Forum Markets Incorporated (FRMM) Micro-Cap Virtual Conference summary

Business model and strategy

• Focuses on acquiring and operating cash-flowing assets with the option to fractionalize or tokenize them for broader access and liquidity.

• Targets asset classes with high risk-adjusted returns, moderate to high complexity, durable demand, and high-quality counterparties.

• Built proprietary pipelines and legal/technical infrastructure to enable fractionalization and tokenization, reducing barriers for investors.

• Management and board have deep institutional experience in capital markets, compliance, finance, and fintech.

• Emphasizes disciplined capital allocation and aims to be cash flow positive by early 2027.

Key verticals and asset deployment

• Largest capital deployment is in aircraft engines, specifically CFM56 models, leased to top U.S. airlines with guaranteed residual values and insurance.

• AI infrastructure is expected to become a major vertical, with an imminent partnership to provide compute capacity and potential for tokenized ownership.

• Modular home mortgages, in partnership with Zippy, leverage AI underwriting and community recourse to reduce defaults and offer attractive yields.

• Auto financing vertical uses a warehouse facility and AI underwriting to generate high yields with minimal defaults, with future plans for direct loan acquisition.

Tokenization and distribution strategy

• Tokenization is a long-term strategy, with current focus on building cash-flowing assets and awaiting regulatory clarity from pending legislation.

• Plans to distribute tokenized products through both retail and institutional channels, leveraging partnerships with exchanges like Liquidity.io.

• Retail distribution offers higher margins via origination, management, and trading fees, with marketing campaigns planned for product launches.

• Tokenization is not core in the near term but seen as a significant future upside as the market and regulations mature.