# J. ALDEN ASSOCIATES, INC. X-17A-5/A (2020-02-28) — Broker-dealer annual report

- Company: J. ALDEN ASSOCIATES, INC.
- Form: X-17A-5/A
- Filed: 2020-02-28
- Period: 2019-12-31
- Accession: 0001005400-20-000003
- CIK: 1005400
- File #: 8-48938
- Material weakness: No
- Auditor: Romeo & Chiaverelli LLC
- Auditor location: Bala Cynwyd, PA
- Contact: Peter Engelbach
- Phone: 2155728700
- Website: j-alden.com
- Signed by: Peter Engelbach (President)

Original filing: https://www.sec.gov/Archives/edgar/data/1005400/000100540020000003/annualaudit23.pdf

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

0MB APPROVAL 0MB Number: 3235-0123 Expires: August 31, 2020 Estimated average burden hours oer response ...... i 2.00

# **ANNUAL AUDITED REPORT FORM X-17A-5 PART Ill**

|         | SEC FILE NUMBER |
|---------|-----------------|
| 8-48938 |                 |

**FACING PAGE** 

**Information Required of Brokers and Dealers Pursuant to** Section 17 of the **Securities Exchange** Act of 1934 **and Rule** 17a-5 Thereunder

|                                                                                            | REPORT FOR THE PERIOD BEGINNING 0 1/01/2019<br>AND ENDING 12/31/2019 |            |                                    |  |
|--------------------------------------------------------------------------------------------|----------------------------------------------------------------------|------------|------------------------------------|--|
|                                                                                            | MM/DD/YY                                                             |            | MM/DD/YY                           |  |
|                                                                                            | A. REGISTRANT IDENTIFICATION                                         |            |                                    |  |
| NAME oF BROKER-DEALER: J Alden Associates Inc                                              |                                                                      |            | OFFICIAL USE ONLY<br>FIRM I.D. NO. |  |
| ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.)                          |                                                                      |            |                                    |  |
| 261 Old York Rd, Suite 837                                                                 |                                                                      |            |                                    |  |
|                                                                                            | (No. and Street)                                                     |            |                                    |  |
| Jenl<iht®Wn                                                                                |                                                                      | 19046      |                                    |  |
| (City)                                                                                     | (State)                                                              | (Zip Code) |                                    |  |
| NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT<br>Peter Engelbach |                                                                      |            | ( 215-) 572-8700                   |  |
|                                                                                            |                                                                      |            | (Area Code - Telephone Number)     |  |
|                                                                                            | B. ACCOUNTANT IDENTIFICATION                                         |            |                                    |  |
| INDEPENDENT PUBLIC ACCOUNT ANT whose opinion is contained in this Report*                  |                                                                      |            |                                    |  |
| Romeo & Chiaverelli, LLC                                                                   |                                                                      |            |                                    |  |
|                                                                                            | (Name - if individual, state last, first, middle name)               |            |                                    |  |
| One Bala Avenue, Suite 234                                                                 | Bala Cynwyd                                                          | PA         | 19004                              |  |
| (Address)                                                                                  | (City)                                                               | (State)    | (Zip Code)                         |  |
| CHECK ONE:                                                                                 |                                                                      |            |                                    |  |
| Iv' I<br>Certified Public Accountant                                                       |                                                                      |            |                                    |  |
| Public Accountant                                                                          |                                                                      |            |                                    |  |
| B                                                                                          | Accountant not resident in United States or any of its possessions.  |            |                                    |  |
|                                                                                            | FOR OFFICIAL USE ONLY                                                |            |                                    |  |
|                                                                                            |                                                                      |            |                                    |  |
|                                                                                            |                                                                      |            |                                    |  |
|                                                                                            |                                                                      |            |                                    |  |

*\*Claims for exemption from the requirement that the annual report be covered by the opinion of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis for the exemption. See Section 240.17a-5(e)(2)* 

> Potential 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.

