# REYNOLDS ADVISORY PARTNERS, LLC X-17A-5 (2020-02-26) — Broker-dealer annual report - Company: REYNOLDS ADVISORY PARTNERS, LLC - Form: X-17A-5 - Filed: 2020-02-26 - Period: 2019-12-31 - Accession: 0001437664-20-000001 - CIK: 1437664 - File #: 8-67918 - Material weakness: No - Auditor: Harding & Hittesdorf - Auditor location: denver, CO - Contact: Douglas Edward Reynolds - Phone: 7202847751 - Signed by: Douglas E Reynolds (President) Original filing: https://www.sec.gov/Archives/edgar/data/1437664/000143766420000001/RAP19a.pdf --- {0}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** ## **ANNUAL AUDITED REPORT FORM X-17A-5 PART Ill** 0MB APPROVAL 0MB Number: 3235-0123 Expires: August 31, 2020 Estimated average burden hours oer response ...... 12.00 | | SEC FILE NUMBER | |---------|-----------------| | 8-67918 | | **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 01101119 | | 12131119
AND ENDING | ----------- | | |-----------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------|------------------------|------------------------------------|--| | | MM/DD/YY | | MM/DD/YY | | | | A. REGISTRANT IDENTIFICATION | | | | | NAME OF BROKER-DEALER: Reynolds Advisory Partners, LLC
ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | OFFICIAL USE ONLY
FIRM I.D. NO. | | | | | | | | | 5900 Wilshire Blvd. Suite 920 | | | | | | Los Angeles | (No. and Street)
CA | 90036 | | | | (City) | (State) | (Zip Code) | | | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
Doug Reynolds 626-316-6100 | | | | | | | | | (Area Code - Telephone Number) | | | | B. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNT ANT whose opinion is contained in this Report*
Harding & Hittesdorf, P.C. | | | | | | | (Name - if individual, state last, first, middle name) | | | | | 650 S. Cherry St., Suite 1050 | Glendale | Colorado | 80246 | | | (Address) | (City) | (State) | (Zip Code) | | | | | | | | | CHECK ONE:
It/ I
certified Public Accountant | | | | | | | | | | | | Public Accountant | | | | | | | Accountant not resident in United States or any of its possessions. | | | | | | | | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | *must be supported by a statement of/acts and circumstances relied on as the basis/or the exemption. See Section 240.17a-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 valid 0MB control number.** SEC 1410 (11-05) {1}------------------------------------------------ ## **OATH OR AFFIRMATION** | my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of
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Reynolds Advisory Partners, LLC
, as
of December 31
2019
are true and correct. I further swear (or affirm) that
neither the company nor any partner, proprietor, principal officer or director has any proprietary interest in any account
classified solely as that of a customer, except as follows:
None:
~
President
Title
MATT HENDERSON
Notary Public • California
Notary Public
Los Angeles County
' ~
Commission # 2304801
This report* * contains (check all applicable boxes):
~•• My Comm. Expires Sep 19, 2023
0 (a) Facing Page.
0 (b) Statement of Financial Condition.
~ (c) Statement oflncome (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) Statement of Changes in Financial Condition.
d
(e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital.
r
(f) Statement of Changes in Liabilities Subordinated to Claims of Creditors.
~
(g) Computation of Net Capital.
.,,
(h) Computation for Determination of Reserve Requirements Pursuant to Rule 15c3-3.
r
(i) Information Relating to the Possession or Control Requirements Under Rule l 5c3-3.
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D (j) A Reconciliation, including appropriate explanation of the Computation of Net Capital Under Rule 15c3-l and the
Computation for Determination of the Reserve Requirements Under Exhibit A of Rule l 5c3-3.
0 (k)
A Reconciliation between the audited and unaudited Statements of Financial Condition with respect to methods of
consolidation.
(I)
An Oath or Affirmation.
(m) A copy of the SIPC Supplemental Report.
(n) A report describing any material inadequacies found to exist or found to have existed since the date of the previous audit.
