Forum Markets Incorporated (FRMM) Status update summary

Business model and strategy

• Focuses on owning and operating cash-flowing assets with the option to fractionalize and tokenize to broaden access and increase liquidity.

• Targets high-yield, scalable markets with moderate to high complexity and durable demand, including aircraft engines, AI compute, modular home financing, and auto finance.

• Competitive moat built on proprietary asset pipelines, exclusive regulated digital infrastructure, and a leadership team with deep institutional experience.

• Tokenization is positioned as a scalable, future revenue stream, but current focus remains on generating cash flow from owned assets.

• Strategic partnerships and exclusivity agreements provide unique access to high-quality assets and counterparties.

Financial and operational update

• Transitioned from holding Ethereum to cash-flowing real-world assets, reducing exposure to digital asset volatility.

• Current cash position was $62.5 million as of April 30, with ongoing deployment into verticals and share repurchases.

• Double-digit yields targeted from asset operations and platform fees; disciplined capital allocation to maximize shareholder value.

• Over 7.1 million shares (35% of outstanding) repurchased in Q1 2026, with $100 million authorization extended through Q2 2027.

• Three equity research firms cover the business, with a consensus price target of $10.

Vertical market performance and growth

• Aircraft engine leasing generates ~15% annualized yield, with stable cash flows and options for asset resale or refurbishment.

• AI compute vertical offers 17%-20% annualized yields, leveraging direct relationships with NVIDIA chip distributors and hyperscalers.

• Modular home financing, via Zippy, delivers 9%-11% annualized returns with near-zero default rates and scalable origination, now at $75 million/month.

• Auto finance, through Karus, provides 12%-13% annualized yield on short-term dealer loans, with zero defaults and rapid loan approval via AI.