# E. BARNES & COMPANY X-17A-5 (2026-07-15) — Broker-dealer annual report - Company: E. BARNES & COMPANY - Form: X-17A-5 - Filed: 2026-07-15 - Period: 2026-03-31 - Accession: 0000764805-26-000003 - CIK: 764805 - File #: 8-33746 - Type: Broker-dealer - Material weakness: No - Auditor: Cropper Accountancy - Auditor location: Walnut Creek, CA - Contact: Frank Lardino - Phone: 954-304-4708 - Email: ebarnesandco@yahoo.com - Website: ccountancy.com - Signed by: Frank Lardino (President) Original filing: https://www.sec.gov/Archives/edgar/data/764805/000076480526000003/pacificaudit2026.pdf --- {0}------------------------------------------------ | | UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 | | QMBAPPROVAL
0MB Number. 3235-0123 --
Exptres: Nov. 30, 2026
�mated average burden
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SECfll.£ NUMBER
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,_ | | | | FORM X-17A-5 | | Gl
8-33746
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p | | | | PART Ill | | | | | | | | | | | | FACING PAGE
Information Required Pursuant to Rules 17a-s, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | | | | | | | | /2926 | | | | FILING FOR THE PERIOD BEGINNING 04/01 /2O24_AND ENDING �31
MM/00/YY | | MM/00/YY | | | | A. REGISTRANT IDENTIFICATION | | | | | NAME OF FIRM: | E. Barnes & Company dba Pacific Investment Securities Corporation | | | | | TYPE OF REGISTRANT (check all applicable boxes)!
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[!I Broker-dealer
D Check here ff respondent Is also an OTC derivatives dealer | □
Security-based swap dealer | | Major security-based swap participant | | | ADDRESS OF PRINCIPAL PLACE Of BUSINESS: (Do not use a P.O. box no.) | | | | | | 21 Sovereign Way | | | | | | | (No. and Street) | | | | | Hutchins.on Island | FL | | 34949 | | | (City) | (State) | | (Zip Code) | | | PERSON TO CONTACT WlTH REGARD TO THIS FILING | | | | | | Frank Lardino | 304-4 708
(954) | | | | | (Name) | (Area Code -Telephone Number) | (Email Address) | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing•
Croppe� A��2�,�_ta�-�Y | | | | | | | ~
(Name - if individual, state last, first, and middle name) | • .
. _ | | | | 2700 Ygnacio Valley Road, Ste 270 | Walnut Creek | CA | 94598 | | | (Address) | (City) | {State) | (Zip Code) | | | 03/04/2009 | | 3381 | | | | (Date of Rejistration with PCAOB){!f applicable) | FOR 0FFIOAL USE ONLY | | .(PCAOB Reg!stration Number, If appllcablel | | | ·_ , -
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• Cairns for exemption from the requirement thatthe annual reports be covered by the reports of an independent public | | | | | **accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-5(e)(1)(ii), if applicable.** **Penons who are to respond to the collection of fnfonnatfon contained in this form are not required to respond unless the form displays a currently valid 0MB control number.** {1}------------------------------------------------ ## **OATH OR AFFIRMATION** **Signature:** - **Iii (a) Statement of financial condition.** - **D (b) Notes to consolidated statement offlnandal condition.** - **ii (c) Statement of income {loss) or, if there is other comprehensive income in the period(s) presented, a statement of comprehensive income (as defined in § 210.1-02 of Regulation S-X).** - **i1 (d) Statement of cash flows.** - **Ii (e) Statement of changes in stockholder( or partner( or sole proprieto(s equity.** - **D (f) Statement of changes in IJabJllties subordinated to claims of creditors.** - **ii (g) Notes to consolidated financial statements.** - **ii (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable.** - **D (i) Computation of tangible net worth under 17 CFR240.18a-2.** - **D 0) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3.** - **D (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15r3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable.** - **D (I) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3.** - **D (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3.** - **D (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 O:R 240.183-4, as applicable.** - **ii (o) Reconciliations, induding appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.1Sc3-1, 17 CFR 240.18a-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CfR 240.15c3-3 or 17 CFR 240.183-4, as applicable, if material differences exist, or a statement that no material differences exist.** - **D (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition.** - **ii (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable.** - **0 (r) Compliance report in accordance with 17 CFR 240.17a-S or 17 CFR 240.18a-7, as applicable.** - **ii (s) f.xemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable.** - **D (t) Independent public accountant's report based on an examination of the statement of financial condition.