# GRODSKY ASSOCIATES, INC. X-17A-5 (2022-04-06) — Broker-dealer annual report

- Company: GRODSKY ASSOCIATES, INC.
- Form: X-17A-5
- Filed: 2022-04-06
- Period: 2021-12-31
- Accession: 0000879222-22-000002
- CIK: 879222
- File #: 8-44131
- Type: Broker-dealer
- Material weakness: No
- Auditor: michael t remus cpa
- Auditor location: HAMILTON, NJ
- Contact: sheldon grodsky
- Phone: 973-243-0300
- Signed by: SHELDON GRODSKY (PRESIDENT)

Original filing: https://www.sec.gov/Archives/edgar/data/879222/000087922222000002/grodskyfix.pdf

---

{0}------------------------------------------------

|                                                                                                                                                                                                                                                                                                                                 | UNITED STATES                                                |                        | 0MB APPROVAL                                                                                          |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------|------------------------|-------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                 | SECURITIES AND EXCHANGE COMMISSION<br>Washington, O.C. 20549 |                        | 0MB Number: 3235-0123<br>Expires: Oct. 31, 2023<br>Estimated average burden<br>hours per response: 12 |
|                                                                                                                                                                                                                                                                                                                                 | ANNUAL REPORTS                                               |                        | SEC FILE NUMBER                                                                                       |
|                                                                                                                                                                                                                                                                                                                                 | FORM X-17A-5                                                 |                        | 8-44131                                                                                               |
|                                                                                                                                                                                                                                                                                                                                 | PART tll                                                     |                        |                                                                                                       |
| Information Required Pursuant to Rules 17a-S, 17a•12, and 18a-7 under the Securities Exchange Act of 1934<br>FILING FOR THE PERIOD BEGINNING 01/01/2021                                                                                                                                                                         | FACING PAGE                                                  | AND ENDING 12f31 f2021 |                                                                                                       |
|                                                                                                                                                                                                                                                                                                                                 | MM/0D/YV                                                     |                        | MM/00/YV                                                                                              |
|                                                                                                                                                                                                                                                                                                                                 | A. REGISTRANT IDENTIFICATION                                 |                        |                                                                                                       |
| NAME oF FIRM: Grodsky Associates Inc.                                                                                                                                                                                                                                                                                           |                                                              |                        |                                                                                                       |
| TYPE OF REGISTRANT (check all applicable boxes):<br>Iii Broker-dealer<br>D Check here if respondent is also an OTC derivatives dealer                                                                                                                                                                                           | D Security-based swap dealer                                 |                        | □ Major security-based swap participant                                                               |
|                                                                                                                                                                                                                                                                                                                                 |                                                              |                        |                                                                                                       |
|                                                                                                                                                                                                                                                                                                                                 |                                                              |                        |                                                                                                       |
| 29 Longview Street                                                                                                                                                                                                                                                                                                              |                                                              |                        |                                                                                                       |
|                                                                                                                                                                                                                                                                                                                                 | (No. and Street)                                             |                        |                                                                                                       |
| West Orange<br>(City)                                                                                                                                                                                                                                                                                                           | NJ<br>(State)                                                |                        | 07052<br>(Zip Code)                                                                                   |
|                                                                                                                                                                                                                                                                                                                                 |                                                              |                        |                                                                                                       |
|                                                                                                                                                                                                                                                                                                                                 |                                                              |                        |                                                                                                       |
| Sheldon Grodsky                                                                                                                                                                                                                                                                                                                 | 973-243-0300<br>(Area Code - Telephone Number)               |                        | (Email Address)                                                                                       |
|                                                                                                                                                                                                                                                                                                                                 | B. ACCOUNTANT IDENTIFICATION                                 |                        |                                                                                                       |
|                                                                                                                                                                                                                                                                                                                                 |                                                              |                        |                                                                                                       |
|                                                                                                                                                                                                                                                                                                                                 | (Name - if individual, state last, first, and middle name)   |                        |                                                                                                       |
|                                                                                                                                                                                                                                                                                                                                 | Hamilton Square                                              | NJ                     | 08690                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                 | (City)                                                       | (State)<br>3598        | (Zip Code}                                                                                            |
| ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.)<br>PERSON TO CONTACT WITH REGARD TO THIS FILING<br>(Name)<br>INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*<br>Michael T Remus CPA<br>PO Box 2555<br>(Address)<br>02/23/2010<br>(Date of Registration wlth PCAOB){lf aoollcable) | FOR OFFICIAL USE ONLY                                        |                        | (PCAOB Registration Number, if applicable)                                                            |

