10-K: Allied Energy Reports Significant Revenue Growth in 2025

Allied Energy, Inc. (AGGI) has reported a substantial increase in revenue for the fiscal year ended December 31, 2025, driven by its AI-powered social commerce platform, BILI.

Summary

• Allied Energy, Inc. (AGGI) has transitioned from a net loss in 2024 to a net income of $1,059,288 in 2025.
• Revenue saw a significant increase of 446.5%, reaching $1,916,320 in 2025, up from $350,676 in 2024.
• Gross margin improved dramatically from 66.3% in 2024 to 85.6% in 2025.
• Operating expenses decreased by 22.2% to $572,121 in 2025 from $735,620 in 2024.
• The company's working capital improved from a deficit of $91,459 in 2024 to a positive $1,010,988 in 2025.
• Net cash provided by operating activities shifted from a negative $462,747 in 2024 to a positive $53,228 in 2025.
• The company's cybersecurity program is managed through a combination of technology and monitoring, with a focus on access controls, data protection, system monitoring, incident response, and third-party risk management.
• Disclosure controls and procedures were found to be not effective as of December 31, 2025, with material weaknesses identified in internal control over financial reporting, including lack of a functioning audit committee and inadequate segregation of duties.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a positive filing due to significant revenue growth, improved profitability, and a stronger balance sheet, although internal control weaknesses and market competition remain areas of concern.

Positives

• Significant revenue growth of 446.5% to $1,916,320 in 2025.
• Successful transition from a net loss of $495,281 in 2024 to a net income of $1,059,288 in 2025.
• Dramatic improvement in gross margin from 66.3% to 85.6%.
• Reduction in operating expenses by 22.2%.
• Positive working capital of $1,010,988 as of December 31, 2025, a significant improvement from a deficit in 2024.
• Positive net cash flow from operations in 2025.
• BILI platform has 46,966 engaged users/creators and 2,529 engaged brand contacts as of March 2026.
• The company has received 3 global BOLD awards recognizing excellence in tech, design, impact, and creativity.

Negatives

• Disclosure controls and procedures were not effective as of December 31, 2025.
• Material weaknesses in internal control over financial reporting were identified, including lack of a functioning audit committee, inadequate segregation of duties, insufficient written policies, and ineffective period-end reporting controls.
• The company's common stock has limited liquidity and is quoted on the OTCID Basic Market.
• The company has not paid any cash dividends and does not anticipate doing so in the foreseeable future.
• The company is in the development stage and faces risks associated with early-stage businesses.
• The company's auditor's report for fiscal years 2023 and 2024 contained an explanatory paragraph noting substantial doubt about the company's ability to continue as a going concern (though this has been alleviated for 2025).

Risks

• The company operates in a highly competitive social commerce and creator marketing landscape with significantly better capitalized and more established competitors.
• Measurement challenges exist in cross-platform ROI attribution, fake follower filtering, and campaign effectiveness transparency.
• The market is characterized by noise and fragmentation, requiring the company to stand out with superior user experience or clearer positioning.
• Consumer savviness may cause traditional macro-creator campaigns to underperform, requiring scalable tools for micro/nano creators.
• The company is subject to evolving foreign and domestic laws and regulations related to internet business, including taxation, privacy, data protection, consumer protection, and online payment services.
• The company relies on third-party cloud infrastructure (AWS), and their systems and controls are outside of direct control.
• Cybersecurity threats are continually evolving, and despite efforts, systems may not be fully protected.
• The company's operations are subject to broader global macroeconomic and geopolitical risks, including disruptions to global supply chains and volatility in energy markets.
• The company has a limited number of third-party technology platforms, ad exchanges, and infrastructure providers, and disruptions could adversely affect operations.

Future Outlook

The company believes its existing cash and cash equivalents, along with cash generated from operations, will be adequate to meet its requirements for the next 12 months and the foreseeable future. However, to pursue future growth opportunities, it may seek additional funding through equity or debt financing. The company aims to maintain financial flexibility to support its platform's technological infrastructure and personnel needs, and to pursue expansion and diversification objectives.

