Technology
First International Bank of Israel Reports Financial Results for the Third Quarter of 2024
Published
2 years agoon
By
Reflects continued growth and high profitability while maintaining financial stability
TEL AVIV, Israel, Nov. 25, 2024 /PRNewswire/ — First International Bank of Israel (TASE: FIBI) one of Israel’s major banking groups, today announced its results for the third quarter and nine-month period ended September 30, 2024.
Financial Highlights
Financial Highlights for the Third Quarter of 2024
Net income of NIS 620 million and a return on equity of 19.4% in the third quarter of 2024;Net income of NIS 1,798 million and a return on equity of 19.4% for the first nine months of the year;Credit to the public grew by 6% compared to the end of 2023 and by 3.5% compared to the second quarter of the year;Deposits by the public grew by 11.4% compared to the end of 2023, and by 4.3% compared to the second quarter of the year;The portfolio of customers’ assets grew by 19% compared to the end of 2023, and reached NIS 800 billion;Equity attributed to the Bank’s shareholders was NIS 13 billion, an increase of 8.2% compared to the end of 2023;The tier 1 capital ratio was 11.41%;The Bank’s Board of Directors decided to distribute a dividend in the amount of NIS 248 million, representing 40% of the net income.
Financial Results of the Third Quarter 2024
Net profit for the First International Bank Group was NIS 620 million in the third quarter of 2024, an increase of 36.3 % compared to the comparative quarter in the previous year. Return on equity was 19.4%.
The net profit for the first nine months of the year was NIS 1,798 million, an increase of 7.5% compared to the comparative period in the previous year. The return on equity was 19.4%.
Expense for credit losses was NIS 22 million in the third quarter, amounting to 0.07% of the average balance of credit to the public. Income for credit losses amounted to NIS 51 million in the first nine months of the year, primarily from debt recovery. In the corresponding period of last year, expenses of NIS 336 million were recorded which was due to an increase in collective provisions because of concerns over macroeconomic impacts, amid uncertainty.
High-quality credit portfolio: the NPL (non-performing loan) ratio remained stable and reached 0.57% at the end of the third quarter. This reflects the quality of the credit portfolio, (the balance of debts not accruing or overdue by 90 days or more out of the total credit to the public). The total coverage ratio (the ratio of the total credit loss provisions to the total credit to the public) stood at 1.41%, compared to 1.37% in the comparative period last year.
The operating and other expenses were NIS 2,240 million in the first nine months of the year, an increase of 2% compared to the comparative period in the previous year, mainly due to an increase in other expenses: IT-related, donations, telecommunications and advertising. The efficiency ratio stood at 44.5%.
Credit to the public amounted to NIS 126.4 billion, an increase of 6% compared to the end of 2023. There was an increase in the credit of 3.5% in the third quarter, compared to the second quarter of the year.
Deposits by the public amounted to NIS 213 billion, an increase of 11.4% compared to the end of 2023, and 4.3% compared to the second quarter.
The total customers’ assets portfolio increased by 26% year-over-year and by 19% compared to the end of 2023, to approximately 800 billion.
Equity attributed to shareholders in the Bank increased to NIS 13 billion, an increase of 8.2% compared to the end of 2023. The tier 1 capital ratio reached 11.41%, approximately -2.2% above the regulatory requirement, reflecting the highest capital surplus in the Israeli banking system. The liquidity coverage ratio is high and stands at 171%.
Considering the requests of the Banking Supervisor regarding capital planning and profits distribution policies, the Bank’s Board of Directors decided to approve the distribution of a cash dividend to the shareholders for NIS 248 million representing 40% of the net income. The Bank’s Board of Directors will continue to review the implementation of the Bank’s dividend distribution policy in light of ongoing developments and their impact on the Israeli economy and on the Bank.
Management Comment
Eli Cohen, CEO of First International Bank, commented: ,”The Bank’s reports reflect a growth trend both on the passive side, including deposits and securities of the public, which reached a record NIS 800 billion, and also on the active side, with a considerable increase in the credit portfolio, which has been achieved while maintaining the quality of the underwriting and portfolio diversification.
“Amid economic uncertainty and the ongoing multi-front war in Israel, the First International Bank maintained high capital and liquidity cushions, ensuring resilience and our ability to continue supporting our customers. The Bank is continuing to provide benefits and relief measures for customers to help them navigate the current challenging period.
