FiEE (FIEE) Q1 2026 earnings summary

Executive summary

• Achieved $2.1 million in revenue for Q1 2026, up from $125,000 year-over-year, reflecting a strategic pivot to SaaS, AI-driven content, and digital authentication services.

• Net income reached $352,000, reversing a net loss of $374,000 in Q1 2025, marking continued profitability since Q4 2025.

• Gross margin improved to 70.4% from negative in the prior year, driven by high-margin SaaS and digital services.

• Expanded through acquisition of HGK (AI/blockchain authentication), new subsidiaries in Hong Kong and Singapore, and entry into AI-powered music creation and entertainment.

• Closed a $2.0 million equity financing in March 2026 to support growth and liquidity.

Financial highlights

• Revenue: $2.1 million (Q1 2026), up 1,697,491% year-over-year.

• Net income: $352,000 (Q1 2026) vs. net loss of $374,000 (Q1 2025).

• Gross profit: $1.5 million; gross margin: 70.4%.

• Operating income: $426,000 (Q1 2026) vs. operating loss of $371,000 (Q1 2025).

• Cash balance: $4.6 million as of March 31, 2026, up from $3.1 million at year-end.

Outlook and guidance

• Management anticipates requiring $10 million in funding over the next three years to scale AI and SaaS platforms.

• Substantial doubt remains about ability to continue as a going concern without additional capital.

• Strategic focus on expanding SaaS, AI, and digital authentication, with planned investments in technology, R&D, and customer acquisition.

• Focused on building partnerships and extending reach in the digital content industry.

• Actively assessing opportunities in AI, hardware, IoT, and MCN business.