Heaton Financial, P.C.

HEATON FINANCIAL, PC Firm Brochure This brochure provides information about the qualifications and business practices of Heaton Financial, PC. If you have any questions about the contents of this brochure, please contact us at (435) 865-9991 or by email at: info@heatonfinancial.net. The information in this brochure has not been approved or verified by the United States Securities and Exchange Commission or by any state securities authority. Additional information about Heaton Financial, PC is also available on the SEC’s website at www.adviserinfo.sec.gov. Heaton Financial, PC’s CRD number is: 134578 337 South Main Street, Suite 120 Cedar City, Utah, 84720 (435) 865-9991 1224 South River Road, Suite A103 St. George, Utah 84790 (435) 272-4362 www.heatonfinancial.com kimber@heatonfinancial.net Registration does not imply a certain level of skill or training. Version Date: June 30, 2026 Forms ADV Part 2A and Privacy Notice  Item 2: Material Changes The material changes in this brochure from the last annual updating amendment of Heaton Financial, PC on 03/31/2026 are described below. Material changes relate to Heaton Financial, PC’s policies, practices or conflicts of interests. • Heaton Financial, PC is transitioning to registration with the United States Securities and Exchange Commission from its prior registration at the state level. i  Item 3: Table of Contents Table of Contents Item 2: Material Changes ............................................................................................................................................................................... i Item 3: Table of Contents .............................................................................................................................................................................. ii Item 4: Advisory Business ............................................................................................................................................................................ 1 A. Description of the Advisory Firm ...................................................................................................................................................... 1 B. Types of Advisory Services ................................................................................................................................................................. 1 Investment Supervisory Services ....................................................................................................................................................... 1 Financial Planning................................................................................................................................................................................ 1 Services Limited to Specific Types of Investments .......................................................................................................................... 1 C. Client Tailored Services and Client Imposed Restrictions .............................................................................................................. 3 D. Wrap Fee Programs ............................................................................................................................................................................. 3 E. Amounts Under Management ............................................................................................................................................................ 3 Item 5: Fees and Compensation ................................................................................................................................................................... 4 A. Fee Schedule ......................................................................................................................................................................................... 4 Investment Supervisory Services Fees .............................................................................................................................................. 4 Financial Planning Fees ....................................................................................................................................................................... 4 Hourly Fees ........................................................................................................................................................................................... 4 B. Payment of Fees .................................................................................................................................................................................... 5 Payment of Investment Supervisory Fees ......................................................................................................................................... 5 Payment of Financial Planning Fees .................................................................................................................................................. 5 C. Clients Are Responsible For Third Party Fees .................................................................................................................................. 5 D. Prepayment of Fees.............................................................................................................................................................................. 5 E. Outside Compensation For the Sale of Securities to Clients ........................................................................................................... 5 Item 6: Performance-Based Fees and Side-By-Side Management ........................................................................................................... 5 Item 7: Types of Clients ................................................................................................................................................................................. 6 Minimum Account Size ....................................................................................................................................................................... 