# APTO PARTNERS, LLC X-17A-5 (2022-03-30) — Broker-dealer annual report - Company: APTO PARTNERS, LLC - Form: X-17A-5 - Filed: 2022-03-30 - Period: 2021-12-31 - Accession: 0001506347-22-000001 - CIK: 1506347 - File #: 8-68746 - Type: Broker-dealer - Material weakness: No - Auditor: JVA Accountants & 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/1506347/000150634722000001/Apto_Partners_Public.PDF --- {0}------------------------------------------------ # ''PUBLIG'' UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C.20549 | oMB Number:3235-0123 | | |--------------------------|--| | Expires: Oct 3I,2023 | | | Estimated average burden | | | hours per response: 12 | | # ANNUAL REPORTS FORM X.17A-5 PART III | SEC FILE NUMBER | | |-----------------|--| | 8-68746 | | FACING PAGE Information Required Pursuant to Rules L7a-5, t7a-L2, and 18a'7 under the Securities Exchange Act of 1934 | | 01101121 | AND ENDTNG | 12131121 | | |---------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|------------|------------------------------------------|--| | FILING FOR THE PERIOD BEGINNING | MM/DD/YY | | MM/DD/YY | | | | A. REGISTRANT IDENTI FICATION | | | | | NAME OF FIRM: | APTO PARTNERS, LLC | | | | | TYPE OF REGISTRANT (check allapplicable boxes):
E Broker-dealer
Check here if respondent is also an OTC derivatives dealer
! | [l Security-based swap dealer | | [l Major security-based swap participant | | | | ADDRESS OF PRINCIPAL PACE OF BUSINESS: (Do not use a P,O. box no.) | | | | | | 5 Cold Hill Road South, Suite 11 | | | | | | (No. and Street) | | | | | Mendham | NJ | | 07945 | | | (city) | (state) | | (Zip Code) | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | Juan Espinosa | 973-543-6600 | | info@aptopartners, com | | | (Name) | (Area Code -Telephone Number) | | (Email Address) | | | | | | | | | | B. ACCOUNTANT I DENTI FICATION | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
JVA Accountants & Advisors | | | | | | (Name - if individual, state last, first, and middle name) | | | | | 15 Broadway | Denville | NJ | | | | (Address) | (city) | (State) | 07834
(zip Code)
52BB | | | 10119110
tion with PCAOB
(Date of | FOR OFFICIAL USE ONLY | (PCAOB | stration Number | | accountantmustbesupportedbyastatementoffactsandcircumstancesreliedonasthebasisoftheexemption' See17 CFR 240. 17a-5(eXlXii),f applicable. persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays acurrently valid OMB control number. {1}------------------------------------------------ ## OATH OR AFFIRMATION | | JUAN D ESPINOSA | swear (or affirm) that, to the best of
my knowledge and belief, the | |----|-----------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | financial report pertaining to the firm of | as of
APTO PARTNERS, LLC | | | 2 021
DECEMBER 31 | , is true and correct. Ifurther 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.
''l | | | | | | | | | | | | | | | | | PRESIDENT & CEO
JOSEF AJAKOSALEM | | | | Notary Public - State of New Jersey | | | r'" Not'dry Pu.brllc | Commission ExPires Mar 28,2024 | | | | | | | This filing** contains (check all applicable boxes): | | | = | (a) Statement of financial condition. | | | = | (b) Notes to consolidated statement of financial condition. | | | I | | (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 S 210.1-02 of Regulation S-X). | | | tr | (d) Statement of cash flows. | | | I | | (e) Statement of changes in stockholders' orpartners' or sole proprietor's equity' | | tr | (f) Statement of changes in liabilities subordinated toclaims of creditors' | | | ! | (g) Notes to consolidated financial statements. | | | I | | (h) Computation of net capital under 17 CFR24}.t5c3-1 or 17 CFR 240.18a-1", asapplicable. | | n | (i)Computation oftangible net worth under L7 CFR 240.18a-2. | | | n | | (j) computation for determination of customer reserve requirements pursuant to Exhibit A to 17 cFR 240'15c3-3. | | n | | (k) computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 cFR 240'15c3-3 or | | | Exhibit A to L7 CFR 240.L8a-4, as applicable' | | | tl | | (l) Computation for Determination ofPAB Requirements under Exhibit A to 5 240.15c3-3.
