# STUART PORTFOLIO CONSULTANTS, L.P. X-17A-5 (2020-02-27) — Broker-dealer annual report
- Company: STUART PORTFOLIO CONSULTANTS, L.P.
- Form: X-17A-5
- Filed: 2020-02-27
- Period: 2019-12-31
- Accession: 0001052455-20-000001
- CIK: 1052455
- File #: 8-50721
- Material weakness: No
- Auditor: Raphael Goldberg Nikpour Cohen & Sullivan CPA's PLLC
- Auditor location: Woodbury, NY
- Contact: Edward Cohen
- Phone: 2035576070
- Signed by: Stuart Oltchick (President)
Original filing: https://www.sec.gov/Archives/edgar/data/1052455/000105245520000001/public.pdf
---
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# STUART PORTFOLIO CONSULTANTS L.P. STUART PORTFOLIO CONSULTANTS L.P.
# FINANCIAL STATEMENTS PURSUANT TO RULE 17a-5 UNDER THE SECURITES EXCHANGE ACT OF 1934 FINANCIAL STATEMENTS PURSUANT TO RULE 17a-5 UNDER THE SECURITES EXCHANGE ACT OF 1934
DECEMBER 31, 2019 DECEMBER 31, 2019
> Pubfic Public
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UNITEDSTATES OMB APPROVAL SECURITIESANDEXCHANGE COMMISSION OMB Number: 3235-0123 Washington, D.C. 20549 Expires: August 31, 2020 UNITEDSTATES OMB APPROVAL SECURITIESANDEXCI-IANGE COMMISSION OMB Number: 3235-0123 Washington, D.C. 20549 Expires: August 31, 2020
Estimated average burden Estimated average burden ANNUAL AUDITED REPORT hoursperresponse...... 12.00
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# ANNUAL AUDITED REPORT hoursperresponse...... 12.00 F0:XR)'(I:1IIIIA-5 SEC FILE NUMBER F0fill-(IR): 1II7IA-5 SEC FILE NUMBEFi
. FACING PAGE . FACING PAGE
Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 andRule l7a-5 Thereunder
| REPORT
FOR
THE
PERIOD
BEGINNING
REPORT
FOR
PERIOD
BEGINNING
THE | 01/01/201
9
01/01
[201
9 | ENDING
AND
AND
ENDING | 2/31/201
1
9
1
2,31,201
9 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|----------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------|
| | MM/DD/YY
MM/DD/YY | | MM/DD/YY
MM/DD/YY |
| A.
A. | IDENTIFICATION
REGISTRANT
IDENTIFICATION
REGISTRANT | | |
| Stuart
NAME
BROKER-DEALER:
Stuart
NAME
or
BROKER-DEALER:
OF | Consultants,
Portfolio
Portfolio
Consultants | LP
LP
, | OFFICIAL
ONLY
use
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| PRINCIPAL
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FIRM
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| Suite
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223
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, | 2
2 | | |
| | (No. and
(No.
Street)
and
Street) | | |
| New
York
New
York | NY
NY | | 10028
10028 |
| (City)
(City) | (State)
(State) | | Code)
(Zip
(Zip
Code) |
| NAME
ANDTELEPHONE
NUMBER
TELEPHONE
OF
NAME
AND
NUMBER
OF | CONTACT
IN
PERSON
PERSON
TO
TO
CONTACT | REGARD
THIS
TO
IN
REGARD
TO
THIS | REPORT
REPORT |
| Stuart
Stuart
Oltchick
Oltchick | | | (212)
(212)
360-7500
360-7500
(Area
(Area
Telephone
Telephone
Number)
Number)
Code
Code |
| B. | ACCOUNTANT
IDENTIFICATION | | —
— |
| B. | IDENTIFICATION
ACCOUNTANT | | |
| ACCOUNTANT
INDEPENDENT
PUBLIC
INDEPENDENT
PUBLIC
ACCOUNTANT
whose | opinion
contained
whose
opinion
is
is
contained | this
Report"
in
in
this
Report* | |
| Goldberg
Nikpour
Raphael
Goldberg
Raphael
Nikpour | Cohen
Sullivan,
Cohen
&
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& | CPA's
PLLC
CPA's
PLLC
, | |
| | ifindividual,
(Name
last,
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middle
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| Froehlich
Froehlich
Farm
Blvd.