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#### OATH OR AFFIRMATION

#### r Peter A, Engelbach

sweat of a more and would , swear (or affirm) that, to the best of 

my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of J Alden Associates Inc. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

of December 31

a money and connect. I further swear (or affirm) and correct. I further swear (or affirm) that

neither the company nor any partner, principal officer or director has any proprietary interest in any account classified solely as that of a customer, except as follows:

COMMONWEALTH OF PENNSYLVANIA NOTARIAL SEAL CAROL BLENDER, Notary Public Abington Twp., Montgomery Co commission Expires May 23, 2 Signature DEN) ( Title

Notary Public

This report \*\* contains (check all applicable boxes):

- (a) Facing Page.
- (b) 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 Changes in Financial Condition.
- (e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital.
- (f) Statement of Changes in Liabilities Subordinated to Claims of Creditors.
- (g) Computation of Net Capital.
- (h) Computation for Determination of Reserve Requirements Pursuant to Rule 15c3-3.
- (i) Information Relating to the Possession or Control Requirements Under Rule 15c3-3.
- (j) A Reconciliation, including appropriate explanation of Net Capital Under Rule 15c3-1 and the Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3.
- The (k) A Reconciliation between the audited Statements of Financial Condition with respect to methods of consolidation.
	- (1) An Oath or Affirmation.
- (m) A copy of the SIPC Supplemental Report.
- (n) A report describing any material inadequacies found to exist or found to have existed since the date of the previous audit.

\*\* For conditions of confidential treatment of certain portions of this filing, see section 240.17a-5(e)(3).

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### REPORT CONTAINING FINANCIAL STATEMENTS AND SUPPORTING SCHEDULES

#### FOR THE YEAR ENDED DECEMBER 31, 2019

AND

#### ACCOUNTANT'S REPORT THEREON PURSUANT TO RULE 17A-5

OF THE SECURITIES AND EXCHANGE COMMISSION

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#### DECEMBER 31, 2019

#### TABLE OF CONTENTS

|                                                                                               | Page        |
|-----------------------------------------------------------------------------------------------|-------------|
| Facing Page to Form X-17 A-5 2A<br>Affirmation of Officer 2B                                  |             |
| Report oflndependent Registered Public Accounting Firm                                        | l -<br>2    |
| Statement of Financial Condition                                                              | 3           |
| Statement of Income                                                                           | 4           |
| Statement of Changes in Stockholders' Equity                                                  | 5           |
| Statement of Changes in Liabilities Subordinated<br>to Claims of General Creditors            | 6           |
| Statement of Cash Flows                                                                       | 7           |
| Notes to Financial Statements                                                                 | 8 -<br>13   |
| Supplementary Information                                                                     |             |
| Schedules I, II, HI                                                                           | 14 -<br>16  |
| Report of Independent Registered Public Accounting Firm on Applying<br>Agreed-Upon Procedures | l 7 -<br>18 |
| Report of Independent Registered Public Accounting Firm Exemption<br>Repo,t Review            | 19          |

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### ROMEO & GHIAVERELLI, LLC CERTJ.FIED PU.a ... ,c ACCOUNTANTS ONE BALA-AVENUE SUITE 234 BALA CYNWYD~ PA 19004.

### REPORT OF .INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors of J .. Alden Associates, Inc.

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

We. have audited the accompanying statement of financial condition of J .Alden Associates, lhc.(the "Company"}, as of December 31, 201'9, and the related statements of operations, changes In sfookho!ders' equity and cash flews for the year then ended, and the related notes and supplementary information (collectlvely referred to as the "financial statements"). In our opinion,. the financial statements present fairlyi in all material respects, the financial position of the Company as of December 31, 2019, and the results oflts operations and Its cash flows for the year ehcled December 31, 2019, tn conformity with accounting prlnolples generally accepted in the United States of America.

#### **Basis .for Opinion**

These financial statements are lhe responsibility of the Companys management. Our responsibility is to express an-opinion on ·these 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 -rE>gutatlons of the .Securities ,and Exchange Comm isslon and the **PCAOB.** 

We conducted our audit In aocordance with the. standards of the PCAOB. Those standards requlr.e that we plan aniJ perform the audit to obtain reasonable assurance about whether the flnanolal. statem·ents are. free of m~terlal misstatement, whether due to error or fraud. Our audit included performing procedures to assess t\_he risk\$ of material misstatement of the financial statements, whether. due to error or fraud, and pe\_rfqrming·proc~dures thaf 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 prlnolples used and significant estimates made by management, as well as eva.luatlng the overall presentation of the financial statements. We belleve that our audit provides a reasonable basis for our .opinion.

