# FARINA & ASSOCIATES, INC. X-17A-5 (2024-06-28) — Broker-dealer annual report - Company: FARINA & ASSOCIATES, INC. - Form: X-17A-5 - Filed: 2024-06-28 - Period: 2024-03-31 - Accession: 0000857504-24-000001 - CIK: 857504 - File #: 8-41953 - Type: Broker-dealer - Material weakness: No - Auditor: Nawrocki Smith LLP - Auditor location: Hauppauge, NY - Contact: Alan Krim - Phone: 5165261586 - Email: akrim@farinaandassociates.com - Website: farinaandassociates.com - Signed by: Joe Stevens (Pres/CEO) Original filing: https://www.sec.gov/Archives/edgar/data/857504/000085750424000001/farinapublic24.pdf --- {0}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, O.C. 20549** # **ANNUAL REPORTS FORM X-17A-5 PART** Ill 0MB APPROVAL 0MB Number: 3235-0123 Expires; Nov. 30, 2026 Estimated average burden hours per response: 12 > SEC FILE NUMBER 8-41953 **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 **04/01 /23** AND ENDING **03/31 /24** MM/DD/YY MM/DD/YY **A. REGISTRANT IDENTIFICATION** # NAME OF FIRM: FARINA AND ASSOCIATES INC. TYPE OF REGISTRANT {check all applicable boxes): 0 Broker-dealer D Security-based swap dealer D Major security-based swap participant D Check here if respondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) # C/O BA YA T CONSUL TING, 14 WALL STREET, 20TH FLOOR | | (No. and Street) | | | | | |----------------------------------------------|---------------------------------------------------------------------------|-------------------------------|--|--|--| | NEWYORK | NY | 10005 | | | | | (City) | (State) | (Zip Code) | | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | ALAN KRIM | 516-526-1586 | akrim@farinaandassociates.com | | | | | (Name) | (Area Code -Telephone Number) | (Email Address) | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | | | NAWROCKI SMITH LLP | | | | | | | | (Name - if individual, state last, first, and middle name) | | | | |-----------------------------------------------|------------------------------------------------------------|--------------------------------------------|------------|--| | 100 MOTOR PARKWAY SUITE 580 HAUPPAUGE | | NY | 11788 | | | (Address) | (City) | (State) | (Zip Code) | | | MAR4 2009 | | 3370 | I | | | rte of R,gistcafoo with PCAOB){if applicable) | | {PCAOB Registratioo N,mbe,, 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-S(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 0MB control number. {1}------------------------------------------------ # OATH OR AFFIRMATION | Joe Stevens | | swear (or affirm) that, to the best of my knowledge and belief, the | | |----------------------------------------------------------------------|-----|-----------------------------------------------------------------------------------------------------------------------------|-------| | financial report pertaining to the firm of Farina and Associates Inc | | | as of | | 3/31 | | 2 024 | | | | | partner, officer, director, or equivally get the case may be, has any proprietary interest in any account classified solely | | | as that of a customer. | | | | | | | | | | | | Signature: | | | | SIV | | | | | | Title: | | | | | | | # This filing \*\* contains (check all applicable boxes): Notary Public - (a) Statement of financial condition. - (b) Notes to consolidated statement of financial condition. - [] (c) Statement of income (loss) or, if there is other comprehensive 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. RES 03/30/2012020 - [ (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. - [] {} 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. - [ (I) 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 (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-2, 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 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 accountants 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 240.17a-12, as applicable. - □ (y) Report describing any material inadequacies 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). - O (z) Other: - \*\* To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(c)(2) or 17 CFR 240.18a-7(d)(2), os applicable. {2}------------------------------------------------ # FARINA & ASSOCIATES, INC. Statement of Financial Condition For the Year Ended March 31, 2024 {3}------------------------------------------------ # FARINA & ASSOCIATES. INC. MARCH 31,2024 ## Table ofContents | Report of Independent Registered Public Accounting Firm | | |---------------------------------------------------------|-----| | Statement of Financial Condition | | | Notes of Financial Statement | 3-5 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) # **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Stockholders of Farina & Associates, Inc.: # **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Farina & Associates, Inc. (the "Company") as of March 31, 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 the Company as of March 31, 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 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 Farina & Associates, lnc.'s auditor since 2024. Hauppauge, New York June 28, 2024 {5}------------------------------------------------ #### **FARINA & ASSOCIATES INC.** ## **STATEMENT OF FINANCIAL CONDITION MARCH 31 , 2024** | ASSETS | | |----------------------------------------------|---------------| | Cash | \$
13,455 | | Due From Clearing Broker | 83,747 | | Commissions recievable | 87,413 | | Due from stockholder | 15,000 | | Other Assets | 2,860 | | Total assets | \$