**For conditions of confidential treatment of certain portions of this filing, see section 240. 17a-5(e)(3). | I, _D_o_u_g_R_e_yn_o_l_d_s _______________________ , | swear (or affirm) that, to the best of | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------|----------------------------------------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | {2}------------------------------------------------ **ACKNOWLEDGMENT** A notary pubfic or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or vaJiclitv of that documenl Stale of CalifomiaLc /).\_ \ County or o; , *JO* a.5' On te br-..1c;J:\ 7-SJ Zu 2° before me, --+------L--'----L\_\_\_.\_--+=,.,,.,.......,\_\_,Sc:....:::=..+-l-'~~',--.+-0~'-'---'-- -----=:; 0nsert name and title of personalty appeared f)~ Jc; \ct 5 ,=: *R,* ◊\_.'.j *()* ~ l j 5' who proved to me on~ b~is of satisfactory evicMnce to be the persan(s) whose name(s) is/are subscribed to the within instrument and acknowleoged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or lhe entity upon behalf of which the person(s} acted, executed the instrumenl I certify under PENAL TY OF PERJURY under the laws of the Stale of California that the foregoing paragraph is true and correcl WITNESS my hand and official seal MATT HENDERSON Notary Public • Callfornla z: Los Angeles County ! Commission # 2304801 .,,. My Comm. Expires Sep 19, 2023 {Seal) {3}------------------------------------------------ ## REYNOLDS ADVISORY PARTNERS, LLC (SEC File No. 8-67918) Report of Independent Registered Public Accounting Firm On Financial Statements and Supplemental Schedules for the Year Ended December 31, 2019 and Report of Independent Registered Accounting Firm on Exemption Report {4}------------------------------------------------ ## TABLE OF CONTENTS | | Page | |-----------------------------------------------------------------------|-------| | REP.ORT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM (Opinion) | 1-2 | | FINANCIAL STATEMENTS | | | Statement of Financial Condition | 3-4 | | Statement of Operations | 5 | | Statement of Member's Equity | 6 | | Statement of Cash Flows | 7 | | Notes to Financial Statements | 8-13 | | Supplemental Information | 14-16 | | Report of Independent Registered Accounting Firm | 17 | | Exemption Report | 18 | {5}------------------------------------------------ ## HARDING AND HITTESDORF, P.C. Certified Public Accountants 650 S. Cherry Street, Suite 1050 Denver, Colorado 80246 (303) 393-0888 FAX (303) 393-0894 www.hhcpafirm.com ![](_page_5_Picture_3.jpeg) ## REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Member Reynolds Advisory Partners, LLC Los Angeles, California ### **Opinion on the Financial Statements** We have audited the ac9ompanying statement of financial condition of Reynolds Advisory Partners, LLC ( a limited liability company) as of December 31, 2019, the related statements of operations, changes in member's equity and cash flows for the year then ended, and the related notes and schedules ( collectively referred to as the "financial statements"). In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Reynolds Advisory Partners, LLC as of December 31, 2019, 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 Reynolds Advisory Partners, LLC's management. Our responsibility is to express an opinion on Reynolds Advisory Partners, LLC'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 Reynolds Advisory Partners, 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 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 financial statements. We believe that our audit provides a reasonable basis for our opinion. {6}------------------------------------------------ ## **Auditor's Report on Supplemental Information** The supplemental information contained in Schedules I and II has been subjected to audit procedures performed in conjunction with the audit of Reynolds Advisory Partners, LLC's financial statements. The supplemental information is the responsibility of Reynolds Advisory Partners, 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 its form and content, is presented in conformity with 17 C.F.R. Section 240.17a-5. In our opinion, the supplemental information contained in Schedules I and II is fairly stated, in all material respects, in relation to the financial statements as a whole. *Mu,/;~--/ ///4sclcM* /Je. HARDING