# EDGAR Filing Document

**Accession Number:** 0001503999
**File Stem:** 0001503999-23-000002
**Filing Date:** 2023-2
**Character Count:** 18854
**Document Hash:** ca5f686fbda4ff892d21325a5f23d408
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001503999-23-000002.hdr.sgml**: 20230216

**ACCESSION NUMBER**: 0001503999-23-000002

**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:** EQUILIBRIUM CAPITAL SERVICES, LLC
- **CENTRAL INDEX KEY:** 0001503999
- **IRS NUMBER:** 273612041
- **STATE OF INCORPORATION:** OR
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** X-17A-5
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 008-68722
- **FILM NUMBER:** 23640022

**BUSINESS ADDRESS:**
- **STREET 1:** 411 NW PARK AVE, SUITE 401
- **CITY:** PORTLAND
- **STATE:** OR
- **ZIP:** 97209
- **BUSINESS PHONE:** 503-708-1355

**MAIL ADDRESS:**
- **STREET 1:** 411 NW PARK AVE, SUITE 401
- **CITY:** PORTLAND
- **STATE:** OR
- **ZIP:** 97209

### Attached PDF Documents

**Attachment 1:** `ECS2022Financials.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

8-68722

# 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

01/01/22

AND ENDING

12/31/22

MM/DD/YY

MM/DD/YY

# A. REGISTRANT IDENTIFICATION

NAME OF FIRM: Equilibrium Capital Services 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.)

411 NW Park Ave, Suite 401

| (No. and Street) |  |  |
| --- | --- | --- |
| Portland | Oregon | 97209 |
| (City) | (State) | (Zip Code) |
| PERSON TO CONTACT WITH REGARD TO THIS FILING |  |  |
| Celeste Moye | 415-672-0559 | celestecpa@comcast.net |
| (Name) | (Area Code - Telephone Number) | (Email Address) |

# B. ACCOUNTANT IDENTIFICATION

INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*

Moss Adams LLP

| (Name - if individual, state last, first, and middle name) |  |  |  |
| --- | --- | --- | --- |
| 14555 Dallas Pkwy, Suite 300 | Dallas | Texas | 75254 |
| (Address) | (City) | (State) | (Zip Code) |
| 10/16/2003 |  | 659 |  |
| (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, William C. Campbell, swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of Equilibrium Capital Services, LLC, as of December 31, 2022 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.

![img-0.jpeg](img-0.jpeg)

Signature: W.C. Campbell
Title: CEO, and CEO

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.

# **Equilibrium Capital Services, LLC**

Report Pursuant to Rule 17a-5(d)

For the Year Ended December 31, 2022

# Table of Contents

| Report of Independent Registered Accounting Firm | 1 |
| --- | --- |
| Financial Statements |  |
| Statement of Financial Condition | 2 |
| Statement of Income | 3 |
| Statement of Changes in Members' Equity | 4 |
| Statement of Cash Flows | 5 |
| Notes to Financial Statements | 6 |
| Supplementary Information |  |
| Schedule I - Computation of Net Capital under Rule 15c3-1 of the Securities and Exchange Commission | 9 |
| Schedule II - Computation for Determination of the Reserve Requirements and Information Relating to Possession or Control Requirements for Brokers and Dealers under Rule 15C3-3 of the Securities and Exchange Commission | 10 |
| Exemption Report |  |
| Report of Independent Registered Public Accounting Firm on Equilibrium Capital Services, LLC's Exemption Report | 11 |
| Equilibrium Capital Services, LLC's Exemption Report | 12 |

MOSSADAMS

# Report of Independent Registered Public Accounting Firm

Equilibrium Capital Services, LLC

## Opinion on the Financial Statements

We have audited the accompanying statement of financial condition of Equilibrium Capital Services, LLC (the Company) as of December 31, 2022, the related statements of income, changes in member’s equity, and cash flows for the year then ended, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2022, and the results of its operations and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

## Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements 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 statements are 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 statements, whether due to error or fraud, and performing procedures to respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. 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 statements. We believe that our audit provides a reasonable basis for our opinion.

## Opinion on the Supplementary Information

The supplementary information in Schedules I and II has been subjected to audit procedures performed in conjunction with the audit of the Company’s financial statements. The information in Schedules I and II is the responsibility of the Company’s management. Our audit procedures include determining whether the information in Schedules I and II reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in Schedules I and II. In forming our opinion on the information in Schedules I and II, we evaluated whether the information in Schedules I and II, including its form and content, is presented in conformity with 17 C.F.R. §240.17a-5. In our opinion, the information in Schedules I and II is fairly stated in all material respects in relation to the financial statements as a whole.

*Moss Adams LLP*

February 14, 2023

We have served as the Company’s auditor since 2018.

