# DABBAH SECURITIES CORP. X-17A-5 (2021-02-25) — Broker-dealer annual report - Company: DABBAH SECURITIES CORP. - Form: X-17A-5 - Filed: 2021-02-25 - Period: 2020-12-31 - Accession: 0000863374-21-000003 - CIK: 863374 - File #: 8-42634 - Material weakness: No - Auditor: Weisberg, Mole, Krantz & Goldfarb LLP - Auditor location: Woodbury, NY - Contact: Steve Dabbah - Phone: 212 697 9870 - Signed by: Steve Dabbah (President) Original filing: https://www.sec.gov/Archives/edgar/data/863374/000086337421000003/Dabbahaudit.pdf --- {0}------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 #### **ANNUAL AUDITED REPORT FORM X-17A-5 PART** Ill | 0MB APPROVAL | | | | |---------------------------|----|-----------------|--| | 0MB Number: | | 3235-0123 | | | Expires: October 31, 2023 | | | | | Estimated average burden | | | | | hours cer response 12.00 | | | | | | | SEC FILE NUMBER | | | | 8- | 42634 | | | | | | | #### **FACING PAGE** 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 | ------------
1/1/2020 | AND ENDING | ----------
12/31/2020 | |---------------------------------------------------------------------------|---------------------------------------------------------|------------|-----------------------------| | | MM/DD NY | | MM/DDNY | | | A. REGISTRANT IDENTIFICATION | | | | NAME OF BROKER-DEALER: | DABBAH SECURITIES CORP. | | | | | | | OFFICIAL USE ONLY | | | | | FIRM ID. NO. | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | | | 167 EAST 63RD STREET | | | | | | (No. and Street) | | | | NEWYORK | NY | | 10065 | | (City) | (State) | | (Zip Code) | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT | | | | | STEVE DABBAH | | | 212 697-9870 | | | | | (Area Code - Telephone No.) | | | B. ACCOUNTANTIDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNT ANT whose opinion is contained in this Report* | | | | | WEISBERG, MOLE', KRANTZ & GOLDFARB LLP | | | | | | (Name - if individual, state last, first, middle name ) | | | | 185 CROSSWAYS PARK DRIVE | WOODBURY | NY | 11797 | | (Address) | (City) | (State) | (Zip Code) | | CHECK ONE: | | | | | ~ Certified Public Accountant
D Public Accountant | | | | | D 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. I 7 a-5 (e)(2).* > **Potential persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid 0MB control number.** SEC 1410 (11-05) {1}------------------------------------------------ #### **OATH OR AFFIRMATION** | l, | STEVE DABBAH | , swear (or affirm) that, to the | | | | |----|-------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------|--|--|--| | | best ofmy knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of | | | | | | | ~,
DABBAH SECURITIES CORP. | • as of | | | | | | 31-Dec
20 | are true and correct. 1 further swear ( or affirm) that neither the company | | | | | | nor any partner, proprietor, principal officer or director has any proprietary interest in any account classified solely as that of | | | | | | | a customer. except as follows: | | | | | | | NONE | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ~~ | | | | | | | Signature | | | | | | | fa£Si) ENb | | | | | | | Title | | | | | | | | | | | | | \
NowvPublic | | | | | | | | | | | | | | | | | | | | | | | | | | | | This report** contains (check all applicable boxes)! | | | | | | | ~ (a) Facing page. | | | | | | | ~ (b) Statement of Financial Condition. | | | | | | | ~ (c) Statement of Income {Loss). | | | | | | | ~ ( d) Statement of Cash Flows | | | | | | | ~ (e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietor's Capital. | | | | | | | 0 (f) Statement of Changes in Liabilities Subordinated to Claims of Creditors. | | | | | | | ~ (g) Computation of Net Capital. | | | | | | | 0 (h) Computation for Detennination of Reserve Requirements Pursuant to Rule 15c3-3. | | | | | | | 0 (i) Information Relating to the Possession or Control Requirements Under Rule 15c3-3. | | | | | | | 0 (j) A Reconciliation, including appropriate explanation, of the Computation of Net Capital Under Rule 15c3-J and the | | | | | | | Computation for Determination ofthe Reserve Requirements Under Exhibit A of Rule 15c3-3. | | | | | | | 0 (k) A Reconciliation between the audited and unaudited Statements of Financial Condition with respect to methods of con | | | | | | | solidation. | | | | | | | (2i (I) An Oath or Aftlnnation. | | | | | | | rn (m) A copy of the SIPC Supplemental Report. | | | | | | | 0 (n) A report describing any material inadequacies found to exist or found to have existed since the date of the previous audit. | | | | | | | ~ (o) Management statement regarding compliance with the exemption provisions for SEC Rule l5c3-3 | | | | | | | rn (p) Report of Independent Registered Public Accounting Firm Regarding Rule 15c3-3 Exemption f:leport | | | | | **u** *For conditions of confidential treatment of certain portions of this filing, see sec* lion *240. I* 7 *a-5(e)(3).