# PERITUS CAPITAL, LLC X-17A-5 (2024-06-06) — Broker-dealer annual report - Company: PERITUS CAPITAL, LLC - Form: X-17A-5 - Filed: 2024-06-06 - Period: 2024-03-31 - Accession: 0001824935-24-000003 - CIK: 1824935 - File #: 8-70590 - Type: Broker-dealer - Material weakness: No - Auditor: WithumSmith Brown, PC - Auditor location: New York, NY - Contact: Howard Tang - Phone: 646 360 3102 - Email: howard@peritus.com - Website: peritus.com - Signed by: Howard Tang (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1824935/000182493524000003/perituspublic.pdf --- {0}------------------------------------------------ # PERITUS CAPITAL LLC STATEMENT OF FINANCIAL CONDITION MARCH 31, 2024 {1}------------------------------------------------ #### UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 # ANNUAL REPORTS FORM X-17A-5 PART III | | UNITED STATES
SECURITIES AND EXCHANGE COMMISSION | OMB APPROVAL
OMB Number: | | |---------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------|--------------------------------------------|-------| | Washington, D.C. 20549 | Expires:
Estimated average burden
hours per response: | | | | ANNUAL REPORTS
SEC FILE NUMBER
FORM X-17A-5 | | | | | | | 8-70590 | | | PART III | | | | | | FACING PAGE
Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | | | | | 04/01/2023 | 3/31/2024 | | | | FILING FOR THE PERIOD BEGINNING _____________________ AND ENDING ______________________
MM/DD/YY | MM/DD/YY | | | | A.
REGISTRANT IDENTIFICATION | | | | Peritus | Capital
LLC
NAME OF FIRM: _______________________________________________________________________ | | | | TYPE OF REGISTRANT (check all applicable boxes):
Broker-dealer
Check here if respondent is also an OTC derivatives dealer | Security-based swap dealer | Major security-based swap participant | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | 535
Fifth
Avenue,
4th | floor | | | | | _____________________________________________________________________________________
(No. and Street) | | | | New
York | NY
_____________________________________________________________________________________ | 10017 | | | (City) | (State) | (Zip
Code) | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | Howard
Tang | 646
360
3102
_____________________________________________________________________________________ | Howard@peritus.com | | | (Name) | (Area Code – Telephone Number) | (Email Address) | | | | B.
ACCOUNTANT IDENTIFICATION | | | | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
WithumSmith+Brown, | PC
_____________________________________________________________________________________ | | | | | (Name – if individual, state last, first, and middle name) | | | | 1411
Broadway,
9th
(Address) | floor
New
York
_____________________________________________________________________________________
(City) | NY
10018
(State)
(Zip | Code) | | 10/18/2003 | | 100 | | | (Date of Registration with PCAOB)(if applicable) | _____________________________________________________________________________________ | (PCAOB Registration Number, if applicable) | | | | FOR OFFICIAL USE ONLY | | | {2}------------------------------------------------ #### OATH OR AFFIRMATION | Howard Tang | swear (or affirm) that, to the best of my knowledge and belief, the financial | |--------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | report pertaining to the firm of Perfus Capital LLC | | | 3/31 | as of
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | | | 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. | | | NANCY ZHONG
NOTARY PUBLIC. State of New York
No. 01ZH6427164
Qualified in Queens County | Signature: | | | | Commission Explose Doc. 20, 2025 5/3/24 Notary Public The . CEO #### This filing \*\* contains (check all applicable boxes): - (a) Statement of financial condition. - (b) Notes to consolidated statement of financial condition. - [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). - O (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 of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. - [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 240.18a-4, as applicable. - [1) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. - 0 (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 17 CFR 240.18a-4, as applicable. - [0] Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 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 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable. - O (r) Compliance report in accordance with 17 CFR 240.18a-7, as applicable. - [s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-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 statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, 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 240.18a-7, as applicable. - [w] Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - [] (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.17a-12, as applicable. - [ (y) Report describing any material inadequacies found to have existed shoe 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 CFR 240.170-5(e)(3) or 17 CFR 240.18c-7(d)(2), as opplicable. {3}------------------------------------------------ ## PERITUS CAPITAL LLC ## MARCH 31, 2024 #### TABLE OF CONTENTS | Report of Independent Registered Public Accounting Firm | | |---------------------------------------------------------|--| | | | | Statement of Financial Condition | | | Notes to the Financial Statement | | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) #### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Members and Management of Peritus Capital LLC: #### Opinion on the Financial Statement We have audited the accompanying statement of financial condition of Peritus Capital LLC (the "Company") as of March 31, 2024, and the related notes (collectively referred to as the "financial statement"). In our opinion, the financial statement presents fairly, in all material respects, the financial position of the Company as of March 31, 2024, in conformity with accounting principles generally accepted in the United States of America. #### Basis for Opinion This financial statement is the responsibility of the Company's management. Our responsibility is to express an opinion on this financial statement 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 the Company's auditor since 2021. Whippany, New Jersey June 4, 2024 {5}------------------------------------------------ ## PERITUS CAPITAL LLC STATEMENT OF FINANCIAL CONDITION MARCH 31, 2024 #### ASSETS | PERITUS CAPITAL LLC