** - **8 (u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240.17a-S, 17 CFR 240.18a-7, or 17 CFR240.17a-12, as applicable.** - **D (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as appHcable.** - **ii (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5** *or* **17 CFR 240.18a-7, as applicable.** - **D (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-1e or 17 CFR 240.17a-12, as applicable.** - **D {y) Report describing any material inadequacies found to exist or found to have existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12{k).** - **D (z) Other: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_** - **--ro** *request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e}(3) or 17 CFR 240.1.Ba-7{d}{2), as applicable.* {2}------------------------------------------------ ## E. BARNES & COMPANY dba: PACIFIC INVESTMENT SECURITIES CORPORATION Report Pursuant to Rule 17a-5(d) Financial Statements For the Year Ended March 31, 2026 {3}------------------------------------------------ | REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 3 | | |------------------------------------------------------------|--| | FINANCIAL STATEMENTS 5 | | | STATEI\IBNT OF FINANCIAL CONDITION 5 | | | STATEMENT OF INCOI\ffi 6 | | | STATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY 7 | | | STATElvIENT OF CASH FLOWS 8 | | | NOTES TO FIN'AN'CIAL STAl"El\1:ENTS 9 | | | SCHEDULE 1 14 | | | SCHEDULE 2 15 | | | | | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) Walnut Creelc, CA 94598 (925) 932.J860 tel (925) 476-9930 erax Cf:RT1.-1t.o PU81.IC ACCOUNTANTS *www.cropperaccountancy.com* • #### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Stockholder of E. Barnes & Company, dba Pacific Investment Securities Corporation #### **Opinion on the Financial Statements** We have audited the accompanying statement of financial condition of E. Barnes & Company, dba Pacific Investment Securities Corporation ("the Company") as of March 31, 2026, the related statements of income, changes in stockholder's **8quity,** and cash flows for the year then ended, and the related notes and schedules (collectively referred to as the "financial statements''). ln our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of March 31, 2026, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. #### **Basis for Opinion** These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting fine registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities Jaws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audit included perfonning procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. #### **Auditor's Report on Supplemental Information** The supplemental information in Schedule 1 Computation of Net Capital and Schedule 2 Computation for determination of reserve requirements and infonnation relating to possession or control requirements under Rule l 5c3-3 of the Securities and Exchange Commission has been subjacted to audit procedures performed in conjunction with the audit of the Company's financial statements. The supplemental information is the responsibility of the Company's management. Our audit procedures included determining whether the supplemental information r-.conciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with 17 C.F.R. §240.l 7a-5. In our opinion, the supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole. CROPPER ACCOUNT ANCY CORPORATION We have served as E. Barnes & Company, dba Pacific Investment Securities Corporation's auditor since 2023. Walnut Creek, California July IO, 2026 {5}------------------------------------------------ ## **E. BARNES & COMPANY dba: PACIFIC INVESTMENT SECURITIES CORPORATION FINANCIAL STATEMENTS STATEMENT OF FINANCIAL CONDITION AS OF MARCH 31, 2026** ## **ASSETS** | Cash and cash equivalents | \$14,560 | |----------------------------------------|----------| | Accounts receivable from Clearing Firm | 1,958 | | Accounts receivable | UB.1 | | Total Assets | | |--------------|--| |--------------|--| ## **LIABILITIES AND STOCKHOLDER'S EQUITY** | Accoun1s payable | 1Q | |-------------------------------------------------------------|-----------| | Total cunent liabilities | 0 | | STOCKHOLDER'S EQUITY | | | | | | Common stock; \$0.01 par value: | 1 | | 250,000 shares authorized, 75 shares issued and outstanding | | | Preferred stock; \$0.01 par value: | 0 | | 25,000 shares authorized, 0 shares issued and outstanding | | | Additional paid in capital | 7,499 | | Retained earnings | 10�299 | | Total stockholder's equity | 17,799 | | Total Liabilities and Stockholder's Equity | \$l 7,799 | **The accompanying notes are an integral part of these :financial statements** {6}------------------------------------------------ ## **E. BARNES & COMPANY dba: PACIFIC INVESTMENT SECURITIES CORPORATION STATEMENT OF INCOME FOR TIIE YEAR ENDED MARCH 31,2026** | REVENUE | | |----------------------------------------------|----------| | Commissions earned | \$60,180 | | 12b-1 fees | 13,873 | | Sale of investment company shares | 1,294 | | Other (margin rebates, trailing commissions) | 2,404 | | Interest | � | | Tota) revenue | 77�757 | | OPERATING EXPENSES | | | Clearing costs | 22,600 | | Commissions expense | 20,350 | | Rent and parking | 2,400 | | Regulatory fees | 2,532 | | Taxes and licenses | 100 | | Office supplies, printing and postage | 6,051 | | Telephone | 4,490 | | Professional services | .14.1925 | | Total operating expenses | | | Income (loss) from operations | 4,309 | | Provision for Taxes | (150) | | Net income (loss) | s4.1s2 | **The accompanying notes are an integral part of these financial statements.** {7}------------------------------------------------ ## **E. BARNES & COMPANY dba: PACIFIC INVESTMENT SECURITIES CORPORATION STATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY For the Year Ended March 31, 2026** | | Common
Stock | Additional
Paid In
Ca12ital | Retainecl
Earnings | I2mL
Stockholder's
Eguitt | |-----------------------------------------------------|-----------------|-----------------------------------|-----------------------|---------------------------------| | Balance at March 31, 2025 | \$1 | \$7,499 | \$6,140 | \$ 13,640 | | Net income (loss) for year ended March 3 1,
2026 | | | � | 4,159 | | Balance at March 31, 2026 | ll | £7J22 | ilQ,,22 | ilZ,222
--' | **The accompanying notes are an integral part of these financial statements.** {8}------------------------------------------------ ## E. BARNES & COMPANY dba: PACIFIC INVESTMENT SECURITIES CORPORATION STATEMENT OF CASH FLOWS **FOR THE YEAR ENDED MARCH 31, 2026** | CASH FLOWS FROM OPERATING ACTIVITIES | | |------------------------------------------------------------|----------| | Net Income (loss) | \$4,159 | | Change in operating assets and liabilities | | | Receivables from clearing firm | 198 | | Accounts receivable | 2,817 | | Accounts payable | (3� | | Net cash and cash equivalents used by operating activities | 3,365 | | Cash and cash equivalents at beginning of year | l.L.195. | | Cash and cash equivalents at end of year | \$14,560 | | Supplemental disclosure of cashflow information: | | | | |--------------------------------------------------|-------|--|--| | Interest paid | Ml | | | | Taxes paid | \$150 | | | The accompanying notes are an integral part of these financial statements. {9}------------------------------------------------ ## **E. BARNES & COMPANY dba: PACIFIC INVESTMENT SECURITIES CORPORATION NOTES TO FINANCIAL STATEMENTS March 31, 2026** ## **1. THE ORGANIZATION** **E. Barnes & Company dba: Pacific Investment Securities Corporation, an Oregon securities brokerage firm with offices in Portland, Oregon, was incorporated on February 1 5, 1 985. The Company is a member of the Securities Exchange Commission, the Financial Industry Regulatory Authority and the Securities Investor Protection Corporation.** **A summary of the Company's significant accounting policies consistently applied in the preparation of the accompanying financial statements follows:** Al� **For purposes of reporting cash flows, cash and cash equivalents include cash and a ninety day short term certificate of deposit of \$10,150 maturing June 16, 2026.** ## *Significant Judgements* **Revenue from contracts with customers includes commission income and fees from investment banking and asset management services. The recognition and measurement of revenue is based on the assessment ofindividual contract terms. Significant judgement is required to determine whether performance obligations are satisfied at a point in time or over �e; how to allocate transaction prices where multiple performance obligations are identified; when to recognize revenue based on the appropriate measure of the Company's progress under the contract; whether revenue should be presented gross or net of certain costs; and whether constraints on variable consideration should be applied due to uncertain future events.** ## *Commissions* *Brokerage commissions.* **The Company buys and sells securities on behalf of its customers. Each time a customer enters into a buy or sell transaction, the Company charges a commission. Commissions and related clearing expenses are recorded on the settlement date. Accounting principles generally accepted in the United States of America require transactions to be recorded on a trade date basis, however there is no material difference between trade date and settlement date for the Company. The Company believes that the performance obligation is satisfied on the settlement date because that is when the risks and rewards of ownership of the securities have been finalized.** #### *12b-l Fees* **The Company also earns minor trailing commissions and is responsible for minor ongoing client relations duties, which are recorded in those periods as the services are performed.