* {2}------------------------------------------------ *Financial Statements* *December 31, 2020* {3}------------------------------------------------ ### **Dabbah Securities Corp.** #### Table of Contents December 31, 2020 | | PAGE | |---------------------------------------------------------|------| | Report of Independent Registered Public Accounting Firm | 1-2 | | Statement of Financial Condition | 3 | | Statement of Operations | 4 | | Statement of Changes in Stockholder's Equity | 5 | | Statement of Cash Flows | 6 | | Notes to Financial Statements | 7-10 | #### SUPPLEMENTARY INFORMATION | Computations of Net Capital Under Rule 15c3-1 of the Securities and | | |---------------------------------------------------------------------|----| | Exchange Commission | 11 | {4}------------------------------------------------ # Weisberg, Mole, ~ Krantz & Goldfarb, LLP **Certified Public Accountants** #### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Board of Directors of Dabbah Securities Corp. #### **Opinion on the Financial Statements** We have audited the accompanying statement of financial condition of Dabbah Securities Corp. as of December 31, 2020, and the related statements of operations, changes in stockholder's equity, and cash flows for the year then ended and the related notes and schedule ( collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of Dabbah Securities Corp. as of December 31, 2020 and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. #### **Basis for Opinion** These financial statements are the responsibility of Dab bah Securities Corp.' s management. Our responsibility is to express an opinion on Dabbah Securities Corp.' 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 Dabbah Securities Corp. 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 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. {5}------------------------------------------------ #### **Supplemental Information** The Computation of Net Capital on page 11 has been subjected to audit procedures performed in conjunction with the audit of Dab bah Securities Corp.' s financial statements. The supplemental information is the responsibility ofDabbah Securities Corp.'s management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with 17 C.F .R. §240. l 7a-5 and the regulations under the Commodity Exchange Act. In our opinion, the Computation of Net Capital is fairly stated, in all material respects, in relation to the financial statements as a whole. We have served as the Dab bah Securities Corp.' s auditor since 2009. Woodbury, New York February 12, 2021 {6}------------------------------------------------ #### STATEMENT OF FINANCIAL CONDITION #### December 31, 2020 #### ASSETS | Cash | | 4,223 | |------------------------------------------------------------------------------------|----|-----------| | Marketable securites | | 1,469,173 | | Due from broker | | 773,521 | | Other assets | | 42,340 | | Furniture, equipment and improvements, net of accumulated depreciation of \$13,239 | | 4,294 | | Total assets | \$ | 2,293,551 | | | | | | LIABILITIES AND STOCKHOLDER'S EQUITY | | | | LIABILITIES | | | | Accounts payable and accrued expenses | \$ | 18,909 | | | | | | Total liabilities | \$ | 18,909 | | COMMITTMENTS & CONTINGENCIES -
none | | | | STOCKHOLDER'S EQUITY | | | | Common stock, no par value; 10,000 shares authorized, | | | | 3,000 shares issued and outstanding | | 59,800 | | Additional paid-in-capital | | 1,010,000 | | Retained earnings | | 1,204,842 | | | | | | Total stockholder's equity | \$ | 2,274,642 | | Total liabilities and stockholder's equity | \$ | 2,293,551 | {7}------------------------------------------------ #### STATEMENT OF OPERATIONS For the Year Ended December 31, 2020 #### REVENUES | Commissions
Trading losses, net of gains
Other income
Interest and dividends | \$
985,164
(140,500)
4,284
29,104 | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------| | Total revenues | \$
878,052 | | EXPENSES | | | Trading expenses and clearing charges
Employee compensation and related
Professional fees
License and registration fees
Communtications & technology
Depreciation
Occupany
Insurance
General, administrative and other | \$
184,816
191,178
95,267
6,416
22,893
5,152
30,000
82,130
178,547 | | Total expenses | \$
796,399 | | Net income | \$
81,653 | {8}------------------------------------------------ #### STATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY For the Year Ended December 31, 2020 | | Shares | Common
Stock | Additional
Paid-In-Capital | Retained
Earnings | | Total
Stockholder's
Equity | |------------------------------|--------|-----------------|-------------------------------|----------------------|----|----------------------------------| | Balance at January 1, 2020 | 3,000 | \$
