# DASTA FINANCIAL, LLC X-17A-5 (2024-03-28) — Broker-dealer annual report - Company: DASTA FINANCIAL, LLC - Form: X-17A-5 - Filed: 2024-03-28 - Period: 2023-12-31 - Accession: 0001938265-24-000002 - CIK: 1899305 - File #: 8-70841 - Type: Broker-dealer - Material weakness: No - Auditor: Citrin Cooperman - Auditor location: Florham Park, NJ - Contact: Kimberly Ryan - Phone: 248-224-8713 - Signed by: Justin Ramirez (CCO and CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1899305/000193826524000002/dastashort12.pdf --- {0}------------------------------------------------ | UNITED STATES | |----------------------------------| | SECURmES AND EXCHANGE COMMISSION | | Washington, D.C. 20549 | O'-4B APPROVAL 0MB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12 **ANNUAL REPORTS FORM X-17 A-5 PART** Ill | hours per response: 12 | | |------------------------|--| | SEC FILE NUMBER | | | 8-70841 | | | | | **FACING PAGE** lnfonnation **Required** Pursuant to Rules 17a-5, **17a-12, and 18a-7 under the** Securities **Exchange Act of** 1934 | FILING FOR THE PERIOD BEGINNING O 1/01/2023 | | 1213112023
AND ENDING | |-------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------|-----------------------------------------| | | MM/DD/YY | MM/DD/YY | | | A. REGISTRANT IDENTIFICATION | | | NAME oF FIRM: DAST A Financial, LLC | | | | TYPE OF REGISTRANT (check all applicable boxes):
0 Broker-dealer
D Check here if respondent is also an OTC derivatives dealer | D Security-based swap dealer | D Major security-based swap participant | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | 101 Greenwich, Second Floor, Suite 402 | | | | (No. and Street) | | | New York | NY | 10006 | | (City) | (State) | (Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | Kimberly Ryan | 248-224-8713 | kryan@complianc | | (Name) | (Area Code - Telephone Number) | (Email Address) | | | | B. ACCOUNTANT IDENTIFICATION | | 180 Park Avenue | (Name-if individual, state last, first, and middle name)
Florham Park | NJ | 07932 | |---------------------------------------------------|--------------------------------------------------------------------------|-------------------------------------------|------------| | (Address) | (City) | (State) | (Zip Code) | | 11-02-2005 | | 2468 | | | (Date of Rel!lsttalfon with PCA0B)(lf aoollcablel | | IPCA0B ReRlstratlon Number, If aoolicable | | | | FOR OFFICIAL USE ONLY | | | • Oaims for exemption from the requirement that the annual reports be covered by the reports of an independent public accoununt must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 2.40.17a-5(e)(l)(ii), if appllcable. 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 valld 0MB control number. {1}------------------------------------------------ #### **OATH OR AFFIRMATION** | | 2~
financial report pertaining to the firm of DASTA Financial, LLC
as of | |-------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | 12/31 | /4
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. | ~ | | | BRENDAN R DOWD | | | NOTARY PUBLIC
ignature: | | | OF NEW JERSEY
STATE | | | 10#2412116
itle:
_ | | | C,(.O AY/d OD
SSION EXPIRES SEPT. 09, 2026 | | | | | | | | | This filing contains (check all applicable boxes): | | i!i (a) Statement of financial condition. | | | | i!i (b) Notes to consolidated statement of financial condition. | | | D (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 (d) Statement of cash flows. | | | | D (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. | | | D (f) Statement of changes in liabilities subordinated to claims of creditors. | | | D (g) Notes to consolidated financial statements. | | | D (h} Computation of net capital under 17 CFR 240.15c3-l or 17 CFR 240.lSa-1, as applicable. | | | D (i) Computation of tangible net worth under 17 CFR 240.18a-2. | | | D U) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. | | | D (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.lSa-4, as applicable. | | | D (I) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. | | | D (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. | | | D (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR
240.15t3-3(p}(2) or 17 CFR 240.lSa-4, as applicable. | | D | (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net | | | worth under 17 CFR 240.15c3-l, 17 CFR 240.lSa-1, or 17 CFR 240.lSa-2, as applicable, and the reserve requirements under 17 | | | CFR 240.15c3-3 or 17 CFR 240.lSa-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. | | | i!i (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.lSa-7, as applicable. | | | D (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.lSa-7, as applicable. | | | D (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.lSa-7, as applicable. | | | l!ii (t) Independent public accountant's report based on an examination of the statement of financial condition. | | | D (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.lSa-7, or 17 CFR 240.17a-12, as applicable. | | | D (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.lSa-7, as applicable. | | CFR 240.lSa-7, as applicable. | □ (w) Independent public accountant'sreport based on a review of the exemption report under 17 CFR 240.17a-5 or 17 | | | D (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-le or 17 CFR 240.17a-12, | | as applicable. | | D {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 fnadequacies exist, under 17 CFR 240.17a-12(k). D (zl Other: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_ 0 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), os appllcoble. {2}------------------------------------------------ # DASTA Financial, LLC (A Limited Liability Company) (SEC I.D. No. 8-70841) Statement of Financial Condition December 31, 2023 {3}------------------------------------------------ # DASTA Financial, LLC (A Limited Liability Company) Table of Contents December 31, 2023 | DASTA Financial, LLC
(A Limited Liability Company)
Table of Contents
December 31, 2023 | | | |-------------------------------------------------------------------------------------------------|-----|--| | Report of Independent Registered Public Accounting Firm | 1 | | | Financial Statements | | | | Statement
