# L.O. THOMAS & CO. INC. X-17A-5 (2024-03-15) — Broker-dealer annual report

- Company: L.O. THOMAS & CO. INC.
- Form: X-17A-5
- Filed: 2024-03-15
- Period: 2023-12-31
- Accession: 0000846416-24-000001
- 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
- Email: risley@lothomas.com
- Website: lothomas.com
- Signed by: John W Risley (PRESIDENT)

Original filing: https://www.sec.gov/Archives/edgar/data/846416/000084641624000001/Audit2023dpdf.pdf

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|                                                                                                                                                                 | UNITED STATES<br>SECURITIES AND EXCHANGE COMMISSION<br>Washington, D.C. 20549                                            |                           |                                            |  |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------|---------------------------|--------------------------------------------|--|
|                                                                                                                                                                 | ANNUAL REPORTS                                                                                                           |                           | SECFILE NUMBER                             |  |
|                                                                                                                                                                 | FORM X-17A-5                                                                                                             |                           | 8-40875                                    |  |
|                                                                                                                                                                 | PART III                                                                                                                 |                           |                                            |  |
|                                                                                                                                                                 | FACING PAGE<br>Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 |                           |                                            |  |
| FILING FOR THE PERIOD BEGINNING 01/01/2023                                                                                                                      | AND ENDING 12/31/2023                                                                                                    |                           |                                            |  |
|                                                                                                                                                                 | MM/DD/YY                                                                                                                 | MM/DD/YY                  |                                            |  |
|                                                                                                                                                                 | A. REGISTRANT IDENTIFICATION                                                                                             |                           |                                            |  |
| NAME OF FIRM: L.O. Thomas & Co., Inc.                                                                                                                           |                                                                                                                          |                           |                                            |  |
| TYPE OF REGISTRANT (check all applicable boxes):<br>Broker-dealer - Di Security-based swap dealer<br>Check here if respondent is also an OTC derivatives dealer | L 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                                                                                                                                                         | NJ                                                                                                                       |                           | 08221                                      |  |
| (City)                                                                                                                                                          | (State)                                                                                                                  | (Zip Code)                |                                            |  |
| PERSON TO CONTACT WITH REGARD TO THIS FILING                                                                                                                    |                                                                                                                          |                           |                                            |  |
| John Risley                                                                                                                                                     | 609-927-4044                                                                                                             | john .risley@lothomas.com |                                            |  |
| (Nome)                                                                                                                                                          | (Area Code - Telephone Number)                                                                                           | (Email Address)           |                                            |  |
|                                                                                                                                                                 | B. ACCOUNTANT DENTIFICATION                                                                                              |                           |                                            |  |
| Michael T Remus CPA                                                                                                                                             | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing *                                               |                           |                                            |  |
|                                                                                                                                                                 | (Name - if individual, state last, first, and middle name)                                                               |                           |                                            |  |
| PO Box 2555                                                                                                                                                     | Hamilton Square NJ                                                                                                       |                           | 08690                                      |  |
| (Address)<br>02/23/2010                                                                                                                                         | (City)<br>3598                                                                                                           | (State)                   | (Zip Code)                                 |  |
| (Date of Registration with PCAOB)(if applicable)                                                                                                                |                                                                                                                          |                           | IPCAGB Registration Number, if application |  |
|                                                                                                                                                                 | FOR OFFICIAL USE ONLY                                                                                                    |                           |                                            |  |
|                                                                                                                                                                 | * Claims for exemption from the regallement that the annual reports of an independent public                             |                           |                                            |  |

accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-5(e)(1)(ii), if applicable.

Persons who are to respond to the collection of information contained in this form are not reguired to respond unless the form disolavs a currently valid OMB control number.

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#### OATH OR AFFIRMATION

swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of LO. Thomas & Go Inc. of the country of the country of the states of 12/31 2 03 , 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.

