Full Press Release Details
Reports First Quarter 2025 Financial Results
revenues increased 412% year over year, driven by AI Nose products
strong turnaround from gross loss to gross profit in Q1
Nose gains traction beyond healthcare with strategic partnerships in robotics and semiconductor sectors
program advances with TFDA and IRB Approvals for two clinical trials in Taiwan
DIEGO, CA / ACCESSWIRE /May 12, 2025 / Ainos, Inc. (NASDAQ:AIMD, AIMDW) ("Ainos", or the "Company") today announced
its financial results for the first quarter ended March 31, 2025.
(Eddy) Tsai, Chairman of the Board, President, and Chief Executive Officer of Ainos, commented, "Q1 2025 represents a significant
step forward in advancing our long-term strategy to build a differentiated healthcare and technology company powered by scent digitization,
AI-enhanced diagnostics and innovative therapeutics. Revenues increased 412% year over year, primarily driven by sales of AI Nose products
for elderly care under the Nisshinbo Micro Devices Inc. ("NISD") co-development project. This performance is a testament
to the growing commercial viability of our proprietary AI Nose technology in healthcare."
our AI Nose technology has a deep root in healthcare use-case, we are expanding the application scope into the robotics and industrial
sectors. We've made rapid progress in establishing strategic partnerships, including collaborations with a leading Japanese service
robot developer to embed AI Nose into robots, and with the world's largest semiconductor packaging and testing provider to deploy
AI Nose in semiconductor manufacturing environments. "
AI integration across industries validates our strategic direction. The global electronic nose market is projected to grow from $29.8
billion in 2025 to $76.5 billion by 2032. Demand is rising across healthcare, environmental, and industrial sectors-precisely where
our AI Nose is gaining traction. In the industrial space, industrial robot installment grew 10%
over year to 4.28 million units in 2024, with rising integration of AI and sensors-an environment where we believe AI Nose can
play a critical role in adding olfactory intelligence to automation systems. In healthcare, our scent-based applications for early disease
detection align with the AI healthcare market, expected to surpass $180 billion by 2030."
U.S. Treasury Secretary recently emphasized the need for American leadership in AI and quantum technologies. At Ainos, we share this
vision. Our AI-powered electronic nose addresses one of the untapped frontiers in AI and robotics-smell. While machines can see
and hear, olfaction remains the missing sense. By pioneering digital scent, Ainos is unlocking a vital layer of perception for the next
generation of intelligent systems."
a U.S.-based innovator, we're focused on scaling AI-powered smelltech sensing with deep R&D, IP expansion, and strategic long-term
growth. While our first-quarter revenue grew from a low base, it reflects early traction for our breakthrough technology. With the AI
market projected to reach $1.81 trillion by 2030, we believe AI Nose will redefine machine-environment interaction and position Ainos
as a leader in this emerging field."
the same time, we've reached key milestones in VELDONA , our low-dose interferon therapeutics program, securing Taiwan Food
and Drug Administration ("TFDA") approval for initiating a clinical trial targeting HIV oral warts, and Institutional Review
Board ("IRB") clearance from Taipei Medical University for a clinical trial targeting primary Sj gren's syndrome.
Our launch two trials in parallel is a further demonstration of our capital-efficient approach, operational discipline, and commitment
to developing innovative, patient-friendly therapies for rare and underserved indications."
ahead, we remain focused on execution and strategic partnerships that can accelerate commercialization and global reach. We are encouraged
by the momentum we've built and the opportunities that lie ahead. We believe that our leading AI Nose technology and immunotherapy-combined
with our agility and vision-position Ainos to unlock vast growth potential and deliver sustained shareholder value."
Lee, Chief Financial Officer of Ainos, remarked, "We saw the early financial benefits of our strategic shift in Q1. Thanks to our
AI Nose products, revenues increased 412% year over year to $106,207. Cost of revenues declined 32% year over year to $18,233, resulting
in gross profit of $87,974-marking a strong turnaround from gross loss of $6,025 in the previous year due to unique product compositions.
