# PERTH ADVISORS LLC X-17A-5 (2022-11-29) — Broker-dealer annual report - Company: PERTH ADVISORS LLC - Form: X-17A-5 - Filed: 2022-11-29 - Period: 2022-09-30 - Accession: 0001475022-22-000002 - CIK: 1475022 - File #: 8-68423 - Type: Broker-dealer - Material weakness: No - Auditor: Spicer Jeffries LLP - Auditor location: Denver, CO - Contact: Edward Cohen - Phone: 203-557-6070 - Email: mpc@perthadvisors.com - Website: perthadvisors.com - Signed by: Michael Patrick Campbell (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1475022/000147502222000002/public.pdf --- {0}------------------------------------------------ # PERTH ADVISORS LLC PERTH ADVISORS LLC ### STATEMENT OF FINANCIAL CONDITION STATEMENT OF FINANCIAL CONDITION SEPTEMBER 30, 2022 SEPTEMBER 30, 2022 > PUBLIC PUBLIC {1}------------------------------------------------ # PERTH ADVISORS LLC FINANCIAL STATEMENTS SEPTEMBER 30, 2022 PERTH ADVISORS LLC FINANCIAL STATEMENTS SEPTEMBER 30, 2022 # CONTENTS CONTENTS | | PAGE
PAGE | |----------------------------------------------------------------------------------------------------------------------------------------------------|--------------| | Affirmation
Affirmation
Facing
Oath
or
or
Facing
-Oath
Page
Page
- | 1-2
1-2 | | of
ofIndependent
Public
Accounting
Accounting
Firm
Firm
Report
Report
Independent
Registered
Public
Registered | | | of
ofFinancial
Condition
Condition
Financial
Statement
Statement | | | Financial
Notes
Notes
to
to
Financial
Statements
Statements | 5-10
5-10 | {2}------------------------------------------------ "N'TEDSTATES OMEmLZfZZSEXi'iés SECURITIES AND EXCHANGE COMMISSION Expires: on. 3'1, 2023 Washington, D.C. 20549 Estimated average burden UNITED STATES ' OMB Nun'I/t'agfgzgs-mzs ' SECURITIES AND EXCHANGE COMMISSION mm: cm. 3'1! 2023 Washington, D.C. 20549 Estimated average burden | ANNUAL
REPORTS
ANNUAL
REPORTS | smmumm
SECWE
NUMBER | |----------------------------------------|---------------------------| | X-17A-5
FORM
FORM
X-17A-5 | | | III
PART
PART
III | | | hours
per
response:
12
hours
12
per response: | | |-----------------------------------------------------------------|--| FACING PAGE FACING PAGE Information Required Pursuant to Rules 17a-S, 17a-12, and 18a-7 under the Securities Exchange Act Of 1934 information Required Pursuant to Rules 17a-5, 17a-12, and 183-7 under the Securities Exchange Act of 1934 FILING FOR THE PERIOD BEGINNING October 1'2021 AND ENDING September 30' 2022 FILING FOR THE PERIOD BEGINNING October 1' 2021 AND ENDING September 30' 2°22 MM/DD/YY MM/DD/YY MM/DD/YY MM/DD/YY A. REGISTRANT IDENTIFICATION A. REGISTRANT IDENTIFICATION # NAMEOF "RM, Perth Advisors LLC NAMEOF "RM, Perth Advisors LLC TYPE OF REGISTRANT (check all applicable boxes): TYPE OF REGISTRANT (check all applicable boxes): IE Broker-dealer CI Security-based swap dealer CI Major security-based swap participant [3 Check here if respondent is also an OTC derivatives dealer El Broker-dealer III Security-based swap dealer C] Major security-based swap participant El Check here Ifrespondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (DO not use a PO. box no.) ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a PO. box no.) # 16 Madison Square Park West, 12th Floor 16 Madison Square Park West, 12th Floor | | (No.
and
Street)
(No.
