# HAROLD W. DANCE INC. X-17A-5 (2024-04-01) — Broker-dealer annual report - Company: HAROLD W. DANCE INC. - Form: X-17A-5 - Filed: 2024-04-01 - Period: 2023-12-31 - Accession: 0000200194-24-000001 - CIK: 200194 - File #: 8-12160 - Type: Broker-dealer - Material weakness: No - Auditor: Mercurius & Associates LLP - Auditor location: New Delhi, K7 - Contact: Daniel J. Neeley - Phone: 4357528484 - Email: dan@harolddance.com - Website: harolddance.com - Signed by: Daniel J. Neeley (Vice President) Original filing: https://www.sec.gov/Archives/edgar/data/200194/000020019424000001/publfinal.pdf --- {0}------------------------------------------------ ## HAROLD W. DANCE, INC. DBA HAROLD DANCE INVESTMENTS ## STATEMENT OF FINANCIAL CONDITION December 31, 2023 {1}------------------------------------------------ | Introductory Section: | Page | |---------------------------------------------------------|------| | Facing Page Annual Audited Report | 3 | | Oath or Affirmation | 4 | | Financial Section: | | | Report of Independent Registered Public Accounting Firm | 5 | | Statement of Financial Condition | 6 | | Notes to Financial Statements | 7 | {2}------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 OMB APPROVAL OMB Number: 3235-0123 Expires: Oct. 31, 2023 Estimated average burden hours per response: 12 ## ANNUAL REPORTS FORM X-17A-5 PART III | | SEC FILE NUMBER | | | | |--|-----------------|--|--|--| | | 008-12160 | | | | 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 01/01/2023 MM/DD/YY MM/DD/YY 12/31/2023 A. REGISTRANT IDENTIFICATION # NAME OF FIRM: HAROLD DANCE INVESTMENTS TYPE OF REGISTRANT (check all applicable boxes): Broker-dealer □ Check here if respondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) ## 72 E CENTER STREET | | | (No. and Street) | | | |---------------------------------------------------------------------------------------------------------|-------------------------------------|--------------------------------------------|-----------------|------------| | LOGAN | | UT | | 84321 | | (City) | | (State) | | (Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | DANIEL J. NEELEY | 435-752-8484
DAN@HAROLDDANCE.COM | | | | | (Name) | | (Area Code - Telephone Number) | (Email Address) | | | B. ACCOUNTANT IDENTIFICATION | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
Mercurius & Associates LLP | | | | | | (Name - if individual, state last, first, and middle name) | | | | | | A-94/8, WAZIPUR INDUSTRIAL AREA, MAIN RING ROAD NEW DE H | | | INDIA | 110052 | | (Address) | | (City) | (State) | (Zip Code) | | 02/10/2009 | | | 3223 | | | (Date of Registration with PCAOB)(if applicable) | | (PCAOB Registration Number, if applicable) | | | | | | FOR OFFICIAL USE ONLY | | | \* Claims for exemption from the requirement that the annual 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)(1)(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 OMB control number. {3}------------------------------------------------ #### OATH OR AFFIRMATION | DANIEL | J. NEELEY | | | swear (or affirm) that, to the best of my knowledge and belief, the | |---------------------------------------------------------------------|-----------|----------------------------------|----------------|-------------------------------------------------------------------------------------------------------------------------------------| | tinancial report pertaining to the firm of HAROLD DANCE INVESTMENTS | | | | as of | | 12/31 | | | | 2 023, 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. | | | | | | STATE OF UTAH } | | | | | | COUNTY OF CACHE) | | NOTARY PUBLIC | | | | SUBSCRIBED AND SWORN TO BEFORE ME ON | | 28 DAY OF MARCH, 202 ENNY KARREN | Signature: | | | BY DANIEL J. NEELEY. | | 724519 | | | | | | MY COMMISSION EXPIRES Title: | | | | WITNESS MY HAND AND OFFICIAL SEAL | | MAY 9, 2026 | VICE PRESIDENT | | | | | STATE OF UTAH | | | | Notary Public | | | | | | | | | | | 0 #### This filing\*\* contains (check all applicable boxes): - (a) Statement of financial condition. - □ (b) Notes to consolidated statement of financial condition. - □ (c) Statement of income (loss) or, if there is other comprehensive 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. - [] (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - [ (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-1, as applicable. - [ (i) Computation of tangible net worth under 17 CFR 240.18a-2. - □ (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. - [ (I) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. - [ (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - O (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. - □ (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. - □ (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-5, 17 CFR 240.18a-7, as applicable. - | (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - [ (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. - [ (u) Independent public accountant's report based on an examination of the financial statements under 17 CFR 240.17a-5, 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-5 or 17 CFR 240.18a-7, as applicable. - | (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. - | (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-1e or 17 CFR 240.17a-12, as applicable. - □ (y) Report describing any material inadequacies 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 240.170-5(e)(3) or 17 CFR 240.18a-7(d)(2), as applicable. {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) MERCURIUS & ASSOCIATES LLP Formerly known as AJSH & Co LLP +91 11 4559 6689 info@masllp.com 2 www.masllp.com #### Report of Independent Registered Public Accounting