FOCUS Report Maxwellfort Investments, Lp

X-17A-5 [Paper] - FOCUS Report

Filed: 2013-03-09 10:07:58
Dated: 2013-02-28
Period of Report: 2012-12-31
scanned.pdf Scanned paper document

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                                                                                                      UNITED             STATES                                                   0MB APPROVAL
                                                                                        RITIES   AND EXCHANGE
                                                                                                                COMM1SSIQ all
                                                                                               Washington D.C 20549
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                                                                                                                                                                                 ours per response                     12.00

                                                                                 ANNUAL AUDITED REPORTrE
                                                                                     FORM X-17A-5                                                                                                      FILE     NUMBER
                                                                                                                                                         Washington               DC
                                                                                                            PART                III
                                                                                                                                                                     400                      8-   68212

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

REPORT       FOR THE PERIOD                               BEGINNING                                         01/01/12                              AND ENDING                           12/1/12


                                                                                 REGISTRANT                        IDENTIFICATION

NAME OF BROKER-DEALER                                                  Monadnock          Securities                                                                                    QFiCIAL.USQJJLl

              OF PRINCIPAL                           PLACE OF BUSINESS                                  Do                       P.O Box          No                                         FIRM       ID
ADDRESS                                                                                                            not use

  219 West     Ninth      Street         220
                                                                                                             No     and    Street

                                                                                                                     Delaware                                                  19801

                                                                                                                          State                                                Zip Code

                                                     NUMBER OF PERSON TO CONTACT                                                            REGARD TO               THIS REPORT
NAME AND TELEPHONE                                                                                                                    IN
    Daniel    Bigelow
                                                                                                                                                                                 Area Code          Telephone      Number

                                                                                 ACCOUNTANT IDENTIFICATION

INDEPENDENT               PUBLIC                    ACCOUNTANT                          whose        opinion        is    contained         in this    Report

    Spicer    Jeffries     LLP

                                                                                          Name         if   individual       state    last first middle      name

                Quebec                              Suite        200                           Greenwood            Village                                            CO                                80111
    5251                         Street

                                                                                                                                                                     State                             Zip      Code
        Address                                                                                      City

CHECK        ONE
              11    Certified             Public             Accountant

                    Public             Accountant

                    Accountant                      not resident                 in   United    States       or any        of   its   possessions

                                                                                           FOR OFFICIAL USE ONLY

                                                                                                                                                                             an independent        public       accountant
 Claims for exemption                                the                                that   the   annual report              be covered        by   the   opinion   of
                                       from                  requirement

                                        statement                                 and    circumstances              relied on         as   the   basis for    the   exemption      See    Section      240.1     7a-5e2
 must   be supported        by                                     offacts

                                                                        persons who are to respond
                                                                                                         to the collection  of
                                                             Information  contained in this form are not required to respond
    SEC      1410      06-02                                 unless the form displays   currently valid 0MB control

                                                                                     OATH         OR AFFIRMATION

                                                                                                                                                             swear or affirm that                        to   the best of
          Daniel     Bigelow
                                                                                                                                                                                       to     the firm          of
                                                                                    financial     statement            and        supporting       schedules          pertaining
                            and belief the accompanying
my    knowledge

          Monadnock           Securities          LP
                                                                                                                                    are true     and      correct           further   swear or affirm                        that
                                                                                DecembeLL               2012
                                                                                                                                                                                   interest        in           account
                                                                                            principal       officer          or director has any              proprietary                                any
neither       the    company             nor     any    partner           proprietor

                                            of                             except     as   follows
classified         solely     as   that             customer




                            Notary Public

This       report           contains           check         all     applicable       boxes

     Ea       Facing        Page
     Ib        Statement           of Financial          Condition

               Statement           of   Income         Loss
               Statement           of                    in   Financial         Condition
     E1                                 Changes
               Statement           of                   in    Stockholders            Equity   of Partners             or Sole Proprietors                Capital
     0f        Statement           of    Changes in Liabilities                   Subordinated         to   Claims          of Creditors
                                                                                                                                                                    this   Rule    7a-5d                            if   applicable
                                         of Net Capital including                     reconciliation        of    X-        7A-5 Part       II   filing    with                                    report

     0h        Computation               for    Determination              of Reserve       Requirements
                                                                                                                       Pursuant        to   Rule        5c3-3

     0i        Information              Relating        to    the    Possession       or Control       Requirements                 Under Rule
                                                                                                       of Net Capital Under Rule                                                              5c3-3           and
     0j             Reconciliation               including appropriate explanation         Computation      of   the

                                                                                                              of Rule  5c3-3
                                                Determination  of the Reserve Requirements   Under Exhibit
               Computation                for
                                                                                                                                                                           with                    methods of
     0k                                                                                                                                                 Condition                             to
                                                 between            the   audited    and unaudited          Statements              of Financial                                  respect


               An     Oath     or Affirmation

     0m              copy     of   the    SIPC         Supplemental             Report
                                                                                                                                                                      since the date of
     0n                                                                                                                                                                                            the
                                                                                                 found      to    exist      or   found     to   have     existed                                         previous
                     report    describing           any material               inadequacies
     tIo       Independant               Auditors        Report           on   Internal    Accounting

