# ARDOUR CAPITAL INVESTMENTS, LLC X-17A-5 (2021-03-29) โ€” Broker-dealer annual report - Company: ARDOUR CAPITAL INVESTMENTS, LLC - Form: X-17A-5 - Filed: 2021-03-29 - Period: 2020-12-31 - Accession: 0001144249-21-000003 - CIK: 1172099 - File #: 8-65317 - Material weakness: No - Auditor: Berkower LLC - Auditor location: Iselin, NJ - Contact: Kerry Dukes - Phone: 2123752957 - Signed by: Kerry Dukes (Director) Original filing: https://www.sec.gov/Archives/edgar/data/1172099/000114424921000003/AnnualReportFYE12.31.2020P.pdf --- {0}------------------------------------------------ UNITEDSTATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 OMB APPROVAL 3235-0123 OMB Number: Expires: October 31, 2023 Estimated average burden hours per response .. . . . . . . 12.00 ## ANNUAL AUDITED REPORT FORM X-17A-5 PART III | | SEC FILE NUMBER | |---------|-----------------| | 8-65317 | | ### FACING PAGE Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder | | NORTE TOTAD THE CATTOOTH
AND ENDING 12/31/2020
REPORT FOR THE PERIOD BEGINNING 01/01/2020 | | | | |-------------------------------------------------------------------|-------------------------------------------------------------------------------------------------|---------------|--------------------------------|--| | | MM/DD/YY | | MM/DD/YY | | | | A. REGISTRANT IDENTIFICATION | | | | | NAME OF BROKER-DEALER: Ardour Capital Invesments, LLC | | | OFFICIAL USE ONLY | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | FIRM LD. NO. | | | 26 Broadway, Suite 1107 | | | | | | | (No. and Street) | | | | | New York | NY | 10004 | | | | (City) | (State) | (Zip Code) | | | | Kerry Dukes | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT | (917)518-7320 | | | | | | | (Area Code - Telephone Number) | | | | B. ACCOUNTANT IDENTIFICATION | | | | | Berkower LLC | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* | | | | | | (Name - if individual, state last, first, middle name) | | 08830 | | | 517 Route 1 | lselin | NJ | | | | (Address) | (City) | (State) | (Zip Code) | | | CHECK ONE: | | | | | | Certified Public Accountant
V | | | | | | Public Accountant | | | | | | | Accountant not resident in United States or any of its possessions. | | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | | | | | | | | | | | \*Claims for exemption from the requirement that the annual report be covered by the opinion of m integendent public accountant \* Claims for exemplion from the requirement mat the camilar report on exemption. See Section 240.17a-5(e)(2) > Potential persons who are to respond to the collection of Potential persons wills form are not required to respond information contained in this form are not required to ropportu > unless the form displays a currently valid OMB control number. {1}------------------------------------------------ # OATH OR AFFIRMATION | T Kerry Dukes | , swear (or affirm) that, to the best of | |-------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------| | | my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of | | Ardour Capital Invesments, LLC | . as | | of December 31 | 2020 are true and correct. I further swear (or affirm) that | | | neither the company nor any partner, principal officer or director has any proprietary interest in any account | | classified solely as that of a customer, except as follows: | | | | | | | | | | | | | | | | Signature | | | | | | Title | | | CELIA CAMACHO | | | Notary Public - State of New York
No. 01CA6155612 | | Notary Public | Qualified in Nassau County | | | Commission Expires Nov. 13, 20 | | This report ** contains (check all applicable boxes): | | | (a) Facing Page. | | | (b) 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 ยง210.1-02 of Regulation S-X). | | (d) Statement of Changes in Financial Condition. | | | | (e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital. | | | (f) Statement of Changes in Liabilities Subordinated to Claims of Creditors. | | (g) Computation of Net Capital. | | | | (h) Computation for Determination of Reserve Requirements Pursuant to Rule 15c3-3. | | | (i) Information Relating to the Possession or Control Requirements Under Rule 15c3-3. | | | (j) A Reconciliation, including appropriate explanation of the Computation of Net Capital Under Rule 15c3-1 and the | | | Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3. | | | (k) A Reconciliation between the audited Statements of Financial Condition with respect to methods of | | consolidation. | | | (1) An Oath or Affirmation. | | | (m) A copy of the SIPC Supplemental Report. | (1) A report describing any material inadequacies found to exist or found to have existed since the date of the previous audit. | | | | | | | \*\* For conditions of confidential treatment of certain portions of this filing, see section 