CloudFirst Divestiture and Transaction Proceeds
Sold CloudFirst for a total transaction value of $40.0 million, generating approximately $31.6 million in net proceeds and a recognized gain of $20.1 million (nonrecurring).
Significant Cash Balance Improvement
Company ended the period with approximately $41.0 million in cash, cash equivalents and marketable securities at December 31, 2025, up from $12.3 million a year earlier (approximately +233% year-over-year).
Large Shareholder Return via Tender Offer
Returned $29.3 million to shareholders through a tender offer at $5.20 per share, reducing outstanding share count by approximately 72%.
Reported Net Income Driven by Transaction
Reported net income attributable to common shareholders of $19.2 million for FY2025 versus $0.523 million for FY2024 (increase of ~+3,572%), driven primarily by the gain on discontinued operations.
Nexxis Revenue Growth and Margin Expansion
Continuing operations (Nexxis) generated $1.4 million in revenue for FY2025, a $164,000 increase or +13.4% year-over-year, with gross margins expanding to 44.4%.
Improved Customer Mix at Nexxis
Customer concentration reduced with no single customer accounting for more than 10% of Nexxis revenue, improving revenue quality and diversification.
Clean Balance Sheet and Strategic Repositioning
Entered 2026 debt-free with over $10 million in capital post-tender; company repositioned as a NASDAQ-listed acquisition platform focused on AI-enabled vertical SaaS, GPU infrastructure, cybersecurity/SOC services and recurring-revenue tech businesses.
Near-Term Cost Reduction Outlook
Management expects corporate overhead and professional fees to decline in 2026 due to the CloudFirst divestiture and fewer employees retained, and anticipates lower legal and accounting costs.
Planned Modest Run-Rate
Management estimates a 2026 cash 'burn' (operating cost as a public company) of roughly $2.0 million for the year, reflecting a modest ongoing operating funding requirement.