                                                                                                                                                 see section         240.1    7a-5e3
     For conditions                of confidential                  treatment       of certain    portions             of    this   filing

                                      MONADNOCK SECURITES   LP



Independent      Auditors Report

Statement     of Financial   Condition

Notes   to   Financial   Statements

                                                                                                                                                                 .5                      SPICER JEFFRIES                                    LLP
                                                                                                                                                                                                       CERTIFIED PUBLIC ACCOUNTANTS

                                                                                                                                                                                     5251    SOUTH QUEBEC STREET                      SUITE       200

                                                                                                                                                                                    GREENWOOD           VILLAGE         COLORADO                80111

                                                                                                                                                                                                        TELEPHONE               303       753-1959

                                                                                                                                                                                                                        FAX     303       753-0338


                                                                            INDEPENDENT AUDITORS                                                REPORT

To    the Partners                of

Monadnock               Securities                LP

Report on             the    Financial Statements

We     have       audited          the       accompanying                  statement             of financial             condition         of Monadnock                      Securities            LP the       Company                         as

                                                                                                  Rule                     under         the Securities                Exchange             Act of 1934           and       the       related
of December                 31      2012          that    is    filed    pursuant           to               17a-5

notes    to the financial                    statements

Managements                       Responsibility                for the Financial Statements

                                                                                                                                                     of            financial             statement          in   accordance                with
                                                            for    the                                 and    fair        presentation                    this
Management                   is    responsible                             preparation

                                                                                  in    the United States of America                                      this    includes          the     design      implementation                          and
accounting principles                         generally           accepted
                                                                                                                           and                                         of    this    financial        statement                 free      from
maintenance                 of internal control                   relevant       to the preparation                                fair    presentation                                                                   is

material        misstatement                      whether         due    to fraud           or error

Auditors              Responsibility

Our responsibility                      is   to    express         an    opinion        on        this    financial          statement               based        on    our audit            We      conducted            our audit               in

                        with                            standards                                                 in      the    United         States           of America                 Those     standards            require              that
accordance                         auditing                                generally             accepted

                                                                                       reasonable                                       about        whether           the     financial        statement            that       is    free        of
we     plan       and        perform              the    audit     to    obtain                                assurance

material         misstatement

                                                                                                                          evidence                                amounts            and     disclosures          in     the      financial
An      audit         involves          performing               procedures            to    obtain          audit                         about          the

                                                                                                                                                                                     the     assessment           of the             risks        of
statements                 The         procedures               selected       depend              on    the      auditors              judgment                 including

                                                                                                                                                                        In                    those                                             the
                                                                              statements whether                           due                                                                                   assessments
                                                                                                                                          fraud      or error                                           risk
material          misstatement of the financial                                                                                    to                                         making
                                                                                                                                                                    and       fair                               of the           financial
auditor         considers               internal          control          relevant           to       the    Companys                    preparation                                    presentation

                       in                                        audit                              that      are                               in    the        circumstances                but     not    for the           purpose            of
statements                    order          to    design                   procedures                                 appropriate

                                                                                                                                                                                                        we                           no    such
expressing              an        opinion          on     the     effectiveness               of the          Companys                   internal          control            Accordingly                        express

                                                                                                                                                                                     used and          the reasonableness                         of
opinion               An    audit        also       includes        evaluating              the    appropriateness                  of accounting                   policies

                                                  estimates         made by management                               as     well        as evaluating              the       overall        presentation          of the financial
significant            accounting


                                                                                                                                                                                                             basis      for our            audit
We      believe            that        the    audit       evidence          we    have           obtained            is    sufficient           and       appropriate               to   provide



                                  the financial                statement      referred            to    above                                        in    all    material                          the financial              position           of
 In   our   opinion                                                                                                  presents           fairly                                      respects

                                                   LP           of December                                                                                                                                                               in     the
Monadnock                   Securities                   as                             31         2012      in   accordance               with       accounting principles generally                              accepted

 United States of America

 Greenwood Village Colorado

 Janury           30       2013


                                               MONADNOCK SECURITIES             LP

                                        STATEMENT OF FINANCIAL CONDITION
                                                DECEMBER 31 2012


      Cash   and   cash   equivalents                                                19796

      Commissions receivable                                                          3750
      Other assets                                                                     899


                               LIABILITIES       AND PARTNERS         CAPITAL

         Accounts     payable                                                          386

      COMMITMENTS               AND CONTINGENCIES             Notes    and

      PARTNERS CAPITAL                  Note                                         24059


The    accompanying          notes   are an integral   part of this statement

                                                     MONADNOCK SECURITIES                                       LP

                                              NOTES TO FINANCIAL STATEMENTS

NOTE        1-         ORGA NIZA TIONAND SIGNIFICANT                                         ACCOUNTING POLICIES

 Organization and business

Monadnock            Securities        LP the Partnership                          limited
                                                                           is                       partnership         organized        on February                  2009
under the laws of the             state    of Delaware            The                                   founded to allow
                                                                          Partnership           was                                    accredited         Investors      to

selectively                       in    alternate
                 participate                         private placement             stock        offerings       not    typically       available     to    them        The
Partnership          was approved as  broker-dealer registered                               with     the    Securities        and Exchange               Commission
SEC           and became       member of the Financial Industry                               Regulatory        Authority Inc             FINRA                 on April
 19 2010

