# L.O. THOMAS & CO. INC. X-17A-5 (2022-03-04) — Broker-dealer annual report

- Company: L.O. THOMAS & CO. INC.
- Form: X-17A-5
- Filed: 2022-03-04
- Period: 2021-12-31
- Accession: 0000846416-22-000002
- CIK: 846416
- File #: 8-40875
- Type: Broker-dealer
- Material weakness: No
- Auditor: MICHAEL T REMUS
- Auditor location: TRENTON, NJ
- Contact: JOHN W RISLEY
- Phone: 6099274044
- Signed by: JOHN W RISLEY (PRESIDENT)

Original filing: https://www.sec.gov/Archives/edgar/data/846416/000084641622000002/Audit2021B.pdf

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**UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** 

OMBAPPROVAL 0MB Number: 3235--0123 Expires: Oct. 31, 2023 Estimared average burd€n hours per response: 12

> SEC FILE NUMBER 8-40875

# **ANNUAL REPORTS FORM X-17A-S PART Ill**

**FACING PAGE** 

|                                                                                                                                      | Information Required Pursuant to Rules 17a-5, 17a-12, and lBa-7 under the Securities Exchange Act of 1934 |      |                                           |            |  |
|--------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------|------|-------------------------------------------|------------|--|
| FILING FOR THE PERIOD BEGINNING 01 /Q 1 /2021                                                                                        |                                                                                                           |      | AND ENDING 12/31/2021                     |            |  |
|                                                                                                                                      | MM/DD/YY                                                                                                  |      |                                           | MM/DD/YY   |  |
|                                                                                                                                      | A. REGISTRANT IDENTIFICATION                                                                              |      |                                           |            |  |
| NAMEoFFJRM: LO. Thomas & Co., Inc.                                                                                                   |                                                                                                           |      |                                           |            |  |
| TYPE OF REGJSTRANT (check all applicable boxes):<br>~ Broker-dealer<br>=· Check here if 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.)                                       |      |                                           |            |  |
| 2106 New Road Suite A6                                                                                                               |                                                                                                           |      |                                           |            |  |
|                                                                                                                                      | {No. and Street)                                                                                          |      |                                           |            |  |
|                                                                                                                                      | Linwood<br>NJ                                                                                             |      | 08221                                     |            |  |
| {City)                                                                                                                               | (State)                                                                                                   |      | (Zip Code)                                |            |  |
| PERSON TO CONTACT WITH REGARD TO THIS FILING                                                                                         |                                                                                                           |      |                                           |            |  |
| John Risley                                                                                                                          | 609-927-4044                                                                                              |      | john .ris ley@I othomas. com              |            |  |
| (Name)                                                                                                                               | (Area Code-Telephone Number)                                                                              |      | (Email Address)                           |            |  |
|                                                                                                                                      | B. ACCOUNTANT IDENTIFICATION                                                                              |      |                                           |            |  |
| Michael T Remus CPA                                                                                                                  | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing"'                                |      |                                           |            |  |
|                                                                                                                                      | (Name - if individual, state last, first, and middte name)                                                |      |                                           |            |  |
| PO Box 2555                                                                                                                          | Hamilton Square                                                                                           |      | NJ                                        | 08690      |  |
| (Addre.ss)                                                                                                                           | (City)                                                                                                    |      | (State)                                   | /Zip Code) |  |
| 02/23/2010                                                                                                                           |                                                                                                           | 3598 |                                           |            |  |
| (Date of Registration with PCAOB)(lf applicable)                                                                                     | FOR OFFICIAL USE ONLY                                                                                     |      | (PCAOB Reglstrauon Number, if applicable) |            |  |

.. ctaims for exemption from the requirement that the annual reports be covered by the reports of an inaependent public account.mt must be supported by a statement of fact!i and circumstances relied on **as** the basis of the exemption. See 17 CFR 240.17a-S(e)(l){ii), if applicable.

**Persons who are to respond to the collection** of **information contained** in **this** form **ere not required to respond unless the** form **display5 a** currently **valid 0MB** control number.

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#### **OATH OR AFFIRMATION**

I, Joh11 Risley swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of <sup>L</sup> O Thomas & Co, Inc , as of OecernbJ:•r 31 2~ is true and correct. I further swear (or affirm) that neither the company nor any

partnE~, offic-er, direc;tor, or equivalent person, as the case may be, has any proprietary interest in any account classified solely as that of ,i customer.