** {10}------------------------------------------------ *Sale of investment company shares.* **The Company enters into arrangements with managed accounts or other pooled investment vehicles (funds) to distribute shares to investors. The Company may receive distribution fees paid by the fund up front, over time, upon the investor's exit from the fund (that is, a contingent def erred sales charge), or as a combination thereof. The Company believes that its perf onnance obligation is the sale of securities to investors and as such this is fulfilled on the settlement date. Any fixed amounts are recognized on the trade date and variable are recognized to the extent it is probable that a significant revenue reversal will not occur once the uncertainty is resolved. For variable amounts, as the uncertainty is dependent on the value of the shares at future points in time as well as the length of time the investor remains in the fund, both of which are highly susceptible to factors outside the Company's influence, the Company does not believe that it can overcome this constraint until the market value of the fund and the investor activities are lmown, which are usually monthly or quarterly. Distribution fees recognized in the current period are primarily related to perfonnance obligations that have been satisfied in prior periods.** # g **Receivables** **Receivables consist of commissions receivable from broker dealers which are considered fully collectible.** **There is no allowance made against the collectibles in these financial statements.** # ID **Clearing Finn** **The Company conducts business on a fully disclosed basis with respect to its retail brokerage transactions, which are cleared by another broker-dealer. The Company also engages in mutual fund distributions (see Note 1B and exemption report for additional information).** # fil **Use** *pf* **Estimates** **The preparation of financial statements in conformity with generally accepted accounting principles 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 amoun.1s of revenue and expenses during the reporting period. Actual results could differ from those estimates.** ## **2 NET CAPITAL** **Pursuant to Rule I 5c3-l of the Securities and Exchange Act of 1934, the Company is required to maintain a ratio of aggregate indebtedness to net capital, as defined, not to exceed** *15* **to 1. At March 3 1, 2026, the Company had net capital and net capital requirements of \$16,51 8 and \$5,000. The Company's ratio of aggregate indebtedness to net capital was 0.00 to 1 for that year.** {11}------------------------------------------------ # **3. RELATED PARTY TRANSACTION** **The Company operates its primary office from the corporate owner's house. The owner is not compensated for providing this benefit. The Company leases an alternative office location on a month to month basis not subject to ASC 842. Total rent paid for the year ended March 31, 2026 was \$2,400 for the Company's alternative office location.** # **4. INCOME TAXES** **The Company at March 31, 2026 has a Federal tax loss carryforward of \$1,518 and a state tax loss carryforward of \$12,796. The def erred tax benefit of \$319 for federal purposes and deferred state tax of \$845 has been recognized as an asset in these financial statemen1s, but management has provided a 100% valuation allowance against these assets, due to the uncertainty of its future use within the carryforward period.** **The provision for income truces consists of the following:** | | Current
Expense | Deferred | Valuation
Tax Asset Allowance (100%) | Balance at March
31,
2026 | |---------|--------------------|----------|-----------------------------------------|---------------------------------| | Federal | 0 | 319 | (319) | \$0 | | State | UQ | 845 | (845) | 150 | | | WJ1 | SJ.J�� | Ll,.l24l | i150_ | **The Company is no longer subject to federal or state examinations by taxing authorities for years prior to March 2024, generally for three years after they were filed.** # **5. COMMITMENTS AND CONTINGENT LIABILITIES** **The Company does not have any commitments or contingent liabilities other than those stated in these financial statements.** # **6. SUBSEQUENT EVENTS** **Management has evaluated subsequent events through the date on which the financial statements were available to be issued and noted no events requiring recognition or disclosure.** {12}------------------------------------------------ ## **7. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS** **Standards Codification ("Codification'' or "ASC") as the authoritative source of generally accepted accounting principles ("GAAP") recognized by the F ASB. The principles embodied in the Codification are to be applied by nongovernmental entities in the preparation of financial statements in accordance with GAAP in the United States. New accounting pronouncements are inco1porated into the ASC through the issuance of Accounting Standards Updates ("ASU").