Title ·

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 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.
- (f) Statement of changes in liabilities subordinated to claims of creditors.
- = (g) Notes to consolidated financial statements
- (h) Computation of net 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.
- . {{} Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3.
- i (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.
- [ (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.
- 1 (n) Information relating to possession or controf requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable.
- (o) Keconciliations, including appropriate explanations, of the FOCUS Report with computation of net worth under 17 CFR 240.18-3, or 17 CFR 240.18-2, or 17 CFR 240.18-2, 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-12, or 17 CFR 240.18a-7, as applicable.
- [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.
- [] (t) Independent public accountant's report based on an examination of the statement of financial condition.
- (u) Independent public accountant's report based on an examination of the 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-S or 17 CFR Z40.18a-7, as applicable.
- َ (w) independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240 18a-7, as applicable.
- [] (x) Supplemental reports on applying agreed upon procedures, in accordance with 17 CFR 240.15c3-1e 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).
- 2 (z) Other:

<sup>\*\*</sup>To request confidential treatment of this filing, see 17 CFR 240.170-5(e)/3) or 17 CFR 240.180-7(d)/2), as applicable.

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# L.O. Thomas & Co., Inc. (SEC I.D. No. 8-40875)

# Report Pursuant to Rule 17a-5 of

The Securities and Exchange Commission

*Financial Stauunents and Supplemental Scheduks* 

As of and for the Year Ended December 3 **l~** 2023

(Including Report of Independent Registered **Public** Accounting Firm)

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# **MICHAEL T. REMUS**  *e~ Puttu. rt~*

P.O. Box 2555 Hamilton Square, NJ 08690 **Tel:** 609-540-l 7 51 **Fux:** 609-570-5526

#### Report of Independent Rce:i~tcrc<l Public Accounting Fim1

To: The Board of Dircclors and 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, 2023, and the related statements of income, changes in stockholder equity and cash flows for the year then ended, that arc filed pursuant to Ruic 17a-5 under the Securities Exchange Act of 1934 and the related notes (collectively referred to as the firiancial statements). In my opinion, the financial statements present fairly, in all malcrial respects, the financial position of LO. Thomas & Co., Inc. its ofDccernbcr 31, 2023 and its results of operations and its cash flows for Lhe 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 rcsponsibilily is to express an opinion on LO. Thomas & Co., Inc. ':s financial statcmcnls based on my audit. lam a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCJ\OB) and I am required to be independent with respect to LO. Thomas & Co., Inc. in accordance with the U.S. federal securities laws and the applicable rules and regulations or the Securities and Exchange Commission and the PCAOB.

I conducted my audit in accordance with the standards oflhc PCAOB. Those standards require that I plan and pcrfonn the audit to obtain reasonable assurance about whether Che financial statements ctrc free **of** material misstatement. whether due to error or fraud. My audit included performing procedures to assess the risks of material misstatement of the financial slatemcnts, whether due to error or fraud, a.nd 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 significant estimates made by management, as wdl as evaluating the overall presentation of the financial statements. I believe that my audit provides a rcaso.nablc basis for my opinion. -

#### **Supplemental In formation**

The Schedule I, Computation of Net Capital Under SEC Ruic I 5c3-l, Schedule IL Computation for Identification of Reserve Requirements Under SEC Rule I 5e3-3 *(cxemptioll)* .. md Schedule 1II, Infonnation Relating: to Possc~sion or Control Requirements Under SEC Rule l5c3~3 *(exemption)*  has been subjected to audit procedures performed in conj unction with the audit of LO. Thomas & Co., Inc. 's financial slatcmcnts.

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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 statement& or the underlying accounting and other records, as applicable, and pcrfonning procedures to test the completeness and accuracy of the information presented in the supplemental information. In fonning my opinion on the supplemental information, I evaluated whether the supplemental inform:Hioi1, including its form and content, is presented in conformity with 17 C.F. R. §240. l 7a-5. In my opinion, the Schedule 1, Computation of Net Capital Under SEC Rule 15c3-l, Schedule II, Computation for Identification of Reserve Requirements Under SEC Rule 15c3-3 *(exemption)* and Schedule III, Information Relating to Possession or Control Requirements Under SEC Rule 15c3-3 *(exemption)* is fairly stated, in all material respects, in relation to the financial statements as a whole.