240.17a-5(c)(3). {2}------------------------------------------------ ![](_page_2_Picture_0.jpeg) ## REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Sole Member of Ardour Capital Investments, LLC #### Opinion on the Financial Statement We have audited the accompanying statement of financial condition of Ardour Capital Investments, LLC (the "Company") as of December 31, 2020 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, 2020 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. We have served as the Company's auditor since 2018. Korrer Berkower LLC Iselin, New Jersey March 26, 2021 {3}------------------------------------------------ ARDOUR CAPITAL INVESTMENTS, LLC A WHOLLY OWNED SUBSIDIARY OF ARDOUR CAPITAL PARTNERS LLC AUDITED FINANCIAL STATEMENT DECEMBER 31, 2020 {4}------------------------------------------------ ## ARDOUR CAPITAL INVESTMENTS, LLC A WHOLLY OWNED SUBSIDIARY OF ARDOUR CAPITAL PARTNERS LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2020 ## A S S E T S | Cash | 200,947 | |---------------------------------------------------|---------------| | Receivable from Brokers and Dealers | 3,244 | | Due from affiliate | 34,400 | | Securities owned, at fair value | 1,565 | | Fixed assets (net of accumulated depreciation and | | | amortization of \$196,613) | 0 | | Other receivables-employee advances | 76,732 | | Other assets | 13,929 | | TOTAL ASSETS | \$
330,817 | ## LIABILITIES AND MEMBER'S EQUITY ### Liabilities: | Note payable bank-PPP
Accrued expenses and other liabilities | \$
44,848
20,872 | |-----------------------------------------------------------------|------------------------| | TOTAL LIABILITIES | 65,720 | | Member's equity | 265,097 | | TOTAL LIABILITIES AND MEMBER'S EQUITY | \$
330,817 | The accompanying notes are an integral part of this financial statement. {5}------------------------------------------------ ## NOTE 1. ORGANIZATION AND NATURE OF BUSINESS Ardour Capital Investments, LLC (the "Company") is a Delaware limited liability company formed on January 18, 2002. The Company is a securities broker-dealer, registered with the Securities and Exchange Commission ("SEC") and is a member of the Financial Industry Regulatory Authority, Inc. ("FINRA"). The Company provides investment banking, equity research and advisory services to the alternative energy technology sector. ## NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ### Basis of Presentation The books and records of the Company are kept on the accrual basis and follow trade-date accounting in accordance with accounting principles generally accepted in the United States of America ("GAAP"). ### Cash As of December 31, 2020, the Company maintained its cash at one financial institution located in the United States of America. ### Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates ## Income Taxes No provision for federal and state income taxes has been made since the Company is not a taxable entity. The parent reports its distributive share of realized income or loss on its own tax returns. The Company is not subject to New York City Unincorporated Business Tax as that tax is paid at the Parent level. The Company recognizes and measures its unrecognized tax benefits in accordance with Financial Accounting Standards Board Accounting Standards Codification 740, Income Taxes. Under that guidance the Company assesses the likelihood, based on their technical merit, that tax positions will be sustained upon examination based on the facts, circumstances and information available at the end of each period. The measurement of unrecognized tax benefits is adjusted when new information is available, or when an event occurs that requires a change. The Company believes that it has no uncertain tax positions and no liability has been recorded. The Company continually evaluates expiring statues of limitations. audits, proposed settlements, changes in tax law, and new authoritative rulings. {6}------------------------------------------------ ### NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) ### Statement of Cash Flows For purposes of the Statement of Cash Flows, the Company has defined cash equivalents as highly liquid investments, with original maturities of less than three months, that are not held for sale in the ordinary course of business. ### Securities Owned Proprietary securities transactions in regular-way trades are recorded on the trade date, as if they had settled. Profit and loss arising from all securities transactions entered into for the account and risk of the Company are recorded on a trade date basis. Commission income and expenses on Customers' securities and commodities transactions are reported on a trade date basis. Securities are recorded at fair value in accordance with FASB ASC 820, Fair