202,475 | | | | | LIABILITIES AND STOCKHOLDERS' EQUITY | | | Liabilities: | | | Accounts payable and accrued expenses | 37,362 | | Total liabilities | 37,362 | | Commitments and Contingencies | | | STOCKHOLDERS' EQUITY: | | | Common Stock, no par value, 200 shares | | | authorized, 10 shares issued and outstanding | 30,000 | | Additional paid-in capital | 264,366 | | Retained earnings | (129,253) | | TOTAL STOCKHOLDERS' EQUITY: | 165,113 | | TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY: | \$
202,475 | See accompanying notes to financial statements {6}------------------------------------------------ ### FARINA & ASSOCIATES., INC. #### NOTES TO FINANCIAL STATEMENT #### MARCH 31, 2024 #### NOTE I - ORGANIZATION AND DESCRIPTION O.F BUSINESS: Farina & Associates, Jnc. (The "Company") is a New York corporation formed in 1989, for the purpose of conducting business on the floor of the New York Stock Exchange ("NYSE"). The Company is registered as a broker-dealer with the Securities and Exchange Commission ("SEC") and is a member of both the Financial Industry Regulatory Authority, In(,. ("l'INRA ") and the Securities Investors Protection Corporation ("SIPC"). The Corn pany earns commissions as an introducing hroker of securities transactions. The clearing broker/dealer carries all of the accounts of the customers and maintains and preserves all related books and records as are customarily kept by a clearing broker/dealer. NOTE 2 - SUMMARY OF SIGN.IFJCANT ACCOUNTING .POLICIES: ## **Has is of rn~s,~ntation** The accompanying financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America ("GA.,AP "). #### **i\rronnts Bereivahle** The Company carries its accounts rccci\'ablc at cost less an allowance for doubtful accounts. On a periodic hasis, the Company evaluates its accounts reccivab.le and establishes an allowance for doubtfu.l accounts based on history of past write-offs and collections and current credit conditions. No allowance for doubtful accounts was required at March 31, 2023. #### **neven11r Beroenitiou** Securities transactions (and the recognition of re.lated income and expenses) arc recorded on a trade date basis. T he Company complies with the Financial Accounting Standards Hoard (FASB) Acwunting Standards Update (ASlf) No. 2014-09, "Rtivenue from Contra(·ts with Customers (Topic 60(i)." Topic (i06 ASll No. 20U-09 establishes principles for recognizing revenue upon tlH? transfer of promised goods or scrvi1'.es to customt?rs, in an amount that re.fleets the expected consideration received in exchange for those goods or services. The Company has assessed the effect that Topic *606* (as amended) has on its results of operations, financial position and cash !lows and has determined that all revenues have been fully earned as of March 31, 2024. The Company's execution tnrnsadions generally settle T+2, upon which no performance obligations remain to fulfill the Company's obligations to its customers. Rcl>atl,s arc canwa ror JH'rforming cxceut1on services ror customer tiro1,cr-11calers ana are rccorae!l montllly upon satisfaction of the rclatt?d performance obligations. During the twelve months ended March 31, 2024, three customers accounted for 26.12%, 22.08% and 18.00%, respectively for a total of 66.20% of total revenue. {7}------------------------------------------------ ## NOTES TO FINANCIAL STATEMENT MARCH 3 l. 2024 #### NOTE 2 - SUM.MARY (JF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): #### **·1 ncom,~ ·raxes** The Company has elected to be treated a.~ an "S" Corporation under the provisions of the Internal Revenue Code and New York State tax regulations. Fnder the pnwisions, the Company does not pay federal or state corporate income taxes on its taxable incom1·. Instead the stocl,holders arc liable for individual income taxes on their· respective shares of the Company's taxable income. The Company continues to pay Nt\W York City general corpo.