# FOUR POINTS CAPITAL PARTNERS LLC X-17A-5 (2023-04-21) — Broker-dealer annual report

- Company: FOUR POINTS CAPITAL PARTNERS LLC
- Form: X-17A-5
- Filed: 2023-04-21
- Period: 2022-12-31
- Accession: 0001038158-23-000002
- CIK: 1038158
- File #: 8-50162
- Type: Broker-dealer
- Material weakness: No
- Auditor: Ohab & Company, P.A.
- Auditor location: Maitland, FL
- Contact: John Clarke Gray
- Phone: 9172381263
- Email: clarke@taylorgrayllc.com
- Website: taylorgrayllc.com
- Signed by: John Clarke Gray (CFO)

Original filing: https://www.sec.gov/Archives/edgar/data/1038158/000103815823000002/fourpsofc22-1.pdf

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# **UNITED STATES SECURITIES AND EXCHANGE COMMISSION**

PUBLIC

**Washington,** D.C. **20549** 

0MB APPROVAL 0MB Number: 3235-0123 Expires: Oct. 31, 2023 Estimated average burden hours per response: 12

# **ANNUAL REPORTS FORM X-17A-5**

| ANNUAL REPORTS                                                                                                                      |                                                            |                                         |                          |          | SEC FILE NUMBER                           |  |
|-------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|-----------------------------------------|--------------------------|----------|-------------------------------------------|--|
| FORM X-17A-5                                                                                                                        |                                                            |                                         |                          | 8-50162  |                                           |  |
|                                                                                                                                     | PART Ill                                                   |                                         |                          |          |                                           |  |
|                                                                                                                                     | 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 _0_1_/0_1_/_2_2                                                                                     | ___<br>AND ENDING _12_/_3_1_/2_2<br>MM/DD/VY               |                                         | ___<br>_                 |          |                                           |  |
|                                                                                                                                     |                                                            |                                         |                          | MM/DD/VY |                                           |  |
|                                                                                                                                     | A. REGISTRANT IDENTIFICATION                               |                                         |                          |          |                                           |  |
| __<br>NAME oF FIRM:                                                                                                                 | F_o_u_r_P_o_i_nt_s_C_a_p_i_ta_l _P_a_rt_n_e_rs_L_L_C       |                                         | ______                   |          | _                                         |  |
| TYPE OF REGISTRANT (check all applicable boxes):<br>0 Broker-dealer<br>□ Check here If respondent ls also an OTC derivatives dealer | □ Security-based swap dealer                               | D Major security-based swap participant |                          |          |                                           |  |
| ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.)                                                                 |                                                            |                                         |                          |          |                                           |  |
| 55A E. Ridgewood Ave.                                                                                                               |                                                            |                                         |                          |          |                                           |  |
|                                                                                                                                     | (No. and Street)                                           |                                         |                          |          |                                           |  |
| Ridgewood,                                                                                                                          |                                                            | N.J.                                    |                          |          | 07450                                     |  |
| (City)                                                                                                                              |                                                            | (State)                                 | (Zip Code)               |          |                                           |  |
| PERSON TO CONTACT WITH REGARD TO THIS FILING                                                                                        |                                                            |                                         |                          |          |                                           |  |
| J. Clarke Gray                                                                                                                      | 917-238-1263                                               |                                         | clarke@taylorgrayllc.com |          |                                           |  |
| (Name)                                                                                                                              | (Area Code-Telephone Number)                               |                                         | (Email Address)          |          |                                           |  |
|                                                                                                                                     | B. ACCOUNTANT IDENTIFICATION                               |                                         |                          |          |                                           |  |
| INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*                                                           |                                                            |                                         |                          |          |                                           |  |
| Ohab & Company, P.A.                                                                                                                |                                                            |                                         |                          |          |                                           |  |
|                                                                                                                                     | (Name - if Individual, state last, first, and middle name) |                                         |                          |          |                                           |  |
| 100 E. Sybelia Avenue                                                                                                               |                                                            | Maitland                                |                          | FL       | 32751                                     |  |
| (Address)<br>07/28/04                                                                                                               | (City)                                                     |                                         | (State)                  |          | (Zip Code)<br>1839                        |  |
| Ir                                                                                                                                  |                                                            |                                         |                          |          | (PCAOB Rogi,tration Numbe,, If appl<abk,J |  |
| of Regotration wOh PCAOBJI• applkabk,J                                                                                              | FOR OFFICIAL USE ONLY                                      |                                         |                          |          | I                                         |  |

• Claims for exemption from the requirement that the annual reports be covered by the 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-S(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 valld 0MB control number.

