# HGP SECURITIES, LLC X-17A-5 (2023-02-21) — Broker-dealer annual report - Company: HGP SECURITIES, LLC - Form: X-17A-5 - Filed: 2023-02-21 - Period: 2022-12-31 - Accession: 0001449653-23-000001 - CIK: 1449653 - File #: 8-68080 - Type: Broker-dealer - Material weakness: No - Auditor: Rubio CPA PC - Auditor location: Atlanta, GA - Contact: Chris McCord - Phone: 713-955-7935 - Email: chris@hgp.com - Website: hgp.com - Signed by: Christopher McCord (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1449653/000144965323000001/hgp.pdf --- {0}------------------------------------------------ | UNITED STATES | |------------------------------------| | SECURITIES AND EXCHANGE COMMISSION | | Washington, D.C. 20549 | ## **ANNUAL REPORTS FORM X-17A-5 PART Ill** | 0MB APPROVAL | |--------------------------| | 0MB Number: 3235-0123 | | Expires: Oct. 31, 2023 | | Estimated average burden | | hours per response: 12 | | | SEC FILE NUM BER 8-68080 | | 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 0 1/01 /22 | | AND ENDING 12/ | 31122 | | | | MM/DD/YY | | | MM/DD/YY | | | A. REGISTRANT IDENTIFICATION | | | | | NAMEOFFIRM: HGP SECURITIES, LLC | | | | | | TYPE OF REGISTRANT (check all applicable boxes) :
iii!il Broker-dealer
D Check here if respondent is also an OTC derivatives dealer | D Security-based swap dealer | D Major security-based swap participant | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | | 2001 Kirby Drive, Suite 814 | | | | | | | (No. and Street) | | | | | Houston | TX | | | 77019 | | (City) | (State) | | | (Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | Chris McCord | 713-955-7935
chris@hgp.com | | | | | (Name) | (Area Code - Telephone Number) | | (Email Address) | | | | 8. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
RUBIO CPA, PC | | | | | | | (Name - if individual, state last, first, and middle name) | | | | | 3500 Lenox Rd NE, Suite 1500 Atlanta | | | GA | 30326 | | (Address) | (City) | | (State) | (Zip Code) | | 5/5/09 | | 3514 | | | | | | | | | | | 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-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. {1}------------------------------------------------ #### **OATH OR AFFIRMATION** I, Christopher McCord swear (or affirm) that, to t he best of my knowledge and belief, the fi nanci al report pert aining to th e firm of HGP SECURITIES, LLC as of December 31 2~ is true and correct. I further swear (or affirm) that neither t he 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. Signat ure:~#)( ~ ~A~ Notary Public #### **This filing•• contains (check all applicable boxes):** - ~ (a) Statement of fi nancial condition. - D (b) Notes to consol idated statement of financ!al cond ition. - ~ (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 cha nges in stockholders' or partners' or sole proprietor's equity. - D (f) Statement of changes in liabilities subordinated to claims of creditors. - ~ (g) Notes to consolidated fi nancial statements. - **iii!** (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applica bl e. - D (i) Computation of tangible net worth under 17 CFR 240.18a-2. - D U) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.1Sc3-3. - D (k) Computation for determination of security-based swap reserve requirements pu rsuant 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 Requ irements 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 swa p customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable. - **iii!** (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. - ~ (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. - D (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. - 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. - ~ (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. - **iii! (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.l 7a-12(k). D(z) Other: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_ - - *\*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.17o-5(e)(3} or 17 CFR 240.18o-7(d}(2), as applicable.* Title: CEO CHRISTINE B. **TRAN** ![](_page_1_Picture_34.jpeg) {2}------------------------------------------------ ## **HGP SECURITIES, LLC** **(A Limited Liability Company)** Financial Statements For the Year End December 31, 2022 {3}------------------------------------------------ ## **RUBIO CPA, PC** CERTIFIED PUBLIC ACCOUNTANTS 3500 Lenox Road NE Suite 1500 Atlanta, GA 30326 Office: 770 690-8995 Fax: 770 838· 7123 ## **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Member of HGP Securities, LLC #### Opinion on the Financial Statements We have audited the accompanying statement of financial condition of HGP Securities, LLC (the "Company") as of December 31 , 2022, the related statements of operations, changes in member'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. 