# EDGAR Filing Document

**Accession Number:** 0000773373
**File Stem:** 0000773373-23-000001
**Filing Date:** 2023-3
**Character Count:** 19931
**Document Hash:** e2087f69766537c95d595f5f5ec0bf71
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000773373-23-000001.hdr.sgml**: 20230330

**ACCESSION NUMBER**: 0000773373-23-000001

**CONFORMED SUBMISSION TYPE**: X-17A-5

**PUBLIC DOCUMENT COUNT**: 2

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230330

**DATE AS OF CHANGE**: 20230330

**EFFECTIVENESS DATE**: 20230330

**PERIOD START**: 20220101

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** VALLEY NATIONAL INVESTMENTS, INC.
- **CENTRAL INDEX KEY:** 0000773373
- **IRS NUMBER:** 232352181
- **STATE OF INCORPORATION:** PA
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** X-17A-5
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 008-34427
- **FILM NUMBER:** 23779168

**BUSINESS ADDRESS:**
- **STREET 1:** 1655 VALLEY CENTER PARKWAY
- **STREET 2:** SUITE 100
- **CITY:** BETHLEHEM
- **STATE:** PA
- **ZIP:** 18017
- **BUSINESS PHONE:** 610-868-9000

**MAIL ADDRESS:**
- **STREET 1:** 1655 VALLEY CENTER PARKWAY
- **STREET 2:** SUITE 100
- **CITY:** BETHLEHEM
- **STATE:** PA
- **ZIP:** 18017

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** VALLEY NATIONAL INVESTMENTS INC                         /BD
- **DATE OF NAME CHANGE:** 20020612

### Attached PDF Documents

**Attachment 1:** `2022vnipublic.pdf`

# UNITED STATES

# SECURITIES AND EXCHANGE COMMISSION

# Washington, D.C. 20549

OMB APPROVAL

OMB Number: 3235-0123

Expires: Oct. 31, 2023

Estimated average burden

hours per response: 12

# ANNUAL REPORTS

# FORM X-17A-5

# PART III

SEC FILE NUMBER

# FACING PAGE

Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934

| FILING FOR THE PERIOD BEGINNING | 01/01/2022 | AND ENDING | 12/31/2022 |
| --- | --- | --- | --- |
|  | MM/DD/YY |  | MM/DD/YY |

# A. REGISTRANT IDENTIFICATION

NAME OF FIRM: Valley National Investments, Inc.

TYPE OF REGISTRANT (check all applicable boxes):

☑ Broker-dealer

☐ Security-based swap dealer

☐ Major 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.)

1655 Valley Center Parkway, Suite 100

| (No. and Street) |  |  |
| --- | --- | --- |
| Bethlehem | PA | 18017 |
| (City) | (State) | (Zip Code) |

PERSON TO CONTACT WITH REGARD TO THIS FILING

Matthew E. Petrozelli, President and CEO

610-868-9000

mpetrozelli@valleynationalgroup.com

(Name)

(Area Code - Telephone Number)

(Email Address)

# B. ACCOUNTANT IDENTIFICATION

INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*

Berkower LLC

| (Name - if individual, state last, first, and middle name) |  |  |  |
| --- | --- | --- | --- |
| 517 Route One South, Suite 4103 | Iselin | NJ | 08830 |
| (Address) | (City) | (State) | (Zip Code) |
| 09/18/2003 |  | 217 |  |

(Date of Registration with PCAOB)(if applicable)

(PCAOB Registration Number, if applicable)

# FOR OFFICIAL USE ONLY

* Claims for exemption from the requirement that the annual reports be covered by the reports of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-5(e)(1)(ii), 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.

# OATH OR AFFIRMATION

I, Matthew E. Petrozelli, swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of Valley National Investments, Inc., as of 12/31, 2022, 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

Commonwealth of Pennsylvania - Notary Seal
Donna M. Young, Notary Public
Northampton County
My commission expires December 17, 2025
Commission number 1183869

Member, Pennsylvania Association of Notaries

Donna M. Young 3/30/23
Notary Public

Signature: 
Title: 
President & 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).
- ☐ (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.
- ☐ (l) Computation for Determination of PAB Requirements under Exhibit A to § 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)(2) or 17 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 240.15c3-1, 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.
- ☐ (r) Compliance report in accordance with 17 CFR 240.17a-5 or 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 report or 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 240.15c3-1e or 17 CFR 240.17a-12, as applicable.
- ☐ (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 17 CFR 240.17a-12(k).
- ☐ (z) Other: ________________

**To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e)(3) or 17 CFR 240.18a-7(d)(2), as applicable.

VALLEY NATIONAL INVESTMENTS, INC.

