2022 Q4 Form 10-Q Financial Statement

#000165495422015091 Filed on November 14, 2022

View on sec.gov

Income Statement

Concept 2022 Q4 2022 Q3 2021 Q3
Revenue $1.038M $1.758M $363.1K
YoY Change 3831.93% 384.17% 188989.58%
Cost Of Revenue $578.2K $1.176M $103.6K
YoY Change 5806.13% 1034.75% 84158.54%
Gross Profit $459.8K $581.7K $259.4K
YoY Change 2668.33% 124.25% 375862.32%
Gross Profit Margin 44.3% 33.1% 71.45%
Selling, General & Admin $787.5K $6.569M $796.0K
YoY Change 341.96% 725.32% 147.84%
% of Gross Profit 171.27% 1129.23% 306.83%
Research & Development $1.799M $1.835M $646.8K
YoY Change 41.22% 183.67%
% of Gross Profit 391.21% 315.4% 249.33%
Depreciation & Amortization $1.225M $1.229M
YoY Change
% of Gross Profit 266.48% 211.3%
Operating Expenses $2.586M $8.404M $1.443M
YoY Change 78.12% 482.5% 349.24%
Operating Profit -$2.127M -$7.822M -$1.183M
YoY Change 48.15% 561.03% 268.55%
Interest Expense -$8.220K $515.00 $23.52K
YoY Change -11.9% -97.81% -1168.61%
% of Operating Profit
Other Income/Expense, Net $3.800K $10.34K $1.443M
YoY Change -99.28% 349.24%
Pretax Income -$2.131M -$7.822M -$1.160M
YoY Change 47.5% 574.23% 258.85%
Income Tax $0.00
% Of Pretax Income
Net Earnings -$2.131M -$7.822M -$1.160M
YoY Change 47.5% 574.23% 258.85%
Net Earnings / Revenue -205.29% -444.98% -319.54%
Basic Earnings Per Share
Diluted Earnings Per Share -$0.11 -$511.2K -$122.2K
COMMON SHARES
Basic Shares Outstanding 20.01M shares 19.48M shares 142.4M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2022 Q4 2022 Q3 2021 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.853M $2.417M $706.9K
YoY Change 5.82% 241.92% 783.66%
Cash & Equivalents $1.853M $2.417M $706.9K
Short-Term Investments
Other Short-Term Assets $195.8K $152.4K $133.1K
YoY Change -58.0% 14.53% 90.1%
Inventory $595.2K $698.3K $173.7K
Prepaid Expenses
Receivables $201.5K $400.2K $44.64K
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $2.846M $3.668M $884.8K
YoY Change 28.33% 314.56% 460.26%
LONG-TERM ASSETS
Property, Plant & Equipment $1.376M $1.351M $39.96K
YoY Change 15.83% 3281.12% 1017.34%
Goodwill
YoY Change
Intangibles $32.81M
YoY Change -12.12%
Long-Term Investments
YoY Change
Other Assets $80.68K $116.4K $1.795K
YoY Change -7.87% 6386.07%
Total Long-Term Assets $34.26M $35.41M $19.11M
YoY Change -11.25% 85.33% 13230.18%
TOTAL ASSETS
Total Short-Term Assets $2.846M $3.668M $884.8K
Total Long-Term Assets $34.26M $35.41M $19.11M
Total Assets $37.11M $39.08M $19.99M
YoY Change -9.1% 95.47% 6536.23%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $578.6K
YoY Change 60.71%
Accrued Expenses $1.212M $1.383M $31.98K
YoY Change 4128.33% 4223.3%
Deferred Revenue
YoY Change
Short-Term Debt $884.0K $884.0K $2.185M
YoY Change -75.38% -59.55% 246.86%
Long-Term Debt Due $376.5K $376.5K $2.000M
YoY Change -88.86% -81.17%
Total Short-Term Liabilities $2.473M $2.643M $2.822M
YoY Change -91.92% -6.33% 161.83%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $8.100K $12.51K $35.29K
YoY Change -73.23% -64.55%
Total Long-Term Liabilities $8.100K $12.51K $35.29K
YoY Change -73.23% -64.55%
TOTAL LIABILITIES
Total Short-Term Liabilities $2.473M $2.643M $2.822M
Total Long-Term Liabilities $8.100K $12.51K $35.29K
Total Liabilities $2.481M $2.656M $2.857M
YoY Change -91.9% -7.05% 165.1%
SHAREHOLDERS EQUITY
Retained Earnings -$24.12M -$21.98M -$8.664M
YoY Change 138.56% 153.74% 50.11%
Common Stock $200.1K $194.8K $1.424M
YoY Change -86.14% -86.33% 248.13%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $34.63M $36.43M $17.14M
YoY Change
Total Liabilities & Shareholders Equity $37.11M $39.08M $19.99M
YoY Change -9.1% 95.47% 6536.23%

Cashflow Statement

Concept 2022 Q4 2022 Q3 2021 Q3
OPERATING ACTIVITIES
Net Income -$2.131M -$7.822M -$1.160M
YoY Change 47.5% 574.23% 258.85%
Depreciation, Depletion And Amortization $1.225M $1.229M
YoY Change
Cash From Operating Activities -$615.4K -$786.6K -$526.2K
YoY Change -9.6% 49.48% 209.54%
INVESTING ACTIVITIES
Capital Expenditures -$35.97K -$245.2K $23.31K
YoY Change -74.98% -1152.04%
Acquisitions
YoY Change
Other Investing Activities -$1.060K $4.710K -$43.38K
YoY Change -116.04% -110.86%
