Technology
Cineverse Reports Fourth Quarter and Fiscal Year 2024 Results
Published
2 years agoon
By
Total Revenue of $49.1 Million
Total Direct Operating Margin Increased to 61% from 47%
Selling, General, and Administrative Expenses Decreased By $8.9 Million, or 24%
Adjusted EBITDA of $4.4 Million, an Increase of $4.3 Million from Prior Year
Positive Working Capital of $1.5 Million as of Year End
LOS ANGELES, July 1, 2024 /PRNewswire/ — Cineverse Corp. (“Cineverse” or the “Company”) (NASDAQ: CNVS), a global streaming technology and entertainment company, today announced its financial results for the quarter and fiscal year ended March 31, 2024 (“FY 2024”).
FY 2024 Financial Overview (all comparisons are to the prior fiscal year ended March 31, 2023):
For the fiscal year ended March 31, 2024, the Company’s initiatives to reduce operating costs, optimize our streaming channel portfolio and increase margins continued to have a positive impact on our financial results contributing to Adjusted EBITDA of $4.4 million for the year, up $4.3 million over the prior year.
During the fourth quarter, the Company recorded a $14.0 million non-cash, non-recurring impairment to Goodwill. The Goodwill impairment was required by US GAAP as a result of our market capitalization ($21.8 million as of March 31, 2024) being significantly below our book value. This triggered a required impairment assessment under US GAAP.
In addition, during the first quarter of fiscal year 2025, the Company began to execute on its previously approved share repurchase program and acquired 184 thousand shares through June 30, 2024. The share repurchase program remains in place as previously reported and will continue to be utilized to support our stock price as appropriate.
Chairman’s Commentary:
Chris McGurk, Cineverse Chairman and CEO, stated, “Our focus this year has been a concerted drive toward sustainable profitability for the Company. Our full year and fourth quarter results reflect the results of those efforts, with vastly improved operating margins and significantly streamlined cost structure generating positive and growing Adjusted EBITDA and accelerating a rapid trend toward positive annual net income. Excluding the key non-cash Goodwill Impairment and non-operating Metaverse investment loss, we reduced our net loss by $4.8 million or by 58% to $3.4 million for the full year and were virtually break even on net income in this most recent reported quarter. We generated Adjusted EBITDA of $4.4 million, an increase of $4.3 million, despite losing significant revenues from the runoff of our legacy Digital Cinema equipment business and lapping the success last year of the horror phenomenon Terrifier 2. Our direct operating margins improved significantly, to 61% versus 47% in the prior year, reflecting major SG&A cost savings from our Cineverse Services India organization, a unique competitive advantage for us where now we operate with more than half of our total workforce.”
McGurk continued, “Importantly, given what we believe is a vastly undervalued stock equity price that has sustained at that depressed level well below book value for far too long, we began to implement the Company’s previously announced stock repurchase program subsequent to year end. We believe that by repurchasing our significantly undervalued shares we are taking advantage of a significant value-creation opportunity for the Company that will prove itself as we continue to execute our strategic growth and profitability plan.
“Finally, Terrifier 3, the highly anticipated next installment of the Terrifier horror franchise, will be released on October 11, 2024. All of the marketing, streaming, advertising, podcast and human assets of the Company are being geared up to support this film, which we believe will be a major contributor to our growth and profitability.”
FY 2024 Financial Highlights:
Full-year consolidated revenue was $49.1 million, down from $68.0 million in the prior year, primarily due to prior year legacy Digital Cinema revenues of $12.0 million and revenue of $3.8 million from last year’s theatrical success of the horror phenomenon Terrifier 2, which are not included in the current year.Streaming revenue of $37.3 million was down from the prior year revenue of $40.4 million, driven by a $6.6 million decrease in advertising-based revenue to $12.5 million from $19.1 million, attributable to our channel optimization efforts and persistent headwinds in the advertising market, partially offset by a 25% increase in subscription-based revenue to $13.5 million from $10.8 million.The Company’s direct operating costs decreased $17.2 million to $19.1 million, down from $36.4 million. This was driven by lower revenue and significantly improved direct operating margin of 61%, up from 47%, and a $2.3 million decrease in estimated royalty-related liabilities at the fiscal year end as compared to the prior year.The Company also achieved an $8.9 million decrease in selling, general and administrative expenses (SG&A) by further leveraging its Cineverse Services India business which was a primary driver of $5.8 million in reduced compensation expense, as well as tighter spending controls.Net loss attributable to common stockholders was $21.8 million, or $(1.78) per diluted share, compared to $10.1 million, or $(1.13) per share in the prior year.Adjusted EBITDA increased to $4.4 million from $0.1 million in the prior year.Working Capital improved to a positive $1.5 million as of March 31, 2024 compared to $(7.8) million as of March 31, 2023 reflecting our improving financial condition.Stockholders’ equity was $32.2 million, or $2.62 per weighted average outstanding share for the year, as of March 31, 2024.
Q4 FY 2024 Highlights (all comparisons are to the prior year fiscal quarter ended March 31, 2023):
Total revenue was $9.9 million compared to $12.5 million, reflecting a decrease in the Company’s physical business ($1.3 million), the Digital Cinema ($0.8 million) impact in the prior year quarter, and the impact of our channel portfolio optimization efforts where we have culled lower margin channels, concentrating our resources on higher-return performers.The Company’s direct operating expenses decreased to $2.0 million from $6.5 million, in part attributable to the reduced fourth quarter estimate of the Company’s royalty accrual, leading to a direct operating margin of 79%, as compared to 48% for the prior year quarter. This margin is well above our previously stated margin target of 45% to 50% and we expect future quarters to return to our previously stated targeted margins.SG&A expenses decreased by $1.0 million to $6.8 million from $7.8 million, reflecting the impact of our continued cost savings initiatives.Adjusted EBITDA increased by $2.4 million to $1.6 million.Financial condition overview:Cash and cash equivalents of $5.2 million as of March 31, 2024.In February 2024, the Company expanded its revolving line of credit facility with East West Bank from $5.0 million to $7.5 million.In June 2024, the Company was notified in writing by EWB that it intends to extend the maturity date of the Line of Credit Facility to September 15, 2025, subject to definitive documentation.Digital content library valued in FY 2024 at $26 million to $30 million in a third-party appraisal, compared to a book value of $2.6 million as of March 31, 2024.
