# KIMELMAN & BAIRD, LLC X-17A-5 (2021-04-09) — Broker-dealer annual report - Company: KIMELMAN & BAIRD, LLC - Form: X-17A-5 - Filed: 2021-04-09 - Period: 2020-12-31 - Accession: 0000055798-21-000004 - CIK: 55798 - File #: 8-13028 - Material weakness: No - Auditor: LMHS, P.Co - Auditor location: Norwell, MA - Contact: Patricia Kimelman - Phone: 212-686-0021 - Email: form@slpc.org - Website: slpc.org - Signed by: Sheila Baird (Chief Compliance Officer) Original filing: https://www.sec.gov/Archives/edgar/data/55798/000005579821000004/kandbannualreport2020.pdf --- {0}------------------------------------------------ # **2020** ### REPORT PURSUANT TO SEC RULE 17a-5 For the year ended December 31, 2020 ## **KIMELMAN & BAIRD, LLC** FINANCIAL STATEMENTS AND ACCOMPANYING SUPPLEMENTAL IN FORMATON {1}------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 #### ANNUAL AUDITED REPORT FORM X-17A-5 PART III OMB APPROVAL OMB Number: 3235-0123 Expires: October 31, 2023 Estimated average burden hours per response.. . . . . . . 12.00 | SEC FILE NUMBER | |-----------------| | 8-13028 | FACING PAGE Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder | REPORT FOR THE PERIOD BEGINNING 01/01/2020 | AND ENDING 12/31/2020 | | | | |-------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------|---------|------------------------------------|--| | | MM/DD/YY | | MM/DD/YY | | | | A. REGISTRANT IDENTIFICATION | | | | | NAME OF BROKER-DEALER: Kimelman & Baird, LLC
ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | OFFICIAL USE ONLY
FIRM I.D. NO. | | | | | | | | | 800 Third Avenue, Suite 2300 | | | | | | New York | (No. and Street)
NY | | 10022 | | | (City) | (Stalc) | | (Zip Code) | | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
Shella Balrd | | | (212) 686-0021 | | | | | | (Area Code - Telephone Number) | | | | B. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* | | | | | | LMHS, P.C. | | | | | | | (Name - if individual, state last, first, middle name) | | | | | 80 Washington Street S | Norwell | MA | 02061 | | | (Address) | (City) | (State) | (Zip Codc) | | | CHECK ONE:
Certified Public Accountant
Public Accountant | Accountant not resident in United States or any of its possessions.
FOR OFFICIAL USE ONLY | | | | | | | | | | \*Clains for exemption from the requirement that the amual report be covered by the opinion of an independent public accomtunt must be supported by a statement of facts and circumstances relied on as the basis for the exemption. See Section 240.17a-5(e){2} > Potential persons who are to respond to the collection of informalion contained in this form are not required to respond unless the form displays a currently valid OMB control number. SEC 1410 (11-05) {2}------------------------------------------------ #### OATH OR AFFIRMATION | I, Sheila Baird | , swear (or affirm) that, to the best of | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | ~~~~~~~~ | my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the fil'm of
Klmelman & Baird, LLC ____________________________ ~~ ________________________________________ , as | | of December 31 | , are true and correct. I further swear (or affirm) that
, 20 20 | | | neitller the company nor any partner, proprietor, principal officer or director lias any proprietary inlerest ill any account | | classified solely as that of n Clistomer, except as follows: | | | | | | | | | | | | | | | | Chief Compliance Officer | | | Title | | | | | | PATRICIA KIMELMAN
NOTARY PUBlIC·STATE OF NEW YORK | | NotRry Public | No. 011<14617649 | | This report •• contains (check all applicable boxes):
EI (a) Facing Page. | QualUled In New York Counly | | EI (b) Statement of Financial Condition. | MV Commission Explrei Oalober 81 ,-21/f3
)."'L \ | | | ~ (c) Statement of Income (Loss) or, if there is other comprehensive income in the pcriod(s) presented, a Statement | | ofCompl'ehensive Income (as defined in §210.1-02 of Regulation S-X). | | | (d) Statement ofCh.nges in Financial Condition.
_' | | | (e) Statement of Changes in Stockholders' Equity or Partners' 01' Sole Proprietors' Capital.
