# SYNERGY ADVISORS GROUP, LLC X-17A-5 (2019-03-27) — Broker-dealer annual report - Company: SYNERGY ADVISORS GROUP, LLC - Form: X-17A-5 - Filed: 2019-03-27 - Period: 2018-12-31 - Accession: 0001260218-19-000001 - CIK: 1260218 - File #: 8-66114 - Material weakness: No - Auditor: Alvarez & Associates, Inc. - Auditor location: Northridge, CA - Contact: Robert M. Maggiacomo - Phone: 3104143201 - Signed by: Robert M. Maggiacomo (Managing Partner) Original filing: https://www.sec.gov/Archives/edgar/data/1260218/000126021819000001/synergyadvisors2018pub1.pdf --- {0}------------------------------------------------ Syne1·gy Advisors Group, LLC dha Synergy Advisors, LLC Report Pursuant to Ruic 17a-5 (d) Financial Statement For the Year Ended December 31, 2018 {1}------------------------------------------------ **UNITEDSTATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** # **ANNUAL AUDITED REPORT FORM X-17A-5 PART Ill** | 0MB APPROVAL | | | | |---------------------------|-----------------|--|--| | 0MB Number: | 3235-0123 | | | | Expires: | August 31, 2020 | | | | Estimated average burden | | | | | hours per response 12.00 | | | | | SEC FILE NUMBER | |-----------------| | 8-66114 | FACING **PAGE Information Required** of **Brokers and Dealers Pursuant** to **Section 17 of the Securities** Exchange **Act of 1934 and Rule** 17a-5 **Thereunder** | REPORT FOR THE PERIOD BEGINNING | ____
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MMIDD/YY | | |--------------------------------------------------------------------------------------------------------|--------------------------------------------------------|-------------------|------------------------------------------------|--| | | | | | | | | A. REGISTRANT IDENTIFICATION | | | | | NAME oF BROKER-DEALER: Synergy Advisors, LLC | | OFFICIAL USE ONLY | | | | ADDRESS OF PRINC[PAL PLACE OF BUS[NESS: (Do not use P.O. Box No.) | | | FIRM I.D. NO. | | | 840 Apollo Street, Suite 213 | | | | | | | (No. and Street) | | | | | El Segundo | CA | | 90245 | | | (City) | (State) | | (Zip Code) | | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
Robert Magglacomo | | | | | | | | | 310-414-3201
(Arca Code - Telephone Number) | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report*
Alvarez & Associates, Inc. | | | | | | | (Name - if individual, staff last, first, middle name) | | | | | | | | | | | 9221 Corbin Avenue, Suite 165 Northridge
(Address) | | CA | 91324 | | | | (City) | (State) | (Zip Code) | | | CHECK ONE: | | | | | | !certified Public Accountant | | | | | | Public Accountant | | | | | | B
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 an independent public accountant must b: ~·upported by a statement of facts and circumstances relied on as the basis for the exemption. See Section 240, !7a-5{e)(2)* > **Potential 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 0MB control number. SEC 1410 (11-05) {2}------------------------------------------------ #### **OATH OR AFFIRMATION** 1, Robert **M.** Maggiacomo , swear ( or affirm) that, to the best of my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of \_\_:\_ Synergy ....::..:.. \_\_\_ Advisors. \_LLC \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ , as of December 31 20 ~-' are true and correct. I further swear ( or afti rm) that neither the company nor any partner, proprietor, principal officer or director has any proprietary interest in any account classified solely as that of a customer, except as follows: Managing Partner Title Notary Public This report \*\* contains (check all applicable boxes): **0** (a) Facing Page. - 0 (b) Statement of Financial Condition. - 0 (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 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 I 5c3-3. - (i) Information Relating to the Possession or Control Requirements Under Rule 15c3-3. - **D** (j) A Reconciliation, including appropriate explanation of the Computation ofNet Capital Under Rule 15c3-l and the Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3. - **0** (k) A Reconciliation between the audited and unaudited Statements of Financial Condition with respect to methods of con so Ii dation. - (I) An Oath or Affirmation. - § (m) A copy of the SIPC Supplemental Report. - (n) 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(e}(3).* **A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.** State of *{Ah Gm* i~i" u:,MO
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• Notary Public • Callfornla | ![](_page_2_Picture_29.jpeg) {3}------------------------------------------------ ![](_page_3_Picture_0.jpeg) # REPORT Of INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Directors and Equity Owners of Synergy Advisors Group, LLC dba Synergy Advisors, LLC: #### Opinion on the Financial Statement We have audited the accompanying statement of financial condition of Synergy Advisors Group, LLC dba Synergy Advisors, LLC(the "Company") as of December 31, 2018, and the related notes (collectively referred to as the "financial statement"). In our opinion, the statement of financial condition presents fairly, in all material respects, the financial position of the Company as of December 31, 2018 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 statements. 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 statements. We believe that our audit provides a reasonable basis for our opinion. ~&-~/ *W-,* Alvarez & Associates, Inc. We have served as **the** Company's auditor since 2018. Northridge, California March 26, 2019 ![](_page_3_Picture_12.jpeg) {4}------------------------------------------------ # **Synergy Advisors Group, LLC dba Synergy Advisors, LLC Statement of Financial Condition December 31, 2018** #### **Assets** | Cash and cash equivalents | \$
