Fabric.AI, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending June 30, 2026. The company recorded a net loss of $14.9 million for the first half of 2026, compared to a loss of $13.3 million during the same period in 2025. The loss per share for the six months was $6.45, a decrease from $33.52 in the previous year. The company did not generate any revenue during this period, maintaining a gross loss of $239,040 from cost of goods sold in the prior year. Operating expenses increased to $5 million, up from $3.5 million in the first half of 2025, primarily due to higher research and development costs.
In terms of strategic developments, Fabric.AI underwent a significant transformation, shifting its focus to the design and development of fabless semiconductor technologies for artificial intelligence (AI) data center infrastructure. This included a joint development and licensing agreement with Kopin Corporation to create the Neural I/o™ chip, which aims to enhance data transmission efficiency in AI applications. The company also disposed of its digital asset holdings and sold its electric vehicle assets, indicating a strategic pivot away from these areas.
Operationally, Fabric.AI's total assets surged to $49.7 million as of June 30, 2026, compared to $11.4 million at the end of 2025. This increase was largely driven by a successful equity financing round that raised approximately $21.5 million in gross proceeds. The company reported a significant rise in cash and cash equivalents, totaling $3.6 million, alongside $18 million in marketable securities. The employee headcount remained stable, with no significant changes reported.
The company’s balance sheet reflects a substantial increase in liabilities, primarily due to the issuance of convertible preferred stock and associated anti-dilution liabilities. The total liabilities reached $21.4 million, up from $1.7 million at the end of 2025. The anti-dilution liability alone accounted for $19.6 million, indicating the complexities of the company’s capital structure. Fabric.AI's management expressed confidence in the company's liquidity, stating that it has sufficient resources to fund operations for at least the next twelve months, although future capital may be necessary to support ongoing development.
Looking ahead, Fabric.AI's management remains optimistic about the potential of its semiconductor initiatives, contingent on market conditions and customer adoption. The company is focused on advancing its technology and expanding its market presence, particularly in the AI infrastructure sector. However, the ongoing losses and reliance on external financing underscore the challenges it faces in achieving profitability and sustainable growth.
About Fabric.AI, Inc.
AYRO, Inc. designs and manufactures compact, sustainable low-speed electric vehicles (LSEVs) for commercial use in campus mobility, last mile delivery, urban transport, and government fleets. Its purpose-built, street-legal EVs offer zero emissions and lower operating costs, targeting markets like universities, municipalities, and delivery services in North America. AYRO’s business model focuses on modular vehicle design, integrated technology, and partnerships to serve evolving eco-friendly transportation needs.
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