# AVID CAPITAL ADVISORS LLC X-17A-5 (2025-03-18) — Broker-dealer annual report - Company: AVID CAPITAL ADVISORS LLC - Form: X-17A-5 - Filed: 2025-03-18 - Period: 2024-12-31 - Accession: 0001938265-25-000002 - CIK: 1938265 - File #: 8-70956 - Type: Broker-dealer - Material weakness: No - Auditor: Ernst Wintter & Associates LLP - Auditor location: Walnut Creek, CA - Contact: Scott Brown - Phone: 917-696-8331 - Email: will@avidcapitaladvisors.com - Website: avidcapitaladvisors.com - Signed by: William D Hawthorne (Chief Executive Officer) Original filing: https://www.sec.gov/Archives/edgar/data/1938265/000193826525000002/avidshort24.pdf --- {0}------------------------------------------------ # AVID CAPITAL ADVISORS LLC (SEC ID NO. 8-70956) ## ANNUAL AUDIT REPORT DECEMBER 31, 2024 ### PUBLIC DOCUMENT Filed Pursuant to Rule 17a-5(e)(3) as a Public Document {1}------------------------------------------------ **PUBLIC** **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** OMBAPPROVAL 0MB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12 ## **ANNUAL REPORTS FORM X-17A-5 PART Ill** SEC FILE NUMBER 8-70956 **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 | ----------
01/01/24 | AND ENDING | -----------
12/31/24 | | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|-----------------------------------------|------------------------------------------|--| | | MM/DD/YY | | MM/DD/YY | | | | A. REGISTRANT IDENTIFICATION | | | | | NAME OF FIRM: Avid Capital Advisors LLC | | | | | | TYPE OF REGISTRANT (check all applicable boxes):
IY3' Broker-dealer
□ Security-based swap dealer
□ Check here if respondent is also an OTC derivatives dealer | | □ Major security-based swap participant | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | | 1427 Mountain Meadow | | | | | | | (No. and Street) | | | | | McCall | Idaho | | 83638 | | | (City) | (State) | | (Zip Code) | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | William D. Hawthorne | (415) 948-5672
will@avidcapitaladvisors.com | | | | | (Name) | (Area Code - Telephone Number) | | (Email Address) | | | | B. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | | | Ernst Wintter & Associates LLP | | | | | | | (Name - if individual, state last, first, and middle name) | | | | | 675 Ygnacio Valley Blvd, Suite A200 | Walnut Creek | California | 94596 | | | (Address) | (City) | (State) | (Zip Code) | | | February 24, 2009 | | 3438 | | | | | | | (PCAOB Reg;,tcaUoo N,mbe,, tt appUcable) | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | \* 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-5(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.** {2}------------------------------------------------ #### **OATH OR AFFIRMATION** | I, | William D. Hawthorne | | swear {or affirm) that, to the best of my knowledge and belief, the | |----|-------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------| | | financial report pertaining to the firm of Avid Capital Advisors LLC | | as of | | | ----------=
D;:e=c=e.:.:. m=b=e.:r-=-3_,_, 1 2024 | | . 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. | \\\\\\\11111111,,i
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'/11,/ION NU~~'C.' ,,,,,_ | | | | This filing•• contains (check all applicable boVJW,1111111\\\ | | | | | Ill (a) Statement offinancial 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. | | | | 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. | | | - D (g) Notes to consolidated financial statements. - D (h) Computation of net capital under 17 CFR 240.1Sc3-1 or 17 CFR 240.lBa-1, as applicable. - D (i) Computation of tangible net worth under 17 CFR 240.18a-2. - D U) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.1Sc3-3. - D (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.1Sc3-3 or Exhibit A to 17 CFR 240.lBa-4, as applicable. - D (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.1Sc3-3. - 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 240.15c3-3(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 240.1Sc3-3 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 financial condition. - @ (q) Oath or affirmation in accordance with 17 CFR 240.17a-S, 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 240.17a-5 or 17 CFR 240.18a-7, as applicable. - ~ (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 t he 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-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.l 7a-12(k). D (z) Other: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_ - .. To request confidentiol 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. {3}------------------------------------------------ ### **TABLE OF CONTENTS** | Report of Independent Registered Public Accounting Firm | 1 | |---------------------------------------------------------|-----| | Statement of Financial Condition | 2 | | N ates to the Financial Statement | 3-6 | {4}------------------------------------------------ *ERNST WINTTER* & *ASSOCIATES LLP Certified Public Accountants* *675 Ygnacio Valley Road, Suite A200 Walnut Creek, CA 94596* *(925) 933-2626 Fax (925) 944-6333* #### **Report of Independent Registered Public Accounting Firm** To the Members of Avid Capital Advisors LLC #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Avid Capital Advisors LLC (the "Company") as of December 31, 2024, 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, 2024 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. We have served as the Company's auditor since 2023. Walnut Creek, California March 14, 2025 {5}------------------------------------------------ #### **STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2024** #### **ASSETS** | Cash | \$