CFR 240.17a-S(e)(l)(li), If applicable.

Persons who are to respond to the collection of information contained in this form are not required to respond unless the form dlsplavs a currently valid 0MB control number.

{1}------------------------------------------------

#### **OATH** ORAfFIRMATION

| I, Sheldon Grodlky      | financial report pertalnlf'II to the firm of GrodSky ~                  | s tnc. |                     | swear lor affirm) that, to the best of my knowled~e and belief, the<br>as of                                                         |
|-------------------------|-------------------------------------------------------------------------|--------|---------------------|--------------------------------------------------------------------------------------------------------------------------------------|
| becemt>tr 31            | 2~                                                                      |        |                     | is true and correot. l further swear (or affirm) that neither the company nor any                                                    |
| a!. that of a customer. |                                                                         |        |                     | partner-, offictr, director, or equivalent person, as the ,ase may be, has anv proprietary interest in any account classified solely |
|                         | JENNY M. MARMOLEJOS<br>Notary Public                                    |        | Signature:          |                                                                                                                                      |
|                         | State of New Jersey<br>mlssi6rl Expires Mar. 17, 2025<br>1.0.# 50012229 |        | Title:<br>Prosldent |                                                                                                                                      |
|                         |                                                                         |        |                     |                                                                                                                                      |

#### **This flllnc'• c:ontalns (check all applicable boxes):**

- ii **{a} State.ment** of financial condition.
- □ **(b) Notes** to **consolidated** statement of financial coridltion.
- **(t) StettrMnt of** Income (IO\$S) or, if there is other compr-ehensive Income in the period(s) presented, a statement of com\_preheniive income (as defined In § 210.1-02 of Regulation S·X).
- ii (dt statement of cash flows.
- Ii . (e) Statement of changes In stodcholders' or partners' or sole propriet or's equity.
- 0 (()Statement of changes In llabllltles subordinated to claims of credttors.
- ii (g) Notes to consolidated flnancial statements,
- ii (h) **Computation** of net **capital** under 17 CFR 240.15c3~l or 17 CFR 240,l8a-1, as a pplicable.
- C) {l}CompuUitlon of **tangit,le** net worth under 17 CFR 240.18&·2.
- □ (J) **Computation** for determination of customer **re.serve** requirements pursuant to Exhibit A to 17 CFR 240.1Sc3-3.
- D (k} Computatiori for determination of securlty•based swap reserve requirements pursuant to Exhibit B to 17 O:R 240.1Sc3-3 or
- -ExhibftA to 17 CFR 240.18a-4, asa,ppllcable.
- 0 (l) Computatfon for Determination of PA8 Requirements under Exhibit A to§ 240.15c3•3.
- ii {m) lnfotmation relating to possession or control requirements for cu:rcomers under 17 CFR 2.40.15.c3-3.
- 0 (n} Information relating to possession or control requirements for security-based swap customers under 17 CFR 240J5c3·3(p)(2) or 17 CFR 40.1 ◄. as appllcable.
- Ii (o) Rec.ondlfatlons, including appropriate explanat1ons, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.1Sc3•1, 17 CFR 240.18a-1, or 17 CFR 240.18a·2, as ;:ipplicable, ~nd t he reserve requirements under 17 CFR 240.lSJ:3·~ or 17 CFR 40.18a◄, as appllcable, if material differences exist, or a statement that no material differences exist.
- 0 (p) Summary of financial data for subsidiarlei not consolidated ln the statement of financial condition.
- ii (q) **0ath or** affirmation in accordance with 17 CFR 240.17a-S, 17 CFR i40.l7a-12, or 17 C.:fR 240,l8a•7, a~ applicable.
- 0 (t) Compliance report ln acci>rdanct' with 17 CFR 240.17a-5 or 17 CFR 240.18.a-7, as applicable.
- ii (s) **Eicemptlan report** In accordao<:e with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as app!Jt:able.
- 0 (t) lnd.,endent public accountant's report based on an examination of the statement of financial ccnd1tlon •
- (li) Independent Wblic.accountant' s report based on an examination of the financial report or financial statements und er 17 Cf-R **240.17a-5,** 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable.
- a (v) **Independent** public accountant's report based on an examinat1on of certain statements In the compliance report under 17 CFR %40.t7a•5 or 17 CFR l 40.18a-7, as applicable.
- ii **(w)** Independent p~bllc accounta,nt's report bas'ed on a .review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.18a· 7, as applla1ble.
- 0 {1<) SUpplemerital reports- on applying agreed-upon proceduresi In accordance with 17 CFR 240.15c3-le or 17 CFR 240 .. l 7a-12, as appllceble.
- 0 M **'Report** descrlbfng any material inadequacies found to exist or found to have existed slnce the date of the previous audit, or **a** sfatement that n.o miiterfal inadequacies exist, under 17 CFR 240.17a-12(k). (.z) Other:------....-----------------------------
- 0

