# GOLD COAST SECURITIES, INC. X-17A-5/A (2021-03-29) — Broker-dealer annual report - Company: GOLD COAST SECURITIES, INC. - Form: X-17A-5/A - Filed: 2021-03-29 - Period: 2020-12-31 - Accession: 0001135057-21-000003 - CIK: 1135057 - File #: 8-53148 - Material weakness: No - Auditor: Farber Hass Hurley LLP - Auditor location: Chatsworth, CA - Contact: Tae P. Ho - Phone: 805-496-3660 - Email: form@sipt.organd - Website: sipt.organd - Signed by: Tae P. Ho (Chief Executive Officer) Original filing: https://www.sec.gov/Archives/edgar/data/1135057/000113505721000003/GCS_FS_2020_amend.pdf --- {0}------------------------------------------------ #### **GOLD COAST SECURITIES, INC.** #### **FINANCIAL STATEMENTS** **AS OF** **DECEMBER 31, 2020** {1}------------------------------------------------ **UNITEDSTATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** OMB APPROVAL OMB Number: 3235-0123 Expires: October 31, 2023 Estimated average burden hours per response 12.00 SEC **FILE NUMBER** **8-53148** # **ANNUAL AUDITED REPORT FORM X-17A-5 PART III** | | DACE | | | | | |--|------|--|--|--|--| | | | | | | | **FACING PAGE Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder** | REPORT FOR THE PERIOD BEGINNING 01/01/20 | | | AND ENDING 12/31/20 | | | | |--------------------------------------------------------------------------------------|------------------------------|--------------------------------------------------------|---------------------|--------------------------------|--|--| | | MM/DD/YY | | | MM/DD/YY | | | | | A. REGISTRANT IDENTIFICATION | | | | | | | NAME OF BROKER-DEALER: Gold Coast Securities, Inc. | | | | OFFICIAL USE ONLY | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | | FIRM I.D. NO. | | | | 275 E. Hillcrest Drive, Suite 225 | | | | | | | | | (No. and Street) | | | | | | | Thousand Oaks | | CA | | 91360 | | | | (City) | | (State) | | (Zip Code) | | | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
Tae P. Ho | | | | (805) 496-3660 | | | | | | | | (Area Code — Telephone Number) | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* | | | | | | | | Farber Hass Hurley LLP | | | | | | | | | | (Name — if individual, state last, first, middle name) | | | | | | 9301 Oakdale Ave., Ste 230, | | Chatsworth, | CA | 91311 | | | | (Address) | (City) | | (State) | (Zip Code) | | | | CHECK ONE: | | | | | | | | Certified Public Accountant
Public Accountant | | | | | | | | Accountant not resident in United States or any of its possessions. | | | | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | *\*Claims for exemption from the requirement that the annual report be covered by the opinion of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis for the exemption. See Section 240.17a-5(e)(2)* > **Potential 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.** **SEC 1410 (11-05)** {2}------------------------------------------------ #### **OATH OR AFFIRMATION** | Tae P. Ho | | , swear (or affirm) that, to the best of | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of
Gold Coast Securities, Inc. | | , as | | of December 31 | , 2020 | , are true and correct. I further swear (or affirm) that | | classified solely as that of a customer, except as follows: | | neither the company nor any partner, proprietor, principal officer or director has any proprietary interest in any account | | TOMMY SOBHANPANAH | | | | Notary Public — California
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Commission #2219543
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(n) A report describing any material inadequacies found to exist or found to have existed since the date of the previous audit. | | **For conditions of confidential treatment of certain portions of this filing, see section 240.17a-5(e)(3). | | | {3}------------------------------------------------ #### **CALIFORNIA ACKNOWLEDGMENT CIVIL CODE § 1189** A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. | State of California | | |-----------------------------------|--------------------------------------------------------------------------------------------------| | County of | | | 3
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Signer is Representing: | :2019 National Notary Association {4}------------------------------------------------ ## GOLD COAST SECURITIES, INC. FINANCIAL STATEMENT INDEX December 31, 2020 | | Page | |-----------------------------------------------------------------------------------------------------------|------| | Report of Independent Registered Public Accounting Firm | 1 | | Statement of Financial Condition | 2 | | Statement of Operations | 3 | | Statement of Changes in Liabilities Subordinated to Claims of
General Creditors | 4 | | Statement of Changes in Stockholders' Equity | 5 | | Statement of Cash Flows | 6 | | Notes to Financial Statements | 7 | | Supplementary Information | | | Schedule I - Computation of Net Capital Under SEC Rule 15c3-1 | 15 | | Schedule II - Computation for Determination of Reserve Requirements
Under SEC Rule 15c3-3 | 16 | | Schedule III - Information Relating to Possession or Control Requirements
Under SEC Rule 15c3-3 | 17 | | Schedule IV - Schedule of Segregation Requirements and Funds In | | | Segregation for Customers' Regulated Commodity Futures and Options
Accounts | 18 | | Assertions Regarding Exemption Provisions | 19 | | Report of Independent Registered Public Accounting Firm | 20 | | Independent Accountants' Agreed-Upon Procedures Report on Schedule of
