# CHAPIN DAVIS, INC. X-17A-5 (2023-04-04) — Broker-dealer annual report - Company: CHAPIN DAVIS, INC. - Form: X-17A-5 - Filed: 2023-04-04 - Period: 2022-12-31 - Accession: 0000872098-23-000003 - CIK: 872098 - File #: 8-43485 - Type: Broker-dealer - Material weakness: No - Auditor: Kuczak & Associates P.A. - Auditor location: Bel Air, MD - Contact: John Davis - Phone: 4435733948 - Email: talbert@chapindavis.com - Website: chapindavis.com - Signed by: Talbot Jones Albert, IV (Chairman, CEO) Original filing: https://www.sec.gov/Archives/edgar/data/872098/000087209823000003/AnnualReport2022.pdf --- {0}------------------------------------------------ **UNITED STATES SECURmES AND EXCHANGE COMMISSION** Washington, D.C. **20549** | 0MB APPROVAL | | |--------------------------|--| | 0MB Number: 3235-0123 | | | Expires: Oct. 31, 2023 | | | Estimated average burden | | | hours per response: 12 | | | SEC FILE NUMBER | | | 8-43485 | | # **ANNUAL REPORTS FORM X-17A-S PART** ¹¹¹ **FACING PAGE** **Information Required Pursuant to Rules 17a-S, 17a-12, and 18a-7 under the Securities Exchange Act of 1934** | FILING FOR THE PERIOD BEGINNING 0 1/01/2022 | | AND ENDING 12/31 /22 | | |-------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|--------------------------------------------|------------| | | MM/DD/VY | | MM/00/YY | | | A. REGISTRANT IDENTIFICATION | | | | NAME oF FIRM: Chapin Davis, Inc. | | | | | TYPE OF REGISTRANT (check all applicable boxes):
~ Broker-dealer
D Check here if respondent is also an OTC derivatives dealer | D Security-based swap dealer | □ Major security-based swap participant | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | 1411 Clarkview Road | | | | | | (No. and Street) | | | | Baltimore | MD | | 21209 | | {City) | (State) | | (Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | Talbot Jones Albert, IV | 41 0-435-3200
talbert@chapindavis.com | | | | (Name) | (Area Code -Telephone Number) | (Email Address) | | | | B. ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
Kuczak & Associates, P.A. | | | | | | (Name - If Individual, state last, first, and middle name) | | | | 139 N Main Street | Bel Air | MD | 21014 | | (Address)
2/23/2010 | (City) | (State)
5023 | (Zip Code) | | late of Registration with PCAOB)(lf applicable) | FOR OFFICIAL USE ONLY | (PCAOB Registration Number, If applicable) | | | | | | | accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-S(e)(l)(II), If applicable. **Persons\_who are to respond to the collectlon of Information contained** In **this form are not required to respond unless the form displays a currently valid 0MB control number.** {1}------------------------------------------------ #### **OAllt OR AFFIRMATION** | r, Talbot Jones Albert. IV | | , swear (or affirm) that, to the best of my knowledge and bellef, the | |---------------------------------------------------------------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | financial report pertaining to the firm of Chapin Davi8, Inc. | 2~ | as of | | 12/31 | | Is true and correct. I further swear (or affirm) that neither the company nor any
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.
v
, -f1 | | ----.:-::--·-~-:--:-:-:-':"'."::":'."".'.71
C~mmonwealth of Pennsylvania - Notary Seal
Carol Scicchitano, Notary Public
Phlladelphla County
My commission expires September 30, 2024.
