# SILVERGROVE ADVISORS LLC X-17A-5 (2024-02-29) — Broker-dealer annual report - Company: SILVERGROVE ADVISORS LLC - Form: X-17A-5 - Filed: 2024-02-29 - Period: 2023-12-31 - Accession: 0001467068-24-000001 - CIK: 1467068 - File #: 8-68301 - Type: Broker-dealer - Material weakness: No - Auditor: Cropper Accountancy - Auditor location: Walnut Creek, CA - Contact: Elizabeth Collins - Phone: 415-246-9169 - Email: bmoloney@silvergroveadvisors.com - Website: silvergroveadvisors.com - Signed by: Brian Moloney (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1467068/000146706824000001/2023sgapublic.pdf --- {0}------------------------------------------------ # SILVERGROVE ADVISORS LLC (SEC ID No. 8-68301) ### FINANCIAL STATEMENT DECEMBER 31, 2023 #### PUBLIC DOCUMENT Filed Pursuant to Rule 17-A-5(e)(3) as a Public Document {1}------------------------------------------------ **PUBLIC** **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** OMBAPPROVAL 0MB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12 ### **ANNUAL REPORTS FORM X-17A-5 PART Ill** SEC FILE NUMBER 8-68301 **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 | ----------
01/01/23 | AND ENDING | -----------
12/31/23 | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|-----------------------------------------|--------------------------------------------------| | | MM/DD/YY | | MM/DD/YY | | | A. REGISTRANT IDENTIFICATION | | | | NAME OF FIRM: Silvergrove Advisors LLC | | | | | TYPE OF REGISTRANT (check all applicable boxes):
D Security-based swap dealer
~ Broker-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.) | | | | | 110 W. 40th Street, Suite 302 | | | | | | (No. and Street) | | | | New York | New York | | 10018 | | (City) | {State) | | {Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | Brian M. Moloney | (212) 878-8858 | | bmoloney@silvergroveadvisors.com | | {Name) | {Area Code - Telephone Number) | {Email Address) | | | | B. ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | | Cropper Accountancy Corporation | (Name - if individual, state last, first, and middle name) | | | | | | | | | 2700 Ygnacio Valley Blvd, Suite 270
(Address) | Walnut Creek
{City) | California
(State) | 94598
{Zip Code) | | | | | | | March 4 2009 | 3381 | | | | rte of RegistcaUo, with PCAOB)lif applicable] | | | I
(PCAOB Registcatioo N, mbe,, ,f applicable] | | | 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-5(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, Brian M. Moloney swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of Silvergrove Advisors LLC , as of \_\_\_\_\_\_\_\_\_ D\_e\_c\_e\_m\_b\_e\_r \_3\_,1 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. ![](_page_2_Figure_3.jpeg) Sign~..\_ *L~,* ~Title: *)&* ~? *a\_12 1-,1y,p--* Notary Public #### **This filing\*\* contains (check all applicable boxes):** - 0 (a) Statement of financial condition. - g (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) Statement of cash flows. - (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. - (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. - (i) Computation of tangible net worth under 17 CFR 240.18a-2. - (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. - (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.15c3-3. - (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - (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. - (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. - ~ (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. - (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - !YI' (t) Independent public accountant's report based on an examination of the statement of financial condition. - (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. - (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - (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. - (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-le or 17 CFR 240.17a-12, as applicable. - (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 240.17a-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}------------------------------------------------ ## **SILVERGROVE ADVISORS LLC** ### **TABLE OF CONTENTS** | Report of Independent Registered Public Accounting Firm | 2 | |---------------------------------------------------------|-----| | Statement of Financial Condition | 3 | | Notes to the Financial Statement | 4-7 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) 2700 Ygnacio Valley Road, Ste 270 Walnut CreeK, CA 94598 (925) 932-3860 tel (925) 476-9930 efax www.cropperaccountancycom #### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Member of Silvergrove Advisors LLC #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Silvergrove Advisors LLC as of December 31, 2023, 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 Silvergrove Advisors LLC 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 Silvergrove Advisors LLC's management. Our responsibility is to express an opinion on Silvergrove Advisors LLC'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 Silvergrove Advisors LLC 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 opm1on. ~~=:!~ We have served as Silvergrove Advisors LLC's auditor since 2024. Walnut Creek, California February 29, 2024 {5}------------------------------------------------ ### **SIL VERGROVE ADVISORS LLC** #### **STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2023** #### **ASSETS** | Cash and cash equivalents | \$
