revenue $706,000, net income -$106.7M. REALLOYS gains controlling shareholder, faces material control weaknesses and tariff risks

Filed May 20, 2026 · Period ending March 31, 2026 · Compared to 10-Q May 15, 2025 · ~2 min read

Key Changes

• high

  CEO Leonard Sternheim acquired all Series A Preferred Stock (100 votes/share), gaining majority voting control. Company now a "controlled company" under Nasdaq rules, concentrating power over M&A, governance, and strategy in one individual.

  MD&A: Controlling shareholder verify on EDGAR →
• high

  Blackbox merger integration faces material weaknesses in internal controls; May 2026 option exercise will deconsolidate Blackbox in Q2, shortening period merged entity contributes to results and limiting anticipated benefits.

  MD&A: Blackbox integration verify on EDGAR →
• high

  REalloys depends on short-term government contracts (under 6 months) with no renewal guarantees. Trump administration DOGE Pentagon review and budget cuts, including repeal of Defense Production Act waiver, threaten contract funding.

  MD&A: Government contract dependency verify on EDGAR →