“I am proud to say that the First International Bank’s customers are the most satisfied among bank customers in Israel, reporting high satisfaction with the Bank, the professionalism of its services and their willingness to recommend the bank to their friends. This is evidenced via customer surveys, including the recent Marketest survey. This reflects the high quality service and competitiveness of the First International Bank, as well as the professionalism and the dedication of our Group’s employees, all of whom have contributed to the achievement.
“We recently announced a number of management changes at the Bank: Vered Golan was appointed to the position of Head of the Corporate Division, Dr. Moriah Hoftman-Doron was appointed to the position of Chief Legal Counsel, and Liora Shechter was appointed CEO of Mataf. I wish considerable success to the new members of our management team.”
CONDENSED PRINCIPAL FINANCIAL INFORMATION AND PRINCIPAL EXECUTION INDICES
Principal financial ratios
For the nine months
ended September 30,
For the year ended
December 31,
2024
2023
2023
in %
Principal execution indices
Return on equity attributed to shareholders of the Bank(1)
19.4
20.5
19.7
Return on average assets(1)
1.05
1.10
1.06
Ratio of equity capital tier 1
11.41
10.84
11.35
Leverage ratio
5.17
5.30
5.26
Liquidity coverage ratio
171
142
156
Net stable funding ratio
142
138
146
Ratio of total income to average assets(1)
2.9
3.3
3.2
Ratio of interest income, net to average assets (1)
2.1
2.5
2.4
Ratio of fees to average assets (1)
0.7
0.7
0.7
Efficiency ratio
44.5
43.6
43.5
Credit quality indices
Ratio of provision for credit losses to credit to the public
1.29
1.25
1.36
Ratio of total provision for credit losses (2) to credit to the public
1.41
1.37
1.50
Ratio of non-accruing debts or in arrears of 90 days or more to credit to the public
0.57
0.49
0.60
Ratio of provision for credit losses to total non-accruing credit to the public
230.5
263.8
234.5
Ratio of net write-offs to average total credit to the public (1)
(0.06)
–
0.03
Ratio of expenses (income) for credit losses to average total credit to the public (1)
(0.06)
0.38
0.42
Principal data from the statement of income
For the nine months
ended September 30,
2024
2023
NIS million
Net profit attributed to shareholders of the Bank
1,798
1,673
Interest Income, net
3,601
3,820
Expenses (income) from credit losses
(51)
336
Total non-Interest income
1,436
1,216
Of which: Fees
1,123
1,131
Total operating and other expenses
2,240
2,197
Of which: Salaries and related expenses
1,302
1,353
Primary net profit per share of NIS 0.05 par value (NIS)
17.92
16.67
Principal data from the balance sheet
30.9.24
30.9.23
31.12.23
NIS million
Total assets
242,512
210,673
221,593
of which: Cash and deposits with banks
81,440
61,659
68,866
Securities
28,860
22,043
26,985
Credit to the public, net
124,749
118,577
117,622
Total liabilities
228,823
198,542
208,947
of which: Deposits from the public
212,907
181,274
191,125
Deposits from banks
2,631
3,824
4,314
Bonds and subordinated capital notes
4,474
4,751
4,767
Capital attributed to the shareholders of the Bank
13,066
11,583
12,071
Additional data
30.9.24
30.9.23
31.12.23
Share price (0.01 NIS)
15,410
16,360
14,990
Dividend per share (0.01 NIS)
739
706
795
(1) Annualized.
(2) Including provision in respect of off-balance sheet credit instruments.
