# HEXT CAPITAL PARTNERS LLC X-17A-5 (2025-09-15) — Broker-dealer annual report - Company: HEXT CAPITAL PARTNERS LLC - Form: X-17A-5 - Filed: 2025-09-15 - Period: 2022-12-31 - Accession: 0000909872-25-000004 - CIK: 909872 - File #: 8-46198 - Type: Broker-dealer - Material weakness: No - Auditor: Jennifer Wray CPA PLLC - Auditor location: Sugar Land, TX - Contact: Gregory Hext - Phone: 972-644-7112 - Email: ghext@hextfinancialgroup.com - Website: hextfinancialgroup.com - Signed by: Gregory Hext (Managing Member) Original filing: https://www.sec.gov/Archives/edgar/data/909872/000090987225000004/HCPAudit2022.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 | | | | CCC Cill C SHIRADED | 8-46198 # 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 1/1/2022 MM/DD/THE PERIOD BEGINNING 1/1/2022 MM/DD/V MM/DD/YY A. REGISTRANT IDENTIFICATION NAME OF FIRM: Hext Capital Partners, LLC TYPE OF REGISTRANT (check all applicable boxes): 🇿 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.) ## 5001 Spring Valley Rd Suite 850W | | (No. and Street) | | | |----------------------------------------------|--------------------------------|------------------------------|--| | Dallas | IX | 75244 | | | (City) | (State) | (Zip Code) | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | Gregory Hext | 972-644-7112 | ghext@hextfinancialgroup.com | | | (Name) | (Area Code - Telephone Number) | (Email Address) | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | | | #### INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing\* ## Jennifer Wray CPA PLLC | (Name - if individual, state last, first, and middle name) | | | | | | | |------------------------------------------------------------|--|-----------------------|---------|--------------------------------------------|--|--| | 800 Bonaventure Way, Suite 168 Sugar Land | | | IX | 77479 | | | | (Address) | | (City) | (State) | (Žip Code) | | | | 11/30/2016 | | | 6328 | | | | | (Date of Registration with PCAOB)(if applicable) | | | | (PCAOB Registration Number, if applicable) | | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | | \* 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 | Gregory Hext | swear (or affirm) that, to the best of my knowledge and belief, the | | | | | | |------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|--|--|--|--|--| | financial report pertaining to the firm of Hext Capital Partners, LLC | . as of | | | | | | | 12/31 | 2 022 is true and correct. I further swear (or affirm) that neither the company nor any | | | | | | | partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classfied solely | | | | | | | | as that of a customer.
Ship Chi R. B. A. A. A. A. C. | | | | | | | ![](_page_1_Picture_2.jpeg) Signature: Title: Notary Public #### This filing\*\* contains (check all applicable boxes): - (a) Statement of financial condition. - [ (b) Notes to consolidated statement of financial condition. - (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. - [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. - [] 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. - [1) 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 capital or tangible net worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-1, 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. - O (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. - [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. - O (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 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 240.176-12, 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 fillng, see 17 CFR 240.17a-5(e)(3) or 17 CFR 240.18c-7(d)(2), as applicable. {2}------------------------------------------------ ## Hext Capital Partners, LLC ### REPORT PURSUANT TO RULE 17a-5(d) YEAR ENDED DECEMBER 31, 2022 {3}------------------------------------------------ ## Hext Capital Partners, LLC ### CONTENTS Page | REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | | | |---------------------------------------------------------------------------------------------------------------------------------------------|-------|--| | STATEMENT OF FINANCIAL CONDITION | 3 | | | STATEMENT OF OPERATIONS | 4 | | | STATEMENT OF CHANGES IN MEMBER'S EQUITY | 5 | | | STATEMENT OF CASH FLOWS | 6 | | | NOTES TO FINANCIAL STATEMENTS | 7-8 | | | SUPPORTING SCHEDULES | | | | Schedule I: Computation of Net Capital Under Rule 15c3-1 of the Securities
and Exchange Commission | 9-10 | | | Schedule II: Computation for Determination of Reserve Requirements
Under Rule 15c3-3 of the Securities and Exchange Commission | 11 | | | Schedule III: Information Relating to the Possession or Control Requirements
Under Rule 15c3-3 of the Securities and Exchange Commission | 11 | | | REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