kND HITTESDORF, p;:2 Certified Public Accountants We have served as Reynolds Advisory Partners, LLC's auditor since 2009. Denver, Colorado February 22, 2020 {7}------------------------------------------------ ## **REYNOLDS ADVISORY PARTNERS. LLC STATEMENT OF FINANCIAL CONDITION VEAR ENDED DECEMBER 31, 2019** | CURRENT ASSETS: | | |----------------------------------|-----------------| | Cash and Cash Equivalents | \$
67,217.06 | | Accounts Receivable | 810.60 | | Prepaid Expenses | 26,376.10 | | Total Current Assets | 94,403.76 | | PROPERTY AND EQUIPMENT, at cost: | | | Equipment | 33,357.79 | | Furniture | 20,319.58 | | | 53,677.37 | | Less Accumulated Depreciation | 53,677.37 | | Net Property and Equipment | 0.00 | | OTHER ASSET:
Deposit | 4,179.39 | | TOTAL ASSETS | \$
98,583.15 | See Accountant's Accompanying Notes ### -3- {8}------------------------------------------------ ## **REYNOLDS ADVISORY PARTNERS, LLC STATEMENT OF FINANCIAL CONDITION YEAR ENDED DECEMBER 31, 2019** | CURRENT LIABILITIES: | | |---------------------------------------|-----------------| | Accrued Expenses | \$
4,094.42 | | | | | Total Current Liabilities | 4,094.42 | | | | | MEMBER'S EQUITY | 94,488.73 | | | | | TOTAL LIABLIITIES AND MEMBER'S EQUITY | \$
98,583.15 | See Accountant's Accompanying notes -4- {9}------------------------------------------------ ## **REYNOLDS ADVISORY PARTNERS, LLC STATEMENT OF OPERATIONS VEAR ENDED DECEMBER 31, 2019** | \$
Advisory Services
Interest Income
OPERATING EXPENSES:
Salaries, Taxes and Benefits
Commissions
Rent
Computer and Internet
Office Expense
Professional fees
Travel
Telephone
Advertising
Automobile Expense
Miscellaneous
Business Licenses & Permits
Regulatory fees
Insurance
Total Operating Expenses | REVENUES: | | | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------|--------------|--| | | | 470,000.00 | | | | | 47.88 | | | | | 470,047.88 | | | | | | | | | | | | | | | 357,220.73 | | | | | 45,005.00 | | | | | 41,941.46 | | | | | 54,382.63 | | | | | 17,053.30 | | | | | 43,003.75 | | | | | 6,048.38 | | | | | 5,289.55 | | | | | 7,523.05 | | | | | 6,351.28 | | | | | 23,767.14 | | | | | 0.00 | | | | | 6,917.28 | | | | | 5,670.25 | | | | | | | | | | 620,173.80 | | | Net Profit/Loss | | (150,125.92) | | See Accountant's Accompanying Notes -5- {10}------------------------------------------------ ## **REYNOLDS ADVISORY PARTNERS, LLC STATEMENT OF CHANGES IN MEMBER'S EQUITY FOR THE VEAR ENDED DECEMBER 31, 2019** | BALANCE, DECEMBER 31, 2019 | 94,488.73 | |----------------------------|--------------| | Net Profit/Loss | (150,125.97) | | MemberContribution | 103,912.80 | | BALANCE, JANUARY 1, 2019 | 140,701.90 | See Accountant's Accompanying Notes -6- {11}------------------------------------------------ ## **REYNOLDS ADVISORY PARTNERS, LLC STATEMENT OF CASH FLOWS VEAR ENDED DECEMBER 31, 2019** CASH FLOWS FROM OPERATING ACTIVITIES: | Net Income (Loss) | \$
(150,125.92) | |-----------------------------------------------------------------------------|--------------------| | Adjustements to reconcile Net Income (Loss) to Net Cash used by operations: | | | Increase (decrease) in cash resulting from changes in: | | | Accounts Receivable | (810.60) | | Prepaid Expenses | (18,896.93) | | Accounts Payable | (4,881.02) | | Other Assets | 0.00 | | NET CASH USED FOR OPERATING ACTIVITIES | (174,714.47) | | CASH FLOWS FROM FINANCING ACTIVITIES: | | | Member 1 Draws | | | Member 2 Draws | | | RAP BD Holding | | | Member 2 Contributions | 50,189.51 | | RAP BD Contributions | 53,723.29 | | Net cash used provided by financing activities | 103,912.80 | | NET DECREASE IN CASH AND CASH EQUIVALENTS | (70,801.67) | | CB Main 1476 | 22,842.13 | | CB Payroll 1484 | 1,113.90 | | RAP MM 1590 | 114,062.75 | | Undeposited Funds | 0.00 | | Total Cash at Beginning of Period | 138,018.78 | | Cash at End of Period | \$
