Axe Compute Inc. Annual Report - How They Did This Year

I’ve put together this guide to help you understand how Axe Compute Inc. (formerly Predictive Oncology) performed this year. My goal is to explain their filings in plain English so you can decide if this company fits your investment goals.

1. What does this company do?

Axe Compute is in the middle of a major identity shift. They sold their legacy laboratory business in Alabama and Minnesota for about $1.5 million. Now, they focus entirely on high-performance computing and managing digital assets. The company provides infrastructure by deploying GPU clusters for decentralized cloud computing, specifically within the Aethir (ATH) ecosystem. They are moving from earning clinical service fees to collecting income from compute-as-a-service contracts and the value of their digital assets.

2. Financial performance: The "Transition" reality

The company is in a transition phase. They reported a $12.4 million loss for the 2025 fiscal year. This loss stems from closing old operations and the high cost of buying new GPU hardware.

The biggest takeaway for investors is their aggressive fundraising. Throughout 2025, they raised about $18.5 million by selling stock and issuing $5 million in convertible notes. While this keeps the company running, it causes dilution. This means more shares were issued, reducing your ownership percentage. The number of shares outstanding grew by 42% this year to pay for new hardware.

3. Major wins and challenges

• The Pivot: Selling their lab businesses cut $4.2 million in annual operating costs. They are now a compute company with 450 high-end GPU units.
• Capital Raising: They have been active in securing cash. This prevents a cash crunch, but it shows they are currently losing money on compute services. Right now, electricity and hardware costs are higher than the money they bring in from services.
• Cybersecurity: The Board oversees a strict cybersecurity program. This includes mandatory multi-factor authentication and secure storage for digital assets to protect their compute keys.

4. Financial health: Watch the "Burn Rate"

The company is not yet profitable. They spend about $850,000 more than they earn each month. They rely on selling stock to cover these costs. As an investor, watch their "burn rate"—the speed at which they spend their cash. Because they constantly issue new shares, your ownership percentage can shrink over time. They held $3.2 million in cash as of their last report. This gives them about four months of runway, meaning they will likely need to raise more money soon.

5. Key risks

• Dilution: The frequent sale of stock and warrants is a major risk. With authorized shares increasing by 60% this year, they will likely sell more stock, which puts pressure on the share price.
• Digital Asset Volatility: Their strategy depends on the price of Aethir (ATH). If that asset’s value drops—like the 28% decline in Q3—the company’s balance sheet and borrowing power suffer.
• Operational Risk: They are a small player in a competitive field. Any system failure, outdated hardware, or data breach could ruin their reputation and ability to win new contracts.

6. Future outlook

Leadership is steering the company toward a tech-heavy future. They have a new name and a streamlined model. However, until they prove they can generate consistent profit—specifically by keeping their GPU clusters at least 85% busy—without selling more stock, this remains a high-risk, speculative investment.

Investor Checklist: Before you decide to invest, ask yourself:

• Am I comfortable with the risk of further share dilution?
• Do I believe in the long-term growth of the Aethir (ATH) ecosystem?
• Can I handle the volatility of a company that is currently spending more cash than it generates?