AMCI — Q2 2026 Financial Report Analysis

A camera reseller with a robotics name: margins jumped because product sales shrank

AMC Robotics Corporation became a public company on December 9, 2025, when it merged with AlphaVest Acquisition Corp., a SPAC (a listed shell company formed to buy a private business). Despite the name, the business described in its second-quarter 2026 10-Q is not robotics: it "primarily distributes intelligent security camera products through e-commerce platforms" in the US, Canada and Europe, and earns a share of the cloud-subscription fees paid by camera owners to Kami Vision, a company affiliated with AMC's CEO and majority stockholder, Sean Da. Research and development spending was $3,000 for the whole quarter.

For the three months to June 30, 2026, revenue fell 33% to $937,177. Gross margin (the share of revenue left after the direct cost of what was sold) jumped from 19% to 80%. The operating loss narrowed from $735,036 to $156,500, and the net loss narrowed from $228,913 to $175,730. These numbers are in dollars, not millions: this is a very small company.

At a glance

• 83% of revenue came from one related party. The $774,087 revenue share from Kami Vision was up 54% year on year, while sales of cameras to outside customers fell 79% to $157,947. Nearly all of AMC's income now depends on a company its CEO is affiliated with.
• Gross margin of 80%, up from 19%, is mostly an accounting effect of the new revenue mix. AMC books the Kami revenue share "on a net basis" (only its cut counts as revenue, with almost no cost attached), so the more revenue comes from Kami, the higher the margin, even when total income is falling.
• Cash fell from $7.0 million to $4.5 million in six months. Operations used $1.5 million and a $1.0 million investment in an AI start-up used the rest, even though the six-month net loss was only $30,129.

The numbers

Six months to June 30: revenue of $2,121,793 (down 33% from $3,189,800), an operating loss of $27,961 (versus $1,482,788) and a net loss of $30,129 (versus $306,090). The first quarter on its own was profitable, with net income of $145,601. The second quarter was not.

Where the revenue comes from

There are two parts to the business:

1. Selling cameras. AMC buys security cameras from Senslab, a manufacturer in which Sean Da owns about 38%, and sells them on e-commerce marketplaces. Management says it is deliberately shrinking this side: third-party product revenue fell 87% in the first half "as management continued to shift its business strategy away from lower-margin product sales." Advertising was cut almost entirely, with sales and marketing spending down 91% to $19,758 in the quarter.
2. Taking a cut of Kami's subscriptions. Customers who buy AMC's cameras can pay Kami Vision for cloud video storage. Since July 1, 2025, AMC receives 30% of the subscription revenue from new customers it refers, for their first three years. In January 2026 Kami added an AI module (face recognition, motion capture, fall detection), also shared at 30%. Since late 2025 AMC also earns "intelligent information services" revenue from Kami, described as giving partners' "downstream data-related monetization channels" access to products AMC sold earlier. Of the $774,087 Kami total, $594,238 was the cloud and AI revenue share. The rest was this information-services income.

The long-run problem with the second model is that the revenue share depends on cameras already sold, while new camera sales are falling sharply. Fewer new cameras means fewer new subscribers to share in.

