# CMD GLOBAL PARTNERS, LLC X-17A-5 (2023-09-28) — Broker-dealer annual report - Company: CMD GLOBAL PARTNERS, LLC - Form: X-17A-5 - Filed: 2023-09-28 - Period: 2023-06-30 - Accession: 0001790790-23-000001 - CIK: 1790790 - File #: 8-70432 - Type: Broker-dealer - Material weakness: No - Auditor: DeMarco Sciaccotta Wilkens & Dunleavy LLP - Auditor location: Frankfort, IL - Contact: Chris Salamasick - Phone: (312) 555-2666 - Email: csalamasick@cmdglobal.com - Website: cmdglobal.com - Signed by: Mark C. Salamasick (Member, Managing Director) Original filing: https://www.sec.gov/Archives/edgar/data/1790790/000179079023000001/CMDPublicAnnualReports1.pdf --- {0}------------------------------------------------ ### UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 # ANNUAL REPORTS FORM X-17A-5 PART III | OMB APPROVAL | | | |--------------------------|----|--| | OMB Number: 3235-0123 | | | | Expires: Oct. 31, 2023 | | | | Estimated average burden | | | | hours per response: | 12 | | # SEC FILE NUMBER 8-70432 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 | 01/01/22 | AND ENDING | 06/30773 | | | | |-----------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|------------|-----------------|--|--|--| | | MM/DD/YY | | MM/DD/YY | | | | | A. REGISTRANT IDENTIFICATION | | | | | | | | NAME OF FIRM: CMD Global Partners, LLC | | | | | | | | TYPE OF REGISTRANT (check all applicable boxes):
മ Broker-dealer
Check here if respondent is also an OTC derivatives dealer | | | | | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | | | | 123 North Wacker Drive, Suite 1375 | | | | | | | | | (No. and Street) | | | | | | | Chicago | | | 60606 | | | | | (City) | (State) | | (Zip Code) | | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | | Chris Salamasick | (312) 550-2666 csalamasick@cmdglobal.com | | | | | | | (Name) | (Area Code - Telephone Number) | | (Email Address) | | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing * | | | | | | | | DeMarco Sciaccotta Wilkens & Dunleavy, LLP | (Name - if individual, state last, first, and middle name) | | | | | | | | | | | | | | | 20646 Abbey Woods Ct N | Frankfort | 11 | 60423 | | | | | (Address) | (City) | (State) | (Zip Code) | | | | | December 21, 2010 | 5376 | | | | | | | (Date of Registration with PCAOB)(if applicable) | (PCAOB Registration Number, if applicable) | | | | | | | FOR OFFICIAL USE ONLY
avantian trama tha raguiramant that the parante be gallerial by the roperty of an indonesant | | | | | | | Claims for exemption from the requirement that the annual reports of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-5(e)(1)(ii), if applicable. 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. {1}------------------------------------------------ ### OATH OR AFFIRMATION | Mark C. Salamasick | swear (or affirm) that, to the best of my knowledge and belief, the | |--------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------| | financial report pertaining to the firm of | CMD Global Partners, LLC
, as of | | | June 30, 2023 | | | partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely | | as that of a customer. | | | | | | | | ![](_page_1_Picture_2.jpeg) Signature: Title: Member, Managing Director Notary Public ## This filing\*\* contains (check all applicable boxes): - (a) Statement of financial condition. - 2 (b) Notes to consolidated statement of financial condition. - | (c) Statement of income (loss) or, if there is other comprehensive in the period(s) presented, a statement of comprehensive income (as defined in § 210.1-02 of Regulation S-X). OFFICIAL SEAL DANIEL JAMES HAFFNER - [ (d) Statement of cash flows. - [ {e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - [ (f) Statement of changes in liabilities subordinated to claims of creditors. - [ (g) Notes to consolidated financial statements. - [ (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. - [ (i) Computation of tangible net worth under 17 CFR 240.18a-2. - | (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - □ (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. - [ (I) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. - [ (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - [ (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. - [ (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capible net worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-2, 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. - [ (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - 2 (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. - [ (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - [ (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - [ (t) Independent public accountant's report based on an examination of the statement of financial condition. - 2 (u) Independent public accountant's report based on an examination of the financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - [] (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-5 