# LIBERTY CAPITAL INVESTMENT CORPORATION X-17A-5 (2022-03-24) — Broker-dealer annual report - Company: LIBERTY CAPITAL INVESTMENT CORPORATION - Form: X-17A-5 - Filed: 2022-03-24 - Period: 2021-12-31 - Accession: 0000858337-22-000003 - CIK: 858337 - File #: 8-42051 - Type: Broker-dealer - Material weakness: No - Auditor: Duane Liebswager - Auditor location: King City, OR - Contact: Stefanie Reel - Phone: 5032259393 - Signed by: Gary Purpura (President) Original filing: https://www.sec.gov/Archives/edgar/data/858337/000085833722000003/AnnualAuditedReport2021Edgar.pdf --- {0}------------------------------------------------ **LIBERTY CAPITAL. INVESTMENT CORPORATION** .AnnualAudited Repon December 31, 2021 > **DUANE LIEBSWAGER, C.P.A., PC CERTIFIED PUBLIC ACCOUNTANT 15405 SW 116TH AVENUE SUITE112 KING CITY, OREGON 97224 503/624--0940** {1}------------------------------------------------ | | UNITED STATES | OMB APPROVAL
OMB Number: 3235-0123 | |-----------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------| | | SECURITIES AND EXCHANGE COMMISSION
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12 | | | ANNUAL REPORTS | SEC FILE NUMBER | | | FORM X-17A-5 | 8-42053 | | | PARTII | | | | 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 | 01/01/2021
AND ENDING | 12/31/2021 | | | MM/DD/YY | MM/DD/YY | | | A. REGISTRANT IDENTIFICATION | | | | NAME OF FIRM: LIBERTY CAPITAL INVESTMENT CORPORATION | | | TYPE OF REGISTRANT (check all applicable boxes):
V 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.) | | | | 1800 SW FIRST AVENUE. SUITE 150 | | | PORTLAND | (No. and Street)
OREGON | 97 201-5333 | | (City) | (State) | (Zip Code) | | | | | | | | | | | | | | GARY F PURPURA (503) 225-9393 | | | | (Name) | (Area Code - Telephone Number) | (Email Address) | | | B. ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing * | | | DUANE LIEBSWAGER, CPA,PC | | | | | (Name - if ind(vidual, state last, first, and middle name) | | | | | | | (Address) | (City) | (State)
(Zip Code) | | (Date of Registration with PCAOB)(if applicable) | 15405 SW 116TH AVENUE, STE 112 KING CITY, OREGON 97224 | (PCAOB Registration Number, if applicable) | | PERSON TO CONTACT WITH REGARD TO THIS FILING | FOR OFFICIAL USE ONLY | | ្រុក and the comments of the comments of 。 上一篇: 新闻网 上一篇: . {2}------------------------------------------------ #### OATH OR AFFIRMATION | . swear (or affirm) that, to the best of my knowledge and belief; the
GARY F PURPURA
I, | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--| | 2~
financial report pertaining to. the firm or
, as of
LIBERTY CAPITAL INVESTMENT CORPORATION
is true and correct. I furthe'r swear (or affirm) that neither the tompany nor any
DECEMBER 31
· | | | partner, officer, director, or equivalent personi as the case may be, has any proprietary inter tin any account classified solely | | | a\$ that of a customer. | | | OFFICIAL STAMP | | | Andrea Bevin Clarlt Webber | | | · NOTARY PUBLIC • OREGON | | | COMMISSION NO.1018535
~tlc(COMM!SSION EXPIRES. November4,2025.
Title: | | | PRESIDENT
- | | | Notary Public· | | | | | | s. filingu contains (check all applicable boxes): | | | (a) Statement of financial condition. | | | (b) Notes to cansolid!lted statement of financial condition. | | | jc;) Statement of income (loss) or, if there is other comprehensive inco!T)e in the period(s) presented, a statement of | | | comprebensive income (as defined in~ U0.1·02 of Regulation S0X), | | | V (d) Statement of cash flows.