What the headline numbers hide

• Income from Kami actually fell. In 2025 Kami also paid AMC a marketing subsidy, which AMC booked below operating profit as "other income": $533,688 in Q2 2025. That agreement expired on December 31, 2025 and was not renewed. Counting both streams, Kami-sourced income was about $1,035,000 in Q2 2025 ($501,307 revenue share plus the $533,688 subsidy) and $774,087 in Q2 2026, a drop of roughly a quarter. Some of the jump in operating results came from income moving out of "other income" and into revenue, which is why the operating loss improved by $578,536 but the net loss improved by only $53,183.
• Revenue share fell between quarters. Revenue share was $946,050 in Q1 2026 (six-month $1,720,137 less Q2's $774,087) and $774,087 in Q2, an 18% drop. That is the difference between Q1's profit and Q2's loss.
• Little of the reported revenue has turned into cash. Money owed to AMC by related parties rose from $2.07 million at year-end to $3.25 million on June 30, an increase of about $1.2 million against six-month revenue of $2.1 million. The filing says the increase is mainly unpaid amounts from Kami under the revenue-share agreements, plus unpaid invoices from ZKCam, a minority stockholder. Operating cash flow was -$1.48 million for the half, against a net loss of only $30,129.
• $1.06 million prepaid to the CEO-affiliated supplier. AMC paid Senslab $1,056,527 in advance for inventory that had not arrived by June 30, even as camera sales fell 87% and inventory on hand dropped to $771,483 from $1.07 million. AMC also took a $49,620 inventory write-down in the quarter. A large prepayment to a related supplier while the company is cutting back on product sales is worth watching.
• The interest income is real but small. Interest income of $33,042 came from cash raised in the merger. Without it, the quarterly pre-tax loss would have been about $210,000.
• Accounting cleanups. The company filed late notices (NT 10-K and NT 10-Q) for both its 2025 annual report and its Q1 10-Q. It revised its December 31, 2025 balance sheet to add about $109,000 of professional fees that had been left out. Management called the error immaterial.

Takeaway: AMC's 80% gross margin and narrower loss come from shrinking its camera business and booking a CEO-affiliated company's revenue share as almost pure margin. Counting the expired 2025 subsidy, income from that partner fell about 25% year on year, and $3.25 million of what it owes AMC is still unpaid. Cash, not margin, is the number that matters here: it fell $2.5 million in six months, and the company has since turned to dilutive financing.

Financing since the quarter ended

Two financings after June 30 matter more to shareholders than the quarter's small loss:

• Warrant inducement (August 17, 2026). Two holders agreed to exercise warrants for 606,060 shares at a reduced price of $1.65, giving AMC about $1 million in gross proceeds, with up to about $1.1 million more if they exercise the rest. In return they received up to 1,219,816 new warrants at $5.7756 per share.
• Up to $50 million equity line with convertible notes (September 17, 2026). AMC signed a Standby Equity Purchase Agreement (SEPA) with Ayame Asset Holdings, which lets AMC sell new shares to the investor over time at a small discount to the market price. Under the deal, $2.22 million of convertible notes was funded on September 17, with a further $1.66 million to follow once a registration statement takes effect and shareholders approve. Both are funded at a 10% discount to face value and mature on September 17, 2027. The notes convert at the lower of $4.017 or 92% of the recent lowest daily average price, down to a floor that starts at no more than $1.00. The 8-K estimates that up to 200.45 million shares could be issued at a $0.25 floor price. AMC had 22.6 million shares outstanding at June 30. Variable-price convertibles like these can mean heavy dilution if the share price falls.

On October 1, 2026, AMC appointed Ang Li, an assistant professor of electrical and computer engineering at the University of Maryland and a former Qualcomm AI Research associate, as Chief Technology Officer. In Q2 it also put $1.0 million into Etronium AI Inc. through two SAFEs (Simple Agreements for Future Equity, which turn into shares if the start-up raises a priced funding round). These are the first concrete steps toward the AI and robotics strategy the company's name suggests. Neither has produced revenue yet.

Outlook

Management gives no numerical guidance. Its stated priorities are expanding recurring service revenue and AI offerings, keeping inventory tight, and making "selective investments," and it says existing cash plus expected operating cash flow will cover the next twelve months. Operating cash flow was negative $1.5 million in the first half, so that statement depends on collecting the Kami receivables and on the new financing.

What to watch in the Q3 10-Q, due by mid-November:

• Revenue share. Whether the Kami revenue share stops falling after the 18% drop from Q1 to Q2, given that new camera sales, which feed future subscriptions, are still shrinking.
• Cash. Whether the $3.25 million in related-party receivables starts being paid and whether the $1.06 million Senslab prepayment turns into delivered inventory.
• Shares issued. How many shares go out under the warrant inducement, the SEPA and the note conversions, and at what prices.
• Robotics. Whether any spending or revenue tied to the stated robotics and AI direction appears, beyond the new CTO and the $1.0 million start-up stake.

Our read: the quarter shows a small, related-party-dependent camera distributor managing toward breakeven, not a robotics company. The bigger near-term risk is that dilution from the September financing outweighs any improvement in operating results.