# I5EQUITY X-17A-5 (2022-03-25) — Broker-dealer annual report - Company: I5EQUITY - Form: X-17A-5 - Filed: 2022-03-25 - Period: 2021-12-31 - Accession: 0001753567-22-000001 - CIK: 1753567 - File #: 8-70216 - Type: Broker-dealer - Material weakness: No - Auditor: WWC, P.C. Certified Public Accountants - Auditor location: San Mateo, CA - Contact: Kathy Efrem - Phone: 2128971686 - Signed by: Giovanni Soleti (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1753567/000175356722000001/i5e21s.pdf --- {0}------------------------------------------------ ISEQUITY LLC # STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2021 {1}------------------------------------------------ # **UNITED ST A TES** 0MB APPROVAL **SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** # **ANNUAL REPORTS FORMX-17A-5 PART** III | 0MB Number: 3235-0123 | |--------------------------| | Expires: Oct. 31, 2023 | | Estimated average burden | | hours per response: 12 | | | SEC FILE NUMER 8- 70216 **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 **0 1 /01 /21** MM/DDNY AND ENDING **12/31 /21** --------- **MM** /0 D NY # **A. REGISTRANT IDENTIFICATION** NAME OF FIRM: \_\_\_ 15\_E\_Q\_U\_I\_T\_Y\_L\_L\_C \_\_\_\_\_\_\_\_\_\_\_ \_ TYPE OF REGISTRANT (check all applicable boxes): ~ Broker-dealer D Security-based swap dealer D Major security-based swap participant D Check here if respondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) # 612 SANTA FLORITAAVE | | (No. and Street) | | | |-------------|----------------------------------------------------------------------------|------------------------------|--| | MILLBRAE | CA | 94030 | | | (City) | (State) | (Zip Code) | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | Kathy Efrem | (212) 897-1686 | kefrem@integrated .solutions | | | (Name) | (Area Code - Telephone Number) | (Email Address) | | | | B. ACCOUNT ANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNT ANT whose reports are contained in this filing* | | | # WWC, P.C. Certified Public Accountants | (Name - if individual, state last, first, and middle name) | | | | | | | |------------------------------------------------------------|-----------|---------|-------------------------------------------|--|--|--| | 2010 Pioneer Court | San Mateo | CA | 94403 | | | | | (Address) | (City) | (State) | (Zip Code) | | | | | 03/16/2004 | | 1171 | | | | | | (Date of Registration with PCAOB)(if applicable) | | | (PCAOB Registration Number, ifapplicable) | | | | ### **FOR OFFICIAL USE ONLY** \* Claims for exemption from the requirement that the annual reports be covered by the reports ofan 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. l 7a-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 0MB control number.** {2}------------------------------------------------ ### **AFFIRMATION** I, Giovanni Soleti 1 swear (or affinn) that, to the best of my knowledge and belief, the financial report pertaining to 15EQUITY LLC as of 12/31/21 , is true and correct. l further swear (or affinn) 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. Title **Nota1f'Public** | ., | | | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----|--| | no t1111 celtila11 wrllles n, lie klen1lly d
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| J | | \ . ~ ,, ' {3}------------------------------------------------ # **This filing\*\* contains (check all applicable boxes):** - **CEI** (a) Statement of financial condition. - **CEI** (b) Notes to unconsolidated or consolidated statement of financial condition, as applicable. - D ( 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 § 2 10.1-02 of Regulation S-X). - **D** ( d) Statement of cash flows. - D (e) Statement of changes in stockholders' or partners' or members' or sole proprietor's equity, as applicable. - **D** (f) Statement of changes in liabilities subordinated to claims of creditors. - D (g) Notes to unconsolidated or consolidated financial statements,, as applicable. - D (h) Computation of net capital under 17 CFR 240. l 5c3-1 or 17 CFR 240.18a-l, as applicable. - **D** (i) Computation of tangible net worth under 17 CFR 240.l 8a-2. - **D** (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240. l 5c3-3. - D (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. - D (l) Computation for Determination of PAB Requirements under Exhibit A to§ 240. I 5c3-3. - D (m) Information relating to possession or control requirements for customers under 17 CFR 240. l 5c3-3. - D (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. - D (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240. l 5c3-l , 17 CFR 240. l 8a-l , or 17 CFR 240. l 8a-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. - D (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - 0 (q) Oath or affirmation in accordance with 17 CFR 240. 