· · | | | (e) Statement of changes in stockholders' or partners' or.sole proprietor's equity. | | | (f) Statement of chan'ges in liabilities siibon:iinated to c!alms of creditors. | | | (g) Notes to consolidated financial statements. | | | (h) Computation of net capital underl7 CfR 2.40.l5c3-1 or 17 CFR 240.18a•1, as applicable. | | | (i)Computation of tangible net worth under 17 CFR 240.l8a•2 .
. U) Computation for detetmination oh:ustomer reserve requlrementspursuant to Exhibit A to 17 CFR 240.15c3-3. | | | (kl Computation for determinat)on of security0 based sw~p reserve requirements pursuant to-Exhibit B to 17 CFR 240.15c3°3 or | | | . ExhibltA to 17 CFR 240.18a•4, as applicable. | | | §
(I) Computation for DetermlnatLon of PAB Requirements linder Exhibit A to§ 240.1Sc3•3. | | | (m) Jnformation relating to possession ot control requir.ements fci(customers under 17 CFR 240.15c3:,3. | | | (n) Information relating to possession or cont_rol requirements for security•based swap customers under 17 CFR | | | 240.15c3•3(p)(2) or 17 CFR 240.18a-4, as applicable. | | | I vi
(o) Reconciliatrons, including appropriate explanations; 6fthe FOCUS Report wlth computation of riet capital or tangible net | | | worth under 17 CFR 24D.1Sc3-1; 17 CFR 240.18a•l, or 17 CFR 240.i8a~2, as applicable, arid the reserve requirements under 17
0:R 240.1Sc3-3 or 17 CFR 2.40.18a04,.as applicable; if material differern:es exist; or a statement that no material differences | | | exist.
, | | | (p) Summary of financial data for. subsidiaries not consolidated in the statement offiriancial coriditior\. | | | (q) bath or affirmation in accordance with 17 CFR 240:17a.s, 17 CFR 240.l 7a.12, or 17 tFR 240.18a-7, as applicable. | | | {r) Compliance report in accordance with 17 CFR240. l7a-5 or 17 CFR z40:1sa-7, as applicable. | | | (sJ E;,D | | | (v) Independent pµ~lk accoµntanfs report based on an exa111inatiori of certain staternents In the compliance report under 17 | | | · CFR240.17a-Sor 17 CFR 240.lBa-7, as applicable.
IV] (w) Independent public accountant's report based on a relii.ew of the exemption report under 17 CFR.240.17ae5 .cir 17 | | | CFR 240.lB'a-7; as applicabl.e. | | | □ (x) Supplernent;.il reports on .-pplyirig agreedcupon procedures; in accordance with 17 CFR240.15c3-1e or l 7 CFR 240.l 7a-12, | | | as applicable.
• | | | □ (y) Report describing i:iny n:iat~rial iriade_quaci~s found to exist or found to have existed sirice the date ofthe previous. audit,. or | | | □ a statement that nomaten.il 1nadequac1es exist, under 17 CFR 240.17a•l2(k).
