Financial Data and Key Metrics Changes - The company reported GAAP revenues of $18.7 million for the current quarter, with a year-to-date total of $3.3 million for fiscal 2026 [13] - Adjusted revenues, excluding a derivative asset fair value adjustment, were -$25.4 million for the current quarter and -$40.8 million year-to-date [14] - Operating expenses were approximately $15 million, a slight increase from $14 million in the prior year, but adjusted operating expenses declined by 6.5% year-over-year and 18% year-to-date [15][7] - The operating loss for the fiscal third quarter was $29.2 million, compared to an operating loss of $0.8 million sequentially [17] Business Line Data and Key Metrics Changes - Ben Liquidity recognized $8.2 million of interest income during the third quarter, a decrease of 3.6% sequentially and down 25.2% year-to-date [16] - Ben Custody reported NAV of alternative assets at $230.2 million, down from $338.2 million as of March 31, 2025, with revenues applicable to Ben Custody at $2.9 million for the fiscal third quarter [18][19] Market Data and Key Metrics Changes - The company generated approximately $50 million in gross proceeds through asset sales and equity redemptions, which were used to pay down debt and provide working capital [7][12] - The loan portfolio was supported by a diversified alternative asset collateral portfolio, providing diversification across approximately 150 private market funds and 430 investments [12] Company Strategy and Development Direction - The company is focused on stabilizing and developing its core business strategy to unlock value in private assets, with an emphasis on creating an efficient technology and AI-enhanced services platform [5][7] - Management aims to simplify the capital structure and reduce expenses to deliver long-term shareholder value [8] - The company intends to pursue claims regarding the validity of over $100 million in debt purportedly owed to an entity related to the former CEO [10] Management's Comments on Operating Environment and Future Outlook - Management believes the market opportunity remains strong and is focused on demonstrating the validity of the business model through upcoming transactions [40] - The company is preparing for the former CEO's criminal trial scheduled for April 2026, which may impact future operations and obligations [28] - Management is optimistic about leveraging infrastructure and maximizing market opportunities as they move further into 2026 [10] Other Important Information - The company regained full compliance with Nasdaq listing requirements, completing an annual audit and improving its balance sheet equity [8] - A final court-approved settlement related to the GWG Holdings litigation was reached, allowing the company to focus on growth [9] Q&A Session Summary Question: Update on core liquidity platform and marketing strategies - Management indicated a focus on stabilizing the platform and targeting family offices and advisors for future marketing efforts [25][26] Question: Legal matters and their impact on the balance sheet - Management noted the upcoming criminal trial of the former CEO and the potential to challenge the validity of related debt [27][28] Question: Operating loss in Ben Liquidity - The operating loss was attributed to asset sales and updated NAV values [31] Question: Future operating expenses in Ben Liquidity - Management believes there is still room for further expense reductions in the operating segment [34] Question: Pipeline for liquidity transactions - Management confirmed ongoing discussions and inquiries, with expectations for positive momentum in upcoming transactions [36][37] Question: Balance sheet details regarding debt - The total debt of $100.3 million primarily relates to an entity associated with the former CEO [38] Question: Near-term priorities for the company - Management emphasized the importance of executing on transactions to validate the business model and improve market perception [39][40]

Core Insights - iCapital has made a strategic investment in Tangible Markets to enhance access to alternative investments and address liquidity issues in the sector [1][3] - The partnership aims to develop scalable liquidity solutions for wealth managers, asset managers, and institutional investors, integrating Tangible's solutions into the iCapital platform by the end of 2025 [2] Company Developments - iCapital's CEO emphasized the importance of liquidity in alternative investments, stating that the partnership will redefine institutional-grade liquidity solutions and provide clients with greater transparency and flexibility [3] - The collaboration will result in a suite of liquidity options for alternative investment funds, connecting a large buyer-seller network and improving price discovery [3][4] Market Impact - The liquidity mechanism will support various strategies, including private equity, private credit, real assets, and hedge funds, allowing advisers and eligible investors to participate in regular auctions [4] - iCapital's platform will enhance the management of alternative investments by providing sellers with curated auctions and real-time pricing data, while buyers will benefit from easier access to high-quality alternatives [5]