Forum Markets Incorporated (FRMM) Status update summary

Business model and strategy

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

• Targets high-yield, scalable markets with moderate to high complexity and durable demand.

• Competitive advantages include proprietary asset pipelines, regulated digital infrastructure, and an experienced team.

• Operates across four verticals: aircraft engines, AI infrastructure, modular home financing, and auto financing.

• Assets are intended to generate cash flow first, with tokenization as a secondary, scalable opportunity.

Vertical market updates

• Aircraft engine business generates steady 15% annualized yield, with long-term leases to major airlines and scalable sourcing partnerships.

• AI compute vertical is a top priority, offering 17%-20% annualized yields with direct access to NVIDIA chips and high-margin offtake agreements.

• Modular home financing, via Zippy, leverages AI underwriting for low default rates and growing monthly originations, with a $10B TAM.

• Auto finance vertical uses AI-driven origination and weekend liquidity solutions, yielding 12%-13% with minimal credit risk.

Tokenization and digital infrastructure

• Tokenization model mirrors mutual fund/ETF structures, with initial and management fees, and is positioned for scale as the market matures.

• Competitive moat includes regulatory compliance, exclusive asset access, and ownership of a licensed digital exchange (Liquidity.io).

• Tokenization is nascent; current focus remains on cash-flow generation, with optionality to scale tokenization as regulations evolve.