Operational Developments During the Quarter
Announced partnership with Google Cloud to launch cineSearch, a conversational search & discovery (SAND) tool for film and television content, with a public beta subsequently launched in May 2024.Expanded existing credit line with East West Bank to $7.5 Million – further strengthening Cineverse’s balance sheet without equity dilutionDebuted Dog Whisperer with Cesar Milan FAST channel – featuring every episode of the beloved series – on Amazon Freevee.Activated Matchpoint at CES 2024 – saw significant lead generation and potential revenue generation from event.Launched Cineverse 360 Audience Network, a new ad platform which brings advertisers a scalable solution for reaching enthusiast audiences across a network of Cineverse and third-party publishers.Reached a multi-year extension of its partnership with Konami Cross Media NY, Inc., solidifying the Company’s position as a leader in the streaming anime landscape.Premiered Sid & Marty Krofft Channel – featuring 50 years of iconic shows now made available as VOD offering on Roku Channel, Cineverse, Dove Channel and Midnight Pulp. This marks a historic re-release of the remastered library – making the culture-defining shows available on digital platforms for the first time thanks to Cineverse’s proprietary streaming technology, Matchpoint.Partnered with Peacock to exclusively stream the documentary film, Represent, which follows hopefuls, as they compete for spots on the first U.S. Olympic women’s surfing team, as well as ON FIRE, a true and harrowing survival drama.Terry City, Ad Industry Veteran from Yahoo!, Buzzfeed, Tastemade and Variety, joined Cineverse as SVP and Head of Cineverse 360.
Operational Developments Subsequent to Quarter-End
Set release date for “Terrifier 3” – the highly anticipated follow up to runaway hit, “Terrifier 2” – for October 11, 2024. Announced Iconic Events as theatrical distribution partner.Announced the capability to provide robust, cost-streaming workforce solution to Matchpoint customers through the Company’s India-based Cineverse Services India.Expanded wildly successful Bob Ross Universe with episodes remastered in HD & 4K for the first time ever – along with exclusive new ambient viewing content “The Bob Ross Gallery Collection” series.Expanded podcast network to explosive growth – yielding a 49% revenue surge over the last 60 days.Announced partnerships with Gracenote, Vionlabs and Datatonic to enhance the Company’s conversational AI-Powered content discovery tool, cineSearch.Announced numerous channel launches on Xfinity, Xumo, Zone-ify and DIRECTV – driving additional distribution to unlock the potential for revenue growth.Announced a new distribution deal with Australia-based Network 10, a division of Paramount Global, to bring 10 play’s FAST channels.
President’s Commentary:
Erick Opeka, President and Chief Strategy Officer, added, “We made considerable progress during the quarter building out our direct sales teams for advertising and technology, expanding our technology partnerships, and scaling the distribution of our audio and video content businesses, all while continuing to optimize both operating and SG&A costs. The streaming business is currently operating at greater than 50% direct operating margins, and with our recent efforts at model optimization, we can sustainably maintain or even expand those margins as our new, margin-rich technology products and services begin to contribute to the top line.
During the quarter, we secured carriage agreements for The Dog Whisperer Channel with nearly all hardware manufacturers and FAST streaming services in North America, and we expect 100% carriage within the next quarter. The channel’s performance has exceeded our expectations in the short period it has been in the market, outperforming our top channels by up to 40% on key platforms. If this trend continues, we expect this channel to rapidly become one of our highest-revenue FAST channels in the market. We plan on fully localizing and distributing this channel globally as various territories revert to us over the coming quarters. We also secured initial contractual placements for The Sid and Marty Krofft Channel and GoPro, and given the market’s interest in both sports and retro content, we expect considerable expansion of distribution leading up to the end of this year. Finally, we have had considerable success launching our kids vertical, with nearly 45 million minutes streamed in the first month alone. We expect significant expansion of that business as well and are working on new advertising products for the market focused on the monetization of kids & family content.
On the sales front, we tripled the size of our direct advertising sales force with experienced executives and closed major campaigns with Focus Features, Amazon Prime Video, SimpliSafe Home Security, 20th Century Fox, Master Class, A24 Studios, and many more. We expect to see a significant percentage of our inventory shift to higher-margin direct sales over the next several quarters. Additionally, we are expanding our sales team to handle the rapidly growing footprint of our Podcast Network, which currently ranks #7 in North America in terms of download volume at 12 million monthly downloads. We believe there is significant revenue upside in this business that we will be able to realize as we focus on dramatically increasing monetization over the next two quarters. Lastly, we also hired our head of sales for our technology business and expect the first SaaS deals to close from that sales pipeline in early July. Given our product suite’s ability to meet the rapidly growing demand by platforms and OEMs to build out their ad-supported content initiatives, we expect to see considerable growth in sales of Matchpoint Dispatch to support the market’s insatiable demand for ad-supported content.”
Opeka continued, “Finally, we made considerable strides in our AI strategy. We successfully launched the cineSearch beta during the quarter and are currently in a dual-track effort to refine our AI models and focus on commercialization. We plan on deploying the product in cloud marketplaces in the coming months and are also engaging in early commercial conversations with various device manufacturers intrigued by the idea of enabling an AI-based search capability within their own streaming services. We are actively leveraging our Matchpoint dispatch technology to meet the growing demand for high-quality training data across general and specialized AI models, engaging in advanced discussions with model developers and content partners to provide the industry’s largest and most refined video training dataset. Drawing on our decades of experience as a content aggregator and our proprietary technology, we are uniquely positioned to address the needs of both content owners and AI companies at an unprecedented scale, potentially revolutionizing the AI training landscape. We expect to make additional announcements on these developments later in the current quarter.”
Conference Call
Cineverse will host a conference call at 4:30 p.m. ET (Monday, July 1, 2024), during which management will discuss the results of the fiscal year ended March 31, 2024. To participate in the conference call, please use the following dial-in numbers:
United States (Local):
+1 404 975 4839
United States (Toll-Free):
+1 833 470 1428
Canada (Toll-Free):
+1 833 950 0062
Access Code:
274103
The conference call can also be accessed by webcast at the Investors section of the Company’s website at https://investor.cineverse.com/events-and-presentations. Those who are unable to attend the live conference call may access the recording at the above webcast link, which will be made available shortly after the conclusion of the call.
