# L.O. THOMAS & CO. INC. X-17A-5 (2025-04-15) — Broker-dealer annual report

- Company: L.O. THOMAS & CO. INC.
- Form: X-17A-5
- Filed: 2025-04-15
- Period: 2024-12-31
- Accession: 0000846416-25-000002
- CIK: 846416
- File #: 8-40875
- Type: Broker-dealer
- Material weakness: No
- Auditor: Joseph Ferrara
- Auditor location: Hamilton, NJ
- Contact: John W Risley Jr
- Phone: 800-300-5096
- Email: john.risley@lothomas.com
- Website: lothomas.com
- Signed by: John W Risley Jr (President/CEO)

Original filing: https://www.sec.gov/Archives/edgar/data/846416/000084641625000002/2024AuditA.pdf

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

0MB APPROVAL 0MB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden

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

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FACING **PAGE** 

Information Required Pursuant to Rules 17a-S, 17a-12, and 18a-7 under the Securities Exchange Act of 1934

FILING FOR THE PERIOD BEGINNING **O 1 /Q 1 /2024**  AND ENDING **12/31/2024** 

MM/DD/YY

**A. REGISTRANT IDENTIFICATION** 

# NAME oF FIRM: L.O. Thomas & Co., Inc.

TYPE OF REGISTRANT (check all applicable boxes):

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

ADDRESS OF PRINCIPAL PLACE OF BUSI NESS: {Do not use a P .0. 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                                  | john.risley@lothomas.com                                                  |                 |
| (Name)                                       | (Area Code- Telephone Number)                                             | {Email Address} |
|                                              | B. ACCOUNTANT IDENTIFICATION                                              |                 |
|                                              | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* |                 |
| Ferrara CPA                                  |                                                                           |                 |

| (Name- if individual, state last, first, and middle name) |                       |         |            |  |  |
|-----------------------------------------------------------|-----------------------|---------|------------|--|--|
| 100 Horizon Center Blvd.                                  | Hamilton              | NJ      | 08691      |  |  |
| (Address)                                                 | (City)                | (State) | (Zip Code) |  |  |
| 12/17/2024                                                |                       | 7259    |            |  |  |
| Te of Reglstratloo ,rith PCAOB ){tt app)i~bl•J            |                       |         |            |  |  |
|                                                           | FOR OFFICIAL USE ONLY |         |            |  |  |
|                                                           |                       |         |            |  |  |

• Claims for exemption from the requirement that the annual reports be covered by the reports of an independent public accountant must be supported by **a** statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-5(e){l)(ii), if applicable.

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

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#### **OATH OR AFFIRMATION**

!, John Risley swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of L.o. Thomas & Co .. Inc. as of

**12/31** 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.

Signature: Title: President

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

- ii (a) Statement of financial condition.
- D (b) Notes to consolidated statement of financial condition.
- ii (c) Statement of income (loss) or, if there is other comprehensive income in the period(s) presented, a statement of comprehensive income {as defined in§ 210.1-02 of Regulation S-X).
- ii (d) Statement of cash flows.
- ii (e) Statement of changes in stockholders' or partners' or sole proprietor's equity.
- D (f) Statement of changes in liabilities subordinated to claims of creditors.
- ii (g) Notes to consolidated financial statements.
- iii (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable.
- D {i) Computation of tangible net worth under 17 CFR 240.18a-2.
- D (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.1Sc3-3.
- □ (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.1Sc3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable.
- 0 (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.15c3-3.
- Ii (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3.
- 0 (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.
- Iii (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 240.1Sc3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist.
- D {p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition.
- ii (q) Oath or affirmation in accordance with 17 CFR 240.17a-S, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable.
- D (r) Compliance report in accordance with 17 CFR 240.17a-S or 17 CFR 240.18a-7, as applicable.
- Iii (s) Exemption report in accordance with 17 CFR 240.17a-S or 17 CFR 240.18a-7, as applicable.
- D (t) Independent public accountant's report based on an examination of the statement of financial condition.
- 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.
- D (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable.
- iii (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.l 7a-5 or 17 CFR 240.18a-7, as applicable.
- D (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.1Sc3-le or 17 CFR 240.17a-12, as applicable.
- D {y) Report describing any material inadequacies found to exist or found to have existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). D (z) Other:------------- - ------ ------ -----------

<sup>\*\*</sup>To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e)(3) or 17 CFR 240.18a-l(d)(2}, as applicable.