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 to 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 information contained in Schedules I, II and **Ill** has been subjected to audit procedures perfonned 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 information in Schedules I, II and Ill 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 accompanying schedules. In forming our opinion on the accompanying schedules, we evaluated whether the supplemental information, including its form and content, is presented {4}------------------------------------------------ in conformity with 17 C.F.R. §240.17a-5. In our opinion, the aforementioned supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole. We have served as the Company's auditor since 2017. February 21, 2023 Atlanta, Georgia ![](_page_4_Picture_3.jpeg) {5}------------------------------------------------ ## **HGP Securities, LLC (A Limited Liability Company) Statement of Financial Condition December 31, 2022** #### Assets | Cash
Accounts receivable
Property and equiment, net of accumulated depreciation of \$36,448
Securities owned
Right of use asset
Prepaid expenses
Deposits | | 1,788 ,335
126,799
3,950
205,323
108,338
28,462
6,119 | |-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----|-------------------------------------------------------------------------| | Total Assets | \$ | 2,267,326 | | Liabilities and Member's Equity
Accounts payable
Accrued compensation | \$ | 7,413
27,374 | | Lease Liability
Total Liabilities | | 110,177
144,964 | | Member's Equity | | 2,122,362 | | Total Liabilities and Member's Equity | \$ | 2,267,326 | {6}------------------------------------------------ ## **HGP Securities, LLC (A Limited Liability Company) Statement of Operations For the Year ended December 31, 2022** #### Revenues: | Investment banking
Interest
Other revenue | \$ | 3,819,600
661
33,108 | | |---------------------------------------------------------------------------------|----|------------------------------------------|--| | Total Revenues | \$ | 3,853,369 | | | Expenses: | | | | | Compensation and benefits
Occupancy and equipment
Communications
Other | \$ | 1,152,803
73,662
49,351
126,553 | | | Total Expenses | \$ | 1,402,369 | | | Net Income | \$ | 2,451 ,000 | | | | | | | {7}------------------------------------------------ #### **HGP Securities, LLC (A Limited Liability Company) Statement of Changes in Member's Equity For the Year ended December 31, 2022** | Member's Equity - January 1, 2022 | \$3,671
,362 | |--------------------------------------|-----------------| | Distributions to Member | (4,000,000) | | Net income | 2,451 ,000 | | Member's Equity - December 31 , 2022 | \$2,122,362 | {8}------------------------------------------------ ## **HGP Securities, LLC (A Limited Liability Company) Statement of Cash Flows For the Year ended December 31, 2022** | Cash used by operating activities: | | |-----------------------------------------------------------------------------------|---------------| | Net income | \$ 2,451 ,000 | | Items which do not affect cash: | | | Depreciation | 1,766 | | Adjustments to reconcile net income to net cash provided by operating activities: | | | Change in | | | Accounts receivable | 143,546 | | Securities owned | (205,323) | | Right of use asset | (50 ,185) | | Prepaid expenses | 5,845 | | Deposits | (85) | | Accounts payable | (8 ,022) | | Accrued compensation | 14,076 | | Lease liability | 46 114 | | Total adjustments | (54,034) | | Net cash provided by operating activities | 2,398,732 | | Cash flows from financing activities: | | | Distributions to Member | (4,000 ,000) | | Net cash used by financing activities | (4,000 ,000) | | | | | Net decrease in cash | (1 ,601 ,268) | | Cash - beginning of year | 3,389,603 | | Cash - end of year | \$ 1,788,335 | {9}------------------------------------------------ #### **NOTE 1-DESCRPTIONOFOPERATDNSAN>SUMIIIARYOFSIGNFICANTACCOUNTINGPOUCES** #### Description of Operations HGP Securities, LLC (the Company) was formed on April 9, 2008 and has been a registered broker-dealer with the Financial Industry Regulatory Authority (FINRA) since September 22, 2009. The Company provides capital raising services and merger and acquisition advisory services to companies in the health-care industry. Hawkeye Bay Capital, LLC (member) is the sole owner of HGP Securities, LLC. As a limited liability company, the member's liability is limited to their investment. #### Summary of Significant Accounting Policies 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 amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Revenue