AI Financial (AIFC) Q1 2025 earnings summary

Executive summary

• Completed acquisition of Mswipe, a multi-currency, fiat- and crypto-enabled payment card services provider, expanding B2B payment solutions and bridging crypto and traditional finance.

• Achieved a third consecutive record quarter for the Fintech segment, with Q1 2025 meeting expectations and annualized run rate surpassing $22M.

• Announced the acquisition of Mswipe, expected to be immediately accretive to revenue and EBITDA upon closing in early Q2.

• Integration of Mswipe's payment card offering with ALT5 Pay expands digital and fiat payment capabilities for over 1,000 customers.

• Purchase price included $6.2M in promissory notes, $6.1M in common stock, $4.8M in biotech subsidiary shares, $2.75M in warrants, plus a $20M earn-out contingent on revenue milestones.

Significant events and developments

• The acquisition closed on May 9, 2025, with all shares and warrants subject to transfer restrictions and no registration rights.

• Definitive agreements signed to acquire Mswipe, enhancing payment card and crypto capabilities.

• Sellers and key employees entered into 24-month non-compete and confidentiality agreements.

• Ongoing separation of the biotech business, which will operate under Alyea Therapeutics Corporation.

• The transaction included the assumption of a $5.1M pre-existing promissory note at the acquired company level.

Financial highlights

• Fintech revenues reached $5.51 million for Q1 2025.

• Gross profit was $2.59 million, representing a 47% gross margin.

• Cash and cash equivalents stood at $10.8 million at quarter end.

• Adjusted EBITDA for Fintech was $1.15 million; Biotech $(58) thousand; Corporate and other $(1.26) million; total Adjusted EBITDA $(168) thousand.

• Annualized revenue run rate exceeded $22 million.