# EC SECURITIES, LLC X-17A-5 (2021-03-31) — Broker-dealer annual report - Company: EC SECURITIES, LLC - Form: X-17A-5 - Filed: 2021-03-31 - Period: 2020-12-31 - Accession: 0001699246-21-000003 - CIK: 1699246 - File #: 8-69913 - Material weakness: No - Auditor: Marcum, LLP - Auditor location: Melville, NY - Contact: Damien G Scott - Phone: 6466443229 - Signed by: Scott Keto (Chief Executive Officer) Original filing: https://www.sec.gov/Archives/edgar/data/1699246/000169924621000003/ecs_up.pdf --- {0}------------------------------------------------ UNITEDSTATES SECURITIES AND EXCIIANGECOMMISSION Washington, D.C. 205~9 # **ANNUAL AUDITED REPORT FORM X-17A-5 PART Ill** **FACING PAGE** | | 0MB APPROVAL | |-------------|-----------------------------| | 0MB Number: | 3235--0123 | | Expires: | October 31, 2023 | | | Estimated average burden | | | hours per response
12.00 | | SEC FILE NUMBER | |-----------------| | 8-69913 | **Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule l** 7a-5 **Thereunder** | REPORT FOR THE PERIOD BEGINNING 01/01/20 | AND ENDING 12/31/20
----------- | | |------------------------------------------|------------------------------------|--| | M~1/DD/YY | | | | A. REGISTRANT IDENTIFICATION | | | | NAME OF BROKER-DEALER: EC Securities, LLC | | | | |-------------------------------------------|--|--|--| |-------------------------------------------|--|--|--| ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | 850 MONTGOMERY | STREET, SUITE 350 | |----------------|-------------------| |----------------|-------------------| (No. and Street) OFFICIAL USE ONLY FIRM 1.0. NO. 94133 | SAN FRANCISCO | CA | | 94133 | | |-----------------------------------|--------------------------------------------------------------------------|----------|---------------|--| | (City l | (State) | | (Zip Codcl | | | Bnan Megen1ty | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT | | (nO) 263-6003 | | | | | | | | | | B. ACCOUNT ANT IDENTIFICATION | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* | | | | | Marcum, LLP | | | | | | | (Name - 1/ 1nPublic Accountant | | | | | | Public Accountant | | | | | | | Accountant not resident in United States or any of its possessions. | | | | | | | USE ONLY | | | ## •c /ai,ns for exen1ption fro111 the reqi1iren1en1 tl1at 1J1e t1111111al reJJVere,I hJ· tl1e <)f>i11i<>t1 ,>j-,111 i11clept111,ler1t 1>11hl *i,·* ,1cccJ1111t,111t m11st he st1pported b;-· a state,nenl rJjjacts a11d c:irc11n1st(1nces relied <>11 as tl1e busis\_/<)r tl1e e.,·en11>ti<>11. ,c;ee S'ecti<>n 2-l(). / -ci-5(e)( 2) ![](_page_0_Picture_19.jpeg) ## **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 0MB control number.** {1}------------------------------------------------ ## **OATl-1 ()R AFFJlll\1A'flON** | f. Scott Keto
---------------------------- | | . S\vear ( or affir,n) that. to the best of | |-----------------------------------------------------------------|---------|-------------------------------------------------------------------------------------------------------------------------------------| | EC Securities. LLC | | 111) l--110\, ledge and belief the acco111pan)·ing financial stateme11t and supporting schedules pertaining to tt1e firm of | | ------------------------------------------
of December 31 | , 20 20 | , as
. are true ar1d correct.
