# APTO PARTNERS, LLC X-17A-5 (2021-03-26) — Broker-dealer annual report - Company: APTO PARTNERS, LLC - Form: X-17A-5 - Filed: 2021-03-26 - Period: 2020-12-31 - Accession: 0001506347-21-000001 - CIK: 1506347 - File #: 8-68746 - Material weakness: No - Auditor: JVA Accountants and Advisors, LLC - Auditor location: Denville, NJ - Contact: Juan Espinosa - Phone: 9735436600 - Website: jvafirm.com - Signed by: Juan D. Espinosa (President & CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1506347/000150634721000001/Apto_Partners_Public.PDF --- {0}------------------------------------------------ "PUBLIC" UNITEDSTATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ## ANNUAL AUDITED REPORT FORM X-17A-5 PART III OMB APPROVAL OMB Number: 3235-0123 Expires: Estimated average burden hours per response.. . . . . . . . 12.00 # SEC FILE NUMBER 8-68746 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 | 01/01/2020
MM/DD/Y Y | AND ENDING | 12/31/2020
MM/DD/YY | | |---------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------|------------|------------------------------------|--| | | A. REGISTRANT IDENTIFICATION | | | | | NAME OF BROKER-DEALER: | APTO PARTNERS, LLC | | OFFICIAL USE ONLY
FIRM I.D. NO. | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | | | | | 5 Cold Hill Road South, Suite 11 | | | | | | (No, and Street) | | | | | Mendham | NJ | | 07945 | | | (City) | (State) | | (Zip Code) | | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
JUAN D. ESPINOSA | | | 973-543-6600 | | | | | | (Area Code - Telephone Number) | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* | JVA Accountants & Advisors
(Name - if individual, state last, first, middle name) | | | | | 15 Broadway | Denville | NJ | 07834 | | | (Address) | (City) | (State) | (Zip Code) | | | CHECK ONE:
Certified Public Accountant
Public Accountant
Accountant not resident in United States or any of its possessions. | | | | | | | FOR OFFICIAL USE ONLY | | | | | to come to are minen that the amount tenary to connect to convert on the opinion of on incomediant making agaming t | | | | | nt that the annual report be covered by the opinion of an independent public must be supported by a statement of facts and circumstances relied on as the basis for the exemption. See Section 240.17a-5(c)(2) SEC 1410 (11-05) 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 OMB control number. {1}------------------------------------------------ ### OATH OR AFFIRMATION | | JUAN D. ESPINOSA | | , swear (or affirm) that, to the best of | |----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | APTO PARTNERS, LLC | | my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of
as | | of | DECEMBER 31 | | . 20 20 20 are true and correct. I further swear (or affirm) that | | | classified solely as that of a customer, except as follows: | | neither the company nor any partner, principal officer or director has any proprietary interest in any account | | | USHA KALLIANPURKAR
Notary Public - State of New Jersey
My Commission Expires Feb 6, 2024 | | Signature | | | | | PRESIDENT & CEO | | | | | Title | | | Notary Publi
This report ** contains (check all applicable boxes):
(a) Facing Page.
(b) Statement of Financial Condition.
of Comprehensive Income (as defined in §210.1-02 of Regulation S-X).
(d) Statement of Changes in Financial Condition.
(e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital.
(1) 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.
(i) Information Relating to the Possession or Control Requirements Under Rule 15c3-3.
Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3.
consolidation.
(I) An Oath or Affirmation.
(m) A copy of the SIPC Supplemental Report. | | (c) Statement of Income (Loss) or, if there is other comprehensive income in the period(s) presented, a Statement
(j) A Reconciliation, including appropriate explanation of Net Capital Under Rule 15c3-1 and the
(k) A Reconciliation between the audited Statements of Financial Condition with respect to methods of | | | | | (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). | | | | | | {2}------------------------------------------------ # APTO PARTNERS, LLC ## STATEMENT OF FINANCIAL CONDITION DECEMBER 31 .2020 FILED PURSUANT To RULE 17a-5(e)(3) OF THE SECURITIES AND EXCHANGE ACT OF 1934 AS A PUBLIC DOCUMENT {3}------------------------------------------------ ## APTO PARTNERS. LLC December 31. 2020 ## Table of Gontents | Report of Independent Registered Public Accounting Firm | ,1 | |---------------------------------------------------------|-------| | Financial Statement: | | | Statement of Financial Condition | 2 | | Notes to Financial Statements | ,,3-6 | {4}------------------------------------------------ Joseph Velocci, CPA, CGMA Anthony Velocci, CPA Nancy Colucco, CPA ![](_page_4_Picture_1.jpeg) Licensed in: New Jersey Florida "Building Your Future" # REPORT OF INDEPENDENT REGISTERED PTJBLIC ACCOUNTING FIRM To the Member of Apto Portners, LLC Mendham, New Jersey ### Opinion on the Finoncial Statements We have audited the accompanying stotement of financial condition of Apto portners, LLC (a New Jersey Limited Liobility Company) os of December 37, 2020 and the related notes. ln our opinion, the statement of finonciol condition and reloted notes referred to above present foirly, in all material respects, the financial position of Apto Portners, LLC os of December 31, 2020, in occordance with occounting principles generally accepted in the tJnited Stotes of Americo. ### Basis for Opinion The statement of financial condition and related notes are the responsibitity of Apto pdrtners, LLC,s monqgement. Our responsibility is to express an opinion on Apto