Value Measurement. See note 3. ### Commissions Commissions and related clearing expenses are recorded on the trade-date basis as securities transactions occur. The Company has not recorded any commissions and related clearing expenses for the year ended December 31, 2020. ### Revenue Recognition On January 1, 2018, the Company adopted ASC 606, Revenue From Contracts With Customers as the method of recognizing revenue. ### Depreciation Depreciation is provided on a straight-line basis using estimated useful lives of five to ten years. Leasehold improvements are amortized over the lesser of the economic useful life of the improvement or the term of the lease. {7}------------------------------------------------ ## Accounting Standards On January 1, 2020, the Company adopted FASB ASC Topic 326 โ€“ "Financial Instruments - Credit Loses" ("ASC Topic 326") which replaces the incurred loss methodology with the current expected credit loss ("CECL") methodology The new guidance applies to financial assets measured at amortized cost, held-to-maturity debt securities and off-balance sheet credit exposures. For on-balance sheet assets, an allowance must be recognized at the origination or purchase of in-scope assets and represents the expected credit losses over the contractual life of those assets. Expected credit losses on off-balance sheet credit exposures must be estimated over the contractual period the Company is exposed to credit risk as a result of a present obligation to extend credit. The Company adopted ASC Topic 326 using the modified retrospective approach for all in-scope assets. Results for reporting periods beginning after January 1, 2020 are presented under ASC Topic 326 while prior periods continue to be reported in accordance with previously applicable U.S. GAAP. The impact to the current period is not material since the Company's in-scope assets are primarily subject to collateral maintenance provisions for which the Company elected to apply the practical expedient of reporting the difference between the fair value of collateral and the amortized cost for the in-scope assets as the allowance for current expected credit losses. ### Forgivable Loans โ€“ Paycheck Protection Program (PPP) The Company's policy is to account for forgivable loans received through the Small Business Administration (SBA) under Coronavirus Aid, Relief and Economic Security Act (CARES Act) Paycheck Protection Program (PPP), as debt in accordance with Accounting Standards Codification (ASC) 470, Debt, and other related accounting pronouncements. The forgiveness of debt, in whole or in part, is recognized once the debt is extinguished, which occurs when the Company is legally released from the liability by the SBA. Any portion of debt forgiven, adjusted for accrued interest forgiven and unamortized debt issuance costs, is recorded as a gain on extinguishment of debt, and presented in the other income section of the statement of income. {8}------------------------------------------------ ## NOTE 3. FAIR VALUE MEASUREMENTS FASB ASC 820 defines fair value, establishes 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 transaction 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. Level 2 inputs are inputs other than quoted prices included within 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. The following table presents the Company's fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of December 31, 2020: | Securities owned | Level 1 | Level 2 | Level 3 | Total | |-------------------|-------------|---------|---------|-------------| | Equity securities | \$
1,565 | \$ - | \$ - | \$
1,565 | | % of Total | 100% | - | - | 100% | {9}------------------------------------------------ ## NOTE 4. REVENUE FROM CONTRACTS WITH CUSTOMERS ### Significant Judgments 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; and whether constraints on variable consideration should be applied due to uncertain future events. ### Investment Banking M & A advisory fees- The Company provides advisory services on mergers and acquisitions (M&A). Revenue for advisory arrangements is generally recognized at the point in time that performance under the arrangement is completed (the closing date of the transaction) or the contract is cancelled. However, for certain contracts, revenue is recognized over time for advisory arrangements in which the performance obligations are simultaneously provided by the Company and consumed by the customer. In some circumstances, significant judgment is needed to determine the timing and measure of progress appropriate for revenue recognition under a specific contract. On occasion, retainers and other fees received from customers prior to recognizing revenue are reflected as contract liabilities. At December 31, 