# SMITH CAPITAL MARKETS, LLC. X-17A-5 (2025-03-21) — Broker-dealer annual report - Company: SMITH CAPITAL MARKETS, LLC. - Form: X-17A-5 - Filed: 2025-03-21 - Period: 2024-12-31 - Accession: 0001175643-25-000001 - CIK: 1175643 - File #: 8-65408 - Type: Broker-dealer - Material weakness: No - Auditor: Sanville & Company, LLC - Auditor location: Dallas, TX - Contact: Donald Sterling - Phone: 214-226-7507 - Email: d.sterling@sbcglobal.net - Signed by: Stephen B. Smith (Managing Member) Original filing: https://www.sec.gov/Archives/edgar/data/1175643/000117564325000001/scmaudit25pub.pdf --- {0}------------------------------------------------ #### REPORT PURSUANT TO RULE 17a-5(d) #### YEAR ENDED DECEMBER31, 2024 The report is deemed CONFIDENTIAL in accordance with Rule l7a-5(e)(3) under the Securities Exchange Act of 1934. A statement of financial condition has been filed with the Securities and Exchange Commission simultaneously herewith as a PUBLIC DOCUMENT. {1}------------------------------------------------ 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: Nov. 30, 2026 | | | Estimated average burden | | | hours per response: | 12 | | | | ## SEC FILE NUMBER 8-65408 | Required Pursuant to
Information | | FACING PAGE
Rules 17a-5, 17a-12, and 18a-7 under | the | | Securities Exchange Act of
1934 | | |--------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------|-----------------------------------------------------|------------|--------------------------------|------------------------------------|--| | | | | | | 12/31/2024 | | | FILING FOR THE PERIOD BEGINNING | | MM/DD/YY | AND ENDING | | MM/DD/YY | | | | A. | REGISTRANT IDENTIFICATION | | | | | | Smith
NAME OF FIRM: | Capital | Markets,
LLC | | | | | | TYPE OF REGlSTRANT (check
all
[I
Broker-dealer
El
I]
Check here if
respondent is also an OTC derivatives dealer | applicable
swap
Security-based | boxes):
O
dealer | Major | security-based | participant
swap | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not | | use a P.O. box no.) | | | | | | Douglas
Ave,
8333 | Suite | 1450 | | | | | | | | (No. and Street) | | | | | | Dallas | | TX | | | 75225 | | | (City) | | (State) | | | (Zip Code) | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | | Sterling
Donald | | 214-226-7507 | | d.sterling@sbcglobal.net | | | | (Name) | | (Area Code -Telephone Number) | | (Email Address) | | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose | | reports
contained
are | in this | filing* | | | | Sanville
Company,
& | LLC | | | | | | | | (Name -if | individual, state last, first, and middle name) | | | | | | Saint
325
North
Paul
St. | Suite
3100 | Dallas, | | TX | 75201 | | | (Address) | | (City) | | (State) | (Zip Code) | | | 09/18/2003 | | | 169 | | | | | (Date of Registration with PCAOB)(if applicable) | | FOR OFFICIAL USE ONLY | | (PCAOB Registration Number, if | applicable) | | | | | | | | | | \* 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-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. {2}------------------------------------------------ #### OATH OR AFFIRMATION | Stephen B. Smith , swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of Smith Capital Markets, LLC , as of 12/31 , 2024 , is true and correct. l 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. ) ALAINA MARTINEZ e'°'= Notary Public, State of Texas f" \\1111// so.."' ¢'2 F~\*\*'<\$2 .. » ='A=... Comm. Expires 01~06-2028 »<5\*'"` I/111\\\ Novary ID 132302122 ) I r | Signature: c \` Title: / \ 4. #### This filing\*\* contains (check all applicable boxes): - L: (a) Statement of financial condition. - rr1 L... (b) Notes to consolidated statement of financial condition. - 1:l comprehensive income (as defined in § 210.1-02 of Regulation S-X). (c) Statement of income (loss) or, if there is other comprehensive income in the period(s) presented, a statement of - El (d) Statement of cash flows. - El (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - O (f) Statement of changes in liabilities subordinated to claims of creditors. - [1 (g) Notes to consolidated financial statements. - O (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. - I] (i) Computation of tangible net worth under 17 CFR 240.18a-2. - [I (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - [I (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. - O (I) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. - O (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - Cl (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. - [I (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. - I] (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - E (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. - [I (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - [I (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - (t) Independent public accountant's report based on an examination of the statement of financial condition. - E] (u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240.173-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - I] (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.173-5 or 17 CFR 240.183-7, as applicable. - [I (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. - la (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-1e or 17 CFR 240.17a-12, as applicable. - II] (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). - [I (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. {3}------------------------------------------------ ## TABLE OF CONTENTS | | (s)
Page | |-----------------------------------------------------------------------|-------------| | ofIndependent
public
Accounting
Firm
Report
Registered | 3 | | ofFinancial
Condition
Statement | 4 | | to
Financial
Notes