Assessment and Payments (SIPC-7) | 21 | | SIPC Supplemental Report | 22 | {5}------------------------------------------------ ![](_page_5_Picture_0.jpeg) Certified Public Accountants 9301 Oakdale Avenue, Suite 230 Telephone: (818) 895-1943 Chatsworth, CA 91311 Facsimile (818) 727-7700 www ftihcpas com #### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Shareholders of Gold Coast Securities, Inc. #### **Opinion on the Financial Statements** We have audited the accompanying statement of financial condition of Gold Coast Securities, Inc. as of December 31, 2020, and the related statements of operations, changes in shareholders' equity, changes in liabilities subordinated to claims of general creditors, and cash flows for the year then ended, and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements present fairly in all material respects, the financial position of Gold Coast Securities, Inc. as of December 31, 2020, 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 Gold Coast Securities, Inc.'s management. Our responsibility is to express an opinion on Gold Coast Securities, Inc.'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 Gold Coast Securities, Inc. 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 error 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. #### **Supplemental Information** The Schedule I, Computation of Net Capital Under Rule 15c3-1, Schedule II, Computation of Determining Reserve Under Rule 15c3-3, Schedule III, Information for Possession or Control Requirements Under Rule 15c3-3, and Schedule IV, Schedule of Segregation Requirements and Funds have been subjected to audit procedures performed in conjunction with the audit of Gold Coast Securities, Inc.'s financial statements. The supplemental information is the responsibility of Gold Coast Securities, Inc.'s management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the 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 supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole. Farber Hass Hurley LLP We have served as Gold Coast Securities, Inc.'s auditor since 2001. Chatsworth, California March 29, 2021 {6}------------------------------------------------ ## GOLD COAST SECURITIES, INC. STATEMENT OF FINANCIAL CONDITION December 31, 2020 #### ASSETS | Cash and cash equivalents | 16,042 | |----------------------------------------------------------------------------------------------------------------|---------| | Deposit with clearing organization | 25,000 | | Receivable from broker-dealers and clearing organization | 79,700 | | Other receivables | 7,772 | | Office furniture and equipment, at cost, less accumulated depreciation
of \$5,264 | 7,370 | | Other assets | 27,975 | | Total assets | 163,859 | | LIABILITIES AND STOCKHOLDERS' EQUITY | | | Accounts payable and accrued expenses | 44,231 | | Deferred revenue, net | 1,281 | | Total liabilities | 45,512 | | Commitments and contingent liabilities | | | Liabilities subordinated to claims of general creditors | | | Stockholders' equity:
Common stock, no par value, Series A voting shares, 200 shares | | | authorized, 102 shares issued and outstanding
Common stock, no par value, Series B non-voting shares, 1,300 | 5,843 | | shares authorized, 284.66 shares issued and outstanding | 67,655 | | Additional paid-in capital | 17,991 | | Retained earnings | 26,858 | | Total stockholders' equity | 118,347 | | Total liabilities and stockholders' equity | 163,859 | | | | {7}------------------------------------------------ #### GOLD COAST SECURITIES, INC. STATEMENT OF OPERATIONS For the Year Ended December 31, 2020 | Revenues: | | |------------------------------------------------|-----------| | Commissions | | | Brokerage commissions | 17,169 | | Distribution fees | 166,263 | | Insurance revenue | 549,790 | | Trailing commissions and fees | 265,001 | | Investment advisory and management fees | 468,583 | | Representative monthly fees | 59,400 | | Forgiveness of PPP Loan | 36,000 | | Reimbursement income | 22,322 | | Miscellaneous income | 13,049 | | Interest and dividend income | 92 | | Total Revenue | 1,597,669 | | Expenses: | | | Commissions | 711,838 | | Investment advisory and management fee expense | 388,821 | | Employee compensation and benefits | 235,360 | | Occupancy | 94,822 | | Regulatory and insurance expense | 76,410 | | Clearing | 42,509 | | Legal and professional fees | 20,880 | | Communications and data processing | 18,822 | | Supplies and printing | 5,728 | | Website maintenance and documentation | 4,739 | | Postage and delivery | 3,547 | | Depreciation and amortization | 1,971 | | Other | 7,723 | | Total Expenses | 1,613,170 | | Loss before income tax provision | (15,501) | | Income tax provision | 800 | | Net loss | (16,301) | {8}------------------------------------------------ # GOLD COAST SECURITIES, INC. STATEMENT OF CHANGES IN LIABILITIES SUBORDINATED TO CLAIMS OF GENERAL CREDITORS For the Year Ended December 31, 2020 | Subordinated borrowings at end of year | \$
- | | |----------------------------------------------|---------|--| | Decreases: | _ | | | Increases: | _ | | | Subordinated borrowings at beginning of year | \$
_ | | {9}------------------------------------------------ # GOLD COAST SECURITIES, INC. STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY For the Year Ended December 31, 2020 | | Series A | | Series B | | Additional | | | | |-------------------|--------------|-----------------------------|--------------|---|---------------------------------------------------|------------|---------------|--| | | Common Stock | | Common Stock | | Paid-in | Retained | Stockholders' | | | | | | | | Shares Value Shares Value Capital Earnings Equity | | | | | | | | | | | | | | | Balance at | | | | | | | | | | December 31, 2019 | | 102 \$5,843 284.66 \$67,655 | | | \$17,991 | \$43,159 | \$134,648 | | | Net loss | - | - | - | - | - | (\$16,301) | (\$16,301) | | | Balance at | | | | | | | | | | December 31, 2020 | | 102 \$5,843 284.66 \$67,655 | | | \$17,991 | \$26,858 | \$118,347 | | {10}------------------------------------------------ ## GOLD COAST SECURITIES, INC. STATEMENT OF CASH FLOWS For the Year Ended December 31, 2020 | | 2020 | |-----------------------------------------------------------|----------------| | Cash flows from operating activities:
