AiRWA Inc (YYAI) Major Event Analysis Report: Reverse Stock Split, Share Dilution, and Web3 Strategic Transformation

Based on the SEC filings and public information I have collected, I will analyze for the system the major events in the Form 8-K submitted by

and their impact on investors. Although the specific Form 8-K dated January 15, 2025 was not directly retrieved from the SEC database, based on the company’s disclosed timeline, important events related to the date you mentioned can be confirmed.

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Item	Information
Company Name	AiRWA Inc. (Former Name: Connexa Sports Technologies Inc.)
Ticker Symbol	YYAI (Nasdaq Capital Market)
Headquarters Address	74 E. Glenwood Ave., #320, Smyrna, DE 19977
Contact Phone Number	(646) 453-0678
Business Scope	Technology licensing (through its holding subsidiary Yuanyu Enterprise Management Co., Limited), Web3 asset tokenization platform (AiRWA Exchange)

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The company signed a sales agreement with A.G.P./Alliance Global Partners to launch an At-The-Market (ATM) stock offering program .

Impact Dimension	Detailed Analysis
Outstanding Share Dilution	914,503,161 common shares were sold through the ATM program, resulting in significant equity dilution for existing shareholders
Impact on Earnings Per Share (EPS)	The large-scale new share issuance directly diluted earnings per share (latest quarterly EPS was -$0.05) [3]
Stock Price Pressure	Large-scale stock sales increased market supply, creating sustained downward pressure on the stock price
Use of Proceeds	The proceeds were used to advance joint venture projects, corporate acquisitions, and working capital [4]

ATM offerings typically indicate that the company is facing ongoing funding pressure; investors need to continue monitoring subsequent financing activities.

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Pursuant to a securities purchase agreement, the company issued via private placement [1].

Impact Dimension	Detailed Analysis
Financing Scale	Combined with ATM sales, approximately 934 million new outstanding shares were issued in total
Change in Equity Structure	The shareholding ratio of original shareholders was significantly compressed (outstanding shares surged from approximately 9.49 million to 949 million)
Change in Per-Share Price	Private placement prices are typically lower than market prices, resulting in paper losses for secondary market investors

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The company implemented a , which took effect on October 27, 2025 [1][5][6].

• Every 50 issued and outstanding common shares are combined into 1 share
• Par value remains unchanged at $0.001
• Fractional shares are rounded up (shareholders who would otherwise receive fractional shares will be issued 1 full share)
• Outstanding shares will be reduced from approximately 949 million to approximately
  18.98 million
  [6]

Impact Dimension	Detailed Analysis
Nominal Stock Price Rebound	Under the 1:50 split, the stock price would theoretically “increase” by 50 times (actual market capitalization remains unchanged)
Nasdaq Compliance	This move was aimed at meeting Nasdaq’s minimum $1 closing price listing requirement [6]
Impact on Investor Psychology	The stock price “appears” higher, which may attract some uninformed investors
No Substantive Value Creation	A reverse stock split does not change the company’s fundamentals; it is merely an accounting adjustment
Liquidity Risk	The trading unit becomes larger after the split, which may reduce stock liquidity

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The company officially changed its name from “Connexa Sports Technologies Inc.” to “AiRWA Inc.” [5][6].

• Signed a
  $500 million
  joint venture agreement with JuCoin, a Singapore-based cryptocurrency exchange, to jointly establish the aiRWA digital asset platform [6]
• AiRWA Exchange received a
  $30 million
  investment in Solana tokens [7]
• Successfully completed the test settlement of U.S. stock tokenization transactions [7]

Impact Dimension	Detailed Analysis
Business Transformation Risk	Transitioning from traditional sports technology to the Web3/cryptocurrency space represents a fundamental change in the business model
Market Opportunities	Real-World Asset (RWA) tokenization is an emerging track with high growth potential
Regulatory Risk	Cryptocurrency and tokenization businesses face strict regulatory uncertainty
Questionable Execution Capability	A nano-cap company (with a market capitalization of approximately $27.7 million) undertaking a $500 million project has questionable execution capabilities

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Time Point	Stock Price	Periodic Change
January 13, 2025	$64.00	Baseline
January 9, 2026	$1.25	-98.05% [8]
Current (January 15, 2026)	$1.46	-

