# I5EQUITY X-17A-5/A (2021-04-20) — Broker-dealer annual report - Company: I5EQUITY - Form: X-17A-5/A - Filed: 2021-04-20 - Period: 2020-12-31 - Accession: 0001753567-21-000003 - CIK: 1753567 - File #: 8-70216 - Material weakness: No - Auditor: WWC, P.C. Certified Public Accountants - Auditor location: San Mateo, CA - Contact: Kathy Efrem - Phone: 212-897-1686 - Website: notaryclasses.com - Signed by: Giovanni Soleti (CEO/CCO) Original filing: https://www.sec.gov/Archives/edgar/data/1753567/000175356721000003/i5e20s2.pdf --- {0}------------------------------------------------ # STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2020 {1}------------------------------------------------ UNITED STATES SF.cURITIF.S AND EXCHANGE COMMISSION Washington, D.C. 2054·9 # **ANNUAL AUDITED REPORT FORM X-17 A-5 PART Ill** | | | 01\6 APFROVAL | | |---------------|--|---------------------------|--| | 01\6 ~ rrber: | | 3235-0123 | | | | | Expires: October 31, 2023 | | | | | Estimated average burden | | | | | hours per response 12.00 | | | | | SEC FILE NUl\6ER | | | 8 • | 70216 | | |-----|-------|--| # **FACING PAGE** # **lnfonnation Required of Brokers and Dealers Pursuant** to **Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder** | R.EPORTFORTHEPERJODBEGINNING | -----------
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12/31/2020 | |-----------------------------------------------------------------------------|--------------------------------------------------------|------------|-----------------------------| | | MM/DD /YY | | MM/DD/YY | | | A. REGISTRANT IDENTIFICATION | | | | NAME OF BROKER-DEALER: | | | | | | | | OFFICIA.L USE ONLY | | IS EQUITY LLC | | | FIRM ID. t-0. | | ADDRESS OFPRJNCIPALPIACEOF BUSINESS: (Do not use P.O. Box No.) | | | | | 612 SANTA FLORITA A VE | | | | | | | | | | MILLBRAE | CA | | 94030 | | (City) | (~ate) | | (Zip Code) | | NAME A ND TELEPHONE NUMBER OF PERSON TO CONT A CT IN REGA RD TO THIS REPORT | | | | | Kathy Efrem | | | 212-897-1686 | | | | | (Area Code --Telephone No.) | | | B. ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNT ANT whose opinion is contained in this Report* | | | | | WWC, P.C. Certified Public Accountants | | | | | | (Name -- !f individual, slate las1,firs1, middle name) | | | | 2010 Pioneer Court | San Mateo | CA | 94403 | | (Address) | (City) | (State) | (Zip Code) | | CHFCKONE: | | | | | Qg Ce1tified Public Accountant | | | | | D
Public Accou!litant | | | | | D Accountant not resident in United States or any of its possessions | | | | | | FOR OFFICIAL USE ONLY | | | | | | | | *\*Claims for exemption ji-om the requirement that /he annual reporl be covered by !he opinion of an independenl public accountant must be supported by a stalement of facts and circums/ances relied on as 1he basis for the exemption. See section 240.17 a-5 (e)(2).* SEC 141 0 (06-02) *Potential persons who are to respond to the collection of information contained in this form are not required to respond unless the [omt displays a currently valid 0MB control number.* {2}------------------------------------------------ ### **AFFIRMATION** I, Giovanni Soleti, affirm that, to the best of my knowledge and belief, the accompanying financial statements and supplemental schedules pertaining to ISEQUITY, LLC for year ended December 31, 2020, are true and correct. I further affirm that neither the Company nor any officer or director has any proprietary inte.rest in any account classified solely as that of a customer. CEO/CCO -j Title PLEASE SEE **AIT,\CflED** ACKNO\\'LEDGEMENT/JllRAT FlW.\1 !\'(Jf~\I'\' :•UIJLIC Notary Public {3}------------------------------------------------ # **CALIFORNIA ALL- PURPOSE CERTIFICATE OF ACKNOWLEDGMENT** 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 ~h *tvlfli* feo } On f ef.x-0~-0Other \_ \_ \_ \_\_\_\_\_\_ \_ 2015 Version www.NotaryClasses.com 800-873-9865 ' INSTRUCTIONS FOR COMPLETING Tms FORM DESCRIPTION OF THE A TI ACHED DOCUMENT *if needed. sho11ld be completed and a11ached 10 the doc11111e111. Aclmowledgme111s from other states may be completed for doc11111ents bei11g sent to that state so long as the wordi,ig does 1101 req11ire the California 1101ary1 ro violate California 1101ary1 law.* - (Title or description of attached document) State and County infonnation must be the State and County where the document signer(s) personally appeared before the notary public for acknowledgment. - Date of notarization must be the date that the signer(s) personally appeared which (Title or description of attached document continued) must also be the same date the aclmowlcdgment is completed. - The notary public must print bis or her name as it appears within his or her Number of Pages \_\_ Document Date\_\_\_\_ commission followed by a comma and then your ritle (notary public). - Print the name(s) of document signer(s) who personally appear at the time of notarization. - Indicate the correct singular or plural fonns by crossing off incorrect forms **(i.e.