AI Financial Faces Cash Shortage and WLFI Token Lockup Conditions

AI Financial is facing a cash shortage, WLFI token lockup, and non-compliance with NASDAQ's minimum stock price requirement. On August 3, it sold ALT5 Sigma Canada to Prime Delta for $1 million (approximately 1.4 billion KRW) and a deferred payment of $11 million (approximately 15.5 billion KRW), but the status of the transaction has not been confirmed in the documents submitted to the SEC. ALT5 Sigma Canada has been responsible for the operational business of AI Financial, and according to the 2025 annual report, it recorded revenues of $23.5 million (approximately 33.1 billion KRW) and a net loss of $3.3 million (approximately 4.7 billion KRW). As of March 28, AI Financial held 7,283,585,650 WLFI tokens, with a fair value estimated at $706.36 million (approximately 9.96 trillion KRW). However, some tokens are subject to contractual lockup provisions and cannot be transferred immediately. In a disclosure on June 10, the market value of WLFI was presented as approximately $38 million (approximately 53.58 billion KRW), and 3,583,585,650 tokens will be transferable starting August 12. AI Financial recorded cash of $10.5 million (approximately 148 million KRW) at the end of the first quarter, with cash outflows from operating activities of $12.3 million (approximately 173 million KRW) and a net loss of $271.493 million (approximately 3.828 trillion KRW). It has been notified by NASDAQ that it does not meet the minimum closing price requirement of $1, and has secured a grace period until December 28.

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