and
Street) | | | |------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|-------------------------------------------------------------| | York
New
New
York | NY
NY | | 10010
10010 | | (City)
(City) | (State)
(State) | | (Zip
Code)
(Zip
Code) | | PERSON
TO
CONTACT
WITH
REGARD
WITH
TO
CONTACT
PERSON
REGARD | TO
THIS
FILING
TO
THIS
FILING | | | | Michael
Patrick
Campbell
Patrick
Campbell
Michael | (917)
703—371
6
(917)
703-3716 | mpc@perthadvisors | mpc@perthadvisors.com
.com | | (Name)
(Name) | -Telephone
Number)
(Area
(Area
Code
Code
Telephone
Number)
— | (Email Address)
(Email
Address) | | | B.
B. | ACCOUNTANT
ACCOUNTANT
IDENTIFICATION
IDENTIFICATION | | | | Spicer
Spicer
Jeffries
Jeffries
LLP
LLP
(Name
(Name | if individual,
state
first.
last,
and
if
individual,
state
last, first,
and
—
— | middle
name)
middle
name) | | | 4601
DTC
Parkway
DTC
Suite
Suite
4601
Parkway
,
, | 700
700
Denver
Denver | CO
CO | 80234
80234 | | (Address)
(Address) | (City)
(City) | (State)
(State) | (Zip
Code)
(Zip
Code) | | 10/20/2003
0/20/2003
1 | | 349
349 | | | (Date
of Registration
of Registration
with
with
PCAOB)(if
applicable)
(Date
applicable)
PCAOB)(if | | Registration
(PCAOB
(PCAOB
Registration | if
Number,
applicable
Number,
if
applicable) | | | FOR
OFFICIAL
ONLY
FOR
OFFICIAL
USE
ONLY
USE | | | | | | | | | *
Claims
for exemption
*
for
from
the
from
the
requirement
requirement
exemption
Claims | that
that
the
the
annual reports
annualreports
covered
be
be
covered | thereports
of an
by
by
the
Of an
reports | independent
public
independent
public | accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-5(e)(1)(ii), if applicable. accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a—5(e)(1)(ii), if applicable. Persons who are to respond to the collection Of information contained in this form are not required to respond unless the form displays a currently valid OMB control number. 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. {3}------------------------------------------------ ### OATH OR AFFIRMATION OATH OR AFFIRMATION | I,
I, | MichaelPatrickCampbe"
MichaelPatrickCampbe" | | (or
swear
swear | affirm)
(or
affirm)
that,
that, | the
best
of
to
to
the
best of | knowledge
my
knowledge
my | and
belief,
the
and
belief,
the | |------------------------|------------------------------------------------------------------------|--------------------|-------------------------------------------------------|---------------------------------------------|-------------------------------------------------|------------------------------------|------------------------------------------------| | financial
financial | pertaining
report
pertaining
the
the
report
to
to | firm
firm
of | of Fed"
MViSOI's
"-3
Fed"
Advisors
LLC | | | | of
as
of
as | | | | | | | | | , | 9/30 , 2022 , 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. 9/30 . 2°22 . 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. | | ALFONSO
RAMOS
ALFONSO
F. RAMOS
F.
PUBLIC.
STATE
OF
NEW
NEW
YORK
YORK
NOTARY
STATE
OF
PUBLIC.
NOTARY | Title:
Title:
CEO
CEO | |--------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------| | Notary
Public
Notary
Public | 02RA6347510
Registration
No.
No. 02RA6347510
Registration
Qualified
in
New
York
County
County
New
York
Qualified
in
Commission
Expires
September
06,
2024
Commission
Expires
September
06.