97
Farm
Blvd.
97 | Woodbury
Woodbury | NY
NY | 11797
11797 |
| '(Address)
'(Address) | (City)
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(State) | (Zip
Code)
(Zip
Code) |
| CHECK
CHECK
ONE:
ONE: | | | |
| Certified
Public
Accountant
Certified
Public
Accountant | | | |
| Public
Accountant
Public
Accountant | | | |
| Accountant
resident
in
United
not | of
States
of its | | |
| Accountant
not
United
resident
in | or any
its
States
orany | possessions.
possessions. | |
| | OFFICIAL
OFFICIAL
FOR
USE
FOR
USE | ONLY
ONLY | |
| | | | |
| | | | |
\*Claimsfor exemption from the requirement that the annual report be covered by the opinion ofan independent public accountant must be supported by a statement offacts and circumstances relied on as the basisfor the exemption. See Section 240.1 7a-5(e) (2) \*Claimsfor exemptionfrom the requirement that the annual report be covered by the opinion ofan independent public accountant must be supported by a statement offacts and circumstances relied on as the basisfor the exemption. See Section 240.1 7a-5(e)(2)
Potential persons who are to respond to the collection of information contained in this form arenot required to respond SEC 1410 (1 1'05) unless the form displays a currently valid OMB control number. Potential persons who are to respond to the collection of information contained in this form are not required to respond SEC 1410 (1 1'05) unless the form displaysa currently valid OMB control number.
{2}------------------------------------------------
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{3}------------------------------------------------
Mark C. Goldberg, CPA Mark Raphael, CPA Floria Samii-Nikpour, CPA Allan B. Cohen, CPA Founding Partner: Michael R. Sullivan, CPA Melvin Goldberg, CPA Mark C. Goldberg, CPA Mark Raphael, CPA Floria Samii-Nikpour, CPA Allan B. Cohen, CPA Founding Partner: Michael R. Sullivan, CPA Melvin Goldberg, CPA
Anita C. Jacobson, CPA Anita C. Jacobson, CPA
### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Partners of Stuart Portfolio Consultants, LP To thePartners of Stuart Portfolio Consultants, LP
### Opinion on the Financial Statement Opinion on the Financial Statement
We have audited the accompanying statement of financial condition of Stuart Portfolio Consultants, LP (the "Partnership") (a limited partnership), as of December 31, 2019, and the related notes to the financial statement. In our opinion, the statement of financial condition presents fairly, in all material respects, the financial position of Stuart Portfolio Consultants, LP as ofDecember 31, 2019, in conformity with accounting principles generally accepted in the United States of America. We have audited the accompanying statement of financial condition of Stuart Portfolio Consultants, LP (the "Partnership") (a limited partnership), as of December 31 ,. 2019, and the related notes to the financial statement. In our opinion, the statement of financial condition presents fairly, in all material respects, the financial position of Stuart Portfolio Consultants, LP as of December 31, 2019, in conformity with accounting principles generally accepted in the United States of America.
### Basis for Opinion Basis for Opinion
This financial statement is the responsibility of the Partnership's management. Our responsibility is to express an opinion on the Partnership's financial statement based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Partnership in accordance with the US. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. This financial statement is theresponsibility of the Partnership's management. Our responsibility is to express an opinion on the Partnership's financial statement based on our audit. We are a public accounting firm registered with thePublic Company Accounting Oversight Board (United States) ("PCAOB") and arerequired to be independent with respect to the Partnership in accordance with the US. 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 statement is free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statement, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a testbasis, evidence regarding the amounts and disclosures in the financial statement. Our audit also included evaluating the accounting principles used and significant estimates made by management, as wellas evaluating the overall presentation of the financial statement. We believe that our audit provides a reasonable basis for our opinion. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the auditto obtain reasonable assurance about whether the financial statement is free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statement, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statement. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statement. We believe that our audit provides a reasonable basis for our opinion.
