# LEIGH BALDWIN & CO., LLC X-17A-5 (2022-02-28) — Broker-dealer annual report - Company: LEIGH BALDWIN & CO., LLC - Form: X-17A-5 - Filed: 2022-02-28 - Period: 2021-12-31 - Accession: 0000946629-22-000002 - CIK: 946629 - File #: 8-48385 - Type: Broker-dealer - Material weakness: No - Auditor: Dannible & McKee LLP - Auditor location: Syracuse, NY - Contact: CHELSEA DODSON - Phone: 3157341410 - Email: cdodson@leighbaldwin.com - Website: leighbaldwin.com - Signed by: Chelsea Dodson (Chief Financial Officer) Original filing: https://www.sec.gov/Archives/edgar/data/946629/000094662922000002/filing1.pdf --- {0}------------------------------------------------ ### FINANCIAL STATEMENTS ### LEIGH BALDWIN & CO., LLC DECEMBER 31, 2021 {1}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** | 0MB APPROVAL | |----------------------------| | 0MB Number: 3235-0123 | | Expires: Oct. 31, 2023 | | Estimated average burden | | hours per response:
I 2 | | | SEC FILE NUMBER # **ANNUAL REPORTS FORM X-17A-5 PART Ill** 8-48385 **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 __ 0_1_I0_1_I2_0_2_1 ___ | | AND ENDING _ | I3
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_ | | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|--------------|-------------------------------|--------------------------------------------|--| | | MM/DD/VY | | | MM/DD/VY | | | | A. REGISTRANT IDENTIFICATION | | | | | | NAME OF FIRM : | __________________________
Leigh Baldwin & Co., LLC | | | _ | | | TYPE OF REGISTRANT (check all applicable boxes):
□ Major security-based swap participant
□ Security-based swap dealer
IXl Broker-dealer
□ Check here if respondent is also an OTC derivatives dealer | | | | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | | | 112 Albany Street | | | | | | | | (No. and Street) | | | | | | Cazenovia | New York | | 13035 | | | | (City) | (State) | | | (Zip Code) | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | Chelsea Dodson | 315-734-1410 | | cdodson@leighbaldwin.com | | | | (Name) | (Area Code - Telephone Number) | | (Email Address) | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
Dannible & McKee, LLP | | | | | | | | (Name - if individual, state last, first, and middle name) | | | | | | 221 S. Warren Street | Syracuse | | NY | 13202 | | | (Address) | (City) | | (State) | (Zip Code) | | | 11/25/2003 | | 528 | | | | | (Date of Registration with PCAOB)(if applicable) | | | | (PCAOB Registration Number, if applicable) | | | | FOR OFFICIAL USE ONLY | | | | | | * 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-S(e)(l)(ii), if applicable. **Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid 0MB control number.** {2}------------------------------------------------ #### **OATH OR AFFIRMATION** | | Chelsea Dodson | |--|----------------| | | | I, - ------ -------------,-----...,......,~ swear (or affirm) that, to the best of my knowledge and belief, the | financial report pertaining to the firm of | | Leigh Baldwin & Co. LLC | | as of | |--------------------------------------------|----|-------------------------|-----------------------------------------------------------------------------------|-------| | December 31 | 2~ | | 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. l -----\L7 Z00 i u Cl(''-'\ c;)6" *()O&L* c~-d'c,Cl U '--\ l;\_r ~ ~ *u 'I'\* c\_ *C-1* MIRSADAGRABOVICA Notary Public. State of New Yoik Reg.# 01GR6331267 Qualified in Oneida County tL;,, **My** Commission Expires 10/05/~ 3 Notary Public ### **This filing\*\* contains (check all applicable boxes):** - I]! (a) Statement of financial condition. - ocJ (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 240.1Sc3-1 or 17 CFR 240.18a-l, as applicable. - □ (i) Computation of tangible net worth under 17 CFR 240.18a-2. - □ (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.1Sc3-3. - □ (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.lSa-4, as applicable. - □ (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.1Sc3-3. - □ (m) Information relating to possession or control requirements for customers under 17 CFR 240.1Sc3-3. - □ (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.1Sc3-3(p)(2) or 17 CFR 240.18a-4, as applicable. - □ (o) Reconciliations, 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-l, or 17 CFR 240.lSa-2, as applicable, and the reserve requirements under 17 CFR 240.1Sc3-3 or 17 CFR 240.lSa-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. - 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) Compliance report in accordance with 17 CFR 240.17a-S or 17 CFR 240.lSa-7, as applicable. - □ (s) Exemption report in accordance with 17 CFR 240.17a-S or 17 CFR 240.18a-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 240.18a-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-S or 17 CFR 240.lSa-7, as applicable. - □ (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-S or 17 CFR 240.18a-7, as applicable. - □ (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.1Sc3-le or 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). □ (z) Other:--------------- ----------- - - - ------ ----- *\*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e}(3} or 17 CFR 240.18a-7(d)(2}, as applicable.* {3}------------------------------------------------ # **LEIGH BALDWIN & CO., LLC** TABLE OF CONTENTS | REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | | |---------------------------------------------------------|-----| | FINANCIAL STATEMENTS: | | | Statement of Financial Condition -
