# TELEGRAPH HILL BD LLC X-17A-5 (2024-03-27) — Broker-dealer annual report - Company: TELEGRAPH HILL BD LLC - Form: X-17A-5 - Filed: 2024-03-27 - Period: 2023-12-31 - Accession: 0001747613-24-000002 - CIK: 1747613 - File #: 8-70171 - Type: Broker-dealer - Material weakness: No - Auditor: Ernst Wintter & Associates - Auditor location: Walnut Creek, CA - Contact: Elizabeth Collins - Phone: 4152469169 - Email: scott@telehilladvisors.com - Website: telehilladvisors.com - Signed by: Scott Sutherland (Managing Director) Original filing: https://www.sec.gov/Archives/edgar/data/1747613/000174761324000002/telegraph2023public.pdf --- {0}------------------------------------------------ ## TELEGRAPH HILL BD LLC (SEC ID NO. 8-70171) ### ANNUAL AUDIT REPORT ### DECEMBER 31, 2023 ### PUBLIC DOCUMENT Filed Pursuant to Rule 17-A-5(e)(3) as a Public Document {1}------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 OMB APPROVAL OMB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12 ## ANNUAL REPORTS FORM X-17A-5 PART III sec file number 8-70171 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 | 01/01/23
MM/DD/YY | AND ENDING | 12/31/23
MM/DD/YY | | |-------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|------------------------------|-------------------------------------------|--| | | A. REGISTRANT IDENTIFICATION | | | | | NAME OF FIRM: Telegraph Hill BD LLC | | | | | | TYPE OF REGISTRANT (check all applicable boxes):
മ Broker-dealer
□ Check here if respondent is also an OTC derivatives dealer | | _ Security-based swap dealer | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | | 535 Mission Street, 14th Floor | | | | | | | (No. and Street) | | | | | San Francisco | California | | 94105 | | | (City) | (State) | | (Zip Code) | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | Scott Sutherland | (415) 523-0055 | | scott@telehilladvisors.com | | | (Name) | (Area Code - Telephone Number) | | (Email Address) | | | | B. Accountant Identification | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | | | Ernst Wintter & Associates LLP | (Name - if individual, state last, first, and middle name) | | | | | | | | | | | 675 Ygnacio Valley Blvd, Suite A200 | Walnut Creek | California | 94596 | | | (Address) | (City) | (State) | (Zip Code) | | | February 24, 2009 | | | 3438 | | | (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 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. {2}------------------------------------------------ #### OATH OR AFFIRMATION I, Scott Sutherland swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of Telegraph Hill BD LLC , as of December 31, 2023 \_ is true and correct. I further swear (or affirm) that neither the company nor any partner, officer, director, or equivale in the und correct. Thather sweat (or antimit) flat neither the company nor any as that of a customer. Signature Title. CO-FORNDER, MD, 3 CCD See Attached Certificate Notary Public #### This filing \*\* contains (check all applicable boxes): - (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. - O (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. - [1) 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-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. - Cricked on a review of ar er enomant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - CFR 240.100-7, as applicable: [] (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.17-12, 1 as applicable. - as applicable. [] (y) Report describing any material inadequacles found to existed since the date of the previous audit, or (y) Neport describing any all inadequacies exist, under 17 CFR 240.17a-12(k). - O (z) Other: \*\* To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e/(3) or 17 CFR 240.180-7(d)(2), as applicable. {3}------------------------------------------------ # California Acknowledgement A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of Marin On 03~10~2023 before me, Dipu Nepali, Notary Public (insert name and title of the officer) personally appeared Scott Sother land - basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that helshelthey executed the same in his/her/their authorized capacity(ies); and that by his/her/their signature(s) on the instrument the person(s); or the entity upon behalf of which the person(s) acted, executed the instrument. , who proved to me on the I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. | | DIPU NEPALI
Notary Public - California
Marin County
Commission # 2449132
My Comm. Expires Jun 5, 2027 | |-----------------|-------------------------------------------------------------------------------------------------------------------| | ਹੈ
Signature | (Seal) | {4}------------------------------------------------ ### TABLE OF CONTENTS | Report of Independent Registered Public Accounting Firm | | |---------------------------------------------------------|--| | Statement of Financial Condition | | | Notes to the Financial Statement | | {5}------------------------------------------------ 675 Ygnacio Valley Road, Suite A200 Walnut Creek, CA 94596 (925) 933-2626 Fax (925) 944-6333 #### Report of Independent Registered Public Accounting Firm To the Member of Telegraph Hill BD LLC #### Opinion on the Financial Statement We have audited the accompanying statement of financial condition of Telegraph Hill BD LLC (the "Company") as of December 31, 2023, 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 the Company as of December 31, 2023 in conformity with accounting principles generally accepted in the United States of America. #### Basis for Opinion This financial statement is 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 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 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 statement. Our audit also included evaluating the acounting 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. Enst Winter & lissociates ( We have served as the Company's auditor since 2021. Walnut Creek, California March 7, 2024 {6}------------------------------------------------ #### STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2023 #### ASSETS | Cash | ക് | 116,354 | |---------------------|------|---------| | Accounts receivable | | 90,380 | | Prepaid expenses | | 1,800 | | Total assets | မွှန | 208,534 | #### LIABILITIES AND MEMBER'S EQUITY | Liabilities | | | |---------------------------------------|----|---------| | Accounts payable | ನಿ | 2,350 | | Accrued expenses | | 12,926 | | Due to member | | 14,181 | | Total liabilities | | 29,457 | | | | | | Member's equity | | 179,077 | | Total liabilities and member's equity | ಿಕ | 208,534 | The accompanying notes are an