# J. ALDEN ASSOCIATES, INC. X-17A-5 (2021-03-25) — Broker-dealer annual report - Company: J. ALDEN ASSOCIATES, INC. - Form: X-17A-5 - Filed: 2021-03-25 - Period: 2020-12-31 - Accession: 0001005400-21-000007 - CIK: 1005400 - File #: 8-48938 - Material weakness: No - Auditor: Romeo & Chiaverelli LLC - Auditor location: Bala Cynwyd, PA - Contact: Peter A Engelbach - Phone: 2155728700 - Signed by: Peter A Engelbach (President) Original filing: https://www.sec.gov/Archives/edgar/data/1005400/000100540021000007/x17a5.pdf --- {0}------------------------------------------------ **UNITEDSTATES SECURITIES AND EXCHANGE COMMISSION** Washington, D.C. 20549 # **ANNUAL AUDITED REPORT FORM X-17A-5 PARTIII** 0MB APPROVAL 0MB Number: 3235-0123 Expires: October 31, 2023 Estimated average burden hours per response ...... 12.00 # 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** | MM/DD/YY | | MM/ DD/YY | |---------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | | | NAME OF BROKER-DEALER: J Alden Associates Inc
ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.)
261 Old York Road Suite 837 | | OFFICIAL USE ONLY | | | | FIRM I.D. NO. | | | | | | (No. and Slrcct) | | | | | | | | (Slate) | | | | | | (215) 572-8700 | | | | (Area Code - Telephone Number) | | | | | | | | | | Bala Cynwyd | PA | 19004 | | (Cily) | (Sia le) | (Zip Code) | | FOR OFFICIAL USE ONLY | | | | | REPORT FOR THE PERIOD BEGINNING01/01/2020
PA | AND ENDING 12/31/2020
A. REGISTRANT IDENTIFICATION
19046
(Zip Code)
NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
B. ACCOUNTANT IDENTIFICATION
INDEPENDENT PUBLIC ACCOUNT ANT whose opinion is contained in this Report*
(Name - if i11divid11a/, .Accountant not resident in United States or any of its possessions. | *must be supported by a statement o.ffacts and circumstances relied on as the basis/or the exemption. See Section 240. I 7a-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. SEC 1410 (11-05) {1}------------------------------------------------ #### **OATH OR AFFJRMA TION** 1, \_P\_et\_e\_r A\_E\_ng\_e\_lb\_a\_ch \_\_\_\_ \_ \_ \_\_\_\_\_\_\_\_\_\_\_\_ , 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\_A-=l\_d\_en\_A-:-s\_so\_c-:-ia-:-t\_e\_s\_ln\_c \_\_\_ \_\_\_ \_\_\_\_\_ \_ \_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ • as of December 31, are trne and correct. I further swear (or affirm) that neither the company nor any partner, proprietor, principal officer or director has any proprietary interest in any account classified solely as that ~)fa customer, except as follows: Thjs report\*\* contains (check all applicable boxes): - ~ (n) Facing Pogc. - ~ / (b) Statement of Financial Condition. - ~ (c) Statement of Income (Loss) or, if there is other comprehensive income in the pcriod(s) presented, n Statement / of Comprehensive Income (as defined in ~210.1-02 of Regulation S-X). - *Y*(d) Statement of Changes in Firn111ciul Condition. - (e) Statement of Clrnnges in Stockholdern' Equity or Partners' or Sole Proprietors' C1q1itn l. - (t) Statement of Clrnngcs in Liabilities Subordinated to Claims of Creditors. - (g) Computation of Net Capital. - ) h) Computation for Determination or Reserve Requirements J>ursunnl *to* Rule I 5c3-3. - (i) Information Relating to the Possession or Control Requirements Under Ruic I 5c3-3. - (i) A Reconciliation, including approprialc explanation of the Computation of Net Capital Under Ruic I 5c3- l nnd the ' Computation for Determination of the Reserve Requirements Under Exhibit A of Rule I 5c3-3. - **iZJ** (k) A Reconciliation between the audited and unaudited Statements of Finnncinl Condition with respect to methods of *1*consolidation. - ! ; (I) An Oath or Affirmation. - *1*(m) A copy of the SJPC Supplemental Report. - (n) A report ch::~cribing any material inadcquueics found 10 ex isLor found to have ex is led since lhc date ol'thc pn:vious nudll. \*\*For conditions 1~/'cm1fi'de11Iia/ tret1t111e11I ,~f" certain portirm.1· (!/'I'1is.fili11g, see section *240.* J *7a-5(e)(3).* {2}------------------------------------------------ #### **ROMEO & CHIAVERELLI, LLC CERTIFIED PUBLIC 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, lnc.(the "Company"), as of December 31, 2020, and the related statements of operations, change~ ~ stockholders' equity and cash flows for the year then ended, and the related notes and supplementary information (col!ectlvely referred to as the "financial statements"). In our opinion, the financial statem4:intsL present fairly, in all material respects, the financial position of the Company as of December 31, 2020, and the results of its operations and its cash flows for the year ended December 31, 2020, in conformity with accounting principles generally accepted in the United States of America. **--,;**' **11 .... 