# PERTH ADVISORS LLC X-17A-5 (2023-11-17) — Broker-dealer annual report - Company: PERTH ADVISORS LLC - Form: X-17A-5 - Filed: 2023-11-17 - Period: 2023-09-30 - Accession: 0001475022-23-000002 - CIK: 1475022 - File #: 8-68423 - Type: Broker-dealer - Material weakness: No - Auditor: Spicer Jeffries LLP - Auditor location: Denver, CO - Contact: Edward Cohen - Phone: 2035576070 - Email: mpc@perthadvisors.com - Website: perthadvisors.com - Signed by: Michael Patrick Campbell (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1475022/000147502223000002/perth.pdf --- {0}------------------------------------------------ # PERTH ADVISORS LLC # STATEMENT OF FINANCIAL CONDITION SEPTEMBER 30, 2023 PUBLIC {1}------------------------------------------------ ### PERTH ADVISORS LLC FINANCIAL STATEMENTS SEPTEMBER 30, 2023 # CONTENTS | | PAGTH | |---------------------------------------------------------|-------| | Facing Page - Oath or Affirmation | 1-2 | | Report of Independent Registered Public Accounting Firm | 3 | | Statement of Financial Condition | 4 | | Notes to Financial Statements | 5-10 | {2}------------------------------------------------ | _______OMB
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NUMBER | | | | 8-68423 | # FORM X-17A-5 #### PART III | UNITED STATES | _______OMB
APPROVAL
OMB Number: 3235-0123 | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------| | SECURITIES AND EXCHANGE COMMISSION
D.C. 20549
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12 | | ANNUAL REPORTS | SECFILE
NUMBER | | FORM
X-17A-5
PART III | 8-68423 | | FACING PAGE
Required Pursuant to Rules 17a-5, 17a-12,
Information | and 18a-7 under the Securities Exchange Act of 1934 | | 10/01
/2022
FILING FOR THE PERIOD BEGINNING
AND EN
D
N
G
MM/DD/YY | 09/30/2023
MM/DD/YY | | A. REGISTRANT IDENTIFICATION | | | NAME OF FIRM: Perth Advisors LLC | | | TYPE OF REGISTRANT (check
all applicable boxes):
S Broker-dealer
Security-based swap dealer
Checkhere if respondent is
also
an OTCderivatives dealer | Major security-based swap participant | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | 16 Madison Square Park West, 12th Floor _____________ | | # NAME OF FIRM: Perth Advisors LLC | 16 Madison Square Park West, 12th Floor _____________ | | | | | |---------------------------------------------------------------------------------------|-----------|----------------------------------------------------------------------|-----------------------|-------------------------------------------| | | | (No. and Street) | | | | New York | | ________________NY _____________10010 | | | | (City) | | (State) | | (Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | Michael Patrick Campbell | | (917) 703-3716 | mpc@perthadvisors.com | | | (Name) | | (Area Code- Telephone Number) | (Email
Address) | | | | | B, ACCOUNTANT
IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNTANT
Spicer Jeffries LLP ________________________________ | | whose reports are contained in this | filing* | | | 4601 DTC Parkway, | Suite 700 | (Name - if individual, state last, first, and middle name)
Denver | CO | 80234 | | (Address) | | (City) | (State) | (Zip Code) | | 1 0/20/2003 | | ______________________ | 349 | _____________ | | (Date of Registration with PCAOB)(ifapplicable) | | FOR OFFICIAL USE ONLY | | (PCAOBRegistration Number, if applicable) | \* Claims for exemption from the requirement that the annual reports be covered by the reports of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basisof the exemption. See17 CFR 240.17a-5(e)(l)(ii), if applicable. Personswho are to respondto the collectionof information containedin thisform are notrequiredto respondunlessthe form displaysa currently validOMB controlnumber. {3}------------------------------------------------ #### OATH OR AFFIRMATION | | OATH OR AFFIRMATION | | |--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------| | | I, MichaelPatrickCampbell
, swear (or affirm) that, to the best of my knowledge | and belief,
the | | | financial report pertaining
to the firm
of PerthAdvisorsLLC | , as o
f | | | t 2 023
, is true and
I further swear (or
affirm) that neither
the company
9/30
correct.
or
person, as
the case may be, has
any
i
n
anyaccount
partner,
officer,
director,
equivalent
proprietary
interest | nor any
classified solely | | | as that of a customer. | | | | Signature: | | | | Title: | | | | | | | | YORK
itz\M
NOTARYPUBLIC S
--
Notary Public
44456 | | | | Rpciistrabon No.
