# MARWOOD GROUP LLC X-17A-5/A (2022-04-07) — Broker-dealer annual report

- Company: MARWOOD GROUP LLC
- Form: X-17A-5/A
- Filed: 2022-04-07
- Period: 2021-12-31
- Accession: 0001146183-22-000002
- CIK: 1146183
- File #: 8-53573
- Type: Broker-dealer
- Material weakness: No
- Auditor: KVM CPAs LLP
- Auditor location: Jericho, NY
- Contact: Thomas Modzelewski
- Phone: 212-532-3651
- Email: tjm@marwoodgroup.com
- Website: marwoodgroup.com
- Signed by: Thomas Modzelewski (COO)

Original filing: https://www.sec.gov/Archives/edgar/data/1146183/000114618322000002/MGARevisedPublic21.pdf

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|                                                                                                                                       | UNITED STATES<br>SECURITIES AND EXCHANGE COMMISSION<br>Washington, D.C. 20549 |                                                                                                                        | 0MB Number: 3235-0123<br>Expires: Oct. 31, 2023<br>Estimated average burden<br>hours per response: 12 |  |
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|                                                                                                                                       | ANNUAL REPORTS                                                                |                                                                                                                        | SEC FILE NUMBER                                                                                       |  |
|                                                                                                                                       | FORM X-17A-5                                                                  |                                                                                                                        | 8-53573                                                                                               |  |
|                                                                                                                                       | PART Ill                                                                      |                                                                                                                        |                                                                                                       |  |
|                                                                                                                                       |                                                                               |                                                                                                                        |                                                                                                       |  |
| Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934                             | FACING PAGE                                                                   |                                                                                                                        |                                                                                                       |  |
| FILING FOR THE PERIOD BEGINNING                                                                                                       | ___<br>__<br>0_l/_0_1/_2_1                                                    | __<br>AND ENDING                                                                                                       | ___<br>12_/_3_1/_2_1<br>_                                                                             |  |
|                                                                                                                                       | MM/DD/YY                                                                      |                                                                                                                        | MM/DD/YY                                                                                              |  |
|                                                                                                                                       | A. REGISTRANT IDENTIFICATION                                                  |                                                                                                                        |                                                                                                       |  |
|                                                                                                                                       |                                                                               |                                                                                                                        |                                                                                                       |  |
| Marwood Group, LLC<br>NAME OF FIRM:                                                                                                   |                                                                               |                                                                                                                        |                                                                                                       |  |
| TYPE OF REGISTRANT (check all applicable boxes):<br>!Kl Broker-dealer<br>D Check here if respondent is also an OTC derivatives dealer | D Security-based swap dealer                                                  | D Major security-based swap participant                                                                                |                                                                                                       |  |
| ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.)                                                                   |                                                                               |                                                                                                                        |                                                                                                       |  |
| 733 Third Avenue, 11th Floor                                                                                                          |                                                                               |                                                                                                                        |                                                                                                       |  |
|                                                                                                                                       | (No. and Street)                                                              |                                                                                                                        |                                                                                                       |  |
| New York                                                                                                                              | NY                                                                            |                                                                                                                        | 10017                                                                                                 |  |
| (City)                                                                                                                                | (State)                                                                       |                                                                                                                        | (Zip Code)                                                                                            |  |
| PERSON TO CONTACT WITH REGARD TO THIS FILING                                                                                          |                                                                               |                                                                                                                        |                                                                                                       |  |
| Thomas J. Modzelewski                                                                                                                 | 212-532-3651                                                                  | tjm@marwoodgroup.com                                                                                                   |                                                                                                       |  |
|                                                                                                                                       | (Area Code - Telephone Number)                                                | (Email Address)                                                                                                        |                                                                                                       |  |
| (Name)                                                                                                                                |                                                                               |                                                                                                                        |                                                                                                       |  |
|                                                                                                                                       | B. ACCOUNTANT IDENTIFICATION                                                  |                                                                                                                        |                                                                                                       |  |
| INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*                                                             |                                                                               |                                                                                                                        |                                                                                                       |  |
| KWMCPAsLLP                                                                                                                            |                                                                               |                                                                                                                        |                                                                                                       |  |
|                                                                                                                                       | (Name - if individual, state last, first, and middle name)                    |                                                                                                                        |                                                                                                       |  |
| 100 Jericho Quadrangle, Suite 220                                                                                                     | Jericho                                                                       | NY                                                                                                                     | 11753                                                                                                 |  |
| (Address)                                                                                                                             | (City)                                                                        | (State)                                                                                                                | (Zip Code)                                                                                            |  |
| 03/15/2016                                                                                                                            |                                                                               | 6245                                                                                                                   |                                                                                                       |  |
|                                                                                                                                       |                                                                               |                                                                                                                        |                                                                                                       |  |
|                                                                                                                                       | FOR OFFICIAL USE ONLY                                                         |                                                                                                                        |                                                                                                       |  |
|                                                                                                                                       |                                                                               |                                                                                                                        |                                                                                                       |  |
|                                                                                                                                       |                                                                               | * Claims for exemption from the requirement that the annual reports be covered by the reports of an independent public |                                                                                                       |  |

