# LEC INVESTMENT CORP. X-17A-5 (2026-03-03) — Broker-dealer annual report - Company: LEC INVESTMENT CORP. - Form: X-17A-5 - Filed: 2026-03-03 - Period: 2025-12-31 - Accession: 0000855482-26-000005 - CIK: 855482 - File #: 8-41695 - Type: Broker-dealer - Material weakness: Yes - Auditor: BDG-CPA's - Auditor location: Ridgewood, NJ - Contact: Anne Langdon Elrod - Phone: 205-521-6329 - Website: bdgcpa.com - Signed by: Andrea Haines (Vice President) Original filing: https://www.sec.gov/Archives/edgar/data/855482/000085548226000005/Public.pdf --- {0}------------------------------------------------ # LEC INVESTMENT CORP. FINANCIAL STATEMENTS AND SUPPLEMENTAL INFORMATION (Pursuant to Rule 17a-5 of the Securities and Exchange Commission) DECEMBER 31, 2025 {1}------------------------------------------------ | February 18, 2004 | 1167 | | |-------------------|------|--| | | | | | | | | {2}------------------------------------------------ #### OATH OR AFFIRMATION | Alan Z. Engel | _ swear (or affirm) that, to the best of my knowledge and belief, the | |-----------------------------------------------------------------|-----------------------------------------------------------------------| | financial report pertaining to the firm of LEC Investment Corp. | as of | December 31 \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 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): - (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. - 0 (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. - [ {k) Computation for delermination 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. - O (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. - | (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. - D (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capible net worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist. - [p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - | (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.18a-7, as applicable. - Q (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. - O (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-5 or 17 CFR 240.18a-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. - O (x) Supplemental reports on applying agreed-upon procedures, in accordance with 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). - O (z) Other: - \*\* To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(d)(2), os applicable. {3}------------------------------------------------ ### LEC INVESTMENT CORP. TABLE OF CONTENTS DECEMBER 31, 2025 | REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | 1 | |---------------------------------------------------------------------------------|---| | FINANCIAL STATEMENTS | | | Statement of Financial Condition | 3 | | Statement of Income/(Loss) | 4 | | Statement of Changes in Stockholders' Equity | 5 | | Statement of Changes in Liabilities Subordinated to Claims of General Creditors | 6 | | Statement of Cash Flows | 7 | | Notes to the Financial Statements | 8 | | SUPPLEMENTAL INFORMATION | | Schedule I Computation of Net Capital under Rule 15c3-1 of the Securities and Exchange Commission 1 {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) ## Report of Independent Registered Public Accounting Firm To the Board of Directors and Stockholders of LEC Investment Corp.: ## Opinion on the Financial Statements We have audited the accompanying statement of financial condition of LEC Investment Corp. (a Delaware corporation) as of December 31, 2025, the related statements of income / (loss), changes in stockholders' equity, changes in liabilities subordinated to claims of general creditors, and cash flows for the 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 LEC Investment Corp. as of December 31, 2025, 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 of America. ## Basis for Opinion These financial statements are the responsibility of LEC Investment Corp.'s management. Our responsibility is to express an opinion on LEC Investment Corp.'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 LEC Investment Corp. 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. {5}------------------------------------------------ ## Auditor's Report on Supplemental Information The supplemental information contained in Schedule I - Computation of Net Capital under Rule 15c3-1 of the Securities and Exchange Commission has been subjected to audit procedures performed in conjunction with the audit of LEC Investment Corp.'s financial statements. The supplemental information is the responsibility of LEC Investment Corp.'s management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with 17 C.F.R. §240.17a-5. In our opinion, the supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole. We have served as LEC Investment Corp.'s auditor since 2024. BDG-CPAs, PC Ridgewood, NJ February 23, 2026 ![](_page_5_Picture_5.jpeg) {6}------------------------------------------------ ## LEC INVESTMENT CORP. STATEMENT OF FINANCIAL CONDITION December 31, 2025 | ASSETS | | |----------------------------------------------------|---------------| | CASH | \$
91,146 | | ACCOUNTS RECEIVABLE | | | - CONSULTING FEES (no allowance for credit losses) | 20,833 | | | 1,413 | | PRE-PAID EXPENSES | 16,484 | | TOTAL ASSETS | \$
129,876 | | LIABILITIES AND STOCKHOLDERS' EQUITY | | | ACCOUNTS PAYABLE | \$
- | | STOCKHOLDERS' EQUITY | | | Common stock, par value \$1 per share; authorized, | | | issued, and outstanding 1,000 shares | 1,000 | | Paid-in capital | 9,736 | | Retained earnings | 119,140 | | Total stockholders' equity | 129,876 | | | | {7}------------------------------------------------ # LEC INVESTMENT CORP. STATEMENT OF INCOME/(LOSS) FOR THE YEAR ENDED DECEMBER 31, 2025 | LEC INVESTMENT CORP.