(m) Information relating to possession orcontrol requirements for customers under 17 CFR 240.15c3-3. | | n | | (n) Informationrelatingtopossessionorcontrol requirementsforsecurity-basedswapcustomersunderlTCFR | | n | 240.15c3-3(p)(2) or 17 CFR 240,18a-4, as applicable' | | | n | | (o) Reconciliations, includ ing a ppropriatexplan ations, of the FOCUS Repo rt with com putation of net capital or ta ngible net | | | | worth under 17 CFR Z4O.I5c3-t, t7 CFR 240.18a-\, or !7 CFR 240,18a-2, as applicable, and the reserve requirements under 17 | | | | CFR240.15c3-3ort7CFR 240,18a-4,asapplicable,if material differencesexist,orastatementthatnomaterial differences | | | ex ist. | | | n | | (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition, | | E | | (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, L7 CFR 24O,t7a-72, or17 CFR 240,1"8a-7, as applicable, | | tr | | (r) Compliance rport in accordance with L7 CFR 240.17a-5 or 17 CFR 240'I8a-7, as applicable. | | I | | (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.t8a-7, as applicable. | | = | | (t) Independent pu blic accou ntant's report based on a n examin ation of the statement of financial condition ' | | n | | (u) Independent public accountant's report based on an examination ofthe financial report or financial statements under 17 | | | CFR 240.17a-5, 17 CFR 240.I8a-7, or L7 CFR 240.77a-!2, as applicable' | | | n | | (v) Independent public accountant's report based on an examination ofcertain statements in the compliance report under 17 | | | CFR 240.17a-5 or 17 CFR 240,t8a'7, as applicable. | | | n | | (w) lnd ependent pu blic accou nta nt's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 | | | CFR 240.t8a-7, as applicable. | (x) Su pp lem ental repo rts o n a pplying agreed-u pon proced u res, in acco rdance with 17 CF R 240.15c3 -te or 17 CFR 240 '77 a-12' | | ! | | | | | as applicable. | (y) Report d escribing any materia I in adeq u acies fou nd to exist or fou nd to have existed since the date of the previous audit, or | | n | | a statement that no material inadequaciesxist, under t7 cFR24O.I7a-12(k). | | | (z) Other:
f, | | applicqble. {2}------------------------------------------------ # APTO PARTNERS, LLG # STATEMENT OF FINANCIAL CONDITION DECEMBER 31,2021 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, 2021 # Table of Gontents | ,1
Report of Independent Registered Public Accounting Firm | | |---------------------------------------------------------------|--| | Financial Statement: | | | ,2
Statement of Financial Condition,,,,,,, | | | ,,,3-6
Notes to Financial Statements.,,, | | {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 PUBLIC ACCOUNTING FIRM To the Member of Apto Partners, LLC Mendhom, New Jersey # Opinion on the Findncial Stdtements We hqve qudited the occompanying stdtement of financiol condition of Apto Portners, LLC (o New Jersey Limited Liobility Company) as of December 31, 2027 ond the related notes. ln our opinion, the stotement of financial condition and reloted notes referred to qbove present fairly, in oll moteriol respects, the financial position of Apto Portners, LLC os of December 31, 2021, in accordance with accounting principles generally accepted in the United States of America. # Bosis for Opinion The statement of finoncial condition and related notes are the responsibility of Apto Portners, LLC's mdndgemenL Our responsibility is to express an opinion on Apto Portners, LLC's statement of financial condition ond related notes based on our audit. We are a public occounting firm registered with the Public Company Accounting Oversight Board (United Sfotes/ (PCAOB) qnd qre required to be independent with respect to Apto Portners, LLC in occordance with U.S. federal securities lows and the applicoble rules ond regulotions of the Securities and Exchonge Commission ond the PCAOB. We conducted our oudit in occordonce with the standards of the PCAOB. Those standords require that we plon and perform the audit to obtoin reosonoble ossuronce about whether the stqtement of finoncial condition and reloted notes ore free of materiql misstatement, whether due to error or fraud. Our audit included performing procedures fo ossess the risks of moterial misstatement of the statement