AIxCrypto Holdings Reports First Quarter 2026 Results; Highlights Q1 Execution Across Embodied AI, RWA Tokenization, and AI Agent Platforms
Rhea-AI Summary
AIxCrypto (Nasdaq:AIXC) reported Q1 2026 results, remaining pre-revenue while advancing three planned 2026 revenue rails: the EAI Data Platform, Agentir AI Agent Arena, and RWA equity tokenization. Q1 operating expenses were $4.33M with a $1.95M unrealized digital asset loss and $13.13M cash outflow, mainly from a $10M Faraday Future equity investment, later expanded to $12M. Cash was $6.2M and digital assets $6.2M at March 31, 2026. Conversion of Series B preferred added 15.07M common shares, raising total to 20.23M and simplifying the capital structure.
Positive
- Cash and cash equivalents of $6.20M and digital assets of $6.20M at March 31, 2026
- $10.0M prepaid equity investment in Faraday Future, later expanded to $12.0M total position
- Three defined 2026 revenue rails across EAI Data Platform, Agentir, and RWA tokenization
- $1.3M year-over-year decline in investor relations expense in Q1 2026
- Interest expense reduced to $0 in Q1 2026 after promissory note repayment
- Conversion of 33,858 Series B preferred into 15.07M common shares, simplifying capital structure
Negative
- Zero revenue in Q1 2026 as AIxCrypto remains a pre-revenue company
- Total operating expenses increased to $4.33M from $2.72M in Q1 2025
- $1.95M unrealized non-cash mark-to-market loss on digital asset treasury in Q1 2026
- Operating activities used $4.50M of cash in Q1 2026
- Net cash decreased by $13.13M during Q1 2026, largely due to Faraday investment
- Common shares outstanding rose to 20.23M from 5.16M after preferred conversion
News Market Reaction – AIXC
On the day this news was published, AIXC declined 13.00%, reflecting a significant negative market reaction. Argus tracked a peak move of +2.7% during that session. Argus tracked a trough of -11.6% from its starting point during tracking. Our momentum scanner triggered 6 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $5M from the company's valuation, bringing the market cap to $30.55M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings,AI Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Mar 24 | Full-year 2025 results | Positive | -3.0% | Reported 2025 results and detailed pivot to AI and blockchain infrastructure. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
The prior earnings/AI release saw a negative reaction despite transformational positioning, suggesting a tendency for weak price response around earnings-type updates.
In late March 2026, AIxCrypto reported full-year 2025 results, highlighting a pivot from clinical-stage biotech to AI and blockchain infrastructure, supported by a $41.0M PIPE and assets of about $31M. That earnings/AI announcement produced a -3.03% 24-hour move. Today’s Q1 2026 update continues the pre-revenue build-out, detailing operating expenses, digital asset marks, and capital deployment into Faraday Future, fitting into the same transformation narrative.
Key Terms
rwa tokenization financial
rwa equity tokenization financial
mark-to-market financial
series b convertible preferred stock financial
convertible note financial
prepaid investment financial
digital assets financial
asu 2023-08 regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
Operational pipeline advances across all three 2026 revenue rails; aggregate Faraday Future investment position expanded to
Management Commentary
"In Q1, our product pipeline progressed from concept to documented designs, internal testing, and preliminary contract conversations with counterparties. The products, the contracts, and the partnerships that drive our 2026 revenue streams advanced meaningfully during the quarter," said Jerry Wang, Co-Chief Executive Officer of AIxCrypto. "Our 2026 execution priorities remain unchanged. Our objective over the next two quarters is to transition from the Q1 foundation toward initial product delivery and revenue generation across our Physical AI infrastructure - including the EAI Data Platform, our AI Agent product line, and RWA equity tokenization."
"During Q1 we continued the work of aligning our cost base with the transformed business," said Koti Meka, Chief Financial Officer of AIxCrypto. "Our framework for operational sustainability rests on three things: revenue ramp, operating expense normalization, and disciplined treasury management. We will continue to provide quarterly updates against the framework."
