# SKYSTONE SECURITIES, LLC X-17A-5 (2025-02-05) — Broker-dealer annual report - Company: SKYSTONE SECURITIES, LLC - Form: X-17A-5 - Filed: 2025-02-05 - Period: 2024-12-31 - Accession: 0001292134-25-000001 - CIK: 1292134 - File #: 8-66529 - Type: Broker-dealer - Material weakness: No - Auditor: Phillip V. George, PLLC - Auditor location: Celeste, 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/1292134/000129213425000001/2024auditreportskystone-.pdf --- {0}------------------------------------------------ | | UNITED STATES
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ANNUAL | | SEC FILE NUMBER | | | X-17A-5
FORM | | 8-66529 | | | PART
III | | | | | 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 | 01/01/2024 | AND ENDING | 12/31/2024 | | | /DD/YY
MM | | MM/DD/YY | | | REGISTRANT IDENTIFICATION
A. | | | | Skystone
NAME OF FIRM.: | LLC
Securities
, | | | | | | | | | Check here if respondent isalso an OTC derivatives dealer
Saint
Andrews
6205 | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.)
Dr | | | | | (No. and Street) | | | | Dallas | TX | | 75205 | | (City) | (State) | | (Zip Code) | | | | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING
Newton | 214-661-7761 | | rosser@petro-capital.com | | | (Area Code -Telephone Number) | (Email Address) | | | Rosser | ACCOUNTANT IDENTIFICATION
B. | | | | (Name)
George
Phillip
V | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
PLLC
, | | | | CR
1026
5179 | (Name-if individual, statelast,first,and middle name)
Celeste | TX | 75423 | | (Address) | (City) | (State) | (Zip Code) | | 02/24/2009 | | 3366 | | | (Date of Registration with PCA0B)(if applicable) | FOR OFFICIAL USE ONLY | | (PCAOB Registration Number,if applicable) | \* 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 cixumstances relied on as the basis of the exemption. See 17 CFR 240.17a-5(e)(l)(il),If applicable. **Persons whoare torespond tothe collection of information contained Inthis form are notrequired torespond unless the form displays e currently valid OMB control number.** {1}------------------------------------------------ #### OATH OR AFFIRMATION I,Rosw Newton **financial report pertaining to the firm of Skystone Securities. LLC 12/31 , swear (or affirm) that, to the best of my knowledge and belief, the , as of ,2024 .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 any account classified solely as that of a customer.** ![](_page_1_Figure_3.jpeg) ### **This filing\*\* contains (cnedc all applicable boxes):** - **B(a) Statement of financial condition.** - **(b) Notes to consolidated statement of financial condition.** - **B (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 Regulztion S-X).** - **B(d) Statement of cash flows.** - **B (e) Statement of changes in stockholders' or partners'or sole proprietor' s equity.** - **(f) Statement of changes in liabilities subordinated toclaims of creditors.** - **B(g) Notes to consolidated financial statements.** - **B(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.** - **IS (j) Computation for determination of customer reserve retirements pursuant to Exhibit A to 17 CFR 240.15C3-3.** - **(k) Computation for determination of security-based swapreserve 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 aider Exhibit A to § 240.15c3-3.** - **B(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.** - **B (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.** - **B(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.** - **B(s) Exemption report in accordance with 17 CFR 240.17a-S or 17 CFR 240.18a-7, as applicable.** - **(t) Independent public accountant's report based on an examination of the statement of financial condition.** - **B (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.** - **B (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-leor 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) Otner.** **\*\*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)l2), os applicable.* {2}------------------------------------------------ **Skystone Securities, LLC** **Financial Statements and Supplementary Schedule** **Year Ended December 31, 2024** {3}------------------------------------------------ # **TABLE OF CONTENTS** | REPORT
OF
INDEPENDENT
REGISTERED
PUBLIC ACCOUNTING
FIRM
1 | | |---------------------------------------------------------------------------------|--| | 2
STATEMENT
OF
FINANCIAL
CONDITION | | | STATEMENT
OF
OPERATIONS
3 | | | IN MEMBER'S
STATEMENT
OF
CHANGES
EQUITY
4 | | | STATEMENT
OF
CASH
FLOWS
5 | | | 6-8
NOTES
TO
FINANCIAL
STATEMENTS | | | I:
9
SCHEDULE
