# EGWELE SECURITIES LLC X-17A-5 (2022-03-04) — Broker-dealer annual report - Company: EGWELE SECURITIES LLC - Form: X-17A-5 - Filed: 2022-03-04 - Period: 2021-12-31 - Accession: 0001810587-22-000001 - CIK: 1810587 - File #: 8-70521 - Type: Broker-dealer - Material weakness: No - Auditor: DeMarco, Sciacotta, Wilkens & Dunleavy, LLP - Auditor location: Frankfort, IL - Contact: Carol Ann Kinzer - Phone: 678-525-0992 - Signed by: Brian Egwele (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1810587/000181058722000001/public2021egwele.pdf --- {0}------------------------------------------------ UNITED **STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** # **ANNUAL REPORTS FORM X-17A-5 PART** Ill 0MB Number: 3235-0123 Expires: Oct. 31, 2023 Estimated **average** burden hours per response: 12 | SEC FILE NUMBER | | |-----------------|--| | 8-70521 | | **FACING PAGE** **Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934** | FILING FOR THE PERIOD BEGINNING _ | _0l,/_0_l/,2,,. 0_21_
MM/DD/YY | __
AND ENDING | 12/31/ | 2021
MM/DD/YY | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|------------------|-----------------|-----------------------------------------| | | A. REGISTRANT IDENTIFICATION | | | | | _ E,.g'-w_e_le_Se_c_u_r_it_ie_s_L_L_C
NAME OF FIRM: _ | _________ | _ | ___
_
_ | ____
_ | | TYPE OF REGISTRANT (check all applicable boxes); | | | | | | D Major security-based swap participant
Cl Broker-dealer
D Security-based swap dealer
0 Check here If respondent is also an OTC derivatives dealer | | | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | | h Wacker Drive, Suite 4250
155 Nort | | | | | | | (No. and Street) | | | | | Chicago | IL | | | 60606 | | (City) | (St.ite) | | | (Zip Code) | | Carol Ann Kinzer
(Name) | 678-525-0992
(Area Code - Telephone Number! | | (Email Address) | | | | B. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing•
DeMarco, Sciaccotta, Wilkens & Dunleavy, LLP | (Name - if individual, state last, first, and middle name) | | | | | 20646 Abbey Woods Ct N, Suite 201 | Frankfort | | IL | 60423 | | (Address) | (City) | | (State) | {Zip Code) | | 12/21/
2010 | | | 5376 | | | T" of,.,,.,,,,,
.,;,h PCAOB)lff •oolk•bl•J | | | | 4PCA08 Roatm,tloo N,mbo,, ;r •ppik•bl•J | | | 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)(l)(il), If applicable. | | | | | **Persons who are to respond to the collection of Information** contained In this form **are not required** to **respond** unless t he form **displays a currently** valid 0MB control number. {1}------------------------------------------------ #### **OATH OR AFFIRMATION** | Brian Egwele
I, | | | | | , swea r (or affirm) that, to the best of my knowledge and belief, the | |-------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|-----------------------|------------|-----|---------------------------------------------------------------------------------------------| | financial report pertaining to the firm of | | Egwele Securities LLC | | | as of | | December 31 | | | | | , 2 021 , 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. | KRISTOPHER D LEWIS
Official Seal
Notary Public• State c,f Illinois
My Commission Expires Nov 4, 2025 | | Signature: | | | | ~ | | | Tit le: | CEO | | | | | | | | | #### **This filing"'\* contains (check all applicable boxes):** - ~ (a) Statement of financial condition. - ~ (b) Notes to consolidated statement of financial condition. - 0 (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 (d) Statement of cash f lows. - D (el Statement of changes in stockholders' or partners' or sole proprietor's equity. - •:J (f) Statement of changes In liabilities subordinated to claims of creditors. - u (g) Notes to consolidated financial statements. - 0 (h) Computation of net capital under 17 CFR 240.1Sc3-1 or 17 CFR 240.lBa-1, as applicable. - 0 (i) Computation of tangible net worth under 17 CFR 240. lSa-2. - D (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3·3. - D (k) Computation for determination of securi1y-based swap reserve requirements pursuant **to** Exhibit **B** to 17 CFR 240.1Sc3-3 or Exhibit A to 17 CFR 240.lSa-4, as applicable. - D (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.15c3•3. - D (m) Information relating to possession or control requirements for customers under 17 CFR 240.1Sc3-3. - 0 (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. - O (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-1, or 17 CFR 240.lBa-2, as applicable, and the reserve requirements under 17 CFR 240.1Sc3-3 or 17 CFR 240.18a-4, as applicable, If