# EVERGREEN ADVISORS CAPITAL LLC X-17A-5 (2023-02-28) — Broker-dealer annual report - Company: EVERGREEN ADVISORS CAPITAL LLC - Form: X-17A-5 - Filed: 2023-02-28 - Period: 2022-12-31 - Accession: 0001554887-23-000003 - CIK: 1554887 - File #: 8-69143 - Type: Broker-dealer - Material weakness: No - Auditor: Cherry Baekert LLP - Auditor location: Richmond, VA - Contact: Alexander Baltovski - Phone: 646-957-2715 - Email: abaltovskl@mavenstrategic.com - Website: mavenstrategic.com - Signed by: Rik Kohr (Chief Executive Officer) Original filing: https://www.sec.gov/Archives/edgar/data/1554887/000155488723000003/EACSFC-2022.pdf --- {0}------------------------------------------------ # **EVERGREEN ADVISORS CAPITAL, LLC** Statement of Financial Condition Year Ended December 31, 2022 (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 | | ANNUAL REPORTS | |----------------| | FORM X-17A-S | | PART Ill | | 0MB APP ROI/Al | | |-------------------------------------------------------------------------------------------------------------|--| | 0MB Nvmber: 323S·0123
E>ep res: 0c . 31, 2023
Es Im t d avera e burd n
houl'J per res-ponse:
12 | | | SEC FILE NUMBER | | | 8-69143 | | FACrNG PAGE Information Required Pursuant to Rules 17a-S, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 FILING FOR THE PERIOD BEGINNING **01/01/22** AND ENDING 12/31/22 --------- **MM/OD /YY** --------- **MM/00/YY A. REGISTRANT IDENTIFICATION** NAME OF FlRM: \_\_ E\_V\_E\_R\_G\_R\_E\_E\_N\_C\_A\_P\_IT\_A\_L\_A\_D\_v\_1\_s\_o\_R\_s\_, L\_L\_c \_\_\_\_\_\_\_\_\_\_\_ \_ TYPE OF REGISTRANT (check all applicable boxes): lKl Broker-dealer D Security-based swap dealer □ Major security-based swap participant Check **here** i respondent Is also an OTC derivatives deal r ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P .0. box no.) 10440 Little Patuxent Parkway t 12th floor (No. and Street) Columbia Maryland (City) (State) PERSON TO CONTACT WITH REGARD TO THIS FILING 21044 (Zip Code) Alexander Baltovski 646-957-2715 abaltovskl@mavenstrategic.com (Name) (Area Code- Telephone Number) (Email Address) **B. ACCOUNTANT IDENTIFICATION** INDEPE DENT PUBLIC ACCOUNTANT whose reports are contained in this filing• Cherry Bekaert LLP 200 South 1 0th Street (Addr ss) 10/20/2003 {Nam - if Individual, **s at** last, **first,** and middle name) Richmond (City) Virginia (State) 677 27608 {Zip Code) (Date of Registration with PCAO\_B...!,-')(,\_if\_aL.l..-ppli\_ca\_b\_le\_,\_\_) \_\_\_\_\_\_\_\_\_\_ \_\_,\_(P\_CA\_O\_B\_R\_e..:::; g\_lst\_ra\_t\_io\_n \_N\_um\_be \_\_ r, \_\_ if\_a \_\_ p..\_pl\_Jc\_ab\_le...a..,) **FOR OFFICIAL USE ONLY** • Claims for exemption from the requirement thatthe annual reports be covered by the reports of an independent public accountant must be supported by a statement o facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-S( )(l}(ii), if ppllcabl • Persons who are to respond to the collection of Information conta ned In this form are not required to respond unless the form displays a currently valld 0MB control number. {2}------------------------------------------------ #### **OATH OR AFFIRMATION** I, Rick Kohr . swear {or affirm} that, to the best of my knowledge and belief, the financial report pertaJning to the firm of Evergreen Advisors Capital,LLC as of e **e 1** , 2 022 • 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. .,., '-:, Signature: ~: : Title: #### This filing\*\* contains (check all apphcable boxes): · - ~ (a) Statement of financial condition. - (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. - 0 (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - 0 (f} Statement of changes in liab lities subordinated to claims of creditors. - D (g) Notes to consolidated financial statements. - D (h) Computation of net capital under 17 CFR 240.15c3-l or 17 CFR 240.lBa-1, as applicable. - D (i} Computation of tangible net worth under 17 CFR 240.18a-2. - D 0) Computation for determination of customer reserve requirements pursuant to Exhtbi A to 17 CFR 240.1Sc3-3. - □ { ) 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. - □ (m) Information relating to possession or control requirements for customers under 17 CFR 240.1Sc3-3. - D (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.lBa-4, as applicable. - D (o) Reconclliations, including appropriate exp la nations, of the FOCUS Report with computation of net capftal or tangfbl net worth under 17 CFR 240.15c3-1, 17 CFR 240.lSa-1, or 17 CFR 240.lBa-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.l&a-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 finandal condition. - (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.lSa-7, as applicable. - □ (r} Compliance report In accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7. as applicable. - D (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a 7, as applicable. - (t) Independent pubHc accountant's report based on an examination of the statement of financial condition. - D (u) lndependen public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7. or 17 CFR 240.17a-12, as applicable. - D (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - D (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. - □ ( ) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.1Sc3-1e or 17 CFR 240.17a-12, as applicable. - 0 (y) Report describing any ma erial inadequacies found to exist or found to have existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). 