# SYNERGY ADVISORS GROUP, LLC X-17A-5 (2024-02-28) — Broker-dealer annual report - Company: SYNERGY ADVISORS GROUP, LLC - Form: X-17A-5 - Filed: 2024-02-28 - Period: 2023-12-31 - Accession: 0001260218-24-000002 - CIK: 1260218 - File #: 8-66114 - Type: Broker-dealer - Material weakness: No - Auditor: DCPA - Auditor location: Century City, CA - Contact: Robert Maggiacomo - Phone: 3104143201 - Email: bob@synergyadvisorsllc.com - Website: synergyadvisorsllc.com - Signed by: Robert M Maggiacomo (Managing Partner) Original filing: https://www.sec.gov/Archives/edgar/data/1260218/000126021824000002/synergyaudit23public1.pdf --- {0}------------------------------------------------ Synergy Advisors Group, LLC dba Synergy Advisors, LLC Financial Statement For the Year Ended December 31, 2023 {1}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** # **ANNUAL REPORTS FORM X-17A-5** **PART** Ill | 0MB APPROVAL | |---------------------------| | 0MB Number: 3235-0123 | | Expires: Nov. 30, 2026 | | Estimated average burden | | hours per response:
12 | | | | | #### SEC FILE NUMBER 8-66114 **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 **0 1/01 /23** MM/DD/YY AND ENDING **12/31 /23** MM/DD/YY **A. REGISTRANT IDENTIFICATION** NAME OF FIRM: SYNERGY ADVISORS GROUP, LLC OBA SYNERGY ADVISORS, LLC TYPE OF REGISTRANT (check all applicable boxes): [!] Broker-dealer □ Security-based swap dealer D Check here if respondent is also an OTC derivatives dealer D Major security-based swap participant ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) # 880 APOLLO STREET SUITE 230 | | (No. and Street) | | | | |----------------------------------------------|--------------------------------|----------------------------|--|--| | EL SEGUNDO | CA | 90245 | | | | (City) | (State) | (Zip Code) | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | Robert M. Maggiacomo (310) 414-3201 | | bob@synergyadvisorsllc.com | | | | (Name) | (Area Code - Telephone Number) | (Email Address) | | | | | B. ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing\* ## DCPA (Name - if individual, state last, first, and middle name) 2121 Avenue of the Stars #800 Century City California 90067 (Address) (City) (State) (Zip Code} 9/15/2020 6567 **l" of RegistcaUoa with PCAOB)(if applicable) FOR OFFICIAL USE ONLY [PCAOB RegostcaUoo Nombe-, ,f applicable)** I . \* 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-S(e)(l}(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 0MB control number.** {2}------------------------------------------------ #### **OATH OR AFFIRMATION** I, Robert M. Maggiacomo swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of SYNERGY ADVISORS GROUP, LLC OBA SYNERGY ADVISORS, LLC as of **12/31** 2~, 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. #### **See Attached California Certificate** | | SignaturBiblier & M. Moggia como | | |--------|----------------------------------|--| | Title: | Managing Partner | | | | | | Notary Public #### **This filing\*\* contains (check all applicable boxes):** - **lii!ii** (a) Statement of financial condition . - **lii!ii** (b) Notes to consolidated statement of financial condition . - D (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 (d) Statement of cash flows. - D (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - □ (f) Statement of changes in liabilities subordinated to claims of creditors. - D (g) Notes to consolidated financial statements. - D (h} Computation of net capital under 17 CFR 240.1Sc3-1 or 17 CFR 240.18a-l, as app licable. - □ (i) Computation of tangible net worth under 17 CFR 240.18a-2. - D (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - D (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. - D (I} Computation for Determination of PAB Requirements under Exhibit A to§ 240.15c3-3. - D (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - D (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. - D (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. - D (p} Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - **lii!ii** (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. - D (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - D (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - **lii!ii** (t) Independent public accountant's report based on an examination of the statement of financial condition. - D (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. - D (v) Independent public accountant's report based on an exam ination of certain statements in the compliance report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - D (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. - D (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-le or 17 CFR 240.17a-12, as applicable. - D (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.l 7a-12(k). D (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. {3}------------------------------------------------ #### **CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE § 1189** 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 California | | | | | | |--------------------------|-----------------|------|----|-------------------------------------------|---------------| | Los Angeles
