# EVERGREEN ADVISORS CAPITAL LLC X-17A-5 (2024-02-28) — Broker-dealer annual report - Company: EVERGREEN ADVISORS CAPITAL LLC - Form: X-17A-5 - Filed: 2024-02-28 - Period: 2023-12-31 - Accession: 0001554887-24-000001 - 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: abaltovski@mavenstrategic.com - Website: mavenstrategic.com - Signed by: Rick Kohr (Chief Executive Officer) Original filing: https://www.sec.gov/Archives/edgar/data/1554887/000155488724000001/EAC-SFC-2023.pdf --- {0}------------------------------------------------ # **EVERGREEN ADVISORS CAPITAL, LLC** Statement of Financial Condition Year Ended December 31, 2023 (FILED AS PUBLIC INFORMATION PURSUANT TO RULE 17a-5(d) UNDER THE SECURITIES EXCHANGE ACT OF 1934 {1}------------------------------------------------ UNITED STATES SECURITIES ANO EXCHANGE COMMISSION Washington, O.C. 20549 0MB APPROVAL 0MB Number: 3235-0123 Expiru: Nov. 30, 2026 Estirn1tecl **average burden** hours per response: 12 SEC FILE NUMBER # ANNUAL REPORTS FORM X-17A-5 PART Ill | 8-69143 | |---------| | | # 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 \_\_\_ 0\_1\_/0\_1\_/2\_3 \_\_ AND ENDING \_\_\_ 12/ \_ 3\_1/\_2\_3 \_\_ MM/DD/VY MM/00/YY A. REGISTRANT IDENTIFICATION NAME oF FIRM: Evergreen Advisors Capital,LLC lYPE OF REGISTRANT (check all applicable **boxes):** Xl Broker-dealer D Security-based swap dealer D Major security-based swap participant D Check here if respondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P .0. box no.) 10440 Little Patuxent Parkway, 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 abaltovski@mavenstrategic.com (Name) (Area Code-Telephone Number) (Email Address) B. ACCOUNTANT IDENTIFICATION INDEPENDENT PUBLIC ACCOUNT ANT whose reports are contained in this filing• Cherry Bekaert, LLP 200 South Street (Name - if individual, state last. first. and middle name) Richmond Virginia 27608 | (Zip Code)
(State) | | |-----------------------|--------------------------------------------------------------------------------------------------------| | | | | 677 | | | | | | | | | | '"°"""'" N•mbe<, • ,ppUo,bl,) I
of RoOstration with PCAOBJI• "";"~" FOR OFFICIAL USE ONLY
(PCAOB | • Claims for exemption from the requirement that the annual reports be covered by the 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-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 rurrently valid 0MB control number. {2}------------------------------------------------ #### OATH OR AFFIRMATION | | Rick Kohr | | |--|-----------|--| | | | | I, Rick Kohr swear (or affirm) that, to the best of my knowledae and belief, the financial report pertaining to the firm of **Evergreen** Advisors Capital,LLC • as of December 31 . 2.D2L Is true and correct. I further swear (or affirm) that neither the company nor any **partner,** officer, dlrKtor, or equivalent **pe~,astfftllt~may be,** has any proprietary interest In any account classified solely | as that of a customer, | .,,: if.>. Y GR~/••,,
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't. fi7. | ,_ ~,,,,. f ,:tt'J_-C, | | | This filina•• contains (check all applicable boxest: - ~ (a) Statement of financial condition. - Iii (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. - D (e) Statement of changes In stockholders' or partners' or sole proprtetor's equity. - □ (f) Statement of chances In liabilltles subordinated to claims of a-editors. - D (g) Notes to consolidated financial statements. - D (h} Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a--1, as applicable. - D (I) Computation of tangible net worth under 17 CFR 240.18a-2. - D (j) Computation for determination of customer **reserve** requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - □ (k) 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.** - D (I} Computation for Determination of PAB Requirements under Exhibit A to§ 240.15c3-3. - □ (m) Information relatln1 to possession or control requirements for customers under 17 CFR 240.1Sc3-3. - 0 (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.1Sc3-3(p)(2) or 17 CFR 240.18a-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-1, 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. - D (p) Summary of flnanaal data for subsidiaries not consolidated in the statement of financial condition. - @ (q} Oath or affirmation In acc:ordance with 17 CfR 240.17a-5, 17 CfR 240.17a-12, or 17 CFR 240.18a-7, as applicable. - D (r) **Compliance repon** 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 240.17&-5 or 17 CFR 240.lBa-7, **as applicab~.** - fi! (t) Independent public accountant's report based on an examination of the statement of financial condition. - D (u) Independent public accountant's report based on an examination of the financial repon or financial statements under 17 CfR 240.17a-5, 17 CfR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - D M 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-S or 17 CFR 240.188-7, **as applicable.