# EVERGREEN ADVISORS CAPITAL LLC X-17A-5 (2021-02-19) — Broker-dealer annual report - Company: EVERGREEN ADVISORS CAPITAL LLC - Form: X-17A-5 - Filed: 2021-02-19 - Period: 2020-12-31 - Accession: 0001554887-21-000003 - CIK: 1554887 - File #: 8-69143 - Material weakness: No - Auditor: Cherry Bekaert LLP - Auditor location: Richmond, VA - Contact: Mark A Gretz - Phone: 4438120221 - Signed by: Mark A Gretz (FINOP) Original filing: https://www.sec.gov/Archives/edgar/data/1554887/000155488721000003/BSONLYFILECOPY.pdf --- {0}------------------------------------------------ # **EVERGREEN ADVISORS CAPITAL, LLC** Statement of Financial Condition Year Ended December 31, 2020 (FILED AS PUBLIC INFORMATION PURSUANT TO RULE 17a-5(d) UNDER THE SECURITIES EXCHANGE ACT OF 1934 {1}------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 0MB APPROVAL 0MB Number: 3235-0123 Expires: October 31, 2023 Estimated average burden hours per response ...... 12.00 SEC FILE NUMBER 8-69143 # **ANNUAL AUDITED REPORT FORM X-17A-5 PARTIII** **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 01/0 | 1/2020
AND ENDING 12/31/2020 | | | | |------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------|-------------|------------------------------------------------|--| | | MM/DD/YY | ----------- | MM/DD/YY | | | | A. REGISTRANT IDENTIFICATION | | | | | Evergreen Advisors Capital, LLC
NAME OF BROKER-DEALER: | | | OFFICIAL USE ONLY | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS:
(Do not use P.O. Box No.)
9256 Bendix Road, suite 300 | | | FIRM I.D. NO. | | | | (No. and Street) | | | | | Columbia | MD | | 21045 | | | (City) | (State) | | (Zip Code) | | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
Joseph Statler | | | 703-967-6801
(Area Code - Telephone Number) | | | | B. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report*
Cherry Bekaert LLP | | | | | | | (Name - if individual, state last, first, middle name) | | | | | 200 South 1 0th Street | Richmond | VA | 27608 | | | (Address) | (City) | (State) | (Zip Code) | | | CHECK ONE:
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Accountant not resident in United States or any of its possessions. | FOR OFFICIAL
USE ONLY | | | | *\*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.l 7a-5(e)(2)* > **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 0MB control number.** {2}------------------------------------------------ #### **OATH OR AFFIRMATION** | I, Richard Kohr | , swear ( or affirm) that, to the best of | |--------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------| | Evergreen Advisors Capital, LLC | my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of | | ----------------------------------------------
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1\i | | This report ** contains (check all applicable boxes): | | | 0 (a) Facing Page.
0 (b) Statement of Financial Condition. | | | | D (c) Statement of Income (Loss) or, ifthere 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 ( d) Statement of Changes in Financial Condition. | | | | D ( e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital. | | D (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. | | | D (j) A Reconciliation, including appropriate explanation of the Computation of Net Capital Under Rule l 5c3-l and the | | | Computation for Determination of the Reserve Requirements Under Exhibit A of Rule l 5c3-3. | | consolidation. | D (k) A Reconciliation between the audited and unaudited Statements of Financial Condition with respect to methods of | | 12) (1) An Oath or Affirmation. | | | D (m) A copy of the SIPC Supplemental Report. | | | | D (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}------------------------------------------------ # **EVERGREEN ADVISORS CAPITAL, LLC** # **DECEMBER 31, 2020** # **TABLE OF CONTENTS** | | Page
---- | |---------------------------------------------------------|--------------| | Report of Independent Registered Public Accounting Firm | 1 | | Statement of Financial Condition | 2 | | Notes to the Statement of Financial Condition | 3-5 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) ## **Report of Independent Registered Public Accounting Firm** To the Member Evergreen Advisors Capital, LLC Columbia, Maryland # **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Evergreen Advisors Capital, LLC (the "Company") as of December 31, 2020, and the related notes (collectively referred to as the "financial statement"). In our opinion, the statement of financial condition 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** This 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 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. Rockville, Maryland February 9, 2021 We have served as the Company's auditor since 2016. {5}------------------------------------------------ # **EVERGREEN ADVISORS CAPITAL, LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2020** #### **ASSETS** | Cash and cash equivalents
Accounts receivable (net of allowance)
Other assets | \$ | 59,320
208,128
10,041 | | | |-------------------------------------------------------------------------------------|----|-----------------------------|--|--| | TOTAL ASSETS | \$ | 277,489 | | | | LIABILITIES AND MEMBER'S EQUITY | | | | | | LIABILITIES: | | | | | | Accounts payable | \$ | 10,766 | | | | Accrued liabilities | | 35,904 | | | | TOTAL LIABILITIES | | 46,670 | | | | COMMITMENTS AND CONTINGENCIES | | | | | | MEMBER'S EQUITY | | | | | | Member's capital | | 3,013,861 | | | | Accumulated deficit | | (2,783,042) | | | | TOTAL MEMBER'S EQUITY | | 230,819 | | | | TOTAL LIABILITIES AND MEMBER'S EQUITY | \$ | 277,489 | | | The accompanying notes to the financial statements are an integral part of this statement. {6}------------------------------------------------ #### **EVERGREEN ADVISORS CAPITAL, LLC Notes to Statement of Financial Condition Year ended December 31, 2020** # **1. ORGANIZATION** Evergreen Advisors Capital, LLC (the "Company") is a broker-dealer registered with the Securities and Exchange Commission ("SEC") and is a member of the Financial Industry Regulatory Authority ("FINRA"). The Company is a wholly owned subsidiary of Evergreen Advisors (The "Parent"). The Company was formed on June 18, 2012 as a limited liability company in accordance with the laws of the state of Maryland. # **2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** ## **Basis of Presentation** The accounting policies and reporting practices of the Company conform to the practices in the brokerdealer industry and are in accordance with accounting principles generally accepted in the United States of America. #### **Government and Other Regulation** The Company's business is subject to significant regulation by various governmental agencies and self-regulatory organizations, including the SEC and FINRA. Such regulation includes, among other things, periodic examinations by these regulatory bodies to determine whether the Company is conducting and reporting its operations in accordance with the applicable requirements of these organizations. As a registered broker dealer, the Company is subject to the SEC's net capital rules (Rule 15c3-1), which require that the Company maintain a minimum net capital, as defined. The Company will operate in accordance with the exemptive provisions of paragraph (k) (2) (i) of SEC Rule 15c3-3. #### **Cash and Cash Equivalents** . The Company considers all highly liquid debt instruments having original maturities of three months or less at the date of purchase to be cash equivalents. The Company may, during the ordinary course of business, maintain account balances with banks in excess of federally insured limits. The Company has not experienced losses on these accounts, and management believes that the Company is not exposed to significant risks on such accounts. At December 31, 2020, the cash was held in interest bearing accounts at M&T Bank of \$59,320. {7}------------------------------------------------ #### **EVERGREEN ADVISORS CAPITAL, LLC Notes to Statement of Financial Condition (continued) Year ended December 31, 2020** # **2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)** #### **Accounts Receivable** Accounts receivable are stated net of allowances for doubtful accounts of \$9,000 at December 31, 2020. The allowance is estimated from historical performance and projection of trends. No interest is charged on past due balances and balances greater than 90 days past due are reviewed by management. Receivables are written off when management determines they are uncollectible. Accounts receivables consist of non-refundable Advisory fees charged to customers for services rendered. #### **Use of Estimates** The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at December 31, 2020 and revenues and expenses during the year then ended. The actual outcome of the estimates could differ from the estimates made in the preparation of the statements. #### **Income Taxes** No provisions have been made for income taxes since the Company is a single member limited liability company and is considered a disregarded entity for income tax purposes. The sole member is liable for income taxes based on the Company's taxable income. The Company recognizes and measures tax positions taken or expected to be taken in its tax return based on their technical merit and assesses the likelihood that the positions will be sustained upon examination based on the facts, circumstances and information available at the end of each period. Interest and penalties on tax liabilities, if any, would be recorded in expenses. The U.S. Federal jurisdiction and the state of Maryland are the major tax jurisdictions where the Company files income tax returns. The Company is subject to U.S. Federal or state examinations by tax authorities for all periods since its inception. {8}------------------------------------------------ ## **EVERGREEN ADVISORS CAPITAL, LLC Notes to Statement of Financial Condition (continued) Year Ended December 31, 2020** # **3. RELATED PARTIES** The Company and Evergreen Advisors, LLC ("Parent") have entered into an agreement whereby they share office space, office services, and administrative services. The cost of such space and services are allocated between the entities. Any amounts owed are due on demand and bear no interest. During the year ended December 31, 2020 the Company reported \$9,515 as a liability to the Parent for such services. The Company incurred \$381,604 of expense to the parent during the year. ## **4. NET CAPITAL REQUIREMENTS** The Company, as a registered broker-dealer, is subject to the Securities and Exchange Commission's Net Capital Rule (Rule 15c3-1), which requires that the Company maintain Net Capital (as defined in the Rule) equal to the greater of \$5,000 or 1500% of Aggregate Indebtedness (also as defined) and requires that the ratio of Aggregate Indebtedness to net capital shall not exceed 15 to 1. At December 31, 2020, the Company's net capital requirement was \$5,000. The Company's Net Capital was \$12,650, which was above the required Net Capital by \$7,650. At December 31, 2020, the Company's ratio of Aggregate Indebtedness to Net Capital was 3.69 to 1. ## **5. COMMITMENTS AND CONTINGENCIES** The Company is exposed to various asserted and unassisted potential claims encountered in the normal course of business. As of December 31, 2020, and through the date of this report there were no such claims. ## **6. CONCENTRATION OF CREDIT RISK** The Company maintains cash and savings accounts at one financial institution. Cash balances are insured by the Federal Deposit Insurance Corporation up to \$250,000 per insured bank account. The Company has not experienced any losses in the past in these accounts. ## **7. SUBSEQUENT EVENTS** Management has evaluated the impact of all subsequent events through the issuance date of the financial statements and has determined that there were no subsequent events requiring adjustment to or disclosure in these financial statements. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.