Net loss | \$
(16,301) | | Adjustments to reconcile net loss to net cash provided by | | | (used in) operating activities: | | | Depreciation and amortization | 1,971 | | PPP Loan Proceeds | (36,000) | | Changes in: | | | Receivable from broker-dealers and clearing organization | (2,276) | | Other assets | (1,232) | | Officer advances | 29,000 | | Accounts payable and accrued expenses | 4,831 | | Deferred revenue, net | (373) | | Total adjustments | (4,079) | | Net cash used in operating activities | (20,380) | | Cash flows from investment activities: | | | Purchase of furniture and equipment | (6,067) | | Net cash used in investing activities | (6,067) | | Cash flows from financing activities: | | | PPP Loan Proceeds | 36,000 | | Net cash provided by financing activities | 36,000 | | Net increase in cash and cash equivalents | 9,553 | | Cash and cash equivalents at beginning of year | 6,489 | | Cash and cash equivalents at end of year | \$
16,042 | | Supplemental cash flow disclosures: | | | Income tax payments | 800 | | Interest payments | | {11}------------------------------------------------ ## **1. Organization and Nature of Business** Gold Coast Securities, Inc. (a C-corporation) (the "Company) is a broker-dealer registered with the Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA). The Company is a Delaware corporation, headquartered in California, and began operations in January 2001. #### **2. Significant Accounting Policies** #### *Basis of Presentation* The Company is engaged in business as a securities broker-dealer, which comprises several classes of services, including both principal and agency transactions involving retailing corporate equity securities, mutual funds, corporate debt, municipal bonds, and U.S. government securities; selling life insurance and annuities; and providing investment advisory and management services. #### *Use of Estimates* The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. #### *Cash and Cash Equivalents* Cash and cash equivalents include cash on hand and money market accounts. The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. #### *Property and Equipment* Property and equipment are stated at cost. Depreciation has been provided using the straight-line method over the useful lives of the assets, which range from three to seven years. #### *Revenue Recognition* In accordance with ASU No. 2014-09, "Revenue from Contracts with Customers" ("ASC Topic 606") revenues from contracts with customers is recognized when, or as, the Company satisfies its performance obligations to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. {12}------------------------------------------------ #### **2. Significant Accounting Policies (continued)** #### *Revenue Recognition (continued)* The guidance requires an entity to follow a five step model to (a) identify the contract(s) with a customer, (b) identify the performance ' obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) the entity satisfies a performance obligation. In determining the transaction price, an entity may include variable considerations only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved. The revenue recognition guidance does not apply to revenue associated with financial instruments, interest income and expenses, leasing and insurance contracts. #### Commissions and Distribution Fees The Company buys and sells securities on behalf of its customers. When a customer enters into such a transaction, the Company charges or receives a commission. Commissions and related clearing expenses are recorded on a trade date basis. The Company believes that the performance obligation is satisfied on the trade date because that is when the underlying pricing is agreed upon, and the risk and rewards of ownership have been transferred to the customer. #### Trailing Commissions and Fees The Company incurs distribution costs and receives trailing commissions and fees for the marketing to and servicing of customers who have purchased mutual funds and insurance products. The trailing commissions and fees revenue are variable in nature and generally based on a percentage of the market value of the customers' investment holdings in trail-eligible assets as of a given date. The Company has determined that the trailing commissions and fees are constrained and are only recognized as revenue at a point in time when the trail becomes known (usually monthly or quarterly), which is determined by the contractual terms with the product provider. #### Investment Advisory Revenue The Company charges or receives a management fee in connection with management and investment advisory services performed for customers in managed accounts. The management fee is a percentage of the customer's investment holdings as of a given date (usually end of quarter or end of month), and the performance obligation related to the transfer of services is satisfied over a period of time (usually quarterly or monthly). The revenue from the investment advisory services are recorded when the performance obligation for the period of time covered by the management fee is earned. The unearned portion is recorded as deferred revenue, net of associated fees