# Ainos, Inc.: Form 10-Q for the period ended Mar 31, 2025

- Company: [Ainos, Inc.](/companies/aimd.md) (CIK 1014763)
- Form: 10-Q
- Filed: 2025-05-14
- Accepted by EDGAR: May 14, 2025, 20:05 ET
- Period: 2025-03-31
- Accession: 0001641172-25-010264
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/1014763/000164117225010264/form10-q.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/1014763/000164117225010264/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2025-03-31.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2025-01-01 to 2025-03-31 | $106.2k | us-gaap:Revenues |
| Cost of revenue | 3 months, 2025-01-01 to 2025-03-31 | $18.2k | us-gaap:CostOfRevenue |
| Gross profit | 3 months, 2025-01-01 to 2025-03-31 | $88.0k | us-gaap:GrossProfit |
| Research and development | 3 months, 2025-01-01 to 2025-03-31 | $1.7m | us-gaap:ResearchAndDevelopmentExpense |
| Selling, general and administrative | 3 months, 2025-01-01 to 2025-03-31 | $1.5m | us-gaap:SellingGeneralAndAdministrativeExpense |
| Operating income | 3 months, 2025-01-01 to 2025-03-31 | −$3.2m | us-gaap:OperatingIncomeLoss |
| Interest expense | 3 months, 2025-01-01 to 2025-03-31 | $180.4k | us-gaap:InterestExpenseNonoperating |
| Net income | 3 months, 2025-01-01 to 2025-03-31 | −$3.3m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2025-01-01 to 2025-03-31 | −$0.21 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2025-01-01 to 2025-03-31 | −$0.21 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2025-01-01 to 2025-03-31 | 15,863,060 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 3 months, 2025-01-01 to 2025-03-31 | −$1.2m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 3 months, 2025-01-01 to 2025-03-31 | $33.6k | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Cash and equivalents | at 2025-03-31 | $2.6m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | at 2025-03-31 | $3.1m | us-gaap:AssetsCurrent |
| Total assets | at 2025-03-31 | $26.4m | us-gaap:Assets |
| Current liabilities | at 2025-03-31 | $1.5m | us-gaap:LiabilitiesCurrent |
| Total liabilities | at 2025-03-31 | $13.2m | us-gaap:Liabilities |
| Shareholders' equity | at 2025-03-31 | $13.1m | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 17,806 characters.

*The unaudited condensed financial statements and this Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the financial statements and notes thereto for the year ended December 31, 2024 and the related Management’s Discussion and Analysis of Financial Condition and Results of Operations, both of which are contained in our Form 10-K for the period ended December 31, 2024 (the “2024 Annual Report”). In addition to historical information, this discussion and analysis contains 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, or the Exchange Act. These forward-looking statements are subject to risks and uncertainties, including those set forth under “Part I. Item 1A. Risk Factors” in our 2024 Annual Report, “Part II. Item 1A. Risk Factors” in this Quarterly Report, and elsewhere in this Quarterly Report, that could cause actual results to differ materially from historical results or anticipated results.*

When used in this Quarterly Report, all references to “Ainos,” the “Company,” “we,” “our” and “us” refer Ainos, Inc.

### Overview

Ainos, Inc. (the “Company”), incorporated in the State of Texas in 1984, is an AI-driven healthcare and technology company pioneering scent digitization, AI-powered diagnostics, and novel therapeutics. We develop VELDONA, an oral low-dose interferon therapy targeting rare diseases, autoimmune diseases, infectious diseases, and animal health. We also develop an AI Nose technology that aims to digitize scent into Smell IDs, enabling robotics, smart manufacturing, and healthcare. We are advancing commercialization primarily through strategic partnerships. In robotics, we have established a strategic partnership with a Japanese robot developer.

We have historically involved in the research and development of therapeutics based on VELDONA. Building on our research and development on VELDONA since inception, we focus on commercializing a suite of VELDONA-based product candidates. Our priority pipeline includes drug candidates for treating oral warts for human immunodeficiency virus (HIV) seropositive patients, Sjögren’s syndrome, and feline chronic gingivostomatitis (FCGS), a cat oral infection.

