Ainos(AIMD) - 2025 Q1 - Quarterly Results

Ainos Q1 2025 Financial Results and Business Update Q1 2025 Financial Highlights Ainos reported a significant 412% year-over-year revenue increase in Q1 2025, driven by its AI Nose products, achieving a notable turnaround from a gross loss to a gross profit, while expanding AI Nose technology into robotics and semiconductor sectors and advancing its VELDONA® therapeutic program with key clinical trial approvals Q1 2025 vs Q1 2024 Key Financial Metrics | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues | $106,207 | $20,729 | +412% | | Gross Profit (Loss) | $87,974 | ($6,025) | Turnaround to Profit | - The substantial revenue growth was primarily driven by sales of AI Nose products for elderly care under the Nisshinbo Micro Devices Inc. ("NISD") co-development project[3] - The company is expanding its AI Nose technology beyond healthcare, establishing strategic partnerships in the robotics and semiconductor manufacturing sectors[2][3] - The VELDONA® therapeutics program advanced significantly, securing Taiwan Food and Drug Administration (TFDA) and Institutional Review Board (IRB) approvals for two separate clinical trials in Taiwan[2][4] Management Commentary Management highlighted the successful execution of their long-term strategy, emphasizing the commercial viability of AI Nose technology and its expansion beyond healthcare, noting key milestones in the VELDONA® therapeutics program and a disciplined financial approach that turned a gross loss into a profit, positioning the company for future growth CEO Commentary The CEO emphasized the strategic progress in Q1, highlighting the 412% revenue growth driven by AI Nose sales, detailing the expansion of AI Nose applications into robotics and industrial sectors through new partnerships, aligning with significant market growth projections, and noting key regulatory approvals for the VELDONA® program, reinforcing the company's commitment to innovation and shareholder value - The company is expanding the application of its AI Nose technology from its roots in healthcare into the robotics and industrial sectors through strategic collaborations[3] - Management cited significant market potential, with the global electronic nose market projected to grow from $29.8 billion in 2025 to $76.5 billion by 2032[3] - The VELDONA® program secured TFDA approval for a clinical trial targeting HIV oral warts and IRB clearance for a trial targeting primary Sjögren's syndrome[4] - The CEO positioned Ainos as a U.S.-based innovator pioneering digital scent to provide a missing layer of perception for the next generation of intelligent systems[4] CFO Commentary The CFO highlighted the financial benefits of the company's strategic shift, noting a 412% YoY revenue increase to $106,207 and a 32% reduction in cost of revenues, resulting in a strong turnaround to a gross profit of $87,974 from a gross loss in the prior year, and despite higher non-cash SG&A expenses, disciplined capital management maintained operational efficiency, with continued investment planned for R&D Q1 2025 Financial Performance Highlights | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues | $106,207 | $20,729 | +412% | | Cost of Revenues | $18,233 | $26,754 | -32% | | Gross Profit (Loss) | $87,974 | ($6,025) | Turnaround | - The turnaround from gross loss to gross profit was attributed to the unique product composition of AI Nose sales and a decline in the cost of revenues[4] - Selling, general and administrative (SG&A) expenses increased due to non-cash share-based compensation[4] - Future strategy involves continued investment in R&D for AI Nose and clinical trials, while evaluating optimal financing and partnership opportunities[4] Recent Business Developments During the first quarter of 2025, Ainos established several key strategic partnerships to expand the application of its AI Nose technology, notably with semiconductor leader Advanced Semiconductor Engineering, Inc. (ASE) and robotics firm ugo, Inc., also advancing its VELDONA® therapeutic program by securing regulatory approvals for two clinical trials in Taiwan and strengthening its intellectual property with a new patent in Japan - Formed a strategic partnership with ASE Chung Li, a key site of the world's leading semiconductor assembly and test provider, to deploy AI Nose in semiconductor manufacturing[5][8] - Partnered with ugo, Inc., Japan's leading service robotics company, to integrate AI Nose into robots, with the initial installation successfully completed[6][9] - Secured TFDA and IRB approvals for clinical trials of its VELDONA® formulation for treating HIV-related oral warts and primary Sjögren's syndrome[7] - Received a key invention patent in Japan for its oral interferon formulation, VELDONA®, for treating and preventing coronavirus infections[10] Financial Statements The unaudited financial statements for the period ending March 31, 2025, detail the company's financial position and performance, with the balance sheet showing a decrease in total assets and total liabilities compared to year-end 2024, and the statement of operations highlighting a significant revenue increase and a shift from a gross loss to a gross profit, though the company still recorded a net loss for the quarter Condensed Balance Sheets As of March 31, 2025, Ainos reported total assets of $26.4 million, down from $28.8 million at the end of 2024, primarily due to a decrease in cash and cash equivalents, while total liabilities slightly decreased to $13.2 million, and total stockholders' equity fell to $13.1 million from $15.5 million Balance Sheet Summary (Unaudited) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $3,050,992 | $4,337,808 | | Total Assets | $26,353,076 | $28,820,199 | | Total Current Liabilities | $1,523,467 | $3,954,944 | | Total Liabilities | $13,231,424 | $13,303,889 | | Total Stockholders' Equity | $13,121,652 | $15,516,310 | - Cash and cash equivalents decreased from $3.9 million on December 31, 2024, to $2.6 million on March 31, 2025[16] Condensed Statements of Operations For the three months ended March 31, 2025, Ainos reported revenues of $106,207, a 412% increase from the same period in 2024, achieving a gross profit of $87,974, a significant turnaround from a gross loss of $6,025 in the prior year, and despite this, the net loss remained relatively stable at $3.29 million, or ($0.21) per share, compared to a net loss of $3.31 million, or ($0.57) per share, in Q1 2024 Statement of Operations Summary (Unaudited) | Metric | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Revenues | $106,207 | $20,729 | | Gross Profit (Loss) | $87,974 | ($6,025) | | Loss from Operations | ($3,162,871) | ($3,120,091) | | Net Loss | ($3,286,022) | ($3,314,810) | | Net Loss per Share | ($0.21) | ($0.57) | - Research and development expenses decreased to $1.72 million from $2.08 million in the prior-year period[18] - Selling, general and administrative expenses increased to $1.53 million from $1.03 million year-over-year[18]