# ECOBAN SECURITIES CORPORATION X-17A-5 (2024-06-27) — Broker-dealer annual report - Company: ECOBAN SECURITIES CORPORATION - Form: X-17A-5 - Filed: 2024-06-27 - Period: 2024-03-31 - Accession: 0002013816-24-000039 - CIK: 832853 - File #: 8-39753 - Type: Broker-dealer - Material weakness: No - Auditor: Farkouh, Furman & Faccio, LLP - Auditor location: New York, NY - Contact: Michael Chiarovano - Phone: 212-668-8700 - Signed by: Stephen DeGot (Owner) Original filing: https://www.sec.gov/Archives/edgar/data/832853/000201381624000039/ecobansecpublic.pdf --- {0}------------------------------------------------ OMB APPROVAL OMB Number: Expires: Estimated average burden hours per response: SEC FILE NUMBER # ANNUAL REPORTS FORM X-17A-5 PART III | SEC FILE NUMBER | | |-----------------|--| | o
20752 | | | NAME OF FIRM: _______________________________________________________________________ | | |--------------------------------------------------------------------------------------------------------------------------|--------------------------------------| | A.
REGISTRANT IDENTIFICATION | | | FILING FOR THE PERIOD BEGINNING _____________________ AND ENDING ______________________
MM/DD/YY | MM/DD/YY | | | | | FACING PAGE
Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | | | PART III | | | FORM X-17A-5 | | | ANNUAL REPORTS | | | Washington, D.C. 20549 | Expires:
Estimated average burden | | UNITED STATES
SECURITIES AND EXCHANGE COMMISSION | OMB Number: | | | OMB APPROVAL | # NAME OF FIRM: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ | NAME OF FIRM: _______________________________________________________________________ | | | | | |---------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|---------------------------------------|--------------------------------------------|--| | TYPE OF REGISTRANT (check all applicable boxes):
Broker-dealer
Check here if respondent is also an OTC derivatives dealer | Security-based swap dealer | Major security-based swap participant | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | | _____________________________________________________________________________________ | | | | | | | (No. and Street) | | | | | _____________________________________________________________________________________ | | | | | | (City) | (State) | | (Zip Code) | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | _____________________________________________________________________________________ | | | | | | (Name) | (Area Code – Telephone Number) | (Email Address) | | | | | B.
ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | | | | | | | | | _____________________________________________________________________________________ | (Name – if individual, state last, first, and middle name) | | | | | _____________________________________________________________________________________ | | | | | | (Address) | (City) | (State) | (Zip Code) | | | _____________________________________________________________________________________ | | | | | | (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. 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}------------------------------------------------ #### **OAT .. OR AFFIRMAT10N** | t. ~OoGat | 5wear (or affirm) that, to the best of my koowledge and treltef., th<.> | |--------------------------------------------------------|-----------------------------------------------------------------------------------| | fltwlci.,I repo,t perta:11¥\g to the ftr:m of ~ ~ ~on | ~ as of | | 3131
2
◄ | ls true and correct. t further swear (or affirm) thit neither the comp.ny nor any | Pl~, officer~ dlrector11 or eqwiw~t person-4 as the **case** may be, his any proprletary lntereit In any iccount cla\$-sif5ed s.oletv as thlt of *i* customer. ![](_page_1_Picture_3.jpeg) | i | GmGERGILL | |---|------------------------------| | | | | | t()~m~~r | | | °'11111d In New y~ Coullty | | | COINlls,tof\ !~s_Olll0._'1~! | Title: Ownor # This fiUn1N contains (check all **applk•bl• boxes):** - Ii (a) St~tement of fin~ndal condition. - ii (b) Not~ to **consolidated** staten1eot of fm.1nd1.I oond~tion - C: (cj Statement of lntome (toss) or., lf there is other compreheAslve income ln the period(s) preseA,ted, a st.temerlt of CCHI\Pfehellsive in.coaH! (as deriined lA § 21,0.1-02 or Regulation S·X). - 0 (d) Stitem«it of cash filow~ - 0 (e) SUtement ot changes m stockholders' or ~rtners-' or sole proprletor's equity. - u (f) Statement of chat\ges in M~~tles subordmated to cl4'1ms of creduors - □ (&} Notes to am~ted financial statements. - □ (h) Compt.itadon of net capital under 17 CFR 240A1Sc3~1 or 17 CFR 240.18a-1, as appljcable. - D (i} COfflputaoon of tangible *net* '#Orth under 17 CFR 2~0 18a-2 - D (j} CompuUtJon for determination of ws.tomer res.e,ve requ1reiments pursuant to Exhibit A to 17 CFR 240 1Sc3-3. - Q {K) **Computation** for determanation of sea;irity~based swap reserve requirements pursuant to Exhibit 8 to 17 CFR 240.lSc.3-3 or Exhibit A to 17 CFR **2(0.18a--4, as** appliubfe. - 0 (f) Computation for Determination of PAS Requ,remernts under Exhlbit A to§ 240.15c3~3. - 0 (mj Information relating to possession or control req1itlrements for customers under 17 CFR 240.1Sc3-3. - D (n) tnformatJon relatiflg to pos:sesslon or tolltrol requ:lrements for secunty--based **swap** customers under 17 CTR 240. l.5c.3•3{p)(2) or 17 CFR 240.18a-4., as a,ppbcable. - 0 (o) R«onciliations4 indudng appropriate explanaflons, of the FOCUS R~port w•th comput.tion of net capital or tangible net worth under 17 CfR 240.15c.3·i 17 CFR 240.lSa-1, or 17 CFR 240..18a-2, as appUcab1e, and the reserve requirements ull\der 17 CFR 2'°-.1.Sc3-3 or 17 CFR 240 18,a--4, as apphcable, lf materiil differences exlst, or a statement tha.t no miterl~I differences **eXISt.