ALT5 Sigma Corporation Issues Stockholder Letter and Provides Corporate Update

Rhea-AI Summary

ALT5 Sigma (NASDAQ:ALTS) says it has restored SEC and Nasdaq compliance, strengthened governance, appointed a new CFO and two board members, and reorganized operations to improve controls. The company reported a $3.5M allowance tied to a Rwandan court judgment (on appeal) and estimates NAV of $843M ($6.67/share) versus market cap ~$192M, implying a ~77% discount.

ALT5 authorized share repurchases, launched ALT5 Ai, and highlighted $8B processed in digital asset transactions to support long-term value creation.

Positive

• Restored SEC and Nasdaq compliance
• Estimated NAV of $843M ($6.67/share)
• Authorized opportunistic share repurchase program
• Appointed new CFO and two board members
• Launched ALT5 Ai business unit
• Processed >$8 billion in digital asset transactions

Negative

• Recorded a $3.5M allowance for Rwanda court judgment
• Rwandan judgment currently on appeal, outcome uncertain
• Market capitalization ~$192M, implying ~77% discount to NAV

News Market Reaction – ALTS

-9.03%

14 alerts

-9.03% News Effect

-12.3% Trough in 27 hr 46 min

-$18M Valuation Impact

$182M Market Cap

0.4x Rel. Volume

On the day this news was published, ALTS declined 9.03%, reflecting a notable negative market reaction. Argus tracked a trough of -12.3% from its starting point during tracking. Our momentum scanner triggered 14 alerts that day, indicating notable trading interest and price volatility. This price movement removed approximately $18M from the company's valuation, bringing the market cap to $182M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Rwanda judgment amount: US$3.5 million Share price: $1.52 Equity market capitalization: $192 million +5 more

8 metrics

Rwanda judgment amount US$3.5 million Amount ordered forfeited and reserved on condensed consolidated balance sheets

Share price $1.52 Closing price as of February 19, 2026

Equity market capitalization $192 million Implied market cap at $1.52 share price on February 19, 2026

Shares outstanding 126,339,124 shares Outstanding common shares used for market cap and NAV per share

Net asset value $843 million Management estimate of NAV as of February 19, 2026

NAV per share $6.67 per share NAV per issued and outstanding common share on February 19, 2026

Discount to NAV 77% Implied discount of share price to intrinsic value per management

Processed transaction volume More than $8 billion Digital asset transactions processed since inception

Market Reality Check

Price: $1.51 Vol: Volume 1,795,900 is below...

low vol

$1.51 Last Close

Volume Volume 1,795,900 is below 20-day average 3,395,293 (relative volume 0.53). low

Technical Shares at $1.44, trading below 200-day MA of $4.43 and 86.85% under 52-week high, while 33.95% above 52-week low.

Peers on Argus

ALTS was down 5.26% while peers were mixed: APPS up 3.44%, HKD up 3.11%, PUBM up...

1 Up

ALTS was down 5.26% while peers were mixed: APPS up 3.44%, HKD up 3.11%, PUBM up 0.61%, MITK down 1.21%, CRNC down 0.63%. Only 1 peer appeared in the momentum scanner, suggesting stock-specific dynamics rather than a sector-wide move.

Historical Context

5 past events · Latest: Feb 12 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 12	Board appointment	Positive	-4.7%	Added AI and blockchain expert Dr. Adel Elmessiry to Board of Directors.
Jan 29	Buyback, token plan	Positive	+1.4%	Approved up-to-$100M stock buyback and strategic WLFI token acquisitions with new facility.
Jan 27	Conference participation	Positive	+10.1%	Participation in World Liberty Forum to present AI-to-AI payments vision to global leaders.
Jan 21	ALT5 AI launch	Positive	-1.2%	Launched ALT5 AI unit and highlighted $8B transaction history plus stablecoin plans.
Jan 14	Nasdaq compliance	Positive	+30.9%	Regained Nasdaq periodic filing compliance after submitting delayed Form 10-Q.

