# INNOVATION ADVISORS LLC X-17A-5 (2022-03-30) — Broker-dealer annual report - Company: INNOVATION ADVISORS LLC - Form: X-17A-5 - Filed: 2022-03-30 - Period: 2021-12-31 - Accession: 0001368928-22-000002 - CIK: 1271545 - File #: 8-66255 - Type: Broker-dealer - Material weakness: No - Auditor: Sanford Becker & Co, PC - Auditor location: New York, NY - Contact: Alex Mack - Phone: 9179231478 - Email: amack@innovationadvisors.com - Website: innovationadvisors.com - Signed by: Eric Gebaide (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1271545/000136892822000002/iasofc2021.pdf --- {0}------------------------------------------------ #### **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** 0MB APPROVAL 0MB Number: 3235-0123 Expires: Oct. 31, 2023 Estimated average burden hours per response: 12 ## **ANNUAL REPORTS FORM X-17 A-5 PART Ill** SEC FILE NUMBER 8-66255 **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 | ----------
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202 1 | |------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|-----------------------------------------|-----------------|------------------------------| | | MWDDNY | | | MWDDNY | | | A. REGISTRANT IDENTIFICATION | | | | | Innovation Advisors LLC
NAME OF FIRM: | ---------------------------------- | | | | | TYPE OF REGISTRANT (check all applicable boxes): | | | | | | 00 Broker-dealer | D Security-based swap dealer | D 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.) | | | | | | 101 Park Avenue, 38th Floor | | | | | | | (No. and Street) | | | | | New York | NY | | 10017 | | | (City) | (State) | | (Zip Code) | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | Alex Mack | 917-923-1478 | | | amack@innovationadvisors.com | | (Name) | (Area Code -Telephone Number) | | (Email Address) | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | | | Sanford Becker & Co, PC | | | | | | | (Name - if individual, state last, first, and middle name) | | | | | 1430 Broadway, Suite 605 | New York | | NY | 10018 | | (Address) | (City) | | (State) | (Zip Code) | | 06/25/2009 | | | 3563 | | | | | | | | | | 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-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.** {1}------------------------------------------------ #### OATH OR **AFfl:RMATION** | | Eric Gebaide | |--|--------------| |--|--------------| | __________
Eric Gebai de
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swear (or affirm) that, to the best of my knowledge and belief, the | | |-----------------------------------------------|---------------------------------------------------------------------------------|----------| | financial report pertaining to the firm of | lC
Innovation Adviso
rs l | ,, as of | December 3~ , *2* 021 , is true and correct. I further swear (or affirm) tha,t e ither the company nor any partner, officer, d'1rector, or equivalent person, as the case may be, has any proprietary interest in any acco1:mt classified solely as that of a customer. / k'ov-e rrt.e -+lu~. zs J\J'l.\l *R* - - ~P,.C-~ ,EDV:J,.. - CHERYL A. Rdzil \_ ~~~fb'~b~~-9~'!'-?'-1', otmtw Pu!Jllc, Slolo of New York / No. Ol li!04 728234, Svlfolk Cou~.,. Torm or.pirt\$ Nov. 30,atel c..-~ | / | |---| | | Title ; CEO #### Th,s filing""' contt1,ns (Gheck afl applicable bo111:es): - IKI (al Statement of financial cond ition. - IXI (b) Notes to consolidated statement ot tlna,ndal condition. - 0 (c), Statement of income (loss) or, if there is othe,r comprehensive income in the perlodlsl presented, a statement cf comprehensive [ncome (as defined i1n § 210.1-02 of Regu1ation S-X),. - □ ( d) Statement of cash ows. - D (e) Statemen,t of changes in stockholders' or p,artners' or sole ,proprieto.r-'s equitv. - D (f) Stateme nt ot d1.anges in Oab lliUes subordinated to da ims of ored,tors. - O (S) Notes to consolidated financial statements. - 0 (h) Computation ofnetcapita,I under 17 CFR 240.1Sc3·1 or 17 CFR 240.18a,-l, as applicable. - □ (i) Computation of tangib'le net worth under 17 CFR 240.lSa-2. - 0 U) C.ompiJtation for determina,tion of customer res.efve requirements purs1Jant to Exhibit A. to 17 CfR 240.1Sc3·3. - □ (kl Computation for determination of security-based s.wap reserve requirements. pursuant to Exhibit B to 17 CFR 240.1Sc3-3 or Exhibit A *to* 17 CFR 240.18a-4, as applicable. - D (I) Computa,Uon for Determination of PAB Requirements under Exhibi,t A to§ .240.15c3•3. - D (m), 11nforma,tion re:lating to possession or control requirements fof customers under 17 CFR 240.t5c3 -3. - □ (n) Information relating to possession or contro1 requirements for security-based swap ou,s.tome-rs under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.18a,4, as a:ppHcable. - O (o) Rec-0ncl1liations. including appropriate e>cplanations, ohhe FOCUS Report with computation of *net* capital or ta"gJb1e net worth t.mde,r 17 CFR 2.40 . .1Sc3~1, 17 CFR 240.t8a-1, or 17 OFR 240 . .18a-2, as appHcable, and the reserve ~quirements under 17 CFR 240.15c3-3 or 17 OFR 240.1.Sa-4, as applicable; If material differences exl1st,, or a statement that no materia,I diffe,rences exist - D (p) Summary of financial data fur subsidiaries not consolidated in the statement of financial condition . - i] (q) Oath or affirmation in accordance with 17 CFR 240,17a-5, 17 OFR 240.17a-12, or 17 CfR 240.18a-7, as applicable. - □ i(r) Compltance report in accordance with 17 Cf R 240-17a•5or 17 OFR 240.18a-7, as applicable. - O {5) Exemption report in acco.rdanoe with 17 CFR 240.Ha-S or 17 CFR 240.18a-7,. as applicable. - I) (t)i Independent ,public accountant's ,report based on an examination of the sta,tement of financial condition. - O (u) Independent public. accountant's report based on an e:icaminat1on of th e financial report or financial statements unde.r l7 ·CfR 240.17a-5,. 