**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.** 

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#### **OATH OR AFFIRMATION**

| Thomas J. Modzelewski<br>l,                |                    | swear (or affirm) that, to the best of my knowledge and belief, the |
|--------------------------------------------|--------------------|---------------------------------------------------------------------|
| financial report pertaining to the firm of | Maiwood Group, LLC | • as of                                                             |
|                                            |                    |                                                                     |

December 31 2\_ig\_L, 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.

| SAMANTHA MclSAAC<br>*<br>Notary Public, State of New York<br>Registration No. 02MC6428456<br>Qualified in Kings County<br>Commission Expires Jan. 24, 2026 | ~~ |
|------------------------------------------------------------------------------------------------------------------------------------------------------------|----|
|                                                                                                                                                            |    |
| Notary Public                                                                                                                                              |    |
|                                                                                                                                                            |    |

Signature:(J~\_ Title: COO

#### **This filing\*\* contains {check all applicable boxes):**

- lXl (a) Statement of financial condition.
- lxl (b) Notes to consolidated statement of financial condition.
- u (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).**
- 8 (d) Statement of cash flows.
- 0 (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.
- □ (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable.
- D (i) Computation of tangible net worth under 17 CFR 240.18a-2.
- D (j) 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 240.15c3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable.
- 0 (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.15c3-3.
- D (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3.
- 0 (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.
- 0 (o) Reconci liations, 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 differenc,es exist, or a statement that no material differences exist.
- C (p} Summary of financial data for subsidiaries not consolidated in the statement of financial condition.
- !Xi (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable,
- D (r) Compliance report in accordance with 17 CFR 240.17a-S or 17 CFR 240.18a-7, as applicable.
- 0 (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable.
- [xi (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 report or financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable.
- =:J (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.
- 0 (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.
- 0 (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). □ (z) Other: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_
- 
- \*\*To *request confidential treatment* of *certain pornons* of this filing, see 17 CFR 240.17a-5(e}(3) *or* 17 CFR 240.18a-7(d)(2), as applicable.

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FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION (Confidential Per Rule 17a-5(e)(3))

FOR THE YEAR ENDED DECEMBER 31, 2021

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# CONTENTS

| Independent Auditor's Report     |  |
|----------------------------------|--|
| Financial Statements             |  |
| Statement of Financial Condition |  |
| Notes to Financial Statements    |  |

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![](_page_4_Picture_0.jpeg)

#### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Member of Marwood Group LLC

#### Opinion on the Financial Statement

We have audited the accompanying statement of financial condition of Marwood Group LLC as of December 31, 2021, 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 Marwood Group LLC as of December 31, 2021 in conformity with accounting principles generally accepted in the United States of America.

#### Basis for Opinion

This financial statement is the responsibility of Marwood Group LLC's management. Our responsibility is to express an opinion on Marwood Group LLC'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 Marwood Group 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 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.

#### Emphasis of Matter

As discussed in Note 9 to the financial statement, the Company has suffered recurring losses from operations. Management's evaluation of the events and conditions and management's plans to mitigate those matters are also described in Note 9. Our opinion is not modified with respect to that matter.

We have served as Marwood Group LLC's auditor since 2014.

Jericho, NY February 25, 2022

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# MARWOOD GROUP LLC

### (A Wholly-Owned Subsidiary of Marwood Group & Co. USA LLC)

## STATEMENT OF FINANCIAL CONDITION

### DECEMBER 31, 2021

| Assets<br>Cash                                              | S | 240,463     |     |         |
|-------------------------------------------------------------|---|-------------|-----|---------|
| Total Assets                                                |   |             | ಕಿತ | 240,463 |
| Liabilities and Member's Equity                             |   |             |     |         |
| Liabilities                                                 |   |             |     |         |
| Accrued expenses and other liabilities<br>Due to affiliates | S | 37<br>3,105 |     |         |
| Total Liabilities                                           |   |             | ಕಿತ | 3,142   |
| Contingencies                                               |   |             |     |         |
| Member's Equity                                             |   |             |     | 237,321 |
| Total Liabilities and Member's Equity                       |   |             | ತಿ  | 240,463 |

The accompanying notes are an integral part of these financial statements.