59,800 | \$
1,010,000 | \$
1,123,189 | \$ | 2,192,989 | | Net income | - | - | - | 81,653 | - | 81,653 | | Balance at December 31, 2020 | 3,000 | \$
59,800 | \$
1,010,000 | \$
1,204,842 | \$ | 2,274,642 | {9}------------------------------------------------ #### STATEMENT OF CASH FLOWS For the Year Ended December 31, 2019 #### CASH FLOWS FROM OPERATING ACTIVITIES | Net income | \$
81,653 | |-------------------------------------------------------------------------------------------------------|----------------| | Adjustments to reconcile net income to net cash provided by | | | operating activities: | | | Trading losses, net of gains | 140,500 | | Depreciation | 5,152 | | Cash flow from changes in assets and liabilities:
Purchases of marketable securities, net of sales | (46,596) | | Increase in due from broker | (122,032) | | Decrease in other assets | 5,375 | | Decrease in accounts payable and accrued expenses | (39,490) | | | | | Total adjustments | (57,091) | | Net cash provided by operating activities | \$
24,562 | | CASH FLOWS FROM INVESTING ACTIVITIES
None | \$ | | | | | CASH FLOWS FROM FINANCING ACTIVITIES
Decrease in due to stockholder | (22,788)
\$ | | Net change in cash | 1,774
\$ | | Cash at beginning of year | 2,449 | | Cash at end of year | 4,223
\$ | | SUPPLEMENTAL CASH FLOW DISCLOSURES: | | | Interest paid | \$ | | Income taxes paid | \$ | *The accompanying notes are an integral part of the financial statements.* {10}------------------------------------------------ December 31, 2020 #### NOTE 1 - NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES #### Nature of Operations Dabbah Securities Corp. (the "Company"), a Delaware corporation, is a broker-dealer registered with the Securities and Exchange Commission ("SEC"), a member of the Financial Industry Regulatory Authority ("FINRA") and an introducing broker registered with the National Futures Association ("NF A"). #### Revenue Recognition The Company's business consists substantially of comm1ss1ons based on customer transactions and income from proprietary trading. Commission revenues and proprietary trading gains and losses are recorded on a trade date basis. The Company believes that, with regards to commission income, 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 risk and rewards of ownership have been transferred to/from the customer. The Company is a non-clearing broker and, accordingly, utilizes a clearing broker on a fully disclosed basis on applicable transactions. #### Use of Estimates and Subsequent Events The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reported period. Actual results could differ from those estimates. The Company has evaluated events and transactions that occurred through February 12, 2021, which is the date the financial statements were available for issuance, for possible disclosure and recognition in the financial statements. #### Cash and Cash Equivalents Cash and cash equivalents include cash on hand, cash in banks, and short-term, highly liquid investments purchased with an original maturity of three months or less. #### Marketable Securities Marketable securities are reflected at the closing price on the day of valuation with resultant unrealized gains or losses reflected in net income for the year. The financial statements reflect realized gains and losses on dispositions of investment securities on a trade date basis. The cost of marketable securities sold is determined on the specific identification method. {11}------------------------------------------------ Notes to Financial Statements December 31, 2020 #### NOTE I -NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES *(continued)* #### Good Faith Deposit At December 31, 2020 the Company maintained Good Faith Deposits totaling approximately \$61,000 with its current clearing/trading firms. The Company's active deposits are invested in U.S Treasury Bills and are included in Due From Broker on the accompanying financial statements. #### Income Taxes The Company has elected to be treated as a Subchapter S Corporation for federal and state purposes and, as a result, will generally not be subject to corporate income taxes. The Company's shareholder is taxed on the Company's income. However, New York City does not recognize S corporation status and, accordingly, local corporation income taxes will continue to be payable by the Company in addition to certain alternative and minimum taxes to various state agencies where applicable. #### Due To/From Broker The Company maintains proprietary trading positions in broker accounts. The balances in these accounts and the related margin balances are reflected as due to/from brokers in the accompanying financial statements. #### NOTE 2 - DUE FROM STOCKHOLDER As of December 31, 2020, the Company's stockholder has received short-term advances amounting to \$4,273. These advances are due on demand without interest. #### NOTE 3 - FURNITURE, EQUIPMENT & IMPROVEMENTS Furniture, equipment and improvements are stated at cost. Depreciation is provided for on the straight-line basis using estimated useful lives. A summary of furniture, equipment and improvements is as follows: | Furniture, equipment & improvements | \$
