# PERKINS FUND MARKETING, L.L.C. X-17A-5 (2022-03-30) — Broker-dealer annual report - Company: PERKINS FUND MARKETING, L.L.C. - Form: X-17A-5 - Filed: 2022-03-30 - Period: 2021-12-31 - Accession: 0001065360-22-000003 - CIK: 1065360 - File #: 8-51126 - Type: Broker-dealer - Material weakness: No - Auditor: Davila Advisory LLC - Auditor location: St Louis, MO - Contact: Gilman Perkins - Phone: 954-953-6351 - Email: cperkins@pfm-llc.com - Website: pfm-llc.com - Signed by: Gilman Perkins (Managing Member) Original filing: https://www.sec.gov/Archives/edgar/data/1065360/000106536022000003/PFMPublic21.pdf --- {0}------------------------------------------------ ## FINANCIAL STATEMENTS # YEAR ENDED DECEMBER 31, 2021 {1}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION** **Washington, D.C. 20549** 0MB APPROVAL 0MB Number: 3235•0123 Expires: Oct. 31, 2023 Estimated average burden hours per response: 12 # **ANNUAL REPORTS FORM X-17A-5 PART Ill** | SEC flLE NUMBER | |-----------------| | | **FACING PAGE** **Information Required Pursuant to Rules 17a-S, 17a-12, and 18a-7 under the Securities Exchange Act of 1934** | FILING FOR THE PERIOD BEGINNING | ---------
01/01/21
MM/DD/ YY | AND ENDING | ----------
12/31/21
MM/DD/YY | |-------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|------------|--------------------------------------------| | | A. REGISTRANT IDENTIFICATION | | | | NAME OF FIRM: __ | P_E_R_K_I_N_S_F_U_N_D_M_A_R_K_E_T_I N_G_, L_L_C | | ____________
_ | | TYPE OF REGISTRANT (check all applicable boxes):
0 Broker-dealer
□ Check here if respondent is also an OTC derivatives dealer | □ Security-based swap dealer | | D Major security-based swap participant | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | 4500 PGA BLVD., SUITE 204 | | | | | | (No. and Street) | | | | PALM BEACH GARDENS
(City) | FL
(State) | | 33418
(Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | GILMAN C. PERKINS | 954-953-6351 | | CPERKINS@PFM-LLC.COM | | (Name) | (Area Code-Telephone Number) | | (Email Address) | | | B. ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | | DAVILA ADVISORY LLC | (Name - if individual, state last, first, and middle name) | | | | 10135 MANCHESTER ROAD, STE 206, ST LOUIS, MO 63122 | | | | | (Address) | (City) | | (State)
(Zip Code) | | 11/21/2019 | | 6667 | | | (Date of Registration with PCAOB)(if applicable) | | | (PCAOB Registration Number, if applicable) | | • Claims for exemption from the requirement that the annual reports be covered by the reports of an independent public | FOR OFFICIAL USE ONLY | | | accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-S(e)(l)(ii), if applicable. Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid 0MB control number. {2}------------------------------------------------ ## **OATH OR AFFIRMATION** | 11 | | GILMAN C. PERKINS | |----|--|-------------------| 1, GILMAN c. PERKINS swear (or affirm) that, to the best of my knowledge and belief, the | financial report pertaining to the firm of | | PERKINS FUND MARKETING, LLC | as of | |--------------------------------------------|-----|-----------------------------------------------------------------------------------|-------| | DECEMBER 31 | 2~, | is true and correct. I further swear (or affirm) that neither the company nor any | | | | | | | partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in count classified solely as that of a customer. State of Florida County of Palm Beach Sworn to and subscribed before me this 9th day of February, 2022 by Gilman C. Perkins, ma~aging m \_\_ ~ber of Perkins Fund Marketing, LLC, who produced driver's ljten\e as idenf~cation. i • / / ) . */I ,j~..* **WALTER DEV!ti (018** | · I _/
: \ _:
/
\ | \ii~_.:~~!·) OiOt.al'"I Publk - ~tat• of Flondl
·--~~(•
(.,.,mission# HH 70196 | |----------------------------|--------------------------------------------------------------------------------------| | Notary ?ublic | ···
ioy (cmm. EXl)ir,s Oed, 2024
·· | | | | ## **This filing\*\* contains (check all applicable boxes):** - 0" (a) Statement of financial condition. - 0' (b) Notes to consolidated statement of financial condition. - D (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 (d) Statement of cash flows. - D (e) Statement of changes in stockholders' or partners' **or** sole proprietor's equity. - D (f) Statement of changes in liabilities subordinated to claims of creditors. - 0 (g) Notes to consolidated financial statements. - □ (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. - D (i) Computation of tangible net worth under 17 CFR 240.18a-2. - D (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - D (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 24D.15c3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable. - D (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.15c3•3. - D (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - D (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable. - □ (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-1, or 17 CFR 240.lBa-2, as applicable, and the reserve requirements under 17 CFR 240.1Sc3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist. - D (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - 0 (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable. - D (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - □ (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - **0 (t)** Independent public accountant's report based on an examination of the statement of financial condition. - □ (u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240.17a-5, 17 CFR 240.lBa-7, or 17 CFR 240.17a-12, as