67,217.11 | | | | See Accountant's Accompanying Notes -7- {12}------------------------------------------------ ## NOTES TO FINANCIAL STATEMENTS ## FOR THE YEAR ENDED DECEMBER 31, 2019 ### A. Summruy of Significant Accounting Policies ## Organization Reynolds Advisory Partners, LLC (the Company) is a California Limited Liability Company specializing in mergers and acquisitions, capital raising and related financial advisory services focused on middle market clients nationwide. The Company is registered with the Securities and Exchange Commission ("SEC") and is also a member of the Financial Industry Regulatory Authority ("FINRA"). The Company operates pursuant to paragraph (k)(2)(B) of Rule 15c3-3 of the Securities and Exchange Act of 1934 (the "Act") and does not carry customer accounts or clear customer transactions, nor does it plan to hold any customers' securities or funds. As a result, the Company is exempt from the remaining provisions and requirements of Rule 15c3-3 of the Act. Under this exemption, *Computation for Determination of Reserve Requirements* and *Information Relating to Possession or Control Requirements* are not required. ## Cash and cash equivalents The Company considers cash in banks and investments with original maturities of three months or less to be cash equivalents. ## Accounts Receivable Accounts receivable represent engagement fees billed and not collected less an allowance for doubtful accounts, if applicable. No allowance for doubtful accounts was deemed necessary at December 31, 2019. ## Property and Equipment Property and equipment are stated at cost. Depreciation is calculated principally by the straight-line method using a useful life of 3 to 5 years. Maintenance and repairs are expensed as incurred. Major betterments are capitalized. {13}------------------------------------------------ ## NOTES TO FINANCIAL STATEMENTS ## FOR THE YEAR ENDED DECEMBER 31, 2019 #### A. Summruy of Significant Accounting Policies (Continued) ### Revenue Recognition In May 2014, the FASB issued ASU No. 2014-19. "Revenue from Contracts with Customers (Topic 606)." This ASU, as amended, provides comprehensive guidance on the recognition of revenue from customers arising from the transfer of goods and services, guidance for accounting for certain contract costs, and new disclosures. The Company adopted this ASU on January 2019 using a modified retrospective approach. The ASU did not have a material impact on its financial condition, results of operations or cash flows. Transaction fees related to mergers, acqms1tlons, finders, and financing fees are recognized upon closing of the related transaction. These are reflected as "Advisory services" in the accompanying statement of operations. The Company recognizes retainer revenue in accordance with ASC 606 which requires retainers and work fees to be recognized consistent with distinct performance obligations agreed to with clients. In the Company's engagements these specific obligations relate to specific milestones that occur in the "Marketing Preparation Phase" of our M&A engagements. Those milestones are normally as follows: (1) initial RAP due diligence of the client (meeting with the client and reviewing requested written documents); (2) industry research on the client's industry; (3) draft Confidential Information Memorandum (CIM); (4) preparation of prospective buyers list; and (5) confirmation of expected valuation range for the target company (client), following completion of due diligence and associated industry research. When all of these specific milestones have been reached, then the Marketing Preparation Phase of our assignment is finished, and we have satisfied all of the distinct performance obligations associated with our retainer and work fees. It is necessary for RAP management to use our judgement in determining when the above-described performance obligations have been met. However, at end of the current fiscal period, we have completed all of the performance obligations for the retainers and work fees charged for all of our current active assignments. ### Advertising and Marketing Costs Advertising and marketing costs are expensed as incurred. {14}------------------------------------------------ ## NOTES TO FINANCIAL STATEMENTS ## FOR THE YEAR ENDED DECEMBER 31, 2019 #### A. Summary of Significant Accounting Policies (Continued) ## Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of temporary cash investments. The Company restricts temporary cash investments to financial institutions with high credit standing. Such temporary cash investments are often in excess of the FDIC insurance limit. ### Income Taxes The Company is not a taxpaying entity for federal income tax paying purposes. The Company does file a Limited Liability Company Return of Income for the state of California. Accordingly, no