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{13}------------------------------------------------
#### 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
#### Securities Not Readily Marketable (continued)
The following table presents information about the Company's assets measured at fair value as of December 31, 2024:
| Assets | Level 1 | Level 2 | Level 3 | | l'otal |
|-------------|---------|---------|---------|----|---------|
| Investments | | | 254,280 | ਹੈ | 254,280 |
| | | | 254,280 | | 254,280 |
The Company did not have any level 1, 2 or 3 assets at December 31, 2023 and did not have any level 1 or 2 assets at December 31, 2024 .
#### Income Taxes
The Company is an LLC and is disregarded for Federal income tax purposes. Accordingly, no provision for income taxes is provided in the financial statements. The company has paid New York State income tax on behalf of its members through a pass-through entity tax election with New York, which is recorded as distributions for 2024.
The Company is required to determine whether a tax position is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any tax related appeals or litigation processes based on the technical merits of the position. The Company files an income tax return in the U.S. federal jurisdiction and may file income tax returns in various U.S. states.
The Company has no uncertain tax positions at December 31, 2024. The Company's tax returns are open for examination for the year 2021 and thereafter.
#### Advertising Costs
Advertising costs are charged to operations during the period in which they are incurred.
#### Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
{14}------------------------------------------------
#### 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
#### Adoption of new accounting standards
The FASB issued (ASU) 2023-07, "Segment Reporting" (Topic 280) which increased disclosure requirements regarding a public entity's reportable segments effective for fiscal years beginning after December 15, 2023. ASU 2023-07 requires incremental line-item disclosures about each reportable segment's expenses as well as profit and losses. The Company has evaluated the guidance there under and has determined that The Company operates as one operating segment. For further discussion refer to Footnote 7, Reportable Segments.
### 3. NET CAPITAL REQUIREMENTS
The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (Rule 15c3-1), which requires the maintenance of a minimum amount of net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. Rule 15c3-1 also provides that equity capital may not be withdrawn or cash dividends paid if the net capital ratio after such withdrawals or payments would exceed 10 to 1. The Company had net capital of \$16,215,651 and excess capital of \$16,115,651 as of December 31, 2024, and a net capital requirement of \$100,000. The Company's net capital ratio as of December 31, 2024 was .0066 to 1.
### 4. CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS
During 2024 one customer accounted for 24% of the Company's revenue. At December 31, 2024, all of the Company's accounts receivable was due from one customer.
### 5. RELATED PARTY TRANSACTIONS
The Company is owned by the Members. The members assume responsibility for all income tax liabilities.
During the year ended December 31, 2024, pursuant to an agreement between the Company and Netrex LLC, an entity in which the founder has an ownership interest, the Company recorded an administrative services fee expense of \$16,500 charged by the affiliate. The administrative fee expense covers fees paid for the affiliate's personnel to provide limited services to the Company. This amount is included in Service agreement expense on the Statement of Income. The affiliate also provided payroll services, benefits and paid jointly incurred expenses on behalf of the Company for which it was reimbursed. The Company incurred \$650,889 of such costs during the year. Included in accounts payable and accrued expenses is \$62,900 payable to the affiliate.
The Company incurred \$330,987 of fees to an entity affiliated with the Company's founder for promotional activities. At December 31, 2024, there is \$0 due to this entity.
{15}------------------------------------------------
#### NETREX CAPITAL MARKETS, LLC NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024
#### 6. LEASE COMMITMENT
The Company leases office space under operating leases with initial non-cancellable terms in excess of one year. 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 measuring the lease liability based on the present value of its future lease payments. The Company uses an incremental borrowing rate 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). Lease costs for lease payments are recognized on a straight-line basis over the lease term.
The Company has elected, for all underlying classes of assets, to not recognize ROU assets and lease liabilities for short-term leases that have a lease term of 12 months or less at lease commencement and do not include an option to purchase the underlying asset that the Company is reasonably certain to exercise. The Company recognizes lease costs associated with short-term leases on a straight-line basis over the lease term. The Company has a variable financial lease of a copier, the amount is immaterial and is included in the Statement of Income as an Office Expense.
Maturity of the Company office lease is June 2025, there is a renewal option for five years. Because the Company is not reasonably certain to exercise this renewal option, the optional period is not included in determining the lease term liability. The amounts due under the non-cancellable office operating lease with initial non-cancelable terms in excess of one year are as follows:
| Year | Lease Payments | Imputed Interest |
|------|----------------|------------------|
| 2025 | \$28,611 | \$261 |
Additional Lease Disclosures:
Weighted Average Remaining Lease Term 0.5 years Weighted Average Discount Rate 4.5%
The Company's office space lease requires it to make variable payments for the Company's proportionate share of operating expenses (i.e. building property taxes, insurance, and utilities). 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 the lease for the year ending December 31, 2024 was \$11,456. The lease is with an affiliated entity of the Company's CEO.