•
(I) Statement of Changes in Liabilities Subordillated to Claims of Creditors. | | | (g) Computation of Net Capital. | | | (h) Computation for Determination of Reserve Requirements PUl'suant to Rule 15c3-3. | | | v
(i) Information Relating to the Possession. or Control Requirements Under Rule 15c3-3.
~
o | | | | (j) A Reconciliation, illcluding appropriatc explRnatioll ofthe Computation of Net Capital Under Rule 15c3-1 and the
Computation fol' Determination of tho Reserve Requirements Under Exhibit A of Rule 15c3-3. | | o | (k) A Reconciliation between the uudited and unaudited Statements of Financial Condition with respect to methods of | | consolidation. | | | ~ (I) An Oalh or Affirmation. | | | EI (m) A copy of the SIPC Supplemental Report. | | | | D (n) A report describing any material inadequacies found to exist 01' found to have existed since the date afthe prcviollS audit. | | **FoJ' comlitiolM' of confidential treatment of c.'ertalll portiolls qf this filing. see section 240.17a-5(e)(3). | | {3}------------------------------------------------ #### Table of Contents PAGE | | Report of Independent Registered Public Accounting Firm | 1 | |----------------------------------|-----------------------------------------------------------------------|-----| | Statement of Financial Condition | | 2 | | Statement ofIncome | | 3 | | | Statement of Changes in Members' Equity | 4 | | Statement of Cash Flows | | 5 | | Notes to Financial Statements | | 6-9 | | Supplementary Information | | | | Schedule I | Statement of Net Capital | 10 | | Schedule II | Determination of Reserve Requirements | 11 | | Schedule III | Information Relating to Possession or Control | 11 | | | Report of Independent Registered Public Accounting Firm | 12 | | Commission | Exemption Report Pursuant to Rule 17a-5 ofthe Securities and Exchange | 13 | | | | | Independent Accountants' Report on Applying Agreed-Upon Procedures Related to an Entity's SIPC Assessment Reconciliation 14 | SIPC 7 General Assessment Reconciliation for the fiscal year | 15 -
16 | |--------------------------------------------------------------|------------| | Ended 12-31-2020 | | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) *Report of Independent Registered Public Accounting Firm* To The Members Kimelman & Baird, LLC New York, NY 10022 #### *Opinion on the Financial Statements* We have audited the accompanying statement of financial condition of Kimel man & Baird, LLC as of December 31,2020, and the related statements of income, changes in members' equity, and cash flows for the year then ended, and the related notes and schedules (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of Kimelman & Baird, LLC as of December 31, 2020, and the results of its operations and its cash flows for the year ended December 31, 2020, in confonnity with accounting principles generally accepted in the United States of America. #### *Basis for Opinion* These financial statements are the responsibility of the entity's management. Our responsibility is to express an opinion on these financial statements based on our audit. We are a public accounting finn registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to Kimelman & Baird, LLC in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the peAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perfonn the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fmud, and perfonning 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 provide a reasonable basis for our opinion. #### *Suppiementailn/ormatioll* The supplemental information appearing on pages 10 and 11 has been subjected to audit procedures performed in conjunction with the audit of Kimelman & Baird, LLC's financial statements. The supplemental information is the responsibility of Kimelman & Baird, LLC management. Our audit procedures included determining whether the supplemental infonnation reconciles to the financial statements or the underlying accounting and other records, as applicable, and perfonning procedures to test the completeness and accuracy of the information presented in the supplemental infomlation. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its foml and content, is presented in conformity with 17 C.P.R. §240.17a-5. In our opinion, the supplemental infonnation is are fairly stated, in all material respects, in relation to the financial statements as a whole. )fl? *lI-.s;* Po c- LMHS, P.c. We have served as Kimelman & Baird, LLCs auditor since 2020. Norwell, MA March 29, 2021 ![](_page_4_Picture_16.jpeg) {5}------------------------------------------------ #### **KIMELMAN & BAIRD, LLC Statement of Financial Condition December 31, 2020** #### ASSETS | Current Assets | | |---------------------------------------|------------------| | Cash and cash equivalents | \$
673,608 | | Clearing firm deposit | 50,000 | | Commission receivable | 9,739 | | Advisory fees receivable | 27,117 | | Securities owned