1111<1** #### **Basis for Opinion** These financial statements are the responsibility of the Company's 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 regulations of the Securities and Exchange Commission and the PCAOB. .. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. #### **Auditor's Report on Supplementary Information** The supplementary information, the Computation of Net Capital under Rule 15c3-1 of the Securities and Exchange Commission and the Computation for Determination of Reserve Requirements and Information Relating to Possession or Control Requirements Under Rule 15c3-3 of the Securities and Exchange Commission OR contained in schedules I and 11,has been subjected to audit procedures performed in conjunction with the audit of the Company's financial statements. The supplementary information is the responsibility 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 - 1 - {3}------------------------------------------------ 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, we evaluated whether the supplementary information, including its form and content, is presented in conformity with 17 C.F.R. § 240. 17a-5. In our opinion, the supplementary Information is fairly stated, in all material respects, in relation to the financial statements as a whole. We have served as the Company's auditor since 2017. *C'..* March 22, 2021 Bala Cynwyd, PA 19004 {4}------------------------------------------------ #### DECEMBER 31, 2020 #### TABLE OF CONTENTS | | Page | |-----------------------------------------------------------------------------------------------|------------| | Facing Page to Form X-17A-5 2A
Affirmation of Officer 2B | | | Report of Independent Registered Public Accounting Finn | 1 -
2 | | Statement of Financial Condition | 3 | | Statement of T ncome | 4 | | Statement of Changes in Stockholders' Equity | | | Statement of Changes In Liabilities Subordinated
to Claims of General Creditors | 6 | | Statement of Cash Flows | 7 | | Notes to Financial Statements | 8 -
15 | | Supplementary Information
Schedules I, II, III | 16 -
18 | | Report of Independent Registered Public AccoW1ting Firm
On Applying Agreed-Upon Procedures | 19 -
20 | | Report of Independent Registered Public Accounting Firm Exemption
Report Review | 21 | {5}------------------------------------------------ ## ST A TEMENT Of FINANCIAL CONDITION DECEMBER 31, 2020 | ASSETS | | |----------------------------------------------------------------|---------------| | CURRENT ASSETS | | | Cash | \$
302,562 | | Restricted Cash | 25,169 | | Receivables From Brokers and Dealers | 11,988 | | Receivables From Non-Customers | 202,580 | | Right of Use Lease Asset, Net | 10,227 | | Prepaid Expenses | 76,108 | | Total Current Assets | \$
628,634 | | FURNITURE AND EQUIPMENT | | | Furniture and Equipment, at Cost | | | Net of Accumulated Depreciation of \$88,803 | 11,055 | | OTHER ASSETS | | | Security Deposits | 2,315 | | TOT AL ASSETS | \$
642,004 | | LIABILITrES AND STOCKHOLDERS' EQUITY | | | LIABILITIES | | | Other Borrowed Funds | \$
33,615 | | Accounts Payable and Accrued Expenses | 391,720 | | Lease Liabilities | 10,709 | | Deferred Revenue | 12,500 | | Total Current Liabilities | 448,544 | | STOCKHOLDERS' EQUITY | | | Common Stock. Class A, 500 shares authorized, IO issued and | | | outstanding, no par value, no stated value | 120,391 | | Common Stock. Class B, 500 shares authorized, 90 shares issued | | | and outstanding, no par value, no stated value | 20,000 | | Retained Earnings | 53,069 | | Total Stockholder's Equity | 193,460 | | TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | \$
642,004 | | | | {6}------------------------------------------------ #### STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2020 | Revenues | | | |---------------------------------------------------|---------------|--| | Commissions | 510,884
\$ | | | Interest | 621 | | | Mutual Fund Fees | 209,868 | | | Other lnCft!W§. | 4,643,315 | | | . J/Jl
~¥:enues | 5,364,688 | | | Expenses | | | | Commission Expense | 4,449,
120 | | | Employee Compensation and Benefits | 483,111 | | | Clearance Fees | 46,895 | | | Professiona
l Fees | 56,500 | | | Occupancy Expense | 25,159 | | | Communication Expense | 40,568 | | | Other Operating Expenses | 247,171 | | | Total Expenses | 5,348,524 | | | Income Before Other Income | 16,164 | | | Other Income | | | | Loan Forgiveness From Paycheck Protection Program | 55,810 | | | Net Income | 71,974