SUPPLEMENTAL
INFORMATION PURSUANT
TO
RULE 17A-5 | | | REPORT
OF
INDEPENDENT
REGISTERED
PUBLIC ACCOUNTING
FIRM
10 | | | EXEMPTION
REPORT
I I | | {4}------------------------------------------------ #### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Member Skystone Securities, LLC #### **Opinion on the Financial Statements** Wc have audited the accompanying statement of financial condition of Skystone Securities, LLC as of December 31, 2024, the related statements of operations, changes in member's equity, 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 Skystone Securities, LLC as of December 31, 2024, 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 Skystone Securities, LLC's management. Our responsibility is to express an opinion on Skystone Securities, LLC'sfinancial 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 Skystone Securities, LLC 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 assessthe risks of material misstatement of the financial statements, 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. #### **Auditor's Report on Supplemental Information** The supplemental information contained in Schedule I has been subjected to audit procedures performed in conjunction with the audit of Skystone Securities, LLC'sfinancial statements.The supplemental information is the responsibility of Skystone Securities, LLC'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 itsform and content, is presented in conformity with 17 C.F.R. §240.l 7a-5. In our opinion, the supplemental information contained in Schedule I is fairly stated, in all material respects, in relation to the financial statements as a whole. *LbQ* PHILLIP V. GEORGE, PLLC We have served as Skystone Securities, LLC's auditor since 2024. Celeste, Texas January 24, 2025 **1** {5}------------------------------------------------ # **SKYSTONE SECURITIES, LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2024** # Assets | Cash | \$
39,057 | |---------------------------------------------------|--------------| | Prepaid
expenses | 9,502 | | assets
Total | \$
48,559 | | Member's
and
Equity
Liabilities | | | accrued
Accounts
and
expenses
payable | \$
31 | | Total
liabilities | 31 | | Member's
equity | 48,528 | | member's
Total
liabiKtes and
equity | \$
48,559 | {6}------------------------------------------------ # **SKYSTONE SECURITIES, LLC STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 2024** | Revenues: | | |----------------------------------------------------------------------|-----------------| | fee
Incremental
service
forgiveness
allocation
income | \$
94,631 | | Interest | 549 | | Total
revenue | 95,180 | | | | | Expenses: | | | Incremental
services
fee
allocation | 94,631 | | fees
Registration | 8,803 | | fees
Professional | 66,448 | | Technology
and
communications | 26,350 | | General
and
administrative | 754 | | expenses
Total | 196,986 | | Net
loss | \$
(101,806) | {7}------------------------------------------------ # SKYSTONE SECURITIES, LLC STATEMENT OF CHANGES IN MEMBER'S EQUITY YEAR ENDED DECEMBER 31, 2024 | Balance,
31,
December
2024 | \$
48,528 | |------------------------------------------------|---------------------| | from
Contributions
member
Net
loss | 30,000
(101,806) | | Balance,January
1,
2024 | \$
120,334 | {8}------------------------------------------------ # **SKYSTONE SECURITIES, LLC STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2024** Cash flows from operating activities: | Net
loss | \$
(101,806) | |----------------------------------------------------------------------------------------------|-----------------| | cash
Adjustments
to
reconcile
net
to
net
loss | | | used
in operating
activities: | | | fee
Incremental
services
to
capital
member
allocation
contributed
by | | | liabilities:
assets
Changes
in operating
and | | | Increase
expenses
in prepaid | (1,695) | | Decrease
in accounts
and
accrued
expenses
payable | (674) | | cash
Net
used
in operating
activities | (104,175) | | activities:
Cash
from
flows
investing | | | cash
activities:
Net
provided
by
investing | | | activities:
Cash
from
flows
financing | | | from
member
Contributions | 30,000 | | activities:
Net
cash
by
provided
financing | 30,000 | | Decrease
in cash | (74,175) | | Cash
at
of
year
beginning | 113,232 | | at
Cash
of
year
end | \$
