# CYNDX ADVISORS LLC X-17A-5 (2024-03-18) — Broker-dealer annual report - Company: CYNDX ADVISORS LLC - Form: X-17A-5 - Filed: 2024-03-18 - Period: 2023-12-31 - Accession: 0001607153-24-000004 - CIK: 1607153 - File #: 8-69465 - Type: Broker-dealer - Material weakness: No - Auditor: EisnerAmper LLP - Auditor location: New York, NY - Contact: Mike Ballou - Phone: 917-817-4620 - Email: james@cdxadvisors.com - Website: cdxadvisors.com - Signed by: Bridget Valdemira (VP Accounting & Finance) Original filing: https://www.sec.gov/Archives/edgar/data/1607153/000160715324000004/cdxadvisorspublic2023.pdf --- {0}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ANNUAL REPORTS FORM X-17A-S PART Ill FACING PAGE** 0MB APPROVAL 0MB Number: 3235--0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12 SEC FILE NUMBER 8-69465 **Information Required Pursuant** *to* **Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934** FILING FOR THE PERIOD BEGINNING **O 1/01/2023** MM/DD/VY AND ENDING **12/31/2023** MM/DD/VY **A. REGISTRANT IDENTIFICATION** NAME oF FIRM: Cyndx Advisors LLC TYPE OF REGISTRANT (check all applicable boxes): [!] Broker-dealer □ Security-based swap dealer □ Major security-based swap participant □ Check here if respondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) 485 Lexington Avenue - Suite 400 (No. and Street) New York NY {City) (State) PERSON TO CONTACT WITH REGARD TO THIS FILING 10017 (Zip Code) James McVeigh 646-762-5514 james@cdxadvisors.com (Name) (Area Code - Telephone Number) (Email Address) **B. ACCOUNTANT IDENTIFICATION** INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing\* EisnerAmper LLP (Name - if individual, state last, first, and middle name) 733 Third Avenue New York NY (Address) (City) (State) 10017 (Zip Code) T" of Reglstcativ ecerY\~r** ~ I . 2~ 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. ![](_page_1_Picture_5.jpeg) | itle: | | |-------|--| | | | # **This ling\*\* contains (check all applicable boxes):** - **iii** (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 proprietor's equity. - D (f) Statement of changes in liabilities subordinated to claims of creditors. - □ (g) Notes to consolidated financial statements. - □ (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-l, as applicable. - D (i) Computation of tangible net worth under 17 CFR 240.18a-2. - □ U) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - D (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. - D (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - 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 240.18a-4. as applicable. - □ (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 financial data for subsidiaries not consolidated in the statement of financial condition. - **iii** (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable. - D (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.l 7a-5 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. - □ (u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240.17a-S, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - □ (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-S 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. - D (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-le or 17 CFR 240.17a-12, as applicable. - D (y) Report describing 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). □ (z)Other: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_ - - \*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e)(3) or 17 CFR 240.18a-7(d}(2), as applicable. {2}------------------------------------------------ # CYNDX ADVISORS LLC (A WHOLLY-OWNED SUBSIDIARY OF CYNDX HOLDCO INC.) (S,E.C. I.D. No. 8-6946,.S) ### STATEMENT OF FINANCIAL CONDITION AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM DECEMBER 31, 2023 \*\*\*\*\*\*\*\*\* Pursuant to Rule 17 a-5( e )(3) under the Securities Exchange Act of 1934 as a Public Document. {3}------------------------------------------------ | REPORT OF INDEPENDENTREOIS!ERED PUBLIC ACCOUNTING FIR?v[ 1 | | |-------------------------------------------------------------|--| | STATWENTOF FINANCIAL CONDffiON 2 | | | NOTES TO STA TE!\'1ENT OF FINANCIAL CONDITION 3 | | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) **EisnerAmper LLP** 733 Third Avenue New York, NY 10017 **T** 212.949.8700 **F** 212.891 .4100 www.e1sneramper.com ### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Managing Member of Cyndx Advisors LLC #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Cyndx Advisors LLC (the "Company") as of December 31, 2023 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 , 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 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. We have served as the Company's auditor since 2016. **EISNERAMPER** LLP New York, New Yor February 19, 2024 "EisnerAmper· is the brand name under \1vh1(l1 Eis:nerArnper lLP and Eisne-r Ad,.,isory Group LLC a!'ld its subsidiary <:ntiti.s-s prov1d~ pmfes~ional sef"vices. EiSfH~rAmper UP and Eisner Advisory G!'oup lLC are mdependently o~v1led fo-01~ that practice in a:1 altetr'tt1tiv(:; practice .structute Ir'l accordance with the A!CPA Code or ProMs,onal Conduct and apphcabl~ i,1w, regulations J110 p1oles~i◊1,al sta~dud;. f isnhArnpc,r LLP ,s a ltce11sed CPA firm that prov,des dtiest serv,ces. M\d t.i..;ner Advisoiy Group LLC and its subsidiary entities provide ta>. and busine~s coosulhng seMC(;S.. Ei-srn:r Advisory G1oup llC and its subsidiary entities are not licensed CPA firms. {5}------------------------------------------------ # **CYNDX ADVISORS LLC (A Wholly-Owned Subsidiary of Cyndx Holdco Inc.)** # **STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2023** ## **(Dollars** In **Thousands)** # **ASSETS** | Cash | \$
444 | |----------------------------------------------------|-----------| | Investment in Security, at fair value (cost \$150) | 150 | | Accounts Receivable, net | 136 | | Prepaid Expenses | 55 | | Due from Affdiate | 7 | | Total Assets | \$