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Raphael Goldberg Nikpour Cohen & Sullivan Certified Public Accountants PLLC Raphael Goldberg Nikpour Cohen & Sullivan Certified Public Accountants PLLC
We have served as the Partnership's auditors since 2016 We have served as the Partnership's auditors since 2016
Woodbury, New York February 26, 2020 Woodbury, New York February 26, 2020
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# STUART PORTFOLIO CONSULTANTS L.P. STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2019 STUART PORTFOLIO CONSULTANTS L.P. STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2019
### ASSETS ASSETS
| Cash
Cash | | 201,133
201,133 |
|------------------------------------------------------------------------------------------------------------|--|--------------------|
| Consulting
Consulting
receivable
receivable
fees
fees | | 364,000
364,000 |
| Warrants
owned
Warrants
owned | | 10,500
10,500 |
| ofUse
of
Rights
Rights
Use
Asset
Asset | | 116,255
116,255 |
| Other
Other
assets
assets | | 13,225
13,225 |
| TOTAL
TOTAL
ASSETS
ASSETS | | 705,113
705,113 |
| | | |
| LIABILITIES
LIABILITIES
AND
AND
CAPITAL
PARTNERS'
CAPITAL
PARTNERS' | | |
| Liabilities:
Liabilities: | | |
| Accounts
Accounts
payable
payable | | 39,042
39,042 |
| Liability
Liability
Lease
Lease | | 116,255
116,255 |
| TOTAL
LIABILITIES
LIABILITIES
TOTAL | | 155,297
155,297 |
| capital
capital
Partners'
Partners' | | 549,816
549,816 |
| TOTAL
TOTAL
CAPITAL
CAPITAL
PARTNERS'
PARTNERS' | | 549,816
549,816 |
| | | |
| LIABILITIES
LIABILITIES
AND
AND
TOTAL
TOTAL
CAPITAL
CAPITAL
PARTNERS'
PARTNERS' | | 705,113
705,113 |
The accompanying notes are an integral part ofthese financial statements. The accompanying notes are an integral part ofthese financial statements.
{5}------------------------------------------------
# STUART PORTFOLIO CONSULTANTS L.P. NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2019 (continued) STUART PORTFOLIO CONSULTANTS L.P. NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2019 (continued)
#### NOTE 1. ORGANIZATION AND NATURE OF BUSINESS ACTIVITY NOTE 1. ORGANIZATION AND NATURE OF BUSINESS ACTIVITY
Stuart Portfolio Consultants LP. (the "Partnership") was formed on January 28, 1998 under the laws of the state of Delaware as a limited partnership. The Partnership is registered as a broker dealer under the Securities Exchange Act of 1934 and is a member of the Financial Industry Regulatory Authority, Inc. The Partnership earns consulting fees by acting as a selling agent for private placement investments or direct participation interests in other investment vehicles. Accordingly, the Partnership does not carry customers' accounts and does not receive, deliver or hold cash or securities in connection with its selling activities. Fees from these activities are earned quarterly based on a percentage of the fees charged by the investment partnerships to the underlying investors. The General Partner of the Partnership is Stuart Portfolio Consultants LLC (the "General Partner"). Stuart Portfolio Consultants LP. (the "Partnership") was formed on January 28, 1998 underthe laws of the state of Delaware as a limited partnership. The Partnership is registered as a broker dealer under the Securities Exchange Act of 1934 and is a member of the Financial Industry Regulatory Authority, Inc. The Partnership earns consulting fees by acting as a selling agent for private placement investments or direct participation interests in other investment vehicles. Accordingly, the Partnership does not carry customers' accounts and doesnot receive, deliver or hold cash or securities in connection with its selling activities. Fees from these activities are earned quarterly based on a percentage of the fees charged by the investment partnerships to the underlying investors. The General Partner of the Partnership is Stuart Portfolio Consultants LLC (the "General Partner").
#### NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
# Basis of presentation Basis of presentation
The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. The General Partner believes that the estimates utilized in preparing its financial statements are reasonable and prudent, however, actual results could differ from these estimates. The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. The General Partner believes that the estimates utilized in preparing its financial statements are reasonable and prudent, however, actual results could differ from these estimates.