federal income tax expense has been recorded in the financial statements. Income of the Company is taxed on the federal level to the member in its tax return. The Company records a liability for uncertain tax positions when it is more likely than not that a tax position would not be sustained if examined by the taxing authority. The Company continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative rulings. The Company's evaluation on December 31, 2019 revealed no uncertain tax positions that would have a material impact on the financial statements. Interest and penalties associated with the Company's tax positions are reflected as interest expense in the financial statements. There were no interest or penalties incurred during the year ended December 31, 2019. {15}------------------------------------------------ ## NOTES TO FINANCIAL STATEMENTS ## FOR THE YEAR ENDED DECEMBER 31, 2019 #### A. Summary of Significant Accounting Policies (Continued) ### Leases In February 2016, the FASB issued ASU 2016-02 *Leases* (Topic 842). This ASU, amended, provides comprehensive guidance on accounting for operating and financing leases by recognition of lease assets and lease liabilities. The company adopted this ASU in January 2019. The Company has elected, for all underlying classes of assets, to not recognize ROU assets and lease liabilities for short-term leases that have a lease term of 12 months or less at lease commencement, and do not include an option to purchase the underlying asset that the Company is reasonably certain to exercise. We recognize lease cost associated with our short-term leases on a straight-line basis over the lease term. Additionally, the Company has a financing lease that was immaterial to the financial statements as a whole. Therefore, no ROU asset or lease liability has been recorded. ## Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. #### B. Subsequent Events Management has reviewed subsequent events through the date of the auditor's report, which is the date the financial statements were available to be issued. #### C. Significant Clients The Company derived 43% of their revenue from one key client during the year ended December 31, 2019. However, the makeup of the Company's client base will vary from year to year. Accordingly, an annual concentration in revenue from the same clients is remote. {16}------------------------------------------------ ## NOTES TO FINANCIAL STATEMENTS ## FOR THE YEAR ENDED DECEMBER 31. 2019 #### D. Statutory Requirements Pursuant to Rule 15c3-1 of the Securities Exchange Act of 1934, the Company is required to maintain minimum net capital as defined under such rule. At December 31, 2019, the Company's net capital was \$63,123 and the required net capital was \$5,000. The Company is exempt from certain provisions of Rule 15c3-3 of the Securities Exchange Act of 1934 and, accordingly, is not required to maintain a "Special Account for Exclusive Benefit of Customers". Such exemption is in accordance with paragraph (k) (2) (i) of the Rule. ## E. Retirement Plan The Company provides a 401 (k) profit sharing plan which covers substantially all employees. Participating employees may elect to contribute, on a tax-deferred basis, a portion of their compensation in accordance with Section 401(k) of the Internal Revenue Code. The Company makes a matching contribution of 6% of compensation. In 2019, the Company made contributions in the amount of \$7,089.09. - 12 - {17}------------------------------------------------ ### NOTES TO FINANCIAL STATEMENTS ### FOR THE YEAR ENDED DECEMBER 31, 2019 ### F. Commitment ### Office Space Lease Commitment On August 1, 2018, the Company entered into a lease agreement for office space. The lease expired January 31, 2020 and is now month to month. The Company incurred rent expense of \$41,941.46 for the year ended December 31, 2019. Future minimum lease payments under the terms of this lease are: ## 2020 \$4,062 ## Office Printer Lease Commitment On August 1, 2019 the Company entered into a lease to own agreement with Xerox Financial Services, LLC for the use of a printer. The lease is \$205.43/mo for 60 months starting on August 13,2019. The Company incurred lease expenses of 1,027.15 for the year ended 12/31/2019. Future minimum lease payments under the terms of this lease are: | 2020 | \$2,465.16 | |------|------------| | 2021 | \$2,465.16 | | 2022 | \$2,465.16 | | 2023 | \$2,465.16 | | 2024 | \$1,438.01 | - 13 - {18}------------------------------------------------ ## SUPPLEMENTARY INFORMATION {19}------------------------------------------------ ## SUPPLEMENTAL SCHEDULE OF COMPUTATION OF NET CAPITAL, MINIMUM NET CAPITAL REQUIRED, AND AGGREGATE INDEBTEDNESS ## DECEMBER 31, 2019 ## COMPUTATION OF NET CAPITAL AND MINIMUM NET CAPITAL REQUIRED | MEMBER'S EQUITY | 94,489
