AI Financial (AIFC) investor relations material

Executive summary

• Completed the sale of Alt 5 Sigma Canada, Inc. for a $12M secured promissory note and 11.55M shares of Prime Delta Corp., resulting in a $14M loss on sale.

• The transaction included the transfer of all Alt 5 trademarks and related digital assets, and a mutual release of claims between parties, except for ongoing Rwanda litigation.

• Series B Preferred Stock holders offered a one-for-one exchange for Prime Delta shares as part of the transaction.

Significant events and developments

• The sale of Alt 5 Sigma Canada, Inc. closed on August 3, 2026, with the company receiving a $12M note (net present value $3.4M after discount) and 11.55M Prime Delta shares (valued at zero for accounting purposes).

• The company assigned all rights to the Alt 5 and Alt 5 Sigma trademarks and agreed to change subsidiary names.

• The secured promissory note is guaranteed by multiple parties and secured by all assets of Prime Delta.

• Series B Preferred Stock holders may redeem their shares for up to 8.55M Prime Delta shares.

Capital allocation and financing

• The $12M secured promissory note bears 4% interest, with $1M due by August 2026 and four annual $2.75M payments thereafter.

• At least 20% of any new equity raised by Prime Delta must be paid to the noteholder.

• The note is secured by a first-priority security interest in all Prime Delta assets and is guaranteed by individuals and entities affiliated with Prime Delta.