### Recent accounting pronouncements Recent accounting pronouncements
In February 2016, the FASB issued ASU 2016-02 Leases ("ASU 2016— 02"). This update requires all leases with a term greater than 12 months to be recognized on the balance sheet through a right ofuse asset and a lease liability and the disclosure of key information pertaining to leasing arrangements. This new guidance is effective foryears beginning after December 15, 2018, with early adoption permitted. The Partnership has adopted ASU 2016-02. In February 2016, the FASB issued ASU 2016-02 Leases ("ASU 2016- 02"). This update requires all leases with a term greater than 12 months to be recognized on the balance sheet through a right ofuse asset and a lease liability and the disclosure of key information pertaining to leasing arrangements. This new guidance is effective for years beginning after December 15, 2018, with early adoption permitted. The Paltnership has adopted ASU 2016-02.
### Revenue recognition Revenue recognition
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which will supersede nearly all existing revenue recognition guidance under accounting principles generally accepted in the United States. The core principle ofthis ASU is that revenue should be In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which will supersede nearly all existing revenue recognition guidance underaccounting principles generally accepted in the United States.The core principle of this ASU is that revenue should be
These financial statements and schedules are deemed confidential pursuant to subparagraph (e)(3) of Rule l7a—5 ofthe Securities Exchange Commission. These financial statements and schedules are deemed confidential pursuant to subparagraph (e)(3) of Rule 17a—5 of the Securities Exchange Commission.
{6}------------------------------------------------
# STUART PORTFOLIO CONSULTANTS L.P. NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2019 (continued) STUART PORTFOLIO CONSULTANTS L.P. NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2019 (continued)
#### NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
### Revenue recognition (continued) Revenue recognition (continued)
recognized for the amount of consideration expected to be received for promised goods orservices transferred to customers. This ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and assets recognized for costs incurred to obtain or fulfill a contract. ASU 2014-09 was scheduled to be effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is notpermitted. In August 2015, the FASB issued ASU 2015—14, Revenue from Contracts with Customers (Topic 606): Deferral ofEffective Date, which defers the effective date ofASU 2014- 09 by one year and allows entities to early adopt, but no earlier than the original effective date. ASU 2014-09 will now be effective for the Partnership for the annual reporting period beginning January 1, 2018. This update allows for either full retrospective or modified retrospective adoption. In April 2016, the FASB issued ASU 2016—10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which amends guidance previously issued on these matters in ASU 2014-09. The effective date and transition requirements of ASU 2016-10 are the same as those for ASU 2014-09. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow Scope Improvements and Practical Expedients, which clarifies certain aspects ofthe guidance, including assessment of collectability, treatment of sales taxes and contract modifications, and providing certain technical corrections. The effective date and transition requirements of ASU 2016-12 are the same as those forASU 2014—09. recognized for the amount of consideration expected to be received for promised goods or services transferred to customers. This ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and assets recognized for costs incurred to obtain or fulfill a contract. ASU 2014-09 was scheduled to be effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. In August 2015, the FASB issuedASU 2015-14, Revenue from Contractswith Customers (Topic 606): Deferral ofEffective Date, which defers the effective date ofASU 2014- 09 by oneyear and allows entities to early adopt, but no earlierthan the original effective date. ASU 2014-09 will now be effective for the Partnership for the annual reporting period beginning January 1, 2018. This update allows for either fullretrospective or modified retrospective adoption. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which amends guidance previously issued on these matters in ASU 2014-09. The effective date and transition requirements of ASU 2016-10 are the same as those for ASU 2014-09. In May 2016, the FASB issuedASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow Scope Improvements and Practical Expedients, which clarifies certain aspects ofthe guidance, including assessment of collectability, treatment of sales taxes and contract modifications, and providing certain technical corrections. The effective date and transition requirements of ASU 2016-12 are the same as those for ASU 2014-09.