Q1 FY2026 Highlights
- EAI Data Collaboration Project with Faraday Future initiated as the first step of the broader EAI ecosystem collaboration (including EAI) with Faraday Future, structured as a dual-track B2B/B2C platform; project team established and contract drafting underway during the quarter.
- Agentir AI Agent Arena platform completed initial development of its four core game modes; reached an internal review milestone in early May, with a phased public launch ahead.
- RWA equity tokenization strategy converted into a defined execution path during the quarter; structural review completed, with Faraday Future Class A common stock as the proof-of-concept asset.
- Capital position at March 31, 2026:
$6,201,121 $6,197,267 $10,000,000 - Subsequent to quarter end, the Company expanded its aggregate Faraday Future investment position to
$12.0 million $1.3 million
Q1 FY2026 Operational Highlights
EAI Ecosystem Collaboration with Faraday Future — Data Platform as First Workstream
During the quarter, the Company advanced its broader EAI and Physical AI ecosystem collaboration with Faraday Future, with the EAI Data Collaboration Project serving as the workstream formally launched under that framework. Late in the quarter, the parties initiated the operational mobilization of the EAI Data Collaboration Project, which is being structured as a dual-track platform consisting of a B2B Enterprise Data Platform for institutional buyers and a B2C decentralized crowdsourced data collection platform for the broader developer and contributor community. This collaboration is intended to support Physical AI applications through scalable data infrastructure and ecosystem participation. During the quarter, the Company established the core project team, refined the architecture, and continued defining data rights boundaries and commercialization pathways.
Agentir — AI Agent Arena Platform
During Q1, the Company completed initial infrastructure and technical support for Agentir's four core game modes and finalized a commercial model centered on access pass economics and arena fees. The platform reached an internal review milestone in early May, and the Company is preparing for a phased public launch with timing to be announced when finalized.
RWA Equity Tokenization — Faraday Future as Proof-of-Concept Asset
Q1 was the period in which the Company converted its RWA equity tokenization strategy into a defined execution path, with Faraday Future Class A common stock facilitated through a designated third-party structure as the proof-of-concept asset. During the quarter, the Company completed an internal review of the evolving structural and regulatory landscape for digital assets and is structuring the initiative to operate within current applicable regulatory frameworks. A structured comparison of principal tokenization platforms remains in progress.
2026 Outlook — Three Concurrent Revenue Rails
The Company's 2026 execution priorities remain unchanged. Management's objective over the next two quarters is to transition from the Q1 foundation toward initial product delivery and revenue generation. That conversion runs along three concurrent revenue rails:
EAI Data Platform:.The Company is working toward a mid-2026 milestone for the first end-to-end transaction test and first data delivery — the proof-of-concept (POC) milestone — alongside the closed-beta launch of the B2B platform and the initial opening of public participation on the B2C platform.
AI Agent Products — Agentir: Agentir's first limited public launch is targeted within the near-term window, with potential revenue arriving from genesis and recurring access pass sales, arena fees, subject to launch readiness and market conditions.
RWA Tokenization: Subject to definitive agreements, the Company is targeting a launch window later this year for its first tokenized equity instrument. The broader objective is to build AIxCrypto into compliant on-chain infrastructure for tokenized equity, designed to operate within applicable regulatory frameworks.
Q1 FY2026 Financial Discussion
Q1 2026 Results Summary
AIxCrypto generated zero revenue in Q1 2026, consistent with the Company's status as a pre-revenue company in the early stage of building its Web3 and AI infrastructure platform. Total operating expenses were
Other expense, net, was
Operating activities used
During Q1 2026, 33,858 shares of Series B Convertible Preferred Stock were converted into 15,074,610 shares of common stock at a Conversion Price of
Conference Call & Webcast
AIxCrypto's management will host a conference call and webcast to discuss its Q1 FY2026 financial results on May 11, 2026, at 4:30 PM Pacific Time . Participants may join the live webcast through the Investor Relations section of the Company's website at ir.aixcrypto.ai. Dial-in information and a replay of the webcast will be available on the Investor Relations website following the conclusion of the call.
About AIxCrypto Holdings, Inc.
