2. Acoustic-Coupled EEG Signal Enhancement Developing Healthcare and Intelligent Interaction Through Core Acoustic Innovation BEIJING, Dec. 11, 2025 /PRNewswire/ -- Datasea Inc. (NASDAQ: DTSS) ("Datasea" or the "Company"), a global technology enterprise specializing in acoustic high-tech innovations and AI multimodal digital solutions, today announced progress in its research and development efforts related to brain–computer interfaces (BCI) technologies. The Company's Real-Time Closed-Loop Vibration-Enhanc ...

BEIJING, Nov. 18, 2025 /PRNewswire/ -- Datasea Inc. (NASDAQ: DTSS) ("Datasea" or the "Company") ,a Nevada-based high-tech enterprise engaged in acoustic technologies and AI multimodal digitalization, today issues a brief statement regarding recent trading activity in its common stock. The Company has observed fluctuations in its share price and trading volume over the past several days. Datasea emphasizes that operations remain normal, the Company's business and financial position are solid, and all core in ...

Financial Performance - Revenues for the three months ended September 30, 2025, were $13,813,551, a decrease of 34.5% compared to $21,081,094 for the same period in 2024[10]. - Gross profit improved to $1,169,092 for the three months ended September 30, 2025, compared to $196,981 in the prior year, marking a significant increase[10]. - Operating expenses decreased to $1,457,715 for the three months ended September 30, 2025, down from $2,227,531 in 2024, a reduction of 34.5%[10]. - The net loss attributable to the Company for the three months ended September 30, 2025, was $201,026, compared to a net loss of $1,961,989 in the same period of 2024, reflecting an improvement of 89.8%[10]. - For the three months ended September 30, 2025, the Company reported a net loss of approximately $0.20 million, compared to a net loss of $1.96 million for the same period in 2024[32]. - The net loss for the three months ended September 30, 2025, was $413,389, a slight improvement from a net loss of $452,170 in the same period of 2024[47]. - Revenue for the same period was $13,813,551, a decrease of $7,267,543 or 34.47% compared to $21,081,094 in the previous year, due to a strategic contraction of low-margin business[167]. Assets and Liabilities - Total assets increased to $7,691,360 as of September 30, 2025, up from $6,735,881 as of June 30, 2025, representing a growth of 14.2%[9]. - Total current assets increased to $2,387,658 as of September 30, 2025, from $1,734,402 as of June 30, 2025, representing a growth of approximately 37.7%[47]. - Total liabilities increased to $4,564,383 as of September 30, 2025, from $3,735,390 as of June 30, 2025, indicating a rise of approximately 22.2%[47]. - The total stockholders' equity rose to $3,013,452 as of September 30, 2025, compared to $2,942,195 as of June 30, 2025, an increase of 2.4%[9]. - The Company had an accumulated deficit of approximately $44.73 million as of September 30, 2025[32]. Cash Flow and Investments - Cash and cash equivalents increased to $745,264 as of September 30, 2025, from $620,807 at the beginning of the period, representing a growth of 20.1%[14]. - Cash flows from operating activities generated $879,299 for the three months ended September 30, 2025, compared to a cash outflow of $732,655 in the same period of 2024[14]. - The Company acquired intangible assets amounting to $1,551,009 during the three months ended September 30, 2025[14]. - The total amount of unearned revenue increased to $180,195 as of September 30, 2025, up from $150,088 as of June 30, 2025, reflecting a growth of approximately 20.5%[111]. Stock and Equity Transactions - The Company issued 95,377 shares for stock compensation expense, contributing to an increase in additional paid-in capital to $47,582,488 as of September 30, 2025[11]. - The Company granted 398,925 restricted shares to Chairwoman and CEO Ms. Zhixin Liu for the acquisition of software copyrights, with the purchase accounted at a historical cost of $0[136]. - The Company recorded stock compensation expenses of $3,900 and $4,500 to independent directors for the three months ended September 30, 2025 and 2024, respectively[140]. - The Company issued 18,367 shares to a consultant, with a fair value of $36,000 recorded as stock compensation expense for the three months ended September 30, 2025[142]. Research and Development - Research and development expenses are expensed in the period incurred, primarily consisting of materials, salaries, and third-party fees[79]. - The Company achieved a major technological breakthrough in AI-enhanced acoustic coupling for neural regulation and precision medicine in August 2025, entering an accelerated commercialization stage[172]. - The Company has established in-depth cooperation with top research institutions to drive ongoing innovation in acoustic technologies[176]. - New product developments include ultrasonic disinfectants and AI medical robots, targeting healthcare and medical aesthetics sectors[199]. Strategic Initiatives - The Company established a wholly owned subsidiary, Datasea Acoustic, LLC, in Delaware on July 31, 2023, to expand its products to the North American market[30]. - The Company formed a joint venture, Nanjing Shuhai Equity Investment Fund Management Co. Ltd., with a 99% ownership interest to facilitate access to government funding for new technology development[20]. - Datasea plans to strengthen its competitive advantages through scaled sales and international deployment of high-margin acoustic high-tech products and AI multimodal technology solutions in fiscal year 2026[175]. - The Company is exploring options to raise additional funds through strategic investors or public offerings to support its operations and R&D[33]. Market and Product Development - Flagship products like the Tianer sterilization series and Star Dream sleep-aid systems are driving high-margin growth, with plans for overseas market expansion[192]. - The Company has built a comprehensive sound-based health ecosystem covering environmental sterilization, physiological regulation, cognitive enhancement, and sleep improvement[191]. - The Company is developing high-end clinical intervention systems for tertiary hospitals and portable therapeutic devices for community rehabilitation centers, extending neuromodulation applications[189]. - The Company is focusing on five key sub-sectors: acoustic healthcare, acoustic health, acoustic industry, acoustic agriculture, and acoustic IoT, leveraging cutting-edge technologies[206].

