10-Q/A: SharonAI Holdings Inc. Files Q2 2026 Amendment, Corrects Financial Errors

SharonAI Holdings Inc. has filed an amendment to its Q2 2026 Form 10-Q to correct errors in net loss per share and equity balances, reporting a substantial net loss for the period.

Summary

• SharonAI Holdings Inc. filed an amendment (Amendment No. 1) to its Form 10-Q for the quarter ended June 30, 2026, to correct specific errors.
• The corrections relate to net loss per share, weighted average shares outstanding, and balances in the Consolidated Condensed Statements of Operations and Stockholders Equity.
• The company reported a net loss of $428,302,926 for the three months ended June 30, 2026, and $448,218,690 for the six months ended June 30, 2026.
• Basic and diluted net loss per share for the three months ended June 30, 2026, was $(22.84), and for the six months ended June 30, 2026, was $(27.38).
• As of August 5, 2026, the company had 35,667,164 Class A Ordinary Common Stock and 136,341 Class B Super Common Stock outstanding.

Sentiment

Score: 2

Explanation: StockSavvy.ai views this as a negative sentiment due to the significant net loss and the nature of this filing as an amendment to correct errors, indicating potential internal control weaknesses.

Positives

• Revenue for the three months ended June 30, 2026, increased to $1,931,381 from $376,984 in the prior year period.
• Revenue for the six months ended June 30, 2026, increased to $2,225,396 from $702,077 in the prior year period.
• The company reported a gain on investment in NUAI shares of $6,493,245 for the three months ended June 30, 2026, and $4,984,130 for the six months ended June 30, 2026.
• The company reported a gain on sale of investment in TCDC of $65,920,568 for the six months ended June 30, 2026.

Negatives

• The company reported a significant net loss of $428,302,926 for the three months ended June 30, 2026, compared to a net loss of $2,576,406 for the same period in 2025.
• The net loss for the six months ended June 30, 2026, was $448,218,690, compared to $4,008,986 for the same period in 2025.
• Gross profit for the three months ended June 30, 2026, was $1,169,626, but this was significantly offset by share-based compensation, SG&A, and other expenses.
• The company experienced a substantial increase in share-based compensation expenses, rising to $2,670,588 for the three months ended June 30, 2026, from $489,345 in the prior year.
• Selling, general and administrative expenses increased significantly to $8,685,424 for the three months ended June 30, 2026, from $1,083,093 in the prior year.
• The filing is an amendment to correct errors, indicating potential issues with internal controls and financial reporting accuracy.

Risks

• The company's financial statements contain significant net losses, which could impact its ability to continue as a going concern.
• Changes in the fair value of digital assets, warrant liabilities, and convertible notes can lead to significant fluctuations in financial results.
• The substantial amount of share-based compensation and other expenses could continue to negatively impact profitability.
• Errors in financial reporting, as highlighted by this amendment, may indicate underlying weaknesses in internal controls over financial reporting.

Future Outlook

The filing does not contain specific forward-looking statements or guidance. However, the significant net losses and the need for financial statement amendments suggest a challenging outlook.

Management Comments

• James Manning, CEO, certified that the report does not contain untrue statements of material fact and fairly presents the financial condition and results of operations.
• Timothy Broadfoot, CFO, certified that the report does not contain untrue statements of material fact and fairly presents the financial condition and results of operations.

Industry Context

StockSavvy.ai notes that the significant increase in revenue is a positive sign, but it is overshadowed by the massive net loss and the need to amend previous filings. This suggests potential operational inefficiencies or significant non-operational expenses impacting profitability, which is a concern across many growth-stage technology companies, but the scale of the loss here is particularly alarming.

Corporate Governance

Stakeholder Impact

• Shareholders: The significant net loss and the need to amend financial statements could negatively impact shareholder confidence and stock price. However, the substantial capital raised may provide runway for operations.
• Creditors: The company's ability to service debt may be a concern given the large net losses, although recent capital raises could mitigate this risk in the short term.
• Employees: Continued operational challenges and financial performance could impact employee morale and job security.
• Management: The certifications by management indicate their responsibility for the financial reporting, and the amendment highlights the importance of robust internal controls.

Next Steps

• The company will continue to operate under its current structure, with management certifying the accuracy of its financial reporting.
• Investors will likely scrutinize future filings for improvements in financial performance and the resolution of any internal control weaknesses.

Key Dates

Recommendation

The company is reporting massive net losses, significantly worse than the prior year, and has had to amend its financial statements due to errors. While revenue is growing, the scale of the losses and the reporting issues suggest significant underlying financial and operational challenges that outweigh the positive revenue trend. The substantial capital raises, while providing liquidity, also indicate a need for ongoing funding due to high burn rates.

Keywords

Quarterly Report, Financial Statements, Net Loss, Share-based Compensation, Stockholders Equity, Revenue Growth, Amendment