I further S\\'Car (or affirr11) that | | classified solely' as that of a custorner, except as follo\\·s: | | neither the co111pany' nor an)' partner. proprietor. principal officer or director t,as any proprietary· interest in an)· accoL1r1t | ![](_page_1_Picture_3.jpeg) | | - | |---------------------------------|-------------------------| | See Attached Notary | | | Ju rat C rtificate
-:-, j_ 1 | Chief Executive Officer | | C-S/3//~o;J / ""(fo:.2 | Title | | | | - - ·r11is rcpc>rt \*\* contai11s (cl1eck all applicable boxes): - **[2]** (a) 1::-aci11g J>agc. \/ - **[2]** (b) Staterne11t of Fi11ancial Condition. - **0** (c) Statcn1ent of lr1cor11c (Loss) or. if there is otl1er co111prel1ensive incon,e in the pcriod(s) presented, a Statc111cnt of C.'t>1r11Jret1e11sive l11co111e (as defined in §210.1-02 of Regulation S-X). - (d) Statcr11c,11 of Cl1anges i11 Fi11ancial Condition. - ( c) State111cnt of Cl1,1nges in Stockl1olders, Eqlrity or Partners· or Sole Proprietors· Capital. - ( () S1atc111c11t of Cl1ar1ges in Liabilities Subordinated to Clai,11s of Creditors. - ·✓ (g) C 0111putat io11 of Net Capital. - (11) ('0111f)Utati()tl for Dctcr111ination of Reserve Require111cnts Pursuant to Rule I 5c3-3. - V (i) lr1for111atio11 Relating t(l the Possessio11 or Cor1trol Rec1t1ire111ents Under l{ule 15c3-3. - D (i) A l{ccIa11cl the Co111putatif co11Slll idat io11. - ✓ (I) An Oatt1 or Affir111atior1. - (111) A copy of tt1c SI f>C Supplemental Report. - D (11) A report describi11g any 111aterial ir1adequacies fot1nd to exist or found to have existed since the date of the previous audit. \* \* Ft,1· *C'lJn,lit in\_/idenl *i(1/* 1rea1111e111 of c·e1·1ain *po,·t io11s of· this fili11g.* see sec/ ion 2 40. 17 a-5( e)( 3). {2}------------------------------------------------ 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 validit·' of that document. State of California - County of San Francisco · Subscribed and sworn to (or affirmed) be. re me on this )/4 / day of *yv/ty:,* I" , 20 *3:.1\_,* by OJ~"-~( *c JI !c\_c, Iv* -----------------------' proved to me on the basis of satisfactory evidence to be the person(s) who appeared before me. ![](_page_2_Picture_4.jpeg) {3}------------------------------------------------ EC SECURITIES LLC Financial Statements For the Year Ended December 31, 2020 With Report of Independent Registered Public Accounting Firm {4}------------------------------------------------ ### EC SECURITIES LLC FINANCIAL STATEMENTS AND SUPPLEMENTARY SCHEDULES FOR THE YEAR ENDED DECEMBER 31, 2020 ### CONTENTS Report of Independent Registered Public Accounting Firm FINANCIAL STATEMENTS: Statement of Financial Condition Statement of Operations Statement of Changes in Member's Equity Statement of Cash Flows Notes to Financial Statements SUPPLEMENTARY SCHEDULES: Schedule I - Computation of net capital pursuant to SEC Rule 15c3-1 Schedule II - Computation for Determination of Reserve Requirements Pursuant to SEC Rule 15c3-3 Schedule Ill - Information Relating to Possession or Control Requirements Under SEC Rule 15c3-3 Report of Independent Registered Public Accounting Firm on Assertions Regarding Identified Exemption Assertions Regarding Identified Exemption {5}------------------------------------------------ ![](_page_5_Picture_0.jpeg) ### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Board of Directors and Member of EC Securities LLC #### **Opinion on the Financial Statements** We have audited the accompanying statement of financial condition of EC Securities LLC (the "Company") as of December 31, 2020, the related statements of operations, changes in member's equity, 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 the Company 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 the Company's management. Our responsibility is to express an opinion on the Company'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 the Company 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. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. 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 opm1on. {6}------------------------------------------------ ### **Supplemental Information** Schedule I: Computation of Net Capital Pursuant to Rule 15c3-l, Schedule II: Computation for Determination of Reserve Requirements Pursuant to Rule l 5c3-3, and Schedule III: Information Relating to Possession of Control Requirements Under Rule 15c3-3 (the "supplemental information") has been subjected to audit procedures performed in conjunction with the audit of the Company's financial statements. The supplemental information is the responsibility of the Company'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.l 7a-5. In our opinion, the supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole. We have served as the Company's auditor since 2019. Boston, Massachusetts March 31, 2021 {7}------------------------------------------------ ## **EC Securities LLC Statement of Financial Condition December 31, 2020** #### **Assets** | Cash
Accounts receivable
Prepaid expenses
FINRA CRD Deposit | \$
554,190
311,197
15,655
505 | |----------------------------------------------------------------------|-------------------------------------------| | Total assets | \$
881,547 | | Liabilites and member's equity
Liabilities | | | Due to Parent
Accounts payable and accrued expenses | \$
209,868