** - O (p} SumtTWY of f«1imdal data for subsidiaries not comolldated in the suttement Gf flnandal cor1d1tlon. - ii (q} Oath or afft.rmatlon in accordance ~ilth 17 CFR 240.17a-S., 17 CfR 240 .. 17a-12, or 17 CFR 240.18a-7, as appUuble. - O (r) Compf.ance report in ~rdance with 17 CFR 240Al7a-s or 17 CFR 240.18a-7, as appUcable. - Q (sl E.xemption report 'in ac:cor~nce wlth 17 CFR 240.17a-S or 17 CFR 240.18a•7, as appl\cable. - ii (t} IJ\dependent ~bUc .ccountant's report based on an excmlna-tk>n of the statemen.t of fiin~ncial ccndioon. - O (ut independent pubUc accountant's report based on an ~nmlnatlon of the flninclal report or financl~I stAtements under 17 CFR 240.17a-s. 17 CfR 240.18a•7, or 17 CFR 240.17a•lt as applicable. - O (v) lndepMdent pubWc accountant's report based on an examinatlon of certain sta,tements ln the comphance report under 17 CfR 240.l 7a-s or 17 CFR 240. 18a· 7, as applk,ble. - O (w¾ ln~nt pubwc accowit~nr's report ba-Sed on a r~~lew of the ex~pt1on report under 17 CFR 240.l 7a•S or 17 CfR 24ll.18a•7, as appGuble. - C ('x} Supplement~f re,ports on l?pl','ing ~reed.-.u-pon procedures, in accordant:e with 17 CFR 240\_ 1Sc3-le or 17 CFR 240 l7a-U. as a9i)lkab!e. - C (\'t ~port desafbt.ng a,ny materut inadequ1d~s found to e~st or fourtd to have eilsted s1fl)ce the date of the prevtOl!ls ~ll.Miirt t'lr aSU(efflMt that no material i~dequwes e,clst, llr,der 17 CFR 240.l7a-ll{'k). = (?)Other. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_ - - ·•ro ft>q«St (Olt{kJ~nlkJI U'e"- l.,i 1°Ac-L:r- {2}------------------------------------------------ # ECOBAN SECURITIES CORPORATION Financial Statement With Report of Independent Registered Public Accounting Firm For the Year ended March 31, 2024 This report is deemed PUBLIC in accordance with Rule 17a-5(e)(3) under the Securities Exchange Act of 1934. {3}------------------------------------------------ ## ECOBAN SECURITIES CORPORATION FOR THE YEAR ENDED MARCH 31, 2024 #### Table of Contents Page | Report of Independent Registered Public Accounting Firm | | | |---------------------------------------------------------|-------|--| | Financial Statement: | | | | Statement of Financial Condition | 2 | | | Notes to Financial Statement | 3 - 7 | | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) # REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Stockholder of Ecoban Securities Corporation # **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Ecoban Securities Corporation as of March 31, 2024, and the related notes (collectively referred to as the "financial statement"). In our opinion, the financial statement presents fairly, in all material respects, the financial position of Ecoban Securities Corporation as of March 31, 2024 in conformity with accounting principles generally accepted in the United States of America. # **Basis for Opinion** This financial statement is the responsibility of Ecoban Securities Corporation's management. Our responsibility is to express an opinion on Ecoban Securities Corporation'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 Ecoban Securities Corporation in accordance with the U.S. federalsecuritieslaws 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. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ CERTIFIED PUBLIC ACCOUNTANTS We have served as Ecoban Securities Corporation's auditor since 2001. New York, New York June 26, 2024 460 Park Avenue, New York, NY 10022 T. 212.245.5900 F. 212.586.3240 fffcpas.com ![](_page_4_Picture_13.jpeg) Together as One. Farkouh, Furman & Faccio is a member of the Alliott Global Alliance of independent professional firms. {5}------------------------------------------------ # STATEMENT OF FINANCIAL CONDITION ECOBAN SECURITIES CORPORATION MARCH 31, 2024 | ASSETS: | | |--------------------------------------------------------|---------------| | Cash | \$
34,444 | | Investment in securities at fair value | 5,421 | | Deferred tax asset | 124,996 | | Prepaid expenses | 14,510 | | Fees receivable | 6,095 | | Other assets | 100 | | TOTAL ASSETS | \$
185,566 | | LIABILITIES AND STOCKHOLDER'S EQUITY | | | LIABILITIES: | | | Accounts payable and accrued expenses | \$
11,240 | | TOTAL LIABILITIES | 11,240 | | STOCKHOLDER'S EQUITY: | | | Common stock - \$1 par value, 1,000 shares authorized, | | | 103 shares issued and outstanding | 103 | | Additional paid-in capital | 673,156 | | Accumulated deficit | (498,933) | | TOTAL STOCKHOLDER'S EQUITY | 174,326 | | TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | \$
