# HANTZ FINANCIAL SERVICES, INC. X-17A-5 (2023-10-23) — Broker-dealer annual report - Company: HANTZ FINANCIAL SERVICES, INC. - Form: X-17A-5 - Filed: 2023-10-23 - Period: 2022-12-31 - Accession: 0001071061-23-000007 - CIK: 1071061 - File #: 8-51291 - Type: Broker-dealer - Material weakness: No - Auditor: Plante & Moran, PLLC - Auditor location: Auburn Hills, MI - Contact: Renee Yaroch - Phone: 2483042855 - Email: renee.yaroch@hantzgroup.com - Website: hantzgroup.com - Signed by: Renee Yaroch (Chief Financial Officer) Original filing: https://www.sec.gov/Archives/edgar/data/1071061/000107106123000007/Public.pdf --- {0}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ANNUAL REPORTS FORM X-17A-S PART Ill FACING PAGE** 0MB APPROVAL 0MB Number: 3235-0123 Expires: Oct. 31, 2023 Estimated average burden hours per response: 12 SEC FILE NUMBER 8-51291 **Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934** FILING FOR THE PERIOD BEGINNING **O 1/01/2022** MM/DD/VY AND ENDING **12/31/2022** MM/DD/VY **A. REGISTRANT IDENTIFICATION** NAME OF FIRM: Hantz Financial Services, Inc (a Whol ly Owned Subsidiary of Hantz Group Inc.) **TYPE OF REGISTRANT (check all applicable boxes): C!l Broker-dealer** □ **Security-based swap dealer** □ **Major security-based swap participant** D Check here if respondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) 26200 American Dr. Fifth Floor (No. and Street) Southfield Ml 48034 (City) {State) (Zip Code) PERSON TO CONTACT WITH REGARD TO THIS FILING Renee Yaroch 248-304-2855 Renee.Yaroch@Hantzgroup.com {Name) (Area Code - Telephone Number) (Email Address) **B. ACCOUNTANT IDENTIFICATION** INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing\* Plante & Moran, PLLC (Name - if individual, state last, first, and middle name) 2601 Cambridge Ct. Suite 500 **Auburn Hills** Ml 48326 (Address) (City) (State) (Zip Code) October 20, 2003 **166 r te of Reg;wafoo w;th PCAOB)Of applkableJ FOR OFFICIAL USE ONLY (PCAOB Reg;stcat;oo Nombec, ;f appl;cable)** \* 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)(l)(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 0MB control number.** **i** {1}------------------------------------------------ #### **OATH OR AFFIRMATION** I, \_R\_en\_ee\_\_Y\_a\_roc\_\_h \_\_\_\_\_\_\_\_\_\_\_\_\_\_ � swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of Hantz Financial Services, I nc (a Wholly Own ed Subsidiary of Hantz Group Inc.) as of **12/31** 2� 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 classified solely as that of a customer. > **MICHELLE BENMAN** Notary Public, Wayne Co., Ml Signature: My Commissjpn Elg)i�Jan- 30, 2026 Acting in O'ti\LllAN Co. Title: ' | | n lichelle Lenman | |--|-------------------| | | | | Signature: | | | |------------|----|--| | Title: | CD | | #### **This filing\*\* contains (check all applicable boxes):** - !!ii (a) Statement of financial condition. - D (b) Notes to consolidated statement of financial condition. - !!ii (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). - !!ii (d) Statement of cash flows. - !!ii (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - D (f) Statement of changes in liabilities subordinated to claims of creditors. - !!ii (g) Notes to consolidated financial statements. - !!ii (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. - D (i) Computation of tangible net worth under 17 CFR 240.18a-2. - D (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - D (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. - D (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.15c3-3. - D (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - D (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. - D (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. - D (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - !!ii (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. - !!ii (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - D (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 report or financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - D (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. - !!ii **(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-le or 17 CFR 240.17a-12, as applicable. - D (y) Report describing any material inadequacies found to exist or 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). D (z) Other:---- ------------------------ -------- *\*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e}{3} or 17 CFR 240.18a-7{d}{2}, as applicable.* {2}------------------------------------------------ ### Hantz Financial Services, Inc. (A Wholly Owned Subsidiary of Hantz Group, Inc.) Year Ended December 31 , 2022 Financial Statements and Supplementary Information {3}------------------------------------------------ | ■
TABLE OF CONTENTS | PAGE | |-------------------------------------------------------------------------------------------------|-------| | Report of Independent Registered Public Accounting Firm | | | Financial Statements for the Year Ended December 31, 2022 | | | Statement of Financial Condition | 2 | | Statement of Income | 3 | | Statement of Changes in Stockholder's Equity | 4 | | Statement of Cash Flows | 5 | | Notes to Financial Statements | 6-9 | | Supplementary Schedule | | | Computation of Net Capital under Rule 15c3-1 of the