ON MANAGEMENT'S EXEMPTION REPORT | 12-13 | | {4}------------------------------------------------ ### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the members of Hext Capital Partners, LLC #### Opinion on the Financial Statements We have audited the accompanying statement of financial condition of Hext Capital Partners, LLC as of December 31, 2022, the related statements of income, changes in member's equity, and cash flows for the year ended December 31, 2022, and the related notes and schedules. In our opinion, the financial statements present fairly, in all material respects, the financial position of Hext Capital Partners, LLC as of December 31, 2022 and the results of its operations and its cash flows for the year ended December 31, 2022 in conformity with accounting principles generally accepted in the United States of America. #### Basis for Opinion These financial statements are the responsibility of Hext Capital Partners, LLC's management. Our responsibility is to express an opinion on Hext Capital Partners, LLC's financial statements 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 Hext Capital Partners, LLC in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the РСАОВ. 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 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 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 supplementary information contained in Schedules I, II & III have been subjected to audit procedures performed in conjunction with the audit of Hext Capital Partners, LLC's financial statements. The supplemental information is the responsibility of Hext Capital Partners, 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 completeness and accuracy of the information presented in the supplemental 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 Supplementary schedule is fairly stated, in all material respects, in relation to the financial statements as a whole. Jennifer Wray CPA PLLC We have served as Hext Capital Partners, LLC's auditor since 2018. Sugar Land, Texas Mar 23, 2023 {5}------------------------------------------------ ### Hext Capital Partners, LLC Statement of Financial Condition December 31, 2022 ### ASSETS | Assets: | | |---------------------------------------|---------------| | Cash and cash equivalents | લ્ક
67,619 | | Prepaid expenses | 860 | | Total Assets | 68,479 | | LIABILITIES AND MEMBER'S EQUITY | | | Accounts Payable | 5,995 | | Current Liabilities | 3,000 | | Total Liabilities | 8,995 | | Member's Equity | 59,484 | | Total Liabilities and Member's Equity | ક
68,479 | | | | The accompanying notes are an integral part of the financial statements. Page 3 {6}------------------------------------------------ ### Hext Capital Partners, LLC Statement of Operations December 31, 2022 | Revenue - Fee Income | S
2,414,378 | |----------------------------------|----------------| | Expenses: | | | Compensation | 1.706.263 | | Professional and regulatory fees | 18.756 | | Commissions | 634.416 | | Administrative expenses | 15,385 | | Total Expenses | 2.374.819 | | Net Income (Loss) | 5
39.559 | {7}------------------------------------------------ Hext Capital Partners, LLC Statement of Changes in Member's Equity For the Year Ended December 31, 2022 | | | Member's
Equity | |------------------------------|-------|--------------------| | Balances at | | | | December 31, 2021 | સ્ત્ર | 19,925 | | Allocated capital | સ્ત્ર | | | Member capital contributions | | | | Distributions to member | | | | Net income (loss) | | 39,559 | | Balances at | | | | December 31, 2021 | | 59.484 | | | | | The accompanying notes are an integral part of the financial statements. {8}------------------------------------------------ ### Hext Capital Partners, LLC Statement of Cash Flows For the Year Ended December 31, 2022 | Cash flows from operating activities | | | |---------------------------------------------------------|-------|--------| | Net income (loss) | સ્ત્ર | 39,559 | | Adjustments to reconcile net income (loss) to net cash | | | | provided (used) by operating activities: | | | | Changes in current assets and liabilities: | | | | Decrease in accounts receivable | | 5,000 | | Decrease in prepaid expense | | 385 | | Increase in accounts payable | | 4,136 | | Increase in deferred revenue | | 3,000 | | Allocated Capital | | | | Net cash provided by operating activities | | 52,080 | | Cash flows from investing activities | | | | Net cash provided (used) by investing activities | સ્ત્ર | -0- | | Cash flows from financing activities | | | | Member capital contributions
Distributions to member | | | | Net cash used by financing activities | | | | Net increase in cash and cash equivalents | | 52,080 | | Cash and cash equivalents at beginning of year | | 15,539 | | Cash and cash equivalents at end of year | S | 67,619 | | Supplemental Schedule of Cash Flow Information | | | | Cash paid during the year for: | | | | Interest | રિક | | | Income Taxes | S | -0- | The accompanying notes are an integral part of the financial statements. {9}------------------------------------------------ Hext Capital Partners, LLC (the "Company") is a registered broker-dealer subject to Rule 17a-5 promulgated by the Securities and Exchange Commission (17 C.F.R. §240.17a-5, "Reports to be made by certain brokers and dealers"). The Company does not claim an exemption under paragraph (k) of 17 C.F.R. §240.15c3- 3, and The Company is filing this Exemption Report relying on Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. §240.17a-5 because the Company limits it business activities exclusively to capital raising of equity, senior and subordinated debt, mergers and acquisitions and general financial consulting and advisory; during the report period the firm (a) did not directly or indirectly receive, hold and or otherwise owe funds or securities for to customers, other than money or other consideration received and promptly transmitted