AVANT TECHNOLOGIES INC. SEC 10-K Report

Avant Technologies Inc., a technology company specializing in artificial intelligence (AI) and information technology consulting services, has released its Form 10-K report for the fiscal year ended March 31, 2025. The report provides a comprehensive overview of the company's financial performance, business operations, strategic initiatives, and the challenges it faces in the evolving AI industry.

Financial Highlights

• Revenue: $0 million. The company did not generate revenue during the fiscal years ended March 31, 2025, and 2024.
• Operating Expenses: $1.53 million. Total operating expenses for the year ended March 31, 2025, decreased by 28% compared to the previous year, primarily due to lower employee and contractor compensation.
• Net Income (Loss): $(1.14) million. Net losses for 2025 decreased by 46% compared to 2024, mainly due to a decrease in operating expenses and an increase in other income.
• Net Loss Per Share (Basic and Diluted): $(0.01). The weighted average number of shares outstanding increased, contributing to the per-share loss reduction.

Business Highlights

• Business Overview: Avant Technologies Inc. specializes in acquiring, creating, and developing innovative and advanced technologies utilizing AI. The company provides a range of information technology consulting services and considers itself a native expert in AI-based information technology.
• Key Acquisitions: The company has made significant acquisitions, including Avant! AI and Instant Fame, which enhance its capabilities in full-stack software development, database management, data integration, project management, and cloud services.
• AI Technology Development: Avant Technologies focuses on providing AI solutions that transform businesses and positively impact society. The company leverages unsupervised learning techniques to improve data efficiency and create self-sustained systems that prepare data from unlabeled information.
• Name and Symbol Change: On July 19, 2023, the company changed its name to Avant Technologies Inc. and its trading symbol to AVAI on the OTC Markets. This change does not affect the rights of the company's security holders.
• Asset Purchase Agreements: In 2023, Avant Technologies entered into asset purchase agreements to acquire Avant! AI and Instant Fame assets, which include proprietary systems and methods for text generation and digital rating systems.
• Joint Venture with Ainnova Tech Inc.: In November 2024, Avant Technologies entered into a joint venture and license agreement with Ainnova Tech Inc. to form Ai-Nova Acquisition Corp, focusing on healthcare AI solutions for early disease detection through retinal scans.
• Operational Challenges: The company has incurred recurring losses and has not generated revenue during the fiscal years ended March 31, 2025, and 2024. It faces substantial doubt about its ability to continue as a going concern.
• Future Outlook: Avant Technologies plans to raise additional capital to meet long-term operating requirements and aims to leverage its AI technology to empower organizations and improve performance across various domains.

Strategic Initiatives

• Strategic Initiatives: Avant Technologies Inc. has undertaken several strategic initiatives to enhance its technological capabilities and market presence. The company acquired Avant! AI and InstantFAME, along with assets from Wired4Health, Inc., to bolster its AI and IT consulting services. Additionally, Avant entered into a Joint Venture and License Agreement with Ainnova Tech Inc. to form Ai-Nova Acquisition Corp, focusing on healthcare AI solutions. These initiatives aim to leverage AI technology to transform businesses and impact society positively.
• Capital Management: The company has been actively managing its capital through various financing activities. It raised $1,241,382 through capital stock issuance and loans from related parties. Avant also issued convertible notes and preferred stock to finance acquisitions and operations. The company increased its authorized shares of common stock to 500,000,000 and preferred stock to 20,000,000, facilitating future capital raising activities. Additionally, Avant has been converting debt into equity to manage its liabilities, including the conversion of accounts payable and notes payable into common and preferred shares.
• Future Outlook: Avant Technologies Inc. plans to continue its strategic focus on AI-driven solutions and expand its market reach through acquisitions and partnerships. The company anticipates requiring additional capital to meet long-term operating requirements and intends to raise funds through equity or debt securities. Avant aims to stabilize its revenue streams and achieve a profitable level of operations, despite the current going concern uncertainty. The company is also exploring opportunities for further capital investment to support its growth initiatives.

Challenges and Risks

• Limited Operating History: The company’s limited operating history in an evolving industry increases the risk of unsuccessful business outcomes.
• Profitability Challenges: The company has not achieved profitability and continues to incur net losses, with a net loss of $1,142,115 for the year ended March 31, 2025.
• Cash Flow Uncertainty: The company has not generated positive cash flow from operations and relies on equity and debt financing, which may not be available on favorable terms.
• Capital Requirements: Additional capital is required to support business growth, and failure to secure it could impair business operations.
• Dependence on Key Personnel: The success of the company is highly dependent on attracting and retaining key personnel.
• Market Risks: There is a limited public market for the company’s common stock, which could affect stock liquidity and value.
• Internal Controls: Ineffective internal controls could harm financial reporting and investor confidence.
• Cybersecurity and Governance Gaps: Lack of a formal enterprise risk management program and cybersecurity oversight increases exposure to risks.
• Management’s Discussion and Analysis: Management acknowledges the challenges of operating in a rapidly evolving industry with limited historical data to guide future business decisions. The company plans to address these challenges by focusing on innovative AI solutions and strategic acquisitions. However, the need for additional capital and the uncertainty of achieving profitability remain significant concerns. The company’s financial condition is precarious, with a working capital deficit and ongoing net losses.
• Market Risk Disclosures: The company is exposed to market risks, including volatility in the trading price of its common stock due to its listing on the OTC QB marketplace. This volatility may be exacerbated by low trading volumes and the speculative nature of the company’s business operations.

SEC Filing: AVANT TECHNOLOGIES INC. [ AVAI ] - 10-K - Jul. 08, 2025