# GRASSROOTS ANALYTICS CAPITAL RAISE LLC X-17A-5 (2024-02-29) — Broker-dealer annual report
- Company: GRASSROOTS ANALYTICS CAPITAL RAISE LLC
- Form: X-17A-5
- Filed: 2024-02-29
- Period: 2023-12-31
- Accession: 0001848667-24-000001
- CIK: 1848667
- File #: 8-70673
- Type: Broker-dealer
- Material weakness: No
- Auditor: YSL & Associates
- Auditor location: New York, NY
- Contact: Khephren Menna
- Phone: 321-948-3086
- Email: kmenna@grassrootsanalytics.com
- Website: grassrootsanalytics.com
- Signed by: Khephren Menna (CEO)
Original filing: https://www.sec.gov/Archives/edgar/data/1848667/000184866724000001/grassrootspublic2023.pdf
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Grassroots Analytics Capital Raise LLC
Statement of Financial Condition
December 31, 2023
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
OMB APPROVAL OMB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12
sec file number
8-70673
## ANNUAL REPORTS FORM X-17A-5 PART III
FACING PAGE
Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934
AND ENDING\_12/31/2023 filing for the period beginning 01/10/2023
MM/DD/YY
MM/DD/YY
A. REGISTRANT IDENTIFICATION
# NAME OF FIRM: GRASSROOTS ANALYTICS CAPITAL RAISE LLC
TYPE OF REGISTRANT (check all applicable boxes):
匡 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.)
## 806 7TH STREET NW, SUITE 3
| DC | | | | | | |
|----------------------------------------------|--------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| | | 20001 | | | | |
| (State) | | (Zip Code) | | | | |
| PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | |
| 321-948-3086 | | kmenna@grassrootsanalytics.com | | | | |
| | (Email Address) | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | 10004 | | | | |
| (City) | (State) | (Zip Code) | | | | |
| | 2699 | | | | | |
| | | | | | | |
| FOR OFFICIAL USE ONLY | | | | | | |
| | | | | | | |
| | (Date of Registration with PCAOB)(if applicable) | (Area Code - Telephone Number)
B. Accountant Identification
INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
(Name - if individual, state last, first, and middle name)
11 BROADWAY, SUITE 700 NEW YORK
NY
(PCAOB Registration Number, if applicable) | | | | |
\* 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.
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### OATH OR AFFIRMATION
| Khephren Menna | | , swear (or affirm) that, to the best of my knowledge and belief, the | |
|----------------|--|-----------------------------------------------------------------------------------|-------|
| | | financial report pertaining to the firm of Grassroots Analytics Capital Raise LLC | as of |
| 12/31 | | 2 023 | |
partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any accoynt classified solely as that of a customer.
| Signature: | |
|------------|--|
| Title: | |
| CEO | |
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-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 subsidiated in the statement of financial condition.
- (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 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 have 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)(2), as applicable.
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## Grassroots Analytics Capital Raise LLC Index
| Report of Independent Registered Public Accounting Firm | | | | |
|---------------------------------------------------------|--|--|--|--|
| Financial Statement | | | | |
| Statement of Financial Condition | | | | |
| Notes to Statement of Financial Condition | | | | |
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Member of Parker Russell International
11 Broadway, Suite 700, New York, NY 10004
Tel: (212) 232-0122 Fax: (646) 218-4682
### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Member of Grassroots Analytics Capital Raise LLC
### Opinion on the Financial Statement
We have audited the accompanying statement of financial condition of Grassroots Analytics Capital Raise LLC (the "Company") as of December 31, 2023, and the related notes (collectively referred to as 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, 2023, in conformity with accounting principles generally accepted in the United States of America.
### 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 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.
We have served as Grassroots Analytics Capital Raise LLC's auditor since 2023.
