# SELALU PARTNERS, LLC X-17A-5 (2021-05-28) — Broker-dealer annual report - Company: SELALU PARTNERS, LLC - Form: X-17A-5 - Filed: 2021-05-28 - Period: 2021-03-31 - Accession: 0001145885-21-000004 - CIK: 1145885 - File #: 8-53434 - Material weakness: No - Auditor: Jerome Davies, CPA, P.C. - Auditor location: Marietta, GA - Contact: Carol Ann Kinzer - Phone: 678-525-0992 - Signed by: Donna Anderson Schole (Managing Member) Original filing: https://www.sec.gov/Archives/edgar/data/1145885/000114588521000004/publicselalu.pdf --- {0}------------------------------------------------ **UNITED ST** ATES **SECURITIES AND EXCHANGE COMMISSION** Washington, **D.C.** 20549 0MB APPROVAL 0MB Number: 3235-0123 Expires: August 31, 2020 Estimated average burden hours oer resoonse ...... 12.00 SEC FILE NUMBER B-53434 # **ANNUAL AUDITED REPORT FORM X-17A-5 PARTIII** **FACING PAGE** **Information Required of Brokers and Dealers Pursuant** to **Section** 17 **of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder** | | REPORT FOR THE PERIOD BEGINNING 04/01/20 | | ----------
AND ENDING 03/31/21
MM/0 0 /YY | | |------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------|---------------|-------------------------------------------------|--| | | MM/00/YY | | | | | | A. REGISTRANT IDENTIFICATION | | | | | NAME OF BROKER-DEALER: Selalu Partners, LLC
ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | OFFICIAL USE ONLY
FIRM I.D. NO. | | | | | | | | | 15 White Birch Road | | | | | | | (No. and Street) | | | | | Redding | CT | | 06896 | | | (City) | (State) | (Zip Code) | | | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
Carol Ann Kinzer
678-525-0992 | | | (Area Code - Telephone Number) | | | | | | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report•
Jerome Davies, CPA, P.C. | (Name - if individual. srare las/. first. middle name) | | | | | 3605 Sandy Plains Rd., Ste 240-480 Marietta
(Address) | (City) | GA
(State) | 30066
(Zip Code) | | *•c laims for exemption from the requirement that the annual report be covered by the opinion of an independent public accountant must be supported by a statement offacls and circumstances relied on as the basis/or the exemption. See Section 240. / 7a-5(e)(2)* > **Potential persons who are to respond to** the **collection of Information contained In this form are not required to respond unless the form displays a currently valld 0MB control number.** SEC 1410 (06-02) {1}------------------------------------------------ ### **OATII OR AFFIRMATIO** 1 | I, Donna Anderson Schole | . s,,ear (or affirm) that, to the best of | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | my knowledge and belier the accompanying financ
Selalu Partners,_L_L_C ____ | ial statement and supporting schedules pertaining to the firm of
___
_________ , as
________________________ | | of March 31 | 1 __ ~• are
1rne and correct. I further swear (or affirm) that
. 20_2_ | | classified solely as thar of a cus!Omcr. except as follows: | neither the company nor any partner. proprietor. principal officer or director has any proprietary interest in any account | | | | | | Managing Member
Title | | This report** contains (check all applicable boxes):
0 (a) racing Page.
✓ (b) S1a1e111cn1 of Financial Condition.
(c) Statcmcm of Income (Loss).
(d) Statement of Changes in Financial Co11di1ion. | (e) Statement of Changes in S1ockholdcrs· Equity or Partners· or Sole Propric1ors' Capital. | | (f) Statement ofClrnngcs in Liabilities Subordi nated 10 Clc1ims ol'Credi1ors.
(g) Computation of 'ct Capital.
(h) Computation for De1a111 ina1io11 of Reserve Requ | irements Pursuant to Ruic l 5c3-3. | | 0 (j)
consolidation. | (i) Information Relating 10 the Possession or Control Req uirements lJnder Ruic I 5c3-3.
A Reconcil iation. including appropriate cxplanalion of the Co111puta1ion of Net Capi1al Under Rule I 5c3-
I and the
Computation for Determination of 1hc Reserve Requirements Under Exhibit A of Rule I 5c3-3.
0 (k) A Reconciliation between 1hc audited and unaudited Statements of Financial Condition with respect 10 melhods of | | | | | § (I) An Oath or Affirmation.