185,566 | See accompanying notes to financial statement {6}------------------------------------------------ #### NOTE 1 – ORGANIZATION AND NATURE OF BUSINESS Ecoban Securities Corporation (the "Company") is a registered broker-dealer with the Securities and Exchange Commission ("SEC") and is a member of both the Financial Industry Regulatory Authority, Inc. ("FINRA") and the Securities Investors Protection Corporation ("SIPC"). The Company receives service fees (1) when acting as a placement agent in the underwriting of offerings and (2) related to its participation in road shows on behalf of various businesses. #### NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES #### Basis of Presentation The accompanying financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America ("GAAP") as detailed in the Financial Accounting Standards Board's Accounting Standards Codification. #### Use of Estimates The preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting year. Accordingly, actual results could differ from those estimates and such differences could be material. #### Revenue Recognition The Company accounts for revenue under the provisions of FASB ASC 606, "Revenue from Contracts with Customers." Under the standard, recognition of revenue occurs when a customer obtains control of promised services or goods in an amount that reflects the consideration to which the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts. The following table presents our total revenues separated for our revenues from contracts with customers and our other sources of revenues: | The accompanying financial statements have been prepared on the accrual basis of accounting in accordance with accounting
principles generally accepted in the United States of America ("GAAP") as detailed in the Financial Accounting Standards Board's | | | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------|--| | The preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the date
of the financial statements, and the reported amounts of income and expenses during the reporting year. Accordingly, actual results | | | | The Company accounts for revenue under the provisions of FASB ASC 606, "Revenue from Contracts with Customers." Under the
standard, recognition of revenue occurs when a customer obtains control of promised services or goods in an amount that reflects the
consideration to which the entity expects to receive in exchange for those goods or services. In addition, the standard requires
disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts. | | | | The following table presents our total revenues separated for our revenues from contracts with customers and our other sources of | | | | Revenues from contracts with customers:
Private placement fee income
Service fees
Total Revenue from Contracts with Customers | \$
2,615,184
558,825
3,174,009 | | | Other Sources of Revenue:
Net trading gains (losses) | -
(1,270) | | | Total Revenues | \$
3,172,739 | | | | | | | | | | Any gains or losses resulting from foreign currency transactions are included in revenue. The following provides detailed information on the recognition of our revenues from contracts with customers: #### Private Placement Fees Income The Company provides placement agent services in both the equity and debt capital markets, including private equity placements, initial public offerings, follow-on offerings and equity-linked convertible securities transactions and structuring, underwriting and distributing public and private debt. Placement agent fees are recognized when the client obtains the control and benefit of the offering at that point. Costs associated with capital markets transactions are deferred until the related revenue is recognized or the engagement is otherwise concluded, and are recorded on a gross basis. {7}------------------------------------------------ #### NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): #### Revenue Recognition (Continued) #### Service Fees The service fees represent revenue resulting from consulting services including non-deal road shows and marketing materials. Fees from these advisory assignments are recognized in revenues when the services related to the underlying transaction are completed. #### Information on Remaining Performance Obligations The Company does not disclose information about remaining performance obligations pertaining to contracts that have an original expected duration of one year or less. These performance obligations generally relate to the service fee income and are expected to be resolved within three months or less as of March 31, 2024. #### Fees Receivable The timing of the revenue recognition may differ from the timing of payment by the customers. The Company records a receivable when revenue is recognized prior to payment and it has an unconditional right to payment. Alternatively, when payment precedes the provision of the related services, the Company records deferred revenue until the performance obligations are satisfied. Receivables related to revenues from contracts with customers amounted to \$6,095, at March 31, 2024. The Company carries its fees receivable at cost less an allowance for credit losses. On a periodic basis, the Company evaluates its fees receivable and establishes an allowance for credit losses based on history of