# MUZINICH CAPITAL LLC X-17A-5/A (2021-03-30) — Broker-dealer annual report - Company: MUZINICH CAPITAL LLC - Form: X-17A-5/A - Filed: 2021-03-30 - Period: 2020-12-31 - Accession: 0001427421-21-000006 - CIK: 1427421 - File #: 8-67832 - Material weakness: No - Auditor: Linder & Linder - Auditor location: Elwood, NY - Contact: Michael Ludwig - Phone: 2128883413 - Signed by: Michael Ludwig (FinOp) Original filing: https://www.sec.gov/Archives/edgar/data/1427421/000142742121000006/x17a5FnlCon.pdf --- {0}------------------------------------------------ MUZINICH CAPITAL LLC FINANCIAL STATEMENT DECEMBER 31, 2020 #### \*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\* The Company's Statement of Financial Condition as of December 31, 2020 is available for examination at the office of the Company and at the Regional Office of the Securities and Exchange Commission. \*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\* {1}------------------------------------------------ **UNITEDSTATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** # **ANNUAL AUDITED REPORT FORM X-17A-5 PART Ill** | | 0 MB APPROVAL | | |--------------------------|---------------|----------------------------| | 0MB Number: | | 3235-0123 | | Expires: | | October 31, 2023 | | Estimated average burden | | | | | | hours per response 12.00 | | SEC FILE NUMBER | |-----------------| | 8-67832 | #### **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 01/01/20 | ----------- | -----
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MM/DD/YY | | | | A. REGISTRANT IDENTIFICATION | | | | | NAME OF BROKER-DEALER: Muzinich Capital LLC | | | OFFICIAL USE ONLY | | | | ADDRESS OF PRIN CIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | FIRM 1.D. NO. | | | 450 Park Avenue | | | | | | | (No. and Street) | | | | | New York | NY | | 10022 | | | (City) | (State) | | (Zip Code) | | | NAME AND TELEPHO1 E
Michael Ludwig | UMBER OF PERSON TO CONTACT lN REGARD TO THIS REPORT | | 212-888-3413 | | | | | | (Area Code - Telephone Number) | | | | B. ACCOUNTANT IDENTIFICATION | | | | | IND EPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* | | | | | | Linder & Linder | | | | | | | (Name - if mdividual. srare lasr, firs/. middle 11a111e) | | | | | 234 Summer Circle | Elwood | NY | 11731 | | | (Address) | (City) | (State) | (Zip Code) | | | CHECK ONE: | | | | | | ce rtified Public Accountant | | | | | | Public Accountant | | | | | | | | | | | | B | Accountant not resident in United States or any o f its possessions. | | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | | | | | | | | | | | *\*Claims/or exemptionf/'0111 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. l 7a-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 0MB control number.** SEC 1410 (1 1-05) {2}------------------------------------------------ ### OATH OR AFFIRMATION | [ Michael Ludwig | the best of the may be are a more swear (or affirm) that, to the best of | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Muzinich Capital LLC | my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of | | of December 31st | are management of the and correct. I further swear (or affirm) that | | classified solely as that of a customer, except as follows: | neither the company nor any partner, principal officer or director has any proprietary interest in any account | | Vary K. 1 | | | MARY K KEILEY
Notary Public - State of New York
NO. 01KE6374987
Qualified in New York County
My Commission Expires May 7, 2022
Notary Public | Signature
FinOp
Title | | This report ** contains (check all applicable boxes):
V (a) Facing Page.
V (b) Statement of Financial Condition.
of Comprehensive Income (as defined in \$210.1-02 of Regulation S-X).
(d) Statement of Changes in Financial Condition.
(e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital.
(f) Statement of Changes in Liabilities Subordinated to Claims of Creditors.
(g) Computation of Net Capital.
(h) Computation for Determination of Reserve Requirements Pursuant to Rule 15c3-3.
(i) Information Relating to the Possession or Control Requirements Under Rule 15c3-3.
Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3.
consolidation.
(1) An Oath or Affirmation.