2024 | | | SW
SW | | M
M | |----------|--|---------| | | | fi
- | | | | | # This filing" contains (check all applicable boxes): This filing" contains (check all applicable boxes): - (a) Statement of financial condition. E (a) Statement of financial condition. - (b) Notes to consolidated statement of financial condition. E (b) Notes to consolidated statement of financial condition. - - (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 § 2101-02 of Regulation S-X). El (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. E] (d) Statement of cash flows. - (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. El (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - (f) Statement of changes in liabilities subordinated to claims of creditors. Cl (f) Statement of changes in liabilities subordinated to claims of creditors. - (g) Notes to consolidated financial statements. El (3) Notes to consolidated financial statements. - (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. [3 (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. - (i) Computation of tangible net worth under 17 CFR 240.18a-2. El (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. Cl (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. El (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. - (l) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3—3. El (l) 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. Cl (m) information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - El ClClEl DDEIEIDCICID Clillll] (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. Cl (n) information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.183-4, as applicable. - (0) Reconciliations, 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 240.183—4, as applicable, if material differences exist, or a statement that no material differences exist. C! (0) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-1, 17 CFR 240.183-1, or 17 CFR 240.183-2, as applicable, and the reserve requirements under 17 CFR 240.15c3—3 or 17 CFR 240.183-4, 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. (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. (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. (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - (5) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. (5) 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. (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. (u) independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240.173-5, 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. (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 240.183-7, as applicable. - Cl Cl El Cl D EllIJDEIlllEl (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. D E] El Cl C! UllDEIMEl (w) Independent public accountant'5 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 240.15c3-1e or 17 CFR 240.17a-12, as applicable. (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-1e 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). (y) Report describing any material inadequacies found to exist or found to have existed since thedate of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). - (2) Other: (2) Other: - "To request confidential treatment of certain portions ofthis filing, see 17 CFR 240.17a-5(e)(3) or 17 CFR 240.18a-7(d)(2), as applicable. l"\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e)(3) or 17 CFR 240.180~7(d}(2), as applicable. {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) 4601 DTC BOULEVARD - SUITE 700 DENVER, COLORADO 80237 TELEPHONE: (303) 753-1959 FAX: (303) 753-0338 www.spicerieffries.com 4601 DTC BOULEVARD - SUITE 700 DENVER, COLORADO 80237 TELEPHONE: (303) 753-1959 FAX: (303) 753-0338 www.spicerj effries.com # REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Member of Perth Advisors LLC To the Member of Perth Advisors LLC ### Opinion on the Financial Statements Opinion on the Financial Statements We have audited the accompanying statement of financial condition of Perth Advisors LLC (the "Company") as of September 30, 2022, and the related notes to the statement of financial condition. In our opinion, the financial statement presents fairly, in all material respects, the financial position of the Company as of September 30, 2022 in conformity with accounting principles generally accepted in the United States ofAmerica. We have audited the accompanying statement of financial condition of Perth Advisors LLC (the "Company") as of September 30, 2022, and the related notes to the statement of financial condition. In our opinion, the financial statement presents fairly, in all material respects, the financial position of the Company as ofSeptember 30, 2022 in conformity with accounting principles generally accepted in the United States ofAmerica. # Basis for Opinion Basis for Opinion This financial statement is the responsibility ofthe Company's management. Our responsibility is to express an opinion on the Company's financial statement based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the US. federal securities laws and the applicable rules and regulations ofthe Securities and Exchange Commission and the PCAOB. This financial statement is the responsibility ofthe Company's management. Our responsibility is to express an opinion on the Company's financial statement based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the US. federal securities laws and the applicable rules and regulations ofthe Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards ofthe PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statement, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statement. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. 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 erroror fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statement, whether due to error orfraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts anddisclosures in the financial statement. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. -' LLP We have served as Perth Advisors LLC's auditor since 2019. We have served as Perth Advisors LLC's auditor since 2019. Denver, Colorado November 29, 2022 Denver, Colorado November 29, 2022 ![](_page_4_Picture_12.jpeg) {5}------------------------------------------------ ### PERTH ADVISORS LLC STATEMENT OF FINANCIAL CONDITION FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2022 PERTH ADVISORS LLC STATEMENT OF FINANCIAL CONDITION FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2022 ### ASSETS ASSETS | Cash
Cash | 233,420
233
,420
\$
\$ | |------------------------------------------------------------------|------------------------------------| | Advisory
Advisory
receivable
receivable
fees
fees | 970,391
970,391 | | Other
Other
assets
assets | 15,504
15,504 | | TOTAL
TOTAL
ASSETS
ASSETS | 1.219.315
1,219,315
§
\$ | # LIABILITIES AND MEMBER'S EQUITY LIABILITIES AND MEMBER'S EQUITY Liabilities: Liabilities: | Deferred
income
Deferred
income | \$
\$ | 37,500
37,500 | | |--------------------------------------------------------------------------------------------------------|----------|------------------------|--| | payable
Taxes
Taxes
payable | | 800
800 | | | liabilities
liabilities
Accrued
Accrued
other
and
andother
expenses
expenses | | 21,368
21,368 | | | LIABILITIES
TOTAL
TOTAL
LIABILITIES | | 59,668
59,668 | | | Member's
Member's
equity:
equity: | | 1,159,647
1,159,647 | | | LIABILITIES
AND
TOTAL
TOTAL
LIABILITIES
AND
MEMBER'S
EQUITY
EQUITY
MEMBER'S | s
\$ | 1,219,315
1,219,315 | | The accompanying notes are an integral part ofthis financial statement. The accompanying notes are an integral part ofthis financial statement. {6}------------------------------------------------ #### NOTE 1. ORGANIZATION AND NATURE OF BUSINESS NOTE 1. ORGANIZATION AND NATURE OF BUSINESS Perth Advisors LLC (the "Company"), was formed on September 16, 2009, in the State of Delaware. The Company, registered with the Securities and Exchange Commission (the "SEC") and became a broker-dealer on June 15, 2010 ("Inception"). The Company, a member of the Financial Industry Regulatory Authority, Inc. ("FINRA"), acts as a broker dealer that provides advisory services relating to the private placement of capital. The Company is a wholly owned subsidiary ofPerth Partners Holdings LLC organized in Delaware (the "'Parent"). Perth Advisors LLC (the "Company"), was formed on September 16, 2009, in the State of Delaware. The Company, registered with the Securities and Exchange Commission (the "SEC") and became a broker-dealer on June 15, 2010 ("Inception"). The Company, a member of the Financial Industry Regulatory Authority, Inc. ("FINRA"), acts as a broker dealer that provides advisory services relating to the private placement of capital. The Company is a wholly owned subsidiary ofPerth Partners Holdings LLC organized in Delaware (the "Parent"). #### NOTE 2. SIGNIFICANT ACCOUNTING POLICIES NOTE 2. SIGNIFICANT ACCOUNTING POLICIES ### Basis ofPresentation Basis ofPresentation The books and records of the Company are kept on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States ofAmerica ("GAAP"). The books and records of the Company are kept on the accrual basis of accounting in accordance withaccounting principles generally accepted in the United States ofAmerica ("GAAP"). # CLSh Cash The Company holds cash in financial institutions in excess ofthe Federal Deposit Insurance Corporation insured limits. The Company periodically reviews the financial condition ofthe financial institutions and assesses the credit risk of such investments. The Company holds cash in financial institutions in excess ofthe Federal Deposit Insurance Corporation insured limits.The Company periodically reviews the financial condition ofthe financial institutions andassesses the credit risk of such investments. ### Advisory Fees Receivable Advisory Fees Receivable The Company carries its advisory fees receivable at billed amounts less an allowance for doubtful accounts. Ifnecessary, on a periodic basis, the Company evaluates its advisory fees receivable and establishes an allowance for doubtful accounts, based on a history of past write-offs and collections and current credit conditions. No allowance fordoubtful accounts was required at September 30, 2022. The Company carries its advisory fees receivable at billed amounts less an allowance for doubtful accounts. Ifnecessary, on a periodic basis, the Company evaluates its advisory fees receivable and establishes an allowance for