# SYNERGY ADVISORS GROUP, LLC X-17A-5/A (2020-03-05) — Broker-dealer annual report
- Company: SYNERGY ADVISORS GROUP, LLC
- Form: X-17A-5/A
- Filed: 2020-03-05
- Period: 2019-12-31
- Accession: 0001260218-20-000003
- CIK: 1260218
- File #: 8-66114
- Material weakness: No
- Auditor: Alvarez & Associates, Inc.
- Auditor location: Northridge, CA
- Contact: Robert Maggiacomo
- Phone: 310-414-3201
- Signed by: Robert Maggiacomo (Managing Partner)
Original filing: https://www.sec.gov/Archives/edgar/data/1260218/000126021820000003/synergyadvisors2019pub.pdf
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Synergy Advisors Group, LLC dba Synergy Advisors, LLC Report Pursuant to Rule 17a-5 (d) Financial Statement For the Year Ended December 31,2019
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UNITED STATES SECURITIESANDEXCHANGECOMMISSION Washington, D.C. 20549
# **ANNUAL AUDITED REPORT FORM X-17A-5 PART Ill**
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| SEC FILE NUMBER |
|-----------------|
| B-69722 |
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 01/01/2019
AND ENDING 12/31/2019 | | | |
|----------------------------------------------------------------------------------------------|-------------------------------------------------------|---------------|-------------------------------|
| | MM/DD/YY | | MM/DD/YY |
| | A. REGISTRANT IDENTIFICATION | | |
| NAME OF BROKER-DEALER: Synergy Advisors Group, LLC dba Synergy Advisors, LLC | | | OFFICIAL USE ONLY |
| ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | FIRM I.D. NO. | |
| 840 Apollo Street Suite 213 | | | |
| | (No. and Street) | | |
| EISegundo | CA | | 90245 |
| (City) | (State) | | (Zip Code) |
| NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
Robert Magglacomo | | 310-414-3201 | |
| | | | (Area Code -Telephone Number) |
| | B. ACCOUNTANT IDENTIFICATION | | |
| INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report• | | | |
| Alvarez & Associates, Inc. | | | |
| | (Name- if individual, stale last, first, middle name) | | |
| 9221 Corbin Avenue, Suite 165 Northridge | | CA | 91324 |
| (Address) | (City) | (State) | (Zip Code) |
| CHECK ONE: | | | |
| I {I
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 be. supported by a statement of facts and circumstances relied on as the basis for the exemption. See Section 240.17a-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 OMB control number.
SEC 1410 (11-05)
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#### OATH OR AFFIRMATION
| I, Robert Maggiacomo | , swear (or affirm) that, to the best of | |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------|
| Synergy Advisors Group, LLC dba Synergy Advisors, LLC | my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of | , as |
| of December 31 | 20 19
are true and correct. I further swear (or affirm) that | |
| classified solely as that of a customer, except as follows: | neither the company nor any partner, proprietor, principal officer or director has any proprietary interest in any account | |
| | | |
| | | |
| | Managing Partner | |
| | Title | |
| | | |
| Notary Public | | |
| This report ** contains (check all applicable boxes):
0 (a) Facing Page. | | |
| 0 {b) Statement of Financial Condition. | D (c) Statement of Income (Loss) or, ifthere is other comprehensive income in the period(s) presented, a Statement
of Comprehensive Income (as defined in §21 0.1-02 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. | |
| | 0 U) A Reconciliation, including appropriate explanation of the Computation of Net Capital Under Rule 15c3-l and the
Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3. | |
| consolidation. | 0 (k) A Reconciliation between the audited and unaudited Statements of Financial Condition with respect to methods of | |
| 0 (I) An Oath or Affirmation.
0 (m) A copy of the SIPC Supplemental Report. | | |
| | 0 (n) A report describing any material inadequacies found to exist or found to have existed since the date ofthe previous audit. | |
| | **For conditions of confidential treatment of certain portions of this filing, see section 240.1 7a-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 C?A.tt(r(YI i6
County of
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| /DW by | Subscribed and sworn to (or affirmed) before me on this _l_l _day of ~Jo.rL{cW'"1 | |
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#### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**
To Those Charged with Governance and the Members 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, 2019, 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 , 2019, 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.