and expenses. {13}------------------------------------------------ ## **2. Significant Accounting Policies (continued)** ## *Income Taxes* Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes related primarily to differences between the basis of depreciation and realization of net operating losses for financial and income tax reporting. The amount of current and deferred taxes payable or refundable is recognized as of the date of the financial statements, utilizing currently enacted tax laws and rates. Deferred tax expenses or benefits are recognized in the financial statements for the changes in deferred tax liabilities or assets between years. ## *Fair Value of Financial Instruments* Carrying values of cash and cash equivalents, accounts receivable and accounts payable approximate fair values due to the short maturities of such instruments. ## *Concentration of Credit Risk* Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents and clearing organization accounts receivable. The Company places substantially all of its cash deposits with one high-quality financial institution. ### *Subsequent Events* The Company evaluated subsequent events through March 29, 2021, the date the financial statements were available to be issued. ### **3. Recently Issued Accounting Standards** The Financial Accounting Standards Board (the "FASB") has established the Accounting Standards Codification ("Codification" or "ASC") as the authoritative source of generally accepted accounting principles ("GAAP") recognized by the FASB. The principles embodied in the Codification are to be applied by nongovernmental entities in the preparation of financial statements in accordance with GAAP in the United States. New accounting pronouncements are incorporated into the ASC through the issuance of Accounting Standards Updates ("ASUs"). ASUs issued before March 29, 2021 and effective after December 31, 2020 are not expected to have a material effect on the Company's Statement of Financial Condition, Statement of Operations, Statement of Changes in Stockholder's Equity, or Statement of Cash Flows. #### **4. Guarantees** FASB ASC 460, Guarantees, requires the Company to disclose information about its obligations under certain guarantee arrangements. FASB ASC 460 defines guarantees {14}------------------------------------------------ ### **4. Guarantees (continued)** as contracts and indemnification agreements that contingently require a guarantor to make payments to the guaranteed party based on changes in an underlying factor (such as an interest or foreign exchange rate, security or commodity price, an index or the occurrence or nonoccurrence of a specified event) related to an asset, liability or equity security of a guaranteed party. This 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 indebtedness of others. The Company has issued no guarantees at December 31, 2020, or during the year then ended. #### **5. Cash Segregated Under Federal and Other Regulations** Cash of \$25,000 has been segregated in a special reserve bank account for the benefit of customers under Rule 15c3-3 of the SEC on agreements for proprietary accounts of introducing brokers. #### **6. Receivable From and Payable Clearing Organizations** Amounts receivable from and payable to clearing organizations were as follows for the year ending December 31, 2020: | December 31, 2020 | Receivable | Parable | |-----------------------------------------|------------|-----------| | Receivable from product sponsors and | | | | clearing organization | \$ 79,700 | \$
-- | | Fees and commissions receivable/payable | 7,772 | 44,231 | | | \$ 87,472 | \$ 44,231 | The Company has an agreement to clear substantially all of its proprietary and customer transactions through another broker-dealer (Pershing LLC) on a fully disclosed basis. Pershing LLC is responsible for handling and monitoring all securities lending activities (collateralized financings) related to securities borrowed and securities loaned transactions. #### **7. Commitments and Contingencies** The Company has an operating lease for 1,782 square feet of office space in Thousand Oaks, California. The Company's lease will terminate on November 30, 2021. Current monthly rental payments are approximately \$3,800. In addition, during the year, the Company leased 1,802 square feet of office space in Gold River, California. The Company terminated the lease on November 30, 2020 at the expiration of the lease term. {15}------------------------------------------------ #### **7. Commitments and Contingencies (continued)** Future minimum lease payments under the operating lease are as follows: Year ending December 31,: | 2021 | \$ 41,592 | | |------|--------------|--| | | \$
41,592 | | Lease payments for the year ended December 31, 2020 was \$83,497, which is included in occupancy expense. In February 2016, the FASB issued ASU 2016-02, "Leases," that provides a new accounting guidance related to leases effective January 2019 for terms longer than 12 months. ASU 2016-02 establishes a right-of-use model that requires a lessee to record a right-of-use (ROU) asset and a lease liability on the balance sheet. Since the Company has not entered into any lease obligation greater than 12 month, the Company was not required to record a ROU asset and lease liability. ### **8. Property and Equipment** Property and equipment consists of the following as of December 31, 2020: | Computer, Phone & Equipment
Less: Accumulated Depreciation | \$
12,634
