# LIONTREE ADVISORS LLC X-17A-5 (2021-02-26) — Broker-dealer annual report - Company: LIONTREE ADVISORS LLC - Form: X-17A-5 - Filed: 2021-02-26 - Period: 2020-12-31 - Accession: 0001550366-21-000001 - CIK: 1550366 - File #: 8-69097 - Material weakness: No - Auditor: DELOITTE & TOUCHE LLP - Auditor location: NEW YORK, NY - Contact: Janice Parise - Phone: 2127514422 - Website: deloine.com - Signed by: Ehren Stenzler (Managing Partner) Original filing: https://www.sec.gov/Archives/edgar/data/1550366/000155036621000001/ltashort.pdf --- {0}------------------------------------------------ ## **LIONTREE ADVISORS LLC SEC ID No. 8-69097** STATEMENT OF FINANCIAL CONDITION AS OF DECEMBER 31, 2020 AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM > PUBLIC DOCUMENT Filed pursuant to Rule 17a-5(e)(3) {1}------------------------------------------------ | | ORTANDI STATES | | | | |------------------------------------------------------------------------------------------|-----------------------------------------------------------|------------|-------------------------------------------------------|--| | | SECURITIES AND EXCHANGE COMMISSION | | OMB APPROVAL
OMB Number: 3235-0123 | | | | Washington, D.C. 20549 | | Expires: October 31, 2023
Estimated average burden | | | | ANNUAL AUDITED REPORT | | hours per response 12.00 | | | | FORM X-17A-5 | | | | | | PART III | | SEC FILE NUMBER | | | | | | 8-69097 | | | | FACING PAGE | | | | | Information Required of Brokers and Dealers Pursuant to Section 17 of the | Securities Exchange Act of 1934 and Rule 17a-5 Thereunder | | | | | REPORT FOR THE PERIOD BEGINNING | 01/012020 | AND ENDING | 12/31/2020 | | | | MM/DD/YY . | | MM/DD/YY | | | | A REGISTRANT IDENTICATION | | | | | | NAME OF BROKER-DEALER: LIONTREE ADVISORS LLC | | OFFICIAL USE ONLY | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | FIRM I.D. NO. | | | 660 MADISON AVENUE, 15TH FLOOR | | | | | | | (No. and Street) | | | | | NEW YORK | NY | | 10065 | | | (City) . | (State). | | (Zip Code) | | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
JANICE PARISE | | | (212) 751-4422 | | | | | | (Area Code - Telephone Number) | | | | B. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* | | | | | | DELOITTE & TOUCHE LLP | | | | | | | (Name - if individual, state last, first, middle name) | | | | | 30 ROCKEFELLER PLAZA | NEW YORK | NY | 10112 | | | (Address) | (City) | (State) | (Zip Code) | | | CHECK ONE: | | | | | | Certified Public Accountant | | | | | | Public Accountant | | | | | | | | | | | | Accountant not resident in United States or any of its possessions | | | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | | | | | | | | | | | a Real Partier States States of Product \*Claims for exemption from the requirement that the annual report be covered by the opinion of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis for the exemption. See Section 240.170-S(e)(2) 1 - 10 - 10 - 10 - 10 - 10 - 10 - 10 - 10 - 10 - 10 - 10 - 10 - 10 - 10 - 10 - 10 - 10 - 10 - 10 - 10 - 10 - 10 - 10 - 10 - 10 - 10 - 10 - 10 - 10 - 10 - 10 - 10 - 10 - 10 - 2008 200 1987 - 1990 Potential 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 11 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 for the stimal of the series and seement genere for the SEC 1410 (11-05) 12-22. 3. 112, 122 100 0 000 6 126 13 {2}------------------------------------------------ ## OATH OR AFFIRMATION | EHREN STENZLER | | |----------------|--| | | | | | | , swear (or affirm) that, to the best of my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of LIONTREE ADVISORS LLC - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - of December 31 2020 are true and correct. I further swear (or affirm) that neither the company nor any partner, principal officer or director has any proprietary interest in any account classified solely as that of a customer, except as follows: ## No Exceptions WENDY K. MODLIN NOTARY PUBLIC-STATE OF NEW YORK No. 02MOB022452 Qualified in New York County My Commission Expires 03-29-2023 Managmi vendry K. Snocllin Notary Public . This report \*\* contains (check all applicable boxes): - (a) Facing Page. - (b) Statement of Financial Condition. - (c) Statement of Income (Loss) or, if there is other comprehensive in the period(s) presented, a Statement of Comprehensive Income (as defined in §210.1-02 of Regulation S-X). - (d) Statement of Changes in Financial Condition. - (e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital. - (f) Statement of Changes in Liabilities Subordinated to Claims of Creditors. - (g) Computation of Net Capital. - (h) Computation for Determination of Reserve Requirements Pursuant to Rule 15c3-3. - (i) Information Relating to the Possession or Control Requirements Under Rule 15c3-3. - () A Reconciliation, including appropriate explanation of the Computation of Net Capital Under Rule 15c3-1 and the Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3. - (k) A Reconciliation between the audited and unaudited Statements of Financial Condition with respect to methods of consolidation. 14. 13. 37 - (I) An Oath or Affirmation. - (m) A copy of the SIPC Supplemental Report. (n) A report describing any material inadequacies found to exist or found to have existed since the date of the previous audit. \*\* For conditions of confidential treatment of certain portions of this filing, see section 240.17a-5(e)(3). {3}------------------------------------------------ ## LIONTREE ADVISORS LLC | | Page(s) | |---------------------------------------------------------|---------| | Report of Independent Registered Public Accounting Firm | | | Financial Statement | | | Statement of Financial Condition 2 | | | 3-6
