# MARWOOD GROUP RESEARCH LLC X-17A-5 (2021-03-11) — Broker-dealer annual report

- Company: MARWOOD GROUP RESEARCH LLC
- Form: X-17A-5
- Filed: 2021-03-11
- Period: 2020-12-31
- Accession: 0001441581-21-000001
- CIK: 1441581
- File #: 8-67969
- Material weakness: No
- Auditor: KWM CPAs LLP
- Auditor location: Jericho, NY
- Contact: Thomas J. Modzelewski
- Phone: 212-532-3651
- Signed by: Thomas J. Modzelewski (COO)

Original filing: https://www.sec.gov/Archives/edgar/data/1441581/000144158121000001/RESPublic.pdf

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#### UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549

|                         | 0MB APPROVAL     |           |  |  |
|-------------------------|------------------|-----------|--|--|
| 0MB Number:             |                  | 3235-0123 |  |  |
| Expires:                | October 31, 2023 |           |  |  |
| stimated average burden |                  |           |  |  |
| Hours per response      |                  | 12.00     |  |  |

## ANNUAL AUDITED REPORT

## FORM X-17A-5 PARTIII

**8- 67969** 

SEC FILE NUMBER

#### **FACING PAGE**

### **Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder**

| ___<br>NAME OF BROK.ER-DEALER:<br>Marwood Group Research, LLC<br>ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | ___<br>MM"DDIYY<br>A. REGISTRANT IDENTIFICATION |              | __<br>___<br>OFFICIAL USE ONLY |  |
|------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------|--------------|--------------------------------|--|
|                                                                                                                                    |                                                 |              |                                |  |
|                                                                                                                                    |                                                 |              |                                |  |
|                                                                                                                                    |                                                 |              |                                |  |
|                                                                                                                                    |                                                 |              | FIRM I.D. NO.                  |  |
|                                                                                                                                    |                                                 |              |                                |  |
| 733 Third Avenue, 11th Floor                                                                                                       |                                                 |              |                                |  |
|                                                                                                                                    | (No. ond Street)                                |              |                                |  |
| New York<br>NY                                                                                                                     |                                                 |              | 10017                          |  |
| (C11y)<br>(State)                                                                                                                  |                                                 | lZipCodc)    |                                |  |
| NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT                                                            |                                                 |              |                                |  |
| Thomas J. Modzelewski                                                                                                              |                                                 | 212-532-3651 |                                |  |
|                                                                                                                                    |                                                 |              | (Arco Code - Telephone Kumber) |  |
|                                                                                                                                    | B. ACCOUNTANT IDENTIFCATION                     |              |                                |  |
|                                                                                                                                    |                                                 |              |                                |  |
| INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report*                                                           |                                                 |              |                                |  |
| KWMCPAsLLP                                                                                                                         |                                                 |              |                                |  |
| tName - ifmdfrld,ml, swre /us1,Jlrs1, mtd(l/1! name)                                                                               |                                                 |              |                                |  |
| 100 Jericho Quadrangle, Suite 220<br>Jericho                                                                                       |                                                 |              | 11753-1024                     |  |
| (City)<br>(Address)                                                                                                                |                                                 | tS'3tC)      | (Zip Code)                     |  |
| CHECK ONE:                                                                                                                         |                                                 |              |                                |  |
| Certified Public Accountant<br>18J                                                                                                 |                                                 |              |                                |  |
| D<br>Public Accountant                                                                                                             |                                                 |              |                                |  |
| D<br>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 independem public accountant must be supporred by a statement of/acts and circumstances relied on as the basis/or the exemption. See Section 240. ! 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 (06-02)

