# BUILDER ADVISOR GROUP, LLC X-17A-5 (2024-03-29) — Broker-dealer annual report - Company: BUILDER ADVISOR GROUP, LLC - Form: X-17A-5 - Filed: 2024-03-29 - Period: 2023-12-31 - Accession: 0001511838-24-000002 - CIK: 1511838 - File #: 8-68801 - Type: Broker-dealer - Material weakness: No - Auditor: Ernst Wintter & Associates - Auditor location: Walnut Creek, CA - Contact: Anthony Avila - Phone: 415-561-0600 - Email: tony@builderadvisorgroup.com - Website: builderadvisorgroup.com - Signed by: Anthony Avila (Managing Member) Original filing: https://www.sec.gov/Archives/edgar/data/1511838/000151183824000002/builder2023audit.pdf --- {0}------------------------------------------------ ### UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 OMB APPROVAL OMB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12 # ANNUAL REPORTS FORM X-17A-5 PART III SEC FILE NUMBER 8-68801 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 12/31/23 MM/DD/YY MM/DD/YY A. REGISTRANT IDENTIFICATION NAME OF FIRM: Builder Advisor Group, LLC TYPE OF REGISTRANT (check all applicable boxes): C Security-based swap dealer Ø Broker-dealer □ Check here if respondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) 770 Tamalpais Drive, Suite 401B (No. and Street) Corte Madera California 94925 (City) (State) (Zip Code) PERSON TO CONTACT WITH REGARD TO THIS FILING Anthony G. Avila (415) 561-0600 tony@builderadvisorgroup.com (Name) (Email Address) (Area Code - Telephone Number) B. ACCOUNTANT IDENTIFICATION INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing\* Ernst Wintter & Associates LLP (Name - if individual, state last, first, and middle name) 675 Ygnacio Valley Blvd. Suite A200 Walnut Creek California 94596 (Address) (State) (Zip Code) (City) February 24, 2009 3438 (Date of Registration with PCAOB)(if applicable) (PCAOB Registration Number, if applicable) FOR OFFICIAL USE ONLY \* Claims for exemption from the requirement that the annual 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)(1)(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 OMB control number. {1}------------------------------------------------ ## OATH OR AFFIRMATION I, Anthony G. Avila financial report pertaining to the firm of Builder Advisor Group, LLC as of the country of the country as of December 31, 2023 , 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_1_Picture_4.jpeg) thu Chinstine Notary Jublic ## This filing\*\* contains (check all applicable boxes): - മ (a) Statement of financial condition. - □ (b) Notes to consolidated statement of financial condition. - (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. - O (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - □ (f) Statement of changes in liabilities subordinated to claims of creditors. - O (g) Notes to consolidated financial statements. - 1 (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. - 2 (i) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - | | | | | 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. - 0 (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. - 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 240.18a-2, 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. - □ (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - o (q) Oath or affirmation in accordance with 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable. - [ - ڪ (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - | (t) Independent public accountant's report based on an examination of the statement of financial condition. - O (u) Independent public accountant's report based on an examination of the 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. - മ (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 240.17a-12, as applicable. - □ (y) Report describing any material inadequacies 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). - □ (z) Other: - \*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.170-5(e)(2), as applicable. Signature: area Momber {2}------------------------------------------------ #### CALIFORNIA ACKNOWLEDGMENT #### CIVIL CODE § 1189 A notary public or other officer completing this certificate verifies only the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. | State of California | | | |-----------------------|-------------------------------------------|--| | Murin
County of _ | | | | March 12, 2024
On. | House Christing Baldinin