1,461 | | Total liabilities | 211,329 | | Member's equity | 670,218 | | Total liabilities and member's equity | \$
881,547 | {8}------------------------------------------------ ## **EC Securities LLC Statement of Operations Year Ended December 31, 2020** ### **Revenue** | Placement fees | \$
577,343 | |--------------------------|---------------| | Platform service fees | 234,193 | | Retainer | 50,000 | | Total Revenue | 861,536 | | Expenses | | | Professional fees | 150,371 | | Employee compensation | 286,268 | | Regulatory Expenses | 18,640 | | Communications | 7,845 | | Insurance | 45,123 | | Occupancy and equipment | 91,295 | | Technology licensing fee | 30,000 | | Other operating expenses | 83,993 | | Total Expenses | 713,535 | | | | | Net income | \$
148,001 | {9}------------------------------------------------ ## **EC Securities LLC Statement of Changes** in **Member's Equity Year Ended December 31, 2020** | January 1, 2020 | | 37,230 | |-----------------------------------------|----|---------| | Contribution of expenses paid by Member | | 484,987 | | Net Income | | 148,001 | | December 31, 2020 | \$ | 670,218 | {10}------------------------------------------------ ## **EC Securities LLC Statement of Cash Flows Year Ended December 31, 2020** | Cash flows from operating activities:
Net income | | 148,001 | |--------------------------------------------------------------------------------------|----|-----------| | Adjustments to reconcile net income to net cash provided
by operating activities: | | | | Contribution of expenses paid by Member | | 484,987 | | Changes in assets and liabilities: | | | | Increase in accounts receivable | | (311,197) | | Increase in prepaid expenses | | (15,655) | | Decrease in other assets | | 19,346 | | Increase in accrued expenses | | 1,211 | | Increase in due to Parent | | 209,868 | | Net cash provided by operating activities | | 536,561 | | Net increase in cash | | 536,561 | | Cash at beginning of year | | 17,629 | | Cash at end of year | \$ | 554,190 | {11}------------------------------------------------ #### **EC SECURITIES LLC NOTES TO FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2020** #### Note 1 **Organization and Summary of Significant Accounting Policies** #### **Organization and Business** EC Securities LLC ("'Company") is a wholly owned subsidiary of Amalgamated Token Services, Inc. (the "Parent," "ATS," or "Member") and is a broker-dealer registered with the Securities and Exchange Commission ("SEC"). The Company is also a member of the Financial Industry Regulatory Authority. The Company engages in the private placement of securities, including private offerings of certain digital securities. #### **Revenue Recognition** The Company recognizes revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers. The authoritative guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. The five steps are: (i) identify the contract with the customer; (ii) identify the performance obligation in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligation; and (v) recognize revenue when or as each performance obligation is satisfied. Revenue for placement services is generally recognized at the point in time that the performance under the arrangement is completed (typically, the closing of a private offering of digital securities). Retainer and other fees received from customers prior to recognizing revenue are reflected as contract liabilities, until the respective performance obligations have been met; typically the successful closing of a private offering of digital securities or the expiration of the contract. There were no contract liabilities recorded as of December 31, 2020 related to advanced consideration received from customers for contracts. The Company earns platform service fees for services related to the use of its online platform. Revenue on platform service fees is recognized monthly as the service is rendered. Revenue was earned from two customers during the year in the following percentages of total revenue: 84% and 16%. Of the total revenue recognized, \$577,343 was placement fees, \$234,193 was platform service fees and the remainder was retainer fees of \$50,000. #### **Income Taxes** The Company is recognized as a single member Limited Liability Company (an "LLC") by the Internal Revenue Service. The LLC is regarded as a pass-through entity, where any income tax liability is recognized and paid by the Member. For all open tax years and all major taxing jurisdictions, the Company has concluded that it is a pass-through entity and there are no uncertain tax positions that would require recognition in the financial statements. If the Company were to incur an income tax liability in the future, interest on any income tax liability would be reported as interest expense and penalties on any income tax liability would be reported as income taxes. No interest expense or penalties have been recognized as of or for the period ended {12}------------------------------------------------ #### **EC SECURITIES LLC NOTES TO FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2020** December 31, 2020. The Company's conclusions regarding uncertain tax positions is subject to review and adjustment later based upon ongoing analysis of tax laws, regulations and interpretations thereof, as well as other factors. Generally, federal, state and local authorities may examine the Company's