Ainos, Inc., a pharmaceutical company based in San Diego, California, has announced the expansion of its partnership with Taiwan Carbon Nano Technology Corporation (TCNT) through a new agreement. On Monday, the companies signed the third addendum to their existing Product Development Agreement, which now includes the co-development and exclusive sales rights for a nitrogen-oxygen separation machine intended for medical applications.
The addendum modifies the original agreement by granting Ainos exclusive use of certain patents, a significant change from the previous non-exclusive terms. Ainos has agreed to pay TCNT a monthly fee of $50,000 plus a 5% sales tax for this exclusivity, starting from October 16, 2024, for a duration of one year. After this period, the companies may discuss further payment arrangements and licensing methods.
This development is part of Ainos's ongoing efforts to expand its product portfolio in the pharmaceutical and medical device sectors. The agreement with TCNT, which controls a majority interest in Ainos through both direct ownership and its stake in Ainos KY, a Cayman Islands corporation, is a strategic move to leverage TCNT's technology and patents.
As of October 17, 2024, Ainos KY holds approximately 62.9% of the voting power in Ainos, Inc., signifying a strong influence over the company's decisions. The financial implications of this exclusive patent arrangement are expected to play a significant role in Ainos’s operations and product offerings in the coming year.
In other recent news, Ainos Inc. reported significant developments in its operations. The company received stockholder approval for special stock awards and ratified the appointment of KCCW Accountancy Corp. as the independent registered public accounting firm. Ainos also secured a patent in Taiwan for its antiviral drug, VELDONA®, aimed at treating and preventing coronavirus infections. The firm's AI Nose technology achieved a 79% accuracy rate in identifying volatile organic compounds in Japanese semiconductor factories, enhancing safety and efficiency in the industrial sector.
Ainos strategically acquired exclusive licenses for 10 invention patents from Taiwan Carbon Nano Technology, valued at approximately $5.4 million, to improve its AI Nose and point-of-care testing technologies. The U.S. FDA granted Orphan Drug Designation for VELDONA®, Ainos' oral interferon drug, for the treatment of oral warts in HIV-positive patients, and a clinical trial is set to begin at the National Taiwan University Hospital.
However, Ainos faces a potential delisting from the Nasdaq due to its stock price falling below the required minimum bid price, with a grace period until January 13, 2025, to regain compliance. These are the recent developments at Ainos Inc.
InvestingPro Insights
Ainos, Inc.'s recent expansion of its partnership with TCNT comes at a critical time for the company, as revealed by InvestingPro data. With a market capitalization of just $4.58 million, Ainos is operating in a challenging financial environment. The company's revenue for the last twelve months as of Q2 2023 stood at a mere $0.07 million, with a staggering revenue decline of 97.73% during the same period.
Two particularly relevant InvestingPro Tips highlight Ainos's current situation. First, the company is "quickly burning through cash," which underscores the importance of the new agreement's potential to generate revenue. Second, Ainos "suffers from weak gross profit margins," with data showing a negative gross profit margin of -316.61% for the last twelve months as of Q2 2023.
Despite these challenges, Ainos has seen a significant return over the last week, with a 17.32% price increase, possibly reflecting market optimism about the new partnership developments. This short-term gain contrasts sharply with the longer-term performance, as the stock has fallen 82.99% over the past year.
Investors considering Ainos should note that InvestingPro offers 10 additional tips for this stock, providing a more comprehensive analysis of the company's financial health and market position.
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