Alset AI Ventures reports Q3 2026 results; $4.1M unrealized investment gain

Alset AI Ventures Reports Fiscal Q3 2026 Results, Including $4.1 Million Unrealized, Non-Cash Investment Gain

Non-cash revaluation of Lyken.AI drives $3.6 million in quarterly comprehensive income as total assets increase 82.7% to $9.4 million

VANCOUVER, BC / ACCESS Newswire / August 31, 2026 / Alset AI Ventures Inc. (TSXV:GPUS)(OTCQB:GPUSF)(FSE:1R61, WKN:A40M0J) ("Alset AI", "Alset" or the "Company"), an investment issuer focused on the technology industry, including artificial intelligence ("AI"), is pleased to report its unaudited financial results for the three and nine months ended June 30, 2026 ("Fiscal Q3 2026"). All amounts in this release are expressed in Canadian dollars unless otherwise indicated. The condensed interim financial statements were prepared by management in accordance with IFRS applicable to interim financial reporting and have not been reviewed by the Company's auditor.

Alset reported income and comprehensive income of $3,606,599 for Fiscal Q3 2026, compared with a loss and comprehensive loss of $4,288,289 in the same quarter of the prior year. The result was driven by a $4,109,577 net investment gain, consisting primarily of unrealized fair value increases in the Company's investment portfolio, together with a 59.6% year-over-year reduction in quarterly general expenses.

"Fiscal Q3 reflects the value creation achieved within our investment portfolio, particularly at Lyken.AI," said Adam Ingrao, Chief Executive Officer of Alset AI. "The increase in Lyken.AI's carrying value was derived from pricing established through a third-party transaction with FingerMotion that subsequently closed after quarter-end. Together with lower quarterly general expenses, the portfolio revaluation contributed to $3.6 million of comprehensive income and a 68% increase in shareholders' equity since fiscal year-end. We remain focused on actively managing our portfolio, supporting the growth of our investee companies and pursuing opportunities capable of creating long-term value for Alset shareholders."

Fiscal Q3 2026 Financial Highlights

• Income and comprehensive income was $3.61 million, or $0.20 per basic share and $0.19 per diluted share, compared with a loss and comprehensive loss of $4.29 million, or $0.29 per basic and diluted share, in Fiscal Q3 2025.

• Net investment gain was $4.11 million, compared with a net investment loss of $2.91 million in the comparative quarter. This gain is unrealized and non-cash, and generated no cash proceeds to the Company. The net change in unrealized gains on investments was $4.14 million, driven almost entirely by a $4.14 million unrealized, non-cash increase in the carrying value of the Company's investment in Lyken.AI, based on pricing from a third-party transaction that closed after quarter-end. The carrying value is based on unaudited management estimates and has not been reviewed or confirmed by the Company's auditors. There is no assurance that the Company will be able to realize on its investment at the carrying value, or at all, and the amount ultimately realized may be materially less than the carrying value.

• General expenses decreased 59.6% to $526,405 from $1,301,831, reflecting lower consulting and management fees, investor relations and marketing costs, office costs and professional fees, partly offset by share-based payments.

• During the quarter, the Company acquired a $1.31 million Chaco Minerals convertible debenture in exchange for $1.30 million of loans receivable from Lyken.AI; no cash was received.

		Three months ended June 30, 2026			Three months ended June 30, 2025			Nine months ended June 30, 2026			Nine months ended June 30, 2025
Net change in unrealized gain (loss) on investments		$	4,137,223			$	(2,841,825	)		$	4,175,590			$	(2,920,630	)
Net investment gain (loss)		$	4,109,577			$	(2,909,731	)		$	4,110,342			$	(2,611,489	)
General expenses		$	526,405			$	1,301,831			$	3,149,995			$	3,588,982
Income (loss) and comprehensive income (loss)		$	3,606,599			$	(4,288,289	)		$	1,032,184			$

Portfolio and Balance Sheet Highlights

As at June 30, 2026, total assets were $9,439,171, an increase of $4,272,709, or 82.7%, from $5,166,462 at September 30, 2025. The Company's investment portfolio increased to $8,824,551 from $3,333,048 over the same period, with Lyken.AI representing approximately 78.6% of the portfolio's carrying value, while shareholders' equity increased 67.9% to $7,365,273.

		June 30, 2026			September 30, 2025			Change
Total assets		$	9,439,171			$	5,166,462				+82.7	%
Investment portfolio		$	8,824,551			$	3,333,048				+164.8	%
Investment in Lyken.AI		$	6,936,417			$	2,800,000				+147.7	%
Investment in Chaco		$	1,306,888				-				+100.0	%
Shareholders' equity		$	7,365,273			$	4,386,328

Nine-Month Results

For the nine months ended June 30, 2026, Alset recorded income and comprehensive income of $1,032,184, or $0.06 per basic and diluted share, compared with a loss and comprehensive loss of $6,093,699, or $0.49 per basic and diluted share, in the comparative period. Net investment gain for the nine-month period was $4,110,342, compared with a net investment loss of $2,611,489 in the prior-year period. General expenses for the nine-month period were $3,149,995, a decrease of 12.2% from $3,588,982, with the majority of the reduction occurring in the fiscal third quarter.