About Cineverse
Cineverse’s advanced, proprietary technology drives the distribution of over 70,000 premium films, series, and podcasts to more than 150 million unique viewers monthly. From providing a complete streaming solution to some of the world’s most recognizable brands, to super-serving their own network of fan channels, Cineverse is powering the future of Entertainment. For more information, please visit www.cineverse.com. (NASDAQ: CNVS)
Safe Harbor Statement
Investors and readers are cautioned that certain statements contained in this document, as well as some statements in periodic press releases and some oral statements of Cineverse officials during presentations about Cineverse, along with Cineverse’s filings with the Securities and Exchange Commission, including Cineverse’s registration statements, quarterly reports on Form 10-Q and annual report on Form 10-K, are “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”). Forward-looking statements include statements that are predictive in nature, which depend upon or refer to future events or conditions, which include words such as “expects,” “anticipates,” “intends,” “plans,” “could,” “might,” “believes,” “seeks,” “estimates” or similar expressions. In addition, any statements concerning future financial performance (including future revenues, earnings, or growth rates), ongoing business strategies or prospects, and possible future actions, which may be provided by Cineverse’s management, are also forward-looking statements as defined by the Act. Forward-looking statements are based on current expectations and projections about future events and are subject to various risks, uncertainties, and assumptions about Cineverse, its technology, economic and market factors, and the industries in which Cineverse does business, among other things. These statements are not guarantees of future performance, and Cineverse undertakes no specific obligation or intention to update these statements after the date of this release.
For additional information, please contact:
Julie Milstead
424-281-5411
investorrelations@cineverse.com
CINEVERSE CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
As of
March 31,
March 31,
2024
2023
ASSETS
Current Assets
Cash and cash equivalents
$
5,167
$
7,152
Accounts receivable, net
8,667
20,846
Unbilled revenue
6,439
2,036
Employee retention tax credit
1,671
2,085
Content advances
9,345
3,724
Other current assets
1,432
1,734
Total Current Assets
32,721
37,577
Equity investment in A Metaverse Company, a related party, at fair value
362
5,200
Property and equipment, net
2,276
1,833
Intangible assets, net
18,328
19,868
Goodwill
6,799
20,824
Content advances, net of current portion
2,551
1,421
Other long-term assets
1,341
1,265
Total Assets
$
64,378
$
87,988
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable and accrued expenses
$
20,817
$
34,531
Line of credit, including unamortized debt issuance costs of $81 and $76, respectively
6,301
4,924
Current portion of earnout and deferred consideration on purchase of business
3,294
5,232
Operating lease liabilities
401
418
Current portion of deferred revenue
436
226
Total Current Liabilities
31,249
45,331
Deferred consideration on purchase, net of current portion
457
2,647
Operating lease liabilities, net of current portion
462
863
Other long-term liabilities
59
74
Total Liabilities
$
32,227
$
48,915
Stockholders’ Equity
Preferred stock
$
3,559
$
3,559
Common stock
194
185
Additional paid-in capital
545,996
530,998
Treasury stock, at cost
(11,978)
(11,608)
Accumulated deficit
(504,153)
(482,395)
Accumulated other comprehensive loss
(345)
(402)
Total stockholders’ equity of Cineverse Corp.
33,273
40,337
Deficit attributable to noncontrolling interest
(1,122)
(1,264)
Total equity
32,151
39,073
Total Liabilities and Equity
$
64,378
$
87,988
CINEVERSE CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for per share data)
For the Three Months Ended
March 31,
For the Fiscal Year Ended
March 31,
2024
2023
2024
2023
(Unaudited)
(Unaudited)
Revenues
$
9,863
$
12,548
$
49,131
$
68,026
Operating expenses
Direct operating
2,033
6,505
19,131
36,364
Selling, general and administrative
6,816
7,803
27,904
36,819
Depreciation and amortization
984
855
3,771
3,763
Goodwill impairment
14,025
—
14,025
—
Total operating expenses
23,859
15,163
64,831
76,946
Operating loss
(13,995)
(2,615)
(15,700)
(8,920)
Interest expense
(286)
(410)
(1,066)
(1,290)
Loss from investment in Metaverse, a related party
(538)
—
(4,299)
(1,828)
Employee retention tax credit
—
—
—
2,475
Other income (expenses), net
141
69
(190)
(13)
Net loss before income taxes
(14,678)
(2,955)
(21,255)
(9,575)
Income tax benefit (expense)
2
(119)
(10)
(119)
Net loss
(14,676)
(3,075)
(21,265)
(9,694)
Net income attributable to noncontrolling interest
(48)
(4)
(142)
(39)
Net loss attributable to controlling interests
(14,724)
(3,079)
(21,407)
(9,734)
Preferred stock dividends
(87)
(87)
(350)
(351)
Net loss attributable to common stockholders
$
(14,811)
$
(3,166)
$
(21,757)
$
(10,085)
Net loss per share attributable to common stockholders:
Basic
$
(1.10)
$
(0.35)
$
(1.78)
$
(1.13)
Diluted
$
(1.10)
$
(0.35)
$
(1.78)
$
(1.13)
Weighted average shares of common stock outstanding:
Basic
13,525
8,995
12,253
8,889
Diluted
13,525
8,995
12,253
8,889
Adjusted EBITDA
We define Adjusted EBITDA to be earnings before interest, taxes, depreciation and amortization, stock-based compensation expense, merger and acquisition costs, restructuring, transition and acquisitions expense, net, goodwill impairment and certain other items.
Adjusted EBITDA is not a measurement of financial performance under GAAP and may not be comparable to other similarly titled measures of other companies. We use Adjusted EBITDA as a financial metric to measure the financial performance of the business because management believes it provides additional information with respect to the performance of its fundamental business activities. For this reason, we believe Adjusted EBITDA will also be useful to others, including our stockholders, as a valuable financial metric.
