ASPI

MKT CAP $315.1MP/E —DIV YIELD —FCF YIELD -26.53%REV TTM $30.9M +573.4%NET INCOME −$117.3MNET CASH $159.8M52W 2.03 – 10.76NEXT EARNINGS Nov 12 EST.SEC XBRL · TTM TO Invalid Date

How ASPI rewrote its risk factors

10-K ITEM 1A · FY2024 → FY2025

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Summary of Risk Factors Our business is subject to numerous material and other risks and uncertainties, further described below, that you should be aware of in evaluating our business.
These risks include, but are not limited to, the following: Risks Related to Our Limited Operating History, Financial Position and Need for Additional Capital • We have incurred significant net losses since inception, and we expect to continue to incur significant net losses for the foreseeable future. • We also have a limited operating history, which may make it difficult to evaluate our prospects and likelihood of success. • Our business is dependent on our ability to recognize the anticipated benefits of acquisitions. • We currently have no sales attributable to enriched isotopes, but we expect to be heavily dependent on a few large customers to generate a majority of our revenues. • We will require substantial additional capital to finance our operations, which may not be available on acceptable terms, or at all.
Risks Related to the Development and Commercialization of Our Future Isotopes We are continuing our research and development efforts for isotopes using the ASP technology and the QE technology.
We may be unable to advance our future isotopes in development, obtain applicable regulatory approval and ultimately commercialize our future isotopes, or experience significant delays in doing so. • Our success depends on our future customers’ ability to successfully commercialize products that are produced from our isotopes, as well as our suppliers’ ability to provide us components as and when expected and at expected prices. • Even if the products that we or our customers may produce using the ASP technology receive regulatory approval, it may fail to achieve market acceptance by our target market of customers.
For example, if technology developed for the enrichment of isotopes can be applied to the creation or development of weapons-grade materials, then it may be considered “dual use” technology and be subject to limitations on public disclosure or export. • Our Exploration Rights and Production Right in South Africa could be altered, suspended, or canceled for a variety of reasons, including uncertainties associated with national and local legislation.
Risks Related to our Operations in South Africa • Our operations in South Africa could be disrupted for a variety of reasons, including economic, political or social instability, which could prevent us from completing our development activities or have a material adverse effect on our operations and profits.
Risks Related to Our Intellectual Property • Our and certain of Renergen’s intellectual property and other proprietary rights, products or processes is not protected through patents or formal copyright registration.
As a result, we do not have the full benefit of patent or copyright laws to prevent others from replicating our technologies and we may be unable to adequately protect our intellectual property and proprietary rights and prevent others from making unauthorized use of our products and technology. • Our ASP technology and QE technology may be found to infringe third-party intellectual property rights. • If we fail to comply with Renergen’s obligations under license or technology agreements with third parties, we may be required to pay damages and could lose license rights that are critical to Renergen’s business.
Risks Related to Our Business Operations, Employee Matters and Managing Growth • We will need to expand our organization, and we may experience difficulties in managing this growth. • Our international operations subject us to risks of doing business in foreign countries.
Risks Related to Ownership of Our Common Stock • Since our listing on the Nasdaq Capital Market in November 2022, there has been only a limited public market for our Common Stock and the price of our stock may be volatile.
Additionally, if we are unable to maintain listing of our securities on Nasdaq or any stock exchange, our stock price could be adversely affected and the liquidity of our stock and our ability to obtain financing could be impaired. • We are an emerging growth company and a smaller reporting company, and the reduced reporting requirements applicable to such companies may make our Common Stock less attractive to investors.
General Risk Factors • We will incur significant increased costs as a result of operating as a public company, and our management will be required to devote substantial time to new compliance initiatives. • We have identified a material weakness in our internal control over financial reporting.
If our remediation of this material weakness is not effective, or if we experience material weaknesses in the future or otherwise fail to implement and maintain an effective system of internal controls in the future, we may not be able to accurately report our financial condition or results of operations which may adversely affect investor confidence in us, and as a result, the value of our Common Stock. • We have been and could be in the future subject to securities class action litigation.
Risks Related to Quantum Leap Energy’s Business and Industry QLE’s future success depends, in part, on target markets that are not yet, and may never be, established.
Furthermore, even if QLE’s target markets grow as expected by our management team, our ability to penetrate these markets is uncertain. • Technological changes could render QLE’s technology uncompetitive or obsolete, which could prevent QLE from achieving market share and sales.
