# DAM CAPITAL (USA) INC. X-17A-5 (2026-05-07) — Broker-dealer annual report - Company: DAM CAPITAL (USA) INC. - Form: X-17A-5 - Filed: 2026-05-07 - Period: 2026-03-31 - Accession: 0001499647-26-000001 - CIK: 1499647 - File #: 8-68685 - Type: Broker-dealer - Material weakness: No - Auditor: Mercurius & Associates LLP - Auditor location: New Delhi, K7 - Contact: Frederic Obsbaum - Phone: 212-897-1694 - Email: obsbaum@integrated.solutions - Website: integrated.solutions - Signed by: Frederic Obsbaum (CFO and Financial and Operations Principal) Original filing: https://www.sec.gov/Archives/edgar/data/1499647/000149964726000001/dam26s.pdf --- {0}------------------------------------------------ #### UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ## ANNUAL REPORTS FORM X-17A-5 PART III | OMB APPROVAL | | | | |--------------------------|--|--|--| | | | | | | OMB Number: 3235-0123 | | | | | Expires: Nov. 30, 2026 | | | | | Estimated average burden | | | | | hours per response: 12 | | | | | | | | | SEC FILE NUMBER 8- 68685 FACING PAGE Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 FILING FOR THE PERIOD BEGINNING 04/01/25 MM/DD/Y Y ## A. REGISTRANT IDENTIFICATION # NAME OF FIRM: DAM Capital (USA) Inc. TYPE OF REGISTRANT (check all applicable boxes): മ Broker-dealer □ Check here if respondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) ## 7000 West Palmetto Park Road | | (No. and Street) | | | | |----------------------------------------------|--------------------------------|------------------------------|--|--| | Boca Raton | 1 | 33433 | | | | (City) | (State) | (Zip Code) | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | Fredric Obsbaum | (212) 897-1694 | obsbaum@integrated.solutions | | | | (Name) | (Area Code - Telephone Number) | (Email Address) | | | | B. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing\* ## Mercurius & Associates LLP | (Name - if individual, state last, first, and middle name) | | | | | | | |------------------------------------------------------------|--------|---------|--------------------------------------------|--|--|--| | A94/8 Wazripur Industrial Area Main Ring Rd New-Delhi | | India | 110052 | | | | | (Address) | (City) | (State) | (Zip Code) | | | | | 02/10/2009 | | 3223 | | | | | | (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}------------------------------------------------ #### **DAM CAPITAL (USA), INC. (A Wholly Owned Subsidiary of DAM Capital Advisors Limited) As of March 31, 2026** **\* \* \* \* \* \*** {2}------------------------------------------------ #### AFFIRMATION I, Fredric Obsbaum , swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to DAM Capital (USA) Inc. as of 03/31/26 , is true and correct. I further swear (or affirm) that neither the company nor any partner, officer, director, or eqnivalent person, as the case may be, has any proprietary interest in any account classified solely as that of a customer. **CFO/Fl NOP** Title {3}------------------------------------------------ ### This filing\*\* contains (check all applicable boxes): - 区 (a) Statement of financial condition. - 🇿 (b) Notes to unconsolidated or consolidated statement of financial condition, as applicable. - □ (c) Statement of income (loss) or, if there is other comprehensive income in the period(s) presented, a statement of comprehensive income (as defined in § 210.1-02 of Regulation S-X). - □ (d) Statement of cash flows. - □ (e) Statement of changes in stockholders' or partners' or sole proprietor's equity, as applicable. - □ (f) Statement of changes in liabilities subordinated to claims of creditors. - □ (g) Notes to unconsolidated or consolidated financial statements,, as applicable. - □ (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. - □ (i) Computation of tangible net worth under 17 CFR 240.18a-2. - □ (i) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - = (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable. - = (1) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. - □ (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - = (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable. - Q (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist. - □ (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - 四 (q) Oath or affirmation in accordance with 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable. - □ (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - □ (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - 四 (t) Independent public accountant's report based on an examination of financial condition. - □ (u) Independent public accountant's report based on an examination of the financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - [ (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - | (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - = (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-le or 17 CFR 240.17a-12, as applicable. - | (y) Report describing any material inadequacies found to exist or found to have existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). - □ (z) Other: \*\* To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(0)(3) or 17 CFR 240.18a-7(d)(2), as applicable. {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) **MERCURIUS** & **ASSOCIATES LLP** **+91 11 4559 6689** **info@masllp.com** **www.masllp.com** 1,.-' #### Report of the Independent Registered Public Accounting Firm To the Stockholder **of DAM Capital (USA) Inc.** #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of **DAM Capital (USA) Inc.