We present Adjusted EBITDA because we believe that Adjusted EBITDA is a useful supplement to net income (loss) from continuing operations as an indicator of operating performance. We also believe that Adjusted EBITDA is a financial measure that is useful both to management and investors when evaluating our performance and comparing our performance with that of our competitors. We also use Adjusted EBITDA for planning purposes and to evaluate our financial performance because Adjusted EBITDA excludes certain incremental expenses or non-cash items, such as stock-based compensation charges, that we believe are not indicative of our ongoing operating performance.
We believe that Adjusted EBITDA is a performance measure and not a liquidity measure, and therefore a reconciliation between net income (loss) from operations and Adjusted EBITDA has been provided in the financial results. Adjusted EBITDA should not be considered as an alternative to net income (loss) from operations as an indicator of performance or as an alternative to cash flows from operating activities as an indicator of cash flows, in each case as determined in accordance with GAAP, or as a measure of liquidity. In addition, Adjusted EBITDA does not take into account changes in certain assets and liabilities as well as interest and income taxes that can affect cash flows. We do not intend the presentation of these non-GAAP measures to be considered in isolation or as a substitute for results prepared in accordance with GAAP. These non-GAAP measures should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.
Following is the reconciliation of our consolidated net (loss) income to Adjusted EBITDA (in thousands):
For the Three Months Ended
March 31,
For the Fiscal Year Ended
March 31,
2024
2023
2024
2023
(Unaudited)
(Unaudited)
Net loss
$
(14,676)
$
(3,075)
$
(21,265)
$
(9,694)
Add Backs:
Income tax (benefit) expense
(2)
119
10
119
Depreciation and amortization
984
855
3,771
3,763
Interest expense
286
410
1,066
1,290
Stock-based compensation
347
564
1,439
4,470
Loss from equity investment in Metaverse, a related party
538
—
4,299
1,828
Employee retention tax credit
—
—
—
(2,475)
Provision for credit losses
—
—
—
54
Goodwill impairment
14,025
—
14,025
—
Other (income) expense, net
(142)
95
(140)
13
Net income attributable to noncontrolling interest
(48)
(4)
(142)
(39)
Transition-related costs
241
170
1,335
541
Mergers and acquisitions costs
—
—
—
207
Adjusted EBITDA
$
1,553
$
(867)
$
4,398
$
76
View original content to download multimedia:https://www.prnewswire.com/news-releases/cineverse-reports-fourth-quarter-and-fiscal-year-2024-results-302187282.html
SOURCE Cineverse Corp.
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Edvance and CWG Launch RealRelay Fintech, AI Agents for Finance with Trust Built First
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October 19, 2026By
Edvance and CWG open RealRelay’s third vertical, bringing tested and rated AI agents to finance as MAS sets out how AI in the sector should be governed.
SINGAPORE, Oct. 19, 2026 /PRNewswire/ — On Oct. 17, Edvance International Holdings Limited (HKEX: 1410) (“Edvance”), through its wholly-owned Singapore subsidiary Paradise Matrix Pte. Ltd., and CWG Innovations Pte. Ltd. (“CWG”) today launched RealRelay Fintech, the third vertical on RealRelay.ai, the platform on which organisations build, test and run AI agents without writing code. The launch took place at a one-day youth AI event at Suntec Convention Centre, co-organised by the Digital Defence Alliance Singapore (DDAS) and CWG with the support of the National Youth Council (NYC).
The event was conceptualised, planned and developed by Mr Aaron Ang (linkedin.com/in/aaronangsg), Chief Commercial Officer of CWG, who leads the RealRelay project. Mr Ang built the day around one challenge. Participants were handed a simulated fraud case and asked to use agentic AI to find out what had happened. Within hours they had worked through tens of thousands of transaction records, traced the money, flagged the entries that did not add up and shown how they got there. The same job, done by hand, would take an audit team weeks. The event was graced by Mr Ong Kah Kuang, Assistant Chief Executive of the National Youth Council.
That is what RealRelay Fintech sets out to do. Work that is slow, manual and easy to get wrong, such as reconciling accounts, checking documents and finding the one record in a million that should not be there, becomes something an agent on the platform does accurately, in hours, with every step on record. Fraud detection is the clearest example, and it is where the fintech vertical begins. In finance, though, a fast answer counts for nothing unless the institution can trust it.
Trust comes first
Finance is the sector where trust in AI matters most, and Singapore has moved first. On 7 October the Monetary Authority of Singapore (MAS) issued its Guidelines on AI Risk Management. They cover every financial institution and every form of AI, agents included. Boards are expected to oversee AI risk, keep an inventory of each AI use, manage third-party AI and control the whole life cycle, from testing to monitoring. The guidelines take effect in October 2027. In August, MAS also committed S$220 million under FSTI 4.0 to get AI into the sector faster, including an AI Pathfinder track for solutions listed on PathFin.ai.
Every agent on RealRelay passes through the Trust and Control Layer. The platform’s own security agent tests it before it goes live and tests it again each time it changes. Permissions, logging, retention and access are controlled centrally, and every agent carries a risk rating that covers the data it can touch, the actions it can take and how it behaved under test. That rating, the agent inventory and the full log are the same things MAS now asks financial institutions to keep. The Trust and Control Layer draws on Edvance’s more than 20 years in cybersecurity.
Asked what the launch represents, Mr Ang said:
“Singapore has been clear about how it wants AI to enter finance. Innovate, but with trust and control in place from the start. We believe that is the next phase of fintech, and we built RealRelay Fintech on exactly that principle. The Trust and Control Layer is the foundation of the platform. Every agent is tested before it goes live, and the institution keeps full control over what it can see and do. When people can see that, they stop hesitating. That is how banks, funds and founders will actually put AI to work, and that is what we are here to make possible.”
What RealRelay Fintech does
At launch the vertical covers four areas of work.
Research and analysis. Agents that read filings, news and market data, run scenarios and produce forecasts with the reasoning shown.
Decision documents. Credit memos, investment committee packs, portfolio risk briefs and client review notes, drafted from a firm’s own data and templates.
Fraud, compliance and document checks. Agents that reconcile transactions, flag anomalies, check onboarding documents against policy and keep a record of every check.
Learning. A guided track for students and new joiners, using the same tools professionals use, at a price a student can afford.
