# OAK HILLS SECURITIES, INC. X-17A-5 (2022-12-16) — Broker-dealer annual report
- Company: OAK HILLS SECURITIES, INC.
- Form: X-17A-5
- Filed: 2022-12-16
- Period: 2022-09-30
- Accession: 0001415871-22-000002
- CIK: 1415871
- File #: 8-67740
- Type: Broker-dealer
- Material weakness: No
- Auditor: Bauer & Company, LLC
- Auditor location: Austin, TX
- Contact: Brian Megenity
- Phone: 7702636003
- Email: don@ohsinet.com
- Website: ohsinet.com
- Signed by: Don Dillingham (CEO)
Original filing: https://www.sec.gov/Archives/edgar/data/1415871/000141587122000002/ohpuaud.pdf
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#### PUBLIC COPY
| UNITED STATES |
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| SECURITIES AND EXCHANGE COMMISSION |
| Washington, D.C. 20549 |
### ANNUAL REPORTS FORM X-17A-5 PART III
| OMB APPROVAL | |
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| OMB Number: 3235-0123 | |
| Expires: Oct. 31, 2023 | |
| Estimated average burden | |
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SEC FILE NUMBER
| Comments of the first for the program and the production of the submit of the many of the may be | |
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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 10/1/2021 \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
MM/DD/YY
MM/DD/YY
09/30/2022
A. REGISTRANT IDENTIFICATION
# NAME OF FIRM: OAK HILLS SECURITIES, INC.
TYPE OF REGISTRANT (check all applicable boxes):
@ Broker-dealer | | Security-based swap dealer | | 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.)
### 121 NE 50TH STREET
| (No. and Street) | | | | | |
|----------------------------------------------|---------|-----------------|--|--|--|
| OKLAHOMA CITY | OK | 73105 | | | |
| (City) | (State) | (Zip Code) | | | |
| PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | |
| DONALDI DILINQUARI 105 786 0755 | | DONGOLOINET CON | | | |
| DONALD L. DILLINGHAM 405-286-9755 | | DON@OHSINET.COM |
|------------------------------------|--------------------------------|-----------------|
| (Name) | (Area Code - Telephone Number) | (Email Address) |
#### B. ACCOUNTANT IDENTIFICATION
INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing\*
# BAUER & COMPANY, LLC
| (Name - if individual, state last, first, and middle name) | | | | | |
|------------------------------------------------------------|-----------------------|--------------------------------------------|------------|--|--|
| PO BOX 27887 | AUSTIN | IX | 78755 | | |
| (Address) | (City) | (State) | (Zip Code) | | |
| 11-20-2014 | | #6072 | | | |
| (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 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.
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### PUBLIC COPY
| DONALD L. DILLINGHAM
swear (or affirm) that, to the best of my knowledge and belief, the | | | | |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| tinancial report pertaining to the firm of OAK HILLS SECURITIES, INC.
as of
al30
2 022 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. | | | | |
| | | | | |
| Sighature: | | | | |
| | | | | |
| Title: | | | | |
| President | | | | |
| | | | | |
| | | | | |
| Notary Public | | | | |
| | | | | |
| 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 in the period(s) presented, a statement of | | | | |
| comprehensive income (as defined in § 210.1-02 of Regulation S-X). | | | | |
| D (d) Statement of cash flows. | | | | |
| [e] Statement of changes in stockholders' or partners' or sole proprietor's equity. | | | | |
| [f (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. | | | | |
| L (I) 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 capible net | | | | |
| worth under 17 CFR 240.18c3-1, 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 240.18a-7, as applicable. | | | | |
| L (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 statements under 17 | | | | |
| CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. | | | | |
| [ {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 240.17a-12, | | | | |
| as applicable. | | | | |
| (y) Report describing any material inadequacies 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: | | | | |
| | | | | |
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PUBLIC COPY
### OAK HILLS SECURITIES, INC.
### FINANCIAL STATEMENTS
### SEPTEMBER 30, 2022
### TOGETHER WITH REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
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### OAK HILLS SECURITIES, INC. Table of Contents September 30, 2022
| Report of Independent Registered Public Accounting Firm | |
|---------------------------------------------------------|--|
| Financial Statements: | |
| Statement of Financial Condition | |
| Notes to Financial Statements | |
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#### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Member of Oak Hills Securities, Inc.
#### **Opinion on the Financial Statement**
We have audited the accompanying statement of financial condition of Oak Hills Securities, Inc. as of September 30, 2022, and the related notes (collectively referred to as the "financial statement"). In our opinion, the financial statement presents fairly, in all material respects, the financial position of Oak Hills Securities, Inc. as of September 30, 2022, in conformity with accounting principles generally accepted in the United States of America.