CONSOLIDATED STATEMENT OF INCOME
(NIS million)
For the three months
ended September 30
For the nine months
ended September 30
For the year Ended
December 31
2024
2023
2024
2023
2023
(unaudited)
(unaudited)
(unaudited)
(unaudited)
(audited)
Interest Income
2,955
2,590
8,410
7,289
9,850
Interest Expenses
1,690
1,363
4,809
3,469
4,884
Interest Income, net
1,265
1,227
3,601
3,820
4,966
Expenses (income) from credit losses
22
165
(51)
336
502
Net Interest Income after expenses from credit losses
1,243
1,062
3,652
3,484
4,464
Non- Interest Income
Non-Interest Financing income
153
(1)
300
78
142
Fees
396
375
1,123
1,131
1,502
Other income
3
–
13
7
8
Total non- Interest income
552
374
1,436
1,216
1,652
Operating and other expenses
Salaries and related expenses
430
438
1,302
1,353
1,746
Maintenance and depreciation of premises and equipment
91
89
264
256
341
Amortizations and impairment of intangible assets
36
31
99
91
122
Other expenses
220
175
575
497
668
Total operating and other expenses
777
733
2,240
2,197
2,877
Profit before taxes
1,018
703
2,848
2,503
3,239
Provision for taxes on profit
390
247
1,033
869
1,090
Profit after taxes
628
456
1,815
1,634
2,149
The bank’s share in profit of equity-basis investee, after taxes
22
21
62
105
113
Net profit:
Before attribution to non‑controlling interests
650
477
1,877
1,739
2,262
Attributed to non‑controlling interests
(30)
(22)
(79)
(66)
(90)
Attributed to shareholders of the Bank
620
455
1,798
1,673
2,172
NIS
Primary profit per share attributed to the shareholders of the Bank
Net profit per share of NIS 0.05 par value
6.18
4.53
17.92
16.67
21.65
STATEMENT OF COMPREHENSIVE INCOME
(NIS million)
For the three months
ended September 30
For the nine months
ended September 30
For the year Ended
December 31
2024
2023
2024
2023
2023
(unaudited)
(unaudited)
(unaudited)
(unaudited)
(audited)
Net profit before attribution to non‑controlling interests
650
477
1,877
1,739
2,262
Net profit attributed to non‑controlling interests
(30)
(22)
(79)
(66)
(90)
Net profit attributed to the shareholders of the Bank
620
455
1,798
1,673
2,172
Other comprehensive income (loss) before taxes:
Adjustments of available for sale bonds to fair value, net
129
52
(115)
78
213
Adjustments of liabilities in respect of employee benefits(1)
(2)
34
10
37
25
Other comprehensive income (loss) before taxes
127
86
(105)
115
238
Related tax effect
(49)
(29)
41
(40)
(81)
Other comprehensive income (loss) before attribution to non‑controlling interests, after taxes
78
57
(64)
75
157
Less other comprehensive income (loss) attributed to non‑controlling interests
3
1
(2)
6
9
Other comprehensive income (loss) attributed to the shareholders of the Bank, after taxes
75
56
(62)
69
148
Comprehensive income before attribution to non‑controlling interests
728
534
1,813
1,814
2,419
Comprehensive income attributed to non‑controlling interests
(33)
(23)
(77)
(72)
(99)
Comprehensive income attributed to the shareholders of the Bank
695
511
1,736
1,742
2,320
(1) Mostly reflects adjustments in respect of actuarial assessments as of the end of the period regarding defined benefits pension plans and deduction of amounts recorded in the past in other comprehensive income.
CONSOLIDATED BALANCE SHEET
(NIS million)
September 30,
December 31,
2024
2023
2023
(unaudited)
(unaudited)
(audited)
Assets
Cash and deposits with banks
81,440
61,659
68,866
Securities
28,860
22,043
26,985
Securities borrowed
147
155
57
Credit to the public
126,374
120,073
119,240
Provision for Credit losses
(1,625)
(1,496)
(1,618)
Credit to the public, net
124,749
118,577
117,622
Credit to the government
1,611
1,015
1,055
Investment in investee company
854
776
786
Buildings and equipment
852
871
877
Intangible assets
350
305
328
Assets in respect of derivative instruments
2,308
3,940
3,651
Other assets(2)
1,341
1,332
1,366
Total assets
242,512
210,673
221,593
Liabilities and Capital
Deposits from the public
212,907
181,274
191,125
Deposits from banks
2,631
3,824
4,314
Deposits from the Government
689
665
750
Securities lent or sold under agreements to repurchase
1,542
–
–
Bonds and subordinated capital notes
4,474
4,751
4,767
Liabilities in respect of derivative instruments
2,086
3,496
3,784
Other liabilities(1)(3)
4,494
4,532
4,207
Total liabilities
228,823
198,542
208,947
Shareholders’ equity
13,066
11,583
12,071
Non-controlling interests
623
548
575
Total capital
13,689
12,131
12,646
Total liabilities and capital
242,512
210,673
221,593
(1) Of which: provision for credit losses in respect of off-balance sheet credit instruments in the amount of NIS 160 million and NIS 150 million and NIS 165 million at 30.9.24, 30.9.23 and 31.12.23, respectively.
