# 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: 2023-12-31 - Accession: 0000909872-25-000005 - CIK: 909872 - File #: 8-46198 - Type: Broker-dealer - Material weakness: No - Auditor: Jennifer Wray CPA PLLC - Auditor location: Sugar Land, TX - Contact: Greg Hext - Phone: 972-644-7112 - Website: hextfinancialgroup.com - Signed by: Gregory Hext (Managing Member) Original filing: https://www.sec.gov/Archives/edgar/data/909872/000090987225000005/HCPAudit2023.pdf --- {0}------------------------------------------------ #### **Hext Capital Partners, LLC** REPORT PURSUANT TO RULE 17a-5(d) YEAR ENDED DECEMBER 31, 2023 {1}------------------------------------------------ #### **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** | OMB APPROVAL | | |--------------------------------------------------------------------------------------------------------------------|--| | OMB Number:
3235-0123
Expires:
August 31, 2020
Estimated average burden
hours per response
12.00 | | | SEC FILE NUMBER | | 8-46198 # **ANNUAL AUDITED REPORT FORM X-17A-5 PART III** # **FACING PAGE Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder** | REPORT FOR THE PERIOD BEGINNING | 01/01/23 | AND ENDING | 12/31/23 | |--------------------------------------------------------------------------|--------------------------------------------------------|--------------------------------------------|-----------------------------| | | MM/DD/YY | | MM/DD/YY | | | A. REGISTRANT IDENTIFICATION | | | | NAME OF BROKER-DEALER: | | | OFFICIAL USE ONLY | | Hext Capital Partners, LLC | | | FIRM ID. NO. | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | | | 5001 Spring Valley Rd Ste. 850W | | | | | | (No. and Street) | | | | Dallas | Texas | | 75244 | | (City) | (State) | | (Zip Code) | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT | | | | | Greg Hext; (972) 644-7112 | | | | | | | | (Area Code – Telephone No.) | | | B. ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* | | | | | Jennifer
Wray CPA PLLC | | | | | | (Name – if individual, state last, first, middle name) | | | | 800 Bonaventure Way, Suite 168 | Sugar Land | Texas | 77479 | | (Address) | (City) | (State) | (Zip 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 report be covered by the opinion of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis for the exemption. See section 240.17a-5(e)(2).* Potential persons who are to respond to the collection of information SEC 1410 (06-02) contained in this form are not required to respond unless the form displays a currently valid OMB control number. {2}------------------------------------------------ - - - - - - - - - - - - - - - - - - - - - - - - - - - ![](_page_2_Figure_31.jpeg) {3}------------------------------------------------ #### **Hext Capital Partners, LLC** #### CONTENTS Page | REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | 2 | |----------------------------------------------------------------------------------------------------------------------------------------------|-------| | STATEMENT OF FINANCIAL CONDITION | 3 | | STATEMENT OF OPERATIONS | 4 | | STATEMENT OF CASH FLOWS | 5 | | STATEMENT OF CHANGES IN MEMBERS'
EQUITY | 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 Exchanges 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 members of Hext Capital Partners, LLC, #### **Opinion on the Financial Statements** We have audited the accompanying statement of the financial condition of Hext Capital Partners, LLC as of December 31, 2023, the related statements of operations, changes in members' equity, and cash flows for the year ended December 31, 2023, 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 Hext Capital Partners, LLC as of December 31, 2023, and the results of its operations and its cash flows for the year ended December 31, 2023, 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 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 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 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 supplementary information contained in Schedules I, II & III has 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 2019. Sugar Land, Texas March 29, 2024 {5}------------------------------------------------ #### Hext Capital Partners, LLC Statement of Financial Condition December 31, 2023 #### **ASSETS** | Assets: | | |---------------------------------------|--------------| | Cash and cash equivalents | \$
88,375 | | Prepaid expenses | 860 | | Total Assets | 89,235 | | | | | LIABILITIES AND MEMBERS' EQUITY | | | Accounts Payable | 3,966 | | Total Liabilities | 3,966 | | Members' Equity | 85,269 | | | | | Total Liabilities and Members' Equity | \$
89,235 | {6}------------------------------------------------ # Hext Capital Partners, LLC Statement of Operations December 31, 2023 | Revenue -
Fee Income | \$
875,132 | |----------------------------------------------------------------|-----------------------------------| | Expenses: | | | Commission Expenses | 698,738 | | Professional and regulatory fees | 30,665 | | Commissions | 106,104 | | Administrative expenses
Total Expenses
Net Income (Loss) | 13,841
849,347
\$
25,785 | {7}------------------------------------------------ #### Hext Capital Partners, LLC Statement of Cash Flows For the Year Ended December 31, 2023 | Cash flows from operating activities | | |--------------------------------------------------------|--------------| | Net income (loss) | \$
25,785 | | Adjustments to reconcile net income (loss) to net cash | | | provided (used) by operating activities: | | | Changes in current assets and liabilities: | | | Decrease in accounts receivable | - | | Decrease in prepaid expense | - | | Increase in accounts payable | (2,029) | | Increase in deferred revenue | (3,000) | | Allocated Capital | - | | Net cash provided by operating activities | 20,756 | | Cash flows from investing activities | | | Net cash provided (used) by investing activities | \$
-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 | 20,756 | | Cash and cash equivalents at beginning of year | 67,619 | | Cash and cash equivalents at end of year | \$
88,375 | | Supplemental Schedule of Cash Flow Information | | | Cash paid during the year for: | | | Interest | \$
126 | Income Taxes \$ -0- {8}------------------------------------------------ # Hext Capital Partners, LLC Statement of Changes in Members' Equity For the Year Ended December 31, 2023 | | Member's