applicable. - D (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - D (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - □ (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-le or 17 CFR 240.17a-12, as applicable. - □ (y) Report describing any material inadequacies found to exist or found to have existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). D(z) Other: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_ - - \*\*To request confidential treatment of certain portions of this filing, see 17 CFR 24D.17a-5{e)(3) ar 17 CFR 240.18a-7(d}{2), as applicable. Signature: Title: MANAGING MEMBER {3}------------------------------------------------ ![](_page_3_Picture_0.jpeg) ## REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Member of Perkins Fund Marketing LLC ## **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Perkins Fund Marketing LLC (the "Company") as of December 31, 2021, and the related notes ( collectively referred to as the "financial statements"). In our opinion, the statement of financial condition presents fairly, in all material respects, the financial position of Perkins Fund Marketing LLC as of December 31, 2021 in conformity with accounting principles generally accepted in the United States of America. ## **Basis for Opinion** This financial statement is the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statement based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statement, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial 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. ## **Correction of a Material Misstatement** As discussed in Note 12 to the finacial statements, the 2020 financial statements have been restated to correct a misstatement. We have served as Perkins Fund Marketing LLC's auditor since 2020. Saint Louis, Missouri March 29, 2022 T **(314) 965-9775 F** : **(314) 476-9660 W** : **www.davilaadvisory.com A** : **10135 Manchester Rd, Suite 206, St. Louis, MO 63122** {4}------------------------------------------------ STATEMENT OF FINANCIAL CONDITION ### DECEMBER 31, 2021 ## Assets | Cash | | \$
1,563,007 | |-------------------------------------------------------------|----------------------------|-------------------------| | Accounts Receivable | | 1,731,852 | | Furniture & Fixtures
Less: Accumulated Depreciation | 149,266
\$
(134,103) | 15, 163 | | Right of Use Asset | | 85,872 | | Prepaid Expense | | 46,387 | | Other Securities | | 63,003 | | Deposit -
Rent | | 6,300 | | Totals Assets | | \$
3,511,584 | | Liabilities & Member's Eguity | | | | Accounts Payable and Accrued Liabilities
Lease Liability | | \$
573,116
87,329 | | Total Liabilities | | 660,445 | | Member's Equity:
Member's Equity | | 2,851,139 | Total Liabilities & Member's Equity \$ 3,511,584 ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS {5}------------------------------------------------ # PERKINS FUND MARKETING, LLC NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 202 1 ## 1. ORGANIZATION AND NATURE OF BUSINESS Perkins Fund Marketing LLC (the "Company") was incorporated in Delaware i n May 1999. It operates as a r egistered broker-dealer under the Secu rities and Exchange Act of 1934. The Company acts principall y as an agent in t he sale of private hedge funds. The Company's policy is to continuously monitor its exposure to marke t and counterparty risk through the use of a variety of financial position and credit exposure reporti ng and control procedures. I n addition, the Company has a policy of reviewing the credit standi ng of each broker/dealer, clearing organization, fund manager, customer and/or other count erparty with which i t conducts business. ## 2. SIGNIFICANT ACCOUNTING POLICIES The Company maintains its books and records in accordance with account ing principles generally accepted in the United States of America which require management to make estimate s and assumptions i n determining t he reported amounts of assets and liabilities and di sclosure of contingent assets and liabilities at the date of the financial statements. Actual results c ou ld differ from these estimates. The Company maintai ns its cash in bank deposit accounts. Funds deposited with a single financial institution are insured up to \$250,000 in the aggregate by the Federal Deposit Insurance Corporation ("FDIC"). At times, cash balances may exceed FDIC insured limits. The Company has not experienced any losses i n such accounts. ## 3. INCOME TAXES The Company is recognized as a single member limited l iability company (an "LLC") by the Internal Revenue Service. As such, it is treated as a disregarded enti ty and is not subj e ct to income taxes. The Company's i ncome or loss is r e portable on its owner's tax return. FASB provides guidance for how uncertain tax positions should be recogni zed, measured, disclos e d and presented in the financial stat ements. This r equir e s the evaluation of tax positions t ake n o r expected to be t aken i n t he course of preparing the Company's t ax returns to determine wh ether the tax positions are "more-likely-than-not" of being sustained "when chall enged" or "when e xamined" by the applicable tax authorit y. Tax positions not d e eme d to mee t the more-likely-than-not threshol d would be recorde d as a tax benef it o r expense and liability in the current year. Tax y e ars t hat r ema i n subject t o examination are 2018, 2019, 2020 and 2021. For t he year ended December 31, 2021 management has de ter mined that ther e are no material uncer tain i nc ome t ax positions. {6}------------------------------------------------ #### NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2021 ## 4. RULE 15C3-3 The Company amended its membership agreement with FINRA on December 21, 2020 and will not claim exemption from the provisions of Rule 15c3-3 of the SEC, in reliance on footnote 74 to SEC Release 34-70073. ## 5. NET CAPITAL REQUIREMENTS The Company is subject to the Securities and Exchange Commission 's Net Capital Rule 15c3-1, which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness t o net capital, both as defined, shall not exceed 15 to 1. At December 31, 2021, the Company had net capital of \$1,592,151 which exceeded the minimum requirement of \$38,305 by \$1,553,846. The Company's ratio of aggregate indebtedness to net capital ratio was 36.09%. #### 6. COMMITMENTS AND CONTINGENT LIABILITIES The Company leases its office space from Southport Station Office Center, at 4500 PGA Blvd., Suite 204, Palm Beach Gardens, FL 33418 under a five year operating lease. The total rent expense for 2021 was \$44,454. The c urrent lease terminates on June 30, 2025. At December 31, 2021, the minimum lease payments under the terms of the lease agreement are as follows: | Year ending December 31,
2022 | \$
26
, 784 | |--------------------------------------------|-------------------| | 2023 | 27 ,58
7 | | 2024 | 28,
4 15 | | 20 25 | 14,
417 | | Total | \$
97,203 | | Inputed Interest | (9,874) | | Net Liability as of De
c ember 31, 2021 | \$
87,329 | #### 7 . OFF BALANCE SHEET RISK The Company has no material off balance shee t credit risk as o f the f i nanc ial statement date . {7}------------------------------------------------ NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2021 ## 8. FAIR VALUE The Company carries its investments at fair value. Fair value is an estimate of the exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants (i.e., the exit price at the measurement date). Fair value measurements are not adjusted for transaction costs. At December 31, 2021, other securities valued at \$63,003 consist entirely of a l evel 1 publicly traded stock. ## 9. LEASE ACCOUNTING The Company adopted FASB accounting standard ASC 842, Leases, which governs the accounting and reporting of leases by lessees. ASC 842 generally applies to leases that have a lease term greater than 12 months at lease commencement, or that include an option to purchase the underlying asset the Company is reasonably certain to exercise. ASC 842 's principal changes are: 1) recognizing leases on the Statement of Financial Condition by recording a Right-of-use asset and a Lease Liability; 2) changes in lease expense recognition during the lease term based on its classification as an Operating lease or Finance lease; and 3) expanded disclosures of lease agreements, costs and other matters. ## 10. PROPERTY AND EQUIPMENT Fixed assets (furniture, equipment, and leasehold improvements) are stated at cost. Depreciation is recorded on a straight-line basis over the estimat ed useful life of the asset. | Furniture & Equipment | | \$
149,266 | |-----------------------|--------------------------|---------------| | | Accumulated Depreciation | (134,103) | | Total Fixed Assets | | \$
15,163 | ## 11. PAYCHECK PROTECTION PROGRAM The Company received a loan under the Paycheck Protection Program for \$133,445 on April 16, 2020. This loan, along with \$1,501 of interest expense, was 100% forgiven on May 26, 2021. {8}------------------------------------------------ NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2021 ### 12. RESTATEMENT The Company has determined its 2020 financial statements did not include revenue and associated commission expenses as required in accordance with U.S. GAAP. The Company earned \$3,471,809 in management and incentive fees for the year ended December 31, 2020 that was unrecorded. The Company incurred \$840,683 in associated commission expense for the year ended December 31, 2020 that was unrecorded. The Company received and subsequently paid these amounts in 2021. ## 13. REVENUE RECOGNITION The Company adopted ASC Topic 606, Revenue from Contracts with Customers ("ASC Topic 606"). The revenue recognition guidance requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance requires an entity to follow a five-step model to (a ) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, ( c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) the entity satisfies a performance obligation. In determining the transaction price, an entity may include variabl e consideration only to the extent that it is probabl e that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved. Revenue from contracts with customers includes commission income and fees from investment banking. The recognition and measurement of revenue is based on the assessment of individual contract terms. Significant judgment is required to determine whether performance obligations are satisfied at a point in time or over time; how to allocate transaction prices where multiple performance obligations are identified; when to recognize revenue based on the appropriate measure of the Company's progress under the contract; and whether constraints on variable consideration should be appl ied due to uncertain future events. ## 14. SUBSEQUENT EVENTS The Company evaluates events occurring after the date of the statement of financial condition for potential recognition or disclosure in its financial statements. Events have been evaluated through the date that these financial statements were available to be issued and no further information is required to be disclosed. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.