The Partnership has evaluated the new guidance and the adoption is not expected to have a significant impact on the Partnership's financial statements and a cumulative effect adjustment under the modified retrospective method of adoption will not be necessary. The Partnership has evaluated the new guidance and the adoption is not expected to have a significant impact on the Partnership's financial statements and a cumulative effect adjustment under the modified retrospective method of adoption will not be necessary.
### Cash and cash equivalents Cash and cash equivalents
The Partnership considers all highly liquid investments purchased with a maturity ofthree months orless to be cash equivalents. The Partnership considers all highly liquid investments purchased with a maturity ofthree months or less to be cash equivalents.
### Income taxes Income taxes
No provision for federal or state income taxes has been made since the Partnership is nota taxable entity. The partners are individually liable for the No provision for federal or state income taxes has been made since the Partnership is not a taxable entity. The partners are individually liable for the
These financial statements and schedules are deemed confidential pursuant to subparagraph (e)(3) of Rule 17a—5 ofthe Securities Exchange Commission. These financial statements and schedules are deemed confidential pursuant to subparagraph (e)(3) of Rule 17a-5 of the Securities Exchange Commission.
{7}------------------------------------------------
# STUART PORTFOLIO CONSULTANTS L.P. NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2019 (continued) STUART PORTFOLIO CONSULTANTS L.P. NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2019 (continued)
#### NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
### Income taxes (continued) Income taxes (continued)
taxes on their share of the Partnership's income or loss. The Partnership is, however, subject to the New York City Unincorporated Business Tax ("UBT"). Since the Partnership operated at a net loss for the year ended December 31, 2019, there is no provision for UBT for the year. taxes on their share of the Partnership's income or loss. The Partnership is, however, subject to the New York CityUnincorporated Business Tax ("UBT"). Since the Partnership operated at a net loss for the year ended December 31, 2019, there is no provision for UBT for the year.
ASC 740 provides guidance forhow uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. ASC 740 requires the evaluation oftax positions taken or expected to be taken in the course of preparing the Partnership's tax returns to determine whether the tax positions are "more—likely—than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likelythan—not threshold would be recorded as a tax benefit or expense in the current year. The tax years that remain subject to examination are 2018, 2017 and 2016. The Partnership determined thatthere are no uncertain tax positions which would require adjustments ordisclosures on the financial statements. ASC 740 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. ASC 740 requires the evaluation oftax positions taken or expected to be taken in the course of preparing the Partnership's tax returns to determine whether the tax positions are "more-likely-than—not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likelythan-not threshold would be recorded as a tax benefit or expense in the current year. The tax years that remain subject to examination are 2018, 2017 and 2016. The Partnership determined that there are no uncertain tax positions which would require adjustments or disclosures on the financial statements.
The Partnership has a deferred UBT income tax asset of approximately \$55,000 at December 31, 2019 related to the net operating loss carry forwards. A valuation allowance has been established offsetting the \$55,000, as the ultimate realization of these benefits is uncertain. The Partnership had net operating loss carry forwards of approximately \$1,369,000 as of December 31, 2019 which begin to expire in 2033. The Partnership has a deferred UBT income tax asset of approximately \$55,000 at December 31,2019 related to the netoperating loss carry forwards. A valuation allowance hasbeen established offsetting the\$55,000, as the ultimate realization of these benefits is uncertain. The Partnership had net operating loss carry forwards of approximately \$1,369,000 as ofDecember 31, 2019 which begin to expire in 2033.
The valuation allowance decreased by approximately \$17,400 forthe year ended December 31, 2019. The valuation allowance decreased by approximately \$17,400 for the year ended December 31, 2019.
# Concentrations of credit risk Concentrations of credit risk
The Partnership maintains its cash balances at financial institutions. Accounts at the institutions are insured by the Federal Deposit Insurance Corporation up to \$250,000. The Partnership maintains its cash balances at financial institutions. Accounts at the institutions areinsured by theFederal Deposit Insurance Corporation up to\$250,000.