of Financial Condition | 2 | | | Notes to Financial Statement | 3-7 | | | | | | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) Citrin Cooperman & Company, LLP Certified Public Accountants 180 Park J\ venue, Suite 200 Florham Park, NJ 07932 T 973.218.0500 F 973.218.7160 citrincooperman.com # **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Member DASTA Financial, LLC ## **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of DASTA Financial, 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 DASTA Financial, 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 DASTA Financial, LLC's management. Our responsibility is to express an opinion on DASTA Financial, 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 DASTA Financial, 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. t~~ ~ /~ We have served as DASTA Financial, ~ auditor since 2022. Florham Park, New Jersey March 26, 2024 1 "Citrin Cooperman" is the brand under which Citrin Cooperman & Company, LLP, a licensed independent CPA firm, and Citrin Cooperman Advisors LLC serve clients' business needs. The two firms operate as separate legal entities in an alternative practice structure. The entities of Citrin Cooperman & Company, LLP and Citrin Cooperman Advisors ILC are independent member firms of the Moore North America, Inc. ~A) Association, which is itself a regional member of Moore Global Network Limited (MGNL). All the firms associated with MNA are independen tly owned and managed en tities. Their membership in, or association Wlth, MNA should no t be construed as constituting or implying any partnership between them. {5}------------------------------------------------ # DASTA Financial, LLC (A Limited Liability Company) Statement of Financial Condition December 31, 2023 | DASTA Financial, LLC
(A Limited Liability Company)
Statement of Financial Condition
December 31, 2023 | | |----------------------------------------------------------------------------------------------------------------|-----------------------------------| | Assets | | | Cash
and cash equivalents
Prepaid expenses
Clearing deposit | \$
55,510
20,117
125,041 | | TOTAL ASSETS | \$
200,668 | | Liabilities and Member's
Equity | | | Accounts payable
Payable to Parent | \$
56,964
20,616 | | Total Liabilities | 77,580 | | Member's Equity | 123,088 | | TOTAL LIABILITIES AND MEMBER'S EQUITY | \$
200,668 | # TOTAL LIABILITIES AND MEMBER'S EQUITY \$ 200,668 See notes to financial statement. {6}------------------------------------------------ # Note 1 – Organization and Nature of Business Dasta Financial, LLC ("DASTA" and the "Company") was formed as a limited liability company in the State of Delaware on October 21, 2021. Dasta is a subsidiary of DASTA, Inc. ("Parent"). On December 13, 2022, the Financial Industry Regulatory Authority, Inc. ("FINRA") approved the Company's application to act as a Broker registered with the Securities and Exchange Commission ("SEC"). DASTA is a member of the Securities Investor Protection Corporation ("SIPC"). The Company operates under the exemptive provisions of 15c3-3(k)(2)(ii) of the Securities Exchange Act of 1934, and accordingly, is exempt from the remaining provisions of that Rule. The Company does not hold customer funds or securities, but as an introducing broker-dealer, will clear securities transactions on behalf of the customers on a fully disclosed basis through a clearing broker-dealer and promptly transmit customer funds to the clearing broker-dealer. The clearing broker-dealer carries the accounts of the customers and maintains and preserves all related books and records as are customarily kept by a clearing broker-dealer. The Company's financial statement is presented in conformity with accounting The Company's operations consist primarily of providing corporate equity securities over the counter in an on-line trading platform. The majority of the Company's customers are individuals located through the United States. # Note 2 - Significant Accounting Policies # Basis of Presentation principles generally accepted in the United State of America ("U.S. GAAP"). # Use of Estimates The preparation of a financial statement in conformity with the U.S. generally accepted accounting principles 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 and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash equivalents are short-term, highly liquid investments with original maturities of less subject to insignificant changes in value. In the normal course of business, the Company holds its cash balances, which may exceed federally insured limits, in at least one # Cash and Cash Equivalents than three months that are readily convertible to known amounts of cash and which are {7}------------------------------------------------ ### Note 2 –Significant Accounting Polices (continued) financial institution and is subject to credit risk to the extent that the cash held exceeds insured limits. #### Revenue Recognition The Company recognizes revenue in accordance with Accounting Standards Codification ("ASC") Topic 606, "Revenue from Contracts with Customers". 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. In determining the transaction price, an entity may include variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved. Significant judgment is required to determine whether performance obligations are satisfied at a point in time or over time; how to allocate transaction prices where multiple performance obligations are identified; when to recognize revenue based on the appropriate measure of the Company's progress under the contract; and whether constraints on variable consideration should be applied due to uncertain future events. #### Clearing Firm Commissions The Company introduces customers on a fully disclosed basis to a clearing broker of which the Company has a commission sharing agreement with. Each time a customer enters into a buy or sell transaction, the Company considers that a performance obligation is satisfied and accordingly, earns a commission. The Company believes that the performance