Signing Day Sports Reports Mixed Financials Amidst Radical Pivot to AI

SCOTTSDALE, AZ – January 15, 2026 – Signing Day Sports, Inc. (NYSE American: SGN), developer of a recruitment app for high school athletes, today announced second-quarter financial results that paint a portrait of a company at a critical crossroads. While management successfully executed a balance sheet cleanup, the positive figures are overshadowed by a steep revenue decline, persistent losses, and a dramatic strategic pivot away from its core sports technology business toward the volatile world of blockchain and artificial intelligence.

In its report for the quarter ended June 30, 2025, the company highlighted significant progress in shoring up its financial base. According to the announcement, total assets of approximately $1.4 million now stand above total liabilities of roughly $1.1 million. This was achieved through aggressive fiscal discipline, including a nearly 70% reduction in accounts payable compared to the end of 2024 and the full repayment of all outstanding loans. Cash reserves also saw a healthy increase, growing to approximately $657,000 from $181,000 over the same six-month period.

“Our primary goal entering 2025 was to strengthen our financial foundation by reducing accounts payable, preserving cash, and positioning our assets to exceed liabilities, and we have delivered on that objective,” stated Daniel Nelson, Chief Executive Officer and Chairman of Signing Day Sports, in the press release.

A Tale of Two Ledgers

While the balance sheet reflects a successful turnaround effort, the company's income statement tells a different story. Revenue for the second quarter of 2025 plummeted to just $67,000, a stark 67% drop from the $205,000 reported in the same period of 2024. The company attributed this sharp decline primarily to a decrease in event fee payments.

This downward trend appears to be ongoing. Subsequent filings for the third quarter of 2025 revealed a further dip in revenue to just $31,000, alongside a decline in paid user subscriptions. This suggests systemic challenges in monetizing its platform in a competitive sports recruitment market dominated by established players like NCSA College Recruiting and Hudl.

Despite the revenue collapse, the company's net loss remained stubbornly high, totaling approximately $1.4 million for the quarter, slightly worse than the $1.3 million loss in the prior-year period. This was driven in part by a rise in general and administrative expenses, which climbed to $1.6 million from $1.3 million year-over-year. The company cited increased costs for non-legal professional fees and salaries as primary drivers, which were only partially offset by decreases in legal expenses and stock-based compensation.

Existential Warnings and a Strategic Lifeline

The pressure on Signing Day Sports' original business model is further evidenced by severe warnings found within its regulatory filings. In its report for the third quarter of 2025, management disclosed "substantial doubt about the company's ability to continue as a going concern." This formal declaration signals to investors that, without significant changes or new capital, the company's long-term survival is at risk. Compounding these operational difficulties, an amendment to its 2024 annual report revealed that management had identified "material weaknesses" in its internal financial controls, citing issues such as a lack of segregation of duties.

Faced with these existential headwinds, Signing Day Sports is not merely adjusting its strategy—it is undertaking a complete corporate reinvention. The company is in the process of a business combination with One Blockchain LLC and its affiliate, BlockchAIn Digital Infrastructure, Inc. The proposed merger, expected to close in early 2026, will transform the company's focus entirely.

If completed, the combined entity will pivot to data center operations for Bitcoin mining and is expected to expand into the high-demand field of AI-related computing. The scale of this new venture dwarfs Signing Day Sports' current operations; One Blockchain reportedly generated $22.9 million in revenue and $5.7 million in net income in 2024 alone.

Capitalizing a New Future

To facilitate this transition and fund ongoing operations, Signing Day Sports also announced the pricing of a public offering of common stock and warrants this month, aiming to raise approximately $5.6 million in gross proceeds. This capital injection appears critical not only for executing the merger but also for navigating the period of uncertainty flagged by the "going concern" warning.

For a company founded with the mission of helping student-athletes get noticed, the pivot is a profound departure. While its sports recruitment app may continue to operate, its future role appears secondary to the new primary business of digital infrastructure. The latest financial report, therefore, serves less as a barometer of a sports tech company's health and more as the closing chapter of one business and the prologue to an entirely new one. Investors and users alike are now faced with evaluating a company whose identity and prospects have been fundamentally and irrevocably altered.