Fabric.AI, Inc. reported no revenue and a net loss of $2,414,475 for the quarter ended March 31, 2026, compared with net income of $845,011 a year earlier, driven largely by lower fair value gains and higher financing-related charges. Operating expenses were $1,701,055, including increased stock-based compensation.
Cash, cash equivalents and restricted cash were $3,374,102 at quarter-end, but subsequent financings lifted liquidity to about $30 million, leading management to conclude prior going concern doubts have been alleviated. As of May 14, 2026, there were 4,856,079 common shares outstanding.
The company has launched a strategic transformation into fabless AI semiconductor technologies, centered on the Neural I/o™ MicroLED-based optical interconnect developed under a Joint Development and License Agreement with Kopin Corporation, under which Fabric.AI may fund up to $15,000,000 for development. It exited its digital asset strategy with a $613,663 unrealized loss and has paused active electric vehicle commercialization while evaluating alternatives.
Fabric.AI, Inc. ownership filing updates beneficial holdings reported by Iroquois Capital Management LLC and two related reporting persons. The filing shows holdings that reflect convertible preferred stock and warrants subject to a 9.99% blocker, with the percent ownership calculated using an estimated 1,455,975 shares of Common Stock outstanding as of March 30, 2026.
The statement discloses that Iroquois Master Fund held 1,384 shares of Common Stock, 1,415.28 shares of Preferred Stock convertible into Common Stock and warrants to purchase 945,085 shares; ICIG held 2,570 Common shares, 2,264.15 convertible Preferred shares and warrants to purchase 1,666,153 shares. The cover pages list beneficial ownership figures that give effect to the blockers.