#### **Basis for Opinion**
This financial statement is the responsibility of Oak Hills Securities, Inc.'s management. Our responsibility is to express an opinion on Oak Hills Securities, Inc.'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 Oak Hills Securities, Inc. in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statement, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statement. 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 statement. We believe that our audit provides a reasonable basis for our opinion.
#### **BAUER & COMPANY, LLC**
%DXHU &RPSDQ\//&
We have served as Oak Hills Securities, Inc.'s auditor since 2020.
Austin, Texas December 13, 2022
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# OAK HILLS SECURITIES, INC.
### STATEMENT OF FINANCIAL CONDITION AS OF SEPTEMBER 30, 2022
### ASSETS
| Cash and cash equivalents
Other assets | S | 776,151
3,347 |
|-----------------------------------------------|-------|------------------|
| TOTAL ASSETS | ਦਿੱਤੇ | 779,498 |
| LIABILITIES AND SHAREHOLDER'S EQUITY | | |
| Commissions payable | S | 480,789 |
| TOTAL LIABILITIES | | 480,789 |
| Shareholder's equity: | | |
| Common stock, \$.01 par value; | | |
| 100 shares authorized, issued and outstanding | | |
| Additional paid-in-capital | | 43,999 |
| Retained earnings | | 254,709 |
| Total shareholder's equity | | 298,709 |
| TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY | S | 779,498 |
The accompanying notes are an integral part of these financial statements.
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{8}------------------------------------------------
The note includes a provision for additional interest to accrue on any unpaid principal and interest at the rate of 20% per month. No interest or principal payments were received and no interest income has been recognized during the year ended September 30, 2022. Management has recorded an allowance for doubtful accounts and corresponding bad debt expense of \$100,000 during the year ended September 30, 2022.
#### 4. NET CAPITAL REQUIREMENTS
As a registered broker/dealer and member of the FINRA, the Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (Rule 15c3-1), which requires the maintenance of minimum net capital and requires that the ratio of aggregated indebtedness to net capital, both as defined, shall not exceed 15 to 1 and prohibits a broker dealer from engaging in securities transactions when its net capital falls below minimum requirements as defined by the Rule. At September 30, 2022, the Company's net capital and required net capital were \$295,362 and \$32,053 respectively. The Company's ratio of aggregate indebtedness to net capital was 1.6 to 1.
#### 5. RELATED PARTY TRANSACTIONS
Through common ownership and management, the Company is affiliated with Avondale Investments, LLC (Avondale), Dira, LLC, Sequoia Management Company, LLC, Oklahoma Venture Capital Fund, LLC, Oak Hills Private Equity Fund, LLC, Oak Hills CAPCO, LLC, Merit Advisors, Inc., Heritage Management, Inc. (Heritage), Tax Credit Exchange, LLC, CNG B&H, LLC and various other entities. A vondale and the Company share office space, personnel and other services. Pursuant to the terms of a written agreement (renewed May 1, 2017), the Company incurred \$1,800 in fees for overhead and administrative services provided by Avondale during the year ended September 30, 2022.
The Company leases office space from Avondale under an operating lease effective through June 30, 2023 for \$450 per month. The occupancy expense incurred for the year ended September 30, 2022 pursuant to the terms of the lease was \$5,400. Minimum future lease payments on this lease totals \$4,050.
The Company recorded \$366,000 in success fees which related to transactions with related parties representing approximately 27% of total revenues for the year ended September 30, 2022.
#### NOTE PAYABLE 6.
In July 2020 the Company received an Economic Injury Disaster Loan ("EIDL") for working capital in the amount of \$22,700 from the U.S. Small Business Administration ("SBA"). The loan is payable over 30 years in equal installments of \$111 including interest at 3.75%. Payments were initially deferred for 12 months. The SBA extended the deferral another 12 months in 2021. The Company paid the note in full during the year ended September 30, 2022.
#### 7. COMMITMENTS AND CONTINGENCIES
Litigation - The Company from time to time may be involved in litigation relating to claims arising out of its normal course of business. Management believes that there are no claims or actions pending or threatened against the Company, the ultimate disposition of which would have a material impact on the Company's financial position, results of operations or cashflows.
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Risk Munagement – The Company maintains various forms of insurance that Company's management believes are adequate to reduce the exposure to these risks to an acceptable level.
#### 8. CONCENTRATIONS
For the year ended September 30, 2022, 82% of the Company's revenue was derived from four customers.
> \* \* \* \* \* \* \*
Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.