39,057 | Supplemental Disclosure of Cash Flow Information: There was no cash paid during the year for interest or income taxes. {9}------------------------------------------------ # SKYSTONE SECURITIES, LLC NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2024 #### NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES **1.** ## Nature of Business Skystone Securities, LLC (Company) is a limited liability company organized in the State of Texas, in March 2004 and is a wholly-owned subsidiary of Petro Capital Securities Holdings, LLC (Parent). The Company is registered as a broker-dealer with the Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority, Inc. (FINRA) and Securities Investor Protection Corp. (SIPC). The Company is considered a Non-Covered Firm exempt from 17C.F.R. § 240.15c3-3 relying on Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5. The Company limits its business activities exclusively to effecting securitiestransactions via subscriptions on a subscription way basis where funds are payable to the issuer or its agent and not to the Company and receiving transactionbased compensation for identifying potential merger and acquisition opportunitiesfor clients. The Company's operations consist primarily of providing merger and acquisition services and private placement of debt and equity securities to entities located throughout the United States in the energy and real estate industries. # Summary of Significant Accounting Policies: ### Use of 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 the 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. # Segment Reporting The Company operates as a single operating segment. The chief operating decision maker (CODM) evaluates the Company's financial performance and allocates resources on an entity-wide basis, and the Company does not manage its operations or allocate resources based on differences in products, services, or geographic regions. As such, the Company has determined that it has one reportable segment in accordance with ASC 280, *Segment Reporting.* {10}------------------------------------------------ # **SKYSTONE SECURITIES, LLC NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2024** # Revenue recognition Revenue from contracts with customers includes advisory services on mergers and acquisitions (M&A). 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 appropriatemeasure of the Company's progress under the contract; and whether constraints on variable consideration should be applied due to uncertain future events. Revenue for M&A advisory arrangements is generally recognized at the point in time that performance under the arrangement is completed, generally the closing date of the transaction. Retainers and other fees received from customers prior to recognizing revenue are reflected as deferred income. ### Income Taxes The Company is a single member limited liability company and istreated as a disregarded entity for federal income tax purposes. The taxable income or loss of the Company is included in the partnership income tax return of the Parent. Therefore, federal income taxes are not payable by, or provided for, the Company. The Company is subject to state income taxes. # **2**. **NET CAPITAL REQUIREMENTS** The Company is subject to the SEC 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. Rule 15c3-1 also providesthat equity capital may not be withdrawn or cash dividends paid if the resulting net capital ratio would exceed 10 to 1. At December 31, 2024, the Company had net capital of \$39,026 which was \$34,026 in excess of its net capital requirement of \$5,000. The Company's net capital ratio was .0008 to 1. # 3. **RELATED PARTY TRANSACTIONS** The Company and a related party, have entered into an office and administrative services agreement ("Agreement") effective June 1, 2012, for a one-year term, automatically renewable, unless canceled by either party. The Agreement has automatically renewed through May 2025. Under the Agreement the related party provides management and back office services required by the Company, including, but not limited to administrative services, office space, office equipment and supplies, payroll (excluding commissions), marketing, sales, legal and accounting services. The Agreement requires the Company to pay a monthly overhead services fee. Fees are currently \$8,706 per month and fees under the Agreement totaled \$94,631 for the year ended December 31, 2024, all of which were forgiven by the related party. {11}------------------------------------------------ # **SKYSTONE SECURITIES, LLC NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2024** ## **4. CONTINGENCIES** There are currently no asserted claims or legal proceedings against the Company, however, the nature of the Company's businesssubjects it to various claims, regulatory examinations, and other proceedings in the ordinary course of business. The ultimate outcome of any such future action against the Company could have an adverse impact on the financial condition,results of operations, or cash flows of the Company. ### **5. SUBSEQUENT EVENTS** Management has evaluated the Company's events and transactions that occurred subsequent to December 31, 2024, through January 24, 2025, the date which the financial statements were available to be issued. {12}------------------------------------------------ ### **SCHEDULE I** # **SKYSTONE SECURITIES, LLC SUPPLEMENTAL INFORMATION PURSUANT TO RULE 17A-5 DECEMBER 31, 2024** | Net