Commission number 1210288
Title:
Member, Pennsylvania A11oclat1011 of Notaries
Chairman, CEO | **Notary** Public ### This filing•• contains (check all applicable **boxes):** - ii (a) Statement of financial condition. - □ (b) Notes to consolidated statement of financial condition. - ii (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).** - ii (d) Statement of cash flows. - ii (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - □ (f) Statement of changes in liabilities subordinated to claims of creditors. - ii (g) Notes to consolidated financial statements. - ii (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. - □ (I) Computation of tangible net worth under 17 CFR 240.18a-2. - **l!i** 0) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - O (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.1Sc3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable. - □ (I) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. - ii (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - D (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.lSa-4, as appllcable. - ii (o) Reconcflfations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.1Sc3-1, 17 CFR 240.18a-1, or 17 CFR 240.lSa-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.lBa-4, as applicable, If material differences exist., or a statement that no material differences exist. - □ (p) Summary of financial data for subsidiaries not consolfdated in the statement of financial condition. - l!i (q) Oath or affirmation In accordance with 17 CFR 240.17a-S, 17 CFR 240.17a-12, or 17 CFR 240.lSa-7, as applicable. - □ (r) Complfance report In accordance with 17 CFR 240.17a-5 or 17 CFR 240.lBa-7, as applicable. - ii (s) Exemption report In accordance with 17 CFR 240.17a-S or 17 CFR 240.lSa-7, as applicable. - □ (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 report or financial statements under 17 CFR 240.17a-S, 17 CFR 240.lSa-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. - iii (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. - 0 (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.1Sc3-1e or 17 CFR 240.17a-12, as applicable. - D (y) Report describing any material inadequacies found to exist or found to have existed since the **dote** of the prevlou, **audit,** or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). D (z)Other: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_ ⁰ To *request confidential treatment of certain portions of this fillng1 see 17 a=R* 240.17a-S(e}(3) *or* 17 *CFR* 240.1Ba-7(d)(2), ⁱ *applicable.* {2}------------------------------------------------ # **Chapin Davis, Inc. And Subsidiary Consolidated Financial Statements And Supplemental Schedules** (Pursuant to Rule 17a-5 of the Securities and Exchange Commission) As of and for the year ended December 31 , 2022 {3}------------------------------------------------ ### Index | | Page(s) | |----------------------------------------------------------------------------------------------------------------------------------------------------|-----------| | Report of Independent Registered Public Accounting Firm | 1 -
2 | | Consolidated Statement of Financial Condition | 3 | | Consolidated Statement of Operations | 4 | | Consolidated Statement of Changes in Stockholders' Equity | 5 | | Consolidated Statement of Cash Flows | 6 | | Notes to Consolidated Financial Statements | 7 -
14 | | Supplemental Schedules: | | | Schedule of Computation of Aggregate Indebtedness and
Net Capital pursuant to Securities and Exchange
Commission Rule 15c3-I | 15 | | Computation for Determination of Reserve
Schedule II -
Requirements Under Rule 15c3-3 of the Securities and
Exchange Commission | 16 | | Schedule III -
Information Relating to the Possession or
Control Requirements Under Rule 15c3-3 of the Securities
and Exchange Commission | 17 | | Report of Independent Registered Public Accounting Firm
on Review of Management's Exemption Report Pursuant to
