# SKYSTONE SECURITIES, LLC X-17A-5 (2022-02-25) — Broker-dealer annual report - Company: SKYSTONE SECURITIES, LLC - Form: X-17A-5 - Filed: 2022-02-25 - Period: 2021-12-31 - Accession: 0001292134-22-000001 - CIK: 1292134 - File #: 8-66529 - Type: Broker-dealer - Material weakness: No - Auditor: Turner, Stone & Company, L.L.P. - Auditor location: Dallas, TX - Contact: Rosser Newton - Phone: 214-661-7761 - Email: rosser@petro-capital.com - Website: petro-capital.com - Signed by: Rosser Newton (Managing Member) Original filing: https://www.sec.gov/Archives/edgar/data/1292134/000129213422000001/2021auditreportskystone-.pdf --- {0}------------------------------------------------ #### OMB APPROVAL **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** OMB Number: 3235-0123 Expires: Oct. 31, 2023 Estimated average burden hours per response: 12 # **ANNUAL REPORTS FORM X-17A-5 PART III** SEC FILE NUMBER 8-66529 **FACING PAGE Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934** 01/01/2021 12/31/2021 FILING FOR THE PERIOD BEGINNING AND ENDING MM/DD/YY MM/DD/YY **A. REGISTRANT IDENTIFICATION** Skystone Securities, LLC NAME OF FIRM: TYPE OF REGISTRANT (check all applicable boxes): XI Broker-dealer Security-based swap dealer Major security-based swap participant Check here if respondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) 3710 Rawlings Street, Suite 1000 (No. and Street) Dallas TX 75219 (City) (State) (Zip Code) PERSON TO CONTACT WITH REGARD TO THIS FILING Rosser Newton 214-661-7761 rosser@petro-capital.com (Name) (Area Code -Telephone Number) (Email Address) **B. ACCOUNTANT IDENTIFICATION** INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing\* Turner, Stone & Company, L.L.P. (Name -if individual, state last,first, and middle name) 12700 Park Central Drive, STE 1400 Dallas TX 75251 (Address) (City) (State) (Zip Code) 09/29/2003 76 (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)(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 OMB control number.** {1}------------------------------------------------ #### **OATH OR AFFIRMATION** | Rosser
Newton | swear (or affirm) | that,
to
the
best of | belief,the
my knowledge and | |----------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------|-------------------------------------------------------------------------|-----------------------------------------------------------------------| | pertaining to
financial report
the
firm
of
,
December
31
2 021 | Skvstone
-
,is | Securities.
LLC | as of | | partner,officer,
director,or
equivalent person, | and correct.
true
case may be,has
as the | Ifurther
swear (or
affirm) that
any proprietary interest
in | neither the company
nor
any
any account classified
solely | | a customer.
as that
of | | | | | | | ; | | | fji | ELVIA JAIMES
A
Notary ID #10060051
wW My Commission Expires
August 21,
2023 |
Signature

ft -
Title: | | | | | .4,
Managing
Member | | Notary PqjbLL # **This filing\*\* contains (check all applicable boxes):** - £§ (a) Statement of financial condition. - (b) Notes to consolidated statement of financial condition. - M (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). - H (d) Statement of cash flows. - E) (e) Statement of changes in stockholders' or partners'or sole proprietor's equity. - (f) Statement of changes in liabilities subordinated to claims of creditors. - SI (g) Notes to consolidated financial statements. - IS (h) Computation of net capital under 17 CFR 240.15c3-lor 17 CFR 240.18a-l, as applicable. - (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. - (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.18a-4,as applicable. - (I) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. - SI (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - (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. - SI (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-l,or 17 CFR 240.18a-2, as applicable,and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.18a-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. - El (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. - SI (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - (t) Independent public accountant's report based on an examination of the statement of financial condition. - SI (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. - ^ 1 (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). - (z) Other: - *\*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e)(3) or 17 CFR 240.18a-7(d)(2), as applicable***.** {2}------------------------------------------------ **Skystone Securities, LLC** **Financial Statements** **and** **Report of Independent Registered Public Accounting Firm** **For the Year Ended December 31, 2021** {3}------------------------------------------------ # **TABLE OF CONTENTS** | REPORT
