FiEE, Inc.

FiEE, Inc. (formerly Minim, Inc.) is undergoing a strategic transformation from a legacy networking company, which historically provided WiFi/Software as a Service (SaaS) platforms and sold consumer networking products under the Motorola brand until 2023, to a digital service provider. The company is now focused on integrating artificial intelligence (AI) and data analytics into content creation, digital authentication, and brand management, leveraging a cloud-based SaaS platform to support clients in developing, managing, and optimizing their digital presence across global platforms. This pivot targets high-growth, emerging technology sectors including AI, blockchain, and the Multi-Channel Network (MCN) ecosystem.

The company's core business model revolves around generating revenue through three primary service areas: digital content and MCN services, software development services, and digital authentication services. These services are designed to support clients in expanding their digital visibility and brand management. Revenue generation is a mix of recurring basic service fees recognized ratably over contract terms and transactional value-added services recognized at a point in time upon customer approval or system acceptance. The primary customer segments include individuals and entities seeking to grow their online presence as influencers or content creators, as well as corporate and individual clients requiring software development and digital authentication for artworks.

FiEE's digital content services provide comprehensive brand growth strategies through digital account management, content operations and growth analytics, and community engagement. Service plans range from basic account setup to advanced SEO, visual branding, content production (e.g., over 120 posts and 24 short videos annually for the Global Premium Plan), monthly performance reporting, and influencer marketing coordination. The MCN partnerships operate under a centralized content ownership and monetization model, where FiEE retains full operational control over content, monetization, and analytics, with all commercial revenue retained by the company unless contractually negotiated otherwise.

Software development services offer end-to-end solutions, from requirements analysis and system design to customized coding, system integration, deployment, testing, quality assurance, and post-launch maintenance and support. Revenue from combined software licenses and customized modules is recognized over time as performance obligations are fulfilled, while maintenance and support services are recognized over time on a straight-line basis over the contract period. Digital authentication services, bolstered by the November 2025 acquisition of HGK, leverage AI and blockchain technology for artworks, offering micro identification, AI image recognition authentication, blockchain certification, and digital passport generation. Revenue for these services is recognized at a point in time upon delivery of the final digital authentication report and blockchain certificate.

For the fiscal year ended December 31, 2025, FiEE reported total revenues of $6,193,616 ¹, a significant increase from $639,893 ² in 2024, representing an 867.9% ³ year-over-year growth. Gross profit for 2025 was $5,353,598 ⁴, up from $207,259 ⁵ in 2024, with a gross margin of 86.44% ⁶ compared to 32.4% ⁷ in the prior year. Operating income for 2025 was $1,550,519 ⁸, a substantial improvement from an operating loss of $(4,235,576) ⁹ in 2024. Net income for 2025 was $1,072,434 ¹⁰, a turnaround from a net loss of $(4,224,278) ¹¹ in 2024. Diluted EPS for 2025 was $0.10 ¹², compared to $(1.34) ¹³ in 2024. Cash provided by operating activities was $3,636,620 ¹⁴ in 2025, a reversal from cash used in operating activities of $(3,772,008) ¹⁵ in 2024. As of December 31, 2025, the company had cash of $3,084,461 ¹⁶ and no borrowings outstanding, with a positive working capital of $2.4 million ¹⁷.

The year-over-year comparisons highlight a dramatic shift in the company's financial profile, driven by its strategic transformation. Revenue from legacy "Cable Modems & gateways" and "Other networking products" dropped to $0 ¹⁸ in 2025 from $638,804 ¹⁹ and $1,089 ²⁰ respectively in 2024, reflecting the cessation of legacy operations. New revenue streams from "SaaS – MCN digital services" generated $5,275,761 ²¹, "Software services" generated $588,811 ²², and "Digital authentication services" generated $329,044 ²³ in 2025, all of which were non-existent in 2024. This shift to higher-margin service lines, particularly MCN digital services leveraging AI, significantly improved the gross margin from 32.4% ²⁴ to 86.44% ²⁵. Selling and marketing expenses increased by $351,840 ²⁶ or 531.7% ²⁷ to $418,011 ²⁸ in 2025, reflecting increased promotional activities for the new business. General and administrative expenses rose by $1,275,208 ²⁹ or 61.8% ³⁰ to $3,337,649 ³¹, primarily due to $1.1 million ³² in non-cash warrant issuance costs and expanded business operations. Research and development expenses decreased by $65,875 ³³ or 58.1% ³⁴ to $47,419 ³⁵ in 2025, mainly related to software subscriptions and support costs.

Significant operational developments during the period include the formal launch of customized software services in July 2025 and the acquisition of Houren-Geiju Kabushikikaisha (HGK) on November 30, 2025, a Japanese technology company specializing in digital authentication services for art collections using AI and blockchain. This acquisition, with an aggregate purchase price of $3.5 million ³⁶, introduced AI image recognition and blockchain authentication technologies to FiEE's service portfolio. Additionally, the company acquired assets from Suzhou Yixuntong Network Technology Co., Ltd. (Yixuntong) on June 30, 2025, for $1.4 million ³⁷, expanding its intellectual property to include eight domain names, three patents, and 23 software copyrights. The company also resolved Nasdaq compliance listing challenges, regaining compliance with listing rules on May 29, 2025, and resuming trading on June 2, 2025.

