# BRATTLE ADVISORS LLC X-17A-5/A (2021-03-26) — Broker-dealer annual report - Company: BRATTLE ADVISORS LLC - Form: X-17A-5/A - Filed: 2021-03-26 - Period: 2020-12-31 - Accession: 0001491105-21-000002 - 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/1491105/000149110521000002/pamended.pdf --- {0}------------------------------------------------ ![](_page_0_Picture_0.jpeg) #### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Members of Brattle Advisors ILC #### Opinion on the Financial Statements We have audited the accompanying statement of financial condition of Brattle Advisors ILC (the "Company") as of December 3 1, 2020, 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 of Brattle Advisors lLC as of December 31, 2020, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. #### Basis for Opinion These financial statements are the responsibility of Brattle Advisors ILC' s management. Our responsibility is to express an opinion on Brattle Advisors ILC's financial statements based on our audit. We are a public accounting finn registered "~th the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to Brattle Advisors ILC 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 obt.un 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 ofNet Capital Under SEC Rule 15c3-I, Computation for Determination of Reserve Requirements and Information relating to Possession or Control Requirements Under SEC Rule 1Sc3-3 has been subjected to audit procedures performed in conjunction with the audit ofBrattle Advisors LLC's financial statements. The supplemental information is the responsibility ofBrattle Advisors LLC's management. Our audit procedures included ddermining 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 farm and content, is presented in conformity with 17 C.F .R. §240. J 7a-5. 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 2014. KBL,LLP NewYork,NY February 8, 2021 1 {1}------------------------------------------------ ## BRATTLE ADVISORS LLC ## STATEMENT OF FINANCIAL CONDITION #### DECEl\fflER 31, 2020 #### **ASSETS** | Cash | \$
259,250 | |-------------------------------------------|---------------| | Accounts receivable | 7,500 | | Prepaid expenses | 4,152 | | Furniture and computer equipment at cost, | | | less accwnulated depreciation of\$8,03S | 547 | | Right of use vehicle-financing lease | 25,169 | | Security deposit | 74 | | Total assets | \$
2961692 | #### **LIABILmES AND MEMBERS' EQUITY** | Liabilities: | | |---------------------------------------|---------------| | Accounts payable and accrued expenses | \$
11,147 | | Lease liability-financing lease | 22 771 | | Total liabilities | 33,918 | | Memt>ers' eqwty | 262,774 | | Total liabilities and members' equity | \$
2961692 | The accompanying notes are an integral part of these financial statements. {2}------------------------------------------------ ## BRATTLE ADVISORS LLC NOTES TO FINANCL<\L STATEMENTS FOR THE YEAR ENDED DECE1\1BER 31, 2020 ## 1. ORGANIZATION 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 undergoes periodic examinations by the Financial Incfustry Regulatory Authority. ## Recent Issued Accounting Pronouncements The Company does not believe that the adoption of any recently issued, but not yet effective, accounting standards will have a material effect on its financial position and results of operations. ### **2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** ## Basis of Presentation The accompanying financial statements have been prepared in conformity with U.S generally accepted accounting principles ("GAAP") and the rules and regulations of the United States Securities 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. ### AccoUl'ltiog basis The Company uses the accrual basis of accounting 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 fmancial statements include only those assets, liabilities and results of operations which relate to the business of Brattle Advisors LLC. The financial 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 purposes, 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 accounting guidance concerning provision for uncertain income tax provisions contained in Accounting Standards Codification ("ASC'') 740- 10, there are no uncertain income tax positions. The federal and state income tax returns are subject to examination by i!he IRS and state taxing authorities, generally for three years after they were filed. ## 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 fmancial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. {3}------------------------------------------------ ## BRATTLE ADVISORS LLC NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020 ## 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (con tinued) ## Revenue Recognition The Company accounts for revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers. In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers: Topic 606, to supersede nearly all existing revenue recognition guidance under GAAP. ASU 2014-09 also requires new qualitative and quantitative disclosures, including disaggregation of revenues and descriptions of performance obligations. The Company adopted the provisions of this guidance on May 1, 2018 using the modified retrospective approach. The Company has performed an assessment of its revenue contracts as well as worked with industry participants on matters of interpretation and application and has not identified any material changes to the timing or amount of its revenue recognition under ASU 2014-09. The Company's accounting policies did not change materially as a result of applying the principles of revenue recognition from ASU 2014-09 and are largely consistent with existing guidance and current practices applied by the Company. 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. As of December 31, 2020, all fees recognized were for financial and banking advisory services provided. # 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, 2020 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. . From time to time, the Company may have bank balances that exceed the FDIC insurance limit on interest bearing accounts. 