OF
INDEPENDENT
REGISTERED
PUBLIC
ACCOUNTING
FIRM | 1-2 | |---------------------------------------------------------------------------|--------| | STATEMENT
OF
FINANCIAL
CONDITION | 3 | | MEMBER'S
STATEMENT
CAPITAL
OF
OPERATIONS
AND | 4 | | STATEMENT
OF
CASH
FLOWS | 5 | | NOTES
TO
FINANCIAL
STATEMENTS | 6-9 | | SCHEDULE
I | 10 | | REPORT
OF
INDEPENDENT
REGISTERED
PUBLIC
ACCOUNTING
FIRM | I
I | | EXEMPTION
REPORT | 12 | {4}------------------------------------------------ *Your Vision Our Focus* ![](_page_4_Picture_1.jpeg) # Report of Independent Registered Public Accounting Firm To the Member of Skystone Securities, LLC ### Opinion on the Financial Statements We have audited the accompanying statement of financial condition of Skystone Securities, LLC (the "Company") as of December 31, 2021 and the related statements of operations and member' s capital and cash flows for the year then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2021, and the results of its operations and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America. # Basis for Opinion These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements 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 statements are 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 statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures include 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. Turner, Stone & Company, L.L.P. Accountants and Consultants 12700 Park Central Drive, Suite 1400 Dallas,Texas 75251 Telephone: 972-239-1660/Facsimile:972-239-1665 loll Free: 877-853-4195 Web site: turnerstone.com ![](_page_4_Picture_11.jpeg) {5}------------------------------------------------ #### Supplemental Information The supplementary information contained in Supplemental Schedule I has been subjected to audit procedures performed in conjunction with the audit of Company' s financial statements. The supplemental information is the responsibility of the Company's management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with 17 C.F.R. §240.17a-5. In our opinion, Schedule I is fairly stated, in all material respects, in relation to the financial statements as a whole. L -L .P t Certified Public Accountants February 23, 2022 We have served as the Company's auditor since 2006. {6}------------------------------------------------ # **SKYSTQNE SECURITIES, LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2021** #### Assets # Current assets: | Cash
Prepaid
expenses | \$
73,152
10,782 | |-----------------------------|------------------------| | assets
current
Total | \$
83,934 | # Liabilities and Member's Capital | Current
liabilities: | | |---------------------------------------------------|--------------| | Accounts
and
accrued
expenses
payable | \$
14,451 | | Total
current
liabilities | 14,451 | | Member's
capital | 69,483 | | | \$
83,934 | The accompanying notes are an integral part of the financial statements. {7}------------------------------------------------ # **SKYSTONE SECURITIES, LLC STATEMENT OF OPERATIONS AND MEMBER'S CAPITAL FOR THE YEAR ENDED DECEMBER 31 , 2021** | Revenues: | | |-------------------------------------------------------------|---------------| | Revenues | \$
805,100 | | | | | | | | Operating
expenses: | | | | | | Incremental
services
fee
(Note
allocation
2) | | | fees
Registration | 22,557 | | General
and
administrative | 128,061 | | | 150,618 | | | | | Net
operating
income | 654,482 | | | | | Other
(expense)
income | | | Interest
income | 13 | | Total
other
income | 13 | | | | | Net
income | 654,495 | | | | | | | | at
Member's
capital
year
beginning
of | 141,955 | | | | | Distributions | (726,967) | | Member's
at
end
of
year
capital | \$
69,483 | | | | The accompanying notes are an integral part of the financial statements. {8}------------------------------------------------ # **SKYSTONE SECURITIES, LLC STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2021** Cash flows from operating activities: | Net
income | \$
654,495 | |----------------------------------------------------------------------|---------------| | cash
Adjustments
to
reconcile
to
net
net
income | | | operating
activities:
provided
by | | | liabilities:
assets
Changes
in operating
and | | | Parent
Due
from | 15,000 | | expenses
Prepaid | 14,265 | | and
accrued
expenses
Accounts
payable | 833 | | cash
Net
provided
by
operating
activities | 684,593 | | activities:
Cash
flows
from
investing | | | cash
Net
provided
by
investing
activities: | | | activities:
