# P.A.N. SECURITIES, LP X-17A-5 (2024-03-20) — Broker-dealer annual report

- Company: P.A.N. SECURITIES, LP
- Form: X-17A-5
- Filed: 2024-03-20
- Period: 2023-12-31
- Accession: 0001126914-24-000002
- CIK: 1126914
- File #: 8-52964
- Type: Broker-dealer
- Material weakness: No
- Auditor: EisnerAmper LLP
- Auditor location: New York, NY
- Contact: Howard Spindel
- Phone: 561-4200842
- Signed by: Howard Spindel (Chief Financial Officer)

Original filing: https://www.sec.gov/Archives/edgar/data/1126914/000112691424000002/pan23s5.pdf

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## UNITED STATES SECURITIE AND EXCHA GE COMMl SION Washington, o\_c. 20549

# ANNUAL REPORTS FORM X-17A-5 PART III

FACING PAGE

Information Required Pursmint to Rule t 7a-5 17a-12, and 18n-7 under· the Securities Exclrnnge Act of 1934

FILING FOR THE PER10D BEGINNING **01/01/23**  AND ENDJNG **12/31 /23** 

MM/DDNY

MM/DD/YY

## **A. REGISTRANT IDENTIFICATION**

NAME OF FIRM: P.A.N. Securities, LP

TYPE OF REGISTRANT (check all applicable boxes):

~ Broker-dealer D ecurity-based swap dealer D Major security-based swap participant D Check here if respondent is also an OTC derivatives dealer

ADDRESS OF PRINCJPAL PLACE OF BU INE S: (Do not use a P.O. box no.)

|                | B. ACCOUNTANT IDENTIFTCA TION                       |                               |
|----------------|-----------------------------------------------------|-------------------------------|
| (Name)         | (Area Code - Telephone Number)                      | (Email Address)               |
| Howard Spindel | (561) 420-0842                                      | hspindel@integrated.so1utions |
|                | PER ON TO CONTACT WlTH REGARD TO THJS FrUNG         |                               |
| (City)         | (State)                                             | (Zip Code)                    |
| Norwalk        | CT                                                  | 06850                         |
|                | (No. and Street)                                    |                               |
|                | c/o FactSet Research Systems Inc., 45 Glover Avenue |                               |

INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing\*

## EisnerAmper LLP

(Name - if individual, slate last, first. and middle name)

| 733 Third Avenue                                 | New York | NY      | 10017                                     |
|--------------------------------------------------|----------|---------|-------------------------------------------|
| (Address)                                        | (City)   | ( late) | (Zip Code)                                |
| 09/29/2003                                       |          | 274     |                                           |
| (Date of Registration with PCAOB) if applicable) |          |         | (PCAOB Registration Number_ ifapplicable) |

#### **FOR OFFI**

• Claims for exemption from the requirement that the annual reports be covered by the reports ofan independent public accountant must be supported by a statement of facts a11d circumstances relied on as the basi ofihe exemption. ec 17 FR 240. I 7a-5(c)(l )(ii), if applicable.

Persons who arc to respond lo the collection of information contained in this form a rc not required to respond unless the form displays n curren tly valid Oi\18 control number.

0MB APPROVAL 0MB Number: 3235-0123 Expires: Nov\_ 30, 2026 Estimated average burden hours per response: 12

> SEC FILE NUMER 8- 52964

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## AFFfRMA TION

I Howard Spindel , swear (or affirm) that, to the best of my knowledg and belief the financial report pertaining to PAN. Securities, LP as of 12/31/23 , i true and corr ct. l further swear (or affirm) that neither the compao nor an partner, fficer director or equivalent per on, as the case may be, has any proprietary intere tin an account clas ified olely a that of a cu tom er.

• *<sup>I</sup>*1gnature Chief Financial Officer Title

![](_page_1_Picture_5.jpeg)

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## This filing\*\* contains (check all applicable boxe-S):

- m (a) Statement of financial condition.
- tEl (b) Notes to unconsolidated or consolidated statement of fo1ancial condition, as applicable.
- 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 members' or sole proprietor's equity, as applicable.
- D (I) Statement of changes in liabilities subordinated to claims of creditors.
- D (g) Notes to unconsolidated or consolidated financial statements,, as applicable.
- D (h) Computation of net capital under 17 CFR 240. l 5c3- I or 17 CFR 240. I 8a-l, as applicable.
- D (i) Computation of tangible net worth under 17 CFR 240.18as2.
- D U) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240. I 5c3-3.
- D (k) Computation for determination of secmity-based swap reserve requirements pursuant to Exhibit B ro 17 CFR 240. I ScJ-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. I 5c3-3.
- D (111) Information relating to possession or control requirements for customers under 17 CFR 240.1 ScJ-3.
- D (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240. I 5c3- 3(p)(2) or 17 CFR 240. l 8a-4. as applicable.
- D (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240. I 5c3-1, I 7 CFR 240. I 8a-J, or 17 CFR 240. I 8a-2, as applicable, and the reserve requirements under 17 CFR 240. I 5c3-3 or 17 CFR 240. I 8a-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. I 7a-5, 17 CFR 240. I ?a- I 2, or 17 CFR 240. I 8a-7, as applicable.
- D (r) Compliance report in accordance with 17 CFR 240. I 7a-5 or 17 CFR 240. J 8a-7, as applicable.
- D (s) Exemption report in accordance with 17 CFR 240. I 7a-5 or 17 CFR 240. l 8a-7, as applicable.
- tEl (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 financia l report or financial statements under I 7 CFR 240. I 7a-5, 17 CFR 240. I 8a-7. or 17 CFR 240. I 7a- I 2, as applicable.
- D (v) Independent public accountant's repo1t 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 U1e exemption report under 17 CFR 240. J 7a-5 or 17 CFR 240. I 8a-7, as applicable.
- D (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240. t 5c3-le or 17 CFR 240.17a-12, as applicable.
- D (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. J 7a- I 2(k). D (z) Other:-------------------------------------
- 