SEC rule 15c3-3 | 18 | | Exemption Report | 19 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) #### CERTIFIED PUBLIC ACCOUNTANTS 139 ~orth !\Iain Street, Suite LO I Bel Air, MD 21014 > The Board of Directors Chapin Davis and Subsidiary Baltimore, Maryland ## Report of Independent Registered Public Accounting Firm ### Opinion on the Financial Statement We have audited the accompanying statement of financial condition of Chapin Davis and Subsidiary as of December 31, 2022, and related consolidated statements of operations, changes in stockholders' equity, and cash flows for the year then ended, that you are filing pursuant to Rule 17a-5 under the Securities Exchange Act of 1934 and the related notes (collectively referred to as lhe "financial statements'"). In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Chapin Davis and Subsidiary .as of December 31, 2022 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 the company's management. Our responsibility is to express an opinion on these financial statements based on our audit. We are a public accounting fom registered with the Public Company Accounting Oversight Board (''PCAOB") (United States) and are required to be independent with respect to the Company in accordance with the United States federal secw-ilies laws and the applicable rules and regulations of the Securities and Exchange Commission ("SEC") and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perfonn the audit to obtain reasonable assmance about whether the (inancial 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 enor 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 frnancial statements. {5}------------------------------------------------ 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 to provides a reasonable basis for our opinion. We have served as the Company·s auditor consecutively since 2017. Supplemental Information The supplemental information has been subjected to audit procedures performed in conjunction with the audit of Company's financial statements. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlyjng 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 the standards of the PCAOB. In our opinion, the supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole. *k'~* ~ *A~ P.A-.* Bel Air, Maryland March 31, 2023 {6}------------------------------------------------ # CHAPIN DA VIS, INC. and SUBJDIARY CONSOLIDATED ST A TEMENT OF FINANCIAL CONDITION December 31 , 2022 | ASSETS | | |-----------------------------------------------------------------|-----------------| | Cash | \$
71 ,529 | | Deposits with clearing organization | 213,
145 | | Receivable from clearing organizations | 278,867 | | Receivables from employees | 135,000 | | Right of use asset | 754,616 | | Deferred tax assets | 415,337 | | Prepaid expenses | 92,911 | | Security deposits | 23,858 | | Leasehold improvements and office equipment, net | 27
1,454 | | TOTAL ASSETS | \$
2,367,846 | | LIABILITIES AND STOCKHOLDERS' EQUITY | | | LIABILITIES: | | | Accounts payable and accrued expenses | \$
447,034 | | Obligations under operating leases | 799,333 | | Total liabilities | 1,246,367 | | STOCKHOLDERS' EQUITY: | | | Preferred stock, Class A 8-1 /2%, \$100 par value; 3,000 shares | | | authorized and outstanding | 300,000 | | Common stock, \$.IO par value: 200,000 shares | | | authorized: 110,039 shares outstanding | 7,5
16 | | Additional paid-in capital | 1,174,653 | | Retained earnings | (360,690) | | Total stockholders' equity | 1,
121 ,479 | | TOTAL LIABfLITlES AND STOCKHOLDERS' EQUITY | \$
2,367,846 | The accompanying notes are an integral part of these financial statements. {7}------------------------------------------------ # CHAPIN DA VIS, INC. and SUBIDIARY CON SOLID A TED ST A TEMENT OF OPERATIONS Year Ended December 31, 2022 | Revenues | | |-----------------------------------|---------------------| | Commissions | \$
1,301
,536 | | Principal transactions | 170,277 | | Interest | 348,909 | | Investment advisory fees | 2,209,048 | | Mutual fund fees | 977,913 | | Referral fees | 696,282 | | Investment banking fees | 1,861 ,000 | | Underwriting Fees | 56,848 | | Other income | 58,166 | | Total revenue | 7,680,902 | | Expenses | | | Compensation and benefits | 6,416,620 | | Floor brokerage and clearing fees | 228,695 | | Occupancy and equipment rental | 386,117 | | Technology communications | 393,300 | | Office supplies | 18,875 | | Uncollectible accounts | 10,005 | | Registration and licenses | 93,080 | | Insurance | 68 | | Depreciation and amortization | 31 ,342 | | Legal and accounting | 566,968 | | Other | 150,985 | | Total expenses | 8,298,728 | | Loss from operations | (617,826) | | Benefit from income taxes | | | Net loss | \$
(6