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#### OATH OR AFFIRMATION

| John Clarke Gray                                                           | swear (or affirm) that, to the best of my knowledge and belief, the                      |       |
|----------------------------------------------------------------------------|------------------------------------------------------------------------------------------|-------|
| financial report pertaining to the firm of Four Points Capital Parmers LLC |                                                                                          | 85 Ch |
| 12/31 --                                                                   | 2022 . 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 proprietary interest in any account classfied solely as that of a customer.

![](_page_1_Figure_3.jpeg)

Signature: Title: C. Cu

Notary Public

#### This filing of contains (check all applicable boxes):

- O (a) Statement of financial condition.
- [ (b) Notes to consolidated statement of financial condition.
- O (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 fows
- [] {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.
- [ ] Computation of net capite! under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1 as applicable.
- [1] Computation of tan. 15th e net worth under 17 CFR 240.180-2.
- [] Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.1563-3.
- [ {{} Computation for detarmination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 200.1503-3 or Exhibit A to 17 CFR 240.232-4, 2s applicable.
- [] Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3.
- [ (m) Information relat! : ! ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
- [n) Information relating to possession or control requirements for security-based swap customers under 17 CR 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable.
- O (o) Reconcillations, including applanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-1, 17 CFR 240.188-2, or 17 CFR 240.188-2, 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 date 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 spplicable.
- [ [r) Compliance report in accordance with 17 CFR 240.172-5 or 17 CFR 240.188-7, as applicable.
- O {s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18ar7, as applicable.
- [t] Independent public accountant's report based on an examination of the statement of financial condition.
- O ful Independent public account based on an examination of the financial report or financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable.
- O (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17e-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 240.15c3-1e or 17 CFR 240.17e-12, as applicable.
- [] {y) Report describing sny material hadequacies 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).
- [ {z} Other:
- a request confident : : sament of certain portlons of this filing, see 17 CFR 240.170-5(0), as 17 CFR 240.180-7(d)(2), os applicable.

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STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2022 (Filed Pursuant to Rule 17a-5 Under the Securities Exchange Act of 1934) PUBLIC DOCUMENT

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# CONTENTS

| Report of Independent Registered Public Accounting Firm  I |  |  |  |  |
|------------------------------------------------------------|--|--|--|--|
| Financial Statement                                        |  |  |  |  |
| Statement of Financial Condition  2                        |  |  |  |  |
| Notes to Financial Statement  3-8                          |  |  |  |  |

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![](_page_4_Picture_0.jpeg)

100 E. Sybelia Ave. Suite 130 Maitland. FI 32751

Certified Public Accountants Email: pam a ohabco.com

lelephone 407-740-7311 Fax 407-740-6441

#### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Member's of Four Points Capital Partners, LLC

#### Opinion on the Financial Statement

We have audited the accompanying statement of financial condition of Four Points Capital Partners, LLC as of December 31, 2022, and the related notes (collectively referred to as the "financial statement"). In our opinion, the financial statement presents fairly, in all material respects, the financial position of Four Points Capital Partners, LLC as of December 31, 2022 in conformity with accounting principles generally accepted in the United States of America.

#### Basis for Opinion

This financial statement is the responsibility of Four Points Capital Partners, LLC's management. Our responsibility is to express an opinion on Four Points Capital Partners, LLC'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 Four Points 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 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 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.

We have served as Four Points Capital Partners, LLC's auditor since 2019.

Maitland, Florida

April 20, 2023

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## **STATEMENT OF FINANCIAL CONDITION**

| Assets                                |               |
|---------------------------------------|---------------|
| Cash and cash equivalents             | \$<br>110,222 |
| Due from clearing broker              | 50,112        |
| Commissions receivable                | 158,280       |
| Other assets                          | 11,000        |
| Total Assets                          | \$<br>329,614 |
| Liabilities and Member's Equity       |               |
| Liabilities                           |               |
| Accounts payable                      | \$<br>164,857 |
| Accrued expenses                      | 14,824        |
| Total Liabilities                     | \$<br>179,681 |
| Member's Equity                       | 149,933       |
| Total Liabilities and Member's Equity | \$<br>329,614 |

## **DECEMBER 31, 2022**

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# **NOTES TO FINANCIAL STATEMENT**

# **DECEMBER 31, 2022**

# **NOTE 1** - **NATURE OF BUSINESS**

Four Points Capital Partners, LLC (the "Company") was chartered by the State of Texas as a Limited Liability Company ("LLC") in July 23, 1997. The purpose of the corporation is to carry on a securities brokerage business. On May 20, 2013 the Company was sold by its former owner ATB Holdings Company LLC ("A TB") to 5M Holdings LLC ("5M"), a Delaware limited liability company. As of that date 100% of the membership interests were transferred from A TB to 5M and continue to be held by 5M.

