Welcome back, everyone. Next, we have AtlasClear Holdings. It trades on the New York Stock Exchange American under the symbol ATCH and seeks to build a cutting-edge technology-enabled financial services firm. Through proposed acquisitions, it will have the capabilities to deliver a complete and modern platform with the potential to give their prospective clients the flexibility, speed, risk management capabilities, and scale they need to grow. Happy to welcome President Craig Ridenhour and Chairman and CEO John Schaible. Welcome to the conference, gentlemen. Nice to see you today.
Thank you, Anna.
Thank you for having us once again.
All right, the floor is yours.
Nice to see you. Okay. Once again, I'm Craig Ridenhour. I'm the President of AtlasClear Holdings. We've been on a couple of these conferences with emerging growth. We greatly appreciate the opportunity to present today. This is a new deck. It's a new opportunity for us to kind of introduce, now that we've gotten through a lot of rough patches, to present the opportunity that we have in front of us, the target market, and reinforce what we think is an undervalued opportunity for our shareholders and potential shareholders who may actually be signing in today. So for taking the time out of your day, we really appreciate it, and I'll go ahead forward with our presentation. So, as Anna mentioned, we are AtlasClear Holdings. We do trade on the NYSE American under the symbol ATCH. Forward-looking statements for the attorneys on the line.
I'm going to read line by line—no, I'm kidding. I'm not going to do that. I'm actually married to an attorney. I'm not going to do this. This presentation will be available. If anyone really wants to parse through this, they certainly can. So what we're doing at AtlasClear Holdings, we're building the future of financial infrastructure. That's a great title. What does it really mean? Right? Because we get this all the time, and sometimes it's tough to distill down exactly what we do because we're not selling you necessarily a product. We're not doing things that are tangible. Right? What we're doing is we're building the infrastructure of how do you custody, clear, and settle financial products. Okay? And we're going after a market that's underserved. So, as it says here, AtlasClear Holdings, we're developing a technology-enabled financial services platform designed to modernize trading, clearing, settlement, and banking.
What does that mean for all of you out there? It's what you're already doing when you go on your E-Trade accounts. You put in a transaction. You don't think about the actual process of how something's custody, cleared, and settled. How did you just sell your Dell, and how does your cash show up? What we do is the infrastructure for that. And we think we have a huge opportunity there. And as it states here, our mission is to empower small, midsize financial institutions with the same technology, efficiency, and scale as the largest players. Largest players being like the Pershing of the world or Fidelity. If you're a small broker-dealer or a small institution, you have to find a shop or a home where you can custody your client's assets and clear and settle transactions.
It's not as simple as it seems because the larger ones out there really don't want to deal with the smaller broker-dealers, hedge funds, family offices. That's what we're targeting. We think it's a huge opportunity. As it states here, AtlasClear Holdings, key market data. This is as of October 14th. I understand we're down a little bit from here. I will tell you that I don't look at it on a day-to-day basis, nor does John. Our stock price as of October 14th was $0.40, shares outstanding just under 127 million. Market cap a little north of $50 million. Average volume for the last three months as of that date was a little over 58 million daily traded. So we have a lot of liquidity in the stock. We could certainly get into that.
But when I say that I don't look at it on a daily basis because we're not measuring our growth by day-to-day ticks in the stock, I know that it's important for our investors and it's important to us as well. But what we're looking at is the next three, six, 12, 24, 36 months and beyond because we think there's a huge opportunity. And we think when people look back and say, "Boy, I could have bought AtlasClear Holdings at $0.35 or $0.40 or wherever," it won't matter. They'll look at it and say, "What an opportunity that was." So again, that's the key market data as of October 14th. So vision. AtlasClear is building a modern, scalable, and regulated financial infrastructure platform that empowers small institutions, fintechs, and advisors to compete efficiently and securely at scale.