#### Auditor's R.eport'on Supplementary Information

The supplementary Information, the Computation of Net Capital under Rule 15c3-1 of the -Securities and E?<ch~nge Commission and the Computation for Determination of Reserve Requirements and Information Relating to Pos~ession or Control Requirements Under Rule 15c3-3 of the Securities and Exchange Commls~lon OR ·contained in scheduJes I and 11,has been subjected to audit procedures performed In conjunctlo\_n. with the audit of the Companyis financial statements. The supplementary Information ls the responsibllity of the Company's management. Our audit procedures Included determining whether the supplementary 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 supplementary Information. In forming our opinion on the supplementary information, '!le evaluated whether the supplementary information, including Its form and content, is

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 presented in conformly with 17 C.F.R. § 240.17a-5. In our opinion, the supplementary information is falrly stated, in all material respects, in relation to the financial statements as a whole.

We have served as the Company's auditor since 2017.

11 26

February 24, 2020 Bala Cynwyd, PA 19004

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### STATEMENT OF FINANCIAL CONDITION DECEMBER 3 l, 2019

| ASSETS                                                                          |    |            |
|---------------------------------------------------------------------------------|----|------------|
| CURRENT ASSETS                                                                  |    |            |
| Cash                                                                            | \$ | 689,067    |
| Restricted Cash                                                                 |    | 25,165     |
| Receivables From Brokers and Dealers                                            |    | 7,615      |
| Receivables From Non~Customers                                                  |    | 321,199    |
| Right of Use Lease Asset, Net                                                   |    | 34,772     |
| Prepaid Expenses                                                                |    | 41,698     |
| Total Current Assets                                                            | \$ | 1,119,516  |
| FURNITURE AND EQUIPMENT                                                         |    |            |
| Furniture and Equipment, at Cost                                                |    |            |
| Net of Accumulated Depreciation of \$83,887                                     |    | 11,414     |
| OTHER ASSETS                                                                    |    |            |
| Security Deposits                                                               |    | 2,315      |
| TOTAL ASSETS                                                                    | \$ | 1,133,245  |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                            |    |            |
| LIABILITIES                                                                     |    |            |
| Other Borrowed Funds                                                            | \$ | 16,005     |
| Accounts Payable and Accrued Expenses                                           |    | 905,174    |
| Lease Liabilities                                                               |    | 36,411     |
| Deferred Revenue                                                                |    | 54,169     |
| Total Current Liabilities                                                       |    | 1,011,759  |
| STOCKHOLDERS' EQUITY                                                            |    |            |
| Common Stock. Class A, 500 shares authorized, 10 issued and                     |    |            |
| outstanding, no par value, 110 stated value                                     |    | 120,391    |
| Common Stock, Class B, 500 shares authorized, 90 shares issued and outstanding, |    |            |
| no par value, no stated value                                                   |    | 20,000     |
| Accumulated Deficit                                                             |    | (18,905)   |
| Total Stockholders' Equity                                                      |    | 121,486    |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                      | \$ | ], 133,245 |
|                                                                                 |    |            |

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### STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2019

| Revenues                           |               |
|------------------------------------|---------------|
| Commissions                        | \$<br>382,518 |
| Interest and Dividends             | 8,610         |
| Mutual Fund Fees                   | 115,996       |
| Other Income                       | 3,082,844     |
| Total Revenues                     | 3,589,968     |
| Expenses                           |               |
| Commission Expense                 | 2,840,990     |
| Employee Compensation and Benefits | 388,697       |
| Clearance Fees                     | 38,294        |
| Professional Fees                  | 59,774        |
| Occupancy Expense                  | 28,208        |
| Communication Expense              | 26,768        |
| Other Operating Expenses           | 202,990       |
| Total Expenses                     | 3,585,721     |
| Net Income                         | 4,247<br>\$   |

