# SUNTHAY GRX LLC X-17A-5 (2024-02-28) — Broker-dealer annual report - Company: SUNTHAY GRX LLC - Form: X-17A-5 - Filed: 2024-02-28 - Period: 2023-12-31 - Accession: 0001859907-24-000001 - CIK: 1859907 - File #: 8-70715 - Type: Broker-dealer - Material weakness: No - Auditor: Citrin Cooperman & Company, LLP - Auditor location: New York, NY - Contact: Timothy Cronin - Phone: 917-783-6412 - Signed by: Timothy Cronin (CEO/CCO) Original filing: https://www.sec.gov/Archives/edgar/data/1859907/000185990724000001/sunthaypublic3.pdf --- {0}------------------------------------------------ # **Sunthay GRX LLC** Statement of Financial Condition December 31, 2023 With Report of Independent Registered Public Accounting Firm {1}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION** Washington, D.c. **20549** | OMS Numb r: 3235-0123 | |--------------------------------| | E~ptres: Nov. 30, 7026 | | fstim.ited iillt;or;iee burden | | hours per response;
t2 | | | ## **ANNUAL REPORTS FORM X-17A-5 PART** Ill | SEC FJI f NUMSBl | |------------------| | | **FACING PAGE** Information **Required Pursuant to Rules 17a-S, Ua-12, and 18a-7 under the Securities Exchange Act** of 1934 FILING FOR THE PERIOD **BEGINNING Q 1 /Q 1 /2023 AND** ENDING **12/31/2023** **MM/DD/VY** --- --- - **MM/00/YY** **A. REGISTRANT IDENTIFICATION** NAME oF FIRM: \_\_\_\_\_\_ S\_u\_n\_th\_a\_y\_G\_R\_X\_L\_L\_C \_ \_ \_\_\_\_\_ \_ lYPE OF REGISTRANT (check all applicable boxes): l!l Broker-dealer D Security-based swap dealer D Major security-based swap participant 0 Check hero If rospondcnt is also an OTC derlv.itiv~s dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) - | 420
Lexington | Avenue
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York | NY | 10017 | | | (City) | (State) | (Zip Code) | | | PERSON TO CONTACT
WITH REGARD TO | THIS FILING | | | | Timothy
Cronin | | tim.cronin@sunthay
.com | | | (Name) | (Area Code-Telephone Number) | (Email Address) | | | | B. ACCOUNTANT
IDENTIFICATION | | | ## Citrin Cooperman & Company, LLP | 50
Rockefeller
Plaza | (Name - If individual, state last, first, and middle
New
York | name)
NY | 10020 | |-------------------------------------------------|---------------------------------------------------------------------|-------------|------------| | (Addtl!~S) | (City) | (State) | (Zip Code) | | 11/2/2005 | | 2468 | | | (Date of R .i~tration with PCAOB (l( appl cable | | | | | | FOR OFFICIAL USE
ONLY | | | | I
_ | | | | • Claims for exemprlon from the requirement that the annual repons be covernd by the reports of an Ind p ndE!n public: accountant mu~t be supported by a 5lillt!ment of f;im and circumstances relied on as the basis of the exemption. S17 CFR 240.l7a-S(e)(lj(II), Ir appliec1ble. Pe~ns who are to respond to the collertlon of Information contained in this form are not required to respond unless the form displays a currently v.1lld OM B control number. {2}------------------------------------------------ #### OATH OR AFFIRMATION I, Timolhy CH>nin swear (or affirm} that, to the best of my knowledge and belief, the financial report pertaining to the firm of Soolhay GRX uc as of 12/31 7~ is true and correct. I further swear {or affirm) that neithe?r the company nor any p.irtner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely as th.it of a customer. > LORI ALESSI NOTARY PUBLIC, STATE OF NEW YORK Registration No. 01AL6425911 Qualified In Queens County Commission Expires Nov8111ber 29, 20J..S. | Signatur e:X
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r | - | Notary Public **This filing•• contains (check all appllcable boxes):** - ~(a) Statement of financial condition. - **!iij** (bl Notes to consolidated statement of financial condition. - 0(c) Statement of income (loss) or, if there is other comprehensive income in the perfod(s) presented, a statement of compreh nsivc lncome (as defined in§ 210.1-02 of Regulation S-X), - D (d) Sta ment of cash flows. - n(e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - 0(f) Statement of changes In liabilities ~ubordinated to claims of creditors. - LI (g} Notes to consolidated financial statements. - D (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. - 0 (i) Computation of tangible net worth under 17 CFR 240.18a·2. - □ 0) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.1Sc3-3. - 0(k) Computation for determination