147,601 | |-----------------------------------|---------------| | Accounts receivable | 7,500 | | Prepaid expenses and other assets | 10,749 | | Total assets | \$
165,850 | #### **Liabilities and Members' Equity** #### **Liabilities** Accounts payable and accrued expenses **Total liabilities** Commitments and contingencies **Members' equity** Members' equity **Total members' equity Total liabilities and members' equity** \$ \$ 37,951 37,951 127,899 127,899 165,850 {5}------------------------------------------------ # **Synergy Advisors Group, LLC dba Synergy Advisors, LLC Notes to Financial Statement December 31, 2018** #### **Note 1: GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** #### *General* Synergy Advisors Group, LLC dba Synergy Advisors, **LLC** (the "Company") was organized in the State of California on November 24, 2003. The Company is a registered broker-dealer in securities under the Securities and Exchange Act of 1934, a member of the Financial Industry Regulatory Authority ("FINRA"), and the Securities Investor Protection Corporation ("SIPC"). The Company is engaged in business as a securities broker-dealer, specifically as an investment banking advisory boutique focused on providing advisory services to companies and financial buyers relating to mergers and acquisitions (buy-side, sell-side, and valuations), corporate finance matters ( capital structure and financing alternatives), as well as agenting private placements financings. The Company earns fees providing the advisory services described in the preceding Note 1: General business description. These revenues include retainer, success and services fees. In each case, revenue is recognized in accordance with ASC Topic 606, Revenue from Contracts with Customers. Generally, this first involves the identification of the revenue amount, or transaction price; and its allocation among the required performance obligations; all as set forth in the terms of the engagement agreement. Then, revenue is recognized when earned on this basis, meaning the revenue amount is fixed or reasonably determinable; collection is probable; and the associated perfonnance obligations are completed. Accordingly, success fees are typically recorded as of the transaction date. Retainer fees are nonrefundable and recorded as the required services are performed. Other fee income is recorded as earned from on-going business agreements. Other fee income is subject to material variables; therefore, uncertain for estimating in advance. Commission expense is recorded in the same period as the associated revenue. Although the Company works with clients in various industries, it has a focus in the various health care, life science and IT/BPO sectors. Under its membership agreement with FINRA and pursuant to Rule 15c3-3(k)(2)(i), the Company does not execute or clear securities transactions for customers. Accordingly, the Company is exempt from the requirement of Rule 15c3-3 under the Securities Exchange Act of 1934 pertaining to the possession or control of customer assets and reserve requirements. {6}------------------------------------------------ ## **Synergy Advisors Group, LLC dba Synergy Advisors, LLC** # **Notes to Financial Statement** #### **December 31, 2018 Note 1: GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)** ### *Summary ~/"Significant Accounting Policies* The presentation 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 revenue and expenses during the reporting period. Actual results could differ from those estimates. For purposes relating to 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. The Company also includes CDs as cash equivalents Accounts receivable are stated at face amount with no allowance for doubtful accounts. An allowance for doubtful accounts is not considered necessary because probable uncollectible accounts arc immaterial. Property and equipment are stated at cost. Repairs and maintenance to these assets are charged to expense as incurred; major improvements enhancing the function and/or useful life are capitalized. When items are sold or retired, the related cost and accumulated depreciation are removed from the accounts and any gains or losses arising from such transactions are recognized. ## **Note 2: PROPERTY AND EQUIPMENT, NET** Property and equipment are recorded net of accumulated depreciation and summarized by major classification as follows: | | Useful Life | | |--------------------------------------|------------------|--| | Office equipment | \$
9.163
