# AVIDITI FINANCIAL, LLC X-17A-5 (2021-03-31) — Broker-dealer annual report - Company: AVIDITI FINANCIAL, LLC - Form: X-17A-5 - Filed: 2021-03-31 - Period: 2020-12-31 - Accession: 0001811184-21-000002 - CIK: 1811184 - File #: 8-70523 - Material weakness: No - Auditor: Weaver & Tidwell, L.L.P. - Auditor location: Dallas, TX - Contact: TRACIE E O'KEEFE - Phone: 7326917010 - Signed by: Ryan E. Schlitt (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1811184/000181118421000002/AFAuditPUBLIC.pdf --- {0}------------------------------------------------ ![](_page_0_Picture_0.jpeg) ## **AVIDITI FINANCIAL,** LLC Financial Report December 31 , 2020 Filed as PUBLIC information pursuant to Rule 17a~5(e)(3) under the Securities Exchange Act of 1934. {1}------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 205A9 ### **ANNUAL AUDITED REPORT FORM X-17A-5 PART Ill** | SEC FILE NUMBER | |-----------------| | 8-70523 | **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 01/01/2020 | | -----------
AND ENDING 12/31/2020 | | | |---------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------|--------------------------------------|--------------------------------|--| | | MM/DD/YY | | MM/DD/YY | | | | A. REGISTRANT IDENTIFICATION | | | | | NAME oF BROKER-DEALER: Aviditi Financial, LLC
ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | OFFICIAL USE ONLY | | | | | | FIRM 1.D. NO. | | | 8117 Preston Road, Suite 450 | | | | | | | (No. and Street) | | | | | Dallas | TX | | 75225 | | | (City) | (State) | | (Zip Code) | | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
Tracie E. O'Keefe, (732) 691-7010 | | | | | | | | | (Area Code - Telephone Number) | | | | B. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* | | | | | | Weaver & Tidwell, L.L.P. | | | | | | | (Name- if individual, state last. first, middle name) | | | | | 2300 N. Field St, Ste 1000 | Dallas | TX | 75201 | | | (Address) | (City) | (State) | (Zip Code) | | | CHECK ONE: | | | | | | !certified Public Accountant | | | | | | Public Accountant | | | | | | D
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/or the exemption See Section 240.17aR5(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. SEC 1410 (11-05) {2}------------------------------------------------ #### **OATH OR AFFIRMATION** | J, Ryan E. Schlitt, CEO | , swear ( or affirm) that, to the best of | | | | |-----------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------|--|--| | my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of
Aviditi Financial, LLC | | -------------------------------------------~'
as | | | | of December 31 | 20 20 | are true and correct. I further swear ( or affirm) that | | | | | | neither the company nor any partner, proprietor, principal officer or director has any proprietary interest in any account | | | | classified solely as that ofa customer, except as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Signature | | | | | | | | | | | | CEO | | | | | | Title | | | | | | | | | | | | | | | | Tijs report** contains (check all applicable boxes): | | | | | | lb<•) Facing Page. | | | | | | I.ti (b) Statement of Financial Condition. | | | | | | of Comprehensive Income (as defined in §210.1-02 of Regulation S-X). | | D (c) Statement of Income (Loss) or, if there is other comprehensive income in the period(s) presented, a Statement | | | | | | | | | | 8 (d) Statement of Changes in Financial Condition.
□ (e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital. | | | | | | (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 U) | | A Reconciliation, including appropriate explanation of the Computation of Net Capital Under Rule 15c3-1 and the | | | | Computation for Determination of the Reserve Requirements Under Exhibit A of Rule l5c3-3, | | | | | | | | D (k) A Reconciliation between the audited and unaudited Statements of Financial Condition with respect to methods of | | | | consolidation.