Securities and Exchange Commission | 10 | | Report of Independent Registered Public Accounting Firm over Compliance with
SEC Rule 15c3-3 | 11-12 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) #### **Report of Independent Registered Public Accounting Firm** To the Board of Directors and Stockholder Hantz Financial Services, Inc. #### *Opinion on the Financial Statements* We have audited the accompanying statement of financial condition of Hantz Financial Services, Inc. (the "Company") as of December 31, 2022 and the related statements of income, changes in stockholder's equity, and cash flows for the year then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2022 and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. #### *Basis for Opinion* These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company'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 the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial 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. #### *Supplemental Information* The accompanying Computation of Net Capital Under Rule 15c3-1 of the Securities and Exchange Commission has been subjected to audit procedures performed in conjunction with the audit of the Company's financial statements. The supplemental information is the responsibility of the Company'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 Computation of Net Capital Under Rule 15c3-1 of the Securities and Exchange Commission is fairly stated, in all material respects, in relation to the financial statements as a whole. We have served as Hantz Financial Services, lnc.'s auditor since 2014. Auburn Hills, Michigan February 20, 2023 ![](_page_4_Picture_13.jpeg) {5}------------------------------------------------ ### **HANTZ FINANCIAL SERVICES, INC. (a Wholly Owned Subsidiary of Hantz Group, Inc.)** ■ **STATEMENT OF FINANCIAL CONDITION** # **DECEMBER 31, 2022** #### **ASSETS** | Assets | | | |-----------------------------------------------------------|----|---------------| | Cash and cash equivalents | \$ | 16,861,023 | | Accounts receivable for marketing support | | 2,327,604 | | Commissions receivable | | 5,030,075 | | Notes receivable, employees | | 265,642 | | Deposits with clearing organizations | | 75,189 | | Total assets | | 24,559,533 | | LIABILITIES AND STOCKHOLDER'S EQUITY | | | | | | | | Liabilities | | | | Accrued compensation | | 3,820,605 | | Accounts payable and accrued expenses | | 426,279 | | Total liabilities | \$ | 4,246,884 | | Stockholder's equity | | | | Common stock, no par value; 10,020,000 shares authorized, | | | | 1,000 shares issued and outstanding | \$ | 533,121 | | Retained earnings | | 19,779,528 | | Total stockholder's equity | | \$ 20,312,649 | | | | | | Total liabilities and stockholder's equity | | \$ 24,559,533 | {6}------------------------------------------------ **(a Wholly Owned Subsidiary of Hantz Group, Inc.)** # ■ **STATEMENT OF INCOME** **YEAR ENDED DECEMBER 31, 2022** | Revenue | | |----------------------------------------|------------------| | Commissions | \$
46,226,782 | | Advisory fees | 41,197,986 | | Marketing support | 5,420,848 | | Mortgage revenue | 2,795,661 | | Plan processing fees | 2,017,535 | | Financial planning fees | 1,264,182 | | Other | 463,138 | | Total revenue | 99,386,132 | | Expenses | | | Compensation, commissions and benefits | 47,445,261 | | Management fees | 5,277,634 | | Communications and data processing | 4,232,102 | | Occupancy | 3,074,174 | | Office expenses | 882,164 | | Professional fees | 1,294,878 | | Licensing | 570,255 | | Other | 1,618,888 | | Total expenses | 64,395,356 | | Operating income | 34,990,776 | | Interest income | 126,090 | | Net income | 35,116,866 | {7}------------------------------------------------ **(a Wholly Owned Subsidiary of Hantz Group, Inc.)** ### ■ **STATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY YEAR ENDED DECEMBER 31, 2022** | | Common Stock
Shares | Amount | Retained
Earnings | Total | |-----------------------------|------------------------|---------------|----------------------|------------------| | Balances, January 1, 2022 | 1,000 | \$
533,121 | \$ 22,668,347 | \$
23,201,468 | | Dividends paid to Parent | | | (38,005,685) | \$ (38,005,685) | | Net income | | | 35,116,866 | 35,116,866 | | Balances, December 31, 2022 | 1,000 | \$
533,121 | \$ 19,779,528 | \$
20,312,649 | {8}------------------------------------------------ **(a Wholly Owned Subsidiary of Hantz Group, Inc.)** #### **-STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2022** | Cash flows from operating activities | | |----------------------------------------------------------------------------|------------------| | Net income | \$