In the course of its business, the Partnership enters into engagements with various clients. In the event clients do not fulfill their obligations, the Partnership may be exposed to risk. The risk of default depends on the credit worthiness of the client. It is the Partnership's policy to review, as necessary, the credit standing ofeach client with which it conducts business and, generally, requires no collateral from its clients. There were no accounts receivable amounts written-off in 2019. In the course of its business, the Partnership enters into engagements with various clients. In the event clients do not fulfill their obligations, the Partnership may be exposed to risk. The risk of default depends on the credit worthiness of the client. It is the Partnership's policy to review, as necessary, the credit standing ofeach client with which itconducts business and, generally, requires no collateral from its clients.There were no accounts receivable amounts written-off in 2019.
These financial statements and schedules are deemed confidential pursuant to subparagraph (e)(3) of Rule l7a—5 ofthe Securities Exchange Commission. These financial statements and schedules are deemed confidential pursuant to subparagraph (e)(3) of Rule l7a—5 of the Securities Exchange Commission.
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# STUART PORTFOLIO CONSULTANTS L.P. EXEMPTION REPORT REQUIRED BY SEC RULE 17a—5, 17 C.F.R. FOR THE YEAR DECEMBER 31, 2019 (continued) STUART PORTFOLIO CONSULTANTS L.P. EXEMPTION REPORT REQUIRED BY SEC RULE l7a—5, 17 C.F.R. FOR THE YEAR DECEMBER 31, 2019 (continued)
#### NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
# Concentrations of credit risk (continued) Concentrations of credit risk (continued)
For the year ended December 31, 2019, the Partnership had two customers that collectively accounted for 94% ofrevenue. For the year ended December 31, 2019, the Partnership had two customers that collectively accounted for 94% ofrevenue.
# Allocation ofprofits and losses Allocation ofprofits and losses
The Partnership's netincome or loss for any fiscal year is allocated to all the partners in accordance with their percentage interests as defined in the Partnership's limited partnership agreement. The Partnership's net income or loss for any fiscal year is allocated to all the partners in accordance with their percentage interests as defined in the Partnership's limited partnership agreement.
### Fair value of financial instruments Fair value of financial instruments
The fair value of the Partnership's assets and liabilities, which qualify as financial instruments under Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 825 "Financial Instruments — Overall Disclosure", approximates the carrying amounts presented in the statement of financial condition. The fair value of the Partnership's assets andliabilities, which qualify as financial instruments under Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 825 "Financial Instruments — Overall Disclosure", approximates thecarrying amounts presented in the statement offinancial condition.
### Warrants Owned Warrants Owned
Equity Warrants are recorded on a trade-date basis and are carried at fair value. Realized gains and losses on these warrants are included in the accompanying statement ofoperations. The difference between the costand the fair value of open warrants is reflected as unrealized appreciation or depreciation on warrants, and any change in thatamount from the prior year is reflected as net change in unrealized appreciation or depreciation ofwarrants in the accompanying statement of operations. Interest income is recognized under the accrual basis. Dividend income is recognized on the eX-dividend date. Equity Warrants are recorded on a trade-date basis and are carried at fair value. Realized gains and losses on these warrants are included in the accompanying statement ofoperations. The difference between the cost and the fair value of open warrants is reflected as unrealized appreciation or depreciation on warrants, and any change in that amount from the prior year is reflected as net change in unrealized appreciation or depreciation ofwarrants in the accompanying statement ofoperations. Interest income is recognized under the accrualbasis. Dividend income is recognized on the eX-dividend date.
#### NOTE 3. FAIR VALUE OF FINANCIAL INSTRUMENTS NOTE 3. FAIR VALUE OF FINANCIAL INSTRUMENTS
As described in Note 1, the Partnership records its investments at fair value. 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. The Partnership utilizes valuation techniques to maximize the use of observable inputs and minimize the use of unobservable inputs. Assets and liabilities recorded at fair value are categorized within the fair value hierarchy based upon the levelofjudgment associated with the inputs used to measure their value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the As described in Note 1, the Partnership records its investments at fair value. 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. The Partnership utilizes valuation techniques to maximize the use of observable inputs and minimize the use of unobservable inputs. Assets and liabilities recorded at fair value are categorized within the fair value hierarchy based upon the level ofjudgment associated with the inputs used to measure their value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the
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# STUART PORTFOLIO CONSULTANTS L.P. EXEMPTION REPORT REQUIRED BY SEC RULE l7a—5, l7 C.F.R. FOR THE YEAR DECEMBER 31, 2019 (continued) STUART PORTFOLIO CONSULTANTS L.P. EXEMPTION REPORT REQUIRED BY SEC RULE l7a—5, 17 C.F.R. FOR THE YEAR DECEMBER 31, 2019 (continued)
#### NOTE 3. FAIR VALUE OF FINANCIAL INSTRUMENTS (continued) NOTE 3. FAIR VALUE OF FINANCIAL INSTRUMENTS (continued)
lowest priority to unobservable inputs (Level 3). Inputs are broadly defined as assumptions market participants would use in pricing an asset or liability. lowest priority to unobservable inputs (Level 3). Inputs are broadly defined as assumptions market participants would use in pricing an asset or liability.