in compliance with paragraph (a) or (b)(2) of Rule 15c2- 4; (b)did not cary accounts of or for customers; and (c) did not carry PAB account (as defined in Rule 15c3-3) The Company provides investment banking services related to the corporate finance needs of middle-market companies including the private placement of equity, mezzanine and debt securities as well as advisory services related to mergers and acquisitions, divestitures, and business strategy. Revenue is recognized for financial advisory services rendered based on the contractual terms of each respective agreement. The Company's customer base is located throughout the United States. Receivables are generally collected in full in the month following their accrual. As such, management has not recorded an allowance for doubtful accounts on these receivables. Management records an allowance for bad debts based on a collectability review of specific accounts. Any receivables deemed uncollectible are written off against the allowance. Compensated absences have not been accrued because the amount cannot be reasonably estimated. For purposes of reporting cash flows, the Company has defined cash equivalents as highly liquid investments with original maturities of less than ninety days that are not held for sale in the ordinary course of business. The Company's net income is taxed at the member level rather than at the corporate level for federal income tax purposes. Any potential interest and penally associated with a tax contingency, should one arise, is included as a component of income tax expense in the period in which the assessment arises. The Member's federal and state income tax returns are subject to examination over various statutes of limitations generally ranging from three to five years. The preparation of financial statements in conformity with accounting principles generally accepted in 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 financial statements and the reported anounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. {10}------------------------------------------------ #### Note 2 -Net Capital Requirements Pursuant to the net capital provisions of Rule 15c3-1 of the Securities Exchange Act of 1934, the Company is required to maintain a minimum net capital, as defined under such provisions. Net capital and the related net capital ratio may fluctuate on a daily basis. At December 31, 2022, the Company had net capital of approximately \$58,624 and net capital requirements of \$5,000. The Company's ratio of aggregate indebtedness to net capital was 0.10 to 1. The Securities and Exchange Commission permits a ratio of no greater than 15 to 1. The Company periodically makes distributions of capital to its member at amounts that are determined not to have a detrimental effect on the net capital position at the time of withdrawal. #### Note 3 - Possession or Control Requirements The Company holds no customer funds or securities. #### Note 4 -Income Taxes The Company is taxed as a limited liability company (LLC) under the applicable sections of the Internal Revenue Code and has elected to be treated as a partnership. As a result, any income tax liabilities are the responsibility of the Company's members. Accordingly, no provision for income taxes has been included in the accompanying consolidated financial statements. #### Note 5 - Related Party Transactions The Company and various entitles are under common control and the existence of that control creates operating results and financial position significantly different than if the companies were autonomous. During the year ended December 31, 2022, the company paid \$1,706,263 in compensation to its Member. #### Note 6 -Subsequent Events The Company has reviewed all subsequent events through which the financial statements are available to be issued. There were no events or transactions that occurred during this period that materially impacted the amounts or disclosures in the Company's financial statements. {11}------------------------------------------------ #### Schedule l ### Hext Capital Partners Capital, LLC Computation of Net Capital Under Rule 15c3-1 Of the Securities and Exchange Commission As of December 31, 2022 #### COMPUTATION OF NET CAPITAL | Total member's qualified for net capital | 59,484 | |------------------------------------------------------------------------------------|--------| | Add:
Other deductions or allowable credits: | | | Total capital and allowable subordinated liabilities | 59,484 | | Deductions and/or charges
Non-allowable assets:
Prepaid expenses | 860 | | Net capital before haircuts on securities positions | 58,624 | | Haircuts on securities (computed, where applicable,
pursuant to Rule 15c3-1(f)) | | | Net capital | 58.624 | | AGGREGATE INDEBTEDNESS | | ltems included in the statement of financial condition: Total aggregate indebtedness 5,995 S {12}------------------------------------------------ #### Schedule I (continued) ### Hext Capital Partners, LLC Computation of Net Capital Under Rule 15c3-1 Of the Securities and Exchange Commission As of December 31, 2022 #### COMPUTATION OF BASIC NET CAPITAL REQUIREMENT | Minimum net capital required (6 2/3% of total
aggregate indebtedness) | 400 | |-------------------------------------------------------------------------------|-----------| | Minimum dollar net capital requirement of