6 Item 8: Methods of Analysis, Investment Strategies, and Risk of Investment Loss .............................................................................. 6 A. Methods of Analysis and Investment Strategies ...................................................................................................................... 6 Methods of Analysis ............................................................................................................................................................................ 6 Charting analysis .................................................................................................................................................................................. 6 Fundamental analysis .......................................................................................................................................................................... 6 Technical analysis ................................................................................................................................................................................ 6 Cyclical analysis ................................................................................................................................................................................... 6 Investment Strategies ........................................................................................................................................................................... 6 ii  B. Material Risks Involved ............................................................................................................................................................... 6 Methods of Analysis ............................................................................................................................................................................ 6 Fundamental analysis .......................................................................................................................................................................... 7 Technical analysis ................................................................................................................................................................................ 7 Cyclical analysis ................................................................................................................................................................................... 7 Investment Strategies ........................................................................................................................................................................... 7 C. Risks of Specific Securities Utilized ........................................................................................................................................... 7 Item 9: Disciplinary Information ................................................................................................................................................................. 7 Item 10: Other Financial Industry Activities and Affiliations .................................................................................................................. 8 A. Registration as a Broker/Dealer or Broker/Dealer Representative ...................................................................................... 8 B. Registration as a Futures Commission Merchant, Commodity Pool Operator, or a Commodity Trading Advisor....... 8 C. Registration Relationships Material to this Advisory Business and Possible Conflicts of Interests ................................. 8 D. Selection of Other Advisors or Managers and How This Adviser is Compensated for Those Selections........................ 8 Item 11: Code of Ethics, Participation or Interest in Client Transactions and Personal Trading ........................................................ 9 A. Code of Ethics ............................................................................................................................................................................... 9 B. Recommendations Involving Material Financial Interests ..................................................................................................... 9 C. Investing Personal Money in the Same Securities as Clients .................................................................................................. 9 D. Trading Securities At/Around the Same Time as Clients’ Securities ................................................................................... 9 Item 12: Brokerage Practices ....................................................................................................................................................................... 10 A. Factors Used to Select Custodians and/or Broker/Dealers ................................................................................................. 10 1. Research and Other Soft-Dollar Benefits ............................................................................................................................ 10 2. Brokerage for Client Referrals .............................................................................................................................................. 10 3. Clients Directing Which Broker/Dealer/Custodian to Use ............................................................................................. 10 B. Aggregating (Block) Trading for Multiple Client Accounts ................................................................................................. 10 Item 13: Reviews of Accounts .................................................................................................................................................................... 11 A. Frequency and Nature of Periodic Reviews and Who Makes Those Reviews................................................................... 11 B. Factors That Will Trigger a Non-Periodic Review of Client Accounts................................................................................ 11 C. Content and Frequency of Regular Reports Provided to Clients ......................................................................................... 