# MD GLOBAL PARTNERS, LLC X-17A-5 (2022-03-28) — Broker-dealer annual report

- Company: MD GLOBAL PARTNERS, LLC
- Form: X-17A-5
- Filed: 2022-03-28
- Period: 2021-12-31
- Accession: 0001170989-22-000003
- CIK: 1364891
- File #: 8-67356
- Type: Broker-dealer
- Material weakness: No
- Auditor: WWC, PC
- Auditor location: San Mateo, CA
- Contact: John Miller
- Phone: 917-620-6006
- Email: jmiller@mdgpartners.com
- Website: mdgpartners.com
- Signed by: Owen May (Managing Member)

Original filing: https://www.sec.gov/Archives/edgar/data/1364891/000117098922000003/publica.pdf

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**UNITED STATES SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549** 

0MB APPROVAL 0MB Number: 3235-0123 Expires: Oct. 31, 2023 Estimated average burden hours per response: 12

SEC FILE NUMBER

## **ANNUAL REPORTS FORM X-17A-5 PART** Ill

**FACING PAGE** 

|                                                                       | Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 |                                             |                                         |  |  |  |
|-----------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------|---------------------------------------------|-----------------------------------------|--|--|--|
|                                                                       | AND ENDING 12/31/2021                                                                                     |                                             |                                         |  |  |  |
|                                                                       | FILING FOR THE PERIOD BEGINNING O 1/01/2021<br>MM/DD/YY                                                   |                                             |                                         |  |  |  |
|                                                                       | A. REGISTRANT IDENTIFICATION                                                                              |                                             |                                         |  |  |  |
|                                                                       | NAME oF FIRM: MD Global Partners LLC                                                                      |                                             |                                         |  |  |  |
| TYPE OF REGISTRANT (check all applicable boxes):<br>[!] Broker-dealer | □ Security-based swap dealer<br>D 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.)                                       |                                             |                                         |  |  |  |
| 329 E 63rd St. Suite 3J                                               |                                                                                                           |                                             |                                         |  |  |  |
|                                                                       | (No. and Street)                                                                                          |                                             |                                         |  |  |  |
| New York                                                              |                                                                                                           | 10065                                       |                                         |  |  |  |
|                                                                       | NY<br>(State)<br>(City)                                                                                   |                                             |                                         |  |  |  |
|                                                                       | PERSON TO CONTACT WITH REGARD TO THIS FILING                                                              |                                             |                                         |  |  |  |
| John Miller                                                           | 917 -620-6006                                                                                             |                                             | jmiller@mdgpartners.com                 |  |  |  |
| (Name)                                                                | (Area Code - Telephone Number)                                                                            |                                             | (Email Address)                         |  |  |  |
|                                                                       | B. ACCOUNTANT IDENTIFICATION                                                                              |                                             |                                         |  |  |  |
| WWC, PC                                                               | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*                                 |                                             |                                         |  |  |  |
|                                                                       | (Name- if individual, state last, first, and middle name)                                                 |                                             |                                         |  |  |  |
| 2010 Pioneer Ct.                                                      | San Mateo                                                                                                 | CA                                          | 94403                                   |  |  |  |
| (Address)                                                             | (City)                                                                                                    | (State)                                     | (Zip Code)                              |  |  |  |
|                                                                       | 1171<br>03/16/2004                                                                                        |                                             |                                         |  |  |  |
| (ie of Reglmafoo with PCAOB)llf applicable)                           |                                                                                                           | (PCAOB Regl~ratloo N,mbec, If applicable) I |                                         |  |  |  |
|                                                                       | 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.** 

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#### OATH ORAfFIRMATlON

| I, Owerit.-y |  | ______ |  | ~-·swear(()( aff,rm) that. lo tn,,, ~l of my knov,lf-flt!C ~ml belief. thi> |  |      |       |  |        |  |
|--------------|--|--------|--|-----------------------------------------------------------------------------|--|------|-------|--|--------|--|
|              |  |        |  | (.n,,n<iJt report pt'rt:l n1n11 to the film of ~Part--.UC                   |  | ____ | _____ |  | , ~ of |  |

12/31 \_\_\_\_\_\_\_ , 2071 , ~ true and rorrl'rt I fi.rther SWf'~r (or athrmj t'>at 1"1P1thl'f the company nDf any pattner, offic.l'-r, tfit~"c.tc>r, Of equ,vai,f,nt pPr s.on, .1, the ca~ may **bt>,** !'l.H any p,o~metarv mh•resl io an)' accoont cf,r,; lied solPly as lha\ of a rustornPr.

