Company Description
Adapti, Inc. (OTC: ADTI) is a Nevada corporation that focuses on integrating AI technology with sports representation and influencer management. According to the company’s public statements, Adapti leverages advanced artificial intelligence and proprietary data analytics to match products and brands with influencers it considers optimal, with the goal of driving improved marketing results. The company describes its long-term vision as building a global platform where data is treated as an asset and paired efficiently with high-impact influencers.
Adapti’s strategy includes combining traditional sports agency functions with data-driven social media and influencer tools. Through its acquisition of The Ballengee Group, LLC, a Dallas-based baseball sports management agency representing professional and Major League Baseball athletes, Adapti has entered the athlete representation business. The Ballengee Group assists its clients with contract negotiations, marketing deals, public relations, and strategic partnerships, and has a history of guiding world champions and high-profile players throughout their careers.
The company has also signed a Letter of Intent to acquire Levelution Sports, a Name, Image, and Likeness (NIL) representation agency. Levelution Sports focuses on NIL compliance, brand partnerships, and athlete development. Adapti states that integrating Levelution Sports into its platform is intended to expand its capabilities in NIL-era athlete management and provide additional resources and partnership opportunities for its roster of athletes.
Adapti refers to its technology platform as AdaptAI, a SaaS-based system that it is developing for data-driven influencer alignment. The company has described plans to roll out integrated services that blend traditional contract negotiation and endorsement deals with dynamic social media campaigns. These campaigns are expected to be powered by AdaptAI’s proprietary “data fingerprint” technology, which is being designed to use Large Language Models to respond to changes in the marketing landscape. The company indicates that this approach is intended to maximize engagement, improve return on investment for brand partners, and help athletes expand their platforms.
In addition to its operating activities, Adapti has disclosed several financing and governance developments in its SEC filings. The company completed the acquisition of The Ballengee Group through a combination of common stock, a promissory note, and contingent earnout consideration payable in shares of Adapti common stock. A subsequent Form 8-K/A provided audited and unaudited financial statements of Ballengee Group, along with unaudited pro forma condensed combined financial statements for Adapti, reflecting the business combination.
Adapti has also reported entering into a revolving loan agreement through its wholly owned subsidiary, Ballengee Group, LLC, with Texas Security Bank. Under this arrangement, the subsidiary may borrow up to a specified maximum amount for general working capital purposes, secured by substantially all of the subsidiary’s assets and subject to borrowing base and other conditions. The loan is cross-collateralized with a separate loan to an entity affiliated with Ballengee’s former owner, and the company has described related guarantees and security agreements in detail in its filings.
On the capital-raising front, Adapti disclosed issuing a senior convertible promissory note to its executive chairman, structured with an original issue discount, a fixed maturity date, and a conversion feature tied to the company’s common stock price, subject to a beneficial ownership limitation. The company has also reported an unregistered sale of equity securities in connection with a warrant issued to its Chief Revenue Officer, with vesting over several years and provisions for accelerated vesting upon a change of control or certain termination events.
From a corporate governance perspective, Adapti has reported changes in its leadership and board composition. The company announced the appointment of an Executive Chairman of the Board with a background in social media, sports, and media strategy, as well as the appointment of a Chief Revenue Officer with experience in digital marketing and performance-focused brand strategy. The company has also disclosed the resignation of a board member, noting that the departure did not result from any disagreement with the company on matters relating to operations, policies, or practices.
Adapti trades on the over-the-counter market under the ticker symbol ADTI. In its public communications, the company emphasizes the convergence of sports management, social media strategy, and AI-powered influencer technology as the core of its business model. By combining a sports agency platform, NIL-focused representation capabilities, and a data-driven influencer matching system, Adapti positions itself as building an integrated environment for athletes and brands to manage contracts, endorsements, and digital presence.
Business Model and Operations
Based on its disclosures, Adapti’s business centers on two primary elements: athlete and influencer representation services, and the development of an AI-enabled platform to support brand-influencer alignment. Through The Ballengee Group, the company participates in activities such as contract negotiations and marketing deals for professional baseball athletes. Through its planned integration of Levelution Sports, it seeks to expand into NIL representation, focusing on compliance and brand partnerships for athletes navigating name, image, and likeness opportunities.
The AdaptAI platform is described as a SaaS-based system that uses proprietary data analytics and Large Language Models. Adapti states that this technology is intended to create a “data fingerprint” for influencers and audiences, allowing for more precise matching between brands and talent and for rapid adaptation to changes in marketing conditions. The company presents this as a way to support both traditional representation work and dynamic social media campaigns.
Capital Structure and Financing Activities
Adapti’s SEC filings outline several key financing arrangements. The acquisition of The Ballengee Group involved issuing shares of common stock, a promissory note, and the possibility of additional earnout consideration payable in shares if certain conditions are met. The company also reported that its subsidiary, Ballengee Group, LLC, entered into a revolving loan agreement with a commercial bank, secured by the subsidiary’s assets and subject to borrowing base limitations tied to guaranteed contracts.
Separately, Adapti issued a senior convertible promissory note to its executive chairman, with an original issue discount and a conversion feature that allows the holder to convert the note into common stock at a price linked to the market price, subject to a cap on beneficial ownership. In another filing, the company disclosed issuing a warrant to its Chief Revenue Officer, providing the right to purchase common stock over a multi-year vesting schedule, with specific terms for vesting and exercise.
Regulatory Filings and Reporting
Adapti files periodic and current reports with the U.S. Securities and Exchange Commission. The company has filed multiple Forms 8-K to report material events, including acquisitions, financing transactions, leadership appointments, and loan agreements. It has also filed a Form 12b-25 (Notification of Late Filing) indicating that additional time was needed to complete and file a quarterly report on Form 10-Q, citing the effort required to compile and review the financial information.
Through its amended Form 8-K related to the Ballengee acquisition, Adapti has provided investors with audited financial statements of the acquired business and unaudited pro forma financial information. These documents are intended to show how the acquisition affects the company’s financial position and results of operations.
Corporate Governance and Management
Adapti’s filings describe changes in its executive team and board. The company appointed an Executive Chairman of the Board following the completion of the Ballengee acquisition, and later appointed a Chief Revenue Officer under an employment agreement that includes base salary terms, conditions tied to a funding threshold, severance provisions, and an equity-based warrant. The company also reported the resignation of a director, explicitly stating that the resignation did not arise from any disagreement on company matters.
These governance disclosures provide insight into how Adapti is organizing its leadership to pursue its strategy in AI-driven sports and influencer management. The combination of sports agency experience, digital marketing background, and AI-focused development is presented by the company as central to its direction.
Key Themes in Adapti’s Public Disclosures
- Use of AI and proprietary data analytics to match brands with influencers.
- Integration of sports representation, NIL management, and social media strategy.
- Expansion through acquisition of The Ballengee Group and an LOI to acquire Levelution Sports.
- Development of the AdaptAI SaaS platform and “data fingerprint” concept.
- Financing activities including convertible notes, warrants, and a revolving loan facility at the subsidiary level.
- Ongoing SEC reporting, including 8-Ks for material events and a notification of late filing for a Form 10-Q.
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Short Interest History
Short interest in Adapti (ADTI) currently stands at 33 shares, up 560.0% from the previous reporting period, representing 0.0% of the float. Over the past 12 months, short interest has increased by 1550%. This relatively low short interest suggests limited bearish sentiment.
Days to Cover History
Days to cover for Adapti (ADTI) currently stands at 1.0 days. This low days-to-cover ratio indicates high liquidity, allowing short sellers to quickly exit positions if needed.