Core Insights - Datasea Inc. is transitioning from scale expansion to profitability optimization, resulting in a strategic restructuring of its revenue mix towards high-value, technology-driven businesses [4][7] - The company's gross margin increased significantly to 8.46%, up 753 basis points from the previous year, due to a focus on high-margin AI multimodal and acoustic technology solutions [4][7] Financial Performance - Revenue for the first quarter of fiscal 2026 was $13.81 million, a decrease of 34.5% compared to $21.08 million in the same quarter of 2025, attributed to the strategic optimization of its high technology business [7] - Gross profit rose to $1.17 million, a 5.9x increase from $0.02 million in the first quarter of 2025, reflecting improved cost efficiencies and a focus on profitability [7] - The gross margin improvement is linked to higher contributions from high-margin 5G+AI multimodal digital solutions and acoustic technology products [7] Business Segments - The core revenue driver was the 5G+AI multimodal digital business, contributing $13.32 million during the quarter, benefiting from the expanding industry in China [8] - New vertical solutions generated revenue of approximately RMB 6.53 million (around $0.92 million), including AI multimodal services for SMEs and digital rural services, enhancing overall profitability [8] Strategic Outlook - Datasea aims to achieve sustainable profitability and enhance its gross margin profile through continuous innovation and the synergistic development of its two core businesses [9] - The company plans to upgrade its proprietary AI multimodal platform and expand high-margin customized solutions and SaaS-based subscription services [13] - In the acoustic high-tech segment, Datasea will focus on R&D in 'Acoustics + AI + Neuro-Regulation' to create new growth opportunities in non-pharmacological health management [13]