What it says is we aim to be the connective tissue between trading, clearing, settlement, and banking, the backbone for the next generation of financial products. We have, with Wilson-Davis, a correspondent clearing firm that has the full licensing set that we need to do that on the broker-dealer side. We have Commercial Bancorp, which we're going to speak about briefly, which is a Fed member bank out of Wyoming that we have under contract. And so we've got all the pieces necessary to layer in technology and provide a solution for these small broker-dealers who really need it. Investment highlights. We're built for scale, positioned for growth. We have an integrated platform. So we have an integrated financial infrastructure platform spanning trading, clearing, settlement, custody, and eventually banking.
We do not have Commercial Bancorp currently under our hood, but we will begin that process shortly with the Fed to hopefully receive an effective approval. Scalable margins. Fixed cost foundation plus automation equals scalable margins, meaning the footprint we currently have is very scalable. We don't have to add a tremendous amount of overhead and staff in order to scale it and add additional clients, target clients. So it really can allow us for really scalable margins. Strategic acquisitions. Okay? We already acquired Wilson-Davis & Co. out of Salt Lake City last February when we went through the De-SPAC process. That's well documented. So that's operating. It's growing. We've shown that. It's put out really good numbers. We're excited about the quarter we're going to be releasing.
But also, when we get Commercial Bancorp of Wyoming, it creates end-to-end capabilities, meaning we can custody, clear, and settle financial transactions, and we can also provide banking solutions and additional credit. Our target market is underserved financial institutions with modern fintech solutions. What that means is, again, most of these small broker-dealers can't actually get access in to just simply manage their clients' accounts efficiently. They have to do a number of different things, which ultimately cuts into their abilities and their actual ability to manage their clients' assets, which is all they're trying to do. And so their margins actually take a hit because they have to go through multiple solutions. So we think we've got an opportunity to present them with a solution that will really help them accelerate their own businesses. Expert leadership.
I will not steal John's thunder, but we will be going through the executive management of the company and then also the board, and I think it will speak for itself. I will go out and say that I think our board is a little outsized, maybe for the size of our company, and in the industry, knowledge, growth, experience, and successes, you'll see that, but we're excited about that, and then we have plan for growth, positioned to grow in 2026 through organic and acquisition execution, so what we're targeting right now is a large fragment in underserved market. Again, we're focusing on financial services firms with revenues up to $1 billion, which sounds like a big number, but when you talk about in the financial institution space, many institutions are much, much larger than that.
Now, that particular segment of the market up to $1 billion is historically underserved by large clearing services and banks such as Pershing, Fidelity. So we're targeting that market, that small institution space. And the demand is driven by fintech adoption, regulatory modernization, and embedded finance. AtlasClear is uniquely positioned to provide modern infrastructure to correspondent clearing clients, fintech platforms, and banking customers. We really believe we're in a unique situation. Again, institutional clearing, fintech platforms, banking, eventually provide successfully get the Commercial Bancorp acquisition. If we don't, we have alternative plans behind that. And then data services. So we provide analytics and intelligence capabilities. The market problem. Again, I know I keep harping on this, but we get it all the time, right, because they want to understand what we do. There is legacy infrastructure which really limits growth.
So the challenge, financial infrastructure that underpins trading, clearing, and settlement was built decades ago for large institutions, not for the modern digital fast-moving financial ecosystems as we're careening forward now. The key pain points, outdated systems, legacy clearing and custody platforms are slow, manual, and expensive to operate. Fragmented workflows. Clearing, banking, compliance are managed through multiple disconnected providers. High-cost barriers, smaller financial institutions and fintechs can't access the same tools and efficiencies as top-tier banks. Limited innovation. Rigid legacy infrastructure makes it difficult to integrate new fintech technology or digital assets. Operational risk. Manual processes increase compliance risk and reduce transparency. The result, an uneven playing field where small and midsize financial firms struggle to scale or compete profitably. If you look at this slide, the market problem is simply this. There's legacy assets and technology that's out there.