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# NOTES TO FINANCIAL STATEMENTS

# FOR THE YEAR ENDED DECEMBER 31, 2021

### Note 2 - Summary of Significant Accounting Policies (Continued)

### Revenue Recognition and Deferred Revenue (Continued)

Advisory services consist of consulting and success fees earned for financial advisory services performed in connection with advising clients regarding acquisitions, sales, transfers, exchanges or other dispositions of assets or ownership interests.

Consulting fees consist primarily of retainer fees for advisory services. These fees are determined in accordance with the terms of the related contracts and are recognized ratably over time to match the continued delivery of the performance obligations to the customer over the life of the contract.

Success fees consist of fees earned by the Company for advisory services. Success fees are recognized at an amount expected to be received for these services when the Company satisfies the performance obligations at a point in time.

| Timing of Revenue Recognition                                             | Consulting<br>Hees |           | Success<br>Fees |   | l'otal |        |
|---------------------------------------------------------------------------|--------------------|-----------|-----------------|---|--------|--------|
| Services transferred over time<br>Services transferred at a point in time | S                  | 90,000 \$ |                 | - | ಕೆ     | 90,000 |
|                                                                           |                    | 90,000 \$ |                 |   | es     | 90,000 |

Various economic factors affect revenues and cash flows. Consulting fees are billed over time (monthly, quarterly or annually) in advance of providing the service and are generally collected within 60 days. Success fees are billed after services have been provided and are generally collected within 30 days.

### Contract Balances

The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and deferred revenue (contract liabilities) on the Statement of Financial Condition. Amounts are billed in accordance with agreed-upon terms at periodic intervals (monthly, quarterly, or annually) for consulting fees or at a point in time for success fees. Generally, billing of consulting fees occurs prior to revenue recognition, resulting in contract liabilities.

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{11}------------------------------------------------

## NOTES TO FINANCIAL STATEMENTS

### FOR THE YEAR ENDED DECEMBER 31, 2021

### Note 5 - Retirement Plan

The Company has established a 401(k) plan. Employees are fully vested on 401(k) salary deferrals. Substantially all employees are eligible to participate. The Company matches employee contributions at the rate of 50% of the first 6% that is contributed. Company contributions were \$8,688 for the year ended December 31, 2021, however, because of forfeitures used during 2021, only \$3,750 is included in the statement of operations.

#### Note 6 - Net Capital Requirements

The Company is subject to the SEC Uniform Net Capital 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, to not exceed 15 to 1. At December 31, 2021, the Company had net capital of \$237,321 which was \$232,321 in excess if its required net capital of \$5,000. The Company's ratio of aggregate indebtedness to net capital was .0132 to 1 at December 31, 2021.

#### Note 7 - Recent Accounting Pronouncements

Management does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the accompanying financial statements.

### Note 8 - Concentration of Credit Risk

The Company maintains its cash with TD Bank N.A. Deposits with TD Bank N.A. are insured under the Federal Deposit Insurance Corporation for up to \$250,000. At times, during the year ended December 31, 2021, the Company maintained cash balances that exceeded the federally insured limits. However, at December 31, 2021, the balance in the bank did not exceed the federally insured limit. The Company has not incurred any losses related to this investment and believes the potential risk of loss to be minimal.

{12}------------------------------------------------

# NOTES TO FINANCIAL STATEMENTS

## FOR THE YEAR ENDED DECEMBER 31, 2021

### Note 9 - Going Concern and Related Party

Currently and over the last several years, the Company has incurred recurring losses and negative cash flows from operations. The major part of the Company's working capital requirements are provided by capital contributions from its Parent. As explained further in Note 3 - Related Party Transactions, the Company is also a party to an expense sharing agreement with its Parent.

The Parent has stated to the Company that their support through capital contributions will continue for the foreseeable future.

Having considered the above and having made due inquiries, management of the Company continues using the going concern basis in preparing the financial statements which assumes that the Company will continue in operation for the foreseeable future.

### Note 10 - Commitments and Contingencies

### Effects of COVID-19

On March 11, 2020, the World Health Organization declared the new strain of the coronavirus (COVID-19) a global pandemic. Federal, state, and local governments have since implemented various restrictions, including travel restrictions, border closings, restrictions on public gatherings, quarantining of people who may have been exposed to the virus, shelter-in-place restrictions and limitations on business operations. For the year ended December 31, 2021, management believes the COVID-19 pandemic did not have a material effect on the Company's operations. Subsequent to December 31, 2021, management believes that the related financial impact of this situation cannot be reasonably estimated at this time.

### Note 11 - Subsequent Events

The Company has evaluated subsequent events through February 25, 2022, the date the financial statements were available to be issued, and has concluded that no such events or transactions took place that would require disclosure herein.


Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.