# MUFSON HOWE HUNTER & PARTNERS LLC X-17A-5 (2022-04-01) — Broker-dealer annual report - Company: MUFSON HOWE HUNTER & PARTNERS LLC - Form: X-17A-5 - Filed: 2022-04-01 - Period: 2021-12-31 - Accession: 0001069954-22-000002 - CIK: 1296879 - File #: 8-66587 - Type: Broker-dealer - Material weakness: No - Auditor: Reid CPAs, LLP - Auditor location: Woodbury, NY - Contact: Joseph Sipkin - Phone: 917-579-9152 - Email: jsipkin@lernersipkin.com - Website: lernersipkin.com - Signed by: Joseph Sipkin (CFO & FinOp) Original filing: https://www.sec.gov/Archives/edgar/data/1296879/000106995422000002/mfsn21s.pdf --- {0}------------------------------------------------ ### **MUFSON HOWE HUNTER** & **PARTNERS LLC** #### **STATEMENT OF FINANCIAL CONDITION** DECEMBER 3 1, 202 1 {1}------------------------------------------------ **UNITED ST ATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ANNUAL REPORTS FORM X-17A-5 PARTIIl** FACING PAGE 0MB APPROVAL 0MB Number: 3235-0123 Expires: Oct. 31, 2023 Estimated average burden hours per response: 12 SEC FILE NUM ER - - - - 8- ⁶⁶⁵⁸⁷ 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 /21 MM/DD/YY AND ENDING **12/31 /21** --------- MM/DD/YY **A. REGISTRANT IDENTIFICATION** NAME OF FIRM: MUFSON HOWE HUNTER & PARTNERS LLC TYPE OF REGISTRANT (check all applicable boxes): Cic:I Broker-dealer O Security-based swap dealer D Major security-based swap participant D Check here if respondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) 1717 ARCH STREET, 39TH FLOOR (No. and Street) PHILADELPHIA PA (City) (State) PERSON TO CONTACT WITH REGARD TO THIS FILING 19103 (7ip Code) JOSEPH SIPKIN (917) 579-9152 JSIPKIN@LERNERSIPKIN.COM (Kame) (Area Code - Telephone ts:umber) (Email Address) **B. ACCOUNT AXT IDENTIFICATION** INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing• REID CPAS, LLP (Name - if individual. state last, first, and middle name) 7600 JERICHO TURNPIKE WOODBURY NY 11797 (Address) (City) (State) (Zip Code) 7/2/2013 5861 (Date of Registration with PCAOBXifapplicable) (PCAOB Registration Number, ifapplicable) **FOR OFFICIAL liSE 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. l ?a-S(e)( l)(ii), if applicable. Persons who arc to respond to the collection of information contained in this form are not required 10 respond unless the form displa)'S a currently valid 0MB control number. {2}------------------------------------------------ ### **AFFIRMATION** I, JOSEPH SIPKIN , swear (or affirm) that, to the best pf my knowledge and belief, the financial report pertaining ~o MUFSON HOWE HUNTER & PARTNERS U.(as of 12/31/21 , is Title 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. **CFO &FINOP** *,4/ ~1 I.~* **Notary Public** CORINNE J. ROCHE ~Jota~ Public, State ot **New Ycrk** No. O!R04823600, **Suffolk Cou.ity** Temi E::pires 1 /JJ /~a} 5 {3}------------------------------------------------ # **This filing\*\* contains (check all applic.able boxes):** - m (a) Statement of financial condition. - m (b) Notes to unconsolidated or consolidated statement of financial condition, as applicable. - D (c) Statement of income (loss) or, ifrbere is other comprehensive income in the period(s) presented, a statement of comprehensive income (as defined in § 2 10.1 -02 of Regulation S-X). - 0 (d) Statement of cash flows. - 0 (e) Statement of changes in stockholders' or partners' or members' or sole proprietor's equity, as applicable. - D (t) Statement of changes in liabilities subordinated to claims of creditors. - D (g) Notes to unconsolidated or consolidated financial statements., as applicable. - D (h) Computation of net capita] under 17 CFR 240. J 5c3-1 or 17 CFR 240. l 8a-J, as applicable. - D (i) Computation of tangible net worth under 17 CFR 240.18a-2. - D G) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240. I 5c3-3. - D (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240. J 5c3- 3 or Exhibit A to 17 CFR 240.18a-4, as applicable. - D (I) Computation for Determination of PAD Requirements u11uer Exhibit A to § 240. J 5c3-3. - D (m) Information relating to possession or control requirements for customers under 17 CFR 240. I 5c3-3. - D (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240. I 5c3- 3(p )(2) or 17 CFR 240.1 Sa-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. l 5c3-l, 17 CFR 240. J 8a-I, or 17 CFR 240. 18a-2, as applicable, and the reserve requirements under 17 CFR 240. l 5c3-3 or 17 CFR 240. I 8a-4, as applicable, if material differences exist, or a statement that no material differences exist. - 0 (p) Summary of frnancial data for subsidiaries not consolidated in the statement of financial condition. - m (q) Oath or affirmation in accordance with 17 CFR 240. I 7a-5, 17 CFR 240. J 7a- 12, or 17 CFR 240. I 8a-7, as applicable. - D (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240. 