It doesn't mean the big institutions can't meet this over time, but when there are changes in the market, it takes them a long time to make those changes internally. We're small. We're nimble. We can move fast. AtlasClear solution, an integrated scalable financial platform. Our approach, again, just reinforcing we want to modernize automation, data intelligence for trading, clearing, settlement, custody, and banking. Our core advantages, one unified platform, automation-first architecture, real-time data and analytics, scalable foundation. I'm going to highlight that. A fixed cost structure, infrastructure that supports significant volume growth without proportional expense. That's key, and built for the underserved. Empower small and midsize financial institutions with tools once exclusive to large firms. Developing multiple diversified growth drivers. Again, institutional and correspondent clearing, huge opportunity. Fintech and digital platforms. Think of where we're at right now.
I'm not taking a political stance here, but look where we're at with this administration and the forward-thinking they are on digital assets. They are looking to lead the world in digital assets. We feel like we can position ourselves very well with our licensing set and be in a position to really move quickly. Banking and credit expansion. Again, we have to get the approval from the Fed. We have to begin that process. We think we will be successful, but we ultimately will satisfy this particular point, banking credit expansion, either through Commercial Bancorp or Wyoming, which we're going to begin that process here shortly, or other solutions. Technology and data services and retail and emerging channels. So huge opportunity, we believe, for us. And with that, I'm going to hand it over to John Schaible for the back part of this presentation. I hope.
Yes.
Yes.
So I do think with respect to smaller companies and microcap companies, one of the key deterministic factors of success is the leadership and whether or not the team knows what it's doing. We're in financial services and we're in fintech. And in that market, the three pillars are the people, the systems, and the capital. And so I'm very proud to describe our leadership team because I think what we've assembled is world-class. I have been in fintech for the better part of 30 years. I've built and sold multiple fintech companies, built and sold exchanges, brokerage firms, and have enjoyed the process tremendously and look forward to doing it again here. Craig Ridenhour is our President. Craig has been in financial services for the better part of 30 years. He's got particular expertise in wealth management and broker-dealer applications.
Craig is, I think, perhaps the best business development person I've met over the last 30 years. We're very lucky to have him because our number one goal, as I'll describe, is to add customers, and Craig is exceptional at that. Our General Counsel and Chief Financial Officer is Sandip Patel. Previous to joining us, Sandip was at a company called WellCare where he was general counsel. WellCare was acquired by the Soros Fund, and it became one of their best-performing investments. After Sandip helped them monetize that investment, he joined us, and he's been involved in banking and financial services for the better part of 20 years. Our Chief Technology Officer is Ilya Bogdanov. Ilya, previous to us, was at Bank of America, Merrill Lynch, Citigroup, and DoubleClick. Ilya is expert in low-latency, high-frequency trading systems and risk management systems.
Ilya has been working with us for over 15 years. We're fortunate to have Ilya as our Chief Technology Officer. I am perhaps more proud, maybe, of the board of directors we've put together. I think looking at an investment vehicle, especially a microcap one, you want to make sure that the people that are managing it know exactly what they're doing. I've already mentioned myself, Sandip, and Craig, but our additional board members are extremely talented. Steve Carlson, Steve is presently the co-chairman of Magellan. He's also the co-chairman of Marco Polo Securities and the chairman of Roadzen. Previous to joining us, Steve ran emerging markets for Lehman Brothers. He was the president of one of our best competitors, StoneX, StoneX Securities, where he ran clearing, settlement, and trading for them. Having Steve on board with us is a very powerful advocate and a very involved individual.
Tom Hammond, he was formerly the president of ICE Clear. He was formerly the CEO of the Board of Trade Clearing Corporation. Tom has been personally my mentor for the better part of 25 years. I think Tom is one of the foremost experts in clearing, settlement, and trading, and we are very grateful that he's as active and involved as he is. And then finally, we have Bob Keyser. Bob is the newest member of our family. Bob runs Dawson James Securities, which is a regional investment banking firm that is very successful. He also is a managing member of Six Boroughs Capital Management. Through Six Borough, Bob has made, I think, four investments into our enterprise.
