Ainos (AIMD) 10-Q 14 May 21 2021 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2021	May 14, 2021
Cover [Abstract]
Entity Registrant Name	Ainos, Inc.
Entity Central Index Key	0001014763
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Current Reporting Status	No
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Interactive Data Current	Yes
Entity Common Stock, Shares Outstanding (in shares)		142,240,594
Entity Shell Company	false
Document Type	10-Q
Document Period End Date	Mar. 31, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Incorporation, State or Country Code	TX
Entity File Number	0-20791

Balance Sheets

Balance Sheets - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Assets
Cash and cash equivalents	$ 9,377	$ 22,245
Inventory	0	3,024
Prepaid expense and other current assets	32,890	51,144
Total current assets	42,267	76,413
Patents, net	177,051	180,628
Property and equipment, net	2,921	3,249
Total assets	222,239	260,290
Liabilities and Stockholders' Equity (Deficit)
Accounts payable and accrued expenses	348,548	145,567
Notes payable - related party	236,854	0
Convertible notes payable – related party	915,016	953,001
Total current liabilities	1,500,418	1,098,568
Total liabilities	1,500,418	1,098,568
Stockholders' equity (deficit)
Preferred stock, $0.01 par value: Authorized shares - 10,000,000, Issued and outstanding shares – 0 at March 31, 2021 and December 31, 2020	0	0
Common stock, $0.01 par value: Authorized shares - 100,000,000, Issued and outstanding shares – 42,066,172 and 42,066,172 at March 31, 2021 and December 31, 2020, respectively	420,662	420,662
Additional paid-in capital	5,055,420	4,961,315
Accumulated deficit	(6,754,261)	(6,220,255)
Total stockholders’ equity (deficit)	(1,278,179)	(838,278)
Total liabilities and stockholders’ equity (deficit)	$ 222,239	$ 260,290

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	42,066,172	42,066,172
Common stock, shares outstanding (in shares)	42,066,172	42,066,172

Statements of Operations

Statements of Operations - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Income Statement [Abstract]
Revenues	$ 2,121	$ 15,200
Cost of revenues	(1,249)	(10,806)
Gross margin	872	4,394
Operating expenses:
Selling, general and administrative expenses	522,981	380,268
Total operating expenses	522,981	380,268
Operating loss	(522,109)	(375,874)
Other income (expense)
Interest income (expense), net	(11,897)	(1,005)
Net income (loss)	(534,006)	(376,879)
Less: Net Income attributable to non-controlling interests	0	0
Net loss attributable to common shareholders	$ (534,006)	$ (376,879)
Basic and diluted net loss per average share available to common shareholders (in dollars per share)	$ (0.01)	$ (0.01)
Weighted average common shares outstanding – basic and diluted (in shares)	42,066,172	40,516,351

Statements of Stockholders' Equ

Statements of Stockholders' Equity (Deficit) (Unaudited) - USD ($)	Preferred Stock	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Total
Balance (in shares) at Dec. 31, 2019	0	40,516,351
Balance at Dec. 31, 2019	$ 0	$ 405,164	$ 4,207,786	$ (4,769,632)	$ (156,682)
Warrant expense			9,496		9,496
Option expense			90,688		90,688
Net loss				(376,879)	(376,879)
Balance (in shares) at Mar. 31, 2020	0	40,516,351
Balance at Mar. 31, 2020	$ 0	$ 405,164	4,307,970	(5,146,511)	(433,377)
Balance (in shares) at Dec. 31, 2020	0	42,066,172
Balance at Dec. 31, 2020	$ 0	$ 420,662	4,961,315	(6,220,255)	(838,278)
Warrant expense			3,417		3,417
Option expense			90,688		90,688
Net loss				(534,006)	(534,006)
Balance (in shares) at Mar. 31, 2021	0	42,066,172
Balance at Mar. 31, 2021	$ 0	$ 420,662	$ 5,055,420	$ (6,754,261)	$ (1,278,179)

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Statement of Cash Flows [Abstract]
Net cash used in operating activities	$ (119,482)	$ (115,712)
Cash flows from financing activities
Proceeds from related party note	0	102,844
Net cash used in financing activities	0	102,844
Net change in cash	(119,482)	(12,868)
Cash and cash equivalents at beginning of period	409,039	22,245
Cash and cash equivalents at end of period	289,557	9,377
Supplemental Cash Flow Information
Cash paid for interest	0	0
Cash paid for income taxes	0	0
Non-Cash Transactions
Stock issued for accrued liabilities	0	0
Stock issued for advances from investors	0	0
Conversion of debt to common stock	$ 0	$ 0

Note 1 - Organization and Busin

Note 1 - Organization and Business	3 Months Ended
	Mar. 31, 2021
Notes to Financial Statements
Organization and Business	Ainos, Inc., formerly known as Amarillo Biosciences, Inc. (the "Company") is a diversified healthcare company engaged in the discovery and development of pharmaceutical and biotech products. The Company is a Texas corporation which was formed in 1984.

