# PERKINS FUND MARKETING, L.L.C. X-17A-5 (2023-03-13) — Broker-dealer annual report

- Company: PERKINS FUND MARKETING, L.L.C.
- Form: X-17A-5
- Filed: 2023-03-13
- Period: 2022-12-31
- Accession: 0001065360-23-000001
- CIK: 1065360
- File #: 8-51126
- Type: Broker-dealer
- Material weakness: No
- Auditor: Davila Advisory LLC
- Auditor location: S. Louis, MO
- Contact: Gilman C. Perkins
- Phone: 954-953-6351
- Email: cperkins@pfm-llc.com
- Website: pfm-llc.com
- Signed by: Gilman C. Perkins (Managing Member)

Original filing: https://www.sec.gov/Archives/edgar/data/1065360/000106536023000001/PFMPublic2022.pdf

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# **FINANCIAL STATEMENTS**

# YEAR ENDED DECEMBER 31, 2022

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|                                                                                                           | UNITED STATES                                              |            | 0MB APPROVAL<br>0MB Number: 3235-0123              |  |  |
|-----------------------------------------------------------------------------------------------------------|------------------------------------------------------------|------------|----------------------------------------------------|--|--|
|                                                                                                           | SECURITIES AND EXCHANGE COMMISSION                         |            |                                                    |  |  |
|                                                                                                           | Washington, D.C. 20549                                     |            | Expire5: Oct. 31, 2023<br>Estimated average burden |  |  |
|                                                                                                           |                                                            |            | hours per response: 12                             |  |  |
|                                                                                                           | ANNUAL REPORTS                                             |            | SEC FILE NUMBER                                    |  |  |
|                                                                                                           | FORM X-17A-S                                               |            | 8-51126                                            |  |  |
|                                                                                                           | PART Ill                                                   |            |                                                    |  |  |
|                                                                                                           | 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                                                                           | ___<br>__<br>0_11_0_1/_2_2                                 | AND ENDING | ___<br>__<br>12_/_3_1/_22<br>_                     |  |  |
|                                                                                                           | MM/DD/YY                                                   |            | MM/DD/YY                                           |  |  |
|                                                                                                           | A. REGISTRANT IDENTIFICATION                               |            |                                                    |  |  |
| Perkins Fund Marketing, LLC<br>NAME OF FIRM:                                                              |                                                            |            |                                                    |  |  |
|                                                                                                           |                                                            |            |                                                    |  |  |
| TYPE OF REGISTRANT (check all applicable boxes):                                                          |                                                            |            |                                                    |  |  |
| I[) Broker-dealer<br>D Check here if respondent is also an OTC derivatives dealer                         | D Security-based swap dealer                               |            | D Major security-based swap participant            |  |  |
| ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.)                                       |                                                            |            |                                                    |  |  |
| 1001 NUS Highway I, Suite 204                                                                             |                                                            |            |                                                    |  |  |
|                                                                                                           | (No. and Street)                                           |            |                                                    |  |  |
| Jupiter                                                                                                   | FL                                                         |            | 33477                                              |  |  |
| (City)                                                                                                    | (State)                                                    |            | (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) |            |                                                    |  |  |
|                                                                                                           | St. Louis                                                  | MO         | 63122                                              |  |  |
|                                                                                                           | (City)                                                     | (State)    | (Zip Code)                                         |  |  |
| 11/21/2019                                                                                                |                                                            | 6667       |                                                    |  |  |
| 10135 Manchester Road, Suite 206<br>(Address)<br>T'"' ,,                                                  | ,;,uatioo w;th PCAOB)(• ap•;cable) FOR OFFIOAL USE ONLY    | (PCAOB "'" | """"" N=be<, ;f,ppUcab•J I                         |  |  |
|                                                                                                           |                                                            |            |                                                    |  |  |

CFR 240.l 7a-5(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.