We have served as the Company's auditor since 2018. Northridge, California February 11, 2020
> **9221 Corbin Avenue Suite 165** *1t* **Northridge, California 91324 www.AAICPAs.com S**
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## Synergy Advisors Group, LLC dba Synergy Advisors, LLC Statement of Financial Condition December 31, 2019
| Assets | |
|---------------------------------------------------------------------------------------|---------------------------------|
| Cash and cash equivalents
Accounts receivable
Prepaid expenses and other assets | \$
32,112
18,713
8,203 |
| Total assets | \$
59,028 |
| Liabilities and Members' Equity | |
| Liabilities | |
| Accounts payable and accrued expenses
Income taxes payable
Total liabilities | \$
3,498
2,500
5,998 |
| Commitments and contingencies | |
| Members' equity | |
| Members' equity | 53,030 |
| Total members' equity | 53,030 |
| Total liabilities and members' equity | \$
59,028 |
The accompanying notes are an integral part of these financial statements
I
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#### 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's 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 performance obligations are completed. Accordingly, success fees are typically recorded as of the transaction date. Retainer fees are non-refundable 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.
The Company has operating leases for office space not subject to ASC 842, according to the shortterm lease exemption. The Company recognizes lease cost associated with these leases on a straightline basis over the lease term.
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.
## *Summary of 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
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### Note 1: GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
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 are immaterial.
Property and equipment are stated at cost net of accumulated depreciation, computed using the straightline method. 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 summarized by major classification as follows:
| | | Useful Life |
|--------------------------------------|-------------|-------------|
| Office equipment | \$
9.163 | 5 |
| Total cost of property and equipment | 9,163 | |
| Less: accumulated depreciation | (9,163) | |
| Property and equipment, net | \$
0 | |
Depreciation expense for the year ended December 31, 2019 was \$0 since all property and equipment had been previously fully depreciated.
### 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 Federal Income Taxes is included in these financial statements.
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## Note 3: INCOME TAXES (Continued)
The Company is subject to a California limited liability company gross receipts fee, with a minimum franchise tax. As ofDecember 31,2019, the income tax provision consists ofthe following:
| Franchise tax | \$
800 |
|----------------------------|-------------|
| Gross receipts fee | 6 000 |
| Total income tax provision | \$
6,800 |
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 oflimitations in the applicable jurisdiction. For federal purposes, the statute of limitations is three years. Accordingly, the company is no longer subject to examination offederal 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, 2019, the IRS has not proposed any adjustment to the Company's tax position.
## Note 4: OCCUPANCY
The Company maintains two offices under short-term lease renewal agreements of less than one year. Rent expenses amounting to \$40,406 is included in other operating expenses on the Statement of Operations for the year ended December 31, 2019.
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### 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 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 indebtedness of others.
The Company has issued no guarantees at December 31, 2019 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, 2019 or during the year then ended.
The Company had a net loss for the year due to non-recurring costs in outside services, but management believes this does not affect their ability to continue as a going concern. The Company's operations have sustained the Company up to date, and management believes the operations of the Company will continue to maintain the Company as a going concern. Please refer to Note 9. Subsequent Events for additional information.
The Company's business at any point in time is typically concentrated in a small number of engagements. Its business model is dependent on securing an ongoing flow of generally nonrecurring engagements and closing the associated transactions.
### Note 7: RECENTLY ISSUED ACCOUNTING STANDARDS
Effective January 1, 2019, the Company adopted the new FASB accounting standard *ASC 842, Leases,* which governs the accounting and reporting of leases by lessees. Lessor accounting and reporting is largely unchanged. ASC 842 generally applies to leases that have a lease term greater than 12 months at lease commencement, or that include an option to purchase .the underlying asset the Company is reasonably certain to exercise. ASC 842's principal changes are: 1) recognizing leases on the Statement of Financial Condition by recording a Right-of-use asset and a Lease liability; 2) changes in lease expense recognition during the lease term based on its classification as an Operating lease or Finance lease; and 3) expanded disclosures of lease agreements, costs and other matters.
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## Note 7: RECENTLY ISSUED ACCOUNTING STANDARDS
### (Continued)
The Company has two month-to-month lease agreements. These agreements are not subject to ASC 842 under the short-term exemption. As a result, the adoption of ASC 842 had no effect on the Company's financial statements for the year ended December 31, 2019.
## Note 8: NET CAPITAL REQUIREMENTS
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. 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 I. Net capital and aggregate indebtedness change day to day, but on December 31, 2019, the Company had net capital of \$26,114 which was \$21,114 in excess of its required net capital of \$5,000; and the Company's ratio of aggregate indebtedness (\$5,998) to net capital was 0.23 to 1, which is less than the 15 to 1 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 for issuance. There have been no such events that require recording or disclosure in the financial statements, except as stated below.
During January 2020, the Company closed and collected transaction fees of \$705,000 in accordance with the revenue recognition policy disclosed herein.
Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.