Financial Performance - In Q1 2024, the company reported revenues of 49,164 in Q1 2023, primarily due to the cessation of COVID-19 antigen rapid test kit sales[107][108]. - The cost of revenues in Q1 2024 was 100,848 in Q1 2023, reflecting a decrease in sales volume[109]. - The gross loss for Q1 2024 was 51,684 in Q1 2023, attributed to lower sales volume and reduced cost of revenue[110]. - The company's operating loss increased by 24% to 2,513,032 in Q1 2023, reflecting ongoing investments in growth strategies[116]. - Net loss for Q1 2024 was 2,520,475 in Q1 2023, primarily due to rising operating expenses[119]. Expenses - Research and development (R&D) expenses increased by 23% to 1,698,883 in Q1 2023, driven by clinical trial fees and staffing expenditures[112]. - Selling, general and administrative (SG&A) expenses rose by 35% to 762,465 in Q1 2023, due to increased share-based compensation and professional expenses[114]. Cash Flow and Investments - As of March 31, 2024, the company had cash and cash equivalents of 1,885,628 at the end of 2023[120]. - Cash used for investing activities increased to 72,483 in Q1 2023, primarily due to an increase in refundable deposits and other noncurrent assets[123]. - Cash provided by financing activities decreased to 800,000 in Q1 2023, reflecting a decrease of $22,500[124]. Future Plans and Strategies - The company plans to advance its flagship VOC POCT candidate, Ainos Flora, and co-develop a VOC sensing platform with partners, pivoting away from COVID-19 test kits[102]. - The company aims to leverage its intellectual property and develop multiple revenue streams through commercialization of its product portfolio[100]. - The company expects an increase in clinical trial spending to advance VOC POCT and VELDONA drug candidates, along with increased investment in R&D activities[125]. - The company anticipates that cash reserves, business revenues, and potential debt financing will fund operations over the next twelve months, with no assurance of achieving profitability[126]. Accounting and Reporting - Management's financial analysis is based on unaudited condensed financial statements prepared in accordance with U.S. GAAP[127]. - The company evaluates estimates related to inventory valuation, useful lives of property and equipment, and impairment testing of intangible assets on an ongoing basis[128]. - There have been no material changes to critical accounting policies and estimates compared to the previous annual report, except for those discussed in the notes[129]. - The company is classified as a smaller reporting company and is not required to provide additional market risk disclosures[130].
Ainos(AIMD) - 2024 Q1 - Quarterly Report