# EAST WIND SECURITIES, LLC X-17A-5 (2022-02-23) — Broker-dealer annual report - Company: EAST WIND SECURITIES, LLC - Form: X-17A-5 - Filed: 2022-02-23 - Period: 2021-12-31 - Accession: 0000795051-22-000004 - CIK: 1440654 - File #: 8-67955 - Type: Broker-dealer - Material weakness: No - Auditor: Adeptus Partners, LLC - Auditor location: New York, NY - Contact: Steven Singer - Phone: 561-784-8922 - Email: ssinger@mavenstrategic.com - Website: mavenstrategic.com - Signed by: Joshua Schwartz (Managing Partner) Original filing: https://www.sec.gov/Archives/edgar/data/1440654/000079505122000004/eastwindsecpublic2021.pdf --- {0}------------------------------------------------ **EAST WIND SECURITIES, LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2021** {1}------------------------------------------------ #### **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** OMB APPROVAL OMB Number: ϯϮϯϱͲϬϭϮϯ Expires: KĐƚ͘ϯϭ͕ϮϬϮϯ Estimated average burden hours per response: # **ANNUAL REPORTS FORM X-17A-5 PART III** SEC FILE NUMBER 8-67955 **FACING PAGE** **Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934** | FILING FOR THE PERIOD BEGINNING _____________________ AND ENDING ______________________ | 01/01/21 | | 12/31/21 | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|-----------------|--------------------------------------------| | | MM/DD/YY | | MM/DD/YY | | | A. REGISTRANT IDENTIFICATION | | | | NAME OF FIRM: _______________________________________________________________________
East Wind Securities, LLC | | | | | TYPE OF REGISTRANT (check all applicable boxes):
x
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Broker-dealer
Security-based swap dealer
Major security-based swap participant
܆ Check here if respondent is also an OTC derivatives dealer | | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | _____________________________________________________________________________________
810 Seventh Avenue, 35th Floor | (No. and Street) | | | | _____________________________________________________________________________________
New York | NY | | 10019 | | (City) | (State) | | (Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING
_____________________________________________________________________________________
Steven Singer | 561-784-8922 | | ssinger@mavenstrategic.com | | (Name) | (Area Code – Telephone Number) | (Email Address) | | | | B. ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
Adeptus Partners, LLC
_____________________________________________________________________________________ | | | | | | (Name – if individual, state last, first, and middle name) | | | | 244 West 54th Street, 9th Floor
_____________________________________________________________________________________ | New York | NY | 10019 | | (Address) | (City) | (State) | (Zip Code) | | 1/6/2010
_____________________________________________________________________________________ | | 3686 | | | (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-5(e)(1)(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 OMB control number.** {2}------------------------------------------------ | Joshua Schwartz | swear (or affirm) that, to the best of my knowledge and belief, the | |-----------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------| | financial report pertaining to the firm of East Wind Securities, LLC | , as of | | December 31 | 2021_ 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. | | | MICHAEL YORIO
Notary Public, State of New York
No. 01YO6260718
Qualified in Nassau County
Commission Expires April 30, 2024 | Signature:
Title: | | Notary Public | | | | | - - - - - - - - - - - - - - - - - - - - - - - - - - {3}------------------------------------------------ ## **EAST WIND SECURITIES, LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2021 TABLE OF CONTENTS** | Report of Independent Registered Public Accounting Firm | | |---------------------------------------------------------|-----| | Financial Statement | | | Statement of Financial Condition | 2 | | Notes to Financial Statement | 3-5 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Member of East Wind Securities, LLC #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of East Wind Securities, LLC as of December 31, 2021, and the related notes (collectively referred to as the "financial statement"). In our opinion, the statement of financial condition presents fairly, in all material respects, the financial position of East Wind Securities, 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 East Wind Securities, LLC's management. Our responsibility is to express an opinion on East Wind Securities, 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 East Wind Securities, 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 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. We have served as East Wind Securities, LLC's auditor since 2017. New York, New York February 18, 2022 {5}------------------------------------------------ ## **EAST WIND SECURITIES, LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2021** | Assets | | |---------------------------------------|-----------------| | Cash | \$
964,880 | | Accounts receivable, net of allowance | 76,557 | | Prepaid expenses and other assets | 11,360 | | | | | Total assets | \$
1,052,797 | | | | | Liabilities and Member's Equity | | | Accounts payable and accrued expenses | \$
89,761 | | Due to affiliate | 306,818 | | | | | Total liabilities | 396,579 | | | | | Member's equity | 656,218 | | | | | Total liabilities and member's equity | \$
