Ainos, Inc. Reports Significant Financial Decline, Net Losses, and Increased Liabilities in Q3 2024

Ainos, Inc. reported significant financial changes in its 10-Q filing for the quarter ending September 30, 2024. The company experienced a substantial decline in revenue, reporting $0 for the three months ended September 30, 2024, compared to $24,489 for the same period in 2023. For the nine months ended September 30, 2024, revenues totaled $20,729, down from $102,208 in the prior year, marking an 80% decrease. This decline is attributed to the cessation of sales of COVID-19 Antigen Rapid Test Kits, which had previously contributed to revenue.

Operating expenses increased to $3,038,002 for the third quarter of 2024, up from $2,612,282 in 2023, reflecting a 16% rise. For the nine-month period, total operating expenses rose to $9,175,704, compared to $7,362,966 in 2023, a 25% increase. The company reported a loss from operations of $(3,038,549) for the third quarter of 2024, compared to $(2,675,666) in the same quarter of 2023, and a nine-month loss from operations of $(9,207,649), up from $(7,505,296) in the previous year.

Net losses also increased, with a net loss of $(3,699,317) for the third quarter of 2024, compared to $(2,975,846) in 2023, and a nine-month net loss of $(10,209,149), up from $(7,846,048) in the prior year. The net loss per share for the third quarter was $(0.33), an improvement from $(0.73) in 2023, while the nine-month loss per share was $(1.30), compared to $(1.95) in the previous year.

As of September 30, 2024, Ainos reported cash and cash equivalents of $5,156,606, a significant increase from $1,885,628 at the end of 2023. Total current assets also rose to $5,649,205 from $2,473,197. However, total liabilities increased to $13,347,531 from $7,394,223, indicating a growing financial burden.

The company’s stockholder equity decreased to $18,022,215 from $24,447,581, and the accumulated deficit widened to $(48,095,304) from $(37,886,155). Ainos has been actively financing its operations, with net cash provided by financing activities reaching $8,295,746 for the nine months ended September 30, 2024, compared to $4,023,974 in the same period of 2023.

Strategically, Ainos is focusing on advancing its product pipeline, including the VELDONA therapeutics and the Ainos Flora point-of-care testing technology. The company has also engaged in various financing activities, including the conversion of senior secured convertible notes to common stock, which contributed to its cash reserves. The company plans to continue funding its operations through existing cash, equity, and potential debt financing, while also anticipating increased spending on clinical trials and research and development.