17 CFR 240.18a•7, or 17 CFR 240.17a -12, as applicable. - 0 M Independent public acco ~ntant's report based on an examination of certain statements iin the compHance report under 17 **CFR 240.17a-S or** 17 OFR 240.18a•7, as applicable. - 0 (w) Independent putili.c accountant's report based on a, ieview of th,e exempti:on report: under 17 CFR 240.17a·5 or H **CFR 240.lSa-7, as applicable.** - D (x) Supplemental reports on app!lyln@ agreed-upon procedt,res, in accordance wiith 17 CFR 240.1 5c3-1e or 17 CFR 240.17a-12, **as applicable.** - D M **Report** describing any material lnadequaci,es found tAccounts payable and accrued expenses | \$ | 12,228 | | Total liabilities | | 12,228 | | Member's equity | | 88,803 | | TOTAL LIABILITIES AND MEMBER'S EQUITY | \$ | 101 031 | {5}------------------------------------------------ **Notes to Statement of Financial Condition December 31, 2021** ### **NOTE 1. ORGANIZATION AND BASIS OF PRESENTATION** Innovation Advisors, LLC (the "Company") is a single member limited liability company. The single member is Innovation Advisors Holdings LLC, a Delaware limited liability Company. The Company was organized under the laws of the State of New York on June 9, 2003. The Company is a broker-dealer in securities registered with the Securities and Exchange Commission ("SEC") and is a member of the Financial Industry Regulatory Authority ("FINRA") and the Securities Investor Protection Corporation ("SIPC"). The Company provides investment banking services to middle-market technology companies. It also provides strategic advisory services related to merger and acquisitions as well as assisting IT companies' efforts to raise capital through private placements. ### **NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** #### Revenue Recognition The Company's revenue from investment banking and service fees is based on established agreements between the Company and its clients. Revenue is recognized at a point in time based on identified performance obligations in the contract, a determined transaction price for each performance obligation, and the satisfaction of each performance obligation. ### Use of Estimates The preparation 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 reported amounts of revenues and expenses during the reporting period. Actual results could differ from the estimates. #### Treatment of Leases The Company does not apply the recognition requirements of ASC 842 to short-term leases. A short-term lease has a term at commencement of twelve months or less and does not include a purchase option. #### **NOTE 3. CONCENTRATION OF CREDIT AND MARKET RISK** The Company maintains its cash in a bank account that, at times, may exceed the federal insurance limit of \$250,000. {6}------------------------------------------------ **Notes to Statement of Financial Condition December 31, 2021** #### **NOTE 4. RELATED-PARTY TRANSACTIONS** The Company has an expense sharing agreement with its member whereby certain overhead expenses, are allocated to the Company. The Company has paid the member in advance for these costs, and maintains a prepaid balance with the member, which totals \$7,200 at December 31 , 2021 , reflected in Prepaid Expenses and other Assets on the Statement of Financial Condition. During the year \$7,200 was charged to the Company as follows: | Rent | \$3,000 | |------------------------|---------| | Miscellaneous services | 4,200 | | Total | \$7 200 | #### **NOTE 5. INCOME TAXES** The Company is a single-member limited liability company and is treated as a "disregarded entity" for federal and New York State income tax purposes. The Company's assets, liabilities, and items of income, deduction, and tax credits are treated as those of its member owner, who is responsible for any taxes thereon. The Company's allocated share of local taxes, if any, is included in the accompanying statement of operations. The Company recognizes and measures its unrecognized tax benefits in accordance with F ASB ASC 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. With few exceptions, the measurement of unrecognized tax benefits is adjusted when new information is available, or when an event occurs that requires a change. #### **NOTE 6. NET CAPITAL REQUIREMENTS** The Company is subject to the SEC's Uniform Net Capital Rule ("SEC Rule 15c3-l"), which requires the maintenance of minimum net capital and that the ratio of aggregate indebtedness to net capital, both as defined, not exceed 15 to 1. At December 31 , 2021 , the Company had net capital of \$74,749, which exceeded the Company's minimum net capital requirement of \$5,000 by \$69,749. The Company's percentage of aggregate indebtedness to net capital was 0.16 to 1 at December 31 , 2021. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.