11 Item 14: Client Referrals and Other Compensation ................................................................................................................................ 11 Economic Benefits Provided by Third Parties for Advice Rendered to Clients (Includes Sales Awards or Other A. Prizes) 10 B. Compensation to Non –Advisory Personnel for Client Referrals ........................................................................................ 12 Item 15: Custody .......................................................................................................................................................................................... 12 Item 16: Investment Discretion .................................................................................................................................................................. 12 Item 17: Voting Client Securities (Proxy Voting) ..................................................................................................................................... 12 Item 18: Financial Information ................................................................................................................................................................... 12 iii  A. Balance Sheet .............................................................................................................................................................................. 12 B. Financial Conditions Reasonably Likely to Impair Ability to Meet Contractual Commitments to Clients ................... 13 C. Bankruptcy Petitions in Previous Ten Years .......................................................................................................................... 13 iv  Item 4: Advisory Business A. Description of the Advisory Firm Heaton Financial, PC is a fee-based investment advisor. This firm has been in business since August 2005, and the principal owner is Kimber W. Heaton, CFP®. B. Types of Advisory Services Heaton Financial, PC (hereinafter “HF”) offers the following services to advisory clients: Investment Supervisory Services HF offers ongoing portfolio management services based on the individual goals, objectives, time horizon, and risk tolerance of each client. HF gathers information about each client’s, investment objectives, financial condition, and risk tolerance and uses this information to aid in the construction and ongoing supervision of a portfolio that matches each client’s specific situation. Investment Supervisory Services include, but are not limited to, the following: • • • Investment strategy • • Asset allocation • Risk tolerance Personal investment policy Asset selection Regular portfolio monitoring HF evaluates the current investments of each client with respect to their risk tolerance levels and time horizon. HF will request discretionary authority from clients in order to select securities and execute transactions without permission from the client prior to each transaction. Clients may instruct us to make certain transactions on a non-discretionary basis. Account Types HF uses the following account types to classify accounts managed under Investment Supervisory Services: Asset Allocation, Fixed Income, Equity, and Trading. Asset Allocation. This account may allocate to any and all of the asset class types as appropriate. We believe that our services are best utilized with the flexibility to allocate assets between all asset classes as the client’s needs, market conditions, and opportunities change. All client accounts will be managed as Asset Allocation, unless another account type is more appropriate and indicated in the Investment Advisory Agreement. Fixed Income. Accounts that are limited to only fixed income investments. This may include all types of bonds, CD’s, and investments into fixed income ETF’s, and mutual funds. Equity. Accounts that only invest in individual equities, including equity ETF’s and equity mutual funds. May temporarily include cash or other cash equivalents. 1  Trading. Accounts that employ frequent buying and selling of securities. Usually using individual equities and/or options. May also hold cash waiting reinvestment. Retirement Account Rollovers HF may recommend that clients roll over assets from an employer-sponsored retirement plan (such as a 401(k) plan) to an individual retirement account ("IRA") managed by HF. When making these recommendations, HF acts as a fiduciary under the Investment Advisers Act of 1940 and, where applicable, under ERISA and the Internal Revenue Code. A recommendation to roll over retirement plan assets creates a conflict of interest because HF generally receives an advisory fee on assets that are rolled into and managed in an IRA, whereas HF generally does not receive compensation for assets that remain in an employer-sponsored retirement plan. As a result, HF has a financial incentive to recommend that retirement plan assets be rolled into an IRA managed by HF. HF addresses this conflict by acting in the client's best interest, providing full and fair disclosure of the conflict, and recommending a rollover only when HF believes it is appropriate based on the client's individual circumstances. Before recommending a rollover, HF encourages clients to consider all available options, including: • Leaving assets in the current employer's retirement plan, if permitted; • Rolling assets into a new employer's retirement plan, if available; • Taking a cash distribution, which may have significant tax consequences and possible penalties; or • Rolling assets into an IRA. In evaluating whether a rollover is appropriate, clients should consider, among other things: • The investment options available under the employer-sponsored retirement plan compared to those available through an IRA; • The fees and expenses associated with the retirement plan and the proposed IRA, including HF's advisory fees; • The services available under each arrangement, including ongoing investment advice and discretionary portfolio management; • Distribution options, required minimum distribution rules, and withdrawal flexibility; Creditor protection under applicable federal and state law; • Whether loans are available under the employer-sponsored