- ------- | | | | ,2026
This filing**
in
contains (check all applicable | | | O
D | (a) Statement
of
financial condition.
Co
(b) Notes
to consolidated statement
of financial condition. | | | D | (c) Statement of income
(loss) or, if there is other comprehensive income in the period(s) presented, a statement
of | | | | income (as defined in § 210.1-02 of Regulation S-X).
comprehensive | | | | (d) Statement of cash flows. | | | | (e) Statement
of changes in stockholders' or partners' or
sole proprietor's
equity. | | | | (f) Statement of changes in liabilities
subordinated to claims of creditors.
(g) Notes to consolidated financial statements. | | | | (h) Computation
or
17 CFR
as applicable.
of net capital under 17 CFR
240.15c3-l
240.18a-l, | | | | (i) Computation
of tangible net worth under 17 CFR
240.18a-2. | | | | of customer reserve requirements
pursuant to Exhibit
A
to 17 CFR
240.15c3-3.
(j) Computation
for determination | | | | (k) Computation
for determination
of security-based swap reserve requirements pursuant to Exhibit B
to 17 CFR
Exhibit A
to 17 CFR 240.18a-4, as applicable. | 240.15c3-3 or | | | (l) Computation
for Determination of PABRequirements under
Exhibit A
to § 240.15c3-3. | | | | (m) Information relating
to possession or control requirements
for customers under 17 CFR
240.15c3-3. | | | | (n) Information relating
to possession or
control requirements
for security-based swap customers under 17 CFR | | | | 240.15c3-3(p)(2) or
240.18a-4, as applicable.
17 CFR | | | | (o) Reconciliations,
including appropriate explanations, of the FOCUSReport with computation
of net capital or tangible net
worth under 17 CFR 240.15c3-l,
17 CFR 240.18a-l,
or
240.18a-2, as
applicable, and
the
reserve requirements
17 CFR | under 17 | | | 240.15c3-3 or
17 CFR 240.18a-4, as applicable, if material differences exist, or a statement
that no material differences
CFR
exist. | | | | (p) Summary of
financial data for subsidiaries not consolidated
in the
of
statement
financial condition. | | | m | (q) Oath or
in accordance
240.17a-12, or
240.18a-7, as
applicable.
240.17a-5, 17 CFR
affirmation
with 17 CFR
17 CFR | | | | (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
240.18a-7, as | | | n | 17 CFR
applicable.
(t) Independent
public accountant's report based on
an examination of
the
statement
of financial condition. | | | | (u) Independent
report based on
an examination of the
financial report
or
financial statements under 17
public accountant's | | | | 240.17a-5, 17 CFR
240.18a-7, or
240.17a-12, as applicable.
CFR
17 CFR | | | | (v) Independent
public accountant's report based on an examination of certain statements in the
compliance report under 17 | | | | 240.18a-7, as applicable.
CFR
240.17a-5 or 17 CFR
(w) Independent
public accountant's report based on a review of the exemption
240.17a-5 or
report under 17 CFR | 17 | | | 240.18a-7, as
CFR
applicable.