obligation is satisfied on the trade date because that is when the underlying financial instrument and seller or purchaser is identified, the pricing is agreed upon and the risks and rewards of ownership have been transferred to/from the customer. Commissions and related clearing expenses are recorded on a trade date basis. #### Revenue from Commission Sharing Arrangements The Company introduces customers to another broker (the "broker") and recognizes commission revenue pursuant to a commission sharing arrangement with the other broker. Commission revenue is recognized on a trade-date basis. The broker is {8}------------------------------------------------ ## Note 2 –Significant Accounting Polices (continued) exclusively responsible for negotiating trade terms with the customers introduced by the Company and for the clearance and settlement services related to processing those trades. The broker pays a portion of the commission it receives to the Company. ## Income Taxes The Company is a single-member limited liability company and is disregarded for federal income tax purposes. The Company's taxable income or loss is included in the tax return of the Parent's members; therefore, federal income taxes are not payable by, or provided for, the Company. # Current Expected Credit Loss ASC Topic 326, "Financial Instruments – Credit Losses" ("ASC 326") impacts the impairment model for certain financial assets by requiring a current expected credit loss ("CECL") methodology to estimate expected credit losses over the entire life of the financial asset. Under ASC 326, the Company could determine there are no expected credit losses in certain circumstances (e.g., based on the credit quality of the client). The allowance for credit losses is based on the Company's expectation of the collectability of financial instruments, including fees and other receivables utilizing the CECL framework. The Company considers factors such as historical experience, credit quality, age of balances and current and future economic conditions that may affect the Company's expectation of the collectability in determining the allowance for credit losses. The Company's expectation is that the credit risk associated with assets is not significant, accordingly, the Company has not provided an allowance for credit losses at December 31, 2023. # Note 3 – Net Capital Requirements The Company is a member of the FINRA and subject to the Securities and Exchange Commission's Uniform Net Capital Rule (Rule 15c3-1), which requires the maintenance of a minimum net capital of the greater of \$5,000 or 12.5% of aggregate indebtedness and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. At December 31, 2023, the Company had excess capital in the amount of \$93,273. The aggregate indebtedness was \$77,580, which resulted in a minimum net capital required of \$9,698. The Company had net capital of \$102,971, which was in excess of the minimum \$9,698 by \$93,273. The Company's ratio of aggregate indebtedness was 75.34%, which is less than the maximum ratio of 1500%. {9}------------------------------------------------ ## Note 4 – Transactions with Clearing Broker-Dealer and Commitment The Company has a clearing agreement with a clearing broker-dealer, to provide clearing, execution and related securities services. The agreement requires the Company to maintain a minimum of \$125,000 as a deposit in an account with the clearing brokerdealer. The clearing agreement also requires a monthly minimum clearing charge of \$15,000 per month. # Note 5 – Related Party Transactions The Company is under the control of its Parent and is economically dependent on the Parent, DASTA, Inc. The existence of that control, dependency and concentration creates operating results and financial position significantly different than if the companies were autonomous. Transactions between the Company and member were not consummated on terms equivalent to arm's length transactions. The Company and the Parent have entered into an Expense Sharing Agreement ("ESA") effective March 12, 2023. The agreement remains in effect until cancelled by either party. Note 6 – Concentration of Credit Risk and Off-Balance Sheet Risk Expenses shared with the Parent include rent, salaries, technology and general overhead and administrative expenses incurred in the normal course of business. Payable to Parent of \$20,616 represents the amount due from the Company to the Parent as it relates to expenses shared under the ESA. Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and clearing deposits. In the normal course of business, the Company's customer activities involve the execution and settlement of customer securities transactions. The clearing broker-dealer carries the accounts of the customers of the Company and is responsible for execution, collection of and payment of funds and, receipt and delivery of securities relative to customer transactions. These transactions may expose the Company to off-balance-sheet risk in the event the customer or other broker is unable to fulfill their contractual {10}------------------------------------------------ ## Note 6 – Concentration of Credit Risk and Off-Balance Sheet Risk (continued) obligations wherein the clearing broker-dealer may charge any losses it incurs to the Company. The Company seeks to minimize this risk through procedures designed to monitor the credit worthiness of its customers and that customer transactions are executed properly by the clearing broker-dealer. statement was available to be issued and there were no subsequent events identified. ## Note 7 – Contingencies The Company's business subjects it to various claims, regulatory examinations and actions, and other proceedings in the ordinary course of business. There are no pending claims or legal proceedings against the Company, in which the company is a named respondent. ## Note 8 – Subsequent Events Management has evaluated the Company's events and transactions that occurred subsequent to December 31, 2023, through March 26, 2024, the date which the financial Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.