AtlasClear Holdings, Inc. The ThinkEquity Conference

Can you hear me? Yep.

Sorry, it is a bit down. Normally, I do not have a mic. They do not usually put it on me because I normally scare the living bejesus out of people because I am a little loud. If I get too loud, let me know. I am Craig Ridenhour. I am the President of AtlasClear Holdings, publicly traded company on the NYSE American, ATCH. John Schaible will be coming up momentarily. He is my business partner. He is the Executive Chairman of the company. We are thrilled to have you here today. We really appreciate the opportunity by ThinkEquity to present here again, and we think we have a wonderful opportunity that we are excited to run through this presentation.

Last year and in other presentations we have done, sometimes the presentation goes on, and then we do not have a lot of time for Q&A, so we are going to run through this fairly quickly so we can get to Q&A and what you all want to know. Disclaimer, any attorneys in here, so I can skip this? Good. What we are building in AtlasClear Holdings, because sometimes it sounds complex, is we are building a platform that is the connective tissue, as it says, of capital markets. What that really means is that we are building the infrastructure to custody, clear, and settle assets, bank those assets, and eventually do digital assets and blockchain with them as the financial markets evolve. That is what we are building. We are well on our way.

We're making significant progress, but at the core of what we're doing is we're building a scalable platform that's going to be used by a segment of the market that I'll get into in a moment. The investment highlights, I'm going to go over here. Regulated infrastructure for the next generation of financial institutions. Trade, clear, settle, bank. What we've already demonstrated, we've had strong revenue growth, up 85% this last fiscal year, or fiscal year end of June. 85%, we did $20.1 million versus the prior year. Next phase of growth under contract. We've got a number of new clients coming on board, which will fuel that growth. Our balance sheet is well-capitalized. We're expanding our platform as we've announced some other acquisitions. Then we're definitely a discount to established peers. We are not going to say that we're the same as our established peers.

They're larger. They have bigger balance sheets. They're more well-established. But we certainly have the infrastructure, the licensing, and the growth in front of us to warrant higher multiples, we believe. Trade, clear, settle, bank. This is an important part. It's still in blue here. Trade, Ark Financial, Dawson James, investment firm placement, step one. Well, that step one was actually just completed last night. We announced it. We had a press release out this morning for those that didn't see it. We actually have officially signed the documents and are acquiring Dawson James, which is under Ark Financial. That gives us the ability from an investment firm for placement agent underwriting. Clear, settle, that's AtlasClearing. Who's heard of Wilson-Davis & Co. in here before? Okay. We bought Wilson-Davis & Co. We renamed them recently AtlasClearing.

We did that because Wilson-Davis & Co., well-established firm, but we're expanding AtlasClearing beyond what Wilson-Davis & Co. traditionally had done. We wanted that to be reflective. We're already doing those things, correspondent clearing, custody, and settlement, and then bank. We've already announced and are in the process to acquire Commercial Bancorp of Wyoming, which is a Fed member bank, 115-year-old charter. Very good asset, potentially, provided we get the regulatory approval. What are we really focused on? We're focused on an underserved market. That underserved market, we say, are financial institutions, broker-dealers, RIAs, things like that are $1 billion in revenue and less. $1 billion is a large number. But when you're talking about the Pershings and Fidelity worlds that are correspondent clearing, that doesn't move the needle a lot for them. For us, it does. We're focused on that market because there's an opportunity there to come in and provide a platform that they don't have access to right now.

Integrated custody and banking, lower cost clearing, digital asset capabilities, faster onboarding. You can see the strategic infrastructure build-out, integrated clearing, plus the digital assets, plus Fed member banking equals a scalable platform. Built for the mid-market gap. There's a large number of thousands of broker-dealers out there, but there's only 24, 25 correspondent clearing broker-dealers right now, approximately, give or take. We're one of those. Larger clearing firms, the Pershings, Fidelities, all great firms, but they're built around their largest clients. Minimums and pricing favor scale, which small broker-dealers can't meet, and longer onboarding queues. AtlasClearing, barriers to entry you already met. We've been in business since 1968. We're exceeding our net capital by a significant amount now.