Recognition - Revenue from contracts with customers includes investment banking revenue from placement and advisory services. The recognition and measurement of revenue is based on the assessment of individual contract terms. Significant judgment is required to determine whether performance obligations are satisfied at a point in time or over time; how to allocate transaction prices where multiple performance obligations are identified; when to recognize revenue based on appropriate measure of the Company's progress under the contract; whether revenue should be presented gross or net of certain costs; and whether constraints on variable consideration should be applied due to uncertain future events. The Company provides placement and advisory services related to capital raising activities and mergers and acquisitions transactions. Revenue for advisory arrangements is generally recognized at the point in time that performance under the agreement is completed (the closing date of transaction) or the contract is cancelled. However, for certain contracts, revenue is recognized over time for advisory arrangements in which the performance obligations are simultaneously provided by the Company and consumed by the customer. In some circumstances, significant judgement is needed to determine the timing and measure of progress appropriate for revenue recognition under a specific contract. Retainers and other fees received from customers prior to recognizing the revenue are reflected as contract liabilities. The Company recognizes success fee revenues from capital raising services and merger and acquisition advisory services upon completion of a success fee-based transaction. The Company recognizes certain retainer revenue from contracts with customers upon delivery of a list of possible participants to the transaction and delivery of specified marketing materials as these are the performance obligations identified by the Company. The amount of retainer revenue recognized without the consummation of a success fee-based transaction or formal termination of an engagement was \$117,500 and has been included in investment banking revenue in the accompanying Statement of Operations. Cash- Cash consists of cash on deposit at a major financial institution. From time to time the account balances may be in excess of amounts insured by the Federal Deposit Insurance Corporation. Management does not believe the Company is exposed to any significant credit risk. {10}------------------------------------------------ #### **NOTE 1 - DESCRPTION OF OPERATIONSAN>SUMIIIARY OF SIGNFICANT ACCOUN™G POUCES (c:oni'IJecl)** Accounts receivable - Accounts receivable are non-interest-bearing uncollateralized obligations receivable in accordance with the terms agreed upon with each customer. The Company regularly reviews its accounts receivable for any uncollectible amounts. The review for uncollectible amounts is based on an analysis of the Company's collection experience, customer credit worthiness, and current economic treads. Based on management's review of accounts receivable, no allowance for credit losses is considered necessary. Property and Equipment - Property and equipment are recorded at cost. Depreciation is provided by use of straight-line methods over the estimated useful lives of the respective assets. Maintenance and repairs are charged to expense as incurred; major renewals and betterments are capitalized. When items of property or equipment are sold or retired , the related cost and accumulated depreciation are removed from the accounts and any gain or loss is included in the results of operations. Securities owned - Securities owned consist of an investment in common units of a privately held company. Any resulting difference between cost and fair value would be included in the statement of operations. Proprietary securities transactions are reported on the trade date. #### **NOTE 2-NET CAPITAL REQUIREMENTS** The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (Rule 15c3-1 ), which requires that the Company maintain 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 , 2022, the Company had net capital of \$1 ,751 ,709 which was \$1 ,746,709 in excess of its required net capital of \$5,000. The Company's ratio of aggregate indebtedness to net capital was .02 to 1.0 as of December 31 , 2022. #### **NOTE 3 -INCOME TAXES** As a limited liability company, the tax consequences of the Company's operations all pass through to the sole member. Accordingly, the Company's financial statements do not include a provision for income taxes. Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 740 Accounting for Income Taxes, requires management to evaluate tax positions taken by the Company and recognize a tax liability (or asset) if the Company has taken an uncertain position that more likely than not would not be sustained upon examination by the taxing jurisdictions. Management has analyzed the tax positions taken by the Company and has concluded that, as of December 31 , 2022, there were no uncertain tax positions taken or expected to be taken that would require recognition of a liability or asset or disclosure in the Company's financial statements. The Company is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. #### **NOTE 4 -LEASE COMMITMENTS** The Company leases office space under a non-cancelable operating lease expiring in 2025. The Company recognizes and measures its leases in accordance with FASB ASC 842, Leases. The Company recognizes the lease liability and a right of use (ROU) asset on its balance sheet by recognizing the lease liability based on the present value of its future lease payments. The Company uses an incremental borrowing rate of 6% based on what it would approximately have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms and in a similar economic environment. The ROU asset is subsequently measured throughout the lease term at the amount of the remeasured lease liability (present value of the remaining lease payments), less the unamortized balance of lease incentives received. {11}------------------------------------------------ #### **NOTE 4 -LEASE COMMITMENTS {continued)** Maturity of the lease liability under the noncancelable operating lease is as follows: | | Year Ending December 31, | | | | | |-----------------------------------|--------------------------|---------|---------|--|---------| | | 2023 | | 43,571 | | | | | 2024 | | 47,941 | | | | | 2025 | | 24 ,175 | | | | | Total | \$ | 115,687 | | | | Total undiscounted lease payments | | | | | 115,687 | | Less imputed interest | | (5,510) | | | | | Total lease liability | | | | | 110,177 | The Company's office space lease requires it to make variable payments for the Company's proportionate share of operating expenses (i.e. , building's property taxes , insurance, and common area maintenance). These variable lease payments are not included in lease payments used to determine the lease liability and are thus recognized as variable costs when incurred. The total lease cost including variable costs associated with this lease for the year ended December 31 , 2022 was approximately \$70 ,689. The lease liability exceeds the ROU asset due to an unamortized lease incentive. Pursuant to respective month-to-month sublease agreements, the Company received rental income during 2022 from one related entity in the amount of approximately \$17,000 and from an unrelated entity in the amount of \$12 ,000 that have been included in other revenue. #### **NOTE 5 - RETIREMENT PLAN** The Company sponsors a profit-sharing plan under Section 401 (k) of the Internal Revenue Code benefiting substantially all employees, as defined. Employees are eligible to participate as of the date of their employment. An employer contribution to the plan totaling approximately \$53,585 was expensed by the Company for 2022. ## **NOTE 6- SUBSEQUENT EVENTS** Subsequent events were evaluated through the date the financial statements were issued. #### **NOTE 7** - **CONTINGENCIES** The Company is subject to litigation in the normal course of business. The Company has no litigation in progress at December 31 , 2022. {12}------------------------------------------------ #### **NOTE 8-RELATED PARTY TRANSACTIONS** See Note 4 for a description of a sublease agreement in place with a related party. Financial position and results of operation could differ from the amounts in the accompanying financial statements if this agreement did not exist. #### **NOTE 9-CUSTOMER CONCENTRATIONS** During 2022, the Company had three customers that accounted for appruximately 84% of total revenues. Approximately 90% of accounts receivable at December 31 , 2022 is due from one customer. ## **NOTE 10- FAIR VALUE MEASUREMENT** FASB ASC 820 defines fair value, establishes a framework for measuring fair value, and establishes a fair value hierarchy which prioritizes the inputs to valuation techniques. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market. Valuation techniques that are consistent with the market, income or cost approach, as specified by FASB ASC 820, are used to measure fair value. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: Level 1 inputs are quoted prices in active markets for identical assets or liabilities the Company has the ability to access at the measurement date. Level 2 inputs are inputs (other than quoted prices) that are observable for the asset or liability either directly or indirectly. Level 3 are unobservable inputs for the asset or liability developed using estimates and assumptions which reflect those that market participants would use. (The unobservable inputs are developed based on the best information available in the circumstances and may include the Company's own data.) | | Fair Value Measurements | | Level 1 | Level 2 | | Level 3 | | |-------------------|-------------------------|------------|-----------|---------|-----------|---------|-----------| | | | 12/31/2022 | Valuation | | Valuation | | Valuation | | Securities owned: | | | | | | | | | Common Units | \$ | 205,323 | \$ | \$ | | \$ | 205,323 | As of December 31 , 2022 , the Company has \$205,323 of common units in a limited liability company received as compensation from an investment banking transaction. The value of the units is determined by reference to the price per unit that was received by the issuer in the sale of a majority interest of the issuer, less a discount for lack of marketability. {13}------------------------------------------------ ## **HGP Securities, LLC (A Limited Liability Company) Schedule I Computation of Net Capital (Under Rule 15c3-1 of the Securities and Exchange Commission Act of 1934)** #### **December 31, 2022** | Net Capital: | | |-----------------------------------------------------|-----------------| | Total Member's equity | \$2,122,362 | | Deductions: | | | Non-allowable assets: | | | Accounts receivable | 126,799 | | Securities owned | 205,323 | | Prepaid expenses | 28,462 | | Property and equipment, net | 3,950 | | Deposits | 6,119 | | Total deductions | 370,653 | | Net Capital | 1,751 ,709 | | Minimum Net Capital Requirement | 5,000 | | Excess Net Capital | \$1
,746,709 | | | | | Aggregate Indebtedness | \$
36,626 | | Percentage of aggregate indebtedness to net capital | 2.09% | ## **Reconciliation of Computation of Net Capital to Company's Unaudited Form X-17a-5 Part IIA filing** Pursuant to Rule 17a-5(d)(4), no material differences were noted from the Company's computation; therefore, a reconciliation is not considered necessary. {14}------------------------------------------------ ### **HGP Securities, LLC (A Limited Liability Company)** #### **Schedule** II ### **Computation For Determination Of Reserve Requirements Under Rule 15c3-3 Of The Securities And Exchange Commission As Of December 31, 2022** The Company does not claim exemption from SEA Rule 15c3-3 in reliance upon Footnote 74 of the 2013 Release. The Company does not hold customer funds or securities. #### **Schedule** Ill #### **Information Relating To The Possession Or Control Requirements Under Rule 15c3-3 Of The Securities And Exchange Commission As Of December 31, 2022** The Company does not claim exemption from SEA Rule 15c3-3 in reliance upon Footnote 74 of the 2013 Release. The Company does not hold customer funds or securities. {15}------------------------------------------------ #### **EXEMPTION REPORT SEA RULE 17a-5(d)(4)** January 23, 2023 **Rubio CPA, P.C.** 3500 Lenox Road NE Suite 1500 Atlanta, Georgia 30326 To Whom It May Concern: We, as members of manag ement of HGP Securities, LLC (the "Company ") are responsible for complying with Rule 17a-5, "Reports to be made by certain brokers and dealers". We have performed an evaluation of the Company's compliance with the requirements of Rule 17a-5 and the exemption provisions in Rule 15c3-3(k) (the "exemption provisions ") and of the 2013 Release adopting amendments to Rule 17a-5, including Footnote 74 of the 2013 Release. We have determined that the Company does not meet any of the exemption conditions of paragraph (k) of Rule 15c3-3 (i.e., paragraph (k)(l), (k)(2)(i) or (k)(2)(ii) but also (1) does 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 Exchange Act Rule 15c2-4 ("Rule 15c2-4"); (2) does not carry accounts of or for customers; and (3) does not carry PAB accounts (as defined in Rule 15c3-3) and therefore is covered by Footnote 74 of the 2013 Release. Accordingly, based on our evaluation we make the following statements to the best knowledge and belief of the Company: - 1. We reviewed the provisions of Rule §15c3-3 and related guidance stated in the SEC Staffs FAQ and confirmed that the Company relied on Footnote 74 of the 2013 Release. - 2. The Company conducted business activities involving merger and acquisition advisory services activity throughout the year ended December 31, 2022 without exception. - 3. The Company met the identified conditions for such reliance throughout the period January 1, 2022 to December 31, 2022 without exception. Signed: \_\_\_\_\_\_\_\_\_\_\_\_\_ \_ Name: Christopher McCord