Pattern Detected

Recent governance and strategic announcements have often led to positive price reactions, but several constructive updates have also seen near-term selloffs, indicating a mixed pattern of alignment.

Recent Company History

Over the past weeks, ALT5 reported multiple governance and strategic milestones. Compliance with Nasdaq filing rules was restored on Jan 14, 2026, which coincided with a 30.94% gain. The company then launched its ALT5 AI unit and highlighted $8 billion in processed transactions, followed by participation in the World Liberty Forum, which saw a 10.05% move. A major buyback and token acquisition program and new board appointments further refreshed oversight. Today’s stockholder letter builds on this narrative by emphasizing restored compliance, leadership changes, and valuation disparity.

Market Pulse Summary

The stock moved -9.0% in the session following this news. A negative reaction despite a governance- ...

Analysis

The stock moved -9.0% in the session following this news. A negative reaction despite a governance- and valuation-focused letter fits a pattern where some positive updates, such as the ALT5 AI launch, were followed by short-term declines. The market may have focused on execution risk around realizing the stated $843 million NAV, the Rwanda $3.5 million judgment, or broader volatility in digital asset ecosystems. With prior events showing both strong rallies and reversals, attention typically centers on whether compliance gains and capital allocation plans translate into sustained operating performance.

Key Terms

net asset value (nav), equity market capitalization, share repurchase program, condensed consolidated balance sheets, +4 more

8 terms

net asset value (nav) financial

"Based on management's recent estimate of net asset value (NAV) as of February 19, 2026"

Net asset value (NAV) is the per-share value of an investment fund calculated by totaling the fund’s assets, subtracting its liabilities, and dividing the remainder by the number of outstanding shares. Think of it like a price tag on each share of a collective piggy bank: investors use NAV to see what each share is worth, to compare funds, and, for many funds, it’s the price at which shares are bought or redeemed.

equity market capitalization financial

"implying an equity market capitalization of approximately $192 million"

Equity market capitalization is the total value of a company’s outstanding shares, calculated by multiplying the current share price by the number of shares people own. Think of it as the market’s sticker price for the whole company — like summing the price of every brick in a house to get the house’s value. Investors use it to judge company size, compare firms, and gauge typical risk and liquidity: larger market caps tend to be more stable, smaller ones often offer higher growth potential but more volatility.

share repurchase program financial

"our Board authorized a share repurchase program designed to allocate our capital opportunistically"

A share repurchase program is when a company buys back its own shares from the marketplace. This reduces the total number of shares available, which can increase the value of each remaining share and signal confidence in the company's prospects. For investors, it often suggests that the company believes its stock is undervalued or that it has extra cash to return to shareholders.

condensed consolidated balance sheets financial

"we recorded a US$3.5 million allowance on our condensed consolidated balance sheets"

A condensed consolidated balance sheet is a shortened, combined snapshot of a company's assets, liabilities and shareholders’ equity that merges the parent company with its subsidiaries and removes internal transactions. It gives investors a quick, comparable view of the group’s financial position—like a summarized bank statement for the whole family—useful for gauging liquidity and solvency at a glance, though it omits the detailed line-item disclosures in full financial statements.

digital asset financial

"which includes digital asset holdings, cash, and all other assets"

A digital asset is a representation of value or rights that exists only in electronic form—like digital versions of cash, stocks, or collectibles kept in a virtual wallet. They are transferred and recorded using computer systems that make copying or tampering difficult, and can include currencies, tokenized shares, or unique digital items. Investors care because digital assets can offer new ways to diversify, trade and raise capital, but they also bring different risks around price swings, custody and regulation.

settlement infrastructure technical

"operating institutional-grade global payments, trading, and settlement infrastructure"