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

Michael T. Remus, CPA Hamilton Square, New Jersey February 15, 2024

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# **L.O. Thomas** & **Co., Inc.**  STATEMENT OF FINANCIAL CONDITION December 31, 2023

#### **ASSETS**

| CUn-ent Assets                                    |              |
|---------------------------------------------------|--------------|
| Cash                                              | \$<br>34,002 |
| Commissions receivable                            | 27,648       |
| Prepaid expenses                                  | 15,852       |
| Fixed assets, office equipment net of accumulated | 0            |
| depreciation of \$25,133                          |              |
| Total Assets                                      | \$<br>77,502 |
| LIABILITIES & STOCKHOLDER EQUITY                  |              |
| Liabilities                                       |              |
| CUn·ent Liabilities                               |              |
| Accounts payable & accrued expenses               | \$<br>5,527  |
| Commissions payable                               | 23,500       |
| Total Liabilities                                 | 29,027       |
| Commitments and contingencies (Note 6)            |              |
| Stockholder Equitv                                |              |
| Common Stock, no par value, 1,000 shares          | 30,000       |
| authorized l 00 issued and outstanding            |              |
| Additional paid-in-capital                        | 5,900        |
| Retained eamings                                  | 12,575       |
| Total Stockholder Equity                          | 48,475       |
| TOTAL LIABILITIES & STOCKHOLDER EQUHY             | \$<br>77,502 |

"See accompanying notes to financial statements."

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

Statement of Income

For the Year Ended December 31, 2023

# FEVENUES

| Commissions, net of clearing fees | \$<br>223,801 |
|-----------------------------------|---------------|
| Mutual fund and 12b-l fees        | 713,113       |
| Other revenue                     | 597,760       |
| Total Revenues                    | 1,534,674     |
| EXPENSES                          |               |
| Commissions                       | 1,223,960     |
| Occupancy                         | 35,529        |
| Compensation and benefits         | 55,124        |
| Regulatory fees                   | 21,382        |
| Legal and professional            | 11,535        |
| Technology and communication      | 9,028         |
| General and administrative        | 36,237        |
| Travel and entertainment          | 6,387         |
| Total Expenses                    | 1~399, 182    |
| Income before income tax          | 135,492       |
| Income tax                        | 1,880         |
| Net Income                        | \$<br>133,612 |

11See accompanying notes to financial statements."

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#### L.O. Thounas & Co., Inc. Statement of Changes in Stockholder Equity Year Ended December 31, 2023

|                                   |        | Common Stock<br>Additional<br>Pard-in |    | Retained |    | Total<br>Stockholder |     |           |
|-----------------------------------|--------|---------------------------------------|----|----------|----|----------------------|-----|-----------|
|                                   | Shares | Amount                                |    | Capital  |    | Earmss               |     | Equity    |
| Balance, December 31, 2022        | 100    | \$ 30.000                             | ತೆ | 5-900    | ਟ  | 2.150                | క్  | 38.050    |
| Net Income                        |        |                                       |    |          |    | 133,612              |     | 133.612   |
| Distributions paid to shareholder |        |                                       |    |          |    | (123,187)            |     | (123.187) |
| Balance. December 31, 2023        | 100    | ភូមិ ប្រហែ                            | ಳು | 5.900    | లో | 12.575               | ್ತಿ | 48 175    |

"See accompanying notes to financial statements."