35,116,866 | | Adjustment to reconcile net income to net cash | | | provided by operating activities | | | Net changes in operating assets and liabilities | | | which (used) provided cash | | | Accounts receivable for marketing support | (310,889) | | Commissions receivable | 85,602 | | Accrued compensation | 218,212 | | Net change in operating lease assets and liabilities | (9,531) | | Deposits with clearing organizations | 19,857 | | Accounts payable and accrued expenses | 76,535 | | Change in due to/from affiliate | (278,652) | | Net cash provided by operating activities | 34,918,000 | | Cash provided by investing activities | | | Issuance of note receivable, employee | | | Collections of note receivable, employee | 58,837 | | Net cash provided by investing activities | 58,837 | | Cash used in financing activities | | | Distributions paid to Parent | (38,005,685) | | Net decrease in cash and cash equivalents | (3,028,848) | | Cash and cash equivalents, January 1, 2022 | 19,889,871 | | Cash and cash equivalents, December 31, 2022 | s
16,861,023 | | Supplemental Disclosure | | | Operating right-of-use assets disposed of | 412,133 | | Lease Liability cancelled | (421,664) | | Net change in operating lease assets disposed of and liabilities cancelled | (9,531) | {9}------------------------------------------------ # ■ **NOTES TO FINANCIAL STATEMENTS** #### **1. BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** #### **Nature of Business** *Hantz Financial Services, Inc.* (the "Company") is a securities broker-dealer that introduces transactions and accounts on a fully disclosed basis and does not carry customer accounts. The Company is registered with the Securities and Exchange Commission ("SEC") and the Financial Industry Regulatory Authority, Inc. ("FINRA"). The Company's revenues are primarily generated through the sale of financial products and investment advisory services, including financial planning and investment portfolio management services. The Company's customers are primarily individuals and small businesses located predominantly in the states of Michigan and Ohio. The Company is also a licensed mortgage broker. The Company is a Michigan Corporation that is a wholly owned subsidiary of *Hantz Group, Inc.* (the "Parent"). #### **Use of Estimates** The preparation of financial statements in conformity with generally accepted accounting principles 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 income and expenses during the reporting year. Actual results could differ from those estimates. Significant estimates include but are not limited to commission receivables and accrued compensation. #### **Cash and Cash Equivalents** Cash and cash equivalents consist of demand deposits in banks. The Company holds deposits in major financial institutions in excess of federally insured limits. Management does not believe the Company is exposed to any significant interest rate or other financial risk as a result of these deposits. #### **Commission and Marketing Support Receivables** Receivables consist primarily of amounts due from comm1ss1ons and marketing support revenue earned from the sale of financial products. All amounts deemed uncollectible are recognized as an expense for doubtful accounts in the year such determination is made. Management did not consider an allowance for doubtful accounts necessary at December 31, 2022. {10}------------------------------------------------ # ■ **NOTES TO FINANCIAL STATEMENTS** #### **Revenue Recognition** #### **Commissions** Commission revenue is the result of sales commissions and fees generated by the purchase and sale of financial products. The Company views these financial transactions as a single performance obligation to the product sponsor. The Company is responsible for the execution of the clients' purchases and sales and maintains relationships with the product sponsors. Commission revenue is reported on a gross basis and is recorded on a trade-date basis. The Company earns two types of commissions (1) sales-based commissions that are generated at the point of sale and (2) trail commissions that are generated over time as earned on traileligible investments. Trail commissions are primarily earned on mutual fund and annuity investments during the time the client owns the investment. Trail commission revenue is not recognized at the time of sale because it is variably constrained due to market volatility and the client's investment holding period. #### **Advisory Fees** The Company is licensed as a Registered Investment Advisor (RIA). Advisory revenue represents fees charged to clients for providing ongoing investment advice and administrative services. Fees are billed in advance to the client, on a monthly basis, based on assets under management. The fees are adjusted accordingly in the following month based on customer contributions and withdrawals. The company also charges a technology fee. #### **Marketing Revenue** Marketing revenue is generated for providing marketing services and sales force education and training. The amount of the marketing fee can be based on a stated percentage of new purchases and/or assets under management. Marketing revenue is recorded over time. This revenue includes variable consideration and is constrained until the date that the fees are determinable. #### **Mortgage Revenue** The Company assists clients in developing a debt strategy for their purchase or refinance of real estate. The Company acts as a mortgage broker. We originate loan applications, we do not hold or service mortgages, they are sold on the secondary market. As a mortgage broker, we earn commissions and fees at the point in time when the mortgage closes. #### **Plan Processing