# SMITH CAPITAL MARKETS, LLC. X-17A-5 (2026-03-30) — Broker-dealer annual report - Company: SMITH CAPITAL MARKETS, LLC. - Form: X-17A-5 - Filed: 2026-03-30 - Period: 2025-12-31 - Accession: 0001175643-26-000001 - CIK: 1175643 - File #: 8-65408 - Type: Broker-dealer - Material weakness: No - Auditor: Sanville & Company, LLC - Auditor location: Dallas, TX - Contact: Don Sterling - Phone: 214-226-7507 - Email: d.sterling@sbcglobal.netq - Website: sbcglobal.netq - Signed by: Stephen B. Smith (President) Original filing: https://www.sec.gov/Archives/edgar/data/1175643/000117564326000001/25auditscmpub.pdf --- {0}------------------------------------------------ ### REPORT PURSUANT TO RULE 17a-5(d) ### YEAR ENDED DECEMBER 31, 2025 The report is deemed CONFIDENTIAL in accordance with Rule 17a-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 ccieeuaaon Washington, D.C. 20549 Estimated average burden OMB APPROVAL ### ANNUAL REPORTS SEC FILE NUMBER FORM X-17A-5 PART Ill | hours per response: | 12 | |---------------------|----| | | | ### 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 01/01/2025 AND ENDING 12/31/2025 MM/DD/YY MM/0D/YY A. REGISTRANT IDENTIFICATION NAME OF Firm: 2Mmith Capital Markets, LLC TYPE OF REGISTRANT (check all applicable boxes): [=] Broker-dealer L] Security-based swap dealer C] Major security-based swap participant O Check here if respondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) 8333 Douglas Ave, Suite 1450 (No. and Street) Dallas TX 15225 (City) (State) (Zip Code) PERSON TO CONTACT WITH REGARD TO THIS FILING Don Sterling 214-226-7507 d.sterling@sbcglobal.netq (Name) (Area Code — Telephone Number) (Email Address) B. ACCOUNTANT IDENTIFICATION INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing\* Sanville & Company, LLC (Name — if individual, state last, first, and middle name) 325 North Saint Paul St. Suite 3100 Dallas, TX 75201 (Address) (City) (State) (Zip Code) 09/18/2003 169 (Date of Registration with PCAOB)(if applicable) (PCAOB Registration Number, if applicable) FOR OFFICIAL USE ONLY \* Claims for exemption from the requirement that the annual reports 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 ISteptien 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 : December : 31 : ,2 025 , is | true and correct. | further swear (or affirm) that neither the company nor 2d 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. ![](_page_2_Picture_5.jpeg) | | | Signature:
~
Ait
a | |-------------------------------------------------------------|----|-----------------------------------------------| | JORDAN NAN
Notary ID #131472217
My Commission Expires | , | zs
7
Title:
is
/
P Lez. J
' | | June 24, 2026 | \) | vt
o | ### This filing\*\* contains (check all applicable boxes): - (a) Statement of financial condition. - (b) Notes to consolidated statement of financial condition. - (c) Statement of income (loss) or, if there is other comprehensive income in the period(s) presented, a statement of comprehensive income (as defined in § 210.1-02 of Regulation S-x). - (d) Statement of cash flows. - (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - (f) Statement of changes in liabilities subordinated to claims of creditors. - (g) Notes to consolidated financial statements. - (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. - (i) Computation of tangible net worth under 17 CFR 240.18a-2. - (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or, Exhibit A to 17 CFR 240.18a-4, as applicable. } Oo OOO OO000000 O88 - (1) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. - (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable. - (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist. - (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable. - (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - (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. ee ee | - (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-1e or 17 CFR 240.17a-12, as applicable. - (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). - (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 | | Pages (s) | |---------------------------------------------------------|-----------| | Report of Independent Registered Public Accounting Firm | 3-4 | | Statement of Financial Condition | | | Notes to Financial Statements | 6-10 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) ### Report of Independent Registered Public Accounting Firm To the Member and Those Charged With Governance Smith Capital Markets, LLC ### Opinion on the Statement of Financial Condition We have audited the accompanying statement of financial condition of Smith Capital Markets, LLC (the Company) as of December 31, 2025, and the related notes (collectively, the statement of financial condition). In our opinion, the statement of financial condition presents fairly, in all material respects, the financial position of the Company as of December 31, 2025, in conformity with accounting principles generally accepted in the United States of America. ### Emphasis of Matter - Going Concern The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 8 to the financial statements, the Company does not generate revenues and relies on financial support from a parent company to fund its operations. This condition raises substantial doubt about the Company's ability to continue as a going concern for a period of one year from the date the financial statements are issued. Management's plans to mitigate this doubt include continued financial support from the parent company. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Our opinion is not modified in respect of this matter. ### Basis for Opinion This statement of financial condition is the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's statement of financial condition 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 statement of financial condition is 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 statement of financial condition, 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 statement of financial condition. Our audit also included > 325 North Saint Paul Street Suite 3100 Dallas, Texas 75201 214.738.1998 {5}------------------------------------------------ evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the statement of financial condition. We believe that our audit provides a reasonable basis for our opinion. We have served as the Company's auditor since 2024. Sanville & Company, LLC Dallas, Texas March 27, 2026 {6}------------------------------------------------ ## STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2025 | ASSETS | | |------------------------------------------------------------------------------|-----------------------| | Cash and cash equivalents (Note 1)