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# **OATH OR AFFIRMATION**

| Gilman C. Perkins<br>I,                    |                              | swear (or affirm) that, to the best of my knowledge and belief, the                                   | ~                      |
|--------------------------------------------|------------------------------|-------------------------------------------------------------------------------------------------------|------------------------|
| financial report pertaining to the firm of |                              | Perkins Fund Marketina, LLC                                                                           | , as of                |
| December 3 I                               |                              | 2 022 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 | ount classified solely |
| as that of a customer                      | C, DANNENHAUER<br>MICHAEL    |                                                                                                       |                        |
|                                            | Notary<br>Publk:             |                                                                                                       |                        |
|                                            | State<br>of<br>Florida       | Signature:                                                                                            |                        |
|                                            | n ;""."'-'~.~ Comm# HH336259 |                                                                                                       |                        |
|                                            | Expires 11/29/2026           | Title: Managing Member                                                                                |                        |

# **This filing\*\* contains (check all applicable boxes):**

- IXI (a) Statement of financial condition.
- IXl {b) Notes to consolidated statement of financial condition.
- □ {c) Statement of income (loss) or, if there is other comprehensive income In the period(s) presented, a statement of comprehensive income (as defined in§ 210.1-02 of Regulation S-X).
- □ (d) Statement of cash flows.
- D (e) Statement of changes in stockho'lders' or partners' or sole proprietor's equity.
- D (fl Statement of changes in liabilities subordinated to claims of creditors,
- □ (g) Notes to consolidated financial statements.
- □ (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-l, as applicable.
- D (i) Computation of tangible net worth under 17 CFR 240.18a-2,
- □ (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3.
- D (kl Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or E><hibit A to 17 CFR 240.18a-4, as applicable.
- □ (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.15c3-3,
- □ (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-l, 17 CFR 240.18a-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.lBa-4, as applicable, if material differences exist, or a statement that no material differences exist.
- □ (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition.
- IXI (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.
- □ (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.
- IXI (t) Independent public accountant's report based on an examination of the statement of financial condition.
- D (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 240.18a-7, or 17 CFR 240.17a-12, as applicable.
- □ (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.
- □ (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.lSa-7, as applicable.
- D (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 240.l7a-5{e)(3) or 17 CFR 240.18a-7(d)(2), as applicable.

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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, 2022, 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, 2022 in confonnity 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.

We have served as Perkins Fund Marketing LLC's auditor since 2020.

Saint Louis, Missouri March 6, 2023

**T (314) 965-9775** F : **(314) 476-9660 w** : **www.davilaadvisory.com**  A : 10135 Manchester **Rd,** Suite 206, St. Louis, MO 63122

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#### STATEMENT OF FINANCIAL CONDITION

# DECEMBER 31 , 2022

# Assets

| Cash                                                         |                         | \$<br>908,682            |
|--------------------------------------------------------------|-------------------------|--------------------------|
| Accounts Receivable                                          |                         | 100 , 184                |
| Furniture & Fixtures<br>\$<br>Less: Accumulated Depreciation | 149, 266<br>(134 , 103) | 15,163                   |
| Right of Use Asset                                           |                         | 63,156                   |
| Prepaid Expense                                              |                         | 51 , 054                 |
| Other Securities                                             |                         | 55 , 215                 |
| Deposit -<br>Rent                                            |                         | 6, 300                   |
| Totals Assets                                                |                         | \$<br>1, 199, 754        |
| Liabilities & Member<br>' s Eq uity                          |                         |                          |
| Accounts Payable and Accrued Liabilities<br>Lease Liability  |                         | \$<br>59, 945<br>65, 189 |
| Total Liabilities                                            |                         | 125 , 134                |

Member ' s Equity: Member ' s Equity To tal Liabilities & Member ' s Equity 1, 074 , 620 \$ 1 , 199 , 754

ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENT

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PERKINS FUND MARKETING , LLC NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31 , 2022

#### 1 . ORGANIZATION AND NATURE OF BUSINESS

Perkins Fund Marketing LLC (the "Company" ) was incorporated in Delaware in May 1999 . It operates as a registered broker-dealer under the Securities and Exchange Act of 1934. The Company acts principally as an agent in the sale of private hedge funds.

The Company ' s policy is to continuously monitor its exposure to market and counterparty risk through the use of a variety of financial position and credit exposure reporting and control procedures. In addition, the Company has a policy of reviewing the credit standing of each broker/dealer, clearing organization, fund manager, customer and/or other counterparty with which it conducts business .

# 2 . SIGNIFICANT ACCOUNTING POLICIES

The Company maintains its b ooks and reco rds in accordance with accounting principles generally accepted in the United States o f America which require management to make estimates and assumptions in determining the reported amounts of assets and liabilities and disclosure o f c ontingent assets and liabilities at the date of the financial statements. Actual results could differ from these estimates.

The Company maintains 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 Depo sit Insurance Co rporatio n ( " FDIC" ) . At times, cash balances may exceed FDIC insured limits. The Company has not experienced any losses in such accounts.