STATEMENT OF INCOME/(LOSS) | | |----------------------------------------------------|---------------| | FOR THE YEAR ENDED DECEMBER 31, 2025 | | | | | | REVENUE | | | Consulting fee | \$
125,000 | | OPERATING EXPENSES | | | Regulatory fees | 11,745 | | General and administrative expenses | 100,747 | | Total operating expenses | 112,492 | | INCOME/(LOSS) FROM OPERATIONS | 12,508 | | OTHER INCOME | - | | NET INCOME/(LOSS) | \$
12,508 | | | | {8}------------------------------------------------ | | LEC INVESTMENT CORP. | | | | | |--------------------------------------------|----------------------------------------------|------------------|------------------|-------------------------|-------------------------| | | STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY | DECEMBER 31 2025 | | | | | | | | | | | | | Common | | Paid-in | Retained | | | | Stock | | Capital | Earnings | Total | | BALANCE AT DECEMBER 31, 2024
Net income | \$ | 1,000
- | \$
9,736
- | \$
106,632
12,508 | \$
117,368
12,508 | #### DECEMBER 31 2025 STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY LEC INVESTMENT CORP. {9}------------------------------------------------ ## LEC INVESTMENT CORP. STATEMENT OF CHANGES IN LIABILITIES SUBORDINATED TO CLAIMS OF GENERAL CREDITORS FOR THE YEAR ENDED DECEMBER 31, 2025 | SUBORDINATED LIABILITIES AT BEGINNING OF YEAR | \$
- | |-----------------------------------------------|---------| | INCREASES (DECREASES) | - | | SUBORDINATED LIABILITIES AT END OF YEAR | \$
- | {10}------------------------------------------------ # LEC INVESTMENT CORP. STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2025 | LEC INVESTMENT CORP.
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2025 | | |-----------------------------------------------------------------------------------------|--------------| | CASH FLOWS FROM OPERATING ACTIVITIES
Net income | \$
12,508 | | Adjustments to reconcile net income to net cash
used by operating activities: | | | Accounts receivable | (20,833) | | | (914) | | Change in pre-paid expenses | (46) | | Change in accounts payable | (1,397) | | Net cash used by operating activities | (10,682) | | CASH FLOWS FROM INVESTING ACTIVITIES | | | CASH FLOWS FROM FINANCING ACTIVITIES | | | NET DECREASE IN CASH | (10,682) | | CASH AT BEGINNING OF YEAR | 101,828 | | CASH AT END OF YEAR | \$
91,146 | | Supplemental cash flows disclosures: | | | Cash paid for income taxes | \$
- | | Cash paid for interest | \$
- | {11}------------------------------------------------ ### LEC INVESTMENT CORP. NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 #### 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES #### Nature of Operations LEC Investment Corp. (the Company) is a registered broker-dealer with the Securities Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA). The Company has been organized to sell partnership interests in real estate syndications by means of private placements on a "best-efforts" basis. #### Basis of Financial Statement Preparation The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires 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 revenues and expenses during the reporting period. Actual results could differ from those estimates. #### Concentration of Credit Risk/FDIC Cash The Company is not engaged in any trading or brokerage activities with other counterparties, resulting in minimal risk exposure associated with the operation of the bank deposit accounts maintained by the Company. Cash consists primarily of bank deposit accounts. The Company maintains its cash in bank deposit accounts which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. For the year ending December 31, 2025, the Company did not have cash balances that exceeded the \$250,000 depository insurance limits of the Federal Deposit Insurance Corporation. #### Accounts Receivable The Company regularly reviews the accounts receivable for any uncollectible amounts. The review of uncollectible amounts is based on an analysis of the Company s collection experience, customer credit worthiness, and current economic trends. As of December 31, 2025, there is no balance in the allowance for credit losses. #### Prior Period Adjustment earnings as of January 1, 2025. This adjustment resulted in an increase to retained earnings of \$3,754. This adjustment did not have a material impact to net capital. #### Revenue Recognition In May 2014, the FASB issued ASU 2014 which is an update of ASC 606 Revenue Recognition Standard. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. An entity should disclose sufficient qualitative and quantitative information to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. {12}------------------------------------------------ ### LEC INVESTMENT CORP. NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 The following provides detailed information on the recognition of the Company's revenue from contracts with customers: Consulting Fee income: Consulting fee revenue is charged to a related party when earned (see Note 3). The Company recognizes revenue as earned based on when performance obligations are met. #### Single Reportable Segment The Company is engaged in a single line of business as a securities broker-dealer of private placements 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 2), which is not a measure of profit and loss, to make operational decisions while maintaining capital stitute 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. #### Taxes on Income No provision for income taxes is recorded on the Company's general ledger as the stockholders have elected to report income or loss in accordance with provisions of Subchapter S of the Internal Revenue Code. The Company adopted the provisions of Accounting Standards Codification (ASC) 740 relating to uncertainty in income taxes. This guidance requires entities to assess their uncertain tax positions for the likelihood that they would be overturned upon Internal Revenue Service (IRS) examination or upon examination by state taxing authorities. In accordance with this guidance, the Company has determined that it does not have any positions at December 31, 2025 that it would be unable to substantiate. 