# L.O. THOMAS & CO. INC. X-17A-5 (2023-03-30) — Broker-dealer annual report

- Company: L.O. THOMAS & CO. INC.
- Form: X-17A-5
- Filed: 2023-03-30
- Period: 2022-12-31
- Accession: 0000846416-23-000002
- CIK: 846416
- File #: 8-40875
- Type: Broker-dealer
- Material weakness: No
- Auditor: MICHAEL T REMUS
- Auditor location: TRENTON, NJ
- Contact: JOHN W RISLEY JR
- Phone: 609-927-4044
- Email: john.risley@lothomas.com
- Website: lothomas.com
- Signed by: JOHN W RISLEY JR (President)

Original filing: https://www.sec.gov/Archives/edgar/data/846416/000084641623000002/audit2022.pdf

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

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# **ANNUAL REPORTS FORM X-17 A-5 PART Ill**

| SEC FILE NUMBER |  |
|-----------------|--|
| 8-40875         |  |

MM/DD/YY

**FACING PAGE**  Information Required Pursuant to Rules **17a•5,** 17a-IZ, and 18a-7 under the Securities Exchange Act of 1934

AND ENDING **12/31/2022** 

FILING FOR THE PERIOD BEGINNING **Q 1/01/2022** 

MM/DD/YY

**A. REGISTRANT IDENTIFICATION** 

NAMEoFr-iRM: LO. Thomas & Co., Inc.

TYPE OF REGISTRANT (check all applicable boxes):

~ Broker-dealer ::J Security-based swap dealer 0 Major security-based swap participant C Check here if respondent is also an OTC derivatives dealer

ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.)

# 2106 New Road Suite A6

|                                              |         | {No. and Street)             |                          |
|----------------------------------------------|---------|------------------------------|--------------------------|
|                                              | Linwood | NJ                           | 08221                    |
|                                              | (City)  | (State)                      | (Zip Code)               |
| PERSON TO CONTACT WITH REGARD TO THIS FILING |         |                              |                          |
| John Risley                                  |         | 609-927-4044                 | john.risley@lothomas.com |
| {Name)                                       |         | (Area Code-Telephone Number) | (Email Address)          |

#### **B. ACCOUNTANT IDENTIFICATION**

#### INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing\*

#### Michael T Remus CPA

| Hamilton Square |                                                                  |            |  |
|-----------------|------------------------------------------------------------------|------------|--|
|                 | NJ                                                               | 08690      |  |
| (City)          | (State]                                                          | {Zip Code) |  |
|                 | 3598                                                             |            |  |
|                 | IPCAOB Reglmatloo Norr>be<, tt applicable)                       |            |  |
|                 |                                                                  |            |  |
|                 | of Re,ls,<at;oo wl<h PCAOB)llf appll<able) FOR 0FFIOAL USE ONL y |            |  |

• Claims for exemption from the requirement that the annual reports be covered by the reports of an independent public accountam 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)(ll{ii), if applicable,

Persons who are to res l)ond to the collection of information conta im:d in th is form are not reqt.1ired to respond unless the form displays a currently valid 0MB control number.

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#### OATH **OR AFFIRMATION**

I, John Risley swear (or affirm) that, to the best of my knowledge and belief, the

financial report pertaining to the firm of LO Thomas & Co, Inc. as of Deeember 3·, 2~ is true and correct. I further swear {or affirm) that neither the company nor any partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely as that of a customer.

