# CEIBA FINANCIAL, LLC X-17A-5 (2024-08-20) — Broker-dealer annual report - Company: CEIBA FINANCIAL, LLC - Form: X-17A-5 - Filed: 2024-08-20 - Period: 2024-06-30 - Accession: 0001756190-24-000003 - CIK: 1756190 - File #: 8-70236 - Type: Broker-dealer - Material weakness: No - Auditor: Tuttle & Bond, PLLC - Auditor location: Fredericksburg, TX - Contact: Carlos Lane - Phone: 2022973737 - Signed by: Carlos Lane (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1756190/000175619024000003/ceibafinpublic2024.pdf --- {0}------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 > ANNUAL REPORTS FORM X-17A-5 PART III OMB APPROVAL OMB Number: Expires: Estimated average burden hours per response: > SEC FILE NUMBER 8-70236 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 \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ AND ENDING \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ MM/DD/YY MM/DD/YY A. REGISTRANT IDENTIFICATION # NAME OF FIRM: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ TYPE OF REGISTRANT (check all applicable boxes): Broker-dealer Security-based swap dealer Major security-based swap participant Check here if respondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) # \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ | | (No. and Street) | | | | |------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------|------------|--| | | _____________________________________________________________________________________ | | | | | (City) | (State) | | (Zip Code) | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | _____________________________________________________________________________________ | | | | | (Name) | (Area Code – Telephone Number) | (Email Address) | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
_____________________________________________________________________________________ | | | | | (Name – if individual, state last, first, and middle name) | | | | | | | _____________________________________________________________________________________ | | | | | (Address) | (City) | (State) | (Zip Code) | | | | _____________________________________________________________________________________ | | | | | (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 be covered by the 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. {1}------------------------------------------------ #### OATH OR AFFIRMATION | CARLOS ANDRES LANE | | | , swear (or affirm) that, to the best of my knowledge and belief, the | | |-----------------------------------------------------------------|----------------------------------------------------------------------------------|--|-----------------------------------------------------------------------|-------| | financial report pertaining to the firm of CEIBA FINANCIAL, LLC | | | | as of | | | Is trille and corrort fourthar curar for affirm that naithor the commony por any | | | | is true and correct. I further swear (or affirm) 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. Signature: Title: CFO Notary Public #### This filing\*\* contains (check all applicable boxes): - (a) Statement of financial condition. - □ (b) Notes to consolidated statement of financial condition. - (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). - (d) Statement of cash flows. - = (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 eensolidated 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. - O (I) 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. - (o) 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-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 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. - (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - | as applicable. - □ (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 240.17a-12(k). — \*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e)(3) or 17 CFR 240.18a-7(d)(2), as applicable. {2}------------------------------------------------ ### CALIFORNIA JURAT | A notary public or other officer completing this certificate verifics only the identity of the individual who signed the document to which this certificate is attached, and n | | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------| | State of California | | | County of _ Orange | | | | | | Subscribed and sworn to (or affirmed) before me on this 1970 day | | | tugust | Lane | | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
of | | | | | | proved to me on the basis of satisfactory evidence to be the person(s) | | | who appeared before me. | | | | | | LOGAN LARGENT | | | COMM. #2487496
COUN
Notary Public - California | | | Orange County
My Comm. Expiras Apr. 20, 2028 | | | | | | Signature | | | (Seal) | | | | | | | | | Optional Information | | | Although the information in this section is not required by law, it could prevent fraudulent removal and reattachment of this jurat to an unauthorized document
and may prove useful to persons relying on the attached document. | | | | | | Description of Attached Document | Additional Information a | | This certificate is attached to a document titled/for the purpose of | Method of Affiant Identification | | | Proved to me on the basis of satisfactory evidence:
() form(s) of identification () credible witness(es) | | | Notarial event is detailed in notary journal on: | | | Page #