(z)Other: ________________________________________ --'- | | | | | | | | !'\*To request r;onfidentia/ *credtmetit* of certain part/ans *of this* filing, 5ee 17 CFR *140,i?aa5(e)(3} or i?* CFR 240.18a;.l(c!)(2), *as* app/ica/;J{e, ··· {3}------------------------------------------------ # **TO BE COMPLETED** WITH **THE ANNUAL AUDIT REPORT ONLY:** | INDEPENDENHUBL!C ACCOUNTANT whose opinion is contained in this. Report | | | | | |------------------------------------------------------------------------|--------------|-------------|-------------|----| | NAME {lfindividual, state last, first, middle name) | | | | | | DUANE LIEBSWAGER, C.P.A., PC | | | | | | | | 70 | | | | ADDRESS | | | | | | 15405 SW116TH AVENUE, | | | | | | SUITE112 | [K] PORTLAND | [Jf] OREGON | OD 97224 | oo | | Number and Street | City | State | Zip Code | | | CHECK ONE | | | | | | Ill Certified Public Accountant | 00 | | FOR SEC USE | | | D Public Accountant | [Kl | | | | | 0 Accountant not resident in United States
or any ofits possessions | [ill | | | | | REPORT DATE
MM/DD/YY | DOC. SEQ. NO. | CARD | | |-------------------------|---------------|------|--| | | | | | {4}------------------------------------------------ # CONTENTS | REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--| | FINANCIAL STATEMENTS | | | STATEMENT OF FINANCIAL CONDITION | | | STATEMENT OF INCOME | | | STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY | | | STATEMENT OF CASH FLOWS | | | NOTES TO FINANCIAL STATEMENTS | | | SCHEDULE 1.,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, | | | SCHEDULE 2 | | | REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM-EXEMPTION | | | REPORT REVIEW | | {5}------------------------------------------------ # **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To r.he shareholders and board of directors Liberty Capital Investment Corporation ## *Opinion on the Financiql Statements* lhave audited the accompanying statement of financial condition of Liberty Capital Investment Corporation as of December 31, 2021, and the related statements ofincome, changes in stockholders' equity, cash flows for the year then ended; and the related notes to the financial statements. In my opinion, the financial statements referred to above present fairly, in all material respects, the financial condition of Liberty Capital Investment Corporation as of December 31, 202.1, and the results of its opera,ticins a11d.its cash flows for the yearthen ended ih conformity with accounting principles generally accepted in the United States of America. · # *Basis for Opinion* These fihanciai statements are the responsibility of Liberty Capital Investment Corporation's management. My responsibility is to express an opinion on Liberty Capital Investment Corporation's financial statements based on my audit. I am a public accounting firm registered with the Public Company Accounting OversightBoard (United States)(''PCAOB") and am required to be independent with respect to Liberty Capital Irivesti:nent Corporation in accordance with the U.S. federal securities laws- and the applicable rules and regulations of the Securities and Exchange Commission and the PCAQB. I conducted mYaudit in accordance *with* the standards of the Public Cornpany Accounting Oversight Board. 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 th,e financial statements, whether due to· error or fraud,. andperforming procedures· thatrespond to those risks, Such procedures included examining, on a test basis, evidence regarding the amounts and disclosuresjn tlle financial statements. My audit .also .included evaluating the accounting principles used and significant estimates.made by management, as well as evaluating the ove:r:an presentation ofthe financial statements. I believe that rriy audit provides a reasonable basis fot my opinion; {6}------------------------------------------------ ### *Auditor* '.s *Report on Supplemental Information* The supplemental schedule of computation of net capital under Rule l5c3-1 has been subjected to audit procedures performed in conjunction with the alldit of Liberty Capital Investment Corporation's financial statements. Th.e supplemental information.ts the responsibility of Liberty Capital Investment Corporation's management. My 