doubtful accounts, based on ahistory of past write-offs and collections and current credit conditions. No allowance for doubtful accounts wasrequired at September 30, 2022. The Company has negotiated with certain clients the payment of advisory fees over a period greater than one year. The Company has negotiated with certain clients the payment ofadvisory fees over a period greater than one year. ## Use ofEstimates Use ofEstimates Financial statements prepared in accordance with GAAP require management to make estimates and assumptions that affect the amounts and disclosures reported in the financial statements and accompanying notes. Such estimates and assumptions could change in the fiJture as more information becomes known, which could impact the amounts reported and disclosed herein. Financial statements prepared in accordance with GAAP require management to make estimates and assumptions that affect the amounts and disclosures reported in the financial statements and accompanying notes. Such estimates and assumptions could change in the future as more information becomes known, which could impact the amounts reported and disclosed herein. {7}------------------------------------------------ #### NOTE 2. SIGNIFICANT ACCOUNTING POLICIES (continued) NOTE 2. SIGNIFICANT ACCOUNTING POLICIES (continued) ### Income Taxes Income Taxes The Company is a single member limited liability company, and treated as a disregarded entity for income tax reporting purposes. The Internal Revenue Code provides that any income or loss is passed through to the member for income tax purposes. The Company is a single member limited liability company, and treated as a disregarded entity for income tax reporting purposes. The Internal Revenue Code provides that any income or loss is passed through to the member for income tax purposes. The Company complies with Financial Accounting Standards Board, Accounting Standards Codification 740, Income Taxes ("ASC 740"), which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on the enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce the deferred income tax assets to the amount expected to be realized. The Company complies with Financial Accounting Standards Board, Accounting Standards Codification 740, Income Taxes ("ASC 740"), which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and tax basis of assets andliabilities that will result in taxable or deductible amounts in the future based on the enacted tax laws andrates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce the deferred income tax assets to the amount expected to be realized. ASC 740 provides guidance forhow uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. ASC 740 also requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Company's tax returns to determine whether the tax positions are "more—likely-than—not" of being sustained by the applicable tax authority. Tax positions deemed to meet the more-likely—than—not threshold would be recorded as a tax benefit or expense in the current year. ASC 740 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. ASC 740 also requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Company's tax returns to determine whether the tax positions are"more-likely-than-not" of being sustained by theapplicable tax authority. Tax positions deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. The tax years that remain subject to examination by taxing authorities are 2021, 2020, 2019, and 2018. The tax years that remain subject to examination by taxing authorities are 2021, 2020, 2019, and 2018. ### Revenue Recognition Revenue Recognition In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014—09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"), as subsequently amended that outlines a single comprehensive model for entities to use in In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"), as subsequently amended that outlines a single comprehensive model for entities to use in {8}------------------------------------------------ #### NOTE 2. SIGNIFICANT ACCOUNTING POLICIES (continued) NOTE 2. SIGNIFICANT ACCOUNTING POLICIES (continued) accounting for revenue arising from contracts with customers and supersedes most recent current revenue recognition guidance, including industry—specific guidance. The core principle of the revenue model is that an entity 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 and services. The revenue recognition standard explains that to achieve the core principle of Topic 606, an organization should follow the fivestep model, which is: 1.) identify the contract with the customer; 2.) identify performance obligations; 3.) determine the transaction price; 4.) allocate the transaction price to the performance obligation; and 5.) recognize revenue when (or as) the performance obligations are satisfied. The guidance also specifies the accounting for certain incremental costs of obtaining a contract, and costs to fulfill a contract with a customer. The Company has elected the modified method (i.e., cumulative method) which did not result in a cumulative—effect adjustment at the date of adoption. accounting for revenue arising from contracts with customers and supersedes most recent