# APTO PARTNERS, LLC X-17A-5 (2023-03-29) — Broker-dealer annual report - Company: APTO PARTNERS, LLC - Form: X-17A-5 - Filed: 2023-03-29 - Period: 2022-12-31 - Accession: 0001506347-23-000001 - 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 - Email: info@aptopartners.com - Website: aptopartners.com - Signed by: Juan D. Espinosa (President & CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1506347/000150634723000001/Apto_Partners_Public.PDF --- {0}------------------------------------------------ ## "PUBLTC'' UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C.20549 > ANNUAL REPORTS FORM X-17A-5 PART III OMB Number:3235-0123 Expires: Oct. 31,2023 Estimated average burden hours per response: l2 # SEC FILE NUMBER 8-68746 FACING PAGE fnformation Required Pursuant to Rules L7a-5,L7a-L2, and 18a-7 under the Securities Exchange Act of 1934 | FILING FoR rHE pERroD BEGTNNtNG 01101122 | | AND ENDTNG | 12131t22 | |------------------------------------------|----------|------------|----------| | | MM/DD/YY | | MM/DD/YY | A. REGISTRANT I DENTIFICATION # NAME OF FIRM: APTO PARTNERS, LLC TYPE OF REGISTRANT (check all applicable boxes): E Broker-dealer I Security-based swap dealer n Vajor security-based swap participant ! Check here if respondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P,O, box no.) | | 5 Cold Hill Road South, Suite 1 1 | | | | |----------------------------------------------|---------------------------------------------------------------------------------------------------------|-----------------------|------------|--| | | (No. and Street) | | | | | Mendham | NJ | | 07945 | | | (city) | | | (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 DENTIFICATION | | | | | | 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 | 07834 | | | (Address) | | (state) | (zip Code) | | | 10t19t10 | | 5288 | | | | | | | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | \* Claims for exemption from the requirement that the annual reports be covered by the reports of an independent public accountantmustbesupportedbyastatementoffactsandcircumstancesreliedonasthebasisoftheexemption. See17 CFR 240.17a-5(eXlXii), 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. {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 | | APTO PARTNERS. LLC | as of | | | DECEMBER 31 | 2 022 | , | | is true and correct, I further swear (or affirm) that neither the company nor any | | as that of a customer. | paltner, officer, director, or equ | | | | may be, has any proprietary interest in any account classified solely | | | | | USHA KALLIANPURKAR
Notary Public - State of New rersev
My Commission Expires Feb 6, ZOZ4 | | | | | | | | | | | '
l( | k,"/ *^' | ,^ | | | PRESIDENT & CEO | | | | | | | | Notary Public I #### This filing\*\* contains (check all applicable boxes): - (a) Statement of financial condition. - = = (b) Notes to consolidated statement of financial condition. - n (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. - n (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - n (fl Statement of changes in liabilities subordinated to claims of creditors. - ! (g) Notes to consolidated financial statements, - ! (h) Computation of net capital under 17 CFR 240.15c3-t or 17 CFR 24O.I8a-L, as applicable. - ! (i)Computation of tangible net worth under 17 CFR 240.18a-2, - n fi) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240,15c3-3. - ! (k) Computation for determination of secu rity-based swap reserve req u irements pu rsuant to Exhibit B to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.I8a-4, as applicable. - ! (l) Computation for Determination of PAB Requirements under Exhibit Ato 5 240.15c3-3. - ! (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)(21 or 77 CFR 240,18a-4, as applicable. - ! (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.L5c3-L, 17 CFR 240.18a-I, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or L7 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist. - ! (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - = (q) Oath or affirmation in accordance with 17 CFR240.t7a-5, 17 CFR 240.I7a-!2, or 17 CFR 240.I8a-7, as applicable. - n (r) Compliance report in accordance with 17 CFR 240,17a-5 or 17 CFR 24O.t8a-7, as applicable, - n (s) Exemption report in accordance with 17 CFR 240.17a-5 or L7 CFR 240.78a-7, as applicable. - = (t) Independent public accountant's report based on an examination of the statement of financial condition. - n (u) Independent public accountant's report based on an examination of the financia I report or fina ncial statements under L7 CFR 240.17a-5, 17 CFR 240.t8a-7, or 17 CFR 240.17a-I2, 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.I8a-7, as applicable, - ! (w) lndependent pu blic accou ntant's report based on a review of the exemption report u nder 17 CFR 240.!7a-5 or t7 CFR 240.I8a-7, as applica ble. - ! (x) Supplemental reports on a pplying agreed-upon proced u res, in accordance with 17 CFR 240.15c3 -te or t7 CFR 240.77a-IZ, as applicable. - n (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 t7 CFR240.!7a-12(k). - tr (z)Other: - \*\*To request confidential treotment of certoin portions of this filing, see 77 CFR 240.17a-S(e)(3) or 77 CFR 240.18o-7(d)(2), os opplicable. {2}------------------------------------------------ # APTO PARTNERS. LLG # STATEMENT OF FINANCIAL CONDITION DEGEMBER 31 ,2022 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 ,2022 ## Table of Contents | Report of Independent Registered Public Accounting Firm