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# L.O. Thomas & Co., Inc. Statement of Cash Flows For the Year Ended December 31, 2023

| Cash Flows Form Operating Activities                               |               |
|--------------------------------------------------------------------|---------------|
| Net income                                                         | \$<br>133,612 |
| Adjustments to Reconcile Net income to Net                         |               |
| Cash Provided By Operating Activities:                             |               |
| (Increase) Decrease in:                                            |               |
| Commissions receivable                                             | (24,681)      |
| Prepaid expenses                                                   | (374)         |
| Increase (Decrease) in:                                            |               |
| Accounts payable and accrued expenses                              | (170)         |
| Commissions payable                                                | 22,141        |
| Net cash provided by Operating Aciivities                          | 130,528       |
| Cash Flows From Financing Activities                               |               |
| Distributions paid to shareholder                                  | (123,187)     |
| Net cash increase for the period                                   | 7,341         |
| Cash at beginning of period                                        | 26,661        |
| Cash at end of period                                              | \$<br>34,002  |
|                                                                    |               |
| Supplemental Disclosure of Cash Flow Information:<br>Interest paid | \$            |
|                                                                    |               |
| Taxes Paid                                                         | \$<br>1,880   |

"See accompanying notes to financial statements."

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**LO. Thomas** & **Co., Inc.**  Notes **To** Financial Statements December 31. 2023

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

LO. Thomas & Co., Inc. (!he Company) is a brokcr-dcakr registered with the Securities and Exchange Commission ("SEC") and is a member of the Financial Industry Rcgulatmy Authority {" FIN RA") and the Securities Investor Protection Corporation ("S[PC"). The transactions arc conducted on a fully disclosed basis with other broker-dealers. Aci.:ordingly, the Company operates under the cxemptive provisions of the Securities an<.I Exd1angc Commission Ruic ! 5t:3-3 Section (k)(2){ii) of the rule.

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

### Nofo 2 - Summ:.1ry of Significant Accounting Policies

*(a) Basis of Preselltation* 

The financial slatcrncnls and accompanying notes arc prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GJ\AP") unless otherwise disclosed.

#### *(b) Use o(Estimatcs*

The preparation of financial stakments in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assds and liabilities and disclosure of contingent asscls and liabilities at thi: date of the financial statements and the reported amounts of revenue and expenses during the reporting pcriod. Actual results could differ from those estimates.

# *( c) Statement ol Cash Flows*

For purposes of the statement of cash flows the Company has de lined cash cquivalcnls as highly liquid investments, with original maturities of less than ibrce months, that arc not held for sale in lhc ordinaiy course of business. The company has adopted the indirect method of presenting the statement of c.Jsh flows in accordance wilh current authoritative pronouncements. There were no cash equivalents at December 3 I, 2023.

#### *(d) Commissions*

The commission based revenue is recorded on a settlement date basis. Securities transactions, underlying the rnmmissions. arc also recorded on a scttlcmem date basis. Generally accepted accounting principles requires revenue Lo be recognized on a trade date basis. There is no material diffcrcncL: between trade and settlement date. The Company believes that the pcrlcmnancc obligation is satisfied on the sdtl(!mcnt because the underlying financial instrument or purchaser has been idcnlifo::d, the pricing agreed to and the risks and rewards of ownership have been transforrcd to/from the customer.

The Company's commission revenues can vary based on the pcrformam;c of the financial markets.

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### **L.O. Thomas** & **Co.,** I **Di..'.**  Notes To Financial Statements December 3 1, 2023

#### (J) *Commissions* - l'011tinued

The Company also cams commissions from the sale of various insurance products. Revenue is recognized in accordance with /\SC Topic 606 as services arc rendered and a given contract's identified pcrfo1mancc obligations arc satisfic<l generally when the premium due has been fully funded and the transaction has closed.

There were no unsatisfied performance obligations at December 31, 2023.

### *(c) Qflice Equipment*

Office equipment is stated at cost. Significant additions or improvements extending asset lives arc ca pita I izcd; nonnal maintenance and repair cost are expensed as incurred. Dcprcciat ion has been computed using the straight-line method for financial statement reporting and various accelerated methods allowable for income tax purposes. The cost and related accumu la tcd d cprccialion of property and equipment retired or disposed of arc removed from the accounts and the resulting gains or losses arc reflected in income.

