Jason Frishman: Thanks Coreen, Sure, this is Jason. So, the ATS will provide Netcapital users with the ability to enter a regulated venue to be able to offer to resell their securities and purchase securities in companies that have already issued shares. And so through the ATS, there’s an ability to monetize overtime, the most successful companies that come through Netcapital. And as there’s demand in those stocks, we can be in a position to facilitate ongoing transactions and the most successful names on the long tail. And so, we view that as a potentially very strong opportunity for revenue growth down the line.
Operator: You have a follow-up question coming from Tim Johnson.
Tim Johnson: What’s the current mix of cash and securities taken as fees for doing deals? And can you modify that mix?
Coreen Kraysler: So, are you specifically talking about the consulting side of the business? Or are you asking overall what percentage of our revenues were from the equity securities?
Tim Johnson: More on the deal of the capital raising side, you take a portion of it in stock and a portion of cash, correct?
Coreen Kraysler: So are you asking on the Netcapital platform? How much do we take as cash and how much do we take as stock? Jason, do you want to address that?
Jason Frishman: Sure. Yes. Hi, Tim, good question. So yes, so we historically charge a 4.9% cash based fee for all the funds raised through the platform. We’ve recently added to that a 1% stock base fee. The stock is taken in kind as a funding portal. We are allowed to take equity, so long as it is the exact same equity that’s being issued through the portal to the investors. So at the end of the raise, we receive 1% of the stock that they sold in equity. So, it’s 4.9% fee in cash and then an additional 1% fee in equity. I think the second part of your question Tim was. Could we change the mix of that? We certainly could. It’s not something where we’re looking at right now. We just added this additional 1%. So, we’re sort of seeing how that goes.
So far, it’s gone pretty well. We haven’t seen really any pushback from any of our issuers that providing that additional 1% fee and equity. And we love the optionality that that provides us. It gives us an ability to win when our issuers win overtime. And so, we like the idea of having an obviously it’s a small stake because it’s just 1% of what each company raises, but we love the idea of having a small stake in every company that comes through Netcapital for the optionality that it affords us.
Tim Johnson: When did you start doing that and how much have you taken in via that component?
Jason Frishman: That is a good question. It’s a recent addition, I believe, within the last quarter. And I’m not sure, Coreen you might know? I don’t know if any of the deals have yet closed where we had its shares issued quite yet.
Tim Johnson: So, will you be disclosing that going forward quarterly?
Coreen Kraysler: Yes, we will.
Tim Johnson: But nothing in the third quarter so far?