Partners, LLC's stotement of finonciot condition and reloted notes based on our oudit. We are o public accounting firm registered with the pubtic Compony Accounting Oversight Boord (lJnited States) (PCAOB) ond are required to be independent with respect to Apto PQrtners, LLC in accordance with IJ.S. federal securities laws and the oppticable rules and regulations of the securities ond Exchange commission ond the pcAoB. We conducte.d oui audit in occordance with the stondards of the PCAOB. Those stqndards require thot we plan and perform the audit to obtqin reasonoble qssurdnce about whether the statement of finonciat condition ond reloted notes ore free of material misstatement, whether due to error or fraud. Our oudit included performing procedures fo ossess the risks of material misstotement of the statement of financiol condition ond related notes, whether due to error or froud, and performing procedures that respond to those risks. Such procedures include examining, on d test basis, evidence regarding the omounts and disclosures in the stotement of financial condition ond related notes. Our audit olso included evaluating the accounting principles used and significont estimdtes made by mdnagement, as well qs evaluating the overall presentation of the stotement of financiol conditign ond related notes. We believe thqt our audit provides a reasonoble bqsis for our opinion. We have served as Apto Pertners, LLC's auditor since 2019. # JVAAM1TAdNL\*ory Denville, New Jersey Februory 25, 2027 > PHONE: (973) 620-9607 I 15 BROADWAY. DENVILLE, NJ 07834 | WWW.JVAFIRM.COM PHONE: (973) 810-4210 | 54 MAIN STREET, SUITE 101 . SUCCASUNNA, NJ 07876 {5}------------------------------------------------ # APTO PARTNERS, LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31 ,2020 ### ASSETq | Cash
Receivables from broker-dealers
Secuiities owned, at fair value
Fixed assets, net | \$
35,573
819,613
5,375,306
220,063 | |-------------------------------------------------------------------------------------------------|-------------------------------------------------| | TOTAL ASSETS | \$
6,450,555 | | LIABILITIES | | | Accounts payable and accrued expenses
Notes payable | 45,197
158,392 | | TOTAL LIABILITIES | 203,589 | | MEMBER'S EQUITY | | | TOTAL MEMBER'S EQUITY | 6,246,966 | | TOTAL LIABILITIES AND MEMBER'S EQUITY | \$
6,450,555 | {6}------------------------------------------------ ## APTO PARTNERS, LLC NOTES TO FINANCIAL STATEMENTS DECEMBER 31 ,2020 #### 1. ORGANIZATION AND NATURE OF BUSINESS Apto Partners, LLC (the "Company") is a securities broker-dealer registered with the Securities and Exchange Commission ("SEC") and is a member of Financial Industry Regulatory Authority ("FlNRA"). The Company conducts business as an introducing broker-dealer and clears all transactions through a clearing organization on a fully disclosed basis The Company is a State of New Jersey Limited Liability Company. ### 2. SIGNIFICANT ACCOUNTING POLICIES #### Basis of Presentation The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). #### Adoption of New Accounting Standards On January 1 ,2018, the Company adopted ASU 2014-19 Revenue from Contracts with Customers and all subsequent amendments to the ASU (collectively, "ASC 606"). The Company's services that fall within the scope of ASC 606 incluoe investment banking income which includes securities transactions and underwriting fees. The implementation ofthis new accounting standard did not change the revenue recognition policy of the Company. See Revenue from Contracts with Customers for further discussion on the Company's accounting policies for revenue sources within the scope of ASC 606. #### Use of Estimates The preparation of financial statements in conformity with GAAP requires managemento make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporling period. Actual results could differ from those estimates. #### Revenue from Contracts with Gustomers Securities transactions and related revenues and expenses are recorded on a trade date basis. Underwriting fees are recorded at the time the underwriting is completed and the income is reasonably determinable. #### Fixed Assets, Net Fixed assets are recorded at historical cost, net of accumulated depreciation. Depreciation is calculated on a straightline basis over their economic useful lives, generally from three to thirly-nine years. #### Income Taxes The Company is treated as a sole proprietorship for federal income tax purposes and does not incur income taxes. Instead its earnings and losses are passed through to its member and taxed depending on the personal tax situation. Accordingly, the financial statements do not reflect a provision from income taxes. Distributions were primarily used to meet member's income tax obligations At December 31 , 2020, there were no significant income tax uncertainties that would require financial statement recognition. In addition, no interest or penalties were recorded. #### Fair Value Measurements The Company records the fair value of cerlain financial assets and liabilities on a recurring basis. The accounting standard for fair value provides a hierarchy to measure the quality and reliability of the information used to determine fair values Fair value is defined as 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. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the followino three cateoorres: {7}------------------------------------------------ Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in the markets that are not active; or other inputs that are observable or can be corroborated bv observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. At December 31 ,2020, all securities owned, which consists of corporate obligations and mutual funds, were valueo using Level 1 inputs. #### Receivables/Payables to Broker-Dealers Payables to broker-dealers represents netted trading profit/loss, interest income/expense, clearing charges, margin securities, and deposits with the clearing organization. The Company is required to maintain cedain deposit amounts with the clearing organization depending on its clearing activities and as pursuant to the clearing agreement. At December 3 j, 2020, the Company's required deposit was \$100,000. #### Cash and Cash Equivalents The Company considers cash and cash equivalents amounts in demand deposit accounts at various financial institutions, investments in money market funds, and highly liquid investments, with original maturities of less than ninety (90) days, which are not held for sale in the ordinary course of business. #### Subsequent Events The Company has evaluated events and transactions that occurred between January 1,2021 and February 25,2021 , which is the date the financial statements were to be issued, for possible disclosure and recognition in the financial statements. #### 3. CONCENTRATIONS OF CREDIT RISK The Company at times during operations has cash deposits that exceed \$250,000 in one account in individual banks. The Federal Deposit Insurance Corporation ("FD|C") insures only the first 9250,000 in member banks. At December 31, 2020, the Company had no uninsured cash balance #### 4. FIXED ASSETS, NET Fixed assets, net consisted of the followinq: | Land | | |-------------------------------|--| | Buildings | | | Equipment | | | | | | Less accumulated depreciation | | | Fixed assets, net | | #### 5. NOTES PAYABLE The Company has a commercial moftgage agreement with a lender of \$167,120 collateralized by a lien on the property owned by the Company The scheduled maturity date on the borrowing is November 1 , 2030 and bears interest al 4o/o per annum, adjusted every five years at an adjustable rate of 1.875o/o above the Federal Home Loan Bank of NewYork Fixed-Advance Rate for Five (5) Years. At December 31 ,2020, the principal balance on the loan was \$70,253. The Company has a bank loan agreement with a lender of \$101 ,650 collateralized by a lien on the equipment owned by theCompany. ThescheduledmaturitydateontheborrowingisApril 23,2023andbearsinterestal 149o/operannum. At December 31 ,2020, the principal balance on the loan was 940,639. {8}------------------------------------------------ The Company has a bank loan agreement with a lender of \$47,500 subjecto various Small Business Administration ("SBA")requirements. ThescheduledmaturitydateontheborrowingisApril 7,2022andbearsinterestat0.98%per annum. Paymentsofprincipal andinterestbeginonemonthafterthedeferral periodwhichendedOctoberT,2020.The Company used the proceeds of the loan for the limited purposes that qualify for forgiveness under the SBA requirements. At December 31 ,2020, the Company has not received loan forgiveness and the principal balance on the loan was 947,500. The Company may, at any time and without obligation, make additional principal payments on the Notes | Year Endinq December 31, 2020 | | |-------------------------------|----------------------------------------------------------------------------------------------------| | | | | | | | | | | vv,Avv
v | | | 11,223 | | | | | | 5,697 | | | 44,889
\$ | | | | 158,392
\$
notes payable year ending December 31,
34 840
\$
\$
s,+sz
\$
\$ | #### 6. NET CAPITAL REQUIREMENTS The Company is subjecto the Securities and Exchange Commission Uniform Net Capital Rule (SEC Rule 15c3-'l ), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. At December 31 ,2Q20, the Company had net capital of \$5,504,978 which was \$5,404,978 in excess of its required net capital of \$100,000. The Company's ratio of aggregate indebtedness to net capital was 0 02 to 1. #### 7. RULE 15c3-3 EXEMPTION The Company is exempt from the provisions of Part 240 Rule 15c3-3 of the Securities Exchange Act of 1934 under paragraph (kX2Xii) in that the Company as an introducing broker or dealer clears all transactions with and for customers on a fully disclosed basis with a clearing agent, and promptly transmits all customer funds and securities to the clearing agent who carries all of the accounts of such customers and maintains and preserves such books and records pertaining thereto pursuant to the requirements as are customarily made and kept by clearing agent. #### 8. COMMITMENTS AND CONTINGENCIES #### Litiqation Th^ r\^\*^^^ ,,,Evu,,,pd,,y,ooy?ftofdoingbusiness,mayfromtimetotimebeinvolvedinlegal matters. Intheopinionof management and after consultation with legal counsel, there are no matters, alone or in the aggregate, that are considered to be material to the financial statements. #### Investment Bankinq In the normal course of business, the Company enters into underwriting commitments. Transactions relating to such underwriting commitments that were open at December 31 , 2020, and were subsequently settled had no material effect on the financial statements as of that date {9}------------------------------------------------ #### 9. OFF-BALANCE SHEET RISK : As a securities broker-dealer, the Company is engaged in various trading and brokerage activities, on an agency and principal basis, in which counterparties primarily include broker-dealers, banks and other financial institutions. The Company's exposure to off-balance sheet credit risk occurs if a customer, clearing agent or counterparty does not fulfill their obligations arising from a transaction. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.