# FIRST DALLAS SECURITIES, INC. X-17A-5 (2022-10-25) — Broker-dealer annual report - Company: FIRST DALLAS SECURITIES, INC. - Form: X-17A-5 - Filed: 2022-10-25 - Period: 2022-07-31 - Accession: 0000850117-22-000002 - CIK: 850117 - File #: 8-41231 - Type: Broker-dealer - Material weakness: No - Auditor: Moss Adams LLP - Auditor location: Dallas, TX - Contact: Charmagne Darabadey - Phone: 214-665-9103 - Signed by: Craig Hodges (President) Original filing: https://www.sec.gov/Archives/edgar/data/850117/000085011722000002/fdsaudit22.pdf --- {0}------------------------------------------------ FIRST DALLAS SECURITIES, INC. REPORT PURSUANT TO RULE 17a-5(d) YEAR ENDED JULY 31, 2022 {1}------------------------------------------------ **UNITEDSTATES SECURITIESANDEXCHANGECOMMISSION Washington, D.C. 20549** OMB APPROVAL OMB Number 3235-0123 Expires: October 31,2023 Estimated average burden **8**- **SEC FILE NUMBER** ## **ANNUAL AUDITED** hours per response 12.00 **REPORT FORM X-17A-5 PART III** #### **FACING PAGE Information Required of Brokers and Dealers Pursuant to Section 17 of the** **Securities Exchange Act of 1934 and Rule 17a-5 Thereunder** | REPORT FOR THE PERIOD BEGINNING | August 1,
2021 | AND ENDING July 31,2022 | | |-------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------|-------------------------|-------------------------------| | | MM/DD/YY | | MM/DD/YY | | | A. REGISTRANT
IDENTIFICATION | | | | NAME OF BROKER-DEALER: | First
Securities
Dallas | | OFFICIAL USE ONLY | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | FIRM I.D. NO. | | 2905
Maple | Ave | | | | | (No. and Street) | | | | Dallas | TX | | 75201 | | (City) | (State) | (Zip Code) | | | Charmagne | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
Darabadey
214
665
9103 | | | | | | | (Area Code -Telephone Number) | | | B. ACCOUNTANT
IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* | | | | Moss
Adams | | | | | | (Name -if individual, state last, first, middle name ) | | | | | 14555 Dallas
Parkway
Suite
300 | | 75254
TX | | (Address) | (City) | Dallas
(State) | (Zip Code) | | CHECK ONE: | | | | | Certified Public Accountant
X
Public Accountant | | | | | | | | | | | Accountant not resident in United States or any of its possessions. | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | | | | *Claims for exemption from the requirement that the annual report be covered by the opinion of an independent public accountant | | | *must be supported by a statement of facts and circumstances relied on as the basis for the exemption. See Section 240.17a-5(e)(2)* **Potential persons who are to respond to the collection of informationcontained in this formarenotrequired to respond SEC 1410 unlessthe formdisplaysa currently valid OMB controlnumber. (11-05)** {2}------------------------------------------------ #### **OATH OR AFFIRMATION** | Craig
Hodges
I, | ,
that,
(or
swear
affirm)
to
the best
of | |-----------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------| | my knowledge and
belief
the accompanying | financial
statement
and supporting
schedules
pertaining
to the firm
of | | First
Dallas
Securities | ,
as | | 31
of
July | ,
correct.
22
20
are
true
and
I further
swear
(or
affirm)
that | | proprietor,
neither
the company
nor any partner, | principal
officer
or director
has
any
proprietary
interest
in any account | | of a customer,
classified
solely
as that
except | as follows: | | | | | | | | | | | | | | | | | LISA SCHONEFELD
Notary Public, State of Texas | | | Comm. Expires 10-29-2
22 | | | °
Notary ID 124729375 | Signature | | | President
First
Dallas
Inc.