C

""To **l't!qu~st** confidential treatment of certain portions of this f{ling, sl'e Jl CFR 240.17a•S(e}(3) or 17 CFR 240.1.8a-7{d)(2}, os opplk:able.

{2}------------------------------------------------

# Grodsky Associates, Inc.

*FINANCIAL STATEMENTS* 

*AND* 

*SUPPLEMENTARY INFORMATION* 

For the Year Ended

December 31, 2021

{3}------------------------------------------------

# **MICHAEL T. REMUS**  ~ 'P«&«-*rt~*

P.O. Box 2555 Hamilton Square, NJ 08690 **Tel:** 609-540-1751 **Fax:** 609-570-5526

#### Report oflndependent Registered Public Accounting Firm

To: The Stockholder **Grodsky Associates, Inc.** 

#### **Opinion on the Financial Statements**

I have audited the accompanying statement of financial condition of Grodsky Associates, Inc. as of December 31, 2021, and the related statements of operations, changes in shareholder equity and cash flows for the year then ended, that are filed pursuant to Rule 17a-5 under the Securities Exchange Act of 1934 and the related notes and schedules (collectively referred to as the financial statements). In my opinion, the financial statements present fairly, in all material respects, the financial position ofGrodsky Associates, Inc. as of December 31, 2021 and its results ofoperalions 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 Grodsky Associates, Inc. 's management. My responsibility is to express an opinion on Grodsky Associates, Inc. 's financial statements based on my audit. I am a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and I am required to be independent with respect to Grodsky Associates, Inc. in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

I conducted my audit in accordance with the standards of the PCAOB. Those standards require that I 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. My audit included performing procedures to assess the risks of material misstatement of the financial statements, 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 statements. My audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overalt presentation of the financial statements. I believe that my audit provides a reasonable basis for my opinion.

#### **Supplemental Information**

The Schedule I, Computation of Net Capital Under SEC Rule 15c3-1, Schedule II, Computation for Identification of Reserve Requirements Under SEC Rule 15c3-3 *(exemption)* and Schedule III, Information Relating to Possession or Control Requirements Under SEC Rule l 5c3-3 ( *exemption)*  has been subjected to audit procedures performed in conjunction with the audit of Grodsky Associates, Inc. 's financial statements.