Title: President/ *c!,.. C, O* <sup>&</sup>gt;

# This **filing\*\*** contains {check all applicable **boxes):**

- (a) Statement of financial condition.
- '-' (b) Notes to consolidated statement of financial condition.
- ~ (c) Statement of income (loss) or, if there is other comprehensive income in the perlod(s) presented, a statement of comprehensive income (as dl'.'fined in§ 210.1-02 of Regulation 5-X).
- ~ (d) Statement of cash flows.
- ~ (e) Statement of changes in stockholders' or partners' or sole proprietor's equity.
- , , (f) Statement of changes in liabilities subordinated to claims of creditors.
- ~ (g) Notes to consolidated financial statements.
- ~ (h) Computation ofnet capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a•1, as applicable.
- (i) Computation of tangible net worth under 17 CFR 240.18a-2.
- '--.j (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3.
- (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable.
- LJ (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.15c3-3.
- ~ (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3.
- C (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240,18a-4, as applicable.
- ~ (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.1Sc3-1, 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 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist.
- □ (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition.
- ~ (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.
- LJ (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable.
- ~ (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable.
- LJ (t) Independent public accountant's report based on an examination of the statement of financial condition.
- **!!!Ii** (u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable.
- □ (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable.
- ~ (w) tndependent 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.
- L' (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-le or 17 CFR 240. l ?a-12, as applicable.
- [J (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) . ....J (z) Other:---- --- --------------------- - - ----------
- 
- \*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e)(3} or 17 CFR 240,18a-7(d)(2), as applicable.

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#### **Exemption Statement pursuant to SEC Rule 17a-5 F01· the Year Ended December 31, 2021**

#### STATEMENT OF EXEMPTION FROM SEC RULE 15c3-3

L.O. Thomas & Co., Inc. (the "Companyir) is a registered broker-dealer subject to Rule l 7a-5 promulgated by the Securities and Exchange Commission (17 C.F.R. 5240.17a-5, "Reports to be made by certain brokers and dealers"). This Exemption Report was prepared as required by 17 C.F .R. 5240.17a-5( d)(l) and ( 4). To the best of its knowledge and belief, the Company states the following:

- (1) The Company claimed an exemption from 17 C.F.R. 5240.15c3-3 under the following provisions of 17 C.F.R. 5240. l 5c3-3(k)(2)(ii).
- (2) The Company met the identified exemption provisions in 17 C.F.R. §:240.l5c3-3(k)(2)(ji) throughout the most recent fiscal period witl1out exception.

LO. Thomas & Co., Inc.

I~ John W. Risley, swear (or affirm) that, to my best knowledge and belief. this Exemption Statement is true and correct.

By:

Tit~<!, Co

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#### FINANCIAL **STATEM.ENTS AND SUPPLEMENTARY INFORMATION**

Jtor the Year Ended

December 31, 2021

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# **MICHAEL T. REMUS**  *~PJ!kA~*

P.O. Box 2555 Hamilton Square, NJ 08690 **Tel:** 609·540-1751 **Fax:** 609-570-5526

# Report or lndcpendent Registered Pub I ic Accounting Finn

To: The Board of Directors ,m<l Stockholder of **L.O. Thomas** & **Co., Inc.** 

#### **Opinion on the Financial Statements**

I have audited the accompanying statement of financial condition ofL.O. Thomas & Co., Inc. as of December 31, 2021, and the related state men ls of operations, changes in stockholder equity and cash flows for Lhc year then ended, that arc filed pursuant to Ruic I 7a-5 under the Securities Exchange Act of l 934 and the related notes [and scht-'<lules] (collectively referred to as the financial statements). 1n my opinion, the financial statements present fairly, in all material respects, the financial position ofL.O. Thomas & Co., Inc. as of December 31, 2021 and its results of operations and its cash nows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

#### **Basis for Opinion**

These financial statements arc the responsibility of L.O. Thomas & Co., Inc. 's management. My responsibility is to express an opinion on LO. Thomas & Co., Inc. '.s financial statements based on my audit I am a public accounting finn registered with the Public Company Accounting Oversight Board (United States) (PCAOB) nnd lam required to be independent with respect to L.O. Thomas & Co., Inc. in accordance with the lJ .S. federal securities laws and the applicable rules an<l regulations of U1e Securities and Exchange Commission and the PCAOB.