** **For the year ending March 3 1, 2026, various AS Us issued by the F ASB were either newly issued or had effective implementation da1es that would require their provisions to be reflected in the financial statements for the year then ended. The Company has either evaluated or is cw-rently evaluating the implications, if any, of each of these pronouncements and the possible impact they may have on the Company9s financial statements. In most cases, management has determined that the pronouncement has either limited or no application to the Company and, in all cases, implementation would not have a material impact on the financial statements taken as a whole.** ## **8. SEGMENT REPORTING** **The Company follows Accounting Standards Update 2023-07- Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (" ASU 2023-07"), which expands reportable segment information by requiring companies to disclose, on an annual and interim basis, significant reportable segment expenses that are regularly provided to the Chief Operating Decision Maker ("CODM") and included within each reported measure of a segment's profit and loss. ASU 2023-07 also requires disclosure of the title and position of the individual identified as the CODM and an explanation of how the CODM makes decisions about allocating resources to segments and evaluating performance.** **The Company conducts its business activities and reports financial results as a single reportable brokerage services segment. The CODM makes decisions about allocating resources and assessing performance in a manner consistent with the way the Company operates its business and presents their financial results. The nature of business and accounting policies of the brokerage services segment are the same as described in the description of business and summary of significant accounting policies notes.** **The CODM is president of the Company.** {13}------------------------------------------------ ## **SUPPLEMENTARY INFORMATION PURSUANT TO RULE 17 A-5 OF THE SECURITIES EXCHANGEACT OF 1934** {14}------------------------------------------------ ## **E. BARNES & COMP ANY dba: PACIFIC INVESTMENT SECURITIES CORPORATION SCHEDULE I** ## **COMPUTATION OF NET CAPITAL March 31, 2026** | Stockholder's equity from statement of financial condition | \$1
7,799 | |------------------------------------------------------------|--------------| | Nonallowable assets -Accounts Receivable | --!.L28ll | | | | | Net Capital | | | Computation of net capital requirement | | | Minimum net capital required | | | Minimum dollar net capital requirement | | | Excess net capital | | | Aggregate Indebtedness | | | I terns included from statement of financial condition: | | | Accounts payable and accrued liabilities | | | Total aggregate indebtedness | | | Ratio: Aggregate indebtedness to net capital | 0.00 to l | **There was no material difference between the computation of net capital under Rule 1 Sc3-l and the computation shown here as of March 3 1, 2026 and the net capital as most recently filed by E. Bames & Company dba Pacific Investment Securities Corporation on Fonn X-1 7 A-5.** #### **See report of independent registered accounting firm.** {15}------------------------------------------------ ### *E. BARNES & COMPANY dba: PACIFIC INVESTMENT SECURITIES CORPORATION SCHEDULE 2* **Computation for determination of reserve requirements and information relating to possession or control requirements under Rule 15c3-3 of the Securities and Exchange Commission for year ended March** *311* **2026.** **Not applicable - See the accompanying Exception Report** *See report of independent registered accounting firm.* {16}------------------------------------------------ ![](_page_16_Picture_0.jpeg) **2700 Ygnado Vs!ey Read, Ste 270 WalnutQeek. CA 94598 (925) 932-3860 hi (925) 476-9930 erax** *www.croppera.ccountancy.com* ## **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** **To the Stockholder** **of E. Barnes & Company, dba Pacific Investment Securities Corporation** **We have reviewed management's statements, included in the accompanying Exemption Report, in which (1) E. Barnes & Company, dba Pacific Investment Securities Corporation ("the Company, ,) identified the following provision of 17 C.F.R. § 1 Sc3-3(k) under which the Company claimed the following exemption from 17 C.F.R. §240. l 5c3-3: (k)(2)(ii) and (2) the Company stated that the Company met the identified exemption provisions in 17 C.F.R. §240.1Sc3-3(k) throughout the most recent fiscal year without exception.