retirement plan; • Any unique tax considerations, including the treatment of employer securities held in the plan; and • Any other features or benefits offered by the employer-sponsored retirement plan. 2  HF's recommendation will be based on the client's investment objectives, financial circumstances, retirement needs, and other relevant factors. Clients are under no obligation to engage HF for rollover services or to follow HF's recommendation. Financial Planning HF primarily focuses on portfolio management and investment supervisory services. However, when requested or appropriate we also offer research, financial planning, and other services based on hourly fees. Financial plans and financial planning may include, but are not limited to: investment planning, life insurance; tax concerns; retirement planning; college planning; and debt/credit planning, assistance with investment transactions, assistance with estate issues, and other financial issues. These services may be limited to a specific topic or an individual security or may be comprehensive as needed. Services Limited to Specific Types of Investments HF primary offers investment advice and/or money management on mutual funds, equities, bonds, fixed income, debt securities, insurance products including annuities, ETFs, and government securities. In some cases, we may offer advice on real estate, hedge funds, options, REITs, and private placements. HF may use other securities as well to help diversify a portfolio when applicable. C. Client Tailored Services and Client Imposed Restrictions HF offers the same suite of services to all its clients. However, specific client financial portfolios and their implementation are dependent upon each client’s current situation (income, tax levels, and risk tolerance levels), needs, preferences, and targets. Clients may impose restrictions in investing in certain securities or types of securities in accordance with their values or beliefs. However, if the restrictions prevent HF from properly servicing the client account, or if the restrictions would require HF to deviate from its standard suite of services, HF reserves the right to end the relationship. D. Wrap Fee Programs HF does not participate in any wrap fee programs. E. Amounts Under Management HF has the following assets under management: Discretionary Amounts: Non-discretionary Amounts: Date Calculated: $ 132,079,000 $ 8,060,000 June 2026 3  Item 5: Fees and Compensation A. Fee Schedule Investment Supervisory Services Fees Equity Trading Portfolio Type Fixed Income Asset Allocation $1 - $50,000 1.00% 1.50% 1.75% N/A $50,001 - $100,000 0.85% 1.25% 1.50% N/A $100,001 - $250,000 0.75% 1.00% 1.25% N/A $250,001 - $500,000 0.60% 1.00% 1.15% N/A $500,001 - $1,000,000 0.50% 0.90% 1.00% N/A Above $1,000,000 0.35% 0.75% 0.85% N/A These fees are negotiable and HF may offer to discount the fee based upon the client’s relationship to an HF employee, the complexity of managing the accounts, type of assets held in accounts, the level and frequency of service required by the client, and the total amount of assets under management. Fees are paid quarterly in arrears and clients may terminate their contracts with five days’ written notice. Because fees are charged in arrears, no refund policy is necessary. Clients may terminate their accounts without penalty within 5 business days of signing the advisory contract. Advisory fees are withdrawn directly from the client’s accounts with client written authorization. Retirement Account Rollovers As described in Item 4, if HF recommends that a client roll over assets from an employer- sponsored retirement plan into an IRA managed by HF, HF generally receives an advisory fee on those assets. As a result, HF has a financial incentive to recommend a rollover. Clients should carefully consider the factors discussed in Item 4 before deciding whether to roll over retirement plan assets. Financial Planning Fees Hourly Fees The hourly fee for financial planning services is $200. The fees are negotiable and we may offer a discount to select friends, family, and long-term clients. Fees are paid in arrears upon completion. Because fees are charged in arrears, no refund is necessary. Clients may terminate their contracts without penalty within five business days of signing the 4  advisory contract. A separate letter of engagement may be used to outline the scope of the financial services to be provided. B. Payment of Fees Payment of Investment Supervisory Fees For clients who provide written authorization to their custodian, advisory fees will be withdrawn directly from the client’s accounts. Fees are paid quarterly in arrears. Clients will receive, at least quarterly, a statement from the Custodian that reflects the advisory fee paid to HF. Clients who do not authorize payment of Advisory fees directly from their account will be invoiced and billed directly with payments due upon receipt of the invoice. Clients should verify the accuracy of any fees paid. Payment of Financial Planning Fees Hourly Financial Planning fees are paid in arrears upon completion. Because fees are charged in arrears, no refund is necessary. Fees may be paid by check or cash. C. Clients Are Responsible For Third Party Fees Clients are responsible for the payment of any third-party fees (i.e. custodian fees, mutual fund fees, transaction fees, etc.). Those fees are separate and distinct from the fees and expenses charged by HF. Please see Item 12 of this brochure regarding broker/custodian. D. Prepayment of Fees HF collects its fees in arrears. It does not collect fees in advance. E. Outside Compensation for the Sale of Investments to Clients Neither HF nor its supervised persons accept any compensation for the sale of securities including asset-based sales charges or services fees from the sale of mutual funds. However, representatives of HF may be licensed as insurance agents to sell insurance products and may receive insurance commissions for the placement of those products. The sale of such products creates a conflict of interest that is further described in the conflicts of interest section on page 7 section C. Our primary focus is on the investment advisory business, and we expect that insurance related products will be less than 10% of the representative’s business. Item 6: Performance-Based Fees and Side-By-Side Management HF does not accept performance-based fees or other fees based on a share of capital gains on or capital appreciation of the assets of a client. 