Thu, May 15, 9:25 PM (28 days ago)
**Figure Certificate Company (FCC) - Q1 2025 Financial Summary** **Ticker:** None **Q1 2025 Financial Health and Performance:** - **Revenue:** $4,000 (interest income) - **Net Loss:** $1,260,000 (increased from $186,000 in Q1 2024) - **Total Assets:** $3,574,000 (up from $1,015,000 in Q1 2024) - **Cash & Cash Equivalents:** $3,200,000 (up from $500,000 in Q1 2024) - **Total Liabilities:** $3,156,000 (up from $494,000 in Q1 2024) - **Stockholders' Equity:** $418,000 (down from $521,000 in Q1 2024) - **Profit Margins:** Negative, with a net loss margin of approximately 100% (calculated as net loss divided by revenue) - **Cash Flow:** Positive operating cash flow of $4,000, and significant financing cash flow of $2,696,000 - **Earnings Changes:** Net loss per share increased to $1,260 from $186 in Q1 2024 - **Quarterly Performance:** Increased investment expenses, including offering costs, professional service fees, and organizational costs - **Trends:** Significant increase in cash and cash equivalents, total assets, and total liabilities; however, stockholders' equity decreased - **Uncertainties:** Dependence on parent company (FMHI) for financial support and potential market risks due to interest rate fluctuations - **Future Operations Impact:** The company plans to continue financing operations through certificate issuance and parent company support **Key Metrics and Discussion:** - **Investment Income:** Generated $4,000 from interest on cash and cash equivalents - **Investment Expenses:** Totaled $1,264,000, including offering costs, professional service fees, and organizational costs - **Net Investment Loss:** $1,260,000, primarily due to high investment expenses - **Liquidity:** Adequate liquidity with $3,200,000 in cash and cash equivalents, supported by parent company commitments - **Capital Resources:** Primarily funded through parent company contributions and certificate issuance - **Market Risks:** Exposed to interest rate fluctuations, which could impact net interest income and cash flows **Future Outlook:** - **Growth Strategy:** Focus on certificate issuance and investment in money market funds and repurchase agreements - **Risk Management:** Monitor interest rate environment and adjust investment strategy as needed - **Financial Support:** Continue to rely on parent company support for liquidity and operational expenses **Conclusion:** FCC's Q1 2025 financial results show a significant increase in assets and liabilities, driven by certificate issuance and parent company support. However, the company reported a substantial net loss due to high investment expenses. FCC's future operations will depend on its ability to manage market risks and maintain adequate liquidity through certificate issuance and parent company support.