147,047 | |---------------------|---------------| | Deferred commission | 8,333 | | Prepaid expenses | 19,981 | | Total assets | \$
175,361 | #### **LIABILITIES AND MEMBERS' EQUITY** | Liabilities | | |---------------------------------------|---------------| | Accounts payable and accrued expenses | \$
1,575 | | Commission payable | 12,500 | | Deferred revenue | 83,333 | | Total liabilities | 97,408 | | Members' equity | 77,953 | | Total liabilities and members' equity | \$
175,361 | The accompanying notes are an integral part of this financial statement. {6}------------------------------------------------ ### **NOTES TO THE FINANCIAL STATEMENT DECEMBER 31, 2024** #### **1. Organization** Avid Capital Advisors LLC (the "Company") was organized as a limited liability company in the State of Delaware on April 12, 2022. As a limited liability company, the liability of members is limited to the value of their membership interest. On February 17, 2023, the Company was accepted as a member of Financial Industry Regulatory Authority ("FINRA'') and was registered with the Securities and Exchange Commission ("SEC") as a securities broker dealer. The Company assists companies in raising capital through the private placement of securities and provides consulting and advisory services related to mergers and acquisitions. #### **2. Significant Accounting Policies** ### *Basis of Presentation* The accompanying financial statement has been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). ### *Use of Estimates* The preparation of financial statements in conformity with U.S. GAAP may require management to make estimates and assumptions that affect certain reported amounts and disclosures during the reporting period. Actual results could differ from those estimates. ### *Fair Value of Financial Instruments* Unless otherwise indicated, the fair values of all reported assets and liabilities that represent financial instruments approximate the carrying values of such amounts. #### *Cash and Cash Equivalents* For purposes of the statement of cash flows, the Company considers all highly liquid investments, with a maturity of three months or less at the time of purchase, to be cash equivalents. There were no cash equivalents at December 31, 2024. #### *Accounts Receivable* Accounts receivable represents amounts that have been earned and billed to clients in accordance with the terms of the Company's engagement letters with respective clients that have not yet been collected. The Company accounts for estimated credit losses on financial assets measured at an amortized cost basis and certain off-balance sheet credit exposures in accordance with F ASB ASC 326-20, Financial Instruments - Credit Losses. F ASB ASC 326-20 requires the Company to estimate expected credit losses over the life of its financial assets and certain off-balance sheet exposures as of the reporting date based on relevant information about past events, current conditions, and reasonable and supportable forecasts. The Company records the estimate of expected credit losses as an allowance for credit losses. For financial assets measured at an amortized cost basis the allowance for credit losses is reported as a valuation account on the Statement of Financial Condition that is deducted from the asset's amortized cost basis. Per management's analysis, no allowance for credit losses was considered necessary as of December 31, 2024 as no amounts were receivable. {7}------------------------------------------------ ### **NOTES TO THE FINANCIAL STATEMENT DECEMBER 31, 2024** #### **2. Significant Accounting Policies** *(continued)* #### *Income Taxes* The Company is taxed as a partnership under the Internal Revenue Code and a similar state statute where, in lieu of income taxes, the Company passes 100% of its taxable income and expenses to its members. Therefore, no liability for federal or state income taxes is included in this financial statement. The Company does not believe it has any uncertain tax positions. All tax returns are open to inspection. #### *Single Reportable Segment* The Company is engaged in a single line of business as a securities broker-dealer which is comprised of investment banking services. The Company has identified its Chief Executive Officer as the chief operating decision maker ("CODM"), who uses net income/loss to evaluate the results of the business, predominantly in the forecasting process, to manage the Company. Additionally, the CODM use excess net capital (see Note 8), which is not a measure