** he/she/they, is **/aFe)** or circling the correct fonns. Fa·ilurc to correctly indicate this infonnatioo may lead to rejection of document recording. - The notary seal impression must be clear and photographically reproducible. hnpression must not cover text or lines. If seal impression smudges, re-seal if a sufficient area pennits, otherwise complete a different aclmowlcdgment fonn. - Signature of the notary public must match the signature on file with the office of the county clerk. - •:• Additional information is not required but could help to ensure this acknowledgment is not misused or attached to a different document. - •:• Indicate title or type of anachcd document, number of pages and date. - •:• Indicate the capacity claimed by the signer. If the claimed capacity is a corporate officer, indicate the title (i.e. CEO, CFO, Secretary). - Securely attach this document to the signed document with a staple. {4}------------------------------------------------ # **This report \*\* contains (check all applicable boxes):** - [x] Report of Independent Registered Public Accounting Fim1. - [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 ofNet Capital for Brokers and Dealers Pursuant to Rule 15c3-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 15c3-3 under the Securities Exchange Act of 1934 (not applicable). - [ ] A Reconciliation, including appropriate explanations, of the Computation of Net Capital Pursuant to Rule J 5c3-l and the Computation for Determination of Reserve Requirements Under Rule 15c3-3. - [ ] A Reconciliation Between the Audited and Unaudited Statements of Financial Condition With Respect to Methods of Consolidation (not applicable). - [x] An Oath or 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). - [ ] Independent Auditors' Report on Internal Control Required by SEC Rule l 7a-5(g)(I). - [ ] Independent Auditors' Report Regarding Rule 15c3-3 Exemption. - [ ] Rule 15c3-3 Exemption Report \*\* For condi t i ons o f confidenti al treatment of certai n porti ons of this filing, see section 240 . 17a - 5 (e ) ( 3 ) . {5}------------------------------------------------ ![](_page_5_Picture_0.jpeg) # **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Manager and Members of i5equity, LLC ## **Opinion on the Financiial Statement** We have audited the accompanying statement of financial condition of i5equity, LLC (the "Company") as of December 31, 2020, and the related notes (collectively referred to as the "financial statement"). In our opinion, the financial statements present fairly, in all material respects, the financial position ofi5equity, LLC as of December 31, 2020 in conformity with accounting principles generally accepted in the United States of America. # **Going Concern** The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 9 to the financia l statements, the Company has incurred losses and has yet to generate revenues. These circumstances raise substantial doubt about the Company's ability to continue as a going concern. Management has set forth it plans to address this doubt in Note 9. These financial statements do not include any adjustments that might result from the outcome of this uncertainty. ### **Basis for Opinion** This fmancial statement is the responsibility of i5equity, LLC's management. Our responsibility is to express an opinion on i5equity, LLC's financial statement based on our audit. We are a public accounting finn registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to i5equity, 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 perfonn the audit to obtain reasonable assurance about whether the financ ial 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 fmancial statement, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regardfog 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.) ().c . WWC, P.C. We have served as l5equity, LLC's auditor since 2019. San Mateo, CA February 26, 2021 {6}------------------------------------------------ # **STATEMENT OF FINANCIAL CONDITION** # **DECEMBER 31, 2020** ## **Assets** | Cash | \$
22,787 | |------------------|--------------| | Prepaid expenses | 656 | | Total assets | \$
23,443 | | | | # **Liabilities and Members' Capital** | Liabilities and members' capital: | | |----------------------------------------|--------------| | Accollllts payable | \$
4,000 | | Members' capital | 19,443 | | Total liabilities and members' capital | \$
23,443 | **The accompanying notes are an integral part of these financial statements.** {7}------------------------------------------------ # **NOTES TO FINANCIAL STATEMENT** # **DECEMBER 31, 2020** #### NOTE 1. DESCRIPTION OF ORGANIZATION AND BUSINESS l5Equity LLC (the "Company") is a broker dealer registered with the Securities and Exchange Commission ("SEC") and is a member of the Financial Industry Regulatory Authority ("FINRA") formed for the purpose of providing broker dealer services including financial advisory services, mergers and acquisition services and to engage in private placement of securities and similar services. #### NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES # Basis of Presentation These· financial statements were prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. 