AI Financial Corporation, a Nasdaq-listed fintech firm holding World Liberty Financial (WLFI) tokens on its balance sheet, flagged substantial doubt about its ability to continue as a going concern over the next 12 months after posting a $271 million net loss in the first quarter of 2026.
The company also reported a $5.5 million working capital deficit, with current liabilities of $39.1 million exceeding current assets of $32.2 million. Cash on hand rose to $10.5 million from over $6 million after a $15 million drawdown in January 2026 under a loan agreement with WLFI at a 4.5% annual rate.
The massive quarterly loss was largely driven by an unrealized write-down on the company’s 7.3 billion WLFI tokens, which were carried at roughly $703 million on its balance sheet.
Due to strict contractual lock-up provisions, AI Financial cannot sell these tokens. Management flagged the token stash as its primary lifeline while simultaneously warning there is no guarantee the assets can be monetized at current values or at all.
The company, formerly known as ALT5 Sigma Corporation, launched a WLFI treasury program in August 2025 and bought the tokens at an average price of around $0.2 per token. As the token plunged sharply, it suffered around $348 million in unrealized losses on its holdings as of March 28.
