AIXC

Risks Related to Our Business We have a history of negative cash flows and will require additional financing to execute our business strategy.
We have incurred recurring losses and experienced negative cash flows from operations.
We incurred net loss of $16.9 million for the year ended December 31, 2025.
As of December 31, 2025, we remain in a development and investment stage with respect to our digital asset and software initiatives and have not generated material revenue from these initiatives.
Our ability to continue developing and deploying our software platforms depends on our ability to obtain additional financing.
There can be no assurance that such financing will be available on acceptable terms, or at all.
If we are unable to secure sufficient capital when needed, we may be required to delay, reduce, or eliminate development activities, reduce operating expenses, or otherwise materially modify our business plans.
Any equity financing may result in substantial dilution to our stockholders, and debt or convertible debt financing may impose restrictive covenants that could adversely affect our operations.
We are in an early-stage development phase under our current business model.
Following the divestiture of our prior diagnostics business , we transitioned to a digital asset–focused software strategy.
Our RWA + EAI initiatives remain in development phases and have not generated material revenue.
We have limited operating history under our current business model, and investors have limited historical information upon which to evaluate our prospects.
Our future success depends on our ability to successfully develop, deploy, and commercialize new software platforms in competitive and evolving markets.
Our ability to grow depends on several factors, including successful product development, user adoption, access to capital, technological performance, regulatory developments, and market conditions affecting digital assets.
If we are unable to successfully execute our development plans, attract users, or compete effectively, our growth prospects may be limited.
Additionally, evolving regulatory frameworks, economic conditions, or declines in digital asset market activity may constrain our ability to expand operations or generate revenue.
Our customer-facing platforms may not achieve user adoption or generate revenue.
The success of BesTrade and our planned RWA + EAI initiatives depends on our ability to attract and retain users.
User adoption may be adversely affected by competition, market volatility, technological limitations, regulatory changes, or security concerns.
If we are unable to achieve sufficient user engagement, our ability to generate subscription-based or other revenue from these platforms may be materially impaired.
Our software development efforts may be delayed, exceed budget, or fail to perform as intended.
The development of BesTrade and RWA + EAI involves technical complexity, integration challenges, and evolving product requirements.
Development timelines may be extended due to technical obstacles, changes in regulatory requirements, resource constraints, or unforeseen operational issues.
Internally developed systems may contain errors, defects, or vulnerabilities that could result in operational disruption, reputational harm, or financial loss.
Our AI Blockchain platform is internally developed and may not function as intended.
AI Blockchain is used internally to support digital asset portfolio monitoring, analytics, and operational oversight.
As an internally developed and evolving system, it may contain errors, design limitations, or cybersecurity vulnerabilities.
Failures or deficiencies in internal systems could impair decision-making, result in inaccurate reporting, or expose us to financial or operational risk.
We are exposed to significant digital asset price volatility.
We maintain digital assets as part of our treasury and investment activities, including our internally managed C10 portfolio.
Digital asset markets have historically experienced significant price volatility.
Market fluctuations may materially impact the fair value of our holdings and could adversely affect our financial condition and results of operations.
Digital asset prices may be influenced by factors beyond our control, including regulatory developments, macroeconomic conditions, market sentiment, technological changes, and security events.
The regulatory environment surrounding digital assets, tokenization, and AI-enabled financial tools is evolving and uncertain.
Digital asset markets and tokenization initiatives are subject to evolving regulatory frameworks in the United States and internationally.
Regulatory authorities may impose new or additional requirements relating to securities laws, commodities laws, anti-money laundering compliance, custody requirements, or other regulatory regimes.
Changes in applicable regulations or regulatory interpretations could limit our ability to operate our platforms as currently contemplated, increase compliance costs, or require modification of our business model.
Our platforms could be subject to regulatory classification that imposes additional obligations.
BesTrade is designed to provide analytics and informational tools and does not operate as a broker, exchange, custodian, or trading venue.
However, regulatory authorities may interpret aspects of our activities differently.

