The company's gross margin has experienced significant compression, falling from historical highs near 97% in 2021 to a recent 41.73%, reflecting an unsustainable cost structure.
| Sales/Revenue | -398.83K | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | -85.83K | 621.61K | 2.06M | 2.53M | 2.23M | 3.03M | 255.12K | 0 | 0 | 0 | 0 |
| Gross Margin % | 21.52% | 41.73% | 53.79% | 82.54% | 90.83% | 88.62% | 61.58% | - | - | - | - |
| Gross Profit Growth % | - | -69.78% | -18.72% | 13.67% | -26.5% | 1087.42% | - | - | - | - | - |
| Operating Expenses | 1.36M | 2.06M | 2.9M | 1.5M | 1.43M | 2.27M | 1.6M | 51.78K | 27.05K | 20.05K | 18.5K |
| OpEx % of Revenue | - | 138.28% | 75.74% | 49.07% | 58.42% | 66.39% | 385.2% | - | - | - | - |
| Selling, General & Admin | 190.53K | 2.06M | 2.9M | 1.5M | 1.05M | 1.13M | 1.04M | 51.78K | 27.05K | 20.05K | 18.5K |
| SG&A % of Revenue | - | 138.28% | 75.74% | 49.07% | 42.71% | 33.13% | 250.83% | - | - | - | - |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 245.73K | -2.52M | -2.59M | 7.08K | 794.46K | 759.93K | -1.34M | -51.78K | -27.05K | -20.05K | -18.5K |
| Operating Margin % | -61.61% | -169.23% | -67.68% | 0.23% | 32.41% | 22.23% | -323.62% | - | - | - | - |
| Operating Income Growth % | - | 2.61% | -36630.57% | -99.11% | 4.54% | 156.68% | -2489.36% | -91.45% | -34.89% | -8.36% | - |
| EBITDA | -252.42K | -2.36M | -2.27M | 103.19K | 837.92K | 838.46K | -1.17M | -28.96K | -27.05K | -20.05K | -18.5K |
| EBITDA Margin % | 63.29% | -158.7% | -59.28% | 3.37% | 34.19% | 24.53% | -283.6% | - | - | - | - |
| EBITDA Growth % | 88.85% | -4.27% | -2296.81% | -87.68% | -0.06% | 171.36% | -3956.89% | -7.08% | -34.89% | -8.36% | - |
| D&A (Non-Cash Add-back) | 99.9K | 156.83K | 321.28K | 96.11K | 43.46K | 78.52K | 165.78K | 22.82K | 0 | 0 | 0 |
| EBIT | -190.53K | 0 | -2.69M | 7.08K | 0 | 0 | -1.34M | 0 | 0 | 0 | 0 |
| Net Interest Income | 1.8M | 0 | -76.61K | 4.11K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 1.8M | 0 | 0 | 4.11K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 76.61K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 2.32M | -2.04M | -2.77M | 7.08K | 1.36M | 1.89M | -1.35M | -51.78K | -27.05K | -20.05K | -18.5K |
| Pretax Margin % | -581.45% | -137.1% | -72.37% | 0.23% | 55.39% | 55.42% | -325.8% | - | - | - | - |
| Income Tax | 0 | 391 | 528 | 274.32K | 340.13K | 0 | -9.03K | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 0% | -0.02% | -0.02% | 3871.86% | 25.05% | 0% | 0.67% | 0% | 0% | 0% | 0% |
| Net Income | 3.92M | 2.32M | -2.77M | -267.24K | 1.02M | 1.89M | -1.35M | -51.78K | -27.05K | -20.05K | -18.5K |
| Net Margin % | -983.37% | 155.55% | -72.39% | -8.72% | 41.51% | 55.42% | -325.8% | - | - | - | - |
| Net Income Growth % | 285.25% | 183.69% | -935.92% | -126.26% | -46.29% | 240.36% | -2506.8% | -91.45% | -34.89% | -8.36% | - |
| Net Income (Continuing) | 4.56M | 2.32M | -2.77M | -267.24K | 1.02M | 1.89M | -1.35M | -51.78K | -27.05K | -20.05K | -18.5K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.20 | 0.20 | -0.11 | -0.00 | 0.00 | 0.01 | -0.00 | -0.00 | -0.00 | -0.00 | -0.00 |
| EPS Growth % | 340.74% | 281.82% | - | - | - | - | - | - | - | - | - |
| EPS (Basic) | - | 0.20 | -0.11 | -0.00 | 0.00 | 0.01 | -0.00 | -0.00 | -0.00 | -0.00 | -0.00 |
| Diluted Shares Outstanding | 20M | 11.58M | 25M | 325.56M | 325.56M | 297.77M | 317.99M | 45.41M | 45.41M | 45.41M | 45.41M |
| Basic Shares Outstanding | 20M | 11.58M | 25M | 325.56M | 325.56M | 297.77M | 317.99M | 45.41M | 45.41M | 45.41M | 45.41M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - |
Imminent liquidity and solvency risk
As reported in financial statements, AXIN's revenue trajectory remains highly erratic, characterized by a 61.05% year-over-year decline that underscores the lack of a sustainable, recurring business model typical of a shell entity currently struggling to secure a definitive infrastructure-focused business combination or stable fee-based income.