792 | | LIABILITIES AND MEMBER'S EQUITY | | | LIABILITIES | | | Accounts Payable and Accrued Expenses | \$
190 | | Contract Liabilities | 159 | | Total Liabilities | 349 | | MEMBER'S EQUITY | 443 | | | | \$ 792 See accompanying notes to statement of financial condition. **Total Liabilities and Member's Equity** {6}------------------------------------------------ # **CYNDX ADVISORS LLC (A Wholly-Owned Subsidiary ofCyndx Holdco Inc.)** # **NOTES TO STATEMENT OF FINANCIAL CONDITION** # **YEAR ENDED DECEMBER 31, 2023 (Dollars in Thousands)** # **1. ORGANIZATION** Cyndx Advisors LLC d/b/a CDX Advisors (the "Company"), is a Delaware limited liability company that provides financial advisory services to its clients in connection with mergers and acquisitions, financings, restructurings, and other transactions. The Company may also act as a placement agent on certain financing transactions. The Company's clients consist of public and private companies both domestic and foreign representing a variety of industries. The Company has its principal place of business in the United States located in New York, New York. Cyndx Advisors LLC is wholly-owned subsidiary of Cyndx Holdco Inc. ("Holdco"). The Company is a member of the Financial Industry Regulatory Authority ("FINRA") and is a registered broker-dealer with the Securities and Exchange Commission (the "SEC"). The Company received FINRA approval on October 2, 2015. # **2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** *Basis of Presentation* - The financial statements are presented in U.S. dollars and are prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). *Investment Valuation* - The Company carries its investments at fair value. Fair value is an estimate of the exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants (i.e., the exit price at the measurement date). Fair value measurements are not adjusted for transaction costs. A fair value hierarchy provides for prioritizing inputs to valuation techniques used to measure fair value into three levels: - Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities. - Level2 Inputs other than quoted market prices that are observable, either directly or indirectly, and reasonably available. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability and are developed based on market data obtained from independent sources. - Level3 Unobservable inputs. Unobservable inputs reflect the assumptions that are developed based on available information about what market participants would use in valuing the asset or liability. An asset or liability's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Availability of observable inputs can vary and is affected by a variety of factors. The Company uses judgment in determining fair value of assets and liabilities and Level 3 assets and liabilities involve greater judgment than Level 1 or Level 2 assets or liabilities {7}------------------------------------------------ *Use of Estimates* - The preparation of financial statements in confonnity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts ofrevenues and expenses during the reporting period. Actual results could differ from those estimates. *Concentrations of Credit Risk* - The Company maintains cash in bank accounts which, at times, may exceed federally insured limits. The Company is subject to credit risk to the extent any financial institution with which it conducts business is unable to fulfill contractual obligations on its behalf. *Credit Losses* - The Company measures credit losses on financial instruments in accordance with Accounting Standards Update ("ASU") No. 2016-13 that requires management's measurement of the current expected credit loss ("CECL") to be based on a broader range or reasonable and supportable information for lifetime credit loss estimates including historical experience, current conditions, and reasonable and supportable forecasts. See Note 3 for additional information. *Fair Value of Financial Instruments-At* December 31, 2023, the carrying value of the Company's financial instruments, including accounts receivable, due to affiliate, and contract liabilities, approximate their fair values (level 2) due to the nature of their short-tenn maturities. *Advisory Fees and Financing Fees* - The Company earns advisory fees from providing strategic advisory and merger and acquisition advisory services. The Company also earns financing fees from sourcing debt, equity and equity-linked capital for clients ranging from small, high growth business to large, multi-national corporations. Revenue for mergers and acquisition advisory and financing arrangements is generally recognized at the point in time that perfonnance under the arrangement is completed (the closing date of the transaction) or the contract is cancelled. However, for strategic advisory contracts, revenue is recognized over the time in which the performance obligations are simultaneously provided by the Company and consumed by the client. In some circumstances, significant judgement is needed to determine the timing and measure of progress appropriate for revenue recognition under a specific contract. Retainers and other fees received from clients prior to recognizing revenue are reflected as contract liabilities. At December 31, 2023, contract liabilities amounted to \$159 which is included on the Statement of Financial Condition. *Income Taxes and Unincorporated Business Tax* - The Company is a single-member LLC and is a wholly owned disregarded entity for federal and state income taxes. Accordingly, no federal and state provision (benefit) has been made in the financial statements with respect to the Company's earnings (losses). The Company does not file New York City Unincorporated Business tax as it is included in Holdco's tax filings. At December 31, 2023, management has determined that the Company had no uncertain tax positions that would require financial statement recognition. This detennination will always be subject to ongoing reevaluation as facts and circumstances may require. ## **3. ACCOUNTS RECEIVABLE** At December 31, 2022, the accounts receivable balance was \$635. At December 31, 2023, accounts receivable consists of the following: {8}------------------------------------------------ | | \$
