# NORTH INLET ADVISORS, LLC X-17A-5 (2024-03-04) — Broker-dealer annual report - Company: NORTH INLET ADVISORS, LLC - Form: X-17A-5 - Filed: 2024-03-04 - Period: 2023-12-31 - Accession: 0001494204-24-000002 - CIK: 1494204 - File #: 8-68624 - Type: Broker-dealer - Material weakness: No - Auditor: Cherry Bekaert LLP - Auditor location: Raleigh, NC - Contact: John M. Burlingame - Phone: 7049001142 - Email: jburlingame@northinletgroup.com - Website: northinletgroup.com - Signed by: John M. Burlingame (Managing Partner) Original filing: https://www.sec.gov/Archives/edgar/data/1494204/000149420424000002/NIASEC23PUBLIC.pdf --- {0}------------------------------------------------ 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 **8-38624** **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 1/01/2023** MM/00/YY AND ENDING **12/31/2023** MM/00/YY A. REGISTRANT IDENTIFICATION # NAME OFFIRM: NORTH INLET ADVISORS, LLC TYPE OF REGISTRANT (check all applicable boxes): **0** Broker-dealer D Security-based swap dealer D Major security-based swap participant D Check here if respondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) ## **2115 REXFORD RD, SUITE 224** | | (No. and Street) | | | | |----------------------------------------------------|---------------------------------------------------------------------------|----------------------|--------------------------------------------|--| | CHARLOTTE | NC | | 28211 | | | (City) | (State) | | (Zip Code) | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | John Burlingame | 704-900-1142 | | jburlingame@northinletgroup.com | | | (Name) | (Area Code - Telephone Number} | (Email Address) | | | | | B.
ACCOUNTANT IDENTIFICATION | | | | | Cherry, Bekaert & Holland, LLP | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | | 3800 Glenwood Avenue, Suite 200 Raleigh | (Name - if individual, state last, first, and middle name) | | | | | (Address)
10/20/2003 | (City) | NC
(State)
677 | 27612
(Zip Code) | | | (
te of Registration with PCAOB)(if applicable) | | | (PCAOB Registration Number, if applicable) | | | r | FOR OFFICIAL USE ONLY | | | | | | | | I | | -1< 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.l 7a-S(el(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}------------------------------------------------ | | John Burlingne | | |---------------------------------------|----------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | financial report pertaining to the firm of NORTH INLET ADVISORS. LLC | , swear (or affirm) that, to the best of my knowledge and belief, the | | tebruary 21
as that of a customer. | | as of
___ , 2 O'-]_, 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 | | | Nerissa H Smith
NOTARY PUBLIC
Aecklenburg County, NC | Signature:
Title: | - - - - - - - - - - - - - - - - - - - - - - - - - - {2}------------------------------------------------ # **NORTH INLET ADVISORS, LLC** Statement of Financial Condition *As of December 31, 2023* *And Report of Independent Registered Public Accounting Firm* {3}------------------------------------------------ | REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 2 | | |-----------------------------------------------------------|--| | | | ## **FINANCIAL STATEMENTS** | Statement of Financial Condition 3 | | |------------------------------------|--| | Notes to Financial Statements 4-6 | | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) ## **Report of Independent Registered Public Accounting Firm** To the Members North Inlet Advisors, LLC Charlotte, North Carolina #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of North Inlet Advisors, LLC (the "Company") as of December 31, 2023, that is filed pursuant to Rule 17a-5 under the Securities Exchange Act of 1934. In our opinion, the financial statement presents fairly, in all material respects, the financial position of the Company as of December 31, 2023, in conformity with generally accepted accounting principles 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 statement of financial condition 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 statement of financial condition 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, evidence regarding the amounts, and disclosures in the financial statement. 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 statement. We believe that our audit provides a reasonable basis for our opinion. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. We have served as the Company's auditor since 2010. Rockville, Maryland February 14, 2024 {5}------------------------------------------------ ## **NORTH INLET ADVISORS, LLC** STATEMENT OF FINANCIAL CONDITION *DECEMBER 31, 2023* ## **Assets** | Cash | \$310,656 | |--------------------------------------------------------------------------|-----------| | Accounts receivable | 117,404 | | Other current assets | 18,466 | | Total