17,533 | |-------------------------------------|--------------| | Less accumulated depreciation | (13,239) | | Net | \$
4,294 | {12}------------------------------------------------ #### **Dabbah Securities Corp.** Notes to Financial Statements December 31, 2020 #### NOTE 4 - MARKETABLE SECURITIES The Company's investments in marketable securities are held primarily for short-term trading profits and are classified as trading securities and are reflected at fair value. At December 31, 2020 marketable securities consisted of common stocks (\$1,429,205) and mutual funds (\$39,968). Accounting Standards Codification 820, Fair Value Measurements, defines fair value, establishes a framework for measuring fair value, and establishes a fair value hierarchy which prioritizes the inputs to valuation techniques. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market. Valuation techniques that are consistent with the market, income or cost approach, as specified in accordance with professional standards, are used to measure fair value. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: Level 1 - Pricing inputs are unadjusted, quoted prices in active markets for identical assets or liabilities the Company has ability to access. Level 2 - Pricing inputs are quoted prices for similar investments, or inputs that are observable for the asset or liability either directly or indirectly for substantially the full term through corroboration with observable market data. Level 3 - Pricing inputs are unobservable for the asset or liability and rely on management's own assumptions. The unobservable inputs should be developed based on the best information available in the circumstances and may include the Company's own data. Management considers all investments to be valued using Level I inputs. #### NOTE *5* - NET CAPITAL REQUIREMENTS The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (rule 15c3-1), which requires the maintenance of minimum net capital of \$100,000 and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. At December 31, 2020, the Company had net capital of \$1,345,890 which was \$1,245,890 in excess of its required net capital. The Company's aggregate indebtedness to net capital ratio was .0140 to 1. {13}------------------------------------------------ #### **Dabbah Securities Corp.** Notes to Financial Statements December 31, 2020 #### NOTE 6 - REGULATION The Company is registered as a broker-dealer with the SEC. The securities industry in the United States is subject to extensive regulation under both federal and state laws. The SEC is the federal agency responsible for the administration of the federal securities laws. Much of the regulation of broker-dealers has been delegated to self-regulatory organizations, such as the FINRA, which has been designated by the SEC as the Company's primary regulator. These self-regulatory organizations adopt rules, subject to approval by the SEC, that govern the industry and conduct periodic examinations of the Company's operations. The primary purpose of these requirements is to enhance the protection of customer assets. These laws and regulatory requirements subject the Company to standards of solvency with respect to capital requirements, financial reporting requirements, record keeping and business practices. #### NOTE 7 - CUSTOMER PROTECTION RULE The Company had no items reportable as customers' fully paid securities: (1) not in the Company's possession or control as of the audit date (for which instructions to reduce to possession or control had been issued as of the audit date) but for which the required action was not taken by the Company within the time frames specified under Rule l 5c3-3 or (2) for which instructions to reduce to possession or control has not been issued as of the audit date, excluding items arising from "temporary lags which result from normal business operations" as permitted under Rule 15c3-3. The Company is exempt from SEC rule l 5c3-3 pursuant to the exemptive provisions under sub-paragraph (k)(2)(ii). #### NOTE 8 - CREDIT AND OFF-BALANCE SHEET **RISK** The Company receives its commission income from customer transactions on a monthly basis from its clearing brokers and, accordingly, is not exposed to credit risk. At certain times throughout the year the Company may maintain bank account balances in excess of federally insured limits. The Company's