President

#### This filing0 contains (check all applicable bo>tes):

- !""! (a} Statement of financial c:ondition.
- LJ (bl Notes to consolidated statement of financial condition.
- ~ (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).
- ~ (d) Statement of cash flows.
- !! (e) Statement of changes in stockholders' or partners' or sole proprietor's equity.
- L (fl Statement of changes in liabilities subordinated to claims of creditors.
- ~ (g) Notes to rnnsolidated financial statements.
- !!ii (h) Computation of net capita\ under 17 CFR 240.1Sc3-1 or 17 CFR 240.18a-l, as applicable.
- w (i) Computation of tangible net worth under 17 CFR 240.18a-2.
- r 7 {j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.1Sc3-3.
- r <sup>1</sup>**{k} Computation for determination of security~based swap reserve requfrements pursuant to Exhibit B to 17 CFR 240.1Sc3-3 or**  Exhibit A to 17 CFR 240.18a-4, as applicable.
- u (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.15c3-3.
- ~ (rn) Information relating to possession or control requirements for customers under 17 CFR 240.1Sc3-3.
- (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 applfcable.
- **!!i** (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 appllcable, and the reserve requirements under 17 CFR 240.15c3-3 **or** 17 CFR 240.18a-4, as applicable, if material diffe.rences exist, or a statement that no material differences exi,t.
- 0 (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.l 7a-12, or 17 CFR 240.18a-7, as applicable.
- 0 (r) Compliance report in accordance with 17 CFR 240.l?a-5 or 17 CFR 240.18a-7, as applicable.
- ~ (s) Exemption report in accordance with 17 CFR 240.17ac5 or 17 CFR 240.18a-7, as applicable.
- D (t) Independent public accountant's report based on an examination of the statement of financia\ condition.
- i!!l (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.l?a-12, as applicable.
- □ (v) Independent public accountant's report based on an examiniltion of certilin statements in the compliance report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable.
- i!1 (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-S or 17 CFR 240.18a-7, as applicable .
- .\_\_, (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-le or 17 CFR 240.17a-12, as applicable.
- ' · (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). \_ (z) Other:---------------- ---~------------------
- 
- 0To 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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# L.O. Thomas & Co., Inc.

#### FI!\ANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION

For the Year Ended

December 31, 2022

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# **l\UCHAEL T. RK\'IUS**  *ee~ 'P«ilk rlucu«ta4*

**P** .0. Box 2555 Hamillon Square, NJ 08690 **Tel:** (>09-540-175 I **Fax:** (,OlJ-S70-552<i

#### Report of fndepcndcnt Rcgislm!d Public Accountin~ Firm

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

#### **Opinion on the f'jnancial Statements**

r have audited the accompanying statement of financial condition ofL.O. Thomas & Co .. Inc. as of December 31. 2022, and the rdatc<l statements of income, changes in stockholder equity and cash flow~ for the year then ended, that arc fi.k.d pursuant to Rule l ?a-5 under the Securities Exchange Act of 1934 an<l the rdatc<l notes [and schcduks] (collectively referred to as the financial statements). In my opinion, the rinanciaJ statements present fairly, in all material respects, the financial position ol'L.O. Thoma:; & Co., Inc. as ofDc:cembcr 31, 2022 and its results of operations and its cash flows for the year !hen ended in conformity with accounting principles generally accepted in the Uni led States of America.

#### **Basis for Opinion**

These financial statements arc the responsibility ofL.O. Thomas & Co., Inc. 's management. My responsibility is to express an opinion on L.O. Thoma.-; & Co., lnc. 's financial statements based on my audit. I am a public accounting firm registered with the Public Company Accounting Ovcrsighl Board (United States) (PCAOB) and lam required lo be independent with rcspecl to LO. Thomas & Co., Inc. in accordance with ihc U.S. federal securities laws and the applicable rules and regulations of the Securities an<l Excbange Commission and the PCAOB.

I conducted my audit in accordance with the standards of the PCAOB. Those standards require that l plan and pcrfom1 the audit to obtciin reasonable assuram;e about whdhcr the financial statements arc free of" material misstatement, whether due to error or fraud. My audit included performing procedures to assess !he risks of material misstalcmcnt of lhc financial statements. whether due to error or fraud, and performing proccdun:s that respond to those risks. Such procedures included examining, on a Lest basis. t:videncc regarding the amounts <1nd disclosures in the firnrncial stc:1lcmcnts. My audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall prcscn(ation of the financial statements. I believe that my audit provides a reasonable basis for my opinion.

#### **Supplemental Information**

The Schcdu le I, Computation ofNc1 Capital Under SEC Ruic l 5c3-l, Schedule II, Computation for Idcntilfoation of Reserve R.cquirc1m:nls Under SEC Ruic 15c3-3 (cxe111plio11) and Schedule UL Information Relating to Possession or Control Requirements Under SEC Rule 15d-3 *(c.xemption)*  has been subjcde<l to audit procedures performed in conjunction with ihe audit ofL.O. Thomas & Co., Jnc. ·s financial statements.

