0001213900-26-054456
SEC filingFY2025 delivered revenue growth of 20.3% to $14.0M, but gross profit collapsed to -$3.2M — reversing from positive gross profit in FY2024 — driving deeper net losses, negative operating cash flow, and sharply negative free cash flow amid sustained capital investment.
Revenue rose 20.3% to $14.0M in FY2025, up from $11.7M in FY2024. Management explicitly attributes this increase to growth in the mining machine resale business. The Company sources mining machines on an order-by-order basis at negotiated prices and resells them based on market demand and pricing conditions — a model inherently sensitive to volatility in cryptocurrency markets and equipment supply dynamics.
Gross profit reversed sharply to -$3.2M (gross margin -22.5%) in FY2025, compared to $115K in FY2024. This collapse reflects a fundamental shift in profitability at the product level. As noted in management commentary, the change in operating cash flow was 'mainly due to the significant increase in net loss, driven by the deterioration in gross margin and higher operating costs.' No further quantification or segment-level attribution is supported by the authoritative packet; therefore, the narrative anchors solely to this cause-and-effect linkage provided by management.
Operating income fell to -$8.8M (operating margin -62.7%), and net income declined to -$9.1M (a 355.6% YoY decrease), with diluted EPS of -$1.10. These results reflect compounding pressures: negative gross margins amplified by ongoing operating costs inherent to professionalized mining operations — including facility, electricity, and personnel expenses — as described in the filing.
The Company expects digital asset mining to remain a substantial portion of its business for the foreseeable future. It also states it will retain any earnings to finance business development and expansion — not pay cash dividends — reinforcing that near-term financial performance reflects deliberate, capital-intensive strategy rather than operational maturity. Risks tied to bitcoin market value, halving cycles, and power supply stability remain material, as disclosed in Item 1.