0001493152-26-013579
SEC filingRevenue surged 499% to $124.2K with gross profit turning positive at $102.9K (82.9% margin), but operating loss widened slightly to $14.0M and net loss to $14.8M amid heavy R&D investment.
Revenue grew 499.0% to $124,157 from $20,729, primarily from AI Nose hardware sales replacing low-margin COVID test kits, as indicated by the decrease in cost of revenues due to product mix changes. This shift drove gross profit to $102,911 (82.9% margin) from a $31,866 loss, showcasing improved scalability in the Company's SmellTech platform.
Operating loss increased slightly by 1.1% to $13,990,408 from $13,841,204, as noted in management's discussion. The modest widening reflects ongoing heavy investment in R&D and product development to support AI Nose commercialization, outpacing revenue gains despite some staffing efficiencies. Diluted EPS deteriorated to -$3.46 from -$1.56, highlighting the dilutive impact of losses on shareholders.
Cash used in operating activities moderated to $4,614,697 from $5,808,267, primarily resulting from the net loss but supported by increased cash inflows from operating assets and liabilities. Free cash flow stood at -$4,649,258 after $34,561 in capital expenditures, down from prior year levels partly due to higher refundable deposits and other noncurrent assets, offset by reduced property and equipment purchases. This indicates better working capital management amid persistent losses.