December 31, 2021 | 2 | | NOTES TO FINANCIAL STATEMENTS | 3-9 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) # Report of Independent R1::t!.iSt1::red Public Accounling, Firm February 28, 2022 To the Members of Leigh Baldwin & Co., LLC # **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Leigh Baldwin & Co., LLC (a Delaware limited liability company) as of December 31, 2021, and the related notes ( collectively referred to as "financial statement"). In our opinion, the financial statement presents fairly, in all material respects, the financial position of Leigh Baldwin & Co., LLC as of December 31, 2021, in conformity with accounting principles generally accepted in the United States of America. # **Basis for Opinion** This financial statement is the responsibility of Leigh Baldwin & Co., LLC's management. Our responsibility is to express an opinion on Leigh Baldwin & Co., LLC's financial statement 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 Leigh Baldwin & Co., LLC 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 statement is 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 statement, 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 statement. 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 statement. We believe that our audit provides a reasonable basis for our opinion. Dannible & McKee, **LLP** We have served as Leigh Baldwin & Co .. LLC's auditor since 2017. Syracuse, New York ![](_page_4_Picture_12.jpeg) {5}------------------------------------------------ ### **LEIGH BALDWIN & CO., LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2021** ### **ASSETS** | Cash and cash equivalents | \$ | 534,677 | |------------------------------------------------------------|----|--------------| | Deposits with clearing organizations | | 105,000 | | Receivables from broker-dealers and clearing organizations | | 551,514 | | Securities owned: | | | | Marketable, at market value | | 345,645 | | Other current assets | | 121,469 | | | | \$ 1,658,305 | | LIABILITIES AND MEMBERS' EQUITY | | | | LIABILITIES: | | | | Accounts payable, accrued expenses and other liabilities | \$ | 609,410 | | Total Liabilities | | 609,410 | | MEMBERS' EQUITY | | 1,048,895 | | TOTAL | | \$ 1,658,305 | {6}------------------------------------------------ ### **1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** ### **Organization** Leigh Baldwin & Co., LLC (the "Company") is a fully disclosed introducing broker registered with the Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA). The Company is a Delaware Limited Liability Company formed on January 30, 1995. The business is located in Cazenovia, New York. The Company is registered with the states of New York, Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, Nevada, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming, and the District of Columbia. ### **Operations** As an introducing broker-dealer, the Company provides services for the purchase and sales of securities. All Company and customer transactions are cleared on a fully disclosed basis through an independent broker-dealer. The Company pays this broker-dealer various charges and fees for clearing services provided. All customer-related balances are carried on the books of the clearing broker. The Company carries no margin accounts and does not hold funds or securities for, or owe money or securities to, customers. In the event a customer is unable to fulfill its contractual obligations to the clearing broker, the Company may be exposed to off-balance sheet risk. The Company operates under the provisions of Paragraphs (k)(2)(i) and (k)(2)(ii) of Rule l5c3-3 of the Securities Exchange Act of 1934 and, accordingly, is exempt from the remaining provisions of that rule. Essentially, the requirements of Paragraph (k)(2)(i) provide that the Company may effect transactions, such as mutual funds and insurance products, by check and application, where the Company promptly transmits all customer funds in compliance with Paragraph (k)(2)(i) of Rule 15c3-3. The requirements of Paragraph (k)(2)(ii) provide that the Company clear all transactions on behalf of customers on a fully disclosed basis with a clearing broker-dealer and promptly transmit all customer funds and securities to the clearing broker-dealer. The clearing broker-dealer carries all the accounts of the customers and maintains and preserves all related books and records as are customarily kept by a clearing brokerdealer. {7}------------------------------------------------ ### **1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)** ### **Revenue Recognition** ### **Commissions** The Company buys and sells securities on behalf of its customers. Each time a customer enters a buy or sell transaction, the Company charges a commission. Commissions and related clearing expenses are recorded on the trade date (the date that the Company fills the trade order by finding and contracting with a counterparty and confirms the trade with the customer). The Company believes that the performance obligation is satisfied on the trade date because that is when the underlying financial instrument or purchase is identified, the pricing is agreed upon and the risks and rewards of ownership have been transferred to/from the customer. ### **Management and Investment Advisor Income** The Company provides investment advisory services on a daily basis. The Company believes the performance obligation for providing advisory services is satisfied over time because the customer is receiving 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 management. Fees are received quarterly and are recognized as revenue at that time as they relate specifically to the services provided in that period, which are distinct from the services provided in other periods. ### **Basis of Presentation** Assets, liabilities, revenue and expenses are recognized on the accrual basis of accounting. ### **Use of Estimates** Management of the Company uses estimates and assumptions in preparing financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of assets and liabilities, and the reported revenues and expenses. Actual results could vary from the estimates that management uses. ### **Income Taxes** Leigh Baldwin & Co., LLC is a limited liability company that is treated as a partnership for federal and state income tax purposes. Accordingly, all tax effects of the Company's income or loss are passed through to the members individually. Therefore, no provision for federal income tax has been made by the Company. However, the Company does pay various state filing fees. The Company has reviewed their operations for uncertain tax positions and believe there are no significant exposures. The Company is no longer subject to federal, state or local examinations by tax authorities for years prior to 2018. (Continued) {8}------------------------------------------------ ### **1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)** ### **Cash