# EDGAR Filing Document

**Accession Number:** 0001067122
**File Stem:** 0001067122-23-000001
**Filing Date:** 2023-2
**Character Count:** 19908
**Document Hash:** aa904abeab88b3fbb21f71a5b8762d40
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001067122-23-000001.hdr.sgml**: 20230216

**ACCESSION NUMBER**: 0001067122-23-000001

**CONFORMED SUBMISSION TYPE**: X-17A-5

**PUBLIC DOCUMENT COUNT**: 2

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230216

**DATE AS OF CHANGE**: 20230216

**EFFECTIVENESS DATE**: 20230216

**PERIOD START**: 20220101

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** KIPPSDESANTO & COMPANY
- **CENTRAL INDEX KEY:** 0001067122
- **IRS NUMBER:** 202762668
- **STATE OF INCORPORATION:** VA
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** X-17A-5
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 008-51183
- **FILM NUMBER:** 23638196

**BUSINESS ADDRESS:**
- **STREET 1:** 8000 TOWERS CRESCENT DRIVE
- **STREET 2:** SUITE 1200
- **CITY:** TYSONS CORNER
- **STATE:** VA
- **ZIP:** 22182
- **BUSINESS PHONE:** 504-593-6190

**MAIL ADDRESS:**
- **STREET 1:** 8000 TOWERS CRESCENT DRIVE
- **STREET 2:** SUITE 1200
- **CITY:** TYSONS CORNER
- **STATE:** VA
- **ZIP:** 22182

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** COLONIAL CAPITAL PARTNERS, LLC
- **DATE OF NAME CHANGE:** 20080110

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** KIPPSDESANTO & COMPANY
- **DATE OF NAME CHANGE:** 20080109

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** COLONIAL CAPITAL PARTNERS, LLC
- **DATE OF NAME CHANGE:** 20050516

### Attached PDF Documents

**Attachment 1:** `KDCPUBLIC2022.pdf`

# UNITED STATES

# SECURITIES AND EXCHANGE COMMISSION

# Washington, D.C. 20549

# OMB APPROVAL

OMB Number: 3235-0123

Expires: Oct. 31, 2023

Estimated average burden

hours per response: 12

# ANNUAL REPORTS

# FORM X-17A-5

# PART III

# SEC FILE NUMBER

# 8-51183

# 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 1/1/2022 AND ENDING 12/31/2022

MM/DD/YY

MM/DD/YY

# A. REGISTRANT IDENTIFICATION

NAME OF FIRM: KippsDeSanto & Company

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.)

8000 Towers Crescent Drive, Suite 1200

| (No. and Street) |  |  |
| --- | --- | --- |
| Tysons Corner | VA | 22182 |
| (City) | (State) | (Zip Code) |

PERSON TO CONTACT WITH REGARD TO THIS FILING

Gabrielle Halprin

(504) 533-7377

gabrielle.halprin@capitalone.com

(Name)

(Area Code - Telephone Number)

(Email Address)

# B. ACCOUNTANT IDENTIFICATION

INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*

Keiter

| (Name - if individual, state last, first, and middle name) |  |  |  |
| --- | --- | --- | --- |
| 4401 Dominion Blvd. | Glen Allen | VA | 23060 |
| (Address) | (City) | (State) | (Zip Code) |
| 10/22/2003 |  | 80 |  |
| (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.

# OATH OR AFFIRMATION

I, Gabrielle Halprin, swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of KippsDeSanto & Company, as of 12/31, 2023, 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.

SWORN TO AND SUBSCRIBED
BEFORE ME THIS 16th DAY
OF February 2023

NOTARY PUBLIC

Gabrielle Halprin

Chief Financial Operations Officer

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.
☐ (l) 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 capital or tangible 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 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 240.18a-7, as applicable.
☐ (r) Compliance report in accordance with 17 CFR 240.17a-5 or 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 report or 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.
☐ (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-1e or 17 CFR 240.17a-12, as applicable.
☐ (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 240.18a-7(d)(2), as applicable.

# **KIPPSDESANTO & COMPANY**
(A Wholly Owned Subsidiary of Capital One, N.A.)

# FINANCIAL REPORT

Year Ended December 31, 2022
With Report of Independent Registered Public Accounting Firm

SEC ID 8 - 51183

Filed pursuant to Rule 17a-5(e)(3) as a PUBLIC DOCUMENT.