Cash From Investing Activities $34.90K -$240.5K -$20.06K
YoY Change -125.44% 1099.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -4.650K 1.646M 639.5K
YoY Change -100.25% 157.38% 699.41%
NET CHANGE
Cash From Operating Activities -615.4K -786.6K -526.2K
Cash From Investing Activities 34.90K -240.5K -20.06K
Cash From Financing Activities -4.650K 1.646M 639.5K
Net Change In Cash -585.2K 618.9K 93.25K
YoY Change -155.93% 563.71% -203.61%
FREE CASH FLOW
Cash From Operating Activities -$615.4K -$786.6K -$526.2K
Capital Expenditures -$35.97K -$245.2K $23.31K
Free Cash Flow -$579.5K -$541.4K -$549.5K
YoY Change 7.9% -1.49% 223.25%

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PaymentsToAcquirePropertyPlantAndEquipment
669792 usd
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
41581 usd
aimd Proceeds From Disposal Of Properties And Equipments
ProceedsFromDisposalOfPropertiesAndEquipments
0 usd
aimd Proceeds From Disposal Of Properties And Equipments
ProceedsFromDisposalOfPropertiesAndEquipments
36 usd
us-gaap Increase Decrease In Deposit Other Assets
IncreaseDecreaseInDepositOtherAssets
-4713 usd
us-gaap Increase Decrease In Deposit Other Assets
IncreaseDecreaseInDepositOtherAssets
1795 usd
us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-665079 usd
us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-43340 usd
aimd Payments Of Lease Liabilities
PaymentsOfLeaseLiabilities
-14896 usd
aimd Payments Of Lease Liabilities
PaymentsOfLeaseLiabilities
-6815 usd
aimd Proceeds From Convertible Notes Payable Non Current
ProceedsFromConvertibleNotesPayableNonCurrent
1400000 usd
aimd Proceeds From Convertible Notes Payable Non Current
ProceedsFromConvertibleNotesPayableNonCurrent
0 usd
us-gaap Proceeds From Convertible Debt
ProceedsFromConvertibleDebt
0 usd
us-gaap Proceeds From Convertible Debt
ProceedsFromConvertibleDebt
1232192 usd
us-gaap Proceeds From Notes Payable
ProceedsFromNotesPayable
800000 usd
us-gaap Proceeds From Notes Payable
ProceedsFromNotesPayable
0 usd
us-gaap Proceeds From Repayments Of Notes Payable
ProceedsFromRepaymentsOfNotesPayable
-129405 usd
us-gaap Proceeds From Repayments Of Notes Payable
ProceedsFromRepaymentsOfNotesPayable
0 usd
aimd Net Proceeds From Uplisting In Nasdaq
NetProceedsFromUplistingInNasdaq
1780204 usd
aimd Total Payments
TotalPayments
0 usd
aimd Total Payments
TotalPayments
62723 usd
aimd Acquisition Of Property And Equipment
AcquisitionOfPropertyAndEquipment
575567 usd
aimd Acquisition Of Property And Equipment
AcquisitionOfPropertyAndEquipment
0 usd
aimd Increase In Prepaid For Equipments
IncreaseInPrepaidForEquipments
33776 usd
aimd Net Proceeds From Uplisting In Nasdaq
NetProceedsFromUplistingInNasdaq
0 usd
aimd Proceeds From Exercise Of Share Options
ProceedsFromExerciseOfShareOptions
0 usd
aimd Proceeds From Exercise Of Share Options
ProceedsFromExerciseOfShareOptions
64752 usd
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
3835903 usd
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
1290129 usd
us-gaap Foreign Currency Transaction Gain Before Tax
ForeignCurrencyTransactionGainBeforeTax
99435 usd
us-gaap Foreign Currency Transaction Gain Before Tax
ForeignCurrencyTransactionGainBeforeTax
7047 usd
us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
665648 usd
us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
684686 usd
CY2021Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
1751499 usd
CY2020Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
22245 usd
CY2022Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
2417147 usd
CY2021Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
706931 usd
us-gaap Interest Paid Net
InterestPaidNet
1872 usd
us-gaap Interest Paid Net
InterestPaidNet
9363 usd
aimd Stock Issued For Compensation Warrant And Option Expense
StockIssuedForCompensationWarrantAndOptionExpense
0 usd
aimd Stock Issued For Compensation Warrant And Option Expense
StockIssuedForCompensationWarrantAndOptionExpense
346938 usd
aimd Stock Issued For Acquisition Of Patents
StockIssuedForAcquisitionOfPatents
0 usd
aimd Stock Issued For Acquisition Of Patents
StockIssuedForAcquisitionOfPatents
20000000 usd
