# MAY CAPITAL GROUP, L.L.C. X-17A-5 (2022-03-31) — Broker-dealer annual report - Company: MAY CAPITAL GROUP, L.L.C. - Form: X-17A-5 - Filed: 2022-03-31 - Period: 2021-12-31 - Accession: 0001569119-22-000001 - CIK: 930669 - File #: 8-47616 - Type: Broker-dealer - Material weakness: No - Auditor: Ohab and Company, PA - Auditor location: Maitland, FL - Contact: Lawrence E May - Phone: 2124890100 - Email: lmay@swmgrp.com - Website: swmgrp.com - Signed by: Lawrence E. May (President) Original filing: https://www.sec.gov/Archives/edgar/data/930669/000156911922000001/AuditMCGLLC.pdf --- {0}------------------------------------------------ | UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 | | | 0 MB APPROVAL
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8-47616 | | | | | 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 | | | | | | | FILING FOR THE PERIOD BEGINNING O 1/01/2021 | | | AND ENDING 12/31/2021 | | | | | | MM/ DD/YY | | | MM/DD/YY | | | | A. REGISTRANT IDENTIFICATION | | | | | NAME o F FIRM : May Capital Group,LLC | | | | | | | D Check here if respondent is also an OTC derivatives dealer
ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.)
250 West 57th St | Suite 1614 | (No. and Street) | | | | | New York | | NY | | | 10107 | | (City) | | (State) | | | (Zip Code) | | | | | | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | Lawerence E. May | | 212-489-0100 | | lmay@swmgrp.com | | | (Name) | | (Area Code - Telephone Number) | | (Email Address) | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this fi ling*
OHAB AND COMPANY, PA | | | | | | | | | (Name - if individual, state last, first, and middle name) | | | | | 100 E SYBELIA AVE, SUITE 130 MAITLAND | | | | FL | 32751 | | (Address) | | (City) | | (State) | (Zip Code) | | JULY 28, 2004 | | | 1839 | | | | l"
of Regi'""''" with PCAOB){if appUcableJ | | | | | (PCAOB Regi,ua1, Lawrence E May | |-----|--------------------------------------------------------------------------------------------------------------------------------------------| | | financial report pertaining to the firm of May Capital Group, LLC
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is true and correct. I further swear (or affi
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December 31
, | | | partner, officer, director, or equivalent person, as the case may be, has any proprie ar inter tin n account classified solely | | | as that of a customer. | | | | | | | | | | | | Titl | | | __
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This filing** contains (check all applicable boxes): | | | ,
~ (a) Statement of financial condition. | | 0 | (b) Notes to consolidated statement of financial condition. | | | I!! (c) Statement of income (loss) or, if there is other comprehensive income in the period(s) presented, a statement of | | | comprehensive income (as defined in§ 210.1-02 of Regulation S-X). | | | ~ (d) Statement of cash flows. | | | I!! (e) St
atement of changes in stockholders' or partners' or sole proprietor's equity. | | 0 | (f) Statement of changes in liabilities subordinated to claims of creditors. | | | !!! (g) Notes to consolidated fina
ncial statements. | | | !!! (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-l, as applicable. | | D | (i) Computation of tangible net worth under 17 CFR 240.18a-2. | | 0 | (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. | | | D (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or | | | Exhibit A to 17 CFR 240.18a-4, as applicable. | | 0 | (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.15c3-3. | | I!! | (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. | | D | (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR | | | 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable. | | | I!! (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net | | | worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-l, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 | | | CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences | | | exist. | | 0 | (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. | | | !!! (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable. | | D | (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. | | I!! | (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. | | D | (t) Independent public accountant's report based on an examination of the statement of financial condition. | | | !!! (u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 | | | CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. | | D | (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 | | | CFR 240.17a-S or 17 CFR 240.18a-7, as applicable. | | | ~ (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 | | | CFR 240.18a-7, as applicable. | | D | (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-le or 17 CFR 240.17a-12,
