Avax One Technology Ltd.

Good afternoon, everyone, and thank you for participating in today's conference call to discuss AVAX One's financial and operating results for the fourth quarter and full year ended December 31st, 2025. Joining us today are the company's chief executive officer, Jolie Kahn, and chief financial officer, Chris Polamini. By now, everyone should have access to AVAX One's fourth quarter and full year 2025 earnings press release. which was issued earlier this afternoon at approximately 4.05 p.m. Eastern Time. The release is available in the Investor Relations section of the company's website at www.avax-1.com. This call will also be available for webcast replay on the company's website. Following management remarks, we'll open up the call for your questions. Please be advised, this conference call will contain statements that are considered forward-looking statements under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain known and unknown risks and uncertainties, as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements. These forward-looking statements are also subject to other risks and uncertainties that are described from time to time in the company's filings with the SEC. Do not place undue reliance on any forward-looking statements which are being made only as of the date of this call. Except as required by law, the company undertakes no obligation to publicly update or revise any forward-looking statements. For important risks and assumptions associated with such forward-looking statements, please refer to the company's SEC filings. I will now hand the conference over to Jolie Kahn, Chief Executive Officer. Thank you. You may begin.

Jolie Kahn Thank you, Operator, and thank you, everyone, for joining us today. I'm pleased to welcome you all to our first earnings conference call at Davex One Technology. The fourth quarter of 2025 was a transformational period for AVAX-1 as we completed our transition to an avalanche-focused digital asset treasury strategy. While our 2025 results only reflect a partial quarter of this new model, it's worth noting that nearly half of our annual revenue was generated in the fourth quarter following the implementation of this strategy. which we believe validates both the strength of our approach and our ability to execute. We also made meaningful progress in building our AVEX treasury, expanding our staking activities, and establishing the foundation for long-term on-chain yield generation. I'd like to start by briefly sharing my background and why we believe Avalanche is the leading institutional-grade blockchain designed to serve as the foundational digital platform settlement layer for the future of finance. I've spent more than three decades working at the intersection of corporate finance, securities law and emerging financial technologies, advising public companies, institutional investors and hedge funds on complex financings, mergers and acquisitions and public market transactions. In recent years, my work has focused heavily on digital assets and blockchain infrastructure, including serving as general counsel to one of the largest Bitcoin mining companies from 2018 through 2023, and advising multiple public companies in the digital assets industry. That experience across capital markets, regulation, and blockchain technology has given me a comprehensive perspective on where digital finance is headed and why we believe Avalanche represents one of the most important institutional-grade blockchain platforms being built today. That perspective informs our strategy at AvexOne. And before discussing the company specifically, I'd like to step back and highlight the broader transformation underway across digital assets and global financial infrastructure. Digital assets have evolved beyond their early speculative phase and are increasingly being integrated into the financial system as programmable infrastructure for payment settlements and other capital markets activity. One of the clearest examples is the rapid growth of stable coins, which now represent more than $300 billion in circulation, facilitate over $1 trillion in annual transaction volume. At the same time, we are seeing the early stages of a broader transformation in capital markets through the tokenization of real-world assets. Today, approximately $18 billion of assets are tokenized in various blockchains, and institutional participation has accelerated significantly, particularly following the approval of spot Bitcoin ETFs in early 2024. As these trends develop, the capabilities of the underlying blockchain infrastructure become increasingly important. In our view, Avalanche is one of the most compelling platforms supporting the next phase of adoption with sub-second transaction finality and a unique subnet architecture known as the Avalanche Layer 1 that enables institutions to launch fully customizable blockchain environments. This architecture has attracted growing institutional engagement with organizations including Apollo, Citi, Davey Morgan, and KKR exploring tokenization initiatives on Avalanche. This ecosystem continues to expand, supported by a global validator network, hundreds of decentralized applications, and attractive staking economics. At the same time, the regulatory environment is evolving in ways that support broader adoption. recent U.S. legislative initiatives, including the Genius Act and the ongoing work toward the Clarity Act, represent important steps towards establishing clear frameworks for stable coins and digital assets within regulated financial markets. Taken together, these technological, institutional, and regulatory developments reinforce our view that blockchain networks designed for institutional-grade infrastructure will play an increasingly important role in the future of finance. For AVEX I, these are not just industry trends. They are the foundation of the strategy we are building. To strengthen our platform, we've assembled a group of experienced industry leaders and strategic partners with deep expertise across digital assets, capital markets, and institutional finance. Our advisors include Anthony Scaramucci of Skybridge Capital, and Brett Teshpo, head of Coinbase Institutional and former head of digital assets at Barclays. And we are supported by our sponsor, Hive Mind Capital, a leading digital asset investment firm. AVEX One is built around several complementary strategies that enable us to participate directly in the growth of the Avalanche ecosystem while generating long-term shareholder value. The foundation of our model is staking our AVAX tokens, which are in protocol native rewards paid in AVAX, enabling us to compound AVAX per share while maintaining direct exposure to the growth of the avalanche ecosystem. In addition, we are looking to build our proprietary validator infrastructure on avalanche. By operating validator modes, we can become and active participants in securing the network while creating the opportunity to earn delegation fees as other token holders take to our platform. Beyond these network-native revenue streams, we are pursuing a disciplined fintech acquisition strategy focused on identifying established financial platforms that can benefit from migrating elements of their infrastructure onto Avalanche. By bringing financial workflows on-chain, We believe these businesses can achieve faster settlement, improve transparency, and greater scalability while generating cash flow to support continued platform expansion. We are also selectively participating in institutional-grade DeFi opportunities across the Avalanche ecosystem. As an example, early this month, we announced a partnership with Treehouse to expand yield generation on our AVEX holdings deploying more than 800,000 AVEX into its liquid staking infrastructure. This deployment is expected to generate an approximate yield of 6% while providing additional flexibility to participate in broader on-chain financial activity. We believe these initiatives position AVEX 1 as a unique public market platform for participating in the growth of Avalanche and the broader expansion of on-chain finance. Looking ahead, we are... entering 2026 with a fundamentally transformed operating model following the launch of our AVAX digital asset treasury strategy in November 2025. While last year reflected a transitional period, we saw meaningful momentum in the fourth quarter and we're optimistic for what the year ahead holds for our business. With that, I will now turn the call over to Chris Palamini, our CFO, to review our fourth quarter financial results. Chris?