aimd Issuance Of Convertible Notes For Payables Related Party
IssuanceOfConvertibleNotesForPayablesRelatedParty
26000000 usd
aimd Issuance Of Convertible Notes For Payables Related Party
IssuanceOfConvertibleNotesForPayablesRelatedParty
0 usd
aimd Conversion Of Convertible Notes And Accrued Interest Into Common Stock
ConversionOfConvertibleNotesAndAccruedInterestIntoCommonStock
30442959 usd
aimd Conversion Of Convertible Notes And Accrued Interest Into Common Stock
ConversionOfConvertibleNotesAndAccruedInterestIntoCommonStock
0 usd
aimd Increase In Prepaid For Equipments
IncreaseInPrepaidForEquipments
0 usd
aimd Decrease In Prepaid For Equipments
DecreaseInPrepaidForEquipments
60449 usd
aimd Decrease In Prepaid For Equipments
DecreaseInPrepaidForEquipments
0 usd
us-gaap Payments For Other Taxes
PaymentsForOtherTaxes
669792 usd
us-gaap Payments For Other Taxes
PaymentsForOtherTaxes
0 usd
aimd Underwritten Public Offering
UnderwrittenPublicOffering
<p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong>2. </strong><strong>Underwritten Public Offering</strong></p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">The Company’s registration statement related to its underwritten public offering (“Offering”) was declared effective on August 8, 2022, and the Company’s common stock and warrants began trading on the Nasdaq Capital Market (“Nasdaq”) on August 9, 2022 under the trading symbols “AIMD” and “AIMDW”, respectively. The Company completed its underwritten public offering of an aggregated 780,000 units at a public offering price of $4.25 per unit. Each unit issued in the offering consisted of one share of common stock and one warrant to purchase one share of common stock at an exercise price of $4.25.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">In connection with the Offering, the Company’s board of directors on April 29, 2022 and our shareholders on May 16, 2022 approved a 1-for-15 reverse stock split (the “Reverse Stock Split”) of the Company’s common stock and each series of its redeemable convertible notes to be consummated prior to the effectiveness of the Offering The par value and authorized shares of the Company’s common stock were not adjusted as a result of the Reverse Stock Split. All issued and outstanding common stock, RSUs, warrants and options to purchase common stock and per share amounts contained in the financial statements have been retroactively adjusted to give effect to the Reverse Stock Split for all periods presented.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">The Company filed an amended Restated Certificate of Formation with the Secretary of State of Texas on August 8, 2022 that effectuated the Reverse Stock Split.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">Additional information regarding the Offering and Reverse Stock Split can be found below in Note 5 of the Notes to Financial Statements.</p>
CY2022Q3 us-gaap Shares Issued
SharesIssued
780000 shares
CY2022Q3 aimd Exercise Price Of Share
ExercisePriceOfShare
425000 usd
CY2022Q3 us-gaap Preferred Units Offering Costs
PreferredUnitsOfferingCosts
425000 usd
CY2022Q3 aimd Convertible Debts
ConvertibleDebts
145066 usd
aimd Warrant Conversion
WarrantConversion
966174 shares
us-gaap Proceeds From Decommissioning Fund
ProceedsFromDecommissioningFund
1800000 usd
CY2022Q3 us-gaap Debt Instrument Convertible Conversion Price1
DebtInstrumentConvertibleConversionPrice1
4.68
aimd Equity Incentive Plans
EquityIncentivePlans
<p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong>6. </strong><strong>Equity Incentive Plans </strong></p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong><em>2018 Employee Stock Option Plan (the “2018-ESOP”)</em></strong></p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">On September 26, 2018, the Board adopted the Company 2018 Employee Stock Option Plan (the “2018-ESOP”), formerly referred to as the “Amarillo Biosciences, Inc., 2018 Employee Stock Option Plan” in prior filings. The 2018-ESOP provides for the grant of Qualified Incentive Stock Options to the Company’s employees. Qualified options automatically became non-qualified options effective September 26, 2019 and was governed under the 2018-NQSOP described below because the plan was not ratified by our shareholders. The maximum number of shares of common stock authorized under the plan was 66,666 shares. The option price per share of common stock deliverable upon the exercise of an incentive stock option was 100% of the fair market value of a share on the date of grant. The option price is $5.7 per share and the options are exercisable during a period of ten years from the date of grant, where the options vest 20% annually over five years, commencing one year from date of grant.