{16}------------------------------------------------
#### NETREX CAPITAL MARKETS, LLC NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024
#### 7. REPORTABLE SEGMENTS
The Company is engaged in a single line of business as a securities broker-dealer, which principally provides public and private companies advice regarding capital raising. 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 3), 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 dividends. 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 profit and loss of the segment are the same as those described in the summary of significant accounting policies.
#### 8. SUBSEQUENT EVENTS
The Company has performed an evaluation of events that have occurred subsequent to December 31, 2024, and through March 27, 2025, the date of the filing of this report. Subsequent to year-end the Company distributed \$15,500,000 to Members from Members equity.
{17}------------------------------------------------
# NETREX CAPITAL MARKETS, LLC
SUPPLEMENTAL INFORMATION
DECEMBER 31, 2024
{18}------------------------------------------------
#### NETREX CAPITAL MARKETS, LLC COMPUTATION OF NET CAPITAL PURSUANT TO RULE 15c3-1 OF THE SECURITIES AND EXCHANGE COMMISSION DECEMBER 31, 2024
| Total members' equity | \$ 16,594,034 |
|-----------------------------------------------------------------------------------------------------|---------------|
| Deductions and/or charges: | |
| Accounts receivable | 60,000 |
| Securities not readily marketable | 254,280 |
| Prepaid expenses | 64,103 |
| Total nonallowable assets | 378,383 |
| Net capital | \$ 16,215,651 |
| Computation of basic net capital requirement:
Minimum net capital requirement, greater of 6 2/3% | |
| of aggregate indebtedness (\$106,559) | ക
7,104 |
| Statutory minimum net capital required | ക
100,000 |
| Net capital requirement (greater of the minimum calculation or | |
| the statutory amount) | ക
100,000 |
| Excess net capital | \$ 16,115,651 |
| Net capital less greater of 10% of aggregate indebtedness or 120% of minimum net | |
| capital | \$ 16,095,651 |
| Computation of aggregate indebtedness: | |
| Due to Parent and accrued expenses | ക
106,559 |
| Percentage of aggregate indebtedness to net capital | 0.66% |
There were no material differences existing between the above computation and the computation included in the Company's corresponding unaudited Form X-17A-5 Part IIA filing. Accordingly, no reconciliation is necessary.
{19}------------------------------------------------
#### --
- - -- -
### 2345678599
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{20}------------------------------------------------
CBI7 CPAs PC
5 Bryant Park 1065 Avenue of the Americas New York, NY 10018
P: 212.790.5700
#### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Members of Netrex Capital Markets, LLC
We have reviewed management's statements, included in the accompanying Exemption Report, in which (1) Netrex Capital Markets, LLC (the "Company") identified the following provisions of 17 C.F.R. § 15c3-3(k) under which the Company claimed an exemption from 17 C.F.R. § 240.15c3-3(k): (2)(i) (the "exemption provision") and (2) the Company stated that the Company met the identified exemption provisions throughout the most recent fiscal year ended December 31, 2024 without exception. The Company's management is responsible for compliance 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 the Company'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 paragraph (k)(2)(i) of Rule 15c3-3 under the Securities Exchange Act of 1934.
CBIZ CPAs P.C.
New York, New York March 27, 2025
{21}------------------------------------------------
#### NETREX CAPITAL MARKETS, LLC EXEMPTION REPORT DECEMBER 31, 2024
NETREX CAPITAL MARKETS, LLC (the "Company") is a registered broker-dealer subject to Rule 17a-5 promulgated by the Securities and Exchange Commission (17 C.F.R §240.17a-5, "Reports to be made by certain brokers and dealers"). This Exemption Report was prepared as required by 17 C.F.R. §240.17a-5(d)(1) and (4). To the best of its knowledge and belief, the Company states the following:
- 1. The Company claimed an exemption from 17 C.F.R. §240.15c3-3 under the following provisions of C.F.R. §240.15c3-3 (k): (2)(i)
- 2. The Company met the identified exemption provisions in 17 C.F.R. §240.15c3-39k} throughout the most recent fiscal year without exception.
NETREX CAPITAL MARKETS, LLC
I, Miles Edwards, affirm that, to the best of my knowledge and belief, this Exemption Report is true and correct.
is (divard
Title: Chief Executive Officer Dated: March 27, 2025
Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.