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

#### **Exemption Statement pursuant to SEC Rule 17a-5 For the Year Ended December 31, 2024**

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

**L.0.** Thomas & Co., Inc. (the "Company") 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:

(I) The Company is designated by its FINRA membership agreement to operate under the exemptive provisions of paragraph **(k)(2)(ii)** of SEC Rule 15c3-3.

(2) The Company met the identified exemption provisions in 17 C.F.R. §240.15c3-3(k)(2)(ii) throughout the most recent fiscal period without exception.

(3) The Company is also exempt from the provisions ofRule 15c3-3 because the Company's other business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to l 7C.F.R. § 240.l 7a-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 cany PAB accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year without exception.

L.O. Thomas & Co., Inc.

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

By:

~w,~\_ JW.Risiey

Title: CEO

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

## Report Pursuant to Rule 17a-S of

The Securities and Exchange Commission

*Financial Statements anti Supplemental Schedules* 

As of and for the Year Ended December 31, 2024

(Including Report of Independent Registered Public Accounting Firm) 1

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## **Ferrara CPA**

100 Horizon Center Blvd. Hamilton, NJ 08691 **Tel:** 609-865-53 91 **F:ix:** 609-435-3422

## Report of Independent Registered Public Accounting Finn

To: The Board of Directors 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, 2024, and the related statements of income, changes in stockholder equity and cash flows for the year then ended, that are filed pursuant to Rule l 7a-5 under the Securities Exchange Act of 1934 and the related notes (collectively referred to as the financial statements). In my opinion, the financial statements present fairly, in all material respects, the financial position of L.O. Thomas & Co., Inc. as of December 31, 2024 and its results of operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

#### **Basis for Opinion**

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

1 conducted my audit in accordance with the standards of the PCAOB. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. My audit included performing procedures to assess the risks of material misstatement of the financiaJ statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. My audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. I believe that my audit provides a reasonable basis for my opinion.

#### **Supplemental Information**

The Schedule I, Computation ofNct Capital Under SEC Ruic 15c3-l, Schedule fl, Computation for Identification of Reserve Requirements Under SEC Rule 15c3-3 *(exemption)* and Schedule III, Infonnation Relating to Possession or Control Requirements Under SEC Ruic l 5c3-3 *(exemption)*  has been subjected to audit procedures performed in conjunction with the audit of L.O. Thomas & Co., Inc. '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 infonnation reconciles to the financial statements or the underlying accounting and other records, as applicabley and performing procedures to test the completeness and accuracy of the information presented in the supplemental infonnation. 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.~. §240.l 7a-5. In my opinion, the Schedule I, Computation of Net Capital Under SEC Rule 15c3..:l, Schedule II, Computatio,n 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.

[ have served as L.O. Thomas & Co., Inc. auditor since 2024.

Ferrara CPA Hamilton, New Jersey April 10, 2025

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# **L.O. Thomas & Co., Inc.**  STATEMENT OF FINANCIAL CONDITION December 31, 2024

#### ASSETS

| Current Assets                           |               |
|------------------------------------------|---------------|
| Cash                                     | \$<br>73,500  |
| Commissions receivable                   | 17,001        |
| Prepaid expenses                         | 16,838        |
| Total Assets                             | \$<br>107,339 |
| LlABILlTIES&STOCKHOLDEREQUITY            |               |
| Liabilities                              |               |
| Current Liabilities                      |               |
| Accounts payable & accrued expenses      | 6,550         |
| Commissions payable                      | 21,505        |
| Total Liabilities                        | 28,055        |
| Commitments and contingencies (Note 6)   |               |
| Stockholder Equity                       |               |
| Common Stock, no par value, 1,000 shares | 30,000        |
| authorized I 00 issued and outstanding   |               |
| Additional paid-in-capital               | 5,900         |
| Retained earnings                        | 43,384        |
| Total Stockholder Equity                 | 79,284        |
| TOTAL LIABILITIES & STOCKHOLDER EQIBTY   | \$<br>107,339 |

"See accompanying notes to financial statements.''