Financial Performance - For the fiscal year ended June 30, 2025, the Company reported revenue of $71,616,820, an increase of $47,640,953, or 198.70% compared to the previous fiscal year[374]. - The primary revenue source was from 5G AI multimodal digital business, generating $70,682,408, which contributed to the overall revenue growth[446]. - The Company recorded a gross profit of $2,443,948, an increase of $1,969,843, or 415.49%, compared to the same period of the prior year[375]. - The company achieved a gross profit margin of 3.41%, up from 1.98% in the previous year, driven by a strategic increase in high-margin product sales[499]. - The company incurred a net loss of $5,085,694 for the year ended June 30, 2025, an improvement from a net loss of $11,377,064 in the prior year[444]. - Operating expenses decreased by $5,000,829, a reduction of 39.69% from $12,599,492 in the prior year[490]. - The company had a negative cash flow from operating activities of approximately $2.37 million for the year ended June 30, 2025[430]. - As of June 30, 2025, the company had an accumulated deficit of approximately $44.53 million[430]. - Net loss from continuing operations decreased by $7,124,916 or 58.4% to $5,085,694 for the year ended June 30, 2025, due to increased gross profit and reduced operating expenses[465]. - Cash balance increased by $439,545, or 242.49%, from $181,262 in 2024 to $620,807 in 2025[492]. Revenue Growth - The AI Multimodal Digitalization Business segment generated revenue of $70.68 million, a 199.49% increase from $23.60 million last year, driven by rapid expansion of core clients[376]. - Revenue from technical solutions related to AI multimodal services reached RMB 8.9 million (approximately USD 1.24 million), indicating successful implementation of the company's digital business[426]. - Revenue from Qingdao Ruizhi Yixing reached RMB 392,182,085.13 (approximately USD 54,775,147) from July 1, 2024, to June 30, 2025, through the sale of 5G+AI multimodal data recharge cards[405]. - From July 1, 2024, to June 30, 2025, revenue from Shuhun Network reached RMB 10,981,054.18 (approximately USD 1,533,698) through the sale of 5G+AI multimodal data cards[406]. Customer Base and Market Expansion - The Company expanded its customer base significantly, adding 14 beauty service companies and deploying products into 463 beauty and personal care salons across Northern China[378]. - The number of AI multimodal clients increased from 8 to 15, with leading clients contributing revenue exceeding $10 million each, indicating strong customer retention[384]. - Datasea serves over 52 million businesses and households across China, with more than 99% being SMEs, providing digital and intelligent services[467]. - The company aims to leverage its dual operational bases in China and the United States to pursue international opportunities and expand its market presence[382]. - The company aims to scale international markets over the next three to five years, particularly in North America, Europe, and Asia-Pacific, supported by acquisitions and localized market strategies[513]. Research and Development - The company has established a three-tier R&D system to ensure effective resource allocation and project progress[392]. - Research and development expenses rose by $555,654 or 154.6% to $914,996 for the year ended June 30, 2025, reflecting a focus on expanding 5G-related applications[457]. - The company plans to increase R&D investment, particularly in integrating acoustic technologies with AI, to drive future growth[502]. - The company plans to focus on R&D in neuro-regulation, brain-computer interfaces, and ultrasonic precision machining, promoting commercialization of new technologies[513]. Strategic Initiatives - Datasea's strategic objective includes establishing differentiated advantages in acoustic and digitalization technologies through continuous innovation and high-efficiency solutions[383]. - The M&A strategy focuses on technology enhancement, market synergy, and ecosystem improvement to accelerate technological breakthroughs and market expansion[396]. - The company is targeting innovative companies with core acoustic modules and sensor technologies for acquisitions to enhance its technological capabilities[401]. - The company aims to expand into the European market, promoting acoustic medical and intelligent manufacturing products through local collaborations[409]. - Strategic priorities include market expansion, M&A opportunities, and optimizing the product mix to enhance margins and profitability[506][508]. Operational Efficiency - The company operates 463 offline beauty salon locations and utilizes online live-streaming e-commerce channels to enhance market penetration for its "Datasea Tian Ear" disinfection series[389]. - The company is establishing localized operational systems in key overseas markets to enhance market responsiveness and reduce operational costs[403]. - The company reported allowances for slow-moving and obsolete inventory of $152,907 and $53,650 as of June 30, 2025, and 2024, respectively[519]. - The company maintains a $0 bad debt allowance for credit losses as of June 30, 2025, and 2024[518]. Environmental and Social Governance - The company is committed to integrating ESG principles into its operations, with initiatives leading to a 10% reduction in energy consumption per production line[433]. - The company emphasizes innovation-driven, green development, and aims to promote environmentally friendly technologies and products[511]. Financial Position - The company had a working capital deficit of $704,978 as of June 30, 2025, with a current ratio of 0.81:1, improving from a deficit of $952,090 and a current ratio of 0.74:1 in 2024[470]. - Net cash provided by financing activities was $6,945,370 for the year ended June 30, 2025, primarily from the sale of common stock[477]. - Outstanding bank loans rose to $2,374,767, reflecting a 102.92% increase from $1,170,298 in 2024[498]. - The company adopted the current expected credit loss (CECL) methodology effective July 1, 2023, with no transition adjustment required[516]. - The company has no off-balance sheet arrangements that could affect its financial condition or results of operations[512].