Settlement infrastructure is the network of systems, rules and institutions that make sure a trade actually becomes ownership of a stock or bond and the money changes hands—think of it as the financial “post office” and escrow service for trades. It matters to investors because its speed, reliability and cost determine how quickly you get paid or delivery occurs, how much counterparty or systemic risk you face, and how cheaply and safely markets operate.

nasdaq listing requirements regulatory

"regained compliance with applicable Nasdaq listing requirements"

NASDAQ listing requirements are the financial, governance and disclosure rules a company must meet to have its shares traded on the NASDAQ stock exchange. Think of them as the standards a business must pass to join an exclusive marketplace — they affect whether a stock can be bought easily, how much public information the company must provide, and how investors judge its credibility and risk. Meeting these rules can boost liquidity and investor confidence.

securities and exchange commission regulatory

"Returned to compliance with applicable U.S. Securities and Exchange Commission reporting requirements"

A national government agency that enforces rules for buying, selling and disclosing information about stocks and other investments, acting like a referee and scorekeeper for financial markets. It requires companies to share clear, regular financial and business information and investigates fraud or rule-breaking, which matters to investors because those rules and disclosures help ensure fair prices, reduce hidden risks and make it easier to compare investment choices.

AI-generated analysis. Not financial advice.

Acting CEO Tony Isaac Outlines Compliance Restoration, Governance Strengthening, and Strategy to Drive Long-Term Stockholder Value

LAS VEGAS, NEVADA / ACCESS Newswire / February 23, 2026 / ALT5 Sigma Corporation (the "Company" or "ALT5") (NASDAQ:ALTS)(FRA:5AR1), a fintech company operating institutional-grade global payments, trading, and settlement infrastructure, today issued a letter to stockholders from Tony Isaac, Acting Chief Executive Officer.

Dear Stockholders,

Over the past 60 days, our focus has been clear: restore compliance, strengthen governance, sharpen operational discipline, and position ALT5 to better align its market valuation with its underlying asset base and infrastructure platform.

This update is intended to provide transparency regarding recent operational, compliance, and corporate developments, as well as to outline how we intend to execute with discipline and support sustainable long-term value creation.

Restoring Compliance and Strengthening the Foundation

During the past two months, we have made meaningful strides across several critical areas:

• Returned to compliance with applicable U.S. Securities and Exchange Commission reporting requirements

• Regained compliance with applicable Nasdaq listing requirements

• Reorganized certain business operations to improve efficiency, internal controls, and oversight

• Expanded and enhanced investor outreach and engagement initiatives

We have filed all required reports to restore timeliness under our SEC reporting obligations and are committed to maintaining full compliance with applicable filing deadlines going forward. In addition, the Company has regained compliance with applicable Nasdaq listing requirements. Strengthening financial controls, reporting discipline, and governance standards is foundational to restoring confidence and supporting long-term value creation.

In parallel, we have refined our operational structure to better align oversight, accountability, and execution across our payments, trading, and settlement infrastructure.

Governance and Leadership Updates

As previously disclosed in our Current Report on Form 8-K filed November 26, 2025:

• The Board concluded Jonathan Hugh's employment as Chief Financial Officer and acting Chief Executive Officer, without cause, effective November 1, 2025.

• Ron Pitters was provided notice on November 25, 2025 of the Board's decision to conclude his Consulting Agreement in accordance with its terms.

We remain engaged in constructive discussions to resolve any outstanding economic matters with these two individuals. These changes reflect our commitment to strengthening governance, oversight, and executive alignment as we execute our long-term strategy. Subsequent to these changes, the Company appointed Steven Plumb as Chief Financial Officer and added Dr. Adel Elmessiry and Tim Stanley to its Board of Directors, reinforcing financial oversight and governance alignment.

Rwanda Subsidiary Matter

As previously disclosed in our Current Report on Form 8-K filed August 29, 2025, and updated in our Quarterly Report filed January 12, 2026, on May 7, 2025, the Intermediate Court of Nyarugenge, Rwanda, rendered a judgment concerning our Canadian indirect, second-tier subsidiary and its former principal, related to approximately US$3.5 million held at I&M Bank in Rwanda.