and Cash Equivalents** For purposes of the statement of cash flows, the Company considers all short-term debt securities purchased with original maturities of three months or less to be cash equivalents. ### **Securities Transactions** Securities transactions and related commission revenue and expenses are recorded on a trade date basis. ### **Receivables from Broker-Dealers and Clearing Organizations** The Company considers receivables to be fully collectible. If collection becomes doubtful, an allowance for doubtful accounts will be established, or the accounts will be charged to expense when that determination is made by management. Unpaid balances remaining after the stated payment terms are consider past due. Recoveries of previously charged off accounts are recorded when received. ### **Advertising Costs** Advertising costs are expensed as incurred. Advertising expenses totaled \$42,900 for the year ended December 31, 2021. ### **Subsequent Events** Management has evaluated subsequent events through February 28, 2022, the date the financial statements were available for issue. ### **2. CONCENTRATIONS OF CREDIT RISK** The Company is engaged in various trading and brokerage activities in which counterparties primarily include a broker-dealer and other financial institutions. In the event counterparties do not fulfill their obligations, the Company may be exposed to risk. The risk of default depends on the creditworthiness of the counterparty or issuer of the instrument. It is the Company's policy to review, as necessary, the credit standing of each of the counterparties. The Company maintains cash accounts in financial institutions which periodically exceed federally insured limits. At December 31, 2021, balances did not exceed insured limits. The Company has not experienced any losses related to cash accounts and does not believe it is exposed to any significant risk with respect to cash accounts. (Continued) {9}------------------------------------------------ ### **2. CONCENTRATIONS OF CREDIT RISK (CONT'D)** The Company invests in various types of investment securities. Investment securities are exposed to various risks, such as interest rate, market and credit risk. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the value of investment securities will occur in the near term and that such change, could affect the amounts reported in the accompanying financial statements. ### **3. DEPOSITS WITH CLEARING ORGANIZATIONS** The Company clears certain of its proprietary and customer transactions through other brokerdealers on a fully disclosed basis. A deposit is required by the Company's clearing broker to secure amounts receivable from the Company. The account bears interest at current market rates. ### **4. ACCOUNTS PAY ABLE, ACCRUED EXPENSES AND OTHER LIABILITIES** The liabilities include the following items: Commissions payable of\$554,394, Accounts payable of\$53,725 and accrued state taxes or filing fees of\$1,291. ### **5. NET CAPITAL REQUIREMENTS** The Company is subject to the Securities and Exchange Commission 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, both as defined, shall not exceed 15 to 1. Rule l 5c3-l also provides that equity capital may not be withdrawn if the resulting net ratio would exceed 10 to 1. At December 31, 2021, the Company had net capital of \$864,312, which was \$764,312 in excess of its required net capital of \$100,000 for 2021. The Company's net capital ratio was 70.51 % on December 31, 2021. No material difference exists between the Computation of Net Capital under rule 15c3-l and the Computation for determination of the Reserve Requirement from the audit report with the Company's corresponding computations submitted in its most recent unaudited Part IIA filing. {10}------------------------------------------------ ### **6. INVESTMENTS** Financial Accounting Standards Board (F ASB) Accounting Standards Codification (ASC) 820, *Fair Value Measurements and Disclosures,* provides the framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy under FASB ASC 820 are described as follows: - *Level I:* Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access. - *Level 2:* Inputs to the valuation methodology include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; inputs other than quoted prices that are observable for the asset or liability; inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset or liability. - *Level 3:* Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The asset or liability's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The following is a description of the valuation methodologies used for assets measured at fair value on a recurring basis as of December 31, 2021. • Management considers all investments as trading for reporting purposes. | | Fair Value Measurements as of December 31, 2021 | | | | | | | |--------------------------------|-------------------------------------------------|-----------|----|--------|----|--------|---------------| | | | Level 1 | | Level2 | | Level3 | Total | | Securities owned -
Equities | | | | | | | | | West Hills Tactical | | | | | | | | | Core Fund | \$ | 340,5 l l | \$ | | \$ | | \$
340,511 | | Debt Securities | | 17 | | | | | 17 | | Other Equities | | 5 117 | | | | | 5.117 | | Total Assets Measured at Fair | | | | | | | | | Value on a Recurring Basis | | | | | \$ | | 45 | (Continued) {11}------------------------------------------------ ### **6. INVESTMENTS (CONT'D)** Fair value for trading securities are based on quoted market prices. Cash and cash equivalents not classified as trading securities are reported based on the nature of the accounts, cost approximates fair value. Investments held as of December 31, 2021, consisted of the following: | | Fair Value | Cost | Unrealized
Gain (Loss) | |--------------------------------|------------|---------|---------------------------| | Securities owned -
Debt | \$
17 | \$ | \$
17 | | Securities owned -
Equities | 345,628 | 313,018 | 32,610 | | Total Assets | | | \$
