ATHRMEDIUM SIGNALFINANCIAL10-Q

ATHR shows meaningful deterioration in current assets alongside elevated cash burn despite some operational improvements.

The 55% decline in current assets combined with negative operating cash flow of $1.0M signals potential liquidity pressures for this smaller company. While the improved operating cash flow trajectory and modest gross profit growth are encouraging, the overall balance sheet contraction and continued losses warrant close monitoring of the company's funding runway.

Comparing 2026-02-17 vs 2025-08-19View on EDGAR →
FINANCIAL ANALYSIS

ATHR's financial position shows mixed signals with current assets declining substantially to $2.2M while cash equivalents increased modestly to $263K. Operating cash flow improved meaningfully to -$1.0M from -$2.0M, and gross profit grew 13.9% to $272K, suggesting some operational progress. However, net losses widened to $1.3M and total assets contracted 20% to $4.0M, indicating ongoing financial pressure despite the operational improvements.

FINANCIAL STATEMENT CHANGES
Cash & Equivalents
Balance Sheet
+65%
$160K$263K

Cash position surged 65% — strong cash generation or capital raise providing significant financial cushion.

Current Assets
Balance Sheet
-55%
$4.8M$2.2M

Current assets declined 55% — monitor working capital adequacy and short-term liquidity.

Operating Cash Flow
Cash Flow
+49.5%
-$2.0M-$1.0M

Operating cash flow surged 49.5% — exceptional cash generation, highest quality earnings signal.

Net Income
P&L
-29%
-$1.0M-$1.3M

Net income declined 29% — review whether driven by operations, interest costs, or non-recurring items.

Stockholders Equity
Balance Sheet
-25.4%
$4.5M$3.4M

Equity decreased 25.4% — buybacks or losses reducing book value, monitor solvency ratios.

Total Liabilities
Balance Sheet
+22.7%
$519K$637K

Liabilities increased 22.7% — monitor debt-to-equity ratio and interest coverage.

Current Liabilities
Balance Sheet
+22.7%
$519K$637K

Current liabilities rose 22.7% — increased short-term obligations, watch current ratio.

Total Assets
Balance Sheet
-20.4%
$5.0M$4.0M

Total assets contracted 20.4% — asset sales, write-downs, or balance sheet optimization underway.

Gross Profit
P&L
+13.9%
$239K$272K

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

LANGUAGE CHANGES
NEW — 2026-02-17
PRIOR — 2025-08-19
ADDED
Readers are cautioned that significant known and unknown risks, uncertainties and other important factors (including those over which we may have no control and others listed in this Report and in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025, filed with the SEC on December 17, 2025 (the Annual Report ) under the heading Risk Factors ) may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements.
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements F- 1 AETHER HOLDINGS, INC.
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements F- 2 AETHER HOLDINGS, INC.
Additionally, as partial compensation for their services, the Company issued warrants to purchase an aggregate of 144,900 shares of Common Stock to The Benchmark Company, LLC and Axiom Capital Management, Inc., as representatives of the several underwriters of the Company s IPO.
On October 14, 2025, the Company formed a new wholly owned subsidiary, 537 Greenwich LLC ( the LLC ), under the laws of the State of Delaware.
The subsidiary was established for the purpose of acquiring and holding office space in New York, which will be purchased and owned by the LLC.
F- 5 The following table sets forth information concerning the Company and its subsidiaries as of December 31, 2025: SCHEDULE OF SUBSIDIARY Name of Entity Date of Organization Place of Organization Percentage of Ownership Principal Activities Aether Holdings, Inc.
June 6, 2025 Delaware 100 % Research and Development 537 Greenwich LLC October 14, 2025 Delaware 100 % Acquiring and holding office space NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared on the accrual basis of accounting in conformity with U.S.
GAAP ) and pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC ) regarding interim financial reporting.
In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all normal and recurring adjustments (which consist primarily of accruals, estimates and assumptions that impact the unaudited condensed consolidated financial statements) considered necessary to present fairly the Company s unaudited condensed consolidated balance sheet as of December 31, 2025, its unaudited condensed consolidated statements of operations and comprehensive loss, stockholders equity and cash flows for the three months ended December 31, 2025 and December 31, 2024.
REMOVED
Financial Statements F-1 Unaudited Condensed Consolidated Balance Sheets as of June 30, 2025 and September 30, 2024 F-1 Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss for the three and nine months ended June 30, 2025 and 2024 F-2 Unaudited Condensed Consolidated Statements of Changes in Stockholders Equity for the three and nine months ended June 30, 2025 and 2024 F-3 Unaudited Condensed Consolidated Statements of Cash Flows for the nine months ended June 30, 2025 and 2024 F-4 Notes to Unaudited Condensed Consolidated Financial Statements F-5 Item 2.
Readers are cautioned that significant known and unknown risks, uncertainties and other important factors (including those over which we may have no control and others listed in this Report and in the Risk Factors section of our Registration Statement on Form S-1 (File No.
Securities and Exchange Commission (the SEC ), and as amended and declared effective on April 9, 2025 (the IPO Registration Statement ) may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements.
other factors detailed under the section of the IPO Registration Statement entitled Risk Factors .
Refer to FS footnote Note 8(c) The accompanying notes are an integral part of these unaudited condensed consolidated financial statements F- 1 AETHER HOLDINGS, INC.
Refer to FS footnote Note 8(c) The accompanying notes are an integral part of these unaudited condensed consolidated financial statements F- 2 AETHER HOLDINGS, INC.
The following table sets forth information concerning the Company and its subsidiaries as of June 30, 2025: SCHEDULE OF SUBSIDIARY Name of Entity Date of Organization Place of Organization % of Ownership Principal Activities Aether Holdings, Inc.
June 6, 2025 Delaware 100 % Research and Development NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S.
Accordingly, they do not include all of the information and disclosures required by U.S.
In the opinion of management, the accompanying condensed consolidated financial statements include all adjustments which are considered necessary for a fair presentation of the unaudited condensed consolidated financial statements of the Company as of June 30, 2025, and for the three and nine months ended June 30, 2025 and 2024.
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