# FARVAHAR CAPITAL LLC X-17A-5/A (2021-05-27) — Broker-dealer annual report - Company: FARVAHAR CAPITAL LLC - Form: X-17A-5/A - Filed: 2021-05-27 - Period: 2020-12-31 - Accession: 0001656046-21-000014 - CIK: 1656046 - File #: 8-69692 - Material weakness: No - Auditor: Raich Ende Malter & Co LLP - Auditor location: New York, NY - Contact: John Clarke Gray - Phone: 9172381263 - Signed by: John Clarke Gray (CFO) Original filing: https://www.sec.gov/Archives/edgar/data/1656046/000165604621000014/favsofc1.pdf --- {0}------------------------------------------------ UNITEDSTA~ SECURITIESANDEXCHANGECOMMISSION Washington, D.C. 20549 PUBLIC # ANNUAL AUDITED REPORT FORM X-17A-5 **PART** Ill 0MB APPROVAL 0MB Number: 3235-0123 Expires: October 31, 2023 Estimated average burden hours per response •••••• 12.00 | SEC FILE NUMBER | | |-----------------|--| | &-69692 | | **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 | O 1/01/2020 | AND ENDING | 12/31/2020 | | | |--------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------|------------|--------------|------------------------------------|--| | | MM/DDNY | | MM/DDNY | | | | | A. REGISTRANT IDENTIFICATION | | | | | | NAME oF BROKER-DEALER: Farvahar Capital LLC
ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | | OFFICIAL USE ONLY
FIRM I.D. NO. | | | | | | | | | | 590 Madison Ave, 21st Floor | | | | | | | | (No. and Street) | | | | | | New York | N.Y. | | 10022 | | | | (City) | (State) | | (Zip Code) | | | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO TIIlS REPORT
J. Clarke Gray | | | 917-238-1263 | | | | | | | | (Area Code - Telephone Number) | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | INDEPENDENT PUBLIC ACCOUNT ANT whose opinion is contained in this Report*
Raich Ende Malter & Co. LLP | (Name - if individual, state last, first, middle name) | | | | | | 1375 Broadway | New York | N.Y. | | 10018 | | | (Address) | (City) | (State) | | (Zip Code) | | | CHECK ONE:
f ✓ ( Certified Public Accountant
B
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/or 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 valld 0MB control number. SEC 1410 (11-05) {1}------------------------------------------------ #### **OATH OR AFFIRMATION** | I, J. Clarke Gray | • swear (or affinn) that. to the best of | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------| | my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the tinn of
Farvahar capital LLC | ---------------------------------------, | | of December 31 | as
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: | | | | | | | | | n,OTARY PUBLIC-STATE OF NEW VOAK
No.02TA6125117 | | | Qualified lo New York County | | | ~V Commission Expires 12-15-2021 | | | | Title | | __
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report•• contains (check all applicable boxes):
(a) Facing Page.
(b) Statement of Financial Condition.
of Comprehensive Income (as defined in §210.1-02 of Regulation S-X).
§ (d) Statement of Changes in Financial Condition. | D (c) Statement of Income (Loss) or, if there is other comprehensive income in the period(s) presented. a Statement | | (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 of Net Capital.
(h) Computation for Determination of Reserve Requirements Pursuant to Rule I ScJ-3. | | | (i) lnfonnation Relating to the Possession or Control Requirements Under Rule I 5c3-3. | D (i) A Reconciliation, including appropriate explanation of the Computation ofNet Capital Under Rule I 5c3-1 and the | | Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3. | | | g
consolidation. | 0 (k) A Reconciliation between the audited and unaudited Statements of Financial Condition with respect to methods of | | (I) An Oath or Affinnation. | | | (m) A copy of the SIPC Supplemental Report. | | | | (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 140. I 7a-S(e)(3). | | {2}------------------------------------------------ #### FARV ABAR CAPITAL LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2020 (Filed Pursuant to Rule 17a-5 Under the Securities Exchange Act of 1934) PUBLIC DOCUMENT {3}------------------------------------------------ # **FARV AHAR CAPITAL LLC CONTENTS** | Report of Independent Registered Public Accounting Firm | | |---------------------------------------------------------|-----| | | | | FINANCIAL STATEMENT | | | Statement of Financial Condition | 2 | | Notes to Financial Statement | 3-6 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) 1375 Broadway, 15th Floor New York. New Yor k 10018 212.?44. 4433 212.944.5404 t lax) cpa@rem-,J l!l.lnd & New J«:,y #### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Member of Farvahar Capital LLC New York, New York #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Farvahar Capital LLC as of December 31 , 2020, and the related notes (collectively referred to as the "financial statement"). In our opinion, the financial statement presents fairly, in all material respects, the financial position of Farvahar Capital LLC as of December 31 , 2020 in conformity with accounting principles generally accepted in the United States of America. #### **Basis for Opinion** This financial statement is the responsibility of Farvahar Capital LLC's management. Our responsibility is to express an opinion on Farvahar Capital LLC'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 Farvahar Capital LLC 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 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 statement. We believe that our audit provides a reasonable basis for our opinion. **RAICH ENDE MALTER** & **CO. LLP** We have served as Farvahar Capital LLC's, formerly known as ClaritySpring Securities LLC, auditor since 2016. New York, New York March 12, 2021 ![](_page_4_Picture_13.jpeg) */ndcpl·tulcnt* ,trcmml/11.\$ | | TOTAL ASSETS | 2,293,756
\$ | | LIABILITIES AND MEMBER'S EQUITY: | | | LIABILITIES: | | | Accounts payable and accrued expenses | 13,571