32,627 | ### 7. **OPERATING LEASES AND OTHER COMMITMENTS** The Company has three leases for office space with a related party; the leases are verbal agreements on a month-to-month basis. The tenn of one is \$2,500 per month plus 30% of heat and electricity charges; another is for a monthly rent of \$1,800, and the third is monthly rent of\$1,000. The Company has elected to apply the short-tenn lease exemption to one of its classes of underlying assets: office space. In 2021, Leigh Baldwin & Co., LLC has three leases within this class of underlying asset that qualify for the exemption. The short-tenn lease cost recognized and disclosed for those leases in 2021 was \$60,200 for the year ended December 31, 2021. ### **8. CONTINGENCY** The U.S. broker/ dealer industry has become the subject of increased scrutiny with respect to regulatory compliance and operating practices. The Company could be subject to this scrutiny. ### **9. PAYCHECK PROTECTION PROGRAM** In March 2020, the Coronavirus Aid, Relief, and Economic Securities Act ("CARES Act") was enacted to provide emergency assistance for individuals, families and organizations affected by the Coronavirus pandemic. The Paycheck Protection Program ("PPP") established by the Small Business Administration (SBA), created through the CARES Act, provided qualified organizations with loans to assist them to pay certain qualified expenses. Under the tenns of the CARES Act and PPP, the Company can apply for and be granted forgiveness for all or a portion of the loan to the extent the proceeds are used in accordance with the PPP. (Continued) {12}------------------------------------------------ ### **9. PAYCHECK PROTECTION PROGRAM (CONT'D)** On April 29, 2020, the Company was granted a PPP loan from a financial institution in the amount of \$130,000. The Company received formal forgiveness under the PPP as of March 21, 2021 and had recorded income in the accompanying statement of income and changes in members' equity. Any loan forgiveness is subject to review by the Small Business Administration for six years from the date the loan is forgiven. ### **10. RISKS AND UNCERTAINTIES** On March 11 , 2020, the World Health Organization declared the coronavirus (COVID-19) outbreak a pandemic. While it is premature to accurately predict how COVID-19 will ultimately affect the Company's operations long-term, the Company's ongoing profitability may experience instability and estimates included in the financial statements may be adversely impacted due to current political and economic conditions as a result of public health concerns related to COVID-19. The duration and intensity of these impacts and resulting disruption to which the events affect the Company's business will depend on future developments, which are highly uncertain and cannot be predicted at this time. (Concluded) {13}------------------------------------------------ # FIN.ANCIAL STATEMENTS # LEIGH BALDWIN & CO., LLC DECEMBER 31, 2021 {14}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** | ANNUAL REPORTS | |----------------| | FORM X-17A-5 | | PART Ill | 0MB APPROVAL 0MB Number: 3235-0123 Expires: Oct. 31, 2023 Estimated average burden hours per response: 12 SEC FILE NUMBER 8-48385 **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 | ___
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_ | | | | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|-----------------------------------------|------------------------------------------------------------------------|---------------------------------------------|--|--| | | MM/DD/VY | | MM/DD/VY | | | | | | A. REGISTRANT IDENTIFICATION | | | | | | | Leigh Baldwin & Co., LLC
NAME OF FIRM: | __________________________ | | | _ _ | | | | TYPE OF REGISTRANT (check all applicable boxes):
IXl Broker-dealer
D 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.) | | | | | | | | 112 Albany Street | | | | | | | | | (No, and Street) | | | | | | | Cazenovia | New York | | | 13035 | | | | (City)
(State) | | | | (Zip Code) | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | | Chelsea Dodson | 315-734-1410 | | | cdodson@leighbaldwin.com | | | | (Name) | (Area Code - Telephone Number) | | | (Email Address) | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
Dannible & McKee, LLP | | | | | | | | | (Name - if individual, state last, first, and middle name) | | | | | | | 221 S. Warren Street | Syracuse | | NY | 13202 | | | | (Address) | (City) | | (State) | (Zip Code) | | | | r
11/25/2003 | | 528 | | | | | | t• of Regl,t,atloe with PCAOB J(;f applicable) | | | | (PCAOB Reglst,afoo N,mbe,, If applicable) I | | | | | FOR OFFICIAL USE ONLY | | | | | | | * 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)(l)(ii), if applicable. **Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid 0MB control number.** {15}------------------------------------------------ #### **OATH OR AFFIRMATION** | | Chelsea Dodson | |--|----------------| | | | I, -----------------~ swear (or affirm) that, to the best of my knowledge and belief, the | financial report pertaining to the firm of | | Leigh Baldwin & Co. LLC | as of | |--------------------------------------------|----|-----------------------------------------------------------------------------------|-------| | December 31 | 2~ | 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. -\-C 'owe\\ G\ r9::<·\~ *9---0&~* **MIRSAOA GRABOVICA No1ary** Puhllc. **Stale of Nmv York. Reg. /I** 01GR!l331267 **Ouallfie~** In **Onoida County My Commission Expires 10105/d.9J3** ### **This filing\*\* contains (check all applicable boxes):** - **00 (a)** Statement offinancial condition. - □ (b) Notes to consolidated statement offinancial condition. - **[)il** (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. - IKl (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - □ (f) Statement of changes in liabilities subordinated to claims of creditors. - 00 (g) Notes to consolidated financial statements. - 00 (h) Computation of net capital under 17 CFR 240.1Sc3-1 or 17 CFR 240.18a-1, as applicable. - □ (i) Computation of tangible net worth under 17 CFR 240.18a-2. - □ (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.1Sc3-3. - □ (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§ 240.1Sc3-3. - □ (m) Information relating to possession or control requirements for customers under 17 CFR 240.1Sc3-3. - □ (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.1Sc3-3{p)(2) or 17 CFR 