\$ | |------------------------------------------------------------------------------------------|--------------| | DEDUCTIONS:
Nonallowable assets | (31,366) | | NET CAPITAL | 63,123
\$ | | MINIMUM NET CAPITAL REQUIRED (greater of 6-2/3%
of aggregate indebtedness or \$5,000) | 5,000
\$ | | AGGREGATE INDEBTEDNESS | | | TOTAL LIABILITIES AND AGGREGATE INDEBTEDNESS | 4,094
\$ | |-------------------------------------------------|-------------| | RA TIO OF AGGREGATE INDEBTEDNESS TO NET CAPITAL | ,0649:1 | There is no material difference between the above net capital computation and the corresponding computation included in the Company's Form X-17 A-5 Part IIA Filing. ### SCHEDULE! {20}------------------------------------------------ ## COMPUTATION FOR DETERMINATION OF RESERVE REQUIREMENTS FOR BROKERS AND DEALERS PURSUANT TO RULE 15c3-3 ## DECEMBER 31. 2019 The Company is exempt from the provisions of Rule 15c3-3 under the Securities Exchange Act of 1934, in that the Company's activities are limited to those set forth in the conditions for exemption appearing in paragraph (k) (2) (i) of the Rule. ### SCHEDULE II {21}------------------------------------------------ # **HARDING AND HITTESDORF, P.C.** Certified Public Accountants 650 S. Cherry Street, Suite 1050 Denver, Colorado 80246 **(303) 393-0888 FAX (303) 393·0894** www.hhcpaflrm.com ![](_page_21_Picture_3.jpeg) ## REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Member of Reynolds Advisory Partners, LLC We have reviewed management's statements, included in the accompanying Exemption Report, in which (1) Reynolds Advisory Partners, LLC identified the following provisions of 17 C.F.R. § 15c3-3(k) under which Reynolds Advisory Partners, LLC claimed an exemption from 17 C.F.R. § 240.15c3-3: (k)(2)(i) (exemption provisions) and (2) Reynolds Advisory Partners, LLC stated that Reynolds Advisory Partners, LLC met the identified exemption provisions throughout the most recent fiscal year without exception. Reynolds Advisory Partners, 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 Reynolds Advisory Partners, 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 paragraph (k)(2)(i) of Rule 15c3-3 under the Securities Exchange Act of 1934. */-lck~/lq=-1-JJds/c;~* f?e. HARDINefAND HITIESDORF,~. Denver, Colorado February 22, 2019 {22}------------------------------------------------ ## **E YNO L D S** Advisory Partners, LLC Middle Market Investment Banking ### **ASSERTIONS REGARDING EXEMPTION PROVISIONS.** We, as members of management of Reynolds Advisory Partners, LLC (the "Company"), are responsible for compliance with the annual reporting requirements under Rule 17a-5 of the Securities Exchange Act of 1934. Those requirements compel a broker or dealer to file annual reports with the Securities and Exchange Commission (SEC) and the broker or dealer's designated examining authority (DEA). One of the reports to be included in the annual filing is an exemption report prepared by an independent public accountant based upon a review of the assertions provided by the broker or dealer. Pursuant to that requirement, the management of the Company hereby makes the following assertions: ### **Identified Exemption Provision:** The Company claims exemption from the custody and reserve provisions of Rule 15c3-3 by operating under the exemption provided by Rule 15c3-3, Paragraph (k)(2)(i). ### **Statement Regarding Meeting Exemption Provision:** The Company met the identified exemption provision without exception throughout the twelve month period from January 1, 2019 through December 31, 2019. Reynolds Advisory Partners, LLC Douglas E. Reynolds, President Name and Title December 31, 2019 Date **Reynolds Advisory Partners,** LLC. • 900 S. Figueroa St., Suite 2601 • Los Angeles, CA 90015 • www.revnoldsap.com\_ • Member: FINRA / SIPC Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.