0001493152-26-012943
SEC filingChaince Digital Holdings Inc. reported a net loss of $5.1 million for FY 2025, an increase from a $4.5 million loss in FY 2024. Total revenue from continuing operations (financial services and advisory businesses) grew 278% year-over-year to $1.9 million, driven by expansion in IPO-related advisory, industry consulting, and PIPE advisory services. Gross profit improved to $1.2 million with a gross margin of 64.31%, up from 47.45% in the prior year, reflecting a favorable revenue mix shift. However, operating losses from continuing operations widened to $3.8 million due to increased general and administrative expenses related to business expansion. The company strengthened its liquidity position, ending the year with $33.8 million in cash and cash equivalents, primarily from $13.4 million in net financing proceeds. Management has discontinued its Filecoin mining operations, which are now classified as discontinued operations, resulting in a $2.8 million loss for the year.
Chaince Digital Holdings Inc. reported a net loss of $5.1 million for the fiscal year ended December 31, 2025, compared to a net loss of $4.5 million in the prior year. Revenue from continuing operations (financial services and advisory businesses) increased significantly to $1.87 million, up 278% from $0.49 million in FY 2024. Gross profit improved to $1.2 million with a gross margin of 64.31%, up from 47.45% in the prior year. However, operating losses from continuing operations widened to $3.8 million from $2.0 million, primarily due to increased general and administrative expenses related to business expansion. The company's discontinued Filecoin mining operations contributed a loss of $2.8 million for the year.
Revenue is derived entirely from financial services and advisory businesses, which grew 278% year-over-year to $1.87 million. The revenue composition for FY 2025 was diversified: Industry Advisory & Consulting services ($755,740), IPO-related financial advisory and consulting services ($626,052), PIPE advisory and placement-related services ($321,036), Transaction execution and brokerage services ($90,450), Clearing-related brokerage services ($37,592), and other services ($36,198). This represents a significant expansion from FY 2024, where revenue was concentrated primarily in IPO-related advisory services ($448,525) and referral services ($45,500). The growth was driven by higher volume of advisory engagements and the introduction of PIPE advisory services.
Gross margin improved significantly to 64.31% in FY 2025 from 47.45% in FY 2024, reflecting a shift in revenue mix toward higher-margin advisory and consulting services. Cost of revenue increased 157% to $666,358, consistent with higher transaction volume and personnel costs. Operating expenses totaled $5.0 million, including general and administrative expenses of $4.2 million (up 99% year-over-year), sales and marketing expenses of $160K (up 59%), research and development expenses of $147K (new in 2025), and other operating items. The operating loss from continuing operations was $3.8 million, compared to $2.0 million in the prior year.
Net cash used in operating activities was $2.4 million in FY 2025, an improvement from $3.6 million used in FY 2024. Net cash used in investing activities was $1.2 million, primarily for purchases of digital assets and short-term investments. Net cash provided by financing activities was $13.4 million, primarily from equity financing of $17.8 million, partially offset by convertible note repayments. Cash and cash equivalents increased by $9.8 million to $33.8 million at year-end. Total assets were $46.6 million, with current assets of $45.2 million. Total liabilities were $2.6 million, resulting in shareholders' equity of $44.0 million.
Management's primary objective for the next one to two years remains focused on the financial services sector, with goals of expanding the customer base, growing revenue, narrowing operating losses, and working toward profitability. The company has discontinued its Filecoin mining operations and is winding down these activities, with remaining mining nodes expected to expire by April 30, 2026. Key risk factors include limited operating history in financial services, revenue concentration from a limited number of clients, high competition in the financial advisory industry, and dependence on capital markets activity. The company maintains a limited presence in mainland China through its subsidiary Chaince (Shenzhen) Consulting Co., Ltd., which did not generate revenue in 2025.