# FARINA & ASSOCIATES, INC. X-17A-5 (2025-06-24) — Broker-dealer annual report - Company: FARINA & ASSOCIATES, INC. - Form: X-17A-5 - Filed: 2025-06-24 - Period: 2025-03-31 - Accession: 0000857504-25-000001 - CIK: 857504 - File #: 8-41953 - Type: Broker-dealer - Material weakness: Yes - 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/857504/000085750425000001/farinapublic2025.pdf --- {0}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** *ⁱ* **ANNUAL REPORTS FORM X-17A-5 PARTIU FACING PAGE** 0MB APPROVAL 0MB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12 SEC FILE NUMBER 8-41953 **Information Required Pursuant to Rules 17a-S, 17a-12, and 18a-7 under the Securities Exchange Act of 1934** FILING FOR THE PERIOD BEGINNING **04/01 /24** MM/DD/VY AND ENDING **03/31 /25** MM/DD/VY **A. REGISTRANT IDENTIFICATION** NAME OF FIRM: FARINA AND ASSOCIATES INC. TYPE OF REGISTRANT (check all applicable boxes): GJ Broker-dealer D Security-based swap dealer D 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.) C/O BAYAT CONSULTING, 14 WALL STREET, 20TH FLOOR (No. and Street) NEW YORK NY 10005 (City) (State) (Zip Code) PERSON TO CONTACT WITH REGARD TO THIS Fl UNG ALAN KRIM 516-526-1586 akrim@farinaandassociates.com (No1m.e) (Area Cod" - TE>IE>phonE'! NumbE>r) (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) MAR 4 2009 3370 **Ir• of Registrafoo wrth PCAOB)iif applicable) FOR OFFICIAL USE ONLY [PCAOB Regi~rntioo N"mb~,** if **applicable)** I \* 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)(l)(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 c1,1rrently valid 0MB control number.** {1}------------------------------------------------ ## **OATH OR AFFIRMATION** | | I, Joe Stevens | | swear (or affirm) that, to the best of my knowledge and belief, the | | | | | |------|---------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--| | 3/31 | 2~
financial report pertaining to the firm of Farina and Associates Inc | | as of
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.
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'l,,,,,,uu u,t,_\,,~ | | | | | | | | This filing** contains (check all applicable boxesj: | | | | | | | | | Iii (a) Statement of financial condition. | | | | | | | | | Iii (b) Notes to consolidated statement of financial condition. | | | | | | | | D | | | (c) Statement of income (loss) or, ifthere is other comprehensive income in the period(s) presented, a statement of | | | | | | | comprehensive income (as defined in§ 210.1-02 of Regulation 5-X). | | | | | | | | D | (d) Statement of cash flows. | | | | | | | | D | (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. | | | | | | | | D | (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. | | | | | | | | D | (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. | | | | | | | | | Exhibit A to 17 CFR 240.18a-4, as applicable. | | □ (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or | | | | | | | □ (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.15c3-3. | | | | | | | | | □ (ml Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. | | | | | | | | | 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable. | | □ (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR | | | | | | D | exist. | | (o) Reconciliations, including appropriate explanations, of the FOCUS ~eport with computation of net capital or tangible net
worth under 17 CFR 240.15c3- 1, 17 CJ:R 240.1 8a-1, o r 17 CJ:R 240.18a-2, as applicable, and th<> r<>s<>rv<> r<>qu ir<>m<>nts undar 17
CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences | | | | | | 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 240.18a-7, as applicable. | | | | | | D | {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. | | | | | | | | | Iii (t) Independent public accountant's report based on an examination of the statement of financial condition. | | | | | | | | D | CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. | | (u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 | | | | | | | CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. | | □ (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 | | | | | | D | 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 | | | | | - 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. - □ (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), D (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. {2}------------------------------------------------ # FARINA & ASSOCIATES, INC. Statement of Financial Condition For the Year Ended March 31, 2025 {3}------------------------------------------------ ## FARINA & ASSOCIATES, INC. MARCH 31,2025 ## Iah!e 0 tc0 utents | Report oflndependent Registered Public Accounting firm | | |--------------------------------------------------------|-----| | Statement of Financial Condition | 2 | | 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 , 2025, 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, 2025 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 24, 2025 {5}------------------------------------------------ ### **FARINA & ASSOCIATES INC.** ## **STATEMENT OF FINANCIAL CONDITION MARCH 31, 2025** | ASSETS | | |------------------------------------------------------|---------------| | Cash | \$
11 ,205 | | Due From Clearing Broker | 70,059 | | Commissions recievable | 103,325 | | Due from stockholder | 46,600 | | Other Assets | 1,420 | | Total assets | \$
232,609 | | | | | LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities: | | | Accounts payable and accrued expenses | 32,029 | | Total liabilities | 32,029 | | 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 | {93,786) | | TOTAL STOCKHOLDERS' EQUITY: | 200,580 | | TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY: | \$
