# BRATTLE ADVISORS LLC X-17A-5 (2020-01-23) — Broker-dealer annual report - Company: BRATTLE ADVISORS LLC - Form: X-17A-5 - Filed: 2020-01-23 - Period: 2019-12-31 - Accession: 0001491105-20-000001 - CIK: 1491105 - File #: 8-68585 - Material weakness: No - Auditor: KBL LLP - Auditor location: New York, NY - Contact: Arthur Chamian - Phone: 617-391-3595 - Signed by: Arthur Chamian (Managing Principal) Original filing: https://www.sec.gov/Archives/edgar/data/1491105/000149110520000001/public.pdf --- {0}------------------------------------------------ ![](_page_0_Picture_0.jpeg) #### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Members of Brattle Advisors LLC #### Opinion on the **Financial** Statements We have audited the accompanying statement of financial condition ofBrattle Advisors LLC (the "Company") as of December 31, 2019, the related statements of income, changes in members' equity, and cash flows for the year then ended, and the related notes and schedule I ( collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position ofBrattle Advisor; LLC as of December 31, 2019, and the results of its operations and its cash flows for the year then ended in conformity with zccounting principles generally accepted in the United States of America. #### Basis for Opinion These financial statements are the responsibility of Brattle Advisors LLC's management. Our responsibility is to express an opinion on Brattle Advisors LLC's financial statements 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 Brattle 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 statements are 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 statements, 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. #### Supplemental Information The Computation of Net Capital Under SEC Rule !Sc3-1, Computation for Determination of Reserve Requirements and Information relating to Possession or Control Requirements Under SEC Rule !Sc3-3 has been subjected to audit procedures performed in conjunction with the audit of Brattle Advisors LLC's financial statements. The supplemental information is the responsibility of Brattle Advisors LLC's management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with 17 C.F.R. §240.17a-S. In our opinion, the supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole. We have served as BrattleAdvisors LLC's auditor since 20 14. KBL, LLP NewYork,NY January 23, 2020 {1}------------------------------------------------ ## **BRA TTLE ADVISORS LLC** ### **STATEMENT OF FINANCIAL CONDITION** ### **DECEl\fflER 31, 2019** ### **ASSETS** | Cash | \$
227,126 | |-------------------------------------------|---------------| | Accounts receivable | 9,589 | | Prepaid expenses | 4,261 | | Furniture and computer equipment at cost, | | | less accUillulated depreciation of\$7,675 | 907 | | Total assets | \$
241883 | #### **LIABILmES AND MEMBERS' EQUITY** | Liabilities: | | |---------------------------------------|-------------------| | Accounts payable and accrued expenses | \$
9,092 | | Memt>ers' eqwty | 232,791 | | Total liabilities and members' equity | \$
24
1,883 | The accompanying notes are an integral part of these financial statements. {2}------------------------------------------------ ## BRATTLE ADVISORS LLC NOTES TO FINANCLU STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2019 # 1. ORGANI ZATION AND NATURE OF BUSINESS Brattle Advisors LLC (the Company) was organized on July 13, 2009. The Company, which is based in Boston, Massachusetts, is a registered Broker-Dealer and in this capacity provides institutional private placement services. The Company is subject to the regulations of certain federal and state agencies, and \llldergoes periodic examinations by the Fmancial Industry Regulatory Authority. # Recent Issued Acco\lllting Prono\lllcements The Company does not believe that the adoption of any recently issued, but not yet effective, acco\lllting standards will have a material effect on its financial position and results of operations. ## **2. SlThfl\fARY OF SIGNIFICANT ACCOUNTING POLICIES** ## Basis of Presentation The accompanying financial statements have been prepared in conformity with U.S generally accepted acco\lllting principles ("GAAP") and the rules and regulations of the United States Secunties and Exchange Commission (the "Commission"). It is management's opinion, that all material adjustments (consisting of normal recurring adjustments) have been made which are necessary for a fair financial statement presentation. ## Cash and cash equivalents The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Cash equivalents are carried at cost, which approximates market value. #### Accounting hasis The Company uses the accrual basis of acco\lllting for financial statement and income tax reporting. Accordingly revenues are recognized when services are rendered and expenses realized when the obligation is incurred. ### Income Taxes The financial statements include only those assets, liabilities and results of operations which relate to the business ofBrattle Advisors LLC. The fmancial statements do not include any assets, liabilities, revenues, or expenses attributable to the members' individual activities. The Company is a limited liability company, taxed as a partnership for federal income tax pwposes, and, thus, no federal income tax expense has been recorded in the financial statements. Taxable income of the Company is passed through to the members and reported on their individual tax returns. Pursuant to acco\lllting guidance concerning provision for \lllcertain income tax provisions contained in Acco\lllting Standards Codification ("ASC") 740-10, there are no \lllcertain income tax positions. The federal and state income tax returns are subject to examination by the IRS and state taxing authorities, generally for three years after they were filed. {3}------------------------------------------------ # **BRATTLE ADVISORS LLC NOTES TO FINANCLU STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2019** # **2. smfl\lARY OF