Prepaid expenses | 80,727
48,523 | | | | | Total Current Assets | \$
889,714 | | Other Assets | | | Security deposit | \$
76,648 | | Right of use of operating lease | 405,036 | | Other assets | 47,065 | | Total Other Assets | \$
528,749 | | Total Assets | \$
1,418,463 | | LIABILITIES AND MEMBERS' EQUITY | | | Liabilites: | | | Accounts payable | \$
18,526 | | Clearing charge payable | 3,436 | | Accmed expenses | 89,834 | | Lease liability | 405,036 | | | | | Total Liabilities | \$
516,832 | | Members' Equity | \$
901,631 | | Total Liabilities and Members' Equity | \$
1,418,463 | {6}------------------------------------------------ #### **Statement of Income For the Year Ended December 31, 2020** | REVENUE | | |--------------------------------------------------------|--------------------------------------| | Commission
Investment advisory fees
Other income | \$
104,371
4,227,753
34,886 | | Total revenue | \$
4,367,010 | | EXPENSES: | | | Portfolio management expenses | \$
144,458 | | Employee compensation | 433,254 | | Guaranteed payments | 848,796 | | Custodian fees | 133,300 | | Retirement plan | 39,635 | | Quotes | 115,863 | | Rent expense | 359,841 | | Insurance | 78,483 | | Professional fees | 219,121 | | Auto expense | 64,026 | | Clearing fees | 25, I 0 I | | Computer expense | 91,171 | | Contributions | 50,532 | | Travel and entertainment | 29,512 | | Other expenses | 196,656 | | Total expenses | \$
2,829,749 | | NET INCOME BEFORE INCOME TAXES | \$
1,537,261 | | Unincorporated business tax | 84,785 | | NET INCOME | \$
1,452,476 | {7}------------------------------------------------ #### **Statement of Changes in Members' Equity For the Year Ended December 31, 2020** | | Total
Members'
Equity | | | |-----------------------------------|-----------------------------|--|--| | Beginning balance January I, 2020 | \$
728,008 | | | | Net Income | 1,452,476 | | | | Distributions to members | (1,278,853) | | | | Ending balance December 31, 2020 | \$
901,631 | | | *The accompanying notes are an integral part of these financial statements* {8}------------------------------------------------ #### **Statement of Cash Flows December 31, 2020** #### CASH FLOWS FROM OPERATING ACTIVITIES | Net Income
Adjustments to reconcile net income to net cash
provided/(used) by operations: | \$
1,452,476 | |-------------------------------------------------------------------------------------------------|-------------------| | (Increase) decrease in:
Commission and advisory fee receivable
Other assets/ prepaid | 3,492
(41,387) | | Increase (decrease) in:
Accounts payable and accrued expenses | 24,637 | | Total adjustments | (13,258) | | Net cash provided by operating activities | \$
1,439,218 | | FINANCING ACTIVITIES | | | Member's distributions | \$
(1,278,853) | | Net cash used by financing activities | (1,278,853) | | NET INCREASE IN CASH | 160,365 | | beginning of year
Cash - | 513,243 | | end of period
Cash - | \$
673,608 | #### SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION \$ | SCHEDULE OF NONCASH INVESTING AND FINANCING TRANSACTIONS: | | |-----------------------------------------------------------|------------| | Right of Use Assets | \$ 405,036 | | Obligations Under Noncancellable Lease Obligations | (405,036) | {9}------------------------------------------------ #### Note 1: Organization and Nature of Business Kimelman & Baird, LLC (the "Company") is a Limited Liability Company organized under the laws of the State of New York. The Company is a broker-dealer and investment advisor registered with the Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA). The Company operates under the exemptive provision of SEC Rule 15c3-3(k)(2)(ii), which provides an exemption for broker dealers whose customer transactions are cleared through another broker-dealer on a fully disclosed basis. #### Note 2: Summary of Significant Accounting Policies #### Basis of Presentation The accompanying financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America. The Company uses the accrual method of accounting. #### Use of 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 as well as the reported amount of revenues and expenses during the reporting period. Actual results could differ from these estimates. #### Cash and Cash Equivalents The Company considers all highly liquid instruments with an original maturity of three months or less when purchased to be cash equivalents. Amounts maintained with the bank are insured by the Federal Deposit Insurance Corporation (FDIC). The Company has, on occasion, exceeded the insured balance during the year. #### Due from Broker The Company maintains a clearing deposit account with its clearing broker National Financial Services, LLC. As of December 3 1,2020 the Company had a deposit of \$50,000 with National Financial