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### STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY FOR THE YEAR ENDED DECEMBER 31, 2019

| Common Stock -<br>Class A, no par value, 500 Shares Authorized,<br>10 Shares Issued |          |          |
|-------------------------------------------------------------------------------------|----------|----------|
| Shares Outstanding, January l, 2019                                                 |          |          |
| Shares Outstanding, December 31, 2019                                               |          |          |
| Balance, at Cost, January 1, 2019                                                   | \$       | 120,391  |
| Balance, at Cost, December 31, 2019                                                 | \$       | 120,391  |
| Common Stock -<br>Class B, no par value, 500 Shares Authorized,                     |          |          |
| 90 Shares Issued                                                                    |          |          |
| Shares Outstanding, January 1, 2019<br>Shares Outstanding, December 31, 2019        |          | 90<br>90 |
|                                                                                     |          | 20,000   |
| Balance, at Cost, January 1, 2019<br>Balance, at Cost December 31, 2019             | \$<br>\$ | 20,000   |
|                                                                                     |          |          |
| Accumulated Deficit                                                                 |          |          |
| Balance, January 1, 2019                                                            | \$       | (23,152) |
| Net Income                                                                          |          | 4,247    |
| Balance, December 3 1, 2019                                                         | \$       | (18,905) |
|                                                                                     |          |          |
| Total Stockholders' Equity                                                          | \$       | 121,486  |

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### STATEMENT OF CHANGES IN LIABILITIES SUBORDINATED TO CLAIMS OF GENERAL CREDfTORS FOR THE YEAR ENDED DECEMBER 31, 2019

| Subordinated Borrowings at January 1, 2019   | \$<br>0 |
|----------------------------------------------|---------|
| Changes In Subordinated Borrowings           | 0       |
| Subordinated Borrowings at December 31, 2019 | \$<br>0 |

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### ST A TEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2019

Cash Flows From Operating Activities:

| Net Income                                            | \$<br>4,247 |
|-------------------------------------------------------|-------------|
| Adjustments to Reconcile Net Income to Net Cash       |             |
| Provided by Operating Activities:                     |             |
| Depreciation Expense                                  | 3,184       |
| (Increase) In Assets                                  |             |
| Receivables from Brokers and Dealers                  | (29,195)    |
| Receivables from Non-Customers                        | (265,614)   |
| Right Of Use Lease Asset                              | (34,772)    |
| Prepaid Expenses                                      | (19,093)    |
| Increase (Decrease) In Liabilities:                   |             |
| Accounts Payable and Accrued Expenses                 | 325,057     |
| Accrued Payroll Taxes                                 | (564)       |
| Lease Liability                                       | 36,411      |
| Deferred Revenue                                      | 54,169      |
| Total Adjustments                                     | 69,583      |
| Net Cash Provided by Operating Activities             | 73,830      |
| Cash Flows From Investing Activities:                 |             |
| Purchase of Furniture and Equipment                   | (8,998)     |
| Net Cash Used By Investing Activities                 | (8,998)     |
| Cash Flows From Financing Activities:                 |             |
| Proceeds From Other Borrowed Funds                    | 20,412      |
| Payments on Other Borrowing Funds                     | (16,388)    |
| Net Cash Provided By Financing Activities             | 4,024       |
| Net Increase In Cash                                  | 68,856      |
| Cash -<br>January 1, 2019                             | 620,21 l    |
| Cash -<br>December 31, 2019                           | 689,067     |
| Supplemental Cash Flows Disclosures:<br>Interest Paid | \$<br>714   |

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### NOTES TO FINANCJAL STATEMENTS DECEMBER 31, 2019

Note l

### SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

J. Alden Associates, Inc. ("Company") was incorporated on November 3, 1995. The Company received its license effective June 1, 1996 as a broker and dealer in securities under the Securities Exchange Act of 1934 with the Financial Industry Regulatory Authority ("FfNRN') and sells investment and insurance pl'oducts.

### USE OF ESTIMATES

The preparation 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 revenues and expenses during the reporting period. Actual results could differ from those estimates.

### RESTRICTED CASH

Restricted cash consists of a reserve requirement of \$25,000 per agreement with the clearing broker/dealel', and earnings thereupon.

### RECEIVABLES FROM BROKERS AND DEALERS AND NON-CUSTOMERS

The Company considers receivables from brokers and dealers and 11011-customers to be fully collectible at December 31, 2019; accordingly, no allowance for doubtful accounts has been rncorded. Bad debt expense was \$ - 0 - for the year ended December 31, 20 19.

