Sharonai Holdings — Income Statement, Cash Flows & Balance Sheet
Is SharonAI profitable?
SharonAI is not profitable — and losses exploded in 2025, driven largely by the accounting treatment of its new convertible notes.
| Item | 2024 | 2025 | Change |
|---|---|---|---|
| Revenue | $438,292 | $1,566,631 | +258% |
| Gross Profit (Loss) | $(281,701) | $100,807 | Turned positive |
| SG&A Expenses | $2,368,745 | $12,116,600 | +412% |
| Change in Fair Value of Convertible Notes | — | $(26,030,635) | New in 2025 |
| Net Loss | $(3,923,998) | $(39,815,021) | -914% |
| Loss per Share (basic & diluted, GAAP) | $(0.77) | $(4.04) | -424% |
Revenue tripled and the company finally turned gross-profit positive, which signals the core GPU-as-a-service business is gaining traction. However, the headline net loss is dominated by a $26 million non-cash charge — the mark-to-market write-down on newly issued convertible notes — plus a massive jump in operating expenses as the company scaled up and completed its public listing. Strip out the convertible-note fair-value hit and the operational loss still widened sharply.
A large one-time, non-cash item distorts the true operating picture — but operating losses are still substantial.
| Item | 2024 | 2025 | Change |
|---|---|---|---|
| Loss from Operations | $(4,029,985) | $(13,785,941) | -242% |
| Change in Fair Value of Convertible Notes (non-cash) | — | $(26,030,635) | New |
| Share-Based Compensation (non-cash) | $253,728 | $1,761,785 | +595% |
Even setting aside the convertible-note fair-value loss entirely, the operational loss more than tripled year-over-year, largely because SG&A and share-based compensation surged alongside the costs of going public and building out infrastructure. The business is still in a heavy investment phase.
Does SharonAI generate cash?
SharonAI does not yet generate cash from its operations, but a massive convertible-note raise flooded the balance sheet with liquidity.
| Cash Flow Item | 2024 | 2025 | Change |
|---|---|---|---|
| Cash from Operations | $(2,205,993) | $(2,638,947) | Worsened slightly |
| Cash from Investing | $(3,036,503) | $(13,805,595) | Worsened sharply |
| Cash from Financing | $10,023,764 | $83,044,339 | +729% |
| Net Change in Cash | $4,424,601 | $66,648,219 | +1,406% |
| Ending Cash | $4,424,805 | $71,073,024 | +1,506% |
The business consumed cash in both operations and investing — the latter driven by over $10 million in equipment purchases as SharonAI builds out its GPU infrastructure. The dramatic rise in ending cash is entirely due to $89 million raised through convertible notes, not from the business earning money. Free cash flow (operating cash minus capital expenditures) was roughly negative $13.6 million.
How strong is SharonAI's balance sheet?
SharonAI is technically insolvent on paper — its liabilities exceed its assets, primarily because of $129 million in convertible notes issued just days before year-end.
| Item | Dec 31, 2024 | Dec 31, 2025 | Change |
|---|---|---|---|
| Total Assets | $32,146,452 | $133,140,150 | +314% |
| Convertible Notes | — | $129,017,286 | New |
| Total Liabilities | $2,237,506 | $143,288,407 | +6,304% |
| Total Stockholders' Equity (Deficit) | $29,908,945 | $(10,148,257) | Flipped negative |
| Cash & Equivalents | $4,424,805 | $71,073,024 | +1,506% |
The company ended 2025 with negative book equity (meaning liabilities exceed assets), which is a red flag on its face. However, the driver is almost entirely the $103+ million convertible note issuance in December 2025 — recorded at fair value of $129 million — which also funded most of the $71 million cash on hand. In February 2026, a subsequent $125 million Nasdaq IPO provided additional capital. The near-term liquidity picture is far better than the year-end balance sheet alone suggests, but the debt load is significant and the company has yet to demonstrate it can fund itself through operations.