2,786,500 | |-----------------------------------------------------------------|-----------------| | Accounts receivable | 28,000 | | Prepaid expenses and other assets | 27,164 | | Property and equipment, net of \$3,605 accumulated depreciation | 2,838 | | Operating lease right-of-use asset | 138,606 | | Total assets | \$
2,983,108 | #### **LIABILITIES AND MEMBER'S CAPITAL** | Liabilities | | |----------------------------------------|-----------------| | Accounts payable | \$
12,023 | | Operating lease liability | 138,606 | | Total liabilities | 150,629 | | Member's capital | 2,832,479 | | Total liabilities and member's capital | \$
2,983,108 | The accompanying notes are an integral part of this financial statement. {6}------------------------------------------------ ### **SILVERGROVE ADVISORS LLC** #### **NOTES TO THE FINANCIAL STATEMENT DECEMBER 31, 2023** #### **1. The Company** Silvergrove Advisors LLC, a New Jersey limited liability company, (the "Company") is a broker-dealer registered with the Securities and Exchange Commission ("SEC"), and a member of the Financial Industry Regulatory Authority, Inc. ("FINRA"). The Company, located in New York, New York, assists companies in raising capital through the private placement of securities and provides advisory services related to mergers and acquisitions. As a limited liability company, the liability of the managing member is limited to the value of his membership interest. #### **2. Significant Accounting Policies** #### *Basis of Presentation* The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). #### *Use of Estimates* The preparation of financial statements in conformity with U.S. GAAP may require management to make estimates and assumptions that affect certain reported amounts and disclosures during the reporting period. Actual results could differ from those estimates. #### *Fair Value of Financial Instruments* Unless otherwise indicated, the fair values of all reported assets and liabilities that represent financial instruments approximate the carrying values of such amounts. #### *Cash and Cash Equivalents* For purposes of the statement of cash flows, the Company considers all highly liquid investments, with a maturity of three months or less at the time of purchase, to be cash equivalents. #### *Accounts Receivable* Accounts receivable represents amounts that have been earned and billed to clients in accordance with the terms of the Company's engagement letters with respective clients that have not yet been collected. Per management analysis, no allowance for credit losses was considered necessary as of December 31, 2023. #### *Property and Equipment* Property and equipment are valued at cost. Depreciation is calculated using the straight-line method over the estimated useful life of the asset ranging from five to seven years. #### *Revenue Recognition* Fee income consists of retainer fees and success fees. Fee income from retainer fees is recorded over time as performance obligations are satisfied. Fee income from success fees is recognized at a point in time when a transaction is consummated within the specific terms of an agreement as the related performance obligation is to successfully broker a specific transaction. See Note 4, Revenue from Contracts with Customers, for further information. {7}------------------------------------------------ ### **SILVERGROVE ADVISORS LLC** ### **NOTES TO THE FINANCIAL STATEMENT DECEMBER 31, 2023** #### **2. Significant Accounting Policies (continued)** #### *Leases* At inception, the Company determines if an agreement constitutes a lease and, if so, whether the lease is an operating or finance lease. Operating leases that exceed one year are included in operating lease right-of-use ("ROU") assets and operating lease liabilities on the Statement of Financial Condition. Finance leases that exceed one year are included in property and equipment and other liabilities on the balance sheet. As of the year ended December 31, 2023, there were no finance leases. #### *Income Taxes* The Company, a single member limited liability company, passes 100% of its taxable income and expenses to its sole member. Therefore, no liability for federal or state income taxes is included in the financial statement. The Company is no longer subject to examination by all major tax jurisdictions prior to 2019. The Company does not believe it has any uncertain tax provisions. #### **3. Lease** Operating lease ROU assets represent the Company's right to use an underlying asset for the lease term. Lease liabilities represent the Company's obligation to make lease payments arising from the operating lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Payments made for lease incentives are excluded. Since the Company's lease does not provide an implicit rate, the Company uses the incremental borrowing rate. The incremental borrowing rate is based on the estimated rate of interest for a collateralized borrowing over a similar term of the lease payments at commencement date. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company has a lease agreement with lease and non-lease components. Such non-lease components are accounted for separately. On January 15, 2020, the Company entered into an operating lease agreement for office space in New York, New York. The term of the lease began on February 1, 2020 and was amended to expire on December 31, 2026. For the year ended December 31, 2023, information pertaining to this operating lease was as follows: | Supplemental Information | | |--------------------------------------------------------------------|------------| | Operating Lease ROU Asset | | | ROU asset as of January 1, 2023 | \$ 53,840 | | ROU asset remeasurement on December 3, 2023 | 138,606 | | Amortization ofROU assets for the year ended D
ecember 31, 2023 | (53,840) | | Operating lease ROU asset as of December 31, 2023 | \$ 138,606 | | Remaining lease term | 36 months | | Discount rate | 5.0% | {8}------------------------------------------------ ### **SIL VERGROVE ADVISORS LLC** #### **NOTES TO THE FINANCIAL STATEMENT DECEMBER 31, 2023** #### **3. Lease (continued)** | Maturities of Operating Lease Liability | | |-----------------------------------------|--------------| | 2024 | \$
48,000 | | 2025 | 49,680 | | 2026 | 51,419 | | Total lease payments | \$ 149,099 | | Less imputed interest | ( 10,493) | | Total operating lease liability | \$ 138,606 | #### **4. Revenues from Contracts with Customers** #### *Contract Balances* Income is recognized upon completion of the related performance obligation and when an unconditional right to payment exists. The timing of revenue recognition may differ from the timing of customer payments. A receivable is recognized when a performance obligation is met prior to receiving payment by the customer. A receivable related to revenue from contracts with customers was \$11,500 and \$28,000 as of January **1,** 2023 and December 31, 2023, respectively. Alternatively, fees received prior to the completion of the performance obligation are recorded as deferred revenue on the statement of financial condition until such time when the performance obligation is met. Deferred revenue would primarily relate to retainer fees received in investment banking engagements. As of both January **1,** 2023 and December 31, 2023, there was no deferred retainer revenue. #### **5. Concentration of Credit Risk** Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents. For the year ended December 31, 2023, the Company maintains cash balances which, at times, may exceed federally insured limits. At December 31, 2023, the Company exceeded the federally insured limit of \$250,000 per institution by \$2,286,499. The Company has not experienced any losses on its cash deposits. At December 31, 2023, 100% of accounts receivable was due from four clients. #### **6. Commitments and Contingencies** The Company enters into contracts that contain various indemnifications. The Company's maximum exposure under these agreements is not estimable. However, the Company has not had prior claims or losses pursuant to these contracts and expects the risk of material loss to be remote. {9}------------------------------------------------ ### **SIL VERGROVE ADVISORS LLC** #### **NOTES TO THE FINANCIAL STATEMENT DECEMBER 31, 2023** #### **7. Net Capital Requirements** The Company is subject to the Uniform Net Capital Rule (Rule 15c3-1) under the Securities Exchange Act of 1934, which requires the maintenance of minimum net capital and requires the ratio of aggregate indebtedness to net capital both as defined shall not exceed 15 to 1. As of December 31, 2023, the Company had net capital of \$2,774,477 which was \$2,769,477 in excess of its required capital. The Company's net capital ratio was .0043 to 1. #### **8. Subsequent Events** Management has evaluated subsequent events for disclosure and/ or recognition in the financial statements through the date that the financial statements were available to be issued, which date was the date of the Report of Independent Registered Public Accounting Firm, and noted no events requiring disclosure. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.