as applicable. | | D | (y) Report describing any material inadequacies found to exist or found to have existed since the dat e of the previous audit, or | | | a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). | | | --------------
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- | *\*"To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e}{3) or 17 CFR 240.18a-7{d)(2), as applicable.* {2}------------------------------------------------ ## MAY CAPITAL GROUP, LLC (SEC 1.0. No. 8-47616) FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULE FOR THE YEAR ENDED DECEMBER 31 , 2021 AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIR1"I AND REVIEW REPORT REGARDING EXEMPTION PROVISIONS {3}------------------------------------------------ ![](_page_3_Picture_0.jpeg) 100 E. Sybelia Ave. Suite 130 Maitland, FL 3275 I *CerJifled Public Accountants* Email: pam@ohabco.com Telephone407-740-731 I Fax 407-740-6441 ### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Member's of May Capital Group, LLC #### **Opinion on the Financial Statements** We have audited the accompanying statement of financial condition of May Capital Group, LLC as of December 31, 2021, the related statements of income, changes in member's equity, and cash flows for the year then ended, and the related notes and schedules (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of May Capital Group, LLC as of December 31, 2021, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. #### **Basis for Opinion** These financial staterr:ients are the responsipility of May Capital Group, LLC's management. Our responsibility is to express an opinion on May Capital Group, LLC's financial statements based on our audit. We: are a public accounting ·firm registered with the . Pu.blic Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with · respect to May Capital Group, 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 pro'cedures that respond to those risks. Such procedures· included examining, on a test basis, evidence regarding. the amot.1nts and disclosures·in the finc~ncial statements. Our c;iUdit also included evaluat'ing 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. . . ### **Auditor's Report on Supplemental Information** The Schedule I has been subjected to audit procedures performed in conjunction with the audit of May Capital Group, LLC's financial, statements. The supplemental information is the responsibility of May Capital Group, LLC's · management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the comp\_leteness and.accuracy of the information presented in the supplem(:?ntal information. In forming our opinion on the supplemental· information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with 17 C.F.R. §240.17a-5. In our opinion, the Schedule I is fairly stated, in all material respects, in relation to the financial statements as a whole. ~ a\_,J ~,r;v Ohab and Company, PA We have served as May Capital Group, LLC's auditor since 2021. Maitland, Florida March 30, 2022 {4}------------------------------------------------ # **MAY CA PIT AL GROUP, LLC STATEMENT OF FINANCIAL CONDITION DECE:vIBER 31, 2021** #### ASSETS | Cash and cash equivalents | \$ 4
1,526 | |---------------------------|---------------| | Accounts receivable | 8,203 | | Prepaid Expense | 1,984 | | Total Assets | 51,713
\$ | #### LIABILITIES AND MEMBER'S EQUITY | Accrued expenses and Accoums Payable | 6,902
\$ | |---------------------------------------|-------------| | Total Liabilities | 6,902 | | Contingencies | | | Member's equity | 44,8
11 | | Total Liabilities and Member's Equity | \$ 51 ,713 | The accompanying notes arc an integral part of these financi al statements. {5}------------------------------------------------ # **MAY CA PIT AL GROUP, LLC STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2021** | Revenues: | | |----------------------------------------------------|---------------| | Mutual Funds, variable life and variable annuities | \$