{4}------------------------------------------------

The supplemental information is the responsibility of Grodsky Associates, lnc.'s management. My audit procedures included determining whether the supplemental information 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 the supplemental information. In forming my opinion on the supplemental information, I evaluated whether the supplemental information, including its form and content, is presented in conformity with 17 C.F .R. §240.17a-5. In my opinion, the Schedule I, Computation of Net Capital Under SEC Rule 15c3-l , Schedule II, Computation for Identification of Reserve Requirements Under SEC Rule l 5c3-3 *(exemption)* and Schedule III, Information Relating to Possession or Control Requirements Under SEC Rule l 5c3-3 *(exemption)* is fairly stated, in all material respects, in relation to the financial statements as a whole.

I have served as Grodsky Associates, Inc. 's auditor since 2020.

Michael T. Remus, CPA Hamilton Square, New Jersey March 29, 2022

{5}------------------------------------------------

#### **GRODSKY ASSOCIATES, lNC.**  STATEMENT OF FINANCIAL CONDITION December 31, 2021

#### **ASSETS**

| Assets                          |              |
|---------------------------------|--------------|
| Cash                            | \$<br>13,438 |
| Receivable from clearing broker | 50,192       |
| Accounts receivable             | 4,640        |
| Prepaid Expenses                | 2,771        |
| Current Assets                  | 7 1,041      |
| Total Assets                    | \$<br>71,041 |

#### **LlABILITIES AND SHAREHOLDER EQUITY**

Liabilities

| Accounts payable and accrued expenses | \$<br>7,660 |
|---------------------------------------|-------------|
| Current Liabilities                   | 7,660       |
| Total Liabilities                     | 7,660       |

Commitments and Contingencies *(Note 6)* 

#### Shareholder Equity

| Common stock, 2,500 shares authorized at stated value \$1 par, | 1,290   |
|----------------------------------------------------------------|---------|
| 1,290 issued and outstanding                                   |         |
| Additional paid in capital                                     | 50,710  |
| Retained earnings                                              | 11 ,381 |
| Total Shareholder Equity                                       | 63,381  |

{6}------------------------------------------------

# **GRODSKY ASSOCIATES, INC.**  STATEMENT OF OPERATIONS Year Ended December 31, 2021

#### REVENUES

| Commissions                     | \$<br>34,241 |
|---------------------------------|--------------|
| Less: Clearing expenses         | (18,705)     |
| Mutual fund 12b-1 fees          | 28,913       |
| Interest income                 | 21           |
| Other revenue                   | 538          |
|                                 | 45,008       |
| OPERATING EXPENSES              |              |
| Wages and benefits              | 8,5<br>18    |
| Regulatory fees                 | 5,738        |
| Communication & data processing | 4,742        |
| Professional fees               | 5,711        |
| Occupancy                       | 3,500        |
| General & administrative        | 14,321       |
| Payroll & other tax expense     | 602          |
|                                 | 43,132       |
| Income from operations          | 1,876        |
| Provision for income tax        | 500          |
| Net Income                      | \$<br>1,376  |

See accompanying notes.

{7}------------------------------------------------

#### **GRODSKY ASSOCIATES, INC.**  STATEMENT OF CHANGES IN SHAREHOLDER EQUITY Year Ended December 3 1, 2021

|                               | Common Stock        |        | Additional |                    |        |                      |         |       |        |
|-------------------------------|---------------------|--------|------------|--------------------|--------|----------------------|---------|-------|--------|
|                               | Number of<br>Shares | Amount |            | Paid ln<br>Capital |        | Retained<br>Earnings |         | Total |        |
| Ba lance at December 31, 2020 | 1,290               | \$     | 1,290      | \$                 | 50,710 | \$                   | 10,005  | \$    | 62,005 |
| Net Income                    |                     |        |            |                    |        |                      | 1,376   |       | l.376  |
| Balance at December 31, 202 1 | 1,290               | \$     | 1,290      | \$                 | 50,710 | \$                   | 11 ,381 | \$    | 63,381 |

See accompanying notes.

