# CARR, RIGGS & INGRAM CAPITAL ADVISORS, L.L.C. X-17A-5 (2022-03-31) — Broker-dealer annual report - Company: CARR, RIGGS & INGRAM CAPITAL ADVISORS, L.L.C. - Form: X-17A-5 - Filed: 2022-03-31 - Period: 2021-12-31 - Accession: 0001500185-22-000006 - CIK: 1500185 - File #: 8-68689 - Type: Broker-dealer - Material weakness: No - Auditor: Elliott Davis, LLC - Auditor location: Franklin, TN - Contact: Joel Sikes - Phone: 334-467-1092 - Email: joel@criadv.com - Website: criadv.com - Signed by: Kimberly K. Miller (Chief Compliance Officer) Original filing: https://www.sec.gov/Archives/edgar/data/1500185/000150018522000006/criafs04.pdf --- {0}------------------------------------------------ # Carr, Riggs & Ingram Capital Advisors, LLC FINANCIAL STATEMENTS December 31, 2021 {1}------------------------------------------------ **UNITED STATES SECURITIES ANO 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-17A-5 PART** Ill SEC FILE NUMBER | Information Required Pursuant to Rules 17a•S, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | FACING PAGE | | | | |-------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|-----------------------------------------|----------------------------------------------|--| | FILING FOR THE PERIOD BEGINNING 0 1/01 /21 | | | AND ENDING 12/31 /21 | | | | MM/00/YY | | MM/00/YY | | | | A. REGISTRANT IDENTIFICATION | | | | | NAME oF FIRM: Carr, Riggs & Ingram Capital Advisors, LLC | | | | | | TYPE OF REGISTRANT (check all applicable boxes):
~ Broker-dealer
D Check here if respondent is also an OTC derivatives dealer | D Security-based swap dealer | D Major security-based swap participant | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | | 7035 Halcyon Park Drive | | | | | | | (No. and Street) | | | | | Montgomery | AL | | 36117 | | | (City) | (State) | | (Zip Code> | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | Joel Sikes | 334-467 -1092 | | joel@criadv.com | | | (Name) | (Area Code - Telephone Number) | (Email Address> | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | | | Elliott Davis, LLC | | | | | | 341 Cool Springs Blvd, Suite 340 Franklin | (Name - if individual, state last, first, and middle name) | TN | 37067 | | | (Address) | (City) | (State) | jZip Cooe-1 | | | October 2003 | | 149 | | | | | | | (PCAOB Regiotr,tion Numbe,, if >PPllc,bleJ I | | | | 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 e,cemption. See 17 CFR 240.17a-S(e)(ll(iil, 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, Wiliam H. Carr swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of Carr. Riggs & Ingram Capital Advisors, LLC , as of 12/31 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_2.jpeg) #### **This filing•• contains (check all applicable boxes):** - Ii (a) Statement of financial condition. - □ (b) Notes to consolidated statement of financial condition. - Iii (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). - Iii (d) Statement of cash flows. - Iii (e) Statement of changes in stockholders' or partners' or sole proprietor' s equity. - 0 (f) Statement of changes in liabilities subordinated to claims of creditors. - Iii (g) Notes to consolidated financial statements. - Iii (h) Computation of net capital under 17 CFR 240.1Sc3-1 or 17 CFR 240.18a-1, as applicable. - 0 (i) Computation of tangible net worth under 17 CFR 240.lSa-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 240.1Sc3-3 or Exhibit A to 17 CFR 240.lSa-4, as applicable. - □ (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.15c3-3. - D (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - D (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. - D (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.lSa -1, or 17 CFR 240.lSa-2, as applicable, and the reserve requirements under 17 CFR 240.1Sc3-3 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. - Ii (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.lSa-7, as applicable. - D (r) Compliance report in accordance with 17 CFR 240.17a-S or 17 CFR 240.18a-7, as applicable. - Iii (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.lSa-7, as applicable. - D (t) Independent publk accountant's report based on an examination of the statement of financial condition. - Ii (u) Independent public accountant's report based on an examination of the fi nancial report or financial statements under 17 CFR 240.17a•S, 17 CFR 240.lSa-7, or 17 CFR 240.17a-12, as applicable. - D (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-S or 17 CFR 240.18a-7, as applicable. - Iii (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. - ii (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-le or 17 CFR 240.17a-12, as applicable. - D (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·S(e)(3} or 17 CFR 240.l8a·7(d)(2), as applicable. {3}------------------------------------------------ # **Carr, Riggs & Ingram Capital Advisors, LLC Table of Contents December 31, 2021** | REPORT | | |-------------------------------------------------------------|-----| | Report of Independent Registered Accounting Firm | 1-2 | | | | | FINANCIAL STATEMENTS | | | Statement of Financial Condition | 3 | | Statement of Operations | 4 | | | | | Statement of Changes in Member's Equity | 5 | | | | | Statement of Cash