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The supplemental info1mation is the responsibility ofL.O. Thoffilis & Co., Inc. 's management. My audit procedures included dctc1111ining whether the supplemental infom1ation reconciles to the financial statements or th1: 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 my opinion on the supplemental information, I evaluated whether the supplemental information, including its form and content, is presented in conformity with 17 C.F .R. §240.17a-5. In my opinion, the Schedule I, Computation of Net Capital Under SEC Ruic 15c3-1, Schedule II, Computation for Identification of Reserve Requirements Under SEC Ruic I 5c3-3 *(exemption)* and Schedule III, Information Relating to Possession or Control Requirements Under SEC Rule l 5c3-3 *(exemption)* is fairly stated, in **all** material respects, in relation 1:{) the financial statements as a whole.

# ~ **7.** *Reffl@*

I have served as L.O. Thomas & Co., Inc. auditor since 2016.

Michael T. Remus. CPA Hamilton Square, New Jersey March 24, 2023

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# **L.O. Thomas** & Co •• Inc. STATEMENT OF FINANCIAL CONDITION December 31, 2022

#### **ASSETS**

| Current Assets                                    |              |
|---------------------------------------------------|--------------|
| Cash                                              | \$<br>26,661 |
| Commissions receivable                            | 2.967        |
| Prepaid expenses                                  | 15,478       |
| Fixed assets, office equipment net of accumulated | 0            |
| depreciation of \$25,133                          |              |
| Total Assets                                      | \$<br>45,106 |
| LIABILITIES & STOCKHOLDER EQUITY                  |              |
| Liabilities                                       |              |
| Curre11t Liabilities                              |              |
| Accounts payable & accrued expenses               |              |
| Commissions payable                               |              |
| Total Liabilities                                 | 7,056        |
|                                                   |              |

| Stockholder Equitv                       |              |
|------------------------------------------|--------------|
| Common Stock, no par value, 1,000 shares | 30,000       |
| authorized I 00 issued and outstanding   |              |
| Additional paid-in-capital               | 5,900        |
| Retained earnings                        | 2,150        |
|                                          |              |
| Total Stockholder Equity                 | 38,050       |
|                                          |              |
| TOTAL LIABILITIES & STOCKHOLDER EQUITY   | 45,106<br>\$ |

"See accompanying notes to financial statements."

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# **L.O. Thomas** & **Co., Inc.**

# Statement of Income

# For the Year Ended December 31, 2022

#### REVENUES

| Commissions, net of clearing fees | 189,687<br>\$ |
|-----------------------------------|---------------|
| Mutual fund and 12b-1 fees        | 777,820       |
| Other revenue                     | 425,935       |
| Total Revenues                    | 1,393,442     |
| EXPENSES                          |               |
| Commissions                       | 1,087,191     |
| Occupancy                         | 31,578        |
| Compensation and benefits         | 55,204        |
| Regulatory fees                   | 21,187        |
| Legal and professional            | 10,712        |
| Technology and communication      | 8,810         |
| General and administrative        | 35,026        |
| Travel and entertainment          | 5,503         |
| Total Expenses                    | 1.255,211     |
| Income before income tax          | 138,231       |
| Income tax                        | 1,525         |
| Net Income                        | 136,706<br>\$ |

"See accompanying notes to financial statements."

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#### **L.O. Thom** as & Co., Inc. Stat~ment of Changes in Stockholder Equity Year Ended December 31, ~◊21

|                                   |        | Common Stock | Additional<br>Paid-in | Retained    | fotal<br>Si oc kho Ider |
|-----------------------------------|--------|--------------|-----------------------|-------------|-------------------------|
|                                   | Shares | Amount       | £~~<br>_              | Eamin:rs    | Equitv                  |
| Bzlance, D~cember 31, 2022        | JOI)   | s ,0.001)    | s<br>5.900            | s<br>33.573 | s<br>69.-U3             |
| Net Income                        |        |              |                       | 136J06      | 136.706                 |
| Di;iributioni paid to shareholder |        |              |                       | (166,129)   | (168. 129)              |
| Balance, D~e:mher 31, 2022        | 100    | s 30,000     | s<br>5,9()0           | s<br>2 i50  | s<br>38 050             |

"See aecompanying notes to finaneial statements.'