240.18a-4, as applicable. - □ (o) Reconciliations, 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 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.1Sc3-3 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. - 00 (q) Oath or affirmation in accordance with 17 CFR 240.17a-S, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable. - D (r) Compliance report in accordance with 17 CFR 240.17a-S or 17 CFR 240.18a-7, as applicable. - □ (s) Exemption report in accordance with 17 CFR 240.17a-S or 17 CFR 240.18a-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 240.18a-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-S or 17 CFR 240.18a-7, as applicable. - IX] (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.l 7a-5 or 17 CFR 240.18a-7, as applicable. - 00 (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.1Sc3-le or 17 CFR 240.17a-12, as applicable. - C (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). D(z) Other:------------------------------------- - - *\*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e}(3} or 17 CFR 240.18a-7(d}(2}, as applicable.* {16}------------------------------------------------ # **LEIGH BALDWIN & CO., LLC TABLE OF CONTENTS** # **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** ### **FINANCIAL STATEMENTS** | Statement of Financial Condition -
December 31, 2021 | 3 | |----------------------------------------------------------------------------------|---| | Statement of Income/Changes in Members' Equity -
Year Ended December 31, 2021 | 4 | | Statement of Cash Flows -
Year Ended December 31, 2021 | 5 | ### **NOTES TO FINANCIAL STATEMENTS** 6-11 ### **SUPPLEMENTARY INFORMATION** | Computation of Net Capital Under Rule l 5c3-l of the
Schedule I - | | |----------------------------------------------------------------------|----| | Securities and Exchange Commission | 12 | | Schedule II-
Reconciliation with Company's Computation | 12 | | REPORT OF INDEPENDENT PUBLIC ACCOUNTING FIRM | 13 | | Exemption Report | 14 | | | | {17}------------------------------------------------ ![](_page_17_Picture_0.jpeg) February 28, 2022 To the Members of Leigh Baldwin & Co., LLC ### **Opinion on the Financial Statements** We have audited the accompanying statement of financial condition of Leigh Baldwin & Co., LLC (a Delaware limited liability company) as of December 3 L 202 L the related statements of income and changes in members' equity, and cash flows for the year then ended and the related notes and schedules ( collectively refe1Ted to as "financial statements''). In our opinion, the financial statements present fairly, in all material respects, the financial position of Leigh Baldwin & Co., LLC as of December 31, 2021, 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 Leigh Baldwin & Co., LLC's management. Our responsibility is to express an opinion on Leigh Baldwin & Co., LLC'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 Leigh Baldwin & Co., LLC 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 en-or 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. {18}------------------------------------------------ # **Auditor's Report on Supplemental Information** The schedule of computation of net capital has been subjected to audit procedures performed in conjunction with the audit of Leigh Baldwin & Co .. LLC's financial statements. The supplemental information is the responsibility of Leigh Baldwin & Co., LLC's management. Our audit procedures included determining whether the supplemental info1mation reconciles to the financial statements or the underlying accounting and other records, as applicable, and perfo1ming 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 schedule of computation of net capital is fairly stated, in all material respects, in relation to the financial statements as a whole. Dannible & McKee, **LLP** We have served as Leigh Baldwin & Co., LLC's auditor since 2017. Syracuse, New York {19}------------------------------------------------ ## **LEIGH BALDWIN** & **CO., LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2021** ### **ASSETS** | Cash and cash equivalents | \$ | 534,677 | |------------------------------------------------------------|----|--------------| | Deposits with clearing organizations | | 105,000 | | Receivables from broker-dealers and clearing organizations | | 551,514 | | Securities owned: | | | | Marketable, at market value | | 345,645 | | Other current assets | | 121,469 | | | | \$ 1,658,305 | | LIABILITIES AND MEMBERS' EQUITY | | | | LIABILITIES: | | | | Accounts payable, accrued expenses and other liabilities | \$ | 609,410 | | Total Liabilities | | 609,410 | | MEMBERS' EQUITY | | 1,048,895 | | TOTAL | | \$ 1,658,305 | {20}------------------------------------------------ # **LEIGH BALDWIN** & **CO., LLC STATEMENT OF INCOME AND CHANGES IN MEMBERS' EQUITY FOR THE YEAR ENDED DECEMBER 31, 2021** | REVENUE: | | |------------------------------------------|------------------| | Commissions | \$
9,217,933 | | Management and Investment Advisor Income | 1,665,010 | | Principal Transactions | 136,525 | | [nterest and Dividends | 21,751 | | Forgiveness of Paycheck Protection Loan | 130,000 | | Business Development Credits (NFS) | 72,500 | | Other Income | 154,738 | | Total Revenue | \$
11,398,458 | | EXPENSES: | | | Employee Compensation and Benefits | \$
768,008 | | Commission Expenses | 8,738,736 | | Communications | 10,539 | | Occupancy | 60,200 | | Regulatory Fees and Expenses | 70,127 | | Other Operating Expenses | 955,928 | | Total Expenses | \$
10,603,538 | | NET INCOME | \$
794,920 | | MEMBERS' EQUITY -
JANUARY 1, 2021 | \$
605,615 | | MEMBERS' DISTRIBUTIONS | \$
(351,640) | | MEMBERS' EQUITY -
DECEMBER 31, 2021 | \$