Entry # | | | Notary contact: | | | Other | | containing ___________________________________________________________________________________________________________________________________________________________________ | Affiant(s) Thumbprint(s) Describe: | | | | | | | | | | {3}------------------------------------------------ ### **CEIBA FINANCIAL, LLC** (A LIMITED LIABILITY COMPANY) FINANCIAL STATEMENTS AS OF JUNE 30, 2024 AND FOR THE YEAR ENDED JUNE 30, 2024 AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM {4}------------------------------------------------ ### **CEIBA FINANCIAL, LLC** (A LIMITED LIABILITY COMPANY) ### **Table of Contents** . | Report of Independent Registered Public Accounting Firm………………………………………………………………………………. | 1 - 2 | |----------------------------------------------------------------------------------------|--------| | Financial Statements | | | Statement of Financial Condition…………………….…………………………………………………3 | | | Notes to Financial Statements……………………….…………………………………………………… | 7 - 10 | {5}------------------------------------------------ ![](_page_5_Picture_0.jpeg) #### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Member of Ceiba Financial, LLC ### **Opinion on The Financial Statements** We have audited the accompanying statement of financial condition of Ceiba Financial, LLC (the "Company") as of June 30, 2024, and the related statements of operations, member's equity and cash flows for the year then ended, including the related notes (collectively referred to as "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of June 30, 2024, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. ### **Basis for Opinion** These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements 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 the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit of these financial statements 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 statements are free from material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, 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 the audit provides a reasonable basis for our opinion. ### **Report on Supplementary Information** The accompanying information contained in the Supplementary Information section has been subjected to audit procedures performed in conjunction with the audit of the Company's financial statement. The supplemental information is the responsibility of the Company's management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with Rule 17a-5 under the Securities Exchange Act of 1934 and, if applicable, under Regulation 1.10 under the Commodity Exchange Act. In our opinion, the information contained in the Supplementary Information section is fairly stated, in all material respects, in relation to the financial statements as a whole. Tuttle & Bond, PLLC Fredericksburg, Texas August 15, 2024 We have served as the auditor for Ceiba Financial, LLC since 2024. ![](_page_5_Picture_14.jpeg) {6}------------------------------------------------ # **CEIBA FINANCIAL, LLC** (A LIMITED LIABILITY COMPANY) #### **STATEMENT OF FINANCIAL CONDITION** June 30, 2024 ### **ASSETS** | Cash and cash equivalents
Accounts receivable
Prepaid expenses | \$
128,856
5,816
5,062 | |----------------------------------------------------------------------|---------------------------------| | TOTAL ASSETS | \$
139,734 | ### **LIABILITIES AND MEMBER'S EQUITY** | LIABILITIES
Accounts payable and accrued expenses | \$
4,757 | |------------------------------------------------------|---------------| | TOTAL LIABILITIES | \$
4,757 | | MEMBER'S EQUITY | 134,977 | | TOTAL LIABILITIES AND MEMBER'S EQUITY | \$
139,734 | See Report of Independent Registered Public Accounting Firm and Notes to Financial Statements. {7}------------------------------------------------ (A LIMITED LIABILITY COMPANY) (A LIMITED LIABILITY COMPANY) ### NOTES TO FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS ### JUNE 30, 2024 DECEMBER 31, 2019 ### Note 1 - **SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** ### Organization and Nature of Business CEIBA Financial, LLC (the "Company") is a capital acquisition broker-dealer registered with the Securities and Exchange Commission (the "SEC") and is a member of the Financial Industry Regulatory Authority, Inc. ("FINRA"). The Company, a California limited liability company ("LLC"), received its approval for membership on April 26, 2019. The Company conducts business in private placements of securities. Since the Company is an LLC, the member is not liable for the debts, obligations, or liabilities of the Company, whether arising in contract, tort or otherwise, unless the member has signed a specific guarantee. ### Liquidity and Capital Resources The Company's prospects are subject to certain risks, expenses and uncertainties frequently encountered by companies in rapidly evolving markets. These risks include the failure to market the Company's offerings as well as other risks and uncertainties. The Company has historically funded its operations through advisory fee revenue and equity contributions. Management of the Company expects to be successful in maintaining sufficient working capital and will manage operations commensurate with its level of working capital. ### Basis of Presentation The Company keeps its books and prepares its financial statements on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America, which is required by the SEC and FINRA. ### Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles 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 reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. ### Cash and Cash Equivalents For purposes of the statement of Cash Flows, the Company has defined cash equivalents as highly liquid investments with original maturities of less than 90 days that are not held for sale in the ordinary course of business. {8}------------------------------------------------ (A LIMITED LIABILITY COMPANY) (A LIMITED LIABILITY COMPANY) NOTES TO FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 DECEMBER 31, 2019 ### **Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)** ### Accounts Receivable Accounts receivable are uncollateralized customer obligations due under normal trade terms generally requiring payment within 30 days from the invoice date. Accounts receivable are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through a charge to earnings and a credit to