\$ | | Payable to parent | 5,000 | | TOTAL LIABILITIES | 18,571 | | Member's Equity | 2,275,185 | | TOTAL LIABILITIES AND MEMBER'S EQUITY | \$2,293,756 | See notes to financial statement. {6}------------------------------------------------ ## **FARVAHAR CAPITAL LLC Notes to Financial Statement December 31, 2020** # Note t - Nature of Business and Summary of Significant Accounting Policies ## **Nature of Business:** Omeed Malik Advisors LLC acquired a broker dealer that was originally organized on August 11, 2015 as a Delaware LLC. The acquired broker dealer was renamed to Farvahar Capital LLC (the "Company") on January 10, 2019 with the sole member as Omeed Malik Advisors LLC (the "Parent"). It commenced operations as a broker/dealer on February 18, 2017, the date it was approved as a broker/dealer and registered with the Securities and Exchange Commission ("SEC''). The Company is a member of FINRA and the Securities Investor Protection Corporation ("SIPC"). The Company advises its customers in raising capital through its distribution channels and commercial operations. The Company does not hold customer funds or securities and accordingly, is not subject to the provisions of Rule.15c3-3. Under these conditions the Computation for Determination of Reserve Requirements and Information Relating to the Possession and Control Requirements are not required. #### **Significant Accounting Policies:** ## Basis of Presentation The accompanying financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP"). ## Use of Estimates The preparation of financial statements in conformity with US G AAP requires management to make estimates and assumptions that affect the reported amounts of the 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. #### Cash and Cash Eguivalents The Company has defined cash equivalents as highly liquid investments with original maturities of 90 days or less at the time of purchase. The Company did not have any cash equivalents at December 31, 2020. {7}------------------------------------------------ #### **FARV ABAR CAPITAL LLC Notes** to **Financial Statement December 31, 2020** # **Note 1** - **Nature of Business and Summary of Significant Accounting Policieslcontinued)** ## Credit Risk The Company's cash is placed with a highly rated financial institution and the Company conducts ongoing evaluations of the credit worthiness of the financial institution with which it does business. At certain times cash balances in the bank account may exceed federally insured limits of \$250,000 of the Federal Deposit Insurance Corporation. At December 31, 2020 the Company exceeded federally insured limits by \$2,043,756. #### Credit Losses Effective January 1, 2020, 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 has the ability to determine that there are no expected credit losses in certain circumstances (e.g., based on the credit quality of the customer). The Company identified fees receivables 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 January 1, 2020. According, the Company recognized no adjustment upon adoption. The Company did not have any accounts receivable at December 31, 2020. #### **Note 2** - **Net Capital Requirements** The Company is registered with the SEC. The Company does not carry customer accounts and does not accept customer funds or securities. The Company is subject to the SEC Uniform Net Capital Rule (SEC Rule 15c3-1 ), which requires the maintenance of a minimum amount of net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. At December 31, 2020, the Company had net capital of \$2,275,185, which was \$2,270,185 in excess ofits net capital requirement of \$5,000. The percentage of aggregate indebtedness to net capital is 0.82%. #### **Note3** - Income Taxes The Company is a single-member limited liability company. The Company is considered to be a disregarded entity for tax reporting purposes and is not subject to federal and state income taxes and does not file income tax returns in any jurisdiction. All items of taxable income or expense are reported on the member's tax return. The Company may be subject to New York City Unincorporated Business Tax (''NYCUBT'') however, the member of {8}------------------------------------------------ ## **FARV AHAR CAPITAL LLC Notes** to **Financial Statement December 31, 2020** # Note 3 - **Income Taxesfeontinuedl** the Parent also reports any income derived from New York City source income that may be subject to NYCUBT on his personal tax return. The Company applies the provisions of ASC 740 "Income Taxes" as they relate to uncertain tax positions. The Company was not required to recognize any amounts from uncertain tax positions as of December 31, 2020. The Company's conclusions regarding uncertain tax positions may be subject to review and adjustment at a later date based upon ongoing analyses of tax laws, regulations and interpretations thereof as well as other factors. In the event that tax authorities assess interest and penalties on unrecognized tax benefits, the Company will reflect such amounts in tax expense and income taxes payable. # Note 4 - Related Party Transactions The Company has entered into an expense sharing agreement (the "Agreement") with its Parent as of January 10, 2019 whereby certain expenses related to the business of the Company will be borne by the Parent as follows: rent, telephone, and travel. All other expenses related to the business will be borne by the Company. The Agreement shall be terminated upon the cessation of the Company's commercial operations. In accordance with the Agreement, the Company does not have an obligation, direct or indirect, to reimburse or otherwise compensate the Parent for any or all costs that the Parent has paid on behalf of the Company. There is \$5,000 payable to the Parent as of December 31, 2020. ## Note s - Commitments and **Contingencies** In the normal course of its operations, the Company enters into contracts and agreements that contain indemnifications and warranties. 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 yet occurred. However, the Company has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote. ### **Note 6** - **COVID-19** The World Health Organization characterized the outbreak of the novel coronavirus ("COVID-19") as a global pandemic on March 11, 2020. COVID-19 continues to adversely impact global and domestic commercial activity and has contributed to significant volatility in financial markets. {9}------------------------------------------------ ## **FARV ABAR CAPITAL LLC Notes to Financial Statement December 31, 2020** ## **Note 6** - **COVID-19(continued)** The Company's business operations and revenue sources have not been significantly impacted by COVID-19. However, if the financial markets and/or the overall economy are impacted for an extended period, the Company's future financial results may be materially adversely affected. ## Note 7 - **Subsequent Events** Management has evaluated the Company's events and transactions that occurred subsequent to December 31, 2020, through March 12, 2021, the date the financial statements were available to be issued. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.