148,942 | | Interest and dividends | 5 | | Total Revenues | 148,947 | | Expenses: | | | Rent | 6,000 | | Professional fees | 21,477 | | Travel and meals | 5,191 | | Office | 5,49
1 | | Regulatory fees | 3,100 | | Telephone | 840 | | Tax | 25 | | Total Expenses | 42,124 | | Net income | 106,823
\$ | The accompanying notes are an integral part of these financial statements. {6}------------------------------------------------ # **MAY** *C.t\* **PITAL GROUP, LLC STATEMENT OF CHANGES IN MEMBER'S EQUITY FOR THE YEAll [NDED DECEMBER 31, 2021** | | Total
Member's Equity | | |--------------------------------|--------------------------|------------| | Balance, December 31, 2020 | \$ | 62,988 | | Member's distributions | | (125,000) | | Net income | | 106.823 | | Balance, December 31
, 2021 | | 44,8
11 | The accompanying notes are an i11tegral part of these financial statements. {7}------------------------------------------------ # **MAY CAPITAL GROUP, LLC ST AT EM ENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2021** | Cash Flows From Operating Activities: | | | |----------------------------------------------------------------------|---------------|--| | Net income | 106,823
\$ | | | Adjustment to reconcile net income | | | | to net cash provided by operating activities: | | | | (Increase) decrease in Accounts Receivable | (2,8 18) | | | (Increase) Decrease in Prepaid Expense | (423) | | | Increase (Decrease) in Accounts payable and Accrued Expense | 953 | | | Net Cash Provided by Operating Activities | I 04,535 | | | Cash Flows (Used) by Investing Activities | \$ | | | Cash Flows (Used) by financing Activities:
Member's distributions | (125,000) | | | Net Cash (Used) by Financing Activities | (125,000) | | | Net Increase ln cash and cash equivalents | (20,465) | | | Cash and cash equivalents at beginning of the year | GI ,991 | | | Cash and cash equivalents at end of the year | 41,526
\$ | | | Non Cash Items | | | | Interest | \$ | | | Taxes | \$ | | | Total Non-cash items | \$ | | The accompanying notes arc an integral part of these financial statements. {8}------------------------------------------------ # **MAY CAPITAL GROUP, LLC NOTES** TO **FINANCIAL STATEMENTS DECEMBER 31, 2021** ## **1.** *ORGANIZATION AND NATURE OF BUSINESS* May Capital Group LLC (the "Company"), was formed as a limited liability company on August 15, 1994 in the State of J\ew Jersey. The Company is a ful ly disclosed broker dealer and sells mutual funds, variable life insurance and variable annuities as outlined in their FINRA membership agreement. The Company acts as a broker-dealer and is exempt from Securities and Exchange Commission Ruic I 5c3-3 under paragraph k(2)(i). The Company is not required to have any anangement with a clearing broker. ## **2.** *SIGNIFICANT ACCOUNTING POLICIES* ### **Revenue Recognition** Securities transactions and the related revenues and expenses are recorded in the financial statements on a trade date basis. ### **Significant Judgement** Significant Judgement is required to dctenninc whether perfomrnnce obligations are satisfied at a point in time or over time; how to allocate transaction prices where multiple performance obligations are identified; when to recognize revenue based on the appropriate measure of the Company's progress under the contract; whether constraints on variable consideration should be applied due to uncertain fururc events. ### **Mutual Fund Fees, Variable Life and Variabl e Annuity Fees** The Company enters into agree1nl.!n ls with Mutual Funds, Variable Life and Variable Annuities (''Funds") to distribute shares lo investors. The Company may receive distribution fees paid by the Fund up front, over time, upon the investors exit from the fund, or as a combination thereof. The Company believes that its performance obligation is the sale of securities to investors and as such th is is fu lfilled on the trade elate. Any fixed amounts are recognized 011 the trade elate and variable amounts are recognized to the extent it is probable that a significant revenue reversal will not occur once the uncertainty is resolved. For variable amounts, as the uncertainty is dependent on the value of the shares at future points in time as well as the length of time the investor remains in the fund, both of which arc highly susceptible to factors outside the Company's influence. The Company does not believe that it can overcome this constraint until the market value of the Fund and the investor activities are known, which usually occurs