AGPU · Predictive Oncology Inc.

Axe Compute Inc. reported first quarter 2026 results reflecting the early stages of its transformation into a virtual neocloud AI infrastructure platform. Revenue of $35,311 was predominantly from legacy drug discovery services, as compute services contributed only $7,000 from initial contracts that commenced late in the quarter. Operating expenses rose to $3.5 million, driven by a one-time CEO severance charge and increased professional fees tied to the company's digital asset treasury strategy. The net loss of $7.7 million, or $0.36 per share, included a significant non-cash mark-to-market loss of $4.3 million on ATH digital asset holdings, reflecting the token's price decline during the period. The quarter's pivotal event occurred after period-end: the signing of a $260 million, 36-month take-or-pay contract for a dedicated GPU cluster. This landmark deal, the largest in company history, is expected to deploy in Q3 2026 and generate approximately $21 million in revenue per quarter once live, dramatically scaling the company's financial profile. CEO Christopher Miglino emphasized that the contract validates the platform's commercial potential and that the sales pipeline exceeds $4 billion, with a goal of $1 billion in new agreements by year-end. To support this growth, the company strengthened its leadership, appointing Kyle Okamoto as President for commercial strategy and Jeremy Yaukey-Witter as CFO to oversee the financial transition to a revenue-generating enterprise. Liquidity remained robust, with a combined $36.5 million in cash, liquid digital assets, and current digital asset receivables as of March 31, 2026. While operating cash burn increased to $3.7 million due to working capital needs, management believes this position is sufficient to fund operations through fiscal 2026 and beyond, though subject to digital asset price volatility. Looking ahead, the company is focused on deploying the contract cluster, expanding the sales team, evaluating strategic alternatives for its legacy drug discovery business, and pursuing ATH staking yield. The execution of the $260 million contract will be a critical milestone in converting pipeline opportunities into contracted, recurring revenue.