# LAKERIDGE CAPITAL INC. X-17A-5 (2020-01-15) — Broker-dealer annual report - Company: LAKERIDGE CAPITAL INC. - Form: X-17A-5 - Filed: 2020-01-15 - Period: 2019-10-31 - Accession: 0000853643-20-000001 - CIK: 853643 - File #: 8-41532 - Material weakness: No - Auditor: Lerner & Sipkin CPAs, LLC - Auditor location: New York, NY - Contact: Ernest Kappotis - Phone: 9783357015 - Signed by: Ernest Kappotis (FINOP) Original filing: https://www.sec.gov/Archives/edgar/data/853643/000085364320000001/lakeridgesec.pdf --- {0}------------------------------------------------ #### **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** 0MB APPROVAL 0MB Number: 3235-0123 Expires: August31,2020 Estimated average burden hours per response .... . . 12.00 # **ANNUAL AUDITED REPORT FORM X-17A-5 PART Ill** | SEC FILE NUMBER | |-----------------| | B-41532 | **FACING PAGE** **Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder** | REPORT FOR THE PERIOD BEGINNING | ___
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MM/DD/YY | |-------------------------------------------------------------------------------------------------------|--------------------------------------------------------|------------|----------------------------------------------| | | A. REGISTRANT IDENTIFICATION | | | | NAME oF BROKER-DEALER: Lakeridge Capital Inc. | | | OFFICIAL USE ONLY | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.)
55 University Avenue, Suite M002 | FIRM I.D. NO. | | | | | (No. and Street) | | | | Toronto | Ontario Canada | M5J 2H7 | | | (City) | (State) | | (Zip Code) | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
Donald R. Pollard | | | 631-721-3541 | | | B. ACCOUNTANT IDENTIFICATION | | (Area Code - Telephone Number) | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* | | | | | Lerner & Sipkin CPAs, LLC | | | | | | (Name - if individual, state last, first, middle name) | | | | 132 Nassau St. Suite 1023 | New York
NY | | 10038 | | (Address) | (City) | (State) | (Zip Code) | | CHECK ONE: | | | | | I
✓
Certified Public Accountant | | | | | Public Accountant | | | | | B
Accountant not resident in United States or any of its possessions. | | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | | *\*Claims f or exemption from the requirement that the annual report be covered by the opinion of an independent public accountant must be supported by a statement of fac ts and circumstances relied on as the basis f or the exemption. See Section 240.l 7a-5(e)(2)* > **Potential persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OM B control number.** {1}------------------------------------------------ #### **OATH OR AFFIRMATION** I, **\_D\_o\_n\_a\_ld\_R\_.\_P\_o\_ll\_a\_rd \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_ ,** swear (or affirm) that, to the best of my .knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of Lakeridge Capital Inc. ----=-----:------::--:--------------------,---------------- ------, as of October 31 , 20\_1\_9 \_\_ , are true and correct. I further swear (or affirm) that neither the company nor any partner, proprietor, principal officer or director has any proprietary interest in any account classified solely as that of a customer, except as follows: *<* ~7~ Notary Public This report\*\* contains (check all applicable boxes): **EJ** (a) Facing Page. **EJ** (b) Statement of Financial Condition. :f::2~ Signatur~ Chief Executive Officer Title JESSIKA T. LOMBARDO Notary Public, State of 12New York No. 01 L063141 Qualified in Suffolk Co~nty *'ZL* Commission Expires Nov. ~. 20\_ ~ (c) Statement oflncome (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). E] ( d) Statement of Changes in Financial Condition. **E]** (e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital. **D** (t) Statement of Changes in Liabilities Subordinated to Claims of Creditors. ~ (g) Computation of Net Capital. (h) Computation for Determination of Reserve Requirements Pursuant to Rule 15c3-3. (i) Information Relating to the Possession or Control Requirements Under Rule 15c3-3. **El** (j) A Reconciliation, including appropriate explanation of the Computation ofNet Capital Under Rule 15c3-l and the Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3. **O** (k) A Reconciliation between the audited and unaudited Statements of Financial Conditio.n with respect to methods of consolidation. **EJ** (l) An Oath or Affirmation. **D**(m) A copy of the SIPC Supplemental Report. **D** (n) A report describing any material inadequacies found to exist or found to have existed since the date of the previous audit. \*\* *For conditions of confidential treatment of certain portions of this filing, see section 240. I 7a-5(e)(3).* {2}------------------------------------------------ ## **LAKERIDGE CAPITAL INC.** Statement of Financial Condition and Footnotes October 31 , 2019 (With Independent Auditors' Report Thereon Required by Rule 17a-5) These financial statements and schedules should be deemed confidential pursuant to Subparagraph (e)(3) of Rule l 7a-5 of the Securities and Exchange {3}------------------------------------------------ ### **TABLE OF CONTENTS** | REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM | 1 | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------| | STATEMENT OF FINANCIAL CONDITION | 2 | | STATEMENT OF OPERATIONS | 3 | | STATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY | 4 | | STATEMENT OF CASH FLOWS | 5 | | NOTES TO FINANCIAL STATEMENTS | 6 -
