# MUFSON HOWE HUNTER & PARTNERS LLC X-17A-5/A (2021-05-03) — Broker-dealer annual report - Company: MUFSON HOWE HUNTER & PARTNERS LLC - Form: X-17A-5/A - Filed: 2021-05-03 - Period: 2020-12-31 - Accession: 0001296879-21-000002 - CIK: 1296879 - File #: 8-66587 - Material weakness: No - Auditor: GR Reid Associates LLP - Auditor location: Woodbury, NY - Contact: Michael Mufson - Phone: 212-399-5400 - Signed by: Michael Mufson (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1296879/000129687921000002/mufson.pdf --- {0}------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 0MB APPROVAL 0MB Number: 3235-0123 Expires: October 31, 2023 Estimated average burden hours oerres0onse ...... 12.00 # ANNUAL AUDITED REPORT FORM X-17A-5 PARTIII | SEC FILE NUMBER | | |-----------------|--| | &-66587 | | **FACING PAGE Information Required of Brokers and Dealers Pursuant to Section 17** of the **Securities Exchange Act of 1934 and Rule 17a-5 Thereunder** | REPORT FOR THE PERIOD BEGINNING January 1, 2020 | | | AND ENDING December 31, 2020
MM/DD/VY | | |--------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------|-------------------|------------------------------------------|--| | | MM/DD/VY | | | | | | A. REGISTRANT IDENTIFICATION | | | | | NAME OF BROKER-DEALER: MUFSON HOWE HUNTER & PARTNERS, LLC
ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | OFFICIAL USE ONLY | | | | | | FIRM I.D. NO. | | | | 1717 Arch Street, 39th floor | | | | | | | (No. and Street) | | | | | Philadelphia | PA | | 19103 | | | (City) | (State) | | (Zip Code) | | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
Michael Mufaon | | | 212-399-5400 | | | | | | (Area Code - Telephone Number) | | | | B. ACCOUNT ANT IDENTIFICATION | | | | | | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report•
GR REID ASSOCIATES LLP | | | | | | | (Name - ifindlv/dual. :state la:st,ftr:st, middle name) | | | | | 7600 Jericho Tpke., Suite 400 Woodbury | | NY | 11797 | | | (Address) | (City) | (State) | (Zip Code) | | | CHECK ONE: | | | | | | I
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certified Public Accountant | | | | | | Public Accountant | | | | | | B
Accountant not resident in United States or any of its possessions. | | | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | *•claims for exemption from the requirement that the annual report be covered by the opinion of an independent public accountant must be suppor/ed by a stalement of facts and circumstances relied on as the basis for the exemplion. See Section 240.* J *7 a-5 (e)(2)* SEC 1410 (11·05) Potential persons who are to respond to the collectlon of Information contained In thla form are not required to respond unless the form **dlsplays a** currenlly valld 0MB control number. {1}------------------------------------------------ ### **OATH OR ·AfoFIRMATION** I, Michael Mufson , swear (or al'firm) that, to the best or my knowledge and belief the accompanying 11nancial slalemcnl and supporting schedules pertaining to the firm of Mulson Howe Hunter & Partners, LLC , as # of December 31 . 20 ~--- ~-, arc true and correct. I further swear ( or affirm) that neither the company nor any partner, proprietor, principal officer or director has any proprietary interest in any account classified solely as that ofa customer, except as follows: This report\*\* contains (check all applicable boxes): 0 (a) Facing Page. [2] (b) Statement of Financial Condition. Title ,,~;iV~t;:,, JULIE RODGERS i~~'E. No tory Publlc•Sta1e of Florida **~l1fifflf** Commi ssion II GG 149797 ,;.~'11 ••0:~- My Commissl ori Expires ''""'' October 09 , 202 1 D (c) St,1temcnt of Income (Loss) or, if there is other comprehensive income in the pcriod(s) presented, a Statement of Comprehensive Income (as defined in §210.1-02 of Regulation S-X ). B (cl) Statement of Changes in Financial Condition. (c) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital. D (f) Statement of Changes in Liabilities Subordinated to Claims of Creditors. § (g) Computation of Net Capital. (h) Computation for Determination of Reserve Requirements l'ursuanl to Rule 15c3-3. (i) Information Relating to the Possession or Control Requirements Under Ruic I 5c3-3. D (j) A Reconciliation. including appropriate explanation or the Computation of Net Capital Under Rule I 5c3-I and the Computation for Determination of the Reserve Requirements Under Exhibit A of Ruic l 5c3-3. **0** (k) A Reconciliation between the audited and unaudited Stall:ments of Financial Condition with respect to methods of con so I idation. 0 (I) An Oath or A flirmation. 0 {m) A copy of the SIPC Supplemental Report. 0 (11) A report describing any material inadequacies found to exist or found to have existed since the date oflhe previous audit. \*\* *For co11ditio11,1· c?f cn11fldcmtial trentme11t* r1/' *certai11 portions* q/' *this .filing, see section 24/J.* / *7a-5(e)(3).* {2}------------------------------------------------ # **MUFSON HOWE HUNTER & PARTNERS LLC** STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2020 {3}------------------------------------------------ ![](_page_3_Picture_1.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, 2020, 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, 2020, 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. *».* -12. *~id.,~* I *LLP* We have served as Mufson Howe Hunter & Partners LLC's auditor since 2019. Woodbury, NY March 31, 2021 {4}------------------------------------------------ # **MUFSON HOWE HUNTER PARTNERS LLC** STATEMENT Of' FINANCIAL CONDITION DBCEMBBR 31, 2020 | ASSETS
Cash
Total assets | \$
\$ | 13,607
13,607 | |---------------------------------------------------------------------------------------------------------------|----------|------------------| | LIABILITIES AND MEMBER'S EQUITY