Notes to Financial Statement | | #### **Page(s)** {4}------------------------------------------------ # **Deloitte.** Deloitte & **Touchc LLP** 30 Rockefell.,,- Plaza New York, NY 10112-0015 USA Tel: + I 2 12 492 4000 fax: + I 212 489 1687 www.deloine.com # **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Managing Partners and Member ofLionTree Advisors LLC ## **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Lion Tree Advisors LLC (the "Company") as of December 31, 2020, and the related notes (collectively referred to as the "financial statement"). In our opinion, the financial statement presents fairly, in all material respects, the financial position of the Company as of December 31, 2020, in conformity with accounting principles generally accepted in the United States of America. ## **Basis for Opinion** The financial statement is the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statement 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 financial statement 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, on a test basis, 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. February 26, 2021 We have served as the Company's auditor since 2013 {5}------------------------------------------------ ## LIONTREE ADVISORS LLC ## STATEMENT OF FINANCIAL CONDITION AS OF DECEMBER 31, 2020 # ASSETS | Cash and cash equivalents | \$
50,112,981 | |---------------------------------|------------------| | Securities owned, at fair value | 494,948 | | Accounts receivable | 7,495,345 | | Other assets | )52,239 | | TOT AL ASSETS | \$
58,255,513 | ## LIABILITIES AND MEMBER'S EQUITY | Liabilities: | | |----------------------------------------|------------------| | Accounts payable | \$
112,700 | | Deferred revenues | 566,667 | | Due to ultimate parent | 29,636,564 | | Due to affiliate | 450,689 | | | | | TOT AL LIABILITIES | 30,766,620 | | | | | MEMBER'S EQUITY | 27,488,893 | | | | | TOT AL LIABILITIES AND MEMBER'S EQUITY | \$
58,255,513 | The accompanying notes are an integral part of this financial statement {6}------------------------------------------------ #### NOTE I DESCRIPTION OF ORGANIZATION AND BUSINESS LionTree Advisors LLC (the "Company") provides investment banking services including financial advisory services, underwriting participant, private placement agent and similar services. The Company is a broker-dealer registered with the Securities and Exchange Commission and a member of the Financial Industry Regulatory Authority ("FINRA"). The Company is wholly owned by LionTree Advisory Holdings LLC (the "Parent", "Member"), which is wholly owned by LionTree LLC (the "Ultimate Parent"). LionTree Advisors UK LLP (the "UK affiliate") provides financial advisory services to the European market. The UK affiliate is authorized by the Financial Conduct Authority of the Bank of England (the "FCA") to provide regulated services to the EU market. The Ultimate Parent and its subsidiaries, including the Company and the UK affiliate is referred to as "LionTree". #### NOTE2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ## Basis of Presentation These financial statements were prepared in conformity with accounting principles generally accepted in the United States of A\_rnerica ("U.S. GAAP") which 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 amounts of revenues and expenses during the reporting period. Actual results could materially differ from these estimates. #### Recent Accounting Pronouncements In June 2016, the F ASB issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments-Credit Losses. This accounting update impacts the impairment model for certain financial assets measured at amortized cost by requiring a current expected credit loss ("CECL") methodology to estimate expected credit losses over the entire life of the financial asset, recorded at inception or purchase. CECL replaced the loss model previously applicable to certain financial assets measured at amortized cost. Under the update, there may be an ability to determine there are no expected credit losses in certain circumstances, e.g., based on collateral arrangements for lending and financing transactions or based on the credit quality of the borrower or issuer. On January 1, 2020, the Company adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) on a prospective basis. The adoption of this accounting guidance did not have a material impact on the Company's financial statements. {7}------------------------------------------------ #### NOTE2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) #### Accounts Receivable Accounts receivable are comprised of receivables for advisory and underwriting revenue and reported net of an allowance for expected credit losses. These accounts receivables are measured at amortized cost, and the Company has concluded that there are de minimis expected credit losses based on the nature and contractual life or expected life of the financial assets and immaterial historic and expected losses. The Company evaluates collectability of its accounts receivable and determines if an allowance for credit losses is necessary based on historical payment information, known customer financial concerns, credit quality, age of balances and current and future economic conditions that may affect the Company's expectation of the collectability. The Company determined there is no allowance for expected credit losses for the year ended December 31 , 2020. The accounts receivable balance was \$5,682,27 1 at December 31 , 201 9 and \$7,495,345 at December 31 , 2020. ## Cash and Cash Equivalents The Company considers amounts held in money market accounts and cash equivalents with initial maturities equal to less than three months to be cash equivalents. ## Fair Value Hierarchy U.S. GAAP establishes a hierarchy that maximizes the use of relevant observable inputs and minimizes the use of unobservable inputs when determining Fair Value estimates. Fair value is defined as the price that would be received to sell an asset or aid to transfer a liability (i.e., the "exit price") in an orderly transaction between market participants at the measurement date. The three levels of inputs are: Level l e Unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 - Observable inputs olher lhan quoted prices included in Level 1 thal are observable for the asset or liability, either directly or indirectly. Level 3 - Unobservable inputs for the asset or liability. The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of j udgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measmement in its entirety. {8}------------------------------------------------ #### NOTE2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) ## Fair Value Hierarchy (continued) The recorded amounts of cash equivalents approximate their fair value due to the shortterm nature of these financial assets and liabilities aod are categorized in Level 1. The recorded amounts of accounts receivable, other assets, accounts payable, payable to Ultimate Parent and affiliate, and deferred revenue approximate their carrying value but can still approximate fair value and are categorized in Level 2. Exchange-traded equity securities are measured at fair value based on quoted prices from the exchange. To the extent these securities are actively traded, they are categorized in Level 1 of the fair value hierarchy; otherwise, they are categorized in Level 2 of the fair value hierarchy. #### NOTE3 RELATED PARTY TRANSACTIONS Pursuant to an administrative service agreement (the "Agreement") between the Company and the Parent, the Company pays a monthly administrative fee for utilizing certain resources of the Parent. As of December 31 , 2020, the Company owes the Ultimate Parent \$29,636,564 related to this Agreement and for expenses reimbursed by clients but incurred by the Ultimate Parent on behalf of the Company, as discussed in Note 2. As of December 31, 2020, the Company owes the UK affiliate \$450,689. #### NOTE 4 REGULA TORY REQUIREMENTS The Company is a registered broker-dealer and is therefore subject to the Securities and Exchange Commission ("SEC") Uniform Net Capital Rule l 5c3-l which requires the maintenance of minimum net capital. The Company has elected to use the alternative method permitted by the Rule, which requires the Company to maintain a minimum net capital equal to \$250,000. At December 31, 2020, the Company's net capital was approximately \$17,509,000, which was approximately \$ 17,259,000 in excess of its minimum requirement of \$250,000. The Company does not hold cash or securities of customers. The Company did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, and did not carry accounts of or for customers. #### *NOTES* CONCENTRATIONS Cash held by financial institutions which exceed the Federal Deposit Insurance Corporation ("FDIC") limit of \$250,000 expose the Company to concentrations of credit risk. Balances throughout the year usually exceeded the maximum coverage provided by the FDIC on insured depositor accounts. {9}------------------------------------------------ #### NOTE6 INCOME TAXES The Company is a single member limited liability company and is treated as disregarded entity for federal, state and city income tax purposes; therefore it does not incur income taxes at the Company level. Instead its earnings and losses are passed through to the member and included in the calculation of the Member's tax liability. Accordingly, no provision for income taxes has been made in the accompanying financial statem ents. #### NOTE 7 COMMITMENTS AND CONTINGENCIES In connection with investment ban.king activities, the Company may from time to time provide underwriting commitments to clients in connection with capital raising transactions. As of December 31, 2020, the Company had a commitment of\$5,000,000, which expired in January 2021. In the ordinary course of business, various legal actions may be taken against the Company. Management believes, based on currently available information, that the results of such matters, in the aggregate, will not have a material adverse effect on the Company's financial statements. #### NOTE8 RISKS AND UNCERTAINTIES During 2020, the World Health Organization declared COVJD-19 to constitute a "Public Health Emergency of International Concern." This pandemic has disrupted economic markets and the economic impact, duration and spread of the COVID-19 virus is uncertain at this time. The impact on financial markets and the overall economy, all of which are highly uncertain, cannot be predicted. If the financial markets and/or the overall economy are impacted for an extended period the Company's results may be affected. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. #### NOTE9 SUBSEQUENT EVENTS The Company has e.valuated subsequent events for adjustment to or disclosure in these financial statements through the date of this report and determined that there are no subsequent events requiring adjustments to or disclosure in the financial statements except for an \$8,000,000 cash distribution to the Ultimate Parent in January 2021. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.