World Liberty Financial Token Drops by a Third as AI Financial Reports $271 Million Net Loss

TLDR

• AI Financial Corp. reported a net loss of $271.5 million in Q1 2026, with the decline almost entirely driven by falling WLFI token values.
• The firm currently holds 7.28 billion WLFI tokens valued at $706.4 million, down from their original cost basis of $1.46 billion.
• A going concern warning was filed, citing a $5.5 million working capital deficit and just $10.5 million in cash on hand.
• All 7.28 billion WLFI tokens remain locked under contractual restrictions, limiting the company’s ability to raise cash.
• AIFC stock dropped nearly 6.3% on Tuesday and has fallen roughly 87.5% over the past 12 months.

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(SeaPRwire) –   AI Financial Corp., previously known as ALT5 Sigma, has submitted a going concern warning to the SEC after its World Liberty Financial token holdings lost one-third of their value in the first quarter of 2026.

In August 2025, the company purchased 7.28 billion WLFI tokens for approximately $1.46 billion, at a rate of $0.20 per token. By March 28, 2026, those tokens were valued at just $706.4 million.

This drop led to an unrealized loss of $348.3 million in Q1 alone. Combined with other expenses, AI Financial reported a net loss of $271.5 million for the 13 weeks ending March 28—compared to a $2.4 million loss during the same period the previous year.

The company’s operating revenue was $4.7 million, all generated from its fintech processing business.

Cash Reserves Dwindling

Cash on hand stood at $10.5 million at the end of the quarter. Around $3.5 million of this amount was already reserved for a pending legal matter. Total current liabilities of $39.1 million exceeded current assets of $32.2 million.

The company acknowledged these figures “raise substantial doubt” about its ability to continue as a going concern over the next 12 months.

To cover near-term costs, AI Financial borrowed $15 million from World Liberty Financial in January 2026, netting $14.2 million after fees. The loan carries a 4.5% annual interest rate and is collateralized by WLFI tokens.

Tokens Still Locked

Despite holding tokens worth hundreds of millions on paper, AI Financial cannot easily sell them. All 7.28 billion WLFI tokens are locked under contractual terms. One tranche of 3.53 billion tokens cannot be transferred for 12 months. The remaining 3.75 billion require shareholder approval and a completed resale registration before they can be moved.

WLFI holds roughly 46% of AI Financial’s fully diluted equity, making it both a lender and a major shareholder.

Zachary Witkoff, chairman of AI Financial, is also a co-founder and CEO of WLFI. Board member Zachary Folkman is another co-founder of WLFI.

The company has since acquired Block Street Corp. and signed a letter of intent to purchase Dectec, a decentralized technologies firm.

Following the disclosure, AIFC stock traded around $0.91 on Tuesday, down roughly 9.6% on the day. The stock has fallen approximately 87.5% over the past 12 months.