{8}------------------------------------------------

#### **GRODSKY ASSOCIATES, INC.**

## STATEMENT OF CASH FLOWS Year Ended December 31, 2021

#### **CASH FLOWS FROM OPERA TING ACTIVITIES**

| Net Income                                    | \$ | 1,376  |
|-----------------------------------------------|----|--------|
| Adjustments to Reconcile Net Income to Net    |    |        |
| Cash Provided By Operating Activities:        |    |        |
|                                               |    |        |
| (Increase) Decrease in Operating Assets:      |    |        |
| Receivable from clearing broker               |    | 2,301  |
| Accounts receivable                           |    | 1,189  |
| Prepaid expenses                              |    | (913)  |
| Increase (Decrease) in Operating Liabilities: |    |        |
| Accounts payable and accrued expenses         |    | (91)   |
|                                               |    |        |
| Net cash provided by operating activities     |    | 3,862  |
| Net increase in cash                          |    | 3,862  |
| Cash at Beginning of Year                     |    | 9,576  |
| Cash at End of Year                           | \$ | 13,438 |
|                                               |    |        |
| Supplemental Cash Flows Disclosures           |    |        |
| Cash paid for income taxes                    |    | 500    |
| Cash paid for interest                        |    |        |

See accompanying notes.

{9}------------------------------------------------

#### **Grodsky Associates, Inc.**  Notes To Financial Statements December 31, 2021

#### **1 Organization and Nature of Business**

Grodsky Associates, Inc. (the Company) is a privately held corporation formed in New Jersey 1991 for the purpose of conducting business as a securities broker dealer. The Company is registered with the SEC and is a member of the Financial Industry Regulatory Authority-FINRA and the Securities Investor Protection Corporation - SIPC.

The Company sells various investments to individual clients located in the United States. The Company clears all customer transactions on a fully disclosed basis through an independent clearing firm and does not hold customer funds or safe keep customer securities. Accordingly, the Company claims exemption from the Rule l 5c3-3 under Sections (k)(2)(i) and (k)(2)(ii) of the rule.

#### **2 Significant Accounting Policies**

### *(a) Basis of Presentation*

The financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") unless otherwise disclosed.

### *(b) Use of Estimates*

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and Habilities at the date of the financial statements and the reported amounts ofrevenue and expenses during the reporting period. Actual results could differ from those estimates.

#### *( c) Statement of Cash Flows*

For purposes of the statement of cash flows the Company has defined cash equivalents as highly liquid investments, with original maturities ofless than three months, that are not held for sale in the ordinary course of business. The Company has adopted the indirect method of presenting the statement of cash flows in accordance with current authoritative pronouncements. There were no cash equivalents at December 31 , 2021. Cash is held at a financial institution and is insured by the Federal Deposit Insurance Corporation.

#### *(d) Revenue Recognition*

The Company recognizes revenue from commissions and other sources in the period they arc received. Revenue is recognized in accordance with ASC Topic 606 as services are rendered and the contracts identified performance obligations have been satisfied. There were no unsatisfied performance obligations at December 31, 2021.

{10}------------------------------------------------

#### **Grodsky Associates, Inc.**  Notes To Financial Statements December 31, 2021

#### *(d) Revenue Recognition* - *continued*

The Company's revenues can vary based on the performance of the financial markets. The Company recognizes revenue from securities transactions on a settlement date basis, generally the next business day following the transaction date. Generally accepted accounting principles require's revenue to be recognized on a trade date basis. There is no material difference between trade and settlement date. The Company clears all securities transactions through National Financial Services on a fully disclosed basis.

#### *(e) Income Taxes*

Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due. No recognition for uncertain tax provisions have been included because the Company believes there are none.

Certain transactions may be subject to accounting methods for federal and state income tax purposes which differ from the accounting methods used in preparing the financial statements. Accordingly, the net income or loss of the shareholder and the resulting balances in the shareholders' capital account reported for federal and state income tax purposes may differ from the balances reported for those same items in these financial statements.