2. NET CAPITAL REQUIREMENTS The Company has filed its tax returns for all years through December 31, 2024. Years December 31, 2021, and subsequent remain subject to audit by taxing authorities. #### Subsequent Events The Company has evaluated subsequent events through the date of the issued financial statements. The Company is subject to the Uniform Net Capital Rule (Rule 15c3-1), which requires the maintenance of minimum net capital. At December 31, 2025, the Company had net capital of \$1 which was \$1 , in excess of the required net capital of \$5,000. Also, the Company must . The Company had no outstanding aggregate indebtedness at December 31, 2025. indebtedness to net capital was 0.0000 to 1. {13}------------------------------------------------ ### LEC INVESTMENT CORP. NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 ### 3. RELATED PARTY TRANSACTIONS The Company charged consulting fees, pursuant to the management agreement, in the amount of \$125,000 during the year ended December 31, 2025, to Crowne Partners Inc., an affiliated corporation, in which two of the Company's stockholders have an ownership interest. As of December 31, 2025, the Company reflected a balance receivable of \$20,833 for unpaid consulting fees from Crowne Partners, Inc. ### 4. COMMITMENTS AND CONTINGENCIES The Company is subject to litigation and various claims in the ordinary course of business, as well as regular examination by regulatory agencies. Management is not aware of any litigation or claims. Nor is it aware of any, nor is it aware of regulatory matters that will have a material impact on the {14}------------------------------------------------ SUPPLEMENTAL INFORMATION {15}------------------------------------------------ #### SCHEDULE I LEC INVESTMENT CORP. COMPUTATION OF NET CAPITAL UNDER RULE 15c3-1 OF THE SECURITIES AND EXCHANGE COMMISSION DECEMBER 31, 2025 | Net Capital
Total stockholders' equity
Less deductions and/or charges | \$
129,876
\$
17,897 | |-------------------------------------------------------------------------------|-------------------------------| | Net Capital | \$
111,979 | | Total aggregate indebtedness | \$
0 | | Computation of Basic Net Capital Requirements
Minimum net capital required | \$
5,000 | | Excess net capital | \$
106,979 | | Ratio: Aggregate indebtedness to net capital | 0% | | | | (Included in Part II of Form X-17A-5 as of December 31, 2025) | Audit Adjustments | \$
\$ | 128,462
16,483 | | |-------------------------------|----------|-------------------|--| | Net Capital per the preceding | \$ | 111,979 | | See accompanying report of independent registered public accounting firm. {16}------------------------------------------------ ![](_page_16_Picture_0.jpeg) LEC Investment Corp.'s Exemption Report LEC Investment Corp. (the "Company") is a registered broker-dealer subject to Rule 17a-5 promulgated by the Securities and Exchange Commission (17 C.F.R. §240.17a-5, "Reports to be made by certain brokers and dealers"). This Exemption Report was prepared as required by 17C.F.R. §240.17a-5(d)(1) and (4). To the best of its knowledge and belief, the Company states the following: (1) The Company does not claim an exemption under paragraph (k) of 17 C.F.R. § 240. 15c3-3, and (2) The Company is filing this Exemption Report relying on Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 because the Company limits its business activities exclusively to selling partnership interests in real estate syndications by means of private placements on a "best-efforts" basis. In addition, the Company did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, did not carry accounts of or for customers; and did not carry PAB accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year without exception. LEC Investment Corp. I, Alan Z. Engel, affirm that, to my best knowledge and belief, this Exemption Report is true and correct. BV Title: President February 6, 2020 {17}------------------------------------------------ ![](_page_17_Picture_0.jpeg) 76 North Walnut Street Ridgewood, New Jersey 07450 201-652-4040 fax: 201-652-0401 www.bdgcpa.com ## Report of Independent Registered Public Accounting Firm To the Board of Directors and Stockholders of LEC Investment Corp .: We have reviewed management's statements, included in the accompanying Rule 15c3-3 Exemption Report pursuant to SEC Rule 17a-5, in which (1) LEC Investment Corp. (the "Company") did not claim an exemption under paragraph (k) of 17 C.F.R. §240.15c3-3, and (2) the Company is filing this Exemption Report relying on Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 because the Company limits its business activities exclusively to selling partnership interests in real estate syndications by means of private placements on a "best-efforts" basis. In addition, the Company did not directly receive, hold, or otherwise owe funds or securities for or to customers, other than money or other consideration received and promptly transmitted in compliance with paragraph (a) or (b)(2) of Rule 15c2-4 and/or funds received and promptly transmitted for effecting transactions via subscription way basis where the funds are payable to the issuer or its agent and not to the Company; did not carry accounts of or for customers; and did not carry PAB accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year without exception. The Company's management is responsible for compliance with the provisions contemplated by Footnote 74 of SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 and related SEC Staff Frequently Asked Questions 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 the Company'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 upon the Company's business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 .F.R. § 240.17a-5, and related SEC Staff Frequently Asked Questions. BDG-CPAs, PC Ridgewood, New Jersey February 23, 2026 Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.