1 conducted my audit in acconhmcc with the standards of the PCAOB. Those standards require that l plan and perform the audit to obtain reasonable assurance about whether the financial statements arc free or material misstatement, whether due to error or fraud. My audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to CITor 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. My audit also included evaluating the accounting principles used and signilicant estimates made by managcmeni, as well as evaluating the overall presentation of the financial statements. I believe that my audit provides a reasonable basis for my opinion.

#### **Supplemental Information**

The Schedule: J, Computation of Net Capital Under SEC Rule 15c3-l, Schedule II, Computation for ldcntificalion of Reserve Requirements Under SEC Rule 15c3-3 *(exemption)* and Schcduk lll, Infom1ation Relating to Possession or Control Requirements Under SEC Ruic 15c3-3 *(cxempilon)*  has been subjected to audit procedures performed in conjunction with the audit of L.O. Thomas & Co., Irn~. 's financial statements.

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The supplemental information is the responsibility ofL.O. Thomas & Co., Inc. 's management. My audit procedures included determining whether the supplemental information reconciles 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 fonning my opinion on the supplemental infonnation, l evaluated whether the supplemental infonnation, inc1uding its fonn and content, is presented in conformity with 17 C.F.R. §240.17a-5. In my opinionl the Schedule I; Computation of Net Capital Under SEC Ruic l 5c3-l, Schedule II, Computation for Identification of Reserve Requirements Under SEC Rule 15c3-3 *(exemption)* and Schedule m, Information Relating to Possession or Control Requirements Under SEC Ruic 15c3-3 *(exemption)* is fairly stated, in all material respects, in relation to the financial statements as a whole.

r have served as LO. Thomas & Co., Inc. auditor since 2016.

Michael T. Remus, CPA Hamilton Square, New Jersey February 12, 2022

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# **L.O. Thomas** & **Co., Inc.**  STATEMENT **OF** FINANCIAL CONDITION December 31, 2021

#### **ASSETS**

| Current Assets                                    |              |
|---------------------------------------------------|--------------|
| Cash                                              | 45,453<br>\$ |
| Commissions receivable                            | 31,709       |
| Prepaid expenses                                  | 14,543       |
| Fixed assets, office equipment net of accumulated | 0            |
| depreciation of \$25,133                          |              |
| Total Assets                                      | \$<br>91,705 |
|                                                   |              |

#### **LIABILITIES** & **STOCKHOLDER EQUITY**

| \$<br>4,496  |
|--------------|
| 17,736       |
| 22,232       |
|              |
|              |
| 30,000       |
|              |
| 5,900        |
| 33,573       |
| 69,473       |
|              |
| \$<br>91,705 |
|              |

"See accompanying notes to financial statements."

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Statement of Operations For the Year Ended December 31, 2021

#### REVENUES

| Commissions, net of clearing fees | \$ "<br>2<br>19,967 |
|-----------------------------------|---------------------|
| Mutual fund and l 2b-1 fees       | 898.471             |
| Other revenue                     | 411<br>,198         |
| Interest income                   | 1                   |
| Total Revenues                    | 1,529,638           |
| EXPENSES                          |                     |
| Commissions                       | 1,134,429           |
| Occupancy                         | 28,800              |
| Compensation and benefits         | 55,124              |
| Regulatory fees                   | 18,453              |
| Legal and professional            | 11,907              |
| Technology and communication      | 12,911              |
| General and administrative        | 36,294              |
| Travel and ente11ainment          | 10,101              |
| Total Expenses                    | 1,308,019           |
| Income before income tax          | 221,619             |
| Income ta,'{                      | 1,000               |
| Net Income                        | 220,619<br>\$       |

11See accompanying notes to financial statements."

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#### **LO. Thomas** & Co., Inc. Statement of Chang.es in Stockholder Equity Year Ended D&ember 31, 2021

|                                   | Shares | Common Stock<br>Amount | Acld1lJ.ouaJ<br>Pa.id-m<br>Capital |    | Retained<br>Eamin;u |   | Total<br>Stockholder<br>Equity |
|-----------------------------------|--------|------------------------|------------------------------------|----|---------------------|---|--------------------------------|
| Balance, December 31, 2020        | !00    | s<br>30,000            | 5,900<br>\$                        | s  | 9,534               | s | 45,434                         |
| Net Ill.come                      |        |                        |                                    |    | 220.619             |   | 220,619                        |
| Distributions paid to ,hareholder |        |                        |                                    |    | (196,580)           |   | (196,580)                      |
| Ba.lance, December 31, 2021       | !00    | s<br>~0.000            | 5.900<br>\$                        | \$ | 33,573              | s | 69,473                         |

''S~- acraompanying notes to financial statements."