Institutional deployments, including Singapore-hosted and on-premises options, are available on request.
Three verticals, one platform
RealRelay has two layers sitting on a Trust and Control Layer. The Token Exchange launched on 30 September 2026 and puts more than 300 mainstream AI models behind one subscription, routing each task to a suitable model at a lower cost than buying them separately. The Agentic Layer sits on top. Users describe what they need in plain language, assemble an agent from ready-made modules, test it and deploy it in one click, with no code. Three verticals run on these layers: education, cybersecurity and now fintech.
Education came first, and it is where the platform found its first users. At the APEX Bootcamp in September, students and young working adults with no technical background built working agents in two days. Interest from educational institutions has followed, and CWG is finalising details with these institutions to provide RealRelay and the full AI ecosystem around it to their students. Fintech now follows the same path, on the same layers and under the same controls.
What comes next
RealRelay Fintech will run a series of masterclasses in parallel with the Singapore FinTech Festival from 18 to 20 November 2026, and CWG is preparing its listing on PathFin.ai. Over 2027, the Trust and Control Layer will be mapped to the MAS guidelines so that an institution can take an agent’s test record straight into its own risk assessment. Agents built to individual institutions’ own policies and templates will follow.
For Edvance, fintech opens a subscription market where the buyers are large, regulated, and now required to show trust and control over the AI they use. Edvance is responsible for commercialising the platform and holds the intellectual property in its cybersecurity agents. The platform is owned and operated from Singapore, and the two companies are preparing to take it global, with partner talks under way and expansion plans already in place.
About Edvance International Holdings Limited
Edvance International Holdings Limited (HKEX: 1410) is a Hong Kong-headquartered value-added distributor of cybersecurity products and provider of cybersecurity services, with more than 20 years of experience in the market. Paradise Matrix Pte. Ltd. is Edvance’s wholly-owned subsidiary in Singapore. For more information, visit https://www.paradisematrix.sg.
About CWG Innovations Pte. Ltd.
CWG Innovations Pte. Ltd. is a Singapore company focused on AI solutions development and enterprise AI deployment. CWG is the operator of RealRelay.ai. For more information, visit https://www.cwgsg.ai.
View original content:https://www.prnewswire.com/apac/news-releases/edvance-and-cwg-launch-realrelay-fintech-ai-agents-for-finance-with-trust-built-first-302911986.html
SOURCE CWG Innovations; Edvance International Holdings Limited; RealRelay
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140th Canton Fair Amplifies Visibility for Hundreds of Product Debuts, Connecting Innovation with Global Demand
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GUANGZHOU, China, Oct. 19, 2026 /PRNewswire/ — The 140th Canton Fair opened on October 15 and will be held in three phases. Over 700 New Collection events will take place, representing a 15% increase from the previous session. To share these innovations with a broader audience, the fair has introduced a range of initiatives designed to enhance product visibility and facilitate business connections.
Canton Fair New Collection Gallery Debuts
A dedicated Canton Fair New Collection Gallery has been introduced for the first time at the 140th Canton Fair. Located near the high-traffic platform connecting Area A and B, the gallery is divided into three sections: a product display area, a digital interactivity area and a business matching area.
Together, these sections create an integrated platform that combines product showcase and commercial matchmaking. The setup enables buyers and exhibitors to connect more efficiently, supporting on-site trade discussions and demand matching throughout the event.
Exhibition Meets Livestreaming
To help global buyers stay updated on emerging opportunities in real time, the Canton Fair is combining its physical exhibition with livestreaming programs. A series of featured broadcasts will highlight exhibition tours, product demonstrations and new product launches across a wide range of industries.
By extending product showcases beyond the exhibition floor, these livestreams provide international buyers with convenient access to the latest innovations and market trends regardless of their location.
Theme Release Events
The fair also hosts daily New Collection Theme Release events at the central platform between Area A and B. During Phase 1, featured themes include smart living appliances, service robots, low-altitude smart inspection, smart electronics, precision tools and green energy storage. These sessions provide exhibitors with additional opportunities to present newly launched products and engage directly with buyers from around the world.
As the Canton Fair continues to evolve alongside global trade, its expanded launch platforms, digital engagement initiatives and business matching services reflect a growing commitment to helping innovative products gain market exposure and accelerate commercial opportunities. By creating more touchpoints between exhibitors and buyers, the fair is bolstering a 70-year history as a gateway for international business collaboration in China and a leading product innovation showcase.
For more convenient attendance, please click here for pre-registration:
https://buyer.cantonfair.org.cn/register/buyer/email?source_type=16
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SOURCE Canton Fair
Technology
FF EAI Robotics Ecosystem Inc. (FFR) Highlights Faraday Future Founder and Global CEO YT Jia’s Weekly Investor Update: Three New Product Offerings Launched; More Details on FFR’s Acquisition of FFAI’s Robotics Business and Independent Public Listing
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2 hours agoon
October 19, 2026By
On October 26, FFR will hold its listing ceremony and first Investor Day at the Nasdaq Tower in New York, where management will share more about FFR’s strategy and business plans, with more details to follow soon.Two new EAI Devices launched including FF Nova—America’s first entry-level EAI humanoid robot under $2,500, and the second is Nova Mini, a humanoid robot for foundational Physical AI education, priced at $299, with the accompanying curriculum at $499.FF EAI launched two new education and developer training initiatives, the Physical AI Spark Program Curriculum and the Nova Reinforcement Learning Developer Program, while also opening enrollment for its developer community to help expand participation in its embodied AI ecosystem.
LOS ANGELES, Oct. 18, 2026 /PRNewswire/ — FF EAI Robotics Ecosystem Inc. (NASDAQ: FFR) (“FFR” or the “Company”), a U.S.-based Embodied AI (EAI) robotics company, today highlighted a weekly business update from YT Jia, Founder and Global CEO of Faraday Future Intelligent Electric Inc. (NASDAQ: FFAI) (“Faraday Future” or “FF”). For purposes of attribution, references to “we,” “our,” and “FF” in the following transcript refer to FFAI and its robotics business, except where FFR named.