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Gone since FY2024

Risks Related to Our Business Various factors raise substantial doubt about the Company’s ability to continue as a going concern.
The Company has incurred significant losses since its inception, including a net loss of $6.3 million for the year ended December 31, 2024, and has an accumulated deficit of $123.1 million as of December 31, 2024.
These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern.
The Company’s continuation as a going concern is dependent upon its ability to generate positive cash flows from operations and to secure additional sources of equity and/or debt financing.
Despite the Company’s intent to fund operations through equity and debt financing arrangements, there is no assurance that such financing will be available on terms acceptable to the Company, if at all.
Our independent auditors have included an explanatory paragraph in their audit report regarding the Company’s ability to continue as a going concern.
This going concern risk may materially limit our ability to raise additional funds through the issuance of new debt or equity or may adversely affect the terms upon which such capital may be available.
The inability to obtain sufficient financing on acceptable terms could have a material adverse effect on the Company’s financial condition, results of operations, and business prospects.
The Company is actively pursuing strategies to mitigate these risks.
However, there can be no assurance that these efforts will prove successful or that the Company will achieve its intended financial stability.
The failure to successfully address these going concern risks may materially and adversely affect the Company’s business, financial condition, and results of operations.
Investors should consider the substantial risks and uncertainties inherent in the Company’s business before investing in the Company’s securities.
Any failure to develop or maintain effective internal controls over financial reporting or difficulties encountered in implementing or improving our internal controls over financial reporting could harm our operating results and prevent us from meeting our reporting obligations.
Effective internal controls, particularly those related to financial reporting, are necessary for us to produce reliable financial reports.
If we cannot provide reliable financial reports, our business and operating results could be harmed, investors could lose confidence in our reported financial information, and the trading price of our common stock could drop significantly.
In addition, investors relying upon this misinformation could make an uninformed investment decision, and we could be subject to sanctions or investigations by the SEC or other regulatory authorities or to stockholder class action securities litigation.
In connection with the audit of our financial statements as of and for the year ended December 31, 2024 (the “2024 audit”), our management identified a material weakness in our internal control over financial reporting related to the lack of accounting department resources and/or policies and procedures to ensure recording and disclosure of items in compliance with U.S.
This material weakness resulted in adjustments to our prepaid expense accounts and recording short term notes receivable net of current expected credit losses in connection with the 2024 audit.
In response to the material weakness, we took a number of remediation steps to enhance our internal controls, including implementing additional procedures and utilizing external consulting resources with experience and expertise in U.S.
GAAP and public company accounting and reporting requirements to assist management with its accounting and reporting of complex and/or non-recurring transactions and related disclosures.
In connection with the audit of our financial statements as of and for the year ended December 31, 2024 (the “2024 audit”), our management determined that the material weakness identified in connection with the 2024 audit had not been fully remediated and resulted in adjustments to the accounting treatment related to our prepaid expense accounts and recording short term notes receivable net of current expected credit losses during the 2024 audit, which resulted in the late filing of the 2024 Annual Report.
During the year ended December 31, 2024 audit, we identified the lack of sufficient number of personnel within the accounting function to adequately segregate duties, the Company did not have a designed and implemented effective Information Technology General Controls (“ITGC”) related to access controls to financial accounting system, and the Company did not have formalized documentation of its processes and controls that could be evaluated for proper design and implementation.
We intend to continue to take steps to enhance our internal controls, including implementing additional internal procedures and utilizing well-established external consulting resources with experience and expertise in U.S.
GAAP and public company accounting and reporting requirements.
If we are unable to remediate the material weaknesses and achieve and maintain effective internal control over financial reporting and effective disclosure controls, our business could be adversely affected.
Continued uncertain economic conditions, including inflation and the risk of a global recession could impair our ability to forecast and may harm our business, operating results, including our revenue growth and profitability, financial condition and cash flows.
While U.S. inflation rates have come down substantially from their 2022 highs, the U.S. economy is still experiencing higher than target inflation rates, and high levels of inflation persist in many countries around the world.
Historically, we have not experienced significant inflation risk in our business.
The global economy suffers from slowing growth and elevated interest rates, and many economists are still unsure whether a global recession may begin in the near future.
If the global economy slows, our business would likely be adversely affected.
Our business and operations would suffer in the event of computer system failures, cyberattacks or a deficiency in our cybersecurity or a natural disaster.
There are growing risks related to the security, confidentiality and integrity of personal and corporate information stored and transmitted electronically due to increasingly diverse and sophisticated threats to networks, systems and data security.
Potential attacks span a spectrum from attacks by criminal hackers, hacktivists, and nation state or state-sponsored actors, to employee malfeasance and human or technological error.
Despite the implementation of security measures, our internal computer systems, and those of third parties on which we rely (including our vendors, contractors and other third-party partners who process information on our behalf or have access to our systems), are vulnerable to damage from computer viruses, malware, ransomware, phishing attacks and other forms of social engineering, denial-of-service attacks, third party or employee theft or misuse and other negligent actions, natural disasters, terrorism, war, telecommunication and electrical failures, cyberattacks or cyber-intrusions over the internet, security incidents, disruptions, attachments to emails, persons inside our organization, or persons with access to systems inside our organization.
The risk of a security breach or disruption, particularly through cyberattacks or cyber intrusion, including by computer hackers, foreign governments, and cyber terrorists, has generally increased as the number, intensity and sophistication of attempted attacks and intrusions from around the world have increased.
If such an event were to occur and cause interruptions in our operations, it could result in a material disruption of our product development programs.
To the extent that any disruption or security breach was to result in a loss of or damage to our data or applications, or inappropriate disclosure of confidential or proprietary information, we could incur material legal claims (including class claims) and liability, substantial remediation costs, regulatory enforcement, liability under data protection laws, additional reporting requirements and damage to our reputation, and the further development of our product lines could be delayed.
Our ability to achieve our expansion objectives and to manage our growth effectively depends upon a variety of factors, including our ability to attract and retain skilled employees, to successfully position and market our product candidates when available, to protect our existing intellectual property, to capitalize on the potential opportunities we are pursuing with third parties and to acquire sufficient funding whether internally or externally.
To accommodate growth and compete effectively, we will need cash to fund our operations, including continuing our research and development efforts on our product candidates, develop additional procedures and controls and increase, train, motivate and manage our workforce.
There is no assurance that our personnel, systems, procedures and controls will be adequate to support our potential future operations.

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Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2024 ↗, FY2025 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

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