The court ordered that the US$3.5 million be permanently forfeited to the Rwandan State Treasury. The judgment is currently on appeal before the High Court of Kigali, Rwanda.

In connection with the Intermediate Court's decision, we recorded a US$3.5 million allowance on our condensed consolidated balance sheets. As a result, there will be no additional financial statement impact should the appeal be unsuccessful. Conversely, if the appeal is successful, we would expect to recapture some or all of the allowance.

We continue to pursue all available remedies to protect the interests of the Company and its stakeholders.

Aligning Market Valuation with Intrinsic Value

As of February 19, 2026, ALT5's closing share price was $1.52, implying an equity market capitalization of approximately $192 million based on 126,339,124 outstanding shares of our common stock.

Based on management's recent estimate of net asset value (NAV) as of February 19, 2026, which includes digital asset holdings, cash, and all other assets, the Company's NAV is approximately $843 million, or $6.67 per issued and outstanding share of common stock, implying that ALT5 shares trade at approximately a 77% discount to intrinsic value.

Our objective is to reduce this valuation misalignment over time through disciplined execution, transparent communication, and thoughtful capital allocation.

As previously announced, our Board authorized a share repurchase program designed to allocate our capital opportunistically when management and the Board determine that market pricing does not accurately reflect the intrinsic value of our underlying net asset base and operating platform. When executed prudently and in accordance with applicable regulations, these repurchases will represent a direct mechanism to enhance per-share value and capital efficiency.

We remain focused on capital structure discipline, prudent management of dilution, and long-term stockholder alignment.

ALT5 has processed more than $8 billion in digital asset transactions since inception. Sustained operational performance, institutional adoption, and transaction scalability remain central to reinforcing the strength of our infrastructure platform.

In February 2026, we announced the launch of ALT5 Ai, a strategic business unit designed to extend our regulated payment and settlement infrastructure into Ai-driven commerce, and appointed Bill Inman as Chief Innovation Strategist and Spokesperson. In this role, Mr. Inman will guide the Company's intended expansion at the intersection of artificial intelligence, decentralized systems, and enterprise payment infrastructure.

As artificial intelligence systems increasingly execute workflows, authorize transactions, and interact across digital environments, we believe enterprise-grade payment rails capable of secure authorization, compliance oversight, and real-time settlement will become foundational infrastructure. ALT5 Ai is intended to build upon our existing operating platform by enabling Ai-to-enterprise and Ai-to-Ai transaction capabilities aligned with institutional compliance standards.

Recent mainstream financial media coverage has highlighted initiatives within the broader World Liberty Financial ecosystem, reflecting increasing visibility and evolving real-world utility across digital asset markets. As compliant digital asset infrastructure continues to mature and practical applications expand, we believe enterprise-grade platforms positioned at the intersection of payments and digital assets will increasingly reflect their underlying value in public markets.

Looking Ahead

With compliance restored, governance strengthened, and previously disclosed matters appropriately addressed in our financial statements, our focus remains on disciplined execution across our regulated payments and digital asset infrastructure.

We appreciate the continued engagement of our stockholders and look forward to providing further updates as we execute this next phase of the Company's development.

Sincerely,

Tony Isaac
Acting Chief Executive Officer
ALT5 Sigma Corporation

About ALT5 Sigma Corporation

ALT5 Sigma Corporation (NASDAQ: ALTS) (FRA:5AR1) is a fintech company with a strategic $WLFI digital asset treasury strategy initiative and an established global payments, trading, and settlement infrastructure, including card-based programs supporting crypto-to-fiat and fiat-to-crypto transactions. Since the inception of the Company's processing platforms in 2018, the Company has leveraged its blockchain infrastructure expertise and proven track record of processing over $8 billion in cryptocurrency transactions to optimize its digital asset treasury operations and capitalize on growing $WLFI ecosystem developments across retail platforms, payment integrations, and international market expansion.

