# PARK SUTTON SECURITIES, LLC X-17A-5 (2022-03-21) — Broker-dealer annual report - Company: PARK SUTTON SECURITIES, LLC - Form: X-17A-5 - Filed: 2022-03-21 - Period: 2021-12-31 - Accession: 0001457864-22-000002 - CIK: 1457864 - File #: 8-68195 - Type: Broker-dealer - Material weakness: No - Auditor: Knight Rolleri Sheppard, CPAS, LLP - Auditor location: Fairfield, CT - Contact: Steven Levitt - Phone: 646-727-4826 - Email: steven.levitt@parksuttonadvisors.com - Website: parksuttonadvisors.com - Signed by: Steven Levitt (Managing Member) Original filing: https://www.sec.gov/Archives/edgar/data/1457864/000145786422000002/PSSPublic21.pdf --- {0}------------------------------------------------ Park Sutton Securities, LLC Report Pursuant to Rule 17a-5 of The Securities and Exchange Commission December 31, 2021 ![](_page_0_Picture_1.jpeg) {1}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** 0MB APPROVAL 0MB Number: 3235-0123 Expires: Oct. 31, 2023 Estimated average burden hours per response: 12 # **ANNUAL REPORTS FORM X-17A-5** | SEC FILE NUMBER | |-----------------| | 8-68195 | **PART** Ill **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 \_\_ 0\_11\_0\_1/\_2\_1 \_\_\_ AND ENDING \_\_ 12\_/\_3\_1/\_2\_1 \_\_\_ \_ MM/DD/VY MM/DD/YY **A. REGISTRANT IDENTIFICATION** NAME OF FIRM: Park Sutton Securities, LLC TYPE OF REGISTRANT (check all applicable boxes): l&J Broker-deafer D Security-based swap dealer D Major security-based swap participant D Check here if respondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSJNESS: (Do not use a P.O. box no.) 9 East 40th Street, 16th Floor (No. and Street) New York NY (City) (State) PERSON TO CONTACT WITH REGARD TO THIS FILING 10016 (Zip Code) Steven Levitt 646-727-4826 Steven.Levitt@parksuttonadvisors.com (Name) (Area Code -Telephone Number) (Email Address) **B. ACCOUNTANT IDENTIFICATION** INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing\* Knight Rolleri Sheppard, CPAS, LLP (Name -if individual, state last, first, and middle name) 2150 Post Road, 5th Floor Fairfield CT (Address) (City) (State) 03/04/2009 3437 06824 (Zip Code) l" of R•gj>t,atloe with PCAOBJ(if ,pplicableJ FOR OFFICIAL USE **ONLY** (PCAOB Regj,tc,tloe N"mbec, If ,pplicableJ I "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•S(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 0MB control number. {2}------------------------------------------------ #### **OATH OR AFFIRMATION** | Steven Levitt
I, | swear (or affirm) that, to the best of my knowledge and belief, the | | |--------------------------------------------|-----------------------------------------------------------------------------------|---------| | financial report pertaining to the firm of | Park Sutton Securities, LLC | , as of | | 2~
December 31 | 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. Elaine Weglarz Notary Public, State of New York Reg.No.01WE6260014 Qualified in Westchester County My Commission Expires 04/16/2024 e;.-,;:\_\_---,..;z\_\_----,:~u\_1.4-,:.e:.=:;.;:\_\_\_\_, \_\_ Signa~~ ~ Titlf: Managing Member #### This filing\*\* contains (check all applicable boxes): - IX) (a) Statement of financial condition. - Ix] (b) Notes to consolidated statement of financial condition. - 0 (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). - □ (d) Statement of cash flows. - 0 (e) Statement of changes in stockholders· or partners' or sole proprietor's equity. - D (f) Statement of changes in liabilities subordinated to claims of creditors. - □ (g) Notes to consolidated financial statements. - D (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. - D (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. - D (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.15c3-3. - □ (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - D (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. - D (o} Reconcillatlons, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-1, 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. - ~ (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. - D (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - □ (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - IX) (t) Independent public accountant's report based on an examination of the statement of financial condition. - □ (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-S or 17 CFR 240.lBa-7, as applicable. - D (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-S or 17 CFR 240.lBa-7, as applicable. - D (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.1Sc3-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: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_ - - *\*\*Ta 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.* {3}------------------------------------------------ #### **-** #### | Report of Independent Registered Public Accounting Firm | 1 | |---------------------------------------------------------|-----| | Statement of Financial Condition | 2 | | Notes to the Statement of Financial Condition | 3-6 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) #### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Member of Park Sutton Securities, LLC #### **Opinion on the Financial Statemcnl** We have audited the accompanying statement of financial condition of Park Sutton Securities, LLC as of December 3 I, 202 1, and the related notes (collectively referred to as the "financial statement"). In our opinion, the financial statement presents fairly, in all material respects, the financial position of Park Sutton Securities. LLC as of December 31, 2021 in confom1ity with accounting principles generally accepted in the United States of America. #### **Basis** for **Opinion** This financial statement is the responsibility of Park Sutton Securities, LLC's management. Our responsibility is to express an opinion on Park Sunon Securities, LLC's financial statement based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAO B) and are required to be independent with respect to Park Sulton Securities, LLC il!l accordance with the U.S. federal securities laws and the applicable rules and regulations ofthll 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 perfonn ing procedures to assess the risks of material misstatement of the financial statement, whether due to error or fraud, and perfonning procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in 1he 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. Knight Rolleri Sheppard CPAS, LLP We have served as Park Sutton Securities, LLC's auditor since 20 I 0. f-airfield. Connecticut March 11 , 2022 > 'J '•0 Pos: Roar!, Sri• I,, • I u d,eld, '-T f){,r,/ 1 I 1 :i E r ,·, •OIi , ('I, , • Greelh' It 1 1... T '· '() ii.20.l }::,<.) 