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">Effective as of October 6, 2021, with the adoption by the Board of the 2021 SIP, no further awards may be granted under the 2018-ESOP.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong><em>2018 Officers, Directors, Employees, and Consultants Nonqualified Stock Option Plan (the “2018-NQSOP”)</em></strong></p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">On September 26, 2018, the Board adopted the Company 2018 Officers, Directors, Employees, and Consultants Nonqualified Stock Option Plan (the “2018-NQSOP”), formerly referred to as the “Amarillo Biosciences, Inc., 2018 Officers, Directors, Employees, and Consultants Nonqualified Stock Option Plan” in prior filings. The 2018-NQSOP provides for the grant of nonqualified incentive stock options to employees. The 2018-NQSOP is administered by the Board or by the Compensation Committee as constituted from time to time. The maximum number of shares of common stock which may be issued under the 2018-NQSOP is 266,666 which will be reserved for issuance upon exercise of options. The option price for the nonqualified options is $5.73 exercisable for a period of ten years, with a vesting period of five years at 20% per year commencing one year from date of grant.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">Effective as of October 6, 2021, with the adoption by the Board of the 2021 SIP, no further awards may be granted under the 2018-NQSOP. As of September 30, 2022, options to acquire 36,666 shares of common stock remained outstanding.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong><em>2021 Employee Stock Purchase Plan</em></strong></p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">On September 28, 2021, the Board and on May 16, 2022 our shareholders, respectively, approved the 2021 Employee Stock Purchase Plan (the “2021 ESPP” or “Plan”). The purpose of the 2021 ESPP is to provide an opportunity for eligible employees of the company and its designated companies (as defined in the Plan) to purchase common stock at a discount through voluntary contributions, thereby attracting, retaining and rewarding such persons and strengthening the mutuality of interest between such persons and the Company’s stockholders. The Company intends for offerings under the Plan to qualify as an “employee stock purchase plan” under Section 423 of the Code; provided, that the Plan administrator may also authorize the grant of rights under offerings that are not intended to comply with the requirements of Section 423, pursuant to any rules, procedures, agreements, appendices, or sub-plans adopted by the administrator. Subject to adjustments as provided in the Plan, the maximum number of shares of common stock that may be issued under the Plan may not exceed 50,000 shares. Such shares may be authorized but unissued shares, treasury shares or shares purchased in the open market. The Plan is subject to approval by the Company’s stockholders within twelve months after the date of Board approval. The Plan will become effective on the date that stockholder approval is obtained, and will continue in effect until it expires on the tenth anniversary of the effective date of the Plan, unless terminated earlier.