1 | | | |--------------------------------------------------------------|------|--| | Financial Statement: | | | | Statement of Financial Condition | 2 | | | Notes to Financial Statements | ,3-5 | | {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 Financisl Stotements We hove oudited the accomponying stotement of financiol condition of Apto Portners, LLC (a New lersey Limited Liability Compony) as of December 31-, 2022 ond the related notes. ln our opinion, the stotement of financiol condition qnd related notes referred to above present foirly, in oll materiol respects, the finonciol position of Apto Portners, LLC as of December 31-, 2022, in accordance with occounting principles generally accepted in the United Stotes of America. ## Bosis for Opinion The stqtement of financiol condition ond reloted notes are the responsibility of Apto Partners, LLC's monagement. Our responsibility is to express an opinion on Apto Portners, LLC's stotement of finonciol condition and reloted notes bosed on our audit. We ore o public occounting firm registered with the Public Compony Accounting Oversight Boord (United Stotes) (PCAOB) and are required to be independent with respect to Apto Portners, LLC in occordance with U.S. federol securities lows and the opplicable rules ond regulations of the Securities and Exchonge Commission ond the PCAOB. We conducted our oudit in accordonce with the standards of the PCAOB. Those stondords require that we plon and perform the oudit to obtoin reosonoble dssurdnce about whether the stotement of financial condition and relqted notes are free of material misstatement, whether due to error or fraud. Our audit included performing procedures'to ossess the risks of moteriol misstatement of the stotement of finonciol condition and reloted notes, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures include exomining, on o test basis, evidence regarding the dmounts and disclosures in the stotement of finoncial condition and related notes. Our audit olso included evoluoting the accounting principles used and significant estimotes made by manogement, as well os evaluoting the overall presentotion of the statement of finonciol condition ond related notes. We believe that our oudit provides q reqsonable bosis for our opinion. We hove served as Apto Partners, LLC's auditor since 201-8. # JVAAM&Adntaory Ce rtifi e d P u b I ic Acco u nto nts Palm Beoch Gardens, FL Morch 25,2023 > PHONE: (561) 867-0345 | stOO PGA BOULEVARD, SUITE 309 . PALM RFACH GARDENS, FL 33418 PHONE: (973) 620-9607 | 15 BROADWAY . DENVILLE, NJ 07834 PHONE: (973) 810-4210 | 54 MAIN STREET, SUITE 101 . SUCCASUNNA, NJ 07876 WWW.JVAFIRM.COM I WWW.JVAFIRMFL.COM {5}------------------------------------------------ # APTO PARTNERS, LLG STATEMENT OF FINANCIAL CONDITION DECEMBER 31 ,2022 #### ASSETS | Cash
Receivables from broker-dealers
Securities owned. at fair value
Fixed assets, net | 55,892
1,060,412
6,831,276
187.400 | |-------------------------------------------------------------------------------------------------|---------------------------------------------| | TOTAL ASSETS | \$
8,134,980 | | LIABILITIES | | | Accounts payable and accrued expenses
Notes payable | \$
63,548
32,225 | | TOTAL LIABILITIES | 95.773 | | MEMBER'S EQUITY | | | TOTAL MEMBER'S EQUITY | 8,039,207 | | TOTAL LIABILITIES AND MEMBER'S EQUITY | \$
8,1 34,980 | {6}------------------------------------------------ ## APTO PARTNERS, LLC NOTES TO FINANCIAL STATEMENTS DECEMBER 31 ,2022 #### 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 Com pany adopted ASU 2014-1 I 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 include investment banking income which includes securities transactions and undenruriting fees. The implementation of this 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 GMP requires management to 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 reporting period. Actual results could differ from those estimates. #### Revenue from Gontracts with Customers Securities transactions and related revenues and expenses are recorded on a trade date basis. Undenvriting fees are recorded atthe timethe 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 thirty-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 31,2022, 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 ceftain 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 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 ,2022, 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, 2022, 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 1,2023 and March 25,2023, 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 ("FDlC") insures only the first \$250,000 in member banks. At December 31, 2022,the Company had no uninsured cash balance. #### 4. FIXED ASSETS, NET Fixed assets, net consisted of the following: | | Year Endinq December 31, 2022 | |--------------------------------|-------------------------------| | Land | \$
91,916 | | Buildings | 1 16,984 | | Equipment | 106,650 | | | 315,550 | | Less accum ulated deoreciation | | | Fixed assets, net | \$
187.400 | #### 5. NOTES PAYABLE The Company has a commercial mortgage 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 at4Yo per annum, adjusted every five years at an adjustable rate of 1.875'/o above the Federal Home Loan Bank of New York Fixed-Advance Rate for Five (5) Years. At December 31 ,2022, the principal balance on the loan was \$26,333. The Company has a bank loan agreement with a lender of \$101,650 collateralized by a lien on the equipment owned by the Company. The scheduled maturity date on the borrowing is April 23, 2023 and bears interest at 1A9% per annum. At December 31,2022, the principal balance on the loan was \$5,892. {8}------------------------------------------------ The Company may, at any time and without obligation, make additional principal payments on the Notes. \$ 5,932 \$ g,st s | | | Year Endinq December 31, 2022 | | |--------------------------------------------------------------|----|-------------------------------|--| | Notes payable | \$ | 32.225 | | | Principal payments on notes payable year ending December 31, | | | | | 2023 | \$ | 11,224 | | | 2024 | \$ | s,+sz | | | 2025 | \$ | 5,697 | | | | | | | #### 6. NET CAPITAL REQUIREMENTS 2026 2027 The Company is subject to the Securities and Exchange Commission 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 December 31,2022, the Company had net capital of \$6,825,181 which was \$6,725,181 in excess of its required net capital of \$100,000. The Company's ratio of aggregate indebtedness to net capital was 0.01 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 (k)(2)(ii) 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 CONTINGENC]ES #### Litiqation The Company, as part 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. #### Investment Bankinq In the normal course of business, the Company enters into underwriting commitments. Transactions relating to such undenrvriting commitments that were open at December 31 ,2022, and were subsequently settled had no material effect on the financial statements as of that date. #### 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.