# **KIPPSDESANTO & COMPANY**
(A Wholly Owned Subsidiary of Capital One, N.A.)

# **Table of Contents**

|  | Page |
| --- | --- |
| Report of Independent Registered Public Accounting Firm | 1 |
| Financial Statement: |  |
| Statement of Financial Condition | 2 |
| Notes to Financial Statement | 3 |

Keiter
Your Opportunity Advisors

# REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors
of KippsDeSanto & Company

# Opinion on the Financial Statement

We have audited the accompanying statement of financial condition of KippsDeSanto & Company (the "Company") as of December 31, 2022, 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, 2022 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 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 the Company's auditor since 2019.

Glen Allen, Virginia
February 13, 2023

Certified Public
Accountants & Consultants
4401 Dominion Boulevard
Glen Allen, VA 23060
T:804.747.0000 F:804.747.3632

www.keitercpa.com

# **KIPPSDESANTO & COMPANY**  
(A Wholly Owned Subsidiary of Capital One, N.A.)

# Statement of Financial Condition  
December 31, 2022

# **Assets:**

| Cash | $ | 51,130,578 |
| --- | --- | --- |
| Accounts receivable |  | 91,507 |
| Other receivables |  | 26,291 |
| Deferred tax asset |  | 1,628,577 |
| Total assets | $ | 52,876,953 |

# **Liabilities:**

| Accrued expenses | $ | 108,235 |
| --- | --- | --- |
| Accrued compensation expenses |  | 14,028,176 |
| Deferred revenue |  | 571,411 |
| Due to affiliates |  | 7,415,838 |
| Total liabilities |  | 22,123,660 |

# **Stockholder's equity:**

| Common stock, no par value; 2,000,000 shares authorized; 1,363,153 issued and outstanding |  | - |
| --- | --- | --- |
| Additional paid-in capital |  | 7,207,138 |
| Retained earnings |  | 23,546,155 |
| Total stockholder’s equity |  | 30,753,293 |

| Total liabilities and stockholder’s equity | $ | 52,876,953 |
| --- | --- | --- |

See accompanying Notes to Financial Statement.

2

# **KIPPSDESANTO & COMPANY**  
(A Wholly Owned Subsidiary of Capital One, N.A.)

# Notes to Financial Statement

# **Note 1-Organization**

KippsDeSanto & Company (the “Company”) is a wholly owned subsidiary of Capital One, National Association (“CONA”). The Company is primarily engaged in investment banking and advisory services. The Company’s customers are located throughout the United States. Investment banking services are occasionally provided to companies outside of the United States. The Company is registered with the Securities and Exchange Commission as a broker-dealer and is a member of the Financial Industry Regulatory Authority, Inc. (“FINRA”).

# **Note 2-Summary of Significant Accounting Policies**

# **Basis of Accounting**

The financial statement of the Company is prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”).

# **Use of Estimates**

The preparation of financial statement in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statement and accompanying notes. While management makes its best judgment, actual results could differ from those estimates.

# **Cash on Deposit with Parent Company**

The Company considers all highly liquid investments with a stated maturity of three months or less when purchased to be cash equivalents. Cash includes amounts held at CONA, its parent company, totaling $2,452,711 at December 31, 2022. CONA is a major financial institution and is insured up to $250,000 by the Federal Deposit Insurance Corporation.

# **Accounts Receivable**

Accounts receivable are non-interest-bearing uncollateralized obligations receivable in accordance with the terms agreed upon with each client. The Company follows ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): *Measurement of Credit Losses on Financial Instruments*. This guidance requires use of the current expected credit loss model that is based on expected losses (net of expected recoveries), rather than incurred losses, to determine our allowance for credit losses on financial assets measured at amortized cost, certain net investments in leases and certain off-balance sheet arrangements.

3

# **KIPPSDESANTO & COMPANY**  
(A Wholly Owned Subsidiary of Capital One, N.A.)

# Notes to Financial Statement

The Company has no material historical credit losses. There are no current indications of non-receipt from counterparties. The Company projects no probability of future losses related to these balances. Management has determined that these receivables have minimal credit risk and, therefore, no allowance was deemed necessary as of December 31, 2022.

# **Property and Equipment**

The Company transferred all property and equipment to CONA during 2022.

# **Leases**

During 2022, the Company assigned its lease to its parent, CONA. Prior to the assignment, the Company recorded all leasing activity in accordance with ASU 2016-02-Leases (Topic 842).