18a-7, as applicable. - 0 (s) Exemption report in accordance with 17 CFR 240. l 7a-5 or I 7 CFR 240. I 8a-7, as applicable. - @ (t) Independent public accountant's report based on an examination of the statement of financial condition. 0 (u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240. I 7a-5, 17 CFR 240.18a-7, or 17 CFR 240. I 7a-12, as applicable. - 0 (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240. l 7a-5 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. l 8a-7, as applicable. - D (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240. l5c3-1 e or I 7 CFR 240. I 7a- I 2, 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. I 7a- I 2(k). D (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.* {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) ## **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Board of Directors and Shareholders of Mufson Howe Hunter & Partners LLC #### **Opinion on the Financial Statements** We have audited the accompanying statement of financial condition of Mufson Howe Hunter & Partners LLC as of December 31 , 2021, and the related notes and supplemental schedules (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of Mufson Howe Hunter & Partners LLC as of December 31, 2021 , in conformity with accounting principles generally accepted in the United States of America. #### **Basis for** Opinion These financial statements are the responsibility of Mufson Howe Hunter & Partners LLC's management. Our responsibility is to express an opinion on Mufson Howe Hunter & Partners LLC's 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 Mufson Howe Hunter & Partners LLC 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 statements are 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 statements, 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 seNed as Mufson Howe Hunter & Partners LLC's auditor since 2019. Woodbury, NY March 31 , 2021 #### **REID CPAs. LLP Woodbury New York Boca Raton** / t- VV J-*^r "'* - ,.f(,,-, .. .1 ~ •V , . **516-802-0100 RoldLLP.com** {5}------------------------------------------------ ### **MUFSON HOWE HUNTER PARTNERS LLC** ### STATEMENT OF FINANCIAL CONDITION DECEMBER 31 , 2021 | ASSETS | | |---------------------------------------|--------------| | Cash | \$
18,607 | | Total assets | 18,607
\$ | | LIABILITIES AND MEMBER'S EQUITY | | | Liabilities: | | | Accounts payable and accrued expenses | \$
1,500 | | Total liabilities | 1,500 | | Member's Equity: | | | Total member's equity | 17,107 | | Total liabilities and member's equity | 18,607
\$ | {6}------------------------------------------------ # **MUFSON HOWE HUNTER** & **PARTNERS LLC** NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31. 2021 Note 1- ## NATURE OF OPERA TJONS AND SUMMARY OF SIGNIFICANT ACCOUNTlNG POLICIES (continued) # Concentration of Credit Risk Financial instruments which potentially subject MHHP to concentrations of credit risk consist principally of cash. **MHHP** deposits its cash with its bank, which is a high credit. quality financial institution. At times, these deposits may be in excess of the Federal Deposit Insurance Corporation ("FDTC") insurance Lirni t. ### rncome Taxes MHHP is a limited liability company (LLC) and a wholly-owned subsidiary of MHHC which is also a limited liability company. For both federal and state tax purposes. LLC's are taxed as partnerships. All income taxes on net earnings arc payable by the member of the LLC and, accordingly, no provision for income taxes is required. The Company accounts for uncertain tax positions using the accounting standard for uncertainty in income taxes. This standard clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements by prescribing a threshold and measurement anributcs of the financial statement recognition and measurement of a tax position taken or expect to be taken in a tax return. 1t also provides guidance on dcrecognition. classification, interest and penalties, accounting for interim periods, disclosure and transition. It is the Company's policy to record interest and penalties related to uncertain income tax positions, if any. as a component of income tax expense. As of December 31, 202 l. the Company bad no uncertain tax pos1t1ons that would require recognition or disclosure in the financial statements. The Company does not file income tax returns because it is a disregarded entity for income tax purposes. The Tax Cuts and Jobs Act ("the Act") which was enacted on December 22, 2017 made key changes to the U.S. tax law, including the reduction of the U.S. federal corporate tax rate. Accounting Standards Codification 740 requires the efforrs of changes in tax rates and laws on deferred tax balances to be recognized in the period in which the legislation in enacted. Since the earnings and losses of the Company are passed through to its member. the Company concluded that there was no impact to the fmancial statements for the year ended December 31, 2021. {7}------------------------------------------------ # **MUFS01'i HOWE HUNTER** & **PARTNERS LLC** 1 OTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 3 I, 2021 **Note 1** - **NATURE OF OPERA TlONS AND SUM..'