AVX — Q2 2026 Financial Report Analysis

AVAX One Technology (formerly AgriFORCE Growing Systems, renamed in November 2025) is now essentially a holder of the AVAX cryptocurrency token, with a small Bitcoin-mining business attached. In the second quarter of 2026 it booked $2.8 million of revenue, up from $0.45 million, mostly from staking rewards on its AVAX holdings. It also posted a $35.1 million net loss, because AVAX roughly halved in price over the first half and the company has to count that fall as a loss in its income statement. Shareholders' equity, meaning assets minus liabilities, fell from $187.0 million at the end of 2025 to $108.3 million on June 30.

At a glance

• $29.8M paper loss on crypto in Q2 ($66.1M in the first half). This is the drop in market value of the 12.2 million AVAX tokens the company holds. It is not cash spent, but it is real value lost: the tokens cost $152.8M and were worth $79.8M at quarter-end.
• $2.1M of Q2 revenue came from AVAX staking, a business that didn't exist a year ago. Bitcoin mining added $0.68M, up 50%. The staking rewards are paid in tokens, not dollars, so none of this revenue showed up as operating cash.
• $11.4M of unrestricted cash, down from $22.1M in December. Over the half-year, $5.1M went to running the business, $3.9M to share buybacks and $2.5M to mining equipment. After the quarter ended, the company also paid down about $6.8M of debenture principal.

What the company is now

AgriFORCE stopped its agriculture-technology operations in early 2025 and is selling the last piece, its Manna patents, with closing expected in Q4 2026. The business now has three parts:

1. An Avalanche treasury. The company holds AVAX, the native token of the Avalanche blockchain, and "stakes" it. Staking means locking tokens up to help validate transactions on the network in exchange for reward tokens, roughly like earning interest. This part was funded by a $219.1 million financing in November 2025, which investors partly contributed in AVAX tokens rather than cash.
2. Bitcoin mining at sites in Alberta (Canada) and Ohio, bought between December 2024 and January 2025. The company recently added 220 mining machines, which raised its Alberta computing capacity by about 33%.
3. A planned data center. In April 2026 it signed a letter of intent with BlueFlare Energy Solutions for powered land in Alberta that could host a 10 MW AI/high-performance-computing facility. The 10-Q says sites are still being evaluated. There is no revenue or committed construction spend yet.

Q2 2026 results

n/m = not meaningful. The year-ago company was a much smaller Bitcoin miner with about 24,000 shares (adjusted for reverse splits), so loss and per-share comparisons don't tell you anything useful. EPS reflects a 1-for-9 reverse split in July 2025 and a 1-for-12 reverse split on June 15, 2026.

The first half shows the same pattern at larger scale. Revenue was $5.33M (vs $0.73M) and the net loss was $81.5M (vs $8.2M). Of that loss, $66.1M was unrealized crypto losses, $5.3M was a realized loss and $3.7M was an impairment, all tied to the AVAX price.

Why the loss is so large

U.S. accounting rules for crypto require companies to value their tokens at the market price at each quarter-end and put any change straight through the income statement. The company's own figures imply an AVAX price of about $12.29 per token at December 31, 2025 and about $6.53 on June 30, 2026, a drop of roughly 47% (our calculation from the reported fair value divided by token count). Holding about 12 million tokens, that fall produced most of the $66.1M first-half unrealized loss.

Two smaller AVAX-related charges sit on top:

• A $5.3M realized loss in Q1. In March the company moved about 830,000 AVAX into "tAVAX", a liquid-staking token issued by a protocol called Treehouse that keeps earning staking rewards and can still be traded or redeemed. The tokens were worth less on the day they were moved than their recorded value.
• A $2.6M impairment in Q2 ($3.7M in the half). The tAVAX holding was written down as AVAX fell. tAVAX is carried under a different accounting method than AVAX itself, so this loss can't be reversed if the price recovers.

Segment view

Bitcoin mining earned more revenue but went from a small profit to a loss. Revenue rose $0.23M, while cost of revenue rose $0.55M because the bigger fleet uses more power and hosting. A separate "Bitcoin operating costs" line of $0.12M was also added. In the six months the segment lost $1.41M on $1.26M of revenue, which included a $0.26M loss on disposing of old equipment. The company's 30.6 BTC were worth $1.79M against a cost of $2.66M.