current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that an entity 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 and services. The revenue recognition standard explains that to achieve the core principle of Topic 606, an organization should follow the fivestep model, which is: 1.) identify the contract with the customer; 2.) identify performance obligations; 3.) determine the transaction price; 4.) allocate the transaction price to the performance obligation; and 5.) recognize revenue when (or as) the performance obligations are satisfied. The guidance also specifies the accounting for certain incremental costs of obtaining a contract, and costs to fulfill a contract with a customer. The Company has elected the modified method (i.e., cumulative method) which did not result in a cumulative-effect adjustment at the date of adoption. ### Significantjudgment Significantjudgment The recognition and measurement ofrevenue 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 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 recognition and measurement ofrevenue 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 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 provides advisory services on mergers and acquisitions, capital raising and other strategic transactions and acts as a placement agent in connection with the private placement of securities to be issued to any person or entity ("Investors"). Revenue from contracts with customers includes fees from providing advisory services and placement fees. The Company provides advisory services on mergers and acquisitions, capital raising and other strategic transactions and acts as a placement agent in connection with the private placement of securities to be issued to any person or entity ("Investors"). Revenue from contracts with customers includes feesfrom providing advisory services and placement fees. ### Advisoryfees Advisoryfees Advisory services provided by the Company include, but are not limited to: advice with respect to current market conditions and strategy with regards to positioning the client and the Investment Vehicles, assistance in preparing offering materials for the Investment Vehicles including presentation materials and due diligence materials, advice with regard to the structure ofthe Investment Vehicles, identify prospective investors, assist with the negotiations offinal terms Advisory services provided by the Company include, but are not limited to: advice with respect to current market conditions andstrategy with regards to positioning the client and the Investment Vehicles, assistance in preparing offering materials for the Investment Vehicles including presentation materials and due diligence materials, advice with regard to the structure ofthe Investment Vehicles, identify prospective investors, assist with the negotiations offinal terms {9}------------------------------------------------ #### NOTE 2. SIGNIFICANT ACCOUNTING POLICIES (continued) NOTE 2. SIGNIFICANT ACCOUNTING POLICIES (continued) and review legal documentation, strategic planning sessions, and, supplement the client's marketing effort. and review legal documentation, strategic planning sessions, and, supplement the client's marketing effort. Revenue from advisory arrangements is recognized over time in which performance obligations are simultaneously provided by the Company and consumed by the customer. Revenue from advisoryarrangements is recognized over time in which performance obligations are simultaneously provided by theCompany and consumed by the customer. ### Placementfees Placementfees The Company earns revenue by way of transaction placement fees that are recognized at the point in time thatperformance under the arrangement is completed. The Company has determined that this date is the appropriate point in time to recognize revenue forplacement fees, as the performance obligation has been satisfied, there are no significant actions which the Company needs to take subsequent to this date and the customer obtains the control and benefit of the proceeds at that point. The Company earns revenue by way of transaction placement fees that are recognized at the point in timethat performance under the arrangement is completed. The Company has determined that this date is the appropriate point in time to recognize revenue for placement fees, as the performance obligation has been satisfied, there are no significant actions which the Company needs to take subsequent to this date and the customer obtains the control and benefit of the proceeds at that point. ### Statement of Cash Flows Statement of Cash Flows For purposes of the Statement of Cash Flows, the Company has defined cash equivalents as highly liquid investments, with original maturities of less than three months that are not held for sale in the ordinary course of business. For purposes of the Statement of Cash Flows,the Company has defined cash equivalents as highly liquid investments, with original maturities of less than three months that are not held for sale in the ordinary course of business. ### Leases Leases In February 2016, the FASB issued ASU 2016-02 "Leases Topic 842" requiring recognition of a lease asset and lease liability by leases on the balance sheet for leases