Capital: | | | |-------------------------------------------------------------------------------------------|----|---------| | member's
Total
from
statement
of
equity
financial
condition | \$ | 48,528 | | charges:
and/or
Deductions | | | | assets:
Non-allowable | | | | assets
Prepaid
expenses
and
other | | (9,502) | | Net
capital | ; | 19.026 | | Indebtedness:
Aggregate | | | | Condition:
Statement
Items
in the
of
Financial
included | | | | accrued
expenses
Accounts
payable
and | \$ | 31 | | Total
aggregate
indebtedness | \$ | 31 | | of
Basic
Net
Computation
Capital
Requirement: | | | | 6
2/3
%
of
Minimum
net
capital
required
aggregate
indebtedness | \$ | 2 | | capital
requirement
of
or
dealer
net
broker
Minimum
dollar | \$ | 5.000 | | Net
capital
requirement | S | 5,000 | | Excess
net
capital | \$ | 34.026 | | Percentage
aggregate
to
capital
of
indebtedness
net | | 0.0008 | ### **Reconciliation of Computation of Net Capital** The above computation does not differ from the computation of net capital under Rule 15c3-l as of December 31,2024 asfiled by Skystone Securities,LLCon FormX-l7A-5. Accordingly, no reconciliation is deemed necessary. ### **Statement of Changes in Liabilities Subordinated to Claims of General Creditors** No statement is required as no subordinated liabilities existed at any time during the year. #### **Statement Regarding Reserve Requirements and Possession or Control Requirements** The Company is considered a Non-Covered Firm exempt from 17 C.F.R. § 240.15c3-3 relying on Footnote 74 of the SEC Release No.34-70073 adopting amendments to 17 C.F.R. § 240.17a-5. The Company limits its business activities exclusively to effecting securitiestransactions via subscriptions on a subscription way basis where funds are payable to the issuer or its agent and not to the company and to receiving transactionbased compensation for identifying potential merger and acquisition opportunities for clients. As a Non-Covered Firm, the Computation of Determination of the Reserve Requirements and Information Relating to the Possession or Control Requirements are not required. {13}------------------------------------------------ # PHILLIP V. GEORGE, PLLC CERTIFIED PUBLIC ACCOUNTANT #### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Member Skystone Securities, LLC We have reviewed management's statements, included in the accompanying Rule 15c3-3 Exemption Report pursuant to SEC Rule 17a-5, in which (1) Skystone Securities, LLC (the Company) did 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 effecting securities transactions via subscriptions on a subscription way basis where funds are payable to the issuer or its agent and not to the Company and receiving transaction-based compensation for identifying potential merger and acquisition opportunities for clients. In addition, the Company 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; did not carry accounts of or for customers; and 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 provisions contemplated by Footnote 74 of SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 and related SEC Staff Frequently Asked Questions 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'sstatements. 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 upon the Company's business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5, and related SEC Staff Frequently A: Questions. PHILLIP V. GEORGE, PLLC Celeste, Texas January 24, 2025 {14}------------------------------------------------ ### Skystone Securities, LLC 6205 Saint Andrews Dr / Dallas,Texas 75205 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(dXl) 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, 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 (bX2) 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. **i A** Rosser Newton, 1Managing Member January 10,2025 Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.