Cash
flows
from
financing | | | member
Distributions
paid
to | (726,967) | | activities:
cash
Net
used
financing
in | (726,967) | | Decrease
cash
in | (42,374) | | at
Cash
of
year
beginning | 115,526 | | at
Cash
end
year
of | \$
73,152 | The accompanying notes are an integral part of the financial statements. {9}------------------------------------------------ #### **1 . SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** #### Business and operations Skystone Securities, LLC, (formerly Petro Capital Securities, LLC) (Company) is a limited liability company organized in the State of Texas, on March 26, 2004 and is a wholly-owned subsidiary of Petro Capital Securities Holdings, LLC (Parent). The Company is a broker-dealer registered with the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). The Company provides private placement of debt and equity securities as well as providing advisory services for mergers and acquisitions and corporate finance. #### Revenue Recognition Revenue from contracts with customers includes fees from investment banking services. The recognition and measurement of revenue is based on the assessment of individual contract terms. Significant judgment is required to determine whether performance obligations arc 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 applied due to uncertain future events. The Company earns fees, commissions and receives financial instruments in exchange for the services it provides and recognizes revenue when the Company has completed its contractual obligations and collection is reasonably assured. #### Customer concentrations For the year ended December 31, 2021, the Company had the following customer concentrations with respect to its revenues: | | %
of
Rev. | %
AR
of | |---------------|-----------------|---------------| | Customer
1 | 64% | | | Customer
2 | 32% | | | 3
Customer | 4% | | \*amount below 10% #### Management estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles 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. {10}------------------------------------------------ #### Cash flows The Company maintains deposits in one financial institution. At December 31, 2021, the Federal Deposit Insurance Corporation (FDIC) provided insurance coverage of up to \$250,000, per depositor, per institution. At December 31, 2021, none of the Company's cash was in excess of federally insured limits. For purposes of the statement of cash flows, cash includes demand deposits, time deposits and short-term cash equivalent investments with maturities of less than three months at the date of purchase. At December 31, 2021, the Company had no such cash equivalents included in cash. None of the Company's cash is restricted. #### Fair value measurements The Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 820, *Fair Value Measurement*, definesfair value, establishes a framework for measuring fair value in accordance with U.S. generally accepted accounting principles, and requires certain disclosures about fair value measurements. In general, fair values of financial instruments are based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value.These adjustments may include amounts to reflect counterparty credit quality and the customer's creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. #### Fair value of financial instruments In accordance with the reporting requirements of ASC Topic 825, *Financial Instruments*, the Company calculates the fair value of its assets and liabilities which qualify as financial instruments under this standard and includes this additional infonnation in the notes to the financial statements when the fair value is different than the carrying value of those financial instruments. The estimated fair value of cash and accounts payable approximate their carrying amounts due to the nature and short maturity of these instruments. {11}------------------------------------------------ #### Recent accounting pronouncements During the year ended December 31, 2021 and through February 23, 2022, there were several new accounting pronouncements issued by the FASB. Each of these pronouncements, as applicable, has been or will be adopted by the Company. Management does not believe the adoption of any of these accounting pronouncements has had or will have a material impact on the Company's financial statements. #### Subsequent events In preparing the financial statements, the Company has reviewed, as determined necessary by the Company's management, events that have occurred after December 31, 2021, up until the issuance of the financial statements, which occurred on February 