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#### L.O. Tl1ourns & Co., Inc. Statement of Cash Flows For the Year Ended December 31. 202 l

#### **CASH FLOWS FROM OPERATING ACTIVITIES**

| Net income                                                          | 220,619      |
|---------------------------------------------------------------------|--------------|
| Adjustments to Reconcile Net income to N er                         |              |
| Cash Provided By Operating Activities:                              |              |
| (Increase) Decrease in:                                             |              |
| Commissions receivable                                              | (12,587)     |
| Prepaid expeL1ses                                                   | 541          |
| Increase (Decrease) in:                                             |              |
| Accounts payable and accrned expenses                               | (251)        |
| Commissions payable                                                 | 4,286        |
| Income tax payable                                                  | (750)        |
| Net cash provided by Operating: Activities                          | 211,858      |
| Cash Flows F1·om Iuvesting Activities                               |              |
| Cash Flows From Financing Artivities                                |              |
| Distribution paid co shareholder                                    | (196,580)    |
| Net cash used in Financing Activities                               | (196,580)    |
| Net cash increase for the period                                    | 15,278       |
| Cash at beginning of period                                         | 30,175       |
| Cash at end of period                                               | \$<br>45,453 |
|                                                                     |              |
| Sllpplemental Disclosure of Cash Flow Information:<br>Interest paid | \$           |
| Taxes Paid                                                          | \$<br>1,500  |

"See accompanying notes to financial statements!'

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**L.O. Thomas** & **Co., Inc.**  Notes To Financial Statements December 31, 2021

#### **Note 1- Organization and Nature of Business**

L.O. Thomas & Co., Inc. (the Company) is a broker-dealer registered with the Securities and Exchange Commission ("SEC") and is a member of the Financial Industry Regulatory Authority (" FINRA") and the Securities Investor Protection Corporation ("S]l>C''). The transactions arc conducted on a fully disclosed basis with other broker-dealers. Accordingly, the Company operates under the cxcmptivc provisions of the Securities and Exchange Commission Rule 15c3-3 Section (k)(2)(ii) of the rule.

The Company is regiskrcd and conducts bmiincss from their office located in Linwood, New Jersey, and is registered to conducl business in other states. The Company's primary source of revenue is providing brokerage services to customers, who arc predominately small and middle-market business and individuals.

#### **Note 2** ~ **Summary of Significant Accounting Policies**

#### *(a) Basis(?/' Presentation*

The financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") unless otherwise disclosed.

#### *(h) Use* (?{ *Estimates*

The preparation of financial statements in conformity with generally accepted accounting prindples requires management to make estimates and assumptions that affect the reported amounts of assets ,md liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during thc reporting period. Actual results could differ from those estimates.

# ( l) *5'tatement (?( Cash Flows*

For purposes of the statement of cash flows the Company has defined cash equivalents as highly liquid investments, with original maturities of less than three months, that arc not held for sale in the ordinary cou rsc of business. The company has adoptc..J the indirect method of pres en ting the ~tatcment of cash flows in accordance with cun-cnt authoritative pronouncements. There wen; no cash equivalents at December 31, 2021.

#### *(d) C'ommissions*

The commission based revenue is recorded on a settlement dale basis. Securities transactions, underlying lhe commissions, are also recorded on a settlement date basis.

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#### **L.O. Thomas** & **Co., Inc.**  Notes To Financial Slatcmcnts December 3 I , 2021

#### *(e) Office Equipment*

Office equipment is staled at cost. Significant additions or improvements extending asset lives arc capitalized; normal mainlcnancc and repair cost arc expensed as incurred. Depreciation has been computed using the straight-I inc method for ti nanc ial statement reporting and various ace el crated methods al I ow ab I c for income tax. purposes. The cost and related accumulated depreciation of property and equipmcnlrctirc<l or disposed of arc removed from the accounts and the resulting gains or losses arc reflected in income.