# **Income Taxes**

The Company is included in Capital One Financial Corp’s (“Capital One”) consolidated federal income tax return, but files separate state income tax returns. Capital One allocates federal income tax expense to the Company using a separate return basis. The Company is reimbursed by Capital One for federal income tax losses, if applicable. Amounts owed to or due from Capital One for federal income taxes are reported as a component of due to or from affiliates in the accompanying financial statement. Taxes payable amounts included in due to affiliates totaled $6,551,945 at December 31, 2022.

Deferred tax assets and liabilities are based on differences between the financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse.

The Company has evaluated the effect of accounting guidance surrounding uncertain income tax positions and concluded that the Company has no significant financial statement exposure to uncertain income tax positions as of December 31, 2022.

# **Note 3-Related Party Transactions**

Various administrative expenses are paid on behalf of the Company by CONA, under a Master Services Agreement between the Company, CONA and various affiliates. These administrative expenses are reimbursed by the Company to CONA on a monthly basis. In addition, the Company pays a management fee to CONA based on an internally calculated allocation of overhead cost.

4

# **KIPPSDESANTO & COMPANY**  
(A Wholly Owned Subsidiary of Capital One, N.A.)

# Notes to Financial Statement

The Company sponsors an incentive plan for qualified employees. A portion of individual employee's incentive compensation may be awarded in the form of restricted share units (the 'Units') of Capital One and is payable to employees according to a vesting schedule.

Various administrative services are provided to the Company by associates of Capital One Securities, Inc. ('COS'), an affiliated broker-dealer. The Company reimburses COS for these services on a monthly basis.

# **Note 4-Commitments and Contingencies**

From time to time, the Company is involved in litigation that it considers to be incidental to its business. The Company is not presently involved in any legal proceedings which management expects individually or in the aggregate to have a material adverse effect on its financial statement.

The Company has contracts with its vendors for various services. The Company had no minimum commitments under these contracts as of December 31, 2022.

# **Note 5-Concentration**

Approximately 82% of total accounts receivable are due from one client as of December 31, 2022.

# **Note 6-Net Capital**

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 15 to 1. At December 31, 2022, the Company had net capital of $29,006,918 which was $27,532,007 in excess of the required minimum net capital of $1,474,911. The Company's net capital ratio was 0.76 to 1.

The Company has no obligation under Rule 15c3-3 to prepare the Computation for Determination of Reserve Requirements Pursuant to Rule 15c3-3.

# **Note 7-Subsequent Events**

In accordance with U.S. GAAP, the Company evaluates subsequent events that have occurred after the financial statement date but before the financial statement is issued. There are two types of subsequent events: (1) recognized, or those that provide additional evidence about conditions that existed at the date of the financial statement, including estimates inherent in the process of preparing the financial statement, and (2) nonrecognized, or those that provide evidence about conditions that did not exist at the date of the financial statement condition but arose after that

5

# **KIPPSDESANTO & COMPANY**  
(A Wholly Owned Subsidiary of Capital One, N.A.)

# Notes to Financial Statement

date. The Company evaluated subsequent events through February XX, 2023, the date the financial statement was issued.

Based on the evaluation, the Company did not identify any recognized or nonrecognized subsequent events that would have required adjustment to the financial statement.

6

### UNITED STATES SECURITIES AND EXCHANGE COMMISSION
**Washington, D.C. 20549**

## FORM X-17A-5

### ANNUAL AUDITED REPORT

### Filer Information

**Filer CIK:** 0001067122

**Filer CCC:** XXXXXXXX

**Is this a LIVE or TEST filing?:** LIVE

**Would you like a Return Copy?:** No

### Submission Information

**Report Period Begin Date:** 01-01-2022

**Report Period End Date:** 12-31-2022

**Type of Registrant:** Broker-dealer

**Any material weaknesses identified?:** No

### Registrant Identification

**Name of Broker-Dealer:** KIPPSDESANTO & COMPANY

**Business Address:** 8000 TOWERS CRESCENT DRIVE, SUITE 1200, TYSONS CORNER, VA, 22182

**Contact Person:** Gabrielle Halprin

**Contact Phone:** 504-533-7377

### Independent Public Accountant Identification

**Accountant Name:** Keiter

**Accountant Address:** 4401 Dominion Blvd., Glen Allen, VA, 23060

**Accountant Type:** Certified Public Accountant

### OATH OR AFFIRMATION

I, **Gabrielle Halprin**, swear (or affirm) that, to the best of my knowledge and belief, the accompanying financial statements and supporting schedules pertaining to the firm of **KIPPSDESANTO & COMPANY**, as of **12-31-2022**, are true and correct.

**Signature:** Gabrielle Halprin

**Title:** Chief Financial Operations Officer

**Notarized:** Yes