AIxCrypto Holdings, Inc.

AIxCrypto Holdings, Inc. (AIxC) is a technology infrastructure company focused on the convergence of artificial intelligence (AI) and blockchain-based programmable systems. The company develops software platforms and programmable infrastructure to facilitate the tokenization of real-world assets (RWA) and the deployment of Embodied Artificial Intelligence (EAI) in commercial environments. AIxC's mission is to serve as the regulated, programmable infrastructure layer connecting traditional capital markets with on-chain systems and AI-enabled commercial systems. The company believes that global capital markets and physical infrastructure are being reshaped by the migration of asset ownership and transaction finalization to distributed ledger technology, and the proliferation of AI-enabled physical systems. The blockchain adoption market is projected to grow from approximately $41 billion ⁴ in 2025 to approximately $1.9 trillion ⁵ by 2034, representing more than a 50% ⁶ compound annual growth rate. The on-chain RWA market has grown to over $20 billion ⁷ in 2025, a more than 300% ⁸ increase over three years, with some forecasts projecting tokenized assets reaching many trillions within a decade. The global AI Agent market is approximately $7 billion ⁹ today and is projected to exceed $47 billion ¹⁰ by 2030, representing a compound annual growth rate of nearly 45% ¹¹.

AIxC's core business model is organized around a "Dual Flywheel strategy" with two integrated pillars: Real-World Asset Tokenization and Embodied AI Infrastructure. The company expects to generate revenue through platform licensing fees to enterprise customers, structuring and transaction fees from managing tokenized assets, and ecosystem participation revenue from the AIxC Hub, including validator economics, model deployment fees, and protocol-level participation mechanisms. The company's EAI and RWA platforms are in early stages and have not generated material revenue to date.

The Real-World Asset Tokenization pillar involves developing and operating software infrastructure for digitizing traditional assets onto distributed ledger networks. This framework is designed to ensure regulatory compliance by encoding compliance logic, transfer restrictions, and ownership records directly into smart contracts. An initial commercial application involves a $10 million ¹² strategic equity investment in common stock of Faraday Future Intelligent Electric Inc. (FFAI), which is anticipated to close before March 31, 2026. The company intends to develop a tokenization framework for these holdings as a reference implementation.

The Embodied AI Infrastructure pillar focuses on building the execution and monetization layer for AI-enabled physical systems, such as autonomous mobility, robotics, and connected equipment. AIxC is developing the AIxC Hub, a decentralized application ecosystem for AI model registration, validation, and deployment, with on-chain transaction finalization and incentive structures. An early-stage commercial collaboration with FFAI Robotics Inc. is expected to provide an initial deployment environment for this infrastructure.

For the fiscal year ended December 31, 2025, AIxC reported a net loss of $16,965,875 ¹³, compared to a net loss of $6,259,191 ¹⁴ for the year ended December 31, 2024. Total expenses for 2025 were $13,202,096 ¹⁵, an increase from $5,761,720 ¹⁶ in 2024. General and administrative expenses increased to $8,822,300 ¹⁷ in 2025 from $4,204,558 ¹⁸ in 2024, primarily due to a $1.4 million ¹⁹ increase in investor relation fees, a $3.0 million ²⁰ increase in consultant fees, and a $0.9 million ²¹ increase in master service fees, partially offset by a $1.0 million ²² decrease in payroll expenses and a $0.2 million ²³ decrease in insurance expense. Research and development expenses decreased significantly from $1,197,162 ²⁴ in 2024 to $184,796 ²⁵ in 2025, mainly due to a slowdown in all R&D activities in 2025 due to lack of funding. Credit loss expense on short-term notes receivable increased from $360,000 ²⁶ in 2024 to $4,195,000 ²⁷ in 2025. The company had cash and cash equivalents of $19,332,707 ²⁸ and digital assets with a fair value of $10,250,497 ²⁹ as of December 31, 2025. Total current liabilities were $3,329,237 ³⁰ at year-end 2025. Diluted EPS for 2025 was $(8.11) ³¹, compared to $(17.55) ³² in 2024.

Year-over-year, general and administrative expenses increased by $4,617,742 ³³, while research and development costs decreased by $1,012,366 ³⁴. Credit loss expense on short-term notes receivable increased by $3,835,000 ³⁵. The company experienced a net loss on digital assets of $3,588,106 ³⁶ in 2025, as it did not hold digital assets in 2024. Interest income increased from $128,795 ³⁷ in 2024 to $742,018 ³⁸ in 2025, primarily due to interest accrued on Marizyme Notes. Interest expense increased from $908,943 ³⁹ in 2024 to $988,500 ⁴⁰ in 2025.