#### *(f) Commissions* receivable

Commissions receivable have been adjusted frir all known uncollcctiblc accounts. An allowance for doubtful accounts is not provided since, in the opinion of management all amounts recorded on the books are deemed collectible.

#### (g) *Accounts Payable*

Accounts payable consist of all operating liabilities that can be matched to the period the goods or services were incurred.

#### *(h) income Taxes*

The Company elected to be taxed for F<.,-dcral and New Jersey state income tax purposes as an S-Corporation. Under (his structure, the shareholder is liable for any Federal or State income tax due. Therefore, no provision or liability for federal or state incomt: taxes has been included in the financial 1-;tatcment<,.

The Comparty's tax returns and the amount of income or loss allocable to the shareh()!der arc subject to exmnination by ftxleral and state taxing authorities. In the event of an examination of the Company's tax return, the tax liability of the shareholder could be changed if an adjustment in the Company's income or loss is ultimately determined by the taxing authorities.

Certain transactions may be subject to uccounting methods for foderal and state income tax purposes which di ffcr from lhc accounting methods used in preparing the financial stat cmcn ts. Accordingly, the net i ncomc or loss of the shareholder and the resulting balances in the shareholders' capital account reported for federal and state income tax purposes may di ffcr from the balances rcp011cd for those same items in these financial statements.

The Company recognizes and measures its unrecognized tax benefits in accordance with /\SC Topic 740, Income Taxes. Under that guidance the Company assesses the likelihood, based on their tcclrnkal merit, that tax positions will be sustained upon examination based on the facts, circumstances and infonnation available at Lhe end of the financial reporting period. The measurement of unrecognized **tax** benefits is adjusted when new information is available, or when an event occurs that requires a change.

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#### **L.O. Thomas** & **Co., Inc.**  Notes to Financial Statements December 31, 2021

#### *(h) Income Tnxes* - *continued*

Management has <lelcrmincd that the Company has no uncertain tax positions that would require financial st,dcmcnt recognition **al** December 31, 2021. This determination will always be subject to ongoing evaluation as facts and circumstances may require. The Company remains subject to U.S. federal and state income tax audits for all years subsequent to 2017.

ln addition, no income tax related penalties or interest have been recorded for the year ended December 3 L 2021.

#### (i) *Fair Value Hierarchy*

F ASB ASC 820 defines fair value, establishes a framework for measuring fair value, and cstahlish<.:s a fair value hierarchy ,vhich prioritizes the inputs to valuation techniques. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market. Valuation techniques that are consistent with the market, income or cost approach, as specified by FASB ASC 820, arc used to measure fair value.

The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels:

- *Level I.* Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.
- *Level 2.* Inputs; other than quoted prices included in lcveJ 1 that are observable for the assets or liability either directly or indirectly.
- *level 3.* Inputs are unobservable for the assets or liability.

The availability of observable inputs can vary from security to security and is affected by a wide variety of factoni1 inclu<ling. for example, the type of security, the liquidity of markets, and other characteristics pm1icular to the security. To the extent the valuation is based on models or inputs 1hal arc lc8S observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining the fair value is greatest for instruments categorized in level 3.

The inputs used to mca:rnrn fair value may fall into different levels of the fair value hierarchy. In such cases, f<.)r disclosure purposes, the level in the fair value hierarchy with in which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in ils entirety.

For further discussion of fair value, sec "Note *5* Fair Value"

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**L.O. Thomas** & **Co., Inc.**  Notes to Financial Statements December 3 I , 2021

#### (j) *Advertising and Marketing*

Advertising and marketing costs in the amount of \$880 arc expensed as incurred.

#### *(k) General and Administrative Expenses*

General and administrative costs arc expensed as incurred.

#### **Note 3** - **Net Capital Uequirernents**

The Company is subject to 1hc SEC Uniform Net Capital Rule (SEC Rule 15c3-I), which requires the maintenance of minimum net capital and requires tlmt the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to l (and the rule of the "applicable" exchange also provides that equity capital may not be withdrawn or cash dividends paid if the resulting net capital ratio would exceed IO to l ). At December 3 I, 2021, the Company had nel capital of \$47,783, which was \$42,783 in excess of its required minimum net capital of \$5,000. The Companis net capital ratio was .4653 to I.