FINANCIAL STATEMENT

DECEMBER 31, 2022

## TABLE OF CONTENTS

|  | Page No. |
| --- | --- |
| Report of Independent Registered Public Accounting Firm | 1 |
| Financial Statement: |  |
| Statement of Financial Condition | 2 |
| Notes to Financial Statement | 3 - 6 |

**berkower**
Certified Public Accountants & Advisors

517 Route One, Suite 4103
Iselin, NJ 08830
(732) 781-2712
berkower.io

# REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Sole Stockholder
of Valley National Investments, Inc.

# Opinion on the Financial Statement

We have audited the accompanying statement of financial condition of **Valley National Investments, Inc.** (the "Company") as of December 31, 2022 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 December 31, 2022 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 the Company's 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.

Berkower LLC

Iselin, New Jersey
March 29, 2023

Miami • Los Angeles • Cayman Islands

# **VALLEY NATIONAL INVESTMENTS, INC.**
**STATEMENT OF FINANCIAL CONDITION**
**DECEMBER 31, 2022**

**ASSETS**

| Cash and cash equivalents | $10,283 |
| --- | --- |
| Clearing deposits | 25,000 |
| Fees Receivable | 21,269 |
| Investments in Securities, at Fair Value | 259,215 |
| Other assets | 10,519 |
| TOTAL ASSETS | $326,286 |

**LIABILITIES AND STOCKHOLDER'S EQUITY**

**LIABILITIES**

| Payable to brokers and dealers | $334 |
| --- | --- |
| Commissions payable | 1,076 |
| Payable to Related Parties | 81,920 |
| Other liabilities | 1,097 |
| TOTAL LIABILITIES | 84,427 |

**STOCKHOLDER'S EQUITY**

| Common stock - Par value $1.00 per share, 500,000 shares authorized, 1,771 shares issued of which 1,000 are outstanding and 771 shares are held in treasury | 1,771 |
| --- | --- |
| Treasury stock, at cost | (182,178) |
| Additional paid in capital | 64,017 |
| Retained earnings | 358,249 |
|  | 241,859 |
| TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | $326,286 |

The accompanying notes are an integral part of this statement.

2

# **VALLEY NATIONAL INVESTMENTS, INC.  
NOTES TO FINANCIAL STATEMENTS  
DECEMBER 31, 2022**

# **NOTE 1: NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

# **NATURE OF BUSINESS**

Valley National Investments, Inc. (the “Company”) is a registered broker-dealer in securities under the Securities Act of 1934 and is a member of the Financial Industry Regulatory Authority. The Company is a member of a controlled group of corporations. The Company does most of its business activity within Pennsylvania and New Jersey.

# **USE OF ESTIMATES**

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

# **SECURITIES TRANSACTIONS**

Securities transactions and the related revenues and expenses are recorded in the financial statements on a trade date basis.

Marketable securities are carried at fair value, with changes in value included in the statement of operations in the period of change.

# **DATE OF MANAGEMENT’S REVIEW OF SUBSEQUENT EVENTS**

Management has evaluated events through March 29, 2023, the date on which the financial statement was available to be issued. There were no subsequent events that required disclosures and/or adjustments.

# **NOTE 2 CASH AND CASH EQUIVALENTS**

The Company considers all short-term investments with an original maturity of three months or less to be cash equivalents.

3

VALLEY NATIONAL INVESTMENTS, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022

# **NOTE 3: VALUATION OF INVESTMENTS IN SECURITES AT FAIR VALUE**

FASB ASC 820 defines fair value, established a framework for measuring fair value, and establishes a fair value hierarchy which prioritizes the inputs to valuation techniques. Fair value is 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. A fair value measurement assumes that the transactions to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market. Valuation techniques that are consistent with the market, income or cost approach, as specified by FASB ASC 820, are used to measure fair value.

The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels:

- Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities the Company has the ability to access. Valuation adjustments and block discounts are not applied to Level 1 securities. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these securities does not entail a significant degree of judgment.
- Level 2 inputs are inputs (other than quoted prices included in level 1) that are observable for the asset or liability, either directly or indirectly.
- Level 3 are unobservable inputs for the asset or liability and rely on management's own assumptions about the assumptions that market participants would use in pricing the asset or liability. (The unobservable inputs should be developed based on the best information available in the circumstances and may include the Company's own data.)

*Valuation Techniques:*

The Company values investments in securities that are freely tradable and are listed on a national securities exchange or reported on the NASDAQ national market at their last sales price as of the last business day of the year.