\$ | | {7}------------------------------------------------ #### ST A TEMENT OF CHANGES IN STOCKHOLDERS' EQUITY FOR THE YEAR ENDED DECEMBER 31, 2020 | Common Stock -
Class A, no par value, 500 Shares Authorized, | | | |-----------------------------------------------------------------|----|----------| | l O Shares Issued | | | | Shares Outstanding, January 1, 2020 | 10 | | | Shares Outstanding December 31
, 2020 | | 10 | | Balance, at Cost, January I, 2020 | \$ | 120,391 | | Balance, at Cost, December 31
, 2020 | \$ | 120,391 | | Common Stock -
Class B, no par value, 500 Shares Authorized, | | | | 90 shares Issued | | | | Shares Outstanding, January I, 2020 | \$ | 90 | | Shares Outstanding, December 31
, 2020 | | 90 | | Balance, at Cost, January I, 2020 | \$ | 20,000 | | Balance, at Cost, December 3 1, 2020 | \$ | 20,000 | | Retained Earnings (Deficit) | | | | Balance, January 1, 2020 | \$ | (18,905) | | Net Income | | 71,974 | | Balance, December 31, 2020 | \$ | 53,069 | | Total Stockholders' Equity | \$ | 193,460 | {8}------------------------------------------------ ## STATEMENT OF CHANGES IN LIABILITIES SUBORDINATED TO CLAIMS OF GENERAL CREDITORS FOR THE YEAR ENDED DECEMBER 31, 2020 | Subordinated Borrowings at January I, 2020 | \$
0 | |-----------------------------------------------|---------| | Changes In Subordinated Borrowings | 0 | | Subordinated Borrowings at December 3 1, 2020 | \$
0 | {9}------------------------------------------------ ## STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2020 Cash Flows From Operating Activities: | Net Income | 71,974
\$ | |-------------------------------------------------------|--------------| | Adjustments to Reconcile Net Income to Net Cash | | | Provided by Operating Activities: | | | Depreciation Expense | 4,916 | | PPP Loan Proceeds | (55,810) | | Decrease (Increase) In Assets: | | | Receivables from Brokers and Dealers | (4,373) | | Receivables from Non-Customers | 118,619 | | Right of Use Lease Asset | 24,545 | | Prepaid Expenses | (34,410) | | Increase (Decrease) In Liabilities: | | | Accounts Payable and Accrued Expenses | (513,454) | | Lease Liability | (25,702) | | Deferred Revenue | (41,669) | | Total Adjustments | (527,338) | | Net Cash Used By Operating Activities | (455,364) | | Cash Flows From Investing Activities: | | | Purchase of Furniture and Equipment | \$ (4,557) | | Increase in Restricted Cash | (4) | | Net Cash Used By Investing Activities | (4,561) | | Cash Flows From Financing Activities: | | | PPP Loan Proceeds | 55,810 | | Proceeds From Other Borrowed Funds | 42,871 | | Payments on Other Borrowing Funds | (25,261) | | Net Cash Provided By Financing Activities | 73,420 | | Net Increase In Cash | (386,505) | | Cash - Janua1y I, 2020 | 689,067 | | Cash - December 3 l, 2020 | 302,562 | | Supplemental Cash Flows Disclosures:
Interest Paid | I, 196
\$ | {10}------------------------------------------------ # NOTES TO FINANCIAL ST A TEMENTS DECEMBER 31, 2020 #### Note 1 ## 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 ("FINRA") and sells investment and insurance products. #### 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/dealer, and earnings thereupon. #### RECEIVABLES FROM BROKERS AND DEALERS AND NON-CUSTOMERS The Company considers receivables from brokers and dealers and non-customers to be fully collectible at December 31, 2020; accordingly, no allowance for doubtful accounts has been recorded. Bad debt expense was \$ - 0 - for the year ended December 31, 2020. 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 Recognifam 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 regarding the judgments used in evaluating when and how revenue is recognized and disclosures related to contract assets and liabilities. {11}------------------------------------------------ # J. ALDEN ASSOCIATES, INC. (AN S CORPORATION) ## NOTES TO FINANCfAL STATEMENTS DECEMBER 31, 2020 ## SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Note I, 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 ("SIFMA") requested relief from the SEC from the net capital impact of the lease capitalization required under ASC 842. On November 8, 2016, the SEC issued a "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 "no 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 properties 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. {12}------------------------------------------------ #### NOTES TO FINANCIAL ST A TEMENTS DECEMBER 31 , 2020 #### SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Note 1, Continued #### INCOME TAXES The Company has elected to be treated as a small 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. The federal, state and local tax returns of the Company for 20 I 6 through 2019 are subject to examination by the taxing authorities, generally for three years after they were filed. #### COMMISSIONS Commissions and related expenses are recorded on a trade-date basis as securities transactions occur. ## Note2 #### FURNITURE, EQUIPMENT AND DEPRECIATION Furniture, equipment and the related accumulated depreciation at December 31, 2020 consists of the following: | Furniture | \$
