10-Q: Amaze Holdings Q1 2026 Financial Results

Amaze Holdings reports Q1 2026 financial results, highlighting a significant net loss and ongoing going concern risks.

Summary

• Net revenue for Q1 2026 was $469,053, compared to $60,214 in Q1 2025.
• Net loss for the quarter was $5.6 million, compared to $2.1 million in the prior year period.
• Working capital deficit stands at approximately $22.2 million as of March 31, 2026.
• Gross merchandise value (GMV) reached $1.7 million for the quarter.
• The company maintains a going concern warning due to historical losses and capital requirements.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a high-risk situation due to the significant net loss, going concern warning, and material weaknesses in financial controls.

Positives

• Revenue increased by 679% year-over-year, driven by the Amaze Software platform acquisition.
• Gross income improved to $433,395 from a loss of $2,576 in the prior year period.
• The company projects existing cash is sufficient to fund operations into 2027, assuming continued financing access.

Negatives

• Net loss widened to $5.6 million from $2.1 million in Q1 2025.
• Operating expenses, including SG&A, rose significantly to $4.5 million.
• Material weaknesses in internal control over financial reporting persist.
• Significant accumulated deficit of approximately $90 million.

Risks

• Substantial doubt regarding the ability to continue as a going concern.
• Heavy reliance on third-party platforms and supply chain partners.
• Potential for significant dilution to shareholders from future capital raises.
• Exposure to litigation and regulatory risks.
• High levels of indebtedness could limit operational flexibility.

Future Outlook

The company expects to continue operating its creator-focused platform and anticipates revenue growth, though it remains dependent on securing additional debt or equity financing to sustain operations into 2027.

Management Comments

• Management acknowledges substantial doubt regarding the company's ability to continue as a going concern.
• Management is actively working to remediate material weaknesses in internal control over financial reporting.

Industry Context

StockSavvy.ai notes that Amaze Holdings is navigating a challenging transition from a legacy wine business to a creator-economy software platform, a pivot that remains capital-intensive and operationally complex compared to established e-commerce peers.

Comparison to Industry Standards

• The company's high burn rate and reliance on dilutive financing are common among early-stage, high-growth software platforms but contrast with the profitability profiles of mature e-commerce competitors.
• The reliance on third-party platforms for distribution is a standard risk factor for creator-economy businesses.

Corporate Governance

Legal Proceedings

• Timothy Michaels lawsuit concluded.
• G&I IX Aviation LLC v. Teespring, Inc. judgment awarded against Amaze; company plans to appeal.
• DinoCloud, Inc. dispute reached preliminary settlement.
• Baron App, Inc. dispute reached tentative settlement.

Related Party Transactions

• Accrued expenses to related parties remain at $309,333.

Stakeholder Impact

• Shareholders face potential dilution from future capital raises.
• Creditors are impacted by the company's ongoing liquidity challenges and going concern status.

Next Steps

• Continue efforts to remediate material weaknesses in internal control over financial reporting.
• Seek additional capital to fund operations beyond 2027.
• Continue legal efforts regarding outstanding litigation.

Key Dates

Recommendation

The combination of a $90 million accumulated deficit, ongoing going concern warnings, and material weaknesses in financial controls presents a high risk to equity holders.

Keywords

Amaze Holdings, AMZE, Creator Economy, E-commerce, Financial Results, Going Concern, 10-Q