We're multi-client, meaning we're bringing more correspondents on, and we're increasing our onboarding abilities because we've brought in talent to meet the demand that we have. Clearing in-house, significant net capital requirements, clearinghouse, and compliance burden. All this says right here is we meet the necessary requirements to build and scale our business. Team built to scale, Robinhood, Axos, Morgan Stanley. What that really means is we've brought in some executives from those areas to help us meet the demand that's in front of us right now. I'm going to run through the financial highlights. We just did our K, released it last month. We had an exceptional year. We will have our Q out sometime mid-November. We'll look to file timely, and we're on track for that. We had year-over-year revenue growth 85%, total assets $71.2, up 17% from same time year before.

Cash and cash equivalents, stockholder equity. Everything's going in the right direction and has really turned around from when we originally went through the de-SPAC in 2024 to acquire Wilson-Davis & Co. I do want to focus on this correspondent agreements. Six signed. We are focused on scaling the correspondent business, meaning introducing broker-dealers that we bring into the platform. So far, we've added six. When we originally started and acquired Wilson-Davis & Co., they had one. So we've added six more. We'll be able to articulate what that means from a revenue standpoint over the next couple of months as they get fully on board and operating. Fiscal revenue line. Biggest thing on this I just want to point out is when we originally bought Wilson-Davis & Co., Wilson-Davis & Co. primarily just focused, everyone knew it as the microcap company.

You brought your microcaps, your hard-to-execute securities to them, be it nanocaps, whatever it might be. We take them through a review process and then put it in and execute and liquidate the securities. We're changing that business line now. As you can see here, commissions still drive things, but we're now doing stock loan and stock locate, clearing fees, vetting fees, firm trading gains, interest income. All of these things are expanding and diversifying our revenue base, which helps us long term. We're very excited. How growth compounds, correspondent onboarding, customer assets, stock loan, interest income. These things all come together to expand our revenue lines, and now we're expanding to the point where we're not reliant on one single line of business, which was microcap review and execution. Second consecutive year of positive net income.

Not going to bore you with all the numbers, but all this shows you is that we are doing what we said we would do. We had to go through a really rough de-SPAC. We affectionately refer to it as a street fight for a year and a half, dealing with the toxic debt that we had to put on the books just to get the trade done, and now we're coming out the other side. So we're excited about the direction we're going, and we think we've got a much brighter future than probably most assumed at one point in time. Here again, capital and balance sheet. I do want to focus on stockholders' equity real quick, because shortly after the de-SPAC, June of 2024, we had about $55 million in debt that was deal expenses for the SPAC. That was two actual deal expenses.

That was also toxic debt, penalties we were paying on that debt. We had $55 million in debt, and we had $400,000 in net income, and at our lowest point, we were about negative $40 million in stockholder or shareholder equity. That is completely flipped now. As of this last quarter, June of fiscal year-end, $21.1 million in stockholder equity. So we have had basically a $60 million reversal on that. Take a look at what we are trading right now and our market cap, and you will see why we think we are undervalued. All that being said, down this line, net capital and funding, we are doing all of these things. We are increasing these lines, but this is a big number down here. See that zero? Because we get this all the time, and last year, "What are you using to actually fund your business?" Well, we took in a $20 million financing in October of last year.

We have not taken any more money in since then. But I do want to emphasize to this group and to whoever is watching online, we have not used ATMs, we have not used ELOCs, we have not been in the market selling our stock to generate capital. We have been operating off our capital base from last year, and I think that is very important for people to understand. We believe in where we are going, and we are trying to do the best thing we can for the long-term benefit of the company, and we think we are in a really good position. Well, I get to hand it off to John.