# EDGEPOINT CAPITAL ADVISORS LLC X-17A-5 (2026-03-11) — Broker-dealer annual report

- Company: EDGEPOINT CAPITAL ADVISORS LLC
- Form: X-17A-5
- Filed: 2026-03-11
- Period: 2025-12-31
- Accession: 0001394671-26-000004
- CIK: 1394671
- File #: 8-67594
- Type: Broker-dealer
- Material weakness: No
- Auditor: Hobe and Lucas Certified Public Accountants, Inc.
- Auditor location: Independence, OH
- Contact: Kelly MacMillan
- Phone: 216-342-5862
- Signed by: Thomas Zucker (President)

Original filing: https://www.sec.gov/Archives/edgar/data/1394671/000139467126000004/edgepoint2025publicfiling.pdf

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# **Hobe &Lucas**  Certified Pub lic Accountants, Inc.

6000 Freedom Sciuarc Dri ve. Suite 550 I 11depe11dc11 ce . Ohio 44 1 J I

ww w .hobc.co 111 Tel: (2 I <i) 524-8900 Fnx: (2 16) 524-8777

### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Members of EdgePoint Capital Advisors, LLC Beachwood, Ohio

We have audited the accompanying statement of financial condition of EdgePoint Capital Advisors, LLC as of December 31 , 2025, and the related notes (collectively referred to as the financial statement). In our opinion, the statement of financial condition presents fairly, in all material respects, the financial position of EdgePoint Capital Advisors, LLC as of December 31 , 2025 in conformity with the accounting principles generally accepted in the United States of America.

#### **Basis for Opinion**

This financial statement is the responsibility of EdgePoint Capital Advisors, LLC's management. Our responsibility is to express an opinion on EdgePoint Capital Advisors, 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 EdgePoint Capital Advisors, 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 fraud or error. 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.

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We have served as EdgePoint Capital Advisors, LLC's auditor since 2010.

Independence, Ohio February 12, 2026

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## **EDGEPOINT CAPITAL ADVISORS, LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2025**

#### **ASSETS**

| Assets                                 |                 |
|----------------------------------------|-----------------|
| Cash and cash equivalents              | \$<br>6,136,209 |
| Accounts receivable                    | 88,905          |
| Prepaid expenses and other receivables | 99,185          |
| Fixed Assets                           | 35,751          |
| Operating Lease Right-of-Use Asset     | 192,124         |
| Goodwill                               | 28,750          |
| Total Assets                           | 6,580,924       |

## **LIABILITIES AND MEMBERS' EQUITY**

| Liabilites                            |                 |
|---------------------------------------|-----------------|
| Accounts payable                      | \$<br>68,583    |
| Accrued expenses                      | 165,730         |
| Accrued commissions                   | 665,700         |
| Operating Lease Liability             | 188,970         |
| Subordinated Loans                    | 400,000         |
| Total Liabilities                     | 1,488,983       |
| Members' Equity                       | 5,091,941       |
| Total Liabilities and Members' Equity | \$<br>6,580,924 |

See accompanying notes to financial statements.

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## **EDGEPOINT CAPITAL ADVISORS, LLC NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2025**

## NOTE **1** - **NATURE OF OPERA TIO NS**

EdgePoint Capital Advisors, LLC (the Company) is registered with the United States Securities and Exchange Commission as a broker/dealer pursuant to Section 15(b) of the Securities Exchange Act of 1934 and is a member of Financial Industry Regulatory Authority (FINRA). The Company acts as an advisor on merger and acquisition transactions to privately held entities and is registered in various states.

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

This summary of significant accounting policies of EdgePoint Capital Advisors, LLC is presented to assist in understanding the Company's operations and financial position. The financial statements and notes are representations of the Company's members who are responsible for their integrity and objectivity. These accounting policies conform to generally accepted accounting principles and have been consistently applied in the preparation of the financial statements.

#### **Cash and Cash Equivalents**

The Company considers financial instruments with an original maturity of 90 days or less to be cash equivalents.

#### **Credit Risk**

The Company maintains cash in bank deposit accounts which, at times, may exceed federally insured limits. The Company has not experienced, nor does it expect any losses in such accounts.

