Ainos, Inc. (NASDAQ:AIMD), a pharmaceutical company, announced on Monday that it has signed a second addendum to its product development agreement with Taiwan Carbon Nano Technology Corporation (TCNT), a major shareholder. This addendum extends their existing partnership for an additional three months, through September 2024.
Under the initial five-year product development agreement, which began on August 1, 2021, Ainos and TCNT agreed to co-develop pharmaceutical, medical device, and other products. TCNT, which holds a significant stake in Ainos through its Cayman Islands entity, is responsible for providing facilities, equipment, and mass production support for the products outlined in the agreement. In January 2024, the companies signed the first addendum to expand the scope of their collaboration and set the terms for the use of certain patents.
The latest addendum, dated July 8, 2024, allows Ainos continued non-exclusive access to TCNT's patents related to volatile organic compounds (VOC) and point-of-care testing (POCT) technologies. For this extension, Ainos will pay a monthly fee of $95,000 plus a 5% sales tax.
Ainos initially paid NT$5 million (approximately USD$161,000) for a five-year development period starting from 2024. The agreement does not cover the costs of parts, raw materials, rental, or utilities.
The partnership between Ainos and TCNT, which began in 2021, has been focused on advancing technologies and production processes in the pharmaceutical and medical device sectors. The extension of their agreement indicates ongoing collaboration on product development and commercialization efforts.
This news is based on a recent SEC filing by Ainos, Inc. and provides investors with the latest developments in the company's strategic partnerships.
In other recent news, healthcare company Ainos, Inc. has made significant strides in the clinical trials of its "Ainos Flora" device. This device employs AI Nose technology for the rapid detection of infections and has completed 75 clinical cases at four major medical centers in Taiwan. The AI algorithm model has shown improved accuracy, with the integration of more real-world data enhancing the device's reliability.
Ainos is also in the process of developing an upgraded version of Ainos Flora that incorporates NVIDIA (NASDAQ:NVDA) CUDA technology. This next-generation device, designed for at-home testing, is expected to complete its design and laboratory testing phase in the third quarter, with clinical trials set to begin in the fourth quarter.
Chairman of the Board, President, and CEO of Ainos, Chun-Hsien (Eddy) Tsai underscored the need for accessible and rapid testing solutions for vaginal health and STIs, especially in the light of high rates of new STI cases among young adults in the U.S. Ainos Flora aims to address this need in a market projected to reach US$256 billion by 2028. The company's commitment to innovation is reflected in its portfolio of over 50 approved and pending patents, which focus on integrating AI with digital nose sensors for diagnostic tools. These are the recent developments in the company.
InvestingPro Insights
As Ainos, Inc. (NASDAQ:AIMD) continues its strategic partnership with TCNT, investors may be looking closely at the company's financial health and market performance. According to recent data from InvestingPro, Ainos operates with a significant debt burden and is quickly burning through cash, which could raise concerns about its long-term financial stability.
The company's gross profit margins have been weak, and its short-term obligations exceed its liquid assets, suggesting potential liquidity challenges. Despite these challenges, the company is a niche player in the pharmaceutical industry and is trading near its 52-week low, which might attract investors looking for potential undervalued opportunities.
Key metrics from InvestingPro reveal a market capitalization of just 5.3 million USD, highlighting the company's relatively small size within the industry. The revenue for the last twelve months as of Q1 2024 stands at 0.09 million USD, with a sharp decline in revenue growth at -97.31%. Moreover, the company's stock has taken a significant hit over the last six months, with a price total return of -49.7%.
For investors seeking deeper analysis and additional insights, there are more InvestingPro Tips available, which could provide further guidance on Ainos's financial health and investment potential. Interested investors can unlock these tips and benefit from a special offer by using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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