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# **L.O. Thomas** & **Co.,** Inc. Statement of Cash Flows For the Year Ended December 31, 2022

#### **CASH FLOWS FROM OPERA TING ACTIVITIES**

| Net income                                        | s | 136,706   |
|---------------------------------------------------|---|-----------|
| Adjustments to Reconcile Net income to Net        |   |           |
| Cash Provided By Operating Activities:            |   |           |
| (Increase) Decrease in:                           |   |           |
| Commissions receivable                            |   | 28,742    |
| Prepaid expenses                                  |   | (934)     |
| Increase (Decrease) in:                           |   |           |
| Accounts payable and accrued expenses             |   | 1.200     |
| Commissions payable                               |   | (16,377)  |
| Net cash provided by Operating Activities         |   | 149,337   |
| Cash Flows From Financing Activities              |   |           |
| Distribution paid to shareholder                  |   | (168,129) |
| Net cash used in Financing Activities             |   | (168,129) |
| Net cash decrease for the period                  |   | (18,792)  |
| Cash at beginning of period                       |   | 45,453    |
| Cash at end of period                             |   | 26,661    |
|                                                   |   |           |
| Supplemental Disclosure of Cash Flow Information: |   |           |
| Interest paid                                     |   |           |
| Taxes Paid                                        |   | 1,525     |

"See accompanying notes to financial statements.''

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**LO. Thomas** & **Co., lnc.**  Notes To Financial Statements December 31, 2022

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

LO. Thomas & Co., lnc. (the Company) is a brokcr-deakr registered with the Securities and Exchange Commission ("SEC") and is a member oflbc Financial Industry Regulatory Authority (" FfNRA") and Lhe Securities Investor Protection Corporation ("SIPC"). The trnnsactions are conducted on a fully disclosed basis with other brokcr~dcakrs. Accordingly, the Company operates under the cxcmptivc provisions of the Securities and Exchange Commission Rule l5c3-3 Section (k)(2)(ii) of the rule.

The Company is registered and conducts business from their office located in Linwood, New Jersey, and is rcgisti.:rc<l to conduct business in other states. The Company's primary source of revenue is providing brokerngc services to customers, who arc predominately small and middle-market business and individuals.

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

*(a) Basis of Presentation* 

The financial statements and aecompanying notes arc prepared in accordance with accounting principks generally accepted in the United States of America ("U.S. GAAP") unless othcnvisc disclosed.

The preparation of financial statcmenls in conformity with generally accepted accounting principles requires manclgi:mcnt to make estimates and assumptions that aflect the re potted amounts of assets and liabilities and disclosure of contingent assets anJ liabilities at tbc <late of the financial stati;mcnls and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

# *( c) Statement of Cash Flows*

For purposes of the st:.itcment of cash flows the Company has defined cash cquivalenls as highly liquid investments, with original maturi tics of less than three months, that arc 11(lt hdd for sale in the ordinary course of bus incss. The company has adopted the i ndi rcct method of pres en ting the statement of cash il ows in accordance wilh current authoritative pronouncements. There wen; no cash equivalents at December 31.2022.

#### (i:IJ *Commissimrs*

The commission based rcvcmic is recorded on a settlement date basis. Securities transactions, underlying the commis·sions, are also recorded on a sctlkmcnt date basis. Generally a-:ccpted accounting principles rcquin:s revenue to be recognized on a trade date basi~. There is no material difference between trade and settlement date. The Company believes that the pcrfonnancc obligation is satisfied on the scllkmcnt because the underlying [inancial instrument or pun:hascr has been identified, Lhc pricing agreed to an<l ihe risk:,; and reward£; of ownership have been transferred to/from the customer.

The Company's commission revenues can vary based on the performance of the financial markets.

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#### **LO. Thomas** & **Co., Inc.**  Noles **To** Financial Statements December 3 L 2022

#### *(d) Commissions* - *continued*

The Company also cams commissions from the sale of various insurance products. Revenue is recognized in accordam:c with ASC Topic 606 as services arc rendered and a given contract's identified performance obligations arc sc1tisfied generally when the premium due has beL"n ii.illy funded and the t.nmsaction has closed.

There were no unsatisfied performance obligations at December 31, 2022.

