AIxCrypto Holdings, Inc. Common Stock 2026 Q2 Earnings Call

Good afternoon. My name is Andrew Grossman. I'd like to welcome you to the AIxCrypto Holdings second quarter 2026 earnings conference call. At this time, all participants are in listen-only mode. As a reminder, a replay of this call will be available on the company's investor relations website. On today's call are Jiawei Wang, the company's CEO, and Jie Sheng, the company's President and CFO. Mr. Wang will cover the company's strategy, business operations, and capital matters. Mr. Sheng will cover the financial results and outlook. Before we begin, please note that today's discussion contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements include, among other things, statements regarding the company's strategy, product plans and timelines, targeted milestones, expected expenses, liquidity and capital resources, and anticipated business developments.

Forward-looking statements are based on management's current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially, including the risk factors described in the company's annual report on Form 10-K and its quarterly reports on Form 10-Q filed with the SEC. The company's financial statements have been prepared on a going concern basis. The related disclosures in the Form 10-Q describe conditions that raise substantial doubt about the company's ability to continue as a going concern. The company undertakes no obligation to update forward-looking statements except as required by law. All figures discussed today are unaudited. I would now like to turn the call over to Jiawei Wang, AIXC's CEO.

Thank you, Andrew. Thank you to everyone joining us. The second quarter and the weeks that followed marked an important transition for AIXC from strategic planning towards focused execution. We designated RoboShare as the company's top priority for the second half of 2026. Preparations for its Los Angeles launch are now underway. Our focus is on transitioning the strategy introduced during the quarter into tangible commercial progress. We have established a clear go-to-market plan, defined measurable operating priorities, and aligned our resources around the initiatives we believe offer the strongest path towards commercialization. In parallel, evaluating strategic opportunities that may strengthen the business remains a standing part of our long-term planning. I will cover our strategy and business together, followed by capital. Jie will close with the financials. Q2 2026 operational highlights. First, RoboShare marketplace launch and Los Angeles pilot.

Our core thesis is that the binding constraint in the robotic economy is the user layer, not the hardware. Operation, transport, and service still depend on scarce specialists, which keeps access costly and limits adoption. RoboShare is a vehicle for addressing that constraint. An Uber plus Turo for robots designated to connect robot owners with enterprises, educational institutions, and other users seeking flexible access to robotic equipment and services. At Automate 2026, we launched RoboShare as an on-demand robot sharing and matchmaking marketplace, supporting both whole machine and service-based rental, and made the platform available at roboshare.com. We also introduced the City Partner program for local network operators. Preparations for the Los Angeles pilot are underway across local sales, customer service, dispatch, operating capabilities, warehouse and delivery logistics, operating training, and standardized operating procedures.

We're also onboarding robots from third-party owners and the existing installed base for listing through the marketplace. Initial marketplace-facilitated rental activity is currently targeted to begin in August 2026, subject to operational readiness and execution. We anticipate initial revenue opportunities in beginning of the third quarter, subject to applicable revenue recognition requirements. Los Angeles will serve as the initial market for evaluating the model. During approximately the first 90 days, we intend to monitor cumulative rental days, repeat consumer activity, per-order economics, and overall operational readiness decisions regarding expansion into additional markets, including Silicon Valley and New York. Further development of the City Partner program will depend on pilot performance, partner readiness, and local market conditions. 2, Robot Second Life Cycle. At Automate 2026, we also introduced the Robot Second Life Cycle.

The concept that a robot can continue creating value after its initial sale through utilization value, extended user value, and network value. This model is intended to be as a light. Previously sold robots and robots supplied by third-party owners are being onboarded as rental supply, allowing the marketplace to expand without requiring the company to invest additional resources. Rental activity can generate machine identity, usage records, service history, and multi-party transaction data, creating a foundation for the supporting digital infrastructure and future residual value standards. Alongside RoboShare, we are developing the inspection, valuation, and recirculation standards required for future robotic resale market. Over time, marketplace activity is intended to support residual value assessments based on data, including demonstrated utilization, earning potential, and service history, in addition to age and depreciation.

We plan to launch a pre-owned robot business in the future to provide more predictable resale information for owners and better purchase information for buyers. 3, AI Agent and ecosystem development. During the quarter, we continued to advance our broader AI Agent strategy. In April, we began initial internal enterprise testing of certain AI Agent capabilities, evaluating workflow integration, identifying optimization opportunities, and refining vertical use cases within our own operating environment. AIxC is also developing the marketplace and supporting digital infrastructure intended to connect robot owners, operators, and customers while capturing usage and transaction data generated through the platform. We continue to advance selected proof of concept initiatives through strategic partnerships, including our collaboration with Faraday Future as a lead ecosystem partner. These long-term initiatives remain under development, while our immediate commercial focus remains RoboShare and ground-based robotics. Second half 2026 execution priorities.