He invested a couple of months ago initially and has gone on to invest again and again and again because what he sees is an opportunity to take our company from the microcap space to the macro space, and he's excited to be part of the family, and we're grateful to have him. What we have is, I think, unique in the industry with respect to what we can do with the platform we're building. We have Wilson-Davis & Co., which is an almost 60-year-old correspondent clearing firm, and if you're not familiar with that term, a correspondent clearing firm is a brokerage firm for other brokerage firms. We have brokerage firms that come into us as introducing brokers. We hold their client assets. We run their trades. We provide them risk management.
All of those things allow us to look in full at the data we have in front of us and hopefully help our clients be more successful in their trading activity. We believe that we can marry that correspondent clearing firm with a Federal Reserve member bank and create synergies between the bank and the brokerage firm that are unique. We have under contract Commercial Bancorp of Wyoming. This is a bank that's been alive for over 100 years. It's been a Federal Reserve member for over 60 years. It's incredibly clean. It's incredibly well-run. They do perhaps $1.2 million-$1.3 million a year in revenue with anywhere from $200,000-$400,000 in net income, but their balance sheet is absolutely pristine.
Having the correspondent clearing firm and correctly marrying it with the right technology to a Federal Reserve member bank will put us in a position, we believe, to hold all kinds of new assets and get into product development in a way that our competition, like Craig mentioned, Pershing, Fidelity, et cetera, they can do it, but they simply can't do it as well or as fast as we can. We're proud to discuss our relationship with LockBox. As you'll see from the numbers that we'll be shortly reporting, stock loan is an ever-growing part of our business. LockBox has fintech that is unique to stock loan. It allows us to participate in locates and loans in a way that is more efficient than our competition, and so through LockBox, we've been really driving profits to the bottom line.
And then also Dawson James Securities, as I mentioned. Bob Keyser through Six Boroughs led multiple investments into us. He helped us close the recent $20 million investment. But holistically, the key point here is what we're trying to build, which is a platform that scales. Wilson-Davis is a correspondent clearing firm. It has one introducing brokerage firm today called Glendale Securities. They're a great customer, but we've got this platform where we can plug in additional introducing brokerage firms and become significantly more profitable and have better margins. Dawson James, if we were to secure their full business, would more than double our revenues. We've announced that they're coming on board. They're bringing their business over to us incrementally, which is how it has to happen. We've also announced a third confidential introducing brokerage firm.
We believe throughout 2026, we'll add several introducing brokerage firms and really create scale for our model. I just want to speak briefly on how this whole wheel works. We call it the AtlasClear Value Flywheel. We start at 12 o'clock, which is getting customers, client onboarding. As I mentioned, we have one introducing brokerage firm active today. We have two more that are signed, several more in the hopper. As we add clients to our brokerage firm, we create additional transaction volume. We also accrete additional assets under management. And with those additional assets under management, we can expand our services, in particular lending. So we go through the wheel, more clients, more trades, more services, which gives us more data. And having more data allows us to compile our customers' assets and operate in a fashion that's better risk management through portfolio margin.
And most brokerage firms rely on trades for revenues, but also net interest margin. Are they getting margin loans from their customers? Are they doing stock loan? As we add these customers to our system, we have more transparency into a holistic portfolio where we can measure how we can extend them credit. Having run brokerage firms for the better part of 30 years, it's been my experience that the more you can lend to your customers to buy and sell stock, the better off the whole enterprise does. Having Dell, for example, in our portfolio or Bitcoin in our portfolio gives us perfectly liquid vehicles against which we can lend our customers money to buy more stuff.
As they buy that stuff, we create transaction revenues, we create additional net interest margin, and it increases our margins both with respect to how our profitability is, but also with respect to the more we can lend to our customer base. That reinvestment goes back into the clients, and we create this synergistic wheel of profit. As we'll shortly release our numbers, you will see we are successful thus far in the process. Our growth strategy for next year is relatively simplistic. We bought Wilson-Davis last year at the SPAC, February of 2024. It was a good business. It was marginally profitable. We have been adding customers. We have been adding lines of business, and we've created this client base that is expanding. Our next stop going into next year will be to acquire.
