | |-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--| | A notary public or other officer completing this
certificate verifies only the Identity of the Individual
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subsaibed to the within instrument and acknowledged to me that he/she/they executed the same In
his/her/their authorized capacity(ies), and that by his/her/1heir signature(s) on the instrument the
person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. | | | | | I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing
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) | | | | {5}------------------------------------------------ | | Page(s) | |------------------------------------------------------------|---------| | Report of Independent Registered Public Accounting Firm 1 | | | Financial Statements | | | Statement of Financial Condition 2 | | | 3-4
Notes to Financial Statement | | {6}------------------------------------------------ ![](_page_6_Picture_0.jpeg) EisnerAmper LLP One Market. Landmark Suite 620 San Francisco. CA 94105 T 415.974.6000 r 415.974.5488 www.e1sneramper.com #### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** The Member of Zanbato Securities, LLC We have audited the accompanying statement of financial condition of Zanbato Securities, LLC (the "Company") as of September 30, 2017. This financial statement is the responsibility of the Company's management. Our responsibility is to express an opinion on this financial statement based on our audit. We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statement. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the statement of financial condition referred to above presents fairly, in all material respects, the financial position of Zanbato Securities, LLC as of September 30, 2017, in conformity with accounting principles generally accepted in the United States of America. San Francisco, California November 22, 2017 {7}------------------------------------------------ ### **Statement of Financial Condition September 30, 2017** | Assets | | |---------------------------------------|---------------| | Cash | \$
843,140 | | Prepaid expense and other assets | 18,456 | | Total assets | \$
861,596 | | Liabilities and Member's Equity | | | Liabilities -
accounts payable | \$
46,073 | | Member's equity | 815,523 | | Total liabilities and member's equity | \$
861,596 | See accompanying notes to the financial statement. {8}------------------------------------------------ ### **Notes to Financial Statement September 30, 2017** #### **1. Organization and Business** Zanbato Securities LLC (the "Company"), is a limited liability company organized under the laws of the state of Delaware. The Company is a subsidiary of Zanbato Inc.(the "Ultimate Parent"). The Company is a broker-dealer registered with the Securities and Exchange Comrnjssion (the "SEC") and is a member of the Financial Industry Regulatory Authority ("FINRA). The Company's operations consist of maintaining an alternative trading system for private placement of securities. It also includes private placement of securities, underwriting or being a selling group participant on a best efforts or firm commitment basis, chaperoning the efforts of foreign broker-dealers related to private placements, investment banking services associated with Mergers and Acquisitions and referral services with third-party broker-dealers. #### **2. Summary of Significant Accounting Policies** #### **Basis of Presentation** This financial statement was prepared in conformity with accounting principles generally accepted in the United States of America ("US GAAP") which 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 statement. Actual results could differ from these estimates. #### **Cash** All cash deposits are held by one financial institution and therefore are subject to the credit risk at that 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. #### **Income Taxes** The Company is a single member limited liability company, and is treated as a disregarded entity for income tax reporting purposes. The Internal Revenue Code ("IRC") provides that any income or loss is passed through to the ultimate beneficial individual member for federal, state and certain local income taxes. Accordingly, the Company has not provided for federal and state income taxes. At September 30, 2017, management has determined that the Company had no uncertain tax positions that would require financial statement recognition. This determination will always be subject to ongoing reevaluation as facts and circumstances may require. #### **3. Transactions with related parties** The Company bas entered into an Expense Sharing Agreement ("ESA") with its Ultimate Parent whereby the Ultimate Parent is to provide office support services, administrative support services, compensation, excluding commissions, payroll taxes and benefits, and general consulting services at no charge to the Company. The ESA has a term of one year and is automatically renewed annually, unless terminated or modified by written notice. The terms of these arrangements may not be the same as those that would otherwise exist or result from agreements and transactions among unrelated parties. {9}------------------------------------------------ #### **Notes to Financial Statement September 30, 2017** #### **4. Regulatory Requirements** The Company is subject to the SEC Uniform Net Capital Rule l 5c3-l under the Securities Exchange Act of 1934, which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to I. At September 30, 2017, the Company had net capital of \$797,067 which exceeded the required net capital by \$697,067. The Company does not handle cash or securities on behalf of customers and therefore it is not impacted by Rule 15c3-3. #### **5. Indemnifications** In the normal course of its business, the Company enters into contracts that contain a variety of representations and warranties that provide indemnifications under certain circumstances. 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 occurred. The Company believes that it is unlikely it will have to make material payments under these arrangements and has not recorded any contingent liability in the financial statements for these indemnifications. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.