before me, | | | Date | Here Insert Name and Title of the Officer | | | personally appeared | themonia | | | | Namele of Signer(s) | | who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. ![](_page_2_Picture_6.jpeg) Place Notary Seal and/or Stamp Above I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Sidnature of Notary Public OPTIONAL Completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. #### Description of Attached Document | Document Date: _______________________________________________________________________________________________________________________________________________________________ | | | | | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--| | | | | | | | | | | | | | Signer's Name: _______________________________________________________________________________________________________________________________________________________________ | | Signer's Name: _______________________________________________________________________________________________________________________________________________________________ | | | | D Corporate Officer ~ Title(s): ______________________________________________________________________________________________________________________________________________ | | D Corporate Officer - Title(s): ______________________________________________________________________________________________________________________________________________ | | | | O Partner - O Limited O General | | D Partner - D Limited O General | | | | O Attorney in Fact | O Individual | O Attorney in Fact | | | | | | O Guardian or Conservator | | | | | O Other: _ | | | | | | | Signer is Representing: ______________________________________________________________________________________________________________________________________________________ | | | | | Capacity(ies) Claimed by Signer(s)
D Other: | Signer(s) Other Than Named Above: ____________________________________________________________________________________________________________________________________________
O Guardian or Conservator
Signer is Representing: ______________________________________________________________________________________________________________________________________________________ | | | NATURE CONSULTION COLORIAL CONSECTION CONSULTION CONSULTION CONSULTION CONSULTION CONSULTION CONSULTION CONSULTION OF ©2019 National Notary Association {3}------------------------------------------------ Annual Audit Report December 31, 2023 {4}------------------------------------------------ ## Table of Contents | Report of Independent Registered Public Accounting Firm | 1 | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------| | Statement of Financial Condition | 2 | | Statement of Income | 3 | | Statement of Changes in Member's Equity | 4 | | Statement of Cash Flows | 5 | | Notes to the Financial Statements | 6 - 11 | | Supplemental Information | 12 | | Schedule I: | 13 | | Computation of Net Capital Under Rule 15c3-1
of the Securities and Exchange Commission | | | Reconciliation with Company's Net Capital Computation | | | Schedule II: | 14 | | Computation for Determination of the Reserve Requirements
and Information Relating to Possession or Control
Requirements for Brokers and Dealers Pursuant to Rule 15c3-3 | | | Review Report of the Independent Registered Public Accounting Firm | 15 | | SEA Rule 15c3-3 Exemption Report | 16 | {5}------------------------------------------------ 675 Ygnacio Valley Road, Suite A200 Walnut Creek, CA 94596 (925) 933-2626 Fax (925) 944-6333 ### Report of Independent Registered Public Accounting Firm To the Member of Builder Advisor Group, LLC #### Opinion on the Financial Statements We have audited the accompanying statement of financial condition of Builder Advisor Group, LLC (the "Company") as of December 31, 2023, the related statements of income, changes in member's equity, and cash flows for then ended, and the related notes and schedules I and II (collectively referred to as 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, 2023, and the results of its operations and its cash flows for 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 the U.S. federal securities laws 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. #### Auditor's Report on Supplemental Information Schedules I and II have been subjected to audit procedures performed in conjunction with the Company's financial statements. The supplemental is the responsibility of