past write-offs and collections and current credit conditions. No allowance for credit losses was required at March 31, 2024. #### Contract Costs The Company does not incur any contract costs with the exception of those included in the contract and incurred by its registered representatives. #### Disaggregation of Revenue The Company does not disaggregate revenue other than by product line, as it does not believe any further disaggregation provides meaningful information about its financial performance or position. #### Leases The Company accounts for leases under the provisions of FASB ASC 842, "Leases" ("ASC 842"). The standard establishes a right-ofuse (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months and classify as either operating or finance leases. In accordance with ASC 842, at the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present and the classification of the lease including whether the contract involves the use of a distinct identified asset, whether the Company obtains the right to substantially all the economic benefit from the use of the asset, and whether the Company has the right to direct the use of the asset. Leases with a term greater than one year are recognized on the balance sheet as ROU assets and lease liabilities. The Company has elected not to recognize on the balance sheet leases with terms of one year or less under practical expedient in paragraph ASC 842-20-25-2. For contracts with lease and non-lease components, the Company has elected not to allocate the contract consideration and to account for the lease and non-lease components as a single lease component. See Note 5 #### Income Taxes The Company's fiscal tax year ends on March 31, 2024. It is projected that the taxable income will be significantly lower than the net operating loss carry forward from the previous fiscal year. Accordingly, there is no tax liability recorded as of March 31, 2024. {8}------------------------------------------------ #### NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): #### Income Taxes (Continued) The Company accounts for income taxes in accordance with FASB ASC 740 "Income Taxes." Federal, state and local income taxes are calculated and recorded on the current year's activity in accordance with the tax laws and regulations that are in effect. Deferred tax assets and liabilities are recognized based on the differences between the financial statement carrying amounts and the tax bases of assets and liabilities, using enacted tax rates in effect in the years the differences are expected to reverse. Deferred income tax benefit (expense) results from the change in net deferred tax assets or deferred tax liabilities. A valuation allowance is recorded when it is more likely than not that some or all deferred tax assets will not be realized. Deferred income tax benefit (expense) results from the change in net deferred tax assets or deferred tax liabilities. A valuation allowance is recorded when it is more likely than not that some or all deferred tax assets will not be realized. The Company accounts for uncertainties in income taxes under the provisions of FASB ASC 740-10-05 (the "Subtopic"). The Subtopic clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements. The Subtopic prescribes a recognition threshold and measurement attitude for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The Subtopic provides guidance on de-recognition, classification, interest and penalties, accounting in interim years, disclosure and transition. #### Investment in Securities Investment in securities are recorded on trade date and are valued at fair value in accordance with FASB ASC 820 as described further in these notes. Realized and unrealized gains and losses from securities are reflected in net trading gains(losses) on the statement of operations. The values of securities which are denominated in foreign currencies are stated using the exchange rate in effect on the last business day of the year. Purchases and sales of securities which are denominated in foreign currencies are recorded at the exchange rate as of the date of the transaction. For financial statement purposes, the Company does not isolate that portion of the trading gain(loss) resulting from exchange rate fluctuation. Such changes are combined with changes in market prices and included in trading gains(losses) in the statement of operations. State and local 33 \$ Total Current Expense 33 Deferred Expense: ### NOTE 3 - CONCENTRATIONS OF CREDIT RISK #### Cash The Company maintains cash balances that, at times, may exceed the amount insured by the Federal Deposit Insurance Corporation. The exposure to the Company is solely dependent upon daily bank balances and the strength of the financial institution. The Company has not incurred any losses on this account. At March 31, 2024, the amount in excess of insured limits of \$250,000 was \$0. #### Revenue During the year ended March 31, 2024, approximately 94% of the Company's revenue was from three customers. #### NOTE 4 - INCOME TAXES Components of provision for income taxes are as follows for the year ended March 31, 2024: | the trading gain(loss) resulting from exchange rate fluctuation.