“Welcome to Weekly Report 77. This week, let’s start with some big news from FFR. On October 26, we will hold FFR’s listing ceremony and first Investor Day at the Nasdaq Tower in New York. Our management team will share more about our strategy and business plans. We’ll also have the chance to talk with investors face to face. To our stockholders and partners, we hope you can join us and help open this new chapter for FFR. Formal invitations to the event will go out tomorrow! Now, let me share what we’ve been working on this week.
This week, FFR and FFAI jointly launched three new offerings.
1. Two new EAI Devices. The first is FF Nova—America’s first entry-level EAI humanoid robot under $2,500. Your Physical AI lab in a backpack. The Nova device costs $2,490, and the Developer Skills Package is $390. The second is Nova Mini, our humanoid robot for foundational Physical AI education. The robot is priced at $299, and the accompanying curriculum is $499. With these additions, the “One-Brain Multi-Form Multi-Capability” FF EAI Robot World 2.0 we are building now includes more than 20 EAI Devices across 11 models, seven series, and three robot forms.
2. A new FF EAI Education Skills product—the “Physical AI Spark Program Curriculum.”
3. The Nova Reinforcement Learning Developer Program. We also opened enrollment in our developer community.
Our EAI Brain and Developer Platform Cores also made two breakthroughs this week.
Regarding the EAI brain, The All-New Futurist now fully supports SONIC. That opens up more room for development and applications on more advanced robotics platforms. This is how our approach of combining in-house development with open collaboration is starting to deliver more value.
On the Developer Platform side, we’ve made the NVIDIA SONIC data, models, and deployment solutions based on FF Master fully open source through GitHub and Hugging Face. What does that mean for developers? You now have a complete path from open-source research and testing algorithms to deploying robots and building solutions. And that path is open to universities, research institutions, and industry partners around the world, too.
Over the past few days, we’ve received some questions from stockholders about FFR’s acquisition of FFAI’s robotics business and its independent public listing. Let me take a moment to clarify a few points and explain what this means. Giving the robotics business its own operations, financing, and public listing is much more than moving assets within FFAI. It fundamentally reshapes FFR and unlocks its value. We see this as the starting point for a major breakthrough in business value and a faster release of value in the capital markets. Let me explain this in four areas.
One is a sharper strategic focus. We will concentrate our resources on delivering our “Four-Core Full-Stack AI” robotics strategy. Every dollar we invest, every decision we make, and every financing round will serve that goal. This focus will help us refine what we do, deepen our expertise, expand our scale, and strengthen our business.
Another is a clearer basis for valuation. With its own public listing as a pure-play robotics business, FFR can be valued directly against its industry peers. Its valuation will no longer be held back by other factors affecting FFAI. Combined with continued deliveries at positive contribution margins, this gives FFR significant room to unlock value.
We will also have more transparent business results and cleaner financial statements. You will be able to see how each financing round translates into business performance. That transparency can help attract strategic investors and long-term capital. After closing, FFR will have almost no debt. Its balance sheet, income statement, and cash flow statement will be cleaner, making the company’s value easier to see.
The fourth area is lower funding needs and financing costs. FFR has seven unique advantages, including our “Four-Core Full-Stack AI” EAI technology and asset-light operating model. Building on these strengths, we aim to achieve positive operating cash flow no later than the third quarter of 2028. Until then, we expect to need no more than $150 million in total financing.
For FFAI, once the transaction closes, we will remain FFR’s controlling and majority stockholder and continue to share in its potential future growth in value. As a Physical AI investment company following a Berkshire-style model, FFAI will share further business updates soon. We want to reward our stockholders for your continued support.
Over the years, we’ve received encouragement, faced ridicule, and taken harsh criticism, yet we’ve seldom felt the need to explain ourselves. Our passion for building a business is still there. It comes from working alongside people who share our vision, and driving change in the industry together. Failure itself doesn’t stop us. What stops us is losing the belief that we can try again. “Try again.” A message to myself, and to every entrepreneur who keeps going. Thank you for being part of this journey. See you next week.”
About FF EAI Robotics Ecosystem Inc.
FF EAI Robotics Ecosystem Inc. (NASDAQ: FFR) (renamed from AIxCrypto Holdings, Inc. and AIXC, effective September 30, 2026) is a U.S.-based Embodied AI (EAI) robotics company that is in the process of acquiring the FF EAI Robotics business. Upon completion of the acquisition, the Company will focus on the research and development, manufacturing, commercialization, and deployment of intelligent robotic technologies, products, and industry solutions.
The Company is committed to building a “Four-Core Full-Stack” AI ecosystem covering the full lifecycle of robotics, consisting of EAI Brain & Developer Platform, EAI Devices, Industry Productivity Solutions, and EAI Data Factory. Guided by the technology and product philosophy of “One Brain, Multi-forms, Multi-capabilities,” the Company aims to empower humanoid, biomimetic, and other robotic form factors through a unified EAI Brain, while continuously expanding their multi-task and multi-scenario capabilities. The ecosystem is designed to support the full robotics lifecycle, including R&D, deployment, data collection and training, operations, and commercial applications.
The FF EAI Robotics business has already achieved commercial deliveries of humanoid and biomimetic robotic products. Through its multi-form-factor robotic products, EAI technology platform, closed-loop data capabilities, and industry solutions, the business continues to advance the scaled adoption of robotics across real-world applications. The Company also operates RoboShare, a robot-sharing and services platform designed to connect robotic assets, service capabilities, customer demand, and ecosystem partners, further strengthening its robotics commercialization and service ecosystem.
For more information, visit www.ff.com.