Due from clearing brokers and others | 44,919
\$
7,065 | | Other assets | 2,234 | | Total assets | \$ 54,218 | | LIABILITIES AND MEMBER'S EQUITY | | | LIABILITIES:
Accounts payable | | | Total liabilities | 3,145 | | COMMITMENTS AND CONTINGENCIES (Notes 4 and 5)
MEMBER'S EQUITY (Note
2) | | | Additional Paid in Capital
Retained Earnings | 370,000
(318,927) | | Total member's equity | 51,073 | | Total liabilities and member's equity | \$54,218 | The accompanying notes are an integral part of this statement. {7}------------------------------------------------ ### NOTES TO FINANCIAL STATEMENTS ### NOTE | - ORGANIZATION AND SUMMARY OF SIGNIFICANT A CCOUNTING 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 of the 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. ### Clearing Agreements The Company, under Rule 15c3-3(k)(2)(ii), is exempt from the reserve and possession or control requirements of Rule 15c3-3 of the Securities and Exchange Commission. The Company does not carry or clear customer accounts. Accordingly, all customer transactions are executed and cleared on behalf of 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 17a-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 of customers' confirmations and statements and maintenance margin requirements under the Act and the rules of the Self-Regulatory Organizations of which 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 of three 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. Everything has been depreciated prior to 2025 and there are no changes in 2025. ### 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. That amount is zero as of 12/31/2025. {8}------------------------------------------------ ### NOTES TO FINANCIAL STATEMENTS (continued) ### NOTE I - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNT. ING POLICIES ### Basis of Accounting, Trading and Valuation of Securities 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 of the 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 1 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 of future circumstances that cannot be reasonably determined. Because of the 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 of the 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 I - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ### Basis of Accounting, Trading and Valuation of Securities (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, 2025. ### Use of Estimates The Firm does not use estimates in the reporting of revenues and expenses. ### 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. At December 31, 2025, the Company had net capital and net capital requirements of \$48,839 and \$5,000, respectively. The Company's net capital ratio (aggregate indebtedness to net capital) was .06 to 1. According to Rule 15c3- 1, the Company's net capital ratio shall not exceed 15 to 1. ### NOTE 3 - INCOME TAXES The Company is a pass-through entity for income tax purposes. Accordingly, no provision for federal income taxes has been made in the accompanying financial statements, as the taxable income or loss is passed through to and reported by the Company's members/shareholders. {10}------------------------------------------------ ### NOTES TO FINANCIAL STATEMENTS ### NOTE 4- COMMITMENTS AND RELATED PARTY TRANSACTIONS The Company, under an expense sharing agreement dated May 2, 2023, leases office space from a related Ge party on a month-to-month basis. During the year ended December 31 , 2025, rental payments were 36,000. ## NOTE 5 - FINANCIAL INSTRUMENTS WITH OF F-BALANCE SHEET RISKS 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. If the 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 are approximately fair value. Securities owned are valued as described in Note 1. ### NOTE 6 - SUBSEQUENT EVENTS Subsequent to December 31, 2025, date but prior to the issuance of these financial statements, the Company experienced unauthorized wire transfers from certain of its bank accounts. The transfers, which occurred over a short period, resulted in a loss of approximately \$(29,000) to the Company. Management has promptly notified the affected banks and relevant authorities, filed claims under its insurance policies, and engaged counsel to pursue recovery, including potential claims against the bank related to the processing of the transfers. The Company is also implementing additional safeguards to strengthen its cash management procedures. The Company is actively pursuing recovery through insurance claims and has engaged counsel regarding the processing of the transfers by the bank. In addition, management is reviewing its banking relationships to incorporate enhanced verification protocols, including multi-party authentication for wire transfers. ### NOTE 7 - SEGMENT REPORTING Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (the "CODM). The CODM is the President of the Company. The CODM uses net income to evaluate the results of the business, predominantly in the forecasting process to manage the Company. Significant expense categories regularly provided to the CODM are those disclosed in the statement of operations. Additionally, the CODM uses excess net capital (shown in Note X), which is not a measure of profit and loss, to make operational decisions while maintaining capital adequacy. {11}------------------------------------------------ NOTES TO FINANCIAL STATEMENTS The Company's operations constitute a single operating segment and therefore, a single reportable segment because the CODM manages the business activities using information of the Company as a whole. ### NOTE 8 - GOING CONCERN The Company has historically funded its operations and maintained net capital compliance under SEC Rule 15c3- 1 primarily through capital contributions from its parent. As of December 31, 2025, the Company has incurred recurring losses and relies on ongoing parental support to meet its obligations. These conditions raise substantial doubt about the Company's ability to continue as a going concern within one year after the date these financial statements are issued. Management's plans include continued capital contributions from the parent as needed. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.