2727 • 1 2t) . .':io 2127 wvm f l',, p11sll1 0 1, A111,0 :r, un l11shtute of C!:!rtifiL•d Public Accou·1tc:11b • Co1111cd1c,1t S,Judy of Cerl1fied Puhlrc ·\u:ounlonts (011°0011\ ,-\ 01;1 t,r19 Overs,gli1 t,011rd • hle•:1 Yorl to'•''- c'", ~f C0 r1d1e, P 11, ..'.,::cour.tn·1ts • 1,\cssu.·1,\_ ;e:•5 \_ •··1 ' {5}------------------------------------------------ # Park Sutton Securities, LLC Statement of Financial Condition December 31, 2021 | Assets | | | |---------------------------------------|-------|------------| | Current assets | | | | Cash and equivalents | S | 20,375,987 | | Accounts receivable | | 653,080 | | Employee advance | | 5,436 | | Prepaid expenses | | 143,088 | | Total current assets | | 21,177,591 | | Property and equipment | | | | Office equipment and furniture | | 185,530 | | Leasehold improvements | | 13,061 | | Accumulated depreciation | | (26,923) | | Net property and equipment | | 171,668 | | Other assets | | | | Security deposit | | 68,333 | | Right-of-use asset | | 773,029 | | Total other assets | | 841,362 | | Total assets | ਦਿੱ | 22,190,621 | | Liabilities and Members' Equity | | | | Current liabilities | | | | Accounts payable | S | 36,054 | | Unearned revenue | | 10,000 | | Taxes payable | | 300,000 | | Lease liability | | 819,128 | | Accrued liabilities | | 7,371,447 | | Total current liabilities | | 8,536,629 | | Members' Equity | | 13,653,992 | | Total liabilities and members' equity | ਦੇ ਦੇ | 22,190,621 | See report of independent registered public accounting firm and notes to financial statement. {6}------------------------------------------------ ### Park Sutton Securities, LLC Notes to Financial Statement December 31, 2021 (See Report of Independent Registered Public Accounting Firm) ## NOTE 1 - ORGANIZATION AND NATURE OF BUSINESS Park Sutton Securities, LLC (the "Company") is a registered broker-dealer with the Securities and Exchange Commission (SEC) and a member of the Financial Industry Regulatory Authority, Inc. (FINRA). The Company is an independent New York based boutique investment bank which provides an array of financial services to the asset and wealth management industry. The Company received its FINRA approval for membership in 2010. The Company's sole member is Park Sutton Holdings, LLC ("PSH"). In addition to the Company, PSH is 100% owner of Park Sutton Advisors, LLC ("PSA"). PSA shares common management with the Company. PSA is currently inactive. #### NOTE 2-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of accounting - The Company maintains its books and records on the accrual basis of accounting for financial reporting purposes, which is in accordance with U.S. generally accepted accounting principles and is required by the SEC and FINRA. The financial statements include only the assets and liabilities of the Company and are not combined with the related companies. Regulatory requirements require that the brokerdealer of securities be reported separately. Cash and equivalents - For the purposes of the statement of cash flows, the Company considers cash in banks and all highly liquid debt instruments with maturity of three months or less to be cash equivalents. The Company maintains its cash in bank deposit accounts, which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash. As of December 31, 2021, the Company does not hold any cash equivalents. Revenue recognition - The Company recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance requires an entity to follow a five-step model to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) the entity satisfies a performance obligation. In determining the transaction price, an entity may include variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved. Revenue from contracts with customers includes fees from investment banking and financial advisory services. The recognition and measurement of revenue is based on the assessment of individual contract terms. Significant judgement 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 appropriate measure of the Company's progress under the contract; and whether constraints on variable consideration should be applied due to uncertain future events. Revenue from investment banking success fees is generally recognized at the point in time that performance under the arrangement is completed (the closing date of the transaction). Revenue from financial advisory retainer fees is generally recognized over time in which the performance obligations are simultaneously provided by the Company and consumed by the customer. {7}------------------------------------------------ # Park Sutton Securities, LLC Notes to Financial Statement December 31, 2021 (See Report of Independent Registered Public Accounting Firm) ## NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONTINUED) Revenue recognition - Revenue from financial advisory valuation fees is generally recognized at the point in time that performance under the arrangement is completed. Retainers and other fees received from customers prior to recognizing revenue are reflected as contract liabilities. At December 31, 2021, contract liabilities were \$10,000, as shown on the Statement of Financial Condition. Disaggregation can be found on statement of operations for the year ended December 31, 2021. Use of accounting estimates - The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and