FG Nexus (FGNX) investor relations material

Executive summary

• Transitioned to a digital asset treasury model focused on ETH and tokenization of real-world assets, with two main segments: digital assets and merchant banking.

• Board is reviewing strategic alternatives, including a potential business combination with FG Communities, Inc., to enhance value and align with tokenization strategy.

• Completed sale of reinsurance business and signed a letter of intent to sell Quebec real estate, aiming to streamline operations and generate liquidity.

Financial highlights

• Total revenue for Q1 2026 was $0.2 million, down 2.5% year-over-year, consisting of merchant banking advisory fees and rental income.

• Net loss from continuing operations increased to $40.3 million from $8.6 million year-over-year, driven by $36.7 million in digital asset losses and higher operating expenses.

• Cash and cash equivalents at March 31, 2026, were $14.1 million, with digital assets valued at $60.7 million.

• Net cash used in operating activities was $6.2 million, while $21.7 million was provided by investing activities, mainly from ETH sales.

Outlook and guidance

• Board's review of strategic alternatives, including a potential business combination, could materially impact future operations and financial reporting.

• No specific forward guidance provided, but management highlights ongoing risks related to digital asset volatility and execution of new strategies.