Significant operational developments during the period include the rebranding from Qualigen Therapeutics to AIxCrypto Holdings, Inc. in November 2025, following a $41 million ⁴¹ PIPE financing in September 2025. The company subsequently underwent a strategic realignment in February 2026, discontinuing development of the BesTrade DeAI Agent platform and the C10 digital asset treasury and portfolio management tools to concentrate on the RWA + Embodied AI (EAI) ecosystem. The company continues to evaluate strategic options for its therapeutics programs. Recent developments in early 2026 include a strategic partnership with BitMart to launch a co-branded virtual prepaid card and the AIxC Hub surpassing 1 million ⁴² registered wallets and launching Tenk, a new AI-powered interactive game.

The company's ability to continue as a going concern is subject to obtaining additional funding, as it has incurred recurring losses from operations and experienced negative cash flows. While the company is establishing cryptocurrency treasury operations, there are no guarantees it will generate revenue. The company raised approximately $45.7 million ⁴³ in new equity during 2025, with $3.3 million ⁴⁴ from short-term borrowings, $0.2 million ⁴⁵ from a convertible promissory note, $0.1 million ⁴⁶ from a zero-interest promissory note, $4.3 million ⁴⁷ (net of issuance costs) from Series A-3 Preferred Stock, and $37.7 million ⁴⁸ (net of issuance costs) from a subscription agreement with Faraday Future Intelligent Electric Inc. (Faraday). Up to $6.8 million ⁴⁹ of the net proceeds from the Faraday offering were used to pay existing debt and fund existing business operations, with the balance allocated to cryptocurrency treasury operations and Web3 and AI infrastructure initiatives.

A major growth area for AIxC is the Real-World Asset Tokenization pillar, which involves the digitization of traditional assets onto distributed ledger networks. The company's initial commercial application for this pillar is a $10 million ⁵⁰ strategic equity investment in common stock of Faraday Future Intelligent Electric Inc. (FFAI), expected to close before March 31, 2026. The company intends to develop a tokenization framework for these holdings, generating revenue through structuring fees, platform licensing, and management fees for on-chain asset administration. The success of this initiative is subject to the development of applicable technical and regulatory infrastructure.

Another significant growth vector is the Embodied AI Infrastructure pillar, focused on building the execution and monetization layer for AI-enabled physical systems. AIxC is developing the AIxC Hub, a decentralized application ecosystem for AI model registration, validation, and deployment. An early-stage commercial collaboration with FFAI Robotics Inc. is expected to provide an initial deployment environment, leveraging FFAI Robotics' EAI-enabled vehicle and robotics programs for real-world operational data. However, no definitive commercial agreements for this collaboration have been executed. The company expects to generate revenue from this pillar through platform licensing fees, structuring and transaction fees, and ecosystem participation revenue, including validator economics, model deployment fees, and protocol-level participation mechanisms.

Operationally, the company has undergone a strategic realignment in February 2026, discontinuing development of the BesTrade DeAI Agent platform and the C10 digital asset treasury and portfolio management tools to focus on the RWA + Embodied AI (EAI) ecosystem. This decision aims to achieve a focused capital structure, reduced operational complexity, and a business model aligned with enterprise and institutional infrastructure. The company continues to evaluate strategic options for its therapeutics programs, including proceeding with the existing QN-302 trial, licensing the asset, or an outright sale. The company significantly reduced research and development spending in 2025 due to lack of funding, with R&D expenses decreasing from $1.2 million ⁵¹ in 2024 to $0.2 million ⁵² in 2025.

The company's planned capital allocation includes investments in its business, which may require additional funds. In January 2026, the company formed three new wholly-owned subsidiaries: AIxCrypto Token Labs US, Inc. for Web3 infrastructure and protocol development, AIxCrypto EAI, Inc. for EAI operations, and AIxCrypto C10 ETF, Inc. to evaluate potential institutional exchange traded products. The company does not expect to pay cash dividends in the foreseeable future.