of finonciol condition and related notes, whether due to error or fraud, and performing procedures thot respond to those risks. Such procedures include exomining, on o test basis, evidence regarding the amounts and disclosures in the statement of financial condition ond related notes, Our audit olso included evaluqting the occounting principles used and significont estimotes made by manqgement, as well os evaluating the overall presentation of the statement of financial condition ond related notes. We believe that our audit provides a reosonoble bosis for our opinion. We have served as Apto Portners, LLC's auditor since 2018. # JVAAM&Ad"vfuory Certified P ublic Accou ntants Palm Beach Gardens, FL Februory 24,2022 > PHONE: (561) 867-0345 | 5100 PGA BOULEVARD, SUITE 309 . PALM BEACH GARDENS, FL 33418 PHONE: (973) 620-9607 I tS BROnDWAY. DENV|LLE, NJ 07834 PHONE: (973)810-4210 I 54 MAIN STREET, SUITE 101 . SUCCASUNNA, NJ 07876 WWW.JVAFIRM.COM I WWW.JVAFIRMFL.COM {5}------------------------------------------------ # APTO PARTNERS, LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31 ,2021 ## ASSETS | Cash
Receivables from broker-dealers
Securities owned, at fair value
Fixed assets, net | 27,048
411,562
7,995,800
195.733 | |-------------------------------------------------------------------------------------------------|-------------------------------------------| | TOTAL ASSETS | 8.630,143 | | LIABILITIES | | | Accounts payable and accrued expenses
Payables to broker-dealers
Notes payable | 67,677
146,444
72.132 | | TOTAL LIABILITIES | 286,253 | | MEMBER'S EQUITY | | | TOTAL MEMBER'S EQUITY | 8,343,890 | | TOTAL LIABILITIES AND MEMBER'S EQUITY | 8,630,143 | {6}------------------------------------------------ # APTO PARTNERS, LLC NOTES TO FINANCIAL STATEMENTS DECEMBER 31 ,2021 ## 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 I ,2018, the Company adopted ASU 2014-'1 9 Revenue from Contracts with Customers and all subsequent amendmentso the ASU (collectively, "ASC 606"). The Company's services that fall within the scope of ASC 606 include investment banking income which includesecurities transactions and undenryriting fees. The implementationf this new accounting standardid 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 offinancial statements in conformity with GMP requires management tomake estimates and assumptions that affecthe 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 Customers Securities transactions and related revenues and expenses are recorded on a trade date basis. Underwriting fees are recorded at the time the undenruriting 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 usefulives, generally from three to thitly-nine years. #### lncome 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 frnancial statements do not reflect a provision from income taxes. Distributions were primarily used to meet member's income tax obligations, At December 31 ,202i, 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 ahierarchy 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 atthe measurement date. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categones: {7}------------------------------------------------ Level 1 - Quoted orices 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 by observable market data for substantiallv 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 ,2021, all securities owned, which consists of corporate obligations and mutual funds, were valued using Level 1 inputs. #### Receivables/Payables to Broker-Dealers Payables to broker-dealers represents netted trading profiUloss, interest income/expense, clearing charges, margin securities, and deposits with the clearing organization. The Company is required to maintain certain deposit amounts with the clearing organization depending on its clearing activities and as pursuant to the clearing agreement. At December 31, 2021 , the Company's requiredeposit was \$'100,000, #### Cash and Cash Equivalents The Company considers cash and cash equivalents amounts in demandeposit accounts at various financial institutions, investments inmoney 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 1,2022 and February 24,2022, which is the date the financial statements were to be issued, for possible disclosure and recognition ithe 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 ("FDlC") insures only the first \$250,000 in member banks. At December 31, 2021 , the Company had no uninsured cash balance. #### 4. FIXED ASSETS, NET Fixed assets, net consisted of the following: | | Year Ending December 3'1, 2021 | | |-------------------------------|--------------------------------|--| | Land | 91,916
