# BHA SELECT NETWORK, LLC X-17A-5 (2022-03-09) — Broker-dealer annual report - Company: BHA SELECT NETWORK, LLC - Form: X-17A-5 - Filed: 2022-03-09 - Period: 2021-12-31 - Accession: 0001584711-22-000003 - CIK: 1584711 - File #: 8-69341 - Type: Broker-dealer - Material weakness: No - Auditor: Knight Rolleri Sheppard CPAs, LLP - Auditor location: Fairfield, CT - Contact: Ken George - Phone: 603-380-5435 - Signed by: Daniel McDermott (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1584711/000158471122000003/dec21_audit_bha_public.pdf --- {0}------------------------------------------------ **Report Pursuant to Rule 17a-5 of The Securities and Exchange Commission** **Including Report of Independent Registered Public Accounting Firm** **As of December 31, 2021** {1}------------------------------------------------ ## **TABLE OF CONTENTS** | | Page No. | |---------------------------------------------------------|-------------| | REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | 1 | | FINANCIAL STATEMENTS | | | Statement of Financial Condition | 2 | | Notes to Financial Statements | 3
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5 | {2}------------------------------------------------ ![](_page_2_Picture_0.jpeg) {3}------------------------------------------------ ## BHA SELECT NETWORK, LLC # STATEMENT OF FINANCIAL CONDITION December 31, 2021 ## ASSETS | Cash
Accounts receivable | \$
91,026
136,000 | |---------------------------------------|-------------------------| | Deposits and prepaid expenses | 5,609 | | Total Assets | \$
232,635 | | LIABILITIES AND MEMBER EQUITY | | | Accounts payable and accrued expenses | \$
6,415
6,415 | | | | | Member equity | 226,220 | | Total Liabilities and Member Equity | \$
232,635 | {4}------------------------------------------------ # **NOTES TO FINANCIAL STATEMENTS December 31, 2021** #### Note 1 **Organization and Nature of Business** BHA Select Network, LLC (the "Company") is a broker-dealer registered with the United States Securities and Exchange Commission ("SEC") and is a member of the Financial Industry Regulatory Authority ("FINRA"). The Company was founded in August 2008 under another name (previously known as Parker Point Capital, LLC) under the laws of the State of Massachusetts. The Company registered for broker-dealer status as BHA Select Network, LLC in July 2013 which was granted on March 5, 2014. The Company provides investment banking and related financial advisory services to alternative investment fund managers. It operates out of one office in Boston, Massachusetts. The Company's sole member is Brighton House Associates, LLC (the "Parent"), an investment banking firm located in Boston, Massachusetts. ## Note 2 **Summary of Significant Accounting Policies** ## **Basis of Presentation** The accompanying financial statements are presented in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). All items of income and expense are accounted for on the accrual basis. #### **Use of Estimates** Management uses estimates and assumptions in preparing financial statements. Those estimates and assumptions affect the reported amount of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates. ## **Lease Accounting** The Company has determined that the new lease accounting standard (ASC-842) does not apply to the Company. ## **Revenue Recognition** The Company recognizes revenue 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 (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) 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. {5}------------------------------------------------ # **NOTES TO FINANCIAL STATEMENTS (CONTINUED) December 31, 2021** #### Note 2 **Summary of Significant Accounting Policies (continued)** ## **Revenue Recognition (continued)** The Company provides investment banking and advisory services. Revenue for investment banking success fees is generally recognized at the point in time that performance under the arrangement is completed (the closing date of the transaction). For certain contracts, the Company must evaluate the likelihood of significant reversal of revenue due to matters outside company control and only recognize revenue up to the amount that a significant revenue reversal is not probable. Revenue for financial advisory retainer fees is generally recognized over time in which the performance obligations are simultaneously provided by the Company and consumed by the customer. Retainers and other fees received from customers prior to recognizing revenue are reflected as contract liabilities. At December 31, 2021, contract liabilities were \$0. Disaggregation can be found on statement of operations for the year ended December 31, 2021. Contract balances with customers at December 31, 2021 is \$136,000. | Contract liabilities for the year ended December 31, 2021 are as follows: | | |---------------------------------------------------------------------------|--| | | | | Deferred revenue, beginning of year | \$7,500 | |----------------------------------------------------------|---------| | Revenue recognized that was included in deferred revenue | (7,500) | | Deferred revenue, end of year | \$
0 | ## **Accounts Receivable** Accounts receivable represents amount earned but not yet received. Management assesses the need for any allowance for doubtful accounts based on information regarding individual accounts and historical collection experience. An allowance for doubtful accounts is determined based on management's best estimate of probable losses. There was no allowance for doubtful accounts as of December 31, 2021. ## **Cash and Cash Equivalents** The Company considers all highly liquid debt instruments purchased with an original maturity of three months or less from the date of purchase to be cash equivalents. ## **Income Taxes** The Company consolidates its taxable income with its Parent, which files a partnership return for federal, state and city purposes. As a result, no federal or Massachusetts State income taxes are provided as they are the responsibility of the individual members. Tax positions taken or expected to be taken in the course of preparing the Company's tax returns, including the position that the Company qualifies as a pass-through entity, are required to be evaluated to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authorities. There were no uncertain tax positions at December 31, 2021. {6}------------------------------------------------ # **NOTES TO FINANCIAL STATEMENTS (CONTINUED) December 31, 2021** ## Note 3 **Concentrations** The Company maintains cash balances in one financial institution, which are insured by the Federal Deposit Insurance Corporation (FDIC) for up to \$250,000 per institution. From time to time, the Company's balances may exceed these limits. #### Note 4 **Exemption from Rule 15c3-3** The Company amended its membership agreement with FINRA on December 3, 2020 and will not claim exemption from the provisions of Rule 15c3-3 of the SEC, in reliance on footnote 74 to SEC Release 34-70073. ## Note 5 **Net Capital Requirements** The Company is subject to the Securities and Exchange Commission's Uniform Net Capital Rule (Rule 15c3-1), which requires the maintenance of a minimum net capital, as defined, of the greater of \$5,000 or one-fifteenth of aggregate indebtedness, as defined. At December 31, 2021, the Company had net capital of \$84,611 which was \$79,611 greater than its minimum net capital required of \$5,000. As of December 31, 2021, the ratio of aggregate indebtedness to net capital was .076 to 1. #### Note 6 **Risk and uncertainties** In March 2020, the World Health Organization (WHO) declared COVID-19 a global pandemic. This pandemic event has resulted in significant business disruption and uncertainty in both global and U.S. markets. While management believes the Company is in an appropriate position to weather the potential short-term effects of these world-wide events, the direct and long-term impact to the Company and its financial statements is undetermined at this time. ## Note 7 **Subsequent events** For purposes of preparing financial statements the Company considered events through February 25, 2022, the date the financial statements were available for issuance. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.