2020, all amounts were immaterial. ## NOTE 5. NET CAPITAL REQUIREMENT The Company is subject to the SEC 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, 2020, the Company had net capital of \$184,649, which was \$179,649 in excess of its required net capital of \$5,000. The Company's net capital ratio was .113 to1. {10}------------------------------------------------ ## NOTE 6. SIGNIFICANT GROUP CONCENTRATION OF RISK In the normal course of its business, the Company enters into financial transactions where the risk of potential loss due to changes in the market (market risk) or failure of the other parties to the transaction to perform (credit risk) exceeds the amounts recorded for the transaction. The Company's policy is to continuously monitor its exposure to the market and counterparty risk through the use of a variety of financial, position and credit exposure reporting and control procedures. In addition, the Company has a policy of reviewing the customers and/or other counterparties with which it conducts business. As of December 31, 2020, there were no customer accounts having debit balances which presented any risks nor was there any exposure with any other transaction conducted with any other broker. During the year ended December 31, 2020, 90% of the Advisory Fee revenue was received from one customer. ### NOTE 7. RELATED PARTY TRANSACTION At December 31, 2020, \$34,400 is due from an affiliate of the Company. Additionally, the Company advanced three employees an aggregate of \$76,732 at that date. All amounts are non-interest bearing and are expected to be repaid in the ordinary course of business. ### NOTE 8. LEASE ACCOUNTING-ASU 842 In connection with new FASB standard 842 regarding leases, which takes effect as of the first day of the fiscal year January 1, 2019, management has evaluated the financial impact the standards will have on the Company's financial statements using a modified retrospective transition approach. The Company's sub-lease agreement is on a month to month basis. As such, the Company does not have an obligation to record a right to use asset or an offsetting lease obligation. ### NOTE 9. 401K PLAN The Company sponsors a defined contribution plan pursuant to Internal Revenue Code Section 401(k), which covers substantially all company employees. Contributions to the plan are solely made by enrolled employees. For the year ended December 31, 2020, no contributions were made to the plan. {11}------------------------------------------------ ## NOTE 10. COMMITMENTS AND CONTINGENT LIABILITIES The Company had no lease or equipment rental commitments, no underwriting commitments, no contingent liabilities, and had not been named as defendant in any lawsuit at December 31, 2020 or during the year then ended. ## NOTE 11. GUARANTEES FASB ASC 460, Guarantees, requires the Company to disclose information about its obligations under certain guarantee arrangements. FASB ASC 460 defines guarantees as contracts and indemnification agreements that contingently require a guarantor to make payments to the guaranteed party based on changes in an underlying factor (such as an interest or foreign exchange rate, security or commodity price, an index or the occurrence or nonoccurrence of a specified event) related to an asset, liability or equity security of a guaranteed party. This guidance also defines guarantees as contracts that contingently require the guarantor to make payments to the guaranteed party based on another entity's failure to perform under an agreement as well as indirect guarantees of the indebtedness of others. The Company has issued no guarantees at December 31, 2020 or during the year then ended. ## NOTE 12. NOTE PAYABLE BANK-PAYCHECK PROTECTION PROGRAM (PPP) As of December 31, 2020, the Company has an unsecured loan outstanding in the amount of \$44,848, due to the Small Business Administration (SBA) and administered by a local bank, as part of the Coronavirus Aid, Relief and Economic Security Act (CARES Act) Paycheck Protection Program (PPP). Under the terms of the note dated May 4, 2020, the loan payments are deferred until the Company receives notification from the SBA as to the amount of the loan forgiveness. The loan terms provide that a portion or all of the loan is forgivable to the extent that the Company uses loan proceeds to fund qualifying payroll and other expenses during a designated 24-week period. On December 16, 2020, the Company received notification from the bank that its application for forgiveness of the loan had been received. {12}------------------------------------------------ ## NOTE 13. SUBSEQUENT EVENTS Subsequent events have been evaluated and no events have been identified which require disclosure. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.