(5,264) | | | |---------------------------------------------------------------|-------------------------|--|--| | Total Property and Equipment | 7,370 | | | Depreciation expense for the year ended December 31, 2020 was \$1,971. #### **9. Retirement Plan** In August 2003, the Company established a 401(k) Profit Sharing Plan administered by Retirement Systems of California, Inc. The 401(k) Profit Sharing plan, as adopted, allows for employee contributions through salary reductions ranging from 0% to 15% of employee salary, capped at \$19,500 in 2020 (plus catch-up provisions). However, the Company terminated the 401(k) Profit Sharing plan in April 2020. All employees who were at least 21 years of age and have been employed by the Company for at least six months were eligible to participate. Plan contributions are self-directed. No employer matching contributions were made for the year ending December 31, 2020. {16}------------------------------------------------ ## **10. Major Revenue Concentration** For the year ended December 31, 2020, variable annuity, mutual fund, and management fee revenue were approximately 33%, 27% and 29%, of total revenue, respectively. The Company expects that most of this revenue will be recurring. In addition, approximately 15% of total revenues were generated from one insurance company. Approximately another 12% of total revenues were generated from one mutual fund company. With respect to clearing organization receivables, such receivables normally arise from fees generated through clearing and execution services performed for the Company's numerous customers. The Company has contractual arrangements with highly-rated broker-dealers, mutual fund companies, and insurance companies as the source of these revenues. As of December 31, 2020, three product providers had balances of approximately 17% each of total receivables from Broker-Dealers and Clearing Organization. In addition, the Company's clearing firm had a balance of approximately 2% of total receivables from Broker-Dealers and Clearing Organization. The Company maintains reserves for potential credit losses, as applicable and such losses, in the aggregate, have not exceeded management's expectations. The Company had no bad debt expense for 2020. ## **11. Income Tax** The primary timing differences between book and tax expense reporting are depreciation expense and the utilization of the Net Operating Loss (NOL) carryforward. At December 31, 2020, the Company had a state and federal NOL carryforward of approximately \$144,000 and \$53,000, respectively, which will expire by 2035. As of December 31, 2020 there are no assurances the Company will be able to utilize such losses. As such, the Company has recognized a full allowance for any deferred taxes, and has recognized the minimum state franchise tax of \$800, for the year 2020. The Company recognizes and measures its unrecognized tax benefits in accordance with Financial Accounting Standards Board (FASB) Accountings Standards Codification (ASC) 740, *Income Taxes.* Under that guidance the Company assesses the likelihood, based on their technical merit, that tax positions will be sustained upon examination based on the facts, circumstances and information available at the end of each period. The measurement of unrecognized tax benefits is adjusted when new information is available, or when an event occurs that requires a change. The Company does not have any tax positions at the end of the year for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase or decrease within twelve months of the reporting date. {17}------------------------------------------------ ## **11. Income Tax (continued)** The Company is generally not subject to federal, state, or local tax examinations by taxing authorities for years before 2017. As of December 31, 2020, no taxing authority has proposed any adjustments to the Company's tax position. ## **12. Capital Requirements** The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (SEC rule 15c3-1), which requires the maintenance of minimum net capital (i.e., \$50,000) and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1 (and the rule of the "applicable" exchange also provides that equity capital may not be withdrawn or cash dividends paid if the resulting net capital ratio would exceed 10 to 1). At December 31, 2020, the Company's net capital measured \$62,129 and its net capital ratio was 0.73 to 1. ## **13. Related Party Transactions** During 2020, an officer of the Company repaid an advance of \$29,000. ## **14. COVID-19** The worldwide outbreak of COVID-19 may lead to an adverse impact on the financial markets and the economy. In the event that such an adverse impact was to occur for a substantial period of time, the operations and financial performance of the Company may be adversely affected. However, the severity of such an event, should it occur, is uncertain and cannot be predicted. #### **15. PPP Loan** On May 4, 2020, the Company received a loan in the amount of \$36,000 from the Payroll Protection Program (PPP Loan) under the Federal Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which was enacted on March 27, 2020. The program is administered by the U.S. Small Business Administration. Under the terms of the program, loans may be forgiven if they are used for qualifying expenses as described in the CARES Act. The Company complied with the terms of the program and the PPP Loan was forgiven during the year. The Company recognized the full loan amount as income during the year. {18}------------------------------------------------ #### GOLD COAST SECURITIES, INC. Supplementary Information Pursuant to Rule 17a-5 of the Securities Exchange Act of 1934 As of December 31, 2020 {19}------------------------------------------------ #### Schedule I ## GOLD COAST SECURITIES, INC. Computation of Net Capital Under Rule 15c3-1 of the Securities and Exchange Commission As of December 31, 2020 | Net capital
