# HGP SECURITIES, LLC X-17A-5 (2025-02-27) — Broker-dealer annual report - Company: HGP SECURITIES, LLC - Form: X-17A-5 - Filed: 2025-02-27 - Period: 2024-12-31 - Accession: 0001449653-25-000001 - CIK: 1449653 - File #: 8-68080 - Type: Broker-dealer - Material weakness: No - Auditor: RUBIO CPA,PC - Auditor location: ATLANTA, GA - Contact: Chris McCord - Phone: 7139557935 - Email: chris@hgp.com - Website: hgp.com - Signed by: Christopher McCord (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1449653/000144965325000001/hgp2024short.pdf --- {0}------------------------------------------------ | SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
ANNUAL REPORTS | | OMB Number: 3235-0123
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hours per response: 12 | | | |----------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--| | | | | | | | | | SEC FILE NUMBER | | | | FORM X-17A-5 | | 8-68080 | | | | PART III | | | | | | | | | | | | | | | | | | | | | | | | MM/DD/YY | | MM/DD/YY | | | | | | | | | | NAME OF FIRM: HGP SECURITIES, LLC | | | | | | TYPE OF REGISTRANT (check all applicable boxes):
Check here if respondent is also an OTC derivatives dealer | | | | | | | | | | | | | | | | | | | | | | | | IX | | 77019 | | | | (State) | | (Zip Code) | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | 713-955-7935 | | chris@hgp.com | | | | (Area Code - Telephone Number) | | (Email Address) | | | | | | | | | | | | | | | | | GA | 30326 | | | | ATLANTA | | | | | | (City) | (State) | (Zip Code) | | | | | 3514 | | | | | | FACING PAGE
2001 KIRBY DRIVE,SUITE 814
(No. and Street) | Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934
FILING FOR THE PERIOD BEGINNING 01/01/2024 AND ENDING 12/31/2024
A. REGISTRANT IDENTIFICATION
Broker-dealer Security-based swap dealer Major security-based swap participant
ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.)
B. ACCOUNTANT IDENTIFICATION
INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
(Name - if individual, state last, first, and middle name) | | | 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. {1}------------------------------------------------ #### OATH OR AFFIRMATION #### |, Christopher McCord swear (or affirm) that, to the best of my knowledge and belief, the . as of financial report pertaining to the firm of HGP SECURITIES,LLC , 2024 , is true and correct. I further swear (or affirm) that neither the company nor any 12/31 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. 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 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. - | | | | 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. - [ (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 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 subsidiated in the statement of financial condition. - @ (q) Oath or affirmation in accordance with 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 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: - \*\* To request confidential treatment of chis filing, see 17 CFR 240.170-5(e)(3) or 17 CFR 240.180-7(d)(2), as applicable. Signature: Title: CEO ![](_page_1_Picture_36.jpeg) {2}------------------------------------------------ # **HGP SECURITIES, LLC** **(A Limited Liability Company)** Financial Statements For the Year End December 31, 2024 {3}------------------------------------------------ # RUBIO CPA, PC CERTIFIED PUBLIC ACCOUNTANTS 3500 Lenox Road NF Suite 1500 Atlanta, GA 30326 770-690-8995 #### 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, 2024, 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, 2024, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. #### Basis for Opinion These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws 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 III has been subjected to audit procedures performed in conjunction with the audit of the Company's financial statements. The supplemental information is the Company's management. Our audit procedures included determining whether the information in Schedules to the financial statements or the underlying 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 27, 2025 Atlanta, Georgia ![](_page_4_Picture_3.jpeg) {5}------------------------------------------------ ## **HGP Securities, LLC (A Limited Liability Company) Statement of Financial Condition December 31, 2024** | ASSETS | | |--------------------------------------------------------------------|-----------------| | Cash | \$
99,446 | | Accounts Receivable | 167,939 | | Due from related party | 4,695 | | Property and equipment,net of accumulated depreciation of \$46,167 | 43,097 | | Securities Owned | 1,836,504 | | Right of use asset | 22,663 | | Prepaid Expenses | 44,266 | | Deposits | 6,367 | | TOTAL ASSETS | \$
2,224,977 | | LIABILITIES AND MEMBER'S EQUITY | | | LIABILITIES | | | Accounts Payable | \$
4,782 | | Accrued compensation | 25,697 | | Due to related party | 45,000 | | Lease Liability | 23,827 | | Deferred Revenue | 93,000 | | TOTAL LIABILITIES | \$
192,306 | | | | | MEMBER'S EQUITY | 2,032,671 | | TOTAL LIABILITIES AND MEMBER'S EQUITY | \$