67,668 | |--------------------------------|--------------| | Computer Equipment | 25,049 | | Office Equipment | 7,141 | | Total | 99,858 | | Less: Accumulated Depreciation | 88,803 | | Net Furniture and Equipment | \$
11,055 | Depreciation expense for the year ended December 31, 2020 was \$4,916. {13}------------------------------------------------ #### NOTES TO FINANCIAL ST A TEMENTS DECEMBER 31, 2020 Note 3 #### OTHER BORROWED FUND Loan payable to AFCO. Payable in monthly installments of \$4,961.07 including interest at a rate of 9 .85% maturing July I 6, 2021. This loan is unsecured. \$ 33.615 Interest expense for the year ended December 31, 2020 was \$1,196. Note 4 #### OPERA TING LEASE COMMITMENTS The Company has entered into leasing arrangements for facilities. Rent expense incu1Ted for the year ended December 31, 2020 was \$25,091, which is incl1.1ded in occupancy expense. As of December 31, 2020, the remaining future lease payments are as follows: | May31,2021 | \$ 10,709 | |------------|-----------| | | | Total Payments Due Under Finance Lease Liabilities \$ 10.709 . The weighted average remaining lease term for the operating lease is five (5) Months. {14}------------------------------------------------ ## NOTES TO FINANCIAL ST A TEMENTS DECEMBER 31, 2020 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, 2020, there was no discretionary contribution. Note 6 #### NET CAPITAL REQUIREMENT The Company is subject to the net capital requirements of the Financial Industry Regulatory Authority ("FINRA") and the Uniform Net Capital requirements of the Securities and Exchange Commission (SEC) under Rule l 5c3-l which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. Pursuant to "FINRA" Rules, the Company is required to maintain minimum net capital of either \$5,000 or 1/15 (6 2/3%) of the aggregate indebtedness, whichever is greater. At December 31, 2020, the Company had net capital of\$79,985 which was \$50,764 in excess of the \$29,221 required to be maintained at that date. The Company's net capital ratio was 9.78 to 1. The Company has at all times during the past year been in compliance with the requirements of Rule 15c3-l. #### Note 7 #### SUBSEQUENT EVENTS Management has evaluated events through March 22, 2021, the date on which the financial statements were issued. {15}------------------------------------------------ # NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2020 Note 8 ## COMMITMENTS AND CONTINGENCIES The company can be subject to regulatory inquires that result in the assessment of fines or other sanctions. Management has determined that as of the date of the financial statement, no assessment of fines or other sanctions are imposed. In March 2020, the World Health Organization recognized the novel strand of coronavirus, COVID-19, as a pandemic. This coronavirus outbreak has severely restricted the level of economic activity around the world. In response to this coronavirus outbreak, the government of many countries, states, cities and other geographic regions have taken preventative or protective actions, such as imposing restrictions on travel and business operations and advising or requiring individuals to limit or forego their time outside of their homes. Temporary closures of businesses have been ordered and numerous other businesses have temporarily closed voluntarily. Some of these actions have continued and may continue. Given the unce11ainty regarding the spread of the coronavirus, the unrelated financial impact to the Company cannot be reasonably estimated at this time. Note 9 #### 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 n1ay 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. {16}------------------------------------------------ # NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2020 Note 10 #### DEFERRED REVENUE Deferred revenue represents affiliation fees billed in 2020 for the period beginning January I, 2021. At December 31, 2020, deferred revenue consisted of the following: Affiliation Fees \$ 12,500 Note 