Such changes are combined with changes in market prices and | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | The Company maintains cash balances that, at times, may exceed the amount insured by the Federal Deposit Insurance Corporation.
The exposure to the Company is solely dependent upon daily bank balances and the strength of the financial institution. The Company | | | | | | Current Expense: | | State and local
\$
33
Total Current Expense
33 | | Deferred Expense: | | Federal
(5,732) | | Total Deferred Tax (Benefit) Expense
(5,732)
Total Provision for Income Taxes
\$
(5,699) | | Federal net operating loss carryforwards of \$595,216 are available to the Company of which \$86,429 expires in fiscal 2039 and the | | 5 | | | Federal net operating loss carryforwards of \$595,216 are available to the Company of which \$86,429 expires in fiscal 2039 and the remainder do not expire. {9}------------------------------------------------ ### NOTE 4 - INCOME TAXES (CONTINUED): The Company's deferred income tax assets consist of net operating loss. The Company did not record a valuation allowance against its deferred tax assets as the Company determined that it was more likely than not that the deferred tax assets will be realized in future years based on future estimates of taxable income. At March 31, 2024, the Company had no material unrecognized tax benefits. The Company recognizes interest and penalties in interest expense. As of March 31, 2024, the Company recorded no interest and penalties. The Company files federal, state and local income tax returns in jurisdictions with varying statutes of limitations. The 2021 through 2024 tax years generally remain subject to examination by the respective tax authorities. #### NOTE 5 - COMMITMENTS The Company rented office space in New Rochelle from a family member of the Company's President on a month-to-month basis. Additionally, imcluded in professional fees on the statement of operations is \$128,500 paid to the family member of the Company's President for administrative services. Rent expense for the year ended March 31, 2024 amounted to \$38,000. In the normal course of business, the Company enters into underwriting commitments. Transactions relating to such underwriting commitments that were open at March 31, 2024, and were subsequently settled had no material effect on the financial statements as of that date. #### NOTE 6 - NET CAPITAL REQUIREMENT 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 12.5 to 1, in the first year of membership and 15 to 1, thereafter. 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. At March 31, 2024, the Company had net capital of \$23,204 which was \$18,204 in excess of its required net capital of \$5,000. The Company's ratio of aggregate indebtedness to net capital was 0.48 to 1. #### NOTE 7 – RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS: The Financial Accounting Standards Board (the "FASB") has established the Accounting Standards Codification ("Codification" or "ASC") as the authoritative source of 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"). For the year ended March 31, 2024, various ASUs issued by the FASB were either newly issued or had effective implementation dates that would require their provisions to be reflected in the financial statements for the year then ended. The Company has either evaluated or is currently evaluating the implications, if any, of each of these pronouncements and the possible impact they may have on the Company's financial statements. In most cases, management has determined that the pronouncement has either limited or no application to the Company and, in all cases, implementation would not have a material impact on the financial statements taken as a whole. {10}------------------------------------------------ # NOTES TO FINANCIAL STATEMENTS ECOBAN SECURITIES CORPORATION FOR THE YEAR ENDED MARCH 31, 2024 #### NOTE 8 – FAIR VALUE MEASUREMENT: In accordance with FASB accounting standards for investments' fair value measurement and disclosure, the Company discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). This guidance provides three levels of the fair value hierarchy as follows: Level 1 - Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date; Level 2 - Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly, at the measurement date, including inputs in markets that are not considered to be active; Level 3 - Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. A financial instrument's level within the fair value hierarchy is based upon the lowest level of any input that is significant to the fair value measurement. However, the determination of what constitutes "observable" requires significant judgment by the Company. The Company considers observable data to be market data which is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market. The following is a summary of the financial assets measured at fair value as of March 31, 2024: Private Securities - \$ - \$ 5,000 \$ 5,000 \$ Equities 421 \$ - \$ - \$ 421 \$ Total 421 \$ - \$ 5,000 \$ 5,421 \$ | Description of Securities Owned | Level 1 | Level 2 | Level 3 | Total | | | |-----------------------------------------|---------|---------|---------|-------|--|--| | Investments in securities at fair value | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | The Company acquired a private security during the year valued at \$5,000 through issuance of shares as compensation. No unobservable inputs internally developed by the Company have been applied to the value of this private security as the best indication of value is its issuance value. There were no other financial assets or liabilities measured at fair value under ASC 820 as of March 31, 2024. #### NOTE 9 – 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 the date the financial statements were 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.