# AURUS ADVISORS, INC. X-17A-5 (2023-02-22) — Broker-dealer annual report - Company: AURUS ADVISORS, INC. - Form: X-17A-5 - Filed: 2023-02-22 - Period: 2022-12-31 - Accession: 0001258040-23-000002 - CIK: 1258040 - File #: 8-66089 - Type: Broker-dealer - Material weakness: No - Auditor: Wintter, Ernst J. - Auditor location: Walnut Creek, CA - Contact: Richard Augustus - Phone: 904 473-4940 - Email: raugustus@aurusadvisors.com - Website: aurusadvisors.com - Signed by: Richard Augustus (President) Original filing: https://www.sec.gov/Archives/edgar/data/1258040/000125804023000002/public2.pdf --- {0}------------------------------------------------ **Aurus Advisors, Inc. (SEC ID NO. 8-66089)** **Annual Audit Report** **December 31, 2022** # **PUBLIC DOCUMENT** **Filed Pursuant to Rule 17-A-5(e)(3) as a Public Document** {1}------------------------------------------------ *PUBLIC* **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** OMB APPROVAL OMB Number: ϯϮϯϱͲϬϭϮϯ Expires: KĐƚ͘ϯϭ͕ϮϬϮϯ Estimated average burden hours per response: # **ANNUAL REPORTS FORM X-17A-5 PART III** SEC FILE NUMBER **8-66089** **FACING PAGE** **Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934** | FILING FOR THE PERIOD BEGINNING _____________________ AND ENDING ______________________ | 01/01/22 | | 12/31/22 | | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|---------------------------------------|-----------------------------------------------------------------------------------------------|--| | | MM/DD/YY | | MM/DD/YY | | | | A. REGISTRANT IDENTIFICATION | | | | | Aurus Advisors, Inc.
NAME OF FIRM: _______________________________________________________________________ | | | | | | TYPE OF REGISTRANT (check all applicable boxes):
܆
܆
Broker-dealer
܆ Check here if respondent is also an OTC derivatives dealer | ܆
Security-based swap dealer | Major security-based swap participant | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | | N. 822 Florida A1A, Suite 310
_____________________________________________________________________________________ | | | | | | | (No. and Street) | | | | | Ponte Vedra Beach
_____________________________________________________________________________________ | Florida | | 32082 | | | (City) | (State) | | (Zip Code) | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | Richard J. Augustus | (904) 473-4940
_____________________________________________________________________________________ | | raugustus@aurusadvisors.com | | | (Name) | (Area Code – Telephone Number) | (Email Address) | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
Ernst Wintter & Associates LLP
_____________________________________________________________________________________ | | | | | | | (Name – if individual, state last, first, and middle name) | | | | | 675 Ygnacio Valley Road, Suite A200
_____________________________________________________________________________________ | Walnut Creek | California | 94596 | | | (Address) | (City) | (State) | (Zip Code) | | | February 24, 2009 | | | 3438
_____________________________________________________________________________________ | | | (Date of Registration with PCAOB)(if applicable) | | | (PCAOB Registration Number, if applicable) | | | | FOR OFFICIAL USE ONLY | | | | \* Claims for exemption from the requirement that the annual reports be covered by the reports of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-5(e)(1)(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 OMB control number.** {2}------------------------------------------------ ![](_page_2_Picture_4.jpeg) - - - - - - - - - - - - - - - - - - - - - - - - - - {3}------------------------------------------------ # **December 31, 2022** ### **Table of Contents** | Report of Independent Registered Public Accounting Firm | 1 | |---------------------------------------------------------|-------| | Statement of Financial Condition | 2 | | Notes to the Financial Statement | 3 - 4 | {4}------------------------------------------------ 675 Ygnacio Valley Road, Suite A200 (925) 933-2626 Walnut Creek, CA 94596 Fax (925) 944-6333 ### Report of Independent Registered Public Accounting Firm To the Board of Directors of Aurus Advisors, Inc. #### Opinion on the Financial Statement We have audited the accompanying statement of financial condition of Aurus Advisors, Inc. (the "Company") as of December 31, 2022, 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 Aurus Advisors, Inc. as of December 31, 2022 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 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 Aurus Advisors, Inc.'s auditor since 2004. Walnut Creek, California February 17, 2023 {5}------------------------------------------------ ## **Statement of Financial Condition** ### **December 31, 2022** | Assets | | |--------------------------------------------------|---------------| | Cash | \$
142,959 | | Accounts receivable | 24,035 | | Prepaid expenses | 36,825 | | Total Assets | \$
203,819 | | Liabilities and Stockholders' Equity | | | Liabilities | | | Accounts payable | \$
568 | | Total Liabilities | 568 | | Stockholders' Equity | | | Common stock (no par value;1,000,000 shares | | | authorized;10,000 shares issued and outstanding) | 79,025 | | Retained earnings | 124,226 | | Total Stockholders' Equity | 203,251 | | Total Liabilities and Stockholders' Equity | \$