monthly or quarterly. Mutual f und Fees, Variable Life and Variable Annuity Fees recognized in the current period arc primarily related to performance obligations that have been satisfied in prior periods. {9}------------------------------------------------ ### Property and Equipment Property and equipment are recorded at cost. Depreciation had been computed using accelerated methods of depreciation. Expenditures for repairs and maintenance are charged to operations as incurred. Additions and improvements are capitalized. #### **Income Taxes** No provision for Federal or State income taxes has been made in the accompanying financial statements since such liabilities and related expenses are the responsibility of the member. The Company is responsible for a NYC unincorporated business tax on income, which is calculated at the statutory rate. ### Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States or America requires management to make estimates and assumptions that affect the reported amounts or the assets and liabilities at the date of' the financia l statements and the reported amounb of revenues and expenses during the reporting period. Actual results could differ from those estimates. ### **3.** *NEW ACCOUNTING GUIDANCE* In June 20 I 6, the FASB issued Accounting Standards Update (ASU) 2016-13 - Current Expected Credit Losses ("CECL") wh ich replaces the cu1Tent incurred loss model used to measure impairment loss with an expected loss model for trade and other receivables. The Company adopted the standard during 2020, under the modified retrospective approach to the earliest period resented. The adoption or ASU 20 16-1 3 did not have a material effect on the Company's financial statements. ## **4.** *CASH FLOW INFORMATION* The Company considers all short-tenn investments with an original maturi ty of three months or less to be cash equivalents. ## *5. ACCOUNTS RECEIVABLE* Accounts receivable represent commissions due from mutual funds, insurance companies and trust sponsors. Management has determined that no allowance for credit losses is necessary at December 3 1, 2021. {10}------------------------------------------------ ## 6. *CONCENTRATION OF CUSTOMER RECEIVABLES* For the year ended December 3 1, 202 1, six customers accounted for 83% of the Company's Accounts Receivable. ## 7. *DISAGGREGATED REVENUE FROM CONTRACTS WTH CUSTOMERS* Mutual Funds, variable life and variable annuities: | Commission income | \$
11 4,905 | |-----------------------------------------------------|----------------| | Mutual Fund trails | \$ 34,037 | | Total mutual funds, variable li
fe and annuities | \$148,942 | ## **8.** *NET CAPITAL REOUJREMENTS* The Company is a member of th~ Financial Industry Regulatory Authority (FINRA) and subject to the Securities and Exchange Commission's Uniform Net Capital Rule (Rule l 5c3-l ), which requires the maintenance of minimum net capital of \$5,000 and requires that the ratio of aggregate indebt edness to the net capital, both as defined, shall not exceed 15 to I. At December 31 , 2021 the Company had net capital of \$34,624, which was \$29,624 in excess of the amount required. The ratio of aggregate indebtedness to net capital was 19.90. ### 9. *SUBSEOUENT EVENTS* The Company has evaluated subsequent events through March 30, 2022, the date on which these financial statements were available to be issued. The Company did not identify any material subsequent events requiring adjustment to or disclosure in its financial statements. ## **10.** *RELATED PARTY TRANSACTIONS* The Company entered into an Expense Sharing Agreement with May f inancial Group, LTD ("Affiliate") dated January ,1. 20 I 8. The agreement provides that May Capital Group LLC will pay Affiliate \$~30 per month for: Rent, administrati ve costs, telephone and postage. The total paid for 202 1 was \$9, 130. At December 31, 202 1 \$830.00 was due to the Affiliate from the Company. {11}------------------------------------------------ ## 11. *RISKS AND UNCERTAINTIES* The Covid-1 9 pandemic developed rapidly in 202 1, with a significant number of cases. Measures taken by various governments to contain the virus have affected economic activity. At this stage, the impact on our business and results has not been significant and based on our experience to date we expect this to remain the case. We will continue to follow the various government policies and advice and, in parallel, we will do our utmost to continue our operations in the best and safest way possible. {12}------------------------------------------------ **Schedule** I # **MAY CAPITAL GROUP, LLC COMPUTATION OF NET CAPITAL UNDER RULE 15c3-1 Of THE SECURITIES AND EXCHANGE COMMISSION DECEMBER 31, 2021** | NET CAPITAL: | | |------------------------------------------------------------------------------------|--------------| | Total members' equity | 44.811 | | Deductions and/or charges: | | | Accounts receivable | (8.203) | | Prepaid expenes | (