About Faraday Future
Founded in 2014, Faraday Future (FF) is a U.S.-based Physical AI ecosystem company dedicated to reshaping the future of robotics and mobility solutions through AI innovation and technologies. FF focuses on two major product strategies within the Embodied AI (EAI) robotics business: EAI humanoid and bionic robots, and EAI automotive-focused robots. By building a “Four-Core Full-Stack AI” ecosystem of EAI Brain and Developer Platform, EAI Devices, Industry Productivity Solutions and EAI Data Factory, FF aims to create an evolutionary flywheel: scaled device delivery, data collection and training, continuous evolution of the EAI Brain, stronger product capability, and even larger-scale delivery and deployment. Through this flywheel, FF seeks to maximize its commercial value and lead to the advancement of Physical AI. For more information, please visit Faraday Future’s official website: https://www.ff.com/
FFR Forward-Looking Statements
This communication, including any presentation, press release, investor materials or other document of which it forms a part (this “Communication”), contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, as amended, and other securities laws, regarding FF EAI Robotics Ecosystem Inc. (“FFR,” the “Company,” “us,” “our,” or “we”) and our industry. All statements, whether written or oral, other than statements of historical fact, including any financial projections and any statements regarding future events, our strategy, our transition to robotics operations, our plans for RoboShare, our digital asset disposition plans, the proposed acquisition of the FF EAI Robotics business, the projections referenced in this communication, our name and ticker change, any related financing, and the anticipated benefits and timing of the foregoing, our objectives, expectations, or anticipated actions or results, are forward-looking statements. You can often identify forward-looking statements by words such as “may,” “might,” “will,” “shall,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” “goal,” “objective,” “seeks,” “likely,” or “continue,” or the negative of these terms or other similar expressions; the absence of these words does not mean a statement is not forward-looking. These statements reflect our current expectations and projections about future events as of the date of this Communication and are necessarily based on estimates and assumptions that, while considered reasonable by management, are inherently uncertain. FFR can give no assurance that such forward-looking statements or financial projections will prove to be correct.
Actual results may differ materially from those expressed or implied by these forward-looking statements as a result of numerous risks and uncertainties, both general and specific, including, but not limited to:
The proposed acquisition transaction and PIPE. The definitive agreements may be terminated in accordance with their terms, and the proposed transactions may not be completed on the terms described or at all; the conditions to closing, including the completion of FFAI’s internal restructuring of the robotics business, the execution of key employee agreements and other customary conditions, and the parties’ ability to satisfy them; the risk that the stockholder approval required under Nasdaq listing rules for the conversion of the preferred stock issued as consideration is not obtained or is delayed, and the effect of the conversion restrictions and the information statement process on the timing of conversion; the timing of the transaction and the costs of pursuing it; the issuance of a substantial number of shares as consideration and the resulting dilution to existing stockholders; the fact that the counterparty is our controlling stockholder, that it will hold a substantial majority of our outstanding shares following closing, that certain members of management serve both companies, and the conflicts of interest inherent in the transaction; the risk that the agreed valuations do not reflect the market value of our shares or of the acquired business; our dependence on the counterparty for transition, supply and support following any closing; the scope and enforceability of the non-competition and governance arrangements; the consequences of the transaction under Nasdaq listing rules, including the possibility that Nasdaq determines that the transaction requires us to satisfy initial listing requirements in connection with a business combination, change of control or change in the nature of our business; the risk that the PIPE financing, on which the transaction is not conditioned, is not completed on the anticipated terms or at all; the risk of litigation relating to the transaction; our ability to integrate and operate the acquired business; and the risk that the acquired business performs differently than anticipated.
Projections. The projections referenced in this communication were prepared by FFAI management for the FF EAI Robotics business on a standalone basis and do not reflect our existing business, transaction-related expenses or the combined company. We have not independently verified them or adopted them as guidance. They were not prepared with a view toward public disclosure or toward compliance with the published guidelines of the Securities and Exchange Commission or the American Institute of Certified Public Accountants regarding prospective financial information, and no independent registered public accounting firm has examined, compiled or performed any procedures with respect to them, and none expresses an opinion or any other form of assurance with respect to them. The projections reflect estimates and assumptions that are inherently uncertain and subject to change, including through due diligence and the review of our special committee and its financial advisor. Actual results are likely to differ, and may differ materially.
Liquidity, capital and going concern. Our limited cash and liquidity position and our history of operating losses and negative operating cash flow; substantial doubt regarding our ability to continue as a going concern, as described in our periodic reports; our need to obtain additional financing on acceptable terms or at all, and the substantial dilution to existing stockholders that additional financing may cause, including any financing completed in connection with the proposed transaction, which may not be completed or may be on less favorable terms than anticipated; our ability to fund operations pending and following the disposition of our digital asset positions; and our ability to satisfy the continued listing requirements of The Nasdaq Stock Market, including stockholders’ equity, minimum bid price and other applicable standards.
Our strategic transition and the disposition of digital assets. Risks associated with a fundamental shift in our business strategy and the redeployment of resources from a digital asset treasury strategy to robotics operations; our ability to execute the disposition of our digital asset positions in an orderly manner and on acceptable terms; the risk that amounts realized on disposition are materially less than carrying value as a result of price volatility, market depth, execution timing, custody or transfer constraints, or other limitations; tax, accounting and regulatory consequences of the dispositions; the continued volatility and regulatory uncertainty associated with digital assets and cryptocurrencies during the wind-down period; the concentration of a substantial portion of our assets in a single equity investment, including an investment in a related party, and the illiquidity, valuation uncertainty, holding-period and transfer restrictions associated with that investment; and risks arising from our relationships and agreements with related parties and significant stockholders.
Our robotics operations business. Our limited operating history in robotics operations and commercialization and the absence of a meaningful revenue history; the early stage of RoboShare and the risk that customer demand, repeat demand, pricing, utilization or unit economics do not develop as anticipated; our dependence on a small number of customers, on a single initial geographic market, and on individual events or engagements, and the risk that the loss of, or a change in the terms of, any such relationship has a disproportionate effect; our dependence on third-party robot owners, operators, suppliers, original equipment manufacturers and local partners, and on their willingness to make robots available on our platform; risks relating to the availability, cost, quality, maintenance, transport, insurance and technological obsolescence of robots and related equipment, and to supply chains, tariffs and trade measures affecting them; and our ability to expand into additional markets and to attract and retain participants on both sides of our marketplace.
Operations, safety and liability. Risks of property damage, personal injury or death arising from the operation of humanoid robots, quadrupeds and other autonomous or semi-autonomous machines in proximity to performers, employees, guests and the public, including at live events and in uncontrolled environments; product liability, premises liability, negligence and related claims and the adequacy, scope, availability and cost of our insurance coverage and of contractual indemnities from customers, owners and suppliers; the allocation of responsibility among us, robot owners, venues, event producers and customers; permitting, licensing, occupational safety and event-specific regulatory requirements; and the reputational consequences of any safety incident.