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### **OATH OR AFFIRMATION**

| T,          | Thomas J. Modzelewski                                                                                                                                                                                          | , swear (or affirm) that, to the best of |           |           |                                                           |
|-------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------|-----------|-----------|-----------------------------------------------------------|
|             | my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of                                                                                                |                                          |           |           |                                                           |
| _~_la_r_,No | R_c_s_ear__c_h_,_L_J_._c ____________________<br>__o_d_<br>G_r_o_u~p_                                                                                                                                          |                                          |           |           | _______<br>_<br>, as                                      |
|             | -----------------<br>of December 31                                                                                                                                                                            | , 20                                     | ---<br>20 |           | , 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:                                                                                                                                                    |                                          |           |           |                                                           |
|             |                                                                                                                                                                                                                |                                          |           |           |                                                           |
|             |                                                                                                                                                                                                                |                                          |           |           |                                                           |
|             |                                                                                                                                                                                                                |                                          |           |           |                                                           |
|             | MARY JOYCE MARTINEZ<br>Notary Public - State of New York<br>NO. 01MA6264166                                                                                                                                    |                                          |           | Signature |                                                           |
|             | 'JPL'/<br>Qualified in Richmond Co<br>7<br>My Commission Expires                                                                                                                                               |                                          |           | coo       |                                                           |
|             | ~                                                                                                                                                                                                              |                                          |           |           |                                                           |
|             |                                                                                                                                                                                                                |                                          |           | Title     |                                                           |
|             | This report** contains (check all applicable boxes):                                                                                                                                                           |                                          |           |           |                                                           |
|             | [8'.I (a) Facing page.                                                                                                                                                                                         |                                          |           |           |                                                           |
|             | 12] (b) Statement of Financial Condition.                                                                                                                                                                      |                                          |           |           |                                                           |
|             | D (c) Statement oflncome (Loss).                                                                                                                                                                               |                                          |           |           |                                                           |
| 0 (d)       | Statement of Changes in Financial Condition.                                                                                                                                                                   |                                          |           |           |                                                           |
|             | 0 ( e) Statement of Changes in Stockholders' Equity or Prutners' or Sole Proprietor's Capital.                                                                                                                 |                                          |           |           |                                                           |
|             | D (f) Statement of Changes in Liabilities Subordinated to Claims ofCrcditors.                                                                                                                                  |                                          |           |           |                                                           |
|             | 0 (g) Computation of Net Capital.                                                                                                                                                                              |                                          |           |           |                                                           |
|             | 0 (h) Computation for Determination of Reserve Requirements Pursuant to Rule l 5c3-3.                                                                                                                          |                                          |           |           |                                                           |
|             | D ( i) Information Relating to the Possession or Control Requirements under Rule l 5c3-3.                                                                                                                      |                                          |           |           |                                                           |
| 0 (j)       | A Reconciliation, including appropriate explanation. of the Computation of Net Capital Under Rule 15c3-l and<br>the Computation for Dcrc1mination of the Reserve Requirements Under Exhibit A of Rule l 5c3-3. |                                          |           |           |                                                           |
|             | D (k) A Reconciliation between the audited and unaudited statements of Financial Condition with respect to methods of<br>consolidation.                                                                        |                                          |           |           |                                                           |
|             | [8] (l) 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 condilions of confidential treatment of certain portions of this filing, see section 2-I0. !7a-5(e)(3).* 

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

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

FOR THE YEAR ENDED DECEMBER 31, 2020

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

# 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 Research LLC

#### Opinion on the Financial Statement

We have audited the accompanying statement of financial condition of Marwood Group Research LLC as of December 31, 2020, 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 Research LLC as of December 31, 2020 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 Research LLC's management. Our responsibility is to express an opinion on Marwood Group Research 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 Research 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 statements, 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 Research LLC's auditor since 2014.

Jericho, NY February 26, 2021

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| \$VVHWV<br>&DVK<br>\$FFRXQWVUHFHLYDEOH<br>3UHSDLGH[SHQVHV<br>'HIHUUHG7D[HV                                                  | <br><br><br><br> |  |
| 7RWDO\$VVHWV                                                                                                                |                  |  |
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| 7RWDO/LDELOLWLHV                                                                                                            |                  |  |
| &RQWLQJHQFLHV                                                                                                               |                  |  |
| 0HPEHU<br>V(TXLW\                                                                                                           |                  |  |
| 7RWDO/LDELOLWLHVDQG0HPEHU<br>V(TXLW\                                                                                        |                  |  |

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

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

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

### NOTES TO FINANCIAL STATEMENTS

### FOR THE YEAR ENDED DECEMBER 31, 2020

#### 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, 2020, the Company maintained cash balances that exceeded the federally insured limits. Uninsured cash balance amounted to approximately \$87,000 as of December 31, 2020. The Company has not incurred any losses related to this investment and believes the potential risk of loss to be minimal.

#### 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. Additionally, the Company has taken certain actions, such as hiring additional sales personnel to increase revenue and improve operating cash flows.

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, 2020, management believes the COVID-19 pandemic did not have a material effect on the Company's operations. Subsequent to December 31, 2020, 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 26, 2021, 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.