AEIHIGH SIGNALFINANCIAL10-K

AEI experienced a dramatic deterioration in profitability with gross profit collapsing substantially while revenue declined by a third, despite balance sheet expansion.

The company's core operating performance has severely weakened, with gross margins compressing from 34% to just 7%, indicating either pricing pressure, cost inflation, or a fundamental shift in business mix. The disconnect between deteriorating operations and balance sheet growth suggests either asset revaluations, equity raises, or acquisition activity that investors should scrutinize closely.

Comparing 2026-03-31 vs 2025-03-31View on EDGAR →
FINANCIAL ANALYSIS

AEI's financial profile shows a stark divergence between operations and balance sheet strength. Revenue fell meaningfully by 33% to $16.2M while gross profit collapsed substantially, creating severe margin compression. However, the balance sheet expanded robustly with total assets growing 41% to $136.6M and stockholders' equity increasing 49% to $121.1M, alongside modest debt reduction, suggesting the company strengthened its financial position through non-operating activities even as core business performance deteriorated sharply.

FINANCIAL STATEMENT CHANGES
Gross Profit
P&L
-85%
$8.3M→$1.2M

Gross margin compression — rising input costs, pricing pressure, or unfavorable product mix shift.

Capital Expenditure
Cash Flow
+70.8%
$103K→$175K

Capital expenditure jumped 70.8% — major investment cycle underway; assess returns on deployment.

Stockholders Equity
Balance Sheet
+48.9%
$81.3M→$121.1M

Equity base grew 48.9% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Total Assets
Balance Sheet
+41.2%
$96.8M→$136.6M

Asset base grew 41.2% — expansion through organic growth, acquisitions, or capital deployment.

Revenue
P&L
-33.1%
$24.3M→$16.2M

Revenue declined 33.1% — significant demand weakness or market share loss warrants investigation.

Inventory
Balance Sheet
+26.5%
$5K→$6K

Inventory built 26.5% — monitor whether demand supports this build or if write-downs may follow.

Accounts Receivable
Balance Sheet
-24.6%
$76K→$57K

Receivables declined — improved collection efficiency or conservative revenue recognition.

Current Assets
Balance Sheet
-24.2%
$59.8M→$45.3M

Current assets declined 24.2% — monitor working capital adequacy and short-term liquidity.

Total Debt
Balance Sheet
-21.5%
$157K→$123K

Debt reduced 21.5% — deleveraging strengthens balance sheet and reduces financial risk.

LANGUAGE CHANGES
NEW — 2026-03-31
PRIOR — 2025-03-31
ADDED
( DSS ), an indirect 45.8% equity interest in Value Exchange International, Inc., a 29.0% equity interest in Sharing Services Global Corporation, and a 41.5% equity interest in New Energy Asia Pacific Company Limited.
is a provider of information technology services for businesses, and is traded on the OTC Expert Market (OTC: VEII).
Costs excluded from segment income (loss) before taxes and reported as Other consist of corporate general and administrative activities which are not allocable to the four reportable segments.
The CODMs do not evaluate performance or allocate resources based on segment assets.
Alset RE Holdings main asset is a subdivision development project near Houston, Texas (known as Lakes at Black Oak).
For the years ended December 31, 2025 and 2024, our property development business accounted for 0% and 79% of our total revenues, respectively.
Reorganization of Property Development Business and Spin-off On August 1, 2025, the Company s indirect majority-owned subsidiary Winning Catering Group, Inc.
(then known as LiquidValue Development Inc., or LVD ) entered into a Contribution Agreement with Alset Real Estate Holdings Inc., its wholly owned subsidiary ( Alset Real Estate Holdings ).
Pursuant to the terms of the Contribution Agreement, LVD agreed to transfer its ownership of all of the issued and outstanding shares of Alset EHome Inc., the company that owned substantially all of the assets and liabilities of LVD, to Alset Real Estate Holdings.
On August 18, 2025, LVD completed the distribution of substantially all of its assets to holders of its common stock as of August 15, 2025, in the form of a one-time special dividend (the Distribution ).
REMOVED
( DSS ), an indirect 48.7% equity interest in Value Exchange International, Inc., a 29.0% equity interest in Sharing Services Global Corporation and 39.7% equity interest in Impact Biomedical Inc.
is a provider of information technology services for businesses, and is traded on the OTCQB (OTCQB: VEII).
The CODMs do not evaluate performance or allocate resources based on segment assets, and therefore such information is not presented in the Notes to the Financial Statements.
LiquidValue Development s main asset is a subdivision development project near Houston, Texas (known as Lakes at Black Oak).
For the years ended December 31, 2024 and 2023, our property development business accounted for 79% and 82% of our total revenues, respectively.
(the Seller ), a Texas Limited Partnership and subsidiary of the Company, entered into a Contract for Purchase and Sale and Escrow Instructions (the 2022 Agreement ) with Century Land Holdings of Texas, LLC, a Colorado limited liability company ( Century ).
Pursuant to the terms of the Agreement, the Seller agreed to sell approximately 242 single-family detached residential lots comprising a residential community in the city of Magnolia, Texas.
On November 28, 2022, the parties to the 2022 Agreement entered into an amendment to the 2022 Agreement (the Amendment ).
Pursuant to the Amendment, the parties agreed that Century would purchase approximately 131 single-family detached residential lots, instead of 242 lots.
entered into a Purchase and Sale Agreement (the RC Purchase and Sale Agreement ) with Rausch Coleman Homes Houston, LLC, a Texas limited liability company ( Rausch Coleman ).
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