Advances to affiliates, contributions.distributions and other withdrawals are subject to ccr1ain notification and other requirements of Rule I 5c3-l and other regula1ory rules. The Company is exempt from the provisions of Ruic l5c3-3 under the Securities Exchange Act of 1934. The Company relies on its SEC Rule 15c3-3(k)(2)(ii) exemption.

#### **Note 4- Concentrations**

#### Concen lration of Cush

The Company maintains its cash at one financial institutions in amounts that at times may exceed federally insured limits. The Company has not experienced any losses in such accounts through December 31. 2021. As of December 31, 2021 there were no cash balances held in any accounts that were not fully insured.

#### Concentration of Clearing Broker

The Company uscii one clearing broker for all clearing services. At December 31, 2021 commissions receivable of \$38,856 was due from this broker.

Thl~ Company received revenue from three funds resulting in revenues exceeding ten percent of the Companies total revenues.

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#### **L.O. Thomas** & **Co., Inc.**  Notes To Financial Statements December 31 , 2021

#### **No1c 5** - **Fair Value**

Cash, receivables, accounts payable and other current liabilities arc reflected in the financial statements at carrying value which approximates fair value bccuusc of the short-term maturity of these im;trumcnts.

#### **Note 6** - **Commitments and Contingencies**

Pursuant lo Securities and Exchange Commission Ruic l 5c3-1 (c)(2) the Company may not authorize distributions to its members if such distributions cause the Company's net capital to fall below 120% of the Company's minimum net capital requirement. As of December 31, 2021 the Company was not in violation of this requirement.

The Company had no lease or cq u i pmcnt rental com mi tmcnts, no underwriting comm i tmcnts, no con ti ngcnt liabilities, and had nol hccn muncd as a defendant in any lawsuit at December 31, 2021 or during the year then c1u.lcd.

From time to time the Company and its stockholders are the subject of litigation, inquires from Regulatory Agencies and arbitration claims. As of December 31, 2021 the Company is not a subject of litigation inquiries from any regulatory agencies or any other arbitration claims.

#### **Note** 7 ~ **Related Party Transactions**

The Company lca.-;es office space from its sole stockholder under a month to month operating lease. The lease requires monthly payments of \$2,800 with U1c lease to continue at the same rate on a year-to-year basis. The Company made lease payments of \$28,800 to the stockholder during the year. It is anticipated that in the nonnal course of business, leases that expire will be renewed or replaced with simi.lar leases.

ln addition, the Company paid the slOckholder a salary in the amount of \$55.124 and reimbursed the stockholder for various travel and overhead expenses.

#### **Note 8 -Anti-Money Laundering Policies and Procedures**

The Company is rcquiwd to implement policic~ and procedures relating to anti-mom:y laundering, compliance, suspicious activities, and currency transaction reporting and due diligence on customers who open accounts with the Company. At December 31, 202 **l** tbc Company bad implemented such policies and proct.·dures.

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#### **L.O. Thomas** & **Co.,** Inc. Notes To Financial Statements December 3 1, 2021

## **Note 9- Exemption from Rule 15c3-3**

The Company is exempt from the Securities and Exchange Commission Rule l 5c3-3 and, therefore, is not required to maintain a "Special Reserve **Bank** Account for the Exclusive Benefit of Customer's".

#### **Note to** - **Subsequent Events**

The Company has evaluated subsequent events occmTing after the statement of financial condition date through the date ofFebmary l 2, 2022 which is the date the financial statements were available to be issued. Based on this evaluation, the Company has determined that no subsequent events have occurred which require disclosure in or adjustment to the financial statements.

#### **Note 11** ~ **COVlD 19**

In March 2020, the World Health Organization (WHO) declared COVID-19 a global pandemic. This pandemic event has resulted in significant business disruption and uncertainty in both global and U.S. markets. While management believes the Company is in an appropriate position to weather the potential short-term effects of these world-wide eventc;, the direct and long-term impacl to lhc Company and its financial statements is undctcm1ined at this time.