** - □ (x) Supplemental reports on applylna **aareed-upon** procedures, In accordance with 17 CFR 240.1Sc3-1e or 17 CFR 240.17a-12, as applicable. - □ M Report desctlblng any material 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). D (z)Other: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_ - ••ro reqwst confldtntlal trtatmtnt of certain portions of this filing, see 1.1 CFR 240.1.1a-5(t}(3} or 11 CFR 240.1Ba-7(dH2}, as applicable. {3}------------------------------------------------ ## **EVERGREEN ADVISORS CAPITAL, LLC** ## **DECEMBER 31, 2023** ## **TABLE OF CONTENTS** | | Page | |---------------------------------------------------------|------| | Report of independent registered public accounting firm | | | Statement of financial condition | 2 | | Notes to the statement of financial condition | 3-6 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) ## Report of Independent Registered Public Accounting Firm To the Members Evergreen Advisors Capital, LLC Columbia, Maryland #### Opinion on the Financial Statements We have audited the accompanying statement of financial condition of Evergreen Advisors Capital, LLC (the •c ompany") as of December 31 , 2023, and the related notes (collectively referred to as the "financial statemenn. In our opinion, the financial statement presents fairly, in all material respects, the financial position of the Company as of December 31, 2023 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 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. *~ 8~LL/J* We have served as Company's auditor since 2016. Rockville, Maryland February 22, 2024 {5}------------------------------------------------ ## **EVERGREEN ADVISORS CAPITAL, LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2023** ## **ASSETS** | Cash and cash equivalents | \$ | 331,303 | |--------------------------------------------------|----|-------------| | Accounts receivable (net of allowance) | | 138,596 | | Other assets | | 18,496 | | Office equipment-net of accumulated depreciation | | 14,687 | | TOT AL ASSETS | \$ | 503,082 | | LIABILITIES AND MEMBER'S EQUITY | | | | LIABILITIES: | | | | Accounts payable | \$ | 22,290 | | Accrued liabilities | | 40,745 | | | | | | TOT AL LIABILITIES | | 63,035 | | COMMITMENTS AND CONTINGENCIES | | | | MEMBER'S EQUITY | | | | Member's capital | | 4,379,077 | | Accumulated deficit | | (3,939,030) | | TOTAL MEMBER'S EQUITY | | 440,047 | | TOT AL LIABILITIES AND MEMBER'S EQUITY | \$ | 503,082 | 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, 2023** ## **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. The Company provides investment banking for middle-market companies that include buy and sell side mergers, acquisitions, and capital raises. ## **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. ("U.S. GMP"). ### **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 Footnote 74 to SEC Release 34-70073. #### **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 is stated as net of allowances for doubtful accounts of \$10,000 at December 31, 2023. 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. The Company has evaluated 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 credit quality of its customers. Based on this credit loss standard, the 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) Year ended December 31, 2023** ## **2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)** ### **Use of Estimates** The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at December 31, 2023, 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 U.S. GAAP, Fair Value Measurement. Financial Accounting Standards Board("FASB") 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 FASB 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. CASH AND CASH EQUIVALENTS** Cash and cash equivalents are defined as short-term, highly liquid money-market mutual funds with original maturities of less than 90 days. Deposits are insured by the Federal Deposit Insurance Corporation ("FDIC") up to \$250,000. At December 31, 2023, cash of \$148,615 was held in interest-bearing accounts at M&T Bank and \$182,688 at Morgan Stanley. The Securities Investor Protection Corporation ("SIPC") insures the brokerage accounts with Morgan Stanley to the extent of \$500,000 (including up to \$250,000 for cash). The Company's cash account at times exceeds amounts covered by insurance provided by the FDIC and SIPC. {8}------------------------------------------------ ## **EVERGREEN ADVISORS CAPITAL, LLC Notes to Statement of Financial Condition (continued) Year Ended December 31, 2023** ## **4. 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, 2023, \$20,760 was owed to the "Parent" for allocated services. Such an amount is included in accrued liabilities on the Statement of Financial Condition. ## **5. OFFICE EQUIPMENT** At December 31, 2023, office equipment was summarized as follows: | Office furniture fixtures and equipment | \$
34,336 | |------------------------------------------------------|--------------| | Less, accumulated depreciation and amortization | (19,649) | | Furniture, equipment and leasehold improvements, net | \$
14,687 | ## **6. 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, 2023, the Company's net capital requirement was \$5,000. The Company's Net Capital was \$268,268, which was above the required Net Capital by \$263,268. At December 31, 2023, the Company's ratio of Aggregate Indebtedness to Net Capital was 0.2350 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, 2023, and through the date of this report there were no such claims. ## **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.