AtlasClear Holdings, Inc. has reported a net loss of $1.2 million for the quarter ended March 31, 2024, compared to a net loss of $0.8 million for the same period in 2023. The company’s total assets increased to $12.5 million, while total liabilities remained stable at $0.3 million. The company’s cash and cash equivalents increased to $1.5 million, and the number of shares outstanding increased to 12.5 million. The company’s revenue for the quarter was $0.9 million, with a gross margin of 60%.
AtlasClear Holdings, Inc. (the “Company”) provides specialized clearing and banking services to financial services firms through its subsidiaries Wilson-Davis and the planned acquisition of Commercial Bancorp. The Company aims to create an efficient platform for trading, clearing, settlement, and banking with innovative financial products.
On February 9, 2024, the Company completed its previously announced business combination with Quantum FinTech Acquisition Corporation. In connection with this, the Company acquired the software, intellectual property, and other assets of AtlasClear, Inc. to develop the AtlasClear Platform.
Revenue | Expenses | Loss from Operations | Net Loss |
---|---|---|---|
$1.3 million | $15.1 million | $13.9 million | $88.6 million |
Revenues were driven by commissions, vetting fees, and clearing fees from Wilson-Davis. Expenses increased substantially due to costs related to the AtlasClear acquisition, including $11.5 million in legal and professional fees.
Going forward, the Company aims to leverage synergies between its business lines to achieve lower cost of capital, higher margins, expanded products, and increased credit extension.
The Company’s liquidity position and need to raise additional capital raises doubt about its ability to continue as a going concern in the next 12 months.
Wilson-Davis is a self-clearing correspondent securities broker-dealer that derives revenue from:
The Company has an agreement to acquire Commercial Bancorp, a federal reserve member bank. The acquisition would provide:
The Company acquired assets to develop the AtlasClear Platform, a trading and clearing platform, from Pacsquare Technologies and Atlas FinTech. Key benefits include:
Pacsquare will develop and implement the platform over the next 12 months.
The Company aims to leverage synergies across its business lines to achieve scale, improve margins, and create innovative products for underserved segments of the financial services industry. However, substantial doubt exists around its ability to meet liquidity needs over the next 12 months. Raising additional capital is key to the Company’s ability to continue operations.