# EVERGREEN ADVISORS CAPITAL LLC X-17A-5 (2022-02-28) — Broker-dealer annual report

- Company: EVERGREEN ADVISORS CAPITAL LLC
- Form: X-17A-5
- Filed: 2022-02-28
- Period: 2021-12-31
- Accession: 0001554887-22-000004
- CIK: 1554887
- File #: 8-69143
- Type: Broker-dealer
- Material weakness: No
- Auditor: Cherry Bekaert LLP
- Auditor location: Richmond, VA
- Contact: Alexander
- Phone: 16469572715
- Email: abaltovski@mavenstrategic.com
- Website: mavenstrategic.com
- Signed by: Rick Kohr (Chief Executive Officer)

Original filing: https://www.sec.gov/Archives/edgar/data/1554887/000155488722000004/EACSBSO5.pdf

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# **EVERGREEN ADVISORS CAPITAL, LLC**

Statement of Financial Condition

Year Ended December 31 , 2021

(FILED AS PUBLIC INFORMATION PURSUANT TO RULE 17a-5(d) UNDER THE SECURITIES EXCHANGE ACT OF 1934

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**UNITED STATES SECURITIES ANO EXCHANGE COMMISSION**  Washington, O.C. **20549** 

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 |
|-----------------|
| 8-70089         |

**FACING PAGE** 

Information Required Pursuant to Rules 17a-S, 17a-l2, and 18a-7 under the Securities Exchange Act of 1934

| FILING FOR THE PERIOD BEGINNING                                                                 | 01/01/21                                                   |                         | AND ENDING                              | ----------<br>12/31/21                     |  |
|-------------------------------------------------------------------------------------------------|------------------------------------------------------------|-------------------------|-----------------------------------------|--------------------------------------------|--|
|                                                                                                 |                                                            | ---------<br>MM/DD /Y Y |                                         | MM/DD/VY                                   |  |
|                                                                                                 | A. REGISTRANT IDENTIFICATION                               |                         |                                         |                                            |  |
| __<br>NAME OF FIRM:                                                                             | E_V_E_R_G_R_E_E_N_C_A_P_IT_A_L_A_D_V_IS_O_R_S_,_L_LC       |                         |                                         | ___________<br>_                           |  |
| TYPE OF REGISTRANT (check all applicable boxes):                                                |                                                            |                         |                                         |                                            |  |
| IKI Broker-dealer<br>D Check here If respondent Is also an OTC derivatives dealer               | D Security-based swap dealer                               |                         | □ Major security-based swap participant |                                            |  |
| ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.)                             |                                                            |                         |                                         |                                            |  |
| 9256 Bendix Road Suite 300                                                                      |                                                            |                         |                                         |                                            |  |
|                                                                                                 | (No. and Street)                                           |                         |                                         |                                            |  |
| Columbia                                                                                        | Maryland                                                   |                         |                                         | 21045                                      |  |
| (City)                                                                                          | (State)                                                    |                         |                                         | (Zip Code}                                 |  |
| PERSON TO CONTACT WITH REGARD TO THIS FILING                                                    |                                                            |                         |                                         |                                            |  |
| Alexander Baltovski                                                                             | 646-957-2715                                               |                         | abaltovski@mavenstrategic.com           |                                            |  |
| (Name)<br>(Area Code - Telephone Number)                                                        |                                                            |                         | (Email Address)                         |                                            |  |
|                                                                                                 | B. ACCOUNTANT IDENTIFICATION                               |                         |                                         |                                            |  |
| INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*<br>Cherry Bekaert LLP |                                                            |                         |                                         |                                            |  |
|                                                                                                 | (Name - if individual, state last, first, and middle name) |                         |                                         |                                            |  |
| 200 South 10th Street                                                                           | Richmond                                                   |                         | Virginia                                | 27608                                      |  |
| (Address)                                                                                       | (City)                                                     |                         | (State)                                 | (Zip Code)                                 |  |
| 10/20/2003                                                                                      |                                                            |                         | 677                                     |                                            |  |
| Tte of Reg;st,.tloa with PCAOB)(" applicable)                                                   |                                                            |                         |                                         | (PCAOB Regl,t,atloa Numbe,, If applicable) |  |
|                                                                                                 | FOR OFFICIAL USE ONLY                                      |                         |                                         |                                            |  |
|                                                                                                 |                                                            |                         |                                         |                                            |  |

accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-S(e)(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.