In 2021 and 2022, we acquired certain intellectual properties from a controlling shareholder, Ainos Inc., a Cayman Island corporation (“Ainos KY”), to expand product portfolio into AI Nose technology and POCTs aimed to provide connected, rapid, and convenient testing for a broad range of health conditions. Pivoted from the sales of COVID-19 POCT, we aim to commercialize POCTs that detect volatile organic compounds (the “VOC”) emitted by the body, powered by our AI Nose technology platform. In 2024, we licensed certain patents and patent applications from Taiwan Carbon Nano Technology Corporation (“TCNT”), a controlling shareholder, to further expand our intellectual properties on our VOC and POCT technologies.

While our AI Nose technology was initially developed for healthcare applications, we are actively expanding its use into other sectors, including robotics and industrial environments. In March 2025, we formed a strategic partnership with ugo, Inc., a leading Japanese service robot developer, to integrate AI Nose into ugo’s autonomous robotic platform. We believe this collaboration represents a significant milestone in our strategy to digitize scent and pioneer what we believe to be the world’s first smell-enabled robots. We believe this integration has the potential to unlock new functionality in industrial safety, healthcare, security and inspection.

### Our Pipeline

An integral part of our operating strategy is to create multiple revenue streams through sales of commercially ready products, out-licensing or forming strategic relationships to develop and commercialize our products. As of March 31, 2025, we have commercialized the following products:

- **COVID-19 Antigen Rapid Test Kit**. As the first commercialized products we sell, we have marketed COVID-19 antigen rapid test kits in Taiwan under emergency use authorization (“EUA”) issued by the Taiwan Federal and Drug Administration (“TFDA”) to TCNT, the product manufacturer. We have pivoted away from this business and have ceased selling the product since the first quarter of 2024.
- **VELDONA Pet.** VELDONA Pet is formulated to address a variety of health issues in dogs and cats, including skin, gum, emotion, discomfort caused by allergies, eye, and weight-related issues. We currently sell VELDONA Pet in Taiwan.

From time to time, we assess our development plan based on available resources and market dynamics. Our current pipeline of the products, which are under development, includes the following:

- **VELDONA human drugs.** Our programs include oral warts for human immunodeficiency virus (HIV) seropositive patients, Sjögren’s syndrome common cold, influenza, and treatment for mild COVID-19 symptoms. Except for COVID-19, we have conducted Phase 2 studies for these programs. The United States Food and Drug Administration (the “U.S. FDA”) have granted orphan drug designation for our VELDONA formulation as a potential treatment for oral warts in HIV-seropositive patients.
- **AI Nose – NISD co-development.** We are co-developing a VOC sensing platform with Nisshinbo Micro Devices Inc. (“NISD”) and Taiwan Inabata Sangyo Co. (“Taiwan Inabata”). The co-development aims to target applications including telehealth, automotive, industrial, and environmental safety.
- **AI Nose – industrial and robotics application.** Our goal is to expand AI Nose applications into industrial applications. We are partnering with a Japanese service robot developer to integrate AI Nose into robots. We are also working with a semiconductor packaging and testing company to deploy AI Nose in semiconductor manufacturing setting.
- **VOC POCT – Ainos Flora**. Ainos Flora, powered by AI Nose, is intended to perform a non-invasive test for female vaginal health and certain common STIs within a few minutes. A companion app is also being developed that aims to enable users to conveniently manage test results. We believe Ainos Flora can provide connected, convenient, discreet, rapid testing in a point-of-care setting. We are conducting clinical study in Taiwan and exploring strategic opportunities to commercialize the product.
- **VOC POCT – Ainos Pen.** The device is intended to be a cloud-connected, multi-purpose, portable breath analyzer that is intended to monitor health conditions within minutes, powered by AI Nose. We expect consumers to be empowered to share test results with their physicians through in-person and telehealth medical consultations.
- **VOC POCT – CHS430.** The CHS430 device, powered by AI Nose, is intended to provide non-invasive testing for ventilator-associated pneumonia within few minutes, as compared to current standard of care invasive culture tests that typically take more than two days to provide results.
- **Synthetic RNA (“SRNA”)**. We are in early-stage development of a SRNA technology platform with a long-term goal of developing next-generating precision treatments and rapid tests.

An integral part of our operating strategy is to create multiple revenue streams through commercializing our product portfolio, forming strategic partnerships and leveraging our intellectual property patents. Our near-term development plans encompass advancing AI Nose partnerships and our lead POCT candidate, Ainos Flora. At the same time, we will advance clinical studies and actively pursue the out-licensing of VELDONA pipeline.