Services, LLC. {10}------------------------------------------------ #### Note 2: Summary of Significant Accounting Policies (continued) #### Accounts Receivable Management considers all amounts recorded as accounts receivables to be fully collectible; accordingly no allowance for doubtful accounts is required. All amounts are due from various entities and financial institutions. Investment advisory fees receivable are collected quarterly in advance and no allowance is provided based for cancellation of advisory agreements. If accounts become uncollectable, they will be charged to operations when that determination is made. #### Property and Improvements Property and improvements are stated at cost, net of accumulated depreciation. Assets are depreciated using the Accelerated and Modified Accelerated Cost Recovery System over the estimated useful life of the assets. Application of these methods does not differ materially from generally accepted accounting principles. #### Revenue Recognition Securities transactions are recorded on a trade date basis with related commission income also recorded on a trade date basis. The Company recognizes commissions at the end of each month, after receiving confirmation from the clearing firm of the amount due to the Company (Satisfied at Point in Time). Investment advisory fees are realized quarterly and are recognized on a pro-rata basis (Satisfied Over Time). #### Accounting Standards Adopted in 2019 In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016- 02, "Leases (Topic 842)," which supersedes previous leasing guidance in Topic 840. Under the new guidance, lessees are required to recognize lease right-of use assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the statement of income. The F ASB has since issued additional related ASU amendments to clarify and improve certain aspects of the guidance and implementation of Topic 842. In accordance with the guidance as amended, the Company has elected to apply the new standard effective as of January 1, 2019. After implementing this ASU, the statement of financial condition reflects both lease liabilities and right-of-use assets. In addition, the Company recognizes lease expense on a straight-line basis within the expense section of the statement of income. See "Note 7, Lease Commitments" for additional disclosure regarding the Company's leases. {11}------------------------------------------------ #### Note 3: Securities Owned As of December 31, 2020, the Company owns securities which are stated in the statement of financial condition at fair market value of \$80,727. #### Note 4: Income Taxes and Limited Liability Company Fees Under current law, no federal or state income taxes are paid directly by limited liability companies. All items of income and expense of the Company are allocable to and reportable by its members on their respective income tax returns. Accordingly, no provision is made in the accompanying financial statements for federal or state income taxes. The Company is subject to New York City Unincorporated Business Tax. For the year ended December 31, 2020, the provision for New York City Unincorporated business tax was \$84,785. #### Note 5: Profit Sharing Plan (Keogh) The Company's Profit-sharing plan covers all eligible employees. Contributions to the plan are determined by the Company and subject to IRS guidelines. Actual contribution to the plan amounting to \$39,635 for the year 2019 was made during 2020. Accruals made in 2020 towards the contribution were \$39,925 and were reflected in the financial statements as of December 31, 2020. #### Note 6: Net Capital Requirements Pursuant to the Basic Uniform Net Capital provIsions of the Securities and Exchange Commission, the Company is required to maintain a minimum net capital, as defined, in such provision. Further, the provisions require that the ratio of aggregate indebtedness, as defined, to net capital shall not exceed 15 to 1. Net capital and the related net capital ratio may fluctuate on a daily basis. At December 31, 2020 the Company had net capital and net capital requirements of \$716,365 and \$7,453 respectively. The Company's net capital ratio was 0.16 to 1 which is less than 15 to 1. #### Note 7: Lease Commitments The Company leases office space under an operating lease agreement that commenced on February 1,2017 and ends April 30, 2022. The lease agreement includes an annual rental rate of \$306,592 with annual increases based on real estate tax adjustments. A security deposit of \$76,648 and the first month's lease of\$28,816 were recorded on December 30, 2016. Annual remaining lease payments per terms of the lease are: | Year | Lease Payment | PV Factor 4.24% | PV of Payment | |-------|---------------|-----------------|---------------| | | | | | | 2021 | 331,865 | 0.92039 | 305,445 | | 2022 | 112,788 | 0.88299 | 99,591 | | Total | | | 405,036 | {12}------------------------------------------------ #### Note 7: Lease Commitments (Continued) Rent expense is recorded on a straight-line basis over the term of the lease, with the difference to the actual amount paid recorded as deferred rent. Rent expense pursuant to this lease charged to operations for the year ended December 31, 2020 amounted to \$324,826. Beginning on January I, 2019, the Company has recorded right-of-use assets and lease liabilities in accordance with ASU 2016-02. The Company is using the term of the current lease agreements in its right-of-use asset calculations. As the interest rate implicit in the lease was not readily available, the Company used its estimate of its incremental borrowing rates to determine the discount rates used in the asset calculations. The Company used 4.24%. #### Note 8: Fair Value The Company adopted Financial Accounting Standards ("SFAS") ASC 820 for financial instruments measured at fair value on a recurring basis. The Company held an equity position valued at Level I, whose valuation was based on quoted prices in active markets for identical assets or liabilities that an entity has the ability to access. An amount of \$80,727 was recorded in its financial statements. #### Note 9: Revenue Recognition from Contracts with Customers The following disclosures discuss the Company's revenue recognition accounting policies as governed by Topic 606, Revenue from Contracts with Customers. Most of the Company's revenue arises from contracts with customers. That revenue can be separated into two main categories. Transactional revenue is recognized at the settlement date or trade date of the product sale, which is when performance obligations have been satisfied. Asset under management (AUM) revenue, is recognized periodically over the life of the contract or relationship based on a fee rate that is applied to the average balance of managed assets over that period. Advisory fees are generally recognized over time as services are rendered and based either on a percentage of the market value of the assets under management (AUM revenue) or fixed based on the services provided to the client. The Company's execution of these services represents its related performance obligations. Quarterly fees are collected at the beginning of the period from the client's account and recognized ratably over the related billing period as the performance obligation is fulfilled. For fees that are fixed based on services provided to the client, the Company recognizes revenue when its performance obligations are satisfied. #### Note 10: Subsequent Events The Company has evaluated all material subsequent events through the date at which the financial statements were available to be issued on March 29,2021, and determined that there are no events which took place that would have a material impact on its financial statements. {13}------------------------------------------------ #### **Statement of Net Capital Schedule I For the Year Ended December 31,2020** | | Focus 12/31/20 | Audit 12/31/20 | Change | |------------------------------------------------|----------------|----------------|---------------| | Members' equity, December 31, 2020 | \$
901,631 | \$
901,631 | \$ | | Subtract: Non allowable assets: | | | | | Investments | | | | | Other assets | 173,320 | 172,236 | 1,084 | | Tentative net capital | \$
173,320 | \$
172,236 | \$
1,084 | | Haircuts: | 11,946 | 11,946 | | | NET CAPITAL | \$
716,365 | \$
717,449 | \$
(1,084) | | Minimum net capital | (7,453) | (7,453) | | | Excess net capital | \$
708,912 | \$
709,996 | \$
(1,084) | | Aggregate indebtedness | \$
111,796 | \$
111,796 | | | Ratio of aggregate indebtedness to net capital | 0.16tol | 0.16to I | | There was a minor difference of\$I,084 noted between the Audit and Focus repotts a December 31, 2020 related to valuation of investments. {14}------------------------------------------------ #### December 31, 2020 #### Schedule II Determination of Reserve Requirements Under Rule 15c3-3 of the Securities and Exchange Commission The Company is exempt from the Reserve Requirement of computation according to the provision of Rule 15c3-3(k)(2)(ii) #### Schedule **III** Information Relating to Possession or Control Requirements Under Rule 15c3-3 The Company is exempt from the Rule 15c3-3 as it relates to Possession and Control requirements under the (k)(2)(ii) exemptive provision. {15}------------------------------------------------ ![](_page_15_Picture_0.jpeg) #### *Report of Independent Registered Public Accounting Firm* To The Members Kimelman & Baird, LLC New York, NY 10022 We have reviewed management1s statements, included in the accompanying exemption report, in which (I) Kimelman & Baird, LLC identified the following provisions of 17 C.F.R. § 15c3-3(k) under which Kimelman & Baird, LLC claimed an exemption from 17 C.F.R. §240.15c3-3(k)(2)(ii) (the "exemption provisions") and (2) Kimelman & Baird, LLC stated that Kimelman & Baird, LLC met the identified exemption provisions throughout the most recent year without exception. Kimelman & Baird, LLC'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 Kimelman & Baird, 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 paragraph (k)(2)(ii) of Rule 15c3-3 under the Securities Exchange Act of 1934. *j,/?