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong><em>2021 Stock Incentive Plan</em></strong></p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">On September 28, 2021, the Board and on May 16, 2022 our shareholders, respectively, approved the 2021 Stock Incentive Plan (the “2021 SIP” or “Plan”). The purpose of the 2021 SIP is to provide a means through which the Company, and the other members of the Company Group, defined by Section 2(n) of the Plan as the Company and its subsidiaries, and any other affiliate of the Company designated as a member of the Company Group by the Committee, may attract and retain key personnel, and to provide a means whereby directors, officers, employees, consultants and advisors of the Company and the other members of the Company Group can acquire and maintain an equity interest in the Company, or be paid incentive compensation measured by reference to the value of common stock, thereby strengthening their commitment to the interests of the Company Group and aligning their interests with those of the Company’s stockholders. The types of awards that may be granted from the Plan include individually or collectively, any Incentive Stock Option, Nonqualified Stock Option, Stock Appreciation Right, Restricted Stock, Restricted Stock Unit, Dividend Equivalent Rights and Other Equity-Based Award granted under the Plan. The Plan will be effective upon shareholder approval. The expiration date of the Plan, on and after which date no awards may be granted, will be the tenth anniversary of the date of Board approval of the Plan, provided, however, that such expiration will not affect awards then outstanding, and the terms and conditions of the Plan will continue to apply to such Awards. The aggregate number of shares which may be issued pursuant to awards under the Plan is 1,333,333 shares of Common Stock (the “Plan Share Reserve”), subject to adjustments as provided in the Plan. The number of shares underlying any award granted under 2018 ESOP or 2018 NQSOP (the “Prior Plans”) that expires, terminates or is canceled or forfeited for any reason whatsoever under the terms of the Prior Plans, will increase the Plan Share Reserve. Each Award granted under the Plan will reduce the Plan Share Reserve by the number of shares underlying the award. No more than 666,666 shares may be issued in the aggregate pursuant to the exercise of incentive stock options granted under the Plan. The maximum number of shares subject to awards granted during a single fiscal year to any non-employee director, taken together with any cash fees paid to such director during the fiscal year, will not exceed $600,000 in total value (calculating the value of any such awards based on their grant date fair value for financial reporting purposes).</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="font-size:10pt;font-family:times new roman;margin:0px">On July 28, 2022, the Company granted 533,332 and 88,000 Restricted Stock Units (the “RSUs”), after giving effect to the Reverse Stock Split, under the 2021 SIP to employees and non-employee directors, respectively. The RSUs shall vest in accordance to the respective employment agreements entered into by each of the employees and the 2021 Non-employee Director Compensation Policy relative to the non-employee directors.</p><p style="font-size:10pt;font-family:times new roman;margin:0px">       </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong><em>Restricted Stock Units</em></strong></p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="font-size:10pt;font-family:times new roman;margin:0px">RSUs entitle the recipient to be paid out an equal number of common stock shares upon vesting. The fair value of RSUs is based on market price of the underlying stock on the date of grant. A summary of the Company’s RSU activity and related information for the nine months ended September 30, 2022 is as follows:</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><table cellpadding="0" style="border-spacing:0;text-align:left;font:10pt times new roman;margin-left:auto;margin-right:auto;width:85%"><tbody><tr style="height:15px"><td><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td style="white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td class="hdcell" colspan="2" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;"><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:center;">Number of RSUs</p></td><td style="PADDING-BOTTOM: 