# CARVER EDISON CAPITAL, LLC X-17A-5 (2024-12-18) — Broker-dealer annual report - Company: CARVER EDISON CAPITAL, LLC - Form: X-17A-5 - Filed: 2024-12-18 - Period: 2024-09-30 - Accession: 0002013816-24-000076 - CIK: 1865088 - File #: 8-70734 - Type: Broker-dealer - Material weakness: No - Auditor: Nawrocki Smith LLP - Auditor location: Hauppauge, NY - Contact: Christopher Meyers - Phone: 212-668-8700 - Signed by: Hilary Bergman (CCO) Original filing: https://www.sec.gov/Archives/edgar/data/1865088/000201381624000076/carveredpubaudit.pdf --- {0}------------------------------------------------ OMB APPROVAL OMB Number: Expires: Estimated average burden hours per response: SEC FILE NUMBER # ANNUAL REPORTS FORM X-17A-5 PART III | | FOR OFFICIAL USE ONLY | | | |---------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------|---------------------------------------|--------------------------------------------| | (Date of Registration with PCAOB)(if applicable) | _____________________________________________________________________________________ | | (PCAOB Registration Number, if applicable) | | | | | | | (Address) | _____________________________________________________________________________________
(City) | (State) | (Zip Code) | | | (Name – if individual, state last, first, and middle name) | | | | | _____________________________________________________________________________________ | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | | B.
ACCOUNTANT IDENTIFICATION | | | | (Name) | (Area Code – Telephone Number) | (Email Address) | | | | _____________________________________________________________________________________ | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | (City) | (State) | | (Zip Code) | | | _____________________________________________________________________________________ | | | | | (No. and Street) | | | | | _____________________________________________________________________________________ | | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | TYPE OF REGISTRANT (check all applicable boxes):
Broker-dealer
Check here if respondent is also an OTC derivatives dealer | Security-based swap dealer | Major security-based swap participant | | | | NAME OF FIRM: _______________________________________________________________________ | | | | | | | | | | A.
REGISTRANT IDENTIFICATION | | | | | MM/DD/YY | | MM/DD/YY | | | FILING FOR THE PERIOD BEGINNING _____________________ AND ENDING ______________________ | | | | | FACING PAGE
Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | | | | | | | | | | PART III | | | | | FORM X-17A-5 | | | | | ANNUAL REPORTS | | | | | Washington, D.C. 20549 | | Estimated average burden | | | UNITED STATES
SECURITIES AND EXCHANGE COMMISSION | OMB Number:
Expires: | | | | | | OMB APPROVAL | \* 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. {1}------------------------------------------------ ### **OATH OR AFFIRMATION** | I, Hilary Bergman | swear (or affirm) that, | to the best of my knowledge
and belief, the | |--------------------------------|----------------------------------------|------------------------------------------------| | financial report pertaining to | the firm of Carver Edison Capital, LLC | as of | \_9\_/\_3\_0 \_\_\_\_\_\_\_\_\_\_ � 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. ![](_page_1_Figure_3.jpeg) ![](_page_1_Picture_4.jpeg) | Signature:
Hilary | Olgilallyslgnod by HIiary
Dato: 2024.12.10 09:39:20 --06'00' | | | | |----------------------|-----------------------------------------------------------------|--|--|--| | Title: | | | | | | cco | | | | | ## **This filing\*\* contains (check all applicable boxes):** - � (a) Statement of financial condition. - � (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 240.15c3-1 or 17 CFR 240.lSa-1, as applicable. - □(i) Computation of tangible net worth under 17 CFR 240.lSa-2. - D (j) 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. - □ **(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.lSa-4, as applicable. - □ (a) 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. - � (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. - □ (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.lSa-7, as applicable. - □ (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.lSa-7, as applicable. - � (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. - □ (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. - □ (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.lSa-7, as applicable. - 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 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 240.18o-7(d)(2), as applicable.* {2}------------------------------------------------ # Carver Edison Capital, LLC Statement of Financial Condition As of and for the year ended September 30, 2024 (With Reports of Independent Registered Public Accounting Firm Thereon) {3}------------------------------------------------ ### Carver Edison Capital, LLC As of and for the year ended September 30, 2024 #### Contents | Report of Independent Registered Public Accounting Firm | | |---------------------------------------------------------|-----| | Financial Statement | | | Statement of Financial Condition | 2 | | Notes to Financial Statement | 3-5 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) # **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Member of Carver Edison Capital, LLC: # **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Carver Edison Capital, LLC (the "Company") as of September 30, 2024, 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 Carver Edison Capital, LLC as of September 30, 2024 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 U.S. Securities and Exchange Commission ("SEC") 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 Carver Edison Capital LLC's auditor since 2024. Hauppauge, New York December 9, 2024 {5}------------------------------------------------ Statement of Financial Condition September 30, 2024 ### ASSETS | Cash
Prepaid expenses | \$
190,253
5,746 | |-------------------------------------------------------|------------------------| | TOTAL ASSETS | \$
195,999 | | LIABILITIES AND MEMBER'S EQUITY | | | LIABILITIES:
Accounts payable and accrued expenses | \$
- | | TOTAL LIABILITIES | - | | Member's Equity | 195,999 | | TOTAL LIABILITIES AND MEMBER'S EQUITY | \$
