Ainos, Inc. (AIMD) Q2 2026 Earnings: Revenue $0K (-96.7%)
AIMD — Q2 2026 Financial Report Analysis
Q2 · Fiscal year 2026 · Published by Pham Hop
Ainos booked just $152 of Q2 revenue and a $4.59M net loss (up 12.5%, mostly stock pay), with $1.42M of cash against $11M of ASE Test notes and a $2.8M loan now due within a year.
Revenue
$0K
-96.7% YoY
Net income
-$4.6M
-12.5% YoY
Diluted EPS
$-0.62
+37.4% YoY
This period vs a year ago
Same period last year
This period
Revenue▼-96.7%
≈$5K
$0K
Year-ago figures (≈) are worked out from the growth rate the company reported. Each row has its own scale.
Q2 2026: almost no sales, a bigger loss on paper, and debt that now falls due within a year
Ainos is a small Taiwan-linked company developing two things: AI Nose, a sensor-plus-software system that turns smells and airborne chemicals into data (it is now aimed mainly at semiconductor factories, robotics and hospital facilities), and VELDONA, a low-dose oral interferon drug candidate. In the quarter to June 30, 2026 it recorded $152 of revenue, down from $4,663 a year earlier, all of it from leftover VELDONA pet-supplement sales. Its net loss grew 12.5% to $4.59 million, but almost all of that increase came from stock-based pay, which costs no cash. The bigger change is on the balance sheet. All $11.0 million of the company's convertible notes, plus a new $2.8 million loan, now count as current liabilities, meaning they fall due within 12 months. Against that the company held $1.42 million of cash.
At a glance
$152 of revenue in Q2 and $313 for the half-year (H1 2025: $110,870). AI Nose brought in nothing in H1 2026, against $105,942 in H1 2025. Management says this reflects its move away from healthcare-related sales toward industrial customers, which "are currently at earlier stages of commercialization."
$2.43 million of cash used by operations in H1, versus a $7.05 million net loss. Most of the loss is non-cash: $2.36 million of depreciation and amortization and $2.01 million of stock-based pay. Cash burn is about $405,000 a month.
$16.28 million of current liabilities against $2.19 million of current assets. The ASE Test convertible notes ($2 million due March 12, 2027; $9 million due May 2027) and the NT$90 million ASE Test loan all come due in the next 12 months. The filing states there is "substantial doubt" about the company's ability to continue as a going concern.
The numbers
Metric
Q2 2026
Q2 2025
YoY Change
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Revenue
$152
$4,663
-96.7%
Gross profit
$99
$3,726
-97.3%
Research & development
$1.85M
$1.91M
-3.2%
Selling, general & administrative
$2.55M
$1.84M
+38.7%
Operating loss
-$4.40M
-$3.75M
Loss widened 17.4%
Net loss
-$4.59M
-$4.08M
Loss widened 12.5%
Loss per share (basic and diluted)
-$0.62
-$0.99
Loss narrowed 37.4%
Weighted-average shares
7.36M
4.12M
+78.5%
Operating expenses excluding stock pay and D&A*
$1.20M
$1.23M
-2.5%
Cash and equivalents (period-end)
$1.42M
$0.42M (Dec 31, 2025)
+$1.01M
*The company's own figures in its management discussion: R&D excluding stock-based pay and depreciation/amortization was $669,653 (vs $702,457), and SG&A on the same basis was $530,681 (vs $528,255).
With revenue at $152, an operating margin (the share of revenue left after running the business) would be a figure in the millions of percent and tells you nothing. The useful measures for a company at this stage are how much cash it spends and how long its funding lasts.
Half-year view: the net loss was $7.05 million, down 4.3% from $7.37 million. Loss per share was -$1.05, versus -$2.02.
Where the money went
Revenue. This is not an operating business with sales yet. In Q2, revenue fell because of "lower sales volume on VELDONA pet supplements... as the Company shifts operational focus to AI Nose platform." The first-half comparison looks worse because H1 2025 included $105,942 of AI Nose program revenue. That revenue came out of customer prepayments the company already held (the filing says $106,329 of contract-liability revenue was recognized in H1 2025, versus nil in H1 2026). A contract liability is cash a customer has paid up front for work not yet delivered. Ainos still holds $350,000 of it, unchanged since December. Management highlights "an initial $2.1 million commercial arrangement in backend semiconductor manufacturing environments," but none of it has been recognized as revenue so far.
R&D fell 3% to $1.85 million. The company cites lower stock-based pay and lower spending on joint research with partners, partly offset by higher costs for experimental materials. $220,619 of Q2 R&D went to a related party.
SG&A (overhead: management, legal, investor relations) rose 39% to $2.55 million. The company attributes this to "a significant increase in share-based compensation and professional fees." Excluding stock pay and depreciation, SG&A was essentially flat at $530,681 versus $528,255.
Interest expense rose 12% to $200,162 because of the new ASE Test loan taken out in Q1.