** **The Company is also filing this Exemption Report because the Company's other business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R § 240.l 7a-S are limited to (1) securities transactions via subscriptions on a subscriber way basis where the funds are payable to the issuer and not to the Company, (2) advisory services. The Company (1) did not directly or indirectly receive, hold, or owe funds or securities for or to customers, ( other than money or other consideration received and promptly transmitted in compliance with paragraph (a) or (b)(2) of R.1.Jle 1 Sc2-4 and/or funds received and promptly tJanmlitted for effecting transactions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company; (2) did not cany accounts of or for customers; and (3) did not carry PAB accounts (as defined in Rule 1Sc3-3) throughout the most recent fiscal year without exception.** **E. Barnes & Company, dba Pacific Investment Securities Corporation,s management is responsible for compliance with the exemption provisions and the Company's other business activities contemplated by Footnote 74 of SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-S and related SEC Staff Frequently Asked Questions 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 and the Company's other business activities contemplated by Footnote 74 of SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-S and related SEC Staff Frequently Asked Questions and its statements. 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 1 Sc3-3 under the Securities Exchange Act of 1934 and the Company's other business activities contemplated by Footnote 7 4 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a�S, and related SEC Staff Frequently Asked Questions.** *�{W"�;* Ow� **CROPPER ACCOUNTANCY CORPORATION Walnut Creek, California July 10, 2026** {17}------------------------------------------------ . CORP IES SECURIT INVESTMENT IFIC PAC dba NY, COMPA & BARNES E. REPORT EXEMPTION 2026 31, March Year Ended the For ") pany "Com (the . CORP SECURITIES T INVESTMEN PACIFIC dba NY, COMPA & BARNES E. Securities the by gated promul -5 17a Rule to ect bj su oker-dealer br registered a is okers br certain by made be to "reports , -5 17a 40 \$2 P.R. C. *(17* Commission Exchange and 17a- . \$240 R. F . C . 17 by required as prepared was Report tion Exemp This . s") dealer and the ates st Company the ef, li be and knoeledge its best the To ). (A and ) ) O d( 5 . lowing fol the under 15c3-J . \$240 C.F.R. 17 from tion exemp an aimed cl mpany Co The . (ii) (2) **) (k** -3 .15c3 40 \$2 **.R.** C.F **17** of ions provis lowing fol 15c3-3 . \$240 R. F . C . **17** in provisions i�u exempt identified he . t met Company The n. ptio exce without fiscal year recent most the throughout (k) 's Company thr use beca Report tion Exemp this filing also is y Compan The ease Rel SEC of 74 footnote the by eniplated cdnt vities acti siness bu her ot to limited are -5 17a . 40 \$2 R. C.F. 17 to s · amendment ing adopt -70073 34 . No e wher basis way r be bscri su a on on bscripti su via ions Transact Securities **(1)** . rvices se advisory ) (2 Company, the not and issuer the to able pay are funds the **th** or funds owe or hold ve , recei y indrectl or directly not d di **(1)** pany Com The consideration her ot or money than ther (o , rs me custo for or to ies cuxit se **(2) (b)** or (a) paragraph with liance comp *in* transmitted promptly and eived ec . r cting affe for \$Ditted tran y promptl and eived c re funds and/or 5c2-4 -1 rule of the cp payabl� are funds the where basis way subscription a on ons acti trans or of counts ac carry not did (2) , Company the to and not agent its or issuer -3) 15c3 rule **in** ined def (as ts accoun PAB carry not did **(3)** ; and rs tome cus for eption. exc without year fiscal recent most the throughout . CORP IES SECURIT INVESTMENT IFIC PAC dba ,. ANY CO.MP & E. BARNES , ef beli and ledge know best the to the (or affirm) swear Haessler Edward B I, . ect corr and true is rt po Re Exemption this ,,,,,,., Haessler B Edward 26 20 *8,* .JULY {18}------------------------------------------------ ![](_page_18_Picture_0.jpeg) # **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOlJNTING FIRM ON APPLYING AGREED-UPON PROCEDURES** # **To the Members of Audit Committee of Pacific Investment Securities Corporation** **We have performed the procedures included in Rule 17a-5(e)(4) under the Securities Exchange Act of 1934 and in the Securities Investor Protection Corporation (SIPC) Series 600 Rules, which are enumerated below on the accompanying General Assessment Reconciliation (Form SIPC-7) for the year ended March 31, 2026. Management of Pacific Invesbnent Securities Corporation (the Company) is responsible for its Form SIPC-7 and for its compliance with the applicable instructions on Form SIPC-7.** **Management of the Company has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of assisting you and SIPC in evaluating the Company's compliance with the applicable instructions on Fonn SIPC-7 for the year ended March 31, 2026. Additionally, SIPC has agreed to and acknowledged that the procedures perfonned are appropriate for their intended pmpose. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their pmposes. 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 perfonned and our associated findings are as follows:** - **1) 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-1 7A-5 Part III for the year ended March 31, 2026 with the Total Revenue amount reported in Form SIPC-7 for the yeai: ended March 31, 2026, noting an understatement of\$3,275;** - **3) Compared any adjustments reported in Fonn SIPC-7 with supporting schedules and working papers, noting an understatement of \$7,208;** - **4) Recalculated the arithmetical accuracy of the calculations reflected in Form SIPC-7 and in the related schedules and working papers supporting the adjustments, noting no differences; and** - **S) Compared the amount of any overpayment applied to the current assessment with the Form SIPC-7 on which it was originally computed, noting a \$6 overstatement which offsets the differences noted in #2 and #3 above.** **We were engaged by the Company to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the AICP A and in accordance with the standards of the Public Company Accounting Oversight Board (United States). We were not engaged to and did not conduct an examination or a review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the Company's Fonn SIPC-7 and for its compliance with the applicable instructions on Form SIPC-7 for the year ended March 31, 2026. Accordingly, we do not express such an opinion or conclusion. Had we perfonned additional procedures, other matters might have come to our attention that would have been reported to you.** {19}------------------------------------------------ **We are required to be independent of the Company and to meet our other ethical responsibilities in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement** **This report is intended solely for the infonnation and use of the Company and SIPC and is not intended to be and should not be used by anyone other than these specified parties.** **�� CROPPER ACCOUT ANCY CORPORATION Walnut Creek, California July 10, 2026** {20}------------------------------------------------ # **GENERALASSESSMENT FORM** *For the fiscal year ended �/�1[2026. \_\_* | | Determination ot' 11SIPC NET Operating Revenues" and General Assessment for:
MEMBER NAME
E BARNES & CO | | SEC No.
8-33746 | | |---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|--------------------|--------------| | | 4/1/2025
For the fiscal period beginning | and ending | 3/31/2026 | | | 1 | Total Revenue (FOCUS Report-Statement of Income (Loss)-Code 4030) | | | \$ 74,482.00 | | 2 | Additions: | | | | | | a Total revenues from the securities business of subsidiaries (except foreign
subsidiaries) and pl8decessors not included above. | | | | | | b Net loss from prfncfpal transactions In securities In trading accounts. | | | | | | c Net loss from prfnclpal transactions In commodities In trading accounts. | | | | | | d lnterest and dividend expense deducted In determining Item 1. | | | | | | e Net loss from management of or participation In the underwriting or
distribution of securities. | | | | | | f Expenses other than advertising, printing, registration fees and legal fees
deducted in determining net profit management of or participation In
underwrttfng or distribution of securities. | | | | | | g Net Joss from securities In Investment accounts. | | | | | | h Add lines 2a through 2g. This is your total additions. | | | \$ 0.00 | | 3 | Add lines 1 and 2h | | | \$ 74,482.00 | | 4 | Deductions: | | | | | | a Revenues from the distribution of shares of a registered open end investment
company or unit Investment trust, from the sale of vartable annuities, from the
business of insurance, from investment advisory seNices rendered 1D
registered Investment companies or Insurance company separate accounts
and from transactions In securify futures p10ducts. | | \$ 1,289.00 | | | | b Revenues from commodity transactions. | | __ , _ _ 4 | | | | c Commissions, floor brokerage and clearance paid to other SIPC members
in connection with securities transactions. | | \$ 15,397.00 | | | | d Reimbursements for postage In connection with proxy sollcltaUons. | | | | | | e Net gain from securities In investment accounts. | | | | | | f 100% commissions and markups earned from transactions In (I) certificates
of deposit and (i) Treasury bills, bankers acceptances or commercial paper
that mature nine months or less from Issuance date. | | | | | | g Direct expenses of printing, advertising, and legal fees incurred In connection
with other revenue related to the securities business (revenue defined by
Section 16(9)(l) of the Act). | | | | | | h Other revenue not related either directly or Indirectly to the securities business.
