# LEC INVESTMENT CORP. X-17A-5 (2026-04-02) — Broker-dealer annual report
- Company: LEC INVESTMENT CORP.
- Form: X-17A-5
- Filed: 2026-04-02
- Period: 2024-12-31
- Accession: 0000855482-26-000006
- CIK: 855482
- File #: 8-41695
- Type: Broker-dealer
- Material weakness: No
- Auditor: BDG-CPA's
- Auditor location: Ridgewood, NJ
- Contact: Andrea Haines
- Phone: 2055216328
- Website: bdgcpa.com
- Signed by: Andrea Haines (Secretary)
Original filing: https://www.sec.gov/Archives/edgar/data/855482/000085548226000006/LECInv2024.pdf
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## LEC INVESTMENT CORP.
FINANCIAL STATEMENTS AND SUPPLEMENTAL INFORMATION
(Pursuant to Rule 17a-5 of the Securities and Exchange Commission)
DECEMBER 31, 2024
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#### UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
OMB APPROVAL OMB Number: Expires: Estimated average burden hours per response:
# ANNUAL REPORTS FORM X-17A-5 PART III
SEC FILE NUMBER
| | FACING PAGE | | | |
|---------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------|------------|--|
| Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | | | | |
| FILING FOR THE PERIOD BEGINNING _____________________ AND ENDING ______________________ | MM/DD/YY | | MM/DD/YY | |
| | A. REGISTRANT
IDENTIFICATION | | | |
| NAME OF FIRM: _______________________________________________________________________ | | | | |
| TYPE OF REGISTRANT (check all applicable boxes):
Broker-dealer
Check here if respondent is also an OTC derivatives dealer | Security-based swap dealer | Major security-based swap participant | | |
| ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | |
| _____________________________________________________________________________________ | | | | |
| | (No. and Street) | | | |
| | _____________________________________________________________________________________ | | | |
| (City) | (State) | (Zip Code) | | |
| PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | |
| | | | | |
| (Name) | (Area Code – Telephone Number) | _____________________________________________________________________________________
(Email Address) | | |
| | B. ACCOUNTANT
IDENTIFICATION | | | |
| INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | |
| _____________________________________________________________________________________ | | | | |
| | (Name – if individual, state last, first, and middle name) | | | |
| _____________________________________________________________________________________ | | | | |
| (Address) | (City) | (State) | (Zip Code) | |
| _____________________________________________________________________________________ | | | | |
| (Date of Registration with PCAOB)(if applicable) | | (PCAOB Registration Number, if applicable) | | |
\* 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)(1)(ii), if applicable.
FOR OFFICIAL USE ONLY
Persons who are to respond to the collection of information contained in thisform are not required to respond unlessthe form displays a currently valid OMB control number.
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| Andrea E. Haines | | swear (or affirm) that, to the best of my knowledge and belief, the | |
|------------------------|-----------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|-------|
| | tinancial report pertaining to the firm of LEC Investment Corp. | | as of |
| 12/31 | | 2 024 is true and correct. I further swear (or affirm) that neither the company nor any | |
| as that of a customer. | USON TURN
NOTARY | partner, officer, director, or equivalent persqq, as the case may be, has any proprietary interest in any account classified solely
Signature:
"ARAAL | |
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#### LEC INVESTMENT CORP. TABLE OF CONTENTS DECEMBER 31, 2024
| REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | | | |
|---------------------------------------------------------------------------------------------------------------|---|--|--|
| 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 11
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## **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, 2024, 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, 2024, 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.
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## **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 March 5, 2025
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## LEC INVESTMENT CORP. STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2024
| ASSETS | | | |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----|-------------------------------|--|
| CASH | \$ | 101,828 | |
| DEPOSIT – FINRA | | 499 | |
| PRE-PAID EXPENSE - FINRA PRELIMINARY RENEWALS | | 12,684 | |
| TOTAL ASSETS | \$ | 115,011 | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | | |
| ACCOUNTS PAYABLE | \$ | 1,397 | |
| STOCKHOLDERS' EQUITY
Common
stock,
par
value \$1
per
share; authorized,
issued,
and
outstanding
1,000
shares
Paid-in
capital
Retained
earnings | | 1,000
9,736
102,
878 | |
| Total
stockholders' equity | | 11
3,614 | |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | \$ | 115,011 | |
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## LEC INVESTMENT CORP. STATEMENT OF INCOME/(LOSS) FOR THE YEAR ENDED DECEMBER 31, 2024
| REVENUE | |
|----------------------------------------------|---------------|
| Consulting
fee | \$
120,000 |
| | |
| OPERATING EXPENSES | |
| Regulatory
fees | 12,
646 |
| General
and
administrative
expenses | 107,7
39 |
| | |
| Total
operating
expenses | 120,
385 |
| | |
| INCOME/(LOSS) FROM OPERATIONS | (385) |
| | |
| OTHER INCOME | - |
| | |
| NET INCOME/(LOSS) | \$
(385) |
| | |
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#### FOR THE YEAR ENDED DECEMBER 31, 2024 STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY LEC INVESTMENT CORP.
| | Common
Stock | Paid-in
Capital | Retained
Earnings | Total |
|-----------------------------------------------------|------------------|----------------------|------------------------|------------------------|
| BALANCE AT DECEMBER 31, 2023
Net income / (loss) | \$
1,000
- | \$
9
,736
- | \$
103,263
(385) | \$
113,999
(385) |
| BALANCE AT DECEMBER 31, 2024 | \$
1,000 | \$
9
,736 | \$
102,878 | \$
113,614 |
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## LEC INVESTMENT CORP. STATEMENT OF CHANGES IN LIABILITIES SUBORDINATED TO CLAIMS OF GENERAL CREDITORS FOR THE YEAR ENDED DECEMBER 31, 2024
| SUBORDINATED LIABILITIES AT BEGINNING OF YEAR | \$
- |
|-----------------------------------------------|---------|
| INCREASES (DECREASES) | - |
| SUBORDINATED LIABILITIES AT END OF YEAR | \$
- |
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## LEC INVESTMENT CORP. STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2024
| CASH FLOWS FROM OPERATING ACTIVITIES
Net
income/(loss) | \$
(385) |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------|
| Adjustments
to
reconcile
net
income/(loss)
to
net
cash
used
by
operating
activities:
Change
in
deposit
–
FINRA
Change
in
pre-paid
expenses
Change
in
accounts
payable | 412
(1,1
31)
1
8 |
| Net
cash
used
by
operating
activities | (1,0
86) |
| CASH FLOWS FROM INVESTING ACTIVITIES | - |
| CASH FLOWS FROM FINANCING ACTIVITIES | - |
| NET INCREASE / (DECREASE) IN CASH | (1,086) |
| CASH AT BEGINNING OF YEAR | 102,914 |
| CASH AT END OF YEAR | \$
101,828 |
| | |
Supplemental cash flows disclosures:
| Cash
paid
for
income
taxes | \$
- |
|----------------------------------------|---------|
| Cash
paid
for
interest | \$
- |
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#### LEC INVESTMENT CORP. NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024
### 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 and Use of Estimates
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 period ending December 31, 2024, the Company did not have cash balances that exceeded the \$250,000 depository insurance limits of the Federal Deposit Insurance Corporation.
#### Revenue Recognition
In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)" 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.
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. The Company has identified its Principal 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
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#### LEC INVESTMENT CORP. NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024
Note 2), which is not a measure of profit and loss, to make operational decisions while maintaining capital adequacy. 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.
#### 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, 2024 that it would be unable to substantiate.
The Company has filed its tax returns for all years through December 31, 2023. Years December 31, 2020, 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.
#### 2. NET CAPITAL REQUIREMENTS
The Company is subject to the SEC's Uniform Net Capital Rule (Rule 15c3-1), which requires the maintenance of minimum net capital. At December 31, 2024, the Company had net capital of \$100,431 which was \$95,431 in excess of the required net capital of \$5,000. Also, the Company must not permit its "aggregate indebtedness" to exceed 15 times its net capital. The Company had outstanding aggregate indebtedness of \$1,397 at December 31, 2024. The Company's ratio of aggregate indebtedness to net capital was 0.0139 to 1.
#### 3. RELATED PARTY TRANSACTIONS
The Company charged consulting fees, pursuant to the management agreement, in the amount of \$120,000 during the year ended December 31, 2024, to Crowne Partners Inc., an affiliated corporation, in which two of the Company's stockholders have an ownership interest. There were no balances receivable from or payable to related parties as of December 31, 2024.
### 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.
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#### LEC INVESTMENT CORP. NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024
Nor is it aware of any, nor is it aware of regulatory matters that will have a material impact on the Company's results of operations or financial position.
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SUPPLEMENTAL INFORMATION
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#### SCHEDULE I LEC INVESTMENT CORP. COMPUTATION OF NET CAPITAL UNDER RULE 15c3-1 OF THE SECURITIES AND EXCHANGE COMMISSION DECEMBER 31, 2024
| Net Capital
Total
stockholders' equity
Less
deductions
and/or
charges | \$
\$ | 113,614
13,183 |
|-----------------------------------------------------------------------------------------|----------|-------------------|
| Net Capital | \$ | 100,431 |
| Total aggregate indebtedness | \$ | 1,397 |
| Computation of Basic Net Capital Requirements
Minimum
net
capital
required | \$ | 5,000 |
| Excess
net
capital | \$ | 95,431 |
| Ratio: Aggregate
indebtedness
to
net
capital | | 1.39% |
There are no material differences between the preceding computation and the Company's unaudited Form X-17a-5 as of December 31, 2024, as filed on January 21, 2025.
See accompanying report of independent registered public accounting firm.
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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 or indirectly 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 subscriptions on a 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 C.F.R. § 240.17a-5, and related SEC Staff Frequently Asked Questions.
BDG-CPAs, PC Ridgewood, New Jersey March 5, 2025
Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.