/* N-~;C! C. LMHS, P.c. Norwell, MA March 29, 2021 ![](_page_15_Picture_10.jpeg) ![](_page_15_Picture_11.jpeg) {16}------------------------------------------------ #### 800 Third Avenue - Suite 2300, New York, NY 10022 #### Assertion Regarding Exemption Provision #### Gentlemen: We, as members of management of Kimelman & Baird, LLC (Hthe Company"), are responsible for compliance with the annual reporting requirements under Rule 17a-5 of the Securities Exchange Act of 1934. Those requirements compel a broker or dealer to file annual repolts with the Securities Exchange Commission (SEC) and the broker or dealer's designated examining authority (DEA). One of the reports to be itlcluded in the annual filing is an exemption report prepared by an independent public accountant based upon a review of asserlions provided by the broker 01' dealer. Pursuant to that requirement, the management of the Company hereby makes the following assertions: #### *Idelltified Exemptioll Provlsioll:* The Company claims exemption from the custody and reserve provisions of Rule 15c-3-3 by operation under the exemption provided by Rule 15c3-3, Paragraph (k)(2)(ii). #### *Statemclltl'egardillg Meetillg Exemptioll Provisioll:* The Company met the identified exemption provision without exception throughout the period covering January 1,2020 through December 31, 2020. KIMELMAN & BAIRD, LLC By: Sheila Baird Member/CCO {17}------------------------------------------------ ![](_page_17_Picture_0.jpeg) *Report a/Independent Registered Public Accounting Firm* To The Members Kime1man & Baird, LLC New York, NY 10022 We have perfonned 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 emunerated below, and were agreed to by Kimelman & Baird, LLC (Company) and the SIPC, solely to assist you and the SIPC in evaluating the Company's compliance with the applicable instructions of the General Assessment Reconciliation (Fonn SIPC-7) for the year ended December 31. 2020. Management of the Company is responsible for its Fonn SlPC~ 7 and for its compliance with those requirements. This agreed-upon procedures engagement was conducted in accordance with the standards of 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 petformed and our findings are as follows: - I. Compared the listed assessment payments in Fonn SIPC-7 with respective cash disbursement records entries noting no differences; - 2. Compared the Total Revenue amounts reported on the Annual Audited Report Fonn X-17A-5 Part III for the year ended December 31, 2020, with the Total Revenue amounts reported in Foml SIPC-7 for the year ended December 31, 2020 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 Fonn SIPC-7 and in the related schedules and working papers supporting the adjustments noting no differences; and - 5. Compared the amount of any overpayment applied to the current assessment with the Form SIPC-7 on which it was originally computed noting no differences. We were not engaged to, and did not conduct an examination or a review, the objective of which would be the expression of an opinion or conclusion, respectively, on the Company's compliance with the applicable instructions of the Form SIPC-7 for the year ended December 31, 2020. 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 the Company and the slPe and is not intended to be and should not be used by anyone other than these specified parties. LMHS, P.c. Norwell, MA March 29, 2021 ![](_page_17_Picture_17.jpeg) {18}------------------------------------------------ | SIPC-7 | SIPC- | | | | |---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------| | | General Assessment Reconciliation
(36-REV 12/18) | | | | | | (Read carefully the instructions in your Working Copy before completing this Form)
TO BE FILED BY ALL SIPC MEMBERS WITH FISCAL YEAR ENDINGS
t. Name of Member, address, Designated Examining Authority, 1934 Act registration no. and month in which lists is and stor
purposes of the audit requirement of SEC Rule 17a-5: | For the fiscal year ended 12/31/2020 | | | | | 8*16**************************************************************************************************************************************************************************
13028 FINRA DEC
KIMELMAN & BAIRD LLC
800 3RD AVE STE 2300
NEW YORK, NY 10022-7779 | | Note: If any of the information.shown on the
mailing label requires correction, please e-mail
any corrections to form@slpc.org and so
indicate on the form filed.