STATEMENT OF FINANCIAL CONDITION
MARCH 31, 2024 | | | | | |---------------------------------------------------------------------------|----|---------|--|--| | ASSETS | | | | | | | | | | | | Cash | \$ | 164,037 | | | | Prepaid expenses and other assets | | 3,704 | | | | Total assets | \$ | 167,741 | | | | LIABILITIES AND MEMBERS' EQUITY | | | | | | Liabilities: | | | | | | Accounts payable | \$ | 9,644 | | | | Deferred revenue | | 10,000 | | | | Total liabilities | | 19,644 | | | | Members' equity | \$ | 148,097 | | | | Members' equity | \$ | 167,741 | | | {6}------------------------------------------------ #### 1. ORGANIZATION AND DESCRIPTION OF BUSINESS Peritus Capital LLC (the "Company") is a limited liability company organized under the laws of the state of Delaware on July 22, 2020. The Company's operations consist primarily of financial advisory and private capital raises for corporate clients. On May 27, 2021, the Company became a registered broker-dealer with the Securities and Exchange Commission and a member of the Financial Industry Regulatory Authority ("FINRA"). It is the intention of the members to continue to support and operate the Company for the twelve-month period from the date that these financial statements are issued and contribute the necessary capital to maintain the operations, fund its ongoing expenses and meet the net capital requirements of the SEC's Uniform Net Capital Rule. #### 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES #### Basis of presentation The accompanying financial statements of the Company have been prepared in conformity with accounting principles generally accepted in the United States of America. #### Revenue recognition Revenue from contracts with customers is recognized when, or as, the Company satisfies its performance obligations by transferring the promised services to the customers. A service is transferred to a customer when, or as, the customer obtains control of that service. A performance obligation may be satisfied at a point in time or over time. Revenue from a performance obligation satisfied at a point in time is recognized at the point in time that the Company determines the customer obtains control over the promised service. Revenue from a performance obligation satisfied over time is recognized by measuring the Company's progress in satisfying the performance obligation in a manner that depicts the transfer of the services to the customer. The Company recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The guidance requires an entity to follow a five-step model to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) the entity satisfies a performance obligation. In determining the transaction price, an entity may include variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved. {7}------------------------------------------------ ## PERITUS CAPITAL LLC NOTES TO THE FINANCIAL STATEMENT MARCH 31, 2024 #### 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) #### Revenue recognition (continued) Revenue from contracts with customers includes success and advisory 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; and whether constraints on variable consideration should be applied due to uncertain future events. Management has determined that one performance obligation exists, for contracts with customers, and that the unconstrained portion is recognized over time in the form of advisory fees. #### Fee income Fee income are fees arising from offerings in which the Company acts as an underwriter or agent and generally consist of a nonrefundable up-front fee and a success fee. The nonrefundable fee is recorded as deferred revenue upon receipt and recognized at a point in time when the performance obligation is satisfied, or when the transaction is deemed by management to be terminated. Management's judgment is required in determining when a transaction is considered to be terminated. #### Fee income capital raising Fee income capital raising is considered variable consideration and recognized when it is probable that the variable consideration will not be reversed in a future period. The variable consideration is considered to be constrained until satisfaction of the performance obligation. The Company's performance obligation is generally satisfied at a point in time upon the closing of a strategic transaction, completion of a financing or underwriting arrangement, or some other defined outcome. At this time, the Company has transferred control of the promised service and the customer obtains control. As these arrangements represent a single performance obligation, allocation of the transaction price is not necessary. The Company has elected to apply the following optional exemptions regarding disclosure of its remaining performance obligations: the Company's performance