The Investment Case
An Operating MLB Sports Agency With Recurring Commission Revenue, Expanding Into NIL and Layering on AI-Driven Brand Matching
Adapti, Inc. (OTC: ADTI) is a Nevada corporation, formerly Scepter Holdings, built around its acquisition of The Ballengee Group, a Dallas-based MLB representation agency with over 150 MLB and MiLB clients and 75+ NIL and amateur athletes, including All-Star and standout names such as Seth Lugo, Ke'Bryan Hayes, Spencer Steer, Jordan Hicks, Ernie Clement, and Jonathan Aranda. Player contract commissions have reportedly exceeded $5 million annually for several consecutive years, giving Adapti a recurring revenue base most early-stage OTC companies lack. In April 2026 Adapti added Levelution Sports Agency to expand into the NIL market, and is developing AdaptAI, a proprietary platform intended to pair brands with athletes and influencers. The company is still posting consolidated net losses and a working capital deficit, so integration execution and the path to consolidated profitability remain the central questions for this stock.
Valuation Snapshot
Sources: StockAnalysis, Yahoo Finance, Adapti.io, SEC EDGAR, Adapti Investor Overview (5/20/26)
Company Overview
- Corporate history: Incorporated 2007, formerly Scepter Holdings, renamed Adapti in May 2025. Effected a 1-for-4,000 reverse stock split effective May 28, 2025, resetting shares outstanding to approximately 8.7 million.
- Legacy business wound down: Ceased marketing the Dermacia health and beauty line; no longer generates revenue from that business.
- Ballengee Group acquisition: Closed July 14, 2025 for 6,500,000 shares, a $7,500,000 promissory note, and up to $20,000,000 in earnout shares.
- Levelution Sports acquisition: Closed April 1, 2026 for 324,675 shares, with 32,468 held in escrow for up to 18 months.
- Revenue streams: Player contract commissions ($5M+/year via Ballengee), sponsorship and endorsement deals, licensing and merchandising, content production, NIL representation, and brand strategy services.
- Leadership: CEO Adam Nicosia leads the company; CFO Ben Cary appointment pending; CRO Omar Karim oversees revenue and partnerships.
The Ballengee Group at a Glance
The Ballengee Group is a full-service MLB and NIL representation agency based in Dallas, Texas, handling contract negotiations, marketing deals, public relations, and brand partnerships for its athletes.
- Notable MLB clients: Seth Lugo (Royals), Ke'Bryan Hayes and Spencer Steer (Reds), Jordan Hicks (White Sox), Ernie Clement (Blue Jays), Jonathan Aranda (Rays), Daniel Palencia (Cubs), Victor Scott II (Cardinals).
- NIL / amateur pipeline: Top college prospects represented include players from LSU, University of Virginia, University of Cincinnati, and University of Arkansas.
- Brand campaign work: Campaigns for Factor, Levrack, MLB The Show, and Logan Services; the Logan Services commercial featuring Spencer Steer won a Platinum Marcom Award for Best Single TV Spot.
- Contract structure: All MLB player contracts represented are guaranteed contracts under MLB rules, supporting predictable future commission value.
Source: Ballengee Group Media Kit, 2026.
Growth and Acquisition Strategy
- Ballengee Group: Elite athlete representation grounded in decades of professional sports expertise.
- Levelution Sports: Specialized NIL guidance, brand partnerships, and recruiting strategy for emerging athletes.
- Matchpoint: Streamlining athlete agreements, brand endorsements, and team management through data-informed, fully integrated workflows.
- Media/Marketing Agency: Provides creative resources, influencer activation experience, and brand sponsorship relationships and personnel.
- Experiential: Delivering brand activations through immersive, interactive experiences, live events, and athlete partnerships.
- Sports Management Agencies: Aimed at athlete-influencer roster growth across all major professional sports.
Source: Adapti, Inc. investor materials.
Executive Leadership Team
- CEO: EcoScientific Labs
- SVP: Sales, Klymit
- SVP: Goal Zero
- CEO: Nicozia Group Consulting Inc.