#### *(/) Commissions* receivable

Commissions receivable have been adjusted for all known uncollcctibk accounls. 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 are not collateralizcd.

### (g) *Accounh· Payable*

Accounts payahlc consist of all operating liabilities that can be matched 10 the period the goods or services \Vere incutTcd.

#### *(h) Income Taxes*

The Company elected lo be taxed for Federal and New Jersey state income iax purposes as an S-Corporation. Under this structure, the shareholder is liable for any Federal or Stale income tax due. Therefore, no provision or liability for federal or state income taxes 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 fodcral 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 accounting methods for fodl':ral and state income tax purposes which <lifTcrfrom the accounting methods used in preparing the finam:ial statements. Accordingly, the net income or loss of the shareholder and lhc resulting balances in the shareholders' capital account reported for federal am! state: income tax purposes may differ from lhc balances rcpo1tcd for those same items in these financial .statements.

The Company recognizes and mcmmrcs its unrecognized tax benefits in accordance with A.SC Topic 740, lm:oml! Taxes.

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## LO. Thomas & Co., Inc. Notes to Financial Statements December 3 l , 2023

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

Under !hat guidance the Company assesses the likelihood, based on their tcdmical merit, thal tax positions will he sustained upon examination based on the facts, circumstances an<l infom1ation available al the end of the financial reporting period. The measurement of unrecognized tax benefit~ is adj ustcd when new infom1ation is available, or when an event occurs that requires a change.

Management has determined that the Company has no uncertain tax positions that would require financial statement recognition at December 31; 2023. This dctctmination will always be subject to ongoing evaluation as facts and cin;urnstancc.:s may require. The Company remains subject to U.S. federal and stat~ income tax audits for all years suhscqucnt to 2019.

In addition, no income tax related penalties or interest have been recorded for the year ended December 31, 2023.

#### *(ij Fair Value Hier(m:hy*

FASH ASC 820 defines fair value, establishes a framework for measuring fair value, and establishes a fair value hierarchy which prioritizes the inputs to valuation techniques. Fair value is the pticc that would be received Lu sell an asset or paid to transfer a I iability in an orderly Lra.nsaction belwccn market participants at the measurement date. A fair value measurement assumes that thctransaclion 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 arc consistent with the market, income or cost approach, as specified by F ASB ASC 820, arc used to mca!;urc fair value.

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

- *Level 1.* Quoted prices (unadjush!d) in active markt::ts fur identical assets or liabililics that the Company has the ability to access at the measurement date.
- *Level 2.* inputs other than quoted prices included in level I 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 can vary from security to security and is affr:ctcd by a wide variety of factors, including, for example, the type of security, the liquidity of markcls. ahd other characteristics particular to the security. To the extent the valuation is based on models or inputs tha1 arc Jess observable or unobserv;.iblc in the markci, the determination of fair value requires more judgment. Accordingly, the degree of judgment cxcrcisi:d in dclcnnining the fair value is greatest for instruments categorized in level 3.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair val uc hierarchy within 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 its lmtircly\_

For further discussion of fa.ir value, sec ''Note 5 Fair Value'·

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L.O. Thomas & Co., Inc. Notes Lo Financial Statements December 31, 2023

#### *(j) Advertising and lvfarketing*

Advertising and marketing costs in the amount of \$50 arc expensed as incurred.

#### *(k) General and Administrative* £)::penses

General and administrative costs arc expensed as incurred.

#### **Ninte 3** - **Net Capital Requirements**

The Company is subject to the SEC Uniform Net Capital Ruic (SEC Rule 15c3-l), which requires the maintenance of minimum net capital and rcqu ires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to I (and the rule of the "applicable" exchange also provides that cq uity capital may not be withdrawn or cash dividends paid if the resulting net capital ratio would exceed 10 to l ). At December 31, 2023, the Company had net capital of \$29,640, which was \$24,640 in excess of its required minimum net capital of \$5,000. The Company's nd capital rntio was . 9793 to I.

