FDCT's Latest Acquisition Set To More Than Double Its Bottom Line

It is not often that a $2 million acquisition adds $6 million in net income to the bottom line in under three months of ownership. FDCTech, Inc. (OTCID: $FDCT) picked up Alchemy International Ltd. for $2 million last October, a licensed broker that was already doing $7.56 million in revenue at a 50%+ net margin before the deal closed. The NT 10-K the company filed last week projects the acquisition will add over $17 million in net assets, more than $13 million in revenue, and over $6 million in net income to a company already sitting on $24 million in cash with regulated brokerages across four countries and a proprietary trading platform it built from the ground up.

The projections in the filing cover the period from the October 29 acquisition date through December 31, barely two months on the books, and in that window a single entity acquired for $2 million is expected to contribute $13 million in revenue and $6 million in net income, the kind of output that most OTC companies do not produce in an entire fiscal year. FDCT's nine-month revenue through September was $17.32 million with net income of $436,159, which means the Alchemy International contribution alone could more than double the company's bottom line for the full year and push consolidated annual revenue north of $30 million. The $17 million in net assets landing on the balance sheet nearly matches FDCT's entire pre-acquisition equity position, and the company paid $2 million for all of it, less than a single quarter of the entity's net profit.

Alchemy International operates under a Seychelles FSA license that opens the door to clients across Asia, the Middle East, Africa, and Latin America that FDCT's existing EU and UK licenses cannot reach, offering higher leverage, crypto CFD trading, and institutional execution services for offshore brokerages and high-frequency traders. Before the acquisition the entity's client assets had nearly doubled from $5.39 million to $10.84 million in nine months, and its revenue mix included over $1 million in institutional execution fees through three quarters. This is the kind of high-margin, capital-light brokerage operation that scales fast when plugged into a larger infrastructure, and FDCT already has that infrastructure in place through Alchemy Markets in Malta with its MiFID II passport across 30 EU and EEA countries, Alchemy Prime in London with its FCA-regulated prime brokerage, and AD Advisory in Australia managing over $530 million in funds under advice.

Alchemy Markets secured Gold Broker status on TradingView across 10 European countries last September, putting it in front of more than 50 million users at virtually zero marginal cost, and launched a Copy Trading app on iOS and Android a month earlier in a segment projected to hit $4 to $5 billion by 2030. Both were built in-house on FDCT's proprietary Condor Trading Platform, the same stack that powers its own brokerages and gets licensed to outside firms as a revenue stream that grew 213% year-over-year. An estimated 70% to 80% of brokers worldwide rent MetaTrader at costs running into six figures annually and MetaQuotes raised those fees by over 20% at the start of last year. FDCT owns its platform outright, controls the product roadmap, and pockets licensing revenue from the brokers who cannot say the same.

Owning both the brokerage and the technology underneath it is a model you normally only see from IG Group (LON: $IGG), CMC Markets (LON: $CMCX), or Robinhood (NASDAQ:

$HOOD), companies that trade at 3x to 16x revenue on major exchanges. FDCT currently sits below 1x its revenue with an unrestricted share count of roughly 50 million, and as early as last year the company brought on E.F. Hutton to advise on an uplisting to a senior exchange. The timing lines up with a consolidated 10-K that is expected to show north of $30 million in annual revenue, sustained profitability, and $6 million in net income from a single acquisition that cost $2 million to close.

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