Thank you, Julie. As a quick reminder, as we review our fourth quarter 2025 financial results, all comparisons and variance commentary referred to the prior year quarter unless otherwise specified. Total revenue for the fourth quarter of 2025 increased materially to $1.1 million compared to approximately $27,000 in the prior year fourth quarter. Driven by the implementation of our new Avalanche digital asset treasury strategy, which generated approximately $607,000 in staking rewards in Q4-25, coupled with a full quarter of Bitcoin mining in 25, which generated approximately $480,000 in revenue. Total operating expenses in Q4-25 were $16.8 million compared to $2.1 million in Q4-24. This increase was primarily driven by a $7.8 million non-cash unrealized loss on the market value of our digital assets, as well as a $5.6 million non-cash impairment related to intellectual property related to a patent for fiber-rich flour we purchased in 2021. Excluding these non-cash charges, operating expenses for the fourth quarter of 25 were 3.4 million. It's worth noting that the previously mentioned 3.4 million includes approximately 500,000 of certain one-time costs related to the pipe financing and strategic transformation implemented in the fourth quarter. These costs included items such as legal and professional fees, as well as severance to former employees. Net loss for the fourth quarter of 25 was $16.6 million, or $4.11 per diluted share, compared to a net loss of approximately $1.9 million, or $12.69 per diluted share in Q4 of 24. As of December 31st, 2025, Our cash and cash equivalents were 22.1 million compared to 490,000 as of 12-31-24. We believe this cash balance provides us with approximately three years of operating runway without the need to raise any external capital. As of December 31st, 25, the last day of the fourth quarter, we held 13.9 million Avalanche tokens with a net value of $133.3 million as of March 26, 2026. Since the inception of our digital asset treasury strategy in November 25, we have generated approximately $2.5 million of AVAX tokens in staking rewards, which represents an annualized yield of approximately 5.5%. Looking ahead, we'll maintain a prudent approach to capital allocation. In November, our board authorized a $40 million share repurchase program. And through today, we've repurchased approximately 3.3 million shares. We continue to believe our shares are trading at a meaningful discount to the intrinsic value of the business and view that as an attractive opportunity to deploy capital. We've been opportunistic with these repurchases and expect to remain disciplined in how we allocate capital going forward. balancing share buybacks with continued investment in Avalanche accumulation and staking initiatives with the goal of maximizing long-term Avalanche per share and overall shareholder value. We expect the full-year benefit of Avalanche token accumulation and staking to meaningfully scale our revenue profile and drive positive EBITDA in 2026 under current marketing additions. Our guidance, reflects a material improvement in both revenue and profitability supported by disciplined capital deployment and a structure designed to generate operating leverage across a range of digital asset price scenarios. Importantly, our model is designed to generate consistent operating cash flow through staking and related activities, allowing us to fund operations without the need to liquidate any digital asset holdings. This concludes our prepared remarks. We will now open it up for questions from the participants on the call. Operator, back to you.