Note 2 - General

Note 2 - General	3 Months Ended
	Mar. 31, 2021
Notes to Financial Statements
General	The Company primarily operates through three divisions: Pharmaceutical, Medical and Consumer. The Pharmaceutical division leverages our extensive library of clinical research by applying the Company's experience in the use of low-dose non-injectable interferon (IFN) for the treatment of neoplastic, viral, and fibrotic diseases. The Company seeks to engage in patent licensing and commercialization opportunities with global partners. The Medical division is focused on developing technology to treat metabolism related diseases such as type-1 and type-2 diabetes in Asia. The Consumer division includes a range of nutraceutical and food supplement products that utilize a unique liposomal delivery system. The Company currently has offices in the United States and Taiwan. The Company operates in Taiwan under the name AMARILLO BIOSCIENCES, INC. TAIWAN BRANCH ( 美商康華全球生技股 份有限公司 台灣分公司 ).

Note 3 - Basis of Presentation

Note 3 - Basis of Presentation	3 Months Ended
	Mar. 31, 2021
Notes to Financial Statements
Basis of Presentation	The accompanying consolidated financial statements, which should be read in conjunction with the audited financial statements and footnotes included in the Company's Form 10-K for the year ended December 31, 2020, as filed with the Securities and Exchange Commission on March 30, 2021 attached hereto as Exhibit 13 and which is incorporated by this reference, have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2021, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2021.

Note 4 - Financial Condition

Note 4 - Financial Condition	3 Months Ended
	Mar. 31, 2021
Notes to Financial Statements
Financial Condition	These financial statements have been prepared in accordance with United States generally accepted accounting principles, on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The Company has not yet achieved sustained operating income, and its operations are funded primarily from related-party convertible debt and equity financings. However, losses are anticipated in the ongoing development of its business and there can be no assurance that the Company will be able to achieve or maintain profitability. The continuing operations of the Company and the recoverability of the carrying value of assets is dependent upon the ability of the Company to obtain necessary financing to fund its working capital requirements, and upon future profitable operations. The accompanying financial statements do not include any adjustments relative to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result from the outcome of this uncertainty. There can be no assurance that capital will be available as necessary to meet the Company's working capital requirements or, if the capital is available, that it will be on terms acceptable to the Company. The issuances of additional equity securities by the Company may result in dilution in the equity interests of its current stockholders. Obtaining commercial loans, assuming those loans would be available, will increase the Company's liabilities and future cash commitments. If the Company is unable to obtain financing in the amounts and on terms deemed acceptable, the business and future success may be adversely affected and the Company may cease operations. These factors raise substantial doubt regarding our ability to continue as a going concern.

Note 5 - Common Stock

Note 5 - Common Stock	3 Months Ended
	Mar. 31, 2021
Notes to Financial Statements
Common Stock	The shareholders have authorized 100,000,000 shares of voting common shares for issuance. On March 31, 2021, a total of 51,383,130 shares of common stock were either issued (42,066,172), reserved for conversion of convertible debt to stock (4,032,919), issuance to two Company officers and consultants as compensation (174,422), and held for future exercise of nonqualified options and warrants (5,109,617). We have not paid any dividends to our common stock shareholders to date, and have no plans to do so in the immediate future.