2,224,977 | {6}------------------------------------------------ # **NOTE 1- DESCRIPTIONOFOPERATIONSANDSUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES** #### Description of Operations HGP Securities, LLC (the Company) was formed on April 9, 2008 and h as b een 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 its 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 from advisory agreements 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 agreements 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 deferred revenue. 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 \$185,500 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. {7}------------------------------------------------ # **NOTE 1- DESCRIPTIONOFOPERATIONSANDSUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(continued)** 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 trends. 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 money market funds. The securities owned are valued at fair value. Proprietary securities transactions are reported on the trade date as if they had settled. ## **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, 2024, the Company had net capital of \$1,729,577 which was \$1,718,267 in excess of its required net capital of \$11,310. The Company's ratio of aggregate indebtedness to net capital was . 10 to 1.0 as of December 31, 2024. #### **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, 2024, 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 5% 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. {8}------------------------------------------------ ## **NOTE 4 –LEASE COMMITMENTS (continued)** Maturity of the lease liability under the non-cancelable operating lease is as follows: | | Year
Ending
December | 31, | | | |-----------------|--------------------------------------|-----|--------|--------------| | | 2025 | | 24,175 | | | | Total | \$ | 24,175 | | | | Total undiscounted lease
payments | | | \$
24,175 | | Less
imputed | interest | | | (348) | | Total
lease | liability | | | \$
23,827 | 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, 2024 was approximately \$77,068. The lease liability exceeds the ROU asset due to an unamortized lease incentive. Pursuant to a month-to-month sublease agreement, the Company recognized rental income during 2024 from one related entity in the amount of approximately \$18,780 that has been included in other revenue within the accompanying Statement of Operations. The due from related party as of December 31, 2024, in the amount of \$4,695 arises from the Company's sublease agreement with the related entity. ## **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. Employer contributions to the plan totaling approximately \$56,025 were expensed by the Company for 2024. #### **NOTE 6- SUBSEQUENT EVENTS** Subsequent events were evaluated through the date the financial statements were issued. {9}------------------------------------------------ #### **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, 2024. ## **NOTE 8- RELATED PARTY TRANSACTIONS** See Note 4 for a description of a sublease agreement in place with a related party. An owner of the Company's member paid for operating expenses of the Company in the amount of \$45,000 during the year ended December 31, 2024. This amount has yet to be reimbursed by the Company as of December 31, 2024 and is included in due to related party in the accompanying statement of financial condition. Financial position and results of operation could differ from the amounts in the accompanying financial statements if these transactions did not exist. #### **NOTE 9- CUSTOMER CONCENTRATIONS** During 2024, the Company had two customers that accounted for approximately 8 6% of total revenues. Approximately 94% of accounts receivable at December 31, 2024 is due from two customers. ## **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 inputs 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.) {10}------------------------------------------------ #### **NOTE 10 – FAIR VALUE MEASUREMENT (continued)** The following table presents the Company's fair value hierarchy for those assets and liabilities: | | Fair Value Measurements
12/31/2024 | | Level 1
Valuation | Level 2
Valuation | | Level 3
Valuation | | |-------------------|---------------------------------------|-----------|----------------------|----------------------|---|----------------------|---| | Securities owned: | | | | | | | | | Money Market Fund | \$ | 1,836,504 | \$
1,836,504 | \$ | - | \$ | - | # **NOTE 11- SEGMENT REPORTING** The Company has one reportable segment: investment banking. The Company has identified its chief executive officer as the chief operating decision maker ("CODM"), who uses net income to evaluate the results of the business, predominantly in the forecasting process, to manage the Company. Additionally, the CODM uses excess net capital (see Note 2), which is not a measure of profit and loss, to make operational decisions while maintaining capital adequacy, such as whether to reinvest profits or pay distributions. The Company's operations constitutes 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. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.