10-Q: Amaze Holdings Reports Q2 2026 Results Amidst Financial Challenges

Amaze Holdings, Inc. filed its Q2 2026 Form 10-Q, detailing a significant net loss, a substantial working capital deficit, and ongoing efforts to secure additional financing.

Summary

• Amaze Holdings, Inc. reported its financial results for the quarter ended June 30, 2026.
• The company experienced a net loss of $4.42 million for the three months ended June 30, 2026, and $10.03 million for the six months ended June 30, 2026.
• Revenues for the three months ended June 30, 2026, decreased by 29% to $619,621 compared to the prior year, while revenues for the six months increased by 17% to $1.09 million.
• The company has a substantial working capital deficit of approximately $19.2 million as of June 30, 2026.
• Amaze Holdings continues to rely on equity and debt financings to fund its operations and has a substantial accumulated deficit of $94.5 million.
• The company has identified material weaknesses in its internal control over financial reporting and is implementing remediation activities.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this filing as having a negative sentiment due to significant ongoing losses, a substantial working capital deficit, and substantial debt obligations, despite some revenue growth and strategic acquisitions.

Positives

• Revenue for the six months ended June 30, 2026, increased by 17% to $1.09 million compared to the same period in 2025.
• The company completed the acquisition of Amaze Software, Inc. on March 7, 2025, integrating a creator-focused commerce platform.
• The company has secured significant funding through an At-The-Market (ATM) offering ($6.8 million in the six months ended June 30, 2026) and an Equity Line of Credit (ELOC) ($1.3 million in the six months ended June 30, 2026).
• The company projects that existing cash balances, along with ELOC and ATM proceeds, will be sufficient to fund current operations into 2027.

Negatives

• The company reported a net loss of $4.42 million for the three months ended June 30, 2026, and $10.03 million for the six months ended June 30, 2026.
• Revenues for the three months ended June 30, 2026, decreased by 29% to $619,621 compared to the prior year.
• The company has a substantial working capital deficit of approximately $19.2 million as of June 30, 2026.
• As of June 30, 2026, the company had an accumulated deficit of approximately $94.5 million.
• The company has identified material weaknesses in its internal control over financial reporting.
• The company faces substantial debt obligations, including convertible notes payable and other notes payable.

Risks

• The company has a history of losses and may not achieve profitability in the future, raising substantial doubt about its ability to continue as a going concern.
• The company will require additional capital to fund its operations and growth, and may be unable to obtain financing on acceptable terms or at all.
• Substantial indebtedness could adversely affect the company's financial condition and ability to raise additional capital.
• The company is heavily reliant on third-party suppliers and platforms, and disruptions could adversely affect its business.
• The company may be unable to maintain its listing on the NYSE American due to existing or future continued listing requirements.
• The company faces intense competition and may not be able to compete effectively.

Future Outlook

The company projects that its existing cash balance, along with proceeds from the ELOC and ATM, will be sufficient to fund current operations into 2027. However, it anticipates needing additional debt or equity financing thereafter, which may not be available on favorable terms or could be highly dilutive. The company expects revenues to peak in the fourth quarter due to holiday demand.

Management Comments

• The company's ability to continue as a going concern is dependent on its ability to meet its liquidity needs through a combination of factors including but not limited to, cash and cash equivalents, working capital and strategic capital raises.
• If adequate financing is not available, the Company will be forced to take measures to severely reduce our expenses and business operations or discontinue them completely.
• The Company operates on an asset-light model, leveraging third-party resources, including custom and on-demand production facilities.
• Amaze operates on an asset-light model, leveraging third-party resources, including custom and on-demand production facilities.
• We expect the composition and scale of SG&A to continue to shift as the consolidated operations continue to normalize post-Acquisition.

Industry Context

StockSavvy.ai notes that Amaze Holdings is operating in the rapidly evolving creator economy and e-commerce space. The company's strategic pivot towards a platform-based digital commerce business, enabling creators to monetize through direct audience engagement, aligns with broader industry trends. However, the significant losses and working capital deficit highlight the intense competition and capital requirements typical of this sector.

Comparison to Industry Standards

• The company's revenue decline of 29% in the three-month period is concerning, especially when compared to the growth seen by many established e-commerce platforms and creator economy enablers.
• The substantial net loss and accumulated deficit indicate a significant divergence from industry leaders who have achieved profitability or are on a clear path to it.
• The reliance on ATM and ELOC offerings for funding is common among early-stage or struggling tech companies, but it suggests a difficulty in accessing traditional debt or equity markets on favorable terms, unlike more mature companies.
• The company's focus on an 'asset-light' model is a common strategy in the digital space, aiming for scalability and reduced capital expenditure, but its success is contingent on effective execution and market penetration, areas where competitors like Shopify or Etsy have demonstrated strong performance.

Management Changes

Legal Proceedings

• Timothy Michaels lawsuit: The company appealed a jury verdict awarding $585,976.25 in damages, which was affirmed on appeal. The matter is now concluded after the company compelled satisfaction of the judgment and was awarded costs and attorney fees.
• G&I IX Aviation LLC v. Teespring, Inc. et al.: Amaze Holding Company LLC is a defendant in a lawsuit seeking approximately $869,000 in unpaid rent plus attorneys fees. A motion for summary judgment was granted, resulting in an award of approximately $1.2 million. Amaze has filed an appeal.
• Dubow Decorating, Inc. v. Amaze Software, Inc.: Amaze Software, Inc. is a defendant and counter-plaintiff in a lawsuit concerning unpaid invoices and alleged quality issues. The company settled the lawsuit for approximately $185,000, with payments through September 2026.
• DinoCloud, Inc. v. Amaze Software, Inc.: Amaze Software, Inc. is a defendant in a lawsuit alleging breach of contract and other claims, seeking $202,000 in damages. A preliminary agreement to resolve the dispute for an estimated $150,000 has been reached.
• Baron App, Inc. dba Cameo v. Amaze Holding Company LLC: Amaze Holding Company LLC is a defendant in a lawsuit alleging breach of contract and damages in excess of $140,000. The parties reached a settlement for $140,000.

Stakeholder Impact

• Shareholders: Potential for significant dilution due to ongoing need for capital raises, and risk of delisting from NYSE American impacting stock liquidity and value.
• Creditors: Substantial indebtedness poses a risk to timely repayment, potentially leading to default.
• Employees: Uncertainty regarding future operations and potential for expense reduction could impact employment.
• Suppliers: Continued reliance on third-party suppliers, with potential for disruptions impacting business operations.

Next Steps

• Continue to evolve and refine products to meet consumer needs.
• Bring on new suppliers, products, and services to help creators.
• Expand distribution by bringing on in-country supply from new suppliers.
• Continue to drive visibility and awareness through marketing campaigns.
• Conduct a search for a permanent successor to the CEO position.

Key Dates

Recommendation

The company's persistent net losses, significant working capital deficit, substantial debt, and ongoing legal proceedings present considerable financial risks. While there has been some revenue growth and strategic acquisitions, the overall financial health and going concern issues, coupled with the potential for stock delisting, suggest a negative outlook for the stock.

Keywords

Amaze Software, Creator Economy, E-commerce Platform, Digital Commerce, Subscription Revenue, Merchandise Sales, At-The-Market Offering, Equity Line of Credit