clearing broker will require the Company to fulfill the obligation of a customer account that goes into default. The Company monitors customer accounts intraday to mitigate such risk. #### NOTE 9 - NEW ACCOUNTING STANDARDS In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016- 02, *Leases* (Topic 842) and issued subsequent amendments to the initial guidance in September 2017 within 2017-13 (now collectively, Topic 842). Topic 842 requires companies to generally recognize on the balance sheet operating and financing lease liabilities and corresponding right-of-use assets. Topic 842 was effective for the Company's fiscal year ending December 31, 2019. As of December 31, 2020, the Company does not have any leases meeting the criteria of the new accounting standards. {14}------------------------------------------------ *Supplementary Information* {15}------------------------------------------------ #### COMPUTATION OF NET CAPITAL UNDER RULE 15c3-1 OF THE SECURITIES AND EXCHANGE COMMISSION #### As of December 31, 2020 | NET CAPITAL | | |-------------------------------------------------------------------------------------------|-----------------| | Total stockholder's equity | \$
2,274,642 | | Deduct stockholder's equity not allowable for net capital | | | Total stockholder's equity qualified for net capital | \$
2,274,642 | | Additions: none | | | Deductions: | | | Non-allowable assets | \$
(69,134) | | Proprietary charges on commodities | (537,807) | | Total deductions | \$
(606,941) | | Net capital before haircuts on securities positions | \$
1,667,701 | | Haircuts on securities | (321,811) | | Net capital | \$
1,345,890 | | AGGREGATE INDEBTEDNESS | | | Items included in statement of financial condition | | | Accounts payable and accrued expenses | \$
18,909 | | Total aggregate indebtedness | 1s,gm;
\$ | | COMPUTATION OF BASIC NET CAPITAL REQUIREMENTS | | | Minimum net capital required (6 2/3% of aggregate indebtedness) (A) | \$
1,261 | | Minimum dollar net capital requirement for reporting broker or dealer (B) | \$
100,000 | | Net capital requirement (greater of (A) or (B)) | \$
100,000 | | | | | Excess net capital | \$
1,245,890 | | Net capital less 120% of minimum required | \$
1,225,890 | | Ratio: Aggregate indebtedness to net capital | JJI2JO to I | | RECONCILIATION WITH COMPANY'S COMPUTATION | | | (Included in Part II A of Form X-17A-5 as of December 31, 2020) | | | Net capital as reported in Company's Part II A (unaudited) FOCUS report
No differences | \$
1,345,890 | | Net capital per above | \$
1,345,890 | | | | {16}------------------------------------------------ ![](_page_16_Picture_0.jpeg) **Weisberg, Mole, Krantz & Goldfarb, LLP** *Certified Public Accountants* #### **Report of Independent Registered Public Accounting Firm** To The Board of Directors of Dabbah Securities Corp. We have reviewed management's statements, included in the accompanying Statement of Exemption From SEC Rule 15c3-3, in which (1) Dabbah Securities Corp. identified the following provisions of 17 C.F.R. § l 5c3-3(k) under which Dabbah Securities Corp. claimed an exemption from 17 C.F.R. § 240.15c3-3: ((k)(2)(ii)) (the "exemption provisions") and (2) Dabbah Securities Corp. stated that Dabbah Securities Corp. met the identified exemption provisions throughout the most recent fiscal year without exception. Dabbah Securities Corp. '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 Dabbah Securities Corp.'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 opm10n. 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 conditions set forth in paragraph(k)(2)(ii) of Rule l 5c3-3 under the Securities Exchange Act of 1934. Woodbury, New York February 12, 2021 > 185 Crossways Park Drive, Woodbury, New York 11797 • Phone: 516-933-3800 • Fax: 516-933-1060 700 Kinderkamack Rd, Oradell, New Jersey 07649 • Phone: 201-655-6249 • Fax: 201-655-6098 www.weisbergmole.com {17}------------------------------------------------ #### DABBAH SECURITIES CORP. 167 EAST 53RD STREET NEW YORK, NY 10065 Exemption Report Dabbah Securities Corp. 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-S(d)(l) and (4). To the best of its knowledge and belief, the Company states the following: The company claimed an exemption for 17 C.F.R. 240.15c3-3 under the provisions of 17 C.F.R. 240.15c3- **3(K)(2)(ii).** The company met the identified exemption provisions in 17 C.F.R. 240.15c3-3(K)(2)(ii) throughout the most recent fiscal year (December 31, 2020) without exception. Dabbah Securities Corp. I, Steve Dabbah, affirm that, to the best of my knowledge and belief, this Exemption Report is true and correct. By: \_\_ ~ .... ~---~------ Steve Dabbah, President Date; February 12, 2021 {18}------------------------------------------------ ## WMK ·c #### Weisberg, Mole., Krantz & Goldfarb1 LLP **Certified Public Accountants** **Independent Auditors' Report on Internal Control Required by CFTC Regulation 1. 