Corporate costs rose 71%. The 10-Q explains that selling, general and administrative expense grew from $1.18M to $2.19M. Of that increase, $0.6M was office and administrative costs (mainly insurance) and $0.3M was investor-relations campaigns "to promote the Company". Lower professional fees, wages and severance partly offset them.

What the headline numbers hide

• Revenue is paid in tokens, so cash flow is worse than the income statement. All $5.3M of first-half revenue was received in AVAX or Bitcoin. In the cash-flow statement it is removed as "revenue from digital asset production". Operating cash flow was –$5.1M, against an adjusted operating loss of $2.3M. That $2.3M is the company's own non-GAAP figure, which excludes $75.7M of non-cash charges from the $78.0M GAAP operating loss. So the staking business pays for itself only if the company later sells tokens, at whatever the price is then.
• Excluding crypto price moves, the business still lost money. Strip out the Q2 impairment, realized loss and unrealized loss ($32.4M combined) and Q2 operating costs were $3.81M against $2.82M of revenue. That is an underlying operating loss of about $1.0M before $1.7M of debenture interest accretion. Accretion is the non-cash interest charge that builds up a debt discounted at issue back to its face value.
• Some of the tokens behind equity aren't fully in the company's hands. About 1.0 million AVAX (cost $16.6M) sit in investor wallets under lock-ups or pledged as collateral, and the company doesn't hold their keys. They are recorded as "subscriptions receivable", a deduction from equity, and are not counted as assets. Locked tokens worth $4.3M at market value were released into the company's control in the first half.
• Buybacks shrank the cash pile. Under a $40M authorization from November 2025, the company bought back 402,537 shares for $3.9M through June 30, about $9.70 per share on average (our calculation). It bought another 57,503 shares for $0.3M through August 12. Book value was about $14.70 per share at June 30, using the $108.3M of equity and 7.36M shares outstanding. On paper the buybacks were made below book value, but that book value moves with the AVAX price.
• The debt is short-term and expensive, but getting smaller. The convertible debentures had $15.0M face value and a $13.0M carrying value at June 30, all classed as current, meaning due within a year. They carry 5–8% interest plus 10% original-issue discounts, which is why interest accretion was $3.5M in the half. After the quarter, the company repaid two holders in full and cut a third's principal, for about $6.8M in total. The CEO's departure had breached a "key person" clause in the debentures, and the holders waived it as part of this deal. In exchange, the company's minimum cash-plus-Bitcoin covenant rose from $100,000 to $3.5 million.
• The year-ago comparison includes a business since sold. Q2 2025 included $1.1M of losses from discontinued operations (the sold RCS business) and a $4.6M loss on extinguishing debt. Neither happened again this year.

Takeaway: For shareholders, almost all of AVAX One's value is the AVAX token price. About $80M of its $123M in assets is AVAX marked to market. Staking revenue, about $2M a quarter, comes in as more tokens rather than cash. Meanwhile mining and corporate costs consumed $5.1M of real cash in six months. A 47% fall in AVAX wiped out about 42% of equity in two quarters, and nothing in the operating business offsets that exposure.

Outlook

Management gives no revenue or earnings guidance. The 10-Q says cash on hand plus staking and mining output "is expected to be sufficient" to fund operations for at least twelve months. That rests on $11.4M of unrestricted cash and $5.4M of restricted cash at June 30, before the roughly $6.8M debenture paydown in July–August. It also assumes the company can sell tokens if needed. The new $3.5M minimum-liquidity covenant sets a hard floor.

Things to watch in the Q3 10-Q:

• The AVAX price at September 30. It drives most of the next quarter's reported profit or loss, in either direction.
• Whether staking revenue holds near $2M a quarter. It depends on the token count, the network's reward rate and the token price.
• Mining profitability. It should improve with the 220 new machines running a full quarter. It was negative in both Q1 and Q2.
• Progress on the data center: a chosen site, financing, or customer contracts. So far there is only a letter of intent and an engineering-design agreement.
• Leadership. Peter Wylie Jr. has been interim CEO since Jolie Kahn left on July 3, and a search for a permanent CEO is under way. Watch also whether the Manna patent sale closes in Q4.

The company regained Nasdaq's $1 minimum-bid compliance on July 8, 2026, after the 1-for-12 reverse split. Delisting is no longer an immediate risk, but this is the company's second reverse split in under a year.