Equity | | |------------------------------|--------------------|--| | Balances at | | | | December 31, 2022 | \$
59,484 | | | Allocated capital | \$
- | | | Member capital contributions | - | | | Distributions to member | - | | | Net income (loss) | 25,785 | | | Balances at | | | | December 31, 2023 | \$
85,269 | | {9}------------------------------------------------ #### Hext Capital Partners, LLC Notes to Financial Statements December 31, 2023 #### Company Background 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"). ### Note 1 - Summary of Significant Accounting Policies 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 members level rather than at the corporate level for federal income tax purposes. Any potential interest and penalty 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 Members' 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 date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. #### 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, 2023, the Company had net capital of approximately \$84,409 and net capital requirements of \$5,000. The Company's ratio of aggregate indebtedness to net capital was 0.04 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 members at amounts that are determined not to have a detrimental effect on the net capital position at the time of withdrawal. {10}------------------------------------------------ # Hext Capital Partners, LLC Notes to Financial Statements December 31, 2023 #### Note 3 - 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 4 - Related Party Transactions The Company and various entities are under common control. During the year ended December 31, 2023, the company paid \$698,737 in commissions to its Member. #### Note 5 - Revenue Recognition 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 records revenue in accordance with the Financial Accounting Standard Board's ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), as amended. The Company identifies the contracts with customers, identifies performance obligations in the contracts, determines the transaction price, allocates the transaction price to the performance obligations, and recognizes revenue when the Company satisfies a performance obligation. #### Note 6 - Subsequent Events The Company has reviewed all subsequent events through March 29, 2024, the date through which the financial statements are available to be issued. {11}------------------------------------------------ Hext Capital Partners, LLC Notes to Financial Statements December 31, 2023 Supplementary Information Pursuant to Rule 17a-5 of the Securities Exchange Act of 1934 As of December 31, 2023 {12}------------------------------------------------ #### **Schedule I** ### Hext Capital Partners Capital, LLC Computation of Net Capital Under Rule 15c3-1 Of the Securities and Exchange Commission As of December 31, 2023 # **COMPUTATION OF NET CAPITAL** | Total members'
qualified for net capital | \$
85,269 | |------------------------------------------------------------------------------------------|--------------| | Add:
Other deductions or allowable credits: | -0- | | Total capital and allowable subordinated liabilities | 85,269 | | Deductions and/or charges
Non-allowable assets:
Prepaid expenses | 860 | | Net capital before haircuts
on securities positions | 84,409 | | Haircuts on securities (computed, where applicable,
pursuant
to Rule
15c3-1(f)) | -0- | | Net capital | \$
84,409 | | AGGREGATE INDEBTEDNESS | | | Items included in the statement of financial condition: | | | Total aggregate indebtedness | \$
3,966 | {13}------------------------------------------------ # **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, 2023 | # **COMPUTATION OF BASIC NET CAPITAL REQUIREMENT** | Minimum net capital required (6 2/3% of total
aggregate indebtedness) | \$
264 | |-------------------------------------------------------------------------------|--------------| | Minimum dollar net capital requirement of
reporting broker or dealer | \$
5,000 | | Net capital requirement (greater of above two
minimum requirement amounts) | \$
5,000 | | Net capital above
the
required minimum | \$
79,409 | | Ratio: Aggregate indebtedness to net capital | 0.04
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: | \$
84,409
0 | |------------------------------------------------------------------|-------------------| | Net capital per audited report | \$
84,409 | {14}------------------------------------------------ Hext Capital Partners, LLC Schedule II & Ill - Pursuant to SEA Rule 17a-5 Of Securities and Exchange Act of 1934 December 31, 2023 ### SCHEDULE II COMPUTATION FOR DETERMINATION OF RESERVE REQUIREMENTS UNDER RULE 15c3-3 OF THE SECURITIES AND EXCHANGE COMMISSION AS OF DECEMBER 31, 2023 Computation for Determination of Reserve Requirements under Rule 15c3-3 does not applicable to Hext Capital Partners, LLC # SCHEDULE Ill INFORMATION RELATING TO THE POSSESSION OR CONTROL REQUIREMENTS UNDER RULE 15c3-3 OF THE SECURITIES AND EXCHANGE COMMISSION AS OF DECEMBER 31, 2023 Information Relating to the Possession or Control Requirements under Rule 15c3-3 does not applicable to Hext Capital Partners, LLC {15}------------------------------------------------ # **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Members of Hext Capital Partners, LLC We have reviewed management's statements, included in the accompanying Exemption Report, in which 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 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 or indirectly 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 provisions contemplated by Footnote 74 of SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 and related SEC Staff Frequently Asked Questions 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 Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5, and related SEC Staff Frequently Asked Questions. Jennifer Wray CPA PLLC Sugar Land, Texas. March 29, 2024 {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, 2023 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 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 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 carry accounts of or for customers; and (c) did not carry PAB account (as defined in Rule 15c3-3) throughout the most recent fiscal year without exception. Hext Capital Partners, LLC I, Greg 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.