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# **L.O. Thomas** & **Co., Inc.**  Statement of Income

# For the Year Ended December 31, 2024

# REVENUES

| Commissions, net of clearing f~es | 219,050<br>\$ |
|-----------------------------------|---------------|
| Mutual fund and 12b-1 fees        | 825,707       |
| Other revenue                     | 646,561       |
| Total Revenues                    | 1,691,318     |
| EXPENSES                          |               |
| Corn.missions                     | 1,366,160     |
| Occupancy                         | 31,301        |
| Compensation and benefits         | 57,394        |
| Regulatory fees                   | 25,016        |
| Legal and professional            | 11,840        |
| Technology and cormnunication     | 15,968        |
| General and administrative        | 31,927        |
| Travel and entertainment          | 4,768         |
| Total Expenses                    | 1,544,374     |
| Income before income ta'x         | 146,944       |
| Income tax                        | 1,775         |
| Net Income                        | \$<br>145,169 |

"See accompanying notes to financial statements."

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#### L.O. Thomas & Co., Inc. Statement of Changes in Stockholder Equity Year Ended December 31, 2024

r

|                                   |        | Common Stock<br>Additional<br>Pard - 111 |         |       | Retamed |           | Total<br>Stockholder |           |
|-----------------------------------|--------|------------------------------------------|---------|-------|---------|-----------|----------------------|-----------|
|                                   | Shøres | Amount                                   | Capital |       |         | Eamings   |                      | Equity    |
| Balance, December 31, 2023        | 100    | 30.000<br>ഗ                              | ନ୍ତ     | 5,900 | ಳ       | 12,575    | A                    | 48,472    |
| Net Income                        |        |                                          |         |       |         | 145 169   |                      | 145,169   |
| Distributions paid to shareholder |        |                                          |         |       |         | (114,360) |                      | (114,360) |
| Balance, December 31, 2024        | 100    | 30 000<br>งก                             | S       | 5,900 | 67      | 43.384    | UT                   | 79-284    |

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# **L.O. Thomas** & **Co., Inc.**  Statement of Cash Flows For the Year Ended December 31, 2024

| Net income                                          | 145,169      |
|-----------------------------------------------------|--------------|
| Adj11stments to Reconcile Net income to Net         |              |
| Cas.b Provided By Operating Activities:             |              |
| (Increase) Decrease in:                             |              |
| Commissions receivable                              | 10,647       |
| Prepaid expenses                                    | (985)        |
| Increase (Decrease) in:                             |              |
| Accounts payable and accrued expenses               |              |
| Commissions payable                                 |              |
| Net cash provided by Operating Activities           | 153,858      |
| Cash Flows From Financing Activities                |              |
| Distnbution paid to shareholder                     | (114,360)    |
|                                                     | 39,498       |
| Net cash increase for the period                    |              |
| Cash at beginning of period                         | 34,002       |
|                                                     | 73,500<br>\$ |
| Cash at end of period                               |              |
| SujlplemenpiliIDisclosure of Cash Flow Infonnarion: |              |
| Taxes Paid                                          | 1,775        |

"See accompanying notes to financial statements."

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**L.O. Thomas** & **Co., Inc.**  Notes To Financial Statements December 31, 2024

#### **Note 1** p **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 lndustry Regulatory Authority (" FINRA") and the Securities Investor Protection Corporation ("SIPC"). The transactions are conducted on a fully disclosed basis with other broker-dealers. Accordingly, the Company operates under the exemptive provisions of the Securities and Exchange Commission Rule 15c3-3 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 to conduct business in other states. The Company's primary source of revenue is providing brokerage services to customers, who arc prcdom inately smal I and middle-market business and indi vi<luals.

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

*( a) Basis of 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.

# *(b) Use of Er;timates*

The prcpamtion of financial statements in conformity with generally accepted accounting principles requires management to make estimates and a,;sumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts o:f revenue and expenses during the reporting period. Actual results could differ from those estimates.

#### *( c) Statement of"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 course ofbusiness. The company has adopted the indirect method of presenting the statement of cash flows in accordance with current authoritative pronouncements. There were no cash equivalents at December 31, 2024.

#### *(d) Commissions*

The commission based revenue is recorded on a settlement date basis. Securities transactions, underlying the commissions, are also recorded on a settlement date basis. Generally accepted accounting principles requires revenue to be recognized on a trade date ba'iis. There is no material difference behveen trade-and settlement date. The Company believes that the performance obligation is satisfied on the settlement because the underlying financial instrument or purchaser has been identified, the pricing agreed to and the risks and rewards 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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## **L.O. Thomas** & Co., **Inc.**  Notes To Financial Statements December 3 **l** , 2024

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

The Company also earns commissions from the sale of various insurance products. Revenue is recognized in accordance with ASC Topic 606 as services are rendered and a given contract's identified performance obligations are satisfied generally when the premium due has been fully funded and the transaction has closed.

