# Pacific Oak Capital Markets, LLC X-17A-5 (2022-04-14) — Broker-dealer annual report - Company: Pacific Oak Capital Markets, LLC - Form: X-17A-5 - Filed: 2022-04-14 - Period: 2021-12-31 - Accession: 0001813465-22-000011 - CIK: 1813465 - File #: 8-70537 - Type: Broker-dealer - Material weakness: Yes - Auditor: Ernst & Young LLP - Auditor location: San Francisco, CA - Contact: Huan Liu - Phone: 949-630-0852 - Email: mmai@pac-oak.com - Website: pac-oak.com - Signed by: Matthew Mai (Chief Compliance Officer) Original filing: https://www.sec.gov/Archives/edgar/data/1813465/000181346522000011/pocm21publica.pdf --- {0}------------------------------------------------ # **Public Copy** 6#B+E+B5#I#N+R#-3#PIDRQ-22 R#RDKDLRME.+L#LB+#-MLC+R+ML QME,DBDKADP- +RGDNMPRME0LCDNDLCDLRDF+QRDPDC6SA-+B BBMSLR+LF.+PK {1}------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 > ANNUAL REPORTS FORM X-17A-5 PART III OMB APPROVAL OMB Number: 3235-0123 Expires: Oct. 31, 2023 Estimated average burden hours per response: 12 > SEC FILE NUMBER 8-70537 | | | 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 12/10/20 | | | 12/31/21
AND ENDING | | | | | | | MM/DD/YY | | MM/DD/YY | | | | A. REGISTRANT IDENTIFICATION | | | | | | | | NAME OF FIRM: PACIFIC OAK CAPITAL MARKETS, LLC | | | | | | | | TYPE OF REGISTRANT (check all applicable boxes):
Broker-dealer
Check here if respondent is also an OTC derivatives dealer | | | | | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | | | | 3200 PARK CENTER DRIVE, SUITE 800 | | | | | | | | | | (No. and Street) | | | | | | | COSTA MESA | CA | | 92626 | | | | (City) | | (State) | | (Zip Code) | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | | MATTHEW MAI | | 714-312-9556 | | mmai@pac-oak.com | | | | (Name) | | (Area Code - Telephone Number) | | (Email Address) | | | | | | B. Accountant IDENTIFICATION | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
Ernst & Young LLP | | | | | | | | | (Name - if individual, state last, first, and middle name) | | | | | | | 5 Times Square | | New York | NY | 10036 | | | | (Address) | (City) | | (State) | (Zip Code) | | | | 10/20/2003 | | | 42 | | | | | (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 |. MATTHEW MAI \_ swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of PACIFIC OAK CAPITAL MARKETS, LLC . as of December 31 \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 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: Laurie selwitz Title: lotary Public - California Orange County CCO mission # 2275289 Comm. Expires Feb 11, 207 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). - 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. - O (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-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. - O (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. - O (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. - O (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. - [ {x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.17a-12, as applicable. - O (y) Report describing any material inadequacies found to existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). - 0 (z) Other:\_ - \*\* 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. {3}------------------------------------------------ | State of California
County of Orange | | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------| | Subscribed and sworn to (or affirmed) before me on this I
202 by
day of A XII
proved to me on the basis of satisfactory evidence to be the
person(s) who appeared before me. | | | LAURIE SELWITZ
Notary Public - California
Orange County
Commission # 2275289
My Comm. Expires Feb 11, 2023 | | | (Seal) | Signature | : {4}------------------------------------------------ #### 6#B+E+B5#I#N+R#-3#PIDRQ-22 | 0LCDURM.+L#LB+#-R#RDKDLR | | |-------------------------------------------------|--| | | | | DNMPRME0LCDNDLCDLRDF+QRDPDC6SA-+B BBMSLR+LF.+PK | | | | | | R#RDKDLRME.+L#LB+#-MLC+R+ML | | | | | | 4MRDQRM.+L#LB+#-R#RDKDLRQ | | {5}------------------------------------------------ ![](_page_5_Picture_0.jpeg) Ernst & Young LLP 560 Mission Street Suite 1600 San Francisco, CA 94105-2907 Tel: +1 415 894 8000 Fax: +1 415 894 8099 ey.com # Report of Independent Registered Public Accounting Firm To the Management and Member of Pacific Oak Capital Markets, LLC ### Opinion on the Financial Statement We have audited the accompanying statement of financial condition of Pacific Oak Capital Markets, LLC (the Company) as of December 31, 2021 and the related notes (the "financial statement"). In our opinion, the financial statement presents fairly, in all material respects, the financial position of the Company at December 31, 2021, in conformity with U.S. generally accepted accounting principles. ### Basis for Opinion This financial statement is the responsibility of 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 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 statement. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. We have served as Company's auditor since 2020. April 14, 2022 {6}------------------------------------------------ ## STATEMENT OF FINANCIAL CONDITION #### DECEMBER 31, 2021 | Assets | | | |------------------------------------------|---|-------------| | Cash and cash equivalents | | 2,013,834 | | Trade receivables | | 224,299 | | Due from affiliates | | 312,777 | | Furniture, fixtures and equipment, net | | 79,145 | | Prepaid expenses and other assets | | 58,007 | | Total assets | | 2,688,062 | | | | | | Liabilities and member's equity | | | | Accounts payable and accrued liabilities | S | 409,093 | | Due to affiliates | | 265,019 | | Total liabilities | | 674,112 | | | | | | Member's equity | | | | Additional paid-in capital | | 5,841,382 | | Accumulated deficit | | (3,827,432) | | Total member's equity | | 2,013,950 | | | | | | Total liabilities and member's equity | S | 2,688,062 | | | | | See accompanying notes to financial statements. {7}------------------------------------------------ #### ORGANIZATION 1. Pacific Oak Capital Markets, LLC (the "Company") was formed on March 26, 2020 as a Delaware limited liability company. The Company is registered as a broker-dealer with the Securities and Exchange Commission ("SEC") and is a member of the Financial Industry Regulatory ("FINRA") and the Securities Investor Protection Corporation ("SIPC"). Operations of the Company commenced on December 10, 2020 with the approved membership in FINRA. The Company is authorized to engage in private placements of securities and wholesaling private placements of securities, including non-traded real estate investment trusts ("RETs") and Delaware Statutory Trusts/1031 offerings, and registered offerings. The Company does not hold customer funds or safeguard customer securities. The Company is fully owned by Pacific Oak Holding Group, LLC (the "Member"). ### 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ### Basis of Presentation and Use of Estimates The presentation of the financial statements have been prepared in accounting principles generally accepted in the United States of America ("GAAP") as contained within the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC"). These principles require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of commitments and revenues and expenses. Actual results could differ from those estimates. #### Fair Value of Financial Assets and Liabilities The Company's financial instruments including cash and cash equivalents, trade receivables, due from affiliates, prepaid expenses and other assets, accounts payable and accrued expenses and due to affiliates are carried at amounts that approximate fair value due to the short-term nature of those instruments. #### Cash and Cash Equivalents Cash and cash equivalents include cash on hand, monies held on demand in tinancial institutions, and all shortterm financial investments with a maturity of three months or less that are subject to an insignificant risk of change in value. At times, the Company's cash balances may exceed federally insurable limits. The Company monitors the cash balances in its operating acount and adjusts cash balances as appropriate; however, these cash balances could be impacted if the underlying financial institutions fail or are subject to other adverse conditions in the financial markets. To date, the Company has experienced no loss in its operating account. ### Trade Receivables Trade receivables are stated at their carrying values. Trade receivables consist primarily of amounts due from: - · monthly retainer fee - · trailing commission fees - · reimbursable organizational and offering costs The Company regularly reviews its trade receivables to ensure their adequacy by considering internal factors such as the lack of any historical write-offs and the age of the receivable balance as well as economic conditions that may affect the customer's ability to pay. As of December 31, 2021 there is no allowance for credit losses recorded. ### Furniture, Fixtures and Equipment Furniture, fixtures and equipment are stated at cost. Depreciation for furniture, fixtures and equipment is calculated using the straight-line method over the estimated useful lives of the respective assets, which is generally three years for computer equipment and eight years for furnitures. As of December 31, 2021 the Company had \$73,384 of furniture and fixtures and \$22,420 of computer equipment recorded net of accumulated depreciation of \$6,867 and \$9,792, respectively, {8}------------------------------------------------ #### DTDLSDDBMFL+R+ML CMAMV@M>IZM.:U;Z4>ML:N:NNMZ4VONMM>IVLMC;MV>MZM4UJ@Z>MUMV?>?PI?;Z:A4LM.@>?:UMZ>B4?POZ:>>:NNMZ4VO;Z:.MML>IVL ZMTI?MLILA4>:Za>@;;:Z?4V.:VVM.?4:VB4?P?PM:NNMZ4VOL@Z4VO?PM?MZU:N?PMIZZIVOMUMV? EPM>M4V.T@LMLMITMZUIVIOMZIVL ;TI.MUMV?NMM>\$BP4.PIZM.:U;Z4>ML:NNMM>N:Z:NNMZ4VO;Z:.MML>ZI4>ML:AMZI.:V?ZI.?@IT;MZN:ZUIV.M;MZ4:L\$;Z:L@.? 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Management is not aware of any legal proceedings of which the outcome is probable to have a material adverse effect on the Company's results of operations or financial condition, which would require of the contingency and the possible range of loss. Additionally, the Company has not recorded any loss contingencies related to legal proceedings in which the potential loss is deemed to be remote. #### 5. NET CAPITAL The Company is subject to the Securities and Exchange Commission 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. Net capital and aggregate indebtedness change day to day, but on December 31, 2021 the Company had a minimum net capital requirement of the greater of \$5,000 or 6 2/3% of aggregate indebtedness or \$4,941. The Company's actual net capital of \$1,339,723 was \$1,294,782 in excess of its required net capital of \$44,941. The Company's ratio of aggregate indebtedness of \$674,112 to net capital was 0.50 to 1, which is less than the 15 to 1 maximum ratio allowed for a broker dealer. #### 6. SUBSEQUENT EVENTS The Company evaluates subsequent events up until April 14, 2022, the date that 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.