Securities | | | Title | | | | | | | | V
Notary Public | | | This
report
**
contains
(check
all
applicable | boxes): | | Page.
fyl (a) Facing | | | Financial Condition.
fxl (b) Statement
of | | | (c)
Statement
of
or,
Income (Loss)
if there
[x] | presented,
income in the period(s)
is
other
comprehensive
a Statement | | of
Comprehensive Income
(as
defined
(d) Statement
of
Changes in | Regulation S-X).
in §210.1-02
of
Condition. | | Financial
(e)
Statement
of
Changes in Stockholders'
X | or Sole Proprietors'
Capital.
Equity or
Partners' | | (f)
of
Statement
Changes in Liabilities | Creditors.
to
Subordinated
Claims
of | | Net Capital.
(g) Computation of
_ | | | (h) Computation
for Determination of | Pursuant to Rule 15c3-3.
Reserve Requirements | | J
(i) Information
Relating to
the Possession or Control | Requirements Under
Rule 15c3-3. | | J
(j)
A Reconciliation,
including
appropriate | explanation
the
of
Computation
of
Net Capital
15c3-l
Under Rule
and
the | | Computation for
Determination of | Rule 15c3-3.
the Reserve Requirements
Under Exhibit
A of | | Q]
(k)
A Reconciliation between the
audited
consolidation. | and unaudited
Statements
of
Financial
Condition
with respect
to methods of | | or Affirmation.
(1)
An Oath | | | ^
Report.
(m) A
copy of
the SIPC Supplemental | | | I]
(n) A
report describing
any material | inadequaciesfound
audit.
to exist
or found to
have
existed
since
the date
of the previous | | | | | **For conditions
of confidential
treatment
of | 240.17a-5(e)(3).
certain portions
of this
filing,
see
section | | | | {3}------------------------------------------------ ## **FIRST DALLAS SECURITIES, INC.** ## CONTENTS REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM STATEMENTOF FINANCIAL CONDITION STATEMENTOF INCOME STATEMENTOF CHANGES IN STOCKHOLDER'S EQUITY STATEMENT OF CASH FLOWS NOTES TO FINANCIAL STATEMENTS SUPPORTING SCHEDULES Schedule I: Computation ofNet Capital Under Rule 15c3-l of the Securities and Exchange Commission MANAGEMENT'S EXEMPTION REPORT REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON MANAGEMENT'S EXEMPTION REPORT {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) # **Report of Independent Registered Public Accounting Firm** To the Stockholder and the Board of Directors First Dallas Securities, Inc. ### *Opinion on the Financial Statements* We have audited the accompanying statement of financial condition of First Dallas Securities, Inc. (the Company) as of July 31, 2022, the related statements of income, changes in stockholder'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 July 31, 2022, 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. 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 to 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. #### *Opinion on the Supplemental Information* The supplemental information in Schedule I has been subjected to audit procedures performed in conjunction with the audit of the Company's financial statements. The information in Schedule I is the responsibility of the Company's management. Our audit procedures include determining whether the information in Schedule I 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 Schedule I. In forming our opinion on the information in Schedule I, we evaluated whether the information in Schedule I, including its form and content, is presented in conformity with 17 C.F.R. §240.17a-5. In our opinion, the information in Schedule I is fairly stated in all material respects in relation to the financial statements as a whole. *LL-P* Dallas, Texas October 24, 2022 We have served as the Company's auditor since 2016. {5}------------------------------------------------ Statement of Financial Condition July 31, 2022 #### ASSETS | equivalents
Cash
and
cash
broker-dealers
Receivable
from
and
clearing
organizations
Other
assets | \$
912.320
345.321
45,296 | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------| | ASSETS
TOTAL | \$
1,302,937 | | STOCKHOLDER'S
LIABILITIES
AND
EQUITY | | | LIABILITIES
Accrued
expenses
and other
liabilities
Due to Parent | \$
103,000
109,012 | | LIABILITIES
TOTAL | 212,012 | | STOCKHOLDER'S
EQUITY
authorized,
with \$.05
Common
stock,
1,000,000
par value;
10,000
shares
issued
and
outstanding
paid-in
Additional
capital
earnings
Retained | 500
61,200
1 ,029,225 | | STOCKHOLDER'S
TOTAL
EQUITY | 1 ,090,925 | | STOCKHOLDER'S
TOTAL
LIABILITIES
AND
EQUITY | \$