What the headline numbers hide
The per-share improvement comes from dilution, not better results. The net loss grew 12.5%, yet loss per share narrowed from $0.99 to $0.62. The reason is that the weighted-average share count rose 78.5%, from 4.12 million to 7.36 million, as the company issued stock through vested restricted stock units, its at-the-market share sales and share payments to consultants. The same loss spread over more shares looks smaller per share. Shareholders are not better off.
The larger Q2 loss is mostly stock-based pay, and Q2 took the whole half-year's charge. The equity statement shows $2.01 million of stock-based compensation in Q2. That equals the full six-month figure in the cash-flow statement, so Q1 recorded none. It is why Q2's loss ($4.59 million) was almost twice Q1's (about $2.46 million, the H1 loss minus Q2), and why Q2 SG&A was $2.55 million against about $0.59 million in Q1. Excluding stock pay and depreciation, spending was flat year on year.
Cash burn is well below the reported loss, and the gap is non-cash items. Operating cash outflow in H1 was $2.43 million, about a third of the $7.05 million net loss. The rest is mainly $2.36 million of depreciation and amortization, largely the write-down of acquired patents and technology (intangible assets fell from $19.23 million to $16.98 million), plus $2.01 million of stock pay and $150,000 of shares issued to consultants. Working capital (receivables, inventory, payables) had little effect. Inventory grew slightly, to $308,743, while sales were close to zero.
The cash increase was borrowed. Cash rose from $417,353 to $1.42 million only because of $2.81 million from the ASE Test loan (NT$90 million at 2.5% interest) and $601,600 of net at-the-market share sales. Without financing, H1 operations would have used up the opening cash balance about six times over.
Debt maturities have come within a year. At December 31, 2025, the $11.0 million of convertible notes were non-current, meaning not due within 12 months. By June 30, all of it was current. Unpaid accrued interest on the notes reached $1.59 million, and 6% compound interest keeps adding to it. After the quarter, on July 10, 2026, ASE Test extended the maturity of NT$62 million (about $1.94 million) of the loan to July 31, 2027. The remaining NT$28 million (about $875,140) is still due March 27, 2027. Shareholders' equity fell from $7.56 million to $3.28 million in six months.
There are limits on how much stock it can sell. A July 24, 2026 prospectus supplement put the company's public float (shares held by outside investors) at about $9.9 million. Affiliates held 5,404,793 of the 8,544,073 issued shares. Under the "baby shelf" rule, which caps share sales at a third of public float per year for companies this small, the at-the-market program was raised to only $1,346,165. That is small next to $11 million of notes due in 2027.
No unusual one-off items. Other income moved from a $161,346 expense to $4,517 of income, and no income tax was recorded in either year.
After the quarter: a VELDONA licensing deal
On September 24, 2026, Ainos signed a worldwide exclusive license with BioPhoenix Co., Ltd. (Taiwan) for VELDONA in Sjögren's disease and thrombocytopenia (a low blood-platelet disorder), according to an 8-K filed September 28. BioPhoenix will pay a $600,000 upfront fee, but only once it has received the full data package and technology transfer is confirmed complete. It will also pay a one-time fee when it grants its first sublicense, plus 25% of its net sublicensing revenue. The filing says total license fees could reach about $10.0 million "if BioPhoenix licenses all of the additional VELDONA indications available." That figure depends on options BioPhoenix may never exercise. In return, Ainos may not compete in the licensed indications for the life of the agreement plus 10 years. This matches the "partnering and out-licensing" priority listed in the 10-Q. The near-term cash, $600,000, equals roughly six weeks of H1's operating cash burn.
Takeaway: The income statement matters less for Ainos this quarter than the balance sheet. It spends about $405,000 a month in cash, had $1.42 million on hand, and has about $13.8 million of notes and loans (plus $1.59 million of accrued interest) due between March and July 2027, all of it owed to ASE Test. Whether AI Nose's $2.1 million semiconductor arrangement starts producing revenue matters less in the next 12 months than whether ASE Test extends, converts or refinances that debt.
Outlook
Management gives no revenue or earnings guidance. Its stated 2026 priorities are partner-led AI Nose deployments in semiconductor, robotics and hospital-facility settings, a "SmellTech-As-A-Service" model combining hardware and services, and "selective" VELDONA spending focused on partnering. It says it expects R&D spending "may continue to grow." It also says it will "need to raise additional capital, which cannot be assured," and that it expects cash reserves, business revenue and possible convertible or non-convertible debt to fund the next 12 months.
Our view: the Q3 10-Q (expected around mid-November 2026) should answer three things. First, whether any of the $2.1 million semiconductor arrangement or the $350,000 in customer prepayments turns into recognized revenue. Second, whether BioPhoenix's $600,000 upfront fee has become payable. Third, what happens to the ASE Test notes due in March and May 2027. The ASE Test loan has already been partly extended once, which shows the lender has been willing to negotiate. A further extension or a conversion of the notes into shares would ease the cash shortfall. A conversion would also add more shares on top of this year's 78.5% increase in the weighted share count. For the $2 million March 2025 note, the conversion price is set between $22.50 and $37.50 a share. The 10-Q does not restate the conversion terms of the $9 million May 2024 notes.