Firm To the Shareholders and Board of Directors of Harold W. Dance, Inc. DBA Harold Dance Investments #### Opinion on the Financial Statement We have audited the accompanying statement of financial condition of the Harold W. Dance, Inc. DBA Harold Dance Investments (the "Company") as of December 31, 2023 and the related notes (collectively referred to as the "financial statement"). In our opinion, the financial statement present fairly, in all material respect, 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 The financial statement is the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements 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 from 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 of the financial statement provide a reasonable basis for our opinion. Mercurius & Associates LLP (Formerly known as AJSH & Co LLP) We have served as the Company's Auditor since 2021. New Delhi, India Date: Maxch 28, 202 ![](_page_4_Picture_17.jpeg) LLPIN: AAG-1471 A-94/8, Wazirpur Industrial Area New Delhi-110052, India {5}------------------------------------------------ # Harold W. Dance, Inc. DBA Harold Dance Investments Statement of Financial Condition (expressed in actual dollars, except share amounts) | | As of
Dec 31,
2023 | |-------------------------------------------------------------------------------------|----------------------------| | ASSETS | | | Current assets: | | | Cash and cash equivalents | \$
71,846 | | Securities owned: | | | Money market funds | 525,807 | | Mutual funds | 255,555 | | Fees receivable | 265,841 | | Prepaid expenses | 8,023 | | Total current assets | 1,127,072 | | | | | Property and equipment, net of accumulated depreciation of \$25,722
Total assets | 141,850
\$
1,268,922 | | LIABILITIES AND STOCKHOLDERS' EQUITY | | | Accounts Payable and accrued liabilities | 102,804 | | Total liabilities | 102,804 | | Commitment, contingencies, and guarantees (see Note 12) | | | Stockholder's equity: | | | Common stock \$1.00 par value; 50,000 authorized shares; 1,000 | | | shares issued and outstanding | 1,000 | | Additional paid-in capital | 299,000 | | Retained earnings | 866,118 | | Total stockholders' equity | 1,166,118 | | Total liabilities and stockholders' equity | \$
1,268,922 | The accompanying notes are an integral part of the consolidated financial statements. {6}------------------------------------------------ # Harold W. Dance, Inc. DBA Harold Dance Investments Notes to Financial Statements #### Note 1 - Organization and Summary of Significant Accounting Policies #### Organization Harold W. Dance, Inc. DBA Harold Dance Investments (the "Company") is a Registered Investment Advisor ("RIA") and 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 Utah Corporation conducting business primarily in Northern Utah. The Company offers investment advisory services and agency transactions in mutual funds and annuities. ## Concentrations of Credit Risk The Company's cash balances maintained with banks are insured by the Federal Deposit Insurance Corporation up to \$250,000. The Company's account balances maintained with brokerage firms are insured up to \$500,000 by the Securities Investor Protection Corporation with a limit of \$250,000 for cash. The Company's mutual fund investments are concentrated within a few large fund groups. The Company reviews, as necessary, the financial standing of these funds. The Company has not experienced any credit losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents. The Company sells mutual funds for various mutual fund companies for which services the Company receives commission payments. In the event these mutual fund companies do not fulfill their commission payment obligations, the Company may be exposed to risk. It is the Company's policy to review, as necessary, the financial condition of these mutual fund companies. #### Securities Owned The Company measures all equity investments that do not result in consolidation and are not accounted for under the equity method at fair value with the change in fair value included in net income. Quoted market prices are used to determine the fair values of equity securities with readily determinable fair values. For equity securities without readily determinable fair values, the Company has elected the measurement alternative under which the Company measures these investments at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The Company assesses each of these investments on an individual basis. Equity securities with readily determinable fair values that are not accounted for under the equity method are not assessed for impairment, since they are carried at fair value with the change in fair value included in net income. Equity securities without readily determinable fair values are reviewed each reporting period to determine whether a significant event or change in circumstances has occurred that may have an adverse effect on the fair value of each investments. {7}------------------------------------------------ ## Note 1 - Organization and Summary of Significant Accounting Policies (continued) ### Securities Owned (continued) When such events or changes occur, the Company evaluates the fair value compared to the corresponding cost basis in the investment. #### Fees Receivable Fees receivable are amounts due from mutual fund and variable annuity companies for distribution services and amounts due from clients for investment advisory services. Fees receivable are unsecured and are carried at their estimated collectible amounts. No provision for losses on fees receivable exists based on past historical experience, with the mutual fund and variable annuity companies