1,302,937 | *The accompanying notes are an integral part of these financial statements.* {6}------------------------------------------------ Statement of Income For the Year Ended July 31, 2022 | Revenues: | | |-----------------------------------------------------------------------------------------------------------------|-----------------| | Commissions | \$
2,223,813 | | Distribution
fees | 226,593 | | Other
income | 138,590 | | Interest
and
dividend
income | 1 ,803 | | Realized
gains(losses) | (1,579) | | Unrealized
gains(losses) | 838 | | Total revenues | 2,590,058 | | Expenses: | | | | 803,400 | | representatives
commissions
Registered
Commissions
and
clearance
paid all
other
brokers | 163,347 | | Regulatory
fees
and
expenses | 33,115 | | Other
expenses | 1,569,419 | | Losses
in error
account | 40 | | Total expenses | 2,569,321 | | taxes
Net
income
before | 20,737 | | Provision for
income
taxes | 9,277 | | Net income | \$
11,460 | {7}------------------------------------------------ Statement of Changes in Stockholder's Equity For the Year Ended July 31, 2022 | | Common
Stock | Paid-In | Additional
Capital | Retained
Earnings | Total | |-----------------------------------------|-----------------|---------|-----------------------|----------------------|-----------------| | Balances
at July
31,
2021 | \$
500 | \$ | 61,200 | \$
817,765 | \$
879,465 | | Capital
investment
from
parent | | | | 200,000 | 200,000 | | Net income | | | | 11,460 | 11,460 | | Balances
at July
31,
2022 | \$
500 | \$ | 61,200 | \$
1,029,225 | \$
1,090,925 | {8}------------------------------------------------ ## **First Dallas Securities, Inc.** Statement of Cash Flows For the Year Ended July 31, 2022 | CASH
FLOWS
FROM OPERATING
ACTIVITIES | | |-----------------------------------------------------------------------------------------|---------------| | Net income | \$
11,460 | | Adjustments
to
reconcile
net income
to net cash | | | activities:
by (used in)
provided
operating | | | and liabilities:
Changes
in assets | | | Increase
in receivable
from
broker-dealers
and
clearing
organizations | (21,462) | | Increase
in other
assets | (14,827) | | Increase
in accrued
expenses
and liabilities | 10,369 | | Increase
in due
to Parent | 22,489 | | Net cash
flows
provided
by operating
activities | 8,029 | | CASH
FLOWS
FROM
INVESTING
ACTIVITIES | | | Net
cash
flows
provided
by
(used in) investing
activities | | | ACTIVITIES
CASH
FLOWS
FROM FINANCING | | | Capital
investment
from
parent | 200,000 | | flows
Net cash
provided
by financing
activities | 200,000 | | EQUIVALENTS
INCREASE
IN CASH
AND
CASH | 208,029 | | CASH EQUIVALENTS,
of
CASH
AND
at the
beginning
the
year | 704,291 | | CASH EQUIVALENTS,
CASH
AND
at the
end
of
the
year | \$
912,320 | {9}------------------------------------------------ ## **First Dallas Securities, Inc.** Notes to Financial Statements July 31, 2022 ## Note 1 -Organization and Nature of Business First Dallas Securities, Inc. (the "Company") is a broker-dealer in securities registered with the Securities and Exchange Commission ("SEC") and is a member of the Financial Industry Regulatory Authority ("FINRA"). The Company operates under SEC Rule 15c3-3(k)(2)(ii), which provides that all funds and securities belonging to the Company's customers would be handled by a clearing brokerdealer. The Company is registered with the SEC as a registered investment advisor. The Company is a Texas Corporation that is a wholly-owned subsidiary of Hodges Capital Holdings, Inc. (the "Parent"). Substantially all of the Company's business is conducted with customers located in the southwestern United States. ## Note 2 -Significant Accounting Policies The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") 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. The Company follows the provisions of Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers. Revenues are recognized when control of the promised services is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. Revenues are analyzed to determine whether the Company is the principal (i.e. reports revenues on a gross basis) or agent (i.e. reports revenues on a net basis) in the contract. Principal or agent designations depend primarily on the control an entity has over the product or service before control is transferred to a customer. The Company's timing of revenue recognition may differ from the timing of customer payments. When there is an unconditional right to payment, according to the terms of the contract, the Company records a receivable. For receivables with unsatisfied performance obligations, the Company records deferred revenue until the performance obligations are satisfied. Receivables with no outstanding performance obligations are recognized as revenue upon issuance of the related invoice. Securities readily marketable are carried at fair value as determined by quoted market prices and securities not readily marketable are carried at fair value as determined by management of the Company. The increase or decrease in net unrealized appreciation or depreciation of securities is credited or charged to operations. The Company follows the provisions of ASC Topic 326, Financial Instruments-Credit Losses, which requires an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The standard requires an entity to estimate its lifetime expected credit loss and record an allowance, that when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. {10}------------------------------------------------ Notes to Financial Statements July 31, 2022 The Company takes into consideration the composition of the receivables, current economic conditions, the estimated net realizable value of the underlying collateral, historical loss experience, delinquency, and bankrupt accounts when determining management's estimate of probable credit losses and the adequacy of the allowance for credit losses. Any receivables deemed uncollectible are written off against the allowance. Money market funds are considered cash equivalents for the purposes of the statement of cash flows. Cash consists of deposits with banks and all highly liquid investments, with maturities of three months or less, that are not segregated and deposited for regulatory purposes. The Company's federal and state tax returns are subject to examination over various statues of limitations generally ranging from three to five years. ## Note 3 -Net Capital Requirements Pursuant to the net capital provisions of Rule 15c3-1 of the Securities Exchange Act of 1934, the Company is required to maintain a minimum net capital as defined under such provisions. Net capital and the related net capital ratio may fluctuate on a daily basis. At July 31, 2022, the Company had net capital of \$938,512 and net capital requirements of \$250,000. The Company's ratio of aggregate indebtedness to net capital was 22.59%. The Securities and Exchange Commission permits a ratio of no greater than 15 to 1. ## Note 4 -Possession or Control Requirements The Company operates subject to the exemptive provisions of SEC Rule 15c3-3(k)(2)(ii) by promptly transmitting all customer funds and securities to the clearing broker who carries the customer accounts. The Company does not have any possession or control of customer funds or securities. ## Note 5 -Income Taxes The Company is a member of a group that files a consolidated federal tax return. The group filed for an S-Corporation election that became effective on August 1, 2017. Therefore, there are no federal income taxes reflected within these financial statements as income tax is the responsibility of the members of the Parent. The provisions for income tax and accrued income taxes payable included in the accompanying financial statements represent state income taxes. ## Note 6 -Related Party Transactions The Parent, pursuant to a services agreement, provides all of the general administrative expenses for the Company. The Company incurred \$1,040,139 in administrative fees, \$9,277 in income taxes, and \$300,000 in management fees to the Parent during the year ended July 31, 2022. The Company also incurred fees of \$803,400 which the Parent, as a common paymaster, paid to licensed salesmen of the Company. At July 31, 2022 the Company owed the Parent \$109,012. The Company receives income from mutual funds ("Funds") that are managed by Hodges Capital Management, Inc. which is owned by the Parent. These Funds paid to the Company securities commissions of \$98,593 for the year ended July 31, 2022. {11}------------------------------------------------ ## **First Dallas Securities, Inc.