Further, QLE may be unable to attract customers as quickly as expected, or at all, and competition from existing or new companies could cause QLE to experience downward pressure on prices, fewer customer orders, reduced margins, the inability to take advantage of new business opportunities, and the loss of market share.
Risks Related to the Expansion of the Virginia Gas Project • As we further expand Renergen’s current operations into Phase 2, we may face additional problems associated with natural gas exploration and development projects, including potential problems securing additional supporting authorizations, licenses and permits, as well as unforeseen difficulties, delays and costs in construction (including potential cost-overruns, if underlying assumptions prove to be inaccurate) and operation of Phase 2. • Managing a project as substantial in size as Phase 2 of the Virginia Gas Project requires sufficient technical, commercial and project management capacity.
There can be no assurance that Renergen’s current management team has sufficient capacity, or that the project will operate as expected, incur costs within expected estimates, or that we will be able to obtain the necessary financing for Phase 2 in a timely manner and/or on acceptable terms, if at all.
Risks Related to Renergen’s Business • Renergen’s drilling results in South Africa may be more uncertain than drilling results in areas that are developed and have established production.
Additionally, Renergen’s identified drilling locations are scheduled out over many years, making them susceptible to uncertainties that could materially alter the occurrence or timing of their drilling. • Natural gas prices are volatile.
A sustained decline in natural gas prices could adversely affect our business, financial condition and results of operations.
Further, we may be unable to obtain, maintain or renew permits, leases or licenses necessary for Renergen’s operations, the failure of which could impair our ability to conduct Renergen’s operations.
Risks Related to Renergen’s Indebtedness and Liquidity The DFC Credit Facility Agreement and IDC Loan Agreement place operating restrictions on Renergen and create default risks.
Further, we may not be able to generate sufficient cash to service all of Renergen’s indebtedness and may be forced to take other actions to satisfy Renergen’s obligations under applicable debt instruments, which may not be successful. • Renergen’s outstanding indebtedness under the IDC Loan Agreement bears interest at a variable rate, which makes us more vulnerable to increases in interest rates and could cause Renergen’s interest expense to increase and decrease cash available for operations and other purposes.
We have not yet demonstrated the ability to produce commercial quantities of enriched isotopes using the ASP technology or QE technology nor an ability to overcome many of the risks and uncertainties frequently encountered by companies in the medical, technology and energy industries, including an ability to obtain applicable regulatory approvals, manufacture any isotopes at commercial scale, or conduct sales and marketing activities necessary for successful isotope commercialization.
Furthermore, Renergen’s LNG and helium extraction operations similarly have a limited financial and operating history.
Renergen began producing LNG in September 2022 and has produced limited quantities of LNG to date.
The selling and distribution of LNG began in November 2022.
Helium commissioning and production was achieved in January 2023.
Consequently, any predictions about our future performance may not be as accurate as they would be if we had a history of successfully developing and commercializing isotopes, and such predictions may differ materially from our actual results of operations and financial performance.
For the years ended December 31, 2025 and 2024, we reported a net loss of $159.8 million and $32.4 million, respectively.
As of December 31, 2025, we had an accumulated deficit of $231.3 million.
We expect to continue to incur significant losses for the foreseeable future, and we expect these losses to increase as we: • continue to invest in our research and development activities; • continue to develop Phase 2 of the Virginia Gas Project; • seek applicable regulatory approvals for any future isotopes that we may successfully develop; • experience any delays or encounter any issues with any of the above, including but not limited to failed research and development activities, safety issues, or other regulatory challenges; • hire additional engineering and production personnel and build our internal resources, including those related to audit, patent, other legal, regulatory and tax-related services associated with maintaining compliance with exchange listing and SEC requirements, director and officer insurance premiums and investor and public relations costs; • obtain, expand, maintain, enforce and protect our intellectual property portfolio; • establish a sales, marketing and distribution infrastructure and establish manufacturing capabilities, whether alone or with third parties, to commercialize future isotopes (assuming receipt of applicable regulatory approvals), if any; and • operate as a public company.
Certain of our future prospects are tied directly to the end markets that use our isotopes including the diagnostic medical imaging industry and depend on our ability to successfully introduce our isotopes and adapt to a changing technology and medical practice landscape.
Our success will depend in large part on the success of our management in integrating the acquired assets into our operations.