195,999 | See accompanying notes to financial statement {6}------------------------------------------------ ### Notes to Financial Statement For the year ended September 30, 2024 #### 1. Organization and Nature of Business Carver Edison Capital, LLC (The "Company"), a Delaware Limited Liability Company that was formed on May 21, 2021, is a broker-dealer registered with the U.S. Securities and Exchange Commission ("SEC") and is a member of the Financial Industry Regulatory Authority ("FINRA"), effective November 21, 2022. The Company conducts brokerage services related to employee stock purchase plans and other employer equity incentive plans. The Company does not take custody of customer cash or securities. The Company maintains offices in New York. The Company is a wholly owned subsidiary of Carver Edison, Inc. ("Parent"). #### 2. Summary of Significant Accounting Policies #### Basis of Accounting The financial statement is prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. #### Use of Estimates The preparation of the financial statement in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statement and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. #### Cash The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Cash consists of funds maintained in checking and money market accounts held at financial institutions. The Company's cash is held principally at one financial institution and at times may exceed federally insured limits. The Company has placed these funds in a high quality institution in order to minimize risk relating to exceeding insured limits. #### Income Taxes The Company is treated as a disregarded entity and has no direct federal, state, or city tax liabilities through September 30, 2024. The Company has adopted the tax provisions of Accounting for Uncertain Income Taxes which prescribes recognition thresholds that must be met before a tax position is recognized in the financial statement and provides guidance on de-recognition, classification, and interest and penalties. Under this guidance, an entity may only recognize or continue to recognize tax positions that meet a "more likely than not" threshold. At September 30, 2024, 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 re-evaluation as facts and circumstances may require. #### Revenue Recognition - ASC 606 The Company recognizes revenue in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 606, which 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 Company follows 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. Deferred revenues will be earned in a future period corresponding with the dates the specified obligations are satisfied. {7}------------------------------------------------ Notes to Financial Statement For the year ended September 30, 2024 #### Allowance for Credit Losses 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 underlying asset or entity). For financial assets measured at amortized cost (e.g. cash and accounts receivable), the Company has evaluated the expected credit losses based on the nature and contractual life or expected life of the financial assets, credit quality of the counter party and immaterial historic and expected losses. The Company concluded that there are de minimus expected credit losses and did not record a reserve for its cash balances. The Company continually monitors these estimates over the life of the related assets. #### 3. Indemnifications In the normal course of its business, the Company indemnifies and guarantees certain service providers against specified potential losses in connection with their acting as an agent of, or providing services to, the Company. The maximum potential amount of future payments that the Company could be required to make under these indemnifications cannot be estimated. However, 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 statement for these indemnifications. The Company provides representations and warranties to counterparties in connection with a variety of commercial transactions and occasionally indemnifies them against potential losses caused by the breach of those representations and warranties. These indemnifications generally are standard contractual terms and are entered into in the normal course of business. The maximum potential amount of future payments that the Company could be required to make under these indemnifications cannot be estimated. However, 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 statement for these indemnifications. {8}------------------------------------------------ ### Notes to Financial Statement For the year ended September 30, 2024 #### 4. Related Party Transactions The Company has entered into an expense sharing arrangement with the Parent and incurs a monthly allocation of rent, wages and overhead costs from this affiliate. This allocation was determined based upon the square footage needed by the Company to operate and the utilization of employee personnel to effectively manage the activities of the Company. In accordance with the expense sharing agreement, the Company pays the allocated expenses within 30 days of receipt of the invoice from Carver Edison, Inc. Through common ownership, Pelion Investment Advisors, Inc and First Liberties Financial are deemed to be related parties of the "Company". For the year ended September 30, 2024, the company did not have any transactions with the above related parties. #### 5. Accounts Receivable Accounts receivable are carried at net realizable value. Fees receivable are presented on the Statement of Financial Condition net of estimated allowance for expected credit losses. The Company had no outstanding receivables as of September 30, 2024. #### 6. Net Capital Requirement The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (15c3-1), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 800%. At September 30, 2024, the Company had net capital of \$190,253, which was \$90,253 in excess of its required minimum net capital of \$100,000. The Company's percentage of aggregate indebtedness to net capital was .01%. #### 7. Subsequent Events The Company has evaluated events and transactions that occurred between October 1, 2024 and December 9, 2024 which is the date the financial statements were available to be issued, for possible disclosure and recognition in the financial statement. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.