of Se(:Urity-based swap reserve requirements pursuant to Exhibit B to 17 CfR 240.l5c3-3 or fxhibit A to 17 CFR 240.lSa-4, as applicable. - 0(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. - 0(n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.1Sc3-3(p)(2) or 17 CFR 240.18a-4, as applicable. - CJ (o) Reconciliatlof\S, including appropriate explanations, of the FOCUS Report with computation of net capital or langibte net worth under 17 CFR 240.15c3-1, 17 CFR 240.lBa-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. - D (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - iiij (q) Oath or affirmation in accordance with 17 CFR 240.17a-S, 17 CFR 240.17a-12, or 17 CFR 240.183-7, as applicable. - D (r) Compliance report in accordance with 17 CFR 240.17a-S or 17 CFR 240.18a-7, as applicable. - D(s) Exemption report in accordance with 17 CFR 240.17a-S or 17 CFR 240.18a·7, as applicable. - ii (t) Independent public accountant's report based on an examination of the statement of financlal condition. - 0(u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240.17d·5, 17 CfR 240.18a-7, or 17 Ct-R 240.lla-12, as applicable. - LI (v) Independent public accountant's r port based on an examlnat Ion of certain statements in the compliance report under 17 CFR 2<10.17a·S or 17 CfR 240.lSa-7, as. applicable. - [) , (Vv) lndep~n~enl public accoun~ant's report based on a review of the exemption report under 17 CFR 240.17a-S or 17 CFR 240.lBa-7, as applicable. - n(x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-le or 17 CFR 240.17a-12. as appficable. - rJ (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). D(z} Other: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_ - . ·, **uro** request confidential treatment of certain portions of tl1is filing, see 17 CFR 240.llu ,5(e)(3) or 17 CFR 240.l8a-l(d)(2), as applicable. {3}------------------------------------------------ #### **Page(s)** | Report of Independent Registered Public Accounting Firm







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Notes to the Financial Statement










| | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) **Citrin Cooperman & Company, LLP** Certified Public Account.ants 50 Rockefeller Plaza New York, NY 10020 **T** 212.697.1000 **F** 212.202.5107 citrincooperman.com ### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Member and Board of Directors of Sunthay GRX LLC #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Sunthay GRX LLC 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 Sunthay G RX LLC 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 Sunthay GRX LLC's management. Our responsibility is to express an opinion on Sunthay GRX 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 Sunthay GRX 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 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 presentation of the financial statement. We believe that our audit provides a reasonable basis for our opinion. We have served as Sunthay GRX LLC's auditor since 2022. New York, New York February 27, 2024 {5}------------------------------------------------ ## **Sunthay GRX LLC Statement of Financial Condition As of December 31, 2023** #### **ASSETS** | Cash | \$
808,209 | |---------------------------------------|---------------| | Prepaid expenses | 1,213 | | Total assets | \$
809,422 | | LIABILITIES AND MEMBER'S EQUITY | | | Liabilities | | | Accrued expenses | \$
30,000 | | Due to Sunthay Holdings | 48,695 | | Total liabilities | 78,695 | | Member's equity | 730,727 | | Total liabilities and member's equity | \$
809,422 | The accompanying notes are an integral part of this financial statement. {6}------------------------------------------------ #### **1. Nature of operations and summary of significant accounting policies** #### Nature of Business Sunthay GRX LLC ("Sunthay GRX" or the "Company") is a limited liability company organized under the laws of the state of Delaware on April 14, 2021. On May 3, 2022, the Company was granted membership by Financial Industry Regulatory Authority ("FINRA"). The Company is registered as a broker-dealer with the Securities and Exchange Commission ("SEC") and is a member of FINRA. The Company is a wholly owned subsidiary of Sunthay Holdings LLC ("Sunthay Holdings"). The Company refers business to another broker-dealer. #### Basis of Presentation The Company's financial statement has been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). #### Use of Estimates The preparation of the financial statement in conformity with U.S. 