136 | |----------------------|-----------| | Recoverable Expenses | 17 | | Fees Receivable | \$
119 | The Company's accounts receivables primarily consist of advisory fees, carried at amortized cost. The credit risk associated with accounts receivables is that any client with which it conducts business is unable to fulfill its contractual obligations. The allowance for credit losses is based on the Company's expectation of the collectability of such receivables. The Company considers factors such as historical experience, credit quality, age of balances and current and future economic conditions that may affect the Company's expectation of the collectability in determining the allowance for credit losses. Management monitors the credit risk of clients, including historical experience and current conditions. The Company estimates the credit loss on gross receivables of \$166 amounted to \$30 at December 31, 2023. # **4. INVESTMENT IN SECURITY** Investment in security is classified within Level 3 of the fair value hierarchy because this is a private company and it is not traded frequently, and therefore, there is little or no readily available observable transaction history. The fair value of this investment is estimated by the Company using various valuation methodologies, such as market approach, income, or a combination of these techniques. Inputs by the Company may include original transaction price, comparison to other public companies (peers) based on industry and size, comparable multiples of enterprise value to revenue and EBITDA, market quotes of similar instruments, and discounts for liquidity and other risk factors. Unobservable inputs are used to measure fair value to the extent that observable inputs are not available. The values assigned to investments and any unrealized gains or losses reported are based on available information and do not necessarily represent amounts that might be realized if a ready market existed, and such difference could be material. Furthermore, the ultimate realization of such amounts depends on future events and circumstances and therefore valuation estimates may differ from the value realized upon disposition of individual positions. The following provides information on valuation approaches and techniques and nature of significant unobservable inputs used to determine the value of Level 3 assets. | | Fair Value at
December 21,
2023 | Valuation
Techniques | Unobservable
Inputs | Range oflnputs
(Weighted
Average) | | |---------|---------------------------------------|-----------------------------|------------------------|-----------------------------------------|--| | Options | \$150 | Recent transaction
price | NIA | NIA | | For the year ended December 31, 2023, the Company received stock options in Fin Fit, LLC with a fair value of \$150 classified as a Level 3 investment, for advisory services provided. There were no transfers into or out of Level 3 of the fair value hierarchy during the year. {9}------------------------------------------------ # **5. ACCOUNTS PAYABLE AND ACCRUED EXPENSES** At December 31, 2023, accounts payable and accrued expenses consist of the following: | Accounts Payable | \$
147 | |------------------------|-----------| | Miscellaneous Accruals | 43 | | | \$
190 | # **6. RELATED PARTY TRANSACTIONS** The Company has an expense sharing agreement in place with Holdco that was amended as of September 1, 2023. Pursuant to this amended expense sharing agreement, the Company pays Holdco for shared services related to premise and occupancy, communication and information systems and for the use of certain fixed assets. Additionally, Holdco pays the Company for shared services related to communication and information systems. Holdco charged the Company for the year ended December 31, 2023 for the rental of furniture and equipment. Effective January 1, 2017, the Company entered into a licensing agreement with Cyndx Networks LLC ("Networks") (subsidiary of Holdco) for certain technology services used in support of its advisory and private placement clients. For the year ended December 31, 2023, the Company was charged for licensing fees and sales tax. For the year ended December 31, 2023, the Company charged Networks for general administrative expenses. Effective September 1, 2023, the Comp~y and its affiliates (Holdco and Networks), amended its existing agreement to allocate payroll for certain employees across the Company, Holdco and Networks. At December 31, 2023, the Company had a receivable of approximately \$7 due from affiliate related to these services. # **7. NET CAPITAL REQUIREMENT** Pursuant to the Uniform Net Capital Rule under the Securities & Exchange Act of 1934 (Rule 15c3-1 ), the Company is required to maintain minimum net capital of the greater of \$5 or 6 2/3% of the Company's aggregate indebtedness, as defined. At December 31, 2023, the Company had net capital of approximately \$95, which exceeds the minimum computed capital requirement of approximately \$23 by \$72. The Company's ratio of aggregate indebtedness to capital is 3.7 to I. # **8. CONCENTRATIONS** The Company recognized revenue from two clients which represented approximately 53% of revenue for the year ended December 31, 2023. These clients have no accounts receivable as of December 3 1, 2023. {10}------------------------------------------------ ### **9. EMPLOYEE BENEFIT PLAN** The Company maintains a 40 I (k) plan (the "Plan") covering all eligible employees, as defined. Voluntary contributions by the participants are allowed under the Plan up to the federal statutory limits. Contributions on behalf of the employees are discretionary and are determined annually by the Company. \*\*\*\*\*\* 7 1Page Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.