material differences exist, or a statement that no material differences exist. - C (p) Summary of financial data for subsidiaries not consolidated in the statement of financial cond ition. - [2( (q) Oath or affirmation in accordance with 17 CFR 240.l 7a -5, 17 CFR 240.17a-12, or 17 CFR 240.lSa-7, as applicable. - n (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-S or 17 CFR 240.18a-7, as applicable. - 0 (t) Independent public accountant's report based on an examination of t he statement of financial condition. - D (u) Independent public accountant's report based on an examination of t he financial report or financial statements under 17 CFR 240.17a•S, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - D (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.lSa-7, as applicable. - D (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. - D (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-le or 17 CFR 240.17a-12, as applicable. - D (y) Report describing any material inadequacies found to exist or 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). 0 (z) Other:---------------------------------- - -- - - *"\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e)(3} or 17 CFR 24O,18a-7(d)(2), os* applicable. {2}------------------------------------------------ # **EGWELE SECURITIES LLC** FINANCIAL ST A TEMENTS AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM PURSUANT TO SEC RULE l 7a-5 DECEMBER 31 , 202 1 {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, 2021, and the related notes ( collectively referred to as the "financial statement"). In our opinion, the statement of financial condition presents fairly, in all material respects, the financial position of Egwele Securities LLC as of December 31 , 2021 in conformity with accounting principles generally accepted in the United States of America. #### **Basis for Opinion** This financ ial 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. *f)e/4.~te;~~* ~Jl-..ltd *at* Frankfort, Illinois March 3, 2022 > Phone:708.489.1680 Fax:847. 750.0490 I **dscpagroup.com** 20646 Abbey Woods Ct N, Suite 201 I Frankfort, IL 60423 {4}------------------------------------------------ # **EGWELE SECURITIES LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2021** | ASSETS | | |---------------------------------------|----------------| | Cash | \$
108,45 1 | | Total assets | 108,45 1 | | LIABILITIES AND MEMBER'S EQUITY | | | LIABILITIES: | | | Accounts payable | \$
941 | | Total liabilities | 94 1 | | MEMBER'S EQUITY | 107,51 0 | | Total liabilities and member's equity | \$
108,451 | The accompanying notes are an integral part of these financial statements. {5}------------------------------------------------ # **Egwele Securities LLC** # **Notes to Financial Statements December 31, 2021** #### **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, providing private placement and M&A advisory services. #### 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, 2021. #### 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, 2021** ## **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 15 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, 2021, the Company had net capital of \$107,510 which was \$102,510 in excess of its required net capital of \$5,000. The Company's ratio of aggregate indebtedness to net capital was 0.0088 to 1. {7}------------------------------------------------ # **Egwele Securities LLC** # **Notes to Financial Statements December 31, 2021** ### **4. Concentration** 70% of the Company's revenue for the year-ended December 31, 2021 was earned from two customers. ### **5. Commitments and Contingencies** The Company had no commitments or contingencies that required disclosure as of December 31, 2021. ### **6.Lease** The Company leases office space pursuant to month-to-month lease agreements. \$4,873 was incurred under such leases for the year ended December 31 , 2021 and is included in occupancy and equipment on the accompanying statement of operations. The Company has elected, for all underlying classes of assets, to not recognize right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less at lease commencement, and do not include an option to purchase the underlying asset that the Company is reasonably certain to exercise. The Company recognizes lease cost associated with short-term leases on a straight-line basis over the lease term. #### **7.SubsequentEvents** Management evaluated subsequent events through March 3, 2022, 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.