County of | | | | | | | 2/
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before me, | | | Amanda Lee Borgstrom, | Notary Public | | Oat~
f | | | | Here Insert Name and Title of the Officer | | | personally appeared | Ko~v:±= N . | f\A~ | | g, a co mo | | | | | | m1 | e(s/ of Signer(s) | | | | | | | | | who proved to me on the basis of satisfactory evidence to be the person~ whose namej.sr is/3/.~ subscribed to the within instrument and acknowledged to me that he/\$Me/t9ey executed the same in his/t}er/t~ ir authorized capacity(i~s), and that by his/~r/tt;i~r signaturees,' on tlie instrument the person{a or the entity upon behalf of which the person,(i) acted, executed the instrument. ![](_page_3_Picture_6.jpeg) | I certify under PENAL TY OF PERJURY under the laws | |-----------------------------------------------------------| | of the State of California that the for
oing paragraph | | | | | Place Notary Seal Above *----------------oPTTONAL----------------* Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. | Description of Attached Document | | | | |----------------------------------------------------------------------|---------------------------------------------------------|-----------------------|----------------------------| | Title or Type of Document: | _____________ | | ________
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Signer(s) Other Than Named Above:
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□ General | | □ Individual
□ Attorney in Fact | | □ Individual | □ Attorney in Fact | | □ Trustee | □ Guardian or Conservator | □ Trustee | □ Guardian or Conservator | | ______________
Other: | _ | □ Other: | _____________
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_ | | | | | | | ©2014 National Notary Association • www.NationalNotary.org • 1-800-US NOT ARY (1-800-876-6827) Item #5907 {4}------------------------------------------------ #### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** **p** 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 , 2023, 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 , 2023 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. **OOPA** DCPA We have served as the Company's auditor since 2022. Century City, California February 22, 2024 {5}------------------------------------------------ ## **Synergy Advisors Group, LLC dba Synergy Advisors, LLC Statement of Financial Condition December 31, 2023** #### **Assets** | Cash | \$
3,520 | |-----------------------------------|---------------| | Investment, at market value | 216,958 | | Prepaid expenses and other assets | 19,157 | | Right of Use Asset -
office | 70,928 | | Total assets | \$
310,563 | #### **Liabilities and Members' Equity** #### **Liabilities** | Accounts payable and accrued expenses | \$
12 | |---------------------------------------|---------------| | Other taxes payable | 300 | | Lease Liability -
Office | 70,928 | | Total liabilities | ,240
71 | | Commitments and contingencies | | | Members' equity | | | Members' equity | 239,323 | | Total members' equity | 239,323 | | Total liabilities and members' equity | \$
310,563 | {6}------------------------------------------------ #### **Note 1: GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** #### *General* Synergy Advisors Group, LLC dba Synergy Advisors, LLC (the "Company") was organized according to the laws of the State of Delaware on July 31 , 2003 and has been registered to do business in the State of California. 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. Although the Company works with clients in various industries, it has a focus in the various health care, life science and IT/BPO sectors. #### *Summary of Significant Accounting Policies* The presentation 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 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. The Company's revenues include retainer, success fees and other fee income. 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 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. There were no open contracts at December 31 , 2023. Commission expense is recorded in the same period as the associated revenue. 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. {7}------------------------------------------------ # **Note 1: GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)** *Summary of Significant Accounting Policies (continued)* 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--'-'1'-=-6-=-3 | 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 , 2023 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 Limited Liability Company. For Federal Income 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. In addition to minimal Delaware LLC fees, the Company is subject to a California limited liability company gross receipts fee, with a minimum franchise tax. The Company elected to take advantage of the California Pass through Entity Tax ("PTE"). This