Liabilities:
Accounts payable and accrued expenses
Total liabilities | \$ | 1,000
1,000 | | Member's Equity
Total liabilities and member's equity | \$ | 12 607
13,607 | *The accompanying notes are an integl'al part of th/J statement.* {5}------------------------------------------------ ## **MUFSON HOWE HUNTER** & **PARTNERS LLC** NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020 ### **Note 1- NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** ### **Orgriniwtiou** Mufson Howe Hunter & Partners LLC **("MHHP")** and Mufson Howe Hunter Advisors LLC **("MHHA")** are wholly-owned subsidiaries of Mufson Howe Hunter and Company LLC **("MHHC").** MHHP is a broker-dealer registered with the Securities and Exchange Commission ("SEC") and is a member of the Financial Industry Regulatory Authority ("FINRA"). MHHP is an independent investment bank serving middle-market companies, primarily in the Mid-Atlantic region of the United States. MHHP provides strategic and financial advice to clients on such matters as financing growth, mergers and acquisitions, recapitalizations or sale of their businesses. The firm also raises debt and equity from banks, private equity firms and other institutional sources to finance such activities. MHHP is a member of the Securities Investor Protection Corporation ("SIPC"). The accompanying statements have been prepared assuming the Company will continue as a going concern. The Company had no revenues in 2020 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 not include any adjustments that might result from the outcome of this uncertainty. Management has pledged additional support to the Company to enable it to continue as a going concern for a period of at least one year from the issuance date of these financial statements. ### **Basis of Presentation** The Company's financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("US GAJ\P"). ### **Accounting Estinrnh!s** The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. {6}------------------------------------------------ ## **MUFSON HOWE HUNTER** & **PARTNERS LLC** NOTES TO FINANCIAL ST A TEMENTS FOR THE YEAR ENDED DECEMBER 3 1, 2020 ### **Note 1- NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING 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 ("FDIC") insurance limit. ### **Income 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 are 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 attributes of the financial statement recognition and measurement of **a tax** position taken or expect to be taken in a tax return. It also provides guidance on derecognition, 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, 2020, the Company had no uncertain tax positions 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 efforts 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 financial statements for the year ended December 31, 2020. {7}------------------------------------------------ ## **MUFSON HOWE HUNTER** & **PARTNERS LLC** NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020 **Note 1** - **NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)** ### **Re enm.' Recognition** Effective January I, 20 I 8, 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. In 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 when the uncertainty associated with the variable consideration is resolved. The Company applied the modified retrospective method of adoption which resulted in no adjustment to retained earnings as ofJanuary 1, 2018. The new revenue recognition guidance does not apply to revenue associated with financial instruments, interest income and expense, leasing and insurance contracts. ### **Note2** - **REGULATORY REQUIREMENTS** MHHP is exempt from the provisions of rule 15c3-3 under the Securities Exchange Act of 1934 (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-l under the Securities Exchange Act of 1934, MHHP is required to maintain a minimum net capital, as defined, equal to the greater of \$5,000 or 6-2/3% of aggregate indebtedness. Net capital and the related net capital ratio may fluctuate on a daily basis. At December 31, 2020, MHHP had a net capital of \$12,607 which was \$7,607 in excess of its required net capital of \$5,000. The Company's net capital ratio was 7.934%. ### **Notc3** - **RELATED PARTIES** MHHC is a holding company and all broker dealer related business is conducted through MHHP and all non-broker dealer business is conducted through MHHA. {8}------------------------------------------------ ## **MUFSON HOWE HUNTER** & **PARTNERS LLC** NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020 ### **Note3** - **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, 2020, MHHP was allocated costs in the amount of \$15,998. ### **Note4- SUBSEQUENT EVENTS** The Company has performed an evaluation of events that have occurred subsequent to December 31, 2020, and through March 31, 2021 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 report or would be required to be recognized in the financial statements as of December 31, 2020. #### **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 2020 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 not 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** In March 2020, the World Health Organization declared the outbreak of a novel coronavirus (COVID-19) as a pandemic which continues to spread throughout the United States and has adversely impacted global commercial activity 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 COVID-19, the outbreak continues to present ongoing uncertainty and risk with respect to the Company, its performance, and its financial results. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.