# PRIME CAPITAL MARKETS, LLC X-17A-5 (2023-03-20) — Broker-dealer annual report - Company: PRIME CAPITAL MARKETS, LLC - Form: X-17A-5 - Filed: 2023-03-20 - Period: 2022-12-31 - Accession: 0001820777-23-000002 - CIK: 1820777 - File #: 8-70570 - Type: Broker-dealer - Material weakness: No - Auditor: RSM US LLP - Auditor location: Chicago, IL - Contact: Joseph Robert Balcarcel - Phone: 13129867418 - Email: doulvey@prme-trading.com - Website: prme-trading.com - Signed by: David Oulvey (Chief Financial Officer) Original filing: https://www.sec.gov/Archives/edgar/data/1820777/000182077723000002/PCM2022FSPublicFinal..pdf --- {0}------------------------------------------------ # Prime Capital Markets, LLC December 31, 2022 Financial Report {1}------------------------------------------------ | | UNITED STATES | OMB APPROVAL | |------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------| | | SECURITIES AND EXCHANGE COMMISSION | OMB Number: 3235-0123
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12 | | | ANNUAL REPORTS | SEC FILE NUMBER | | | FORM X-17A-5 | 8-70570 | | | PART III | | | filing for the period beginning 01/01/2022 | FACING PAGE
Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | __ AND ENDING 12/31/2022 | | | MM/DD/YY | MM/DD/YY | | | A. REGISTRANT IDENTIFICATION | | | NAME OF FIRM: | Prime Capital Markets LLC | | | TYPE OF REGISTRANT (check all applicable boxes):
Broker-dealer
[] Check here if respondent is also an OTC derivatives dealer | L Security-based swap dealer | L Major security-based swap participant | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | 425 S. Financial Place, Suite 3160 | | | | (No. and Street) | | | | | | | Chicago | Illinois | 60605 | | (City) | (State) | (Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | David E. Oulvey | 847-712-8870 | doulvey@prme-trading.com | | (Name) | (Area Code - Telephone Number) | (Email Address) | | | B. ACCOUNTANT IDENTIFICATION | | | RSM US LLP | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | (Name - if individual, state last, first, and middle name) | | | 30 S. Wacker Drive, Suite 3300 Chicago | | Illinois 60606 | | (Address) | (City) | (State)
(Zip Code) | | 09/24/2003 | | 49 | | (Date of Registration with PCAOB)(if applicable) | | (PCAOB Registration Number, if applicable) | | | FOR OFFICIAL USE ONLY | | | | | | 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 | David E. Oulvey | | swear (or affirm) that, to the best of my knowledge and belief, the | |-------------------------------------------------------------------------------------------------------------------------------------|-------------------------|-------------------------------------------------------------------------------------------| | financial report pertaining to the firm of Prime Capilal Markets LLC | | as of | | | | 20 7 2, 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. | 0 | | | | | | | L MARSHALL
OFFICIAL SEAL | Signature: | | | Notary Public, State of Illinois | | | | My Commission Expires | Title: | | | October 05, 2026 | Chief Financial Officer | | 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 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. - [ (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 capible net worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-2, 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 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. - | (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.17a-12, as applicable. - □ (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). - □ (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}------------------------------------------------ | Contents
of
Independent
Registered
Public
Accounting
Firm
1
Statement
Statement
of
financial
condition
2
Notes
to
statement
of
financial
condition
3
5 | | | |-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--| | Financial | | | | | | | | | | | | | | | | | | | | | | | | Report | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) # Report of Independent Registered Public Accounting Firm To the Manager of Prime Capital Markets, LLC # Opinion on the Financial Statement We have audited the accompanying statement of financial condition of Prime Capital Markets, LLC (the Company) as of December 31, 2022, and the related notes (collectively, 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, 2022, in conformity with accounting principles generally accepted in the United States of America. # Basis for Opinion This financial statement is the responsibility of the Companys management. Our responsibility is to express an opinion on the Companys 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 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. 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 audit 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 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 presentation of the financial statement. We believe that our audit provides a reasonable basis for our opinion. We have served as the Company's auditor since 2021. Chicago, Illinois March 10, 2023 {5}------------------------------------------------ # Statement of Financial Condition December 31, 2022 | Assets | | |------------------------------------------------|-----------------| | Cash and cash equivalents | \$
138,225 | | Other assets | 20,000 | | Receivables from broker-dealers | 5,088,598 | | Prepaid Expenses | 29,787 | | Total assets | \$
5,276,610 | | Liabilities and Member's Equity
Liabilities | | | Accounts payable and accrued expenses | \$
30,750 | | Total liabilities | 30,750 | | Member's equity | 5,245,860 | | Total member's equity | 5,245,860 | | Total liabilities and member's equity | \$