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

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

#### Concentration of Cash

The Company maintains its cash at a financial institution in amounts that at times may exceed federally insured limits. The Company has not experienced any losses in such accounts through December 31, 2023. As of December 31, 2023 there were no cash balances held in any accounts that were not fully insured.

#### Concentration of Clearing Broker

The Company uses one clearing broker for all clearing services. At December 31, 2023 commissions receivable ofSJ,536 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, account~ payable and other current liabilities arc rd1cctcd in the financial slalemcnts at carrying value which approximates fair value because of the short-term maturity of these instruments.

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

**L.O. Thomas** & **Co., Inc.**  Notes To Fimrncial Statements December 3 I , 2023

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

Pursuant to Securities and Exchange Commission Rule 15c-3-l(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 or December 31, 2023 the Company was not in violation of this requirement.

**The** Company had no lease or equipment rental commitments (other than as discussed in Note 7 below), no underwriting commitments, no contingent liabilities, and had not been named as a defendant in any lawsuit at December 31, 2023 or during the year then ended.

From time to lime thC'. Contpany and its stockholders arc the subject of litigation. inquires from Regulatory Agencies and arbitration claims. As of December 3 l, 2023 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 leases office space from its sole stockholdt:r under a month to month operating !case. The lc-asc requires monthly payments of \$2,400 with the 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 normal course of business, leases that expire ~·ill be renewed or replaced with similar leases.

In addition, the Company paid the stockholder 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 required to implement policies and procedures relating to anti-money laundering, compliance, suspicious activities, and currency transaction reporting and due diligence on cuswmcrs who open accounts with the Company. At December 31, 2023 the Company had implemented such policies and procedures.

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

The Company is exempt from the Securities and Exchange Commission Ruic I 5c3-3 and, therefore, is not required to maintain a "Special Reserve Bank Account for the Exclusive Benefit of Custonu.:r's".

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

The Company has evaluated subsequent events occurring aficr the statement of financial condition date through the date of February 15,2024 which is the date the financial statements wcrcavailablc lo be issued. Based on this evaluation, the Company has determined that no subsequent events have occurred which rcq uirc disclosure in or adj uslmcnl to the financial statements.

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

Supplementary Information Pursuant to Rule 17a-5 of the Securities Exchange Act of 1934 As of December 31, 2023

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

#### L.O. Thomas & Co., Inc. COMPUTATION OF NET CAPITAL Year Ended December 31. 2023

#### Schedule I

#### COMPUTATION OF NET CAPITAL UNDER RULE 15e3-1 OF THE SECURITIES AND EXCHANGE COMMISSION

| Total ownership equity from Statement of Financial Condition<br>Deduct ownership equity not allowable for Net Capital | 5 | 48,475<br>0 |
|-----------------------------------------------------------------------------------------------------------------------|---|-------------|
| Total ownership equity qualified for net capital Credits                                                              |   | 48.475      |
| Add:<br>Liabilities sunordinated to claims of general creditors allowable<br>In computation of net capital            |   | 0           |
| Other (deductions) or allowable liabilities                                                                           |   | 0           |
| Total Debits                                                                                                          |   | 0           |
| Total capital and allowable subordinated liabilities                                                                  |   | 48.475      |
| Deductions andior charges:<br>Total non-allowable assets from Statement of Financial Condition                        |   | (18.835)    |
| Net Capital before haircuts on securities positions                                                                   |   | 29,640      |
| Haircuts on securities (computed, where applicable, pursuant to 13c301(f):                                            |   | 0           |
| Net Capital                                                                                                           | S | 29.640      |
| CAPITAL REQUIREMENTS                                                                                                  |   |             |
| 6 2/3 % of aggregate indebtedness                                                                                     | S | 1,935       |
| Mininum capital requirement                                                                                           |   | 5,000       |
| Net capital in excess of requirements                                                                                 | S | 24,640      |
| Ratio of Aggregate Indebtedness to<br>Net Capital                                                                     |   | .9793 to 1  |
| Reconciliation with Company's Computation (included in<br>Part II of Form X-17A-5 as of December 31, 2023)            |   |             |
| Net Capital, as reported in Company's Part II unaudited Focus Report                                                  | S | 29.640      |
| Net Capital, per above                                                                                                |   | 29,640      |
| Difference                                                                                                            | S |             |

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, 2023.