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 cornplet~ness and accuracy of the information presented in the' supplemental information. In forming my opinion on the supplemental inforlllation, I evaluated whether the supplemental information, including its form and content, is presented in conformity with 17 C.F.R. §240.17a:-5, In my opinion, the supplemental schedule of computation of net capital under Rule 15c3-1 is fairly stated,in all material respects, in relation to the financial statements as a whole. Duane Liebswager C,P.A., PC Certified Public Accountant I have served as Liberty Capital InvestrnentCorporation's auditor since 2009 Portland, Oregon March 21, 2022 {7}------------------------------------------------ #### **FINANCIAL STATEMENTS** #### **LIBERTY CAPITAL INVESTMENT CORPORATION** #### **STATEMENT OF FINANCIAL CONDITION** . . . **December 31, 2021** | ASSETS | | |-------------------------------------------------------------------------------|------------| | Cash and casl1 equivalents | \$73,171 | | Receivables ftom broker dealers | 81,926 | | Receivables-
Other | 5,279 | | Inventory positions at clearing Corporation | 417,900 | | Deposits with clearing organizations | 25,331 | | Furniture, equipment at cost - net of accumulated
depreciation of \$24;721 | 3,911 | | Prepaid expenses . | 30,820 | | TOTAL ASSETS. | | | LIABILITIES AND STOCKHOLDERS' EQUITY | | | . LIABILITIES | | | Accounts payable and accrued liabHities | \$139,538 | | Deferred income taxes | 29;900 | | TOTAL LIABILITIES | 169.438 | | .STOCKHOLDERS' EQUITY | | | Common stock, no par value 7,450 shares issued | 22,333 | | Additipnal paid-in capital | 10,116 | | Retained earnings | 436.451 | | Total stockholders' equity | 468,900 | | TOTAL LIABILITIES AND STOCKHOLDER.S' EQUITY | \$63~_,g38 | See accompanying notesand accountant's audit report. {8}------------------------------------------------ # **LIBERTY CAPITAL INVESTMENT CORPORATION** #### **STATEMENT OF INCOME** #### **For the Year Ended December 31, 2021** | REVENUE | | |------------------------------------|------------| | Commissions | ·\$225,898 | | Sale of investment company shares | 302,91~ | | Dividends and interest | 12,089 | | Fee income | 393,229 | | Other | 54,123 | | Gains. (losses) on securities | 57,104 | | Total revenue | 1,045,358 | | EXPENSES | | | Employee comperisation and taxes | 768,107 | | Cornm.is\$ions and floor brokerage | 66,486 | | Regulatory fees and assessments | 2,939 | | Communicat~ons | 5,003 | | Occupancy .and equipment tents | 65,132 | | Professional fees | 34;415 | | Other expgnses | Sd,047 | | Depreciation | 1,497 | | Total. expenses | 993,626 | | NET INCOME BEFORE lNCOME TAXES | 51,732 | | INCOME TAXES | (19,914) | | NET INCOME | \$31.818 | See accompanying notes and accountant's audit report. {9}------------------------------------------------ # LIBERTY CAPITAL INVESTMENT CORPORATION # STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY # For the Year Ended December 31, 2021 | Common Stock | Shares | Amount | Paid-In
Capital. | Retained
Earnings | Total | |------------------------------|--------|----------|---------------------|----------------------|-----------| | Balance at December 31, 2020 | 7,350 | \$16,564 | \$10,116 | \$404,633 | \$431,313 | | New issued shares | 100 | 5,769 | | | 5,769 | | Net Income for the year | | | | 31,818 | 31,818 | | Balance at December 31, 2021 | 7.450 | \$22,333 | \$10,116 | \$436,451 | \$468.900 | See accompanying notes and accountant's audit report. {10}------------------------------------------------ #### **LIBERTY CAPITAL INVESlMENT CORPORATION** #### **STATEMENT OF CASH FLOWS** #### **For the Year Ended December 31,2021** | CASH FLOWS FROM OPERATING ACTfVlTIES | | |-------------------------------------------------------------------------|----------| | Net Income | \$31,818 | | Adjustments to reconcile netiricome to cash used inaperating activities | | | Depreciation | 1,497 | | Gains arid Losses on Securities | {14,088) | | Change in Securities Held for.Sale | (57,105) | | Changein beferredTaxes | 13AS0 | | Change in operating assets and liabilities | | | Change in Receivables | (5,009) | | Change in Prepaid Expenses | (9,675) | | Change in Accounts Payable and Accrued