Current Assets | 446,526 | | Furniture and equipment
(net of accumulated depreciation of \$16,677) | 1,677 | | Operating right-of-use lease asset | 410,580 | | Other assets | 8,573 | | Total Assets | \$867,356 | | Liabilities | | | Accrued liabilities | \$1,500 | | Total Current Liabilities | 1,500 | | Operating lease liability | 415,350 | | Total Liabilities | 416,850 | | Members' Interest | | | Members' interest | 450,506 | | Total Members' Interest | 450,506 | | Total Liabilities and Members' Interest | \$867,356 | {6}------------------------------------------------ ## **NORTH INLET ADVISORS, LLC** NOTES TO THE FINANCIAL STATEMENTS *DECEMBER 31, 2023* ## **Note 1—Nature of operations** North Inlet Advisors, LLC (the "Company"), a North Carolina limited liability corporation, was formed on May 11, 2010, under the laws of the state of North Carolina and is an investment banking firm providing corporate finance, private placement and advisory services to middle market companies. The Company, as amended, has elected to be taxed as a small business corporation under provisions of Subchapter S of the Code. This election does not affect the Company's classification as a North Carolina limited liability corporation. The Company has elected to be registered as a broker-dealer and thus is subject to various rules and regulations promulgated by the Securities and Exchange Commission ("SEC") and the Public Company Accounting Oversight Board. Accordingly, the accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") as applicable to brokers and dealers in securities. ## **Note 2—Summary of significant accounting policies** *Use of Estimates in the Preparation of Financial Statements* – The preparation of financial statements in conformity with 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 amount of revenues and expenses during the reporting period. Actual results could differ from these estimates. *Cash* – The Company places its cash on deposit with financial institutions in the United States of America. The Federal Deposit Insurance Corporation covers \$250,000 for substantially all depository accounts. The Company from time to time may have amounts on deposit in excess of the insured limits. *Accounts Receivable* – Trade accounts receivable are stated net of an allowance for credit losses, if applicable. Credit is extended to clients after an evaluation of the customer's financial condition, and generally collateral is not required. Trade accounts receivable are written-off when, in the opinion of management, such receivables are deemed to be uncollectible. The allowance for credit losses is based on the Company's expectation of the collectability of fees utilizing the Current Expected Credit Losses (CECL) framework. The Company's expectation is that the credit risk associated with receivables due from client with which it conducts business are that the client will not fulfill its contractual obligation. Management monitors the credit risk of clients and currently there is not a foreseeable expectation of an event or change which could result in a fee receivable being unpaid based on individual facts and circumstances. The Company considers factors such as historical experience, credit quality, age of balances and current and future economic conditions that may affect the Company's expectation of the collectability in determining the allowance for credit losses. The Company has no allowance for credit losses as of the year ended December 31, 2023. While management uses the best information available to make such evaluations, future adjustments to the allowance may be necessary if conditions differ substantially from the assumptions used in making the evaluations. *Furniture and Equipment* – Furniture and equipment are stated at cost and depreciated using the straight line method over the estimated useful lives of the assets which range from 5 to 7 years. Maintenance and repairs are charged to expenses as incurred and renewals and betterments are capitalized. Gains and losses on disposals are credited or charged to operations. Long-lived assets are reviewed for impairment whenever changes in circumstances indicate the carrying value of an asset may not be recoverable. {7}------------------------------------------------ ## **NORTH INLET ADVISORS, LLC** NOTES TO THE FINANCIAL STATEMENTS *DECEMBER 31, 2023* ### **Note 2- Summary of significant accounting policies (continued)** The Company's long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used, such as Company premises and equipment, is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of, such as foreclosed properties, are reported at the lower of the carrying amount or fair value less costs to sell. The Company completed a review of its long-lived assets