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# **MD Global Partners, LLC**

Financial Statement

December 31, 2021

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![](_page_3_Picture_0.jpeg)

![](_page_3_Picture_1.jpeg)

#### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Manager and Member of MD Global Partners, LLC

#### **Opinion on the Financial Statement**

We have audited the accompanying statement of financial condition of MD Global Partners, LLC (the "Company") as of December 31, 2021, and the related notes ( collectively referred to as the "financial statement"). In our opinion, the financial statements present fairly, in all material respects, the financial position of MD Global Partners, 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 MD Global Partners, LLC's management. Our responsibility is to express an opinion on MD Global Partners, 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 MD Global 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 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.

WwL 1 P-c ,

WWC, P.C. We have served as MD Global Partners, LLC's auditor since 2018.

San Mateo, CA March 17, 2022 

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MD Global Partners, LLC Table of Contents December 31, 2021

Statement of Financial Condition Notes to Financial Statements

1 2-4 

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MD Global Partners, LLC Statement of Financial Condition December 31, 2021

| Assets                                   |               |
|------------------------------------------|---------------|
| Cash and cash equivalents                | \$<br>75,644  |
| Deposits with clearing broker            | 50,000        |
| Commissions receivable                   | 18,676        |
| Fees Receivable                          | 3,333         |
| Prepaid Expenses                         | 11,037        |
| Total Assets                             | \$<br>158,690 |
|                                          |               |
| Liabilities                              |               |
| Accounts payable and accrued liabilities | \$<br>10,310  |
| Commissions payable                      | 12,267        |
| Total Liabilities                        | \$<br>22,577  |
|                                          |               |
| Member's Equity                          |               |
| Member's equity                          | \$<br>136,113 |
| Total member's equity                    | \$<br>136,113 |
|                                          |               |
| Total liabilities and member's equity    | \$<br>158,690 |
|                                          |               |

The accompanying notes are an integral part of this financial statement

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MD Global Partners, LLC Notes to Financial Statements For the year ended December 31, 2021

#### **Note 1: GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

#### **General**

Black Capital Partners, LLC was formed on November 21, 2005 in Delaware and commenced operations on April 1, 2006. The Company is registered as a broker-dealer pursuant to the Securities Exchange Act of 1934, became a member of the Financial Industry Regulatory Authority ("FINRA"} on September 18, 2006 and is a member of the Securities Investor Protection Corporation ("SIPC"}. In 2007, the Company changed its name to May Davis Partners, LLC and in 2009 the Company changed its name to MD Global Partners, LLC (the "Company"}.

The Company provides a variety of broker-dealer services that include placement agent (or finder) for investment companies and private equity funds; third party marketing and providing M&A advisory services.

#### **Summary of Significant Accounting Policies**

#### Presentation and Estimates

The presentation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

### Cash and Cash Equivalents

For purposes relating to the statement of cash flows, the Company has defined cash equivalents as highly liquid investments, with original maturities of less than three months, that are not held for sale in the ordinary course of business.

#### Accounts and Commissions Receivable

Receivables are recorded and stated at face value when collectability is reasonably assured. The Company incurred no bad debt expense during 2020. Management assessed its outstanding receivables at December 31, 2020 and determined that an allowance was unnecessary as the balance was due from its clearing broker.

#### Investments

The Company has adopted FASB ASC 320, Investments - Debt and Equity Securities. As such, marketable securities held by the Company are classified as trading securities and stated at their fair market value based on quoted market prices. Realized gains or losses from the sale of marketable securities are computed based on specific identification of historical cost. Unrealized gains or losses on marketable securities are computed based on specific identification of recorded cost, with the change in fair value during the period included in income. The Company held no marketable securities at December 31, 2021.