-ation taxes #### JJse of Estimate• The preparation of financia l statements and relMecl disclosures **in** conformity with **GAAP** requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities. and the disclosure of contingent assets and liabilities at the date of the finandal statl'ments, and the reported amounts of income and expenses du1·in g the reporting period. Accordingly, actua l results could differ from those estinrntes and such differences could be material. #### NOTE 3 - CONCENTRATIONS OF CREDIT RISK: # ~ The Company maintains principally all cash balances in two financial institutions which, at times, may exceed the amount insured by the Federal Deposit Insurance Corporation . Thl' exposure to the Company is solely dependent upon daily bank balances and the strength of the financial institutions. The Company has not incurred any losses and does not expect to incur any losses on these accounts. At March 31, 2023, the amount in excess of insured limits was \$0. #### NOTE 4 - FINANCIAL STATEMENTS **WITH** OFF BALANCE SHEET CREDIT RISK: As a sernrities broker, the Company is engaged in buying and selling secur.ities for a diverse group of institutional and individual investors. The Company introduces these transactions for clearnm,e to another broker-dealer on a fully disclosed basis. The Company's exposure to credit risk associated with non-performance of customers in fulfilling their contra ctua l obligations **pu••-~ucH,t to ~£"<:>111•iti'-'!.': h·1u,s:11c-tion .~ cu n he tr::uJing m~rkets which may imn~ir customers' ability** lo thei1· obligations to the Company and the Company's ability to liquidate the collateral at an amount equal to the original contracted amount. The agreement between the Company and its clearing broker provides that the Company is obligated to assume any exposure related to such non-performance by i'ts customers. The Company seeks t·o control the aforementioned risks by requiring customers to maintain margin collateral in compliance with various regulatory requirements nnd the clearing broker's internal guidelines. The Company monitors its customer activity by reviewing information it receives from its clearing hroker on a daily basis, and requiring customers to deposit additional collateral, or reduce positions, when necessary. {8}------------------------------------------------ ## NOTES TO FINANCIAL STATEMENT MARCH 3 L 2024 ## NOTE 5 - NET CAP ITAL REQUIREMENTS: T he Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (SEC Ruic 15<'.3-l), wh.ich requires the maintt!nance of minimum net capital, and requires that the ratio of aggregate indebtedness to net capital, both as defincd,shall not exceed 15 to I. Rule l.5c3-.l also provides that equity capital may not be withdrawn or cash distributions paid if the resulting net capital ratio would exceed 10 to 1. At March 31, 2023, the Company bad net capital of \$112,112, which was \$107,112 in excess of its required uet capital ofS5.000. The Company's percentage of aggregate .indebtedness to net capital was 33.32'¾,. ### NOTE 6 - RECENTLY ISSUED ACCOUNTING PRONOUNCEl\.IENTS: The Financial Accounting Standards Board (the "FASB") has established the Accounting Standards Codification ("Codification" or "ASC") as the authoritative source of generally accepted accounting principles ("GAAP") recognized by the FASB. The principles embodied in the Codification are to be applied by non governmental entities in the preparation of financial statements in accordance with GAAP in the United States. New accounting pronouncements are incorporated into the ASC through the issuanct~ of Accounting Standards Updates ("ASUs" ). For the y1?ar ending March 31, 2023, various ASUs issued by the l'ASH were either newly issued or had effective implementation dates that would require their provisions to he reflected in the financial statements for th e year that ended. The Company lrns either evaluated or is curn~ntly evaluating the implications, if any, of eac.h of these pronouncements and the possible impact they may have on the Company's financial statements. ln most cases, management has determined that the pronouncement has either limited or no application to the Company and, in all cases, implementation would not have a material impact on the financi al statements taken as a whole. ### **NOTE** 7 - **RELATED PARTY:** The Company loaned its minority stockhold er \$15,000, which was ou tstanding at March 31, 2024 and is payable on demand. ### **NOTE 8** - **COMMITMENTS AND CONTIGENCIES:** In the ordinary course of business, the Company is subject to inquiries from certain regulators. There are no 11ending regulatory **irn1uirie:s to '\-Yhich the Con1pany is a part:,-· for ,-yhich 1nanagement bclicYcs the ultin:utte outc.ome ~vould h~ve ,, nHtteri.al \$l.Ch•tu•se** effect on its financ.ial position. The Company had no significant contingent liabilities requiring disclosures in the financia l statements ### **NOTE** 9 - **SUBSEQUENT EVENTS:** The company has evaluated events and transactions that OC\:urred through June 28, 2024, which is the date the financial statements were available to be **issued,** for possible disclosure and recognition in the financial statements. were ava ilable to be issued, for possible disclosure and recognition in the financial statements Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.