of profit and loss, to make operational decisions while maintaining capital adequacy, such as whether to maintain profits or pay distributions. The Company's operations constitute a single operating segment and therefore, a single reportable segment, because the CODM manage the business activities using information of the Company as a whole. The accounting policies used to measure the profit and loss of the segment are the same as those described in the policies listed above. #### **3. Revenue from Contracts with Customers** #### *Contract Balances* Income is recognized upon completion of the related performance obligation and when an unconditional right to payment exists. The timing of revenue recognition may differ from the timing of customer payments. Fees received prior to the completion of the performance obligation are recorded as deferred revenue on the Statement of Financial Condition until such time when the performance obligation is met. Deferred revenue was \$0 and \$83,333 at January **1,** 2024 and December 31, 2024, respectively. Alternatively, a receivable is recognized when a performance obligation is met prior to receiving payment by the customer. Receivables related to revenue from contracts with customers totaled \$100,000 and \$0 as of January **1,** 2024 and December 31, 2024, respectively. #### *Contract Costs* The cost to fulfill contracts consists of out-of-pocket expenses and commissions. The Company is contractually entitled to reimbursement of out-of-pocket expenses. These costs are evaluated for capitalization on a contract-by-contract basis and recognized upon completion of the related performance obligation. During the year ended December 31, 2024, the Company deferred \$12,500 of commission costs relating to an investment advisory engagement. For the year ended December 31, 2024, \$4,167 of capitalized costs were amortized. As of December 31, 2024, \$8,333 of commission costs remained deferred and is presented as deferred commission on the Statement of Financial Condition. {8}------------------------------------------------ #### **NOTES TO THE FINANCIAL STATEMENT DECEMBER 31, 2024** #### **4. Related Party Transactions** On February 1, 2024, the Company entered into a consulting agreement with Sugar Capital Management LLC ("SCM"), a company under common control. Per this agreement, the Company provides consulting services to SCM in exchange for a fee. The Company's results of operations and financial position could differ significantly from those that would have been obtained if the entities were autonomous. #### **5. Retirement Plan** The Company has a 401 (k) plan (the "Plan") that is available to all eligible employees. The Plan is a defined contribution plan, which is intended to qualify under Section 401 ( a) of the Internal Revenue Code. As a defined contribution plan, it is not covered under Title IV of ERISA and, therefore, benefits are not insured by the Pension Benefit Guaranty Corporation. The Company matches employee contributions up to three percent of their compensation, plus fifty percent of contributions between three and five percent. #### **6. Concentration of Credit Risk** Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash. For the year ended December 31, 2024, the Company maintains cash balances which, at times, may exceed federally insured limits. The Company has not experienced any losses on its cash deposits. #### **7. Membership Interests** The Company has three types of membership interests: Preferred Units, Common Units and Incentive Units. Each Common Unit is entitled to one vote, and no voting rights are available to Preferred Units or Incentive Units. Incentive Units are authorized to be issued to the manager, officers, employees, consultants or other service providers of the Company. The Incentive Units are to participate in all future profits of the Company and have no value on the date they are granted. The vesting period of Incentive Units is at the discretion of the Company. At December 31, 2024, there were no Preferred Units outstanding and 1,000 Common Units issued. In 2024, 35 Incentive Units vested, totaling 105 vested Incentive Units. At December 31, 2024, 45 Incentive Units remained unvested and are expected to vest within the next 27 months. No units were issued during the year ended December 31, 2024. {9}------------------------------------------------ ### **NOTES TO THE FINANCIAL STATEMENT DECEMBER 31, 2024** #### **8. Net Capital Requirements** The Company is subject to the Securities and Exchange Commission's uniform net capital rule (Rule 15c3- 1) which requires the Company to maintain a minimum net capital equal to or greater than \$5,000 and a ratio of aggregate indebtedness to net capital not exceeding 15 to 1, both as defined. As of December 31, 2024, the Company's net capital was \$49,639 which exceeded the requirement by \$44,639. #### **9. Subsequent Events** The Company's management has evaluated subsequent events through March 14, 2025, the date which the financial statement was issued. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.