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. The Company does not believe that the concentration of credit risk of bank deposits represents a material risk ofloss with respect to its financial condition as of December 31, 2020. {4}------------------------------------------------ ## **BRATTLE ADVISORS LLC NOTES TO FINANCL<\L STATEMENTS FOR THE YEAR ENDED DECE1\1BER 31,** 2020 ## 3. **CONCENTRATION OF CUSTOMER REVENUES** For the year ended December 31, 2020, one client accounted for 100% of the Company's revenue and accounts receivable. ## **4. NET CAPITAL** The Company is subject to the SEC Uniform Net Capital Rule (Rule l 5c3-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, 2020, the Company had net capital of \$248,103, which was \$243,103 in excess of the FINRA minimum net capital requirement of\$5,000. ## S. **SIPC RECONCILIATION REQUIREME1''T** Securities Exchange Act ("SEA") Rule l 7a-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) becaus.e it is reporting less than \$500,000 in gross revenue. ## 6. **COMMITMENTS AND CONTINGENCIES** ### Leases The Company under a month-to-month rental arrangemen1 which has no impact on the adoption of ASC 842. The Company paid \$1,389 in office rent for the year ended December 31, 2020. ### Litigation The Company may be involved in legal proceedings in the ordinary course of business. Such matters are subject to many uncertainties, and outcomes are not predictable with assurance. Currently, the Company is not involved in any legal proceedings which are not in the ordinary course of business. ### Lease liability - financing lease The Company occupies a vehicle leased under a fmancing lease expiring October 31, 2023. The Company recognizes and measures its lease in accordance with F ASB ASC 842, Leases. The Company recognizes the lease liability and a right of use asset (ROU) on its balance sheet by recognizing the lease liability based on the present value of its future lease payments. The Company recognized the ROU and lease liability of \$26,650 and \$25,247, respectively on October 31, 2020. The Company made a down payment of \$1,785. The Company uses an incremental borrowing rate of 1.3% based on what it would approximately have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms and in a similar economic environment. The ROU asset is subsequently measured throughout the lease term at the amount of the remeasured lease liability (present value of the remaining lease payments). The Company recognizes lease costs on a straight-line basis over the lease term. {5}------------------------------------------------ ## **BRATTLE ADVISORS LLC NOTES TO FINANCL<\L STATEMENTS FOR THE YEAR ENDED DECE1\1BER 31, 2020** #### **6. COMMITMENTS AND CONTINGENCIES (continued)** Future minimum payments under the vehicle lease are the following: | | 2021 | \$8,582 | |-----------------------|--------|----------| | | 2022 | 8,582 | | | 2023 | 6.022 | | | Total: | \$23,186 | | Less imputed interest | | (415) | | Total lease liability | | \$22,771 | The total lease cost associated with this lease for the year ended December 31, 2020 was \$1,481 in amortization of capitalized financing lease assets and \$52 interest expense on the finance of the lease liability. ## 7. **COVID-19** During the year of 2020, Coronavirus Disease (COVID-19) has begun causing major disruptions to the economy. The financial impacts to the Company will likely result in significantly reduced revenues for at least the first quarter of 2021, and possibly beyond. Management is monitoring the situation closely and expects to make needed changes to its operations should circumstances warrant in order to mitigate any negative long-term financial impacts on the Company. #### **8. SUBSQUENT EVENTS** The Company evaluated events occurring between the end of its fiscal year, December 31, 2020, and February 8, 2021, when the financial statements were issued. {6}------------------------------------------------ ### **BRA TTLE ADVISORS LLC** ## **EXEMPTION REPORT PURSUANT TO RULE 15c3-3 OF THE SECURITIES AND EXCHANGE COMMISSION** #### **DECEMBER 31, 2020** Brattle Advisors LLC does not claim an exemption from SEC Rule **J** 5c3-3 and is in reliance on footnote 74 to SEC Release 34-70073. The Company represents that it does not and will not, (I) directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, (2) does not and will not carry accounts of or for customers and (3) does not and will not carry PAB accounts. The Company's transactions are limited, such that it does not handle customer funds or securi6es. 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 provisions throughout the year ended December 31, 2020 without exception. Signature:.\_\_.t2fi!2,..a..~ =.\_,\_\_.J"-,.\_ / \_\_ *} \_\_\_\_\_\_\_\_\_\_ \_* ~xccutive Officer {7}------------------------------------------------ ![](_page_7_Picture_0.jpeg) ### Report of Independent Register-ed 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 Rule 15c3-3 of the Securities and Exchange Commission, in which Brattle Advisors LLC identified the Company had no obligations under the provisions of 17 C.F .R. § 240.15c3-3 as (1) the Company does not and will not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, (2) does not and will not carry accounts of or for customers and (3) did not carry PAB accounts (as defined in Rule 15c3- 3) throughout the most recent fisc.a1 year, without exception. Brattle Advisors LLC's management is responsible for compliance with the exemption provisions 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 provisions. 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 provisions set forth in Rule l 5c3-3 under the Securities Exchange Act of 1934. KBL, LLP NewYork,NY February 8, 2021 Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.