1,052,797 | The accompanying notes are an integral part of this financial statement. {6}------------------------------------------------ ## **EAST WIND SECURITIES, LLC NOTES TO FINANCIAL STATEMENT DECEMBER 31, 2021** ## **NOTE 1 - NATURE OF BUSINESS** ## **Organization** East Wind Securities, LLC (the "Company"), was formed in New York in April 2008. It operates as a registered broker-dealer under the Securities and Exchange Act of 1934 and is a member of the Financial Industry Regulatory Authority, Inc. ("FINRA"). The Company principally provides financial advisory services to US (or foreign) based companies, including mergers and acquisition related services. The Company also acts as placement agent for equity and debt private placements on behalf of its clients. ## **NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** ### **Use of Estimates and Basis of Accounting** Management is required to make estimates and assumptions to prepare financial statements in conformity with U.S. generally accepted accounting principles (*"GAAP"*). Management's estimates and assumptions materially affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements, and revenues and expenses during the reporting period. Actual results could differ from those estimates. #### **Income Taxes** · The Company is not a taxpaying entity for income tax purposes and, accordingly, no provision has been made for income taxes. All profits and losses of the Company pass through to the sole member. #### **Fair Value Measurements** Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e. "the exit price") in an orderly transaction between market participants at the measurement date. In determining fair value, the Company uses various valuation approaches, including quoted market prices and discounted cash flows. The established hierarchy for inputs used, in measuring fair value, maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from independent sources. Unobservable inputs are inputs that reflect a company's judgment concerning the assumptions that market participants would use in pricing the asset or liability developed based on the best information available under the circumstances. The fair value hierarchy is broken down into three levels based on the reliability of inputs as follows: {7}------------------------------------------------ ## **EAST WIND SECURITIES, LLC NOTES TO FINANCIAL STATEMENT DECEMBER 31, 2021** Level 1 – Valuations based on quoted prices in active markets for identical instruments that the Company is able to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. - · Level 2 Valuations based on quoted prices in active markets for instruments that are similar, or quoted prices in markets that are not active for identical or similar instruments, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. - · Level 3 Valuations based on inputs that are unobservable and significant to the overall fair value measurement, which utilize the Company's estimates and assumptions. If the volume and level of activity for an asset or liability have significantly decreased, the Company will still evaluate the fair value estimate as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. The Company did not hold any financial assets that required measurement at December 31, 2021. ## **NOTE 3 – CASH** The Company maintains its cash in bank deposit accounts which, at times, may exceed federally insured limits. The balances are insured by the Federal Deposit Insurance Corporation (FDIC) up to \$250,000. At December 31, 2021, the Company's cash balance exceeded its insured limits by \$714,880. The Company has not experienced any losses in such accounts. ## **NOTE 4 – ACCOUNTS RECEIVABLE** Trade accounts receivable are stated at the amount the Company expects to collect. An allowance for doubtful accounts is maintained for estimated losses resulting from the inability of customers to make required payments. We consider the following factors when determining the collectability of specific customer accounts: customer credit-worthiness, past transaction history with the customer, current economic industry trends, and changes in customer payment terms. If the financial condition of our customers were to deteriorate, adversely affecting their ability to make payments, additional allowances would be required. We provide for estimated uncollectible amounts through a charge to earnings and a credit to the valuation allowance. Balances that remain outstanding after we have used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable. As of December 31, 2021, the allowance for doubtful accounts balance was \$710,850. {8}------------------------------------------------ ## **EAST WIND SECURITIES, LLC NOTES TO FINANCIAL STATEMENT DECEMBER 31, 2021** ## **NOTE 5 – RELATED PARTY TRANSACTIONS** ## **Expense Sharing Agreement** The Company has an "*Expense Sharing Agreement*" ("the Agreement") with East Wind Advisors, LLC ("East Wind Advisors"), a New York limited liability company, and a company related by common ownership. Under the Agreement, the Company agreed to pay East Wind Advisors, LLC monthly for rent and related expenses and certain other operating expenses. For the year ended December 31, 2021, the Company incurred \$244,800 for rent and \$638,478 for certain other professional fees and operating expenses. The Agreement is reviewed no less than annually, and changes to allocated expenses, if any are updated accordingly. As of December 31, 2021, the Company owed East Wind Advisors \$306,818 under the Agreement, inclusive of additional allocations of year-end compensation and related expenses. ## **NOTE 6 – NET CAPITAL REQUIREMENTS** As a registered broker-dealer, the Company is subject to the Uniform Net Capital Rule of the Securities and Exchange Commission, which requires that "Net Capital", as defined, shall be at least the greater of \$5,000 or 6-2/3% of "Aggregate Indebtedness", as defined. At December 31, 2021, the Company's "Net Capital" was \$627,051 which exceeded requirements by \$600,612. The ratio of "Aggregate Indebtedness" to "Net Capital" was .63 to 1 at December 31, 2021. ## **NOTE 7 – CONTINGENCIES** The COVID-19 pandemic has developed rapidly in 2020, with a significant number of cases. Measures taken by various governments to contain the virus have affected economic activity. We have taken a number of measures to monitor and mitigate the effects of COVID-19, such as safety and health measures for our people including social distancing and working from home. At this stage, the impact on our business and results has not been significant and based on our experience to date we expect this to remain the case. We will continue to follow the various government policies and advice and, in parallel, we will do our utmost to continue our operations in the best and safest way possible without jeopardizing the health of our people. ### **NOTE 8 – SUBSEQUENT EVENTS** The Company has evaluated its subsequent events through the date that these financial statements were available to be issued. There were no subsequent events requiring disclosure. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.