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 statements and the amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. # Income Taxes The Company is a limited liability company; it therefore does not incur income taxes at the company level. Instead its earnings and losses are passed through to the members and included in the calculation of the members' and ultimate beneficial owners' tax liability. Accordingly, no provision for income taxes has been made in the accompanying financial statements. # Receivables and Contract Balances Receivables arise when the Company has an unconditional right to receive payment under a contract with a customer and are derecognized when the cash is received. Contract assets arise when the revenue associated with the contract is recognized prior to the Company's unconditional right to receive payment under a contract with a customer (i.e., unbilled receivable) and are derecognized when either it becomes a receivable or the cash is received. Contract liabilities arise when customers remit contractual cash payments in advance of the Company satisfying its performance obligations under the contract and are derecognized when the revenue associated with the contract is recognized when the performance obligation is satisfied. As of January l, 2020, and December 31, 2020, the Company did not have any contract assets or contract liabilities. {8}------------------------------------------------ # **NOTES TO FINANCIAL STATEMENT** # **DECEMBER 31, 2020** #### NOTE 3. RELATED PAR TY TRANSACTIONS Pursuant to an administrative service agreement (the "Agreement") between the company and the Affiliate, the Affiliate pays for various expenses of the company without seeking reimbursement. The terms of any of these arrangements may not be the same as those that would otherwise exist or result from agreements and transactions among unrelated parties. #### NOTE4. NET CAP IT AL REQUIREMENTS The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule 15c3-I This Rule requires the maintenance of minimum net capital and that the ratio of aggregate indebtedness to net capital both as defined shall not exceed 8 to l and that equity capital may not be withdrawn or cash dividends paid if the resulting net capital ratio would exceed JO to I. At December 31 , 2020 the Company's net capital was \$ 18,787 which was \$13,787 in excess of its minimum requirement of \$5,000. #### NOTE 5. COMPLIANCE WITH RULE l 5C3-3 The Company does not handle cash or securities on behalf of customers and accordingly has no obligation under SEC Rule 15c3-3. #### NOTE 6. NEW ACCOUNTING PRONOUNCEMENT In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which amends the FASB's guidance on the impairment of financial instruments. The ASU adds to GAAP, an impairment model (known as the current expected credit loss ("CECL") model) that is based on expected losses rather than inclllITed losses. Under the new guidance, the Company recognizes as an allowance, its estimate of lifetime expected credit losses, which the FASB believes will result in more timely recognition of such losses, if any. The ASU is also intended to reduce the complexity of GAAP by decreasing the number of credit impairment models that entities use to account for debt instruments. Further, the ASU makes targeted changes to the impairment model for available-for-sale debt securities. The new CECL standard became effective on January 1, 2020, and the Company applied the modified retrospective method of adoption which resulted in no adjustment to members' equity as the effective date. #### NOTE 7. CONCENTRATIONS All of the Company's cash is maintained in a single financial institution. The Company does not consider itself to be at risk with respect to this concentration. {9}------------------------------------------------ # **NOTES TO FINANCIAL STATEMENT** # **DECEMBER 31, 2020** #### NOTE 8. COVID-19 During the 2020 calendar year, the World Health Organization has declared! COVID-19 to constitute a "Public Health Emergency of International Concern". This pandemic has disrupted economic markets and the economic impact, duration and spread of the COVID-19 virus is uncertain at this time. The financial performance of the Company is subject to future developments related to the COVID-19 outbreak and possible government advisories and restrictions placed on the financial markets and business activities. The impact on financial markets and the overall economy, all of which are highly uncertain, cannot be predicted. If the financial markets and/or the overall economy are impacted for an extended period the Company's results may be materially affected. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. #### NOTE 9. GOING CONCERN Accounting Standards Update 20 14-1 5 requires that management evaluate conditions or events that might raise substantial doubt about the Company's ability to continue as a going concern. Management has evaluated the Company's conditions and has determined that unless the Company generates enough revenue or continues to be funded by its members, there is substantial doubt about the Company's ability to continue as a going concern. Capital is not a significant income producing factor but should the Company have a need for capital it will be able to rely upon its members to infuse capital to cover overheard should that become necessary. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.