Tue, May 13, 6:33 PM (30 days ago)
**ALT5 Sigma Corporation (ALTS) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $5.5 million, up from $0 in Q1 2024, driven by the acquisition of ALT5 Subsidiary. - **Gross Profit:** $2.6 million, with a 47% gross margin. - **Operating Loss:** $2.2 million, primarily due to increased selling, general, and administrative expenses post-acquisition. - **Net Loss:** $2.9 million, with a negative working capital of $6.4 million. - **Cash Flow:** $1.5 million used in operations, with $1.5 million provided by financing activities. **Profit Margins:** - **Gross Margin:** 47% for the Fintech segment. - **Operating Margin:** -39.3% for the Fintech segment. **Cash Flow:** - **Operating Cash Flow:** -$1.5 million. - **Financing Cash Flow:** +$1.5 million, mainly from notes payable and warrant conversions. **Earnings Changes:** - **Revenue Increase:** $5.5 million due to ALT5 Subsidiary acquisition. - **Operating Loss Increase:** $362,000 due to higher expenses. **Segment Performance:** - **Fintech:** $5.5 million in revenue, $2.6 million in gross profit, $362,000 operating loss. - **Biotech:** No revenue, $540,000 operating loss. - **Corporate and Other:** No revenue, $1.3 million operating loss. **Trends and Uncertainties:** - **Positive:** Revenue growth from the Fintech segment. - **Negative:** Increased operating losses and negative working capital. - **Uncertainties:** Dependence on future capital raises and the success of the biotech subsidiary transaction. **Future Operations Impact:** - **Liquidity:** The company plans to raise funds to support biotech development and operations. - **Going Concern:** The company's ability to continue as a going concern is dependent on successful fundraising and operational improvements. **Key Metrics:** - **Current Ratio:** Approximately 0.83 (current assets of $31.8 million / current liabilities of $38.2 million). - **Debt-to-Equity Ratio:** Approximately 2.29 (total liabilities of $48.8 million / total equity of $21.8 million). **Conclusion:** ALT5 Sigma Corporation showed significant revenue growth in Q1 2025 due to the ALT5 Subsidiary acquisition. However, the company faces challenges with increased operating losses, negative working capital, and uncertainties surrounding future fundraising efforts. The company's ability to continue as a going concern is dependent on successful capital raises and operational improvements.