(m) A copy of the SI PC Supplemental Reporl. | (n) A report describing any material inadequacies found to exist or found to have existed since lhc date of the previous audi1. | | | ** For i·o11di1io11s of co11fldelllial 1rea1111e111 1!( c:er1ai11 porlions o/1his.fi/i11g. see sec:lion 2-IO. I 7a-5(eJ{3). | {2}------------------------------------------------ ## **SELAL U PARTNERS, LLC** STATEMENT OF FINANCIAL CONDIT ION FOR THE YEAR ENDED MARCH 3 1, 2021 AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM PURSUANT TO SEC RULE I 7a-5 > This report is filed in accordance with Rule l 7a-5(e)(3) under the Securities Exchange Act of 1934 as a PUBLIC DOCUMENT. {3}------------------------------------------------ ![](_page_3_Picture_0.jpeg) 3605 Sandy Plains Rd. Suite 240-480 Marietta, GA 30066 (34 7) 512-6085 #### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Member of Selalu Partners, LLC #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Selalu Partners, LLC (the "Company") as of March 31 , 2021, and the related notes (collectively referred to as the "financial statement"). In our opinion, the statement of financial condition presents fairly, in all material respects, the financial position of the Company as of March 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. We have served as the Company's auditor since 2018. Marietta, GA May 27, 2021 {4}------------------------------------------------ ## **SELALU PARTNERS, LLC** #### **STATEMENT OF FINANCIAL CONDITION MARCH 31, 2021** **ASSETS** | 26,313 | |--------------| | 2,165 | | \$
28,478 | | | | | | 5,581 | | 2,667 | | 8,248 | | 20,230 | | \$
28,478 | | \$
\$ | The accompanying notes are an integral par1 of these financial statements. {5}------------------------------------------------ ## **SELALU PARTNERS, LLC** ## **NOTES TO FINANCIAL STATEMENTS** ### **MARCH 31, 2021** ## **NOTE 1** - **SIGNIFICANT ACCOUNTING POLICIES** ### **Organization and Nature of Business** The Company was organized on July 28, 2000 as a Delaware limited liabi lity company to conduct business as a registered broker-dealer under the Securities Exchange Act of 1934. The Company is a limited purpose broker-dealer whose primary activity is the marketing of funds. As a limited liability company, the Member's liability is limited to its investment. ### **Use of Estimates** The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and liabilities as of the date of the financial statements, and the repo11ed amounts of revenues and expenses duri ng the reporting period. Actual results could differ from those estimates. #### **Revenue** The Company recognizes revenue from contracts with customers in accordance with ASC 606 *Revenue from Contracts with Customers* which creates a single framework for recognizing revenue from contracts with customers that fa ll within its scope. The Company recognizes revenue when it satisfies performance obligations by transferring control over goods or services to a customer. The Company receives referral fees that are non-refundable fixed fees paid upon execution of the agreement with the customer. The Company recognizes a portion of such revenue at a point in time upon satisfaction of certain distinct performance obligations. The Company also recognizes a portion of referral fees monthly over the term of the agreement, as the related performance obligations are simultaneously provided to the customer and consumed by the customer. In some circumstances, significant judgment is needed to determine the timing and measure of progress appropriate for revenue recognition under a specifi ed contract. Referral fees received from customers prior to recognizing revenue are reflected as unearned revenue on the accompanying statement of financial condition. {6}------------------------------------------------ ### **SELALU PARTNERS, LLC** ### **NOTES TO FINANCIAL STATEMENTS (Continued)** #### **Accounts Receivable** Accounts receivable are non-interest bearing uncollateralized obligations receivable in accordance with the terms agreed upon with each client. The carry amount of accounts receivable is reduced by a valuation allowance that reflects management's best estimate of the amount that will not be collected. Management individually reviews all delinquent accounts receivable balances and based on an assessment of current credit worthiness, estimates the portion, if any, of the balance that will not be collected. No valuation allowance was necessary as of March 3 I, 2020. #### **NOTE 2 - PAYCHECK PROTECTION PROGRAM LOAN** The Company received a loan in the amount of \$12,500 under the Paycheck Protection Program established by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The loan was made in May 2020 and was forgiven on March 31, 2021. The Company received a second loan in the amount of \$20,833 under the Paycheck Protection Program established by the CARES Act. The loan was made in April 202 1 and may be forgiven to the extent proceeds of the loan are used for eligible expenditures such as payroll and other expenses described in the CARES Act. The Company expects to spend I 00% of loan proceeds to pay eligible expenses. The loan bears interest at a rate of I% and is payable in monthly installments of principal and interest over 24 months beginning IO months from the date of the last date of the covered period. The loan may be repaid at any time with no prepayment penalty. #### **NOTE 3** - **NET CAPITAL** As a broker-dealer, the Company is subject to the Securities and Exchange Commission's regulations and operating guidelines, which require the Company to maintain a specified amount of net capital, as defined, and a ratio of aggregate indebtedness to net capital, as defined, not exceeding 15 to l. The Company's net capital, as computed under Rule I 5c3-l , was \$18,065 at March 31, 202 1, which was \$13,065 in excess of its required net capital of \$5,000. The ratio of aggregate indebtedness to net capital at March 31, 2021 is .46 to I. {7}------------------------------------------------ ### **SELAL U PARTNERS, LLC** ### **NOTES TO FINANCIAL STATEMENTS (Continued)** #### **NOTE 4 - INCOME TAXES** The Company is a single member LLC for federal and state income tax purposes. A single member LLC is treated as a disregarded entity for income tax purposes. As such, all income or losses are reported on the Member's income tax returns. Accordingly, no income tax expense has been recorded in the financial statements. The Company has evaluated all tax positions, including its status as a single member LLC, and has concluded that the Company has no uncertain tax positions that need to be evaluated under the Income Taxes Topic of F ASB Accounting Standards Codification No. 740 ("F ASB ASC740"). #### **NOTE 5 - SUBSEQUENT EVENTS** Events subsequent to March 31, 2021 have been evaluated by management through the date the financial statements were issued, for the purpose of identifyi ng events requiring recognition or disclosure in the financial statements for the year ended March 3 1, 2021. ## **NOTE 6- UNCERTAINTY** In March 2020, the World Health Organization declared the outbreak of a novel coronavirus (COYI D-19) as a pandemic which continues to spread throughout the United States. The Company is monitoring the outbreak of COYID-19 and the related business and travel restrictions and changes to behavior intended to reduce its spread, and its impact on operations, financial position, cash flows, customer trends, customer payments, and the industry in general. Due to the rapid development and fluidity of this situation, the magnitude and duration of the pandemic and its impact on the Company's operations and liquidity is uncertain as of the date of this report. While there could ultimately be a material impact on operations and liquidity of the Company, at the time of issuance, the impact could not be determined. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.