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 date of the financial statement. Actual results could materially differ from these estimates. #### Revenue Recognition The Company recognizes revenue in accordance with Accounting Standards Codification **("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. #### Allowance for Credit Losses In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments - Credit Losses (Topic 326). The ASU introduces a new credit loss methodology, Current Expected Credit Losses ("CECL"), which requires earlier recognition of credit losses, while also providing additional transparency about credit risk. Since its original issuance in 2016, the FASB has issued several updates to the original **ASU.** {7}------------------------------------------------ #### **1. Nature of operations and summary of significant accounting policies (continued)** #### Allowance for Credit Losses (continued) The CECL methodology utilizes a lifetime "expected credit loss" measurement objective for the recognition of credit losses for certain financial assets at the time the financial asset is originated or acquired. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. The methodology replaces the multiple existing impairment methods in current U.S. GAAP, which generally require that a loss be incurred before it is recognized. For certain financial assets measured at amortized cost (e.g., cash and cash equivalents), the Company has concluded that there are de minim us expected credit losses based on the nature and contractual life or expected life of the financial assets. #### **2. Related party transactions** Sunthay GRX and Sunthay Holdings entered into an Administrative Services Agreement (the "Expense Sharing Agreement"). In accordance with the Expense Sharing Agreement, Sunthay **GRX** reimburses Sunthay Holdings on a monthly basis for a proportional share of expenses as detailed **in** the agreement. The expenses associated with the Agreement include occupancy, salaries and personnel costs, travel and entertainment, professional fees , and other. During the period ended December 31 , 2023, the Company incurred expenses under the Expense Sharing Agreement, \$48,695 of which is included as Due to Sunthay Holdings on the accompanying statement of financial condition. During the period ended December 31 , 2023, Sunthay Holdings forgave \$764,312 of expenses under the expense sharing agreement. #### **3. Net capital requirements** The Company, as a member of FINRA, is subject to the SEC Uniform Net Capital Rule 15c3-1. 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 15 to 1 (8 to 1 in the initial year of operations) and that equity capital may not be withdrawn if the resulting net capital ratio would exceed 10 to 1. At December 31 , 2023, the Company's net capital was approximately \$729,000, which was approximately \$724,000 in excess of its minimum requirement of approximately \$5,000. #### **4. Concentration of credit risk** From time to time, the Company will maintain cash balances in a financial institution that may exceed the Federal Deposit Insurance Corporation ("FDIC") coverage of \$250,000. Management regularly monitors the financial condition of these institutions in order to keep the potential risk to a minimum. #### **5. Income taxes** The Company is a single member limited liability company that is treated as a disregarded entity for U.S. Federal income tax purposes and is included in the Federal, New York State and New York City income tax returns of Sunthay Holdings. {8}------------------------------------------------ ## **Sunthay GRX LLC Notes to the Financial Statement December 31, 2023** #### **6. Subsequent events** The Company has performed an evaluation of events that have occurred subsequent to December 31 , 2023, and through February 27, 2024, the date of the filing of this report. There have been no material subsequent events that occurred during such period that would require disclosure in this report or would be required to be recognized in the financial statements as of December 31 , 2023. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.