Flows | 6 | | | | | Notes to Financial Statements | 7 | | | | | SUPPLEMENTAL SCHEDULE | | | Supplemental Schedule of Computation of Net Capital | | | under Rule 15c3-1 of the Securities and Exchange Commission | 12 | | | | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) #### **Report of Independent Registered Public Accounting Firm** To the Board of Directors Carr, Riggs, & Ingram Capital Advisors, LLC ### **Opinion on the Financial Statements** We have audited the accompanying statement of financial condition of Carr, Riggs, & Ingram Capital Advisors, LLC (the "Company") as of December 31, 2021, the related statements of operations, changes in member's equity, and cash flows for the year then ended, and the related notes to the financial statements (collectively, "the financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2021, 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 the Company's management. Our responsibility is to express an opinion on the Company'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 the Company in accordance with 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. 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. 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. {5}------------------------------------------------ ### **Supplemental Information** The supplemental information contained in the Supplemental Schedule of Computation of Net Capital Under Rule 15c3-1 of the Securities and Exchange Commission (the "Supplemental Information") has been subjected to audit procedures performed in conjunction with the audit of the Company's financial statements. The Supplemental Information is the responsibility of the Company'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-5. In our opinion, the supplemental information contained in the Supplemental Schedule of Computation of Net Capital Under Rule 15c3-1 of the Securities and Exchange Commission is fairly stated, in all material respects, in relation to the financial statements as a whole. *£U'* ~, Llt'. We have served as the Company's auditor since 2013. Franklin, Tennessee March 17, 2022 {6}------------------------------------------------ # **Carr, Riggs & Ingram Capital Advisors, LLC Statement of Financial Condition** | December 31, | 2021 | |---------------------------------------|-----------------| | Assets | | | Current Assets | | | Cash and cash equivalents | \$
1,985,340 | | Accounts Receivable | 5,000 | | Prepaid Rent | 5,521 | | Security deposits | 6,148 | | Total current assets | 2,002,009 | | Fixed Assets | | | Operating lease right-of-use assets | 192,484 | | Furniture and equipment | 27,428 | | Accumulated depreciation | (11,497) | | Total fixed assets | 208,415 | | Total assets | \$
2,210,424 | | Liabilities | | | Current Liabilities | | | Accounts payable | \$
24,716 | | Accrued liabilities | 17,800 | | Due to related company | 45,769 | | Operating lease liabilities | 56,213 | | Total current liabilities | 144,498 | | Long-Term Liabilities | | | Operating lease liabilities | 139,465 | | | | | Total long-term liabilities | 139,465 | | Total liabilities | 283,963 | | Member's Equity | 1,926,461 | | Total liabilities and member's equity | \$
2,210,424 | {7}------------------------------------------------ # **Carr, Riggs & Ingram Capital Advisors, LLC Statement of Operations** | Year ended December 31, | 2021 | |--------------------------------|-----------------| | Revenues | | | Investment banking | \$
3,417,033 | | | | | Expenses | | | Advertising and marketing | 30,478 | | Computer expense | 70,748 | | Consulting fees | 19,400 | | Depreciation | 2,800 | | Dues and subscriptions | 10,393 | | Insurance | 2,784 | | Meals and entertainment | 10,299 | | Office supplies | 3,679 | | Other expenses | 9,798 | | Postage | 165 | | Professional fees | 26,134 | | Rent | 67,918 | | Repairs and maintenance | 8,886 | | Retirement expense | 27,900 | | Salaries and employee benefits | 1,024,444 | | Taxes and licenses | 69,919 | | Telephone expense | 6,300 | | Travel | 24,259 | | Utilities | 8,729 | | Total expenses | 1,425,033 | | Other Income | | | Rental Income | 25,080 | | | | | Net Income | \$
2,017,080 | {8}------------------------------------------------ # **Carr, Riggs & Ingram Capital Advisors, LLC Statement of Changes in Member's Equity** | Year ended December 31, | 2021 | | |------------------------------|------|-----------| | Balance at December 31, 2020 | \$ | 304,381 | | Capital contributions | | 100,000 | | Distributions to member | | (495,000) | | Net income | | 2,017,080 | | Balance at December 31, 2021 | \$ | 1,926,461 | {9}------------------------------------------------ # **Carr, Riggs & Ingram Capital Advisors, LLC Statement of Cash Flows** | Year ended December 31, | 2021 | |---------------------------------------------------|-----------------| | | | | Cash Flows from Operating Activities: | | | Net income | \$