17,826) | The accompanying notes are an integral part of these financial statements. {8}------------------------------------------------ # CHAPIN DAVIS, INC. and SUBIDIARY CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY Year Ended December 31, 2022 | | Preferred
Stock | Common
Stock | Additional
Paid-in
Capital | Retained
Earnings | Total
Stockholders'
Equity | |----------------------------|--------------------|-----------------|----------------------------------|----------------------|----------------------------------| | Balance, January l, 2022 | \$
300,000 \$ | ,039 \$
11 | 929,793 | \$
22
1,821 | \$
1,462,653 | | Net loss | | - | - | (617,826) | (6
17,826) | | Common stock transactions | - | (3,523) | 244,860 | 35,315 | 276,652 | | Balance, December 31, 2022 | \$
300,000 | \$
7,516 | \$
I, 174,653 | \$
(360,690) \$ | 1,
,479
121 | The accompanying notes are an integral part of these financial statements {9}------------------------------------------------ ## CHAPIN DAVIS, INC. and SUBIDIARY CON SO LIDA TED STATEMENT OF CASH FLOWS Year Ended December 3 1, 2022 | Cash flows from operating activities: | | |-----------------------------------------------|-----------------| | Net loss | \$
(617,826) | | Adjustments to reconcile net income | | | provided by operating activities: | | | Depreciation and amortization | 3
1,342 | | (Increase) decrease in operating assets: | | | Deposits with clearing organization | (
11 1,216) | | Receivable from clearing organizations | 84,6
10 | | Receivable from broker dealer | (1 11 ,
129) | | Right of use asset | 111 ,080 | | Receivables from employees | 20,000 | | Prepaid expenses | 9,159 | | Increase (decrease) in operating liabilities: | | | Accounts payable and accrued expenses | (934,708) | | Net cash used in operating activities | (
1,518,688) | | Cash flows from investing activities: | | | Purchase of office equipment | (40,
169) | | Net cash used in investing activities | (40,
169) | | Cash flows from financing activities: | | | Common stock-net | 250,990 | | Net cash provided by financing activities | 250,990 | | Net decrease in cash | (
1,307,867) | | Cash at January I, 2022 | 1,379,396 | | Cash at December 31
, 2022 | \$
71 ,529 | The accompanying notes are an integral part of these financial statements 6 {10}------------------------------------------------ # CHAPIN DAVIS, INC. AND SUBSIDIARY NOTES TO CON SO LIDA TED FINANCIAL STATEMENTS DECEMBER 31, 2022 # 1. Nature of Business and Summary of Significant Accounting Policies Significant accounting policies followed by Chapin Davis, Inc. and Subsidiary (the Company) as summarized below conform to accounting principles generally accepted in the Unites States of America (U.S. GAAP). The significant accounting policies are summarized as follows: ## A. Nature of Operations Chapin Davis, Inc. (Chapin Davis) is a broker-dealer registered with the Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA). Chapin Davis was incorporated in Maryland using the name Patapsco Securities, Inc. on December 12, 1990. On March 22, 1991 , Chapin Davis acquired the operation of Chapin Davis & Co., via an asset purchase agreement. Chapin Davis changed its name from Patapsco Securities, Inc. to Chapin Davis, Inc. in 2008. In 2013, Chapin Davis opened an office in Peoria, Illinois. In 2018, the Company opened an office in Philadelphia, Pennsylvania. Chapin Davis is a registered securities broker-,000 | | | \$ 799,333 | The company also leases office space under short term leasing arrangements. Chapin Davis has entered into finance leases for certain equipment. Obligations under finance leases have been recorded in the accompanying consolidated financial statements at the present value of future minimum lease payments. The capitalized cost of approximately \$138,000 and related accumulated depreciation of this equipment are included in office equipment, net. {16}------------------------------------------------ ### CHAPIN DA VIS, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL ST A TEMENTS - CONTINUED DECEMBER 31 , 2022 ### 7. Credit Risk In the normal course of business, Chapin Davis's securities activities through its clearing firm involve execution, settlement and financing of various securities transactions for customers. These activities may expose Chapin Davis to risk in the event customers, other brokers and dealers, bank depositories or clearing organizations are unable to fulfill contractual obligations. The Company does not have any significant concentration