AI Financial Corp
For the period ended Jun 27, 2026. Filed Aug 17, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 27, 2026 · Filed Aug 17, 2026
AIFC$0.17+6.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-28; filed 2026-05-18.
0001493152-26-024169
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-27; filed 2026-08-17.
0001493152-26-038732
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 51 previous paragraphs and 70 current paragraphs.
32 unchanged; 15 reworded; 17 added; 4 removed; 0 previous and 6 current paragraphs rearranged.
Tables are not compared: 4 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (17)
Current report
Revenue decreased by approximately $4.0 million for the 13 weeks ended June 27, 2026, as compared to the 13 weeks ended June 28, 2025. The decrease is due to the loss of a large customer.
Current report
Gross profit decreased by approximately $0.4 million for the 13 weeks ended June 27, 2026, as compared to the 13 weeks ended June 28, 2025. The decrease is primarily due to the loss of a large customer.
Current report
For the Twenty-six Weeks Ended June 27, 2026 and June 28, 2025
Current report
Results of Operations
Current report
Revenue
Current report
Revenue decreased by approximately $4.8 million for the 26 weeks ended June 27, 2026, as compared to the 26 weeks ended June 28, 2025. The decrease is due to the loss of a major customer.
Current report
Gross Profit
Current report
Selling, General and Administrative Expense
Current report
Selling, general and administrative expenses increased by approximately $0.3 million for the 26 weeks ended June 27, 2026, as compared to the 26 weeks ended June 28, 2025, the decrease is due an increase in professional fees in 2026 and due to higher costs due to the acquisition of Mswipe in 2025.
Current report
Unrealized Loss on Cryptocurrency Assets
Current report
Unrealized loss on cryptocurrency assets for the 26 weeks ended June 27, 2026 was approximately $633.5 million. An unrealized gain or loss on cryptocurrency assets was recorded to mark the fair value of the WLFI tokens.
Current report
Segment Performance
Current report
Fintech Segment
Current report
Corporate and Other Segment
Current report
Our Corporate and Other segment generated no revenue for the for the 26 weeks ended June 27, 2026 and the 26 weeks ended June 28, 2025. Selling, general and administrative expenses increased primarily due toincreased costs for labor, accounting and public company expenses.
Current report
Biotechnology Segment
Current report
Cash used in investing activities for continued operations was $0.5 million for the 26 weeks ended June 27, 2026, compared to cash provided by investing activities of $0.1 million for the 26 weeks ended June 28, 2025. Cash provided by investing activities for the 26 weeks ended June 28, 2025 was related to the purchase of treasury shares offset by the acquisition of Mswipe, in 2025. There was no cash used in investing activities for discontinued operations during the 26 weeks ended June 27, 2026 or June 28, 2025.
Removed paragraphs (4)
Previous report
Revenue decreased by approximately $0.1 million for the 13 weeks ended March 28, 2026, as compared to the 13 weeks ended March 29, 2025. The decrease is due to volume of transactions processed for customers.
Previous report
Cash provided by investing activities was $0 million for the 13 weeks ended March 28, 2026 and $0 for the 13 weeks ended March 29, 2025.
Previous report
Sources of Liquidity
Previous report
We acknowledge that we continue to face a challenging competitive environment as we continue to focus on our overall profitability, including managing expenses. We reported a net loss from continuing operations of approximately $271.3 million for the 13 weeks ended March 28, 2026, and a net loss from continuing operations of approximately $1.9 million for the 13 weeks ended March 29, 2025. Additionally, the Company has total current assets of approximately $32.2 million and total current liabilities of approximately $39.1 million resulting in a net negative working capital of approximately $6.9 million. Cash used in operations was approximately $12.3 million.
Reworded paragraphs (15)
Previous wording
We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law. Our MD&A should be read in conjunction with our Annual Report on Form 10-K (including the information presented therein under the captionRisk Factors), together with our Quarterly Reports on Forms 10-Q and other publicly available information. All amounts herein are unaudited.
Current wording
We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law. Our MD&A should be read in conjunction with our Form 10-K (including the information presented therein under the captionRisk Factors), together with our Quarterly Reports on Forms 10-Q and other publicly available information. All amounts herein are unaudited.
Previous wording
Our Biotechnology segment is focused on finding treatments for conditions that cause severe pain and bringing to market drugs with non-addictive pain-relieving properties. We have previously announced our intention to capitalize a subsidiary with certain of our biotechnology assets, acquire an additional biotechnology asset, and then engage in a financing of that subsidiary. The short-term intended result of that series of transactions would be for to decouple it from us so that it would operate on a stand-alone basis. The Biotech segment is being presented as discontinued operations for the 13 weeks ended March 28, 2026 and March 29, 2025 (see Note 4 of our Condensed Consolidated Financial Statements).
