American Aires (WIFI) AI Stock Analysis

• Market Cap: C$4.18M
• Dividend Yield: N/A
• Average Volume (3M): 69.82K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.34
• Revenue Growth: 190.53%
• EPS Growth: -9.41%
• Country: CA
• Employees: 3
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.02
• Shares Outstanding: 104,607,000
• 10 Day Avg. Volume: 94,001
• 30 Day Avg. Volume: 69,820
• PEG Ratio: 0.05
• Price to Book (P/B): 154.79
• Price to Sales (P/S): 1.16
• P/FCF Ratio: -2.33
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: C$0.04 ▼(-52.50% Downside)

The score is primarily weighed down by weak financial performance (persistent losses, negative equity, and continued cash burn). Technicals also point to a weak longer-term downtrend with negative momentum signals, while valuation is limited by negative earnings and the absence of a dividend.

Positive Factors

Revenue Momentum

Consistent TTM revenue growth indicates expanding product traction and market acceptance of EMF-protection offerings. A multi-year step-up in revenue suggests the company can scale demand through its channels, providing a durable foundation for margin leverage if cost structure is controlled.

High Gross Margin

A roughly 65% gross margin reflects strong product economics for hardware/accessory sales, enabling potential reinvestment in marketing and product development. High gross margins create structural room to absorb SG&A and support profitable scaling once fixed costs are better managed.

Direct-to-Consumer Product Model

A DTC branded hardware model provides control over pricing, customer relationships, and data, which supports repeat sales and marketing efficiency over time. This asset-light, product-focused approach can be scaled without large retail footprint, preserving margin upside if customer acquisition is efficient.

Negative Factors

Structural Unprofitability

Persistently negative operating and net margins point to a structural gap between current revenue and the cost base. Without sustained margin improvement or meaningful operating leverage, continued losses will impair ability to reach self-sustaining profitability and increase reliance on outside capital.

Negative Shareholders' Equity

A materially negative equity base constrains financing flexibility and raises insolvency risk in downside scenarios. This structural capital shortfall can force dilutive equity raises or expensive debt, limiting strategic options and making long-term investment planning more difficult for management.

Material Cash Burn

Sustained negative operating and free cash flow, with FCF contracting sharply versus prior periods, signals ongoing cash consumption that requires external funding. Persistent burn undermines runway, elevates refinancing and execution risk, and can divert management focus toward funding instead of growth.

American Aires Business Overview & Revenue Model

Company Description

American Aires (WIFI) is a technology company operating in the telecommunications sector. The company focuses on providing innovative solutions for wireless connectivity, catering to both individual consumers and businesses. American Aires is known for delivering high-quality Wi-Fi services and products, aimed at enhancing internet accessibility and improving wireless communication experiences.

How the Company Makes Money

American Aires makes money primarily through the sale of its Wi-Fi products and services. The company's revenue streams include subscription fees from consumers and businesses for access to their wireless services. Additionally, American Aires partners with various technology and telecommunications companies to expand its reach and enhance its service offerings, contributing to its earnings. These partnerships often involve revenue-sharing agreements that further boost the company's income.

American Aires Financial Statement Overview

Summary

American Aires shows revenue growth but struggles with profitability and cash flow. High leverage and negative equity are significant risks, though liquidity is managed through financing.

Income Statement

American Aires has shown a positive revenue growth trajectory in the most recent year; however, this growth has not translated into profitability. The company continues to report negative EBIT and net income, leading to negative net profit margins. The gross profit margin is reasonable, but the high operating expenses relative to revenue are a concern.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio due to low stockholders' equity, indicating potential solvency concerns. The equity ratio is low, suggesting that the company relies heavily on debt for financing. Despite this, the recent reduction in net debt is a positive sign.

Cash Flow

The cash flow statement shows negative operating and free cash flow, which raises concerns about the company’s ability to generate cash internally. However, the company has managed to maintain cash flow through substantial financing activities. The operating cash flow to net income ratio is unfavorable, suggesting issues in converting earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.37M	18.04M	5.50M	5.82M	2.55M	2.31M
Gross Profit	17.83M	11.27M	2.29M	3.54M	985.41K	701.70K
EBITDA	-8.98M	-8.02M	-3.99M	-2.92M	-5.86M	-7.41M
Net Income	-9.49M	-8.41M	-4.75M	-3.91M	-6.09M	-7.60M
Balance Sheet
Total Assets	3.30M	6.03M	349.46K	1.52M	2.27M	2.12M
Cash, Cash Equivalents and Short-Term Investments	228.73K	1.52M	29.37K	196.10K	275.70K	501.88K
Total Debt	1.75M	755.26K	347.29K	1.78M	763.04K	40.00K
Total Liabilities	8.87M	5.90M	2.44M	3.92M	1.42M	735.87K
Stockholders Equity	-5.56M	134.97K	-2.10M	-2.40M	848.35K	1.39M
Cash Flow
Free Cash Flow	-2.77M	-8.97M	-820.54K	29.90K	-3.04M	-3.99M
Operating Cash Flow	-2.77M	-8.96M	-820.54K	50.34K	-3.03M	-3.99M
Investing Cash Flow	-5.70K	-8.20K	0.00	-19.32K	-12.74K	14.00K
Financing Cash Flow	775.97K	10.20M	653.80K	-110.62K	2.82M	1.28M

American Aires Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:WIFI, the sentiment is Neutral. The current price of 0.08 is above the 20-day moving average (MA) of 0.04, above the 50-day MA of 0.05, and below the 200-day MA of 0.12, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.26 is Neutral, neither overbought nor oversold. The STOCH value of 88.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:WIFI.

American Aires Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZTE	76 Outperform	C$11.45M	11.40	18.01%	―	-17.91%	-54.21%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
HEAT	49 Neutral	C$16.55M	-2.62	―	―	―	40.24%
EDY	43 Neutral	C$10.11M	-3.65	―	―	26.56%	94.17%
WIFI	41 Neutral	C$4.18M	-0.39	―	―	190.53%	-9.41%
NXO	22 Underperform	C$1.95M	-5.00	―	―	―	―

American Aires Corporate Events

American Aires Inc. Achieves Record Q3 Revenue Amidst Strategic Marketing Investments

American Aires Inc. reported a record Q3 2025 revenue of $7.4 million, marking a 61% year-over-year sales growth, driven by increased spending on social media and affiliate relationships. Despite the revenue growth, the company faced an adjusted EBITDA loss of $1.46 million, attributed to higher advertising and marketing expenses. The company aims to preserve cash and stabilize operations amidst liquidity challenges that could impact future sales and operations. The increase in gross profit and margin was achieved through strategic cost reductions, while marketing partnerships with major sports organizations have bolstered sales momentum.