The inconsistent revenue figures suggest that the company's inflows are likely transactional or project-based rather than indicative of a scalable operating business. Investors should monitor whether this volatility reflects a failure to generate consistent deal-structuring fees or merely the inherent unpredictability of a pre-merger acquisition vehicle.
Based on reported figures, AXIN's gross margin has experienced significant compression, falling from historical highs near 97% in 2021 to a recent 41.73%, which suggests that the cost of maintaining the shell's regulatory and administrative infrastructure is increasingly outpacing the company's ability to capture profitable revenue.
The contraction in gross margins implies that the entity is facing higher direct costs relative to its current revenue generation, likely due to the specialized nature of its infrastructure sourcing efforts. This trend warrants further investigation into whether the company can achieve any meaningful operating leverage before its limited capital is fully exhausted.
According to recent SEC filings, the discrepancy between AXIN's deeply negative operating margins and its reported net income suggests that bottom-line results are heavily influenced by non-cash, non-operating items, such as warrant liability revaluations, rather than core operational performance or sustainable business growth.
The divergence between operating and net income indicates that investors should be cautious when interpreting profitability metrics, as they may not reflect the underlying cash burn of the business. This accounting nuance appears to mask the true extent of the company's operational losses, which remain a primary concern for long-term viability.
As indicated by the income statement data, AXIN's operating expenses, primarily driven by professional and regulatory fees, consistently exceed gross profits, resulting in a negative operating margin of -169.23% that highlights the unsustainable nature of the current cost structure relative to the company's limited revenue.
The high fixed-cost burden relative to the current scale of operations suggests that management is struggling to maintain the shell's listing status without significant capital depletion. This cost structure appears to be a significant drag on the company's ability to preserve liquidity while searching for a viable infrastructure target.
Based on the reported cash reserves of only $20,751, the company faces an imminent risk of insolvency, as the current burn rate suggests that AXIN may lack the necessary capital to sustain its operations or meet regulatory listing requirements without an immediate and potentially dilutive financing event.
Short-sellers would likely focus on the precarious cash position as a primary indicator that the company's business model is failing to reach a successful inflection point. The lack of liquid reserves suggests that the entity may be forced into a distressed transaction or liquidation if it cannot secure external funding in the near term.
Quick answers to the most common questions about buying AXIN stock.
Axiom Intelligence Acquisition Corp 1 (AXIN) is profitable, generating $2.3M in net income for the fiscal year ending 2025 with a net profit margin of 155.5%.
Axiom Intelligence Acquisition Corp 1 (AXIN) reported an operating income of $-2.5M, resulting in an operating profit margin of -169.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Axiom Intelligence Acquisition Corp 1 (AXIN) generated $0.6M in gross profit for the year, representing a gross profit margin of 41.7%. This demonstrates the company's core pricing power and production efficiency.