Liabilities | 67.336 | | Net cash used by opert1ting activi4es | 30,224 | | CASH FLOWS FROM INVESTING ACTIVITIES | | | Purchase of equipment | {1,941) | | Net cash used by investing activities | (1,941) | | CASH FLOWS FROM FINANCING ACTIVITIES | | | Sale of company stock | 5,769 | | Net cash used in financing activiii,es | 5,769 | | Net decrease in cash and cash equivalents | 34;052• | | Cash and cash equivalents at beginning of year | 39.119 | | Cash and cash equivalents at end of year | \$73.171 | #### **Amounts.paid for Federal and State Taxes: \$6;464** Disclosure of accounting polity: For purposes of the statement of cash flows, the Company considers cash on hand and cash in barik to be cash equivalents, · · · See accompanying notes and accountant's audit report. {11}------------------------------------------------ # **LIBERTY GAPITAL INVESTMENT CORPORATION** # **NOTESTO FINANCIAL STATEMENTS** # **December 31, 2021** # **NOTE A-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES.** . . . . . . . . . . . . . ·.· . . Date of Management's Review - Management has evaluated subsequent events through March 21; 2022, the date of which the financial statements were available to be issued: ## General Liberty Capital Investment Corporation was incorporated on Ocrober l, 1989, in Oregon. The Company is a broker~dealer registered with the SEC and is a member of the Financial Industry Regulatory Authority (FINRA); Municipal Securities Rulemaking Board (MSRB) and Securities Insurance Protection Corpotation (SIPC). · ## Revenue Recognition ## **Signifi¢qnt** *Judgements* Revenue from contracts with customers includes commission income and fees from investment. banking and asset management services. The recognition and measurement ofrevenue is based ori the assessment of individual contracttetms. Significant judgement is requited to determjnewhether performance obligations are satisfied at a point ln time or over time; how to allocate transaction prices where multiple performance obligations ate identified; when to recogqize revenue based on the appropriate measure of the Company;s prngress under the contract; whether revenue should be presented gross or net of certain costs; and whether constraints on varialJle consideration should be applied due to uncertain future events. #### *Commissions* *Brqkerage commissions.* The Company buys and sells s.e.curities on behalf of its customers. Each time a customer enters into a buy or sell transaction, the Company charges a commission. Commiss.ion.s and relatedclearing expenses are recorded on the trade date. The Company believes thatthe performance obligation is satisfied oh the trade date because that is when the underlying financial instrument or purchaser is identified, the pricing is agreed upon and the risks and rewards of ownership of the securities' have· been transferred to/from the customer. {12}------------------------------------------------ # **NOTE A- SUMMARY OF SlGNIFICANT ACCOUNTING POLICIES (CONTINUED)** Sale *of.investrrien(c:ompany shares,* The Company enters into arrangements with managed accounts or other pooled investment vehicles (funds) to distribute shares to irivestors. The Company rriayreceive distribution fees paid by the fund up front, over time, upon tbe investor's exit from the fund (that is,· a contingent deferred sales charge), or as a combination thereof. The Company believes that its · performance obligation is the sale of securities to investors and as such this is fulfilled on the trade date, Ahy fixed amounts are recognized on the trade date and variable are recognized to the extent it is probable that a significant revenue reversal will not cicciir once the uncertainty is resolved. Forvarhi.ble amounts, as the uncertainty is dependent on the value ofthe shares at future points in time as well as the length of time the investorremains in the fund, both of which are highly susceptible to factors outside the Company's influence, the Company does not believe that it can overcome this constraint until the rriarket value of the fund and theinvestor activities are known, which are usually monthly or quarterly. Distribution fees recognized in the current period are primarily related to performance obligations that have b~en satisfied in prior periods. #### *Asset Manageme.nt* *Investmentadvisory fees.