Total stockholders' equity
Deduct stockholders' equity not allowable for capital | \$
118,347 | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------| | Total stockholders' equity qualified for net capital
Add:
Subordinated borrowings allowable in computation of net capital
Other (deductions) or allowable credits - deferred income taxes payable | 118,347 | | Total capital and allowable subordinated borrowings
Deductions and/or charges:
Nonallowable assets:
Office furniture and equipment
7,370
Other assets - registered representative receivables, net
7,772
Receivable from broker-dealers, in excess of related payable
13,101
Other assets - prepaid expenses and deposits
27,975 | 118,347
56,218 | | Net capital before haircuts on securities positions
Haircuts on securities positions | 62,129 | | Net capital per audited financial statements | \$
62,129 | | Aggregate indebtedness
Items included in statement of financial condition:
Accounts payable, accrued expenses, and deferred revenue, net,
Items not included in statement of financial condition | \$
45,512 | | Total aggregate indebtedness (Al) | \$
45,512 | | Computation of basic net capital requirement
Minimum net capital required (6-2/3% of Al) | 3,034
\$ | | Minimum dollar net capital requirement | \$
50,000 | | Minimum net capital required (greater of above): | \$
50,000 | | Excess net capital over minimum net capital required | \$
12,129 | | Excess net capital at 1,500 percent (net capital - 6.67% of Al) | \$
59,095 | | Excess net capital at 1,000 percent (net capital - 10% of Al) | \$
57,578 | | Ratio: Aggregate indebtedness to net capital | 0.73 to 1 | There are no material differences between the preceeding computation and the Company's corresponding unaudited part II of Form X-17A-5 as of December 31, 2020 {20}------------------------------------------------ #### **Schedule II** ## GOLD COAST SECURITIES, INC. Computation for Determination of Reserve Requirements Under Rule 15c3-3 of the Securities and Exchange Commission As of December 31, 2020 **Gold Coast Securities, Inc. is exempt from the reserve requirement, as it operates pursuant to SEC Rule 15c3-3(k)(2)(ii) (the Customer Protection Rule), clearing securities transactions on a fully disclosed basis through its clearing firm.** **With respect to securities transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to Gold Coast Securities, Inc., the Company does not claim an exemption from Rule 15c3-3 in reliance upon footnote 74 of SEC Release No. 34-70073 dated July 30, 2013, and as discussed in Question 8 of the related FAQ released by SEC staff on April 4, 2014.** **Gold Coast Securities, Inc. does not hold customer funds or safekeep customer securities.** {21}------------------------------------------------ #### **Schedule III** ## GOLD COAST SECURITIES, INC. Information Relating to Possession or Control Requirements Under Rule 15c3-3 of the Securities and Exchange Commission As of December 31, 2020 **Gold Coast Securities, Inc. is exempt from the reserve requirement, as it operates pursuant to SEC Rule 15c3-3(k)(2)(ii) (the Customer Protection Rule), clearing securities transactions on a fully disclosed basis through its clearing firm.** **With respect to securities transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to Gold Coast Securities, Inc., the Company does not claim an exemption from Rule 15c3-3 in reliance upon footnote 74 of SEC Release No. 34-70073 dated July 30, 2013, and as discussed in Question 8 of the related FAQ released by SEC staff on April 4, 2014.** **Gold Coast Securities, Inc. does not hold customer funds or safekeep customer securities.** {22}------------------------------------------------ #### **Schedule IV** GOLD COAST SECURITIES, INC. Schedule of Segregation Requirements and Funds In Segregation for Customers' Regulated Commodity Futures and Options Accounts As of December 31, 2020 #### **Not applicable** {23}------------------------------------------------ ![](_page_23_Picture_0.jpeg) **Member FINRA & SIP('** #### **Exemption Report December 31, 2020** Gold Coast Securities, Inc. (the "Company") is a registered broker-dealer subject to Rule 17a-5 promulgated by the Securities and Exchange Commission (17 C.F.R. §240.17a-5, "Reports to be made by certain brokers and dealers"). This Exemption Report was prepared as required by 17 C.F.R. § 240.17a-5(d)(1). To the best of its knowledge and belief, the Company states the following: (1) The Company claimed an exemption from 17 C.F.R. § 240.15c3-3 under the provisions of 17 C.F.R. §240.15c3-3 (k)(2)(ii). The Company met the identified exemption provisions in 17 C.F.R. §240.15c3-3 (k)(2)(ii) throughout the most recent fiscal year without exception. (2) The Company is also filing this Exemption Report because the Company's other business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 are limited to effecting securities transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company, and the Company (1) did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customer, (other than money or other consideration received and promptly transmitted in compliance with paragraph (a) or (b)(2) of Rule 15c2-4 and/or funds received and promptly transmitted for effecting transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company); (2) did not carry accounts of or for customers; and (3) did not carry PAB accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year without exception. I, Tae P. Ho, swear (or affirm) that, to my best knowledge