As of March 31, 2025, we had available cash and cash equivalents of $2,628,286. We anticipate business revenues and further potential financial support from external sources to fund our operations over the next twelve months. We have based this estimate on assumptions that may prove to be incorrect, and we could exhaust our available capital resources sooner than we expect. See “Liquidity and Capital Resources” for additional information. To finance our continuing operations, we will need to raise additional capital, which cannot be assured.

### Results of Operations for Quarter Ended March 31, 2025 (“Q1 2025”) and March 31, 2024 (“Q1 2024”):

|  | Three months ended March 31, 2025 | 2024 | Change Amount% |  |
| --- | ---: | ---: | ---: | ---: |
| Revenues | $106,207 | $20,729 | $85,478 | 412% |
| Cost of revenues | (18,233) | (26,754) | 8,521 | (32)% |
| Gross profit (loss) | 87,974 | (6,025) | 93,999 | (1,560)% |
| Operating expenses: |  |  |  |  |
| Research and development expenses | 1,724,084 | 2,084,648 | (360,564) | (17)% |
| Selling, general and administrative expenses | 1,526,761 | 1,029,418 | 497,343 | 48% |
| Total operating expenses | 3,250,845 | 3,114,066 | 136,779 | 4% |
| Loss from operations | (3,162,871) | (3,120,091) | (42,780) | 1% |
| Non-operating (expenses) income, net: |  |  |  |  |
| Interest expense | (180,445) | (48,696) | (131,749) | 271% |
| Issuance cost of senior secured convertible note measured at fair value | - | (138,992) | 138,992 | (100)% |
| Fair value change for senior secured convertible note | - | (31,568) | 31,568 | (100)% |
| Other income, net | 57,294 | 24,537 | 32,757 | 134% |
| Total non-operating expenses, net | (123,151) | (194,719) | 71,568 | (37)% |
| Net loss before income taxes | (3,286,022) | (3,314,810) | 28,788 | (1)% |
| Provision for income taxes | - | - | - |  |
| Net loss | $(3,286,022) | $(3,314,810) | $28,788 | (1)% |

18

### Revenues, Cost and Gross Loss

The Company reported $106,207 and $20,729 in revenue in Q1 2025 and Q1 2024, respectively, from product sales of VELDONA pet supplements in Taiwan and VOC sensing products related to NISD co-development. The increase in revenue was due to realization of $105,942 in revenues from sales of VOC sensing products related to NISD co-development.

The cost of revenue related to product sales in Q1 2025 was $18,233 compared to $26,754 in Q1 2024. The decrease in cost of revenue was due to the difference product compositions.

The share-based compensation expense and the depreciation expense for manufacturing in Q1 2025 and Q1 2024 were nil and $4,516, respectively. When excluding these non-cash cost, cost of revenue decreased to $18,233 in Q1 2025 compared to $22,238 in Q1 2024.

Gross profit from product sales in Q1 2025 was $87,974 as compared to $6,025 gross loss from product sales in Q1 2024. The increase in gross profit was due to difference product compositions.

When excluding these non-cash costs, gross profit were $87,974 in Q1 2025 compared to $1,509 gross loss in Q1 2024.

### Research and Development (R&D) Expenses

R&D expenses in Q1 2025 and Q1 2024 were $1,724,084 and $2,084,648, respectively. The decrease of $360,564 (17%) was due to decreased expenses associated with clinical trial fees, co-research for technology and product and staffing expenditures (including share-based compensation). We expect that our R&D expenses related to clinical trials will continue to grow as we further develop AI Nose, VOC POCT and VELDONA drug candidates.

The share-based compensation expense and the depreciation and amortization expense in Q1 2025 and Q1 2024 were $1,192,870 and $1,284,343, respectively. When excluding these non-cash expenses, R&D expenses decreased to $531,214 in Q1 2025 from $800,305 in Q1 2024.

### Selling, General and Administrative (SG&A) Expenses

SG&A expenses were $1,526,761 and $1,029,418 in Q1 2025 and Q1 2024, respectively, reflecting an increase of $497,343 (48%) due to a significant increase in share-based compensation offset by a decrease in professional expenses.