obligation is part of a contract that has an original expected duration of one year or less. #### Transaction fee receivable contract assets and liabilities Transaction fees receivable are carried at cost less an allowance for credit losses. The Company complies with Accounting Standards Codification ("ASC") Topic 326, Financial Instruments – Credit Losses ("ASC 326"). ASC 326 impacts the impairment model for certain financial assets measured at amortized cost by requiring a current expected credit loss ("CECL") methodology to estimate expected credit losses over the entire life of the financial assets as of the reporting date. {8}------------------------------------------------ ## PERITUS CAPITAL LLC NOTES TO THE FINANCIAL STATEMENT MARCH 31, 2024 #### 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) ## Transaction fee receivable contract assets and liabilities (continued) The allowance for credit losses is based on the Company's expectation of the collectability of financial instruments carried at amortized cost, including fees receivable utilizing the CECL framework. The Company's expectation is that the credit risk associated with transaction fees receivable is that any client which it conducts business with is unable to fulfill its contractual obligations. Management monitors the credit risk of clients, and currently there is not a foreseeable expectation of an event or change which could result in the fees receivable being unpaid based on individual facts and circumstances. The Company considers factors such as historical experience, credit quality, age of balances, and current and future economic conditions that may affect the Company's expectation of collectability in determining the allowance for credit losses. The Company has no allowance for credit losses as of March 31, 2024. Contract assets arise when the revenue associated with the contract is recognized prior to the Company's unconditional right to receive payment under a contract with a customer (i.e., unbilled receivable) and are derecognized when it becomes a receivable or the cash is received. Contract liabilities arise when customers remit contractual cash payments in advance of the Company satisfying its performance obligations under the contract and are derecognized when the revenue associated with the contract is recognized when the performance obligation is satisfied. The Company had no contract assets or liabilities at April 1, 2023 and March 31, 2024. #### Concentration of risk The Company maintains cash in bank accounts with a single financial institution. The balances are insured by the FDIC up to \$250,000. From time to time, the balance in this account may exceed the federally insured limits. Any loss incurred or lack of access to such funds could have a significant adverse impact on the Company's financial condition, results of operations, and cash flows. #### Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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. #### Income taxes As a wholly-owned limited liability company, the Company is not subject to federal, state or local income taxes. All items of income, expense, gains and losses are reportable by the Parent for tax purposes. The Company is considered to be a disregarded entity and is thus not subject to federal, state and local income taxes and does not file income tax returns in any jurisdiction. At March 31, 2024, the Parent has determined that the Company had no uncertain tax positions that would require financial statement recognition. {9}------------------------------------------------ #### PERITUS CAPITAL LLC NOTES TO THE FINANCIAL STATEMENT MARCH 31, 2024 #### 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) #### Income taxes (continued) This determination will always be subject to ongoing reevaluation as facts and circumstances may require. Generally, the Parent is subject to income tax examinations by major taxing authorities during the three-year period prior to the period covered by these financial statements. #### 3. RELATED PARTY TRANSACTIONS During the normal course of business, the Company may receive revenue deposits on behalf of its members. At March 31, 2024, there was no amount due to members. #### 4. NET CAPITAL REQUIREMENTS The Company is subject to the uniform net capital requirements of Rule 15c3-1 of the Securities and Exchange Act, as amended, which requires the Company to maintain, at all times, sufficient liquid assets to cover indebtedness. In accordance with the Rule, the Company is required to maintain defined minimum net capital of the greater of \$5,000 or 6.6667 % of aggregate indebtedness. At March 31, 2024, the Company had net capital, as defined, of \$144,393, which exceeded the required minimum net capital of \$5,000 by \$139,393. Aggregate indebtedness at March 31, 2024 was \$19,644. The Company's percentage of aggregate indebtedness to net capital was 13.60%. The Firm does not claim an exemption from SEA Rule 15c3-3, in reliance on footnote 74 to SEC Release 34-70073, and as discussed in Q&A 8 of the related FAQ issued by SEC staff. The Firm has represented that it does not and will not, (1) directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, (2) does not and will not carry accounts of or for customers and (3) does not and will not carry PAB accounts. #### 5. SUBSEQUENT EVENTS Management of the Company has evaluated events and transactions that may have occurred since March 31, 2024, and through date of issuance and determined that there are no material events that would require disclosures in the Company's financial statements. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.