1,048,895 | {21}------------------------------------------------ # **LEIGH BALDWIN** & **CO., LLC STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2021** | CASH FLOWS FROM OPERATING ACTIVITIES: | | |-------------------------------------------------------------|--------------| | Net income | \$ 794,920 | | Adjustments to reconcile net income to net cash provided by | | | operating activities: | | | Forgiveness of Paycheck Protection Loan | (130,000) | | Net realized and unrealized gain on securities owned | 12,995 | | Changes in operating assets and liabilities: | | | Receivable from broker-dealers and clearing organizations | 65,419 | | Other current assets | (74,925) | | Accounts payable, accrued expenses and other liabilities | (64,660) | | Net cash provided by operating activities | \$ 603,749 | | CASHFLOWS FROM INVESTING ACTIVITIES | | | Purchase of securities owned | \$ (125,000) | | Net cash used in investing activities | \$ (125,000) | | CASH FLOWS FROM FINANCING ACTIVITIES: | | | Members' distributions | (351,640) | | Net cash used in financing activities | (351,640) | | NET INCREASE IN CASH AND CASH EQUIVALENTS | 127,109 | | CASH AND CASH EQUIVALENTS -
JANUARY 1, 2021 | 407,568 | | CASH AND CASH EQUIVALENTS -
DECEMBER 31, 2021 | \$ 534,677 | | SUPPLEMENTAL DISCLOSURES OF CASH PAID DURING THE YEAR FOR: | | | Taxes paid | \$
6,209 | {22}------------------------------------------------ # **1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** # **Organization** Leigh Baldwin & Co., LLC (the Company') is a fully disclosed introducing broker registered with the Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA). The Company is a Delaware Limited Liability Company formed on January 30, 1995. The business is located in Cazenovia, New York. The Company is registered with the states of New York, Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, Nevada, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode lsland, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming, and the District of Columbia. # **Operations** As an introducing broker-dealer, the Company provides services for the purchase and sales of securities. All Company and customer transactions are cleared on a fully disclosed basis through an independent broker-dealer. The Company pays this broker-dealer various charges and fees for clearing services provided. All customer-related balances are carried on the books of the clearing broker. The Company carries no margin accounts and does not hold funds or securities for, or owe money, or securities to, customers. ln the event a customer is unable to fulfill its contractual obligations to the clearing broker, the Company may be exposed to off-balance sheet risk. The Company operates under the provisions of Paragraphs (k)(2)(i) and (k)(2)(ii) of Rule l 5c3-3 of the Securities Exchange Act of 1934 and, accordingly, is exempt from the remaining provisions of that rule. Essentially, the requirements of Paragraph (k)(2)(i) provide that the Company may effect for customer transactions, such as mutual funds and insurance products by check and application where the Company promptly transmits all customer funds in compliance with paragraph (k)(2)(i) of Rule 15c3-3. The requirements of Paragraph (k)(2)(ii) provide that the Company clear all transactions on behalf of customers on a fully disclosed basis with a clearing broker-dealer and promptly transmit all customer funds and securities to the clearing broker-dealer. The clearing broker-dealer carries all the accounts of the customers and maintains and preserves all related books and records as are customarily kept by a clearing broker-dealer. 6 (continued) {23}------------------------------------------------ # **Revenue Recognition** # **Commissions** The Company buys and sells securities on behalf of its customers. Each time a customer enters a buy or sell transaction, the Company charges a commission. Commissions and related clearing expenses are recorded on the trade date (the date that the Company fills the trade order by finding and contracting with a counterparty and confirms the trade with the customer). The Company believes that the performance obligation is satisfied on the trade date because that is when the underlying financial instrument or purchase is identified, the pricing is agreed upon, and the risks and rewards of ownership have been transferred to/from the customer. # **Management and Investment Advisor Income** The Company provides investment advisory service daily. The Company believes the performance obligation for providing advisory services is satisfied over time because the customer is receiving 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 management. Fees are received quarterly and are recognized as revenue at that time as they relate specifically to the services provided in that period, which are distinct from the services provided in other periods. # **Basis of Presentation** Assets, liabilities, revenue, and expenses are recognized on the accrual basis of accounting. # **Use of Estimates** Management of the Company uses estimates and assumptions in preparing financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of assets and liabilities, and the reported revenues and expenses. Actual results could vary from the estimates that management uses. # **Income Taxes** Leigh Baldwin & Co., LLC is a limited liability company that is treated as a partnership for federal and state income tax purposes. Accordingly, all tax effects of the Company's income or loss are passed through to the members individually. Therefore, no provision for federal income tax has been made by the Company. However, the Company does pay various state filing fees. The Company has reviewed their operations for uncertain tax positions and believe there are no significant exposures. The Company is no longer subject to federal, state or local examinations by tax authorities for years prior to 2018. {24}------------------------------------------------ # **Cash and Cash Equivalents** For purposes of statement of cash flows, the Company considers all short-term debt securities with original maturities of three months or less to be cash equivalents. # **Securities Transactions** Securities transactions and related commission revenue and expenses are recorded on a trade date basis. ### **Receivables from Broker-Dealers and Clearing Organizations** The Company considers receivables to be fully collectible. If collection becomes doubtful, an allowance for doubtful accounts will be established, or the accounts will be charged to expense when that determination is made by management. Unpaid balances remaining after the stated payment terms are consider past due. Recoveries of previously