Note 6 - Convertible Notes Paya

Note 6 - Convertible Notes Payable and Other Related Party Notes Payable	3 Months Ended
	Mar. 31, 2021
Notes to Financial Statements
Convertible Notes Payable and Other Related Party Notes Payable	Convertible Notes Payable and Other Related Party Notes Payable. Note #. Conversion Rate Interest Rate March 31, 2021 December 31, 2020 Note 1 - Chen $ 0.1680 0.75 % $ 114,026 $ 114,026 Note 2 - Chen $ 0.1875 0.65 % $ 262,500 $ 262,500 Note 3.19 - Chen $ 0.2500 1.85 % $ 39,620 $ 39,620 Note 4.19 - Chen $ 0.2500 1.61 % $ 14,879 $ 14,879 Note 5.19 – i2China $ 0.2500 1.85 % $ 16,000 $ 16,000 Note 6.20 - Chen $ 0.2500 1.85 % $ 216,600 $ 216,600 Note 7.20 - Chen $ 0.2500 1.60 % $ 23,366 $ 23,366 Note 8.20a – i2China $ 0.2500 1.85 % $ 48,000 $ 48,000 Note 8.20b – i2China $ 0.2500 1.85 % $ 84,000 $ 84,000 Note 9.21 - Chen N/A 0.13 % $ 236,854 $ 134,010 Note 10.21 – Chen $ 0.2500 1.85 % $ 59,025 - Note 11 – i2China $ 0.2500 1.85 % $ 37,000 - Total Convertible Notes (including accrued Interest) – Related Party $ 1,151,870 $ 953,001 Dr. Stephen T. Chen, Chairman, CEO, President, and CFO, and i2China Management Group, LLC, the Company’s management consultant, elected to defer cash compensation during a period of development and fundraising. The parties received convertible promissory notes in consideration of the deferrals. On January 1, 2020, the Company issued Note #6.20 for deferred compensation to Dr. Stephen T. Chen, Chairman, CEO, President, and CFO, in the amount of $216,600, the maximum amount of cash compensation that could be deferred for 2020. The Note is payable on January 1, 2021, or on demand and bears interest at the AFR1 short-term rate of 1.85%. The note is an advancing note with a maximum limit of $216,600 whereby the Company promises to repay the aggregate Principal Amount advanced to date up to the stated maximum amount at Maturity. The Company may request and the payee shall advance up to $9,025 on the 15th and last day of each month until the note matures. The Note may be convertible in whole or in part at a conversion price of $0.25 per share into the Company’s common voting stock. All shares issued are to be restricted subject to Rule 144 promulgated under the U.S. Securities Act of 1933. The Company may prepay the Note in whole or in part at any time without penalty. On January 1, 2020, the Company issued Note #7.20 to Dr. Stephen T. Chen for deferred reimbursement of expenses advanced on behalf of the Company for $30,000, the maximum amount of reimbursable expense that could be deferred. Actual reimbursable expenses deferred is $23,366. The Note is payable on January 1, 2021, or on demand and bears interest at the AFR1 short-term rate of 1.60%. The note is an advancing note with a maximum limit of $30,000 whereby the Company promises to repay the aggregate Principal Amount advanced to date up to the stated maximum amount at Maturity. The Company may request and the payee shall advance against the Note, until Maturity, the amount submitted on a completed and approved reimbursement form along with documentation of the amount to be advanced. The Note may be convertible in whole or in part at a conversion price of $0.25 per share into the Companuy’s common voting stock. All shares issued are to be restricted subject to Rule 144 promulgated under the U.S. Securities Act of 1933. The Company may prepay the Note in whole or in part at any time without penalty. On January 1, 2020, the Company issued Note #8.20 for deferred compensation to i2China Management Group, LLC in the amount of $48,000, the maximum amount of cash compensation that could be deferred in 2020. The Note is payable on January 1, 2021, or on demand and bears interest at the AFR1 short-term rate of 1.85%. The note is an advancing note with a maximum limit of $48,000 whereby the Company promises to repay the aggregate Principal Amount advanced to date up to the stated maximum amount at Maturity. The Company may request and the payee shall advance up to $4,000 on the last day of each month until the note matures. The Note may be convertible in whole or in part at a conversion price of $0.25 per share. On January 1, 2021, the Company issued Note #10.21 for deferred compensation to Dr. Stephen T. Chen, Chairman, CEO, President, and CFO, in the amount of $59,025. The Note is payable on April 1, 2021, or on demand and bears interest at the AFR short-term rate of 1.85%. The note is an advancing note with a maximum limit of $59,025 whereby the Company promises to repay the aggregate Principal Amount advanced to date up to the stated maximum amount at Maturity. The Company may request and the payee shall advance up to $9,025 on the 15th and last day of each month until the note matures. The Note may be convertible in whole or in part at a conversion price of $0.25 per share into the Company’s common voting stock. __________ 1 Applicable Federal Rate - On January 1, 2021, the Company issued Note #11 for deferred compensation to i2China Management Group, LLC in the amount of $37,000. The Note is payable on April 1, 2021, or on demand and bears interest at the AFR1 short-term rate of 1.85%. The note is an advancing note with a maximum limit of $37,000 whereby the Company promises to repay the aggregate Principal Amount advanced to date up to the stated maximum amount at Maturity. The Company may request and the payee shall advance up to $11,000 on the last day of each month until the note matures. The Note may be convertible in whole or in part at a conversion price of $0.25 per share. The notes are unsecured and are due on demand. All shares issued on conversion are to be restricted subject to Rule 144 promulgated under the U.S. Securities Act of 1933. The Company may prepay the notes in whole or in part at any time without penalty. The convertible notes due to Dr. Chen are related party notes.

Note 7 - Other Related Party Tr

Note 7 - Other Related Party Transactions	3 Months Ended
	Mar. 31, 2021
Notes to Financial Statements
Other Related Party Transactions	Other than the aforementioned convertible notes activity, there were no related party transactions that occurred during the period from January 1, 2021 to March 31, 2021.