# 3 . INCOME TAXES

The Company is recognized as a single member limited "LLC" ) by the Internal Revenue Service. As such, disregarded entity and is not subject to income taxes . or loss is reportable on its owner' s tax return . liability company (an it is treated as a The Company ' s income

FASB provides guidance for how uncertain tax positions should be recognized, measured, disclosed and presented in the financial statements. This requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Company' s tax returns to determine whether the tax positions are "more-likely-than-not " of being sustained "when challenged" or "when examined" by the applicable tax authority , Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense and liability in the current year . Tax years that remain subject to examination are 2019 , 2020 , 2021 and 2022. For the year ended December 31, 2022 management has determined that there are no material uncertain income tax positions.

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#### NOTES TO FINANCIAL STATEMENTS

# FOR THE YEAR ENDED DECEMBER 31, 2022

# *4 .* RULE 15C3-3

The Company amended its membership agreement with FINRA on December 21 , 2020 and will not claim exemptio n from t he provisions of Rule 15c3-3 of the SEC, in relianc e on footno te 74 t o SEC Rel ease 34-70073 .

#### 5 . NET CAPITAL REQUIREMENTS

The Company is subj <sup>e</sup> ct 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 to net capital, both as defined, shall not exceed 15 to 1 . At December 31 , 2022, the Company had net capital o f \$923 , 120 which exceeded the minimum requirement of \$5,000 by \$918,120 . The Company ' s ratio of aggregate indebtedness to net capital ratio was 6 . 7 1% .

# 6 . COMMITMENTS AND CONTINGENT LIABILITIES

The Company leases its office space from 4500 PGA Blvd J <sup>o</sup> int Venture LLP, at 4500 PGA Blvd ., Suite 204, Palm Beach Gardens, FL 33418 under a five year operating lease . The total rent expense for 2022 was \$62,945. The current lease terminates on June 30, 2025 . As the Company' s lease does not provide an implicit discount rate , the Company has assumed a 6 discount rate, based on an estimate of the rate of interest the Company would have to pay on a collateralized basis over a similar term. In 2022 , the Company Sub leased it's office space and earned \$29 , 635 in sub lease income, as shown on the statement of operation for the year ended December 31 , 2022.

At December 31, 2022 , the minimum l ease payments under the terms of the lease agreement are as follows :

| Net Liability as of December 31, 2022 |      | \$<br>65 , 189 |
|---------------------------------------|------|----------------|
| Inputed Interest                      |      | (5 , 230)      |
| Total                                 |      | \$<br>70 , 419 |
|                                       | 2025 | 14 , 417       |
|                                       | 2024 | 28 , 415       |
| Year ending December 31<br>,          | 2023 | 27 , 587       |

# 7. OFF BALANCE SHEET RISK

The Company has no material off balance sheet credit risk as of the financial statement date.

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#### NOTES TO FINANCIAL STATEMENTS

FOR THE YEAR ENDED DECEMBER 31, 2022

#### 8 . FAIR VALUE

The Company carries its investments at fair value . Fair value is an estimate <sup>o</sup> f the exit pric <sup>e</sup> , representing the amount that wo uld be received to sell an asset or paid t o transfer a liability in an orderly transaction between market participants (i . <sup>e</sup> ., the exit price at the measurement date). Fair value measurements are not adjusted for transactio n costs. At December 31 , 2022, other securities valued at \$55, 215 c onsist entirely of a level 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, o r that include an option to purchase the underlying asset the Company is reaso nably 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 (furnitur <sup>e</sup> , equipment, and l easehold improvements) are stated at cost. Depreciatio n is recorded **on a** straight-line basis over the estimated useful life o f the asset .

| Furniture & Equipment |                        | \$<br>149, 266 |
|-----------------------|------------------------|----------------|
| Acc umulate           | iatio<br>d Deprec<br>n | (134 , 103)    |
| To tal Fixed Assets   |                        | \$<br>15 , 163 |

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#### NOTES TO FINANCIAL STATEMENTS

FOR THE YEAR ENDED DECEMBER 31 , 2022

# 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 variable consideration only to the extent that it is probable 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 shou l d be applied due t o uncertain future events.

### 14 . SUBSEQUENT EVENTS

The Company evaluates events occurring after the date of the statement o <sup>f</sup> 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 informatio n is required to be disclosed.


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