Empery Digital (EMPD) investor relations material

Executive summary

• Transitioned to a digital asset treasury strategy in July 2025, focusing on Bitcoin aggregation and capital efficiency, funded by over $500 million in private placements, including $28 million paid in Bitcoin.

• Divested the Volcon brand and four-wheel vehicle business to Venom EV, LLC, retaining a 10% equity stake and focusing on two-wheel products, vehicle financing, and digital asset management.

• Significant management and board changes, including new Co-CEOs, a revamped board, and substantial stock-based compensation tied to performance milestones.

• Repurchased 11.1 million shares under a $150 million program at prices below NAV, increasing BTC per share.

• Entered an asset purchase agreement with Venom EV, receiving 10% of Venom's shares in exchange for powersports IP.

Financial highlights

• Q3 2025 revenue was $198,301, down from $1,075,864 in Q3 2024; nine-month revenue was $1,637,286, down from $3,050,275 year-over-year.

• Net loss for Q3 2025 was $34.6 million, and $40.9 million for the nine months, compared to $13.6 million and $40.3 million in the prior year periods.

• Gross margin remained negative, with a Q3 2025 loss from operations of $34.5 million, driven by high operating expenses and a $14.1 million unrealized loss on Bitcoin.

• General & administrative expenses spiked to $19.4 million due to one-time costs from the capital raise and BTC strategy; adjusted G&A was $2.4 million.

• Cash, cash equivalents, and restricted cash totaled $18.9 million at September 30, 2025.

Outlook and guidance

• Management expects lower operating expenses and cost of goods sold in Q4 2025 as the business transitions to digital asset management and vehicle financing.

• Sales and marketing expenses and product development costs are projected to decrease due to lower headcount and winding down of vehicle development.

• General & administrative expenses projected to decrease with lower insurance and custodial costs.

• Plans to launch Brat E-Bike in Japan by Q1 2026 and a modular cargo bike in Europe as early as H1 2026.

• Cash on hand, expected operational cash flow, and available credit facilities are anticipated to fund operations beyond one year.