The Company recognizes and measures its unrecognized tax benefits in accordance with ASC Topic 740, Income Taxes. Under that guidance the Company assesses the likelihood, based on their technical merit, that tax positions will be sustained upon examination based on the facts, circumstances and information available at the end of the financial reporting period. The measurement of unrecognized tax benefits is adjusted when new information is available, or when an event occurs that requires a change.

Management has determined that the Company has no uncertain tax positions that would require financial statement recognition at December 31, 2021. This determination will always be subject to ongoing evaluation as facts and circumstances may require. The Company remains subject to U.S. federal and state income tax audits for all years subsequent to 2017.

In addition, no income tax related penalties or interest have been recorded for the year ended December 31, 2021.

#### (I) *Advertising and Marketing*

Advertising and marketing costs (if any) are expensed as incurred.

#### (g) *General and Administrative Expenses*

General and administrative costs are expensed as incurred.

{11}------------------------------------------------

#### *(h) Fair Value Hierarchy*

F ASB ASC 820 defines fair value, establishes a framework for measuring fair value, and establishes a fair value hierarchy which prioritizes the inputs to valuation techniques. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market. Valuation techniques that are consistent with the market, income or cost approach, as specified by F ASB ASC 820, are used to measure fair value.

The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels:

- *Level 1.* Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.
- *Level 2.* Inputs other than quoted prices included in level 1 that arc observable for the assets or liability either directly or indirectly.
- *Level 3.* Inputs are unobservable for the assets or liability.

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, the liquidity of markets, and other characteristics particular to the security. To the extent the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining the fair value is greatest for instruments categorized in level 3.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

The Company had no investments in equity or debt securities at December 31 , 2021.

For further discussion of fair value, see ''Note *5* Fair Value"

#### **3 Net Capital Requirements**

The Company, as a registered broker-dealer in securities is subject to the SEC Uniform Net Capital Rule (Rule 15c3-l ). The Company has elected to operate under that portion of the Rule which requires the Company maintain "net capital" equal to the greater of \$25,000 or 6 2/3% of aggregate indebtedness, as those terms are defined in the Rule. At December 31 , 2021, the Company bad net capital of\$60,6 l 0, which was \$35,610 in excess of its required minimum net capital of\$25,000. The Company's net capital ratio was 0.1264 to 1.

Advances to affiliates, contributions, distributions and other withdrawals arc subject to certain notification and other requirements of Rule l 5c3-l and other regulatory rules.

The Company is exempt from the provisions of Rule l 5c3-3 under the Securities Exchange Act of 1934. The Company relies on its SEC Rule 15c3-3 (k)(2)(i) and (k)(2)(ii) exemptions.

{12}------------------------------------------------

# **Grodsky Associates, Inc.**  Notes to Financial Statements December 31, 202 I

#### **4 Concentrations and Economic Dependency**

A significant amount of the Company's revenues are derived from the sale of open-end mutual funds and trading in securities.

The Company maintains its cash at a financial institution in amounts that at times may exceed federally insured limits. The Company has not experienced any losses in such accounts through December 31, 2021. As of December 31, 2021 there were no cash balances held in any accounts that were not fully insured.

#### **5 Fair Value**

Cash, accounts receivable, prepaid expense, and accounts payable are reflected in the financial statements at carrying value which approximates fair value because of the short-term maturity of these instruments.

#### **6 Commitments and Contingencies**

Pursuant to Securities and Exchange Commission Rule l 5c3-l ( e )(2) the Company may not authorize distributions to its members if such distributions cause the Company's net capital to fall below 120% of the Company's minimum net capital requirement. As of December 31, 2021 the Company was not in violation of this requirement.

The Company had no lease or equipment rental commitments (other than as disclosed in Note 7 below), no underwriting commitments, no contingent liabilities, and had not been named as a defendant in any lawsuit at December 31, 2021 or during the year then ended.

#### **7 Related Party Transactions**

The Company pays the president and sole shareholder \$500 per month for use of its office space. Rent expense for the year ended December 31, 2021 was \$3,500. The shareholder bas waived the balance due of \$2,500 and will not seek reimbursement.

