Arizona Tribune - Ainos Issues Shareholder Letter on Phased AI Nose Deployment of Up to 20,000 Systems and Scalable Recurring Revenue Opportunity

To Our Shareholders,

I'm proud to share that the AI Nose platform is transitioning from validation-stage pilots into structured industrial deployment.

The confirmed initial order of 1,400 AI Nose systems activates recurring subscription revenue under a three-year service structure totaling approximately $2.1 million.

This milestone marks our progression from proof-of-concept validation to revenue-generating implementation within semiconductor manufacturing environments. This also reflects our vision to expand AI Nose from healthcare into the broader industrial market.

The broader roadmap contemplates phased deployment of up to 20,000 AI Nose systems across customer facilities. If fully executed over time, this framework could support annual order values approaching $10 million. Advancement into subsequent phases remains subject to staged technical validation and formal contractual conversion with our customer.

Platform Economics and Recurring Revenue Model

We are building AI Nose into a scent intelligence platform, scalable across a broad range of industries, spanning from healthcare to industrials. Our commercial architecture integrates four core components:

• Hardware deployment at the edge

• Subscription-based analytics and monitoring

• Continuous AI model optimization

• Multi-site scalability across industrial environments

This layered structure aims to support recurring revenue visibility while expanding operating leverage as deployments scale. As additional systems come online, subscription activation and data-driven model refinement are expected to further reinforce the platform's long-term economic profile.

Semiconductor Front-End Validation

In parallel, AI Nose is undergoing validation testing within advanced semiconductor front-end fabrication facilities - among the most technically demanding industrial environments in the world.

These evaluations will set the foundation for commercial integration in advanced wafer fabrication facilities. Successful validation would expand our industrial integration opportunities within capital-intensive wafer fabrication environments.

We remain focused on disciplined execution, subscription activation, and scalable infrastructure expansion as we position scent as the next AI token - advancing the smell language model (SLM), strengthening Smell ID libraries, and building SmellTech, powered by AI Nose, as a foundational sensing infrastructure for industrial AI systems.

Sincerely,

Eddy Tsai

Chairman, President & Chief Executive Officer

Ainos, Inc.

About AI Nose

AI Nose digitizes scent into Smell ID, an AI-driven form of scent intelligence. The full-stack electronic nose platform integrates high-precision MEMS sensor arrays with proprietary AI algorithms designed to support ppb-level scent detection sensitivity, subject to application conditions and deployment configurations. Smell ID converts analog scent signals into structured, actionable data, while the proprietary Smell Language Model (SLM) is designed to learn, classify, and contextualize complex scent patterns over time.

Built upon more than a decade of accumulated scent data and deep medtech expertise, AI Nose is designed to support continuous monitoring, predictive analysis, and real-time alerts across industrial and manufacturing environments. AI Nose is offered under a SmellTech-as-a-Service architecture, intended to support ongoing access to scent intelligence, analytics, and AI-driven insights through subscription-based deployment models.

About Ainos, Inc.

Ainos, Inc. (NASDAQ:AIMD) is a dual-platform AI and biotech company pioneering smelltech and immune therapeutics. Its AI Nose platform and smell language model (SLM) digitize scent into Smell ID, a machine-readable data format, powering intelligent sensing across robotics, smart factories, and healthcare. The company also develops VELDONA^®, a low-dose oral interferon targeting rare, autoimmune, and infectious diseases. Ainos, a fusion of "AI" and "Nose," is redefining machine perception for the sensory age. To learn more, visit https://www.ainos.com. Follow Ainos on X, formerly known as Twitter, (@AinosInc) and LinkedIn to stay up-to-date.

Forward-Looking Statements

Certain statements in this letter are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements are based on management's current assumptions and expectations of future events and trends, which affect or may affect the Company's business, strategy, operations or financial performance, and actual results and other events may differ materially from those expressed or implied in such statements due to numerous risks and uncertainties. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. There are a number of important factors that could cause actual results, developments, business decisions or other events to differ materially from those contemplated by the forward-looking statements in this press release. These factors include, among other things, our expectation that we will incur net losses for the foreseeable future; our ability to become profitable; our ability to raise additional capital to continue our product development; our ability to accurately predict our future operating results; our ability to advance our current or future product candidates through clinical trials, obtain marketing approval and ultimately commercialize any product candidates we develop; the ability to obtain and maintain regulatory approval of our product candidates; delays in completing the development and commercialization of our current and future product candidates; developing and commercializing additional products, including diagnostic testing devices; our ability to compete in the marketplace; compliance with applicable laws, regulations and tariffs, and factors described in the Risk Factors section of our public filings with the Securities and Exchange Commission (SEC). Because forward-looking statements are inherently subject to risks and uncertainties, you should not rely on these forward-looking statements as predictions of future events. These forward-looking statements speak only as of the date of this press release and, except to the extent required by applicable law, the Company undertakes no obligation to update or revise these statements, whether as a result of any new information, future events and developments or otherwise.

Contact Information
Feifei Shen
[email protected]

SOURCE: Ainos, Inc.

View the original press release on ACCESS Newswire

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