Technology, data and intellectual property. Systems, network, telecommunications or service disruptions, failures, defects or cyber-attacks; the performance, reliability and autonomy limitations of robotic systems and of the software, models and networks that support them; our collection, use, storage, transmission and protection of personal information, including images and any biometric or biometric-adjacent data captured in the course of robot deployments, and evolving privacy, biometric and artificial intelligence laws and regulations across the jurisdictions in which we operate or intend to operate; our ability to obtain, maintain, protect and enforce our intellectual property rights and to defend against third-party claims of infringement or misappropriation; and our reliance on third-party technology, platforms and licenses.
Legal, regulatory and general. The regulated industries and jurisdictions in which we operate; current or future laws or regulations and new interpretations of existing laws or regulations, including those applicable to digital assets, robotics, autonomous systems, consumer protection, advertising and endorsements; the risk that our marketplace arrangements, or the manner in which they are described, are characterized differently than we intend by regulators or courts; the failure of counterparties to perform their contractual obligations; litigation, regulatory inquiries, investigations and enforcement actions, and their costs and outcomes; business, economic, market and capital-market conditions; competition in our industry; changes in market demand for, and the pricing of, our products and services; our ability to define, design and release new products and services in a timely manner that meet customer needs; our ability to attract, retain and motivate qualified personnel, including key management; our ability to manage our growth and our transition; and our ability to maintain effective internal control over financial reporting and disclosure controls and procedures.
This list of factors is not exhaustive. Additional risks and uncertainties are described more fully in our filings with the U.S. Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the year ended December 31, 2025, our Quarterly Reports on Form 10-Q, and our subsequent filings, which are available on the SEC’s website at www.sec.gov. Investors are urged to review the liquidity, capital resources and going concern disclosures contained in those reports.
The forward-looking statements in this Communication speak only as of the date hereof. Except as required by law, neither FFR nor any other person undertakes any obligation to update or revise any forward-looking statement or financial projection set out herein, whether as a result of new information, future events or otherwise. This Communication is provided for informational purposes only, does not constitute an offer to sell or the solicitation of an offer to buy any security, and does not constitute investment, tax or legal advice or any investment recommendation, and does not take into account the investment objectives or financial situation of any person. FFR reserves the right to amend or replace the information contained herein, in whole or in part, at any time, and undertakes no obligation to notify any recipient thereof. Readers are cautioned not to place undue reliance on these forward-looking statements. This caution is made under, and these forward-looking statements are intended to be covered by, the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995.
FFAI FORWARD LOOKING STATEMENTS
Important factors that may affect actual results or outcomes include, among others: the Company’s ability to continue as a going concern and improve its liquidity and financial position; the Company’s ability to pay its outstanding obligations, which it currently lacks; the availability of sufficient share capital to meet its current obligations and execute on its strategy; the willingness of convertible debt investors to fund the Company; demand for the Company’s robotics products; competition in the robotics industry, which includes companies with far superior experience, funding and name recognition; the ability of the Company to build an EAI education ecosystem that serves both the B2C consumer market and the B2B institutional education market; the acceptance by teachers and students of the Company’s robotics products in the education market; the ability of the Company to expand into additional markets for its robotics products; the Company’s reliance on a single OEM for most of its robotics products; the Company’s reliance on Chinese OEMs for all of its robotics products; the possibility of the federal government banning imports of Chinese robotics products; the Company’s ability to get the planned robotics products to comply with all applicable U.S. rules and regulations; the ability of the robotics OEM to timely supply robotics to the Company; tariff uncertainty for imported products, particularly from China; the ability of the Company to close its transaction with FF EAI Robotics Ecosystem Inc. (FFR) for the sale of its robotics business; demand from automobile dealers for robotics products; the Company’s ability to homologate FX vehicles for sale; the Company’s ability to secure the necessary funding to execute on the FX strategy, which is substantial; the Company’s ability to secure an occupancy certificate covering all of its Hanford facility; the Company’s ability to remediate its material weaknesses in internal control over financial reporting and the risks related to the restatement of previously issued consolidated financial statements; the Company’s limited operating history and the significant barriers to growth it faces; the Company’s history of substantial losses and expectation of continued losses; the success of the Company’s payroll expense reduction plan; the Company’s ability to execute on its plans to develop and market its vehicles and the timing of these development programs; the Company’s ability to execute on its plans to enter the robotaxi and cybercab industries; the Company’s estimates of the size of the markets for its vehicles and cost to bring those vehicles to market; the rate and degree of market acceptance of the Company’s vehicles; the Company’s ability to cover future warranty claims; the success of other competing manufacturers; the performance and security of the Company’s vehicles; current and potential litigation involving the Company; the Company’s ability to receive funds from, satisfy the conditions precedent of and close on the various financings described elsewhere by the Company; the result of future financing efforts, the failure of any of which could result in the Company seeking protection under the Bankruptcy Code; the Company’s indebtedness; the Company’s ability to use its “at-the-market” program; insurance coverage; general economic and market conditions impacting demand for the Company’s products; potential negative impacts of a reverse stock split; potential cost, headcount and salary reduction actions may not be sufficient or may not achieve their expected results; circumstances outside of the Company’s control, such as natural disasters, climate change, health epidemics and pandemics, terrorist attacks, and civil unrest; risks related to the Company’s operations in China; the success of the Company’s remedial measures taken in response to the Special Committee findings; the Company’s dependence on its suppliers and contract manufacturer; the Company’s ability to develop and protect its technologies; the Company’s ability to protect against cybersecurity risks; and the ability of the Company to attract and retain employees, any adverse developments in existing legal proceedings or the initiation of new legal proceedings; the volatility of the Company’s stock price; the ability of the Company to maintain its stock price above $1.00; and the ability of the Company to maintain compliance with Nasdaq regulations for continued listing. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of the Company’s Form 10-Q for the quarter ended June 30, 2026, filed with the SEC on August 13, 2026; the quarter ended March 31, 2026, filed with the SEC on May 14, 2026; and Form 10-K filed with the SEC on March 31, 2026, and other documents filed by the Company from time to time with the SEC.
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SOURCE FF EAI Robotics Ecosystem Inc.
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