Core Insights - Datasea Inc. achieved a significant milestone in fiscal year 2025, reporting record revenue of $71.62 million, a 198.7% increase from $23.97 million in fiscal year 2024, and reached net income breakeven in the fourth quarter [2][3][7] Financial Highlights - Revenue for fiscal year 2025 was $71.62 million, up 198.7% from $23.97 million in fiscal year 2024 [2][7] - Gross profit increased to $2.44 million, a 415.5% rise from $0.47 million year-over-year [2][7] - The company achieved net income breakeven in the fourth quarter of fiscal year 2025, with a net loss for the year reduced to $5.09 million from $15.7 million in fiscal year 2024, marking a 67.6% decrease [2][7] - Intangible assets grew to $3.50 million, a 540.3% increase from $0.55 million in the prior year, reflecting the success of the company's strategic transformation [7] Business Segments - The AI Multimodal Digitalization segment generated revenue of $70.68 million, representing a 199.49% year-over-year increase, significantly contributing to overall performance [7][10] - Newly developed high-margin customized solutions contributed approximately RMB 8.9 million (US$ 1.24 million) in revenue, emerging as a new growth driver [7][10] - The Acoustic High-Tech segment recorded revenue of RMB 3.7 million (US$ 0.5 million) from comprehensive acoustic solutions, indicating a strategic shift towards high-margin solution products and services [10] Management Commentary - The CEO highlighted the company's transition from building scale to achieving profitability and sustainable growth, emphasizing the success of its dual-engine business model [3][10] - The company aims to maximize shareholder value and has established a solid foundation for long-term goals [3] Business Outlook - Datasea plans to continue advancing its dual growth engines of AI Multimodal Digitalization and Acoustic High-Tech to drive diversified high-tech growth [8][10] - The company is focusing on expanding its presence in healthcare through R&D in acoustics and neuro-regulation, aiming to build a closed-loop system for non-pharmacological health management [10] - Datasea is also pursuing an M&A strategy to enhance its capabilities and market channels in both China and the United States [10]

Core Insights - Datasea Inc. has signed a service agreement with Hainan Zhixingjian to commercialize acoustic smart health shoes, marking a significant step in the application of its acoustic technology in the health wearable market [1][3]. Agreement Overview - Hainan Zhixingjian is focused on smart health wearables and has shipped over 3 million pairs of smart shoes, holding more than 50 patents and software copyrights [2]. - The collaboration aims to leverage the resources of the Hainan Free Trade Zone to enhance product offerings in the smart health sector [2]. Technology and Financial Details - The contract is for 12 months, during which Datasea will provide proprietary acoustic health technology solutions for smart health insoles, enabling various health benefits [4]. - The technology service fee is based on production volume, starting at RMB 9 (USD 1.26) per pair, decreasing to RMB 7 (USD 0.98) if production exceeds 1 million pairs [4]. - Datasea anticipates generating up to RMB 7 million (approximately USD 0.98 million) in technology service fees during the contract period [4]. Strategic Implications - This partnership exemplifies Datasea's transition from hardware sales to a solution-driven profit model, enhancing its market position in the health sector [3][5]. - The integration of acoustic technology with AI is expected to create scalable commercialization paths and establish a recurring revenue model [3][5].