5  Item 7: Types of Clients HF generally provides investment advice and/or management supervisory services to the following types of clients: ❖ Individuals ❖ High-Net-Worth Individuals ❖ Corporations or Business Entities Minimum Account Size There is no account minimum except for the Trading portfolio which is $100,000 initial deposit. Item 8: Methods of Analysis, Investment Strategies, and Risk of Investment Loss A. Methods of Analysis and Investment Strategies Methods of Analysis HF’s methods of analysis include charting analysis, fundamental analysis, technical analysis, and cyclical analysis. Charting analysis involves the use of patterns in performance charts. HF uses this technique to search for patterns used to help predict favorable conditions for buying and/or selling a security. Fundamental analysis involves the analysis of financial statements, the general financial health of companies, and/or the analysis of management or competitive advantages. Technical analysis involves the analysis of past market data; primarily price and volume. Cyclical analysis involved the analysis of business cycles to find favorable conditions for buying and/or selling a security. Investment Strategies HF uses long term trading, short term trading, short sales, and options writing (including covered options, uncovered options, or spreading strategies). Investing in securities involves a risk of loss that you, as a client, should be prepared to bear. B. Material Risks Involved Methods of Analysis Charting analysis strategy involves using and comparing various charts to predict long and short-term performance or market trends. The risk involved in solely using this method is that only past performance data is considered without using other methods to 6  crosscheck data. Using charting analysis without other methods of analysis would be making the assumption that past performance will be indicative of future performance. This may not be the case. Fundamental analysis concentrates on factors that determine a company’s value and expected future earnings. This strategy would normally encourage equity purchases in stocks that are undervalued or priced below their perceived value. The risk assumed is that the market will fail to reach expectations of perceived value. Technical analysis attempts to predict a future stock price or direction based on market trends. The assumption is that the market follows discernible patterns and if these patterns can be identified then a prediction can be made. The risk is that markets do not always follow patterns and relying solely on this method may not work long term. Cyclical analysis assumes that the markets react in cyclical patterns which, once identified, can be leveraged to provide performance. The risks with this strategy are two- fold: 1) the markets do not always repeat cyclical patterns and 2) if too many investors begin to implement this strategy, it changes the very cycles they are trying to take advantage of. Investment Strategies Long term trading is designed to capture market rates of both return and risk. Frequent trading, when done, can affect investment performance, particularly through increased brokerage and other transaction costs and taxes. Short term trading, short sales, and options writing generally hold greater risk and clients should be aware that there is a material risk of loss using any of those strategies. Investing in securities involves a risk of loss that you, as a client, should be prepared to bear. C. Risks of Specific Securities Utilized HF generally seeks investment strategies that do not involve significant or unusual risk beyond that of the general domestic and/or international equity markets. However, it may utilize short sales and options writing. Short sales and options writing generally hold greater risk of capital loss and clients should be aware that there is a material risk of loss using any of those strategies. We may also offer advice on real estate, hedge funds, REIT”s and private placement investments. These types of investments involve additional risks of loss due to their nature and their lack of liquidity. Past performance is not a guarantee of future returns. Investing in securities involves a risk of loss that you, as a client, should be prepared to bear. Item 9: Disciplinary Information There are no legal or disciplinary events that are material to a client’s or prospective client’s evaluation of this advisory business or the integrity of our management. 7  Item 10: Other Financial Industry Activities and Affiliations A. Registration as a Broker/Dealer or Broker/Dealer Representative Neither HF nor its representatives are registered as a broker/dealer or as representatives of a broker/dealer. B. Registration as a Futures Commission Merchant, Commodity Pool Operator, or a Commodity Trading Advisor Neither HF nor its representatives are registered as a Futures Commission Merchant, Commodity Pool Operator, or a Commodity Trading Advisor. C. Registration Relationships Material to this Advisory Business and Possible Conflicts of Interests Kimber W. Heaton is a licensed insurance agent. From time to time, he will offer clients advice or products from those activities. Clients should be aware that these services pay a commission and involve a possible conflict of interest, as commissionable products can conflict with the fiduciary duties of a registered investment adviser. HF always acts in the best interest of the client; including the sale of commissionable products to advisory clients. Clients are in no way required to implement the plan through any representative of HF in their capacity as an insurance agent. Commissions earned by an agent may be in addition to fees for financial planning services or fees for portfolio supervisory services on other accounts. However, management or portfolio supervisory fees will never be charged on insurance products that we receive compensation on from the issuer. Neither HF nor its employees have a relationship with any of the following: a broker- dealer, municipal securities dealer, or government securities dealer or broker; another investment adviser of financial planner; a futures commission merchant, commodity pool operator, or commodity trading advisor; a banking or thrift institution; and accountant or accounting firm; a lawyer or law firm; an insurance company or agency; a pension consultant; a real estate broker or dealer; or a sponsor or syndicator of limited partnerships. D. Selection of Other Advisors or Managers and How This Adviser is Compensated for Those Selections HF does not utilize nor select other advisors or third-party managers. All assets are managed by HF management. 