AIxCrypto Holdings, Inc. (Nasdaq: AIXC) is a
Forward-Looking Statements
This press release contains "forward-looking statements", including statements regarding AIxCrypto Holdings, Inc. ("AIxCrypto") within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. All of the statements in this press release, including financial projections, whether written or oral, that refer to expected or anticipated future actions and results of AIxCrypto are forward-looking statements. In addition, any statements that refer to expectations, projections, or other characterizations of future events or circumstances are forward-looking statements. These forward-looking statements reflect our current projections and expectations about future events as of the date of this presentation. AIxCrypto cannot give any assurance that such forward-looking statements and financial projections will prove to be correct.
The information provided in this press release does not identify or include any risk or exposures of AIxCrypto that would materially and adversely affect the performance or risk of the company. By their nature, forward-looking statements and financial projections involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking information will not occur, which may cause the Company's actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements and financial projections. Important factors that could cause actual results to differ materially from expectations include, but are not limited to: business, economic and capital market conditions; the heavily regulated industry in which AIxCrypto carries on business; current or future laws or regulations and new interpretations of existing laws or regulations; the inherent volatility and regulatory uncertainty associated with cryptocurrency investments; legal and regulatory requirements; market conditions and the demand and pricing for our products; our relationships with our customers and business partners; our ability to successfully define, design and release new products in a timely manner that meet our customers' needs; our ability to attract, retain and motivate qualified personnel; competition in our industry; failure of counterparties to perform their contractual obligations; systems, networks, telecommunications or service disruptions or failures or cyber-attack; ability to obtain additional financing on reasonable terms or at all; litigation costs and outcomes; our ability to successfully maintain and enforce our intellectual property rights and defend third party claims of infringement of their intellectual property rights; and our ability to manage our growth. Readers are cautioned that this list of factors should not be construed as exhaustive.
All information contained in this press release is provided as of the date of the press release issuance and is subject to change without notice. Neither AIxCrypto, nor any other person undertakes any obligation to update or revise publicly any of the forward-looking statements and financial projections set out herein, whether as a result of new information, future events or otherwise, except as required by law. This is presented as a source of information and not an investment recommendation. This press release does not take into account nor does it provide any tax, legal or investment advice or opinion regarding the specific investment objectives or financial situation of any person. AIxCrypto reserves the right to amend or replace the information contained herein, in part or entirely, at any time, and undertakes no obligation to provide the recipient with access to the amended information or to notify the recipient thereof.
Forward-looking statements are often identified by words such as "may," "could," "would," "might," or "will," indicating possible future actions, events, or outcomes. These statements involve known and unknown risks, uncertainties, and other factors that could cause actual results to differ significantly from what is expected. Actual results may differ materially due to factors such as the ability to secure financing, complete transactions, meet exchange requirements, consumer demand, competition, and unexpected costs. Given the uncertainties involved, readers should not place undue reliance on these statements. The Company disclaims any intent or obligation to update these forward-looking statements beyond the date of this news release, except as required by law. This caution is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
AIXCRYPTO HOLDINGS, INC. | ||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
(Unaudited) | ||
(Unaudited) | ||
March 31, | December 31, | |
2026 | 2025 | |
ASSETS | ||
Current assets | ||
Cash and cash equivalents | ||