** (the "Company") as of March 31, 2026 and related notes to the statement (collectively referred to as the "financial statement"). In our opinion, the financial statement present fairly, in all material respect, the financial position of the Company as of March 31, 2026 in conformity with accounting principles generally accepted in the United States of America. #### **Basis for Opinion** The financial statement is the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statement based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the statement of financial condition 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 statement. 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 statement. We believe that our audit of the financial statement provide a reasonable basis for our opinion. ~ *J* ~ *L,Lf* **Mercurius** & **Associates LLP** We have served as the Company's Auditor since 2020. New Delhi, India May 06, 2026 ![](_page_4_Picture_16.jpeg) LLPIN: AAG-1471 A-94/8, Wazirpur Industrial Area New Delhi-110052, India {5}------------------------------------------------ ## **Statement of Financial Condition March 31, 2026** | Assets
Cash and cash equivalents
Due from Parent
Deferred tax asset
Other assets | \$
669,920
21,715
1,700
12,071 | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------| | Total assets | \$
705,406 | | Liabilities and Stockholder's Equity
Liabilities:
Accrued expenses and other liabilities
Income tax payable
Total liabilities | \$
9,509
1,600
11,109 | | Stockholder's equity:
Common stock (\$.01 par value; 60,000,000 shares authorized,
issued and outstanding)
Retained earnings
Total stockholder's equity | 600,000
94,297
694,297 | | Total liabilities and stockholder's equity | \$
705,406 | {6}------------------------------------------------ ## **Notes to Financial Statements For the Year Ended March 31, 2026** #### **1. Organization** DAM Capital (USA), Inc. (the "Company"), is a wholly owned subsidiary of DAM Capital Advisors Limited ("the Parent"). The Company is a broker-dealer registered with the Securities and Exchange Commission (the "SEC") and is a member of the Financial Industry Regulatory Authority ("FINRA"). The Company's principal business activity is brokering transactions in Indian equities for U.S. institutional clients under SEC Rule 15a-6(a)(3). The customers of the Company transact their business on a delivery versus payment basis with settlement of the transactions facilitated by the Parent in India for securities traded in Indian stock markets. #### **2. Significant Accounting Policies** #### **Basis of Presentation** The Company's statement of financial condition was prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"). #### **Use of Estimates** In preparing the financial statements, management makes estimates and assumptions that may affect the reported amounts. Actual results could differ from these estimates. #### **Cash** Cash equivalents include a money market mutual fund which is readily convertible into cash. #### **Transfer Pricing Income** The Company receives fees from the Parent for performing sales and marketing functions on behalf of the Parent in order to attract institutional customers. The fees are based on expenses incurred by the Company in relation to the marketing activities such as compensation and benefits, professional services, occupancy, travel and other operating costs, plus a transfer pricing agreement profit factor of 7%. #### **Income Taxes** Deferred tax assets and liabilities are recognized for the future tax effect of differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period that includes the enactment date. In the event it is more likely than not that a deferred tax asset will not be realized, a valuation allowance is recorded. In December 2023, the FASB issued ASU 2023-09 which amends the disclosure requirements for income taxes. The amendments require SEC-registered entities such as the Company to disclose specific categories in the income tax rate reconciliation, presented both as percentages and reporting currency amounts. The amended guidance is effective for the Company on April 1, 2025. {7}------------------------------------------------ ## **Notes to Financial Statements For the Year Ended March 31, 2026** #### **2. Significant Accounting Policies** #### **Income Taxes** The Company applies a single comprehensive model for how a company should recognize, measure, present and disclose in its financial statements uncertain tax positions that the company has taken or expects to take on its tax returns. Income tax expense is based on pre-tax accounting income, including adjustments made for the recognition or derecognition related to uncertain tax positions. #### Transfer Pricing Income The Company provides execution and brokerage services for transactions between its U.S. institutional investors and its Parent, DAM Capital Advisors Limited, in accordance with SEC Rule 15a-6(a)(3). Pursuant to a Brokerage Service Agreement between the Company and DAM Capital Advisors Limited, the Company provides execution, marketing and client relationship services to institutional customers in the purchase and sales of foreign securities. This represents the only performance obligation which is satisfied over time as the services are provided. #### Contract Assets and Liabilities Account receivables arise when the Company has an unconditional right to receive payment under a contract with a customer and are derecognized when the cash is received. There was an account receivable