Current wording
Our Biotechnology segment is focused on finding treatments for conditions that cause severe pain and bringing to market drugs with non-addictive pain-relieving properties. We have previously announced our intention to capitalize a subsidiary with certain of our biotechnology assets, acquire an additional biotechnology asset, and then engage in a financing of that subsidiary. The short-term intended result of that series of transactions would be for to decouple it from us so that it would operate on a stand-alone basis. The Biotech segment is being presented as discontinued operations for the 13 and 26 weeks ended June 27, 2026 and June 28, 2025.
Previous wording
In August 2025, the Company closed a $1.5 billion registered direct offering and concurrent private placement to launch our WLFI Treasury Strategy. This “capital with a purpose” financing positioned the Company as one of the most significant institutional holders of WLFI, securing a meaningful stake in the native governance token of the World Liberty Financial ecosystem.
Current wording
In August 2025, we closed a $1.5 billion registered direct offering and concurrent private placement to launch our WLFI Treasury Strategy. This “capital with a purpose” financing positioned the Company as one of the most significant institutional holders of WLFI, securing a meaningful stake in the native governance token of the World Liberty Financial ecosystem.
Previous wording
Our Corporate and Other segment also consists of certain corporate general and administrative costs.
Current wording
Our Corporate and Other segment consists of certain corporate general and administrative costs.
Previous wording
Selling, general and administrative expenses increased by approximately $2.4 million for the 13 weeks ended March 28, 2026, as compared to the 13 weeks ended March 29, 2025, primarily due increased professional fees.
Current wording
Selling, general and administrative expenses decreased by approximately $1.8 million for the 13 weeks ended June 27, 2026, as compared to the 13 weeks ended June 28, 2025, primarily due to lower labor costs and the higher costs due to the acquisition of Mswipe in 2025.
Previous wording
Unrealized gain on cryptocurrency assets for the 13 weeks ended March 28, 2026 was approximately $348.3 million. An unrealized loss on crypto tokens was recorded to mark to fair value WLFI tokens purchased in August of 2025.
Current wording
Unrealized loss on cryptocurrency assets for the 13 weeks ended June 27, 2026 was approximately $285.1 million. An unrealized gain or loss on cryptocurrency assets was recorded to mark the fair value of the WLFI tokens.
Previous wording
Our Fintech segment consists of ALT5 Subsidiary, which was acquired during May 2024. Revenue for the 13 weeks ended March 28, 2026 was approximately $4.7 million, and gross margin percentage was 75.8%. Operating loss for the fiscal quarter ended 13 weeks ended March 28, 2026 was approximately $1.6 million.
Current wording
Our Fintech segment consists of ALT5 Subsidiary, which was acquired during May 2024, as well as Mswipe, which was acquired during May 2025. Revenue for the 13 weeks ended June 28, 2026 was approximately $2.4 million, and gross margin percentage was 97.6%. Operating income for the fiscal year ended 13 weeks ended June 27, 2026 was approximately $2.6 million.
Previous wording
Our Corporate and Other segment generated no revenue for the for the 13 weeks ended March 28, 2026 and the 13 weeks ended March 29, 2025. Selling, general and administrative expenses increased primarily due to increased costs for legal and other professional services.
Current wording
Our Corporate and Other segment generated no revenue for the for the 13 weeks ended June 27, 2026 and the 13 weeks ended June 28, 2025. Selling, general and administrative expenses increased primarily due to increased labor costs.
Previous wording
Gross profit increased by approximately $1.6 million for the 13 weeks ended March 28, 2026, as compared to the 13 weeks ended March 29, 2025. The increase is due to the loss of a large low margin customer.
Current wording
Gross profit increased by approximately $0.6 million for the 26 weeks ended June 27, 2026, as compared to the 26 weeks ended June 28, 2025. The increase is due to the loss of a large low margin customer.
Previous wording
Interest expense, net decreased by approximately $0.3 million for the 13 weeks ended March 28, 2026, as compared to the 13 weeks ended March 29, 2025 primarily due to reduction in debt.
Current wording
Interest expense, net decreased by approximately $0.2 million for the 26 weeks ended June 27, 2026, as compared to the 26 weeks ended June 28, 2025 primarily due to pay down of debt.
Previous wording
We report our business in the following segments: Fintech, Biotechnology and Corporate and Other. During fiscal 2025, the Company announced its intent to formally separate its Biotechnology segment, also known as Alyea. As a result, the Biotechnology segment is presented as discontinued operations for the 13 weeks ended March 28, 2026 and March 29, 2025.
Current wording
We report our business in the following segments: Fintech, Biotechnology and Corporate and Other. During fiscal 2025, the Company announced its intent to formally separate its Biotechnology segment, also known as Alyea. As a result, the Biotech segment is being presented as discontinued operations for the 26 weeks ended June 27, 2026 and June 28, 2025.
Previous wording
During fiscal 2025, the Company announced its intent to formally separate its Biotechnology segment, also known as Alyea. As a result, the Biotechnology segment is presented as discontinued operations for the 13 weeks ended March 28, 2026 and March 29, 2025. Our Biotech segment generated no revenue for the for the 13 weeks ended March 28, 2026 and the 13 weeks ended March 29, 2025. Selling, general and administrative expenses increased primarily due to research and development expenses.