1

# **Equilibrium Capital Services, LLC**  
**Statement of Financial Condition**  
**December 31, 2022**---

# **ASSETS**

| Cash | $1,467,503 |
| --- | --- |
| Prepaid expense | 13,688 |
| Total assets | $1,481,191 |

# **LIABILITIES AND MEMBER'S EQUITY**

# **Liabilities**

| Accounts payable and accrued expenses | $3,870 |
| --- | --- |
| Payable to related party, net | 4,755 |
| Total liabilities | 8,625 |

| Member's equity | 1,472,566 |
| --- | --- |

| Total liabilities and member's equity | $1,481,191 |
| --- | --- |

*The accompanying notes are an integral part of these financial statements.*

2

# **Equilibrium Capital Services, LLC**  
**Statement of Income**  
**For the Year Ended December 31, 2022**---

# **REVENUES**

| Intercompany advisory services | $1,560,000 |
| --- | --- |
| Interest income | 50 |
| Total revenues | 1,560,050 |

# **EXPENSES**

| Employee compensation and benefits | 1,217,163 |
| --- | --- |
| Occupancy | 117,415 |
| Professional fees | 67,548 |
| Regulatory expenses | 19,728 |
| Other operating expenses | 2,511 |
| Total expenses | 1,424,365 |
| Net income | $135,685 |

*The accompanying notes are an integral part of these financial statements.*

3

# Equilibrium Capital Services, LLC
Statement of Changes in Member's Equity
For the Year Ended December 31, 2022

|  | Member's Equity |
| --- | --- |
| Balance at December 31, 2021 | $1,336,881 |
| Member's distributions | - |
| Net income | 135,685 |
| Balance at December 31, 2022 | $1,472,566 |

*The accompanying notes are an integral part of these financial statements.*

4

# **Equilibrium Capital Services, LLC**  
**Statement of Cash Flows**  
**For the Year Ended December 31, 2022**---

# **CASH FLOW FROM OPERATING ACTIVITIES**

| Net income | $ | 135,685 |
| --- | --- | --- |
| Adjustments to reconcile net income to net cash used in operating activities: |  |  |
| (Increase) Decrease in assets: |  |  |
| Prepaid expense |  | 1,251 |
| Increase (Decrease) in liabilities: |  |  |
| Accounts payable and accrued expenses |  | (800) |
| Payable to related party |  | (46,951) |
| Net cash provided by operating activities |  | 89,185 |
| NET CHANGE IN CASH |  | 89,185 |
| Cash at beginning of year |  | 1,378,318 |
| Cash at end of year | $ | 1,467,503 |

*The accompanying notes are an integral part of these financial statements.*

5

# **Equilibrium Capital Services, LLC**  
**Notes to Financial Statements**  
**December 31, 2022**---

# 1. GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

### *Organization*

Equilibrium Capital Services, LLC (the 'Company') was organized in the State of Oregon on October 1, 2010. The Company is a registered broker-dealer in securities under the Securities and Exchange Act of 1934, a member of the Financial Industry Regulatory Authority ('FINRA'), and a member of the Securities Investor Protection Corporation ('SIPC'). The Company is a wholly-owned subsidiary of Equilibrium Capital Group, LLC (the 'Member').

The Company is engaged in business as a securities broker-dealer that provides several classes of services, including private placements, merger and acquisitions advisory services, and broker selling tax shelters or limited partnerships. For the year ended December 31, 2022, the Company's income was derived primarily from advisory services revenue performed in connection with capital raising for the Member and its affiliated funds and vehicles.

Under its membership agreement with FINRA and relying on Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5, the Company (1) does not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, (2) does not and will not carry accounts of or for customers, and (3) does not and will not carry PAB accounts. Other than fixed fee merger and acquisition advisory services provided to the Member, the Company limits its business activities exclusively to effecting securities transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company.

### *Summary of Significant Accounting Policies*

*Presentation* - The presentation of financial statements 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 disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

*Revenue Recognition* - The Company charges fees in accordance with terms stipulated in its engagement contracts. Fees are recognized as earned and per the fee schedule stipulated in the Member's or client's engagement contracts. For the year ended December 31, 2022, the Company's only revenue producing contracts were with its Member - see Note 3. The Company performs services for its customers on an ongoing basis; accordingly the Company satisfies its performance obligations each month and thus recognizes its service fee on a monthly basis.

The timing of the Company's revenue recognition may differ from the timing of payment by the Company's customers. The Company records a receivable when revenue is recognized prior to payment and has an unconditional right to payment. Alternatively, when payment precedes the provision of the related services, the Company records deferred revenue until the performance obligations are satisfied. The Company did not have any receivables from contracts with customers or deferred revenue as of December 31, 2022.

Economic conditions that may affect the Company's performance primarily include the general economic and market conditions in the United States, specifically in the agriculture infrastructure, wastewater, energy facilities, and permanent crops industries.

*Private Placement Agreement* - The Company has a private placement agreement with a third party and is entitled to earn a residual placement fee equal to a percentage of future equity commitments investors make to any fund, special purpose entity, collective investment vehicle, or similar entity that is advised or managed by the third party or any of its affiliates, or any person

6

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

## FORM X-17A-5

### ANNUAL AUDITED REPORT

### Filer Information

**Filer CIK:** 0001503999

**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:** EQUILIBRIUM CAPITAL SERVICES, LLC

**Business Address:** 411 NW PARK AVE, SUITE 401, PORTLAND, OR, 97209

**Contact Person:** Celeste Moye

**Contact Phone:** 415-672-0559

### Independent Public Accountant Identification

**Accountant Name:** Moss Adams LLP

**Accountant Address:** 14555 Dallas Pkwy, Suite 300, Dallas, TX, 75254

**Accountant Type:** Certified Public Accountant

### OATH OR AFFIRMATION

I, **William C. Campbell**, swear (or affirm) that, to the best of my knowledge and belief, the accompanying financial statements and supporting schedules pertaining to the firm of **EQUILIBRIUM CAPITAL SERVICES, LLC**, as of **12-31-2022**, are true and correct.

**Signature:** William C. Campbell

**Title:** CEO

**Notarized:** Yes