1,984) | | Total adjustments to Net Capital | ( I 0, 187) | | Net capital before haircuts on securities positi
ons | 34,624 | | Haircuts on securities positions | | | Undue concentration | | | Net Capital | \$
34,624 | | AGGREGATE INDEBTEDNESS:
Items included in the statement of financial condition: | | | Accounts payable and accrued expenses | 6,902 | | COMPUTATION OF BASIC NET CAP IT AL REQUIREMENT: | | | Minimum net capital required (6-2/3% of aggregate indebtedness) | 6,902 | | Minimum net capital required | 5,000 | | Excess net capital | \$
29,624 | | Percentage of aggregate indebtedness to net capital is | 19.90% | | | | | Reconciliation with Company's computalion as of 12/31/2
1 | | | Net Capital as reported on FOCUS Form X-17 A-5 Part IIA (unaudited) | 33,794 | | Increase in allowable assets | 830 | | Net capital as reported above | \$
34,624 | {13}------------------------------------------------ ![](_page_13_Picture_0.jpeg) 100 E. Sybelia Ave. Suite 130 Maitland, FL 32751 *Certified Public Accountants* Email: oam@ohobco.com Telephone 407-740-7311 Fax 407-740-644 1 #### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Member's of May Capital Group, LLC We have reviewed m~!lagement's statements, included in the accompanying Exemption Report, ir, which (1) May Capital Group, LLC identified the following ·provisions of 17 C.F.R. §15c3-3(k)' under which May Capital Group, LLC claimed-an exemption from 17 C.F.R. §24Q.15c3-3: (2)(i) (exemption \_provisions) and (2). May Capital Group, LLC stated that May Capital Group, LLC met the identified exemption provisions throughout the most recent fiscal year without exception. May Capital Group, LLC's management is responsible for compliance with the exemption provisions and its statements. . . Qur review was ·con9ucted in accordance with the standards of the Public Company Ac9ounting ov·ersight Board (United States) and, accordingly, included inquiries and other required procedures to obtain evidence about May Capital Group, LLC's compliance with the exemption provisions. A review is substantially less in scope than ~n examination, the objective of which is the expression of an opinion on management's statements. Accordingly, we do not express such an opinion. · · · · · Based on our review, we are not aware of any material modifications that should be made to management's statements referred to ~bove for them to be fairly stated, in all material respects, based on the provisions set forth in paragraph (k)(2)(i) of Rule 15c3-3 under the Securities Exchange Act of 1934. · ~ ~ .. ~. o]/J- Ohab and Company, P.A. · Maitland, Florida March 30, 2022 {14}------------------------------------------------ # **MAY CAPITAL GROUP, LLC** ## Assertions Regarding Exemption Provisions T, as a member of the management of May Capital Group, LLC ("the Company"), am responsible for compliance with the annual reporting requirements under Rule I 7a-5 of the Securities Exchange Act of 1934. Those requirements compel a broker or dealer to file annual reports with the Securities Exchange Commission (SEC) and the broker or dealer's designated examining authority (DEA). One of the reports to be included in the annual filing is an exemption report prepared by an independent public accountant based upon a review of assertions provided by the broker or the dealer. Pursuant to the requirement, the management of the Company hereby makes the following assertions: ## **Identified Exemption Provision:** The Company claims exemption from the custody and reserve provisions or Rule I 5c3-3 by operating under the exemption provided by Rule l 5c3-3, Paragraph (k)(2)(i). ## **Statement Regarding Meeting Exemption Provision:** The Company met ~entificd exemption provision without exception throughout the period ending January . , 2021 !)ugh Dccem ber J **l,** 202 L ~?J r;mp, **LLC** By: V✓ Lawrence E. May, Managing Member Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.