Financial Data and Key Metrics Changes - Fiscal year 2025 was a pivotal year for the company, marking its first full fiscal year as a public entity, with significant one-time costs absorbed while laying a foundation for future profitability [4][5] - The company reported its first quarter of positive cash flow in Q4 2025 but still recorded a net loss primarily due to noncash items and elevated regulatory costs [8][9] - Total debt was reduced by 83% from $52,643,291 to approximately $8,000,945, with over $43,000,000 in liabilities extinguished [11][12] Business Line Data and Key Metrics Changes - Wilson Davis, the broker-dealer subsidiary, remained profitable throughout the year, contributing to steady commission and clearing revenues, alongside growth in the stock loan business [5][8] - The revenue base became more diversified, with securities lending and interest income contributing alongside commissions and clearing fees [6][9] Market Data and Key Metrics Changes - The company is targeting small and midsized financial institutions, which have been underserved by larger clearing providers, indicating a vast market opportunity [5][25] - The stock loan revenue showed growth, with net stock loan revenue increasing from $258,000 in July to over $400,000 in September [12] Company Strategy and Development Direction - The company aims to build a vertically integrated platform for trading, clearing, settlement of financial assets, and banking services [4] - Key priorities for fiscal 2026 include debt restructuring, technology deployment, operational growth, and strategic acquisitions [13][15] - The acquisition of Commercial Bancorp is expected to create internal synergies, enhance credit offerings, and improve net interest margins [29][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to attract additional capital due to a stronger balance sheet and significant growth in net income [22] - The company anticipates increased profitability at Wilson Davis driven by stock loan, margin lending, and commission growth [14][15] - Management highlighted the importance of insider participation in recent financing as a strong endorsement of the company's strategy and future [34][36] Other Important Information - The company launched the OLA digital account opening solution to automate onboarding and compliance processes [6] - The appointment of Steve Carlson as an independent director is expected to strengthen the leadership team and compliance with NYSE requirements [18] Q&A Session Summary Question: How does the stronger balance sheet change the way you're thinking about growth and acquisitions? - Management indicated that the stronger balance sheet has significantly improved opportunities to attract additional capital and has led to a nearly 300% increase in net income at the operating facility [22] Question: What does your pipeline look like for correspondent clearing clients? - Management noted a lively pipeline with potential clients in various stages, emphasizing the vast market opportunity for small financial institutions [25][26] Question: What are the biggest benefits of combining Commercial Bancorp's banking operations with your clearing platform? - Management highlighted the creation of internal synergies, improved credit offerings, and the potential for a Fed master account as key benefits of the acquisition [29][33] Question: How should investors interpret the level of insider participation in recent financing? - Management described insider participation as a strong endorsement of the company's strategy, indicating alignment between leadership and shareholders [34][36] Question: How does Hanrae fit into the broader growth plans? - Management expressed optimism about imminent funding from Hanrae and highlighted the changing market perception of the company's value [39][40]