The Company is a registered broker-dealer under the Securities Exchange Act of 1934 with the Securities and Exchange Commission (the "SEC"). The Company is also a member of the Financial Industry Regulatory Authority ("FINRA") and the Securities Investor Protection Corp ("SIPC"). It operates out ofits home office in New York State. The Company is licensed to conduct business as a retail securities broker-dealer.

# **NOTE 2** - **SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES**

### *USE OF ESTIMATES IN THE FINANCIAL STATEMENTS*

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 these estimates.

## *RECEIVABLE FROM CLIENTS*

Accounts receivable is recorded at amounts billed and presented on the statement of financial condition net of allowance for doubtful accounts, if applicable. The allowance is determined by a variety of factors, including the age of the receivables, current economic condition, historical losses and other information management obtains regarding the financial condition of its clients. The policy for determining the past due status of receivables is based on how recently payments have been received. Receivables are charged off when they are deemed uncollectable, which may arise when the client is deemed unable to pay the amount owed to the Company. At December 31, 2022, the Company determined that an allowance for doubtful accounts was not required.

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# **NOTES TO FINANCIAL STATEMENT**

# **DECEMBER 31, 2022**

# **NOTE 2- SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES (CONTINUED)**

#### *CASH AND CASH EQUIVALENTS*

The Company considers all highly liquid temporary cash investments with an original maturity of three months or Jess when purchased to be cash equivalents. At December 31, 2022, the Company had no cash equivalents.

### *INCOME TAXES*

The Company is a single-member limited liability company. The Company is considered to be a disregarded entity for tax reporting purposes and is not subject to federal and state income taxes and does not file income tax returns in any jurisdiction. All items of taxable income or expense are reported on the member's tax return. The Company may be subject to New York City Unincorporated Business Tax ("NYCUBT") however, the member of the Parent also reports any income derived from New York City source income that may be subject to NYCUBT on his personal tax return.

The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases, and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period enacted. A valuation allowance is provided when it is more likely than not that a portion or all of a deferred tax asset will not be realized. As of December 31, 2022 there were no deferred taxes or allowances.

#### *COMPENSATED ABSENCES*

Employees of the Company are entitled to paid vacations, paid sick days and personal days off depending on job classification, length of service and other factors. It is impracticable to estimate the amount of compensation for future absences, and, accordingly, no liability has been recorded in the accompanying financial statements. The Company's policy is to recognize the costs of compensated absences when actually paid to employees.

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# **NOTES TO FINANCIAL STATEMENT**

### **DECEMBER 31, 2022**

#### **NOTE 3** - **FAIR VALUE**

The Company defines fair value as the price at which an asset would sell for or an amount paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price). Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or parameters are not available, valuation models are applied. These valuation techniques involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or the market on which they are primarily traded, and the instruments' complexity. Assets and liabilities recorded at fair value in the statement of financial condition are categorized based upon the level of judgment associated with the inputs used to measure their fair value.

- Level 1 Inputs use quoted prices in active markets for identical assets or liabilities that the Company has the ability to access.
- Level 2 Inputs use other inputs that are observable, either directly or indirectly. These inputs include quoted prices for similar assets and liabilities in active markets as well as other inputs such as interest rates and yield curves that are observable at commonly quoted intervals.
- Level 3 Inputs are unobservable inputs, including inputs that are available in situations where there is little, if any, market activity for the related asset or liability.

Certain financial instruments are carried at cost on the balance sheet, which approximates fair value due to their short-term, highly liquid nature. These instruments include cash, accrued expenses and other liabilities, which have been classified as Level 1.

#### **NOTE 4** - **CONCENTRATIONS AND CREDIT RISK**

The Company maintains all of its cash in a financial institution, which is insured by the Federal Deposit Insurance Corporation ("FDIC"). At times, cash may be uninsured, or in deposit accounts which exceed the FDIC insurance limit. The Company has not experienced any losses in such accounts and believes it is not subject to any significant credit risk.

The Company will engage in various investment and brokerage activities on which counterparties primarily include broker-dealers, banks, and other financial institutions. In the event counterparties do not fulfill their obligations, the Company may be exposed to risk. The risk of default depends on the creditworthiness of the counterparty or issuer

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# **NOTES TO FINANCIAL STATEMENT**

# **DECEMBER 31, 2022**

### **NOTE 4-CONCENTRATIONSAND CREDIT RISK(CONTINUED)**

of instrument. It is the Company's policy to review the credit standing of each counterparty as necessary.