charged off accounts are recorded when received. ### **Advertising Costs** Advertising costs are expensed as incurred. Advertising expenses totaled \$42,900 for the year ended December 31, 2021. ### **Subsequent Events** Management has evaluated subsequent events through February 28, 2022, the date the financial statements were available for issue. # **2. CONCENTRATIONS OF CREDIT RISK** The Company is engaged in various trading and brokerage activities in which counterparties primarily include a broker-dealer and other financial institutions. In the event counterparties do not fulfill their obligations, the Company may be exposed to risk. The risk of default depends on the creditworthiness of the counterparty or issuer of the instrument. It is the Company's policy to review, as necessary, the credit standing of each of the counterparties. The Company maintains cash accounts in financial institutions which periodically exceed federally insured limits. At December 31, 2021, balances did not exceed insured limits. The Company has not experienced any losses related to cash accounts and does not believe it is exposed to any significant risk with respect to cash accounts. The Company invests in various types of investment securities. Investment securities are exposed to various risks such as interest rate, market and credit risk. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the value of investment securities will occur in the near term and that such change, could affect the amounts reported in the accompanying financial statements. {25}------------------------------------------------ # **3. DEPOSITS WITH CLEARING ORGANIZATIONS** The Company clears certain of its proprietary and customer transactions through other brokerdealers on a fully disclosed basis. A deposit is required by the Company's clearing broker to secure amounts receivable from the Company. The account bears interest at current market rates. # **4. ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES** The liabilities include the following items: Commissions payable of \$554.394, Accounts payable of\$53,725 and accrued state taxes or filing fees of\$l,291. ## **5. NET CAPITAL REQUIREMENTS** The Company is subject to the Securities and Exchange Commission 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, both as defined, shall not exceed 15 to 1. Rule l 5c3-l also provides that equity capital may not be withdrawn if the resulting net ratio would exceed l 0 to l. At December 31, 2021, the Company had net capital of \$864,312, which was \$764,312 in excess of its required net capital of \$100,000 for 2021. The Company's net capital ratio was 70.51 % on December 31, 2021. No material difference exists between the computation of Net Capital under rule l 5c3-1 and the Computation for determination of the Reserve Requirement from the audit report with the Company's corresponding computations submitted in its most recent unaudited Part IIA filing. # **6. INVESTMENTS** Financial Accounting Standards Board (F ASB) Accounting Standards Codification (ASC) 820, Fair Value Measurements and Disclosures, provides the framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy under FASB ASC 820 are described as follows: - *Level 1:* Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access. - *Level 2:* Inputs to the valuation methodology include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; inputs other than quoted prices that are observable for the asset or liability; inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset or liability. {26}------------------------------------------------ *Level 3:* Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The asset or liability's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The following is a description of the valuation methodologies used for assets measured at fair value on a recurring basis as of December 31, 2021. • Management considers all investments as trading for reporting purposes. | | | Levell | Level2 | | Level3 | | Total | | |--------------------------------------------------------------------|----|---------|--------|--|--------|--|-------|-----------| | Securities owned -
Equities
West Hills Tactical
Core Fund | \$ | 340,511 | \$ | | \$ | | \$ | 340,511 | | Debt Securities | | 17 | | | | | | 17 | | Other Equities | | 5.117 | | | | | | 5 11
7 | | Total Assets Measured at Fair | | | | | | | | | | Value on a Recurring Basis | \$ | 34~,645 | | | \$ | | | | ### Fair Value Measurements as of December 3 1, 202 1 Fair values for trading securities are based on quoted market prices. Cash and cash equivalents not classified as trading securities are reported based on the nature of the accounts, cost approximates fair value. Investments held as of December 31, 2021, consisted of the following: | | Fair Value | | Cost | | Unrealized
Gain (Loss) | | |--------------------------------------------------------------|------------|---------------|------|---------|---------------------------|-------------| | Securities owned -
Debt
Securities owned -
Equities | \$ | 17
345,628 | \$ | 313.018 | \$ | 17
32610 | | Total Assets | \$ | | | | \$ | 32,627 | 10 ( continued) {27}------------------------------------------------ # **7. OPERA TING LEASES AND OTHER COMMITMENTS** The Company has three leases for office space with a related party; the leases are verbal agreements on a month-to-month basis. The term of one is \$2,500 per month plus 30% of heat and electricity charges; another is for a monthly rent of \$1,800, and the third is monthly rent of \$1,000. The Company has elected to apply the short-term lease exemption to one of its classes of underlying assets: office space. In 2021, Leigh Baldwin & Co., LLC has three leases within this class of underlying asset that qualify for the exemption. The short-term lease cost recognized and disclosed for those leases in 2021 was \$60,200 for the year ended December 31, 2021. # **8. CONTINGENCY** The U.S. broker / dealer industry has become the subject of increased scrutiny with respect to regulatory compliance and operating practices. The Company could be subject to this scrutiny. # **9. PAYCHECK PROTECTION PROGRAM** In March 2020, the Coronavirus Aid, Relief, and Economic Securities