There were no unsatisfied performance obligations at December *31,* 2024.

## *(e) Office Equipment*

Office equipment is stated at cost. Significant additions or improvements extending asset lives are capitalized; normal maintenance and repair cost are expensed as incurred. Depreciation has been computed using the straight-line method for financial statement reporting and various accelemtcd methods allowable for income tax purposes. The cost and related accumulated depreciation of property and equipment retired or disposed of arc removed from the accounts and the resulting gains or losses are reflected in income.

#### *(f) Commissions* receivable

Commissions receivable have been adjusted for all known uncollectible accounts. An allowance for doubtful accounts is not provided since, in the opinion of management all amounts recorded on the books are deemed co11ectible. Commissions receivable are not collateralized.

#### *{.{{) Accounts Payable*

Accounts payable consist ofall 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 Federal and New Jersey state income tax purposes as an S-Corporation. Under this structure, the shareholder is liable for any Federal or State income tax due. Thel'efore, 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 ofincome or loss allocable to the shareholder are subject to examination by federal 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 federal and state income tax purposes which di ff er from the accounting methods used in preparing the financial statements. Accordingly, the net income or loss of the shareholder and the resulting balances in the shareholders' capital account reported for federal and state income tax purposes may differ from the balances reported for those same items in these financial statements.

The Company recognizes and measures its unrecognized tax benefits in accordance with ASC Topic 740, Income Taxes.

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## **L.O. Thomas** & **Co., Inc.**  Notes to Financial Statements December 31, 2024

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

Under that guidance the Company assesses the likelihood, based on their technical merit, that tax positions will be sustained upon examination based on the facts, circumstances and infonnation available at the 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.

Management has determined that the Company has no uncertain tax positions that would require financial statement recognition at December 31, 2024. 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 2020.

In addition, no income tax related penalties or interest have been recorded for the year ended December 31, 2024.

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

F ASB 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 price that would be received to sell an asset or paid to transfer a liability in an orderly trnnsaction between market participants at the measurement date. A fair val uc 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, are used to mea'iure fair value.

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

- *Level 1.* Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.
- *Level 1.* Inputs other than quoted prices included in level **l** that arc observable for the asseL~ 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 factors, including, for example, the type of security, the liquidity of markets, and other characteristics paiticuJar to the security. To the extent the valuation is based on models or inputs that are less 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 measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fairvalue 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 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 1, 2024

#### *{j) Advertising and Marketing*

Advertising and marketing costs arc expensed as incurred.

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

General and administrative costs are expensed as incurred.

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

The Company is subject to the SEC Uniform Net Capital Rule (SEC Rule **l** 5c3-l ), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to ncl capital, both as defined, shall not ex.ceed 15 to I (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 JO to 1 ). At December 31, 2024, the Company had net capital of \$48,402, which was \$43,402 in excess ofits required minimum net capital of\$5,000. The Company's net capital mtio was .5796 to L

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

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

#### Concentrntion 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, 2024. As of December 31, 2024 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, 2024 commissions receivable of \$2 930 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.

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## **L.O. Thomas** & **Co.,** Inc. Notes To Financial Statements December 31, 2024

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

Pursuant to Securities and Exchange Commission Rule 15c3-l(e)(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, 2024 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, 2024 or during the year then ended.

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, 2024 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 stockholder under a month to month operating lease. The kasc 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 tha.1 expire *will* be renewed or replaced with similar leases.

In addition, the Company paid the stockholder a salary in the amount of \$57,394 and reimbursed the stockholder for various travel and overhead expenses.

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

The C.ompanY. is. required JQ jmplement policies and procedures. relating to anti-money laundering, compliance, susp1c1ous activ1t1.es, and currency transact10n reportrng ancrdue <11hgence on customers who open accounts with the Company. At December 3 l, 2024 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 Rule 15c3-3 and, therefore, is not required to maintain a "Special Reserve Bank Account for the Exclusive Benefit of Customer's".