#### **8 Income Taxes**

The Company has net operating loss cany forwards that may be offset against future taxable income. The loss carry-forwards at December 31, 2021 total approximately \$3,200. The loss carry forwards incurred can be carried forward indefinitely.

The components of the net deferred tax asset as of March 31, 2021 are as follows:

Deferred Tax Assets

| Net Operating Loss Carry Forwards | \$ 1,100 |
|-----------------------------------|----------|
| Valuation Allowance               | (1,100)  |
| Net Deferred Tax Asset            | \$<br>0  |

{13}------------------------------------------------

#### **Grodsky Associates, Inc.**  Notes to Financial Statements

December 31, 2021

#### **8 Income Taxes** - *continued*

The components of income tax expense at December 31, 2021 are as follows:

Current

| Federal                          | 0<br>\$ |
|----------------------------------|---------|
| State                            | 500     |
| Total                            | \$ 500  |
| Deferred                         |         |
| Federal                          | 1,100   |
| Change in Valuation Allowance (1 | ,100)   |

Total Tax provision \$ 500

The Company has determined, based upon available evidence, that it is more likely than not that the net deferred tax asset will not be realized and, accordingly, has provided a full valuation allowance.

#### **9 Exemption from Rule 15c3-3**

The Company is exempt from the Securities and Exchange Commission Rule 15c3-3 and, therefore, is not required to maintain a "Special Reserve Bank Account for the Exclusive Benefit of Customers".

#### **10 Subsequent Events**

The Company has performed an evaluation of events that have occurred subsequent to December 31 , 2021, and through the date March 29, 2022 the date the report was available to be issued. There have been no material subsequent events that occurred during such period that would require disclosure in this report or would be required to be recognized in the financial statements as of December 31 , 2021.

#### **11 COVID 19**

In March 2020, the World Health Organization (WHO) declared COVID-19 a global pandemic. This pandemic event has resulted in significant business disruption and uncertainty in both global and U.S. markets. While management believes the Company is in an appropriate position to weather the potential short-term effects of these world-wide events, the direct and long-term impact to the Company and its financial statements is undetermined at this time.

{14}------------------------------------------------

Supplementary Information Pursuant to Rule 17a-5 of the Securities Exchange Act of 1934 As of December 31, 2021

{15}------------------------------------------------

#### **GRODSKY ASSOCIATES, INC.**

### NET CAPITAL COMPUTATION IN ACCORDANCE WITH RULE 15c 3-1 December 31, 2021

| Schedule I                                                                                                                                 |              |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------------|
| NET CAPITAL                                                                                                                                |              |
| Shareholder Equity                                                                                                                         | \$<br>63,381 |
| Less Non Allowables<br>Prepaid Expenses                                                                                                    | (2,771)      |
| Total                                                                                                                                      | (2,771)      |
| NET CAPITAL                                                                                                                                | 60,610       |
| Minimum Required Net Capital                                                                                                               | 25,000       |
| Excess Net Capital                                                                                                                         | \$<br>35,610 |
| AI/NC Ratio                                                                                                                                | 12.64%       |
| Reconciliation with Company's Computation (included in<br>Part II of Form X-17A-5 as of December 31, 2021)<br>As Amended on March 31, 2022 |              |
| Net Capital, as reported in Company's Part II unaudited Focus Report                                                                       | \$<br>60,610 |
| Net Capital, per above                                                                                                                     | 60,610       |
| Difference                                                                                                                                 | \$           |

There are no material differences between the net capital reflected in the above computation and the net capital reflected in the Company's FOCUS Report as of December 31, 2021.