For the second half of 2026, RoboShare remains the company's primary operating and commercialization priority. We are preparing to initiate marketplace-facilitated robo sharing activity in L.A., currently targeted to begin in August, subject to operational readiness, execution, and applicable revenue recognition requirements. Other AI Agent and ecosystem initiatives will continue to be evaluated and developed selectively, with resources prioritized toward RoboShare. Additional milestones and timing will be communicated as appropriate. Before I conclude this overview, let me also update you on two of the initiatives we described in May. Our EAI Platform and RWA tokenization work continues, but both are sequenced behind RoboShare and are moving on longer timelines. We're not attaching new dates today, and the timelines we indicated in May should no longer be relied upon. This change reflects our decision to concentrate the company's resources and operating efforts.

We launched RoboShare at Automate in June, and in July, we designated it as the company's top operating priority for the second half of 2026. We believe it represents our nearest path to revenue and that the operating record it produce, including use data, machine identity, and transaction history, will provide the foundation for the rest of our infrastructure work. Everything I have just described is an operating plan, and sustaining an operating plan is a capital question. Before Jie reviews the financial results, let me address the capital dimension, how we engage the market this quarter, our commitment on communication, and our capital discipline. First, strategic opportunities. We continue to evaluate strategic opportunities that may complement or expand beyond our existing business and support the company's long-term growth across AI, robotics, and real-world connectivity. We will provide further information regarding any material developments. Second, investor relations and capital discipline.

During the quarter, we continued engaging with investors and industry stakeholders as the company advanced its strategy in AI, robotics, and digital infrastructure. This included activities surrounding Automate 2026 and the launch of RoboShare, which marked an important step in moving our strategy toward commercial execution. Consistent and timely communication with shareholders remains an important part of our operating plan. We intend to continue providing updates tied to material milestones and verified operating progress while ensuring that our public statements remain accurate. During the second quarter, the company issued no new shares and common shares outstanding at June 30th were unchanged from March 31st. With that, I will turn the call over to Jie, who will review the second quarter financial results and outlook in greater detail.

Thank you, Jiawei, and good afternoon, everyone. I'm pleased to join you for my first earnings call with AIXC, and appreciate the opportunity to speak directly with our shareholders. The financial results for the second quarter mirror the operating narrative and can be summarized in three points: skilled advancements in robotics, decline of cost base, and the share count was unchanged. Together, those three points provided the time and the credibility to execute the delivery calendar Jiawei outlined, and I will be equally direct about the constraint we are managing against, which is liquidity. Unless noted, comparisons are to the second quarter of 2025, and all figures are unaudited. Total operating expenses for the second quarter were $2.96 million, compared to $1.68 million in the prior year quarter, and more importantly for the company's trajectory, down substantially from $4.33 million in the first quarter.

General and administrative expenses were $2.87 million, which included a non-recurring director resignation fee of $394,000, and the $99,000 of fees under the master service agreement with Faraday Future, our majority stockholder. Sales and marketing expenses were $86,000, down from $638,000 in the first quarter. The first quarter carried the front-loaded brand launch investment, and second quarter expenditure reflects the deliberate reallocation of resources to RoboShare operation. Credit loss expenses was 0, compared to $271,000 in the prior year quarter. Total other expenses net was $1.23 million. The largest component was an unrealized loss on digital assets of $984,000, which compares to a $1.95 million net loss in the first quarter. Changes in the unrealized net loss and gain in the digital assets are due to crypto price fluctuations.

Net loss for the quarter was $4.19 million, compared to $1.69 million in the prior year quarter, and an improvement from the first quarter's $6.08 million. Net loss per share, basic and diluted, was -$0.21 for the quarter and -$0.73 for the six months. On weighted average shares, outstanding of 20.28 million and 14.03 million, respectively. The loss reflects continued investments in platform commercialization, software development, professional services, governance transition activities, and strategy growth initiatives. For the six months, total operating expenses were $7.29 million, and net loss was $10.27 million. The entire second quarter change in our digital assets treasury were result of fair value remeasurement. We neither purchased nor sold digital assets during the quarter. All dispositions this year occurred in the first quarter. Holdings at June 30th were a fair value of $5.21 million against a cost base of $10.43 million.