Fees** Financial plan processing revenue is received from an affiliated company for plan processing services which include reviewing the analysis, data inputs and assumptions. Revenue is recorded at the point in time when the service is completed. #### **Financial Planning Fees** The Company provides financial planning services as a Registered Investment Advisor (RIA). We earn a fee for providing advice through a holistic financial planning approach by a team of financial specialists to provide clients with flexibility and control over their financial situation. Financial planning fees are recognized monthly in accordance with the terms of the client agreements. If an annual payment is received in advance, the company has a {11}------------------------------------------------ # ■ **NOTES TO FINANCIAL STATEMENTS** contract asset and liability. This is recorded as an unearned revenue liability and a receivable for employee compensation. The company has no other contract assets or liabilities. #### **Concentrations** The Company's operating philosophy relies extensively, albeit not exclusively, on the use of a limited number of preferred investment and insurance product providers. The Company receives marketing support revenue based on the volume traded through the investment and insurance providers. In 2022, 96% of commission revenue was from six product providers and 93% of marketing support revenue was from four product providers. #### **Income Taxes** The Company is included in the consolidated federal and state income tax returns filed by the Parent. Under the Internal Revenue Code, the parent is treated as an S Corporation and the Company is treated as a qualified subchapter S subsidiary. The Company has evaluated and concluded that there are no significant uncertain tax positions requiring recognition in the Company's financial statements. The Company does not expect the total amount of unrecognized tax benefits ("UTB") (e.g., tax deductions, exclusions, or credits claimed or expected to be claimed) to significantly increase in the next twelve months. The Company does not have any amounts accrued for interest and penalties related to UTBs at December 31, 2022, and it is not aware of any claims for such amounts by federal or state income tax authorities on the Parent company that would require recording an allocation of such on the Company's financial statements. #### **2. RELATED PARTY TRANSACTIONS** Under an expense sharing agreement, the Parent provides accounting, administrative and managerial services to the Company. Amounts charged for these services by the Parent result from an allocation of actual costs based on the percentage of the actual prior year revenue of the Company in relation to the actual prior year revenue generated by other subsidiaries. The cost allocated for management services was \$4,954,632 during 2022. The Company was also allocated \$3,188,592 in additional operating and administrative costs from the Parent. In addition, software utilized for processing securities transactions was developed for the Company by Hantz Technology, L.L.C., in which the Parent is the sole member. Total expense incurred in connection with these technology charges was \$3,009,448 during 2022. The Company also leases office space under various short term operating leases with its Parent who in turn leases these facilities from both related and unrelated third parties. Net short term rental expense on operating leases from related parties was \$2,629,978. The Company received revenue for plan processing services provided to an affiliate. In 2022, the revenue was \$2,017,535 for these services. {12}------------------------------------------------ ■ **NOTES TO FINANCIAL STATEMENTS** #### **3. NET CAPITAL REQUIREMENTS** The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule 15c3-1, which requires the maintenance of minimum net capital in an amount which is the greater of \$100,000 or 6.67% of aggregate indebtedness, which is \$283,126 at December 31, 2022, and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. At December 31, 2022, the Company had net capital of \$15,531,613 which was \$15,248,487 in excess of the required amount of net capital. The Company's ratio of aggregate indebtedness to net capital ratio was 0.27 to 1 as of December 31, 2022. #### **4. EMPLOYEE BENEFIT PLAN** The Company participates in a deferred compensation retirement plan sponsored by the Parent qualified under Section 401 (k) of the Internal Revenue Code. Under this plan, eligible employees are permitted to contribute a portion of gross compensation into the retirement plan up to the maximum determined by the Internal Revenue Code. Matching contributions to the plan are determined annually at the discretion of the Board of Directors. The Company did not make any matching contributions to the plan in 2022. #### **5. CONTINGENCIES** From time to time, the Company is party to various litigation and other claims arising in the normal course of business. Management believes that the ultimate resolution of these matters will not have a material adverse effect on the Company's financial position, results of operations or cash flows. #### **6. SUBSEQUENT EVENTS** The company has evaluated events that occurred subsequent to year-end through February 20, 2023 the date the financial statements were issued, to determine whether events required recognition or disclosure in the 2022 financial statements as required by authoritative guidance. ### ■■■■■ {13}------------------------------------------------ **SUPPLEMENTARY SCHEDULE** {14}------------------------------------------------ **(a Wholly Owned Subsidiary of Hantz Group,** Inc.) | ■