Title: CEO {16}------------------------------------------------ **RUBIO CPA, PC** CERTIFIED PUBLIC ACCOUNTANTS 3500 Lenox Road NE Suite 1500 Atlanta, GA 30326 Office: 770690-8995 Fax: 770 838-7123 #### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Member of HGP Securities, LLC We have reviewed management's statements included in the accompanying Broker Dealers Annual Exemption Report in which (I) HGP Securities, LLC did not claim an exemption from Rule 15c3-3 in reliance upon Footnote 74 ofthe 20 13 Release, and (2) HGP Securities, LLC stated that HGP Securities, LLC met the identified conditions for such reliance throughout the most recent fiscal year without exception. HGP Securities, LLC's management is responsibl e for compli ance with the exemption provisions 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 HGP Securities, LLC's compliance with the exemption provisions. 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 Footnote 74 of the 20 13 Release. February 21 , 2023 Atlanta, GA **1U,;; a>tr, pe,** Rubio CPA, PC {17}------------------------------------------------ # **RUBIO CPA, PC** CERTIFIED PUBLIC ACCOUNTANTS 3500 Lenox Road NE Suite 1500 Atlanta , GA 30326 Office: 770690-8995 Fax: 770 838 -71 23 ## **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON APPL YING AGREED-UPON PROCEDURES** To the Member of HGP Securities, LLC We have performed the procedures included in Rule 17a-5(e)(4) under the Securities Exchange Act of 1934 and in the Securities Investor Protection Corporation (SIPC) Series 600 Rules, which are enumerated below and were agreed to by HGP Securities, LLC and the SIPC, solely to assist you and SIPC in evaluating HGP Securities, LLC's compliance with the applicable instructions of the General Assessment Reconciliation (Form SI PC-7) for the year ended December 31, 2022. HGP Securities, LLC's management is responsible for its Form SIPC-7 and for its compli ance with those requirements. This agreed-upon procedures engagement was conducted in accordance with standards established by the Public Company Accounting Oversight Board (United States) and in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures we performed, and our findings are as follows: - I) Compared the listed assessment payments in Form SIPC-7 with respective cash disbursement records entries, noting no differences; - 2) Compared the Total Revenue amount reported on the Annual Audited Report Form X-17 A-5 Part I II for the year ended December 31, 2022 with the Total Revenue amount reported in Form SIPC-7 for the year ended December 31 , 2022, noting no differences; - 3) Compared any adjustments reported in Form SIPC-7 with supporting schedules and working papers, noting no differences; - 4) Recalculated the arithmetical accuracy of the calculations reflected in Form SIPC-7 and in the related schedules and working papers supporting the adjustments, noting no differences. We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on HGP Securities, LLC's compliance with the applicable instructions of the Form SIPC-7 for the year ended December 31, 2022. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report is intended solely for the infonnation and use of HGP Securities, LLC and the SIPC and is not intended to be and should not be used by anyone other than these specified parties. February 21, 2023 Atlanta, GA **~CR\,f(.** Rubio CPA, PC {18}------------------------------------------------ | SIPC-7 | | |-----------------|--| | (36 -REV 12/18) | | ## SECURITIES INVESTOR PROTECTION CORPORATION Mail Code: 8967 P.O. Box 7247 Philadelphia, PA 19170-0001 **SIPC-7** (36-REV 12/18) # **General Assessment Reconciliation** For the fiscal year ended 12131122 (Read carefully the instructions in your Working Copy before completing this Form ) ## **TO BE FILED BY ALL SIPC MEMBERS WITH FISCAL YEAR ENDINGS** 1. Name of Member, address , Designated Examining Authority , 1934 Act registration no. and month in which fiscal year ends for purposes of the audit requirement of SEC Rule 17a-5: | | 1068080
HGP SECURITIES, LLC
2001 Kirby Drive | 7 | | Note: If any of the information shown on the
mailing label requires correction , please e-mail
any corrections to form@sipc.org and so
indicate on the form filed. | | | |-------|---------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|-------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--| | | Suite 701
I | | | Name and telephone number of person to
contact respecting this form. | | | | | Houston, TX 77019 | | _J | Rick Alvarez 770.407.3459 | | | | | | | | | | | | 2. A. | General Assessment (item 2e from page 2) | | | \$5,730 | | | | | Less payment made with SIPC-6 filed (exclude interest)
B.