Core Insights - Datasea Inc. has achieved a significant breakthrough in acoustic technology, integrating sound wave coupling with AI for precision health management and clinical intervention [1][3] - The healthcare application market is projected to exceed $100 billion in China and approach $90 billion globally by 2030, driven by the demand for non-pharmaceutical precision health solutions [2][6] Company Developments - Datasea has activated its commercialization engine, utilizing proprietary sound wave coupling technologies to regulate the nervous system and create a closed-loop ecosystem for detection, analysis, diagnosis, and real-time intervention [3][4] - The company is focusing on ultrasound neuromodulation as its core product strategy, having developed innovative hardware with medical-grade precision and commenced initial commercialization efforts [4][5] Market Positioning - The company is well-positioned to address critical pain points in healthcare, with its acoustic technologies expected to drive disruptive transformation in precision health management [6][7] - Datasea aims to leverage this breakthrough to further advance technological iterations and enhance clinical applications, contributing to global wellness and delivering sustainable value to shareholders [7] Strategic Initiatives - The company is accelerating technology transfer, product deployment, and solution rollout through strategic collaborations to drive sustained growth momentum [5] - Datasea has established a wholly-owned subsidiary in Delaware to enter the U.S. markets as part of its global expansion plan [9]

Core Insights - Datasea Inc. has secured two new service contracts totaling up to $100 million for 5G-AI multimodal digital services, indicating strong client loyalty and growth momentum heading into FY2026 [2][3] Company Overview - Datasea Inc. specializes in acoustic high-tech products and 5G+AI multimodal digital solutions, with a focus on providing enterprise and retail customers with innovative services [5] - The company operates a cloud platform based on AI for its 5G multimodal digital segment, leveraging advanced R&D technology and precision manufacturing [5] Financial Performance - The contracts with Qingdao Ruizhi Yixing and Qingdao Dong'an are each valued at up to $50 million, reflecting confidence in Datasea's 5G-AI solutions [2][3] - Qingdao Ruizhi Yixing contributed over $38.3 million in revenue during the first nine months of fiscal year 2025, showcasing the high degree of customer retention [3] Strategic Expansion - The new agreements will support the delivery of enhanced 5G multimodal digital services, including AI-enabled interaction platforms and precision marketing systems, further solidifying Datasea's leadership in the 5G-AI value-added services market in China [3][4] - Datasea established a wholly-owned subsidiary, Datasea Acoustics LLC, in Delaware in July 2023 as part of its global expansion strategy [5]

Core Insights - Datasea Inc. reported significant revenue growth in the third fiscal quarter of 2025, with revenue reaching $10.4 million, a 653.6% increase from $1.38 million in the same period of fiscal 2024 [1][5] - The company’s total revenue for the first nine months of 2025 was $51.9 million, up 164.8% compared to $19.6 million for the same period in fiscal 2024 [1][5] - The growth was primarily driven by the strong performance of the 5G+AI multimodal digital segment and the acoustic high-tech products [2][5] Financial Highlights - Gross profit for the third fiscal quarter of 2025 was $0.3 million, with a gross margin of 2.9%, an improvement from $0.01 million and 0.7% in the same period of the prior year [5] - The net loss for the third fiscal quarter of 2025 was $1.8 million, significantly improved from a net loss of $4.1 million in the same period of the prior year [5] - The company’s cash balance increased by 378.2% to $0.9 million, while accounts receivable dropped by 93.2% to $0.05 million, indicating improved capital turnover [5] Business Segment Highlights - The 5G+AI multimodal digital segment continues to lead in China, with notable market expansion and long-term customer contracts [4] - The acoustic high-tech segment saw the placement of products in 463 beauty and health stores in Northern China, reflecting growing market acceptance [4] Business Outlook - Datasea reaffirms its full fiscal year 2025 revenue guidance of approximately $90 million, representing a 275% increase over fiscal year 2024 [7] - The company plans to drive profitability by scaling high-margin acoustic high-tech products and expanding into international markets through strategic partnerships and mergers & acquisitions [8]