The share-based compensation expense and the depreciation and amortization expense in Q1 2025 and Q1 2024 were $901,800 and $337,953 respectively. When excluding these non-cash expenses, SG&A expenses decreased to $624,961 in Q1 2025 compared to $691,465 in Q1 2024.

### Operating Loss

The Company’s operating loss was $3,162,871 and $3,120,091 in Q1 2025 and Q1 2024, respectively, reflecting a $42,780 (1%) increase in operating loss between the reporting periods. We continued to invest resources to execute our growth strategy and product roadmap to improve our profitability.

### Interest Expense and Issuance Cost of Convertible Note

In Q1 2025, interest expense was $180,445 compared to $48,696 in Q1 2024. The increase in interest expense was due to accrued interest for convertible notes issued in May 2024 has a higher principal amount compared to the same period in 2024.

### Net Loss

Net loss was $3,286,022 in Q1 2025 compared to $3,314,810 in Q1 2024, resulting in a $28,788 (1%) decrease in net loss attributable to our shareholders of common stock. The net loss was due to an expanding operating expense. We continued to invest resources to execute our growth strategy and product roadmap to improve our profitability.

### Liquidity and Capital Resources

As of March 31, 2025 and December 31, 2024, the Company had available cash of $2,628,286 and $3,892,919, respectively.

The following table summarizes our cash flow during the three months period ended March 31, 2025 and 2024:

|  | Three months ended March 31, 2025 | 2024 |
| --- | ---: | ---: |
| Net cash used in operating activities | (1,224,578) | (1,494,747) |
| Net cash used in investing activities | (20,587) | (111,280) |
| Net cash provided by financing activities | 14,605 | 777,500 |

### Operating activities:

Cash used in operating activities decreased by $270,169 during the first quarter of 2025 compared to the first quarter of 2024. Our net loss for the first quarter of 2025 decreased by $28,788 primarily due to increase of sales revenue. The operating cash outflow as a result of changes in operating assets and liabilities was mainly attributable to:

- Non-cash expenses including share-based compensation, depreciation and amortization, loss on inventory write-downs, issuance cost of secured convertible note, and change in fair value of senior secured convertible note increased approximately by $297,300;
- Working capital injected into accounts receivable, inventories and other current assets decreased by approximately $86,900; and
- Working capital injected into accrued expenses, operating lease liabilities, contract liabilities and other current and long-term liabilities increased by approximately $31,000.

### Investing activities

Cash used for investing activities were $20,587 and $111,280 during the first quarter of 2025 and the first quarter of 2024, respectively. The decrease was due to decrease in refundable deposits and other noncurrent assets offset by increase in purchase of property and equipment.

### Financing activities

Cash provided by financing activities were $14,605 and $777,500 during the first quarter of 2025 and the first quarter of 2024, respectively. The $762,895 decrease was primarily reflected by the following:

- Proceeds from convertible notes and other notes payable financing decreased by $875,000; and
- Proceeds from at the market offering, net of issuance costs increased by $14,605; and
- Payments of issuance cost of senior secured convertible note measured at fair value increased by $97,500.

In the near-term, we expect an increase in the pace of clinical trial spending to advance our VOC POCT and VELDONA drug candidates and expect to invest more in R&D activities. We may also increase our sales and marketing efforts.

The Company anticipates that cash reserves, business revenues, and potential debt financing through convertible and non-convertible notes will fund the Company’s operations over the next twelve months. There can be no assurance that we will be successful in our efforts to make the Company profitable. If those efforts are not successful, the Company may raise additional capital through the issuance of equity securities, debt financings or other sources to further implement its business plan. However, if such financing is not available when needed and at adequate levels, the Company will need to reevaluate its operating plan.

### Critical Accounting Policies and Significant Management Estimates

Our management’s discussion and analysis of our financial condition and results of operations are based on our unaudited condensed financial statements, which have been prepared in accordance with the accounting principles generally accepted in the United States, or U.S. GAAP. The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses.

We evaluate our estimates and judgments, including those related to inventory valuation, useful lives of property and equipment, valuation of stock option, warrants and convertible note, and impairment testing of intangible assets, on an ongoing basis. We base our estimates on historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

There have been no material changes to our critical accounting policies and estimates as compared to the critical accounting policies and estimates disclosed in “Management’s Discussion and Analysis - Critical Accounting Policies and Significant Management Estimates” of our 2024 Annual Report, except for those accounting subjects discussed in the Notes, if any, to the unaudited condensed financial statements included in this Quarterly Report on Form 10-Q.