#### **Accounts Receivable**

Accounts receivable are uncollateralized customer obligations due under normal trade terms which are stated at the amount billed to the customer. Management reviews all accounts receivable balances past due and based on an assessment of cw-rent creditworthiness, estimates the portion, if any, of the balance that will not be collected. As of December 31, 2025 and 2024, accow1ts receivable were \$88,905 and \$113,483 respectively, and the allowance for credit losses was \$0.

#### Fixed Assets

Fixed assets are recorded at cost and include additions and improvements that extend the useful lives of the assets. Maintenance, repairs and renewals, which neither materially add to the value of the prope1ty nor appreciably prolong its life, are charged to expense as inctmed.

Depreciation expense is calculated on the straight-line method over the estimated useful lives of the respective assets as follows:

| Office furniture and fixtures | 5 years |
|-------------------------------|---------|
| Computer equipment            | 3 years |

Depreciation expense for the yearended December 31, 2025 was \$24,880.

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## **EDGEPOINT CAPITAL ADVISORS. LLC NOTES TO FINANCIAL STATEMENTS DECEMBER 31. 2025**

#### NOTE 2 - **Summary of Significant Accounting Policies (continued)**

#### **Operating Leases**

The Company dete1mines if a contract is a lease or contains a lease at the inception of the arrangement. Leases are classified as operating leases. Right-of-use assets ("ROU") and lease liabilities are recognized on the balance sheet at the lease commencement date based on the present value of the lease payments over the term of the lease.

ROU assets also include any initial direct costs incurred, lease payments made, and excludes any lease incentive payments. The Company calculates the present value using the interest rate implicit in the lease agreements, the Company's incremental bo1Towing rate or, if not available or readily determinable, the risk-free rate. Lease terms may include options to extend or tem1inate the lease when it is reasonably certain that such options will be exercised.

#### **Revenue Recognition**

ASC 606 requires that revenue is recognized on contracts when the Company satisfies its performance obligations. The recognition and measurement of revenue is based on the assessment of the terms of the individual contracts. Determining whether services are considered distinct perfo1mance obligations satisfied over time or at a point in time requires the Company to make significant judgements that may affect the timing and measurement of revenue recognition. The Company applies the requirements to its revenue streams:

*Commitment Fees* - The Company earns a commitment fee upon completion of a preliminary valuation assessment and signing of the engagement letter. Commitment fees are non-refundable and f·ully earned and recognized at the time of receipt. There are no further performance obligations associated with the commitment fees.

*Consulting Fees* - Consulting fees including acquisition advisory services and transition readiness assessment services are ea.med and recognized upon completion of measurable milestones per the terms of the contTact.

*Success Fees* - Success fees are earned only upon the closing of a transaction. Advisory services are provided throughout the contract period with no measurable milestones except the closing of the transaction. Since success fees are only earned in the event of a closing, revenue is recognized on success fees at the time of the closing.

#### **NOTE 3 - GOODWILL**

The Company has recorded goodwill related to a previous acquisition. Goodwill must be tested at least annually for impai1ment. Management of the Company has tested the goodwill for impairment and has determined that no impaiiment has occuned for the year ended December 31, 2025 .

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## **EDGEPOINT CAPITAL ADVISORS, LLC NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2025**

## **NOTE 4- OPERATING LEASES**

The Company entered into operating lease agreements with unrelated third parties to lease its office space and copier. The leases expire in October and November 2026, respectively.

Future minimum lease payments, due under the operating leases, are as follows:

| 2026                                        | 192,802<br>\$        |
|---------------------------------------------|----------------------|
| Total Undiscounted Payments                 | 192,802              |
| Less: Amount Representing interest          | __<br>(<br>3~,8_3_3) |
| Present Value of Net Minimum Lease Payments | \$<br>188.969        |

At December 31, 2025, the weighted average remaining lease terms approximated 10 months and the weighted average discount rate approximated 3.25%. For the year ended December 31, 2025, operating lease costs totaled \$212,734.