Forward-looking Statements

The referenced letter, including the section entitled "Looking Ahead", contains statements that are forward-looking statements as defined within the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements relating to the growth of USD1, ALT5's ability to benefit from the growth of USD1, the value of ALT5's $WLFI holdings, ALT5's accelerated growth in digital asset treasury operations, the positioning of the Company in the digital asset treasury sector, and the profitability and prospective growth of ALT5's platforms and business that are subject to risks that may include, but are not limited to, international currency risks, third-party or customer credit risks, liability claims stemming from ALT5's services, and technology challenges for future growth or expansion, and statements regarding the Company's potential separation plans of its biotech business. Words such as "continue", "expect", "intend", "will", "hope", "should", "would", "may", "potential", and other similar expressions may indicate forward-looking statements, though not all forward-looking statements contain such words. Such statements reflect the Company's current view with respect to future events, are subject to risks and uncertainties, including international currency risks, third-party or customer credit risks, liability claims stemming from ALT5's services, and technology challenges for future growth or expansion, and are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political, and social uncertainties, and contingencies.

Many factors could cause the Company's actual results, performance, or achievements to be materially different from any future results, performance or achievements described in the referenced letter. Such factors could include, among others, changes in the value of $WLFI tokens, a downturn in the adoption of stable coins, and other risks detailed in the Company's periodic reports filed with the Securities and Exchange Commission (the "SEC"). Should one or more of these risks or uncertainties materialize, or should the assumptions set out in the section entitled "Risk Factors" in the Company's filings with the SEC underlying those forward-looking statements prove incorrect, actual results may vary materially from those described herein. These forward-looking statements are made as of the date of the referenced letter and the date of this Current Report on Form 8-K and the Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by law. The Company cannot assure that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Individuals are cautioned that forward-looking statements are not guarantees of future performance and accordingly investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein.

Media Relations

ALT5 Sigma Corporation
Phone: +1 (888) 778-7091
Email: info@alt5sigma.com

Investor Relations

Gateway Group, Inc.
Phone: +1 (949) 574-3860
Email: ALTS@gateway-grp.com

SOURCE: ALT5 Sigma Corp.

View the original press release on ACCESS Newswire

FAQ

What compliance updates did ALT5 (ALTS) announce on February 23, 2026?

ALT5 said it has returned to compliance with SEC reporting and regained Nasdaq listing compliance. According to the company, these steps included filing overdue reports and strengthening financial controls and governance to maintain timely filings going forward.

How did ALT5 calculate its $6.67 per-share NAV and what does it mean for ALTS investors?

The company estimated NAV at $843 million, or $6.67 per share, versus a $1.52 close implying a 77% discount. According to the company, NAV includes digital asset holdings, cash, and other assets as of February 19, 2026.

What is the significance of ALT5's $3.5 million allowance tied to the Rwanda case for ALTS shareholders?

ALT5 recorded a $3.5M allowance after an Intermediate Court order forfeited funds to Rwanda, reducing book assets by that amount. According to the company, the judgment is on appeal and the allowance would be recaptured if the appeal succeeds.

How will ALT5's authorized share repurchase program affect ALTS shareholders?

The Board authorized repurchases to buy shares when market prices diverge from intrinsic value, potentially boosting per-share metrics. According to the company, repurchases will be executed opportunistically and in compliance with applicable regulations.

What is ALT5 Ai and how does it relate to ALTS's business strategy?

ALT5 Ai is a new unit to extend regulated payment and settlement infrastructure into AI-driven commerce and transactions. According to the company, it aims to enable AI-to-enterprise and AI-to-AI transaction capabilities built on existing compliance and settlement rails.

How material is ALT5's transaction volume to assessing ALTS operations?

ALT5 reports processing more than $8 billion in digital asset transactions since inception, indicating operational scale in its core infrastructure. According to the company, sustained adoption and transaction scalability are central to reinforcing platform strength.