Overview of the Company’s Financial Performance

Ault Global Holdings, Inc. (the “Company”) is a diversified holding company that operates through three reportable segments: Fintech, Biotechnology, and Corporate and Other. The key highlights from the company’s financial report for the fiscal year ended December 28, 2024 are as follows:

Revenue and Profit Trends

• Revenue increased by approximately $8.8 million to $12.5 million for the fiscal year ended December 28, 2024, compared to the prior year. This increase was primarily due to the acquisition of ALT5 Subsidiary in May 2024.
• Gross profit increased by approximately $6.5 million to $6.3 million for the fiscal year ended December 28, 2024, also due to the ALT5 Subsidiary acquisition.
• The company reported a net loss of $6.2 million for the fiscal year ended December 28, 2024, compared to a net loss of $17.1 million in the prior year.

Segment Performance

• The Fintech segment, which consists of the newly acquired ALT5 Subsidiary, generated revenue of $12.5 million and operating income of $900,000 for the fiscal year ended December 28, 2024.
• The Biotechnology segment did not generate any revenue for the fiscal year ended December 28, 2024, and incurred increased selling, general and administrative expenses primarily due to higher amortization costs.
• The Corporate and Other segment also did not generate any revenue, but saw increased selling, general and administrative expenses due to higher stock-based compensation and professional service costs.

Liquidity and Capital Resources

• As of December 28, 2024, the company had $7.2 million in cash on hand.
• The company intends to raise additional funds to support the future development of its biotechnology assets, potentially through capital raises or structured arrangements.
• Cash provided by operations was $1.8 million for the fiscal year ended December 28, 2024, compared to $855,000 in the prior year.
• The company faces challenges with its overall profitability and working capital position, with a net negative working capital of $5.9 million as of December 28, 2024.

Strengths and Weaknesses Strengths:

• Successful acquisition and integration of the ALT5 Subsidiary, which contributed positively to the company’s financial performance.
• Diversified business model with exposure to both the fintech and biotechnology sectors.

Weaknesses:

• Continued losses and negative working capital position, indicating the need for additional financing.
• Lack of revenue and profitability in the Biotechnology and Corporate and Other segments.
• Reliance on future capital raises or structured arrangements to fund the development of biotechnology assets.

Outlook The company’s future outlook is dependent on its ability to secure additional financing to support the development of its biotechnology assets and maintain the profitability of its Fintech segment. The company’s management has expressed confidence in the company’s ability to continue as a going concern, but has acknowledged the challenges it faces in the current competitive environment.