ALTSHIGH SIGNALFINANCIAL10-K

ALTS underwent a massive financial transformation with net losses exploding to -$344.5M while simultaneously achieving extraordinary balance sheet growth through what appears to be a major acquisition.

The 5,416% increase in net losses alongside a 5,415% increase in stockholders' equity suggests a significant dilutive equity raise or major acquisition that dramatically restructured the company's financial profile. The May 2025 acquisition of Fortress II Holdings Ltd. likely explains these massive changes, but the operational integration challenges are evident in deteriorating cash flows and expanded losses.

Comparing 2026-04-13 vs 2025-03-28View on EDGAR →
FINANCIAL ANALYSIS

ALTS experienced extreme financial volatility with net losses ballooning from -$6.2M to -$344.5M while assets and equity both surged over 1,300% and 5,400% respectively, indicating a transformative acquisition or major capital event. Despite gross profit growth of 62%, the company's operational performance deteriorated significantly with operating losses tripling and cash flow turning sharply negative from +$1.8M to -$7.2M. The financial profile suggests a company that dramatically expanded through acquisition but is struggling with integration costs and operational execution.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
-5416.5%
-$6.2M-$344.5M

Net income declined 5416.5% — review whether driven by operations, interest costs, or non-recurring items.

Stockholders Equity
Balance Sheet
+5414.9%
$20.9M$1.2B

Equity base grew 5414.9% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Total Assets
Balance Sheet
+1379.3%
$82.4M$1.2B

Asset base grew 1379.3% — expansion through organic growth, acquisitions, or capital deployment.

Operating Cash Flow
Cash Flow
-502.8%
$1.8M-$7.2M

Operating cash flow fell 502.8% — earnings quality concerns; investigate working capital changes and non-cash items.

Operating Income
P&L
-202.2%
-$7.6M-$22.9M

Operating income deteriorated sharply — investigate whether driven by one-time charges or structural cost issues.

SG&A Expense
P&L
+138.4%
$13.9M$33.0M

SG&A up 138.4% — significant increase in sales or administrative costs, monitor impact on operating leverage.

Capital Expenditure
Cash Flow
-98.6%
$808K$11K

Capex reduced 98.6% — investment cycle winding down or capital discipline; may improve near-term free cash flow.

Inventory
Balance Sheet
-69.7%
$1.2M$366K

Inventory drawn down 69.7% — strong sell-through or deliberate destocking; watch for supply constraints.

Gross Profit
P&L
+61.9%
$6.3M$10.2M

Gross profit expanding — improving pricing power or product mix shift toward higher-margin offerings.

Current Liabilities
Balance Sheet
+25.6%
$40.9M$51.4M

Current liabilities rose 25.6% — increased short-term obligations, watch current ratio.

LANGUAGE CHANGES
NEW — 2026-04-13
PRIOR — 2025-03-28
ADDED
Through our Fintech segment, the Company provides next-generation blockchain-powered technologies for digital asset trading, payments processing and related payment card services.
On May 9, 2025, the Company acquired Fortress II Holdings Ltd.
Mswipe is a next-generation payment solutions provider offering multi-currency, fiat payment card services, along with crypto-enabled capabilities through its existing integration with the ALT5 Subsidiary platform.
Its suite of physical and virtual cards, available on both the Visa and Mastercard networks, allows users seamlessly to spend traditional and digital currencies worldwide (see Note 3).
Connexx was a company that provided call center services for recycling businesses.
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REMOVED
o Yes x No The aggregate market value of the registrant s common stock held by non-affiliates, based on the closing sales price of such stock on July 1, 2024 was approximately $ 26.7 million .
Connexx is a company that provides call center services for recycling businesses.
The Company s legal address is located at 325 E Warm Springs Rd #102, Las Vegas, NV 89119, with subsidiary offices in Newmarket, and Montreal, Canada.
Fintech Overview ALT5 Sigma, Inc., through its subsidiaries, offers two main platforms to its customers: ALT5 Pay and ALT5 Prime.
Merchants have the option to convert to fiat currency (US Dollars, Canadian Dollars, Euros, and British Pounds Sterling) automatically or to receive their payment in digital assets.
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