#### *(c) O(fice Equipment*

Office equipment is 8tatcd at cust. Significant additions or Improvements cxtcnding asset lives arc capitalized; no1111al mainttmancc and rcpain.:ostarcexpcnscd as iilcum:d. Depreciation has been computed using tJ1c straight-li.ne method for financial stalcmcnl reporting and various accelerated methods allowable for income tax purposes. The cost and re lated accumulated d cprcciat ion or property and cq ui pmcnt retired or disposed of arc removed from the accounts and the resulting gains or losses are reflected in income.

#### *(fj Commissiom* receivable

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

#### (g) *Accmmls 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 ckdcd to be ta,xcd for Federal and New Jersey stale income tax purposes as an S-Corroration. Under this structure, the sharch()(dcr is liable for any Federal or State income tax due. Therefore, no provision or liability for federal or state income laxes has been included in the financial statements.

The Company's tax returns and the amount of income or loss allocable to the shareholder arc subject to examination by federal and staic 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 dctcnnincd by the taxing authorities.

Certain transactions may be subj cci to accounting ml:lhods for federal and stat c income tax purposes which differ from the accouniing methods used in preparing the financial slatcmcnls. -Accordingly, the net income or ! oss or Lhc share ho Ider and the rcsu **l** ting balances **in** lhc slrnreho Ide rs' capita I accoun l reported for federal and state income tax purposes may differ from the balances rcpo1tcd for those same items in these financial statements.

The Company rccognizt.:s and measures itl'i unrecognized lax benefits in accordance with ASC Topic 740, l11<.;on1c Taxes.

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#### **L.O. Thomas** & **Co., Inc.**  Notes to Financial Statc1rn.·nts December 31. 2()22

#### *(/,) income Taxes* - *continued*

Under lhat gllidancc the Company assesses the likelihood, based on their technical merit, that tax positions will be sustained upon examination bas<:d on lhc facts, circumstances and infom1ation available at the end of the financial reporting period. The mcasurcmcnl of unrecognized tax benefits is adjusted when new infom1ation is available, or wbcn an cvenL occurs that requires a change.

Management has determined that the Company has no uncertain lax positions that would require fin,mcial statement recognition at December 31, 2022. This dctcnnination will always be subject to ongoing evaluation as fads an<l circumstam:cs may require. The Company remains subj eel to lJ.S. federal and stale income tax audits for all years subsequent to 2018.

In addition, no income tax related penalties or interest have been recorded for the year ended December 31, 2022.

#### (i) *Fair Val11e l/ierarcln·*

FASB ASC 820 defines fair val uc, establishes a framework for measuring fair value, and eslablishes a fair value hierarchy which prioritizes 1hc inputs to valuation techniques. Fair value is the price that would he n~ccivcd 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 lo sell the asset or transfer the liability occurs in the principal market fortllc asset or liability or, in the absence of a principal mru·ket, the most advantageous market. Valuation techniques that arc consistent with the market, income or cost arproach, as specified by FASB ASC 820, arc used to measure fair value.

The fair value hicrnrchy prioritizes tbe inputs to valuation tcclmiqucs used to measure fair value into three broad levels:

- *level* l. Quoted prices (unadjusted) in at.:tivc markets for iJcntical assets or liabilities thal the Company has the ability to access at the measurement date\_
- *Level 2.* Inputs other than quoted prices included in level l that arc observable for the asscls or liability either directly or indirectly.
- *Level 3.* lnpuL<.; arc unobservable for the assets or liability.

The availability of observable inputs t:an vary from security to ~ccurity and is affected by a wide variety of factors, including, for example, the type of security, the liquidity of markets, and other characteristics particular to the security. To the extent !he valuation is based on models or inpuls lha! arc less observable or unobservable in the market, the determination of fair value rcquin:s more judgment. Accordingly, the degree of judgment cxcrcisi:<l in <lctcnnining the fair value is greatest for instruments categorized in level 3.

The inputs used to measure fair value may fall inlo different levels of the foir value hierarchy. In sui.;h cases, for disclosure purposes, the !eve! in the fair value hierarchy wilhin which the fair val uc measurement falls in it.s entirety is determined based on the lowest level inpul that is significant to the fair value measurement in its entirely.

