ADTI — what changed in the latest 10-Q

Text added vs the prior filing · source: 10-Q · 2026-02-17

• The Company is amortizing the intangible asset of the future value of contracts of $19,180,000 over 36 months. As a result, it incurred an amortization expense of $1,598,333 during the nine months ended December 31, 2025.

• Professional fees include the costs of professional consultants to operate the Company. Professional fees increased for the nine months ended December 31, 2025 by 2,559,325 or 410%, as compared to the nine months ended December 31, 2024, primarily due to increased consultants compensation to assist …

• Other expense includes interest expense on note payables and on Ballengee’s secured line of credit. Other expense increased for the nine months ended December 31, 2025 by $381,938, or 1,005%, as compared to the nine months ended December 31, 2024, primarily due to the issuance of promissory notes be…

• Net cash flows used for operating activities was ($1,369,718) and ($225,040) for the nine months ended December 31, 2025 and 2024, respectively. The decrease of net cash flows used for operating activities of $1,144,678 was primarily due to the Company increase in contracts receivables related to co…

• Net cash flows used for investing activities was $231,914 is primarily made up of loans from related parties related to the Ballengee acquisition for the nine months ended December 31, 2025. There were no investing activities for the nine months ended September 30, 2024, respectively.

Text removed vs the prior filing · source: 10-Q · 2025-11-19

• Professional fees include the costs with professional consultants to help manage the public entity. Professional fees increased for the six months ended September 30, 2025 by 2,488,870 or 686%, as compared to the six months ended September 30, 2025, primarily due to increased consultants compensatio…

• Other expense includes interest expense on note payables and on Ballengee’s secured line of credit. Other expense increased for the six months ended September 30, 2025 by $179,721, or 879%, as compared to the six months ended September 30, 2024, primarily due to the issuance of promissory notes bear…

• Net cash flows used for investing activities 257,000 - 257,000

• Net cash flows used for operating activities was ($603,450) and $167,970 for the six months ended September 30, 2025 and 2024, respectively. The decrease of net cash flows used for operating activities of $435,480 was primarily due to the Company increase in commissions payable related to contracts …

• Net cash flows used for investing activities is primarily made up of the assets acquired in the Ballengee group acquisition for the six months ended September 30, 2025. There were no investing activities for the six months ended September 30, 2024, respectively.

Text added vs the prior filing · source: 10-Q · 2026-02-17

• We may not realize the anticipated benefits of the Ballengee acquisition, and the acquisition may not improve our financial performance.

• In July 2025, we completed the acquisition of Ballengee, which we believed had the potential to increase revenue and accelerate our path to profitability. Although integration efforts have been ongoing, we have not yet achieved profitability, and there can be no assurance that the acquisition will r…

• ● Manage the combined company’s costa nd working capital requirements effective.

• Because AdaptAI is still in development and unproven in the market, there is no guarantee that it will generate the expected incremental revenues or competitive advantages. If Ballengee’s financial results decline or fail to meet expectations, our business, financial condition, and results of operat…

• Our business model depends on our ability to represent professional athletes and successfully connect them with endorsement, sponsorship, and marketing opportunities. Demand for these services is highly sensitive to factors beyond our control, including changes in consumer tastes, social and politic…

Text removed vs the prior filing · source: 10-Q · 2025-11-19

• There is no guarantee that we will be able to successfully operate Ballengee Group or that the assumed synergies will be successful.

• We recently completed the acquisition of Ballengee, which we believe has the potential to be transformative for our Company. Management anticipates that Ballengee could contribute significantly to our revenues and help us achieve profitability. However, there can be no assurance that we will be able…

• Because AdaptAI is still in development and unproven in the market, there is no guarantee that it will generate the expected incremental revenues or competitive advantages. If we fail to integrate Ballengee Group effectively or achieve the assumed synergies, our business, financial condition, and re…

• Our ability to generate revenues is highly sensitive to rapidly changing consumer preferences and industry trends, as well as the popularity of the talent, brands, and owners of intellectual property we represent, and the assets we own. Our success depends on our ability to represent influencers and…