Statements | 5-8 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) #### Report of Independent Registered Public Accounting Firm To the Member and Those Charged With Governance of Smith Capital Markets, LLC #### Opinion on the Financial Statements We have audited the accompanying statement of financial condition of Smith Capital Markets, LLC (the Company) as of December 31, 2024, the related statements of operations, changes in member's equity, and cash flows for the year then ended, and the related notes to the financial statements (collectively, 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, 2024, 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 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. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. 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 supplementary information contained in The Schedule I, Computation of Net Capital Under SEC Rule 15c3-1, Schedule II, Computation for Determination of Reserve Requirements Under Rule SEC 15c3-3 and Schedule ill, Information Relating to the Possession or Control Requirements Under SEC Rule 15c3-3 have 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 > 325 North Saint Paul Street Suite 3100 Dallas, Texas 75201 214.'738. 1998 {5}------------------------------------------------ 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 information contained in the Schedule I, Computation of Net Capital Under SEC Rule 15c3- 1, Schedule II, Computation for Determination of Reserve Requirements Under SEC Rule 15c3-3 and Schedule ill, information Relating to the Possession or Control Requirements Under SEC Rule 15c3-3 are fairly stated, in all material respects, in relation to the financial statements as a whole. Smwééa. ;'( @°\*'v°""v~ //K' We have sewed as the Company's auditor since 2023. Dallas, Texas March 12, 2025 {6}------------------------------------------------ ### STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2024 #### ASSETS | equivalents
(Note
and
Cash
cash
1)
from
clearing
brokers
Due
and
others | \$ | 36,843
8,757 | |----------------------------------------------------------------------------------------------------------|----|-----------------| | Other
assets | | 367 | | Total
assets | s | 45,967 | | LIABILITIES
EQUITY
AND
MEMBER'S | | | | LIABILITIES: | | | | Accounts
payable | s | 4,547 | | liabilities
Total | | 4,547 | | COMMITMENTS
AND
CONTINGENCIES
(Notes
4
5)
and | | | | EQUITY
MEMBER'S
(Note
2) | | | | Additional
in
Capital
Paid | | 210,000 | | Retained
Earnings | | (168,580) | | Total
member's
equity | | 41,420 | | liabilities
Total
and
equity
member's | \$ | 45,967 | The accompanying notes are an integral part ofthis statement. 5 {7}------------------------------------------------ ## NOTES TO FINANCIAL STATEMENTS # NOTE] - ORGANIZATIONAND SUMMARY OFSIGNIFICANTACCOUNTING POLICIES ### Organization and Business Smith Capital Markets, LLC (the "Company") is a corporation incorporated on June 8, 2001 as Greenwich Prime Trading Group, LLC in the State of Connecticut and converted to a Texas LLC on November 5, 2018. The Company is registered with the Securities and Exchange Commission ("SEC") and is a member ofthe Financial Industry Regulatory Authority ("FINRA"). The Company operates as a broker-dealer in securities. All customers' securities, funds and accounts are processed and carried by correspondent broker-dealers. #### ClearingAgreements The Company, under Rule l5c3-3(k)(2)(ii), is exempt from the reserve and possession or control requirements of Rule l5c3-3 of the Securities and Exchange Commission. The Company does not cany or clear customer accounts. Accordingly, all customer transactions are executed and cleared on behalfof the Company by its clearing broker on a fully disclosed basis. The Company's agreement with its clearing broker provide that as a clearing broker, that firm will make and keep such records of the transactions effected and cleared in the customer accounts as are customarily made and kept by a clearing broker pursuant to the requirements of Rules 17a-3 and l 7a-4 of the Securities and Exchange Act of 1934, as amended (the "Act"). It also performs all services customarily incident thereto, including the preparation and distribution ofcustomers' confirmations and statements and maintenance margin requirements under the Act and the rules ofthe Self-Regulatory Organizations ofwhich the Company is a member. #### Cash and Cash Equivalents For purposes of the statement of cash flows, the Company considers all highly liquid instruments purchased with an original maturity ofthree months or less to be cash equivalents. #### Equipment and Leasehold Improvements Equipment and leasehold improvements are stated at cost. The Company provides for depreciation on these assets on the straight-line basis over the estimated useful lives. #### Revenue Recognition The Company records commission revenue and related expenses on a trade date basis. In connection with the Company's accounts receivable, amounts considered uncollectable or doubtful of collection are written off and charged against income when such determinations are made. {8}------------------------------------------------ ### NOTES TO FINANCIAL STATEMENTS (continued) # NOTE] - ORGANIZATIONAND SUMMARYOFSIGNIFICANTACCOUNTING POLICIES ## Basis ofAccounting, Trading and Valuation ofSeeurities The Company values its securities in accordance with Accounting Standards Codification 820 - Fair Value Measurements ("ASC 820"). Under ASC 820, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the "exit price") in an orderly transaction between market participants at the measurement date. In determining fair value, the Company uses various valuation approaches. ASC 820 establishes a fair value hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent ofthe Company. Unobservable inputs reflect the Company's assumption about the inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The fair value hierarchy is categorized into three levels based on the inputs as follows: Level 1 - Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Valuation adjustments are not applied to Level l securities. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these securities does not entail a significant degree of judgment. Level 2 - Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The availability of valuation techniques and observable inputs can vary from security to security and is affected by a wide variety of factors, including the type of security, whether the security is new and not yet established in the marketplace, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Those estimated values do not necessarily represent the amounts that may be ultimately realized due to the occurrence offuture circumstances that cannot be reasonably determined. Because ofthe inherent uncertainty of valuation, those estimated values may be materially higher or lower than the values that would have been used had a ready market for the securities existed. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for securities categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels ofthe fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined by the lowest level input that is significant to the fair value measurement. {9}------------------------------------------------ ## NOTES TO FINANCIAL STATEMENTS (continued) # NOTE] - ORGANIZATIONAND SUMMARY OFSIGNIFICANTACCOUNTING POLICIES # Basis ofAccouniing, Trading and Valuation ofSecurities (concluded) Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, the Company's own assumptions are set to reflect those that market participants would use in pricing the asset or liability at the measurement date. The Company uses prices and inputs that are current as of the measurement date, including during periods of market dislocation. In periods of market dislocation, the observability of prices and inputs may be reduced for many securities. This condition could cause a security to be reclassified to a lower level within the fair value hierarchy. The Company does not hold any securities as of December 31 , 2024. ### Use ofEstimates The preparation offinancial statements in conformity with accounting principles generally accepted in the United States ofAmerica 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. ### NOTE2- NET CAPITAL REQUIREMENTS Pursuant to the net capital provisions of Rule 15c3-1 ofthe Securities Exchange Act of 1934, the Company is required to maintain a minimum net capital, as defined under such provisions. At December 31, 2024, the Company had net capital and net capital requirements of \$41,053 and \$5,000, respectively. The Company's net capital ratio (aggregate indebtedness to net capital) was .11 to 1. According to Rule 15c3- 1, the Company's net capital ratio shall not exceed 15 to 1. ### NOTE3- INCOME TAXES Smith Capital Markets, LLC is wholly owned by Quahadi Holdings, LLC which is wholly owned by Stephen Smith. Earnings ofboth entities flow thru to Stephen Smith where the tax will be paid. {10}------------------------------------------------ ## NOTES TO FINANCIAL STATEMENTS ## NOTE4- COMMITMENTSAND RELATED PARTY TRANSACTIONS The Company leases office space from a related third party on a month to month basis. During the year ended December 31, 2024, rental payments were \$27,274. ### NOTE5- FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEETRISKS AND CONTINGENCIES In the normal course of business, the Company's activities through its clearing broker involve the execution, settlement and financing of various customer securities transactions. These activities may expose the Company to off-balance sheet risk. In the event a customer fails to satisfy its obligations, the Company may be required to purchase or sell financial instruments at prevailing market prices in order to fulfill the customer's obligations. In addition, the Company bears the risk of financial failure by its clearing broker. Ifthe clearing broker should cease doing business, the Company's receivable and deposit from this clearing broker could be subject to forfeiture. The Company also maintains its cash balance in a financial institution, which at times may exceed federally insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk. The Company's financial instruments, including cash and cash equivalents, due from clearing brokers and others, other assets, and accounts payable are carried at amounts which approximate fair value. Securities owned are valued as described in Note l. ### NOTE 6- SUBSEQUENTEVENTS The Company has performed an evaluation of subsequent events through the date the financial statements were issued. The evaluation did not result in any subsequent events that required disclosures and/or adjustments. ### NOTE 7- SEGMENTREPORTING The Accounting Standards Update (ASU) 2023-07 issued by the Financial Accounting Standards Board (FASB) introduced enhancements to segment reporting requirements for public entities, including brokerdealers. The update aimed to improve the transparency and usefulness offinancial disclosures for investors and other stakeholders. ASU 2023-07 disclosure requirements are effective for fiscal years starting after December 15, 2024. The chief operating decision maker is the President of the Company and determined that no additional disclosures are required as the Company has only one reportable segment. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.