1px;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td style="white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td class="hdcell" colspan="2" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:center;"><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:center;">Weighted-</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:center;">Average Grant </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:center;">Date Fair Value </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:center;">Per RSU</p></td><td style="PADDING-BOTTOM: 1px;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td></tr><tr style="height:15px;background-color:#cceeff"><td style="vertical-align:top;"><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:left;">Balance as of December 31,2021</p></td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">-</td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">N/A</td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td></tr><tr style="height:15px;background-color:#ffffff"><td style="vertical-align:top;"><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:left;">RSUs granted</p></td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">621,332</td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">11.10</td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td></tr><tr style="height:15px;background-color:#cceeff"><td style="vertical-align:top;"><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:left;">RSUs vested</p></td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">(533,332</td><td style="width:1%;vertical-align:bottom;white-space: nowrap;">)</td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td style="width:1%;vertical-align:bottom;white-space: nowrap;">$</td><td class="ffcell" style="width:9%;vertical-align:bottom;text-align:right;">11.10</td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td></tr><tr style="height:15px;background-color:#ffffff"><td style="vertical-align:top;"><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:left;">RSUs canceled</p></td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td style="BORDER-BOTTOM: 1px solid;width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">-</td><td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td style="BORDER-BOTTOM: 1px solid;width:1%;vertical-align:bottom;white-space: nowrap;">$</td><td class="ffcell" style="BORDER-BOTTOM: 1px solid;width:9%;vertical-align:bottom;text-align:right;">N/A</td><td style="PADDING-BOTTOM: 1px;width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td></tr><tr style="height:15px;background-color:#cceeff"><td style="vertical-align:top;"><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:left;">Balance as of September 30, 2022</p></td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td style="BORDER-BOTTOM: 3px double;width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td class="ffcell" style="BORDER-BOTTOM: 3px double;width:9%;vertical-align:bottom;text-align:right;">88,000</td><td style="PADDING-BOTTOM: 3px;width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td style="width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td><td style="BORDER-BOTTOM: 3px double;width:1%;vertical-align:bottom;white-space: nowrap;">$</td><td class="ffcell" style="BORDER-BOTTOM: 3px double;width:9%;vertical-align:bottom;text-align:right;">11.10</td><td style="PADDING-BOTTOM: 3px;width:1%;white-space: nowrap;"><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p></td></tr></tbody></table><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">The aggregate fair value of RSU awards that vested in the three- and nine-month periods ended September 30, 2022 was $1 million.  The grant date fair value of awards that vested in the three- and nine-month periods ended September 30, 2022 was $5.9 million.