Catenaa, Tuesday, May 26, 2026- AI Financial Corporation reported a quarterly net loss of $271.5 million and warned there is substantial doubt about its ability to continue operating over the next year as losses tied to its WLFI token holdings deepened sharply.
The company, formerly known as Alt5 Sigma, generated $4.7 million in quarterly revenue from its crypto payments-focused fintech business during the three months ended March 28.
Despite the revenue growth, the Nasdaq-listed firm disclosed worsening liquidity pressures and mounting unrealized losses connected to its large holdings of WLFI tokens.
AI Financial said its working capital deficit reached roughly $5.5 million, with current liabilities totaling $39.1 million compared with current assets of $32.2 million.
The company stated in its earnings report that these conditions raise substantial doubt about its ability to continue as a going concern within one year.
A major portion of the losses came from declining valuations of WLFI holdings.
AI Financial held 7.28 billion WLFI tokens valued at about $706 million as of March 28, down from roughly $1 billion three months earlier.
The company recorded an unrealized loss of $348.3 million tied to those holdings.
AI Financial also warned the tokens remain subject to major market risks and may not retain current valuations.
Large portions of the holdings are additionally restricted under lock-up agreements limiting transfers and sales.
The company is closely tied to World Liberty Financial through overlapping executives and financing arrangements.
AI Financial chairman Zachary Witkoff also serves as CEO of World Liberty Financial, while board member Zachary Folkman is a co-founder of the crypto firm.
World Liberty Financial also owns shares and warrants tied to AI Financial and previously extended a $15 million loan facility to the company earlier this year. AI Financial shares closed down nearly 10% Monday following the earnings release.