the Company's management. Our audit procedures included determining whether the supplemental information 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, Schedules I and II are fairly stated, in all material respects, in relation to the financial statements as a whole. We have served as Builder Advisor Group, LLC's auditor since 2013. Walnut Creek, California March 27, 2024 {6}------------------------------------------------ ## Statement of Financial Condition December 31, 2023 | Assets | | | |------------------------------------------------------------------|------|-----------| | Cash and cash equivalents | S | 692,901 | | Investments in securities | | 3,015,595 | | Accounts receivable, net of \$51,665 allowance for credit losses | | 207,636 | | Prepaid expenses | | 32,588 | | Total Assets | ക | 3,948,720 | | | | | | Liabilities and Member's Equity | | | | Liabilities | | | | Accounts payable | S | 17,767 | | Deferred revenue | | 158,240 | | Due to affiliates | | 71,217 | | Total Liabilities | | 247,224 | | Member's Equity | | 3,701,496 | | Total Liabilities and Member's Equity | ಲ್ಲಾ | 3,948,720 | The accompanying notes are an integral part of these financial statements. {7}------------------------------------------------ #### - - # # !"#" | !"#" | | |-----------------------------------------|----------------| | | | | | | | \$

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| 23I5E3BEI | | J | | | K<=@())/=&-8@(() | 63L663F45 | | ?<(:/*8=))() | 463EE4 | | 7(/+,;<)-,8((CD(&)() | 4>3BEF | | M;()-&:);,)A> | | N*G(<=D(<-*/&0(CD(&)() | 64I32EI | | H J | 634I5354> | | O | 1
E3LLF3E6I | PG(-AA=+D-&Q/&0&=\*()-<(-&/&\*(0<-8D-<\*=@\*G()(@/&-&A/-8)\*-\*(+(&\*)R {8}------------------------------------------------ ## Statement of Changes in Member's Equity ## For the Year Ended December 31, 2023 | Member's equity as of January 1, 2023 | S | 8.171.877 | |-----------------------------------------|---|--------------| | Distributions | | (10,805,000) | | Net income | | 6,334,619 | | Member's Equity as of December 31, 2023 | S | 3.701.496 | The accompanying notes are an integral part of these financial statements. {9}------------------------------------------------ ## Statement of Cash Flows ## For the Year Ended December 31, 2023 | Cash Flows from Operating Activities | | | |---------------------------------------------------------------------------------------------------------------------------|---|-------------| | Net income | S | 6,334,619 | | Adjustments to reconcile net income | | | | to net cash provided by operating activities: | | | | | | | | Realized and unrealized gains on investments | | (157,007) | | Credit losses | | 51,665 | | (Increase) decrease in: | | | | Accounts receivable | | (229,301) | | Prepaid expenses | | (1,072) | | Increase (decrease) in: | | | | Accounts payable | | 11,952 | | Deferred revenue | | 158,240 | | Due to affiliates | | 55,570 | | Net Cash Provided by Operating Activities | | 6,224,666 | | Cash Flows from Investing Activities | | | | Purchase of investments | | (9,708,387) | | Investments sold | | 949,698 | | Investments redeemed | | 3,835,000 | | Net Cash Used in Investing Activities | | (4,923,689) | | Cash Flows from Financing Activities | | | | Distributions | | (3,798,359) | | Net Cash Used in Financing Activities | | (3,798,359) | | | | | | Net Decrease in Cash and Cash Equivalents | | (2,497,382) | | Cash and cash equivalents at beginning of year | | 3,190,283 | | Cash and Cash Equivalents at End of Year | S | 692,901 | | | | | | Supplemental Disclosure of Non-Cash Operating and Financing Activities
Contribution reducing amount owed to affilitate | S | 3,647 | | Distribution of investments in securities | S | 7,002,994 | | | | | The accompanying notes are an integral part of these financial statements. {10}------------------------------------------------ ## Notes to the Financial Statements ## December 31, 2023 #### 1. Organization Builder Advisor Group, LLC (the "Company") was organized as a California limited liability company in October 2010. The Company is owned by its sole member, Efficient Builder Technology Corporation (the "Member"), and operates in Corte Madera, California. Under this form of organization, the Member is not liable for the debts of the Company. The Company is a securities broker and registered with the Securities and Exchange Commission ("SEC") and the Financial Industry Regulatory Authority ("FINRA") in March 2012. The Company engages in advisory services and private placements of securities. ## 2. Significant Accounting Policies ### Cash and Cash Equivalents The Company considers all demand deposits held in banks and certain highly liquid investments with original maturities of three months or less, other than those held for sale in the ordinary course of business, to be cash equivalents. The Company had cash equivalents of \$49,741 at December 31, 2023. ### 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. The Company accounts for estimated credit losses on financial assets measured at an amortized cost basis and certain off-balance sheet credit exposures in accordance with FASB ASC 326-20, Financial Instruments -Credit Losses. FASB ASC 326-20 requires the Company to estimate expected credit losses over the life of its financials assets and certain off-balance sheet exposures as of the reporting date based on relevant information about past events, current conditions, and reasonable and supportable forecasts. The Company records the estimate of expected credit losses as an allowance for credit losses. For financial assets measured at an amortized cost basis the allowance for credit losses is reported as a valuation account on the Statement of Financial Condition that is deducted from the asset's amortized cost basis. Changes in the allowance for credit losses are reported as credit loss expense on the Statement of Income. Per management's analysis, a \$51,665 allowance for credit losses was considered necessary as of December 31, 2023. ### Use of Estimates The preparation of financial statements in accordance 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 at the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and may have an impact on future periods. ### 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. Investments in securities are the only financial instruments required to be measured at fair value on a recurring basis. {11}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ab5P5>> 85:DIE585;@Dc:;A@45>7Q5D@9E?7E?@<@785:DIE585;@D?;P7>P?;FD?F;?G?C:;@I;7BD5EP:B>5?;9I@Dab5P5>d 85:DIE585;@DcJ345@4E55>5P5>D7G@45G:?EP:>I54?5E:EC4<:E5:DG7>>7QDe - b5P5>L fI7@5A9E?C5DaI;:ARID@5Ac?;:C@?P58:E`5@DG7E?A5;@?C:>:DD5@D7E>?:B?>?@?5D@4:@@45 6789:;<4:D@45:B?>?@<@7:CC5DD:@@4585:DIE585;@A:@5J b5P5>U K;9I@D7@45E@4:;\_I7@5A9E?C5D?;C>IA5AQ?@4?;b5P5>L@4:@:E57BD5EP:B>5G7E@45:DD5@ - 7E>?:B?>?@<=5?@45EA?E5C@><7E?;A?E5C@>d g;7BD5EP:B>5?;9I@DG7E@45:DD5@7E>?:B?>?@I5O5:DIE585;@D379?C7G@45Y[\][CC7I;@?;F\@:;A:EAD67A?G?C:@?7;=@456789:;< B:D5D?@DG:?EP:>I57;@459E?C5@4:@Q7I>AB5E5C5?P5A@7D5>>:;:DD5@7E9:?A@7@E:;DG5E:>?:B?>?@<@E:;D:C@?7;B5@Q55;9:E@?C?9:;@D:@@4585:DIE585;@A:@5JK@?D@456789:;?C<@78:H?8?^5@45 ID57G7BD5EP:B>5?;9I@D:;A8?;?8?^5@45ID57GI;7BD5EP:B>5?;9I@DQ45;A5P5>79?;FG:?EP:>I5 85:DIE585;@D=?;:CC7EA:;C5Q?@4@45G:?EP:>I54?5E:EC4I585:DIE585;@DG7E:DD5@D:;A>?:B?>?@?5D Q45E5@45E55H?D@D>?8?@5A7E;77BD5EP:B>58:E`5@A:@::;A=@45E5G7E5=:E5B:D5A9E?8:E?>CI>:@5AB:D5A7;CIEE5;@9E?C?;F97>?C<=@455C7;78?C:;A C7895@?@?P55;P?E7;85;@=@45C4:E:C@5E?D@?CD7G@45:DD5@7E>?:B?>?@<:;A7@45EDIC4G:C@7EDJ345E5G7E5=@45 E5DI>@DC:;;7@B5A5@5E8?;5AQ?@49E5C?D?7;:;A8:<;7@B5E5:>?^5A?;:;:C@I:>D:>57E?885A?:@5D5@@>585;@ 7G@45:DD5@7E>?:B?>?@><=@45E58:CI>:@?7;@5C4;?\_I5=:;A C4:;F5D?;@45I;A5E>IA?;FA?DC7I;@E:@5D:;A5D@?8:@5D7GGI@IE5C:D4G>7QD=@4:@ C7I>AD?F;?G?C:;@><:GG5C@@45E5DI>@D7GCIEE5;@7EGI@IE5P:>I5J {12}------------------------------------------------ ## Notes to the Financial Statements December 31, 2023 ### 3. Fair Value Measurements (continued) ### Investments in Securities The Company classifies its investments in securities as trading securities whereby unrealized gains and losses are recorded on the Statement of Income. Fair values are based on quoted market prices when available. When market prices are not available, fair value is generally estimated using discounted cash flow analyses, incorporating current market inputs for similar financial instruments. In instances where there is little or no market activity for the same or similar instruments, the Company estimates fair value using methods, models and assumptions that the managing member believes market participants would use to determine a current transaction price. These valuation techniques involve a high level of the managing member's estimation and judgment which become significant with increasingly complex instruments or pricing