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong><em>Warrants</em></strong></p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">As of September 30, 2022, following warrants are outstanding:</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">Pursuant to the Offering on August 9, 2022, the Company issued 780,000 units at a public offering price of $4.25 per unit. Each unit issued in the offering consisted of one share of common stock and one warrant to purchase one share of common stock at an exercise price of $4.25. </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">Pursuant to an underwriting agreement, dated August 8, 2022, by and between the Company and Maxim Group LLC (“Maxim”), as representative of the underwriters, Maxim partially exercised the option to purchase 117,000 additional warrants at a price per warrant of $0.01.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">Pursuant to the underwriting agreement the Company issued representative warrants to the Maxim, as representative of the underwriters, to purchase 39,000 shares of common stock at an exercise price of $4.675, effective from February 5, 2023 until August 8, 2027.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">On November 25, 2020, the Company issued a warrant to i2China Management Group, LLC, a related party of the Company since August 1, 2021.  The warrant entitles the holder to purchase 30,174 shares $3.98 and expires on November 24, 2025. </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"><strong><em>Share-Based Compensation</em></strong></p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">The share-based compensation for the three months ended September 30, 2022 and 2021 were $6,076,017 and $19,322, respectively; and compensation for the nine months ended September 30, 2022 and 2021 were $6,162,902 and $ 207,533, respectively.</p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">As of September 30, 2022, the total unrecognized compensation cost related to outstanding RSUs, stock options and warrant was $1,197,230, which the Company expects to recognize over a weighted-average period of 1.61 years.</p>
CY2022Q3 aimd Aggregate Fair Value Of Rsu
AggregateFairValueOfRsu
1000000 usd
CY2022Q3 aimd Grant Date Fair Value
GrantDateFairValue
5900000 usd
CY2022Q3 us-gaap Share Based Compensation
ShareBasedCompensation
6076017 usd
CY2021Q3 us-gaap Share Based Compensation
ShareBasedCompensation
19322 usd
us-gaap Dividends Sharebased Compensation Stock
DividendsSharebasedCompensationStock
6162902 usd
us-gaap Dividends Sharebased Compensation Stock
DividendsSharebasedCompensationStock
207533 usd
CY2022Q3 aimd Unrecognised Stock Options And Warrants
UnrecognisedStockOptionsAndWarrants
1197230 usd
CY2022Q1 us-gaap Debt Instrument Annual Principal Payment
DebtInstrumentAnnualPrincipalPayment
3000000 usd
CY2022Q1 us-gaap Convertible Notes Payable
ConvertibleNotesPayable
800000 usd
srt Interest Bearing Liabilities Average Rate Paid
InterestBearingLiabilitiesAverageRatePaid
0.0185 pure
CY2022Q3 us-gaap Other Notes Payable
OtherNotesPayable
3042959 usd
CY2022Q3 aimd Converted Shares Of Common Stock
ConvertedSharesOfCommonStock
1014319 usd
CY2022Q3 us-gaap Other Notes Payable
OtherNotesPayable
1260526 usd
us-gaap Interest Expense
InterestExpense
44674 usd
us-gaap Interest Expense
InterestExpense
32775 usd
CY2022Q3 us-gaap Accumulated Deferred Investment Tax Credit
AccumulatedDeferredInvestmentTaxCredit
28517 usd
CY2021Q4 us-gaap Accumulated Deferred Investment Tax Credit
AccumulatedDeferredInvestmentTaxCredit
28673 usd
CY2022Q3 us-gaap Convertible Notes Payable
ConvertibleNotesPayable
26000000 usd
CY2022Q1 us-gaap Convertible Notes Payable
ConvertibleNotesPayable
1400000 usd
aimd Non Current Convertible Notes Payable
NonCurrentConvertibleNotesPayable
27400000 usd
us-gaap Common Stock Dividends Shares
CommonStockDividendsShares
8058818 shares
CY2021Q2 us-gaap Common Stock Shares Issued
CommonStockSharesIssued
6666666 shares
CY2021Q2 us-gaap Shares Issued Price Per Share
SharesIssuedPricePerShare
3
CY2021Q2 aimd Common Stock Authorized
CommonStockAuthorized
300000000 shares
CY2021Q2 aimd Issued And Outstanding Shares Of Common Stock Ownership Percentage
IssuedAndOutstandingSharesOfCommonStockOwnershipPercentage
0.7030 pure
CY2022Q3 aimd Repurchase Agreements Interest Expense Amount1
RepurchaseAgreementsInterestExpenseAmount1
26000000 usd

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