and with clients, combined with current information from those companies and clients. Management believes that the historical loss information is a reasonable base on which to determine expected credit losses because the nature of those receivables (i.e., the risk characteristics of its vendors have not changed significantly over time). ## Equipment Items over \$2,000 are capitalized as equipment and are carried at cost. Depreciation is computed using the straight-line method over the estimated useful lives of 3 to 7 years. The cost of property disposed of and related accumulated depreciation is removed from the accounts at the time of disposal, and gain or loss is credited or charged to operations. #### Use of Estimates in the Preparation of Financial Statements The process of preparing financial statements in conformity with generally accepted accounting principles requires the use of estimates and assumptions regarding certain types of assets, liabilities, revenues, and expenses. Such estimates primarily relate to unsettled transactions and events as of the date of the financial statements. Accordingly, upon settlement, actual results may differ from estimated amounts. ## Note 2 - Restricted Cash The Company had a special reserve bank account for the benefit of customers under Rule 15c3-3 of the Securities and Exchange Commission. The use of this account was discontinued during the year ending December 31, 2022. {8}------------------------------------------------ ### CONFIDENTIAL #### Note 3 - Securities Owned Securities owned are recorded at fair market value and consist of the following: | Money market funds | 525,807 | |-----------------------------------|-----------| | Mutual funds, at cost | 236,103 | | Unrealized holding gains (losses) | 19,452 | | | \$781,362 | #### Note 4 - Fees Receivable Fees receivable consist of the following: | Commissions receivable | \$ | 265,841 | |------------------------|----|---------| |------------------------|----|---------| As of December 31, 2023, no allowance for doubtful accounts was deemed necessary. #### Note 5 - Fair Value Measurements The Company's investments are reported at fair value in the accompanying statements of financial position. The methods used to measure fair value may produce an amount that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The Company follows a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. {9}------------------------------------------------ ## CONFIDENTIAL #### Note 5 - Fair Value Measurements (continued) The Company uses the following valuation techniques to measure fair value for its assets and liabilities: - Level 1 Quoted market prices in active markets for identical assets or liabilities; - Level 2 Significant other observable inputs (e.g. quoted prices for similar items in active markets, quoted prices for identical or similar items in markets that are not active, inputs other than quoted prices that are observable such as interest rate and yield curves, and marketcorroborated inputs); - Level 3 Unobservable inputs for the asset or liability, which are valued based on management's estimates of assumptions that market participants would use in pricing the asset or liability. The following table provide financial assets carried at fair value: | | December 31, 2023 | | | | | | |---------------------------|-------------------|---------|---------|---------|--|--| | | Level 1 | Level 2 | Level 3 | Total | | | | Fair value hierarchy: | | | | | | | | Mutual funds - balanced | \$
255,555 | | | 255,555 | | | | Money market funds | 525,807 | | | 525,807 | | | | Investments at fair value | | | \$ | 781,362 | | | The fair value of the mutual funds and money market funds is based on the quoted net asset value or unit cost of the shares held by the Company at year-end. #### Note 6 - Related Party Transactions The Company paid compensation to owners and members of their immediate families. Compensation expense for the year ended December 31, 2023, was \$510,398. During the year ended December 31, 2023, the Company entered into a short-term lease agreement with an affiliated entity 360 North Main, LLC. The lease expense for the year related to this agreement was \$45,000 #### Note 7 - Net Capital Requirements The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (SEC Rule 15c3-1), which requires the maintenance of minimum net capital, and also requires that the ratio of aggregate indebtedness to net capital shall not exceed 15 to 1. For 2023, the Company's minimum net capital requirement was \$5,000. At December 31, 2023, the Company had net capital of \$686,555, which was \$681,555 in excess of its required net capital of \$5,000. The Company's net capital ratio was 0.15 to {10}------------------------------------------------ #### Note 8 – Exemption Provision Harold W. Dance, Inc. DBA Harold Dance Investments (the "Company") is a registered brokerdealer subject to Rule 17a-5 promulgated by the Securities and Exchange Commission (17 C.F.R. §240.17a-5, "Reports to be made by certain brokers and dealers"). The Company claimed exemption from 17 C.F.R. § 240.15c3-3 under the following provisions of 17 C.F.R. §240.15c3- 3 (k): (1). The Company met the identified exemption provisions in 17 C.F.R. §240.15c3-3(k)(1) through the most recent fiscal year without exception. #### Note 9 - Subsequent Events The Company evaluated its December 31, 2023, financial statements for subsequent events through the date the financial statements were issued. The Company is not aware of any subsequent events which would require recognition or disclosure in the financial statements. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.