# EASTGATE SECURITIES, LLC X-17A-5 (2024-04-01) — Broker-dealer annual report - Company: EASTGATE SECURITIES, LLC - Form: X-17A-5 - Filed: 2024-04-01 - Period: 2023-12-31 - Accession: 0001428006-24-000001 - CIK: 1428006 - File #: 8-67837 - Type: Broker-dealer - Material weakness: No - Auditor: WWC, P.C. Certified Public Accountant - Auditor location: San Mateo, CA - Contact: Edward Yao - Phone: 3479158999 - Email: eyao@eastgatesecurities.com - Website: eastgatesecurities.com - Signed by: Edward Yao (CFO/FINOP/CCO) Original filing: https://www.sec.gov/Archives/edgar/data/1428006/000142800624000001/EGSAnnualReport2023public.pdf --- {0}------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 OMB APPROVAL OMB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12 SEC FILE NUMBER Basil 200 ### ANNUAL REPORTS FORM X-17A-5 PART III | Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | FACING PAGE | | | | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|---------------|-----------------------------|--------------------------------------------| | FILING FOR THE PERIOD BEGINNING 01/01/2023 AND ENDING 12/31/2023 | | | | | | | MM/DD/YY | | | MM/DD/YY | | | A. REGISTRANT IDENTIFICATION | | | | | NAME OF FIRM: Eastgate Securities, LLC | | | | | | TYPE OF REGISTRANT (check all applicable boxes):
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.) | | | | | | 866 United Nations Plaza, Suite 406 | | | | | | | (No. and Street) | | | | | New York | NY | | | 10017 | | (City) | | (State) = A = | nder 17 CFR 240.15c. | (Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING to security based swap customers under 17 CFR | | | | | | Edward Yao | 347-9158999 | | eyao@eastgatesecurities.com | | | (Name) or 27 % 1 | (Area Code - Telephone Number) (Email Address) | | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* 240.100 7, as @goodste | | | | | | WWC, P.C. Certified Public Accountants | | | | | | | (Name - if individual, state last, first, and middle name) | | | | | 2010 Pioneer Court San Mateo | | | | 94403 | | (Address) | A hand (City) | | (State) (State) | (Zip Code) | | 03/14/2006 | | 1171 | | | | (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. n 播 > 台 网 | ਿ 1 8 > 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. {1}------------------------------------------------ #### OATH OR AFFIRMATION | | l. Edward Yao
, swear (or affirm) that, to the best of my knowledge and belief, the | | | | | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--| | | financial report pertaining to the firm of Eastgate Securities, LLC
as of | | | | | | 12/31 | 2023 , 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.
BRIAN LEAHY | | | | | | | NUTARY PUBLIC, STATE OF NEW YORK
NO. 01LE6445546
Signature: | | | | | | | QUALIFIED IN NASSAU COUNTY | | | | | | | MY GOMMISSION EXPIRES December 27th, 20
Title: | | | | | | | CFO/FINOP/COO | | | | | | | | | | | | | Notary Public | | | | | | | | | | | | | | | This filing ** contains (check all applicable boxes): | | | | | | (a) Statement of financial condition. | | | | | | | = (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. 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 | | | | | | | [ (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. [Do not use ] P. 0 = = = | | | | | | | [ | | | | | | | _ (i) Computation of tangible net worth under 17 CFR 240.18a-2. | | | | | | | [] Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. | | | | | | | (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or | | | | | | | Exhibit A to 17 CFR 240.18a-4, as applicable. | | | | | | | [1) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. | | | | | | | [ (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3.
[n] Information relating to possession or control requirements for security-based swap customers under 17 CFR | | | | | | | 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable. A | | | | | | | □ (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net | | | | | | | worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-2, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 | | | | | | | CFR 240.15c3-3 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. | | | | | | | (q) Oath or affirmation in accordance with 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable. | | | | | | | [r] Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. | | | | | | | (s) Exemption report in accordance with 17 CFR 240.17a-5 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 statements under 17 | | | | | | | CFR 240.17a-5, 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-5 or 17 CFR 240.18a-7, as applicable.