(2) Of which: other assets measured at fair value in the amount of NIS 16 million and NIS 13 million and NIS 10 million at 30.9.24, 30.9.23 and 31.12.23, respectively.
(3) Of which: other liabilities measured at fair value in the amount of NIS 48 million and NIS 26 million and NIS 11 million at 30.9.24, 30.9.23 and 31.12.23, respectively.
STATEMENT OF CHANGES IN EQUITY
(NIS million)
For the three months ended September 30, 2024 (unaudited)
Share
capital and
premium (1)
Accumulated
other
comprehensive
income (loss)
Retained
earnings (2)
Total
share-holders’
equity
Non-
controlling
interests
Total
capital
Balance as of June 30, 2024
927
(292)
11,980
12,615
590
13,205
Net profit for the period
–
–
620
620
30
650
Dividend
–
–
(244)
(244)
–
(244)
Other comprehensive income, after tax effect
–
75
–
75
3
78
Balance as at September 30, 2024
927
(217)
12,356
13,066
623
13,689
For the three months ended September 30, 2023 (unaudited)
Share
capital and
premium (1)
Accumulated
other
comprehensive
income (loss)
Retained
earnings (2)
Total
share-holders’
equity
Non-
controlling
interests
Total
capital
Balance as of June 30, 2023
927
(290)
10,655
11,292
525
11,817
Net profit for the period
–
–
455
455
22
477
Dividend
–
–
(220)
(220)
–
(220)
Other comprehensive income, after tax effect
–
56
–
56
1
57
Balance as at September 30, 2023
927
(234)
10,890
11,583
548
12,131
For the nine months ended September 30, 2024 (unaudited)
Share
capital and
premium (1)
Accumulated
other
comprehensive
loss
Retained
earnings (2)
Total
share-holders’
equity
Non-
controlling
interests
Total
capital
Balance as at December 31, 2023 (audited)
927
(155)
11,299
12,071
575
12,646
Net profit for the period
–
–
1,798
1,798
79
1,877
Dividend
–
–
(741)
(741)
(29)
(770)
Other comprehensive loss, after tax effect
–
(62)
–
(62)
(2)
(64)
Balance as at September 30, 2024
927
(217)
12,356
13,066
623
13,689
For the nine months ended September 30, 2023 (unaudited)
Share
capital and
premium (1)
Accumulated
other
comprehensive
income (loss)
Retained
earnings (2)
Total
share-holders’
equity
Non-
controlling
interests
Total
capital
Balance as at December 31, 2022 (audited)
927
(303)
9,935
10,559
476
11,035
Adjustment of the opening balance, net of tax, due to the effect of initial implementation in investee company*
–
–
(10)
(10)
–
(10)
Adjusted balance at January 1, 2023, following initial implementation
927
(303)
9,925
10,549
476
11,025
Net profit for the period
–
–
1,673
1,673
66
1,739
Dividend
–
–
(708)
(708)
–
(708)
Other comprehensive income, after tax effect
–
69
–
69
6
75
Balance as at September 30, 2023
927
(234)
10,890
11,583
548
12,131
STATEMENT OF CHANGES IN EQUITY (CONT’D)
(NIS million)
For the year ended December 31, 2023 (audited)
Share
capital and
premium(1)
Accumulated
other
comprehensive
income (loss)
Retained
earnings(2)
Total
Non-
controlling
interests
Total
capital
Balance as at December 31, 2022
927
(303)
9,935
10,559
476
11,035
Adjustment of the opening balance, net of tax, due to the effect of initial implementation in investee company *
–
–
(10)
(10)
–
(10)
Adjusted balance at January 1, 2023, following initial implementation
927
(303)
9,925
10,549
476
11,025
Net profit for the year
–
–
2,172
2,172
90
2,262
Dividend
–
–
(798)
(798)
–
(798)
Other comprehensive income, after tax effect
–
148
–
148
9
157
Balance as at December 31, 2023
927
(155)
11,299
12,071
575
12,646
* Cumulative effect of the initial implementation of US accounting principles in the matter of financial instruments – credit losses (ASC-326).
(1) Including share premium of NIS 313 million (as from 1992 onwards).
(2) Including an amount of NIS 2,391 million which cannot be distributed as dividend.