and belief, this Exemption Report is true and correct. Tae P. Ho Chief Executive Officer Gold Coast Securities, Inc. Date 275 E. HIlIcrest Drive, Suite 225, Thousand Oaks, CA 91360 Tel. 805-496-3660 888-474-4610 Fax 805-496-3880 www.gcsec.com {24}------------------------------------------------ **MI Farber Hass Hurley** LLP *Certified Public Accountants* 9301 Oakdale Avenue, Suite 230 Telephone: (818) 895-1943 Chatsworth, CA 91311 Facsimile: (818) 727-7700 www:fhhcpas. COM #### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Shareholders of Gold Coast Securities, Inc. We have reviewed management's statements, included in the accompanying Exemption Report, in which (1) Gold Coast Securities, Inc. (the -Company") identified the following provisions of 17 C.F.R. §15c3-3(k) under which Gold Coast Securities, Inc. claimed an exemption from 17 C.F.R. §240.15c3-3: 142)(ii) (the "exemption provision") and (2) Gold Coast Securities, Inc. stated that Gold Coast Securities, Inc. met the identified exemption provision throughout the most recent fiscal year without exception. The Company is also filing this Exemption Report because the Company's other business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 are limited to effecting securities transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company, and the Company (1) did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, other than funds received and promptly transmitted in compliance with paragraph (a) or (b)(2) of Rule 15c2-4 and/or funds received and promptly transmitted for effecting transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company; (2) did not carry accounts of or for customers; (3) and did not carry PAB accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year without exception. Gold Coast Securities, 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 Gold Coast Securities, Inc. 's compliance with the exemption provision. 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)(ii) of Rule 15c3-3 under the Securities Exchange Act of 1934 and the Company's other business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5, and related SEC Staff Frequently Asked Questions. Farber Hass Hurley LLP Chatsworth, California March 29, 2021 {25}------------------------------------------------ ![](_page_25_Picture_0.jpeg) #### Certified Public Accountants 9301 Oakdale Avenue, Suite 230 Telephone: (818) 895-1943 Chatsworth, CA 91311 Facsimile: (818) 727-7700 www.fhhcpas.com #### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON APPLYING AGREED-UPON PROCEDURES To the Board of Directors and Shareholders of Gold Coast Securities, Inc. In accordance with Rule 17a-5(e)(4) under the Securities Exchange Act of 1934 and with the SIPC Series 600 Rules, we have performed the procedures enumerated below, which were agreed to by Gold Coast Securities, Inc. and the Securities Investor Protection Corporation (SIPC) with respect to the accompanying General Assessment Reconciliation (Form SIPC-7) of Gold Coast Securities, Inc. for the year ended December 31, 2020, solely to assist you and SIPC in evaluating Gold Coast Securities, Inc.'s compliance with the applicable instructions of the General Assessment Reconciliation (Form SIPC-7). Gold Coast Securities, Inc.'s management is responsible for Gold Coast Securities, Inc.'s compliance with those requirements. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the Public Company Accounting Oversight Board (United States) and in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures we performed and our findings are as follows: - 1) Compared the listed assessment payments in Form SIPC-7 with respective cash disbursement records entries, noting no differences; - 2) Compared the Total Revenue amount reported on the Annual Audited Report Form X-17A-5 Part III for the year ended December 31, 2020 with the Total Revenue amount reported in Form SIPC-7 for the year ended December 31, 2020, noting no differences; - 3) Compared any adjustments reported in Form SIPC-7 with supporting schedules and working papers, noting no differences; - 4) Recalculated the arithmetical accuracy of the calculations reflected in Form SIPC-7 and in the related schedules and working papers supporting the adjustments, noting no differences; and - 5) Compared the amount of any overpayment applied to the current assessment with the Form SIPC-7 on which it was originally computed, noting no differences. We were not engaged to, and did not conduct an examination, the objective of which would be the expression of an opinion on compliance with the applicable instructions of the Form SIPC-7. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report is intended solely for the information and use of the specified parties listed above and is not intended to be and should not be used by anyone other than these specified parties. Farber Hass Hurley LLP Chatsworth, California March 29, 2021 {26}------------------------------------------------ | (36-REV | 12/18) | |---------|--------| SECURITIES INVESTOR PROTECTION CORPORATION P(:). Box 92185 Wasr'iington, DC. 20090-2185 202-371-8300 General Assessment Reconciliation 2020 For the fiscal year ended (Read carefully the instructions in your Working Copy before completing this Form: #### **TO BE** FILED. BY ALL SIPC MEMBERS WITH FISCAL YEAR ENDINGS | | I, Name of Member, address. Designated Examining Authority, 1934 Act registration no. and month in which fiscal year ends
purposes of the audit requirement of SEC Rule 17a- 5: | | to. | | |-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----| | | r
--53
148 FINRA DEC
GOLD COAST SECURITIES, INC.