(x) Supplemental
reports on applying agreed-upon procedures, in accordance with 17 CFR
240.15c3-le
or 17 CFR
as
applicable. | 240.17a-12, | | | (y) Report describing any material inadequacies
found
to exist or
found to have existed since the date of the previous audit, or | | | | a statement
that no
material inadequacies exist, under 17 CFR
240.17a-12(k). | | | | (z) Other: | | To request confidential treatment of certain portions of this filing, see 17 CFR240.17a-5(e)(3) or 17 CFR240.18a-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.spicerjeffries.com ## REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Member of Perth Advisors LLC ### Opinion on the Financial Statements We have audited the accompanying statement of financial condition of Perth Advisors LLC (the as of September 30, 2023, 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, 2023 in conformity with accounting principles generally accepted in the United States of America. ### Basis for Opinion This financial statement is to express an opinion on the based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial 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 statement. We believe that our audit provides a reasonable basis for our opinion. We have served as Perth Advisors LLC 2019. Denver, Colorado November 13, 2023 ![](_page_4_Picture_11.jpeg) {5}------------------------------------------------ #### PERTH ADVISORS LLC STATEMENT OF FINANCIAL CONDITION FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2023 ### ASSETS | Cash | 249,730
S | |--------------------------|--------------| | Advisory fees receivable | 674,114 | | Other assets | 14.784 | | TOTAL ASSETS | \$ 938.628 | ### LIABILITIES AND MEMBER'S EQUITY Liabilities: | Deferred income | S | 50,000 | |----------------------------------------|---|-----------| | Taxes payable | | 2,500 | | Accrued expenses and other liabilities | | 29,451 | | TOTAL LIABILITIES | | 81.951 | | Member's equity: | | 856.677 | | TOTAL LIABILITIES AND MEMBER'S EQUITY | | \$938.628 | The accompanying notes are an integral part of this financial statement. {6}------------------------------------------------ ### PERTH ADVISORS LLC NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2023 #### NOTE 1. 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 of Perth Partners Holdings LLC organized in Delaware (the "Parent"). #### SIGNIFICANT ACCOUNTING POLICIES NOTE 2. #### Basis of Presentation 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 of America ("GAAP"). #### Cash The Company holds cash in financial institutions in excess of the Federal Deposit Insurance Corporation insured limits. The Company periodically reviews the financial condition of the financial institutions and assesses the credit risk of such investments. #### Advisory Fees Receivable The Company carries its advisory fees receivable at billed amounts less an allowance for doubtful accounts. If necessary, 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 for doubtful accounts was required at September 30, 2023. The Company has negotiated with certain clients the payment of advisory fees over a period greater than one year. #### Use of Estimates 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) #### 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 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. 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 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. The tax years that remain subject to examination by taxing authorities are 2022, 2021, 2020, and 2019. #### 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 {8}------------------------------------------------ #### 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. #### Significant judgment The recognition and measurement of revenue is based on the assessment of individual contract terms. Significant judgment is required to determine whether performance obligations are satisfied at a point in time or over time; how to allocate transaction prices where multiple performance obligations are identified; when to recognize revenue based on the 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. #### Advisorv fees 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 of the Investment Vehicles, identify prospective investors, assist with the negotiations of final terms {9}------------------------------------------------ #### NOTE 2. SIGNIFICANT ACCOUNTING POLICIES (continued) 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. #### Placement fees The Company earns revenue by way of transaction placement fees that are recognized at the point in time that 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 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 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 ASU 2016-02 has no material effect on these financial statements. {10}------------------------------------------------ #### 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. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three 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 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. FASB ASC 820, Fair Value Measurement has no material effect on these financial statements. #### NOTE 4. NET CAPITAL REQUIREMENTS The Company is subject to SEC Uniform Net Capital Rule (SEC Rule 15c3-1) which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. At September 30, 2023, the Company had net capital of \$167,779 which was \$162,316 in excess of its minimum required net capital of \$5,463. The Company's aggregate indebtedness to net capital ratio was 0.4884 to 1. {11}------------------------------------------------ #### 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 not anticipate any material losses as a result of this concentration. For the period ended September 30, 2023, 91% of revenues earned were from three customers. Advisory fees receivable from these customers were \$152,747 at September 30, 2023. #### 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. #### NOTE 7. SUBSEQUENT EVENTS Subsequent events have been evaluated through the date these financial statements were issued. Subsequent to September 30, 2023 through the date these financial statements were issued, there were \$50,000 of withdrawals by the sole Member. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.