Management Comments

• Management attributes the improvement in gross margin to greater adoption of the BILI Base platform and more managed campaigns under BILI Boost, along with the introduction of the BILI Boost AI-Enabled model.
• Management believes that the company's flexible and asset-light workplace model supports operational efficiency and scalability.
• Management believes that the pursuit of mutually satisfactory business relationships with Asian manufacturers represents a strategic benefit and significant opportunity to scale the business.
• Management believes that its exclusive partnerships with the NHL Alumni Association and CFL Players Association enable it to provide athlete-driven offerings that many competitors cannot match.
• Management believes that by offering accessible creator onboarding, reporting dashboards, and performance tools, BILI can position itself as an enabler for mid-tier and emerging creators.
• Management intends to improve financial organization by creating a position to segregate duties, increasing personnel resources, and enhancing technical accounting expertise when funds are available.
• Management intends to appoint one or more outside directors to the board to establish a functioning audit committee and prepare and implement sufficient written policies and checklists for accounting and financial reporting.

Industry Context

StockSavvy.ai notes that Allied Energy operates in the rapidly evolving social commerce and creator marketing space, characterized by AI integration, commerce-driven content, the rise of professional creators, platform consolidation, and community-led discovery. The company's focus on AI-enabled tools, partnerships with sports organizations, and an educational component (BILI Academy) are strategic differentiators in a competitive landscape.

Comparison to Industry Standards

• Competitors like CreatorIQ, Viral Nation, and Bazaarvoice have raised substantial funding and built large enterprise sales teams, indicating a capital disadvantage for Allied Energy.
• Platforms like LTK, Yotpo, and Bazaarvoice are increasingly leveraging AI for creator matchmaking and ROI prediction, a trend BILI is also pursuing.
• The trend towards platform consolidation, exemplified by Goat's acquisition by WPP, suggests that specialized platforms like BILI may find opportunities if they can effectively differentiate.
• The increasing consumer savviness and the shift towards micro/nano creators require scalable tools, which many competitors are already developing.

Corporate Governance

Legal Proceedings

• The company is currently not aware of any legal proceedings or claims that it believes will have a material adverse effect on its business, financial condition, or operating results.

Related Party Transactions

• As of December 31, 2025, Ms. Chiching Hung (director and shareholder) was owed $30,500 for legal, accounting, and OTC Market fees paid on behalf of the company. These advances are non-interest bearing and due on demand.
• As of December 31, 2025, certain shareholders, officers, and directors of BILI Inc. were owed $89,065 for advances to cover operating expenses. Balances of $7,293 were received as subscriptions for future share issuance. These are non-interest bearing and due on demand.
• As of December 31, 2025, a shareholder of BILI Inc. was owed $250,245 for a loan bearing 12% interest, which matured on December 31, 2025. This loan was supported by designated trade receivables and has since been repaid in full.
• Adrian Capobianco (CEO) voluntarily elected to receive no salary or other cash compensation since January 2025.
• Taisa Levintsa (VP) has an employment agreement with BILI, Inc. for a salary of CAD$4,500 per month commencing November 1, 2024.

Stakeholder Impact

• Shareholders: The significant revenue growth and return to profitability are positive indicators. However, the limited liquidity of the stock and ongoing internal control weaknesses may be concerns.
• Employees: The company has 15 employees and relies on outsourced tasks. Employee relations are considered good. The company is committed to a diverse and inclusive workplace.
• Creditors: The company's improved working capital and cash position suggest a reduced risk for creditors.
• Customers: The BILI platform aims to provide value to both brands and creators by facilitating monetization and brand promotion.

Next Steps

• The company intends to appoint one or more outside directors to its board to establish a functioning audit committee.
• The company intends to prepare and implement sufficient written policies and checklists for accounting and financial reporting.
• The company intends to adopt an insider trading policy in 2026.
• The company intends to establish board committees in 2026.
• The company is evaluating the impact of new accounting standards (ASU 2025-06, ASU 2025-05, ASU 2025-04, ASU 2025-03).
• The company is awaiting FINRA approval for its name change to BILI Social International, Inc. and a 1-for-500 reverse stock split.

Key Dates

Recommendation

Allied Energy has demonstrated significant operational improvements with strong revenue growth and a return to profitability. However, the company still faces substantial risks including intense competition, market fragmentation, and significant internal control weaknesses. While the positive financial trajectory is encouraging, the unresolved governance and control issues, coupled with the inherent risks of a development-stage company in a competitive market, warrant a cautious 'hold' recommendation until these concerns are adequately addressed.

Keywords

Allied Energy, AGGI, BILI, Social Commerce, Creator Marketing, AI, E-commerce, Digital Marketing, Form 10-K, Annual Report, Financial Results, Revenue Growth