Business Context and Reporting Period
Company: AIxCrypto Holdings, Inc. (formerly Qualigen Therapeutics, Inc.)
Filing Type: Form 10-K (Annual Report)
Period Ended: December 31, 2025
Reporting Status: Smaller Reporting Company; Non-accelerated filer.
Business Overview: The Company completed a strategic pivot in late 2025 from a clinical-stage oncology firm to a technology infrastructure company focused on the convergence of Artificial Intelligence (AI) and blockchain. The new strategy centers on a "Dual Flywheel" model: Real-World Asset (RWA) tokenization and Embodied AI (EAI) infrastructure. In February 2026, the Board discontinued the BesTrade and C10 product lines to focus capital on the RWA and EAI ecosystem.
Key Financial Metrics
| Metric | 2025 | 2024 |
|---|---|---|
| Revenue | $0 | $0 |
| Net Loss | $(16,965,875) | $(6,259,191) |
| Net Loss Attributable to Shareholders | $(19,528,742) | $(6,346,795) |
| Loss Per Share (Basic & Diluted) | $(8.11) | $(17.55) |
| Cash and Cash Equivalents (Year End) | $19,332,707 | $1,174,608 |
| Digital Assets (Fair Value) | $10,250,497 | $0 |
| Total Assets | $31,279,846 | $4,686,519 |
| Total Liabilities | $3,329,237 | $2,007,483 |
| Stockholders' Equity | $27,950,609 | $2,679,036 |
| Accumulated Deficit | $(140,027,450) | $(123,061,575) |
| Cash Used in Operating Activities | $(6,951,458) | $(6,327,503) |
| Cash Provided by Financing Activities | $40,991,044 | $9,007,708 |
Material Changes vs. Prior Period
- Strategic Pivot: Rebranded from Qualigen Therapeutics to AIxCrypto Holdings in November 2025. Shifted focus from drug development (QN-302) to AI and blockchain infrastructure.
- Capital Raise: Consummated a $40.7 million PIPE financing in September 2025 led by Faraday Future Intelligent Electric Inc. (FFAI). Proceeds were used to pay down debt and establish a cryptocurrency treasury.
- Digital Asset Holdings: Initiated a crypto treasury strategy, acquiring $16.5 million in digital assets during 2025. Reported a net loss on digital assets of $3.6 million for the year.
- Expense Structure: General and Administrative (G&A) expenses increased to $8.8 million (from $4.2 million) due to investor relations fees ($1.4 million) and consultant fees. R&D expenses decreased to $0.2 million (from $1.2 million) as legacy drug trials were paused.
- Credit Losses: Recognized a $4.2 million credit loss expense on short-term notes receivable from Marizyme, Inc., reflecting a significant increase in the allowance for credit losses.
- Stock Split: All share data reflects a 1-for-50 reverse stock split effective November 5, 2024.
Guidance, Outlook, Risks, and Contingencies
Outlook and Guidance
The Company does not provide specific financial guidance. Management expects to generate revenue through platform licensing, structuring fees, and ecosystem participation once commercial scale is achieved. The Company anticipates continuing to incur net losses and negative cash flows from operations in the near term.
Going Concern
The Company has a history of recurring losses and an accumulated deficit of $140 million. While cash balances improved to $19.3 million due to the September 2025 financing, the Company states that its ability to continue as a going concern is dependent on obtaining additional funding. The independent auditor included an explanatory paragraph regarding substantial doubt about the Company's ability to continue as a going concern.
Key Risks
- SEC Enforcement Actions: Co-CEO Jiawei Wang and Chief Advisor YT Jia received SEC Wells Notices in June 2025 regarding alleged securities law violations related to Faraday Future. While the SEC Division of Enforcement stated in March 2026 it does not intend to recommend an enforcement action, the risk of a bar from serving as an officer remains a critical operational risk, particularly given Wang's sole access to crypto treasury accounts.
- Crypto Volatility and Custody: The Company's treasury strategy relies heavily on cryptocurrencies. The Co-CEO has sole access to these accounts, creating a single point of failure. Market volatility could materially impact financial condition.
- Regulatory Uncertainty: Operations are subject to evolving regulations regarding digital assets, tokenization, and AI systems.
- Internal Controls: The Company identified material weaknesses in internal control over financial reporting, including lack of segregation of duties and insufficient IT general controls.
- Faraday Future Investment: The Company entered an agreement to invest $10 million in FFAI shares. FFAI received a Nasdaq deficiency notice regarding minimum bid price compliance in March 2026, introducing liquidity and valuation risks to this holding.
Investor Verification Checklist
- Treasury Access: Verify the status of the SEC Wells Notices against Co-CEO Jiawei Wang and the operational contingency plans for accessing the Company's cryptocurrency treasury if he is barred from office.
- Revenue Validation: Confirm the timeline and contractual status of the $10 million Faraday Future investment and the tokenization framework, as no material revenue has been generated to date.
- Marizyme Receivables: Assess the recoverability of the $4.9 million note receivable from Marizyme, given the $4.6 million allowance for credit losses recorded.
- Internal Controls: Review the remediation plan for the identified material weaknesses in internal controls over financial reporting.
- Subsequent Conversions: Note that significant conversions of Series B Preferred Stock to Common Stock occurred in Q1 2026 (approx. 15 million shares), resulting in substantial dilution to existing shareholders.