Management anticipates requiring approximately $10 million ³⁸ in total funding over the next three years to support its strategic transition to SaaS solutions and the scaling of its AI-driven platform. The planned allocation includes $4.0 million ³⁹ in 2026 for developing AI technology for content, building fan community, and membership systems. In 2027, $3.0 million ⁴⁰ is planned to enhance the SaaS system and develop robust security for other IP protection technologies. A further $3.0 million ⁴¹ is earmarked for 2028 to advance AI media development and expand content creation capabilities.

A major growth area is the expansion of SaaS - MCN digital services, software services, and digital authentication services, which is largely dependent on the company's ability to acquire new customers. The company aims to attract and retain new customers across diverse industries through effective marketing and sales efforts. The MCN business is identified as a substantial market opportunity, requiring continued investment in sales and marketing, research and development, and customer support to grow the international customer base.

Another key growth vector is the integration of blockchain technology into operations, particularly in digital authentication services, which has already been successfully applied through the HGK acquisition. This advancement aims to enhance the security, transparency, and efficiency of services and systems. The company also plans to pursue strategic acquisition opportunities in key sectors such as AI, hardware, and the Internet of Things (IoT), and to establish a global community of Key Opinion Leaders throughout the digital content lifecycle by integrating its authentication technology.

The operational outlook emphasizes a high-margin digital service model, with digital content services yielding higher gross margins despite requiring ongoing investment. Digital authentication services, leveraging AI and blockchain, are expected to present significant potential for high-margin scalability. The company's gross margin improvement in fiscal 2025, primarily from MCN digital services, is attributed to leveraging AI and other technologies to reduce reliance on human labor, resulting in significantly higher margins compared to traditional service models. Management will continue to monitor costs in relation to sales and adjust its cost structure accordingly.

Regarding capital allocation, the company plans to fund its liquidity needs over the next three years through various equity financing arrangements. On May 9, 2025, FiEE entered into a Purchase Agreement with Helena Global Investment Opportunities I Ltd. (Helena), granting the company the right to sell up to $15,000,000 ⁴² of Common Stock to Helena over a 36-month period ending in May 2028. Additionally, on May 9, 2025, the company sold 1,585,366 ⁴³ shares of common stock to Cao Yu for $2,600,000 ⁴⁴ and 853,659 ⁴⁵ shares to Hu Bin for $1,400,000 ⁴⁶. Subsequent to the fiscal year end, on January 30, 2026, the company entered into a securities purchase agreement to issue 394,476 ⁴⁷ shares of common stock at $5.07 ⁴⁸ per share for gross proceeds of approximately $2 million ⁴⁹, with the closing expected by the end of the first quarter of 2026. These proceeds are intended for potential future acquisitions and general corporate purposes.

The company faces several material risks, including those related to its new business model, which is in early stages of development and faces intensified market competition, rising customer acquisition costs, and accelerated technological iteration, making sustained growth and profitability uncertain. The reliance on AI and data analytics exposes the company to unique operational and ethical risks, such as biased algorithms, "hallucinations" in AI-generated content, inadvertent use of intellectual property in training models, and potential legal liability if AI solutions produce inaccurate, offensive, or infringing content. Cybersecurity incidents or data breaches could disrupt operations and harm reputation, leading to regulatory investigations, litigation, and significant remediation costs. The company's acquisition strategy creates risks such as difficulties integrating acquired operations, technologies, and personnel, diversion of management's attention, over-valuation of acquired assets, and potential loss of key employees. There is substantial doubt about the company's ability to continue as a going concern beyond the next twelve months, as it will require additional liquidity to fund operations, despite generating operating profit in the fourth quarter of 2025 and net income of $1.1 million ⁵⁰ in 2025. The company has identified a material weakness in its internal control over financial reporting as of December 31, 2025, due to insufficient accounting staffing during its restructuring and new business launch, which could adversely affect financial reporting and investor confidence if not fully remediated. Changes in U.S. laws and regulations related to companies with connections to Hong Kong or the PRC could limit the company's ability to maintain its Nasdaq listing or access U.S. capital markets. Economic instability, inflation, global conflicts, or public health crises may reduce demand for services, increase operating costs, disrupt supply chains, and limit access to financing. The company is currently subject to a Nasdaq "Panel Monitor" until May 2026, and any deficiency in listing requirements during this period could lead to delisting without an opportunity to submit a compliance plan.

Management's message to shareholders emphasizes a strategic pivot from a legacy networking hardware business to a high-margin digital service provider, focusing on integrating AI and data analytics into content creation, digital authentication, and brand management. The overall tone is one of transformation and growth, highlighting the successful launch of new business operations in 2025, which generated service fees of $6.2 million ⁵¹ and achieved profitability. Management explicitly states that it anticipates requiring approximately $10 million ⁵² in total funding over the next three years to support this strategic transition and the scaling of its AI-driven platform. The three strategic priorities for the period ahead are: (1) developing AI technology for content, building fan community, and membership systems with an allocation of $4.0 million ⁵³ in 2026; (2) enhancing the SaaS system and developing robust security for IP protection technologies with $3.0 million ⁵⁴ in 2027; and (3) advancing AI media development and expanding content creation capabilities with $3.0 million ⁵⁵ in 2028. Management also stresses the importance of attracting and retaining new customers and expanding the existing customer base by building long-term relationships and encouraging upgrades to service plans.