23, 2022. #### 2**. TRANSACTIONS WITH RELATED PARTY** #### Office and administrative services agreement The Company paid a monthly incremental allocation services fee to an affiliate through the Office and Administrative Services Agreement of \$96,304 per month for January through April, \$90,245 for May through August, \$76,654 for September through November and \$67,774 December 2021. The Company paid a monthly incremental allocation services fee to an affiliate through the Office and Administrative Services Agreement of \$96,304 per month for January through April, \$90,245 for May through August, \$76,654 for September through November and \$67,774 December 2021. Such fees amounted to \$1,043,930 during the year ended December 31, 2021 which were forgive by the Parent. The "Incremental allocation services fee" and offsetting Bad Debt Expense reflect \$0 total expense on the accompanying statement of operations and member's capital. No balance was Due from Parent for client funds paid to the Parent instead of the Company. # 3. **INCOME TAXES** The Company is organized as a limited liability company under the provisions of the Internal Revenue Code of 1986 as amended. Accordingly, the financial statements do not include a provision for federal income taxes because the Company does not incur federal income tax liabilities. Instead, its earnings and losses are included in the member's income tax return and are taxed based on the member's income tax rate. As a Texas limited liability company, the Company is subject to a state franchise tax based on the lower of either the cost of goods sold margin, compensation margin or 70% of gross revenues. The Company's franchise tax liability will be included in the member's state franchise tax return. {12}------------------------------------------------ # 4. **NET CAPITAL REQUIREMENTS** The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (SEC Rule 15c3-l ), 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 (and the rule of the "applicable" exchange also provides that equity capital may not be withdrawn or cash dividends paid if the resulting net capital ratio would exceed 10 to 1 ). At December 31, 2021, the Company was in compliance with aggregate indebtedness of \$14,451 and net capital of \$58,701. # 5. **RULE 15c3-3 EXEMPTION** The Company is filing this Exemption Report relying on Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 because the Company limits its business activities exclusively to: (1) effecting securities transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company; (2) receiving transaction-based compensation for identifying potential merger and acquisition opportunities for clients, referring securities transactions to other broker-dealers, and the Company (1) did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, (other than money or other consideration received and promptly transmitted in compliance with paragraph (a) or (b)(2) of Rule 15c2-4 and/or funds received and promptly transmitted for effecting transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company); (2) did not carry accounts of or for customers; and (3) did not carry PAB accounts(as defined in Rule 15c3-3) throughout the most recent fiscal year without exception. {13}------------------------------------------------ # **SKYSTONE SECURITIES, LLC SCHEDULE I COMPUTATION OF NET CAPITAL UNDER RULE 15c3-l OF THE SECURITIES AND EXCHANGE COMMISSION AS OF DECEMBER 31, 2021** | the
Net
Capital
Requirement,
Greater
of: | | | | | \$ | 5,000 | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------|-------|----|--------|----|-------------------------| | 1/15
of
Aggregate
Indebtedness | \$ | 963 | | | | | | Minimum
Dollar
Requirement | \$ | 5,000 | | | | | | Net
Capital | | | | | \$ | 58,701 | | Excess
Net
Capital | | | | | \$ | 53,701 | | (Al):
Aggregate
Indebtedness
to
Ratio
Aggregate
Indebtedness
Capital:
of
Net
Ratio
of
Subordinated
Indebtedness
to
Debt/Equity
Total: | | | | | \$ | 14,451
24.62%
N/A | | | | | | | | | | Hand,
Assets
Accounts)
Total
(Cash
on
Money
Market | | | | | \$ | 83,934 | | Less:
Liabilities
Total | | | | | | 14,451 | | (Exclusive
subordinated
of
debt) | | | | | | | | Worth
Net | | | | | | 69,483 | | Worth:
to
Deductions
and/or
charges
from
Net | | | | | | | | non-allowable
assets
Total | | | \$ | 10,782 | | | | (Excess
Fidelity
Bond
deductible) | | | | | | | | Total
Deductions
Worth
from
Net | | | | | | 10,782 | | on
securities
positions
Net
Capital
before
haircuts | | | | | \$ | 58,701 | | Haircuts
on
securities: | | | | | | | | Certificates
of
Deposit
and
Commercial | Paper | | \$ | | | | | U.S.