reporting broker or dealer | | | Net capital requirement (greater of above two
minimum requirement amounts) | 5.000 | | Net capital above the required minimum | 53.624 | | Ratio: Aggregate indebtedness to net capital | 0.10 to 1 | ### RECONCILIATION WITH COMPANY'S COMPUTATION The difference in the computation of net capital under Rule 15c3-1 from the Company's computation is as follows: | Net capital per the Company's unaudited FOCUS IIA
Difference: | \$ 58.624 | |------------------------------------------------------------------|-----------| | | | | Net capital per audited report | \$ 58.624 | {13}------------------------------------------------ ### Hext Capital Partners, LLC Schedule II & III - Pursuant to SEA Rule 17a-5 Of Securities and Exchange Act of 1934 December 31, 2022 #### SCHEDULE II #### COMPUTATION FOR DETERMINATION OF RESERVE REQUIREMENTS UNDER RULE 15c3-3 OF THE SECURITIES AND EXCHANGE COMMISSION AS OF DECEMBER 31, 2022 Computation for Determination of Reserve Requirements under Rule 15c3-3 does not applicable to Hext Capital Partners, LLC ### SCHEDULE III INFORMATION RELATING TO THE POSSESSION OR CONTROL REQUIREMENTS . UNDER RULE 15c3-3 OF THE SECURITIES AND EXCHANGE COMMISSION AS OF DECEMBER 31, 2022 Information Relating to the Possession or Control Requirements under Rule 15c3-3 does not applicable to Hext Capital Partners, LLC {14}------------------------------------------------ Supplementary Information Pursuant to Rule 17a-5 of the Securities Exchange Act of 1934 As of December 31, 2022 {15}------------------------------------------------ ### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Members of Hext Capital Partners, LLC We have reviewed managements, included in the accompanying Exemption Report, in which The Company is a registered broker subject to Rule 17a-5 promulgated by the Securities and Exchange Commission (17 C.F.R. §240.17a-5, "Reports to be made by certain brokers and dealers"). This Exemption Report was prepared as required by 17 C.F.R. §240.17a-5(d)(1) and (4). To the best of its knowledge and belief, the Company states the following: (1) The Company does not claim an exemption under paragraph (k) of 17 C.F.R. § 240. 15c3-3, and (2) The Company is filing this Exemption Report relying on Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 because the Company limits its business activities exclusively to capital raising of equity, senior and subordinated debt, mergers and acquisitions and general financial consulting and advisory; and the Company (1) did not directly receive, hold, or otherwise owe funds or securities for or to customers, other than money or other consideration received and promptly transmitted in compliance with paragraph (a) or (b)(2) of Rule15c2-4; (2) did not carry accounts of or for customers; and (3) did not carry PAB accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year without exception. Hext Capital Partners, LLC's management is responsible for compliance with the Footnote 74 and its statements. Our review was conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) and, accordingly, included inquiries and other required procedures to obtain evidence about Hext Capital Partners, LLC's compliance with the exemption provisions. A review is substantially less in scope than an 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 above for them to be fairly stated, in all material respects, based on the Rule 15c3-3 under the Securities Exchange Act of 1934. Jennifer Wray CPA PLLC Sugar Land, Texas. March 23, 2023 {16}------------------------------------------------ ![](_page_16_Picture_0.jpeg) HEXT CAPITAL PARTNERS, LLC Mergers & Acquisitions Corporate Finance Transaction Advisory Services 5001 Spring Valley Rd, Suite 850W Dallas, TX 75244-3913 O: (972) 644-7112 F: (972) 680-8685 http://www.hextfinancialgroup.com Hext Capital Partners LLC ### **Exemption Report** December 31, 2022 Hext Capital Partners LLC (the "Company") is a registered broker-dealer subject to Rule 17a-5 promulgated by the Securities and Exchange Commission (17 C.F.R. §240.17a-5, "Reports to be made by certain brokers and dealers"). This Exemption Report was prepared as required by 17C.F.R. §240.17a-5(d)(1) and (4). To the best of its knowledge and belief, the Company statesthe following: - (1) The Company does not claim an exemption under paragraph (k) of 17 C.F.R. §240.15c3- 3, and - (2) The Company is filing this Exemption Report relying on Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. §240.17a-5 because the Company limits it business activities exclusively to capital raising of equity, senior and subordinated debt; mergers and acquisitions (buy and sell side); and general financial consulting and advisory. During the report period the firm (a) did not directly or indirectly receive, hold and or otherwise owe funds or securities for to customers, other than money or other consideration received and promptly transmitted in compliance with paragraph (a) or (b)(2) of Rule 15c2- 4; (b)did not carry accounts of or for customers; and (c) did not carry PAB accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year without exception. Hext Capital Partners LLC I, Gregory W. Hext, swear (or affirm) that, to my best knowledge and belief, this Exemption Report is true and correct. By: Title: Managing Member Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.