# M.M. DILLON & CO. LLC X-17A-5 (2020-02-28) — Broker-dealer annual report - Company: M.M. DILLON & CO. LLC - Form: X-17A-5 - Filed: 2020-02-28 - Period: 2019-12-31 - Accession: 0001385971-20-000006 - CIK: 814108 - File #: 8-37893 - Material weakness: No - Auditor: Sanville & Company - Auditor location: Abington, PA - Contact: Michael Espinal - Phone: 2035696800 - Signed by: Michiel C. McCarty (Chairman & CEO) Original filing: https://www.sec.gov/Archives/edgar/data/814108/000138597120000006/mmdpublic19.pdf --- {0}------------------------------------------------ # M.M. DILLON & CO. LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2019 {1}------------------------------------------------ UNITEDSTATES SECURITIES ANDEXCHANGE COMMISSION Washington, D.C. 20549 OMB APPROVAL OMB Number: 3235-0123 Expires: August 31, 2020 Estimated average burden hours per response .. . . . . . 12.00 # ANNUAL AUDITED REPORT FORM X-17A-5 PART III | SEC FILE NUMBER | | |-----------------|--| | 8-37893 | | 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 | 01/01/2019
MM/DD/Y Y | AND ENDING | 12/31/2019
MM/DD/YY | | | | |-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------|---------------|--------------------------------|--|--|--| | A. RECISTRANT IDENTIFICATION | | | | | | | | | NAME OF BROKER-DEALER: M.M. Dillon & Co. LLC | | OFFICIAL USE ONLY | | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | FIRM I.D. NO. | | | | | | One Sound Shore Drive | | | | | | | | Greenwich | (No. and Street)
City | | 06830 | | | | | (City) | (State) | | (Zip Code) | | | | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
Michael Espinal | | | 203 589 6800 | | | | | | | | (Area Code - Telephone Number) | | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* | | | | | | | | Sanville & Company | (Name - if individual, state last, first, middle name) | | | | | | | 1514 Old York Road | Abington | PA | 19001 | | | | | (Address) | (City) | (State) | (Zip Code) | | | | | CHECK ONE:
Certified Public Accountant
Public Accountant
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 supported by a statement of facts and circumstances relied on as the basis for the exemption. See Section 240.17a-5(e)(2) | | | | | | | Potential 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. SEC 1410 (06-02) {2}------------------------------------------------ #### **OATH OR AFFIRMATION** | I, | Michie! C. McCarty | . swear (or affirm) that, to the best of | |-----------|-----------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------| | | | my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of | | | M.M. Dillon & Co. LLC | | | | | ~~~~~~~~~~~-~----~-~~~~-~----~--~~~---~-~-~ , as
are 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 of a customer, except as follows: | | | | | | | | | | | | | | | | | | | ---,,,--- | | | | | | Signature | | | | | | | | | | | | Title | | | | | | | | | | | | | | | This report•• contains (check all applicable boxes): | | | | I[! (a) Facing Page. | | | | Iii (b) Statement of Financial Condition. | | | | D (c) Statement of Income (Loss). | | | | D (d) Statement of Changes in Financial Condition. | | | | | D (e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital. | | | D (I) Statement of Changes in Liabilities Subordinated to Claims of Creditors. | | | | D (g) Computation of Net Capital. | | | | | D (h) Computation for Determination of Reserve Requirements Pursuant to Rule I 5c3-3. | | | | D (i) Information Relating to the Possession or Control Requirements Under Rule 15c3-3. | | | | D (j) A Reconciliation, including appropriate explanation of the Computation of Net Capital Under Rule 1 Sc3-1 and the | | | | Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3. | | | | D (k) A Reconciliation between the audited and unaudited Statements of Financial Condition with respect to methods of | | | consolidation. | | | | lifl (I) An Oath or Affirmation.