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## **Note** 10 - **Segment Reporting**

The Company is engaged in a single line of business as a securities broker-dealer. The Company has identified its CEO as the chief operating decision maker ("CODM"), who uses net income to evaluate the results of the business, predominantly in the forecasting process, to manage the Company. Additionally, the CODM uses excess net capital (see Note 4), which is not a measure of profit and loss: to make operational decisions while maintaining capital adequacy, such as whether to reinvest profits or make profit distributions to its Parent. The Company's operations constitute a single operating segment and therefore,-a single reportable segment, because the CODM manages the business activities using information of the Company as a whole. The accounting policies used to measure the profit and loss of the segment are the same as those described in the summary of significant accounting policies,

## **Note 11** - **Subsequent Events**

The Company has evaluated subsequent events occurring after the statement of financial condition date through the date of April 10, 2025 which is the date the financial statements. were available to be issued\_ Based 011 this evaluation, the Company has detennined that no subsequent events have occurred which require disclosure in or adjustment to the financial statements.

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

Supplementary Information Pursuant to Rule 17a-5 of the Securities Exchange Act of 1934 As of.December 31, 2024

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

#### L.O. Thomas & Co., Inc. COMPUTATION OF NET CAPITAL Year Ended December 31, 2024

#### Schedule I

#### COrtdPUTATION OF:NETCAPITAL UNDER RULE 15c3-1 O:f' THE SECURITIES AND EXCHANGE COMMISSION

| Total ownership equity from Statement of Financial Condition                                              |                                    | s | i9,284      |
|-----------------------------------------------------------------------------------------------------------|------------------------------------|---|-------------|
| Deduct ownership equity not allowable for Net Capital<br>Total ownership equity qualified for net capital | Total Credits                      |   | 0<br>79.284 |
|                                                                                                           |                                    |   |             |
| Add:<br>Liabilities sunordinated to claims of general creditors allo\Vable                                |                                    |   |             |
| In computation of net capital                                                                             |                                    |   | 0           |
| Other (deductions) or allowable liabilities                                                               |                                    |   | 0           |
|                                                                                                           | Total Debits                       |   | 0           |
| Total capital and allo\vable subordinated. liabilities                                                    |                                    |   | 79,284      |
| Deductions and/or charges:                                                                                |                                    |   |             |
| Total non-allowable assets from Statement of Financial Condition                                          |                                    |   | (30,882)    |
| Net Capital before haircuts on securities positions                                                       |                                    |   | 48,402      |
|                                                                                                           |                                    |   |             |
| Haircuts on securiiies ( computed, where applicable, pursuant to 13c30 l (f):                             |                                    |   | 0           |
| Net Capital                                                                                               |                                    | s | 48.402      |
| CAPITAL REQUIRE.\.1ENTS                                                                                   |                                    |   |             |
| 6 2/3 % of aggregate indebtedness                                                                         |                                    |   | 1,870       |
| Minimum capital requirement                                                                               |                                    |   | 5,000       |
| Net capital in excess of requirements                                                                     |                                    |   | 43.402      |
|                                                                                                           | Ratio of Aggregate Indebtedness to |   |             |
|                                                                                                           | Net Capital                        |   | .5796 to 1  |
| Reconciliation with Company's Computation (included in<br>Pru.tII ofForm X-17A-5 as of December 31, 2024) |                                    |   |             |
| Net Capital, as reported in Company's Part II unaudited Focus Report                                      |                                    | S | 48,402      |
| Net Capital, per above                                                                                    |                                    |   | 48,402      |
| Difference                                                                                                |                                    |   |             |
| Thel'e are no material differences between the net capital reflected in the above computation             |                                    |   |             |

and th.e net capital reflected in the Company's FOCUS Report as of December 31, 2024.

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

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

## SCHEDULE II COMPUTATION FOR **DETERMINATION** OF RESERVE REQUIREMENTS UNDER RULE l 5c3-3 (EXEMPTION)

# YEAR ENDED December 31, 2024

Pursuant to Rule 17a-5(d) (4) of the audited computations ofNet 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 cxi~1: which wou1d materiaily effect the reserve requirements pursuant to Rule 15c 3-3 or its claim for exemption.

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

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

#### SCHEDULE III INFORMATION RELATJNG TO POSSESSION OR CONTROL REQillREMENTS {EXEMPTION)

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

## As of December 31, 2024

## **"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, 2024 and therefore is claiming exemption to this schedule pursuant to paragraph (k)(2)(ii) of SEC Rule 15c3-3.