8  Item 11: Code of Ethics, Participation or Interest in Client Transactions and Personal Trading A. Code of Ethics We have a written Code of Ethics that covers the following areas: Prohibited Purchases and Sales, Insider Trading, Personal Securities Transactions, Exempted Transactions, Prohibited Activities, Conflicts of Interest, Gifts and Entertainment, Confidentiality, Service on a Board of Directors, Compliance Procedures, Compliance with Laws and Regulations, Procedures and Reporting, Certification of Compliance, Reporting Violations, Compliance Officer Duties, Training and Education, Recordkeeping, Annual Review, and Sanctions. Clients may request a copy of our Code of Ethics from management. B. Recommendations Involving Material Financial Interests HF does not recommend that clients buy or sell any security in which a related person to HF has a material financial interest. C. Investing Personal Money in the Same Securities as Clients From time to time, representatives of HF may buy or sell securities for themselves that they also recommend to clients. This may provide an opportunity for representatives of HF to buy or sell the same securities before or after recommending the same securities to clients resulting in representatives profiting off the recommendations they provide to clients. HF will always transact client business before their own or at the same time when similar securities are being bought or sold. Generally, securities that we recommend to clients are widely traded and orders placed by HF are not likely to have any significant impact on the price of the securities. D. Trading Securities At/Around the Same Time as Clients’ Securities From time to time, representatives of HF may buy or sell securities for themselves at or around the same time as clients. This may provide an opportunity for representatives of HF to buy or sell securities before or after recommending securities to clients resulting in representatives profiting off the recommendations they provide to clients. When able to do so, we will place client orders before or at the same time as orders for representatives of HF. 9  Item 12: Brokerage Practices A. Factors Used to Select Custodians and/or Broker/Dealers The Custodian was chosen based on their relatively low transaction fees and access to mutual funds and ETFs. HF will never charge a premium or commission on transactions, beyond the actual cost imposed by Custodian. 1. Research and Other Soft-Dollar Benefits HF receives access to a trading platform, non-proprietary research, quotes, and economic and other information from the selected custodian. These same services are generally offered by any custodian and were not a factor in the selection of the custodian. HF does not receive proprietary research or soft dollar benefits in connection with client securities transactions. 2. Brokerage for Client Referrals HF receives no referrals from a broker-dealer or third party in exchange for using that broker-dealer or third party. 3. Clients Directing Which Broker/Dealer/Custodian to Use HF will typically recommend that clients use Charles Schwab for custody services and for transactions. In the event that a different custodian or broker-dealer is more suited for a client’s particular needs, the client may elect to use that custodian or broker- dealer. However, if the client wishes HF to place transactions or provide supervisory services on behalf of the client, the chosen broker-dealer must allow HF to have suitable access and trading authority on the account. Clients selecting another broker- dealer may have higher transaction costs or receive less favorable pricing since we may not be able to negotiate the expenses or aggregate client orders. Occasionally HF is able to obtain a security at more favorable terms to the client from a broker-dealer other than the selected Custodian. This is usually related to the purchase of fixed income securities (bonds). If it is in the best interest of our clients, we may arrange to purchase the security at the other broker-dealer and have it delivered to the clients account at the selected Custodian. B. Aggregating (Block) Trading for Multiple Client Accounts To ensure that clients purchasing the same security on the same day receive equal treatment, HF maintains the ability to block trade purchases across accounts. While block trading may benefit clients by purchasing larger blocks in groups, we do not feel 10  that the clients are at a disadvantage due to the best execution practices of our custodian. Item 13: Reviews of Accounts A. Frequency and Nature of Periodic Reviews and Who Makes Those Reviews Managed client investment accounts are reviewed at least monthly. Accounts with a balance of less than $100,000 may be reviewed by either Mitchell C. Mortensen or Kimber W. Heaton. Accounts primarily serviced by Mitchell Mortensen with a balance of over $100,000 will be reviewed at least monthly by both Mitch Mortensen and Kimber Heaton. All other accounts over $100,000 will be reviewed at least monthly by Kimber Heaton. Both Mitch and Kimber are advisers and are instructed to review clients’ accounts with regards to their investment holdings, allocations, and risk. All hourly financial planning services are prepared and reviewed by either Mitch or Kimber. Any comprehensive financial plan will be reviewed by Kimber W. Heaton, CFP®, Managing Member, before delivery to the client. B. Factors That Will Trigger a Non-Periodic Review of Client Accounts Reviews may be triggered by material market, economic or political events, or by changes in client's financial situations (such as retirement, termination of employment, physical move, or inheritance). C. Content and Frequency of Regular Reports Provided to Clients Each client will receive at least quarterly a written report that details the client’s account which will come from the custodian. Clients may request additional reports. Item 14: Client Referrals and Other Compensation A. Economic Benefits Provided by Third Parties for Advice Rendered to Clients (Includes Sales Awards or Other Prizes) HF does not receive any economic benefit, directly or indirectly from any third party for advice rendered to HF clients. 