17a-5, 17 CFR 240.1 7a-l 2, or 17 CFR 240. l Sa-7, as applicable. - D (r) Compliance report in accordance with 17 CPR 240. l 7a-5 or 17 CFR 240. l 8a-7, as applicable. - D (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240. I 8a-7, as applicable. - CEI (t) Independent public accountant's report based on an examination of the statement of financial condition. - D ( u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240. l 7a-5, 17 CFR 240.1 8a-7, or 17 CFR 240. I 7a-l 2, as applicable. - D (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240. l 7a-5 or 17 CFR 240.18a-7, as applicable. - D (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240. l 7a-5 or 17 CFR 240. l 8a-7, as applicable. - D (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240. l 5c3-l e or 17 CFR 240. l 7a-l 2, as applicable. - D (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.l 7a-12(k). D (z) Other:------------------------------------- - *\*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.J 7a-5(e)(3) or 17 CFR 240.18a-7(d)(2), as applicable.* {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) ## **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Manager and Members of i5equity, LLC ### **Opinion on the Financial Statement** We have audited the accompanying statement of financial conditfon of i5equity, LLC (the "Company") as of December 31 , 2021 , and tJ1e related notes (collectively referred to as the "financial statement"). In our opinion, the financial statement presents fairly, in all material respects, the financial position ofi5equity, LLC as of December 31, 2021 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. 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 plans to address this doubt are in Note 7. These financial statements do not include any adjustments that might result from the outcome of this uncertainty. ### **Basis for Opinion** This financial 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 firm 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 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 statements. We believe that our audit provides a reasonable basis for our opinion. WwL) ().c. WWC, P.C. We have served as I5equity, LLC's auditor since 2019. San Mateo, CA March 14, 2022 {5}------------------------------------------------ ### **STATEMENT OF FINANCIAL CONDITION** # **DECEMBER 31, 2021** ### **Assets** | Cash
Prepaid expenses | \$
10,541
3,208 | |--------------------------|-----------------------| | Total assets | \$
13,749 | | | | ### **Members' Capital** | Members' capital | \$
13,749 | |------------------------|--------------| | Total members' capital | \$
13,749 | **The accompanying notes are an integral part of these financial statements.** {6}------------------------------------------------ ## **NOTES TO FINANCIAL STATEMENT** ### **DECEMBER 31, 2021** #### NOTE!. DESCRIPTION OF ORGANIZATION AND BUSINESS I5Equity 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. #### NOTE2. 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 ("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. ### The allowance for credit losses ASC Topic 326, Financial Instruments - Credit Losses ("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 ASC 326, the Company could determine there are no expected credit losses in certain circumstances ( e.g., based on the credit quality of the client). 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 the collectability in determining the allowance for credit losses. Under the standard, the allowance for credit losses must be deducted from the amortized cost of the financial asset to present the net amount expected to be collected. The statement of operations would reflect the measurement of credit losses for newly recognized financial assets as wet I as the expected increases or decreases of expected credit losses that might have taken place during the period. The Company has not provided an allowance for credit losses at December 31, 2021. {7}------------------------------------------------ # **NOTES TO FINANCIAL STATEMENT** # **DECEMBER 31, 2021** #### NOTE2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) ### 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 I, 2021 , and December 3 I, 202 I , the Company did not have any contract assets or contract liabilities. #### NOTE3. RELATED PARTY 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 ofthcsc arrangements may not be the same as those that would otherwise exist or result from agreements and transactions among unrelated parties. #### NOTE4. NET CAPITAL REQUIREMENTS The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule l 5c3-1 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 18 to 1 and that equity capital may not be withdrawn or cash dividends paid if the resulting net capital ratio would exceed 10 to I. At December 31 , 2021 the Company's net capital was \$10,541 which was \$5,541 in excess of its minimum requirement of\$5,000. #### NOTES. COMPLIANCE WITH RULE 15C3-3 The Company does not handle cash or securities on behalf of customers and accordingly has no obligation under SEC Rule 15c3-3. #### NOTE6. 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. {8}------------------------------------------------ ## **NOTES TO FINANCIAL STATEMENT** ### **DECEMBER 31, 2021** #### NOTE 7. GOING CONCERN Accounting Standards Update 2014-15 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. #### NOTE S. SUBSEQUENT EVENTS Subsequent events have been evaluated through the date these financial statements were issued. During this period there were no material subsequent events requiring disclosure. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.