# WESTCAP MARKETS, LLC X-17A-5 (2024-03-29) — Broker-dealer annual report - Company: WESTCAP MARKETS, LLC - Form: X-17A-5 - Filed: 2024-03-29 - Period: 2023-12-31 - Accession: 0001912508-24-000002 - CIK: 1912508 - File #: 8-70895 - Type: Broker-dealer - Material weakness: No - Auditor: Deloitte & Touche LLP - Auditor location: New York, NY - Contact: Kristina Bach - Phone: 9149074271 - Email: kristina@finopsvcs.com - Website: finopsvcs.com - Signed by: Jeffrey Mullen (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1912508/000191250824000002/wcmllcpublic2023.pdf --- {0}------------------------------------------------ # **Westcap Markets, LLC (S.E.C. NO. 8-70895)** # **Statement of Financial Condition December 31, 2023 and Independent Auditors Report** This report is filed as a PUBLIC document in accordance with rule 17a-5(e)(3) under the Securities Exchange Act of 1934. {1}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** OMB APPROVAL OMB Number: ϯϮϯϱͲϬϭϮϯ Expires: EŽǀ͘ϯϬ͕ϮϬϮϲ Estimated average burden hours per response: > SEC FILE NUMBER 8-70895 # **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** FILING FOR THE PERIOD BEGINNING \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ AND ENDING \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ MM/DD/YY MM/DD/YY 01/01/2023 12/31/2023 **A. REGISTRANT IDENTIFICATION** #### NAME OF FIRM: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Westcap Markets, LLC 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.) #### \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 25 Church Road | | (No. and Street) | | | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------|------------------------|------------| | Rye Beach
_____________________________________________________________________________________ | NH | | 03871 | | (City) | (State) | | (Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | Kristina Bach
_____________________________________________________________________________________ | 914-907-4271 | kristina@finopsvcs.com | | | (Name) | (Area Code – Telephone Number) | (Email Address) | | | | B. ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
Deloitte & Touche LLP
_____________________________________________________________________________________ | | | | | 30 Rockefeller Plaza
_____________________________________________________________________________________ | (Name – if individual, state last, first, and middle name)
New York | NY | 10112-0015 | | (Address) | (City) | (State) | (Zip Code) | | 10/20/2003
_____________________________________________________________________________________ | | 34 | | | (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.** {2}------------------------------------------------ #### **--** | ŋXdž ՔƇƈƩ"ĘdžŕÒƟƠ"Ƥdž | | ~¯™dž "¬dž55#T³dž N27Xdž N"džFdž §eĕdž"5džTsdž ƕ.m¯©"Ädž ¦!"dž §čÆ5œdž Fdž | | |----------------------------------------------------------------------|--|----------------------------------------------------------------------------|----------| | 5!![Ɠ©dž #}" őŲœŏ꣣ïdžŝōťê£ŗdž ¤÷ŮŁøŷdžŞųŃŔöíĢdžŦůłŰðdž÷Ňdž¤ðúdžŸŘøŒdž ùĄƉ®ƶÿNÆ"!dž£"ĪdžIJãdžşƘèçĻãľdž ŢƺÿơƔ5ĉƄdžÍdžùƁƋƢ"Ídžì"O!ǁdž ì"TƣƐ®®ĉ"Ídžïƿ}ƑƫĄ®džáçįĽİĸáèdž | ŧjÄ7OÏédž |
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282,159 | | Fixed assets, net | 91,570 | | Operating lease right of use asset (net of accumulated | | | amortization of \$10,773) | 23,018 | | Prepaid expenses | 69,292 | | | | | | \$
466,039 | | | | | LIABILITIES AND MEMBER'S EQUITY | | | Liabilities | | | Accrued professional fees | \$
67,330 | | Payable to parent | 32,358 | | Operating lease liability | 22,934 | | Total Liabilities | 122,622 | | | | | Member's equity | 343,417 | | | | | | \$
466,039 | {5}------------------------------------------------ # **Westcap Markets, LLC** ### Notes to Statement of Financial Condition December 31, 2023 ## **1. Organization** WestCap Markets, LLC, (the "Company"), a Delaware limited liability company, was formed on October 20, 2021 for the purpose of collecting commissions and fee transaction proceeds by engaging in best efforts underwritings, private placement of securities, sales of mutual funds, and advising on mergers and acquisitions. The Company will continue in perpetuity until the dissolution and termination in accordance with the Limited Liability Company Agreement ("LLCA"). The Company is a registered broker-dealer under the Securities and Exchange Act of 1934, and a member of the Financial Industry Regulatory Authority, Inc. ("FINRA"). The Company's membership with FINRA was approved on January 6, 2023. The Company is a wholly owned subsidiary of WestCap Management, LLC ("Parent" or "WestCap Management"). Profits and losses are allocated in accordance with the LLCA. The liability of a limited liability company's member for the losses, debts and obligations of the company is generally limited to its capital contributions. The Company considers the Parent and its founder, senior managing directors, employees, subsidiaries, the WestCap Management Funds to be affiliates. WestCap Management Funds refer to the funds and other vehicles that are managed by WestCap Management. #### **2. Significant Accounting Policies** #### Basis of Presentation The accompanying statement of financial condition of the Company has been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). #### Use of Estimates The preparation of the statement of financial condition in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingencies at the date of the statement of financial condition. Actual results could differ from those estimates. #### Cash and Cash Equivalents Cash and cash equivalents include highly liquid investments with three months or less to maturity at the date of purchase. Cash equivalents are primarily classified as Level I as they are valued using quoted prices that are available in active markets for identical financial instruments as of the reporting date. The Company's cash balances are insured up to \$250,000 by the Federal Deposit Insurance Corporation. At December 31, 2023, the Company held \$265,848 in TFDXX money market mutual