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MD Global Partners, LLC Notes to Financial Statements For the year ended December 31, 2021

#### **Note 2: DEPOSIT WITH CLEARING ORGANIZATION**

The Company has a brokerage agreement with RBC Capital Markets ("Clearing Broker"} to carry its account and the accounts of its clients as customers of the Clearing Broker. The Clearing Broker has custody of the Company's cash balances which serve as collateral for any amounts due to the Clearing Broker as well as collateral for securities sold short or securities purchased on margin. Interest is paid monthly on these cash deposits at the average overnight repurchase rate. The balance at December 31, 2021 was \$50,000.

#### **Note 3: INCOME TAXES**

The Company operates as a single member limited liability company and is treated as a disregarded entity for income tax purposes. Accordingly, all tax effects of the Company's income or loss are passed through to the member and no provision or liability for federal or state income taxes is included in these financial statements.

## **Note 4: CONCENTRATIONS OF RISK**

Credit Risk

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash balances which at times may be in excess of insured amounts. It is the

Company's policy to review, as necessary, the credit standing of its counterparties.

### **Note 5: COMMITMENT AND CONTINGENCIES**

The Company was named in a lawsuit by a third party who has no relationship with the Company. The suite seeks \$47,500 in damages. The Company believes the suit has no merit. The Company has filed a civil suit against a former consultant and a former employee for theft, fraud, and breach of fiduciary duty.

#### **Note 6: GUARANTEES**

FASB ASC 460, Guarantees, requires the Company to disclose information about its obligations under certain guarantee arrangements. FASB ASC 460 defines guarantees as contracts and indemnification agreements that contingently require a guarantor to make payments to the guaranteed party based on changes in an underlying factor (such as an interest or foreign exchange rate, security or commodity price, an index or the occurrence or nonoccurrence of a specified event) related to an asset, liability or equity security of a guaranteed party. This guidance also defines guarantees as contracts that contingently require the guarantor to make payments to the guaranteed party based on another entity's failure to perform under an agreement as well as indirect guarantees of indebtedness of others.

The Company has issued no guarantees at December 31, 2021 or during the year then ended.

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#### **Note 7: RECENTLY ISSUED ACCOUNTING STANDARDS**

The Financial Accounting Standards Board (the "FASB") has established the Accounting Standards Codification ("Codification" or "ASC") as the authoritative source of generally accepted accounting principles ("GAAP") recognized by the FASB. The principles embodied in the Codification are to be applied by nongovernmental entities in the preparation of financial statements in accordance with GAAP in the United States. New accounting pronouncements are incorporated into the ASC through the issuance of Accounting Standards Updates ("ASUs").

For the year ending December 31, 2021, various ASUs issued by the FASB were either newly issued or had effective implementation dates that would require their provisions to be reflected in the financial statements for the year then ended.

The Company has either evaluated or is currently evaluating the implications, if any, of each of these

pronouncements and the possible impact they may have on the Company's financial statements. In most cases, management has determined that the pronouncement has either limited or no application to the Company and, in all cases, implementation would not have a material impact on the financial statements taken as a whole.

#### **Note 8: 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 requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. Rule 15c3-1 also provides that equity capital may not be withdrawn, or cash dividends paid if the resulting net capital ratio would exceed 10 to 1. Net capital and aggregate indebtedness change day to day, but on December 31, 2021, the Company had net capital of \$121,743 which was \$116,743 in excess of its required net capital of \$5,000 and the Company's ratio of aggregate indebtedness of \$22,578 to net capital was .1855 to 1, which is less than the 15 to 1 maximum allowed.

#### **Note 9: SUBSEQUENT EVENTS**

The Company has evaluated events subsequent to the balance sheet date for items requiring recording or disclosure in the financial statements. The evaluation was performed through the date the financial statements were available to be issued. Based upon this review, except for the issues disclosed in Note 6 above, the Company has determined that there were no events which took place that would have a material impact on its financial statements.


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