and determined that no impairment was required to be recorded during the years ended December 31, 2023. *Income Taxes* – The Company has elected to be treated as a Subchapter S for income tax purposes. As such, substantially all federal income (loss) of the Company is reported by the members on their individual income tax returns. For state related income taxes, the Company has made the election to report state income taxes at the entity-level as allowed by statute within these financial statements for the year ended December 31, 2023. ## **Note 3—Capital requirements** The Company is subject to the SEC 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 and the rule of the "applicable" exchange also provides that equity capital may not be withdrawn or cash dividends paid if the resulting net capital ratio would exceed 10 to 1. In addition, certain advances, payment of dividends, and other equity withdrawals are subject to certain notification provisions of Rule 15c3-1. The Company stayed within limits during their withdrawals (net capital ratio of less than 10 to 1). At December 31, 2023, the Company had net capital of \$302,009 which was \$297,009 in excess of its required capital of \$5,000. The Company's net capital ratio was 2.08%. The Company claims exemption from SEC Rule 15c3-3 of the Securities and Exchange Commission under paragraph 240.17a-5(d)(1) and (4) of the rule. ## **Note 4— Operating lease – related party** The Company leases office space. The Company determines whether a contract contains a lease at inception by determining if the contract conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. Right-of-use ("ROU") assets and lease liabilities are recognized at the commencement date based on the present value of the future minimum lease payments over the lease term. Renewal and termination clauses that are factored into the determination of the lease term, if it is reasonably certain that these options would be exercised by the Company. Lease assets are amortized over the lease term, unless there is a transfer of title or purchase option reasonably certain of exercise, in which case the asset life is used. In order to determine the present value of lease payments, the Company uses the implicit rate when it is readily determinable. As the Company's lease does not provide an implicit rate, the Company has elected the practical expedient to utilize the market cap lease rate at lease commencement date to calculate lease assets and liabilities. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company does not have leases where it is involved with the construction or design of an underlying asset. {8}------------------------------------------------ ## NORTH INLET ADVISORS, LLC NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2023 The Company recognized initial ROU asset of \$410,580, and corresponding lease liabilities of \$413,350. These amounts were determined by calculating the present value of the annual cash lease payments using a discount rate of 6%. The 6% discount rate was determined to be the market cap lease rate at lease commencement date. Future undiscounted lease payments for operating leases with initial terms of one year or more as of December 31, 2023 for each of the four calendar years ending December 31, 2027 are as follows: | 2024 | \$ 105,444 | |-------------------------------------------------------------|---------------| | 2025 | 108,607 | | 2026 | 111,865 | | 2027 | 115,221 | | Thereafter | __19,927 | | Total undiscounted lease payments | 460,434 | | Less effect of discounting | (45,084) | | Present Value of estimated lease payments (lease liability) | \$
415,350 | | | | #### Lease Term and Discount Rate | Weighted average remaining lease term (in years) | 4 | |--------------------------------------------------|----------| | Weighted average discount rate | 6% | | Operating cash flows from operating leases | \$57,826 | The Company has entered into expense sharing agreement with Timber Opportunity Partners LLC, which offsets a portion of the lease expense. Timber Opportunity Partners LLC is a related party to the Company. The expense sharing agreements call for a monthly charge of \$100 for rent as well as a share of scan, fax, copier, and other similar expenses. ### Note 5—Indemnification agreements The Company enters into contracts that contain a variety of indemnifications. The Company's maximum exposure under these arrangements is unknown. However, the Company has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote. #### Note 6—Subsequent events The Company has evaluated subsequent events through February 14, 2024 in connection with the preparation of these financial statements, which is the date the financial statements were available to be issued. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.