fund. {6}------------------------------------------------ # **Westcap Markets, LLC** Notes to Statement of Financial Condition December 31, 2023 #### **2. Significant Accounting Policies (continued)** #### Revenues Revenues will consist of commissions and fees generated by best efforts underwritings, private placements of securities, sales of mutual funds, and advising on mergers and acquisitions. ### Fixed Assets Furniture, equipment and leasehold improvements are stated at cost. Maintenance and repairs are charged to operations. Depreciation expense is calculated using the straight-line method over the respective assets' estimated useful lives. Leasehold improvements are amortized over the shorter of the economic useful life of the improvement or the lease term. The useful lives are as follows: | Office Equipment | 5 years | |------------------------|---------| | Furniture and Fixtures | 7 years | | Leasehold Improvements | 3 years | #### Compensation Expense Westcap Management allocates a portion of its employees' services to the Company. The Company reimburses Westcap Management pursuant to an expense sharing agreement further described in Note 5. #### Income Taxes The Company is a disregarded entity for income tax purposes as its results of operations are included in the income tax returns of its Parent. As of December 31, 2023, the Company has not recognized any contingencies in the statement of financial condition related to uncertain tax positions. There are no uncertain tax positions requiring disclosure. #### **3. Fixed Assets** Property and equipment are comprised of the following components: | | Useful Life | | |--------------------------------|-------------|--------------| | Computer equipment | 5 years | \$
3,970 | | Furniture and fixtures | 7 years | 18,789 | | Leasehold improvements | 3 years | 101,994 | | | | \$ 124,753 | | Less: accumulated depreciation | | 33,183 | | Fixed assets, net | | \$
91,570 | {7}------------------------------------------------ Notes to Statement of Financial Condition December 31, 2023 ### **4. Net Capital** As a registered broker-dealer, the Company files an unconsolidated FOCUS Report and is subject to (Rule 15c3-1), under the Securities Exchange Act of 1934 that requires the maintenance of minimum net capital of the greater of \$5,000 or 12.5% of aggregate indebtedness in the first year of operations. Additionally, the ratio of aggregate indebtedness to net capital shall not exceed 8 to 1. At December 31, 2023 the Company had net capital of \$174,678, which was \$162,216 in excess of its required net capital of \$12,461. The Company's ratio of aggregate indebtedness to net capital was .57 to 1. After 12 months as a registered broker-dealer, the Company's net capital requirement will be the greater of \$5,000 or 6 2/3% of aggregate indebtedness, and the ratio of aggregate indebtedness to net capital shall not exceed 15 to 1. The Company does not carry customer accounts and does not otherwise hold funds or securities for, or owe money or securities to, customers and accordingly is exempt from the Customer Protections Rule (Rule 15c3-3). #### **5. Related Party Transactions** The Company sublets office space from the Parent pursuant to a sublease agreement in the amount of \$1,000 per month. The Company and the Parent entered into an Administrative Services and Expense Sharing Agreement (the "Agreement") in a manner consistent with the Securities and Exchange Commission ("SEC") rules 15c3-1, 17a-3, 17a-4 and 17a-5 and other relevant SEC and FINRA regulations and interpretations, whereas the Parent agrees to pay certain of the administrative and other expenses relating to the operation of the Company, and the Company agrees to reimburse the Parent for such expenses in accordance with the Agreement. These expenses are reflected in the accompanying statement of financial condition in the amount of \$32,358 as Payable to Parent. The Company settles the Payable to Parent balance periodically. {8}------------------------------------------------ Notes to Statement of Financial Condition December 31, 2023 ### **6. Commitments and Contingencies** The Company maintains its office in Rye Beach, NH, under a 3-year sublease agreement. In accordance with Accounting Standards Codification 842, Leases ("ASC 842"), the Company has recognized an asset and liability for the right and obligation created by the leased asset. Using the risk-free rate corresponding to the duration of the sublease, the Company measured the present value of the lease payments through lease expiration. The following table reflects the operating lease remaining obligation, imputed interest, liability, and right of use asset as of December 31, 2023. | Remaining obligations | \$ 24,000 | |-----------------------|-----------| | Imputed interest | 1,066 | | Liability | \$ 22,934 | | Right of use asset | \$ 23,018 | The Company may, from time to time, be involved in litigation and claims incidental to the conduct of its business. The Company is also subject to extensive regulation, which may result in regulatory proceedings against the Company. The Company accrues a liability for legal proceedings only when those matters present loss contingencies that are both probable and reasonably estimable. In such cases, there may be an exposure to loss in excess of any amounts accrued. In the normal course of business, the Company enters into contracts that contain a variety of indemnification arrangements. The Company's exposure under these arrangements, if any, cannot be quantified. However, the Company, based on its history and experience, has not had claims or losses pursuant to these indemnification arrangements and expects the potential for a material loss to be remote. #### **7. Subsequent Events** The Company has evaluated the impact of all subsequent events from December 31, 2023, through March 28, 2024, the date the statement of financial condition was issued, and has determined there were no subsequent events requiring recognition or disclosure in the statement of financial condition. \* \* \* \* Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.