## **NOTE 5-DUE FROM CLEARING BROKER**

The Company has a clearing agreement with a clearing broker, which will provide the clearing and depository operations for the Company's security transactions. Pursuant to the Clearing agreement, the Company is obligated to maintain a deposit of\$50,l 12. This deposit is included in the amounts due from clearing broker in the statement of financial condition.

The Company has agreed to indemnify its clearing broker for losses that the clearing broker may sustain from the customer accounts introduced by the Company.

### **NOTE 6** - **NET CAPITAL REQUIREMENTS**

The Company is subject to the SEC Uniform Net Capital Rule ("SEC Rule 1 Sc3-1 "), under which the Company is required to maintain a minimum net capital, as defined, of the greater of \$50,000 or one-fifteenth of aggregate indebtedness and requires that the ratio of aggregate indebtedness to net capital, as defined, shall not exceed 15 to 1. At December 31, 2022, the Company had net capital of \$138,933, which exceeded required net capital by \$88,933, and a total aggregate indebtedness of \$179,681. The Company's aggregate indebtedness to net capital ratio was 1.29 to 1 at December 31, 2022.

The Company qualifies under the exemptive provisions of Rule 15c3-3 as the Company does not carry security accounts for customers or perform custodial functions related to customer securities.

#### **NOTE 7** - **INCOME TAXES**

The Company evaluates its uncertain tax positions under the provisions of ASC 740 "Income Taxes". ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likelythan-not to be sustained upon examination by taxing authorities. Differences between tax positions taken or expected to be taken in a tax return and the benefit recognized and measured pursuant to the interpretation are referred to as "unrecognized benefits". A liability is recognized ( or amount of net operating loss carry forward or amount of tax refundable is reduced) for an unrecognized tax benefit because it represents an enterprise's potential future obligation to the taxing authority for a tax position that was not recognized as a result of

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# **NOTES TO FINANCIAL STATEMENT**

## **DECEMBER 31, 2022**

### **NOTE 7** - **INCOME T AXES(CONTINUED)**

applying the provisions of ASC 7 40. As of December 31, 2022, no liability for unrecognized tax benefits was required to be recorded.

In accordance with ASC 740, interest costs related to unrecognized tax benefits are required to be calculated (if applicable) and would be classified as "interest expense, net'' in the consolidated statements of operations. Penalties would be recognized as a component of "general and administrative expenses". As of December 31, 2022, no interest or penalties were required to be recorded.

The Company is no longer subject to local income tax examinations by tax authorities for years prior to 2019.

# **NOTE 8- COMMITMENTS AND CONTINGENCIES**

The nature of the Company's business subjects it to various claims, regulatory examinations, and other proceedings in the ordinary course of business. The ultimate outcome of any such action against the Company could have an adverse impact on the financial condition, results of operations, or cash flows of the Company.

The Company is the subject of one claim involving a sales representative who is claiming that the Company did not pay him all his commissions due him .. The claim is for \$168,000 in actual and compensatory damages. The Company has responded and intends to rigorously defend itself. At this time it is not possible to determine any outcome as such the Company has not accrued for this.

See Note 10-Subsequent Events regarding a claim that was made after December 31, 2022.

# **NOTE 9- LEASES**

The Company leases space on a month-to- month basis at an average monthly cost of \$4,389. In February of 2016 the FASB issued ASU 2016-02, Leases - (Topic 842). ASU 2016-02 requires the recognition of lease assets and lease liabilities on the balance sheet to the right and obligations create by lease agreements, including for those leases classified under previous GAAP, along with the disclosure of key information about leasing arrangements. Since the term of the lease is less than a year the Company has elected not to apply the recognition requirements of Topic 842 relating to its office lease and instead has elected to recognize the lease payments as lease cost on a straight-line basis over the lease term.

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# **NOTES TO FINANCIAL STATEMENT**

#### **DECEMBER 31, 2022**

#### **NOTE 10-SUBSEQUENT EVENTS**

Management has evaluated the Company's events and transactions through the date the financial statements were available to be issued. The Company has received a claim from a former client in the amount of \$316,769. The claim alleges unsuitability, excessive trading and failure to follow instructions. The Company believes the case is without merit and plans to defend itself vigorously. Other than this claim, the Company has determined that no subsequent events or transactions occurred during that period requiring recognition or disclosure.


Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.