OpenWorld, Inc. — Q3 2026 Earnings Summary

Financial Performance:

• Total revenue was $7.4 million for the quarter ended September 30, 2026, compared to $20.8 million in the prior-year period.
• RWA infrastructure and platform services revenue was $6.4 million in Q3 2026 and $9.1 million for the nine months ended September 30, 2026, versus zero in both corresponding prior-year periods.
• Gross profit was $6.3 million in Q3 2026, representing an 84% gross margin, compared to 77% in the prior-year quarter; for the nine months, gross profit was $13.7 million with a 90% margin versus 84% in the prior-year period.
• GAAP net loss was $10.2 million ($0.93 per share) for Q3 2026 and $16.1 million ($1.58 per share) for the nine months ended September 30, 2026.
• Adjusted EBITDA was $2.3 million for Q3 2026 and $(3.0) million for the nine months ended September 30, 2026, compared to $18.0 million and $8.5 million in the respective prior-year periods.
• Cash balances were $4.5 million at September 30, 2026, with positive working capital of approximately $2.6 million.
• Net cash used in operating activities was $4.0 million for the nine months ended September 30, 2026.

Guidance and Future Outlook:

• Management expects to advance discussions on large-scale tokenized financing programs into definitive agreements.
• The company anticipates consistent progress on advancing discussions into definitive agreements for its RWA pipeline.
• Initial deployment of the Meridian AI infrastructure program is planned for 10,000 homes, with testing targeted to begin in Q4 2026 and the first commercial site in Q1 2027.

Business Segments and Product Lines:

• The Company is organized around three verticals: Digital Assets & Capital Markets, Advisory & Onboarding (OpenWorld Labs), and OpenWorld Enterprise.
• OpenWorld Enterprise focuses on designing, structuring, deploying, and administering enterprise-grade blockchain initiatives across RWAs, sovereign infrastructure, and financial services.
• Revenue growth in Q3 was driven by a favorable mix shift to the high-margin RWA business.
• In Q4 2026, the Company closed the acquisition of Blocksight Holdings Co., an AI-agent platform for deal structuring and asset verification.

Market and Competitive Landscape:

• The Company is positioning itself at the center of institutional RWA activity in AI infrastructure, energy, and intellectual property.
• Management notes growing interest in RWA tokenization from some of the largest companies in the world.
• The industry is described as highly competitive.

Risks and Challenges:

• Risks include the ability to enter into definitive agreements or consummate transactions contemplated by non-binding term sheets.
• Potential risks involve engagement in future acquisitions or strategic partnerships that increase capital requirements or cause debt.
• Risks related to evolving laws regarding tokenized securities and compliance with Nasdaq listing standards are noted.
• The company faces risks associated with impairments of goodwill and intangible assets, as well as the ability to use net operating losses to offset future taxable income.

Management Commentary and Tone:

• Chairman and CEO Matthew Shaw described Q3 2026 as a "defining quarter" marking the transition to public markets and acceleration into a high-margin RWA platform.
• Management highlighted that RWA revenue grew from zero a year ago to over $6 million in Q3 2026 while maintaining gross margins above 80%.
• Management characterized the current performance as the "starting point" for the business model's potential.

Other Key Points:

• The Company completed a reverse takeover with VerifyMe, Inc. on September 30, 2026, and began trading on Nasdaq under the ticker "OPNW" on October 1, 2026.
• Subsequent to quarter-end, the Company secured $1.1 billion in non-binding LOIs for proposed tokenized financing programs, with definitive agreements and DeFi capital formation underway.
• Specific LOIs include an up to $1 billion program with Meridian for an AI inference computing network powered by solar and Tesla Powerwall storage, and an up to $130 million intellectual-property-backed transaction with BeyondAI.
• On November 10, 2026, tokenized OPNW shares went live on Solana via Sunrise and Backpack Securities, supporting 24/7 trading without issuing new shares.
• The Company completed a $3.5 million registered direct offering subsequent to the quarter-end.
• GAAP net losses were significantly impacted by non-recurring items, including approximately $6.0 million in professional fees for the merger and listing, and $6.4 million in stock-based compensation for the quarter.
• The balance sheet reflects the combined entity, with total assets of $32.7 million and total liabilities of $16.3 million as of September 30, 2026.