* The Company provides investment adv.isory services on a daily basis, The Company believes the performance obligation for providing advisory services is satisfied over (bne · because the customer is teceiving and consuming the benefits as they are provided by the Company. Fee arrangements are based on a: percentage applied to the customer's assets under mana,gement. Fees are received monthly and are recognized as revenue at that time as they relate specifically to the services provided inthatperiod, which are distinct from the services provided in other periods. Fees received prior to recognizing.revenue are reflected. as contract liabilities. At December 31, 2021 the Company had \$61,990 as contract liabilities. . . #### Investments Marketable securities are valued at fair value. Theresulting differeI1ce between cost and fair value is included in income, ### Fixed Assets Depreciation is provided oh a sttaight-lihe basis. using estimated useful lives of five to ten years. #### Use of Accounting Estimates Thepreparationof financialstatemerttsin.conformitywith U.S. generally accepted accounting principles requites that management makes estimates andassurilptions which affect the reported . amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts. of revenue and exp ens es during the reporting period. Actual results. co:uld differ from those estimates. {13}------------------------------------------------ # **NOTE B** - **RECEIVABLE FROM llROKERS1 DEJ\.LERS AND CLEARING ORGANIZATIONS** Accounts receivable from brokers, dealers and clearing organizations result from the Company's normal trading activities. The Company considers. all accounts receivable to be fully collectible; accordingly, no allowance for doubtful accounts is required. # **NOTE C** - **INVENTORYPOSITIONATCLEARING CORPORATION** Marketable securities owned at December 31, 2021, consist of investment securities at quoted market values. | Readily marketable(all6wable):. | MarketValue | Cost | Unrealized | |---------------------------------|-------------|-----------|------------| | Corporate stocks and bonds | \$321,275 | \$221,284 | \$99,991 | | Bank ins.tired deposits | 0 | 0 | 0 | | | \$321,275 | \$221.284 | \$99,991 | Fair Value Measurement at Reporting Date Using: | Description | 2021 | Quoted Price· ih Active Markets | |--------------------------|-----------|---------------------------------| | | | For Identical Assets Level 1 | | Securities held for sale | \$417,900 | \$417;900 | | Total | \$411.900 | \$417.900. | # **NOTED** - **FIXED ASSETS** Fixed assets include property and equipment. Useful lives of equipment range from 5 to 10 years. At December 31, 2021, fixed assets consist of: | Furniture and fixtures | \$27,102 | |-----------------------------------|----------| | . Leaseholdimprovements | 1,530 | | Less acc1.1mulc1.ted depreciation | {24,721) | | | \$3,911 | Depreciation expense was \$1,497 for the year ended December 31, 202 L {14}------------------------------------------------ # **NOTE E** - **CAPITAL STOCK** Capital stqck at December 31, 2021 consists, of: 10;000 shares of no~par villue common stock authorized, 7 ;450 issued and outstanding \$22333 ## **NOTEF** - **INCOME TAXES** The Company is no longer subject to federal or state examinaticms by taxing authorities for years befor~ 2018, generally for three-years after they were filed. | | Deferred | Current | Total | |-----------------|----------|---------|-----------| | Federal | \$9,340 | \$1;244 | \$10;584 | | State | 4.UO | 5,220 | 9.330 | | Total Provision | \$13.450 | \$6,464 | ,\$19,91~ | Def erred income taxes are provided when income arid expenses, principally relating to the valuation of investment s,ecurities and differences in depreciation methods for book and tax, are recognized in different years for financial and taxreporting purposes. # , **NOTE G- NET CAPITAL REQUIREMENTS** The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (Rule 15c3-l), Which requires the maintenance of minimum net capital arni requires that the ratio of aggregate indebtedness to net capital shalLnot exceed 15 to 1. At Decernber 31, 2021, the Company had netcapital of \$384,046, which was \$372,750 in excess