0 (%)Other: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_ \_\_\_\_ \_ - •ro *request confidential treatment of certain portions of this filing, see 17 CFR* 240.l7a-S(e){3) *or 17 CFR 240.18o-7(d)(2), as* applicable. {3}------------------------------------------------ ## **EVERGREEN ADVISORS CAPITAL, LLC** ## **DECEMBER 31, 2022** ### **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 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) ### **Report of Independent Reg stared Public Accounting Firm** To the Member Evergreen Advisors Capital, LLC Columbia, Mary and #### **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 12022 that is filed pursuant to Rufe 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 , 2022 ln conformity with accounting principles generally accepted in the United States of Arnerrca. #### **Basis for Opinion** This financ al 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 pub ic 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, eVldence 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 statement. We believe that our audi,t provides a reasonable basis for our opin on. 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, bu 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. Rockvlll , Maryland February 24, **2023** We have served as the Company's auditor since 2016. {5}------------------------------------------------ # **EVERGREEN ADVISORS CAPITAL, LLC STATEMENT OF FINANCIAL CONDITIO DECEMBER 31, 2022** # **~SETS** | Cash and cash equivalents | \$
519,969' | |--------------------------------------------------|------------------| | Accounts receivable (net of allowance) | 1691500 | | Other assets | 1736
21 | | Office equipment-net of accumulated depreciation | 16,185 | | TO
, /4ASSETS | \$
727.390 | | LIABILITIES AND MEMBER'S EQUITY | | | LIABILITIES: | | | Accounts payable | \$
15,096 | | Accrued liabil'ties | 34,394 | | | | | TOT AL LIABILITIES | 49.490 | | COMMITMENTS AND CONTINGENCIES | | | MEMBER'S EQUITY | | | rvlember's capital | 4,379.077 | | Accum ul,ated deficit | (3. 701
.177) | | TOT>J MEMBER'S EQUITY | 677,900 | | TOTAL LI.ABILITIES AND MEMBER•s EQUITY | \$
727,390 | The accompanying notes to the financial statements are an integral part of this statement. {6}------------------------------------------------ #### **EVERGREE ADVISORS CAPITAL, LLC Notes to Statement of Financ:ial Condition Year ended December 31, 2022** # **1. ORGANIZATION** Evergreen Advisors Capitalt LLC (the ·company0 ) 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, 20121 as a limited liability company in accordance with the laws of the state of Maryland. The Company provides investment banking for middle market companies · hat include buy and sell side mergers, acquisitions, and capital raises. ## **2. SUMMARY OF SIGNIFICANT ACCOUNTI G 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 S~ates of America. #### **Government and Other Regulation** The Company's business is subject to significant regulation by various governmen al agencies and self .. regula ory organizations. including the SEC and FINRA. Such regulation includes, among other things, perfodic 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 al highly liquid debt instruments having original maturities of hree months or less at the date of purchase to be cash equivalents. The Company may, during the ordinary course of business, main ain account balances with banks in excess of federally insured limits. The Company has not experienced losses an 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. 2022. The allowance is estimated from historical performance and projection of trends. No inter,est is charged on past due bafances 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. The Company has evatuated the impact of Accounting Standards Codification ("ASC) 326- 20, specifically as it relates to receivables from its customers. The Company's receivables include amounts owed for investment banking services. The Company continually reviews the credi quality of its customers. Based on this credit toss standard 1the Company has not recorded any material credit losses in its financial statements and does not expect the standard to have a material impact on the Company's operations in the future. {7}------------------------------------------------ ### **EVERGREEN