Chaco Debenture Investment

As previously announced on May 6, 2026, the Company entered into an assignment and assumption agreement with Lyken.AI under which it acquired a 3.0% convertible debenture issued by 1000175307 Ontario Ltd., doing business as Chaco Minerals Ltd. ("Chaco"), with a principal amount of $1,248,000. Consideration for the assignment was the extinguishment of $1,301,077 of loans receivable from Lyken.AI. No cash was received by the Company on the assignment.

As at June 30, 2026, the Company evaluated the fair value of the Chaco debenture to be $1,306,888, comprising the assigned value of $1,301,077 together with $5,811 of interest accrued after the assignment. The debenture bears interest at 3.0% per annum, matures on December 9, 2026 and is convertible into units of Chaco at $0.10 per unit, with each unit comprising one Chaco common share and one warrant exercisable at $0.10 per share for 36 months from issuance. Further detail is set out in Note 4 to the financial statements.

Lyken.AI Valuation

The Company evaluated the fair value of its investment in Lyken.AI at June 30, 2026 at $6,936,417 (September 30, 2025 - $2,800,000), recording an unrealized gain of $4,136,417. The valuation was derived from the consideration receivable under a share purchase agreement entered into on August 12, 2026, under which the Company agreed to sell a 9.9% interest in Lyken.AI to FingerMotion, Inc. for $686,705, to be satisfied by the issuance of 1,674,480 common shares of FingerMotion. The valuation applies the Nasdaq official closing price of FingerMotion common shares of US$0.29 on August 11, 2026 and a U.S./Canadian dollar exchange rate of 1.42. As the valuation uses inputs other than a quoted price for Lyken.AI itself, it is classified as Level 2 of the fair value hierarchy.

These inputs were observed after the June 30, 2026 measurement date. The valuation of the Company's entire interest in Lyken.AI is derived from a transaction involving a 9.9% minority interest. The FingerMotion shares received as consideration are restricted and unregistered and are subject to a six-month hold period, and no cash consideration was paid. The transaction closed on August 17, 2026. Further detail is set out in Notes 4 and 12 to the financial statements.

Financial Statements and MD&A

This release is a summary only. The Company's unaudited condensed interim financial statements and related MD&A for the three and nine months ended June 30, 2026 contain additional information, including detailed valuation, liquidity and going-concern disclosure, and are available under the Company's profile on SEDAR+ at www.sedarplus.ca. Readers should review those documents in their entirety.

About Alset AI Ventures Inc.

Alset AI is an AI-focused venture investment platform dedicated to sourcing, funding and developing companies across the artificial intelligence value chain. The Company seeks to provide investors with diversified exposure to emerging applications and infrastructure that enable advancements in AI technologies.

For further information about Alset AI Ventures Inc., please contact:

Investor Relations

Adam Ingrao
Chief Executive Officer
T: 236.312.6744
E: ir@alsetai.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note regarding Forward-Looking Statements

This press release contains certain forward-looking statements and forward-looking information (collectively, "forward-looking statements") regarding the Company, including statements relating to its plans to make strategic seed investments, identify and research AI investment opportunities, support Lyken.AI through capital and strategic guidance, identify potential strategic partnerships, add key full-time roles, actively manage its portfolio and create long-term shareholder value; the future performance and value of its investments; its ability to realize or monetize recorded carrying values; and the availability and use of capital.

Forward-looking statements normally contain words such as "will", "intend", "anticipate", "could", "may", "expect", "plan", "potential", "believe", "target" and similar terms. Such statements are subject to risks and uncertainties, including the subjective nature of valuations for private and illiquid investments; changes in valuation assumptions, foreign exchange rates and the market price of securities received as consideration; restrictions affecting the resale of FingerMotion shares; the concentration of the Company's portfolio in a limited number of investments; the ability to realize investments at their recorded values or at all; operating and financing requirements; the availability of financing; investee performance; technological change; competition; and general economic, capital-market and regulatory conditions.

The Company's ability to continue as a going concern is dependent upon its ability to draw further advances under the loan transaction, raise additional financing or realize value from its investment portfolio, none of which is assured. As disclosed in Note 1 to the financial statements and under "Liquidity" in the MD&A, these conditions indicate the existence of a material uncertainty that may cast significant doubt about the Company's ability to continue as a going concern. The financial statements do not include adjustments that may be necessary if the Company is unable to continue as a going concern.

Actual results may differ materially. Forward-looking statements are made as of the date hereof and are qualified by these cautionary statements. Except as required by applicable securities laws, Alset undertakes no obligation to update them. Additional risks are described in Alset's public filings available at www.sedarplus.ca.

SOURCE: Alset AI Ventures Inc.

View the original press release on ACCESS Newswire