Full text of LOMBARD SECURITIES INCORPORATED's X-17A-5 filed 2024-03-28 (period 2023-12-31). Broker-dealer annual report from SEC EDGAR — readable, searchable, and available as markdown for AI agents.
{0}------------------------------------------------ ## PUBLIC LoMBARD sECURrrrEs rNcoRpoRATED AND srJBsrDrARrEs NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31,2023 ## NOTE 9 - ADVERTISING Advertising costs are expensed as incurred. For the year ended December 3 l, 2023 costs were \$0. # NOTE 10 - Credit Losses J A broker dealer, however, is not required to measure exp€cted credit losses on a financial asset (or group of financial assets) in which historical credit loss information adjusted for current conditions and reasonable and supportable forecasts results in an expectation that nonpayment of the amortized cost basis is remote. For financial assets measured at amortized cost (i.e. cash), the Company has concluded that there are no expected credit losses based on the nature or expected life ofthe financial assets and immaterial historic or expected losses. # NOTE lr -SUBSEQUENT EVENTS Management has evaluated subsequent events through March 28, 2024, lhe date on which the financial statements were available to be issued. No events have occurred since the balance sheet date that would have material impact on financial statements. {1}------------------------------------------------ ## LOMBARD SECURITIES INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2023 ### NOTE 5 - OFF-BALANCE-SHEET RISK A clearing broker/dealer carries all of the accounts of the Company and is responsible for execution, collection and payment of funds, and receipt and delivery of securities related to client transactions. Off-balance-sheet risk exists with respect to these transactions due to the possibility that clients may be unable to fulfill their contractual commitments wherein the clearing the may charge any losses it incurs to the Company. The Company seeks to minimize this risk through procedures designed to monitor the credit worthiness of its clients and verify that client transactions are executed properly by the clearing broker/dealer. ## NOTE 6 - NET CAPITAL REQUIREMENTS The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (Rule 15c3-1), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. The rule also provides that equity capital may not be withdrawn or cash dividends paid if the resulting net capital ratio exceeds 10 to 1. At December 31, 2023, the Company is in compliance wi…Read the full text as markdown