# EGWELE SECURITIES LLC X-17A-5 (2021-02-05) — Broker-dealer annual report - Company: EGWELE SECURITIES LLC - Form: X-17A-5 - Filed: 2021-02-05 - Period: 2020-12-31 - Accession: 0001810587-21-000004 - CIK: 1810587 - File #: 8-70521 - Material weakness: No - Auditor: DeMarco, Sciaccotta, Wilkens & Dunleavy, LLP - Auditor location: Tinley Park, IL - Contact: Carol Ann Kinzer - Phone: 678-525-0992 - Signed by: Brian Egwele (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1810587/000181058721000004/publicegwele.pdf --- {0}------------------------------------------------ **UNITEDSTATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** # **ANNUAL AUDITED REPORT FORM X-17A-5 PARTIII** 0MB APPROVAL 0 MB Number: 3235-0123 Expires: October 31. 2023 Estimated average burden hours oer resoonse ..... . 12.00 # SEC FILE NUMBER 8- 70521 #### FACING PAG[ 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_9_/2_12_0_2_0 | _______
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MM/00/YY | | | | | | |---------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------|------------------|------------------------------------------------|--|--|--|--|--| | A. REGISTRANT IDENTIFICATION | | | | | | | | | | NAME OF BROKER-DEALER: Egwele Securities LLC | | | OFFICIAL USE ONLY | | | | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | | | | | | | | 155 North Wacker Drive, Suite 4250 | | | | | | | | | | | (No. and Street) | | | | | | | | | Chicago | IL | | 60606 | | | | | | | (City) | (State) | | (Zip C,,de) | | | | | | | NAME AND TELEPHONE NUMBER or PERSON TO CONTACT IN REGARD TO THLS REPORT | B. ACCOUNTANT IDENTTFTCATJON | Carol Ann Kinzer | 678-525-0992
(Arcu Code - Telephone Number) | | | | | | | INDEPENDENT PUBLIC ACCOUNT ANT whose opinion is contained in this Report•
DeMarco, Sciaccotta, Wilkens & Dunleavy, LLP | ( Name - !( indil•iduu/, SltJ/e !tJSI, fir;•/, middle name) | | | | | | | | | 9501 W. 171 st Street H-103 | Tinley Park | IL | 60487 | | | | | | | ( Address) | (City) | (State) | (Zip CoJe) | | | | | | | | | | | | | | | | | CHECK ONE: | | | | | | | | | | Certified Puhlic Accountant | | | | | | | | | | Public Accountant | | | | | | | | | | § | Accountant not resident in United Scates or any of its possessions. | | | | | | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | *must be supported by o staterne,rt of facts a11d circumstances relied* 0 11*as rhe basis fm· tl,e exemption. See Section 240.1 ?a-5 (e)(2)* **Potential person& who are to reapond** to **the c:ollec:tlon of inform atlon contained** in **this form are not required to respond** unless the form displays a currentty veld 0MB control number. SEC 1410 (11-05) {1}------------------------------------------------ #### **OATH OR AFFIRMATION** | I, | Brian Egwele | | , swear (or affinn) that, to the best of | |-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | | my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of
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are true and correct. I fur ch er swear { or aflirm) that | | | | | neither the company nor any partner, proprietor, principal officer or director has any proprietary interest in any account | | | classified solely as that ofa customer, except as follows: | | | | | | | | | | OFFICIAL SEAL
KRISTOPHER D LEWIS | | | | | NOTARY PUBLIC, STATE OF ILLINOIS | | Signature | | | My Commission Exphes Nov. 4, 2021 | | CEO | | | | | Title | | | | | | | | | | | | | This repon ++ 1:ontains (che<:k all applicable boxes): | | | | | E) (a) Facing Page. | | | | | E) (b) Statement or Financia
l Condition.
0 (c) Statement of Income (Loss) or, if there is other comprehensive income in t | | | | | of Comprehensive Income ( as defined in §2 l 0.1-02 of Regulation S-X). | | he period(s) presented, a Statement | | .,, | (d) Statement of Changes in Financial Condition. | | | | - | (e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital.
(t) Statement of Changes in Liabilities Subordinatcal to Claims of Creditors. | | | | ~ | ~ (g) Compulation ofNeL Capilal. | | | | r | (h) Computation for Determination of Reserve Requirements Pursuant to Rule 15c3-3. | | | | | (i) Information Relating to the Possession or Control Requirements Under Ruic l Sc3-3.