{17}------------------------------------------------

Supplementary Information Pursuant to Rule 17a-5 of the Securities Exchange Act of 1934

As of December 31, 2021

{18}------------------------------------------------

#### **L.O.** Thomas & Co., Inc. COMPl}TATION OF NET CAPITAL Year Ended December 31, 2021

#### **Schedule** I

#### **COMPUTATION OF NET CAPITAL UNDER RULE 15c3-1 OF THE SECURITIES AND EXCHANGE COMMISSION**

| Total ownership equity from Statement of Financial Condition<br>Deduct ownership equity not allowable for Net Capital                          |    | 69,473<br>0 |
|------------------------------------------------------------------------------------------------------------------------------------------------|----|-------------|
| Total ownership equity qualified for net capital<br>Total Credits                                                                              |    | 69,473      |
| Add:<br>Liabilities sunordinated to claims of general creditors allowable                                                                      |    |             |
| In computation of net capital                                                                                                                  |    | 0           |
| Oilier (deductions) or allowable liabilities<br>Total Debits                                                                                   |    | 0<br>0      |
| Total capital and allov-alJle subordinated liabilities                                                                                         |    | 69,473      |
| Deductions ancVor charges:<br>Total non-allo~"able assets from Statement of Financial ConditiOIJ                                               |    | (21,690)    |
| Net Capital before haircuts on securities positions                                                                                            |    | 47,783      |
| Haircuts on securities (computed, where applicable, pursuant to 13c301(fJ:                                                                     |    | 0           |
| Net Capital                                                                                                                                    | \$ | 47,783      |
| CAPITAL REQUIREMENTS                                                                                                                           |    |             |
| 6 2/?, % of aggregate .indebiedness                                                                                                            |    | 1,482       |
| Minimum capital requirement                                                                                                                    |    | 5,000       |
| Net capital in excess of requirements                                                                                                          |    | 42,783      |
| Ratio of Aggregate Indebtedness to<br>Net Capital                                                                                              |    | .4653 to l  |
| Reconciliation with Company's Computation (included in<br>Part II of Form X-l 7A-5 as of December 31, 2021)<br>As Amended on February 15, 2022 |    |             |
| Net Capital, as reported in Company's Part II unaudited Focus Report                                                                           | s  | 47,783      |
| Net Capital, per above                                                                                                                         |    | 47,783      |
| Difference                                                                                                                                     | \$ |             |

There are no material differences between the net capital reflected in the above computation and the net capital reflected in the Company's FOCUS Report as of December 31, 2021.

{19}------------------------------------------------

#### SCHEDULE II COMPUTATION FOR DETERMINATION OF RESERVE REQUIREM.ENTS UNDER RULE 15c3-3 (EXEMPTION)

### YEAR ENDED December 31, 2021

Pursuant to Rule **l** 7a-5(d) (4) of the audited computations ofNct Capital pursuant to Rule 15c 3-l and computation for Determination of Reserve requirements pursuant to Ruic 15c 3-3 submitted by L.O. Thomas & Co., Inc., in my opinion no material differences exist which wouJd materially effect the reserve requirements pursuant to Rule 15c 3-3 or its claim for exemption.

{20}------------------------------------------------

#### SCHEDULE Ill INFORMATION RELATING TO POSSESS[ON OR CONTROL REQUIREMENTS (EXEMPTION)

#### PURSUANT TO RULE I Sc 3-3 of the Securities and Exchange Commission

#### *As* of December 31, 202 l

#### **<sup>11</sup>EXEMPT UNDER 15c3-3(k)(2)(ii)**

Pursuant to rule 15c 3-3 relating to possession or control requirements, L.O. Thomas & Co., Inc. has not engaged in the clearing or trading of any securities and did not hold customer funds or securities during the year ended December 31, 2021 and therefore is claiming exemption to this schedule pursuant to paragraph **(k)(2)(ii)** of SEC Ruic 15c3-3. The firm's minimum net capital requirement pursuant to paragraph (a)(2)(vi) of SEC Rule l 5c3-l will be \$5,000,

{21}------------------------------------------------

#### **;i\UCHAEL T. REMUS**

# {je,r,4ied P«&k */I~*

P.O. Box 2555 Hamilton Square, NJ 08690 **Tel:** 609•540-1751 **Fax:** 609-570-5526

#### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

## To: The Board of Directors and Stockholder of **L.O. Thomas** & Co., **Inc.**

I have reviewed management's statements, included in the accompanying Exemption Report, in which (1) LO. Thomas & Co., Inc. identified the following provisions of 17 C.F.R. § 15c3-3(k) under which L.O. Thomas & Co., Inc. cJaimcd an exemption from 17 C.F.R. §240. l 5c3-3: undcr-k(2)(ii), (the "exemption provisions<sup>0</sup> ) and (2) L.O. Thomas & Co., Inc. stated that L.O. Thomas & Co., Inc. met the identified exemption provisions throughout the most recent fiscal year without exception. L.O. Thomas & Co., Inc. management is responsible for compliance with the exemption provisions and its statements.