16** To the Board of Directors of Dabbah Securities Corp. In planning and performing our audit of the financial statements and supplemental schedules of Dabbah Securities Corp. (the Company), as of and for the year ended December 31, 2020, in accordance with auditing standards generally accepted in the United States of America, we considered the Company's internal control over financial reporting (internal control) as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Accordingly, we do not express an opinion on the effectiveness of the Company's internal control. As required by Regulation 1.16 of the Commodities Futures Trading Commission (CFTC), we have made a study of the practices and procedures followed by the Company including consideration of control activities for safeguarding customer and firm assets. This study included tests of such practices and procedures that we considered relevant to the objectives stated in Regulation 1.16 in making the following: l. The periodic computations of the minimal financial requirements pursuant to Regulation 1.17. The management of the Company is responsible for establishing and maintaining internal control and the practices and procedures referred to in the preceding paragraph. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of controls and of the practices and procedures referred to in the preceding paragraph and to assess whether those practices and procedures can be expected to achieve the CFTC's previously mentioned objectives. Two of the objectives of internal control and the practices and procedures are to provide management with reasonable but not absolute assurance that assets for which the Company has responsibility are safeguarded against loss from unauthorized use or disposition and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of financial statements in conformity with generally accepted accounting principles. Regulation 1.16( d)(2) lists additional objectives of the practices and procedures listed in the preceding paragraphs. {19}------------------------------------------------ Because of inherent limitations in internal control and the practices and procedures referred to above, error or fraud may occur and not be detected. Also, projection of any evaluation of them to future periods is subject to the risk that they may become inadequate because of changes in conditions or that the effectiveness of their design and operation may deteriorate. A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the nonnal course of perfonning their assigned functions, to prevent or detect and correct misstatements on a timely basis. A significant deficiency is a deficiency, or combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the company's financial statements will not be prevented or detected and corrected on a timely basis. Our consideration of internal control was for the limited purpose described above would not necessarily identify all deficiencies in internal control that might be material weaknesses. We did not identify any deficiencies in internal control and control activities for safeguarding securities that we considered to be material weaknesses, as defined above. We understand that practices and procedures that accomplish the objectives referred to above are considered by the CFTC to be adequate for its purposes in accordance with the Commodity Exchange Act, and related regulations, and that practices and procedures that do not accomplish such objectives in all material respects indicate a material inadequacy for such purposes. Based on this understanding and on our study, we believe that the Company's practices and procedures, as described herein, were adequate at December 31, 2020, to meet the CFTC's objectives. This report recognizes that it is not practical in an organization the size of Dab bah Securities Corp. to achieve all the divisions of duties and crosschecks generally included in an internal control environment and that alternatively, greater reliance must be placed on surveillance and direct involvement by management. This report is intended solely for the information and use of Management, the CFTC and other agencies such as the National Futures Association ("NFA") which rely on Regulation 1.16 of the CFTC in their regulation of registered brokers and dealers and introducing brokers, and is not intended to be and should not be used by anyone other than these specified parties. Woodbury, New York February 12, 2021 {20}------------------------------------------------ ## WMK C #### Weisberg, Mole, Krantz & Goldfarb, LLP **Certified Public Accountants** #### **REPORT OF INDEPENDENT PUBLIC ACCOUNTING FIRM ON APPL YING AGREEDUPONPROCEDURES** To