valuation allowance based on its assessment of the current collectability status of accounts, which includes specific losses for known troubled accounts and other available evidence. At June 30, 2024, management considers all accounts receivable to be fully collectible, therefore no allowance for uncollectible amounts is necessary. ### Revenue Recognition The Company records revenue under the provisions of ASC 606, Revenue from Contracts with Customers. Under this standard, recognition of revenue occurs when a customer obtains control of promised services or goods in an amount that reflects the consideration to which the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. ### *Significant Judgments* Revenue from contracts with customers includes advisory fees and platform fees. The recognition and measurement of revenue is based on the assessment of individual contract terms. Significant judgment is required to determine whether performance obligations are satisfied at a point in time or over time; how to allocate transaction prices where multiple performance obligations are identified; when to recognize revenue based on the appropriate measure of the Company's progress under the contract' and whether constraints on variable consideration should be applied due to uncertain future events. Advisory fees are determined on a case by case basis according to the terms negotiated by management and are generally recognized at the time the services are completed and the income is reasonably determinable. Monthly platform fees are negotiated with individual registered representatives and are billed monthly. The fees are recognized for the month covered by the invoice to the registered representative. Reimbursable expense income is recognized at the time the expenses are incurred. ### Concentrations During the year ended June 30, 2024, there was no significant concentration of revenue. No customer generated more than 13% of total revenues. {9}------------------------------------------------ (A LIMITED LIABILITY COMPANY) (A LIMITED LIABILITY COMPANY) NOTES TO FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 DECEMBER 31, 2019 ### **Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)** The Company maintains its cash in bank deposit accounts, which at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk for cash. ### Income Taxes The Company is a single member limited liability company and as such, is not required to file its own tax return. Accordingly, no provision for income taxes are provided in the financial statements as they are the responsibility of the individual member. The Company has adopted the provision of FASB Accounting Standards Codification 740-10, Accounting for Uncertainty in Income Taxes. Under FASB ASC 740-10, the Company is required to evaluate each of its tax positions to determine if they are more likely than not to be sustained if the taxing authority examines the respective position. A tax position includes the entity's status and the decision not to file a return. The Company has evaluated each of its tax positions and has determined that it has no uncertain tax positions for which a provision or liability for income taxes is necessary. ### Management Review The Company evaluated subsequent events through the date the financial statements were issued. The Company did not identify any material subsequent events requiring adjustment to or disclosure in its financial statements. ### **Note 2 - NET CAPITAL REQUIREMENTS** The Company is subject to the SEC Uniform Net Capital Rule (SEC Rule 15c3-1), 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 1 (and the rule of the "applicable" exchange also provides that equity capital may not be withdrawn or cash dividends paid if the resulting net capital ratio would exceed 10 to 1). At June 30, 2024, the Company had net capital of \$122,850, which was \$117,850 in excess of its required net capital of \$5,000. The Company's percentage of aggregate indebtedness to net capital was 3.87%. ### **Note 3 - RELATED PARTY TRANSACTIONS** The Company makes periodic payments to its sole owner, Carlos Lane, for his services as the Chief Executive Officer and Chief Compliance Officer. For the year ended June 30, 2024, the firm paid Mr. Lane \$154,000. ### **Note 4 - COMMITMENTS AND CONTINGENCIES** The Company has evaluated commitments and contingencies in accordance with Accounting Standards Codification 450, Contingencies (ASC450) and Accounting {10}------------------------------------------------ (A LIMITED LIABILITY COMPANY) (A LIMITED LIABILITY COMPANY) ### NOTES TO FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS JUNE 30, 2024 DECEMBER 31, 2019 Standards Codification 440 Commitments (ASC 440). Management has determined that no significant commitments and contingencies exist as of June 30, 2024. ### Litigation The Company from time to time may be involved in litigation relating to claims arising out of its normal course of business. Management believes that there were no claims or actions pending or threatened against the Company, the ultimate disposition of which would have a material impact on the Company's financial position, results of operations or cash flows. ### Risk Management The Company maintains various forms of insurance that the Company's management believes are adequate to reduce the exposure to these risks to an acceptable level. ### Subordinated Debt The Company has no subordinated debt obligations. ### Leases The Company has no lease arrangements. ### Legal Matters The Company has no pending lawsuits. ### **Note 4 - SUBSEQUENT EVENTS** The Company has evaluated subsequent events through the filing of these financial statements and determined that there have been no events that have occurred that would require adjustments to our disclosures in the financial statements. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.