The following table present the Company's fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of December 31, 2022.

|  | Level 1 | Level 2 | Level 3 | Total |
| --- | --- | --- | --- | --- |
| Government Bonds | $259,215 | $ - | $ - | $259,215 |

4

# **VALLEY NATIONAL INVESTMENTS, INC.  
NOTES TO FINANCIAL STATEMENTS  
DECEMBER 31, 2022**

# **NOTE 4: INCOME TAXES**

In 2016, the Company elected to be treated as an “S Corporation” for income tax purposes as provided in Section 1362 of the Internal Revenue Code. An “S Corporation” is generally not subject to federal or state income taxes and as such no provisions are made for Federal or state income taxes in the accompanying financial statements.

At December 31, 2022, management has determined that the Company had no uncertain tax positions that would require financial statement recognition. This determination will be subject to ongoing reevaluation as facts and circumstances may require. The Company is no longer subject to federal, state, or local tax examinations by taxing authorities for years before 2019.

# **NOTE 5: CREDIT AND MARKET RISK**

A clearing broker-dealer carries all of the accounts of the Company and is responsible for the execution, collection of and payments of funds and, receipt and delivery of securities relative to customer transactions. Off-balance sheet credit risk exists with respect to these transactions due to the possibility that customers may be unable to fulfill their contractual commitments wherein the clearing broker-dealer may charge any losses it incurs to the Company. The Company seeks to minimize this risk through procedures designed to monitor the credit worthiness of its customers and that customer transactions are executed properly by the clearing broker-dealer.

At December 31, 2022, cash and cash equivalents were held on deposit at diversified U.S. financial institutions which, at times, may exceed federally insured limits. The Company is subject to credit risk to the extent any financial institution with which it conducts business is unable to fulfill contractual obligations on its behalf.

# **NOTE 6: RELATED PARTY TRANSACTIONS**

Valley National Group, Inc., a related entity, a member of a controlled group owned by one owner which was elected as the common paymaster, assesses management fees to the Company. The assessments are based on the Company’s profitability and utilization of resources. For the year ended December 31, 2022, the management fee amounted to $289,915. Due to related parties as of December 31, 2022 is $79,444 and $2,476 payable to Valley National Advisers, Inc. and Valley National Group, Inc, respectively, in respect to this agreement. For the year ended December 31, 2022, $29,501 of interest expense was incurred related to these balances.

5

# **VALLEY NATIONAL INVESTMENTS, INC.  
NOTES TO FINANCIAL STATEMENTS  
DECEMBER 31, 2022**

# **NOTE 7: NET CAPITAL REQUIREMENTS**

The Company is subject to the SEC's Uniform Net Capital Rule (rule 15c3-1) under the Securities Exchange Act of 1934, which requires the maintenance of minimum net capital, as defined and requires that the ratio of aggregate indebtedness, as defined, to net capital, shall not exceed 15 to 1.

At December 31, 2022, the Company had net capital of $224,908 which was $174,908 in excess of its required net capital of $50,000. The Company's ratio of aggregate indebtedness to net capital was 0.38 to 1.

Capital withdrawals are subject to certain notification and other provisions of the net capital rules of the SEC.

6

### UNITED STATES SECURITIES AND EXCHANGE COMMISSION
**Washington, D.C. 20549**

## FORM X-17A-5

### ANNUAL AUDITED REPORT

### Filer Information

**Filer CIK:** 0000773373

**Filer CCC:** XXXXXXXX

**Is this a LIVE or TEST filing?:** LIVE

**Would you like a Return Copy?:** No

### Submission Information

**Report Period Begin Date:** 01-01-2022

**Report Period End Date:** 12-31-2022

**Type of Registrant:** Broker-dealer

**Any material weaknesses identified?:** No

### Registrant Identification

**Name of Broker-Dealer:** VALLEY NATIONAL INVESTMENTS, INC.

**Business Address:** 1655 VALLEY CENTER PARKWAY, SUITE 100, BETHLEHEM, PA, 18017

**Contact Person:** Matthew E Petrozelli

**Contact Phone:** 610-868-9000

### Independent Public Accountant Identification

**Accountant Name:** Berkower LLC

**Accountant Address:** 517 Route One South, Suite 4103, Iselin, NJ, 08830

**Accountant Type:** Certified Public Accountant

### OATH OR AFFIRMATION

I, **Matthew E. Petrozelli**, swear (or affirm) that, to the best of my knowledge and belief, the accompanying financial statements and supporting schedules pertaining to the firm of **VALLEY NATIONAL INVESTMENTS, INC.**, as of **12-31-2022**, are true and correct.

**Signature:** Matthew E. Petrozelli

**Title:** President & CEO

**Notarized:** Yes