classified as operating leases (with the exception of leases with the duration of less than twelve months). The Company's share of the lease is paid under the expense sharing agreement with the Parent. FASB In February 2016, the FASB issued ASU 2016-02 "Leases Topic 842" requiring recognition of alease asset and lease liability by leases on the balance sheet for leases classified as operating leases (with the exception of leases with the duration of less than twelve months). The Company's share of the lease is paid under the expense sharing agreement with the Parent. FASB ASU 2016-02 has no material effect on these financial statements. ASU 2016-02 has no material effect on these financial statements. {10}------------------------------------------------ #### NOTE 3. FAIR VALUE MEASUREMENT NOTE 3. FAIR VALUE MEASUREMENT FASB ASC 820 defines fair value, establishes a framework for measuring fair value, and establishes a fair value hierarchy which prioritizes the inputs to valuation techniques. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal and the most advantageous market. FASB ASC 820 defines fair value, establishes a framework for measuring fair value, and establishes a fair value hierarchy which prioritizes the inputs to valuation techniques. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal and the most advantageous market. The fairvalue hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value intothree broad levels: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities the Company has the ability to access. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities the Company has the ability to access. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 are unobservable inputs for the asset or liability and rely on management's own assumptions about what market participants would use in pricing the asset or liability. Level 3 are unobservable inputs for the asset or liability and rely on management's own assumptions about what market participants would use in pricing the asset or liability. FASB ASC 820, Fair Value Measurement has no material effect on these financial statements. FASB ASC 820, Fair Value Measurement has no material effect on these financial statements. #### NOTE 4. NET CAPITAL REQUIREMENTS NOTE 4. NET CAPITAL REQUIREMENTS The Company is subject to SEC Uniform Net Capital Rule (SEC Rule 15c3- 1) which requires the maintenance ofminimum net capital and requires that the ratio ofaggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. At September 30, 2022, the Company had net capital of \$173,852 which was \$168,852 in excess of its minimum required net capital of \$5,000. The Company's aggregate indebtedness to net capital ratio was 0.3426 to 1. The Company is subject to SEC Uniform Net Capital Rule (SEC Rule 1503-1) which requires the maintenance ofminimum net capital and requires that the ratio ofaggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. At September 30,2022, the Company hadnet capital of \$173,852 which was \$168,852 in excess of its minimum required net capital of \$5,000. The Company's aggregate indebtedness to netcapital ratio was 0.3426 to 1. {11}------------------------------------------------ #### NOTE 5. CONCENTRATIONS NOTE 5. CONCENTRATIONS The Company periodically maintains significant cash balances in a single major financial institution. Such cash balances are subject to credit risk to the extent those balances exceed applicable FDIC or SIPC limitations. Management does notanticipate any material losses as a result ofthis concentration. The Company periodically maintains significant cash balances in a single major financial institution. Such cashbalances are subject to credit risk to the extent those balances exceed applicable FDIC or SIPC limitations. Management does not anticipate any material losses as a result ofthis concentration. For the period ended September 30, 2022, 91% of revenues earned were from three customers. Advisory fees receivable from these customers were \$927,750 at September 30, 2022. For the period ended September 30, 2022, 91% of revenues earned were from three customers. Advisory fees receivable from these customers were \$927,750 at September 30, 2022. #### NOTE 6. RELATED PARTY TRANSACTIONS NOTE 6. RELATED PARTY TRANSACTIONS The Company has an agreement with the Parent in which certain overhead expenses incurred by the Parent are allocated to the Company for its appropriate share. Included in the statement of operations is \$17,820 for rent expense allocated to the Company related to this agreement. The Company has an agreement with the Parent in which certain overhead expenses incurred by the Parent are allocated to the Company for its appropriate share. Included in the statement of operations is \$17,820 for rent expense allocated to the Company related to this agreement. #### NOTE 7. SUBSEQUENT EVENTS NOTE 7. SUBSEQUENT EVENTS Subsequent events have been evaluated through the date these financial statements were issued and no events have been identified which require disclosure. Subsequent events have been evaluated through the date these financial statements were issued and no events have been identified which require disclosure. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.