## Market risk

As filed, 165 characters.

We are a smaller reporting company as defined in Rule 12b-2 of the Exchange Act and are not required to provide the information otherwise required under this Item 3.

## Controls and procedures

As filed, 796 characters.

### Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and our Chief Financial Officer, have evaluated our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Based on the evaluation of our disclosure controls and procedures, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of March 31, 2025.

### Changes in Internal Control over Financial Reporting

There were no changes in our internal controls over financial reporting during the period covered by this Quarterly Report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

## Risk factors

As filed, 4,828 characters.

*This Quarterly Report contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those discussed in this Quarterly Report. Factors that could cause or contribute to these differences include, but are not limited to, those discussed below and elsewhere in this Quarterly Report.*

*You should carefully consider the risk factors disclosed in our 2024 Annual Report, together with all other information in this Quarterly Report, including our unaudited condensed financial statements and notes thereto, and in our other filings with the Securities and Exchange Commission. If any such risks, including the risk set out below, or other risks not presently known to us or that we currently believe to not be significant, develop into actual events, then our business, financial condition, results of operations or prospects could be materially adversely affected. If that happens, the market price of our common stock could decline, and stockholders may lose all or part of their investment.*

Information on risk factors can be found in Part I, Item 1A (Risk Factors) of our 2024 Annual Report. Other than the following risk factor, there have been no material changes from the risk factors previously disclosed in our 2024 Annual Report, other than the risk factor set forth below.

***Fluctuating foreign currency and exchange rates may negatively impact our business, results of operations, and financial position.***

Due to our foreign operations, a portion of our business is denominated in foreign currencies. As a result, fluctuations in foreign currency and exchange rates may have an impact on our business, results of operations and financial position. Foreign currency exchange rates have fluctuated and may continue to fluctuate. Significant foreign currency exchange rate fluctuations may negatively impact our international revenue, which in turn would affect our consolidated revenue. Currencies may be affected by internal factors, general economic conditions and external developments in other countries, all of which can have an adverse impact on a country’s currency. We cannot predict whether we will incur foreign exchange losses in the future. Further, significant foreign exchange fluctuations resulting in a decline in the respective local currency may decrease the value of our foreign assets, as well as decrease our revenues and earnings from our foreign subsidiaries, which would reduce our profitability and adversely affect our financial position.

***Policy changes affecting international trade could adversely impact the demand for our products and our competitive position.***

Changes in government policies on foreign trade and investment can affect the demand for our products and services, impact the competitive position of our products and services or prevent us from being able to sell products and services in certain countries. The implementation of more restrictive trade policies, such as more detailed inspections, higher tariffs, import or export licensing requirements, economic sanctions, anti-boycott laws, exchange controls or new barriers to entry could have a material adverse effect on our business, financial condition, results of operations and cash flows. In addition, the Trump Administration has announced tariffs on certain imports from Canada, Mexico and the EU, among others, that could affect the demand for our products. Such tariffs and any retaliatory tariffs (including those announced by China, Canada and Mexico in March 2025) may put upwards pressure on prices in other jurisdictions from which we purchase product components, which could reduce our ability to offer competitive pricing to potential customers. We cannot predict what changes to trade policy will be made by the Trump Administration, the U.S. Congress or other governments, including whether existing tariff policies will be maintained or modified or whether the entry into new bilateral or multilateral trade agreements will occur, nor can we predict the effects that any such changes would have on our business or the global economy. Changes in U.S. trade policy, or threat of such changes, have resulted and could again result in reactions from U.S. trading partners, including adopting responsive trade policies making it more difficult or costly for us to export our products or import products or product components from countries where we currently purchase products or product components or sell products or services. Such changes, or threatened changes, to trade policy or in laws and policies governing foreign trade, and any resulting negative sentiments towards the United States as a result of such changes, could materially and adversely affect our business, financial condition, results of operations and liquidity.

Filed May 14, 2025.
Source: SEC EDGAR, the filing index for accession 0001641172-25-010264. Last ingested by Listed: Oct 24, 2026, 15:02 ET. No prices; not investment advice.