Alset AI Ventures Reports Fiscal Q3 2026 Results, Including $4.1 Million Unrealized, Non-Cash Investment Gain
Rhea-AI Summary
Alset AI Ventures (TSXV:GPUS, OTCQB:GPUSF) reported unaudited Fiscal Q3 2026 results for the quarter ended June 30, 2026, driven by a non-cash revaluation of its Lyken.AI investment. Income and comprehensive income were $3.61 million, or $0.20 basic EPS, versus a loss of $4.29 million, or $(0.29) per share, a year earlier. Net investment gain was $4.11 million, almost entirely from a $4.14 million unrealized increase in Lyken.AI’s carrying value, while general expenses fell 59.6% to $0.53 million.
Total assets rose 82.7% to $9.44 million since September 30, 2025, and the investment portfolio increased to $8.82 million, with Lyken.AI representing about 78.6%. Shareholders’ equity grew 67.9% to $7.37 million. For the nine months, Alset recorded income of $1.03 million versus a $6.09 million loss in the prior-year period. During Q3, Alset also acquired a $1.31 million Chaco Minerals 3.0% convertible debenture by extinguishing $1.30 million of loans receivable from Lyken.AI, with no cash received.
Positive
- Q3 net income $3.61 million vs. $4.29 million loss prior year
- Net investment gain $4.11 million in Q3 vs. $2.91 million loss
- General expenses down 59.6% to $526,405 in Q3 2026
- Total assets up 82.7% to $9,439,171 since September 30, 2025
- Investment portfolio up 164.8% to $8,824,551 since fiscal year-end
- Nine‑month income $1.03 million vs. $6.09 million loss prior period
Negative
- Q3 $4.11 million investment gain is unrealized and non-cash
- Lyken.AI valuation $6.94 million based on minority, post-period transaction
- Lyken.AI represents 78.6% of portfolio carrying value, concentration risk
- Chaco debenture assignment generated no cash to the company
- FingerMotion share consideration is restricted, unregistered with six-month hold
AI-generated analysis. How Rhea-AI works. Not financial advice.
Non-cash revaluation of Lyken.AI drives
VANCOUVER, BC / ACCESS Newswire / August 31, 2026 / Alset AI Ventures Inc. (TSXV:GPUS)(OTCQB:GPUSF)(FSE:1R61, WKN:A40M0J) ("Alset AI", "Alset" or the "Company"), an investment issuer focused on the technology industry, including artificial intelligence ("AI"), is pleased to report its unaudited financial results for the three and nine months ended June 30, 2026 ("Fiscal Q3 2026"). All amounts in this release are expressed in Canadian dollars unless otherwise indicated. The condensed interim financial statements were prepared by management in accordance with IFRS applicable to interim financial reporting and have not been reviewed by the Company's auditor.
Alset reported income and comprehensive income of
"Fiscal Q3 reflects the value creation achieved within our investment portfolio, particularly at Lyken.AI," said Adam Ingrao, Chief Executive Officer of Alset AI. "The increase in Lyken.AI's carrying value was derived from pricing established through a third-party transaction with FingerMotion that subsequently closed after quarter-end. Together with lower quarterly general expenses, the portfolio revaluation contributed to
Fiscal Q3 2026 Financial Highlights
Income and comprehensive income was
$3.61 million , or$0.20 per basic share and$0.19 per diluted share, compared with a loss and comprehensive loss of$4.29 million , or$0.29 per basic and diluted share, in Fiscal Q3 2025.Net investment gain was
$4.11 million , compared with a net investment loss of$2.91 million in the comparative quarter. This gain is unrealized and non-cash, and generated no cash proceeds to the Company. The net change in unrealized gains on investments was$4.14 million , driven almost entirely by a$4.14 million unrealized, non-cash increase in the carrying value of the Company's investment in Lyken.AI, based on pricing from a third-party transaction that closed after quarter-end. The carrying value is based on unaudited management estimates and has not been reviewed or confirmed by the Company's auditors. There is no assurance that the Company will be able to realize on its investment at the carrying value, or at all, and the amount ultimately realized may be materially less than the carrying value.General expenses decreased
59.6% to$526,405 from$1,301,831 , reflecting lower consulting and management fees, investor relations and marketing costs, office costs and professional fees, partly offset by share-based payments.During the quarter, the Company acquired a
$1.31 million Chaco Minerals convertible debenture in exchange for$1.30 million of loans receivable from Lyken.AI; no cash was received.