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

{12}------------------------------------------------

**L.O. Thomas** & **Co., Jnc.**  Noles to Financial Statements December 31, 2022

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

Advertising and marketing costs in the amount of \$1.150 arc expensed as incurred.

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

General and administrative cost~ arc expensed as incurred.

#### Note 3 - **Net Capital Requirements**

The Company is subject to the SEC Unifonn Net Capital Rule (SEC Rule 15c3-**l** ), which requires the maintenance of minimum net capital and requires that 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 to to I). At December 31, 2022, the Company had net capital of\$21,707, which was \$16,707 in excess of its required minimum net capital of \$5,000. The Company's net capital ratio was .3251 to I.

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

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

#### Concentration ofCash

The Company maintains its cash at *a* finam:ial institution in amounts that at times may exceed federally insured limits. The Company has not experienced any losses in such accounts through December 31, 2022. As of December 31, 2022 there were no cash balances held in any accounts that were not fully insured.

#### Concentration of Clearing Brok.er

The Company uses one clearing broker for all clcarif!g services. At December 31, 2022 commissions receivable of\$2,967 was due from this broker.

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

#### **Note** 5 - **Fair Value**

Cash, receivables, accounts payable and other current liabilities are reflected in the financial statements at carrying value which approximates fair value because of the short-term maturity of these instruments.

{13}------------------------------------------------

## **L.O. Thomas** & **Co.,** Inc. Notes To Financial Stutcmcnts December 31, 2022

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

f <sup>1</sup> ursuanl to Securities and Exchange Commission Ruic 15c3-l(c.)(2) the Company may nol authorize distributions to i1s members if such distributions cause the Company's net capital to fall hclow 120% of the Company's minimum ncl capital requirement. J\s or December 3 L 2022 1hc Company was not in viola1ion of this requirement.

The Company had no lease or equipment rental commitmcnls (other than tis discussed in Note 7 bdow), no underwriting commitments, no contingent liabifaies, an<l had not been named as a defendant" in any lawsuit at December 31, 2022 or <luring the year then ended.

From time to time the Company and its stoekJ10l<lcrs arc lhc subject oflitigalion, inquires from Rcgul:llory Agencies and arbilrnlion claims. As of December 31 , 2022 the Company is not a su~jcct of litigation inquiries from any regulatory agencies or any other arbitration c laims.

#### **Note** 7 - **Related Party Transactions**

The Company leases office space from its sole stockbol<lcr under a month to month opcr:lling lease. The lease requires monthly payments of \$2.400 with the lease to continue al the same rate on a year-lo-year basis. The Company made lease payments of\$28.800 to the stockholder during the year. It is anticipated that in l11c normal course of business, leases that expire will be renewed or replaced with similar leases.

In addition, lhc Company paid the 5iockholdcr a sahHy in the amount of S55,204 and rcimbuThcd the stockholder for various travel and ovcrhcaJ expenses.

#### **Note 8** - **Anti-Money Launderin~ Policies** and **Procedures**

The Company is required to implement policies and proecdur(.-s relating to anti-money laundering, compliance, suspicious a ctivities. and currency transaction rcporling and due diligence on customers who open accounts with the Company. At December 3 1, 2022 ihe Company had impkmcntcd such policies and procedures.

#### **Note 9** - **Exemption from Ru.le 15c3~3**

The Company is exempt from the Securities and Exchange Commission Ruic 15c3-3 and, therefore, is not required to maintain a "Special Reserve Bank Accolmt for the Exclusive Benefit of Customer's".

#### **Note 10** - **Subsequent Events**

Tbc Company has evaluated subsequent events occun-ing aficr the statement of linancial condition date through the date of March 24, 2023 which is the date the financial slatemc11ts were available to be issued. Based on lhis evaluation. the Company has dclcrmined that no subsequent events have occurred which require disclosure in or adjustment to the financial stall:mcnts. ·