New York, NY
February 29, 2024
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### Grassroots Analytics Capital Raise LLC Statement of Financial Condition As of December 31, 2023
| Assets | | |
|---------------------------------------|----|---------|
| Cash | ക | 116,330 |
| Prepaid expenses | | 20.198 |
| Total assets | | 136,528 |
| | | |
| Liabilities and Member's Equity | | |
| Accounts payable and accrued expenses | | 47,002 |
| Total liabilities | | 47,002 |
| Member's equity | | |
| Member's equity | | 89,526 |
| Total liabilities and Member's equity | ಕಾ | 136,528 |
The accompanying notes are an integral part of this financial statement.
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#### Organization 1.
Grassroots Analytics Capital Raise LLC (the "Company"), was incorporated in Vermont on November 4, 2020. On January 10, 2023, the Company received approval to become a broker-dealer and as such is registered as a broker-dealer with the Securities and Exchange Commission ("SEC") and is a member of the Financial Industry Regulatory Authority Inc. ("FINRA") and the Securities Investor Protection Corporation ("SIPC"). The Company is a wholly owned subsidiary of Grassroots Analytics LLC (the "Parent"). The Company's business activities include acting as a "finder" of potential investors to invest in socially responsible businesses.
The Company does not carry securities accounts for customers or perform custodial services and, accordingly, claims exemption from Rule 15c3-3 of the Securities Exchange Act of 1934.
### 2. Summary of Significant Accounting Policies
#### Basis of Presentation
The Company's financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP").
#### Cash and cash equivalents
The Company considers all demand and time deposits and all highly liquid investments with an original maturity of three months or less to be cash equivalents.
#### Use of Estimates
The preparation of the financial statements in conformity with US GAAP 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could vary from the estimates that were used.
#### Revenue Recognition
The Company has adopted Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") ASC Topic 606, Revenue from Contracts with Customers ("ASC Topic 606"). The revenue recognition guidance requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance requires an entity to follow a five-step model to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) the entity satisfies a performance obligation. The adoption of this standard had no effect on the Company's financial statements.
#### Income Taxes
The Company is a single member limited liability company, and is treated as a disregarded entity for federal income tax reporting purposes. The Internal Revenue Code ("IRC") provides that any income or loss is passed through to the ultimate beneficial individual member for federal, state and certain local income taxes. Accordingly, the Company has not provided for income taxes .
At December 31, 2023, management has determined that the Company had no uncertain tax positions that would require financial statement recognition. This determination will always be subject to ongoing reevaluation as facts and circumstances may require.
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#### Related-party transactions 3.
Pursuant to an administrative services agreement with the Parent, the Company recorded occupancy, compensation and other general and administrative expenses based on the terms and conditions stipulated in this agreement. The amount due to Parent was \$14,695 at the beginning of the period and \$0 at the ending of the period.
The Company is a newly registered broker dealer and incurred losses for the year. Management has evaluated the conditions and to alleviate doubt of the Company's ability to continue as a going concern, the Parent will continue to provide financial support to the Company including converting allocated expenses as capital contribution.
#### 4. Net Capital Requirements
The Company, as a member of FINRA, is subject to the Securities and Exchange Commission Uniform Net Capital Rule 15c3-1. This Rule requires the maintenance of minimum net capital and that the ratio of aggregate indebtedness as defined to net capital, shall not exceed 8 to 1. The rule 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 December 31, 2023, the Company's net capital was \$69,328 which was \$63,453 in excess of its computed minimum net capital requirement of \$5,875.
#### 5. Concentration of Credit Risk
The Company maintains its cash balances in a bank account at a financial institution, and at times the balance may exceed the federally insured limit. The Company is subject to credit risk to the extent any financial institution with which it conducts business is unable to fulfill contractual obligations on its behalf.
#### 6. Exemption from Rule 15c3-3
The Company is relying on Footnote 74 of the SEC Release No. 34-70073 as it does not and will not hold customer funds or securities, and has not been subject to the reserve computation or possession and control provisions of Rule 15c3-3 of the Securities Exchange Act of 1934.
#### 7. Subsequent Events
The Company evaluated subsequent events or transactions that occurred from January 1, 2024 through the date these financial statements were issued. The Company did not have any significant subsequent events to report.
Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.