Metric	Value	Industry Comparison
Market Capitalization	$27.71M	Nano-cap
P/E Ratio	0.60x	Abnormally low (possibly due to net profit volatility)
P/B Ratio	0.04x	Far below book value
ROE	16.66%	Relatively healthy
Net Profit Margin	56.99%	Abnormally high (data reliability needs verification)
Current Ratio	24.18x	Excellent liquidity
Current Stock Price	$1.46	-

• The stock price dropped from $64 to $1.25, but some financial metrics (such as 0.6x P/E ratio, 57% net profit margin) indicate extremely high profitability, raising questions about
  data reliability
• Investors are advised to verify the latest 10-K/10-Q filings to confirm the accuracy of financial data

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Impact Factor	Assessment
Dilution Risk	High – Outstanding shares surged from approximately 9.49 million to 949 million
Stock Price Volatility	Extremely High – 98% drop in one year, still facing liquidity risk after the reverse split
Information Asymmetry	High – The company’s business transformation to Web3 results in an opaque valuation model
Recommendation	Not recommended to increase holdings; extreme caution is required

Impact Factor	Assessment
Compliance Requirements	Some institutions may be unable to invest due to the company’s nano-cap status
Liquidity	Low average daily trading volume (approximately 5 million shares) limits large transactions
Holding Cost	Investors who bought at high prices face huge losses
Recommendation	Not recommended to initiate new positions; existing positions require an exit strategy assessment

Impact Factor	Assessment
Volatility	Extremely High (suitable for aggressive day trading)
Technical Signals	Short-term rebound (+62% YTD) may provide trading opportunities [3]
Risk	Sharp rise and fall pattern, making it difficult to predict the bottom
Recommendation	Only suitable for traders with high risk tolerance

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Risk Type	Detailed Description
Delisting Risk	Previously faced Nasdaq delisting risk due to the stock price remaining below $1 for an extended period
Business Sustainability	Transitioning from sports technology to Web3, with questionable execution capabilities
Excessive Equity Dilution	Nearly 10-fold expansion of outstanding shares, severely harming the interests of original shareholders
Regulatory Uncertainty	Tokenized asset transactions face scrutiny from the SEC and global regulators

• The company only has
  8 employees
  [3], making it difficult to support the $500 million joint venture project
• Highly reliant on external financing to sustain operations
• The business model has not yet generated a stable revenue stream

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1. Negative Factors Dominate:
   • The 98% stock price drop in one year reflects the market’s extreme pessimism about the company’s prospects
   • Large-scale dilution of outstanding shares indicates the company is facing ongoing funding pressure
   • Business transformation to the regulatory-sensitive Web3 space brings high uncertainty

2. Potential Positive Factors:
   • The reverse stock split temporarily relieved the delisting risk
   • Successful Web3/tokenization business may bring high returns
   • Has $30 million in Solana token investment and a partnership with JuCoin

3. Investor Action Recommendations:
   • Existing Holders:
     Evaluate whether to continue holding, consider stop-loss measures
   • Potential Investors:
     Recommended to avoid; reconsider after the business model is validated
   • All Investors:
     Closely monitor subsequent Form 8-K filings and 10-Q reports

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[1] SEC EDGAR - AiRWA Inc Form 8-K (2025-10-22)
https://www.sec.gov/Archives/edgar/data/1674440/000149315225019012/form8-k.htm

[2] StockTitan - YYAI 8-K Report
https://www.stocktitan.net/sec-filings/YYAI/8-k-connexa-sports-technologies-inc-reports-material-event-0471a9f33765.html

[3] Jinling AI - Company Overview Data
API Source: get_company_overview(Y)

[4] Yahoo Finance - AiRWA Inc $15.69M Registered Direct Offering
https://finance.yahoo.com/news/airwa-inc-announces-15-69-130000020.html

[5] Fintel - YYAI 8-K Details
https://fintel.io/topic/what-were-the-key-details-of-the-october-6-2025-8-k-regarding-the-jucoin-investment-and-name-change-1611-2264

[6] StockTwits - AiRWA 1-for-50 Reverse Split Analysis
https://stocktwits.com/news-articles/markets/equity/ai-rwa-retail-traders-bet-on-massive-short-squeeze-as-1-for-50-reverse-split-kicks-in/cLGiCfAR3Mb

[7] SEC EDGAR - AiRWA Inc Form 8-K (2025-10-07)
https://www.sec.gov/Archives/edgar/data/1674440/000149315225017234/form8-k.htm

[8] Fintel - YYAI Institutional Ownership & Price Data
https://fintel.io/so/us/yyai