SIGJ\'IFICANT ACCOUNTING POLICIES (continued)** ## Use of Estimates The preparation of financial statements in confonnity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported an1ounts of assets and liabilities, and disclosure of contingent assets, and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. ## Revenue Recognition The Company accounts for revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers. The Company's revenues are from fixed retainer fees for investment banking services. The income is recognized as revenue in the respective months for which is when the performance obligation has been satisfied. ## Depreciation The Company capitalizes major capital expenditures. Depreciation is based on straight line method over the following useful lives: | Computer and office equipment | 5 years | |-------------------------------|---------| | Furniture and fixtures | 7 years | Depreciation expense for the year ended December 31, 2019 was \$360. # Fair Values of Financial Instruments Financial Accounting Standards Board Accounting Standards Codification ("ASC'') 825, "Financial Instruments," requires the Company to disclose estimated fair values for its financial instruments. Fair value estimates, methods, and assumptions are set forth below for the Company's financial instruments: The carrying amount of cash, accounts receivable, prepaid expenses and accounts payable and accrued expenses, approximate fair value because of the short maturity of those instruments. # Concentrations of Credit Risk The Company places its cash with a high credit quality financial institution. The Company's account at this institution is insured by the Federal Deposit Insurance Corporation ("FDIC") up to \$250,000. To reduce its risk associated with the failure of such financial institution, the Company evaluates at least annually the rating of the financial institution in which it holds deposits. ### 3. **NET CAPITAL** The Company is subject to the SEC Uniform Net Capital Rule (Rule 15c3-l), which requires the maintenance of minimum net capital of \$5,000, and requires that the ratio of aggregate indebtedness to net capital, both as defined, not exceed 15 to 1. The rule also provides that equity capital may not be withdrawn, cash dividends paid or the Company's operations expanded, if the resulting net capital ratio would exceed 10 to 1. At December 31, 2019, the Company had net capital of\$218,034, which was \$2 13,034 in excess of the FINRA minimum net capital requirement of\$5,000. {4}------------------------------------------------ # BRATTLE ADVISORS LLC NOTES TO FINANCLU STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2019 # **4. SIPC RECONCILIATION REQUIREJ\1ENT** Securities Exchange Act ("SEA") Rule 17a-5(e)(4) requires a registered broker-dealer to file a supplemental report which includes procedures related to broker-dealers SIPC annual general assessment reconciliation or exclusion from membership forms. In circumstances where the broker-dealer reports \$500,000 or less in gross revenue they are not required to file supplemental SIPC report. The Company is exempt from filing the supplemental report under SEA Rule **l** 7a-5(e)(4) because it is reporting less than \$500,000 in gross revenue. ## 5. **COMMITMENTS AND CONTINGENCIES** #### Leases The Company under a month to month rental arrangement which has no impact on the adoption of ASC 842. The Company paid \$1,908 in office rent for the year ended December 31, 2019. #### 6. SUBSQUENT EVENTS The Company evaluated events occurring between the end of its fiscal year, December 31, 2019, and January 23, 2020, when the financial statements were issued. {5}------------------------------------------------ #### **BRATTLE ADVISORS LLC** ### **EXEMPTION REPORT PURSUANT TO RULE 15c3-3 OF THE SECURITIES ANO EXCHANGE COMMISSION** #### **DECEMBER 31, 2019** Brattle Advisors LLC operates pursuant to paragraph (k)(2)(i) of SEC Rule I 5c3-3 under which the Company claims an exemption from SEC Rule !Sc3-3. The Company is exempt from the reserve requirements of Rule I 5c3-3 as its transactions are limited, such that it does not handle customer funds or securities. Accordingly, the computation for determination of reserve requirements pursuant to Rule I 5c3- 3 and information relating to the possession or control requirement pursuant to Rule I 5c3-3 are not applicable. The Company has met the identified exemption provtsions throughout the year ended December 31, 20 19 without exception. {6}------------------------------------------------ ![](_page_6_Picture_0.jpeg) ## Report of Independent Registered Public Accounting **Firm** To the Board of Directors and Members of Brattle Advisors LLC We have reviewed management's statements, included in the accompanying Exemption Report Pursuant to SEC Rule 1Sc3-3, in which (I) Brattle Advisors LLC identified the following provisions of 17 C.F .R. § 1Sc3-3(k) under which Brattle Advisors LLC claimed an exemption from 17 C.F.R. § 240.1Sc3-3: (2)(i) (the "exemption provision'') and (2) Brattle Advisors LLC stated that Brattle Advisors LLC met the identified exemption provision throughout the most recent fiscal year without exception. Brattle Advisors LLC's management is responsible for compliance with the exemption provision and its statements. Our review was conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) and, accordingly, included inquiries and other required procedures to obtain evidence about Brattle Advisors LLC 's compliance with the exemption provision. A review is substantially less in scope than an examination, the objective of which is the expression of an opinion on management's statements. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to management's statements referred to above for them to be fairly stated, in all material respects, based on the conditions set forth in paragraph (k)(2Xi) of Rule 1Sc3- 3 under the Securities Exchange Act of 1934. /(/JL*1* L *1-P* KBL, LLP NewYork,NY January 23, 2020 Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.