Deductions In excess of \$100,000 require documentation | | | | | 5 | a Total Interest and dividend expense (FOCUS Report Statement
of Income (Loss) -Code 4075 p[us line 2d above) but
not In excess of total interest and dividend income | | | | | | b 40% of margin interest earned on customers securities accounts
(40% of FOCUS Report statement of Income (Loss)
Code 3960)
----·· | | | | | | c Enter the greater of line Sa or 5b | | -
\$ 0.00 | | | 6 | Addllnes4a through 4h and 5c. This is your total deductions. | | | \$ 16,686.00 | {21}------------------------------------------------ ## **GENERALASSESSMENT FORM** *For the fiscal year ended ... 3/31/2028* | 7 | Subtract line 6 from Une 3. This Is your SIPC Net Operating Revenues. | | | \$ 57,796.00 | |-----------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------|--------------------------------------------------|------------------------------| | 8
Multiply line 7 by .0015. This Is your General Assessment. | | | | \$ 86.00 | | 9 | Current overpayment/credtt balance, if any | | | \$ 232.00 | | 10
General assessment from last filed� SIPC-6 or 8A | | \$ 36.00 | | | | d Add Jiles 11a through 11c | 11 a Overpayment(s) appUed on al� SIPC-6 and 6A{s)
b Any other overpayments appHed
c All payments applied for 2028 SIPC-6 and 6A(s) | \$ 0.00
\$36.00
'. "
\$0.00 | \$�6.00 | | | 12
LESSER of line 10 or 11d. | | | | \$ 36.00 | | 13 a Amount from lfne 8 | | | \$ 86.00 | | | b Amountfrom line 9 | | | \$ 232.00 | | | c Amount from line 12 | | | \$ 36.00 | (\$ 182.00) | | 14 | d Subtract llnes 13b and 13c from 13a This Is your assessment balance due.
Interest (see instructions) for___!_ days fate at 20% per annum | | | \$ 0.00 | | | (j��-;;�ty�� �'s1Pc�Ad�fii���13d;�d 14.-"'·
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{\$ 1 82.00) | | 16 | Overpayment/cred'it canied forward {if applicable) | | | | | :sECNo.
8-33746 | Designated Examining Authority
DEA= FINRA | FYE
2026 | Month
Mar | | | . !MEMBER NAME
MAIUNG ADDRESS | E BARNES & CO
PO BOX 946
LAKE OSWEGO, OR 97034 | | | | | lU | Subsidiaries (S) and predecessors (P) Included In the form (give name and SEC number)
r7I By checking this box, you certify that you have the authority of the SIPC member to sign this
form; that all Information In this form Is true and complete; and that on behalf of the SIPC
member, you are authori2:ed, and do hereby consen� to the storage and handllng by SIPC Of | | | | | | the data In accordance with SIPC's Pnvacy PoHcy | | | | | E BARNES
& CO
(Name of SIPC Member) | | | EDWARD BARNES HAESSLER
(Authorized Signatory) | | | | | | | | | 5/3/2026
• --. - - � · • . - - •
r- '- �•• -• | | | _ ebarnesandco@yahoo.com | | | | (Date) | | (e-mall address) | | | | Completlon of the 11Authorized Signatory" line wlll be deemed a slgnature. | | | | | | This form and the assessmentpaymentare due 60 days after the end of the fiscal year. | | | | Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.