the Board of Directors ofDabbah Securities Corp. In accordance with Rule l 7a-5(e)(4) under the Secwities Exchange Act of 1934 and with the SIPC Series 600 Rules, we have performed the procedures enumerated below, which were agreed to by Dabbah Securities Corp. and the Securities Investor Protection Corporation (SIPC) with respect to the accompanying General Assessment Reconciliation (Form SIPC-7) of Dabbah Securities Corp. for the year ended December 31, 2020, solely to assist you and SIPC in evaluating Dabbah Securities Corp.'s compliance with the applicable instructions of the General Assessment Reconciliation (F onn SIPC-7). Dabbah Securities Corp.' s management is responsible for Dab bah Securities Corp.' s compliance with those requirements. 'This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the Public Company Accounting Oversight Board (United States). The sufficiency of these procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures we performed and our findings are as follows: - 1) Compared the listed assessment payments in Form SIPC-7 with respective cash disbursement records entries, noting no differences; - 2) Compared the Total Revenue amount reported on the Annual Audited Report Form X-17A-5 Part III for the year ended December 31, 2020 with the Total Revenue amount reported in Form SIPC-7 for the year ended December 31, 2020, noting no differences; - 3) Compared any adjustments reported in Form SIPC-7 with supporting schedules and working papers, noting no differences; - 4) Recalculated the arithmetical accuracy of the calculations reflected in Form SIPC-7 and in the related schedules and working papers supporting the adjustments, noting no differences; and - *5)* Compared the amount of any overpayment applied to the current assessment with the Form SIPC-7 on which it was originally computed, noting no differences. We were not engaged to, and did not conduct an examination, the objective of which would be the expression of an opinion on compliance with the applicable instructions of the F onn SIPC-7. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report is intended solely for the information and use of the specified parties listed above and is not intended to be and should not be used by anyone other than these specified parties. *W~,i,A./~j* I~ *i* &~>Lu> Woodbury, New York February 12, 2021 185 Crossways Park Drive, Woodbury, NY 11797 • Phone: 516-933-3800 • Fax: 516-933-1060 700 Kinderkamack Rd, Oradell, New Jersey 07649 • Phone: 201-655-6249 • Fax: 201-655-6098 www.weisbergmole.com {21}------------------------------------------------ | SIPC-7 | |----------------| | (36-REV 12/18) | #### SECURITIES INVESTOR PROTECTION CORPORATION P.O. Box 92185 Washington, D.C. 20090-2185 202-371-8300 | SIPC-7 | | |----------------|--| | (36-REV 12/18) | | **A.** #### For the fiscal year ended Dec 31, **2020** (Read carefully the instructions In your Working Copy before completing this Form) General Assessment Reconciliation #### TO BE FILED BY ALL SIPC MEMBERS WITH FISCAL YEAR ENDINGS 1. Name of Member, address, Designated Examining Authority, 1934 Act registration no. and month in which fiscal year ends for purposes of the audit requirement ol SEC Rule 17a-5: >- | | | = | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------|-----------| | 7
1842634 -
FINRA DEC | Note: If any of lhe information shown on the
mailing label requires correction, please e-mall ca
any corrections to form@sipc.org and so | | | Dabbah Securities Corp | indicate on the form tiled. | z
- | | 167 East 63rd Street | and telephone number of person lo
Name | a:
=-= | | INewYork,N'f10~7405 | contact respecting this form. | Q | | | __J Steve Dabbah 212 983-5744 i: | | | 2. A. General Assessment (item 2e from page 2)
8. Less payment made with SIPC-6 liled (exclude Interest)
July 29, 2020 | s
278
45 | | | Date Paid | | | | C. Less prior overpayment applied | | | | O. Assessment balance due or (overpayment) | 233 | | | __
E. Interest computed on late payment (see instruction E) for
days at 20% per annum | | | | F. Total assessment balance and interest due (or overpayment carried forward) | s. ____ 2_3_3 _____ _ | | | --,I"'
J the box
G. PAYMENT:
Check malled to P.O. Boxl.!f Funds Wlred0
ACHO
s ____ C7! ______ '-'V_:::-~J
Total (must be same as F above)
________ | 0
,
-. 3 3.A-/~:ib,
;2,/
C:::b!_ ! :!.:!.-- | | | \$(
H. Overpayment carried forward | _ | | 3. Subsidiaries {S) and predecessors (P) included in this form (give name and 1934 Act registration number): | The SIPC member submitting this form and the
person by whom it Is executed represent thereby
lhat all Information contained herein Is true, correct | Dabbah Securities Corp. | |-----------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------| | and complete. | | | J~blLVA0-1
20'2L_.
