Aterian (ATER) investor relations material

Executive summary

• Entered agreements to sell marquee brands for $18M and issue $7M in preferred stock, fundamentally restructuring operations and capital position.

• Proceeds intended to pay down debt and provide working capital for remaining brands, with new majority control by a single investor post-transaction.

• Substantial doubt exists about ability to continue as a going concern pending transaction closure and stockholder approval.

Financial highlights

• Net revenue from continuing operations fell 72% year-over-year to $18K; discontinued operations revenue dropped 18.8% to $12.4M.

• Net loss for the quarter was $6.1M, compared to $3.9M in the prior year period.

• Gross profit margin for discontinued operations improved to 64.3% from 60.9% year-over-year.

• Operating loss from continuing operations was $3.2M; discontinued operations posted a $2.7M loss, including a $3.4M non-cash impairment.

• Cash used in operating activities was $0.4M, with $2.1M used in financing activities and $4K in investing.

Outlook and guidance

• Future viability depends on successful closure of asset and stock sales; failure would require alternative strategies or drastic cost reductions.

• Ongoing macroeconomic pressures, tariffs, and geopolitical instability expected to increase costs and impact margins.

• Management plans to hold a special stockholder meeting by July 20, 2026, to seek transaction approvals.