275 E. HILLCREST DR., STE 225
THOUSAND OAKS, CA 91360-8241 | -I | Note: if any of the information shown on the
mailing label requires correction, please.e-mait
any corrections to form@sipt.organd so
indicate on the form Ned.
Name and telephone number of person to
contact respec1ing this form:
TAE R HO, (805) 496-3660 | 4t= | | | 2. A. General Assessment (item 2e from page 2) | | | | | | B. Less payment made with SIPC-6 filed (exclude interest)
07/30/2030 | | 326 | | | | Date Paid | | | | | | C. Less prior overpayment applied | | | | | | 0. Assessment balance:. due of (overpayment) | | 396 | | | | E. interest computed on late payment (see instruction E.:,) for | _days at 20% | per annum | | | | F, Total assessment balance and interest due tor overpayment carried forward.) | | 396 | | | | G. PAYMENT: Ai. the box
Check mailed to P.O. Box 1:1 Funds Wired
Total (must be same as F above) | ACH
396 | | | | | H. Overpayment carned forward | \$( | | | | | 3. Subsdiaries (S) and predecessors
The SIPC member submitting this form and the
person by whom it is executed represent thereby
that all information contained herein is true, correct | included in this .form (give name and 1934 Ac registration number:, : | GOLD CC) T;SECURITIES, INC.
,""," | | | | and complete. | , • | | | | | Dated the 25
day of February
20 21 | PRESIDENT | A hcLe S:.t.otLatUtei: | | | | This form a
for a period of not less than 6 years, the latest 2 years In an easily accessible place, | | 0. we,
nd the assessment payment is due 60 days after the end of the fiscal year. Retain the Working Copy of this form | | | Lalia | cx: Dates. | | | | | | Postmarked
Received | Reviewed | | | | | Caicpulations. | IDi3curneritation | Forward Copy | | | | Exceptions: | | | | | | Z,;.; Disposition of exceptions: | | | | {27}------------------------------------------------ ## DETERMINATION OF "SIPC NET OPERATING REVENUES" AND GENERAL ASSESSMENT Amounts for the fiscal period beginning . 01/01i20:20 and ending 1.2/3112020 | !ten) No.
2a, Total revenue (FOCUS Line 12/Part 11A Line 9, Code 4030( | | Eliminate cents
\$ 1,597,669 | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|---------------------------------| | 2b, Additions:
(1) Total revenues from the securities business of subsidiaries (except foreign subsidiaries) and
predecessors not included above, | | | | (2) Net loSs from principal transactions in securities in trading accounts, | | | | (3) Net lost from :principal transactions in commodities in trading •accounts. | | | | {4) Interest and dividend expense deducted in determining item 2a, | | | | 151 Net loss ftom manalOmellt. Of Or participation in. the underwriting Or distribution of securities, | | | | (6) Expenses 'other than advertising, printing-, registration fees and legal fees deducted in determining net:
profit front management of or participation in :un.derwriting or distribution of securities, | | | | (7) Net toss from securities in investment accounts | | | | Total additions | | | | 2s. Deductions:
Revenues from the distribution of Shares Of a tagi:Siered open end investment company! or unit
investment trust, from the sale of variable annuities, from the business of insurance, from inv.estment
a.r:ivisory.serVices rendered to registered investment companies or insurance company separate
.accounts, and from tr:anSactiOnoin.Secutity futures produOtS, | | 984,127 | | (2) Revenues from commodity transactione, | | | | (3) Commissions, floor brokerage an0 clearance paid to other SIPC. ffientbef\$ in connection with
aecurtes ttantactions, | | 42,502 | | 4) Reimbursements for postage in connection with proxy solicitation.
(
: | | | | (Si Not gain from securi:bes th investment accounts. | | | | (6) .100% of Commissions and: markups earned from transactions in (i) certificatet.of depoSit and
:(ii) Treasury bills, bankers. acceptances or commercial paper that mature nine months or leSS
from issuance date:, | | | | .(7) Qirect expenses of printing advertising and legal tees incurred in connection with other revenue
related* to the securities. business (revenue defined by Section 16(9)(0 of the Act), | | | | (8) Other revenue not related either directly or indirectly to the securities business.
(See instructiOn Cr
FEES FROM REPRESENTATIVES | | 90,015 | | (Deductions in excess ot \$100"000 require documentation) | | | | (9) (i) Tatal interest and dividend expense (FOCUS Line 22IPART 11A Line 13,
Code 4075 plus line 2b(41) above) but not in excess
of total interes1 and. dividend Income, | | | | (ii) 40% ot margin interest earned on customers securities
accounts (40% of Foo.us line S. Code 3960). | | | | Enter the greater of line (l) or (ii) | | | | Total deductions | | 1,116,644 | | 20. S1PC Net Operating Revenues | | 481,025 | | 2e, General Assessment @ .0015 | | 722
4.; | | | | to page 1, iine 2.A,) | Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.