of its requiredhet capital of \$11,296, The Company;s ratio of aggregate, indebtedness to net capital was 0.44 to 1. # **NOTE H- RETIREMENT PLAN** The Company maintains a Savings Incentive Match Plan for Employees (SIMPLE-IRA) in which all employees receiving at least \$5,000 during any prior year are eligible to participate. Employees can elect to defer up to \$10,500 (\$13,000 if age 50 or older). The Company contributes 2% of wages up to \$4;500 for all employees. The contribution made for the year ended December 31, 2021, Was \$13,174. {15}------------------------------------------------ # **NOTE** I - **STOCKHOLDERS' AGREEMENT** The stockholders of the Company ha:ve an agreement stipulating, among other things, the terms under which the Company's stock tan be sold or transferred. The agreement proyiqes that a stock.l10lder int~nding to dispose of an interest in the Company musdirst offer his srockto the bthetstockholders at a price determined in accordance with the agreement. Any shares not purchased by the reITiaining stockholders will be purchased by the Company. The agreement also provides that the other stockholders may redeem the shares· owned by a stockholder upon death or disability; # **NOTE J -LEASE COMMITMENTS** The Company entered into a lease agreement effective 11.llY 1, 2006, for lease of office space and parking. Parking is atthe current market rate. The agreement was extended through December 2021, with monthly rent at \$5,096. The office lease was extended January l,2022 through April 30,2025 with monthly rent at \$5,770.for 12months; \$5,943 for the next 12 months, \$6,121 for the next 12 months and \$f?,305 forthe final 4 ITIOiiths. Total rent expense including parking for 2021 was \$70,641. # **NOTE K- CONCENTRATION OF CREDIT RISK** The Com parry maintains cash balances at one financial institution lotated in Portland,• Oreg on. Accounts are insured by· the Federal· Deposit Insurance Corporation up to \$250,000. At December 31, 2021, the Company's uninsured cash balance was \$0.00. # **NOTE L- COMMI1MENTS AND CONTINGENT LIABILITIES** The Company has a small possibility of beingi:nvolved in a lawsuit regarding withdrawals from a client's .account where the client's trustees are in a dispute, There is no provision. due to the non-. estimable nature of the liability. # **NOTEM- CORONAVIRUS 2019(COVID-19)** The Company's operations may be affected by the recent and ongoing outbreak of the coronavirus disease 2019 (COVID-19) which was declared a pandemic by the World Health Organization in March 2020. The ultimate disruption which may be caused by the outbreak is uncertain; however, it may result in a material adverse impact oh the Company's financial position, operations, and ca\$h flows. Possible effects include but are not limited to, disruption to the Company's customers and revenue. {16}------------------------------------------------ #### SUPPLEMENTARY INFORMATION PURSUANT TO RULE 17A,5 OF THE SECURITIES EXCHANGE ACT OF 1934 {17}------------------------------------------------ # LIBERTY CAPITAL INVESTMENT CORPORATION ## SCHEDULE 1 # FINANCIAL AND OPERATIONAL COMBINED UNIFORM SINGLE REPORT-PART IIA FORM X-17A-5 THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION COMPUTATION OF NET CAPITAL For Year Ended December 31, 2021 | | 2021 | |------------------------------------------------------------|-----------| | Stockholders' equity from statement of financial condition | \$468,900 | | Deduct equity not allowable for net capital | 0 | | Stockholders' equity qualified for net capital | 468,900 | | Deductions and/or charges | | | Non-allowable assets: | | | Furniture and equipment | (3,911) | | Prepaid expenses | (30,820) | | Net capital before haircuts | 434,169 | | Haircut on other securities | (50,123) | | Net Capital | \$384,046 | | Computation of net capital requirement | | | Minimum net capital required | \$11,296 | | Minimum dollar net capital requirement | \$5,000 | | Excess net capital | \$372,750 | | Aggregate Indebtedness | | | Items included from statement of financial condition: | | | Account payable and accrued liabilities | \$169,438 | | Total aggregate indebtedness | \$169,438 | | Ratio: Aggregate indebtedness to net capital | 0.44 to 1 | {18}------------------------------------------------ ## LIBERTY CAPITAL INVESTMENT CORPORATION #### SCHEDULE 2 # FINANCIAL AND OPERATIONAL COMBINED UNIFORM SINGLE REPORT -PART IIA FORM X-171-5 THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION RECONCILIATION OF COMPUTATION OF NET CAPITAL UNDER RULE 17a-5 For Year Ended December 31, 2021 | | 2021 | |---------------------------------------------------------------------------------------------|-----------| | NET CAPITAL | | | Net capital as of December 31, per unaudited report
