MicroSectors 3× Long Brazil Etns

What they do

Adapti, Inc. (formerly Scepter Holdings) manages the Dermacia brand of health and beauty products, sold online via dermaciapro.com and other marketplaces. The company has developed an AI platform called AdaptAI (or Adapti) that analyzes social media to match products and brands with influencers. Following its July 2025 acquisition of Ballengee Group, LLC, a Texas-based Major League Baseball agency, Adapti now also operates in sports and athlete representation.

Revenue drivers

• Dermacia cosmetics — Sells Dermacia branded cosmetics online; historically generated less than $15,000 in annual sales and remains the only product line currently sold.
• AdaptAI software — Proprietary AI platform that creates data fingerprints for products and companies to match with influencers; not yet generating revenue and still in beta as of February 15, 2025.
• Ballengee Group (acquired July 2025) — MLB agency with ~150 professional clients (40+ in the Majors) and seven full-time agents; revenue derived from athlete representation — size in Adapti's latest quarterly revenue likely reflected this, as revenue jumped to $2.1M in quarter ending Sept 30, 2025.

Recent performance

For fiscal year 2025, Adapti reported an annual net loss of $430,875. Quarterly revenue rose sharply from $1,244 in December 2024 to $2.1M in September 2025 and $1.5M in December 2025, reflecting the Ballengee acquisition. As of December 31, 2025, the company had total assets of $31.8M, liabilities of $18.3M, and shareholder equity of $13.5M. The 10-Q notes that as of February 15, 2025, AdaptAI was still in beta phase.

Strategy

Adapti has pivoted to a technology-driven acquisition strategy focused on sports management, marketing, and athlete representation. It plans to use AdaptAI to consolidate and scale athlete representation and social monetization services. The company is pursuing acquisitions, including a signed Membership Interest Purchase Agreement for Ballengee (closed July 2025) and a letter of intent to acquire Matchpoint Connections, LLC, which provides NIL software to universities. Management also intends to leverage AdaptAI to boost social media presence for Ballengee athletes.

Risks

• Limited operating history and revenue — The company has struggled to generate substantial sales from Dermacia (historically under $15,000 annually) and AdaptAI has not produced any revenue.
• Acquisition execution risk — The Ballengee deal closed but the company was still negotiating amendments before closing, and the Matchpoint acquisition is not guaranteed.
• Dependence on third-party AI — AdaptAI relies on third-party AI tools (ChatGPT, OpenAI, Google AI) which may not perform as expected or may change terms.
• Need for additional financing — The company cites a current lack of working capital and inability to raise additional financing as key risk factors.

Outlook

Management expects to close the Ballengee acquisition (already closed in July 2025) and intends to enter into an amendment to the agreement, with closing originally targeted for the quarter ending September 30, 2025. The Matchpoint Connections acquisition is expected to close in the second calendar quarter of 2026. AdaptAI remains in beta and is expected to be a key component of future growth once completed.