10 | | SUPPLEMENTARY INFORMATION PURSUANT TO RULE 17a-5
OF THE SECURITIES EXCHANGE ACT OF 1934:
COMPUTATION OF NET CAPITAL UNDER RULE
SCHEDULE I -
15c3-1 OF THE SECURITIES AND EXCHANGE COMMISSION
SCHEDULE II-INFORMATION RELATING
TO POSSESION CONTROL REQUIRED UNDER RULE 15c3-3 | 11 | | OF THE SECURITIES AND
EXCHANGE COMMISSION | 12 | | REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM REGARDING RULE 15c3-3 EXEMPTION REPORT | 13 | | MANAGEMENT STATEMENT REGARDING COMPLIANCE WITH
EXEMPTION PROVISIONS FROM SEC RULE 15c3-3 | 14 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) 132 Nassau Street. New York. NY 10038 Tel 212.571.0064 / Fax 212.571.0074 Jay Lerner. C.P.A. Uerner@lernerslpktn.com Joseph G. Slpkln, C.P.A. Jslpkln®lernerslpkln.com #### **Report of Independent Registered Public Accounting Firm** To the Stockholders of Lakeridge Capital Inc. *55* University Avenue Mezzanine Level, Suite M002 Toronto, Ontario M5J 2H7 #### Opinion on the Financial Statements We have audited the accompanying statement of financial condition of Lakeridge Capital Inc. (the "Company") as of October 31, 2019, the related statements of operations, changes in stockholders' equity, and cash flows for year then ended and the related notes and schedules ( collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of October 3 I, 2019, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States. #### Basis for Opinion These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. · The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 8 to the financial statements, the Company had losses from operations. If the losses continue it raises substantial doubt about the Company's ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. {5}------------------------------------------------ #### Auditor's Report on Supplemental Info rmation The informati on conta ined in the "Computation of Net Capital" sched ul e and the " Information Relating to Possession or Control Requirements for Brokers and Dea lers Pursuant to Rul e 15c3-3" schedule have been subj ected to audit procedures performed in conjunction with the audit of the Lakeridge Capital Inc. 's fi nancial statements. The supplementa l in fo rmation is the responsibility of the Company's management. Our audit procedures included determining whether such supplemental in formation reconciles to the fi nancial statements or the underlying accounting and oth er records, as applicable and performing procedures to test the completeness and accuracy of the info rmation presented in the su pplemental information. In forming our opinion on the supplementa l information we eva luated whether the suppl ementa l info rmation, including its fo rm and content, is presented in confo rmity with 17 C.F. R. §240.17a-5. In our opinion, the "Computation of Net Ca pita l" sched ule and the "In fo rmation Relating to Possession or Control Requirements for Broke rs and Dea lers Pursuant to Rul e 1 Sc3-3" schedul e are fa irly stated, in all material respects, in relati on to the financial statements as a whole. ,~ -: JvyJw- Cl'~ *iu* Lerner & Sipkin CPAs, LLP Certifi ed Publi c Accountants (NY) We have served as the Company's aud itor since 201 5. New York, NY January 13, 2020 {6}------------------------------------------------ #### LAKERIDGE CAPITAL INC. STATEMENT OF FINANCIAL CONDITION AS OF OCTOBER 31, 2019 **ASSETS** | Cash | \$
23,022 | |-----------------------------------------------------------------------------------------------|--------------| | TOTAL ASSETS | \$
23,022 | | LIABILITIES AND STOCKHOLDER'S EQUITY | | | Liabilities | | | Accrued expenses | \$
18,448 | | Total Liabilities | 18,448 | | Equity | | | Capital stock, without par value,
6,000 authorized, 6,000 shares issued
and outstanding | 12,500 | | Additional paid in capital | 502,481 | | Accumulated deficit | {510,407) | | | 4,574 | | TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | \$
23,022 | {7}------------------------------------------------ ### LAKERIDGE CAPITAL INC. STATEMENT OF OPERATIONS FOR THE YEAR ENDED OCTOBER 31, 2019 | REVENUES | | |------------------------------------------|----------------| | Investment banking fees and other income | \$
18,694 | | Total revenues | 18,694 | | | | | EXPENSES | | | Compliance | 45,185 | | Compensation to brokers | 16,714 | | Professional fees | 13,250 | | Occupancy | 6,000 | | Management fees | 1,800 | | Regulatory fees | 5,037 | | Other | 2,019 | | Total expenses | 90,005 | | | | | Net loss | \$