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#### OATH OR **AFFIRMATION**

| Rick Kohr<br>t,                                                           | swear (or affirm) that, to the best of my knowledge and belief, the                                                                             |
|---------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|
| financial report pertaining to the firm of Evergreen Advisors Capital,LLC | , as of                                                                                                                                         |
| Pecerobec 31                                                              | • 2QgL, is true and correct. r further swear (or affirm) that neither the company nor any                                                       |
|                                                                           | partner, officer, director, or eciuivale.n: person, as th.at Ga\$f,may be, has any proprietary Interest In any accoont dasslfled solely<br>,,,, |
| as that of a customer.<br>•                                               | R~1;/',,,,<br>··•#'••·· #-'JiJ ",                                                                                                               |
| ,,                                                                        | ··•. ":'/., ~<br>It ai, _  ~<br>Signature:                                                                                                      |
|                                                                           | ':  .                                                                                                                                           |
|                                                                           | I<br>Title:<br>Chief ExCE)u'tive Officer                                                                                                        |
|                                                                           |                                                                                                                                                 |
|                                                                           | '                                                                                                                                               |
|                                                                           |                                                                                                                                                 |
| This filing  contains {check all applicable boxes):                       |                                                                                                                                                 |

- QQ {a) Statement of financial condition.
- il (b) Notes to consolidated statement of financial condition.
- D ( 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 (d) Statement of cash flows.
- □ (e) Statement of changes In st0<:kholders' or partners' or sole proprietor's equity.
- □ (f) Statement of changes in liabilities subordinated to claims of creditors.
- D (g) Notes to consolidated flnanclaJ statements.
- D (h) Computation of net capital under 17 CFR 240.1Sc3-l or 17 CFR 240.18a-1, as applicable.
- 0 (I) Computation of tangible net worth under 17 CFR 240.18a-2.
- □ 0) Computation for determlnatlon of customer reseNe requirements pursuant to Exhibit A to 17 CFR 240.15c3-3.
- □ [le) Computation for determination of security-based swap reserve requirem.ents pursuant to Exhibit **B** to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable.
- D (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.1Sc3-3.
- 0 (m) Information relating to possession or control requirements for customers unde.r 17 CFR 240.1Sc3-3.
- D (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.1Sc3-3(p)(2) or 17 CFR 240.lSa-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 240.18a-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 fmanclaJ condition.
- IKl (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-U, or 17 CFR 240.lSa-7, asappllcable.
- D (r) compliance report in accordance with 17 CFR 240.17a-S or 17 CFR 240.18a-7, as applicable.
- D (s) Exemption report In accorcance with 17 CFR 240.17a--S or 17 CFR 240.18a•7, **as applicable.**
- Iii (t) Independent public accountant's report based on an examination of the statement of financial condition.
- D (u) Jndependent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240.17a-5, 17 CFR 240.lSa-7, or 17 CFR 240.l7a-12, as applicable.
- D (v) Independent publlc 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.
- □ (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.
- D (x) Supplemental reports on applying agreed-upon procedures, In accordance with 17 CFR 240.15c3-1e or 17 CFR 240.17a-12, as applicable.
- D (y) Report describing any material inadequacies found to exist or found to hav.e existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12{k). 0 (z)Other: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_
- 

<sup>0</sup> ro request confidential treatment of certain portlDns of this fifing, see 17 CFR 240.17o-S{e}(3} or 17 CFR 24D.1Ba~7(d}(2), as applicable.

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# **EVERGREEN ADVISORS CAPITAL, LLC**

# **DECEMBER 31, 2021**

# **TABLE OF CONTENTS**

| Report of Independent Registered Public Accounting Firm | 1   |
|---------------------------------------------------------|-----|
| Statement of Financial Condition                        | 2   |
| Notes to the Statement of Financial Condition           | 3-6 |

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![](_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 , 2021 that is filed pursuant to Rule 17a-5 under the Securities Exchange Act of 1934. In our opinion, the statement of financial condition presents fairly, in all material respects, the financial position of the Company as of December 31 , 2021 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.

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.

Rockville, Maryland February 24, 2022, We have served as the Company's auditor since 2016.