5 | | | Total cost of prope1ty and equipment | 9,163 | | | Less: accumulated depreciation | (9.163) | | | Property and equipment, net | \$
0 | | Depreciation expense for the year ended December 31, 2018 was \$0 since all property and equipment had been previously fully depreciated. {7}------------------------------------------------ # **Synergy Advisors Group, LLC dba Synergy Advisors, LLC Notes to Financial Statement December 31, 2018** #### **Note 3: INCOME TAXES** The Company, with the consent of its Members, has elected to be a California Limited Liability Company. For tax purposes the Company is treated like a partnership, therefore in lieu of business income taxes, the Members are taxed on the Company's taxable income. Accordingly, no provision or liability for Pederal Income Taxes is included in these financial statements. The Company is required to file income tax returns in both federal and state tax jurisdictions. The Company's tax returns are subject to examination by taxing authorities in the jurisdictions in which it operates in accordance with the normal statutes of limitations in the applicable jurisdiction. For federal purposes, the statute of limitations is three years. Accordingly, the company is no longer subject to examination of federal returns filed more than three years prior to the date of these financial statements. The statute of limitations for state purposes is generally three years, but may exceed this limitation depending upon the jurisdiction involved. Returns that were filed within the applicable statute remain subject to examination. As of December 31, 2018, the IRS has not proposed any adjustment to the Company's tax position. ## **Note 4: OCCUPANCY** The lease for the Company's main office was amended eifoctive February 1, 2018 to be a one year lease. The lease was subsequently amended effective February I, 2019 to be on a month-to-month basis. Rent expense also includes the rent for a satellite office under a semi-annual lease. {8}------------------------------------------------ # **Synergy Advisors Group, LLC dba Synergy Advisors, LLC Notes to Financial Statement December 31, 2018** ### **Note 5. GUARANTEES** F ASB ASC 460, Guarantees, requires the Company to disclose information about its obligations under certain guarantee arrangements. F ASB 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 occu1Tence or nonoccurrencc 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 indebtedness of others. The Company has issued no guarantees at December 31, 2018 or during the year then ended. ## **Note 6: COMMITMENTS AND CONTINGENCIES** The Company had no commitments, no contingent liabilities and had not been named as defendant in any lawsuit at December 31, 2018 or during the year then ended. ## **Note 7: RECENTLY ISSUED ACCOUNTING STANDARDS** In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which supersedes the existing guidance for ]ease accounting. ASU 2016-02 requires lessees to recognize leases with terms longer than 12 months on their statements of financial condition. It requires different patterns of recording lease expense for finance and operating leases. It also requires expanded lease agreement disclosures. Lessor accounting is largely unchanged. ASU 2016-02 is effective for the Company as of its year ending December 31, 2019. The Company believes that ASU 2016-02 will not have a material impact on its financial statements. {9}------------------------------------------------ # **Synergy Advisors Group, LLC (Jba Synergy Advisors, LLC Notes to Financial Statement December 31, 2018** #### **Note 7: RECENTLY ISSUED ACCOUNTING STANDARDS** #### **(Continued)** Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers: Topic 606, also referred to as Accounting Standards Codification Topic 606 ("ASC Topic 606"), supersedes nearly all existing revenue recognition guidance under GAAP. ASC Topic 606 requires a principle-based approach for determining revenue recognition. The core principle is that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASC Topic 606 is effective for the Company as of its year ended December 31, 2018. ASC Topic 606 had no material impact on the Company's financial statements. # **Note 8: NET CAPITAL REQUIREMENTS** The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (SEC rule 15c3-l), 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. Rule 15c3-1 also provides that equity capital may not be withdrawn or cash dividends paid if the resulting net capital ratio would exceed 10 to 1 . Net capital and aggregate indebtedness change day to day, but on December 31, 2018, the Company had net capita] of \$109,650 which was \$104,650 in excess of its required net capital of \$5,000; and the Company's ratio of aggregate indebtedness (\$37,951) to net capital was 0.35 to I, which is less than the 15 to l maximum allowed. ## **Note 9: SUBSEQUENT EVENTS** The Company has evaluated events and transactions after the date of the Statement of Financial Condition through the date the financial statements were available to be issued. The Company has determined that there no items requiring recognition or disclosure **in** the financial statements. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.