*\*\*To request confidential treatment of certain portions of this filing, see* J 7 *C FR 2./0.* J *7a-5(e)(3) or 17 CFR 240. l 8a-7(d)(2), as applicable.* 

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Statement of Financial Condition December 31, 2023

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![](_page_4_Picture_0.jpeg)

**EisnerAmper LLP**  733 Third Avenue New York, NY 10017 **T** 212.949.8700 **F** 212.891.4100 www.e1s1,eramper.com

## **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Partners of PAN. Securities, LP

#### **Opinion on the Financial Statement**

We have audited the accompanying statement of financial condition of P.A.N. Securities, LP (the "Partnership") as of December 31 , 2023, and the related notes (collectively referred to as the "financial statement"). In our opinion, the financial statement presents fairly , in all material respects, the financial position of the Partnership as of December 31 , 2023, in conformity with accounting principles generally accepted in the United States of America.

#### **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 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 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.

We have served as the Partnership's auditor since 2014.

EISNERAMPER LLP New York, New York March 18, 2024

'1:t• n,,1Amp1,,· is th,: br,1nd nam(' unde, whid1 t:1snf.'rAl'l11x,r LLP ar,J tl'ilwr Advr.;o~/ Group UC and its subs1d1ary ~nt,t,es prov,de p!Of~s;,c,nal seovr~e, ErsnrrAmp~r LL• ~r,d Eisn,,, Advi~ory 1.,roup LLC ar<' 1nci~pc:ncl1mtly owr1ed rinns th,11 p,~uce 111 ari JIIN>\ol1Wli.' p1J,t1ce <trur.tu« ,n ~rcorda"cc w,th lho AICPA cod~ of f'rofess,onal C:ondurt and applicabl<> law, ,~ulatmns and profos~iMal s1ar1dJrds. E•snerAmppr UP h d ilcensed CPA fnm 1h;i1 pr<Mdt" a11,,,1 ,t,vicl!s and lisner Adviso,y Group LLC ,ind rt, subs1d1a,y ~nt.11es f>rr.rvidi: ta• Jnd ll1,,;,r1css consuhtng soivrr.,y, LI"'~' Adv,so,y Groop w: and 11s ,ubs1dib,Y err1,t"'~ J1t: nc,t lin.m~H~d CPA mms

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## **Statement of Financial Condition December 31, 2023**

| Assets                                 |                     |
|----------------------------------------|---------------------|
| Cash                                   | 2,476,J 97<br>\$    |
| Accounts receivable                    | 3 218,257           |
| Due from related parties net           | 396,684             |
| Other assets                           | 35,327              |
| Total assets                           | 6.126 465<br>\$     |
| Liabilities and Partner 'Equity        |                     |
| Accrued expenses                       | 45,260<br>\$        |
| Partners' equity                       | 6.081 205           |
| Total liabilities and partners' equity | 6,<br>126 465<br>\$ |

The accompanying notes are an integral part of this financial statement.

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## **Notes to Financial Statement December 31 , 2023**

## **1. Nature of Operation**

P.A.N. ecurities LP (the "Partnership"), an indirectly wholly-owned subsidiary of Portware, LLC (the· Parent' or "Portware ') is a limited partnership whose operations consist of providing access to trade routing oft-ware to broker-dealers and their customers. The Partner-ship s customers consist primarily of registered broker-dealers. FactSet Research Systems Inc . a leading provider of integrated financial information and analytical applications to the global investment community owns all membership interests of the Parent.

The Partnership is a broker-dealer registered with the ecurities and Exchange Commis ion (" EC") and is a memberofthe Financial lndustry Regulatory Authority ("F!NRA.').

## **2. umrnary of Significant Accounting Policies**

## Ba i **of Presentation**

This financial statement was prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statement. Actual results could differ from these estimates.

## **Revenue Recognition**

The revenue recognition guidance under ASC Topic 606, *Revenue from Contracts with Custorners*  requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that re11ects 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 contracl(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 ntity satisfies a performance obligation. In determining the transaction price, an entity may include variable consideration only Lo the extent that it is probable Urnt a significant reversal in the amount of cumulative revenue re ognized would not occur when the uncertainty associated with the variable consideration is resolved.