203,819 | The accompanying notes are an integral part of this financial statement. {6}------------------------------------------------ # **Notes to the Financial Statement** **December 31, 2022** ### **1. Organization** Aurus Advisors, Inc. (the "Company") was originally formed as a California corporation and provides investment banking and advisory services to corporations, institutional fund managers and hedge funds. On February 9, 2004, the Company registered as a securities broker-dealer with the Securities and Exchange Commission pursuant to Section 15c of the Securities Exchange Act of 1934. In November 2015, the Company reorganized in Florida and continues to operate as a Florida corporation. ### **2. Significant Accounting Policies** ### **Use of Estimates** The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America 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 statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and may have an impact on future periods. #### **Fair Value of Financial Instruments** Unless otherwise indicated, the fair values of all reported assets and liabilities that represent financial instruments (none of which are held for trading purposes) approximate the carrying values of such amounts. The Company had no financial instruments required to be reported at fair value on a recurring basis. #### **Cash and Cash Equivalents** The Company considers all demand deposits held in banks and certain highly liquid investments with original maturities of three months or less, other than those held for sale in the ordinary course of business, to be cash equivalents. There were no cash equivalents as of December 31, 2022. #### **Accounts Receivable** Accounts receivable represents amounts that have been earned and billed to clients in accordance with the terms of the Company's engagement letters with respective clients that have not yet been collected. The Company accounts for estimated credit losses on financial assets measured at an amortized cost basis and certain off-balance sheet credit exposures in accordance with FASB ASC 326-20, *Financial Instruments - Credit Losses.* FASB ASC 326-20 requires the Company to estimate expected credit losses over the life of its financials assets and certain off-balance sheet exposures as of the reporting date based on relevant information about past events, current conditions, and reasonable and supportable forecasts. The Company records the estimate of expected credit losses as an allowance for credit losses. For financial assets measured at an amortized cost basis the allowance for credit losses is reported as a valuation account on the balance sheet that is deducted from the asset's amortized cost basis. Per management's analysis, no allowance for credit losses was considered necessary as of December 31, 2022. #### **Income Taxes** The Company, with the consent of its shareholders, has elected under the Internal Revenue Code to be treated as an S Corporation. In lieu of corporate income taxes, the Company's income or loss is generally passed through to the shareholders' federal and state individual income tax returns. However, the Company is liable for California franchise tax on S corporations. The Company is no longer subject to income tax examinations by tax authorities for years before 2018. {7}------------------------------------------------ # **Notes to the Financial Statement** **December 31, 2022** #### **2. Significant Accounting Policies** *(continued)* #### **Income Taxes** *(continued)* Deferred income taxes are recognized for differences between the basis of assets and liabilities for financial statement and income tax purposes. The deferred tax assets and liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Deferred tax assets and liabilities were not significant as of December 31, 2022. #### **3. Revenue from Contracts with Customers** #### **Contract Balances** Income is recognized upon completion of the related performance obligation and when an unconditional right to payment exists. The timing of revenue recognition may differ from the timing of customer payments. A receivable is recognized when a performance obligation is met prior to receiving payment by the customer. Receivables related to revenue from contracts with customers totaled \$41,696 and \$24,035 as of January 1, 2022 and December 31, 2022, respectively. Alternatively, fees received prior to the completion of the performance obligation are recorded as deferred revenue on the Statement of Financial Condition until such time when the performance obligation is met. Due to the nature of the Company's business, there was no deferred revenue as of January 1, 2022 or as of December 31, 2022. #### **Contract Costs** Direct incremental costs to obtain or fulfill a contract are evaluated under the criteria for capitalization on a contract by contract basis. There were no capitalized contract costs as of December 31, 2022. #### **4. Net Capital Requirements** The Company is subject to the Securities and Exchange Commission's uniform net capital rule (Rule 15c3- 1) which requires the Company to maintain a minimum net capital equal to or greater than \$5,000 and a ratio of aggregate indebtedness to net capital not exceeding 15 to 1, both as defined. As of December 31, 2022, the Company's net capital was \$142,391 which exceeded the requirement by \$137,391. #### **5. Risk Concentrations** Financial instruments that potentially subject the Company to significant concentration of credit risk consist principally of cash. For the year ended December 31, 2022, the Company maintains cash balances which, at times, may exceed federally insured limits. The Company has not experienced any losses on its cash deposits. As of December 31, 2022, 100% of the receivable of \$24,035 was related to one customer. #### **6. Subsequent Events** The Company has evaluated subsequent events through February 17, 2023, the date which the financial statements were issued. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.