(71,311) | {8}------------------------------------------------ #### LAKERIDGE CAPITAL INC. STATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY FOR THE YEAR ENDED OCTOBER 31, 2019 | | | | | | Additional | | | | | |---------------------------------|--------|-------|--------|---------|------------|---------|-------------|--------------|--| | | | | Common | | Paid in | | Accumulated | | | | | Shares | Stock | | Capital | | Deficit | | Totals | | | Balances at November 1,
2018 | 6,000 | \$ | 12,500 | \$ | 441,471 | \$ | (439,096) | \$
14,875 | | | Stockholder's
contributions | | | | | 61,010 | | | 61,010 | | | Net loss | | | | | | | (71,311) | (71,311) | | | Balances at October 31,
2019 | 6,000 | \$ | 12,500 | \$ | 502,481 | \$ | (510,407) | \$
4,574 | | {9}------------------------------------------------ #### LAKERIDGE CAPITAL INC. STATEMENT OF CASH FLOWS FOR THE YEAR ENDED OCTOBER 31, 2019 #### **CASH FLOWS FROM OPERATING ACTIVITIES** | Net loss | \$
{71,311) | |---------------------------------------------------------------|----------------| | Adjustments to reconcile net loss to net cash | | | used in operating activities: | | | | | | Changes in operating assets and liabilities: | | | Due from Affiliate | 3,410 | | Accrued expenses | 473 | | NET CASH USED IN OPERATING ACTIVITIES | {67,428) | | CASH FLOWS FROM FINANCING ACTIVITIES | | | Capital contributions | 61,010 | | NET CASH PROVIDED BY FINANCING ACTIVITIES | 61,010 | | NET DECREASE IN CASH | {6,418) | | CASH AT BEGINNING OF YEAR | 29,440 | | CASH AT YEAR END | \$
23,022 | | Supplemental Disclosure of Cash Flow Information: | | | Cash paid during year for: | | | Cash paid for interest | \$ | | Cash paid for income taxes | \$ | | Non-cash transactions: | | | Payment of expenses by stockholder as contribution of capital | \$
11,760 | {10}------------------------------------------------ ### NOTE 1 - ORGANIZATION AND NATURE OF BUSINESS Lakeridge Capital Inc. (the "Company") was incorporated on January 10, 1989 under the name Lawrence Field Distributors, Inc. On May 25, 1990, the name was changed to Ridgewood Capital Funding, Inc. On June 30, 2004, the Company was sold to Kingsdale Capital Markets Inc., ("Original Stockholder") a member of the Investment Industry Regulatory Organization of Canada (IIROC), and its name was changed to Kingsdale Capital Markets (USA) Inc. The name changed again in July 2012 to Lakeridge Capital Inc. [then both an IIROC and U.S. Financial Industry Regulatory Authority ("FINRA") member] and the Company was dependent upon its Original Stockholder. On January 22, 2019 Regent Capital Partners Inc. ("Current Stockholder") made its first investment of what ultimately made it the full Current Stockholder of Lakeridge Capital Inc. by April 29, 2019. The Company continues to be a member of FINRA and conducts a securities business generally limited to private placements of securities. #### NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES #### Cash and Cash Equivalents All short-term investments with an original maturity of three months or less are considered to be cash equivalents. ### Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires the Company's management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. #### Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers: Topic 606 ("ASU 2014-09") to supersede nearly all existing revenue recognition guidance under U.S. GAAP. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date (ASU 2015-14) which deferred the effective date for implementation by one year, and was effective for annual reporting periods beginning after December 15, 2017. {11}------------------------------------------------ ## NOTE 2- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (continued) On November 1, 2018 the Company adopted ASU 2014-09 using the modified retrospective method of adoption. ASC 606 created a single framework for recognizing revenue from contracts with customers that fall within its scope. Under ASC 606, revenue is recognized upon satisfaction of performance obligations by transferring control over goods or services to a customer. The adoption of ASC 606 did not result in any changes to beginning retained earnings for the year ended October 31 , 2019 or net income for the preceding year-end. The Company's revenues from contracts with customers are composed of private placement fees, fees from due diligence preparation, and advisory fees - all of which are recognized at the point in time when the Company's performance under the terms of the contractual arrangement is completed, which is typically at the closing of the transaction. For the year ended October 31 , 2019 the Company earned private placement fees and gains from exercise of warrants. Reimbursed expenses related to these transactions are recorded