AIxCrypto Holdings, Inc. faces several material risks. The company has a history of negative cash flows and recurring losses, with a net loss of $16.9 million ⁵³ for the year ended December 31, 2025, and an accumulated deficit of $140.0 million ⁵⁴. This raises substantial doubt about its ability to continue as a going concern, requiring additional financing which may not be available on acceptable terms or at all. The company is in an early-stage development phase under its current business model, having transitioned from a therapeutics focus to digital asset-focused software, and its RWA + EAI initiatives have not generated material revenue. Its future growth is dependent on successful product development, user adoption, access to capital, technological performance, and favorable regulatory developments. The success of its customer-facing platforms, including the AIxC Hub, depends on attracting and retaining users, which can be affected by competition, market volatility, technological limitations, regulatory changes, or security concerns. Software development efforts for RWA + EAI are technically complex and may face delays, budget overruns, or performance failures, potentially leading to operational disruption or financial loss. The internally developed AI Blockchain platform, used for digital asset portfolio monitoring, may contain errors or vulnerabilities. The company is exposed to significant digital asset price volatility, as it maintains digital assets as part of its treasury and investment activities, including its C10 portfolio, which can materially impact its financial condition. The regulatory environment for digital assets, tokenization, and AI-enabled financial tools is evolving and uncertain, potentially imposing new requirements, increasing compliance costs, or requiring business model modifications. Regulatory authorities may classify the company's platforms in a way that imposes additional obligations, despite BesTrade being designed for analytics and informational tools. The company relies on third-party service providers for technology infrastructure and digital asset custody, and their failure or disruption could adversely affect operations. Cybersecurity incidents, including unauthorized access or data breaches, pose a significant risk, especially as user engagement expands. The "C10" Treasury strategy, which involves holding a concentrated basket of digital assets, subjects the company's financial condition to extreme market volatility, and its stock price may fluctuate significantly based on global crypto market swings. Concentration of control, where the Faraday-appointed Co-Chief Executive Officer has sole responsibility for non-medical business operations and sole access to crypto-related accounts, creates a single point of failure that could lead to irretrievable loss of treasury assets if the Co-CEO becomes incapacitated or if there is a security breach. The company's pivot from therapeutics to Web3 is not guaranteed to succeed, and its strategic relationship with Faraday Future is critical for data access, making it vulnerable to Faraday Future's financial distress or strategic shifts. The crypto industry is highly competitive, with unregulated or less regulated companies potentially having an advantage due to lower compliance costs. The company's ability to keep pace with rapid industry changes and innovate new products is crucial, as decentralized networks and generative AI may render existing products obsolete. The legal status of crypto assets as "securities" is uncertain, and mischaracterization could lead to regulatory scrutiny and penalties. The theft, loss, or destruction of private keys for crypto assets could result in total and irretrievable loss of treasury assets. Adverse economic conditions, including high inflation and interest rate increases, could negatively impact the crypto asset markets and the company's business. Material weaknesses in internal control over financial reporting, such as insufficient accounting personnel and lack of formalized documentation, could impair the ability to produce timely and accurate financial statements. Pending SEC enforcement actions against the Co-CEO, Chief Advisor, and Lead Investor (Faraday Future) could disrupt operations, restrict access to treasury assets, and damage the company's reputation. The company has a large number of authorized but unissued shares of common stock (approximately 219.8 million ⁵⁵ at December 31, 2025) which will dilute existing ownership when issued. Macroeconomic and financial market disruptions, including volatility in equity and digital asset prices, could adversely affect liquidity and operations. Heightened public scrutiny and negative publicity regarding the crypto ecosystem could damage the company's reputation. The recent $10.0 million ⁵⁶ investment in FFAI is subject to significant liquidity and valuation risks due to FFAI's receipt of a Nasdaq deficiency notice for failing to maintain the minimum $1.00 ⁵⁷ bid price.

Management's message to shareholders emphasizes a strategic pivot and focused future, following the rebranding to AIxCrypto Holdings, Inc. in November 2025 and a $41 million ⁵⁸ PIPE financing in September 2025. The company has undertaken a strategic realignment in February 2026, discontinuing the BesTrade DeAI Agent platform and C10 digital asset treasury tools to concentrate solely on the RWA + Embodied AI (EAI) ecosystem. This decision is aimed at achieving a focused capital structure, reduced operational complexity, and a business model that institutional investors can evaluate against defined infrastructure and programmable technology benchmarks. Management acknowledges the early stage of commercialization for its EAI and RWA platforms, noting they have not generated material revenue to date, and directs investors to review risk factors. The company is actively evaluating strategic options for its legacy therapeutics programs, including continuing the QN-302 trial, licensing the asset, or an outright sale. Management highlights recent operational successes, such as the AIxC Hub surpassing 1 million ⁵⁹ registered wallets and launching Tenk, an AI-powered interactive game, in early 2026, and a strategic partnership with BitMart for a co-branded virtual prepaid card. The company's strategic priorities are centered on building a world-leading ecosystem that integrates Artificial Intelligence and blockchain, bridging Web2 and Web3, with a particular focus on institutional compliance infrastructure, its existing regulatory posture as a Nasdaq-listed public company, and its early commercial relationship with an EAI-focused hardware partner.