Management monitors outstanding balances and account balances are charged off after all means for collection have been exhausted and the potential for collection is remote. The Company does not have off-balance sheet credit exposure related to the receivables

#### Accounting Pronouncements-ASC 606 Revenue Recogn[tion

Although total revenues may not be materially impacted by the current guidance, management notes changes to the disclosures based on the additional requirements prescribed by ASC 606. These new disclosures include information l'egarding the judgments used in evaluating when and how revenue is recognized and disclosures related to contract assets and liabilities.

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### NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2019

### SUMMARY OF SIGNIFICANT ACCOUNTING POLfCIES, Continued

#### Note l, Continued

#### ASC 842 Leases

Although the economic or legal characteristics of these leases are not altered, the impact on the presentation of assets and liabilities on financial statements may be material. Also, as a broker-dealer registered with the Securities and Exchange Commission ("SEC") and Financial Industry Regulatory Authority ("FINRA''), the Company is subject to SEC Rule 15C3-l, the Net Capital rule, under which the lease asset would be recorded as a non-allowable asset and the associated liability would be recorded as aggregate indebtedness, both of which could have a materially negative effect on Net Capital computed under SEC Rule 15c3-l. On May 31, 2016, the Securities Industry and Financial Markets Association (''SJFMA") requested relief rom the SEC from the net capital impact of the lease capitalization required under ASC 842. On November 8, 2016, the SEC issued a ' <sup>1</sup> no action" letter permitting broker-dealers to add back to Net Capital the operating lease asset to the extent of the associated operating lease liability. If the value of the operating lease liability exceeds the value of the operating lease asset, the amount by which the liability's value exceeds the associated lease asset must be deducted for net capital purposes.

The Company believes that the relief provided by the SEC 1 '110 action" letter will substantially negate the effect of the application of ASC 842 on the Company's net capital position.

#### FURNITURE AND EQUIPMENT

Furniture and equipment are stated at cost. Expenditures for maintenance and repairs are charged against operations. Renewals and betterments that materially extend the life of the assets are capitalized.

Depreciation is provided on a straight-line basis, over the estimated useful lives of the related assets. The estimated useful lives of the depreciable assets are as follows:

| Furniture          | 7 Years |
|--------------------|---------|
| Computer Equipment | 3 Years |
| Office Equipment   | 5 Years |

When prope1ties are retired or sold, the asset values and related reserves are eliminated from the accounts and any resultant gain or loss is included in earnings.

#### COMMISSIONS

Commissions and related expenses are recorded on a trade~date basis as securities transactions occur.

The federal, state and local tax returns of the Company for 2015 through 2018 are subject to examination by the taxing authorities, generally for three years after they were filed.

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### NOTES TO FINANCIAL STATEMENTS DECEMBER JI, 2019

### SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued

#### Note 1, Continued

#### INCOME TAXES

The Company bas elected to be treated as a sma11 business corporation pursuant to Section 1372(a) of the "Internal Revenue Code" and the Pennsylvania State Revenue Code, Under those provisions, the Company does not pay federal or state income taxes on its taxable income. Instead, the stockholder is liable for individual federal and state income taxes on his share of the Company's taxable income.

### Note2

### FURNITURE I EQUIPMENT AND DEPRECIATION

Furniture, equipment and the related accumulated depreciation at December 31, 2019 consists of the following:

| Furniture                      | \$<br>66,714 |
|--------------------------------|--------------|
| Computer Equipment             | 21,446       |
| Office Equipme-nt              | 7,141        |
| Total                          | 95,301       |
| Less: Accumulated Depreciation | 83,887       |
| Net Furniture and Equipment    | \$=~ll,;Ll4  |

Depreciation expense for the year ended December 31, 2019 was \$3,184.

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### NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2019

Note3

### OTHER BORROWED FUND

Loan payable to AFCO. Payable in monthly installments of \$2,362.10 including interest at a rate of 9.85% maturing July 16, 2020. This loan is unsecured. :l-l6..0.D.5-.

Interest expense for the year ended December 3 l, 2019 was \$714.

Note4

### OPERA TING LEASE COMMITMENTS

The Company has entered into leasing arrangements for facilities. Rent expense incurred for the year ended December 31, 2019 was \$28,208, which is included in occupancy expense. As of December 31, 2019, the remaining future minimum lease payments are as follows:

| December 31, 2020<br>May 31, 2021                  | \$<br>25,609<br>10,802 |
|----------------------------------------------------|------------------------|
| Total Payments Due Under Finance Lease Liabilities | £.-~=J §AU             |

The weighted average remaining lease term for the operating lease is seventeen (17) months.