as revenue and are included in private placement fees, although this did not occur during the year ended October 31 , 2019. In certain instances, for advisory contracts, the Company will receive amounts in advance of the deal' s closing. In these instances, revenue is recognized over time in which the performance obligations are simultaneously provided by the Company and consumed by the customer. There were no advances to the Company during the year ended October 31 , 2019. #### Revenue Recognition The Company recognizes revenue from placement fees upon completion of the private placement offering, preparation of due diligence reports and from advisory fees, over the life of the underlying agreement, at the time work is performed and services are rendered. In fiscal year ending October 31 , 2019 private placement revenue was \$8,694 and gain from exercise of warrants was \$10,000. #### Concentration of Credit Risk The Company is engaged in various investment and brokerage activities in which counterparties primarily include broker-dealers, banks, and other financial institutions. In the event counterparties do not fulfill their obligations, the Company may be exposed to risk. The risk of default depends on the creditworthiness of the counterparty or issuer of the instrument. It is the Company's policy to review, as necessary, the credit standing of each counterparty. {12}------------------------------------------------ ## NOTE 2- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (continued) #### Income Taxes The Company accounts for income taxes under SFAS no. 119, which requires the asset and liability approach for financial accounting and reporting for income taxes and allows recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will expire before the Company is able to realize their benefits. ## Related Party Transactions The Original Stockholder, Kingsdale Capital Markets, Inc. ( even after being fully purchased by Regent Capital Partners Inc. [the Current Stockholder]) continues to pay office and administrative expenses including accounting, rent, telephone and secretarial fees, and allocates a portion of the such expenses to the Company. The Company is dependent upon the Original Stockholder for continued financial support. #### NOTE 3 - NET CAPITAL REQUIREMENTS As a registered broker-dealer and member of FINRA, the Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule 15c3-1 . This rule requires that the ratio of aggregate indebtedness to net capital may not exceed 15 to 1, and equity capital may not be withdrawn or cash dividends paid if the resulting net capital ratio would exceed 10 to 1. At October 31 , 2019 the Company's net capital was \$4,556 which was a \$444 deficit of its required net capital of \$5,000. The Company did not conduct a securities business during the time of such deficit. The Company's debt-equity ratio was 4.0492 to 1. #### NOTE 4-RELATED PARTY TRANSACTIONS The Company had an expense sharing agreement with its stockholders for the fiscal year ended October 31 , 2019 and continues to have an expense sharing agreement with its Current Stockholder. The stockholders provided administrative and other services to the Company. {13}------------------------------------------------ ## NOTE 4-RELATED PARTY TRANSACTIONS - (continued) During the fiscal year ended October 31 , 2019, the Original Stockholder charged the Company a total of\$4,460 consisting of\$3,000 in regulatory fees, \$300 in officer compensation, and \$1,160 foroffice space and administrative support. The Current stockholder charged the Company a total of\$7,300 consisting of \$1 ,500 for officer compensation and \$5,800 for office space and administrative support. Such expenses were not paid but were considered contributions of capital. For the fiscal year ended October 31 , 2019, the Original Stockholder made cash capital contributions of \$7,500 and the Current Stockholder made cash capital contributions of \$41 ,750. The Company's Fidelity Bond coverage is provided as a rider to the stockholder's policy. The stockholder has agreed to indemnify the Company for any amount due as a deductible under the policy. ### NOTE 5 - INCOME TAXES At October 31 , 2019 the Company had a net operating loss of approximately \$530,000 for income tax purposes which expire in the years 2028 through 2039. A valuation allowance of \$132,000 was established to offset the deferred tax asset arising from this carryforward. Therefore, no deferred assets have been recorded on the accompanying statement of financial condition. ## NOTE 6- SUBSEQUENT EVENTS The Company has evaluated subsequent events through January 13, 2020, the date that these financial statements were available to be issued. The Company believes that there are no subsequent events requiring further disclosure. ### NOTE 7- SIPC RECONCILIATION REQUIREMENT SEA Rule 17a-5(e)(4) requires a registered broker-dealer