ALT5 Sigma Corporation(ALTS) - 2025 Q4 - Annual Report

Revenue and Profit - Revenue for the 13 weeks ended September 27, 2025, was $7.575 million, an increase of approximately $2.6 million compared to $4.941 million for the same period in 2024[199]. - Gross profit for the same period increased to $2.623 million, up from $2.361 million, primarily due to the acquisition of Mswipe[200]. - Revenue for the 39 weeks ended September 27, 2025, was $19.5 million, a significant increase of approximately $12.4 million compared to $7.1 million for the same period in 2024[215][213]. - Gross profit for the 39 weeks ended September 27, 2025, was $8.0 million, representing a gross profit margin of 41.0%, compared to $3.5 million and a margin of 48.6% in 2024[216][214]. Expenses - Selling, general and administrative expenses rose significantly by approximately $17.6 million to $19.162 million, driven by higher bad debt expense and increased stock-based compensation[201]. - Selling, general and administrative expenses increased by approximately $22.1 million for the 39 weeks ended September 27, 2025, totaling $28.3 million, primarily due to increased bad debt and professional fees[217]. Net Income and Loss - The net loss from continuing operations before provision for income taxes was $58.734 million for the 13 weeks ended September 27, 2025[196]. - The net income (loss) for the 13 weeks ended September 27, 2025, was $48.962 million, compared to a loss of $(822) thousand for the same period in 2024[196]. - Net income from continuing operations for the 39 weeks ended September 27, 2025, was $38.8 million, compared to a loss of $1.1 million in 2024[212]. Adjusted EBITDA - Adjusted EBITDA for the 13 weeks ended September 27, 2025, was $(9.129) million, compared to $2.112 million for the same period in 2024, reflecting a consolidated adjusted EBITDA margin of (120.5%)[196]. - Adjusted EBITDA for the 39 weeks ended September 27, 2025, was $(10.8) million, a decrease of approximately $11.7 million compared to $0.9 million in 2024[227][226]. Cash Flow - Cash on hand as of September 27, 2025, was $7.3 million, with $3.5 million reserved for a legal matter[228]. - Cash used in continuing operations was approximately $15.5 million for the 39 weeks ended September 27, 2025, compared to cash provided by operations of approximately $3.7 million in 2024[230]. - Cash used in investing activities for continuing operations was $711.3 million for the 39 weeks ended September 27, 2025, primarily for the purchase of WLFI tokens[231]. - Cash provided by financing activities was $719.4 million for the 39 weeks ended September 27, 2025, mainly from equity financing and notes payable[233]. Future Plans and Segments - The Company plans to separate its Biotechnology segment, which is currently presented as discontinued operations[205]. - The company plans to raise funds to support future development of JAN 123 and may require additional debt financing for new acquisitions and clinical trials[234]. Other Financial Information - The Fintech segment reported revenue of $7.575 million with a gross margin percentage of 34.6% for the 13 weeks ended September 27, 2025[208]. - The Corporate and Other segment generated no revenue for both the 13 weeks ended September 27, 2025, and September 28, 2024[209]. - Unrealized gain on cryptocurrency assets for the 13 weeks ended September 27, 2025, was approximately $72.8 million, marking WLFI tokens to fair value[204]. - The company does not hold any derivative financial instruments[236]. - The company does not hold any securities for trading or speculative purposes[236].