and
obligations
Canadian
government | | | | | | | | State
and
municipal
and
government | obligations | | | | | | | Corporate
obligations | | | | | | | | Stock
and
warrants | | | | | | | | Options | | | | | | | | Arbitrage | | | | | | | | Other
Securities | | | | | | | | securities
Total
haircuts
of | | | | | | | | Net
Capital | | | | | \$ | 58,701 | There are no material differences between the amounts presented above and the amounts reported on the Company's unaudited FOCUS report as of December 31, 2021. {14}------------------------------------------------ *Your Vision Our Focus* ![](_page_14_Picture_1.jpeg) ### Report of Independent Registered Public Accounting Firm To the Members of Skystone Securities, LLC We have reviewed management's statements, included in the accompanying Skystone Securities, LLC Exemption Report, in which ( 1 ) Skystone Securities, LLC does not claim an exemption under paragraph (k ) of 17 C.F.R. §240.15c3-3 and (2) Skystone Securities, LLC is filing an Exemption Report relying on Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R §240.17a-5 because the Company limits its business activities exclusively to: (1) effecting securities transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company; (2) receiving transaction-based compensation for identifying potential merger and acquisition opportunities for clients, referring securities transactions to other broker-dealers, and the Company ( 1 ) did not directly or indirectly receive, hold, or otherwise owe funds orsecurities for or to customers, (other than money or other consideration received and promptly transmitted in compliance with paragraph (a) or (b)(2) of Rule 15c2- 4 and/or funds received and promptly transmitted for effecting transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company); (2) did not carry accounts of or for customers; and (3) did not carry PAB accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year without exception. Skystone Securities, LLC's management is responsible for compliance with the exemption provisions and its statements. Our review was conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) and, accordingly, included inquiries and other required procedures to obtain evidence about Skystone Securities, LLC's compliance with the exemption provisions. A review is substantially less in scope than an examination, the objective of which is the expression of an opinion on management's statements. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to management's statements referred to above for them to be fairly stated, in all material respects, based on the provisions set forth in Rule 15c3-3 under the Securities Exchange Act of 1934 and Footnote 74 of the SEC Release No. 34-70073. L .L . P 3 **t** Certified Public Accountants February 23, 2022 Turner, Stone & Company, L.L.P. Accountants and Consultants 12700 Park Central Drive, Suite 1400 Dallas,Texas 75251 Telephone: 972-239-1660/Facsimile:972-239-1665 Toll Free: 877-853-4195 Web site: turnerstone.com ![](_page_14_Picture_11.jpeg) {15}------------------------------------------------ # **Skystone Securities, LLC** **3710 Rawlins Street / Dallas, Texas 75219 214-661-7761** ### **Exemption Report** **Skystone Securities, LLC** (the "Company") is a registered broker-dealer subject to Rule 17a-5 promulgated by the Securities and Exchange Commission (17 C.F.R. §240.17a-5, "Reports to be made by certain brokers and dealers"). This Exemption Report was prepared as required by 17 C.F.R. § 240.17a-5(d)( 1 ) and (4). To the best of its knowledge and belief, the Company states the following: (1) The Company does not claim an exemption under paragraph (k) of 17 C.F.R. § 240. 15c3-3, and (2) The Company is filing this Exemption Report relying on Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 because the Company limits its business activities exclusively to: (1) effecting securities transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company; (2) receiving transaction-based compensation for identifying potential merger and acquisition opportunities for clients, referring securities transactions to other broker-dealers, and the Company (1 ) did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, (other than money or other consideration received and promptly transmitted in compliance with paragraph (a) or (b)(2) of Rule 15c2-4 and/or funds received and promptly transmitted for effecting transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company); (2) did not carry accounts of or for customers; and (3) did not carry **PAB** accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year without exception. #### **Skystone Securities, LLC.** *%/ \** I, Rosser Newton, swear (or affirm) that, to my best knowledge and belief, this Exemption Report is true and correct. Rosser Newton, Managing Member January 5, 2022 Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.