AIB · BlockchAIn Digital Infrastructure, Inc.

The decrease in revenue stemmed primarily from a shift in customer mix and the impact of standstill agreements with the Company's primary customer, Blue Ridge Digital Mining. These agreements capped energy usage, introduced curtailment credits, and led to a decline in service utilization, reshaping the revenue profile for FY 2025. This dynamic underscores the Company's exposure to key customer dependencies and the need for diversified relationships to stabilize future performance.

While total energy volume billed to customers declined, cost of revenues rose modestly, driven by higher per-unit energy rates in 2025. This mismatch between lower volumes and elevated rates pressured profitability, highlighting the sensitivity of the hosting model to utility cost fluctuations. Management's focus remains on core operations, presenting non-GAAP measures to isolate ongoing business performance from non-recurring items like impairments or transaction costs, which may recur.

Cash management reflects disciplined oversight amid outflows. While balances declined, the Company actively monitors working capital and retains access to internal funding sources, including related party support. Management views the blend of anticipated operating cash flows and this backing as sufficient for obligations and planned expenditures ahead. These resources enable pursuit of capital-intensive growth without immediate liquidity strain.

Non-GAAP presentations aid investor evaluation of core operations, filtering out volatile items. Historical data center buildout costs inform planning but are not forward-looking guides. This approach maintains transparency on strategic shifts toward HPC/AI amid evolving customer needs, balancing near-term pressures with long-term infrastructure investments.