2,017,080 | | Adjustments to reconcile net income to net cash | | | provided by operating activities: | | | Depreciation | 2,800 | | Increase in accounts receivable | (5,000) | | Increase in prepaid rent | (5,521) | | Increase in accounts payable | 5,344 | | Decrease in accrued liabilities | (2,399) | | Decrease in deferred revenues | (8,333) | | Increase in due to/from related company | 54,324 | | Noncash rent expense | 1,666 | | | | | Net cash provided by operating activities | 2,059,961 | | Cash Flows from Investing Activities: | | | Purchase of furniture and equipment | (1,898) | | | | | Net cash used in investing activities | (1,898) | | | | | Cash Flows from Capital and Financing Activities: | | | Capital Contributions | 100,000 | | Distributions to member | (495,000) | | Net cash used in capital and financing activities | (395,000) | | | | | Net Change in Cash and Cash Equivalents | 1,663,063 | | Cash and Cash Equivalents, beginning of year | 322,277 | | Cash and Cash Equivalents, end of year | \$
1,985,340 | {10}------------------------------------------------ ### **NOTE 1-ORGANIZATION AND NATURE OF BUSINESS** Carr, Riggs & Ingram Capital Advisors, LLC (the "Company"), a limited liability company organized in August 2010, is a broker-dealer registered with the Securities and Exchange Commission {SEC) and is a member of various exchanges and the Financial Industry Regulatory Authority, Inc. (FINRA). The Company commenced operations on November 10, 2011 upon obtaining its broker-dealer registration. During 2015 the Company changed its name from Carr, Riggs & Ingram Transaction Advisors, LLC to Carr, Riggs & Ingram Capital Advisors, LLC. The Company acts as an agent in merger and acquisition transactions as well as arranges debt and equity financing. The Company also provides general financial advisory services to corporate clients. The Company is a wholly owned subsidiary of Carr, Riggs & Ingram Capital, LLC. ### **NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES** #### **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 certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. #### **Investment Banking** Investment banking revenues include fees earned from providing merger and acquisition and financial restructuring advisory services. Revenue is generally computed based upon agreed-upon percentages of the sales price for the businesses sold by the Company, and is reported as revenue earned upon consummation of the sale transaction. Revenue from consulting projects is reported when earned. Revenue from commitment fees, generally paid in advance and credited against the final sales transaction fee, is recognized using the straight line method over the estimated term of the contract, typically twelve months. #### **Income Taxes** The Company is a limited liability company taxed as a partnership for federal income tax purposes. Accordingly, no provision for federal income taxes has been recorded in the accompanying financial statements since the taxable income or loss is included in the income tax returns of the members. As the Company is not liable for federal income tax, the Company has recorded no liability associated with uncertain tax positions. The Company files income tax returns in the US federal jurisdiction. The statute of limitations for Internal Revenue Service (IRS) examination of the Company's federal tax returns is determined by the statute governing the tax returns of its members. The Company's policy is to record interest and penalties relating to taxes in interest expense on the financial statements. There were no significant interest or penalties related to taxes incurred as of year-end. {11}------------------------------------------------ ### **NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (Continued)** ### **Cash and Cash Equivalents** The Company maintains cash on deposit with one banking institution. At times, deposits may exceed Federal Deposit Insurance Corporation (FDIC) coverage limits. For the purposes of the statement of cash flows, the Company has defined cash equivalents as highly liquid investments with original maturities of less than three months that are not held for sale in the ordinary course of business. ### **Property and Equipment** Property and equipment is stated at cost. Depreciation of property and equipment is provided for using the straight-line method over the estimated useful lives of the assets. Repairs and maintenance are charged to expense when incurred. Depreciation expense for the year ended December 31, 2021, was \$2,800. ### **Concentrations** The Company is project based and generally does not have recurring sources of revenue. #### **Revenue** In May 2014, the Financial Accounting Standards Board ("FASB") issued guidance to change the recognition of revenue from contracts with customers. The core principle of the new guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. The guidance was adopted in the year ended December 31, 2018. Under Topic 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. The Company's revenue is comprised of advisory fee revenue. The Company has performed an assessment of its contracts related to revenue streams that are within the scope of the standard. As such, the Company's accounting policies have not changed materially since the principles of revenue recognition from the guidance are largely consistent with prior guidance and current practices applied by the Company. Furthermore, significant revenue has not been recognized in the current reporting period that resulted from performance obligations satisfied in previous periods. {12}------------------------------------------------ ### **NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (Continued)** ### *Leases* In February 2016, the FASB amended the Leases topic of the Accounting Standards Codification to revise certain aspects of recognition, measurement, presentation, and disclosure of leasing transactions. This policy was adopted in the year ended December 31, 2019. We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use ("ROU") assets and operating lease liabilities on our balance sheet. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The discount rate that we used to determine the present value of the lease payments was 4.35%. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components, which are generally accounted for separately. For certain leases, we account for the lease and non-lease components as a single lease component. Additionally, for certain equipment leases, we apply a portfolio approach to effectively account for the operating lease ROU assets and liabilities. ### **NOTE 3 - LEGAL CONTINGENCIES** The Company was not aware of or involved in any significant current or pending legal actions during the reporting period. ### **NOTE 4 - RELATED PARTIES** A company where the members serve as principals provides related party consulting, analyst and other services. The Company had outstanding obligations of \$45,769 payable to this related party as of December 31, 2021. The Company has also entered into an agreement for this related party to provide human resources-related services as a co-employer with the Company's employees. {13}------------------------------------------------ ### **NOTE 5 - NET CAPITAL REQUIREMENTS** The Company is subject to the Securities and Exchange Commission's 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). At December 31, 2021, the Company had net capital of \$1,893,861, which was \$1,887,762 in excess of its required net capital of \$6,099, and the Company's net capital ratio is 21 to 1. # **NOTE 6- LEASES** The Company entered into two operating leases for office space in Montgomery, Alabama that began February 2020. Each lease has a term of five years. Total rent expense was \$67,918 in 2021. Supplemental balance sheet information related to leases as of December 31, 2021 was as follows: #### **Operating Leases:** | Operating lease right-of-use assets | \$ 192.484 | |---------------------------------------|--------------| | Current operating lease liabilities | \$
56,213 | | Long-term operating lease liabilities | 139,465 | | Total operating lease liabilities | \$ 195,678 | As of December 31, 2021, the future minimum lease payments under the current leases are as follows: | Year Ending | Amount | |-------------|----------| | 2022 | \$66,252 | | 2023 | \$67,990 | | 2024 | \$70,018 | | 2025 | \$ 5,849 | ### **NOTE 7 - FURNITURE AND EQUIPMENT** Furniture and equipment at December 31, 2021, consisted of the following: | Furniture and equipment
Less accumulated depreciation | \$
27,428
(11,497) | |----------------------------------------------------------|--------------------------| | Net furniture and equipment | \$
15,931 | {14}------------------------------------------------ ## **NOTE 8 - SUBSEQUENT EVENTS** The Company has evaluated all events and transactions that occurred after December 31, 2021 through the date the financial statements were available to be issued. The Company did not have any material recognizable subsequent events that required recognition or disclosure in the notes to the December 31, 2021 financial statements. ### **NOTE 9 - COVID-19** The 2019 novel coronavirus (or "COVID-19") has adversely affected, and may continue to adversely affect economic activity globally, nationally and locally. It is unknown the extent to which COVID-19 may spread, may have a destabilizing effect on financial and economic activity and may increasingly have the potential to negatively impact the Company's costs, demand for the Company's services, and the U.S. economy. These conditions could adversely affect the Company's business. The extent of the potential adverse impact, if any, of the COVID-19 outbreak on the Company cannot be predicted at this time. {15}------------------------------------------------ # **Carr, Riggs & Ingram Capital Advisors, LLC Supplemental Schedule of Computation of Net Capital Under Rule 15c3-1 of the Securities and Exchange Commission** | December 31, | 2021 | |-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------| | Net Capital
Total member's equity | \$
1,926,461 | | Deductions and/or charges:
Non-allowable assets: | (32,600) | | Net capital | \$
1,893,861 | | Aggregate Indebtedness | \$
91,479 | | Computation of Basic Net Capital Requirements
Minimum net capital required
Net capital in excess of the greater of 6 2/3% of aggregate
indebtness or minimum net capital requirement | \$
6,099
1,887,762 | | Percentage: Aggregate indebtness to net capital | 4.83% | | Reconciliation with Company's Computation
Net capital, as reported in Company's Focus Report
Part II
Net audit adjustments | \$
1,893,861 | | Net capital per above | \$
1,893,861 | Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.