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### NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2019

Note *5* 

### PENSION PLAN

The Company has established a cash or deferred arrangement simplified employee pension plan (SEP). The plan covers those employees who have attained the age of twenty-one (21) years and have provided service to the Company in one of the preceding five (5) years. Contributions are at the discretion of Management. For the year ended December 31, 2019, there was no discretionary contribution.

Note6

### NET CAPITAL REQUIREMENTS

The Company is subject to the net capital requirements of the Financial Industry Regulato1y Authority ("FIN RA") and the Uniform Net Capital requirements of the Securities and Exchange Commission (SEC) under Rule 15c3-1 which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to I • Pursuant to "FINRA" Rules, the Company is required to maintain minimum net capital of either \$5,000 or 1/I *5* (6 2/3%) of the aggregate indebtedness, whichever is g1·eater. At December 31, 2019 the Company had net capital of \$33,614 which created a deficit of\$3 l,5 l8. The Company's net capital ratio was 29. l to 1.

The Company prior to December 31, 2019 has been in compliance with the requirements of Rule 15c3-1. As of January 1, 2020, the net capital was \$89,442 which was \$28,072 in excess of the \$61,350 required to be maintained at that date.

The Company as of January I, 2020, has corrected this deficit.

Note 7

#### SUBSEQUENT EVENTS

Events subsequent to December 31, 2019 of the Company has been evaluated through February 24, 2020, which is the date the financial statements were available to be issued, for the pmpose of identifying events requiring recording or disclosure in the financial statements for the year ended December 31, 2019.

Note 8

#### CONTINGENCIES

In the normal course of business, there can be various claims against the Company. In the opinion of the Company's management and counsel, the amount of such losses that might result from these claims, if any, would not materially affect the Company's financial position.

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

### NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2019

### Note9 CONCENTRATIONS

The Company maintains cash accounts at several financial institutions. Cash balances at each financial institution in excess of \$250,000 exceed the insurable limit as allowed by FDIC. At times, cash balances may exceed insurable amounts.

The Company maintains cash and investments at a brokerage firm in which cash and securities are protected from loss by the Securities Investor Protection Corporation (SIPC). The limit of SIPC protection is \$500,000, which includes a \$250,000 limit for cash. At times, balances may exceed insurable amounts.

Note 10

### DEFERRED REVENUE

Deferred revenue represents affiliation fees billed in 2019 for the pet'iod beginning January 1, 2020.

At December 31, 2019, deferred revenue consisted of the following:

Affiliation Fees

Note 11

### COMMON STOCK-CLASS B -SUBSEQUENT EVENT

The original shareholder has entered into an agreement effective March 2, 2018 to sell thirty~three and one third percent (33 1/3%) of his outstanding Class B shares (90 shares) on March 2,201.8, January 1, 2019 and January 1, 2020, respectively.

The original shareholder will retain his Class A ten (10) issued shares. In consideration of entering into this agreement, the purchasing shareholder has agreed to contribute \$20,000 into capital.

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SUPPLEMENTARY INFORMATION

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### SCHEDULE I COMPUTATION OF NET CAPITAL UNDER RULE 15c3-l OF THE SECURITIES AND EXCHANGE COMMISSION DECEMBER 31, 2019

| NET CAPITAL                                                                                     |                   |
|-------------------------------------------------------------------------------------------------|-------------------|
| Total Stockholders' Equity Qualified for Net Capital                                            | \$<br>121,486     |
| Add:<br>A. Subordinated Bon'owings Allowable in Computation of Net Capital                      | 0                 |
| Total Capital and Allowable Subordinated Liabilities                                            | 121,486           |
| Deductions and/or Charges                                                                       |                   |
| A. Non-Allowable Assets                                                                         |                   |
| Receivables Prom Non-Customers                                                                  | \$<br>32,445      |
| Furniture and Equipment -<br>Net                                                                | l I,414           |
| Other Assets                                                                                    | 44,013            |
| Total Deductions/and or Charges                                                                 | 87,872            |
| Net Capital                                                                                     | 33,614            |
| AGGREGATE INDEBTEDNESS                                                                          |                   |
| Items Included in Statement of Financial Condition:                                             |                   |
| Accounts Payable, Accrued and Other Liabilities                                                 | \$<br>976;987     |
| COMPUTATION OF BAS[C NET CAPITAL REQUIREMENT                                                    |                   |
| Minimum Net Capital Required                                                                    | \$<br>65,132      |
| Ratio: Aggregate Indebtedness to Net Capital                                                    | 29.1Tol           |
| RECONCILATION WITH COMPANY'S COMPUTATION                                                        |                   |
| Net Capital, as Reported in Company's Part II (Unaudited) Focus Report<br>Net Audit Adjustments | \$<br>33,614<br>0 |
| Net Capital Per Above                                                                           | \$<br>33,614      |