Contact:
Dafna Zucker
First International Bank of Israel
Zucker.d@fibi.co.il
+972-3-519-6224
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SOURCE First International Bank of Israel
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For individual investors, FollowSmart provides a digital platform for exploring professionally managed investment strategies. Available strategies span different asset classes, global markets and risk profiles. Users can review information such as investment philosophy, historical performance and the credentials of the management team, and monitor their portfolios over time. These features may help investors assess which available strategies are relevant to their own objectives and circumstances.
The PIVOT- GlobalSave Portfolios Balanced Strategy
uSMART is acting as an authorized distributor of the PIVOT- GlobalSave Portfolios Balanced Strategy, which is managed by MAS-regulated PIVOT Fintech. The investment team is led by Victor Lye. The strategy uses a quantitative investment approach informed by Modern Portfolio Theory (MPT). It invests in U.S.-listed ETFs across equities, fixed income, commodities and real estate to build globally diversified portfolios. Asset allocation weights are adjusted in response to macroeconomic trends, with the objective of balancing expected returns and risk for medium- to long-term investors.
Expanding the FollowSmart Ecosystem
The addition of PIVOT Fintech is part of uSMART’s ongoing development of the FollowSmart platform and its network of investment managers. Other strategies recently added to the platform include the Global Quantitative Core Growth Strategy by Sunova Capital Management and the JMC Absolute Return Strategy by JMC Capital Asset Management. Together, these offerings provide investors with access to a range of professionally managed investment approaches.
About uSMART Securities (Singapore) Pte Ltd – uSMART Securities (Singapore) Pte Ltd, established on March 22, 2021, is the Singapore entity under uSMART Group (uSmart Holding Ltd.). The company holds a Capital Markets Services (CMS) Licence (Licence No. CMS101161) regulated by the Monetary Authority of Singapore (MAS). Based in Singapore, it provides financial services through the uSMART platform. Its products include US, Hong Kong, Singapore, Japan and UK stocks, options, futures, ETFs, funds, Contracts for Difference (CFDs) and forex products. Its services include trading tools, client account services, risk management arrangements and segregated client fund accounts.
About PIVOT Fintech – PIVOT Fintech Pte. Ltd. (UEN 201716150D) holds a Capital Markets Services Licence (CMS100806) regulated by the Monetary Authority of Singapore and serves as the Investment Manager of the Strategy. PIVOT’s investment team is led by its founder, Victor Lye, who has over 35 years of senior leadership experience across wealth management, insurance, fintech, and artificial intelligence. He holds a First-Class Honours Degree in Economics and Accounting from the University of Adelaide and is a Chartered Financial Analyst (CFA) and Certified Financial Planner (CFP).
Risk Disclaimer – Investment involves risks. Past performance is not indicative of future performance. Investors should carefully consider their investment objectives, financial situation and risk tolerance before making any investment decision. This material is provided for information and reference purposes only and does not constitute an offer, solicitation, recommendation or investment advice. This advertisement has not been reviewed by the Monetary Authority of Singapore.
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SOURCE uSMART Securities (Singapore) Pte Ltd
Technology
FFR to Hold Listing Ceremony and Investor Day on October 26; FFAI Announces Rescheduling of YT Jia’s Investor Weekly Report to October 26
Published
20 minutes agoon
October 26, 2026By
Faraday Future announced that this week’s Investor Weekly Report from FF Founder and Global CEO YT Jia has been rescheduled to October 26.FF EAI Robotics Ecosystem Inc. (NASDAQ: FFR) will hold its Listing Ceremony and Investor Day on October 26.FFR management will outline the company’s future strategic direction and business plans and engage with investors in attendance.The full event video will be available at 5:00 p.m. ET on October 26 at: https://www.ff.com/us/
LOS ANGELES, Oct. 25, 2026 /PRNewswire/ — FF EAI Robotics Ecosystem Inc. (NASDAQ: FFR) (“FFR” or the “Company”), a U.S.-listed Embodied AI (“EAI“) robotics ecosystem company, today highlighted an update from Faraday Future Intelligent Electric Inc. (NASDAQ: FFAI) (“Faraday Future” or “FF“) that this week’s Investor Weekly Report from FF Founder and Global CEO YT Jia has been rescheduled to October 26.
FF EAI Robotics Ecosystem Inc. (NASDAQ: FFR) will hold its Listing Ceremony and Investor Day on October 26, 2026. During the event, FFR management will outline the company’s future strategic direction and business plans and engage with investors in attendance.
The full event video will be available at 5:00 p.m. ET on October 26 at: https://www.ff.com/us/
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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