models. Where appropriate, adjustments are included to reflect the risk inherent in a particular methodology, model or input used. ### Assets and Liabilities Measured and Recognized at Fair Value on a Recurring Basis The table below presents the amounts of assets measured at fair value on a recurring basis as of December 31, 2023: | | Level l | Level 2 | Level 3 | Total | | |-----------------------|--------------|---------|---------|--------------|--| | Assets at fair value: | | | | | | | U.S. treasury notes | \$ 3,015,595 | | | \$ 3.015.595 | | | Total | \$ 3.015.595 | | | \$ 3.015.595 | | U.S. treasury notes and bills are based on quoted market prices in active markets for identical assets. ## 4. Revenue from Contracts with Customers Revenue from contracts with customers is recognized when, or as, the Company satisfies performance obligations by transferring the promised goods or services to the customers. A service is transferred to a customer when, or as, the customer obtains control of that service. A performance obligation may be satisfied over time or at a point in time. Revenue from a performance obligation satisfied over time is recognized by measuring progress in satisfying the performance obligation in a manner that depicts the transfer of the goods or services to the customer. Revenue from a performance obligation satisfied at a point in time is recognized at the point in time when it is determined the customer obtains control over the promised good or service. The amount of revenue recognized reflects the consideration the Company expects to be entitled to in exchange for those promised goods or services (i.e., the "transaction price"). In determining the transaction price, the Company considers multiple factors, including the effects of variable consideration. Variable consideration is included in the transaction price only to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur and when the with respect to the amount are resolved. In determining when to include variable consideration price, the Company considers the range of possible outcomes, the predictive value of past experiences, the time period of when uncertainties expect to be resolved and the amount of consideration that is susceptible to factors outside of the Company's influence, such as market volatility or the judgment and actions of third parties. {13}------------------------------------------------ ## Notes to the Financial Statements December 31, 2023 ## 4. Revenue from Contracts with Customers (continued) ### Investment Banking Fees The Company generates revenue by providing advisory services to companies related to mergers and acquisitions and by acting as an agent in the private placement of securities. Success fees in investment banking engagements are recognized at a point in time when a transaction is completed within the terms of the agreement. It is at this point in time that the control and benefit of the capital markets service and the related performance obligation to successfully broker a specific transaction has been satisfied. Retainer fees and consulting fees in investment banking engagements are fixed fees recognized over time using a time elapsed measure of progress as the Company's clients simultaneously receive and consume the benefits of those services as they are provided. Retainer fees may also be deferred until the successful close of a transaction when the closing is the primary performance obligation. Valuation fees are fixed fees recognized at a point in time when is delivered to the client as the performance obligation has been fulfilled at such time. ## Disaggregation of Revenue The following table presents the Company's revenue from contracts with customers by business activity for the period ended December 31, 2023: | Major business activity: | | | |-------------------------------------|--------------|--| | Investment banking - success fees | \$ 6,644.151 | | | Investment banking - retainer fees | 774.500 | | | Investment banking - valuation fees | 133.500 | | | Conference admission fees | 101.282 | | | Reimbursed expense income | 50.864 | | | Total | \$ 7,704,297 | | | | | | ## 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. Receivables related to revenue from contracts with customers totaled \$30,000 and \$207,636 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 investments. 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