disclosures. Accordingly, the actual amounts could differ from those estimates. Any adjustments applied to the estimated amounts are recognized in the year in which such adjustments are determined. Accounts receivable - Accounts receivables are carried at cost or have been written down to net realizable value. No allowance for uncollectable accounts is required at December 31, 2021. Management evaluates each receivable on a case-by-case basis for collectability and they write the receivable down to net realizable value. Property and equipment - Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Asset lives range from three to five years for office automation equipment and fixture and fixtures. Leaseholds are amortized over the shorter of the asset life or the life of the lease. The Company follows the policy of capitalizing all major additions, renewals and betterments. Minor replacements, maintenance, and repairs are expensed currently. Depreciation expense for the year ended December 31, 2021 was \$25,426. Advertising - The Company policy is to expense advertising as incurred. Income taxes - The Company is a limited liability company treated as a disregarded entity. Accordingly, in lieu of Federal and state income taxes, the member is taxed on their proportionate share of the Company's taxable income. Therefore, no provision or liability for Federal or state taxes has been included in these financial statements. The entity is subject to the City of New York UBT tax. The Company has adopted FASB Accounting Standards Codification 740 for accounting for uncertain tax positions. The standard prescribes how an entity should measure, recognize, present and disclose positions that it has taken or expects to take on its income tax returns. Park Sutton Holdings, LLC and the Company regularly reviews and evaluates its tax positions taken in previously filed information returns and as reflected in its financial statements and believes that in the event of an examination by taxing authorities, its positions would prevail based upon the technical merits of such positions. The Company has concluded that no tax benefits or liabilities are required to be recognized. The Company's tax return remains subject to examination by the appropriate taxing jurisdiction for tax years ending after December 31, 2018. #### NOTE 3 - RETIREMENT PLANS Defined benefit pension plan - On December 29, 2016 the Company adopted a defined benefit pension plan (the Plan) with an effective date of January 1, 2016. The Plan covers all employees and members of the Company meeting certain eligibility requirements. The Company's funding policy is to contribute an amount equal to or greater than the minimum funding requirements of the Employee Retirement Income Security Act of 1974, as determined under actuarial assumptions based upon percentage of payroll or self-employment income costs. The contributed amounts will not exceed the maximum tax-deductible limit. {8}------------------------------------------------ ### Park Sutton Securities, LLC Notes to Financial Statement December 31, 2021 (See Report of Independent Registered Public Accounting Firm) # NOTE 3 - RETIREMENT PLANS(CONTINUED) Defined benefit pension plan - The Plan will invest primarily in publicly traded securities including equities and fixed income instruments, which are considered Level 1 assets. As of December 31, 2021, there are \$666,768 of plan net assets at fair value. The amount funded for the year ended December 31, 2021 is \$100,000 and is recorded as pension expense for the year. The Company's share of the actuarially determined projected benefit obligation at December 31, 2021 is \$513,298 and the accumulated benefit obligation is \$513,298. This is based upon end of year valuations. These amounts were calculated using the following assumptions: | Pre-retirement interest rate | 5% | |-------------------------------|----| | Post retirement interest rate | 5% | The total benefits payable as monthly annuities are expected to be as follows: | From 2021 through 2025 | \$0 | |---------------------------|-------------| | From 2026 through 2030 | \$0 | | Lump sum payments at 2033 | \$1,828,604 | Defined contribution pension plan - In 2016 the Company adopted a defined contribution plan. The plan is a 401K/profit sharing plan and is eligible to all employees and members of the Company meeting certain eligibility. Eligibility employees can elect to defer a portion of their salary or guaranteed payment to the 401k plan, while the Company can contribute a discretionary amount for profit sharing. For the year ended December 31, 2021, the Company contributed \$90,000 to the plan. #### NOTE 4-CONCENTRATIONS AND CREDIT RISK For the year ended December 31, 2021, one customer represented 15% of the Company's revenue As of December 31, 2021, the Company's cash in bank exceeds federally insured limits by \$22,519,848. #### NOTE 5-NET CAPITAL REQUIREMENT The Company is subject to the SEC Uniform Net Capital Rule (Rule 15c3-1), which requires the maintenance of net capital and the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. At December 31, 2021, the Company had net capital of \$12,920,887, which was \$12,403,313 in excess of its required net capital of \$517,574. The Company's ratio of indebtedness to net capital was 60.09%. #### NOTE 6 - Exemption from Rule 15c3-2 The Company amended its membership agreement with FINRA on November 20, 2020 and will not claim exemption from the provisions of Rule 15c3-3 of the SEC, in reliance on footnote 74 to SEC Release 34-70073. #### NOTE 7-SUBSEQUENT EVENTS In accordance with FASB Accounting Standards Codification 855, Subsequent Events, the Company has evaluated subsequent events to the Statement of Financial Position date of December 31, 2021 through March 11, 2022, which is the date the financial statements were issued. Management has determined that there are no subsequent events that require disclosure. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.