filed by respondent | \$397,495 | | | | | Adjustments | | | Increase (Decrease) in net capital | (13,450) | | Rounding | | | Net capital at December 31, as adjusted | \$384,049 | | AGGREGATED INDEBTEDNESS | | | Total aggregate indebtedness as of December 31,
per unaudited report filed by respondent | \$155,988 | | Rounding | 0 | | Increase (Decrease) in aggregate indebtedness | 13.450 | | Total aggregate indebtedness as of December 31,
as adjusted | \$169,438 | {19}------------------------------------------------ # **Duane 'Liebswager CPA, PC Certified Public Accountant** *15405 SW I 16th Avenue, Suite* 112 *King City, OR 97224 Duane* G. *Liebswager* # **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the board of Directors and Shareholders of Liberty Capital Investment Corporation I have reviewed management's statements, included in the accompanying Exemption Report required by SEC Rule 17ii-5, in which (1) Liberty Capital Investment Corporation identified the following provisions of 17 C.F.R; 15c3-3(k) undef whicl1 Liberty Capital Investment Corporation claimed an. exemption from 17 C.F.R. §240.l5t3-3(2)(ii)(exemption provisions)and (2) Liberty Capital Investrnen.t Corporation stated that it has meuhe identified exemption provisions throughout the most recent fiscal year without exception.Liberty Capital Investment Corporatiqn's management is responsible for cotnp1iartce with the exemption provisions and its statements. My review was conducted iri accordance with the standards of the Public Company Accounting Oversight Board (United States) and, accordingly, includedinqliires and other required procedures to obtain evidence about Liberty Capital Investment Corporation's compliance with the exemption provisions. A review is,substantially less in scope than ah examination, the objective of whkhis 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 managements statements referred to above for them to be fairly stated, in all rnaterial tespectsi based on the provisions set forth in Paragraph (k)(2)(ii) "Customer Protection~Reserves and Custody of Securities of Rule 15t3-3 under the Securities and Exchange Act of 1934. · Portland, Oregon Duane Liebswager, C.P.A., PC March 21, 2022 {20}------------------------------------------------ DocuSign Envelope ID: C7DF9318-tl017'-4AOE-AFf3E-EEFDD5FBA38B. 2021 Exemption Report• SEC Rulel5c3-3 Uberty Capital Investment Corporation, during calendar year 2021, claimed an exemption to SEC Rule 15c3·3. Liberty Capital Investment Corporation met the following criteria, without exception; tonhe calendar year 2020 under.section. (k)(2)(il) of th~ Rule: liberty Capftal lnvestmentCorporation is not acar'rying firm. Liberty Capital cardesnci margin accoynts, promptly transmits all customer funds, does not receive orhandie customer' securities, does not otherwise hold funds or securities for, or owe money to, customers and effe¢tuatesclll.financial transactions between the broker/dealer and its customers through Hilltop Securities Corporation, The Internal Control over the compiiance bfthe broker dealer was effective during the entire fiscal year . . · 2020 and was effective at the end of fisca I year 2021. The bro~erdealer was in compliance with 17C.F.R,. 240 . .15c3-1 (the net cap rule) and 240:1sc3-3(e) (the reserve requirement rule) as of the end offiscal year 2020. The information used by the bro.ker dealer to state whether it was in complia nte with th.e net cap rule arid the re.serve requ irement.s rule was derived from the books and records of the broker d.ealet; I certify that the above statement is. true and accurate to the best of my knowledge; 1/10/2022 Gary F. Purpura President /Principal Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.