Avant Technologies Inc.: 2025 10-K Review and Analysis

In this in-depth look at Avant Technologies Inc. (OTC: AVAI), we dissect the 2025 Form 10-K to uncover the company’s strategy, recent developments, financial performance, risks and future outlook. We assess whether AVAI’s artificial intelligence technology acquisitions and partnerships justify an investment, and we assign an investment potential score.

Warren.AI 💰 2.5 / 10

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1. Company Overview and Business Description

Corporate Background

• Formerly Trend Innovations Holding Inc., the company changed its name to Avant Technologies Inc. in July 2023 and trades under AVAI on the OTC QB.
• Headquartered in Vilnius, Lithuania with a virtual U.S. address in Las Vegas, NV.

Core Mission and Technology

• Specializes in acquiring, developing and commercializing AI-based technologies and IT consulting services.
• Focus on “self-sustained” AI models using unsupervised clustering and supervised learning to leverage cross-domain knowledge and improve data efficiency.

Key Acquisitions & Partnerships

• Avant! AI (April 2023)
• Text-generation deep learning model that self-trains and expands its database via unsupervised learning.
• Consideration: 26 million common shares.
• InstantFAME (April 2023)
• Digital auction and secure sales platform with pending patents and source code.
• Consideration: 5,000 Series A preferred shares.
• License Agreement with Ainnova Tech (November 2024)
• Joint venture to form Ai-Nova Acquisition Corp., 50/50 ownership, targeting healthcare AI for retinal disease detection and commercialization in North America and Europe.

Corporate Structure & Team

• Founder and CEO: Chris Winter (appointed October 2024)
• President & Director: Ivan Lunegov
• CFO, Director & Treasurer: Vitalis Racius
• Secretary: Natalija Tunevic

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2. Recent Developments & Strategic Moves

• Cancellation of Wired4Health Deal (September 2024)
• April 2024 APA for $2.2 million purchase of W4H assets was mutually terminated; all related notes and preferred stock voided.
• Equity Financing Agreement Withdrawn (May 2025)
• July 2024 agreement with GHS Investments (up to $20 million facility) terminated by mutual consent.
• Promissory Notes Issued (Dec 2024–Mar 2025)
• Three senior notes totaling ~$366K with interest rates of 22% p.a. and conversion features.
• Chief Officers Turnover
• Multiple C-suite changes: CEO, CFO, COO and technology advisors cycling through new agreements and terminations.

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3. Financial Review (FY 2024 vs. FY 2025)

Revenue

• Zero revenue recognized in both fiscal years—no sales or licensing income yet.

Operating Expenses

• FY 2025: $1.533 million
• FY 2024: $2.117 million
• Decrease driven by lower administrative and contractor costs.

Other Income / (Expense)

• Other income (debt forgiveness) of $450K in FY 2025 vs. negligible in FY 2024.
• Interest and note discounts expense rose from $11K to $59K.

Net Loss

• FY 2025: $(1.14 million)
• FY 2024: $(2.13 million)
• Loss improved by 46% but remains steep.

Cash & Liquidity

• Cash balance: $81K at 3/31/25 vs. $281 at 3/31/24.
• Working capital deficit: $(1.70 million).
• Operating cash used: $(1.16 million).

Balance Sheet

• Total assets: $224.7K (mostly intangible assets).
• Total liabilities: $1.79 million (accounts payable, related-party loans, convertible notes).

Going Concern

• Auditors issued a “going concern” warning due to recurring losses, negative working capital and reliance on financing.

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4. Risk Factors Highlights

1. No Operating History or Revenue — with only R&D and no product sales to date, market acceptance is unproven.
2. Recurring Losses & Cash Burn — negative cash flows and an accumulated deficit of $4.12 million.
3. High Dependence on Financing — frequent equity and debt raises, dilutive share issuances, 22% p.a. notes.
4. Key Person Risk — high turnover among executive officers and dependence on AI experts and developers.
5. Limited Public Market — quotes on OTC QB, low liquidity, penny stock regulation constraints.
6. Internal Control Weaknesses — no audit committee, insufficient cash and IT controls.

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5. Outlook & Path Forward

Milestones Needed

• Product Commercialization — launch licensing or SaaS services for Avant! AI and InstantFAME.
• Strategic Partnerships — leverage Ai-Nova JV to enter healthcare market swiftly.
• Strengthen Controls — build robust finance & compliance frameworks to satisfy institutional investors.
• Capital Raise — secure non-dilutive grants or strategic investments to extend runway beyond 2025.

Potential Catalysts

• First AI licensing deals or platform subscriptions.
• Positive clinical pilot results from retinal screening JV.
• Up-listing from OTC QB to a national exchange.

Key Challenges

• Achieving product-market fit for AI services.
• Managing cost structure while ramping R&D.
• Mitigating shareholder dilution and high-interest debt.

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6. Investment Potential Score: 2.5 / 10

Rationale:

• Avant Technologies offers intriguing AI assets and a promising JV in healthcare, but it has no revenues, a history of large losses, a precarious balance sheet and material internal control gaps. Without concrete commercial traction or a clear path to profitability, the risk far outweighs the potential reward for most investors at this stage.

Considerations for Investors:

• Only speculative investors with high risk tolerance and a long time horizon should consider a small position.
• Monitor development milestones, first paying customers, and up-list plans.
• Track cash burn rate and any non-dilutive funding sources.

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Conclusion
Avant Technologies Inc. is in the early R&D and acquisition phase of building an AI solutions portfolio. While its technology vision and healthcare JV hold promise, the company must demonstrate commercial viability and stabilize its finances before earning a higher investment grade. We assign an investment score of 2.5 / 10, reflecting high risk and speculative appeal at current levels.

This analysis is for informational purposes only and not a recommendation to buy or sell any security.