SharonAI Holdings Inc. Annual Report - How They Did This Year

I’ve put together this guide to help you understand how SharonAI Holdings Inc. (ticker: SHAZ) performed this year. My goal is to break down their latest filings so you can decide if this company fits your portfolio.

1. What does this company do?

Think of SharonAI as a high-tech "landlord" for the AI boom. They rent space in secure data centers and fill them with over 4,500 high-powered NVIDIA GPUs. They provide the "computing muscle" companies need to train AI models. They recently shifted to a "pure-play" model, meaning they focus entirely on renting out computing power rather than building and owning physical data center buildings.

2. Financial health: The "Spend to Grow" Phase

The company is currently in a "burn cash to build" mode. They aren't profitable yet, and their losses grew from $3.9 million in 2024 to $39.6 million in 2025.

Why the jump?

• Heavy Investment: They spent $82 million on software and networking gear in 2025 to prepare for future growth.
• Financing Costs: $26 million of their loss comes from accounting adjustments for convertible notes. These are "paper losses" that don't involve actual cash leaving the bank.
• Revenue Growth: Revenue is growing. They brought in $1.57 million in 2025, up from $438,000 in 2024. This 258% increase shows more customers are using their cloud services.

3. Major wins & Changes

• Leadership Shakeup: In January 2026, James Manning became CEO. His background in cloud operations signals a new focus on efficiency.
• NASDAQ Listing: They listed on the NASDAQ in February 2026, raising $125 million to fund expansion and pay off high-interest loans.
• Strategic Pivot: They sold their stake in a Texas data center for $70 million. This helps them avoid the risks of owning physical real estate and lets them focus on scaling their cloud business.

4. Key risks: What could go wrong?

• Supply Chain & Obsolescence: They must constantly buy the latest NVIDIA chips. If they can’t get them, or if the technology becomes outdated, their hardware loses its competitive edge.
• Rising Costs: Power and rent fees are rising. Energy costs now make up 35% of their total operating expenses.
• "Small Company" Status: As an "Emerging Growth Company," they don't have to follow all strict financial reporting rules, which results in less transparency regarding internal operations.
• Governance & Control: They use a "dual-class" stock structure. Founders hold shares with 10 votes each, while your shares get only one vote. Insiders control over 60% of the voting power.
• Dilution: With $103 million in convertible notes, there is a high chance more shares will be issued. If the stock hits $15.00, these notes convert into stock, which reduces your ownership percentage by 12-15%.

5. Future outlook

Management is betting everything on the AI boom. They are building the foundation to capture more customers, but there is no guarantee they will ever become profitable. They don't plan to pay dividends, as they want to reinvest all cash into buying more GPUs. Your only way to make money is if the stock price rises.

Investor Takeaway: This is a high-risk, speculative investment. Before buying, ask yourself if you are comfortable with a company that prioritizes aggressive hardware expansion over current profitability and uses a dual-class share structure that limits your voting influence.