Item 7.01 Other Events.
During
AvenuTM operates as a division of
Revenue from the AvenuTM solution is generated from a combination of client fee income and interest income that is derived from investing client deposit balances. The fee schedule is proprietary and not otherwise in the public domain, as such disclosure of the fee schedule would damage the Bank's competitive market advantage.
Management believes that a conservative approach to valuing the deposit balances is by applying the effective fed funds rate to the average deposit balances outstanding. The effective fed funds rate adjusts periodically, and therefore estimated breakeven analytics are based upon a point in time analysis.
The breakeven analysis for the AvenuTM solution includes estimates and
assumptions that are "forward-looking statements" within the meaning of Section
27A of the Securities Act of 1933, as amended, Section 21E of the Securities
Exchange Act of 1934, as amended, and the Private Securities Litigation Reform
Act of 1995. These forward-looking statements include discussions of the
strategic plans and objectives or anticipated future performance and results of
Further, the methodology that we use to estimate the breakeven point is a non-GAAP measure and may not include all the fixed or variable costs, including processing costs associated with the software solution, which may not be known until the solution is fully operational.
Based upon the information available today, management estimates that the
breakeven point will be met at or around the time AvenuTM has successfully
onboarded 20 to 30 clients and outstanding deposit balances average between
The information contained in this presentation should be read in conjunction
with the Company's most recent Form 10-K and all subsequent Quarterly Reports on
Form 10-Q, and Current Reports on Form 8-K, each of which is available on the
Investors are cautioned that forward-looking statements, which are not historical fact, involve risks, assumptions and uncertainties that change over time, including those detailed in Form 10-K under the section, "Risk Factors". As such, actual results could differ materially from those expressed or implied by forward-looking statements made in this presentation. Management believes that the expectations in these forward-looking statements are based upon reasonable assumptions within the bounds of management's current knowledge of the Company's business and operations. The Company disclaims any responsibility to update these forward-looking statements to reflect events or circumstances after the date of this presentation.
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