Despite increased non-cash selling, general and administrative expenses (SG&A) on share-based compensation, our disciplined capital
management enabled us to maintain operational efficiency with controlled spending, all while redirecting resources toward our programs
with the most potential for growth. Looking into the quarters ahead, we will continue investing in research and development (R&D)
to advance AI Nose and clinical trial progress in addition to evaluating the most optimal financing and partnership opportunities for
supporting our core growth pillars alongside keeping financial flexibility."
Business Developments
April 30, 2025, Ainos formed a strategic partnership with ASE Chung Li ("ASECL"), a key site of Advanced Semiconductor Engineering,
Inc. (ASE), the world's leading provider of semiconductor assembly and test services. This partnership entails Ainos and ASECL
to explore deploying the AI Nose across semiconductor manufacturing scenarios for improved real-time air quality monitoring, predictive
maintenance, energy efficiency, precision process control, and yield optimization.
April 21, 2025, Ainos announced the successful installation of its proprietary AI Nose olfaction module on a robot developed by ugo,
Inc. ("ugo"), Japan's leading service robotics company. This installation marks a major milestone in multisensory robotics,
paving the way for real-world applications. The Company and ugo are now entering the next phase of critical development, focusing on
user interface (UI) design and backend control system integration and tuning of sensory parameters and response logic, expected to be
completed within 2 to 4 weeks.
April 14, 2025, Ainos secured approval from TFDA clearance for initiating clinical trials using its next-generation VELDONA formulation
for treating HIV-related oral warts. The Company also received IRB clearance from Taipei Medical University for a clinical trial targeting
primary Sj gren's syndrome (pSS) with VELDONA formulation.
March 11, 2025, the Company formed a strategic partnership with Advanced Semiconductor Engineering, Inc., the world's largest provider
of semiconductor packaging and testing services. The collaboration aims to transform semiconductor manufacturing by incorporating Ainos'
patented AI Nose technology to analyze airborne chemicals into "Smell IDs," thereby enhancing process efficiency, environmental
safety, and ESG compliance.
March 5, 2025, the Company entered a strategic partnership with ugo, Inc., Japan's leading service robotics provider, to integrate
its AI Nose technology into ugo's robotic platform. This collaboration introduces olfactory perception to robots, enabling AI-driven
scent detection for deployment across healthcare, industrial, and public security sectors-addressing labor shortages with intelligent
January 27, 2025, the Company announced that it had received a key invention patent in Japan for its oral interferon formulation, VELDONA ,
targeting the treatment and prevention of coronavirus infections. With this grant, Ainos strengthens its global IP portfolio and advances
its commercialization plans in the $16 billion global coronavirus therapeutics market.
January 13, 2025, Ainos announced its revolutionary AI Nose for robotics application and invited robotics companies worldwide to join
the Ainos Alliance. Powered by advanced artificial intelligence (AI) and micro-electromechanical systems (MEMS) gas sensors, AI Nose
is redefining robotic interaction with various environments-unlocking transformative applications for the industrial, healthcare,
and consumer sectors.
in San Diego, California, Ainos, Inc. develops disruptive medical and healthcare solutions based on its proprietary AI Nose and VELDONA
technologies. The name "Ainos" combines "AI" and "Nose" to signify the Company's commitment
to enabling AI with the ability to smell and individuals to live healthier. The Company's clinical-stage product pipeline includes
AI-driven, telehealth-friendly POCT solutions powered by AI Nose, VELDONA human and animal oral therapeutics, and human orphan drugs.
To learn more, visit https://www.ainos.com. Follow Ainos on X, formerly known as Twitter, (@AinosInc) and LinkedIn
statements in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking
statements. Forward-looking statements are based on management's current assumptions and expectations of future events and trends,
which affect or may affect the Company's business, strategy, operations or financial performance, and actual results and other
events may differ materially from those expressed or implied in such statements due to numerous risks and uncertainties. Forward-looking
statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. There are a number of
important factors that could cause actual results, developments, business decisions or other events to differ materially from those contemplated
by the forward-looking statements in this press release. These factors include, among other things, our expectation that we will incur
net losses for the foreseeable future; our ability to become profitable; our ability to raise additional capital to continue our product
development; our ability to accurately predict our future operating results; our ability to advance our current or future product candidates
through clinical trials, obtain marketing approval and ultimately commercialize any product candidates we develop; the ability to obtain
and maintain regulatory approval of our product candidates; delays in completing the development and commercialization of our current
and future product candidates; developing and commercializing additional products, including diagnostic testing devices; our ability
to compete in the marketplace; compliance with applicable laws, regulations and tariffs, and factors described in the Risk Factors section
of our public filings with the Securities and Exchange Commission (SEC). Because forward-looking statements are inherently subject to
risks and uncertainties, you should not rely on these forward-looking statements as predictions of future events. These forward-looking
statements speak only as of the date of this press release and, except to the extent required by applicable law, the Company undertakes
no obligation to update or revise these statements, whether as a result of any new information, future events and developments or otherwise.