tax returns and the Company believes it is no longer subject to income tax examinations for years prior to 2019. #### **Use of Estimates** The preparation of financial statements in conformity with generally accepted accounting principles 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. #### Note 2 **Financial Instruments and Concentration of Risk** Financial instruments subject to risk concentration include cash. The Company maintains depository cash and certificates of deposit with one banking institution. Depository accounts are insured by the Federal Depository Insurance Corporation ("FDIC") to a maximum of \$250,000 per bank, per depositor. Total cash for the Company exceeding the FDIC insured limit is \$304,190 as of December 31, 2020. #### Note 3 **Commitments and Contingencies** The Company has no commitments and contingencies. #### Note 4 **Net Capital Requirements** The Company, as a registered broker dealer is subject to the Securities and Exchange Commission Uniform Net Capital Rule (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 15 to 1. At December 31, 2020, the Company had net capital of \$342,861, which was \$328,773 in excess of its required net capital of \$14,088 and its ratio of aggregate indebtedness to net capital was .62 to 1.0. #### Note 5 **Related Party Transactions** The Company has an administrative services agreement with the Parent. Pursuant to the agreement, the Parent provides administrative, payroll, human resources and other services. The Parent paid \$694,855 of expenses on behalf of the Company during the year ended December 31, 2020 for these services. Of the \$694,855 of expenses that the Parent paid on behalfof the Company, \$484,987 is recorded as a contribution in the Company's statement of changes in member's equity and \$209,868 is recorded on the Statement of Financial Condition as "Due to Parent." The Company entered into a Platform Services Agreement ("Platform Agreement") on May 7, 2020 (with a one year term renewable at the Company's option), with a related party, AL Securities, LLC ("ALS"). ALS is an indirect majority owned subsidiary of the majority shareholder of the Parent. The Platform Agreement allows the Company to access and use/manage the online platform. As consideration for the Platform Agreement, the Company provided Angellist Holdings, LLC, the majority shareholder of the Parent with preferred shares of the Parent. The Platform Agreement requires the {13}------------------------------------------------ #### **EC SECURITIES LLC NOTES TO FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2020** Company to supervise ALS's software platform and simultaneously provide broker services to users of the software platform in exchange for platform service revenue in the amount of \$30,000 per month. The Platform Agreement requires certain staffing resources be dedicated by the Company to the operation and supervision of the platform. During the year ended December 31, 2020, total revenue earned under the Platform Agreement was \$234,193. #### Note 6 **Regulatory Requirements** - **Rule 15c3-3** The Company operates in reliance upon Footnote 74 to SEC Release 34-70073, dated July 30, 2013, and as discussed in Q&A 8 of the related FAQ issued by SEC staff on April 4, 2014. In order to avail itself of this option, the Company does not, and will not, hold customer funds or securities, and its business activities are, and will remain, limited to acting as placement agent for the private offerings of securities, including private offerings of certain digital securities where the issuer (or its transfer agent) has control over the definitive record of ownership (which may be on a distributed ledger or have a distributed ledger associated with it) that allows it to enforce transfer restrictions, correct errors and (to the extent relevant) address lost or stolen tokens or keys; and mergers and acquisitions advisory services. #### Note 7 **Estimates and Indemnifications** In the normal course of business the Company enters into contracts that contain a variety of representations and warranties and which provide general indemnifications. The Company's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Company that have not occurred. However, the Company expects any risk of loss to be remote. #### Note 8 **Risks and Uncertainties** In March 2020, the World Health Organization declared the outbreak of a novel coronavirus (COVID-19) as a pandemic which continues to spread throughout the United States. The Company is monitoring the outbreak of COVID-19 and the related business and travel restrictions and changes to behavior intended to reduce its spread, and its impact on operations, financial condition, cash flows and the industry in general, in addition to the impact on its employees. At this time, COVID-19 has not changed the Company's ability to operate. Due to the rapid development and fluidity of this situation, the magnitude and duration of the pandemic and its impact on the Company's operations and liquidity is uncertain as of the date of this report. While there could ultimately be a material impact on operations and liquidity of the Company, at the time of issuance, the impact could not be determined. #### Note 9 **Subsequent Events** The Company has performed an evaluation of subsequent events through the date the financial statements were issued. The evaluation did not result in any subsequent events that required disclosures and/or adjustments. {14}------------------------------------------------ ## SUPPLEMENTAL INFORMATION {15}------------------------------------------------ #### **Schedule I** #### **EC Securities LLC Supplemental Information Pursuant to Rule 17a-5 December 31, 2020** #### **Computation <:I Net Capital** | Total member's equity qualified for net capital | \$