{14}------------------------------------------------

Supplementary Information

Pursuant to Rule 17a-5 of the

Securities .Exchange Act of 1934

As of December 31, 2022

{15}------------------------------------------------

#### **L.O. Thoma~** & Co., In.:. COl-.1PUTATION OF1\"""ET CAPITAL Year Ended December 31. 2022

#### Sch~dule I

#### COMPUTATION OF .NET CAPITAL 'UI\'1JER Rl."LE 15c3-1 OF THE SECCRITIES A,',;1) EXCHANGE CO'.\11'f1SSI0>

| Total ownrship equity from S1atement of Financial Condition<br>Deduct own.,rship equity not allowable for Net Capital                                      | s | 38,050<br>0 |
|------------------------------------------------------------------------------------------------------------------------------------------------------------|---|-------------|
| Total ownership equity qualified for net capital<br>Toial Credits                                                                                          |   | 38.050      |
| Add:<br>Liabilities ,unordinated to c !aims of general creditors allowable<br>In computatioo of net capital<br>Other (deductions) or allowable liabilities |   | 0<br>0      |
| Total Debits                                                                                                                                               |   | 0           |
| Total capital and allowable subordinated liabiUties                                                                                                        |   | 38,050      |
| Deductions anclior charges:<br>Total 1ion-allowable assets from Statem,mt of Financial Condition                                                           |   | (16,343)    |
| Net Capital before haircuts on securities positions                                                                                                        |   | 21,707      |
| Haircuts on securities ( computed, wheroe applicable, pursuant to 13c30 I (fJ:                                                                             |   | 0           |
| Net Capital                                                                                                                                                | s | 21.707      |
| CAPCTAL REQUIR.Ei'.YIEKTS                                                                                                                                  |   |             |
| 6 2/3 % of aggregate indebtedness                                                                                                                          | s | 470         |
| Minimum capital requirement                                                                                                                                |   | 5,000       |
| Net capital iJ1 excess of requirements                                                                                                                     | s | 16,707      |
| Ratio of Aggregate Indebtedness to<br>Net Capital                                                                                                          |   | .3251 to I  |
| Reconciliation with Company's Con1puiation (included in<br>Pai1 II ofFonn X-17A-5 as of December 31, 2022)                                                 |   |             |
| Net Capital, as reported in Corupan:ts Part II unaudited Focus Report                                                                                      | s | 21.707      |
| Net Capital, per aboYe                                                                                                                                     |   | 21,707      |
| Difference                                                                                                                                                 | s |             |

There are llO maierial differences between the net capital refl<"Cted in the aboYe computation a11d the net capital reflected in the Company's FOCUS Report as of December 31, 2022.

{16}------------------------------------------------

#### **LO. Thomas & Co., Inc.**

# SCHEDULE II COMPUTATION FOR DETERMINATION OF RESERVE REQUIREMENTS UNDER RULE 15c3-3 {EXEMPTION)

## YEAR ENDED December 31, 2022

Pursuant to Rule 17a-5(d) (4) of the audited computations ofNct Capital pursuant to Ruic 15c 3-1 and computation for Determination of Reserve requirements pursuant to Rule 15c 3-3 submitted by L.O. Thomas & Co., Inc., in my opinion no material diflcrcnccs exist which would materially effect the reserve requirements pursuant to RuJc 15c 3-3 or its claim 1-or exemption.

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

#### LO. Thomas & Co., Inc.

# SCHEDULE Ul INFORMATION RELATING TO POSSESSION OR CONTROL REQUIREMENTS (EXEMPTION)

# PURSUANT TO RULE 15c 3-3 of the Securities and Exchange Commission

# As of December 31, 2022

#### **"EXEMPT UNDER 15c3•3(k)(2)(ii)**

Pursuant to rule l5c 3-3 relating to possession or control requirements, LO. 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, 2022 and therefore is claiming exemption to this schedule pursuant to paragraph (k)(2)(ii) of SEC Rule 15c3-3. The firm's minimum net cap1tal requirement pursuant to paragraph (a)(2)(vi) of SEC Rule 15c3-l will be \$5,000.

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

# **MICHAEL T. REMUS**

~'P«&kA~

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, incl udcd in the accompanying Exemption Report, in which (1) L.O. Thomas & Co., Inc. identified the following provisions of 17 C.F.R. § 15d-3(k) under which LO. Thomas & Co., Inc. claimed an exemption from 17 C.F.R. §240.15c3-3: undcr-k(2)(ii), (the "exemption provisions") and (2) L.O. Thomas & Co., Inc. stated that L.O. Thomas & Co., lnc. 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 rcv1cw was conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) and, accordingly, included inquiries and other required 11roccdurcs to obtain evidence about LO. 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, I do not express such an opinion.