The three levels ofthe fair value hierarchy are described below: The three levels ofthe fair value hierarchy are described below:
| Level
Level
1:
1: | for
for
liabilities
liabilities
in
in
Unadjusted
quoted
prices
identical
identical
or
or
Unadjusted
quoted
prices
assets
assets
ability
ability
active
active
markets
markets
that
that
the
Partnership
Partnership
the
to
to
the
has
the
at
at
has
access
access
of
of
in
in
in
Level
Level
in
measurement
The
The
investments
investments
the
the
measurement
types
types
date.
date.
1
1
include
include
listed
listed
andlisted
listed
derivatives.
active
active
markets
markets
equities
equities
derivatives.
and |
|----------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Level
Level
2:
2: | within
within
Level
Level
Inputs
Inputs
other
other
than
than
quoted
quoted
prices
prices
that
that
are
are
1
1
for
liability,
liability,
for
directly
directly
orindirectly.
or
or
either
or
indirectly.
observable
observable
the
the
either
asset
asset |
| Level
Level
3:
3: | for
liability
liability
for
Inputs
Inputs
that
that
unobservable
or
or
that
that
unobservable
the
the
and
are
are
asset
asset
and
if
if
little,
little,
activity
activity
include
include
market
market
situations
situations
where
where
there
there
is
is
any,
any,
for
liability.
liability.
for
or
or
the
the
asset
asset |
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, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models orinputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree ofjudgment exercised in determining fair value is greatest for instruments categorized in Level 3. The availability of observable inputs canvary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yetestablished in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that 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 ofjudgment exercised in determining fair value is greatest for instruments categorized in Level 3.
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Partnership's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In suchcases, an investment's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Partnership's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment.
The Partnership assessed the Warrants owned at Level 3 forthe year ended December 31, 2019. The Partnership assessed the Warrants owned at Level 3 for the year ended December 31, 2019.
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# STUART PORTFOLIO CONSULTANTS L.P. EXEMPTION REPORT REQUIRED BY SEC RULE l7a—5, l7 C.F.R. FOR THE YEAR DECEMBER 31, 2019 (continued) STUART PORTFOLIO CONSULTANTS L.P. EXEMPTION REPORT REQUIRED BY SEC RULE l7a—5, 17 C.F.R. FOR THE YEAR DECEMBER 31, 2019 (continued)
#### NOTE 4. NET CAPITAL REQUIREMENTS NOTE 4. NET CAPITAL REQUIREMENTS
The Partnership is subject to the SEC Uniform Net Capital Rule (SEC 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 1.Equity capital may notbe withdrawn or cash dividends paid ifthe resulting net capital ratio would exceed, 10 to 1. At December 31, 2019, the Partnership had netcapital of \$162,091, which was \$157,091 in excess of its required net capital of \$5,000. The Partnership's netcapital ratio was 24.09 to 1. The Partnership does nothandle cash or securities on behalfof customers. Therefore, the Partnership is exempt from SEC Rule 150 3-3. The Partnership is subject to the SEC Uniform Net CapitalRule (SEC 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 1. Equity capital may not be withdrawn or cash dividends paid ifthe resulting net capital ratio would exceed, 10 to 1. At December 31, 2019, the Partnership had net capital of \$162,091, which was \$157,091 in excess of its required net capital of \$5,000. The Partnership's net capital ratio was 24.09 to 1. The Partnership does not handle cash or securities on behalfof customers. Therefore, the Partnership is exempt from SEC Rule 15c 3-3.