in the value of business with a particular customer, group of customers or products. The Company has concentrated its credit risk by maintaining deposits in a financial institution and its clearing broker. The deposits at the financial institution may at times exceed amounts covered by the insurance provided by the U.S. Federal Deposit Insurance Company (FDIC). The deposits at the clearing broker may at times exceed an1ounts covered by insurance provided by the Securities Investment Protection Corporation (SIPC). The Company has not experienced a loss in such accounts and believes it is not exposed to any significant credit risk to cash. ### 8. Guarantees and Indemnifications F ASB guidance requires the Company to disclose information about its obligations under certain guarantee arrangements. The guidance defines guarantees as contracts and indemnification agreements that contingently require a guarantor to make payments to the guaranteed party based on changes in an underlying that is related to an asset, liability or equity security of a guaranteed party. The F ASB guidance also defines guarantees as contracts that contingently require the guarantor to make payments to the guaranteed party based on another entity's failure to perform under an agreement as well as indirect guarantees of the indebtedness of others. F ASB guidance requires the Company to disclose information about its obligations under certain guarantee arrangements. The guidance defines guarantees as contracts and indemnification agreements that contingently require a guarantor to make payments to the guaranteed party based on changes in an underlying that is related to an asset, liability or equity security of a guaranteed party. The FASB guidance also defines guarantees as contracts that contingently require the guarantor to make payments to the guaranteed party based on another entity's failure to perform under an agreement as well as indirect guarantees of the indebtedness of others. Chapin Davis guarantees aJI of the customer margin account balances held by its clearing broker. Chapin Davis is responsible for payment to its clearing broker for any loss, liability, damage, cost or expense incurred as a result of customers failing to comply with margin or margin maintenance calls on all margin accounts. The margin account balance held by the clearing broker as of December 31, 2022 was \$1 ,328,672 In the event of any customer default, the Chapin Davis has rights to the underlying collateral provided. Given the existence of the underlying collateral provided as well as the negligible historical credit losses, the Chapin Davis does not maintain any loss reserve. {17}------------------------------------------------ ## CHAPIN DA VIS, INC. AND SUBSIDIARY NOTES TO CON SO LIDA TED FINANCIAL STATEMENTS - CONTINUED DECEMBER 31, 2022 ### 9. Regulatory Requirements Chapin Davis is subject to the Securities and Exchange Commission's uniform Net Capital Rule (Rule l 5c3 l) which requires the maintenance of minimum net capital and requires that the ratio of "aggregate indebtedness" to net capital shall not exceed 15 to I. As of December 31, 2022 the net capital was \$249,660, which exceeded the capital requirement of \$100,000 by \$149,660 and the aggregate indebtedness ratio was 1.68 to 1. ## 10. Consolidated Subsidiary The following is a summary of certain financial information of the Company's consolidated subsidiary: | Total assets | \$ | 60,261 | | | |--------------------------|----|--------------|--|--| | Due to Chapin Davis, Inc | | \$ (491,121) | | | | Stockholders ( deficit) | | \$ (430,860) | | | These amounts are not included in the computation of net capital under Rule l 5c3-l of the Securities and Exchange Commission. #### 11. Subsequent Events 1n preparing these financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through March 31, 2023 the date the financial statements were available to be issued. During the period January 1, 2023 through March 31 2023 the Company did not have any subsequent events requiring recognition or disclosure. {18}------------------------------------------------ #### CHAPIN DA VIS, INC. SCHEDULE OF COMPUTATION OF AGGREGATE INDEBTEDNESS AND NET CAPITAL (PURSUANT TO SECURITIES AND EXCHANGE COMMISSlON RULE 15c3-I) DECEMBER 31, 2022 | Liabilities included in aggregate indebtedness:
Accounts payable and accrued expenses per financial statement