11 #### COMMON STOCK - CLASS B - SUBSEQUENT EVENT The original shareholder has entered into an agreement effective March 2, 2018 to sell thirtythree and one third percent (33 1/3%) of his outstanding Class B shares (90 shares) on March 2, 2018, January 1, 2020 and January 1, 2021, 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 Note 12 #### PAYCHECK PROTECTION PROGRAM On May 1, 2020, the Company received the funding of a loan from a lending institution in the aggregate amount of \$55,810 pursuant to the Paycheck Protection Program (the "PPP") under the Federal Coronavirus Aid, Relief, and Economic Security Act ("CARES Act"), which was enacted March 27, 2020. The PPP is administered by the U.S. Small Business Administration ("SBA"). The PPP loan matures May 19, 2022, and bears interest at a rate of 1.0% per year, payable monthly commencing during January I, 2021. The loan may be prepaid at any time prior to maturity with no prepayment penalties. Under the terms of the PPP, ce11ain amounts of the loan may be forgiven if they are used for qualifying expenses as described in the CARES Act. {17}------------------------------------------------ ## NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2020 Note 12, Continued #### PAYCHECK PROTECTION PROGRAM During the year ended December 31, 2020, the Company recognized government grant income of \$55,810 associated with proceeds received under the Paycheck Protection Program deemed probable to be forgiven based on the actual expenditures from the date proceeds were received by the Company through November 8, 2020, the date the 24 week covered period ended. The company plans to submit the PPP loan forgiveness application in the near term. Although the Company believes it is probable that the PPP loan will be forgiven, the Company cannot provide assurance that it will obtain forgiveness in whole or in part. {18}------------------------------------------------ ## SCHEDlJLEl COMPUTATION OF NET CAPITAL UNDER RULE I Sc3-\ OF THE SECURITIES AND EXCHANGE COMMISSlON DECEMBER 31, 2020 | NET CAPTTAJ, | | |-------------------------------------------------------------------------------------------------|-------------------| | Total Stockholder's Equity Qualified for Net Capital
Add: | \$
193,460 | | A. Subordinated Borrowings Allowable in Computation of Net Capital | 0 | | Total Capital and Allowable Subordinated Liabilities | 193,460 | | Deductions and/or Charges | | | A. Non-Allowable Assets | | | Receivables From Non-Customers | \$
23,997 | | Furniture and Equipment -
Net | 11,055 | | Other Assets | 78,423 | | Total Deductions/and or Charges | 113,475 | | Net Capital | 79,985 | | AGGREGATE INDEBTEDNESS | | | Items Included in Statement of Financial Condition: | | | Accounts Payable, Accrued and Other Liabilities | \$
438,317 | | COMPUTATION OF BASIC NET CAPITAL REQUIREMENT | | | Minimum Net Capital Required | \$
29,221 | | Ratio: Aggregate Indebtedness to Net Capital | \$
5.48 | | | | | RECONCILATION WITH COMPANY'S COMPUTATION | | | Net Capital, as Repo1ied in Company's Pait II (Unaudited) Focus Repoti
Net Audit Adjustments | \$
79,985
0 | {19}------------------------------------------------ ## SCHEDULE II COMPUTATION OF DETERMINATION OF RESERVE REQUIREMENTS UNDER RULE 15C3-3 OF THE SECURITIES AND EXCHANGE COMMISSION DECEMBER 31, 2020 The Company is exempt under Rule 15c3-3(k) 2) (ii) from preparing the Computation for Determination of Reserve Requirements Pursuant to Rule 15c3-3. {20}------------------------------------------------ ## SCHEDULE III INFORMATION RELATING TO POSSESSION OR CONTROL REQUIREMENTS UNDER RULE l 5C3-3 OF THE SECURITIES AND EXCHANGE COMMISSION DECEMBER 31, 2020 | 1. | Customer's fully paid securities and excess margin securities not
in the respondent's possession or control as of the report date
(for which instructions to reduce to possession or control had been
issued as of the report date but for which the required action under
specified under Rule l 5c3w3): | \$===0 | | |----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|--| | | A. Number of Items | \$====0 | | | | 2. Customers' fully paid securities and excess margin securities for
which instructions to reduce to possession or control had not been
issued as of the report date, excluding items arising from 'temporary
lags, which result from nom1al business operations as permitted
under Rule 15c3-3: | \$===0 | | | | A. Number of Items | \$.===o | | {21}------------------------------------------------ #### DECEMBER 31, 2020 #### TABLE OF CONTENTS | | Page | |-----------------------------------------------------------------------------------------|------------| | Independent Accountant's Agreed-Upon Procedures Report | | | On Schedule Of Assessment and Payments (form SIPC-7) | 18 -