5,276,610 | See notes to the statement of financial condition. {6}------------------------------------------------ Notes to Statement of Financial Condition Note 1. Nature of Business and Significant Accounting Policies buying, selling, and dealing as principal in fixed income securities, equity securities, government securities, and derivative financial instruments for its own accounts. The owner of Prime is Prime Investment Holdings, LLC, an Illinois limited liability company, Prime is a broker-dealer registered under the Securities Exchange Act of 1934 and is a member of the CBOE. As of December 31, 2022 the company has not commenced trading operations. As of December 31,2022 the company has not commenced trading operations. A summary of the Company's significant accounting policies follows: established by the Financial Accounting Standards Board to ensure consistent reporting of accounting principles requires management to make estimates and assumptions that affect the reported Actual results could differ from those estimates. are netted by broker-dealer and included in receivables from broker- dealers in the statement of financial condition. The Company may obtain short-term financing from broker-dealers from whom it Accounting policies: The Company fo financial condition, results of operations, and cash flows. Use of estimates: The preparation of financial statements in conformity with generally accepted amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. can borrow against its proprietary inventory positions, subject to collateral maintenance requirements. Income taxes: Prime is taxed collectively as a partnership under the provisions of the Internal Revenue Receivables from broker-dealers: Receivables and payables relating to trades pending settlement Code and, accordingly, is not subject to federal and state income taxes. Instead, members are liable for federal and state income taxes on their respective share of the taxable income of the Company. FASB guidance requires the evaluation of tax positions taken or expected to be taken while preparing the -likely-thandeemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense and liability in the current year. For the year ended December 31, 2022, management has reviewed the open tax years and concluded that no provision for income tax is ncial statements. Cash: The Company has defined cash equivalents as cash in a checking account. straight-line basis over the estimated useful lives of the assets, which are five to seven years. Leasehold Furniture, equipment, software, and leasehold improvements: Furniture, equipment, software, and leasehold improvements are recorded at cost. Furniture, equipment, and software are depreciated on a improvements are amortized on a straight-line basis over the lesser of the lease term or the estimated useful lives of the assets, which is five to seven years, depending on location. {7}------------------------------------------------ Notes to Statement of Financial Condition | Prime | Capital
Markets,
LLC | | |----------------|-------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Notes
to | Statement
of
Financial
Condition | | | Note
2. | Receivables
from
Broker-Dealers | | | Receivables | from
broker-dealers
at
December | 31,
2022,
consist
of
the
following: | | | | Receivables | | Cash | | \$
5,088,598
\$
5,088,598 | | Note
3. | Related
Party
Transactions | | | The
Company | receives
administrative
affiliates as of December 31, 2022. | services
and
infrastructure
services
to
affiliates
under
common
control, under the terms of an agreement.). There were no amounts due to or from any company | | | | | Note 4. Guarantees and Indemnifications In the normal course of business, the Company enters into contracts that contain a variety of representations and warranties that provide indemnifications under certain circumstances. The unknown, as this would involve future claims that may be made against the Company that have not yet occurred. The Company believes that it is unlikely it will have to make material payments under these arrangements and has not recorded any contingent liability in the financial statements for these indemnifications. {8}------------------------------------------------ # Note 5. Equity Notes to Statement of Financial Condition Prime Capital Markets, LLC: equity consists of two Classes of members, Class A and B. As of December 31, 2022, members are represented in classes A and B. As of December 31, 2022, Class A equity totaled \$5,245,860. There are no active members in Class B. The Class A member has the right and full authority to manage, control, administer and operate the business and affairs of the Company. Note 6. Regulatory Requirements Prime is a broker-dealer subject to the Securities and Exchange Commission Uniform Net Capital Rule (SEC Rule 15c3-1) and has elected to compute its net capital requirements under the basic method, as provided by the Rule, which requires that the Company maintain minimum net capital equal to the greater of \$100,000 or 6 2/3% of aggregate indebtedness, both as defined. Net capital changes from day to day, but at December 31, 2022, Prime had net capital of \$5,196,072, which was \$5,096,072 in excess of the required capital of \$100,000. Although Prime is not exempt from SEC Rule 15c3-3, it does not transact business in securities with, or Note7. Subsequent Events The Company has evaluated subsequent events for potential recognition and/or disclosure through the for, other than members of a national securities exchange and does not carry margin accounts, credit -5(c) (4); therefore, Prime is filing an Exemption Report as required by 17 C.F.R. §240.17a-5(d) (1) and (4). date the financial statements were issued. Subsequent to year-end, there were no significant event. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.