** Notes to Financial Statements July 31, 2022 ## Note 7 -Risk and Uncertainties The Company maintains deposits in excess of federally insured limits at various times during the year ended July 31, 2022. The balance at July 31, 2022 was \$605,291 in money market mutual funds. The risk is managed by maintaining all deposits in high quality institutions. The Company did not experience any losses during the year ended July 31, 2022 related to these concentrations. The Company's securities are held by the clearing broker-dealer. Should the clearing broker-dealer fail to deliver securities to the Company, the Company may be required to purchase identical securities on the open market. The Company has a clearing deposit due from and held by its clearing broker-dealer of approximately \$55,000 as of July 31, 2022. ### Note 8 -Revenue Recognition ### *Significant Judgments* Revenue from contracts with customers includes commission income and distribution fees. The recognition and measurement of revenue is based on the assessment of individual contract terms. Significant judgement is required to determine whether performance obligations are satisfied at a point in time or over time; how to allocate transaction prices where multiple performance obligations are identified; when to recognize revenue based on the appropriate measure of the Company's progress under the contract; whether revenue should be presented gross or net of certain costs; and whether constraints on variable consideration should be applied due to uncertain future events. #### *Commission Revenue* The Company buys and sells securities on behalf of its customers. Each time a customer enters into a buy or sell transaction, the Company charges a commission. Commissions and related clearing expenses are recorded on the trade date (the date that the Company fills the trade order by finding and contracting with a counterparty and confirms the trade with the customer). The Company believes that the performance obligation is satisfied on the trade date because that is when the underlying financial instrument or purchaser is identified, the pricing is agreed upon, and the risks and rewards of ownership of the securities have been transferred to/from the customer. #### *Distribution Fees* #### Mutual Funds, Insurance and Annuity Products The Company earns revenue for selling affiliated and unaffiliated mutual funds, fixed variable annuities and insurance products. The performance obligation is satisfied at the time of each individual sale. A portion of the revenue is based on a fixed rate applied, as a percentage, to amounts invested at the time of sale. The remaining revenue is recognized over the time the client owns the investment or holds the contract and is generally earned based on a fixed rate applied, as a percentage, to the net asset value of the fund, or the value of the insurance policy or annuity contract. The ongoing revenue is not recognized at the time of sale because it is variably constrained due to factors outside the Company's control including market volatility and client behavior (such as how long clients hold their investment, insurance policy or annuity contract). The revenue will not be recognized until it is probable that a significant reversal will not occur. {12}------------------------------------------------ Notes to Financial Statements July 31, 2022 The Company had receivables related to contracts from customers of \$269,166 and \$288,898 at July 31, 2021 and at July 31, 2022, respectively. These receivables are from broker-dealers and clearing organizations and are generally collected in full in the month following their accrual. As such, management has not recorded an allowance for credit losses on these receivables. The Company had no deferred revenue related to unrecognized engagement fees where the performance obligations have not yet been satisfied at July 31, 2021 and at July 31, 2022, respectively. ## Note 9 -Commitments and Contingencies Included in the Company's clearing agreement with its clearing broker-dealer is an Indemnification clause. This clause relates to instances where the Company's customers fail to settle security transactions. In the event this occurs, the Company will Indemnify the clearing broker-dealer to the extent of the net loss on the unsettled trade. At July 31, 2022, management of the Company had not been notified by the clearing broker-dealer, nor were they otherwise aware of any potential losses relating to this indemnification. {13}------------------------------------------------ Supplemental Information Pursuant to Rule 17a-5 ofthe Securities Exchange Act of 1934 as of July 31, 2022 {14}------------------------------------------------ #### **Schedule I** ## FIRST DALLAS SECURITIES, INC. Computation of Net Capital Under Rule 15c3-1 of the Securities and Exchange Commission As of July 31, 2022 #### **COMPUTATION OF NET CAPITAL** | Total