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. - | |x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.17a-12, as applicable. - [] {y) Report describing any material inadequacies found to have existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). - O (z) Other: - \*\* To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e)(2), or 17 CFR 240.18a-7(d)(2), as applicable. {2}------------------------------------------------ # **FINANCIAL STATEMENT** JUNE 30, 2023 {3}------------------------------------------------ ## JUNE 30, 2023 ### **TABLE OF CONTENTS** | | Page | |---------------------------------------------------------|------| | Report of Independent Registered Public Accounting Firm | 1 | | Financial Statements | | | Statement of Financial Condition | 2 | | Notes to Financial Statement | 3 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) ### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Board of Directors and Member CMD Global Partners, LLC ### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of CMD Global Partners, LLC (the "Company") as of June 30, 2023, 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 CMD Global Partners, LLC as of June 30, 2023 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 statement. 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 statement. We believe that our audit provides a reasonable basis for our opinion. We have served as CMD Global Partners, LLC's auditor since 2022. Frankfort, Illinois September 27, 2023 {5}------------------------------------------------ ## STATEMENT OF FINANCIAL CONDITION JUNE 30, 2023 ### **ASSETS** | Current Assets: | | |-------------------------------------|---------------| | Cash | \$
662,745 | | Accounts Receivable | 115,903 | | Prepayments and Deposits | 1,232 | | Other Current Assets | 16,825 | | Total Current Assets | \$
796,705 | | Long-term Assets: | | | Computer Equipment, net | \$
19,044 | | Total Long-term Assets | \$
19,044 | | TOTAL ASSETS | \$
815,749 | | LIABILITIES & MEMBER'S EQUITY | | | Current Liabilities: | | | Accounts Payable | \$
224 | | Accrued Wages | 70,354 | | Deferred Revenue | 24,000 | | Total Current Liabilities | \$
94,578 | | | | | Member's Equity | \$
721,171 | | TOTAL LIABILITIES & MEMBER'S EQUITY | \$
815,749 | See notes to financial statement {6}------------------------------------------------ NOTES TO FINANCIAL STATEMENT JUNE 30, 2023 #### **1. Description of Business** CMD Global Partners, LLC ("CMD" or the "Company") is a broker-dealer registered with the Securities and Exchange Commission ("SEC") and is a member of the Financial Industry Regulatory Authority ("FINRA"). CMD was organized under the Limited Liability Company Act of the State of Delaware. CMD was formed on September 20, 2019, and became registered with the SEC and FINRA effective September 30, 2020. CMD's principal business activity is to provide investment banking services to its clients, including corporations and others, on various transactions, as well as financial, structural and strategic advice. Such transactions include mergers, acquisitions, restructurings, financings and other extraordinary corporate transactions. CMD does not have any trading accounts, nor does it hold cash or securities for or on behalf of any customers or clients. CMD Global Partners, LLC is wholly owned by CMD Global Partners HoldCo, LLC as of June 30, 2023. #### **2. Summary of Significant Accounting Policies** #### *Basis of Presentation* The financial statements have been prepared in accordance with accounting standards generally accepted in the United States of America ("GAAP"). #### *Use of Estimates* Management uses estimates and assumptions in preparing financial statements. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates. #### **3. Accounts Receivable** Accounts Receivable are stated in the amounts management expects to collect. An allowance for doubtful accounts is recorded based on a combination of historical experience, aging analysis and information on specific accounts. Account balances are written off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. As of June 30, 2023, there was \$115,903, of accounts receivable from contracts with customers and no allowance for doubtful accounts. {7}------------------------------------------------ NOTES TO FINANCIAL STATEMENT JUNE 30, 2023 #### **4. Concentration of Credit Risk** The Company maintains its cash balances primarily at one financial institution. Cash balances are insured by the Federal Deposit Insurance Corporation ("FDIC") subject to certain limitations. The Company has not experienced losses on these accounts, and management believes that the Company is not exposed to significant risk on such accounts. #### **5. Related Party Transactions** The Company has related party transactions with its parent ("HoldCo"), and a commonly controlled affiliate. The transactions with these related parties are primarily comprised of shared expenses incurred during the normal course of business. During the period the Company