ALT5 Sigma Corporation Reports $5.5 Million Revenue in Latest Quarter, Net Loss Increases

ALT5 Sigma Corporation reported its financial results for the thirteen weeks ended March 29, 2025, revealing a revenue of $5.5 million, a significant increase from zero revenue in the same period last year. This growth is attributed to the acquisition of ALT5 Subsidiary, which was completed in May 2024. The company recorded a gross profit of $2.6 million, resulting in a gross margin of 47%. However, ALT5 Sigma also reported a net loss of $2.9 million for the quarter, compared to a net loss of $2.1 million in the prior year, primarily due to increased operating expenses associated with the acquisition.

The company's total current assets decreased to approximately $31.8 million as of March 29, 2025, down from $35.0 million at the end of the previous fiscal year. Current liabilities also decreased to about $38.2 million, resulting in a negative working capital of approximately $6.4 million. The cash balance increased to $10.8 million, up from $7.2 million at the end of December 2024. The increase in cash was primarily due to financing activities, including proceeds from the issuance of notes payable and the exercise of warrants.

In terms of strategic developments, ALT5 Sigma has been active in expanding its operations. The acquisition of ALT5 Subsidiary has allowed the company to enhance its fintech offerings, particularly through platforms like ALT5 Pay, which facilitates cryptocurrency transactions for merchants. Additionally, the company is in the process of acquiring Mswipe, a payment card service provider, which is expected to further integrate traditional and digital currency solutions. This acquisition is set to be finalized on May 9, 2025, and involves issuing shares and promissory notes valued at approximately $5.1 million.

Operationally, ALT5 Sigma's employee headcount has increased, reflecting the integration of the acquired subsidiary. The company reported a significant rise in customer engagement metrics, with the fintech segment generating all of its revenue during the quarter. The company is also focused on its biotechnology segment, which has not yet generated revenue but is expected to drive future growth through the development of non-addictive pain relief medications.

Looking ahead, ALT5 Sigma aims to improve its liquidity and profitability by raising additional funds to support the development of its biotechnology products and to finance ongoing operations. The company acknowledges the challenges it faces in a competitive environment and emphasizes the importance of managing expenses. The management's outlook remains cautious, with plans to pursue capital raises and structured arrangements to ensure the company's continued operation and growth.