## **NOTE 5 - DEFINED CONTRIBUTION PLAN**

The Company sponsors a defined contribution retirement plan for employees pursuant to Section 401 (k) of the Internal Revenue Code. The Company may contribute a discretionary amount as detem1ined by the members. Such contribution, if any, shall be allocated to participants in proportion to each participant's compensation. For the year ended December 31, 2025, the Company made contributions of\$ -0- to the plan.

## **NOTE 6 - RELATED PARTY TRANSACTIONS**

The Company made no payments to affiliates in 2025 and there were no ammmts due to affiliates at December 31 , 2025 .

## **NOTE 7-INCOME TAXES**

The Company is not a taxpaying entity for federal and state income tax purposes although the Company is subject to local income taxes. On the federal and state level, income from the Company is taxed to the member at his individual income tax rates. Accordingly, there is no provision for federal or state income taxes.

Reporting periods ending after December 31, 2021, are subject to examination by taxing authorities.

## **NOTE 8** - **MARKETING AND ADVERTISING EXPENSE**

For the year ended December 31, 2025, the Company recorded marketing and adve1iising expenses of \$23,087 .

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## **EDGEPOINT CAPITAL ADVISORS, LLC NOTES TO FINANCIAL ST A TEMENTS DECEMBER 31, 2025**

## **NOTE 9** - **SUBORDINATED BORROWINGS**

The Company has entered into two Subordinated Loan Agreements ("SLAs") with individual lenders, each of which has been approved by the Financial Industry Regulatory Authority ("FINRA") pursuant to SEC Rule 15c3-l Appendix D. The proceeds of these loans are presented as subordinated liabilities in the accompanying financial statements.

Each loan, dated May 9, 2025, provides for principal in the amount of \$200,000 maturing in May 2026, with interest payable quarterly at 10% per annum. Under both agreements, payment of principal and interest is fully subordinated to the claims of all present and future creditors of the Company.

Prepayments are prohibited within one year of the effective date of these agreements and thereafter require prior written approval from FINRA, provided the Company remains compliant with applicable net capital requirements following such prepayment. The agreements may not be terminated, transferred, assigned, or otherwise modified without FINRA's prior written approval.

## NOTE **10** - **NET CAPITAL PROVISION OF RULE 15c3-1**

The Company is subject to the Securities and Exchange Commission (SEC) unifonn net capital rule (Rule 15c3-l) which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. At December 31, 2025, EdgePoint Capital Advisors, LLC had net capital of \$5,239,350 which was \$5,179,559 in excess of its required net capital of \$59,791. EdgePoint Capital Advisors, LLC's ratio of aggregate indebtedness to net capital was 17 .12%.

## NOTE **11** - **SEGMENT REPORTING**

The Company is engaged in a single line of business as a broker dealer with investment banking as its one class of service. The Company has identified its President as the chief operating decision maker ("CODM"), who uses net income to evaluate the results of business, predominantly in the forecasting process, to manage the Company. Additionally, the CODM uses excess net capital (see Note 9), which is not a measure of profit and loss, to make operation decisions while maintaining adequate net capital, such as whether to reinvest profits or make distributions.

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. The accounting policies used to measure the profit and loss of the segment are the same as those described in the summary of significant accounting policies. Additionally, because the operating segment represents the entire entity, the financial statements may be referenced for segment reporting.

## **NOTE 12** - **COMMITMENTS AND CONTINGENCIES**

The Company is not aware of any material commitments or contingencies.

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## NOTE 13 - **SUBSEOUENT EVENTS**

The Company has evaluated all subsequent events tlu·ough February 12, 2026, the date the financial statements are available for issue.

On February 5, 2026, EdgePoint Capital Advisors LLC entered into a new non-cancelable operating lease agreement for new office space located in Beachwood, Ohio. The leased premises consist of 8,620 rentable square feet. The lease term begins June 1, 2026 and extends for 91 months, expiring December 31, 2033.

The net present value of the right to use asset and lease liability is \$843,373 and the future annual lease obligations under ASU 2016-02 are as follows:

Total UndiscoW1ted Payments over the Lease Term \$ 991,300 Less: Amount Representing Interest *(* 147.927)

Present Value of Net Minimum Lease Payments \$ 843.373


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