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

#### SCHEDULE 11 COMPUTATION OF DETERMINATION OF RESERVE REQUIREMENTS UNDER RULE 15C-3-3 OF THE SECURITIES AND EXCHANGE COMMISSION DECEMBER 3 I, 2019

The Company is exempt under Rule 15c3-3(k) (2) (ii) from preparing the Computation for Determination ofReserve Requirements Pursuant to Rule l5c3-3.

{20}------------------------------------------------

### SCHEDULE IlI INFORMATION RELATING TO POSSESSION OR CONTROL REQUIREMENTS UNDER RULE l 5c3-3 OF THE SECURITIES AND EXCHANGE COMMISSION DECEMBER 31, 2019

| L  | Customers' fully paid securities and excess margin securities not<br>in the respondent's possession or control as of the report date<br>(for which instructions to reduce to possession or control had been<br>issued as of the repmt date but for which the required action<br>specified under Rule l 5c3-3): |        |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|    | A. Number of Items                                                                                                                                                                                                                                                                                             |        |
| 2. | Customers' fully paid securities and excess margin securities for<br>which instructions to reduce to possession or control had not been<br>issued as of the repott date, excluding -items arising from "temporary<br>lags, which result from no11nal business operations as permitted<br>under Rule 15c3-3:    | \$~~_Q |
|    | Number of ltems<br>A.                                                                                                                                                                                                                                                                                          | \$=_Q  |

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### ROMEO & CHIAVERELLILLC ONE BALA PLAZA SUITE 234 BALA CYNWYD, PA 19004

### Independent Accountant's Agreed-Upon Procedures Report On Schedule Of Assessment And Payments (Form SIPC-7)

To The Board of Directors of: J. Alden Associates, Inc.

We have performed the procedures included in Rule 17a-5(e)(4) under the Securities Exchange Act of 1934 and in the Securities Investor Protection Corporation (SIPC) Series 600 Rules, which are enumerated below and were agreed to by J. Alden Associates, Inc. and the SIPC, solely to assist you and SIPC in evaluating J. Alden Associates, Inc.'s compliance with the applicable instructions of the General Assessment Reconciliation (Form SIPC-7) for the year ended December 31, 2019. J. Alden Associates, Inc.'s management is responsible for its Form SIPC-7 and for its compliance with those requirements. This agreed-upon procedures engagement was conducted in accordance with standards established by the Public Company Accounting Oversight. Board (United States) and in conformance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures we performed and our findings are as follows:

- 1. Compared the listed assessment payments in Form SIPC-7 with respective cash disbursement records entries, noting no differences;
- 2. Compared the Total Revenue amounts reported on the Annual Audited Form X-17A-5 for the year ended December 31, 2019, with the Total Revenue amount reported in Form SPIC-7 for the year ended December 31, 2019, noting no differences:
- 3. Compared any adjustments reported in Form SIPC-7 with supporting schedules and working papers, noting no differences;
- 4. Recalculated the arithmetical accuracy of the calculations reflected in Form SIPC-7 and in the related schedules and working papers supporting the adjustments, noting no differences; and
- 5. Compared the amount of any overpayment applied to the current assessment with the Form SIPC-7 on which it was originally computed, noting no differences.

We were not engaged to, and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on J. Alden

{22}------------------------------------------------

Associates,. Inc. 1 s compliance with the applicable instructions of Forni SIPC~ 7 for the year ended D.ecemb.er 31, 2019. Accordingly, we do not express such an opinion or CQn"Clusion. Had we performed additional procedures; other matters might have come to our attentio.n that would have been reported to you.