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

#### **Ferrara CPA**

I 100 Horizon Center Blvd. Hamilton, NJ 08691 **Tel:** 609-865-5391 **Fax:** 609-435-3422

#### 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) L.O. Thomas & Co., Inc. identified the following provisions of 17 C.F.R. §15c3-3(k) under which L.O. 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.l 7a-5, (the "exemption provisions 11) and (2) L.O. Thomas & Co., Inc. 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 (United States) and, accordingly, included 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, 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 al1 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.l 7a-5 of Rule 15c3-3 under the Securities Exchange Act of 1934.

Ferrara CPA Hamilton, New Jersey April l 0, 2025

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

#### L.0. Thomas & Co .• Inc.

#### Exemption Statement pursuant to SEC Rule l 7a-5 For the Year Ended December 31, 2024

#### STATEMENT OF EXEMPTION FROM SEC RULE l5c3-3

L,.0. Thomas & Co., Inc. {the "Company')is a registered broker-dealer subject to Rule l 7a-5 promulgated bylhe Securities and Exchange Commission ( 1 7 C .F .R 5240. l 7a-5, "Reports to be made by certain brokei-s and dealers"). ThisExemptionReportwas preparedasrequiredby 17 C. F.R. 5240.l 7a-5(dXl)and( 4 ). To the bestofitsknowled~ a:JJd belief, the Company states the following:

( **J** ) The Company is designated by its FINR.Arnembersbip agTeement to o pa-ateundec the exempti ve provisions of paragraph **(k)(2)(ii)** of SEC Rule 15c3-3.

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

(3) The Company is also exem ptf rom the provisions ofRule I 5c3-3 becausethe Company's other business activities contemplated by Footnote 74 of the SEC Release No. 34-7007 3 adopting amaidments to I 7C. F.R § 2 40 .17a-5 are limited to: (I) receiving transaction-based compensation from the sale of various insurance products and the Company (I) did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers; (2) did not carry accounts of orfor customers; and (3) does not carry PAB accounts (as defined in Rule I 5c3-3) throughout the most recent fiscal year without exception.

L.O. Thomas & Co., Inc.

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

By:

Title: CEO

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

{26}------------------------------------------------

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

SUPPLEMENTAL SIPC REPORT

DECEMBER 31, 2024

{27}------------------------------------------------

#### Ferrara CPA

100 Horizon Center Blvd. Hamilton, NJ 08691 **Tel:** 609-865-5391 **Fax:** 609-435-3422

Report of Independent Registered Public Accounting Firm on Applying Agreed-upon Procedures

To: The Board of Directors and Stockholder of LO. Thomas & Co., Inc.

In accordance with Rule l 7a-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 the Securities Investor Protection Corporation (SlPC) with respect to the accompanying General Assessment Reconciliation (FonnSIPC-7) ofL.O. Thomas & Co., Inc. for the year ended December 31, 2024, solely to assist you and SIIJC in evaluating L.O. Thomas & Co., Inc. 's compliance with the applicable instructions of the Genernl Assessment Reconciliation (Form SIPC-7). L.O. Thomas & Co., Inc. management is responsible for the firm.-; compl iance with those requirements. Th is agreed-upon proccdur6s 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 ofthose 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 purpose. The procedures I performed and my findings are as foUows:

- I. Compared listed assessment payments on SIPC-7 with respective cash disbursements journals, noting no diff ercnccs;
- 2.. Compared the amounts reported on the audited Form X-17 A-5 for the year ended December 31, 2024, as applicable, with the amounts reported in Form SIPC-7 for the year ended December 31, 2024, noting no differences;
- 3. Compared any adjustments reported in Fonn SIPC-7 with supporting schedules and working papers. noting no differences, and
- 4. Proved the arithmetical accuracy of the calculations reflected in Form SlPC-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 1 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 information 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.

Ferrara CPA Hamilton, New Jersey April 10, 2025

{28}------------------------------------------------

# **L.O. Thomas** & Co., Inc. SIPC **General Assessment Reconciliation Derember 31,** 2024

| General Assessment Calculation |                 |
|--------------------------------|-----------------|
| Total Revenue                  | 1,691,318<br>\$ |
| Deductions                     | (1,612,919)     |
| SIPC Net Operating Revenues    | 78,399          |
| Rate                           | 0.0015          |
| General Assessment Due         | 117             |
| Less Payments: SJJ>C6          | (112)           |
| Plus: Interest                 |                 |
| Remaining Assessment Due       | 5               |
| Paid with SIPC 7               | (5)             |
| Balance Due (Overpayment)      | \$              |

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

See Independent Accountants' Report.

{29}------------------------------------------------


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