(I)
An Oath or Affirmation. | | | | | | (m) A copy of the SIPC Supplemental Report. | | | | | | | | 0 (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.* J *7a-5(e)(3).* {3}------------------------------------------------ #### **CONTENTS** | Report of Independent Registered Public Accounting Firm | | | | | |---------------------------------------------------------|--|-----|--|--| | Financial Statements | | | | | | Statement of financial condition | | 2 | | | | Notes to financial statements | | 3-4 | | | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) #### **Report of Independent Registered Public Accounting Firm** The Member Aviditi Financial, LLC #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Aviditi Financial, LLC (the Company) as of December 31, 2020 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 , 2020 in conformity with accounting principles generally accepted in the United Slates. #### **Basis for Opinion** This financial statement is the responsibility of the Company's management. Our responsibility is to express an opinion on this 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. WEAVER AND TIDWELL, L.L.P. We have served as the Company's auditor since 2020. Dallas, Texas March 29, 2021 > Weaver and Tidwell, L.L.P. 2300 North Field Street, Suite 1000 I Dallas, Texas 75201 Main: 972.490.1970 > > CPAs AND ADVISORS I WEAVER.COM {5}------------------------------------------------ # **Aviditi Financial, LLC Statement of Financial Condition December 31, 2020** ## **Assets** | Cash | \$
443,766 | |---------------------------------|---------------| | Prepaid expenses | 41,065 | | Total assets | \$
484,831 | | Liabilities and Member's Equity | | | | | | Liabilities | | | Equity | | | Equity -
Aviditi Capital Advisors, LLC | \$
1,049,028 | |-------------------------------------------|-----------------| | Net Loss | (564,198) | | Total equity | 484,831 | | Total liabilities and member's equity | \$
484,831 | | | | See Notes to Financial Statements. {6}------------------------------------------------ #### **Aviditi Financial, LLC** #### **Notes to Financial Statements** #### **Note 1. Nature of Operations and Summary of Significant Accounting Policies** **Organization and nature of business:** Aviditi Financial, LLC (the Company) is a Texas limited liability company and a wholly-owned subsidiary of Aviditi Capital Advisors, LLC (the Member or the Parent). The Company was formed on August 26, 2019 and commenced operations on September 1, 2019. The Company is registered as a broker-dealer with the Securities and Exchange Commission (the SEC) and a member of the Financial Industry Regulatory Authority (FINRA). The Company advises on mergers and acquisitions of private companies. The Company also intends to advise on and/or participate in the structure and/or as a placement agent in private placements for private companies, but did not earn any such revenue during the report period. The Company does not claim an exemption from SEA Rule 15c3-3, in reliance to Footnote 74 of SEC Release 34-70073, as discussed in Q&A 8 of the related FAQ issued by SEC staff. The Firm does not and will not (1) directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, (2) does not and will not carry accounts of or for customers and (3) does not and will not carry PAB accounts. Accordingly, the Company is recognized by FINRA under the "Non-Covered Firm" provision and is not subject to the requirements of the provisions of Rule 15c3-3(e) (The Customer Protection Rule) and does not maintain a Special Account for the Exclusive Benefit of Customers. A summary of the Company's significant accounting policies follows: The Company follows generally accepted accounting principles (GAAP) as established by the Financial Accounting Standards Board (FASB) to ensure consistent reporting of financial condition, results of operations, and cash flows. **Use of estimates:** The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. **Revenue recognition:** The Company recognizes revenue in a manner that depicts the transfer of goods or services to customers in amounts that reflect the consideration the company expects to receive for those goods or services. In order to apply this core principle, the Company will apply the following five steps in determining the amount of revenues to recognize: (i) identify the contract; (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price amongst the performance obligations in the contract and (v) recognize revenue when (or as) the performance obligation is satisfied. Each of these steps involves management's judgment and an analysis of the material terms and conditions of the contract. Advisory fees and related direct expenses are recognized at point in time that the services have been rendered and the income and direct expenses are reasonably determinable. Accounts receivable represents amounts due for these services. No amounts were due at December 31, 2020. **Income taxes:** Under the provisions of the Internal Revenue Code, the Company is treated as a division of the Member, which is a flow-through entity. Accordingly, no provision or benefit for federal income taxes has been made as the Company's taxable income or loss is included in the tax return of the Member. FASB guidance requires the evaluation of tax positions taken as expected to be in the course of preparing the Company's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained "when challenged" or "when examined" by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense and liability in the current year. Management has determined that there are no material uncertain income tax positions at December 31, 2020. {7}------------------------------------------------ #### **Aviditi Financial, LLC** #### **Notes to Financial Statements** #### **Recently adopted accounting pronouncements:** **In** February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2016-02, Leases (Topic 842) (ASU 2016-02), to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet. We have evaluated the new standard effective January **1,** 2019, and determined that it did not have a material impact on the Company. #### **Note 2. Related-Party Transactions** The Company has entered into an agreement with the Parent whereby compensation and certain other expenses of the Company are paid by the Parent and reimbursed by the Company. From the period from inception through December 31, 2020, the statement of operations includes \$674,029 of such expenses. The Parent has forgiven the entire expense sharing amounts from inception through December 31, 2020 in an effort to fund initial Company operations. Therefore the Company recognized these amounts as capital contributions as forgiven by the Parent. #### **Note 3. Concentration of Credit Risk** The Company maintains its cash at two bank accounts at two separate banks, one of which is in amounts that, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. Management believes that the Company is not exposed to any significant credit risk on cash. #### **Note 4. Indemnifications** **In** the normal course of business, the Company enters into contracts that contain a variety of representations and warranties that provide indemnifications under certain circumstances. The Company's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Company that have not yet occurred. The Company believes that it is unlikely it will have to make material payments under these arrangements and has not recorded any contingent liability in the financial statements for these indemnifications. #### **Note 5. Net Capital Requirements** The Company is subject to the SEC Uniform Net Capital Rule (SEC Rule 15c3-1), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 8 to 1 in its first year of operations (and the rule also provides that equity capital may not be withdrawn or cash distributions paid if the resulting net capital ratio would exceed 5 to 1 ). At December 31, 2020, the Company had net capital of \$443,766, which was \$438,766 in excess of its required net capital of \$5,000. The Company's aggregate indebtedness to net capital ratio was 0.00 to 1. #### **Note 6. Subsequent Events** The Company has evaluated subsequent events for potential recognition and/or disclosure through March 29, 2021, the date the financial statements were issued, noting none. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.