This report is intended solely for the infonnation and use of J. Alden Associ::it~s, Iµc, ~d the SlPC and is not intended to he and should not be used.by anyone other than these specified part;ies.

**~JW.&LC** 

Romeq &, Chiaverelli, LLC / Bala Cynwyd; PA

February 24, 2020

{23}------------------------------------------------

#### DECEMBER 31, 201 9

#### TABLE OF CONTENTS

Page

3

Independent Accountant's Agreed-Upon Procedures Report On Schedule Of Assessment and Payments (Form SIPC-7)

Schedule of Assessment and Payments (General Assessment Reconciliation Form SIPC~ 7) For the Year Ended December 31, 2019

4

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### MEO & CHIAVERELLI LLC ONE BALA PLAZA SUITE 234 BALA CYNWYD. PA 19004

### Report of Independent Registered Public Accounting Firm Exemption Report Review

To the Board of Directors: J. Alden Associates, Inc.

We have reviewed management's statements, included in the accompanying Exemption Report, on which J. Alden Associates, Inc. identified the following provisions of 17 C.F.R. ~ 15c3-3(k) under which J. Alden Associates, Inc. claimed an exemption from 17 C.F.R. ~240.15c3-3:(2)(ii). SEC Rule 15c3-3(k)(2)(ii) and J. Alden Associates, Inc. stated that J. Alden Associates, Inc. met the identified exemption provisions throughout the most recent fiscal year without exception. J. Alden Associates, Inc.'s management is responsible for compliance with the exemption provisions and its statements.

Our 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 J. Alden Associates, Inc.'s compliance with the exemptions. 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, we do not express such an opinion.

Based on our review, we are 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 paragraph (k)(2)(ii) of Rule 15c3-3 under the Securities Exchange Act of 1934.

Romeo & Chiaverelli, LLC Bala Cynwyd, PA

February24, 2020

{25}------------------------------------------------

### SCHEDULE OF ASSESSMENT AND PAYMENTS (GENERAL ASSESSMENT RECONCILIATION FORM SIPC-7) FOR THE YEAR ENDED DECEMBER 31, 2019

| Total Revenue                                                                                                                  |    | 3,589,968   |
|--------------------------------------------------------------------------------------------------------------------------------|----|-------------|
| Deductions:                                                                                                                    |    |             |
| Revenues from the distribution of shares of a registered open                                                                  |    |             |
| end investment company or unit investment trust, from. the sale<br>of variable annuities, from the business of insurance, from |    |             |
| investment advisory services rendered to registered investment                                                                 |    |             |
| companies or insurance company separate accounts, and from                                                                     |    |             |
| transactions in security futures products                                                                                      |    | (3,207,450) |
| Commissions, Floor Brokerage and Clearance Fees paid to other                                                                  |    |             |
| SIPC members in connection with securities transactions                                                                        |    | (38,294)    |
| SIPC Net Operating Revenues                                                                                                    | \$ | 344,224     |
| General Assessment @.0015                                                                                                      |    | 516         |
| Payments made with 2019 Form SIPC-6 (Paid July 31, 20 l 9)                                                                     |    | 281         |
| Balance paid with SIPC-7 (Paid January 31, 2020)                                                                               | \$ | 235         |

See Accompanying Independent Accountant's Report.

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# J. *Alden Associates, Inc.*

*Peter A. Engelbach*  President

The Pavilion P.O. Box 744 Jenkintown, PA 19046 (215) 572-8700 www.j-alden.com

### EXEMPTION REPORT

Firm Assertions

We confirm to the best of our knowledge and belief that:

- 1. J Alden Associates, Inc. claimed an exemption from SEC Rule 15c3-3 under the provisions in paragraph (k)(2)(ii) throughout the calendar year January 1, 2019 to December 31, 2019.
- 2. J Alden Associates, Inc. met the identified exemption provisions in SEC rule 15c3 (k)(2)(ii) throughout the calendar year January 1, 2019 to December 31, 2019 without exemption.

Officer: \_\_\_\_\_ --+e-=-(Z\_G\_S\_1\_D\_€\_JJ\_l \_\_\_\_\_\_\_\_\_ <sup>~</sup>


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