{16}------------------------------------------------

#### **Grodsky Associates, Inc.**

#### SCHEDULE II COMPUTATION FOR DETERMINATION OF RESERVE REQUIREMENTS UNDER RULE 15c3-3 (EXEMPTION)

#### YEAR ENDED December 31, 2021

Pursuant to Rule 17a-5(d) (4) of the audited computations of Net Capital pursuant to Rule 15c 3-1 and computation for Determination of Reserve requirements pursuant to Rule 15c 3-3 submitted by Grodsky Associates, Inc., in my opinion no material differences exist which would materially effect the reserve requirements pursuant to Ruic l Sc 3-3 or its claim for exemption.

{17}------------------------------------------------

**Grodsky Associates, Inc.** 

#### SCHEDULE III INFORMATION RELATING TO POSSESSION OR CONTROL REQUIREMENTS (EXEMPTION)

#### PURSUANT TO RULE 15c 3-3 of the Securities and Exchange Commission

#### As of December 31, 2021

#### **"EXEMPT UNDER 15c3-3(k)(2)(ii)**

Pursuant to rule 15c 3-3 relating to possession or control requirements, Grodsky Associates, Inc. has not engaged in the clearing or trading of any securities and did not hold customer funds or securities during the year ended December 31, 2021 and therefore is claiming exemption to this schedule pursuant to paragraph (k)(2)(i) and (k)(2)(ii) of SEC Rule l 5c3-3. The firm's minimum net capital requirement pursuant to paragraph (a)(2)(vi) of SEC Rule 15c3-1 will be \$25,000.

{18}------------------------------------------------

# **MICHAEL T. REMUS**  *~P«&icrl~*

P.O. Box 2555 Hamilton Square, NJ 08690

> **Tel:** 609-540-1751 **Fax:** 609-570-5526

#### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

#### To: The Shareholder **Grodsky Associates, Inc.**

I have reviewed management's statements, included in the accompanying Exemption report, in which (1) Grodsky Associates, Inc. identified the following provisions of 17 C.F.R. § l 5c3-3(k) under which Grodsky Associates, Inc. claimed an exemption from 17 C.F.R. §240.15c3-3: under- (k)(2)(i) and (k)(2)(ii), (the "exemption provisions") and (2) Grodsky Associates, Inc. stated that Grodsky Associates, Inc. met the identified exemption provisions throughout the most recent fiscal year without exception. Grodsky Associates, Inc. management is responsible for compliance with the exemption provisions and its statements.

My review was conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) and, accordingly, included inquiries and other required procedures to obtain evidence about Grodsky Associates, Inc. compliance with the exemption provisions. A review is substantially less in scope than an examination, the objective of which is the expression of an opinion on management's statements. Accordingly, I do not express such an opinion.

Based on my review, I am not aware of any material modifications that should be made to management's statements referred to above for them to be fairly stated, in all material respects, based on the provisions set forth in paragraphs (k)(2)(i) and (k)(2)(ii) of Rule 15c3-3 under the Securities Exchange Act of 1934.

Michael T. Remus, CPA Hamilton Square, New Jersey March 29, 2022

{19}------------------------------------------------

**Grodsky Associates, Inc. 29 Longview Street West Orange, NJ 07052** 

**December 31, 2021** 

#### *Rule* **J** *5c3-3 Exemption Report*

This is to certify that, to the best of my knowledge and belief:

Grodsky Associates, Inc. is a registered broker-dealer subject to Rule 17a-5 promulgated by the Securities and Exchange Commission ( 17 C.F.R section 240. l 7a-5, "Reports to be made by certain brokers and dealers"). This Exemption Report was prepared as required by 17 C.F.R. section 240. **t** 7a-5(d)(l) and (4). To the best of its knowledge and belief Grodsky Associates, Inc. states the following:

Grodsky Associates, Inc. claimed an exemption under provision 17 C.F .R. section 240.15c3-3 (k)(2)(i) and (k)(2)(ii)as the Company is a non-carrying broker-dealer which promptly transmits all funds and delivers all securities received in connection with its activities as a broker dealer, and does not otherwise hold funds or securities for, or owe money or securities to, customers.

Grodsky Associates, Inc. met the identified provision throughout the most recent fiscal year without exceptions.

Thank you.


Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.