Act ("CARES Act") was enacted to provide emergency assistance for individuals, families and organizations affected by the Coronavirus pandemic. The Paycheck Protection Program ("PPP") established by the Small Business Administration (SBA), created through the CARES Act, provided qualified organizations with loans to assist them to pay certain qualified expenses. Under the terms of the CARES Act and PPP, the Company can apply for and be granted forgiveness for all or a portion of the loan to the extent the proceeds are used in accordance with the PPP. On April 29, 2020, the Company was granted a PPP loan from a financial institution in the amount of\$130,000. The Company received formal forgiveness under the PPP as of March 21, 2021 and has recorded income in the accompanying statement of income and changes in members' equity. Any loan forgiveness is subject to review by the Small Business Administration for six years from the date the loan is forgiven. # **10. RISKS AND UNCERTAINTIES** On March 11, 2020, the World Health Organization declared the coronavirus (COVID-19) outbreak a pandemic. While it is premature to accurately predict how COVID-19 will ultimately affect the Company's operations long-term, the Company's ongoing profitability may experience instability and estimates included in the financial statements may be adversely impacted due to current political and economic conditions as a result of public health concerns related to COVID-19. The duration and intensity of these impacts and resulting disruption to which the events affect the Company's business will depend on future developments, which are highly uncertain and cannot be predicted at this time {28}------------------------------------------------ ### **LEIGH BALDWIN** & **CO., LLC SCHEDULES** I & II **FOR THE YEAR ENDED DECEMBER 31, 2021** ### **SCHEDULE** I **COMPUTATION OF NET CAPITAL UNDER RULE 15C3-1 OF THE SECURITIES AND EXCHANGE COMMISSION** | NET CAPITAL:
Total members' equity qualified for net capital | | \$
l,048,895 | |-------------------------------------------------------------------------------------------------------------------------------------------|---------|-----------------| | Deductions and/or charges: | | | | Non-allowable assets: | | | | Petty cash | 2,500 | | | Other current assets | 126,469 | | | Unsecured customer debits | 774 | 129 743 | | Net capital before haircuts on securities positions | | 919,152 | | Haircuts on securities | | | | Debt Securities | 17 | | | Options | 2,250 | | | Other securities | 52,573 | 54,840 | | NET CAPITAL | | \$
864,312 | | AGGREGATE INDEBTEDNESS: | | | | Items included in statement of financial condition: | | | | Other accounts payable, accrued expenses and long term debt | | \$
609,410 | | TOTAL AGGREGATE INDEBTEDNESS | | \$
609,410 | | COMPUTATION OF BASIC NET CAPITAL REQUIREMENT: | | | | Total minimum net capital required at 6 2/3% of aggregate indebtedness | | \$
40,627 | | Excess net capital over \$100,000 | | \$
764,312 | | Excess net capital at 1500% | | \$
823,685 | | Ratio: Aggregate indebtedness to net capital | | 70.51% | | SCHEDULE II -
RECONCILIATION WITH COMP ANY'S COMPUTATION
(Included in Part II of Form X-17A-5 For the Year Ended December 31, 2021) | | | | Net capital, as reported in Company's Part II (unaudited) FOCUS report | | \$
864,312 | | NET CAPITAL PER ABOVE | | \$
864,312 | {29}------------------------------------------------ ![](_page_29_Picture_0.jpeg) # Report oflndependent Regi tered Public Accounting Finn February 28, 2022 To the Members of Le igh Baldwin & Co .. LLC We have reviewed management's statements, included in the accompanying Rule 15c3-3 Exemption Report, in which (1) Leigh Baldwin & Co., LLC identified the following provisions of 17 C.F.R. § 15c3-3(k) under which Leigh Baldwin & Co., LLC claimed an exemption from 17 C.F.R. § 240. l 5c3-3 : (k)(2): (i) and (ii) ("exemption provisions") and (2) Leigh Baldwin & Co., LLC stated that Leigh Baldwin & Co., LLC met the identified exemption provisions throughout the most recent fiscal year without exception. Leigh Baldwin & Co., LLC'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 Leigh Baldwin & Co., LLC'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 provisions set forth in paragraph (k)(2): (i) and (ii) of Rule 15c3-3 under the Securities Exchange Act of 1934. Dannible & McKee, LLP Syracuse, New York {30}------------------------------------------------ ![](_page_30_Picture_0.jpeg) # **Leigh Baldwin** & **Co., LLC Exemption Report** Leigh Baldwin & Co, LLC (the "Company") is a registered broker-dealer subject to Rule l 7a-5 promulgated by the Securities and Exchange Commission (17 C.F.R. § 240. l 7a-5, "Reports to be made by certain brokers and dealers"). This Exemption Report was prepared as required by 17 C.F.R. § 240.l7a-5(d)(l) and (4). To the best of its knowledge and belief, the Company states the following: - 1. Leigh Baldwin & Co., LLC claimed an exemption from 17 C.F.R. § 240. l5c3-3 under the following provisions of 17 C.F .R. § 240. l 5c3-3 (k)(2): (i) and (ii) - 2. The Company met the identified exemption provisions in 17 C.F.R. § 240. **l** 5c3-3(k)(2) throughout the most recent fiscal year without exception. The requirement of Paragraph (k)(2)(i) provides that Company may effect transactions by check and application, for mutual funds and insurance products, where the Company promptly transmits all customer funds to the issuers. The requirements of Paragraph (k)(2)(ii) provide that the Company, who as an introducing broker or dealer, clears all transactions with and for customers on a fully disclosed basis with a clearing broker or dealer, and who promptly transmits all customer funds and securities to the clearing broker or dealer which carries all of the accounts of such customers and maintains and preserves such books and records pertaining thereto pursuant to the requirements of Rule l 7a-3 and Rule l 7a-4, as are customarily made and kept by a clearing broker or dealer. Leigh Baldwin & Co., LLC I, Chelsea Dodson, affirm that, to my best knowledge and belief, this Exemption Report is true and correct. Chief Financial Officer February 28, 2022 Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.