AiRWA, Inc. (YYAI) - 10-Q Summary for Period Ended October 31, 2025
Business Context and Reporting Period
This is a Quarterly Report (Form 10-Q) for AiRWA, Inc. (formerly Connexa Sports Technologies Inc.) for the six-month and three-month periods ended October 31, 2025. The Company operates primarily through its wholly-owned subsidiary, Yuanyu Enterprise Management Co., Limited ("YYEM"), focusing on technology licensing in the matchmaking sector and developing a digital asset exchange (AiRWA Exchange). The reporting period reflects a significant transformation following a reverse acquisition in November 2024 and a 1-for-50 reverse stock split effective October 27, 2025.
Key Financial Metrics
| Metric | Six Months Ended Oct 31, 2025 | Three Months Ended Oct 31, 2025 | As of Oct 31, 2025 |
|---|---|---|---|
| Revenue | $6,000,000 | $3,000,000 | - |
| Net Income (Loss) | $1,039,157 | $(221,774) | - |
| Operating Income | $1,546,067 | $54,684 | - |
| Cash and Cash Equivalents | - | - | $105,508,149 |
| Total Assets | - | - | $172,131,241 |
| Total Liabilities | - | - | $6,745,376 |
| Working Capital | - | - | $156,364,691 |
| Shares Outstanding | - | - | 18,981,535 |
Material Changes vs. Prior Period
- Revenue: Decreased 8% year-over-year for both the six-month and three-month periods, attributed to timing differences in license agreement signings.
- Operating Expenses: Increased significantly (930% for six months) due to costs associated with becoming a Nasdaq-listed entity, including audit, legal, and investor relations fees. Selling and marketing expenses appeared for the first time ($450,000) related to a new TikTok advertising business.
- Liquidity: Cash and cash equivalents surged from $54,744 at April 30, 2025, to $105.5 million at October 31, 2025. This increase was driven by $168.6 million in proceeds from "at-the-market" (ATM) offerings and $4.6 million from a private placement.
- Balance Sheet: Total assets increased from $32.9 million to $172.1 million. Significant new line items include $25.3 million in deposits and $5.9 million in prepayments related to business expansion.
- Acquisition: The Company acquired the remaining 30% of its operating subsidiary YYEM for $36 million in cash, making it a wholly-owned subsidiary.
Outlook, Risks, and Unusual Items
- Strategic Initiatives: The Company signed a $500 million joint venture agreement to form AiRWA Exchange, a digital asset exchange for tokenized U.S. stocks. While not yet operational, test runs for settling trades have been completed. A new social networking vertical targeting TikTok is also in development.
- Financing: The Company has an active ATM facility with a $200 million capacity. Subsequent to the period end, the Company raised an additional ~$15.7 million via a registered direct offering in December 2025.
- Risks: Key risks include volatility due to low public float, reliance on a small number of customers (three customers accounted for ~100% of revenue), and uncertainties regarding the operational launch of AiRWA Exchange. The Company also notes risks related to potential litigation and macroeconomic factors.
- Unusual Items: The financial statements reflect a reverse acquisition accounting treatment where YYEM is the accounting acquirer. Non-operating income includes "Share guarantee income" of $157,528 (six months) related to a downside guarantee on an investment in Brightstar Technology Group Co., Ltd.
Investor Verification Checklist
- Customer Concentration: Verify the stability of revenue given that three customers represent 100% of accounts receivable and revenue.
- Use of Proceeds: Monitor the deployment of the $105.5 million cash balance, specifically regarding the $25.3 million in deposits and $5.9 million in prepayments.
- AiRWA Exchange Viability: Assess the timeline and regulatory hurdles for the launch of the $500 million joint venture digital asset exchange.
- Related Party Transactions: Review the $2.67 million receivable and $0.78 million payable to director Hongyu Zhou, including the terms of the downside guarantee arrangement.
- Share Structure: Confirm the impact of the 1-for-50 reverse stock split on share count and per-share metrics in future filings.