#### NOTE 5. COMMITMENTS AND CONTINGENT LIABILITIES NOTE 5. COMMITMENTS AND CONTINGENT LIABILITIES
On November 1, 2012 the Partnership renewed its original lease term to commence on November 1, 2016 and end on October 31, 2021. The annual rent under the agreement is \$64,800. The lease agreement called for a security deposit in the amount of \$8,100, which will be returned at the end of the lease term. As such, it has been determined by the Company this is a lease under the provisions ofASC 842. On November 1, 2012 the Partnership renewed its original lease term to commence on November 1, 2016 and end on October 31, 2021. The annual rent under the agreement is \$64,800. The lease agreement called for a security deposit in the amount of \$8,100, which will be returned at the endof the lease term. As such, it has been determined by the Company this is alease under the provisions ofASC 842.
As of December 31, 2019, future minimum lease rental payments are payable as follows: As ofDecember 31,2019, future minimum lease rental payments are payable as follows:
| Period
Period
ending
October
ending
October
31
31 | Commitment
Commitment
Lease
Lease |
|------------------------------------------------------------------------|--------------------------------------------|
| 2020 | 64,800 |
| 2020 | 64,800 |
| 2021 | 54,000 |
| 2021 | 54,000 |
| | 18,800
18,800
§
\$
1
1 |
The Partnership had no equipment rental commitments, no underwriting commitments, and no contingent liabilities at December 31, 2019 or during the year then ended. The Partnership had no equipment rental commitments, no underwriting commitments, and no contingent liabilities at December 31, 2019 or during the year then ended.
#### NOTE 6. GUARANTEES NOTE 6. GUARANTEES
FASB ASC 460, Guarantees, requires the Partnership to disclose information about its obligations under certain guarantee arrangements. FASB ASC 460 defines guarantees as contracts and indemnification agreements that contingently require a guarantor to make payments to the guaranteed party based on changes in an underlying value (such as an interest or foreign exchange rate, security orcommodity price, an index or the occurrence or FASB ASC 460, Guarantees, requires the Partnership to disclose information about its obligations under certain guarantee arrangements. FASB ASC 460 defines guarantees as contracts and indemnification agreements that contingently require a guarantor to make payments to the guaranteed party based on changes in an underlying value (such as an interest or foreign exchange rate, security or commodity price, an index or the occurrence or
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# STUART PORTFOLIO CONSULTANTS L.P. EXEMPTION REPORT REQUIRED BY SEC RULE 17a—5, 17 C.F.R. FOR THE YEAR DECEMBER 31, 2019 (continued) STUART PORTFOLIO CONSULTANTS L.P. EXEMPTION REPORT REQUIRED BY SEC RULE 17a—5, 17 C.F.R. FOR THE YEAR DECEMBER 31, 2019 (continued)
### NOTE 6. GUARANTEES (continued) NOTE 6. GUARANTEES (continued)
nonoccurrence of a specified event) related to an asset, liability or equity security ofa guaranteed party. This guidance also defines guarantees as contracts that contingently require the guarantor to make payments to the guaranteed party based on another entity's failure to perform under an agreement, as wellas indirect guarantees ofthe indebtedness of others nonoccurrence of a specified event) related to an asset, liability or equity security of a guaranteed party. This guidance alsodefines guarantees as contracts that contingently require the guarantor to make payments to the guaranteed party based on another entity's failure to perform under an agreement, as well as indirect guarantees ofthe indebtedness of others
The Partnership has issued no guarantees effective at December 31, 2019 or during the year then ended. The Partnership has issued no guarantees effective at December 31, 2019 or during the year then ended.
NOTE 7. SUBSEQUENT EVENTS NOTE 7. SUBSEQUENT EVENTS
> Subsequent events have been evaluated through February 26,2020, the date the financial statements were available to be issued. There have been no events requiring rec Subsequent events have been evaluated through February 26, 2020, the date the financial statements were available to be issued. There have been no events requiring rec
Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.