Financial Performance - The company reported revenues of $20,729 for the year ended December 31, 2024, a decrease of 83% from $122,112 in 2023, primarily due to lower sales volume of COVID-19 Antigen Rapid Test Kits [263][264]. - The cost of revenues decreased to $52,595 in 2024 from $375,845 in 2023, reflecting a decline in sales volume of COVID-19 Antigen Rapid Test Kits [265]. - The company's operating loss increased by $634,808 to $13,841,204 in 2024, reflecting continued investment in growth strategy despite a gross loss in product sales [273]. - Net loss for 2024 was $14,863,161, an increase of $1,092,612 (8%) from $13,770,549 in 2023, attributed to increased non-exclusive use of certain patents related to VOC and POCT technologies [275]. Research and Development - Research and development (R&D) expenses increased by $1,096,535 (15%) to $8,413,923 in 2024, driven by increased staffing expenditures and co-research expenses [269]. - Clinical trial spending is expected to increase to advance VOC POCT and VELDONA drug candidates, alongside increased investment in R&D activities [290]. - The VOC co-development program achieved 79% accuracy in detecting 22 different volatile organic compounds (VOCs) in semiconductor factories [248]. Cash Flow and Financing - As of December 31, 2024, the company had available cash and cash equivalents of $3,892,919, up from $1,885,628 in 2023 [276]. - Net cash used in operating activities increased by $1,113,599, representing a 24% increase from 2023 to 2024, primarily due to a net loss for the year [278]. - Net cash used in investing activities rose to $125,292 in 2024 from $101,525 in 2023, a 23% increase attributed to higher refundable deposits and noncurrent assets [280]. - Cash provided by financing activities increased significantly by $3,102,073, reaching $8,025,746 in 2024, a 63% increase compared to $4,923,673 in 2023 [281]. - The company anticipates funding operations over the next twelve months through cash reserves, business revenues, and potential debt financing, with no assurance of achieving profitability [283]. - The company entered into an At The Market Offering Agreement on May 31, 2024, allowing for the issuance of shares based on market demand, with an aggregate offering price of $1,840,350 [286]. - The company plans to use net proceeds from the ATM offering to fund product development and general corporate purposes [287]. - As of December 31, 2024, no shares have been sold under the ATM Agreement [288]. Operational Expenses - Selling, general and administrative (SG&A) expenses slightly decreased by $239,860 (4%) to $5,395,415 in 2024, due to reduced professional expenses and public relations fees [271]. - The company may continue to incur operating losses in the near term as it grows its business, with expected increases in selling, general and administrative expenses, and R&D expenses [291]. Strategic Initiatives - The company signed a Memorandum of Understanding (MOU) with Taiwan Tanabe Seiyaku Co., Ltd. for the manufacturing and promotion of its Sjögren's syndrome drug based on VELDONA [246]. - The company plans to conduct clinical studies in Taiwan for VELDONA related to HIV-related oral warts and Sjögren's syndrome in 2025 [247]. Miscellaneous - The company had no off-balance sheet arrangements as of December 31, 2024 [299].
Ainos(AIMD) - 2024 Q4 - Annual Report