Business Context and Reporting Period
Company: AIxCrypto Holdings, Inc. (AIXC)
Filing Type: Form 10-Q (Unaudited)
Period Ended: June 30, 2026
Reporting Status: Smaller Reporting Company; Non-accelerated filer.
The Company has pivoted from a legacy biotechnology firm to a technology company focused on Embodied Artificial Intelligence (EAI) and Real-World Asset (RWA) tokenization. In May 2026, the Board approved the discontinuation and wind-down of its legacy biotechnology business. The Company launched "RoboShare," an on-demand robot sharing marketplace, in June 2026, with commercial operations targeted for August 2026. As of June 30, 2026, the Company held significant digital assets and had invested approximately $12.0 million in its majority stockholder, Faraday Future Intelligent Electric Inc. (FFAI).
Key Financial Metrics
| Metric | Six Months Ended June 30, 2026 | Three Months Ended June 30, 2026 | Balance Sheet (June 30, 2026) |
|---|---|---|---|
| Revenue | $0 | $0 | N/A |
| Net Loss | $(10,266,621) | $(4,187,605) | N/A |
| Loss Per Share (Basic/Diluted) | $(0.73) | $(0.21) | N/A |
| Total Expenses | $7,293,046 | $2,959,325 | N/A |
| Cash and Cash Equivalents | N/A | N/A | $577,328 |
| Digital Assets (Fair Value) | N/A | N/A | $5,212,903 |
| Total Assets | N/A | N/A | $7,402,799 |
| Total Current Liabilities | N/A | N/A | $1,721,003 |
| Accumulated Deficit | N/A | N/A | $(150,294,071) |
| Net Cash Used in Operating Activities | $(7,939,909) | N/A | N/A |
Material Changes vs. Prior Period
- Operating Loss: Net loss for the six months ended June 30, 2026, increased to $10.3 million from $4.3 million in the same period in 2025. This was driven by a $2.9 million net loss on digital assets and a $376,000 loss on the settlement of short-term notes receivable.
- Digital Assets: The Company held no digital assets in 2025. As of June 30, 2026, holdings totaled $5.2 million (down from a cost basis of $10.4 million), resulting in significant unrealized losses.
- Debt Settlement: The Company settled all outstanding Marizyme notes in May 2026 for $100,000 cash, recognizing a $375,844 loss. All convertible debt was also fully repaid during the period.
- Equity Structure: During the six months ended June 30, 2026, 33,858 shares of Series B Preferred Stock were converted into approximately 15.1 million shares of common stock.
- Investment in FFAI: The Company recorded a $12.0 million investment in FFAI securities held at cost, classified as "Parent company equity held at cost" (contra-equity).
Guidance, Outlook, Risks, and Contingencies
- Going Concern: Management has raised substantial doubt regarding the Company's ability to continue as a going concern for the next 12 months due to recurring losses, negative cash flows, and limited cash ($0.6 million). The financial statements do not include adjustments for potential liquidation.
- Revenue Outlook: The Company has not yet generated operating revenue. The nearest commercial milestone is the first RoboShare rental delivery, targeted for August 2026. Success is subject to execution risk and market adoption.
- Strategic Wind-down: The legacy biotechnology business is being wound down. While the wind-down was approved in May 2026, the segment does not qualify as "discontinued operations" under ASC 205-20 as of June 30, 2026, so costs remain in continuing operations.
- Legal Proceedings: The CEO and Chief Advisor received Wells Notices from the SEC in June 2025 regarding alleged anti-fraud violations related to FFAI. In March 2026, the SEC Division of Enforcement stated it did not intend to recommend an enforcement action, though this does not constitute exoneration.
- Internal Controls: The Company identified material weaknesses in internal controls, including insufficient accounting personnel and lack of IT general controls. Remediation is pending additional funding.
- Subsequent Events: In July 2026, the Company advanced $500,000 to FFAI in connection with a potential credit facility and entered into a consulting agreement with Aibot US Operation Inc. for $600,000 over one year.
Investor Verification Checklist
- Liquidity Runway: Verify the sufficiency of the $577,328 cash balance against the $1.7 million in current liabilities and ongoing burn rate.
- Digital Asset Valuation: Assess the volatility risk of the $5.2 million digital asset portfolio, which represents the majority of current assets but is subject to significant market fluctuations.
- FFAI Investment: Review the terms of the entrusted investment in FFAI ($12.0 million) and the concentration risk associated with the majority stockholder.
- RoboShare Execution: Monitor the August 2026 launch timeline and the ability to generate revenue from the robot-sharing platform.
- Related Party Transactions: Scrutinize the $500,000 advances to FFAI and the $600,000 consulting commitment to Aibot US Operation Inc. approved subsequent to the period end.
- Internal Controls: Evaluate the timeline and funding required to remediate the disclosed material weaknesses in financial reporting controls.