# APTO PARTNERS, LLC X-17A-5 (2024-03-28) — Broker-dealer annual report
- Company: APTO PARTNERS, LLC
- Form: X-17A-5
- Filed: 2024-03-28
- Period: 2023-12-31
- Accession: 0001506347-24-000001
- 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/1506347/000150634724000001/Apto_Partners_Public.PDF
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## ''PUBLIG''
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C.20549
| ANNUAL REPORTS |
|----------------|
| FORM X-17A-5 |
| PART III |
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
| FIuNG FoR THE pERroD BEGINNtNG 01101123 | | AND ENDTNG | 12t31t23
MM/DD/YY | | | | |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------|------------|----------------------|--|--|--|--|
| | MM/DD/YY | | | | | | |
| | A. REGISTRANT IDENTIFICATION | | | | | | |
| APTO PARTNERS. LLC
NAME OF FIRM: | | | | | | | |
| ryPE OF REGISTRANT (check all applicable boxes):
! Major security-based swap participant
E Broker-dealer X Security-based swap dealer
n Check here if respondent is also an OTC derivatives dealer | | | | | | | |
ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.)
| | (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 | | |
| | | | |
| | (Area Code -Telephone Number) | (Email Address) | |
| | B. ACCOU NTANT I DENTI FICATION | | |
| INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | JVA Accountants & Advisors | | |
| 15 Broadway | (Name - if individual, state last, first, and middle name)
Denville | NJ | |
| | (city) | (State) | 07834
(zip Code) |
| (Address)
10119110 | | 5288 | |
| | | | |
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.
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#### 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 | | | | | |
| | 2 023
DECEMBER 31
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. | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | JOSEF A JAKOSALEM | | | | | |
| | Not.rry Public - State of New JerseY | | | | | |
| | Commission ExPires M.rr 78,2074 | | | | | |
| | | | | | | |
| | 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 5 210.1-02 of Regulation S-X). | | | | | |
| D | (d) Statement of cash flows. | | | | | |
| D | (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. | | | | | |
| tr | (f) Statement of changes in liabilities subordinated to claims of creditors. | | | | | |
| | (g) Notes to consolidated financial statements. | | | | | |
| n | (h) Computation of net capital under 17 CFR 240.I5c3-I or 17 CFR 240.I8a-t, as applicable. | | | | | |
| n | (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. | | | | | |
| | (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.L8a-4, as applicable. | | | | | |
| n | (l) Computation for Determination of PAB Requirements under Exhibit A to 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 | | | | | |
| | 2a0.15c3-3(p)(2) or t7 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 240,15c3-t, 17 CFR 240.18a-!, or 77 CFR 240.18a-2, as applicable, and the reserve requirements under 17 | | | | | |
| | CFR240,15c3-3or17 CFR 240,18a-4,asapplicable,ifmaterial differencesexist,orastatementthatnomaterial 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 CFR 240.17a-5, 17 CFR 240.!7a-I2, or 17 CFR 240.I8a-7, as applicable, | | | | | |
| =! | (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.1.8a-7, as applicable. | | | | | |
| n | (s) Exemption report in accordance with 17 CFR240.t7a-5 or 17 CFR 24O.I8a-7, as applicable. | | | | | |
| | (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.!8a-7, or 17 CFR 240.I7a-I2, as applicable. | | | | | |
| tr | (v) lndependent public accountant's report based on an examination of certain statements in the compliance report under 17 | | | | | |
| | CFR 240.17a-5 or L7 CFR 240.1,8a-7, as applicable. | | | | | |
| | (w) lndependent public accountant's report based on a review of the exemption report under 17 CFR240.Ua-5or t7 | | | | | |
| | CFR 240.18a-7, as applicable. | | | | | |
| n | (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-leor t7 CFR240.t7a-12,
as applicable. | | | | | |
| ! | (y) Repon describing any material inadequacies found to exist or found to have existed since the date ofthe previous audit, or | | | | | |
| | a statement that no material inadequacies exist, under 17 CFR 240.17a-72(k). | | | | | |
| | n (z)Other: | | | | | |
applicable.
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# APTO PARTNERS. LLC
## STATEMENT OF FINANCIAL CONDITION
DECEMBER 31 ,2023
FILED PURSUANT TO RULE 17a-5(e)(3) OF THE SECURITIES AND EXCHANGE ACT OF 1934 AS A PUBLIC DOCUMENT
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# APTO PARTNERS. LLC
December 31 ,2023
## Table of Contents
| Report of Independent Registered Public Accounting Firm
,1 | | | | |
|---------------------------------------------------------------|-----|--|--|--|
| Financial Statement: | | | | |
| Statement of Financial Condition,. | 2 | | | |
| Notes to Financial Statements,, | 3-6 | | | |
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Josoph Velocci, CPA, CGMA Anthony Velooci, CPA Nancy Colqcco, CPA
Licensed in: New Jersey Florida
"Building Your Future"
## REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Member of Apto Partners, LLC Mendham, New Jersey
#### Oplnion on the Flnsnclql Stutements
We hove audited the accompanying stotement of financial condition of Apto Partners, LLC (a New Jersey Limlted Liability Company) as of December 31, 2023 ond the reloted notes. ln our opinion, the statement of finencial condition ond related notes referred to above present foirly, in all materiol respects, the financiql position of Apto Pqrtners, LLC os of December 3L, 2023, in occordonce with occounting principles generally accepted in the United Sfofes of America.