Revenue        recognition

The      Partnership      recognizes         revenues      as     commissions                and      fees   are   earned        upon     the      sale    of various
investment       vehicles         Accounts        receivable       are carried          at    their    estimated        collectible       amounts and                losses
are   determined on the basis of experience                       with    the customer             and current economic                 conditions

15c3-3 exemption

The                       under Rule
       Partnership                           5c3-3k2i                is   exempt        from the customer                    reserve    requirements            and the
possession       or control       requirements        of Rule        5c3-3       of the        SEC       The                           does not
                                                                                                                  Partnership                   carry or clear
customer accounts

Cash and cash equivalents

For purposes of cash              flows     the                         considers
                                                   Partnership                          money market funds                     with     original     maturities         of
three months         or less to    be cash    equivalents


The   preparation        of financial statements             in    conformity           with       accounting                                                           in
                                                                                                                       principles      generally          accepted
the   United     States       of America      requires     management              to    make         estimates        and assumptions             that     affect     the
reported     amounts       of assets and       liabilities      and disclosure               of contingent         assets and liabilities            at   the   date of
the financial        statements     and the reported           amounts          of revenues           and expenses                      the
                                                                                                                              during          reporting         period
Actual     results    could    differ   from those estimates

Income      taxes

The   Partnership        is   recognized      as      limited partnership                by the        Internal       Revenue         Service        Accordingly
the Partnerships                        are liable         federal and state
                          partners                   for                                 income         taxes     on   its   taxable    income

                                                                 MONADNOCK SECURITIES                                          LP

                                                           NOTES TO FINANCIAL STATEMENTS

NOTE       1-               SUMMARY OF SIGNIFICANTA CCOUNTING                                                               POLICIES                concluded

Income       taxes         concluded

The     Partnership           is    required          to   determine           whether             tax position           is   more      likely       than       not     to   be sustained

upon     examination               by the applicable                   taxing       authority          including         resolution        of any tax              related          appeals      or

litigation     processes                based        on the technical               merits      of the position                 The    Partnership               files    an income             tax

return    in    the        U.S         federal       jurisdiction             and    may        file    income         tax     returns     in       various         U.S        states       The

Partnership         is     not     subject      to    income        tax return         examinations               by maj or taxing              authorities            for
                                                                                                                                                                              years     before

2009      The       tax benefit            recognized             is    measured            as the      largest    amount           of benefit            that    has         greater      than

fifty   percent          likelihood            of being          realized        upon          ultimate         settlement            De-recognition                   of      tax     benefit

previously          recognized                results       in   the      Partnership             recording               tax     liability         that     reduces           net     assets

However         the Partnerships                                                                                            be subject               review        and adjustment
                                                     conclusions           regarding           this    policy     may                          to                                                at

  later   date based              on factors including                    but    not    limited to on-going                    analyses        of and changes                  to    tax   laws
regulations           and         interpretations                thereof            The        Partnership          recognizes             interest              accrued        related          to

unrecognized               tax benefits             and penalties related                 to    unrecognized             tax benefits          in    income            taxes    payable          if

assessed        No         interest
                                         expense           or penalties          have been recognized                     as    of and     for      the year        ended December

31 2012


Pursuant       to     the        net    capital       provisions              of Rule          15c3-l         of the     Securities        Exchange                Act        of 1934           the

Partnership           is    required           to    maintain              minimum              net     capital        as      defined     under           such        provisions               At
December 31 2012                        the    Partnership             had net      capital       and net       capital        requirements               of $19410            and    $5000
respectively               The     Partnerships              net       capital      ratio      aggregate          indebtedness            to    net       capital        was        0.02   to

According        to      Rule          5c3-         the Partnerships                net capital         ratio    shall    not    exceed        15    to


The     Partnership           leases office space                  from          related party under                     non-cancelable               operating             lease expiring

through      2013            The       Partnership           paid       the    related party            $4320       for rent during                 the    year
                                                                                                                                                                ended               December
31 2012         Future           minimum lease               payments            are    $4320           for   the year         ending December                   31 2013

                                                MONADNOCK SECURITIES                                 LP

                                            NOTES TO FINANCIAL STATEMENTS


The                         financial     instruments       including        cash    and cash       equivalents      commissions               receivable
                                                                           amounts                                fair    value     due   to    the    short-
other assets      and accounts           payable     are carried     at                that    approximate

term   nature   of those instruments

The    Partnership     is   in   the business       of syndicating        and marketing        private    placements of stock             to    accredited

investors       Its   business      is               affected   by downturns           in     the   market   and    its   ability    to   raise       capital

during    distressed economic             conditions


The                    has                      an     evaluation         of subsequent         events    through         the     date    the    financial
         Company                 performed
statements      were    issued       The   evaluation      did not result       in
                                                                                     any subsequent events            that      required disclosures

and/or    adjustments

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