(m) A copy of the SIPC Supplemental Report. | (c) Statement of Income (Loss) or, if there is other comprehensive income in the period(s) presented, a Statement
(i) A Reconciliation, including appropriate explanation of Net Capital Under Rule 15c3-1 and the
(k) A Reconciliation between the audited Statements of Financial Condition with respect to methods of
(n) A report describing any material inadequacies found to have existed since the date of the previous audit. | | ** For conditions of confidential treatment of certain portions of this filing, see section 240.17a-5(e)(3). | | {3}------------------------------------------------ # **LINDER &LINDER~** *Certified Public Accountants* 234 Summer Circle, Elwood, NY 11731 (631) 462-1213 *Thomas Limier* Gail *Linder* #### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING F1RM** To the Member and Board of Directors Muzinich Capital LLC #### **Opinion on the Financial Statements** We have audited the accompanying statement of financial condition ofMuzinich Capital LLC (the "Company") as of December 3 1, 2020, and the related notes (collectively referred to as the "financial statement"). In our opinion, the :financial statement referred to above present fairly, in all material respects, the financial position of Muzinich Capital LLC as of December 31, 2020, in conformity with accounting principles generally accepted in the United States of America. #### **Basis for Opinion** The financial statement is the responsibility of the Company's management. Our responsibility is to express an opinion on the financial statement based on our audit. We are a public accounting firm registered with the Public Company Accounti ng Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with 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 perfo1m 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 tl~osc risks. Such procedures include examining, on a test basis, evidence supporting the amounts and disclosures in the financial statement. Our audit also included evaluating the overall the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. We have served as the Company's auditor since 2008. Elwood, New York March 15, 2021 {4}------------------------------------------------ ### **MUZINICH CAPITAL LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2020** #### **ASSETS** | Cash and cash equivalent
s
Prepaid expenses | \$44
771
,
084
1
, | | |---------------------------------------------------|-----------------------------------|--| | Total Assets | \$45
855
, | | | | | | | LIABILITIES AND MEMBER'S EQUITY | | | | Liabilities
Accrued expenses | 000
\$ 6
, | | | Equity
Member'
s | 39
855
, | | | Total Liabilities and
Member's Equity | \$45,855 | | See accompanying audi tors ' report and notes to financial statements. {5}------------------------------------------------ ### **MUZINICH CAPITAL LLC NOTES TO FINANCIAL STATEMENT DECEMBER 31, 2020** # **Note 1 - Summary of Significant Accounting Policies** Muzinich Capital LLC, (the "Company " ) , was organized September 2007 and became a registered broker-dealer on June 2 , 2008 . The Company is a member of the Financial Industry Regulatory Authority and is subject to regulation by the United States Securiti es and Exchange Commission and the Financial Industry Regulatory Authority . The Company was formed to provide private placement to its clients in connection with various transactions. services financing As a limited liability company , members of the Company shall not be obligated personally for any debts, obligations or liabilities of the Company solely by reason of being a member . The Company shall continue in perpetuity unless the Company is dissolved and its affairs wound up upon the occurrence of certain events defined in the limited liability company operating agreement . ## **Revenue Recognition** The Company recognizes revenue upon t h e placement of private financing transactions for its clients when a contract with a customer exists, when a performance obligation has been identified and when the transaction price has been determined . # **Use of Estimates** The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures . Accordingly, actual results could differ from those estimates. ## **Cash Equivalents** For purposes of the statement of cash flows , cash equivalents include highly liquid debt instruments purchased with original maturities of three months or less. {6}------------------------------------------------ #### **MUZINICH CAPITAL LLC NOTES TO FINANCIAL STATEMENT DECEMBER 31 , 2020** # **Note 1 - Summary of Significant Accounting Policies (Continued)** ### **Income Taxes** Effective after the acquisition by the majority member , of the interest from the minority member, the Company became a single member limited liability company . Therefore , the Company is classified as a disregarded entity for income tax purposes . As such , there is no provision for Federal and State income taxes as the income or loss of the Company is included in the income tax return of the sole member. Management of circumstances Management has tax positions recognition . the Company is not aware of any issues or that would unfavorably impact its tax status . determined that the Company had no uncertain that would require financial statement The Company believes it is no longer subject to Federal, State or other taxing jurisdi ction income tax examination for years prior to 2017 . # **Note 2 - Related Party Transactions** The Company has an administrative services agreement with an affiliate who is the sole member of the Company . The agreement provides that the affiliate shall pay for the following e xpenses: salaries and benefits, occupancy, office and mar keting and allocate them to the Company . Monthl y allocations amounted to \$1 , 250 . Pursuant to the agreement , such allocation is treated as a capital contribution by the member. The Company shares office space with its sole member and rental charges are included in the administrative services agreement . Professional standards require all leases with a term greater than 12 months to be recognized on the balance sheet through a right of use asset and a lease liability and the disclosure of key information pertaining to lease agreements . {7}------------------------------------------------ ### **MUZINICH CAPITAL LLC NOTES TO FINANCIAL STATEMENT DECEMBER 31, 2020** # **Note 2 - Related Party Transactions (Continued)** Since the Company shares office space with its parent based on a cost share agreement , the standard has no signifi cant ~ffect on the financial statements . The sole member working capital requirements . will provide the Company with sufficient to meet operations and minimum net capital # **Note 3 - Concentration of Credit Risk** The Company maintains cash balances at a financial institution . Accounts at the institution are insured by the Federal Deposit Insurance Corporation up to \$250 , 000 . # **Note 4 - Net Capital Requirements** The Company is subject to the net capital requirements of rule 15c3- 1 of the Securities and Exchange Commission, which requires a broker- dealer to have at all times sufficient liquid assets to cover current i ndebtedness . In accordance with the rule , the Company i s requi red to maintain minimum net capital of the \$5 , 000 or 1/15 of aggregate indebtedness . At December 31 , 2020 , the Company had net capital, as defined, of \$36 , 032 which exceeded the required minimum net capital by \$31 , 032 . Aggregate indebtedness at December 31 , 2020 totaled \$6 , 000 and the ratio of aggregate indebtedness t o net capital was . 17 to 1 . ### **Note 5 - New Accounting Development** In June 2016 , the FASB issued ASU No . 201~-13 , Measurement of Credit Losses on Financial Instruments related t o ASC Topic 326 ( " ASC 326" ) , requiring the immediate recognition of management' s estimates of current expected credit losses . ASC 326 is effective for fiscal years beginning after December 15 , 2019 and has been adopted by the Company for fiscal year ended December 31 , 2020 . {8}------------------------------------------------ ### **MUZINICH CAPITAL LLC NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2020** ## **Note 5 - New accounting Development (Continued)** The Company currently has no assets on its balance sheet that require measurement of credit losses . As such, the Company has determined that there is no material impact on the Company ' s financials resulting from the adoption of ASC 326. ## **Note 6 - Contingencies** In March 2020, the outbreak of COVID-19 (coronavirus) caused by a novel strain of the virus was recognized as a pandemic by the World Health Organization, and the outbreak has become increasingly widespread in the Unites States, including in each of the areas in which the Company operates. The Company has continued its operations throughout this pandemic and management expects business operations to continue as is for the foreseeable future . The extent to which the outbreak has impacted the Company' s operations has not been significant and the Company expects this to remain the case . Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.