\$ | | | Buildings | 1 16,984 | | | Equipment | 106.650 | | | | 315,550 | | | Less accumulated depreciation | (1 19'817) | | | Fixed assets, net | \$---195J33 | | #### 5. NOTES PAYABLE The Company has a commercial mortgage agreement with a lender of \$'167,120 collateralized bya lien on the property owned by the Company. The scheduled maturity date on the borrowing is November 1, 2030 and bears interest at 4o/o per annum, adjusted every five years at an adjustable rate of 1 87|ok above the Federal Home Loan Bank of New York Fixed-Advance Rate for Five (5) Years. At December 31,2021, the principal balance on the loan was \$48,737' The Company has a bank loan agreement with a lender of \$'101,650 collateralized by a lien on the equipment owned by theCompany. ThescheduledmaturitydateontheborrowingisApril23,2023andbearsinterestatl'49o/operannum. At December 31,2021, the principal balance on the loan was \$23,395. {8}------------------------------------------------ The Company has a bank loan agreement with a lender of \$47,500 subject to various Small Business Administration ("SBA") requirements. The scheduled maturity date on the borrowing is May 1 , 2022 and bears interest at 0.98% per annum. Payments of principal and interest begin one month after the deferral period which ended August 16,2021 . The Company used the proceeds of the loan for the limited purposes that qualify for forgiveness under the SBA requirements. At December 31 ,2021, the Company received loan forgiveness and the principal balance on the loan was \$0. The Company has a bank loan agreement with a lender of \$39,500 subject to various Small Business Administration ("SBA") requirements. The scheduled maturity date on the borrowing is March 23,2026 and bears interest at 0.98% per annum. Payments of principal and interest begin one month after the deferral period which ends July 7 ,2022. The Company used the proceeds of the loan for the limited purposes that qualify for forgiveness under the SBA requirements. At December 31 ,2021, the Company received loan forgiveness and the principal balance on the loan was \$0. The Company may, at any time and without obligation, make additional principal payments on the Notes. | | Year Endinq December 31, 2021 | | |--------------------------------------------------------------|-------------------------------|--| | Notes payable | 72,132
\$ | | | Principal payments on notes payable year ending December 31, | | | | 2022 | \$
22,544 | |------------|--------------| | 2023 | \$
11,224 | | 2024 | \$
5,457 | | 2025 | \$
5,697 | | 2026 | \$
5,932 | | Thereafter | \$
21,278 | ### 6. NET CAPITAL REQUIREMENTS The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (SEC Rule 1 5c3-1), which requires the maintenance ofminimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. At December 31,2021, the Company had net capital of \$6,879,062 which was \$6,779,062 in excess of its required net capital of \$100,000. The Company's ratio of aggregate indebtedness to net capital was 0.04 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 pedaining thereto pursuant to the requirements as are customarily made and kept by clearing agent. ### 8. COMMITMENTS AND CONTINGENCIES #### Litiqation The Company, as parl of doing business, may from time to time be involved in legal matters. In the opinion of 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. {9}------------------------------------------------ #### Investment Bankinq In the normal course of business, the Company enters into underwriting commitments. Transactions relating to such underwriting commitmentshat were open at December 31 ,2021, and were subsequently settled had no material etfect on the financial statements as of that date. #### 9. OFF.BALANGE 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.