8/4/22 | | | (3,822 | | | | | Date Paid | | | | | | | | Less prior overpayment applied
C. | | | | | | | | Assessment balance due or (overpayment)
D. | | | 1,908 | | | | | 0
Interest computed on late payment (see instruction E) for ______ days at 20% per annum
E. | | | | | | | | \$1,908
Total assessment balance and interest due (or overpayment carried forward)
F. | | | | | | | | □
G. PAYMENT:
✓ the box
Check mailed to P.O. Box
Total (must be same as F above) | □
Funds Wired
ACQ1,908 | ----------- | | | | | | Overpayment carried forward
H. | \$ ( 0 | ----------- | | | | | | | 3. Subsidiaries (S) and predecessors (P) included in this form (give name and 1934 Act registration number) : | | | | | | The SIPC member submitting this form and the
person by whom it is executed represent thereby
that all information contained herein is true , correct
and complete. | HGP SECURITIES, LLC
(Name of Corporation, Partnership or other organization)
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D | (Authorized Signature)
Managing Director | | | | | (Title)
This form and the assessment payment is due 60 days after the end of the fiscal year. Retain the Working Copy of this form
for a period of not less than 6 years , the latest 2 years in an easily accessible place. | | | | | | cc: Dates:
LLI
Postmarked
Received
Reviewed | | | | | | == LLI | | | | | |-----------|----------------|--------------------------------|---------------|--------------| | >
LLI | Calculations | | Documentation | Forward Copy | | cc:
Cl | c, Exceptions: | | | | | | | Cl) Disposition of exceptions: | | | **1** {19}------------------------------------------------ ## **DETERMINATION OF "SIPC NET OPERATING REVENUES" AND GENERAL ASSESSMENT** Amounts for the fiscal period beginning \_1\_111\_22 \_\_\_\_ \_ and ending \_1213 \_ 1\_122 \_\_\_\_ \_ (to page 1, line 2.A.) | Item No. | Eliminate cents | |-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------| | 2a. Total revenue (FOCUS Line 12/Part IIA Line 9, Code 4030) | \$3,853,369 | | 2b. Additions:
(1) Total revenues from the securities business of subsidiaries (except foreign subsidiaries) and
predecessors not included above. | | | (2) Net loss from principal transactions in securities in trading accounts. | | | (3) Net loss from principal transactions in commodities in trading accounts. | | | (4) Interest and dividend expense deducted in determining item 2a. | | | (5) Net loss from management of or participation in the underwriting or distribution of securities. | | | (6) Expenses other than advertising, printing, registration fees and legal fees deducted in determining net
profit from management of or participation in underwriting or distribution of securities. | | | (7) Net loss from securities in investment accounts. | | | Total additions | 0 | | 2c. Deductions:
(1) Revenues from the distribution of shares of a registered open end investment company or unit
investment trust, from the sale of variable annuities, from the business of insurance, from investment
advisory services rendered to registered investment companies or insurance company separate
accounts, and from transactions in security futures products. | | | (2) Revenues from commodity transactions. | | | (3) Commissions, floor brokerage and clearance paid to other SIPC members in connection with
securities transactions. | | | (4) Reimbursements for postage in connection with proxy solicitation. | | | (5) Net gain from securities in investment accounts. | | | (6) 100% of commissions and markups earned from transactions in (i) certificates of deposit and
(ii) Treasury bills, bankers acceptances or commercial paper that mature nine months or less
from issuance date. | | | (7) Direct expenses of printing advertising and legal fees incurred in connection with other revenue
related to the securities business (revenue defined by Section 16(9)(L) of the Act). | | | (8) Other revenue not related either directly or indirectly to the securities business.
(See Instruction C): | | | dollar for dollar out of pocket expense reimbursement, rental income
(Deductions in excess of \$100,000 require documentation) | 33,108 | | (9) (i) Total interest and dividend expense (FOCUS Line 22/PART IIA Line 13,
__________
Code 4075 plus line 2b(4) above) but not in excess
\$
_
of total interest and dividend income. | | | __________
(ii) 40% of margin interest earned on customers securities
\$
_
accounts (40% of FOCUS line 5, Code 3960). | | | Enter the greater of line (i) or (ii) | 0 | | Total deductions | 33,108 | | 2d. SIPC Net Operating Revenues | \$ 3,820,261 | | 2e. General Assessment@ .0015 | \$5,730 | Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.