Digital Assets | 6,197,267 | 10,250,497 |
Prepaid investments – related party | 10,000,000 | - |
Prepaid expenses and other current assets | 701,368 | 1,028,506 |
Short-term notes receivable, net of allowance for credit losses of | 385,428 | 343,060 |
Total current assets | 23,485,184 | 30,954,770 |
Non-current assets | ||
Intangible assets | 406,149 | 314,727 |
Other assets - related party | 10,349 | 10,349 |
Total non-current assets | 416,498 | 325,076 |
Total Assets | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Current liabilities | ||
Accounts payable | ||
Related Party Payable | 447,958 | 1,648,945 |
Accrued expenses and other current liabilities | 33,245 | 136,234 |
Warrant liabilities | 72,218 | 141,878 |
Convertible debt | — | 142,236 |
Total current liabilities | 2,030,089 | 3,329,237 |
Commitments and Contingencies (Note 12) | ||
Stockholders' Equity | ||
Preferred stock Series A-2, | 659,040 | 659,040 |
Preferred stock Series B, | 4,750,538 | 31,183,357 |
Common stock, | 84,813 | 69,738 |
Additional paid-in capital | 162,483,668 | 136,065,924 |
Accumulated deficit | (146,106,466) | (140,027,450) |
Total Stockholders' Equity | 21,871,593 | 27,950,609 |
Total Liabilities & Stockholders' Equity | ||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
AIXCRYPTO HOLDINGS, INC. | ||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||
(Unaudited) | ||
For the Three Months Ended | ||
2026 | 2025 | |
EXPENSES | ||
General and administrative | ||
Sales and Marketing | 638,222 | — |
Research and development | 5,072 | 33,167 |
Credit loss expense - short-term note receivable | 142,574 | 197,000 |
Total expenses | 4,333,721 | 2,724,699 |
LOSS FROM OPERATIONS | (4,333,721) | (2,724,699) |
OTHER EXPENSE (INCOME), NET | ||
Gain on change in fair value of warrant liabilities | (69,660) | (39,224) |
Gain on change in fair value of convertible debt | (10,236) | — |
Impairment of intangible assets | 182,619 | — |
Interest expense | — | 73,615 |
Interest income | (303,010) | (112,953) |
Net loss on digital assets | 1,945,582 | — |
Total other expense (income), net | 1,745,295 | (78,562) |
LOSS BEFORE PROVISION FOR INCOME TAXES | (6,079,016) | (2,646,137) |
PROVISION FOR INCOME TAXES | — | 35 |
NET LOSS | (6,079,016) | (2,646,172) |
Total net loss per common share, basic and diluted | ||
Weighted-average number of shares outstanding, basic and diluted | 7,704,597 | 1,456,714 |
AIXCRYPTO HOLDINGS, INC. | ||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
(Unaudited) | ||
For the Three Months ended March | ||
2026 | 2025 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | ||
Adjustments to reconcile loss from operations to net cash used in operating | ||
Stock-based compensation | — | 269 |
Change in fair value of warrant liabilities | (69,660) | (39,225) |
Gain on change in fair value of convertible debt | (10,236) | — |
Provision for credit losses of short-term note receivable | 142,574 | 197,000 |
Impairment of intangible assets | 182,619 | — |
Accrued interest on short-term note receivable | (184,942) | (110,871) |
Interest expense | — | 73,615 |
Net loss on digital assets | 1,945,582 | — |
Payments made with digital assets | 337,839 | — |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other assets | 327,138 | 913,454 |
Accounts payable | 216,724 | (37,330) |
Accrued expenses and other current liabilities | (102,989) | 59,861 |
Related party payables | (1,200,987) | — |
Net cash used in operating activities | (4,495,354) | (1,589,396) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Issuance of short-term note receivable | — | (305,000) |
Prepayment of investments to related party | (10,000,000) | — |
Purchase of digital assets | (338,102) | — |
Sales of digital assets | 2,107,911 | — |
Purchase of intangible assets | (274,041) | — |
Net cash provided by (used in) investing activities | (8,504,232) | (305,000) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repayment of convertible debt | (132,000) | — |
Proceeds from issuance of promissory notes | — | 750,000 |
Net cash provided by (used in) financing activities | (132,000) | 750,000 |
Net change in cash and cash equivalents | (13,131,586) | (1,144,396) |
Cash and cash equivalents - beginning of period | 19,332,707 | 1,174,608 |
Cash and cash equivalents- end of period | ||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Cash paid during the period for: | ||
Interest | $— | $— |
Taxes | $— | $— |
NONCASH FINANCING AND INVESTING ACTIVITIES: | ||
Issuance of common stock for the conversion of Series B preferred shares | $— | |
Issuance of common stock for the conversion of Series A-2 preferred shares | $— | |
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SOURCE AIxCrypto Holdings, Inc.