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# **EVERGREEN ADVISORS CAPITAL, LLC ST AT EM ENT OF FINANCIAL CONDITION DECEMBER 31, 2021**

# **ASSETS**

| Cash and cash equivalents              | \$ | 872,459       |
|----------------------------------------|----|---------------|
| Accounts receivable (net of allowance) |    | 49,523        |
| Other assets                           |    | 51 ,579       |
| Office equipment-net of depreciation   |    | 10,652        |
| Securities: held at market value       |    | 152,469       |
| TOT AL ASSETS                          |    | 1,136,682     |
| LIABILITIES AND MEMBER'S EQUITY        |    |               |
| LIABILITIES:                           |    |               |
| Accounts payable                       |    | 197           |
| Accrued liabilities                    |    | 279,798       |
|                                        |    |               |
| TOT AL LIABILITIES                     | \$ | 279,995       |
| COMMITMENTS AND CONTINGENCIES          |    |               |
| MEMBER'S EQUITY                        |    |               |
| tv1ember's capital                     |    | 4,011<br>,917 |
| Accumulated deficit                    |    | (3, 155,230)  |
| TOTAL MEMBER'S EQUITY                  |    | 856,687       |
| TOT AL LIABILITIES AND MEMBER'S EQUITY | \$ | 1,136,682     |

The accompanying notes to the financial statements are an integral part of this statement.

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# **EVERGREEN ADVISORS CAPITAL, LLC Notes to Statement of Financial Condition Year ended December 31, 2021**

# **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 broker-dealer 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 SE C'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.

#### **Accounts Receivable**

Accounts receivable are stated net of allowances for doubtful accounts of \$10,000 at December 31 , 2021 . 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 , 2021 , 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.

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# **EVERGREEN ADVISORS CAPITAL, LLC Notes to Statement of Financial Condition (continued) Year ended December 31, 2021**

# **2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)**

#### **Fair value of Investments**

Investments are stated at fair value in accordance with GAAP, Fair Value Measurement. FASS Accounting Standards Codification 820 ("ASC") defines fair value, establishes a framework for measuring fair value, and establishes a fair value hierarchy which prioritizes the inputs to valuation techniques. Fair value is the exchange price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques that are consistent with the market, income, or cost approach, as specified by FASS ASC 820, are used to measure fair value.

#### **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.

# **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. At December 31, 2021 , there no amounts owed to the "Parent" for allocated services.

# **4. OFFICE EQUIPMENT**

At December 31 , 2021, office equipment was summarized as follows:

| Office furniture fixtures and equipment              | \$<br>13,132 |
|------------------------------------------------------|--------------|
| Less<br>, accumulated depreciation and amortization  | (2,480)      |
| Furniture, equipment and leasehold improvements, net | \$<br>10,652 |

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# **EVERGREEN ADVISORS CAPITAL, LLC Notes to Statement of Financial Condition (continued) Year Ended December 31, 2021**

# **5. 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 6-2/3% 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 , 2021 , the Company's net capital requirement was \$18,666. The Company's Net Capital was \$592,464, which was above the required Net Capital by \$573,798. At December 31 , 2021 , the Company's ratio of Aggregate Indebtedness to Net Capital was 0.4726 to 1.

# **6. COMMITMENTS AND CONTINGENCIES**

The Company is exposed to various asserted and unasserted potential claims encountered in the normal course of business. As of December 31 , 2021 , and through the date of this report there were no such claims.

The Company is subject to risks related to the public health crisis associated with the Coronavirus global pandemic ("COVID-19"). Management believes the measures may have significant impact on the Company's financial position and results of operations.

The amount of the impact is unquantifiable currently but deemed to be significant by management as the Company may experience a reduction of cash flows and an overall reduction in earnings because of COVID-19.

# **7. 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.

# **8. INVESTMENTS**

Financial instruments are recorded at fair value in accordance with GAAP. GAAP defines fair value, establishes a framework for measuring fair value, and establishes a fair value hierarchy which prioritizes the inputs to valuation techniques.

The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels:

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or a liability the Company has the ability to access.

• Level 2 inputs are inputs (other than quoted prices included within Level 1) that are observable for the asset or liability, either directly or indirectly.

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# **EVERGREEN ADVISORS CAPITAL, LLC Notes to Statement of Financial Condition (continued) Year Ended December 31, 2021**

# **8. INVESTMENTS, (continued)**

• Level 3 inputs are unobservable inputs for the asset or liability and rely on management's own assumptions about the assumptions that market participants would use in pricing the asset or liability.

At December 31 , 2021 , the Company held in account securities its investment with a fair market value of \$152,469 which fell into the Level 1 hierarchy throughout the year.

# **8. 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.