11  B. Compensation to Non –Advisory Personnel for Client Referrals HF does not directly or indirectly compensate any person who is not advisory personnel for client referrals. Item 15: Custody HF does not take custody of client accounts at any time. Custody of client’s accounts is held primarily at the Custodian. However, since HF may withdraw advisory fees directly from clients’ accounts (as described on pages 3&4) HF is considered to have custody in a limited capacity. Item 16: Investment Discretion For those discretionary accounts where HF provides ongoing supervision, the client has given HF written discretionary authority over the client’s accounts with respect to securities to be bought or sold and the amount of securities to be bought or sold. Clients may still place restrictions on the advisor, such as a prohibition or a limitation on investing in specific securities, industries, types of securities, or markets that the client chooses. Clients may also direct HF to make non-discretionary transactions on their behalf. Clients provide HF discretionary authority in the Investment Advisory Agreement contract and in the account application between the client and the custodian. Item 17: Voting Client Securities (Proxy Voting) HF may accept voting authority for client securities at the client’s request. When HF does accept voting authority for client securities, it will always seek to vote in the best interests of its clients. HF maintains Proxy Voting Policy and Guidelines to determine the appropriate course of action in voting client securities that we believe are in the best interest of the client. Clients may direct HF on how to vote client securities by communicating their wishes in writing or electronically to HF. When voting client proxies HF will always hold the interests of the clients above its own interests. Clients of HF may obtain the voting record of HF on client securities by contacting HF at the phone number or e-mail address listed on the cover page of this brochure. Clients may obtain a copy of HF’s Proxy Voting Policies and Guidelines and procedures upon request. Item 18: Financial Information A. Balance Sheet HF does not require or solicit prepayment of fees in advance and therefore is not required to include a balance sheet with this brochure. 12  B. Financial Conditions Reasonably Likely to Impair Ability to Meet Contractual Commitments to Clients Neither HF nor its management have any financial conditions that are likely to reasonably impair our ability to meet contractual commitments to clients. C. Bankruptcy Petitions in Previous Ten Years HF has not been the subject of a bankruptcy petition in the last ten years. 13  337 SOUTH MAIN ST SUITE 120 CEDAR CITY UT 84720 (435)865-9991 1224 S RIVER RD, SUITE A-103 ST. GEORGE, UT 84790 (435) 272-4362 PRIVACY NOTICE Why you are receiving this notice: Federal laws require financial institutions to maintain privacy disclosure policies which we are required to deliver to you periodically. Because we do not sell or share your personal private information, except as described below, no action is required on your part. What types of personal information we collect: In order to serve you, we are required to obtain certain personal non-public information. This generally includes your address, phone number, social security number, birth date and financial information. How we use your personal information: This information is required to open, maintain, and service your accounts and provide other financial services. We have taken steps to safeguard this private information. When products or services are obtained from a third-party service provider such as Charles Schwab, a brokerage firm, or an annuity/insurance company, we may provide that company with certain personal non-public information to open, maintain and service your accounts or provide other services. These companies are also required to safeguard your information and will provide you with their own Privacy Disclosures. We may also be required to respond to court orders or other legal investigations. Other uses: At your request and authorization, we may provide other professionals information on your behalf. This may include your accountant, attorney, or tax preparer. Once you have requested that we share this information, we will continue to provide that information to that firm at their request until you ask us not to. This authorization may be made verbally. How we protect your personal information: We will restrict access to your personal and account information to those employees who need to know that information to provide products or services to you. If you ever close your account(s) or become an inactive customer, we will continue to adhere to the privacy policies and practices as described in this notice. Who is providing this notice: This notice is provided by Heaton Financial, PC, Kimber W. Heaton, CFP, and Mitch Mortensen. Limiting sharing: Because we do not share your personal information for marketing or other purposes, except as described above or as legally required, there is no option to “opt out.” If this changes, we will be required to notify you prior to any sharing your information. Questions: You may call 435-865-9991, or email kimber@heatonfinancial.net if you have any questions regarding this notice. If you would prefer to receive this notice via email in the future, please send a request by email to kimber@heatonfinancial.net. 14