Dated thed_ day of | (AIUhorized Slgnaldlllt
fttl6u£Nt | | | (Tide) | This form and the assessment payment Is due 60 days after the end of the llscal year. Retain the Working Copy of Ibis form for a period of not less than 6 years, the latest 2 years In an easily accessible place. | :=
w | l5 Dates:
Postmarked | Received | Reviewed | | |--------------|-------------------------------|----------|--------------------------|-------------------------| | w | ;; Calculations __
_ | | __
Documentation
_ | __
_
Forward Copy | | a:
u
D | Exceptions: | | | | | | en Disposition of exceptions: | | | | {22}------------------------------------------------ #### DETERMINATION OF "SIPC NET OPERATING REVENUES" **AND GENERAL ASSESSMENT** | | Amounts for the fiscal period
beginning 01,01.r.z020
and ending 12'3312fJ2Q | |-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------| | Hem No.
2a. Total revenue (FOCUS Line 12/Part IIA line 9, Code 403D) | ---
__
Eliminate cents
\$
87_8 __ ,0_5_1 | | 2b. Additions:
(1} Total revenues from the securities business of subsidiaries (except foreign subsidiaries) and
predecessors not included above. | | | (2) Net toss from principal transacUons in securities in trading accounts. | 30,122 | | (3) Net loss from principal transactions in commodities In trading accounts. | 110,378 | | (4) Interest and dividend expense deducted in delermining item 2a. | | | (5) Net loss from management of or participation in the underwriting or distribution of securities. | | | (6) Expenses other than advertising, printing, registration lees and legal lees deducted in determining net
profit from management of or participation in underwriting or distribution of securities. | | | (7) Net loss frnm securities in investment accounts. | | | Total additions | 140,500 | | 2c. Deductions:
(1) Revenues from the distribution of shares of a registered open end investment company or unit
investment trust, from the sale of variable annuities, trom the business of Insurance. from investment
advisory services rendered to registered investment companies or insurance company separate
accounts, and from transactions in security futures products. | 1,986
707,308 | | {2) Revenues from commodity transactions. | | | (3) Commissions, floor brokerage and clearance paid to other SIPC members in connection with
securities transactions. | 123,848 | | (4) Reimbursements tor postage in co11nection with proxy solicltalion. | | | (5) Net gain from securities in investment accounts. | | | (6) 100% of commissions and markups earned from transactions in (i) certificates of deposit and
(ii) Treasury bllls1 bankers acceptances or commercial paper that mature nine months or less
from Issuance date. | | | (7) Direct expenses of printing advertising and legal fees incurred In connection with other revenue
related to the securities business {revenue defined by Section 16(9)(L) of the Act). | | | (8) Other revenue not related either directly or indirectly to the securities business.
(See Instruction C): | | | (Deductions in excess of \$100,000 require documentation) | | | (9) {i) Total interest and dividend expense (FOCUS Line 22/PART HA line 13,
__________ _
Code 4075 plus line 2b(4) above) but not in excess
of total interest and dividend income.
\$. | | | ________
(ii) 40% of margin interest earned on customers securities
\$
_
accounts (40% of FOCUS line 5, Code 3960). | | | Enter the greater of line (i) or (ii) | | | Total deductions | 833,142 | | 2d. SIPC Net Operating Revenues | 185,409
\$=-====a==== | | 2e. General Assessment@ .0015 | 278
\$·========= | | | (to page 1, line 2.A.) | Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.