COMPUTATION OF NET CAPITAL UNDER RULE 15c3-1 OF
THE SECURITIES AND EXCHANGE COMMISSION
DECEMBER 31, 2022 | | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------| | Net capital
Total stockholder's equity | \$
20,312,649 | | Deductions
Non-allowable assets
Commissions and marketing support receivables
greater than 30 days
Note receivable, employee
Other assets - Due from affiliate
Deferred income tax asset | \$
4,515,394
265,642 | | Total deductions | 4,781,036 | | Net capital | \$ 15,531,613 | | Aggregate indebtedness
Items included in statement of financial condition
Accrued compensation
Accounts payable, accrued expenses | 3,820,605
\$
426,279 | | Total aggregate indebtedness | s
4,246,884 | | Computation of basic net capital requirement
Minimum dollar net capital requirement | s
283,126 | | Excess net capital | s
15,248,487 | | Net Capital in excess of 120% of minimum net capital | s
15,191,862 | | Ratio of aggregate indebtedness to net capital | 0.27:1 | | Reconciliation with Company's computation (included in Part II of
Form X-17 A-5 as of December 31, 2022)
Net capital, as reported in Company's Part II (unaudited) FOCUS | s
15,531,613 | | Net capital, per above | s 15,531,613 | | | | Note: There were no material differences between this schedule and the company's unaudited FOCUS report filed February 20, 2023 {15}------------------------------------------------ ![](_page_15_Picture_0.jpeg) plantemoran.com #### **Report of Independent Registered Public Accounting Firm** To the Board of Directors and Stockholder Hantz Financial Services, Inc. We have reviewed management's statements, included in the accompanying Exemption Report, in which Hantz Financial Services, Inc. (the "Company") stated that the Company claimed an exemption under paragraph (k) of 17 C.F.R. § 240. 15c3-3: (k)(2)(ii) (the "exemption provision") and the Company stated that the Company met the identified exemption provision throughout the most recent fiscal year without exception. The Company also stated that it is filing the Exemption Report because the Company's other business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. paragraph 240.17a-5 are limited to effecting securities transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company 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 Rule 15c2-4 and/or funds received and promptly transmitted for effecting transactions via subscription on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company); (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. Management is responsible for compliance with the exemption provisions, 17 C.F.R. § 240.15c3-3, 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 the Company's compliance with 17 C.F.R. § 240.15c3-3. 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 provisions set forth in paragraph (k)(2)(ii) of Rule 15c3-3 under the Securities and Exchange Act of 1934 and pursuant to Footnote 7 4 of SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5. Auburn Hills, Michigan February 20, 2023 ![](_page_15_Picture_10.jpeg) {16}------------------------------------------------ #### **HANTZFINANCIAL®** ![](_page_16_Picture_1.jpeg) HANTZ FINANCIAL SERVICES. INC. **26200 AMERICAN DRIVE SOUTHFIELD. Ml 48034** #### HANTZ FINANCIAL SERVICES, INC. EXEMPTION REPORT February 20, 2023 Hantz Financial Services, Inc (the "Company") is a registered broker-dealer subject to Rule 17a-5 promulgated by the Securities and Exchange Commission (17 C.F.R. paragraph 240.17a-5, "Reports to be made by certain brokers and dealers"). This Exemption Report was prepared as required by 17 C.F.R. paragraph 240.17a-S(d)(l) and (4). To the best of its knowledge and belief, the Company states the following: - 1. The Company claimed an exemption from 17 C.F.R. paragraph 240.15c3-3 under the following provisions of 17 C.F.R. paragraph 240.15c3-3 (k){2){ii). - 2. The Company met the identified exemption provisions in 17 C.F.R. paragraph 240.15c3- 3(k)(2)(ii) throughout the most recent fiscal year without exception. - 3. The Company is also filing this Exemption Report because the Company's other business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. paragraph 240.17a-5 are limited to effecting securities transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company 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 Rule 15c2-4 and/or funds received and promptly transmitted for effecting transactions via subscription on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company); (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. Hantz Financial Services, Inc. I, Renee Yaroch, affirm that, to my best knowledge and belief, this Exemption Report is true and correct. Renee Yaroch, inancial Officer Date Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.