ALT5 Sigma Corporation, formerly known as JanOne Inc., reported significant financial developments in its latest 10-Q filing for the period ending September 28, 2024. The company, which operates in the Biotechnology and Fintech sectors, experienced a notable increase in total assets, rising to approximately $74.9 million from $18.5 million at the end of the previous fiscal year. This growth was primarily driven by the acquisition of ALT5 Subsidiary in May 2024, which contributed to a substantial increase in cash and cash equivalents, climbing to $8.7 million from just $5,000.

For the thirteen weeks ended September 28, 2024, ALT5 Sigma reported revenues of $4.9 million, a significant increase from $0 in the same period the previous year. The gross profit for this quarter was $2.4 million, reflecting a gross profit margin of 47.8%. However, the company reported an operating loss of $1.2 million for the quarter, compared to a loss of $764,000 in the prior year. Selling, general, and administrative expenses surged to $3.6 million, up from $764,000, largely due to the integration of ALT5 Subsidiary and an allowance against a receivable from SPYR Technologies.

For the thirty-nine weeks ended September 28, 2024, total revenues reached $7.1 million, an increase of approximately $3.3 million compared to $3.8 million in the same period last year. However, the company reported a net loss of $2.4 million, a stark contrast to a net income of $10 million in the previous year. This decline was attributed to increased operational costs and the impact of the acquisition.

The company’s total liabilities increased significantly to $50.8 million from $7.3 million, while total stockholders' equity improved to $20.2 million from a deficit of $3.3 million. The acquisition of ALT5 Subsidiary involved issuing 1.8 million shares of common stock and 34,207 shares of Series B Preferred Stock, valued at $16 million.

In terms of operational segments, the Fintech segment generated all revenues, while the Biotechnology segment reported no revenue and incurred an operating loss of $1.6 million. The company also noted that it has a net negative working capital of approximately $10.4 million as of September 28, 2024.

Management identified material weaknesses in internal controls over financial reporting, which they are currently addressing. The company plans to raise additional funds to support future development initiatives, particularly for its biotechnology products.