In July 2022, we acquired assets comprising a dormant Si-28 aerodynamic separation processing plant from Klydon located in Pretoria, South Africa for ZAR 6,000,000 (which at the then-current exchange rate was approximately $364,000).
In October 2023, we entered into a Share Purchase Agreement with Nucleonics Imaging Proprietary Limited, a company incorporated in South Africa, to purchase 51% of the ordinary shares (the “initial shares”) in Nucleonics’ wholly-owned subsidiary, PET Labs, a company incorporated in South Africa and dedicated to nuclear medicine and the science of radiopharmaceutical production.
We agreed to pay a total of $2.0 million for the initial shares in two installments, which has been paid in full as of December 2025.
In addition, we have an option to purchase the remaining 49% of the ordinary shares, exercisable until January 31, 2027, for $2,200,000.
In addition, in August 2025 QLE completed the acquisition of a controlling interest in Skyline and in January 2026, we acquired all of the issued and outstanding ordinary shares of Renergen.

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Summary of the Material and Other Risks Associated with Our Business Our business is subject to numerous material and other risks and uncertainties that you should be aware of in evaluating our business.
These risks include, but are not limited to, the following: • We have incurred significant net losses since inception, and we expect to continue to incur significant net losses for the foreseeable future. • We have a limited operating history, which may make it difficult to evaluate our prospects and likelihood of success. • Our current business is tied directly to the nuclear medicine and quantum computing industries and depends on our ability to successfully introduce our medical and other specialty isotopes to changing technology and a changing medical practice landscape. • Our business is dependent on our ability to recognize the anticipated benefits of acquisitions, including our acquisition of assets of Molybdos (Pty) Limited in the “business rescue” auction, the assets and intellectual property we acquired from Klydon Proprietary Ltd, and our investment in PET Labs Pharmaceuticals; • We currently have no sales attributable to isotopes, but we expect to be heavily dependent on a few large customers to generate a majority of our revenues from sales of our future isotopes.
Our operating results could be adversely affected by a reduction in business with our future significant customers. • We are still conducting research and development efforts for isotopes such as Mo-100, Zinc-68, Xenon-129/136, Germanium-70/72/74 and Chlorine-37 using the ASP technology.
If we are unable to advance our future isotopes in development, obtain applicable regulatory approval and ultimately commercialize our future isotopes, or experience significant delays in doing so, our business will be materially harmed. • We are awaiting the approvals necessary to conduct early research and development efforts for isotopes such as Uranium-235 utilizing the Quantum Enrichment technology.
The necessary approvals may take a significant amount of time and may never materialize.
As a result, we may not be able to enter into the nuclear energy space utilizing our technology. • Obtaining and maintaining our patent protection depends on compliance with various procedures, document submissions, fee payments and other requirements imposed by governmental patent agencies, and our patent protection could be reduced or eliminated for non-compliance with these requirements. • Since our listing on the Nasdaq Capital Market in November 2022, there has been only a limited prior public market for our Common Stock, the stock price of our Common Stock may be volatile or may decline regardless of our operating performance and you may not be able to resell your shares quickly or at the market price if trading in shares of our common stock is not active. • If we fail to maintain an effective system of internal control over financial reporting, we may not be able to accurately report our financial results or prevent fraud.
As a result, stockholders could lose confidence in our financial and other public reporting, which would harm our business and the trading price of our Common Stock.
We have not yet demonstrated the ability to produce commercial quantities of enriched isotopes using the ASP technology or Quantum Enrichment technology.
We have not yet demonstrated an ability to overcome many of the risks and uncertainties frequently encountered by companies in the medical, technology and energy industries, including an ability to obtain applicable regulatory approvals, manufacture any isotopes at commercial scale, or conduct sales and marketing activities necessary for successful isotope commercialization.
Consequently, any predictions about our future performance may not be as accurate as they would be if we had a history of successfully developing and commercializing isotopes.
For the years ended December 31, 2024 and 2023, we reported a net loss of $32.4 million and $16.3 million, respectively.
As of December 31, 2024, we had an accumulated deficit of $56.2 million.
