Value

The AI industry is relatively new, and most accountants and CPA firms have not yet adapted their practices to provide the most value to AI companies. Many people still do not fully grasp what artificial intelligence is, how it works, or why it is so important. That is where Lackawanna Capital Advisors is different. We have assembled a team of young, sharp accountants, economists, and information technology academics who understand the AI industry and the accounting and financial demands that accompany it.

Our Services

Financial Reporting

Financial reporting is the backbone of accounting. Not only is financial reporting essential to regulatory compliance and tax preparation, but it is also critical to decision-making and performance evaluation. The numbers tell a story, and it is important that management is aware of what the numbers are saying before adjusting prices, applying for a loan, hiring employees, or doing a plethora of other things. Not to mention, third parties (i.e., financial institutions, investors, individual creditors, prospective partners, etc.) will most likely ask to see this information before lending your company money or acquiring equity. Lackawanna Capital Advisors stays on top of financial reporting from bookkeeping to tackling even the most daunting financial accounting matters confronting AI companies, such as R&D expense tracking and capitalization, revenue recognition, cost of sales calculation, stock-based compensation, capitalization of intangible assets, fair value determinations, and more. Then, your financials are presented clearly and in a timely manner to be used for compliance, stakeholder reporting, and management.

Representation

With Lackawanna Capital Advisors, you will never have to go into financial conversations alone. Whether you are discussing a general liability contract with your insurance agency, meeting with potential clients, negotiating price terms with vendors, or hashing out loan terms with the bank, we will be by your side supporting you, negotiating on your behalf, and providing financial context when appropriate.

Internal Control

Once our professionals are adequately acquainted with your company’s operations, we will begin to suggest and implement a system of internal controls designed to mitigate waste, prevent fraud, and deter abuse. We also strive to improve your company’s financial health by “cutting the fat” and removing barriers stifling value creation.

Tax Planning and Preparation

Since our firm will already be intimately aware of your company’s financial situation and the regulatory environment surrounding the AI industry, Lackawanna Capital Advisors is best-positioned to handle your taxes. The tax landscape, especially in the AI industry, has been rapidly evolving, and it is of the utmost importance that your tax preparer can juggle the current federal, state, and local jurisdictional tax provisions associated with AI companies. Our firm will also be heavily involved in the planning process throughout the tax year to help your company accelerate deductions, utilize NOLs, and mitigate your overall tax liability.

Value Creation

In doing all of the above, Lackawanna Capital Advisors will be able to help your company achieve what it presumably set out to do originally: create value. Our firm will advise your company’s management from a financial perspective, with our professional opinions always buttressed by financial models, forecasts, and comparative analyses. Our overarching goal is to catapult the operational side of your business to the next level by giving it a solid financial foundation on which to launch from.

Founder and CEO, RJ Palonis, began his career in public accounting as a consultant with Deloitte’s multistate tax team, where he advised some of the world’s largest private equity firms. Seeking to apply his expertise more directly, RJ transitioned into industry as the Controller for Serenity Care, a group of assisted living facilities in Northeastern Pennsylvania. During his time there, he saw firsthand the gap in tailored finance and accounting support available to growing businesses—an insight that inspired him to launch Lackawanna Capital Advisors. Lackawanna Capital Advisors began as a professional services firm specializing in exit planning, M&A advisory, and fractional accounting services. The firm has since pivoted to focus primarily on its fractional accounting service offerings, specifically for AI startups and ancillary industries (i.e. data centers, energy, electrical infrastructure, and skilled tradespeople). Lackawanna Capital Advisors strives to become a financial keystone in the AI movement that will inevitably revolutionize the global economic and political landscape forever. Our mission is to grow with the companies pioneering the AI movement, not just provide one-off services.

Background

Pricing

We want to grow with our clients, and we fully realize that most of our clients are still in the startup or growth stage of their development. As such, we understand that working capital is likely razor thin in most scenarios. We are open to discussing various options for compensation, whether that be installment payments, equity compensation, stock appreciation rights, or a combination of compensation structures.