AtlasClear (ATCH) Emerging Growth Conference 92 summary

Strategic platform development

• Building a technology-enabled platform to modernize trading, clearing, settlement, and banking for emerging financial institutions and fintechs.

• Platform integrates trading, clearing, settlement, and banking, with pending regulatory approvals for banking and investment banking functions.

• Recent agreement to acquire Dawson James Securities to expand investment banking and placement agent capabilities, pending FINRA approval.

• Formal application filed with the Fed to acquire Commercial Bancorp (Farmers State Bank), currently under review.

• Three revenue layers: core clearing (operational), banking (pending Fed approval), and capital markets (pending FINRA approval).

Financial performance and growth

• Current combined 12-month trailing run rate is about $45 million in revenue, with potential for further growth through synergies and new revenue streams.

• Five correspondent clearing firms signed onto the Wilson-Davis platform, with Dawson James as the first major integration post-technology upgrade.

• Paid off over 95% of debt from the Wilson Davis acquisition; stockholders' equity improved from negative $38 million to positive $21 million after $20 million in new financing.

• Financially stable with no immediate need for additional capital, but future fundraising anticipated to support further growth and onboarding.

Regulatory and operational updates

• Awaiting SEC ruling in June on a rule proposal affecting trading price minimums; internal expectation for a decision but timing uncertain.

• Fed application for bank acquisition is in process, with ongoing engagement but no formal comment period.

• Robust pipeline of potential new correspondent clearing agreements, with ongoing onboarding and significant institutional interest.

• Wilson-Davis has undergone major changes in culture, technology, and management to support scaling and growth.