The Partnership s revenue is primarily derived from providing access, maintenance and transactional services ("AMPS") to the broker-dealer community for ongoing integration of their offerings from a licensing agreement with Portware. The Partnership uses contracts as evidence of an arrangement for AMPS.

AMPS revenues are recognized when the broker s offering is successfully integrated into a version for a specific client of Portware. Fixed AMPS fees represent access and majmenance fees that are charged on a monthly basis and recognized as earned each month. The performance obligation is providing these services per the contract over the contract period. The Partnership determined that the nature of the promise to the client is to provide daily access to one overall data and analytics platform.

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## **Notes to Financial Statement December 31 , 2023**

## **2. Sum mary of Significant Accounting Policie (continued)**

#### **Revenue Recognition (continued)**

Transactional based AMPS revenues are calculated based on the number of shares transacted during a given month. The performance obligation is providing these transactional services over the contract period. The Partnership determined that the nature of the promise to the client is to execute these transactions trades on the Partnership s platform. Revenues are recognized as the transactions are ompleted. however, in circumstances where the monthly and annual fees are in excess of agreed upon thresholds, revenues are annualized and recognized pro rata on a monthly basis Lhroughout the term of the contract.

The Partnership s sources of revenue are disaggregated in its statement of operations.

## **Accounts Receivable**

The Partnership had accounts receivable of \$2,917,529 at January I 2023 and \$3,218,257 at December 3 1, 2023 .

### **Fair Value of Financial Instrument**

Al December 31, 2023, the carrying value of the Partnership's financial instruments, such as accounts receivable approximate fair value due to the nature or their short-term maturities.

### **lncom Taxes**

The Partnership is a disregarded entity for tax purposes and is not subject to federal state and local income taxes. The Partnership's income is included in the taxable income of the la.'<able entity that beneficially owns the Partnership. The entity which beneficially owns the Partnership is responsible for ta, es on its share of the Pa1tnership's taxable income.

Al December 31, 2023 management has determined that the Partnership had no uncertain tax positions that would require finan ial statement recognition. This determination will always be subject to ongoing reevaluation a facts and circumstances may require.

#### **Credjt Lo se**

The guidance under A C Topic 326, Financial Instruments - Credit Losses ( .. A C 326 ) impacts the impainnent model for certain finan ial assets by requiring a current expected credit loss ("CECL") methodology to estimate expected credit losses over the entire life of die financial asset. Under the accounting update, the Partnership has the ability to determine that there are no expected credit losses in certain circumstances (e.g. based on the credit quaJity of the customer).

The allowance for credit losses is based on the Partnership's expectation of the collectability of tinanciaJ instruments, including fees and other receivable utilizing the CECL framework . The Pa1inership consider factors such as historical experience credit quaJity. age of balances and current and future economic conditions that may affect the Partnership's expectation of the collectability in determining the allowance for credit losses. The Parh1ership's expectation is that the credit risk associated with fees and other receivables is not significant until they are 90 days past due based on the contractual arrangement and expectation of collection in accordance with industry standards.

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## **Notes to Financial Statement December 31 , 2023**

## **2. ummary of Significant Accounting Policies (continued)**

## **Credit Lo e (continued)**

The Partnership has not provided an allowance for credit losses at December 31 , 2023.

## **3. Tran action with Related Parties**

The Partnership's Parent provides administrative services under an expense sharing agreement, including payroll allocations and other operating expenses which expired in December 2023. This agreement rene, s yearly and is reviewed periodically. The terms of the arrangement may not be the same as those that would otherwise exist or result from agreements and transactions among unrelated parties. The balance of \$396 684 in due from related parties net on the statement of financial condition represents the net amount due for amounts paid or received on behalf of affiliates.

During 2023, the Part nership distributed \$40,550,000 to its Parent, consisting mainly of profits earned in 2023 in the ordinary course of business.

## **4. Regulatory Requirements**

The Partnership, as a member of FfNRA is subject to the SEC Uniform Net Capital Rule 15c3- I. This rule requ ires the maintenance of minimum net capital and that the ratio of aggregate indebtedness to net capital, both as defined shall not exceed 15 to I and that equity capital may not be withdrawn, or cash dividends paid if the resulting net capital ratio would exceed JO to I. *At* December 31, 2023 , the Partnership's net capital was approximately \$2,43 1,000, which exceeded the required net capital by approximately \$2,426 000.

The Partnership does not handle cash or securities on behalf of customers. Accordingly, it is not affected by SEC Rule J 5c3-3.

## **5. Concentrations**

For the year ended December 31 2023 approximately 69% of the Partnership's revenu s were from ten customers. Accounts receivable from these customers were approximately \$2 096,000 as of December 31 2023.

The Partnership maintains its cash balances at one financial institution but does not consider itself at risk in this regard. The Partnership is subject to credit risk to the extent any financial institution with whi ch it conducts business is unable to fulfill contractual obligations on its behalf. Management monitors the financial condition of this financial institution and does not anticipate any losses on these balances.

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## Notes to Financial Statement December 31 , 2023

#### **6. Sub equent Event**

ubsequent events have b en evaluated through the date the financial statements were issued.


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