10-Q: Aeternum Health Shifts Focus to Longevity Post-Merger

Aeternum Health, Inc. (formerly Shorepower Technologies Inc.) reports a significant revenue decline and net loss for Q1 2026, while preparing to divest its EVSE business and pivot to healthcare with the acquisition of Aeternum Health LLC.

Summary

• Aeternum Health, Inc. reported total revenue of $2,260 for the three months ended March 31, 2026, a substantial decrease of 98.6% from $164,657 in the same period of 2025.
• The company incurred a net loss of $139,655 for Q1 2026, a reversal from a net income of $5,891 in Q1 2025.
• Operating expenses increased by 45.1% to $37,292 in Q1 2026 from $25,695 in Q1 2025, primarily due to higher general and administrative costs.
• Interest expense rose by 19.4% to $20,106 in Q1 2026 from $16,840 in Q1 2025, attributed to related party loans.
• The company is undergoing a significant strategic shift, merging with Aeternum Health LLC to focus on healthcare, specifically longevity and anti-aging solutions, and will divest its transportation electrification business.
• The merger is expected to close in Q2 2026, with Jeff Kim resigning as CEO and Paul Mann of Aeternum Health LLC taking over as President, CEO, and sole director.
• As part of the merger consideration, Aeternum Health LLC will contribute at least $1.5 million in cash, intellectual property, and a commercialization business.
• The company's cash balance increased to $19,156 as of March 31, 2026, from $15,374 as of December 31, 2025.
• The company's disclosure controls and procedures were not effective as of March 31, 2026.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this filing as negative due to the severe revenue decline, net loss, and operational challenges in the legacy business, despite the strategic pivot towards a potentially high-growth healthcare sector.

Positives

• The company has a cash balance of $19,156 as of March 31, 2026, an increase from $15,374 at the end of 2025.
• The company is actively pursuing a strategic pivot into the healthcare sector with a focus on longevity and anti-aging solutions through the acquisition of Aeternum Health LLC.
• The merger with Aeternum Health LLC is expected to bring at least $1.5 million in cash and valuable intellectual property into the company.
• The company has increased its authorized shares from 100 million to 250 million to facilitate the upcoming merger.
• The company's management team has experience in government contracts and grant funds deployment.

Negatives

• Total revenue for Q1 2026 decreased by 98.6% to $2,260 compared to $164,657 in Q1 2025.
• The company reported a net loss of $139,655 for Q1 2026, a significant downturn from a net income of $5,891 in Q1 2025.
• Gross margin turned negative at ($11,977) in Q1 2026, compared to a positive $125,352 in Q1 2025.
• Operating expenses increased by 45.1% in Q1 2026.
• The company has a negative working capital of $1,158,363 as of March 31, 2026.
• The company has an accumulated deficit of $3,417,796 as of March 31, 2026.
• The company's disclosure controls and procedures were found to be not effective as of March 31, 2026.

Risks

• The company's ability to continue as a going concern is subject to substantial doubt due to its cash balance, negative working capital, and accumulated deficit.
• The significant decline in revenue and net loss raise concerns about the operational viability of the existing business.
• The success of the merger with Aeternum Health LLC is contingent on customary closing conditions, including the receipt of audited financial statements.
• The company's future prospects are subject to risks and uncertainties that may cause actual results to differ materially from forward-looking statements, including economic conditions, legislative/regulatory changes, availability of capital, and competition.
• The company has no off-balance sheet arrangements that are material to investors.

Future Outlook

The company is undergoing a significant transformation, divesting its current transportation electrification business to focus on healthcare, specifically longevity and anti-aging solutions, through the merger with Aeternum Health LLC. The merger is anticipated to close in Q2 2026. The company's future financial performance will be heavily dependent on the success of this strategic pivot and the integration of Aeternum Health's assets and business.

Management Comments

• "Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report."
• "Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report."
• "All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information."
• "Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting."

Industry Context

StockSavvy.ai notes that Aeternum Health's strategic pivot from transportation electrification to healthcare (longevity and anti-aging) reflects a broader trend of companies seeking to capitalize on high-growth sectors. The decline in its legacy EVSE business revenue is significant, underscoring the need for this strategic shift. The success of this transition will be critical for the company's future valuation and market position.

Comparison to Industry Standards

• The revenue decline of 98.6% in Q1 2026 is exceptionally steep and far below typical performance for companies in the transportation electrification sector, which has generally seen growth.
• The net loss of $139,655 and negative gross margin in Q1 2026 indicate significant operational challenges in the legacy business, contrasting with the growth trajectories of many established EVSE providers.
• The company's focus on longevity and anti-aging solutions places it in a rapidly growing but highly competitive healthcare sub-sector. Benchmarking against companies like Elysium Health or Juvenescence would be relevant once the new business is operational and reporting financials.

Management Changes

Corporate Governance

Legal Proceedings

• None disclosed in the filing.

Related Party Transactions

• Accounts payable to related parties were $53,519 as of March 31, 2026.
• Accrued officer compensation to related parties was $556,668 as of March 31, 2026.
• Accrued interest to related parties was $232,853 as of March 31, 2026.
• Notes payable to related parties (net of current portion) totaled $919,678 as of March 31, 2026.
• Interest expense of $20,106 was incurred in Q1 2026 related to loans from Jeff Kim.
• Jeff Kim has accrued compensation of $566,668 as of March 31, 2026, with salary payments deferred.
• Jeff Kim has paid for some operating expenses on behalf of the company, with amounts payable to him totaling $53,519 as of March 31, 2026.
• On February 17, 2026, the Company sold 500,000 shares of common stock to Jeff Kim for $7,500.
• On March 16, 2026, the Company sold 100,000 shares of common stock to Jeff Kim for $5,000.
• On February 17, 2026, the Company sold 500,000 shares of common stock to EROP Enterprises, LLC for $7,500.
• On March 16, 2026, the Company sold 400,000 shares of common stock to EROP Enterprises, LLC for $20,000.
• Jeff Kim is entitled to receive additional common stock upon achievement of certain milestones related to the March 22, 2023 merger.

Stakeholder Impact

• Shareholders: The significant revenue decline and net loss negatively impact shareholder value in the legacy business. The strategic shift to healthcare offers potential for future growth, but carries inherent risks. The issuance of shares for the merger will dilute existing shareholders.
• Employees: The divestiture of the transportation electrification business may lead to workforce reductions or changes.
• Creditors: The company's negative working capital and going concern issues may raise concerns for creditors regarding repayment of outstanding debts.
• Management: Jeff Kim is set to resign as CEO upon the merger's completion, with Paul Mann taking over.

Next Steps

• Complete the merger with Aeternum Health LLC, expected in Q2 2026.
• Divest the existing transportation electrification business.
• Shift focus to healthcare, specifically longevity and anti-aging solutions.
• Appoint Paul Mann as President, CEO, and sole director upon merger closing.
• Jeff Kim to resign as CEO and sole director upon merger closing.

Key Dates

Recommendation

The company is in a transitional phase with a severely underperforming legacy business and a pivot to a new sector. While the strategic shift to healthcare and the injection of capital from the merger are positive, the significant revenue decline, net loss, and going concern issues warrant caution. A 'hold' recommendation reflects the uncertainty and the need to observe the execution of the new strategy and the performance of the acquired business before considering a more definitive stance.

Keywords

Aeternum Health, 10-Q, Quarterly Report, SEC Filing, Longevity, Anti-aging, Healthcare, Merger, Shorepower Technologies, EVSE, Transportation Electrification, Financial Results, Net Loss, Revenue Decline