AiRWA Inc. (NASDAQ: YYAI) will implement a 1-for-20 reverse stock split of its outstanding common stock, effective at the opening of trading on August 17, 2026. The corporate action reduces the total number of outstanding shares from approximately 91,627,558 to approximately 4,581,378. This consolidation follows approval by the company’s stockholders at the annual meeting held on April 17, 2026, which authorized reverse splits within a range of 1-for-40 to 1-for-800 over the next two years. The Board of Directors selected the 1-for-20 ratio for immediate implementation.

Mechanics of the Reverse Split

Under the approved terms, every 20 shares of issued and outstanding common stock will automatically combine into one share. The company will not issue fractional shares; instead, stockholders holding positions that result in fractions will receive a rounded-up whole share. ClearTrust, LLC serves as the exchange agent for the transaction and will provide transaction statements reflecting post-split shareholdings.

The reverse split does not alter the number of authorized shares or the par value per share. AiRWA’s common stock will continue trading under the existing Nasdaq ticker symbol YYAI, but with a new CUSIP number: 831445705. The rights and preferences of the common stock remain unmodified.

Adjustments to Equity Awards

Proportionate adjustments will apply to the exercise prices and share counts underlying outstanding equity awards and warrants. Similarly, the number of shares issuable under the company’s equity incentive plans will be adjusted to reflect the split ratio. All common stock issued pursuant to the reverse split remains fully paid and non-assessable.

About AiRWA Inc.

AiRWA Inc. operates as an AI-specialist company providing end-to-end services for enterprises transitioning from raw data to intelligent applications. Through its wholly-owned subsidiary, Yuanyu Enterprise Management Co., Limited, the company holds advanced patents and proprietary technology licensed globally for localized digital matchmaking solutions. AiRWA is also driving innovation in digital finance through AiRWA Exchange, which focuses on the tokenization of real-world assets (RWA), particularly tokenized U.S. stocks.

Stifano Mario has raised significant concerns regarding AiRWA's capital allocation and financing practices in an SEC filing. He specifically questions the terms on which AiRWA has raised capital and any participation by related parties in these financings. Mario intends to engage in discussions with the board concerning governance issues and a potential pivot toward critical minerals. These disclosures highlight growing scrutiny over the company's financial structure and strategic direction.

Key Concerns Raised

The filing outlines specific areas of contention that Mario plans to address with the board:

• Capital Allocation: Significant concerns regarding how AiRWA allocates its capital.
• Financing Practices: Issues with the general practices used in financing activities.
• Capital Raise Terms: Concerns about the specific terms under which capital was raised.
• Related-Party Participation: Scrutiny of any involvement by related parties in the financings.

Strategic And Governance Discussions

Mario stated his intention to engage in discussions with the board on two primary fronts: governance and a pivot to critical minerals. This indicates a push for strategic realignment alongside improved oversight mechanisms. The focus on critical minerals suggests a potential shift in business focus that may require new financing structures or governance frameworks.

What The Numbers Show

While no specific financial figures were disclosed in this filing, the nature of the concerns points to structural risks in AiRWA's balance sheet and funding sources. The emphasis on related-party participation and financing terms suggests that investors should monitor future disclosures for details on debt covenants, equity dilution, or conflicts of interest. The planned discussions on governance imply that current oversight mechanisms may be deemed insufficient by key stakeholders.