D (j) A Reconciliation | | | | | Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3. | | . including appropriate explanation of the Computation of Net Capital Under Rule l 5c3-1 and the | | | 0 (k) A Reconci | | liation berween the audited and unaudited Statements of Financial Condition with r!!spect to methods of | | | consolidation. | | | | | An O~th nr AftirmMin11 . | | | | § (I) | (m) A copy of the SIPC Supplemental Report. | | ( n) A report describing any material inadequacies foun d to exist or found to have existed since the date of the previous audit. | | | | | | | | ** For conditions of c011fidential t,·eatment of certain portions ~f thisfiling. see sectitm 240. l 7a-5(e)( 3). | | | {2}------------------------------------------------ # **EGWELE SECURITIES LLC** FINANCIAL STATEMENTS AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM PURSUANT TO SEC RULE l 7a-5 DECEMBER 31 , 2020 {3}------------------------------------------------ ![](_page_3_Picture_0.jpeg) ## REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Member of Egwele Securities LLC ### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Egwele Securities LLC (the "Company") as of December 31, 2020, and the related notes ( collectively referred to as the "financial statement"). In our opinion, the statement of financial condition presents fairly, in all material respects, the financial position of Egwele Securities LLC as of December 3 1, 2020 in conformity with accounting principles generally accepted in the United States of America. #### **Basis for Opinion** This financial statement is the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statement based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to 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 statement is free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statement, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. We have served as Egwele Securities LLC's auditor since 2020. */Je~ fr-<'~~* **~i~ftd** LL! Tinley Park, Illinois February I, 2021 > Phone 708.489.1680 Fax:847.750.0490 I dscpagroup.com 9501 W. 171st Street. H-103 I Tinley Park. IL 60487 2639 Fruitville Road, Suite 303 I Sarasota, FL 34237 {4}------------------------------------------------ # **EGWELE SECURITIES LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2020** | ASSETS | | |-----------------|---------------| | Cash | \$
104,825 | | MEMBER'S EQUITY | | | Member's equity | \$
104,825 | | | | The accompanying notes are an integral part of these financial statements. {5}------------------------------------------------ # **Egwele Securities LLC** # **Notes to Financial Statements December 31, 2020** #### **1. Organization and Nature of Business** Egwele Securities LLC (the "Company") is a broker-dealer registered with the Securities and Exchange Commission (SEC) and a member of the Financial Industry Regulatory Authority, Inc. (FINRA) effective September 2, 2020. The Company advises companies and private funds on offering investments in such companies and private funds to investors. The Company is located in the state of Illinois and was organized as a limited liability company in Illinois on November 20, 2017. As a limited liability company, the member's liability is limited to its equity contribution. #### **2. Summary of Significant Accounting Policies** #### Basis of presentation The Company maintains its books and records on the accrual basis of accounting for financial reporting purposes, which is in accordance with U.S. generally accepted accounting principles which is required by the SEC and FINRA. The Company is engaged in a single line of business as a securities broker-dealer. #### Accounts receivable Accounts receivable are recorded at cost less an allowance for expected credit losses. The Company develops its estimate of credit losses on accounts receivable by considering all available information (past, current, and future) relevant to assessing collectability. The Company had no receivables at December 31 , 2020. #### Revenue from contracts with customers The Company recognizes revenue in accordance with ASC 606 Revenue from Contracts with Customers ( "ASC 606"). Under ASC 606 revenue is recognized upon satisfaction of performance obligations by transferring control over goods or service to a customer. Revenue from advisory arrangements is generally recognized at the point in time that performance under the arrangement is completed (the closing date of the transaction) or the contract is cancelled. However, for certain contracts, revenue is recognized over time for advisory arrangements in which the performance obligations are simultaneously provided by the Company and consumed by the customer. In some circumstances, significant judgment is needed to determine the timing and measure of progress appropriate for revenue recognition under a specific contract. Retainers and other fees received from customers prior to recognizing revenue are reflected as contract liabilities. {6}------------------------------------------------ # **Egwele Securities LLC** # **Notes to Financial Statements December 31, 2020** # **2. Summary of Significant Accounting Policies (continued)** # Income taxes The Company is a limited liability company and as such, is not required to file its own tax return. Accordingly, no provision for income taxes is provided in the financial statements as they are the responsibility of the individual member. The Company has adopted the provisions of FASB Accounting Standards Codification 740-10, Accounting for Uncertainty in Income Taxes. Under FASB ASC 740-10, the Company is required to evaluate each of its tax positions to determine if they are more likely than not to be sustained if the taxing authority examines the respective position. A tax position includes an entity's status and the decision not to file a return. The Company has evaluated each of its tax positions and has determined that it has no uncertain tax positions for which a provision or liability for income taxes is necessary. The member files income tax returns in the U.S. in both federal jurisdiction and state jurisdictions. ## 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. ## **3. Net 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 and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 8 to 1. Rule 15c3- 1 also provides that equity capital may not be withdrawn or cash dividends paid if the resulting net capital ratio would exceed 10 to 1. As of December 31 , 2020, the Company had net capital of \$104,825 which was \$99,825 in excess of its required net capital of \$5,000. The Company's ratio of aggregate indebtedness to net capital was 0 to 1. ## **4. Concentration** 100% of the Company's revenue for the period September 2, 2020 through December 31 , 2020 was earned from one customer. {7}------------------------------------------------ **Egwele Securities LLC** **Notes to Financial Statements December 31, 2020** # **5. Related Party Transaction** Egwele & Company (a company under common ownership and control) provides office space to the Company under an informal month-to-month agreement. Rent expense was \$825 for the period September 2, 2020 through December 31, 2020 and is included as occupancy expense on the accompanying statement of operations. ## **6. Subsequent Events** Management evaluated subsequent events through February 1, 2021 , the date the financial statements were available to be issued. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.