recognized \$467,601 as expenses incurred in relation to services received and shared by HoldCo. As of June 30, 2023, no amounts were owed by or to these related parties. The Company believes that all transactions with related parties were conducted on terms equivalent to those prevailing in an arm's-length transaction. #### *Lease Transfer and Payments to Parent* On June 1, 2022, the Company transferred its operating lease agreement for office space in Chicago, Illinois expiring May 31, 2023, to HoldCo. This transaction was conducted at arm's length. As a result of this lease transfer, the Company's lease liability and right-of-use asset were reduced by \$105,313 and \$93,477, respectively. There was no significant gain or loss recognized on the lease transfer. Subsequently, the total rent expenses incurred and paid to HoldCo for the use of the premises during the remainder of the period was \$31,982. #### *Payroll Processing Transfer and Payments to Parent* On April 1, 2022, the Company initiated the transfer of payroll processing functions to HoldCo. The transfer of payroll processing enhances efficiency and reduces the payroll burden among the Company and its affiliates. This migration implies that all responsibilities, activities, and processes related to payroll, including the calculation of salaries, wage deductions, and employee benefits, are now managed and operated by HoldCo. This transition involved a comprehensive review and realignment of payroll-related processes and systems to ensure a seamless integration with HoldCo's existing payroll management infrastructure. The Company and HoldCo leveraged common use of the same third-party payroll provider, to streamline the migration. There was no direct financial impact to the Company as a result of this migration. The total payroll and benefits related compensation expenses recognized in relation to services received from HoldCo during the period amounted to \$352,995. There have been no adverse impacts on the employees due to this migration. All employee benefits, salary calculations, and deductions remain unaffected, and employees continue to receive timely and accurate salary payments. {8}------------------------------------------------ NOTES TO FINANCIAL STATEMENT JUNE 30, 2023 #### **5. Related Party Transactions cont.** #### *Payroll Processing Transfer and Payments to Parent cont.* The Company and HoldCo have ensured that this migration complies with all relevant legal and regulatory requirements related to payroll processing and employee data protection. Adequate measures have been implemented to ensure the security and confidentiality of employee payroll information, and employees were informed of the changes and provided with the necessary support during the transition period. #### *Defined Contribution Plan Transfer* On April 1, 2022, in conjunction with the Company's payroll processing migration, the Company transferred its defined contribution plan to HoldCo. As a result of the transfer, the company's liabilities and obligations associated with the defined contribution plan were transferred to HoldCo. There was no financial impact to the Company as a result of the migration, and no significant adverse impact to employees covered under the plan. This transaction was conducted in compliance with applicable laws and regulations, and adequate arrangements were made to safeguard the interests of the employees covered under the plan. #### **6. Income Taxes** The Company is organized as a limited liability company and is considered to be a disregarded entity for income tax purposes. Accordingly, no provision for federal or state income taxes has been made in the accompanying financial statements, as the member includes the Company's taxable income or loss on its income tax returns. #### **7. Regulatory Requirements** As a registered broker-dealer, the Company is subject to the net capital provisions of Rule 15c3-1 of the Securities Exchange Act of 1934, which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital shall not exceed fifteen times net capital, as defined. At June 30, 2023, the Company had net capital of \$568,167, which exceeded requirements by \$561,862. The ratio of aggregate indebtedness to net capital was 0.17 to 1. The Company does not carry customer accounts. Accordingly, the computation for determination of reserve requirements and information relating to possession or control requirements under SEC Rule 15c3-3 are not applicable. {9}------------------------------------------------ NOTES TO FINANCIAL STATEMENT JUNE 30, 2023 #### **8. Commitments and Contingencies** As of June 30, 2023, the Company has no other commitments or contingencies. #### **9. Subsequent Events** The Company has evaluated subsequent events through September 27, 2023, the date the financial statements were issued. No material subsequent events were identified that would require recognition or disclosure in the financial statements. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.