### Bosls lor Oplnlon
The ststement of financtsl condition and reloted notes are the responsibility of Apto Partners, LLC's nanagement, Our responsibility is to express an opinion on Apto Partners, LLC's statement of finoncial condition gnd related notes bqsed on our oudit. We ore a public accounting firm registered with the Public Campony Accaunting Oversight Board (United States) (PCA)B) qnd are required to be independent with respect ta Apta Pertners, LLC in accordance with U,S, federol securities laws ond the opplicable rules and regulqtians af the Securities ond Exchange Commisslon and the PCAOB.
We conducted our audit in accordonce with the stondards of the PCAOB. Those stondards require that vye plan and perform the audit to obtoin reosonable ossurance obout whether the stotement of financiol condition and relqted notes are free of material misstatement, whether due to error or froud. Our audit included perfarmlng procedures to assess the risks of moteriol misstatement of the statement of financial candition and related notes, whether due to error or fraud, and performing procedures thot resportd to those risks. Such procedures include examining, on o test basis, evidence regarding the amounts and disclosures in the statement of financiol condition ond related notes. Our audit also included evaluating the accounting principles used and significant estimotes made by manogement, as well os evaluating the overall presentation o,f the stqtement of finonciol condition ond related notes. We believe thst our oudit provides o reosonoble bosis for our opinion.
We have served qs Apto Partners, LLC's auditor since 2018,
# JVA AM€r Ad'vLoorv
Ce rtified Public Accou nto nts
Pslm Beoch Gordens, FL Mqrch 25,2024
> PHONE; (501)BO7-0345 I 51OO PGA BOULEVARD, SUITE 309 . PALM BEACH GARDENS, FL 33418 PHONE: (973)620-9007 | 15 BROADWAY. DENVILLE, NJ 07834 PHONET (973)810-4210 | 54 MAIN STREET, SUITE 101 . SUCCASUNNA, NJ 07876 WWW.JVAFIRM.COM I WWW.JVAFIRMFL.COM
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# APTO PARTNERS, LLG STATEMENT OF FINANGIAL GONDITION DECEMBER 31 ,2023
#### ASSETS
| Cash
Receivables from broker-dealers
Securities owned, at fair value
Fixed assets, net | 27,209
1,188,527
8,061,380
184,400 |
|-------------------------------------------------------------------------------------------------|---------------------------------------------|
| TOTAL ASSETS | \$
9,461,516 |
| LIABILITIES | |
| Accounts payable and accrued expenses | \$
12,171 |
| TOTAL LIABILITIES | 12.171 |
| MEMBER'S EQUITY | |
| TOTAL MEMBER'S EQUITY | 9,449.345 |
| TOTAL LIABILITIES AND MEMBER'S EQUITY | \$
9,461 ,516 |
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# APTO PARTNERS, LLC NOTES TO FINANCIAL STATEMENTS DECEMBER 31 ,2023
#### 1. ORGANIZATION AND NATURE OF BUSINESS
Apto Paftners, 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 ("FlNRq";. 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. SIGNIFICANTACCOUNTING POLICIES
#### Basis of Presentation
The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP").
#### 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
Revenue from contracts with customers includes fees from investment banking services. 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; whether revenue should be presented gross or net of ceftain costs; and whether constraints on variable consideration should be applied due to unceftain future events.
The Company underuurites securities for business entities that want to raise funds through a sale of securities. Revenues are earned from fees arising from securities offerings in which the Company acts as an underurrriter. Undenruriting fees are the major source of revenue. Revenue is recognized on the trade date (the date on which the Company purchases the securities from the issuer) for the portion the Company is contracted to buy. The Company believes that the trade date is the appropriate point in time to recognize revenue for securities underuriting transactions as there are no significant actions which the Company needs to take subsequent to this date and the issuer obtains the control and benefit of the capital markets offering at that point.
Undenruriting costs that are deferred under the guidance in FASB ASC 940-340-25-3 are recognized in expense at the time the related revenues are recorded. In the event that transactions are not comoleted and the securities are not issued, the Company immediately expenses those costs.
#### Fixed Assets, Net
Fixed assets are recorded at historical cost, net of accumulated depreciation. Depreciation is calculated on a straight-line basis over their economic useful lives, generally from three to thirty-nine years.
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#### Income Taxes
The Company is treated as a sole proprietorship for federal income tax purposes and does not incur income taxes. lnstead 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 31,2023, 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 following three categories:
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 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 31,2023, 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 profit/loss, 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 31,2023, the Company's required deposit was 9100,000.
#### 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 1,2024 and March 25, 2024, 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 onlythe first \$250,000 in member banks. At December 31,2023, the Company had no uninsured cash balance.
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#### 4. FIXED ASSETS, NET
Fixed assets, net consisted of the following:
| Land | |
|-------------------------------|--|
| Buildings | |
| Equipment | |
| | |
| Less accumulated depreciation | |
| Fixed assets, net | |
#### 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 at 4o/o per annum, adjusted every five years at an adjustable rate of 1.875o/o above the Federal Home Loan Bank of New York Fixed-Advance Rate for Five (5) Years. At December 31,2023, the principal balance on the loan was \$0.
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 149% per annum. At December 31,2Q23, the principal balance on the loan was \$0.
#### 6, NET CAPITAL REOUIREMENTS
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 31,2023, the Company had net capital of \$8,217 ,700 which was \$8,1 17,700 in excess of its required net capital of \$1 00,000. The Company's ratio of aggregate indebtedness to net capital was 0,0015 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 CONTINGENCIES
#### Litioation
The Company, as paft of doing business, may from time to time be involved in legal matters. ln 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.
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#### Investment Bankinq
ln the normal course of business, the Company enters into undenruriting commitments. Transactions relating to such underwriting commitments that were open at December 31 ,2023, and were subsequently settled had no material etfect 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.