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AtlasClear Holdings, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, reporting total revenues of $2,804,082. The revenue is derived from Wilson-Davis & Co., Inc., a self-clearing correspondent securities broker-dealer acquired in a business combination.
Total expenses for the quarter were $3,745,184, with significant costs attributed to compensation, payroll taxes, and benefits totaling $1,279,304. Data processing and clearing costs amounted to $611,646.
The company recorded a net income of $10,748,033, largely due to gains in the change of fair value of financial instruments, including convertible note derivatives and other financial agreements.
AtlasClear Holdings reported a total of $11,710,887 in other income, which includes changes in fair value of various financial instruments issued in connection with the business combination.
The company recognized interest income of $606,758 and interest expenses of $1,456,996 during the quarter.
Cash provided by operating activities was $175,607, while cash used in investing activities was $65,000. Cash provided by financing activities was $148,383.
AtlasClear Holdings disclosed a working capital deficit of $7,068,848 as of September 30, 2024, raising substantial doubt about its ability to continue as a going concern.
The filing details several financial agreements, including a secured convertible note with Funicular Funds, LP, and a subscription agreement with Winston & Strawn LLP.
AtlasClear Holdings also entered into agreements to settle certain liabilities through the issuance of common stock and convertible promissory notes.
The company is in the process of acquiring Commercial Bancorp and anticipates synergies from the merger with Wilson-Davis.
AtlasClear Holdings continues to develop the AtlasClear Platform, a proprietary trading platform with clearing and settlement capabilities, in collaboration with Pacsquare Technologies, LLC.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the AtlasClear Holdings Inc. quarterly 10-Q report dated November 15, 2024. To report an error, please email earnings@qz.com.