We do plan to grow organically, for sure, because we can grow organically, but we're looking at very selective acquisitions because now that we've cleaned up our balance sheet, which I'll show you in the forward slides, and we have this publicly traded company, and operationally we're very profitable, we will have success in bringing more financial capital to the business, which will allow us to buy perhaps certain brokerage firms, and we're looking very strongly at certain crypto firms to bring into the fold. As we increase our total bandwidth and as we increase our client base, our margins will get better. We are perfectly positioned to scale, and as we scale, we go into the next step, which is product innovation. We have for years been involved in trading and new product development. For smaller firms like us, new products are the key lifeblood for better margins.
We will buy companies next year. We will increase our client base. We will expand into crypto, and then ultimately, we want to expand internationally. As we look at our market set, as Craig described, we're targeting small brokerage firms, small banks, hedge funds, family offices, primarily for the next year in the United States. But if you look outside of the United States, if you go to Latin America, for example, you find financial companies, banks, brokerage firms whose product mix is almost exactly aligned with the U.S., but because they're outside of the United States, the margins involved in helping those companies help their customers get trades are much greater, and so we're growing our business. We're looking at acquisitions. We're looking at new products like crypto, and then we will shortly go international, perhaps sometime in 2027. I do want to discuss our financial status.
As Craig mentioned, we did our De-SPAC February 9th of 2024, and we took only $675,000 out of trust, and we bought a firm for approximately $25 million. And we made that acquisition with convertible notes that were flawless. And if you looked at our stock or you see our stock, the stock got really harmed by these flawless convertible notes. Our year-end, June 30th. If you look back, 2024, June 30th, we had approximately $53 million in debt with approximately $400,000 in operating income. And I think from the perspective of the street, they looked at the balance sheet and they looked at the convertibles, and the consequence we all paid for as shareholders deeply in the stock compression. We have paid off now, the slide's a little dated, more than $45 million in that debt. Our stockholders' equity is up more than $45 million.
Relatively recently, we announced a new financing for $20 million with new convertible debt, but that new debt is so much better than the old debt. I want to spend a minute describing it. The $20 million we brought in was led by Funicular Funds, and Funicular has been one of our best investment partners since inception. They put in again, I think somewhere around $13 million, $10 million in debt and $2.5-$3 million in equity. But that convertible debt is very different than the old convertible debt because the present convertible debt has a floor of $0.75, literally 100% of where the stock is trading today. We also took in $10 million in equity, which had stock and warrants. The warrant strikes at $0.75, which again is 100% above where we're presently trading. We are now well-capitalized. We will be releasing our focus tomorrow.
I expect that we'll have a press release describing that shortly. Our net capital is up somewhere in the neighborhood of 25% from where it was a year ago. Wilson-Davis & Co. is a very profitable firm now. We've been adding lines of business. We've talked about stock loan growth. In July, we did $258,000. In August, $281,000. In September, $400,000, 42% month-over-month increase. You will see also that we've added underwriting. You will see also next year as with these new introducing brokerage firms, Dawson James and the other confidential party start increasing our trade revenue, you'll see very much profit and expanded revenue. So for next year, we do anticipate continued growth in correspondent clearing, continued growth in underwriting, continued growth in stock loan, continued growth in adding introducing brokers. We are now funded properly so we can integrate more of our technology.
And so I think 2026 is going to be an absolutely amazing year for us and our shareholders. Our key milestones. Craig has mentioned how we want to move forward with the bank. We couldn't move forward following the DSPAC because we simply did not have the cash. We do now. So we'll be applying for Federal Reserve approval this quarter. We anticipate Q1 of next year. We'll onboard more introducing brokerage firms. And that strength, the profitability we're delivering, the new financial structure, the balance sheet that we've cleansed, that will put us in the position to launch our technologies and make us even more efficient. So going into quarter three of next year, I think we'll have a fantastic report for all of the shareholders. With that, Anna, I'll turn it over to you.
All right. Thank you, gentlemen. Okay, let's jump in. John, I want to start with you. What are the main drivers behind your target of reaching profitability in 2026, and which milestones should investors be watching for?