My review was conducted in accordance with the standards of the Public Company Accountlng Oversight Board (U nitcd States) and, accordingly, incl udcd inquiries and other required procedures to obtain evidence about L.O. Thomas & Co., Inc. 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, l do not express such an opinion.

Based on my review. I am not aware of any material modifications that should be made to managcmcnCs 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 l 5c3-3 under the Securities Exchange Act of 1934.

Michael T. Remus, CPA Hamilton Square! New Jersey February 12~ 2022

{22}------------------------------------------------

SUPPLEMENTAL SIPC REPORT

DECEMBER 31, 2021

{23}------------------------------------------------

#### **MICHAEL T. REMUS**

# *ee'ttc#ed* 'Pu&«. A~

P.O. l3ox 2555 Hamilillll Square, NJ 08690 **Tel:** 609-540-1751 **Fax:** 609-570-5526

Report of lmlepcndcnt Registered Public Accounting Finn on Applying Agreed-upon Procedun:s

LO. Thom<1s & Co., Inc.

In accordance with Ruic l 7a-5(e)(4) under the Securities Exchange Acl of 1934 and with the SIPC Series 600 Rulc.s, I have performed the procedures enumerated below, which were agreed lo by LO. Thomas & Co., [nc. and and the Securilics Investor Protection Corporation (SIPC) with respect to the ac(;ompanying General Assessment Reconciliation (Form SJPC-7) of L.O. Thomas & Co., Inc. for the year ended December 31, 2021 , solely lo assist you and SIPC in evaluating L.O. Thomas & Co., Inc.'s compliance with the applicahlc instructions or the General Assessment RG-conciliation (Form SIPC-7). L.O. Thomas & Co., Inc. management is responsible for the firms compliance with those requirements. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the Public Company Ac(;ounting Oversight Board (United States). The sufficiency ofthesc procedures is solely the r<.!sponsibility of those parties specified in this report. Consequently, I make no representation regarding the sufficiency oflhc proccdur~s described below either for the purpose for which this report has been requested or for any other purpose. The procedures I performed and my findings arc as follows:

- 1. Compared lisied assessment payments on SlPC-7 \vith respective cash disbursements journals, noling nod ifforenccs;
- 2.. Compared the amounts reported on the audited Form X-17 A-5 for the year ended December 31, 2021, as applicable, with the amounts reported in Fonn SIPC-7 for the year ended December 31. 2021, noting no di ffcn.::nces;
- 3. Compared any a<!justmc11ts reported in Form SIPC-7 with supporting schedules and working papers, noting no differences, and
- 4. Proved the arithmelical accuracy of the calculations reflected in Form SIJ>C-7 and in the related schedules and working pap0rs supporting the adjustments, noting no ditrcrcnccs.

I was nol engaged to, and did not conduct an examination, lhc objective of which would be lhc expression ofan opinion on compliance. Ac(;ordingly, 1 do noi express such an opinion. Had I performed additional procedures, other rnattcn, might have come lo my attention that would have been reported to you.

This rcpo1t is intended solely for the infonnation and use of the specified parties listed above ancl is not intended to be and should no( be used by anyone other than Lhcse specified parties.

Michael T. Remus, CPA Hamilton Square, Ne\v Jersey February 12, 2022

{24}------------------------------------------------

### **L.O. Thomas** & **Co., Inc. SIPC General Assessment Recontlliatlon December 31, 2021**

#### General Assessment Calculation

| Total Revenue               | 1,529,638<br>\$ |
|-----------------------------|-----------------|
| Deductions                  | (1,447,732)     |
| SIPC Net Operating Revenues | 81,906          |
| Rate                        | 0.0015          |
| General Assessment Due      | LB              |
| Less Payments: SIPC 6       | (83)            |
| Plus: Interest              |                 |
| Remaining Assessment Due    | 40              |
| Paid with SIPC 7            | (50)            |
| Balance Due (Overpayment)   | \$<br>(10)      |

There is no maredal difference between the SIPC-7 and this reconciliation.

See Independent Accountants' Report.

{25}------------------------------------------------


Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.