D (m) A copy of the SIPC Supplemental Report. | | | | | D (n) A report describing any material inadequacies found to exist or found to have existed since the date of the previous audit . | | | | | *.. For conditions of confidential treatment of certain portions of this filing. see section 240.J 7a-S(e){J).* {3}------------------------------------------------ # M.M. DILLON & CO. LLC # DECEMBER 31, 2019 # TABLE OF CONTENTS | Report of Independent Registered Public Accounting Firm | Page | | |---------------------------------------------------------|------|--| | Statement of Financial Condition | | | | Notes to Financial Statement | | | {4}------------------------------------------------ **ROBERT F. SANVILLE, CPA MICHAEL T. BARANOWSKY, CPA JOHN P. TOWNSEND, CPA** *S anvi[[e* **&** *Company* CERTIFIED PUBLIC ACCOUNTANTS 1514 OLD YORK ROAD ABINGTON, PA 19001 (215) 884-8460 • (215) 884-8686 FAX **MEMBERS OF AMERICAN INSTITUTE OF CERTlFIED PUBLIC ACCOUNTANTS PENNSYLVANIA L,.,.STITUTE OF CERTIFIED PUBLIC ACCOUr-.'TANTS** I 00 WALL SlREET, 8th FLOOR NEW YORK, NY !0005 (212)709-9512 #### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Member of M.M. Dillon & Co. LLC #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of M.M. Dillon & Co. LLC (the "Company") as of December 31, 2019, and the related notes (collectively referred to as the "financial statement"). In our opinion, the statement of financial condition presents fairly, in all material respects, the financial position of the Company as of December 31, 2019 in conformity with accounting principles generally accepted in the United States of America. #### **Basis for Opinion** This financial statement is the responsibility of the Company's management. Our responsibility is to express an opinion on the Company'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 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 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. ~--d. **..** ·~-a-- We have served as the Company's auditor since 2016. Abington, Pennsylvania February 21, 2020 {5}------------------------------------------------ # M.M. DILLON & CO. LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2019 | Cash | \$
18,517 | |---------------------------------------|--------------| | Other assets | 3,738 | | | | | Total assets | \$
22,255 | | | | | LIABILITIES AND MEMBER'S EQUITY | | | Liabilities: | | | Accrued expenses and other payables | 2,689 | | Total liabilities | 2,689 | | Member's equity | 19,566 | | Total liabilities and member's equity | | | | \$
22,255 | {6}------------------------------------------------ #### **1. ORGANIZATION AND DESCRIPTION OF BUSINESS** M.M. Dillon & Co. LLC (the "Company") is a wholly-owned subsidiary of C.E. Pfeifer Holdings, LLC (the "Parent"), a holding company, who is 99% owned by M.M. Dillon & Co. Group LLC. M.M. Dillon & Co. Group LLC (the "Group") is a Stamford, Connecticut, based investment banking firm, which provides a wide array of investment banking services to middle market institutional clients. The Company operates as a limited liability company under the laws of the State of Delaware. The Company is a registered broker dealer pursuant to Section 1S(b) of the Securities Exchange Act of 1934. The Company is a member of the Financial Industry Regulatory Authority ("FINRA") and the Securities Investor Protection Corporation ("SIPC"). The Company provides investment banking advisory and private placement financing services. ### 2. **SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** # *Basis of presentation* The accompanying financial statement of the Company have been prepared on the accrual basis of accounting. #### *Revenue recognition* The Company's advisory fees from investment banking engagements are recognized at a point in time when the related transaction is completed, as the performance obligation is to successfully broker a specific transaction. In accordance with ASU No. 2014-09, "Revenue from Contracts with Customers" ("ASC Topic 606") revenues from contracts with customers is recognized when, or as, the Company satisfies its performance obligations by transferring the promised services to the customers. A service is transferred to a customer when, or as, the customer obtains control of that service. A performance obligation may be satisfied at a point in time or over time. Revenue from a performance obligation satisfied at a point in time is recognized at the point in time that the Company determines the customer obtains control over the promised service. Revenue from a performance obligation satisfied over time is recognized by measuring the Company's progress in satisfying the performance obligation in a manner that depicts the transfer of the services to the customer. The amount of revenue recognized reflects the consideration the Company expects to receive in exchange for those promised services (i.e., the "transaction price"). In determining the transaction price, the Company considers multiple factors, including the effects of variable consideration, if any. Revenue from investment banking advisory services is recognized when the services are rendered and related expenses are recorded when incurred. Deal fees are recorded when earned and related expenses are recorded when incurred. Since the Company's provision of financing services involves significant resources, its revenues tend to be concentrated. {7}------------------------------------------------ # **2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** *(continued)* ## *Concentration of risk* The Company maintains cash in bank accounts with a single financial institution. The balances are insured by the FDIC up to \$250,000. The Company has not experienced any losses in such accounts and does not believe it is exposed to any significant credit risk on cash. # *Use of estimates* The preparation of financial statement 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 disclosure of contingent assets and liabilities at the date of the financial statement and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. # *Allowance for Doubtful Accounts* Periodically, the Company evaluates its accounts receivable and, if applicable, provides for an allowance for doubtful accounts equal to amounts estimated to be uncollectible. The Company's estimate is based on a review of the current status of the individual accounts receivable. #### *Income taxes* As a single member limited liability company, the Company does not incur any liability for federal or state income taxes because all income, deductions and credits are reportable by its member. ## **3. RELATED PARTYTRANSATIONS** Through an expense sharing agreement with the Group, the Company was allocated certain operating expenses including occupancy, administrative salaries, communications, and office expenses in the amount of\$46,800 of which all was forgiven by the Parent. ### **4. NET CAPITAL REQUIREMENTS** The Company is subject to the uniform net capital requirements of Rule 15c3-1 of the Securities and Exchange Act, as amended, which requires the Company to maintain, at all times, sufficient liquid assets to cover indebtedness. In accordance with the Rule, the Company is required to maintain defined minimum net capital of the greater of \$5,000 or 6 2/3% of aggregate indebtedness. At December 31, 2019, the Company had net capital, as defined, of \$15,828, which exceeded the required minimum net capital of \$5,000 by \$10,828. Aggregate indebtedness at December 31, 2019 totaled \$2,689. The Company's percentage of aggregate indebtedness to net capital was 16.99%. {8}------------------------------------------------ # M.M. **DILLON & CO. LLC NOTES TO THE FINANCIAL STATEMENT DECEMBER 31, 2019** #### **5. SUBSEQUENT EVENTS** Management of the Company has evaluated events and transactions that have occurred since December 31, 2019, through the date of the report and determined that there are no material events that would require disclosures in the Company's financial statement. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.