- COO: Omniverse Group
- CFO: Ingrooves
- SVP: Trinity Capital
- Founder and President: MAB Ventures Digital Marketing Agency
- VP of Business Development: PayDivvy
- Founding Member: FitLab, LLC
Advisory Board
- CMO: RealDefense
- CMO/CRO: FitLab, LLC
- CEO: Geographic Farming
- SVP: Intelligent Beauty/Techstyle
- President, Entertainment: Walt Disney Television
- VP: Original Series, Netflix
- VP of Business Affairs: ABC Studios
- President/CMO: SavageX Fenty
- CMO: JeNu Beauty
- CMO: Dermstore
- CFO: TTM Technologies
- CFO: Aerojet Rocketdyne Holdings
- Dir. Internal Audit: Northrop Grumman
Source: Adapti, Inc. investor materials and SEC Form 8-K, Jul 23, 2025.
Recent Milestones
- May 2026: Investor overview lists shares around $1.20, ~8.7M shares outstanding, ~$10.4M market cap.
- Apr 2026: Levelution Sports Agency acquisition closes, adding NIL representation.
- Mar 2026: CFO Marilu Brassington resigns; CEO Adam Nicosia steps in as interim principal financial officer.
- Sep 2025: First major revenue quarter, approximately $2.13 million, reflecting Ballengee operations.
- Jul 2025: Ballengee Group acquisition closes; Jeff Campbell appointed Executive Chairman.
- May 2025: 1-for-4,000 reverse split effective; company renamed from Scepter Holdings to Adapti, Inc.
What Investors Should Know
- Established core business: Ballengee Group is an operating agency with 150+ MLB/MiLB clients and a multi-year commission track record, not a pre-revenue concept.
- Still unprofitable consolidated: Net loss of approximately $2.89 million for the six months ended September 30, 2025; working capital deficit of about $781,054; going concern dependence on additional financing disclosed.
- Acquisition-funded growth means dilution: Ballengee and Levelution deals were paid substantially or entirely in stock, including up to $20 million in Ballengee earnout shares.
- Small float, high volatility: 52-week range of $0.16 to $4.14 on approximately 8.7 million shares outstanding; wide spreads and large price swings are typical.
- Management transition: CFO appointment (Ben Cary) is pending; CEO has been serving as interim financial officer.
- NIL and AI optionality: Levelution and AdaptAI represent growth bets layered on top of the established Ballengee commission base, with execution still to be proven.
Key Resources & Contacts
Company Website: Adapti.io
Ballengee Group: ballengeegroup.com
SEC EDGAR Filing History: All ADTI Filings
OTC Markets Profile: ADTI on OTC Markets
Adapti Contact: Omar Karim, President & CRO — 714-493-4192 — omar@adapti.io
Investor Relations: Baystone Group — 410-825-3930 — info@baystonegp.com
Summary
Adapti, trading around $1.20 with a market cap of approximately $10.4 million as of May 20, 2026, is built around the Ballengee Group, an operating MLB sports agency with 150+ pro clients and 75+ NIL athletes that has reportedly generated $5 million-plus in annual player commissions for several consecutive years. Total trailing twelve month revenue of approximately $3.66 million has been reported in SEC filings, but the company remains unprofitable at the consolidated level with a working capital deficit and going concern disclosures. The April 2026 Levelution Sports acquisition and the AdaptAI platform represent growth optionality on top of the established commission base. Investors should weigh the recurring revenue and named-client roster against the dilution, liquidity, and execution risks typical of small OTC companies.
Disclaimer: This report is for informational and educational purposes only and does not constitute investment advice. It is not to be considered as an offer to buy or sell securities of any type. OTC penny stocks are highly speculative and carry significant risk of total loss. Adapti, Inc. has reported net losses, a working capital deficit, and going concern disclosures. Some figures in this report are drawn from Adapti's own investor materials and the Ballengee Group Media Kit and reflect management's views rather than independent verification; Baystone Group has been compensated to provide investor relations services for Adapti. Always do your own due diligence and consult with a licensed financial advisor before making investment decisions. DDAmanda may hold a position in ADTI. Data current as of June 14, 2026.