Based on my review, I am 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.

Michael T. Remus, CPA Hamilton Square, New Jersey March 24, 2023

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

#### L.O. Thomas & Co., Inc.

#### Exemption Statement pursuant to SEC Rule 17a-5 For the Year Ended December 31, 2022

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

LO. Thomas & Co., Inc. (the "Company") is a registered broker.dealer subject to Rl1le 17~5 promulgated by the Secnritles and Ex.c hnnge Commission (17 C.F.R- 5240.17a-5, "Reports to be made by ~rtain brokers and dealers"). This Exemption Report was prepared as required hy 17 C.F .R. 5240.I 7a-5( d)(IJ and ( 4). 1'.o the best ofits. knowledge and belie:t the Company states the following;

- ( 1) The Campany claimed 110 exemption .from 17 C.F.R.. 5240.15c3-3 under the following provisions of 17 C.F.R 5240.15c3-3(k)(2)(ii).
- (2) The C.ompany met the identified exemption provisions in 17 C.F.R.. §240.1Sc3-3(k)(2)(ii) throughout tb.e most ~t fiscal period wjthout exception.

L.O. Thomas & Co., Inc.

I, Joho W. Risley, swear (or affirm) that. to my best ku<iwledge and belief: thi!> Exemption Statement is true and correcr.

By:

rft;l/&~ ~

Title: CEO

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

**L.O. Thomas** & Co., **Inc.** 

SUPPLEMENTAL SIPC REPORT

DECEMBER 31, 2022

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

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

P.O. Box 2555 Hamilton Square, NJ 0\_8690 **Tel:** 609-540-1751 **Fax:** 609-570-5526

#### Report oflndependent Registered Public Accounting Firm on Applying Agreed-upon Procedures

L.O. Thomas & Co., Inc.

In accordance with Rule 17a-5(e)(4) under the Securities Exchange Act of 1934 and with the SIPC Series 600 Rules, I have performed the procedures enumerated below, which were agreed to by L.O. Thomas & Co., Inc. and and the Securities Investor Protection Corporation (SIPC) with respect to the accompanying General Assessment Reconciliation (Form SIPC-7) of L.O. Thomas & Co., Inc. for the year ended December 31, 2022 , solely to assist you and **SIPC** in evaluating **L.O.** Thomas & Co., Inc.'s compliance with the applicable instructions of the General Assessment Reconciliation (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 Accounting Oversight Board (United States). The sufficiency of these procedures is solely the responsibility of those parties specified in this report. Consequently, I 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 pmpose. The procedures I performed and my findings are as follows:

- 1. Compared listed assessment payments on SIPC-7 with respective cash disbursements j oumals, noting no differences;
- 2.. Compared the amounts reported on the audited Form X-17 A-5 for the year ended December 31, 2022, as applicable, with the amounts reported in Fonn SIPC-7 for the year ended December 31, 2022, noting no differences;
- 3. Compared any adjustments reported in Form SIPC-7 with supporting schedules and working papers, noting no differences, and
- 4. Proved 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.

I was not engaged to, and did not conduct an examination, the objective of which would be the expression of an opinion on compliance. Accordingly, I do not express such an opinion. Had I performed additional procedures, other matters might have come to my attention that would have been reported to you.

This report is intended solely for the infonnation and use of the specified parties listed above and is not intended to be and should not be used by anyone other than these specified parties.

*1Hidaet* **7.** *~€#Uta* 

Michael T. Remus, CPA Hamilton Square, New Jersey March 24, 2023

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

# **L.O. Thomas** & **Co., Inc. SIPC General Assessment Reconciliation December 31, 2022**

#### General Assessment Calculation

| Total Revenue               | 1,393,442<br>\$ |
|-----------------------------|-----------------|
| Deductions                  | (1,304,655)     |
| SIPC Net Operating Revenues | 88,787          |
| Rate                        | 0.0015          |
| General Assessment Due      | 133             |
| Less Payments: SIPC6        | (51)            |
| Phis: Interest              |                 |
| Remaining Assessment Due    | 82              |
| Paid with SIPC 7            | (82)            |
| Balance Due (Overpayment)   | 0<br>\$         |

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

See Independent Accowitants' Report.

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


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