| March 31, | December 31, | |||||||
| 2025 | 2024 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 2,628,286 | $ | 3,892,919 | ||||
| Accounts receivable | 91 | 56 | ||||||
| Inventory, net | 141,831 | 143,756 | ||||||
| Other current assets | 280,784 | 301,077 | ||||||
| Total current assets | 3,050,992 | 4,337,808 | ||||||
| Intangible assets, net | 22,633,161 | 23,748,328 | ||||||
| Property and equipment, net | 494,387 | 559,645 | ||||||
| Other assets | 174,536 | 174,418 | ||||||
| Total assets | $ | 26,353,076 | $ | 28,820,199 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Contract liabilities | $ | - | $ | 106,329 | ||||
| Convertible notes payable | 1,000,000 | 3,000,000 | ||||||
| Accrued expenses and others current liabilities | 523,467 | 848,615 | ||||||
| Total current liabilities | 1,523,467 | 3,954,944 | ||||||
| Convertible notes payable - noncurrent | 11,000,000 | 9,000,000 | ||||||
| Other long-term liabilities | 707,957 | 348,945 | ||||||
| Total liabilities | 13,231,424 | 13,303,889 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity: | ||||||||
| Preferred stock, $0.01 par value; 50,000,000 shares authorized; none issued and outstanding | - | - | ||||||
| Common stock, $0.01 par value; 300,000,000 shares authorized as of March 31, 2025, and December 31, 2024, 17,215,164 and 15,427,385 shares issued and outstanding as of March 31, 2025, and December 31, 2024, respectively | 172,152 | 154,274 | ||||||
| Additional paid-in capital | 69,435,008 | 68,520,881 | ||||||
| Accumulated deficit | (56,035,338 | ) | (52,749,316 | ) | ||||
| Accumulated other comprehensive loss - translation adjustment | (450,170 | ) | (409,529 | ) | ||||
| Total stockholders' equity | 13,121,652 | 15,516,310 | ||||||
| Total liabilities and stockholders' equity | $ | 26,353,076 | $ | 28,820,199 |
Statements of Operations
| Three months ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Revenues | $ | 106,207 | $ | 20,729 | ||||
| Cost of revenues | (18,233 | ) | (26,754 | ) | ||||
| Gross profit (loss) | 87,974 | (6,025 | ) | |||||
| Operating expenses: | ||||||||
| Research and development expenses | 1,724,084 | 2,084,648 | ||||||
| Selling, general and administrative expenses | 1,526,761 | 1,029,418 | ||||||
| Total operating expenses | 3,250,845 | 3,114,066 | ||||||
| Loss from operations | (3,162,871 | ) | (3,120,091 | ) | ||||
| Non-operating (expenses) income, net: | ||||||||
| Interest expense | (180,445 | ) | (48,696 | ) | ||||
| Issuance cost of senior secured convertible note measured at fair value | - | (138,992 | ) | |||||
| Fair value change for senior secured convertible note | - | (31,568 | ) | |||||
| Other income, net | 57,294 | 24,537 | ||||||
| Total non-operating expenses, net | (123,151 | ) | (194,719 | ) | ||||
| Net loss before income taxes | (3,286,022 | ) | (3,314,810 | ) | ||||
| Provision for income taxes | - | - | ||||||
| Net loss | $ | (3,286,022 | ) | $ | (3,314,810 | ) | ||
| Net loss per common share - basic and diluted | $ | (0.21 | ) | $ | (0.57 | ) | ||
| Weighted-average shares used in computing net loss per common share-basic and diluted | 15,863,060 | 5,771,283 |