ALT5 Sigma Corporation(ALTS) - 2025 Q1 - Quarterly Report

Revenue and Profitability - Revenue for the 13 weeks ended March 29, 2025, was $5.514 million, an increase of approximately $5.5 million compared to the same period in 2024, attributed to the acquisition of ALT5 Subsidiary[130] - Gross profit for the same period was $2.591 million, representing a gross profit margin of 47.0%[129] - Adjusted EBITDA for the 13 weeks ended March 29, 2025, was $(162,000), an improvement of approximately $331,000 or 67.1% compared to $(493,000) in the prior year[142] - The Fintech segment generated revenue of $5.514 million with an operating loss of approximately $360,000 for the 13 weeks ended March 29, 2025[139] - The company reported a net loss of approximately $2.1 million for the 13 weeks ended March 29, 2025, compared to a net loss of approximately $2.9 million for the same period in 2024, primarily due to increased costs associated with the acquisition of ALT5 Subsidiary[148] Expenses and Costs - Selling, general and administrative expenses increased by approximately $3.0 million to $4.761 million for the 13 weeks ended March 29, 2025, primarily due to the acquisition of ALT5 Subsidiary[132] - Interest expense, net increased by approximately $470,000 to $720,000 for the 13 weeks ended March 29, 2025, primarily due to the acquisition of ALT5 Subsidiary[133] - The Biotechnology segment generated no revenue for the 13 weeks ended March 29, 2025, and selling, general and administrative expenses increased due to amortization costs[140] Cash Flow and Financing - Cash on hand as of March 29, 2025, was $10.8 million, with plans to raise funds for future development of JAN 123[143] - Cash used in operations was approximately $1.5 million for the 13 weeks ended March 29, 2025, compared to cash provided by operations of approximately $544,000 in the same period of 2024[145] - Cash provided by financing activities was $1.5 million for the 13 weeks ended March 29, 2025, related to proceeds from the issuance of notes payable and warrants converted to common stock[147] - The company may require additional debt financing and/or capital to finance new acquisitions and conduct Phase IIb clinical trials[149] Assets and Liabilities - Total current assets are approximately $31.8 million, while total current liabilities are approximately $38.2 million, resulting in a net negative working capital of approximately $6.4 million[148] Future Plans and Risks - The company plans to capitalize a subsidiary with certain biotechnology assets and acquire an additional biotechnology asset to support future operations[143] - The company does not believe there is any significant risk related to interest rate fluctuations on its short and long-term fixed rate debt[150] - The company does not hold any derivative financial instruments or securities for trading or speculative purposes[151]