1,246,367
\$
(799,333)
Less obligations under capital lease
447,034
\$
COMPUTATION OF NET CAPITAL
Total Stockholders Equity
1,553,341
\$
Less: Total Non-Allowable Assets
(1 ,299,443)
Add: Total Non-Allowable Liabilities
Net capital before haircuts on securities
253,898
Haircuts on securities
4,238
249,660
CAPITAL REQUIREMENTS
Net capital required
100,000
Net capital in excess of requirements
149,660
Net capital as shown above
249,660
Ratio of aggregated indebtedness to net capital
1.68 to I
RECONCILIATION WITH COMPANY'S COMPUTATION
Net capital, as reported in Company's Part 11
(Unaudited) Focus Report
249,660
\$
Net Capital Per Above
249,660
\$
Aggregate indebtedness, as reported in Company's Part II
(Unaudited) Focus Report
419,251
\$
Reclassification of Balance Sheet Items
27,783
Aggregate indebtedness, Per Above
447,034
\$ | COMPUTATION OF AGGREGATE INDEBTEDNESS | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------|--| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | There were no material differences between the audited computation of net capital and the broker/dealer's corresponding Unaudited Part II A. {19}------------------------------------------------ # Schedule II ## CHAPIN DA VIS, fNC. ### COMPUTATION FOR DETERMINATION OF RESERVE REQUIREMENTS UNDER RULE 15c3-3 OF THE SECURITIES AND EXCHANGE COMMISSION December 31, 2022 Chapin Davis is exempt from SEC Rule l 5c3-3 because it does not carry securities accounts for customers or perform custodial functions relating to customer securities. Chapin Davis is exempt pursuant to k(2)(ii). {20}------------------------------------------------ ### Schedule III #### CHAPIN DA VIS, INC. ### lNFORMA TION RELATING TO POSSESSION OR CONTROL REQUIREMENTS UNDER RULE 15c3-3 OF THE SECURITIES AND EXCHANGE COMMISSION #### December 31 , 2022 Chapin Davis is exempt from SEC Rule 15c3-3 because it does not carry securities accounts for customers or perform custodial functions relating to customer securities. Chapin Davis is exempt pursuant to k(2)(ii). {21}------------------------------------------------ ![](_page_21_Picture_0.jpeg) CERTIFIED PUBLIC ACCOUNTANTS L39 North Main Street, Suite 101 Bel Air, MD 21014 > The Board of Directors and Stockholders Chapin Davis, Inc. and Subsidiary Baltimore, Maryland > > Report of Independent Registered Public Accounting Firm We have reviewed management's statements, included in the accompanying Report, in which (1) Chapin Davis, Inc. identified the following provisions of 17 C.F.R. § 15c3-3(k) under which Chapin Davis, Inc. claimed an exemption from 17 C.F.R. § 240.15c3-3: (2)(ii) (the "exemption provisions") and (2) Chapin Davis, Inc. stated that Chapin Davis, Inc. met the identified exemption provisions throughout the most recent fiscal year ended December 31 , 2022 without exception. Chapin Davis, 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 Chapin Davis, Inc. '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 conditions set forth in paragraph (k)(2)(ii) of Rule l 5c3-3 under the Securities Exchange Act of 1934. Bel Air, Maryland March 3 1, 2023 {22}------------------------------------------------ ![](_page_22_Picture_0.jpeg) Chapin Davis, Inc. Exemption Report For the Year End December 31, 2022 Chapin Davis, Inc. (the "Company") is a registered Broker-Dealer subject to Rule I 7a-5 Promulgated by the Securities and Exchange Commission (17 C.F.R. €240.117a-S, "Reports to be made by certain Broker Dealers"). This Exemption Report was prepared as required by 17 C.F.R. €240.l 7a-S(d)(l) and (4). To the best of its knowledge and beJief, the Company states the following: - J) The Company claimed an exemption from 17 C.F.R. €240.185(c)3-3 under the provisions ofl 7 C.F.R. €240.15(c)3-3(k): (2)(ii) - 2) The Company met the identified exemption provisions in 17 C.F.R. €240.15(c)3-3(K.) throughout the most recent fiscal year without exception. Chapin Davis, Inc. I, Talbot Jones Albert. IV affirm that, to the best ofmy knowledge and belief, this Exemption Report *is* true and correct. tj/j ai Talbot Jon Albert, IV Chainnan. CEO Wealth **Maoo1.-ement** • Investment Securltle~ • **Capital Mar~ets** • lrtsunrnce **Servite,** **SUI Catli:Yiew llold** I •ltlmora. **MD Z1209** I **Tele,itione lUDJOS-DIO** I **Toll FtN IIDO)ll2-324&** I **Fu: l41D)4JJ-20!9** I **www.CNJindtwis,a.n** Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.