permits the Company to pay an entity level tax on pass-through income and treat the elective tax as a tax on the PTE. During the year ended December 31 , 2023, the Company elected to pay PTE tax for its members. {8}------------------------------------------------ #### **Note 4: LEASE** The Company is a lessee in a non-cancelable operating lease for office space subject to ASC 842. The lease agreement does not include a termination or renewal option for either party, or restrictive financial or other covenants. The components of lease cost for the year ended December 31 , 2023, are as follows: | Operating lease cost | \$60,198 | |----------------------------|----------| | Variable lease cost | | | Total operating lease cost | \$60,198 | Amounts reported in the Statement of Financial Condition as of December 31 , 2023 are as follows: Operating lease: | Right-of-use asset | \$70,928 | |--------------------|----------| | Lease liability | \$70,928 | Future minimum lease payments under the non-cancelable operating lease as of December 31 , 2023, are as follows: | 2024 | \$69,971 | |-----------------------------------|----------| | 2025 | 5,865 | | Total undiscounted lease payments | \$75,836 | Other information as of December 31 , 2023 : The discount rate used for the lease present value calculation is its incremental borrowing rate ("IBR") of 0% at the lease's commencement date. #### **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 , 2023 or during the year then ended. {9}------------------------------------------------ #### **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 , 2023 or during the year then ended. 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 PRONOUNCEMENTS** The Financial Accounting Standards Board (the "FASB") has established the Accounting Standards Codification ("Codification" or "ASC") as the authoritative source of generally accepting accounting principles ("GAAP") recognized by the F ASB. The principles embodies in the Codification are to be applied by nongovernmental entities in the preparation of financial statements in accordance with GAAP in the United States. New accounting pronouncements are incorporated into the ASC through the issuance of Accounting Standards Updates ("ASU's"). For the year ending December 31 , 2023, various ASU' s issued by the F ASB were either newly issued or had effective implementation dates that would require their provisions to be reflected in the financial statements for the year then ended. The Company has either evaluated or is currently evaluating the implications, if any, of each of these pronouncements and the possible impact they may have on the Company's financial statements. In most cases, management has determined that the pronouncement has either limited or no application to the Company and, in all cases, implementation would not have a material impact on the financial statements taken as a whole. #### **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 1. Net capital and aggregate indebtedness change day to day, but on December 31 , 2023, the Company had net capital of \$219,384 which was \$214,384 in excess of its required net capital of \$5,000; and the Company's ratio of aggregate indebtedness (\$312) to net capital was 0.0014 to 1, which is less than the 15 to 1 maximum allowed. {10}------------------------------------------------ #### **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 other such events that require recording or disclosure in the financial statements. #### **Note 10: INVESTMENT, AT MARKET VALUE** F ASB 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 assets 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 F ASB 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 - Quoted prices in active markets for identical securities. Level 2 - Observable inputs other than quoted prices included in level 1, such as quoted prices for similar securities in active markets; quoted prices for identical or similar securities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data (Including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) Level 3 - Pricing inputs are unobservable that are significant to the fair value measurement and include situations where there is little if any market activity for the investment. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. 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 , 2023 . | Assets | Level 1 | Level 2 | Level 3 | Total | |-----------------------------------|---------------|-----------------|---------|--------------| | Investments, at fair market value | \$
216,958 | ___
~\$
_ | \$ | 216958
\$ | | TOTALS | \$
216 958 | =-=\$=== | \$ | 216958
\$ | {11}------------------------------------------------ #### **Note 10: INVESTMENT, AT MARKET VALUE (Continued)** Investment held by the Company consist of certificate of deposit greater than 3 months. Investment is classified as trading securities and stated at their fair market value based on quoted prices in active markets. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.