Name and telephone number of person to
contact respecting this form.
SHEILA DAIRD 212 686, 102 | | | | 2. A. General Assessment (item 2e from page 2) | | | | | | B. Less payment made with SIPC-6 liled (exclude Interest)
7-30-2020
Date Paid
C. Less prior overpayment applied
D. Assessment balance due or (overpayment)
E. Interest computed on late payment (see Instruction E) for__________________________________________________________________________________________________________________
F. Total assessment balance and interest due (or overpayment carried forward)
G. PAYMENT: V the box
Check mailed to P.O. Box & Funds Wired O
ACH (1
Total (must be same as F above)
H. Overpayment carried forward
3. Subsidiarles (S) and prodecessors (P) included in this form (give name and 1934 Act registration number); | 406.
க் | | 3 11 21 5
3,406, do
406,20 | | | | | | | | and complete. | The SIPC member submitting this form and the
person by whom it is executed represent thereby
that all information contained herein is true, correct
This form and the assessment payment is due 60 days after the end of the Working Copy of this form
for a period of not less than 6 years, the latest 2 years in an easily accessible place. | IMELMAN
SHEILA | (Namo apprailon, Parlnership or other organizallon)
(Authorized Signaturo)
O AIRO
(TIIIs) | MEMOSK | | Dales: | Reviewed
Postmarked
Received | | | | | SIPC REVIEWER | Calculations _
Documentation __ | | | Forward Copy . | | Exceptions: | | | | | | | Disposition of exceptions: | | | | . 1 {19}------------------------------------------------ | ・ | | r ' | |---|--|-----| | | | | | | | | | | | | | | | | | | | | #### DETERMINATION OF "SIPC NET OPERATING REVENUES" AND GENERAL ASSESSMENT | | | AND GENERAL ASSESSMENT | Amounts for the fiscal perlod | |-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | | beginning 1/1/2020
and ending 12/31/2020 | | Item No.
2a. Total revenue (FOCUS Line 12/Part IIA Line 9, Code 4030) | | | Ellminate cents
ે છે. વિત્તર પ્રતિષ્ઠા જિલ્લાના અને અને અને અને અને અને અને અને અને અને અને અને અને અને અને અને અને અને અને અને અને અને અને અને અને અને અને અને અને અને અને અને અને અને અને અ | | 2b. Addillons:
(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 frading accounts. | | | | | (3) Net loss from principal transactions in commodities in trading accounts. | | | | | (4) Interest and divident expense deducted in determining item 2a. | | | | | (5) Net loss from management of or participation in the underwriting or distribution of securities. | | | | | profit from management of or parlicipation in underwriting or distribution of securities. | (6) Expenses other than advertising, printing, registration fees deducted in determining net | | | (7) Net loss from securities in Investment accounts. | | | | | Total additions | | | | | 2c. Deductions:
(1) Revenues from the distribulion of shares of a registered open end investment company of unfl | accounts, and from transactions in security futures products. | investment from the sale of variable annuilies, from the business of insurance, from Investment
advisory services rendered to registered investment company separate | | | (2) Revenues from commodity transactions. | | | | | securities fransactions. | (3) Commissions, floor brokerage and clearance paid lo other SIPC members in connection with | | | | | (4) Relmbursements for postage in connection with proxy solicitation. | | | | (5) Net gain from securities in investment accounts. | | | | | from issuance date. | (6) 100% of commissions and markups earned from fransactions in (i) certificates of deposit and
(i) Treasury bills, bankers acceptances or commercial paper that mature nine months or less | | | | | related to the securities business (revenue defined by Section 16(9)(L) of the Act). | (7) Direct expenses of printing advertising and legal fees Incurred in connection with other revenue | | | (8) Other revenue not related either directly or indirectly to the securities business.
(See Instruction C): | | | | | | (Deductions in excess of \$100,000 require documentation) | | | | {{} (i) Total Interest and dividend expense (FOCUS Line 22/PART HA Line 13,
Code 4075 plus line 2b(4) above) but not In excess
of lotal 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) | | | | | Total deductions | | | ച്ച് | | 2d. SIPC Net Operating Revenues | | | 347 | | 2e. General Assessment @ .0015 | | | to nage 1. line 2 A 1 | Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.