to file a supplemental report which includes procedures related to broker-dealers SIPC annual general assessment reconciliation or exclusion from membership forms. In circumstances where the broker- dealer reports \$500,000 or less in gross revenue they are not required to file supplemental SIPC report. The Company is exempt from filing the supplemental report under SEA Rule 17a-5(e)(4) because it is reporting less than \$500,000 in gross revenue. {14}------------------------------------------------ #### NOTE 8- GOING CONCERN OPERATION The accompanying statements have been prepared assuming the Company will continue as a going concern. The Company had a large loss from operations which if repeated next year, raises substantial doubt about the Company's ability to continue as a going concern. The stockholder has stated they will make the additional capital contributions required to keep the Company in net capital compliance. {15}------------------------------------------------ SUPPLEMENTARY INFORMATION PURSUANT TO RULE 17a-5 OF THE SECURITIES AND EXCHANGE ACT OF 1934 {16}------------------------------------------------ ## **LAKERIDGE CAPITAL INC. SCHEDULE I COMPUTATION OF NET CAPITAL UNDER RULE 15c3-1 OF THE SECURITIES AND EXCHANGE COMMISSION AS OF OCTOBER 31, 2019** | NET CAPITAL: | | | |----------------------------------------------------------------|----------------------|--------------| | Stockholder's equity | | \$
4,574 | | | | | | Less haircuts on foreign currency (CDN) | | (18) | | NET CAPITAL | | \$
4,556 | | | | | | AGGREGATE INDEBTEDNESS | | \$
18,448 | | MINIMUM NET CAPITAL REQUIRED (6.67% of aggregate indebtedness) | | 963 | | MINIMUM NET CAPITAL DOLLAR REQUIREMENT | | \$
5,000 | | MINIMUM NET CAPITAL REQUIRED | | \$
5,000 | | NET CAPITAL DEFICIT (\$4,556 - \$5,000) | | \$
(444) | | | | | | PERCENTAGE OF AGGREGATE INDEBTEDNESS TO NET CAPITAL | \$18,448
\$ 4,556 | 404.92% | | | | | The computation of net capital presented above and the computation of net capital reported in the Company's unaudited Form X-17A-5, Part IIA filing as of October 31, 2019 differed by the following: Unrecorded public accounting audit expenses of \$4,000 {17}------------------------------------------------ #### **SCHEDULE II** ## **INFORMATION RELATING TO RESERVE REQUIREMENTS FOR BROKER/DEALERS AND INFORMATION RELATING TO POSSESSION OR CONTROL REQUIREMENTS UNDER RULE 15c3-3** #### **October 31, 2019** The Company is exempt from the provisions of Rule 15c3-3 under the Securities and Exchange Act of 1934 in that the company's activities are limited to those set forth in the conditions for the exemption appearing in paragraph (k)(2)(i). {18}------------------------------------------------ ![](_page_18_Picture_0.jpeg) 132 Nassau Street. New York. NY 10038 Tel 212.571 .0064 / Fax 212.571.0074 Jay Lerner. C.P.A. jlerner@lernersipkin.com Joseph G. Sipkin, C.P.A. jsipkin@lernersipkin.com To the Stockholders of Lakeridge Capital Inc. 55 University Avenue Mezzanine Level, Suite M002 Toronto, Ontario M5J 2H7 #### Report oflndependent Registered Public Accounting Firm Gentlemen: We have reviewed management's statements, included in the accompanying Exemption Report, in which (!) Lakeridge Capital Inc. identified the following provisions of 17 C.F.R. § 15c3-3(k) under which Lakeridge Capital Inc. claimed an exemption from 17 C.F.R. § 240. I 5c3-Y k(2)(i), (the "exemption provisions") and (2) Lakeridge Capital Inc. stated that Lakeridge Capital Inc. met the identified exemption provisions throughout the most recent fiscal year without exception. Lakeridge Capital Inc.' s management is responsible for compliance with the exemption provisions and its statements. Our review was conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) and, accordingly, included inquiries and other required procedures to obtain evidence about Lakeridge Capital lnc.'s 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, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to management's statements referred to above for them to be fairly stated, in all material respects, based on the provisions set forth in paragraph k(2)(i) of Rule 15c3-3 under the Securities Exchange Act of 1934. ~ :~ c,tK Lyrner & Sipkin CPAs, LLP Certified Public Accountants (NY) New York, NY January 13 , 2020 {19}------------------------------------------------ SEC Rule 15c3-3(k) Exemption Report For year ending October 31 , 2019 Lakeridge Capital, Inc. states to the best of its knowledge and belief that: - 1. Lakeridge Capital, Inc. is exempt from Rule 15c3-3 under the provisions of subsection (k) (2) (i) - ("Special Account for the Exclusive Benefit of customers" maintained). - 2. Lakeridge Capital, Inc. met the requirements of this exemption provision throughout the fiscal year ended October 31 , 2019 without exception. Donald Signature: R. Pollard 0~ , CEO ~ and ~ CCO Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.