ADVISORS CAPITAL. LLC Notes to Statement of Financial Condition (continued) Vear ended December 31, 2022** # **2. SUMMARY OF SIGN,tFICANT ACCOUNTING POLICIES (CONTINUED)** #### **Use of Estimates** The preparation of financial statements In conformity with accounting principles generally accepted in the United S ates of America requires management to make estimates and assumptions that af feet the reported amounts of assets and liabilities at December 31 j 2022, 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. ### **Fair value of Investments** Investments are stated at fair value in accordance with GAAP, Fair Value Measurement. Financial Accounting Stanqards Board('4FASBI)) Accounting Standards Codification 820 C'ASC'') defines fair value, establishes a framework for measuring fair valuel and estabUshes 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 techrnques that are consistent with the market, income, or cost approach, as specified by FASB ASC 820, are used to measure fair value. #### **Income Tax.es** No provisions have been made for income taxes since the Company is a single member limited fiability 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 i,ncame. 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 li'kelihood that the positions wi11 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 , 11e 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. CASH AND CASH EQUIVALENTS** Cash and cash equi:valents are defined as snort-term, highly liquid money-market mutual funds with original maturities of less than 90 days. Deposits are insured by the Federal Deposit Insurance Corporation ffFDlC"), up to \$2501000. At December 31, 2022, cash of \$269.427 was held in an inter,est-bearing account at M&T Bank. The Company's cash account at times exceeds amounts covered by insurance provided by the FDIC of \$250~000. At December 31, 2022, cash of\$ \$250,542 at Morgan Stanley. The Securities Investor Protection Corporation ("SIPC") insures th,e brokerage accounts with Morgan Stanley to the extent of \$500,000 (including up to \$250,000 for cash). {8}------------------------------------------------ ## **EVERGREEN ADVISORS CAPITAL, LLC Notes to Statement of Financial Condition (continued) Year Ended December 31, 2022** # **4. RELATED PARTilES** The Company and Evergreen Advisors, LLC C 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, 2022, \$11,611 was owed to the ''Parent' for allocated services. # **5. OFFICE EQUIPMENT** At December 31. 2022, office equipment was summarized as follows: | Office furniture fixtures and equipment | \$
25,581 | |------------------------------------------------------|--------------| | Less, accumulated depreciation and amortization | (9,396) | | Furniture, equipment and leasehold improvements, net | \$
16,185 | # **6. NET CAPITAL REQUIREMENTS** The Company, as a registered broker-dealer, 1s subject to the Securities and Exchange Commission's Net Capital Rule (Rule 15c3-1 )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 (ar'so as defined) and requires that the ratio of Aggregate Indebtedness to net capital shall not exceed 15 to 1. At December 31, 2022, the Company's net capital requirement was \$5,000. The Company's Net Capital was \$470,479 which was above the required Net Capital by \$465,479. At December 31, 2022, the Company's ratio of Aggregate Indebtedness to Net Capital was 0.1052 to 1. # **7. 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, 2022, and through the date of this report there were no such claims. # **8. CONCENTRATION OF CREDIT RISK** The Company maintains cash and savings accounts at two financial institutions. 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. {9}------------------------------------------------ ### **EVERGREEN ADVISORS CAPITAL, LLC Notes to Statement of Financial Condition (continued) Year Ended December 31, 2022** # **9. INVESTMENTS** Financial instruments are recorded at fair value in accordance with GMP. GAAP defines fair value; establishes a framework for measuring fair value, and estabti\$hes a fair vatue hierarchy which prioritizes the inputs to valuation techniques. The fair value hierarchy prioritizes the inputs to valua ion techniques used to measure fai value into three broad levels; • Level 1 inputs are quoted prices (unad}usted) in active markets for identical assets o a liability the Company ha~ the abili y to access. • Level 2 inputs are inputs (other than quoted prices included within Level 1) that are observable for the asset or liabflity, either directly or indirecUy. • Level 3 inputs are unobservable inputs for the asset or liability and rely on management's own assumpt ons about the assumptions that market participants would use in pricing the asset or liability. At December 31, 2022, the Company did not hold financial investments. ### **10. 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.