Business Context and Reporting Period
Company: FiEE, Inc. (formerly Minim, Inc.)
Filing Type: Form 10-K (Annual Report)
Period Ended: December 31, 2025
Business Overview: FiEE has completed a strategic transformation from a legacy consumer networking hardware business (Motorola brand license ended 2023) to a digital service provider. The new business model focuses on three core areas: (1) Digital Content and Multi-Channel Network (MCN) services leveraging AI; (2) Customized Software Development; and (3) Digital Authentication services for art using AI and blockchain (via the acquisition of Houren-Geiju Kabushikikaisha, or "HGK," in November 2025).
Listing Status: Common stock trades on Nasdaq Capital Market under symbol "FIEE." The company regained compliance with Nasdaq listing rules in May 2025 after a period of suspension but remains under a "Panel Monitor" until May 2026.
Key Financial Metrics
| Metric (in thousands) | 2025 | 2024 |
|---|---|---|
| Revenues | $6,194 | $640 |
| Gross Profit | $5,354 | $207 |
| Gross Margin | 86.4% | 32.4% |
| Operating Income | $1,551 | ($4,236) |
| Net Income (Loss) | $1,072 | ($4,224) |
| Cash and Equivalents (Year End) | $3,084 | $30 |
| Working Capital | $2,430 | ($272) |
| Operating Cash Flow | $3,637 | ($3,772) |
Debt and Liquidity: As of December 31, 2025, the company had no borrowings outstanding. A convertible note of $300,000 issued to a related party in February 2025 was converted into common stock in October 2025. The company holds $3.1 million in cash but reports a substantial accumulated deficit of $95.6 million.
Material Changes vs. Prior Period
- Revenue Surge: Revenue increased by 867.9% to $6.2 million, driven entirely by the new digital service lines. Legacy hardware revenue (Cable Modems & gateways) dropped to zero.
- Profitability Turnaround: The company shifted from a net loss of $4.2 million in 2024 to a net income of $1.1 million in 2025. This was primarily due to the high-margin nature of the new SaaS/MCN services (86.4% gross margin) compared to legacy hardware.
- Acquisitions: Completed two significant asset acquisitions in 2025:
- Yixuntong (June 2025): Acquired fixed assets and IP for $1.4 million to support software services.
- HGK (November 2025): Acquired a Japanese technology company for $3.5 million to launch digital authentication services.
- Expense Structure: General and Administrative (G&A) expenses increased by 61.8% to $3.3 million, largely due to $1.1 million in non-cash warrant issuance costs and professional fees related to the business transformation. Selling and marketing expenses increased by 531.7% to support the new service launch.
Guidance, Outlook, Risks, and Unusual Items
Outlook and Capital Needs
Management anticipates requiring approximately $10 million in total funding over the next three years to scale AI technology and SaaS systems. To support this, the company has entered into a $15 million equity line of credit with Helena Global Investment Opportunities I Ltd. and executed a private placement agreement in January 2026 for approximately $2 million.
Going Concern Warning
Despite reporting net income and positive operating cash flow in 2025, the auditors have issued a "Substantial Doubt" opinion regarding the company's ability to continue as a going concern. Management acknowledges that current cash reserves may not be sufficient to fund operations for the next twelve months without additional financing.
Material Weakness in Internal Controls
The company identified a material weakness in internal control over financial reporting due to insufficient accounting staffing during the restructuring. This resulted in prior-period errors and ineffective disclosure controls as of December 31, 2025. Remediation efforts include hiring additional SEC-experienced accounting personnel and enhancing review procedures.
Risks
- Customer Concentration: One customer accounted for approximately 75% of total accounts receivable (acquired via HGK), though this represented only 1% of total revenue.
- Regulatory & Listing: Continued risk of Nasdaq delisting if compliance requirements are not met during the monitoring period. Potential impact of U.S. regulations on companies with Hong Kong/PRC ties.
- Technology Risks: Reliance on AI and blockchain exposes the company to risks regarding algorithmic bias, data privacy, and cybersecurity.
Investor Verification Checklist
- Going Concern Status: Verify the closing of the January 2026 private placement ($2M) and the utilization of the Helena equity line to ensure sufficient liquidity for 2026 operations.
- Revenue Quality: Review the collectability of the $2.1 million accounts receivable, noting that 75% is concentrated in a single customer acquired in late 2025.
- Internal Controls: Monitor the remediation of the material weakness in internal controls to ensure future financial reporting accuracy and avoid restatements.
- Nasdaq Compliance: Track the company's status under the Nasdaq "Panel Monitor" through May 2026 to assess delisting risks.
- Acquisition Integration: Assess the performance and revenue contribution of the newly acquired HGK and Yixuntong assets in the first half of 2026.