Current wording
During fiscal 2025, the Company announced its intent to formally separate its Biotechnology segment, also known as Alyea. As a result, the Biotech segment is being presented as discontinued operations for the 26 weeks ended June 27, 2026 and June 28, 2025. Our Biotech segment generated no revenue for the for the 26 weeks ended June 27, 2026 and the 26 weeks ended June 28, 2025. Selling, general and administrative expenses were primarily due to research and development expenses.
Previous wording
As of March 28, 2026, our cash on hand was $10.5 million. Approximately $3.5 million of cash has been fully reserved in connection with the legal matter, further described in Note 20 to the consolidated financial statements. We intend to raise funds either through capital raises or structured arrangements, which would include effectuating our previously announced intention to capitalize a subsidiary with certain of our biotechnology assets, acquire an additional biotechnology asset, and then engage in a financing of that subsidiary. The short-term intended result of that series of transactions would be for us to own a controlling interest in that subsidiary, but to decouple it from us so that it would operate on a stand-alone basis, although its financial statements would continue to be consolidated with ours for as long as we have a controlling interest.
Current wording
As of June 27, 2026, our cash on hand net of reserve, was $3.1 million. Approximately $3.5 million of cash has been fully reserved in connection with the legal matter, further described in Note 15 to the consolidated financial statements. We intend to raise funds either through capital raises or structured arrangements, which would include effectuating our previously announced intention to capitalize a subsidiary with certain of our biotechnology assets, acquire an additional biotechnology asset, and then engage in a financing of that subsidiary. The short-term intended result of that series of transactions would be for us to own a controlling interest in that subsidiary, but to decouple it from us so that it would operate on a stand-alone basis, although its financial statements would continue to be consolidated with ours for as long as we have a controlling interest.
Previous wording
During the 13 weeks ended March 28, 2026, cash used in operations was approximately $12.3 million, compared to cash provided by operations of approximately $1.5 million during the 13 weeks ended March 29, 2025. The increase in cash was primarily due to results of operations as discussed above.
Current wording
During the 26 weeks ended June 27, 2026, cash used in continuing operations was approximately $18.5 million, compared to cash used in continuing operations of approximately $6.7 million during the 26 weeks ended June 28, 2025. The decrease in cash was primarily due an unrealized loss on crypto currency assets offset by a change in deferred tax liability.
Previous wording
Cash provided by financing activities was $8.5 million for the 13 weeks ended March 28, 2026, and relates primarily to the new WLFI loan. Cash used in financing activities was approximately $1.5 million for the 13 weeks ended March 29, 2025, and relates to proceeds received from the issuance of notes payable, as well as warrants converted to our common stock, partially offset by cash paid for notes payable.
Current wording
Cash provided by financing activities was $10.7 million for the 26 weeks ended June 27, 2026, and relates to proceeds from notes payable, partially offset by purchases of short-term certificates of deposits and cash paid for notes payable. Cash provided by financing activities was approximately $3.7 million for the 26 weeks ended June 28, 2025, and relates to proceeds received from the issuance of notes payable, as well as warrants converted to our common stock, partially offset by cash paid for notes payable and related party notes payable. There was no cash provided by financing activities for discontinued operations during the 26 weeks ended June 27, 2026 or June 28, 2025.
Rearranged current paragraphs (6)
Current report — wording carried from elsewhere
We report our business in the following segments: Fintech, Biotechnology and Corporate and Other. During fiscal 2025, the Company announced its intent to formally separate its Biotechnology segment, also known as Alyea. Consequently, the Biotech segment is being presented as discontinued operations for the 13 weeks ended June 27, 2026 and June 28, 2025.
Current report — wording carried from elsewhere
During fiscal 2025, the Company announced its intent to formally separate its Biotechnology segment, also known as Alyea. Consequently, the Biotech segment is being presented as discontinued operations for the 13 weeks ended June 27, 2026 and June 28, 2025. Our Biotech segment generated no revenue for the 13 weeks ended June 27, 2026 and the 13 weeks ended June 28, 2025. Selling, general and administrative expenses increased $0.5 million due to increased research and development expenses.
Current report — wording carried from elsewhere
The following table sets forth certain statement of operations items and as a percentage of revenue, for the periods indicated (in $000’s):
Current report — wording carried from elsewhere
The following tables set forth revenues for key product and service categories, percentages of total revenue and gross profits earned by key product and service categories and gross profit percent as compared to revenues for each key product category indicated (in $000’s):
Current report — wording carried from elsewhere
Operating loss by operating segment, is defined as loss before net interest expense, other income and expense, provision for income taxes ($000’s).
Current report — wording carried from elsewhere
Our Fintech segment consists of ALT5 Subsidiary, which was acquired during May 2024, as well as Mswipe, which was acquired during May 2025. Revenue for the 26 weeks ended June 27, 2026 was approximately $7.1 million, and gross margin percentage was 83.2%. Operating income for the fiscal year ended 26 weeks ended June 28, 2025 was approximately $1.0 million.