19 | | Schedule of Assessment and Payments | | | (General Assessment Reconciliation Form SIPC-7)
For the Year Ended December 31, 2020 | 20 | {22}------------------------------------------------ #### ROMEO & CHfA VERELLI LLC ONE BALA PLAZA SUITE 234 BALA CYNWYD, PA 19004 #### **Independent Accountant's Agreed-Upon Pt·ocedurcs Report On Schedule Of Assessment And Payments (Form SIPC-7)** To The Board of Directors of: J. Alden Associates, Inc. We have perfonned the procedures included in Rule l 7a-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 (Fonn SIPC-7) for the year ended December 31, 2020. J. Alden Associates, Inc. 's man.agement is responsible for its Form STI>C-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 pa1iies 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 perfonned and our findings are as follows: · - I. Compared the listed assessment payments in Form SIJ:>C-7 with respective cash disbursement records entries, noting no differences; - 2. Compared the Total Revenue amounts reported on the Annual Audited FormX-17 A-5 for the year ended December 31, 2020, with the Total Revenue amount reported in Form SPIC-7 for the year ended December 31, 2020, noting no differences; - 3. Compared any adjustments reported in Fonn SlPC-7 with supporting schedules and working papers, noting no differences; - 4. Recalculated the arithmetical accuracy of the calculations reflected in Form SlPC-7 and in the related schedules and working papers suppo1iing the adjustments, noting no differences; and - 5. Compared the amount of any overpayment applied to the current assessment with the Form S IPC-7 on which ii was originally computed, noting no differences. {23}------------------------------------------------ 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 Associates, Inc. 's compliance with the applicable instrnctions of Form SIPC-7 for the year ended December 31, 2020. Accordingly, we do not express such an opinion or conclusion. Had we per.formed additional procedures; other matters might have come to our attention that would have been repo1ted to you. This report is intended solely for the information and use of J. Alden Associates, Inc. and the SIPC and is not intended to be and should not be used by anyone other than these specified parties. 9- Romeo & Chiuvcrclli, LLC Bala Cynwyd, PA March 22, 2021 {24}------------------------------------------------ #### SCHEDULE OF ASSESSMENT AND PAYMENTS (GENERAL ASSESSMENT RECONCILIATION FORM SIPC-7) FOR THE YEAR ENDED DECEMBER 31, 2020 | Total Revenue | \$
5,420,498 | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------| | Deductions: | | | Revenues from the distribution of shares of a registered open
end investment company or unit investment trust, from the sale
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 | (4,909,614) | | Commissions, Floor Brokerage and Clearance Fees paid to other
SIPC members in connection with securities transactions | (46,895) | | SIPC Net Operating Revenues | \$
463,989 | | General Assessment @.0015 | 696 | | Payments made with 2020 Form SIPC-6 (Paid July 31, 2020) | (355) | | Balance paid with SIPC-7 (Paid Janua1y 23, 2021) | \$
341 | {25}------------------------------------------------ #### **ROMEO & CHIA VER ELLI LLC ONE BALA PLAZA SUITE234 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. ~1Sc3-3(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, fnc. 's compliance with the exemption provisions. A review is substantially less in scope than un 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 matel'ial modifications that should be made to management's statements refotTed to above for them to be fairly stated, in all material respects, based on the provisions set forth in paragraph (k)(2)(u) of Rule **1** Sc3-3 under the Securities Exchange ct of 193 ~ Romeo & Chiaverelli, LLC Bala Cynwyd, PA March 22, 2021 {26}------------------------------------------------ *J. Alden Associates, Inc.* *Peter* A. *Engelbacl1 President* *Tlte Pavilion* P.O. Box 744 Jenkintown, PA 19046 (215) 572-8700 ww111.j-nlden.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, 2020 to December 31., 2020. - 2. J Alden Associates, Inc. met the identified exemption provisions in SEC rule 1.Sc3 (k)(2)(ii) throughout the calendar year January 1, 2020 to December 31., 2020 without exemption. Sign: ;&~ Officer: {RI;:.\$ *1* b F.: rJJ, Date Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.