670,218 | |------------------------------------------------------------------------------------------|---------------| | | | | Non-allowable assets: | | | Accounts receivable, other assets and prepaid expenses | 327,357 | | Total non-allowable assets | 327,357 | | Net capital before haircuts | 342,861 | | Less haircuts on securities positions | \$ | | Net capital | \$
342,861 | | Aggregate indebtedness | \$
211,329 | | Computation of basic net capital requirement | | | Minimum net capital required (greater of \$5,000 or
6 2/3% of aggregate indebtedness) | \$
14,088 | | Excess Net Capital | \$
328,773 | | Ratio of aggregate indebtedness to net capital | .62 to 1 | #### **Reconciliation <:I Computation <:I Net Capital** There were no rraterial reconciling items ~r this rep:irt and the arrended quarterly filing, filed on March 29, 2021, bf the Company of Part 11 of the Focus Rep:irt with respect to the computation of the Net Capital pursuant to Rule l 5c3-l. {16}------------------------------------------------ #### **EC SECURITIES LLC SCHEDULE** II **COMPUTATION FOR DETERMINATION OF RESERVE REQUIREMENTS PURSUANT TO SEC RULE 15C3-3 AS OF DECEMBER 31, 2020** With respect to the Computation for Determination of Reserve Requirements under Rule 1Sc3-3, the Company operates in reliance on Footnote 74 to SEC Release 34-70073, dated July 30, 2013, and as discussed in Q&A 8 of the related FAQ issued by SEC staff on April 4, 2014. The Firm does not, and will not, hold customer funds or securities, and its business activities are, and will remain, limited to the private placement of securities, including private offerings of certain digital securities. {17}------------------------------------------------ #### **EC SECURITIES LLC SCHEDULE** Ill **INFORMATION RELATING TO POSSESSION OR CONTROL REQUIREMENTS UNDER SEC RULE 15C3-3 AS OF DECEMBER 31, 2020** With respect to the Information Relating to Possession and Control Requirements under Rule 15c3-3, the Company operates in reliance on Footnote 74 to SEC Release 34-70073, dated July 30, 2013, and as discussed in Q&A 8 of the related FAQ issued by SEC staff on April 4, 2014. The Firm does not, and will not, hold customer funds or securities, and its business activities are, and will remain, limited to the private placement of securities, including private offerings of certain digital securities. {18}------------------------------------------------ ![](_page_18_Picture_0.jpeg) #### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** We have reviewed management's statements, included in the accompanying Management's Exemption Report, in which (1) EC Securities LLC (the "Company") asserts that it does not claim an exemption under paragraph (k) of 17 C.F.R. §240.15c3-3 adopting amendments to 17 C.F.R. §240.17a-5 and (2) the Company is relying on Footnote 74 of the SEC Release No. 34- 70073 adopting amendments to 17 C.F.R. §240.l 7a-5 because the Company limits its business activities to those exclusively listed in its exemption report and the Company (1) did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, (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. The Company's management is responsible for compliance with SEC Rule 15c3-3 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 the Company's compliance with SEC Rule 15c3-3. 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 Footnote 74 to SEC Release No. 34-70073 adopting amendments to 17 C.F.R. §240.17a-5. Boston, Massachusetts March 31, 2021 ![](_page_18_Picture_7.jpeg) {19}------------------------------------------------ ## **EC Securities LLC Exemption Report Decem her 31, 2020** EC Secttrities LLC (tl1e ''Company'') is a registered broker-dealer subject to Rule l 7a-5 pro111ulgated by the Securities a11d Exchange Commission ( 17 C.F.R. §240. l 7a-5, ''Reports to be 111ade by ce11ain brokers a11d dealers''). This Exemptio11 Report was prepared as required by 17 C.F.R. §240. l 7a-5(d)(l) a11d (4). To the best of its knowledge and belief, the Company states the followi11g: ( 1) The Company does not claim an exemption under paragraph (k) of 17 C.F.R. § 240. **l** 5c3-3, and (2) Tl1e Company is filing this Exemption Report relying on Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240. I 7a-5 because the Company limits its business activities exclusively to receiving transaction-based compensation for identifying potential 1nerger and acquisition opportunities for clients, referring securities transactions to other broker-dealers, or providing technology or platform services; and the Company (I) did not directly or indirectly receive, hold, or othenvise owe funds or securities for or to customers, ( 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. EC Securities LLC I, Scott Keto, swear ( or affir111) that, to my best knowledge and belief, this Exemption Report is true and correct. March 29, 2021 Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.