stockholders'
equity
qualified
for
net
capital | \$
1,090,925 | |---------------------------------------------------------------------------------------------------------------|-----------------| | Add:
Other
deductions
or
allowable
credits | | | | | | allowable
Total
capital
and
subordinated
liabilities | 1 ,090,925 | | Deductions
and/or
charges | | | assets:
Non-allowable
Receivables
non-allowable | (169,295) | | Other
assets | | | Other
deductions
and/or
charges | 30,000 | | before
haircuts
securities
Net
capital
on
positions | 951,630 | | (computed,
applicable,
Haircuts
securities
where
to
15c3-l
on
pursuant
Rule
(f) | | | Other
securities | (13,117) | | Net
capital | \$
938,513 | | | | | AGGREGATE
INDEBTEDNESS | | | condition
Items
included
in
statement
of
financial | | | Accrued
expenses
and
other
liabilities | \$
103,000 | | Due
to
Parent | 109,012 | | indebtedness
Total
aggregate | \$
212,012 | {15}------------------------------------------------ ## **Schedule I (continued)** ## FIRST DALLAS SECURITIES, INC. Computation of Net Capital Under Rule 15c3-1 of the Securities and Exchange Commission As of July 31, 2022 ## **COMPUTATION OF BASIC NET CAPITAL REQUIREMENT** | (6
2/3%
of
indebtedness)
Minimum
net
capital
required
total
aggregate | \$
14,134 | |-------------------------------------------------------------------------------------------------------|---------------| | dollar
or
dealer
Minimum
net
capital
requirement
of
reporting
broker | \$
250,000 | | of
above
Net
capital
requirement
(greater
two
minimum
requirement
amounts) | \$
250,000 | | Net
capital
excess
of
required
minimum
in | \$
688,512 | | Ratio:
Aggregate
Indebtedness
to
net
capital | 22.59% | #### **RECONCILIATION WITH COMPANY'S COMPUTATION** There were no material differences in the computation of net capital under Rule 15c3\* 1 from the Company's computation. {16}------------------------------------------------ ![](_page_16_Picture_0.jpeg) # **Report of Independent Registered Public Accounting Firm** To the Stockholder and the Board of Directors First Dallas Securities, Inc. We have reviewed management's statements, included in the accompanying First Dallas Securities, Inc. Exemption Report in which: - 1) First Dallas Securities, Inc. states First Dallas Securities, Inc. claims an exemption under paragraph (k)(2)(ii) of 17 C.F.R. §240.15c3-3 (the exemption provisions); and - 2) First Dallas Securities, Inc. states First Dallas Securities, Inc. met the identified exemption provisions throughout the most recent fiscal year without exception. First Dallas Securities, Inc.'s management is responsible for compliance with the exemption provisions 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 First Dallas Securities, Inc.'s compliance with the exemption provisions. 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 the provisions set forth in paragraph (k)(2)(ii) of 17 C.F.R. §240.15c3-3. *L-L-P* Dallas, Texas October 24, 2022 {17}------------------------------------------------ ## **FIRST DALLAS SECURITIES, INC.** #### **BROKER-DEALER ANNUAL EXEMPTION REPORT** #### **July 31, 2022** First Dallas Securities, Inc. (the "Company") is a registered broker-dealer subject to Rule 17a-5 promulgated by the Securities and Exchange Commission ( 17 C.F.R. §240.17a-5, "Reports to be made by certain brokers and dealers"). This Exemption Report was prepared as required by 17 C.F.R. §240.17a-5(d)( 1 ) and (4). To the best of its knowledge and belief the Company states the following: - 1. The Company claimed an exemption from 17 C.F.R. §240.15c3-3 under the following provisions of 17 C.F.R. §240.15c3-3 ( k)(2)(ii). - 2. The Company met the identified exemption provisions in 17 C.F.R. §240.15c3-3(k) throughout the most recent fiscal year without exception. First Dallas Securities I, Craig Hodges, affirm that to my best knowledge and belief, this Exemption Report is true and correct. Craig Hodges President September 25, 2022 Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.