We expect to continue to incur significant losses for the foreseeable future, and we expect these losses to increase as we: • continue to invest in our research and development activities; • seek applicable regulatory approvals for any future isotopes that we may successfully develop; • experience any delays or encounter any issues with any of the above, including but not limited to failed research and development activities, safety issues, or other regulatory challenges; • hire additional engineering and production personnel and build our internal resources, including those related to audit, patent, other legal, regulatory and tax-related services associated with maintaining compliance with exchange listing and SEC requirements, director and officer insurance premiums and investor and public relations costs; • obtain, expand, maintain, enforce and protect our intellectual property portfolio; • establish a sales, marketing and distribution infrastructure and establish manufacturing capabilities, whether alone or with third parties, to commercialize future isotopes (assuming receipt of applicable regulatory approvals), if any; and • operate as a public company.
Our future prospects are tied directly to the end markets that use our isotopes including the diagnostic medical imaging industry and depend on our ability to successfully introduce our isotopes and adapt to a changing technology and medical practice landscape.
The success of the company will depend in large part on the success of our management in integrating the acquired assets into the company.
In July 2022, we acquired assets comprising a dormant Silicon-28 aerodynamic separation processing plant from Klydon located in Pretoria, South Africa for ZAR 6,000,000 (which at the then current exchange rate was approximately $364,000).
We will not know whether the assets that we acquired will work according to our expectations until we have produced commercial quantities of isotopes at our enrichment facilities.
The acquisition of a controlling interest in PET Labs Pharmaceuticals may fail to result in anticipated benefits but has involved significant investment of financial and other resources.
In October 2023, we entered into a Share Purchase Agreement with Nucleonics Imaging Proprietary Limited, a company incorporated in South Africa, to purchase 51% of the ordinary shares (the “initial shares”) in Nucleonics’ wholly-owned subsidiary, PET Labs Pharmaceuticals Proprietary Limited, a company incorporated in South Africa and dedicated to nuclear medicine and the science of radiopharmaceutical production.
We agreed to pay a total of $2,000,000 for the initial shares in two installments.
The first installment of $500,000 was paid in November 2023.
In January 2024, the Company made a partial payment of $264,750 and the balance of $1,235,250 is expected to be paid in 2025.
In addition, we have an option to purchase the remaining 49% of the ordinary shares (the “option shares”).
If we exercise our option to purchase the option shares (which option is exercisable until January 31, 2027, provided that the initial shares have been paid for in full), we have agreed to pay $2,200,000 for the option shares.
Moreover, this acquisition involves substantial investment of funds.
This acquisition may not be successful in generating material revenue, income or other returns, and any resources we committed will not be available to us for other purposes.
Our inability to take advantage of growth opportunities or address risks associated with this acquisition and investment may negatively affect our operating results.
This acquisition may not result in its anticipated benefits, and we may not be able to properly integrate the business with our future products and operations or successfully combine personnel and cultures.
Failure to do so could deprive us of the intended benefits of this acquisition.
However, we expect to rely on a limited number of customers to purchase any isotopes that we produce using the ASP technology or quantum enrichment under long-term contracts.
We expect our expenses to increase substantially in connection with our ongoing and planned activities, particularly as we continue our research and development activities, seek applicable regulatory approvals for any future isotopes that we may successfully develop, and expand our organization by hiring additional personnel.
As of December 31, 2024, our cash was approximately $61.9 million.
We believe, based on our current operating plan, that our existing cash, will be sufficient to fund our operations for at least the next 12 months from the date the financial statements are issued.
As we pursue additional research and development activities related to our ASP technology and seek applicable regulatory approval of our any future isotopes, and otherwise to support our continuing operations, we will require substantial additional capital to support our business operations.
In addition, we expect to incur significant commercialization expenses related to product sales, marketing, manufacturing and distribution (assuming receipt of applicable regulatory approvals for our future isotopes).
Any additional capital raising efforts may divert our management from their day-to-day activities, which may adversely affect our ability to develop and commercialize our future isotopes (assuming receipt of applicable regulatory approvals).
Additionally, as a result of severely diminished liquidity and credit availability, increased interest rates, inflationary pressures, declines in consumer confidence, declines in economic growth, increases in unemployment rates and uncertainty about economic stability, the global credit and financial markets have experienced extreme volatility and disruptions, including severely diminished liquidity and credit availability.
The Company maintains cash balances at many financial institutions in multiple geographies.
While the majority of cash balances are currently held in USD at U.S. financial institutions, our cash balances at those institutions may exceed the Federal Deposit Insurance Corporation (“FDIC”) insurance limit of $250,000 per depositor, per insured bank for each account ownership category.
Although the Company currently believes that the financial institutions with whom it does business, will be able to fulfill their commitments to the Company, there is no assurance that those institutions will be able to continue to do so.

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