(w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 | | | | | | | CFR 240.18a-7, as applicable. | | | | | | | x Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.17a-12, | | | | | | | as applicable. | | | | | | | (y) Report describing any material inadequacies 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). | | | | | | O (z) Other: | | | | | | | | | | | | | | | ** To request confidential treatment of certain portions of this filing, see 17 CFR 240.18a-7d 2). I | | | | | applicable. {2}------------------------------------------------ ![](_page_2_Picture_0.jpeg) #### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Manager and Member of Eastgate Securities LLC #### **Opinion on the Financial Statements** We have audited the accompanying statement of financial condition of Eastgate Securities LLC as of December 31, 2023, and the related notes and supplemental schedules (collectively referred to as the "financial statement"). In our opinion, the financial statements present fairly, in all material respects, the financial position of Eastgate Securities LLC as of December 31, 2023, in conformity with accounting principles generally accepted in the United States of America. #### **Basis for Opinion** These financial statements are the responsibility of Eastgate Securities LLC's management. Our responsibility is to express an opinion on Eastgate Securities 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 Eastgate 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 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. WWC, P.C. Certified Public Accountants PCAOB ID No. 1171 We have served as Eastgate Securities LLC's auditor since 2021. San Mateo, CA March 29, 2024 {3}------------------------------------------------ ![](_page_3_Picture_0.jpeg) # **Eastgate Securities, LLC Statement of Financial Condition** **As of December 31, 2023** | ASSETS | | |------------------------------------|-----------| | Cash | \$ 17,579 | | Prepaid Expenses | 7,395 | | Equity Investment – Non-marketable | 30,000 | | TOTAL ASSETS | \$24,974 | | LIABILITIES AND EQUITY | | | Liabilities | \$ 0 | | Total Liabilities | \$ 0 | | Equity | | | Member's Equity | \$54,974 | | TOTAL LIABILITIES AND EQUITY | \$54,974 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) ## **Eastgate Securities LLC** ### **Notes to the Financial Statements** ### **For the year ended December 31, 2023** 1. Organization and Nature of the Business Eastgate Securities, LLC (the "Company") was incorporated in the State of Delaware in July 2006. The Company is a registered broker-dealer with the Securities and Exchange Commission ("SEC") and a member of the Financial Industry Regulatory Authority ("FINRA") and the Securities Investor Protection Corporation ("SIPC"). For the year ended December 31, 2023, the Company conducted the following business activities according to the membership agreement with FINRA: - a) Private placement of securities. - b) Provide merger and acquisitions services. - c) Best Efforts Underwriter but did not act in a Firm Commitment Underwriting in any capacity. - 2. Summary of Significant Accounting Policies #### a) Basis of Accounting The financial statements are prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. #### b) Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Cash and cash equivalents consist of funds maintained in checking and money market accounts held at financial institutions. The Company's cash and cash equivalents are held principally at one financial institution and at times may exceed federally insured limits. The Company has placed these funds in high-quality financial institutions in order to mitigate the risk of loss from exceeding insured limits. #### c) Revenue Recognition Revenues include fees arising from client offerings in which the Company acts as a placement agent. Revenue earned when acted as placement agent are earned when the performance obligation is satisfied which is evidenced by the funds being delivered to the Company's clients from investors. Revenues also include fees earned from providing financial consulting services. Consulting service income is considered earned and performance obligations are met when the Company has completed provided advice, conducted research, and liaise with other certain service providers these services maybe recognized over time are the completion of certain benchmarks. Fees received are not typically {5}------------------------------------------------ ![](_page_5_Picture_0.jpeg) refundable. The Company typically receives payment after it has started rendering services; however, it is typically much prior to completion of the entire engagement. #### d) Income Taxes The LLC is treated as a disregarded entity and has no federal or state tax liabilities. Any liability on profits is reported on the tax return of the parent entity and passed along to the individual members. The tax years since inception remain open to examination by the major taxing jurisdictions to which the LLC is subject. Accordingly, no provision for income taxes is provided in the financial statements. The Company is required to file income tax returns in both state and city tax jurisdictions. The Company's tax returns are subject to examination by taxing authorities in the jurisdictions in which it operates in accordance with the normal statutes of limitations in the applicable jurisdiction. The statute for limitations for state purposes is generally three years, but may exceed this limitation depending upon the jurisdiction involved. Returns that were filed within the applicable statute remain subject to examination. As of December 31, 2023, state and city taxing authorities have not proposed any adjustment to the Company's tax position. #### e) 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 the disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. #### 3. Commitments and Contingencies The Company had no commitments, no contingent liabilities and had not been named as a defendant in any lawsuit at December 31, 2023 or during the year then ended. #### Leases The Company accounts for its leases in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Update 2016-02 Leases. As of December 31, 2023, the company does not have any lease obligations. #### Related Party Transactions The Company has had an expense-sharing agreement with its Parent for the year ended December 2023, during which the Company's Parent pay and record some of its operating expenses directly according to the expense sharing agreement. For the year ended December 31, 2023, the Parent did not allocate any expenses to the Company. #### Guarantees FASB ASC 460, Guarantees, requires the Company to disclose information about its obligations under certain guarantee arrangements. FASB ASC 460 defines guarantees as contracts and indemnification agreements that contingently require a guarantor to make payments to the guaranteed party based on changes in an underlying factor (such as an interest or foreign exchange rate, security or commodity {6}------------------------------------------------ ![](_page_6_Picture_0.jpeg) 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, 2023 or during the year then ended. #### 4.Net Capital Requirement The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (15c3-1), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 1500%. As of December 31, 2023 the Company had net capital of \$17,579 which was \$12,579 over its required net capital of \$5,000. The Company's aggregate indebtedness to net capital ratio was 0%. #### 5. Going Concern The Company is currently not operating on a going concern basis due to its \$22,523 net profit for the year ended December 31, 2023. Management has plans to increase capital and to grow net profitability. The Parent asserts to provide financial support, as needed, to the Company for the foreseeable future, which would most likely consist of additional capital contributions. #### 6.Subsequent Events The Company has evaluated events subsequent to the statement of financial condition date for items requiring recording or disclosure in the financial statements. The evaluation was performed through March 29, 2024, the date the financial statements were available to be issued. Based upon this review, the Company has determined that there were no events which took place that would have a material impact on its financial statements. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.