232,609 | See accompanying notes to financial statements {6}------------------------------------------------ ## FARINA & ASSOCIATES, INC. ### NOTES TO FINANCIAL STATEMENT ### MARCH 31, 2025 ### NOTE I - ORGANIZATION AND DESCRIPTION OF BUSINESS: Farina & Associates, Inc. (The "Company") is a New Yori, 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 IndustQ' Regulatory Authority, lo('. . ("FINRA") and the Securities Investors Protection Corporation ("SIPC"). The Company earns commissions as an introducing broker of securities transactions. The clearing broke1·idcaler carries all of the accounts of the cu;tomers and maintains and preserves all related books and records as are customarily kept by a clearing broker/dealer. NOTE 2 - SllM.MARY 01' SIGNIFICANT ACCOUNTING POL.ICrnS: ## **Basis of Presentation** The accompanying financial statements have been pre1mred on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America ("GAAP "). ## **Co1un1issions ·Bec, .. ivahle** The Company can-ies its commissions receivable at cost less an allowance for doubtful accounts. On a periodic basis, the Company evaluates its commissions receivable and establishes an allowance for doubtful accounts based on history of pastwriteoffs and collections and current credit conditions. No allowance for doubtful accounts was required at March 31, 2025. ### **Revenue Becoeuition** S('curities transactions (and the recognition of related income and expenses) are recorded on a trade date basis. The Company Nmplies with the Financial Accounting Standards Board (FASB) Accounting Standff!"ds Update (ASV) No. 2014-09, "R1!venm~ from Contrafts with Customers (Topic 606)." Topic 606 ASU No. 2014-09 establishes principles for recognizing re,·enue upon the transfer of promised goods or services to customers, in an amount that refle('.!S the expected consideration recdved in exchange for those goods or services. The Company has assessed the effect that Topic *606* (as amended) has on its result~ of operations, financial position and cash flows and has determined that all revenues have been fully earned as of March 31, 2025. The Company's (,xecution transactions generally settle T+2, upon whid1 no performance obligations n!main to fulfill the Company's obligations to its customers. **lic1,11tc\$ ff.re ,?urn,id for tH~rfonning cxc<.'.ution :,u,:n·iccs for cu~tonH:r bn,kcr-dealcrs .-1nd are recorded montl1ly upon satisfaction of the** n!lated performance obligations. During the twelve months ended March 31, 2025, three customers accounted for 35.51 %, 25.19% and 12.193%, respectively for a total of 73. 77% of total revenue. ### **Income Taxes** The Company has elected to be treated as an ''S" Corporation under the provisions of the Internal Revenue Code and New York State tax. regulations. Under the provisions, the Company does not pay federal or state corporate inc.ome tuxes on its taxable income. Instead the stockholders are lia ble for individual income taxes on their respec.tive shares of the Company's taxable income. The Company continues to pay New York City general corporation taxes {7}------------------------------------------------ ## FARINA & ASSOCIATES JNC, ## NOTES TO FINANCIAL STATEMENT MARCH 31. 2025 ### NOTE 2 - SUMMARY OF SIGN[FICANT ACCOUNTING POLICIES (CONTINUED): #### Segment reporting The Company is engaged in a single line of business as a securities broker-dealer, which is comprised of several classes of services, including principal transactions, agency transactions, and floor brokerage. The Company has identified its President as the chief operating decision maker ("CODM''), who uses net income to evaluate the results of the business, predominantly in the forecasting prncess, to manage the Company. Additionally, the C0DM uses excess net capital (see Note 5), which is not a measure of profit and loss, to make or,erational decisions while maintaining capital adequacy. such as whether to reinvest profits or pay dividends. The Co1111111ny's operations constitute a single operating segment and therefore, a single reportable segment, because the CODM manages the business aclh'ities using information of the Company as a whole. The accounting policies used to measure the prnfit and loss of the segment are the same as those described in the summary of significant accounting policies. ### (Jsr **of.Estimates** The preparation of financial statements and related disclosures in conformity with **GAAP** requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities. ,me! the disclosure of contingent assets and liabilities at the date of the financial statements, and th(, reported amounts ofinnHne and expenses during the reporting period. Accordingly, actual results c.ould differ from those estimates and such differences could be material. #### NOTE 3 - CONCENTRATIONS **O.F** CREDIT RISK: #### !.:.a.s..b. The Company maintains 1wincipally all cash balances in two financial institutions which, at times. may exceed the amount insured by the Federal Deposit Insurance Corporation. The 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. A.t March 31, 2025, the amount in excess of insured limits was \$0. ### NOTE 4 - HNANCIA.L STATEMENTS WITH OFF BALANCE SHEET CREDIT RISK: As a secu rities broker, the Company is engaged in buying and selling securities for a diverse group of institutional and individual inv!.'stors. Tht! Compauy introduces these transactions for clearance to another broker-dealer on a fully disclosed basis. The Company's exposure to credit risk associated with non-performance of custmners in fulfilling their contractual obligations pursuant to securities transactions can be directly impacted by volatile trading markets which may impair customers' ability Io their obligations to the Company and the Company's ab.ility to liquidate tht! collateral at an amount equal. to the original l,ontracted amount. The llgreement between tht• Company and its clearing broker provides that the Company is obligated to assume any exposure related to such non-performance by its customers. The Company seeks to control the aforementioned risks by requiring customers to maintain margin collateral in compliance with various 1·egufatory requirements and the c.learing broker's internal guidelines. The Company monitors its cusiomer activity by reviewing information it receh•es **from** its clearing broker on :l daily basis, and requil'ing customers to deposit additional collateral, or reduce positions, when necessary. {8}------------------------------------------------ ## NOTES TO FINANCIAL STATEMENT MARCH 3 L 2025 ## NOTE 5 - NET CAP ITAL REQUIRE1"1ENTS: The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (SEC Rnle 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. Rule I.5c3-1 also tlrovides that equity capital may not be withdrawn or cash distributions paid if the resulting net capital ratio would exceed IO to I. At March 31, 2025, the Company had net capital of \$122,544, which was Sll 7,544 in excess of its required net capital of S5,000. The Company's percentage of aggregate indebtedness to net capital was 26.14%. ## NOTE 6 - RECENTLY ISSUED ACCOUNTING PRONOlJNCEM.ENTS: The Financial Accounting Standards Board (the "FASB") has established the Accounting Standards Codification ("Codilication" 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 issuance of Accounting Standards Updates ("ASUs"). I