| Three months ended |
|
| Three months ended |
|
| Nine months ended |
|
| Nine months ended |
| |||||
Net change in unrealized gain (loss) on investments |
| $ | 4,137,223 |
|
| $ | (2,841,825 | ) |
| $ | 4,175,590 |
|
| $ | (2,920,630 | ) |
Net investment gain (loss) |
| $ | 4,109,577 |
|
| $ | (2,909,731 | ) |
| $ | 4,110,342 |
|
| $ | (2,611,489 | ) |
General expenses |
| $ | 526,405 |
|
| $ | 1,301,831 |
|
| $ | 3,149,995 |
|
| $ | 3,588,982 |
|
Income (loss) and comprehensive income (loss) |
| $ | 3,606,599 |
|
| $ | (4,288,289 | ) |
| $ | 1,032,184 |
|
| $ | (6,093,699 | ) |
Basic income (loss) per share |
| $ | 0.20 |
|
| $ | (0.29 | ) |
| $ | 0.06 |
|
| $ | (0.49 | ) |
Diluted income (loss) per share |
| $ | 0.19 |
|
| $ | (0.29 | ) |
| $ | 0.06 |
|
| $ | (0.49 | ) |
Portfolio and Balance Sheet Highlights
As at June 30, 2026, total assets were
| June 30, 2026 |
|
| September 30, 2025 |
|
| Change |
| ||||
Total assets |
| $ | 9,439,171 |
|
| $ | 5,166,462 |
|
|
| +82.7 | % |
Investment portfolio |
| $ | 8,824,551 |
|
| $ | 3,333,048 |
|
|
| +164.8 | % |
Investment in Lyken.AI |
| $ | 6,936,417 |
|
| $ | 2,800,000 |
|
|
| +147.7 | % |
Investment in Chaco |
| $ | 1,306,888 |
|
|
| - |
|
|
| +100.0 | % |
Shareholders' equity |
| $ | 7,365,273 |
|
| $ | 4,386,328 |
|
|
| +67.9 | % |
Nine-Month Results
For the nine months ended June 30, 2026, Alset recorded income and comprehensive income of
Chaco Debenture Investment
As previously announced on May 6, 2026, the Company entered into an assignment and assumption agreement with Lyken.AI under which it acquired a
As at June 30, 2026, the Company evaluated the fair value of the Chaco debenture to be
Lyken.AI Valuation
The Company evaluated the fair value of its investment in Lyken.AI at June 30, 2026 at
These inputs were observed after the June 30, 2026 measurement date. The valuation of the Company's entire interest in Lyken.AI is derived from a transaction involving a
Financial Statements and MD&A
This release is a summary only. The Company's unaudited condensed interim financial statements and related MD&A for the three and nine months ended June 30, 2026 contain additional information, including detailed valuation, liquidity and going-concern disclosure, and are available under the Company's profile on SEDAR+ at www.sedarplus.ca. Readers should review those documents in their entirety.
About Alset AI Ventures Inc.
Alset AI is an AI-focused venture investment platform dedicated to sourcing, funding and developing companies across the artificial intelligence value chain. The Company seeks to provide investors with diversified exposure to emerging applications and infrastructure that enable advancements in AI technologies.
For further information about Alset AI Ventures Inc., please contact:
Investor Relations
Adam Ingrao
Chief Executive Officer
T: 236.312.6744
E: ir@alsetai.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note regarding Forward-Looking Statements
This press release contains certain forward-looking statements and forward-looking information (collectively, "forward-looking statements") regarding the Company, including statements relating to its plans to make strategic seed investments, identify and research AI investment opportunities, support Lyken.AI through capital and strategic guidance, identify potential strategic partnerships, add key full-time roles, actively manage its portfolio and create long-term shareholder value; the future performance and value of its investments; its ability to realize or monetize recorded carrying values; and the availability and use of capital.
Forward-looking statements normally contain words such as "will", "intend", "anticipate", "could", "may", "expect", "plan", "potential", "believe", "target" and similar terms. Such statements are subject to risks and uncertainties, including the subjective nature of valuations for private and illiquid investments; changes in valuation assumptions, foreign exchange rates and the market price of securities received as consideration; restrictions affecting the resale of FingerMotion shares; the concentration of the Company's portfolio in a limited number of investments; the ability to realize investments at their recorded values or at all; operating and financing requirements; the availability of financing; investee performance; technological change; competition; and general economic, capital-market and regulatory conditions.
The Company's ability to continue as a going concern is dependent upon its ability to draw further advances under the loan transaction, raise additional financing or realize value from its investment portfolio, none of which is assured. As disclosed in Note 1 to the financial statements and under "Liquidity" in the MD&A, these conditions indicate the existence of a material uncertainty that may cast significant doubt about the Company's ability to continue as a going concern. The financial statements do not include adjustments that may be necessary if the Company is unable to continue as a going concern.
Actual results may differ materially. Forward-looking statements are made as of the date hereof and are qualified by these cautionary statements. Except as required by applicable securities laws, Alset undertakes no obligation to update them. Additional risks are described in Alset's public filings available at www.sedarplus.ca.
SOURCE: Alset AI Ventures Inc.
View the original press release on ACCESS Newswire