integral part of this financial statement. {7}------------------------------------------------ ### NOTES TO THE FINANCIAL STATEMENT DECEMBER 31, 2023 #### 1. The Company Telegraph Hill BD LLC (the "Company") was organized as a California limited liability company on December 18, 2019. The Company is located in San Francisco, California and is owned by its sole member, Telegraph Hill Advisors, LLC ("Member"). As a limited liability company, the liability of Member is limited to the value of the membership interest. The Company is a securities broker dealer and registered with the Securities and Exchange Commission ("SEC") in October 2020 and is a member of the Financial Industry Regulatory Authority ("FINRA"). The Company limits its business activities exclusively to engaging in activities permitted for capital acquisition brokers ("CAB") as defined in FINRA's CAB rules. The Company assists companies in raising capital through the private placement of securities and provides advisory services related to mergers and acquisitions. #### 2. Significant Accounting Policies #### Basis of Accounting The financial statements have been prepared on the accordance with accounting principles generally accepted in the United States of America ("GAAP"). #### Use of Estimates The preparation of financial statements in accordance 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 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 and may have an impact on future periods. #### Fair Value of Financial Instruments Unless otherwise indicated, the fair values of all reported assets and liabilities that represent financial instruments approximate the carrying values of such amounts. The Company has no financial instruments required to be reported at fair value on a recurring basis. #### Cash and Cash Equivalents The Company considers all demand deposits held in banks and certain highly liquid investments with original maturities of three months or less, other than those held for sale in the ordinary course of business, to be cash equivalents. No cash equivalents were held as of December 31, 2023. #### Accounts Receivable Accounts receivable represents amounts that have been earned and billed to clients in accordance with the terms of the Company's engagement letters with respective clients that have not yet been collected. The Company accounts for estimated credit losses on financial assets measured at an amortized cost basis and certain off-balance sheet credit exposures in accordance with FASB ASC 326-20, Financial Instruments - Credit Losser. FASB ASC 326-20 requires the Company to estimate expected credit losses over the life of its financials assets and certain off-balance sheet exposures as of the reporting date based on relevant information about past events, current conditions, and reasonable and supportable forecasts. {8}------------------------------------------------ ### NOTES TO THE FINANCIAL STATEMENT DECEMBER 31, 2023 #### 2. Significant Accounting Policies (continued) #### Accounts Receivable (continued) The Company records the estimate of expected credit losses as an allowance for credit losses. For financial assets measured at an amortized cost basis the allowance for credit losses is reported as a valuation account on the Statement of Financial Condition that is deducted from the asset's amortized cost basis. Per management's analysis, no allowance for credit losses was considered necessary at December 31, 2023. #### Income Taxes The Company is a single member limited liability company and is treated as a disregarded entity for tax purposes. In lieu of income taxes, the Company passes 100% of its taxable income and expenses to the Member. Therefore, no liability for federal or state income taxes is included in this financial statement. All tax returns filed are open to examination by the tax authorities. #### 3. Revenue from Contracts with Customers #### Contract Balances Income is recognized upon completion of the related performance obligation and when an unconditional right to payment exists. The timing of revenue recognition may differ from the timing of customer payments. A receivable is recognized when a performance obligation is met prior to receiving payment by the customer. Receivables related to revenue from contracts with customers totaled \$35,266 and \$90,380 as of January 1, 2023 and December 31, 2023, respectively. Alternatively, fees received or billed prior to the completion of the performance obligation are recorded as deferred revenue on the statement of financial condition until such time when the performance obligation is met. Deferred revenue would primarily relate to retainer fees in investment banking engagements. Deferred revenue was \$0 as of January 1, 2023 and December 31, 2023. #### Contract Costs Direct incremental costs to obtain or fulfill a contract are evaluated under the criteria for capitalization on a contract by contract basis. There were no capitalized contract costs as of December 31, 2023. #### 3. Related Party Transactions The Company has an expense sharing agreement with the Member provides office space and pays most overhead expenses for the Company. The Company has no obligation to reimburse or compensate the Member and is not subject to any lease agreements. Reimbursable expenses associated with investment banking advisory engagements are incurred by the Member. At December 31, 2023, \$14,181 is payable to the Member for such costs. The Company's results of operations and financial position could differ significantly from those that would have been obtained if the entities were autonomous. {9}------------------------------------------------ ### NOTES TO THE FINANCIAL STATEMENT DECEMBER 31, 2023 #### 4. Concentration of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash. The Company maintains cash balances which, at times, may exceed federally insured limits. The Company has not experienced any losses on its cash deposits. As of December 31, 2023, 83% of accounts receivable was due from three clients. #### 5. Net Capital Requirements The Company is subject to the Uniform Net Capital Rule (Rule 15c3-1) under the Securities Exchange Act of 1934, which requires the maintenance of minimum net capital and requires the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. As of December 31, 2023, the Company had net capital of \$86,897 which was \$81,897 in excess of its required capital. #### 7. Subsequent Events The Company's management has evaluated subsequent events through March 7, 2024, the date which the financial statements were issued. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.