on April 1, 2025, in the amount of \$22,236 and no contract assets or liabilities. As of March 31, 2026, there was an account receivable of \$21,715 and no contract assets or liabilities. #### Allowance for Credit Losses The Company follows ASC Topic 326, Financial Instruments – Credit Losses ("ASC 326"). ASC 326 impacts the impairment model for certain financial assets by requiring a current expected credit loss ("CECL") methodology to estimate expected credit losses over the entire life of the financial asset. An allowance for credit losses may be based on the Company's expectation of the collectability of its receivables utilizing the CECL framework. The Company considers factors such as historical experience, credit quality, age of balances and current and future economic conditions that may affect the Company's expectation of collectability in determining the allowance for credit losses. The Company's expectation is that the credit risk associated with its receivables is not significant. Accordingly, the Company has not provided an allowance for credit losses at March 31, 2026. #### **3. Income Taxes** Deferred income taxes are provided for the effects of temporary differences between the tax basis of an asset or liability and its reported amount in the Statement of Financial Condition. As of March 31, 2026, the Company has a deferred tax asset of \$1,700, recorded in the accompanying statement of financial condition and is a result of temporary differences primarily related to amortization of organization costs. The Company has determined that it is more likely than not that the deferred tax asset will be realized and therefore there is no valuation allowance against the deferred tax asset. {8}------------------------------------------------ ## **Notes to Financial Statements For the Year Ended March 31, 2026** #### **3. Income Tax (continued)** Based upon the Company's review of its federal, state, local income tax returns and tax filing positions, the Company determined no unrecognized tax benefits for uncertain tax positions were required to be recorded, and as such, there was no allowance recorded for uncertain tax positions for the Company's open tax years. In addition, the Company does not believe that it has any tax positions for which it is reasonably possible that it will be required to record significant amounts of unrecognized tax benefits within the next twelve months. #### **4. Concentration of Credit Risk** In the normal course of business, the Company's activities involve transactions with the Parent. These activities may expose the Company to risk in the event the Parent is unable to fulfill its contractual obligations. The Company maintains its cash balances at a major financial institution. It also maintains cash in a mutual fund money market account. The Company does not believe that these amounts are exposed to significant risk. #### **5. Regulatory Requirements** The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (SEC Rule 15c3-1) ("the Rule") under the Securities Exchange Act of 1934. The Company has elected to use the alternative method permitted by the Rule that requires the Company maintain minimum net capital, as defined, shall not be less than \$250,000. At March 31, 2026, the Company had net capital of \$646,339 which was \$396,339 in excess of its required minimum net capital of \$250,000. The Company is exempt from the provisions of Rule 15c3-3 under the Securities Exchange Act of 1934 as the Company's activities are limited to those set forth in the condition for exemption appearing in paragraph (k)(2)(i). #### **6. Related Party Transactions** The Company maintains a service level agreement with the Parent whereby the Company distributes research on its behalf. The Parent compensates the Company by paying its expenses plus a markup of 7%. #### **7. Commitments and Contingencies** In the ordinary course of business, the company may have commitments and contingencies. At March 31, 2026, none warranted recognition or disclosure. {9}------------------------------------------------ ## **Notes to Financial Statements For the Year Ended March 31, 2026** #### **8. Segment Reporting** The Company is engaged in a single line of business as a securities broker-dealer, which is comprised of several classes of services, including marketing of affiliated funds, agency transactions, investment banking and investment advisory businesses. The Company has identified its President as the chief operating decision maker ("CODM") who uses net income to evaluate the results of the business, predominantly in the forecasting process, to manage the Company. Additionally, the CODM uses excess net capital (see Note 5), which is not a measure of profit and loss, to make operational decisions while maintaining capital adequacy, such as whether to reinvest profits or make distributions. The Company's operations constitute a single operating segment and therefore, a single reportable segment, because the CODM manages the business activities using information of the Company as a whole. The accounting policies used to measure profit and loss of the segment are the same as those described in the summary of significant accounting policies. #### **9. Subsequent Events** The Company has evaluated subsequent events up to the date on which the financial statements are issued. The Company's evaluation noted no subsequent events that require adjustment to, or disclosure in, these financial statements. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.