It really is, Anna, about scale, adding in more customers to the chassis that we've paid for dearly through the SPAC process, and so for us, getting Dawson James to start integrating, getting the third correspondent clearing firm to start integrating, watch for us to announce additional firms coming in organically, but also we are very focused on growing through acquisition because we have the scale. We can make these acquisitions, and now that we've cleansed our balance sheet and we have this publicly traded company, we think we can make acquisitions that will really ramp us up, so watch for new introducing brokers added and watch for acquisitions.
And Craig, how is the Commercial Bancorp of Wyoming acquisition progressing and what new capabilities will it bring once it's fully integrated?
Sure. Thank you, Anna. We get this often, and people often forget about Commercial Bancorp of Wyoming, which is a key component of what we're doing long term. As we've mentioned, we are eager to now begin the actual formal Federal Reserve approval process. We should begin that in the next 90 days. We're eager to be going on that because once provided we get a successful approval, and we think we will, we've run banks before.
What it allows us to do internally is create an internal ecosystem where we have deposit sweeps of cash from Wilson-Davis clients because Wilson-Davis is not a bank, so it can't hold actual cash, to deposit sweeps over into Commercial Bancorp of Wyoming, and then consequently credit extension back out from Commercial Bancorp to clients of Wilson-Davis who want to borrow and buy securities on margin or various forms of financing.
Additionally, though, once we have a successful approval, if you think go forward with digital assets and where we're at in that cycle, the custody capabilities and our ability to actually get a master Fed account open up a world to us to create better margins, better efficiencies, and really position ourselves so that we're ready to go into the future with the full licensing set that we have combined between Wilson-Davis and ultimately Commercial Bancorp. We won't say it's impossible to replicate, but it's very difficult to replicate the footprint that we will have.
Perfect. Thank you for that. John, back to you. Talk about what differentiates AtlasClear's technology from traditional clearing and banking systems in terms of automation, scalability, and efficiency.
That's difficult to answer, Anna, because we look at our competition, Pershing, Fidelity. These are massive companies with effectively unlimited budgets and extremely talented tech teams. They build good code. I would suggest that we can do it better than them. We've been in low latency, high frequency trading for the better part of 30 years. I will suggest that perhaps in certain ways our technology is better. But to Craig's earlier point, it really isn't necessarily just a technology.
Assuming that we're even equal, it's our ability to move as things change. We are much more flexible. We're much more open. We're able to develop and distribute new products. If you're Bank of New York or Fidelity, to get into new products, it's like a battleship. You have to stop the ship four or five miles in advance of the coast. We don't have to do that. We're in a position where as new products are developed, we can immediately implement it. I'll suggest our technology is at least equal. I'll argue it's better. But even if it's not, when it comes to the bottom line in terms of delivering profitability, we're simply more nimble.
Perfect. And Craig, talk about how you're going to build relationships and gain traction with the smaller financial institutions and the fintechs that you're targeting.
Sure. Absolutely. Well, and I know we're running out of time, so I want to address this. If you look at our management and you look at, for instance, our CEO of Wilson-Davis & Co., a gentleman named Jeff Simon, who we were fortunate enough to be able to bring on board last December and is really leading the charge over there. Combined between all of us, we've got hundreds of years of experience in the markets. Consequently, we have deep relationships and people know of us.
And since we've become capitalized, since we've become more present in the public markets, we've had a lot of institutions actually reaching out to us interested in open clearing relationships. So organically, we can create a pipeline and we have a pipeline. Our biggest limitation, and it's kind of a, I hate to say like a champagne problem, is just human bandwidth right now, right? We can only take so much business on this moment, but as we expand our net capital base, as we expand some of our staff, not significantly because we can scale, we think the world's wide open for us and we're very excited.
Perfect. Well, Craig, John, thank you for your time. We've got lots more questions for you, but we'll send them to you so you can follow up on your own. But we appreciate you being on our conference today again.
Thank you, Anna. Really appreciate it.
All right. Have fun in New York, everyone. We'll be right back.
Yeah. Take care.