\1IARY OF SIGNIFICANT ACCOUNTII\G POLICIES (continued)** #### Revenue **Recognition** Effective January T, 2018, the Company adopted ASC Topic 606, Revenue from Contracts with Customers ("ASC Topic 606"). The new revenue recognition guidance requires that an entity recognize revenue due to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance requires an entity to follow a five step model to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) the entity satisfies a performance obligation. ln determining the transaction price, an entity may include variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur wben the uncertainty associated with the variable consideration is resolved. The Company applied the modified retrospe<.:live method of adoption which resulced in no adjustment to retained earnings as of January I, 2018. The new revenue recognition guidance does not apply to revenue associated with financial instruments, interest income and expense, leasing and insurance contracts. #### **Note 2 - REGULATORY REQUlREMENTS** MHHP is exempt from the provisions of rule I 5c3-3 under the Securities Exchange Act of I 934 (reserve requirement for broker/dealers) in that MHHP does not hold funds or securities for customers. Pursuant to the net capital provisions of rule l 5c3- I under the Securities Exchange Act of 1934, MHHP is required to maintain a minimum net capital, as defined, equal to the greater of SS,000 or 6-2/3% of aggregate indebtedness. Net capital and the related *net* capital ratio may fluctuate on a daily basis. At December 31 , 202 1, MHHP had a net capital of \$17,107 which was \$12,107 in excess of its required net capital of\$5,000. The Company's net capital ratio was 8.77%. #### **Note 3- RELATED PARTIES** MHHC is a holding company and all broker dealer related business is conducted through MHHP and alJ non-broker dealer business is conducted through MHHA. {8}------------------------------------------------ #### **MUFSON HOWE HUNTER & PARTNERS LLC** NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECCMDER 31. 2021 #### **Note 3** - **RELATED PARTIES (continued)** MHHP has an expense sharing agreement with MHHA. Under the expense sharing agreement, **MHHP** is allocated its portion of indirect operating expenses (including payroll, rent, office supplies, computer and other operating expenses). During the year ended December 31 , 2021, **MHHP** was allocated costs in the amount ofS2.000. #### **Note 4- SUBSEQUENT EVENTS** The Company has performed an evaluation of events that have occurred subsequent to December 31, 202 1, and through March 31, 2022 the date of the filing of this report. There have been no material subsequent events that occurred during such period that would require disclosure in this rcpon or would be required to be recognized in the financial statements as of December 31, 202 l. #### **Note 5- GOING CONCERN** The accompanying statements have been prepared assuming the Company will continue as a going concern. The Company had no revenues in 2021 and a loss from operations. This raises substantial doubt about the Company's ability to continue as a going concern. The accompanying financial statements do nor include any adjustments that might result from the outcome of this uncertainty. Management has pledged any additional support to the Company to enable it to continue as a going concern. #### **Note 6** - **COVID-19** rn March 2020, the World Health Organization declared the outbreak of a novel coronavirus (COVJD-19) as a pandemic which continues to spread throughout the United States and has adversely impacted global commercial aclivity and contributed to significant declines and volatility in financial markets. The outbreak could have a continued material adverse impact on economic and market conditions and continue to trigger periods of global economic slowdown. While the development and distribution of a vaccine presents the real possibility of ultimate containment of COVrD-19, the outbreak continues to present ongoing uncertainty and risk with respect to the Company, its perfom,ance, and its financial results. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.