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

# SCHEDULE lI COMPUTATJON FOR DETERMINATION OF RESERVE REQUIREMENTS UNDER RULE 15c3-3 (EXEMPTION)

# YEAR ENDED December 31, 2023

Pursuant to Rule 17a-5(d) (4) of the audited computations of Net Capital pursuant to Rule 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 differences exist which would materially effect the reserve requirements pursuant to Rule l Sc 3-3 or its claim for exemption.

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

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

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

# As of December 31, 2023 •

# **"EXEMPT UNDER l5c3-3(k)(2)(ii)**

Pursuant to rule l5c 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 foods or securities during the year ended December 31, 2023 and therefore is claiming exemption to this schedule pursuant to paragraph (k)(2)(ii) of SEC Rule l 5c3-3.

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# **MICHAEL T. REMUS**  *~ied"P~A~*

P.O. Ilox 2555 Hamilton Square. NJ 08690 **Tel:** 609-540-1751 **Fux:** 609-570-5526

# REPORT OP 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 wl1ich (I) LO. Thomas & Co., Inc. identified the following provisions of 17 C.F.R. §15c3-3(k) under which LO. Thomas & Co., Inc. claimed an exemption from 17 C.F.R. §240.15c3-3: undcr-k(2)(ii) and Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C\_F.R. § 240.17a-5, (the "exemption provisions") and (2) LO. Thomas & Co., Ille. stated that LO. 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 Accounting Oversight Board (Un itcd States) and, accordingly, incl udcd i nqu iri cs and other rcqu ired procedures 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, 1 do not ex.press 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) and Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. *§* 240.17a-5 of Rule 15c3-3 under the Securities Exchange Act of 1934.

Michael T. Remus, CPA Hamilton Square, New Jersey February 15, 2024

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

#### **Exemption Sta tcment pursuant to SEC Rule 17 a-5 For the Year Ended December 31, 2023**

#### STA TE:MENT OF EXEMPTION FROM SEC RULE 15c3-3

LO. Thomas & Co., Inc. (the "Company'1 is a registered broker-dealer subject to Rule 17a-5 promulgated by the Securities and Exchange Commission{l 7 C.F.R 5240.l ?a-S, "Reports to be made by certain brokers and dealers"). This ExemptionReportwaspreparedasrequiredby 17 C.F.R. 5240.l7a-5(dXI)and(4). To thebestofits knowled~ and belief, the Company states the following:

(1) The Company is designated by its FINRAmembership agreement to operate under the ex.emptive provisions of paragraph **(k)(2)(ii)** of SEC Rule l5c3-3.

(2) The Company met the identified exemption provisions in 17 C.F.R. §240.l 5c3-3(k)(2)(ii) throughout the most recent fiscal period without exception.

(3) The Company is also exempt from the provisions ofRule **l** *5* c3-3 because the Company's o I.her business activities con tern plated by Footnote 7 4 of the SEC Release No. 34-7007 3 adopting amendments to 17C.F.R. § 240 .17a-5 are limited to: (1) receiving transaction-based compensation from the sale of various insurance products and the Company ( 1) did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers; (2) did not carry accounts of or for customers; and (3) does not carry PAB accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year without exception.

L.O. TI1omas & Co., Inc.

I, John W. Risley, swear (or affirm) 1hat, to my best knowledgeand belief, this Exemption Statement is true and correct.

By:

Title: CEO


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