Note 8 - Subsequent Events

Note 8 - Subsequent Events	3 Months Ended
	Mar. 31, 2021
Notes to Financial Statements
Subsequent Events	On April 1, 2021, the Company issued Note #11.21 for deferred compensation to Dr. Stephen T. Chen, Chairman, CEO, President, and CFO, in the amount of $18,050. The Note is payable on May 1, 2021, or on demand and bears interest at the AFR [1] short-term rate of 1.85%. The note is an advancing note with a maximum limit of $18,050 whereby the Company promises to repay the aggregate Principal Amount advanced to date up to the stated maximum amount at Maturity. The Company may request and the payee shall advance up to $9,025 on the 15th and last day of each month until the note matures. The Note may be convertible in whole or in part at a conversion price of $0.25 per share into the Company’s common voting stock. On April 15, 2021, the Company On April 27, 2021, the Company issued Note #12.21 for a short-term loan for working capital purposes from Ainos, Inc., a Cayman Islands Corporation in the amount of $15,000. The Note is payable on October 27, 2021, or on demand and bears interest at the AFR1 short-term rate of 1.85%. The note has a maximum limit of $15,000 whereby the Company promises to repay the aggregate Principal Amount to date up to the stated maximum amount at Maturity. The Note may be convertible in whole or in part at a conversion price of $0.20 per share. On April 28, 2021, Mr. Chia-Hsi Chen resigned as the Company’s Chief Operating Officer as of April 28, 2021 as reported by the Form 8-K filed by the Company with the SEC on May 3, 2021, attached hereto as Exhibit 99.3 and which is incorporated by reference. On May 5, 2021, the Company issued Note #13.21 for a short-term loan for working capital purposes from Ainos, Inc., a Cayman Islands Corporation in the amount of $20,000. The Note is payable on November 5, 2021, or on demand and bears interest at the Applicable Federal Rate (short-term rate) of 1.85%. The note has a maximum limit of $20,000 whereby the Company promises to repay the aggregate Principal Amount to date up to the stated maximum amount at Maturity. The Note may be convertible in whole or in part at a conversion price of $0.20 per share. Notes #11.21, #12.21, and #13.21 All shares issued on conversion are to be restricted subject to Rule 144 promulgated under the U.S. Securities Act of 1933. The Company may prepay the notes in whole or in part at any time without penalty. The convertible notes due to Dr. Chen and Ainos, Inc., a Cayman Islands Corporation are related party notes.

Note 6 - Convertible Notes Pa_2

Note 6 - Convertible Notes Payable and Other Related Party Notes Payable (Tables)	3 Months Ended
	Mar. 31, 2021
Notes Tables
Convertible Debt	Note #. Conversion Rate Interest Rate March 31, 2021 December 31, 2020 Note 1 - Chen $ 0.1680 0.75 % $ 114,026 $ 114,026 Note 2 - Chen $ 0.1875 0.65 % $ 262,500 $ 262,500 Note 3.19 - Chen $ 0.2500 1.85 % $ 39,620 $ 39,620 Note 4.19 - Chen $ 0.2500 1.61 % $ 14,879 $ 14,879 Note 5.19 – i2China $ 0.2500 1.85 % $ 16,000 $ 16,000 Note 6.20 - Chen $ 0.2500 1.85 % $ 216,600 $ 216,600 Note 7.20 - Chen $ 0.2500 1.60 % $ 23,366 $ 23,366 Note 8.20a – i2China $ 0.2500 1.85 % $ 48,000 $ 48,000 Note 8.20b – i2China $ 0.2500 1.85 % $ 84,000 $ 84,000 Note 9.21 - Chen N/A 0.13 % $ 236,854 $ 134,010 Note 10.21 – Chen $ 0.2500 1.85 % $ 59,025 - Note 11 – i2China $ 0.2500 1.85 % $ 37,000 - Total Convertible Notes (including accrued Interest) – Related Party $ 1,151,870 $ 953,001

Note 5 - Common Stock (Details

Note 5 - Common Stock (Details Narrative) - shares	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Stockholders' equity (deficit)
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Stock issued during period	42,066,172
Shares reserved for conversion of convertible debt to stock	4,032,919
Stock issued as compensation	174,422
Shares held for furutre exercise of noqualified options and warrants	5,109,617

Note 6 - Convertible Notes Pa_3

Note 6 - Convertible Notes Payable - Related Party (Details Textual) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Convertible Notes Payable, Total	$ 1,151,870	$ 953,001
Note 1
Notes Payable, Convertible, Related Parties, Classified Current	$ 114,026	114,026
Debt Instrument, Interest Rate, Stated Percentage	0.75%
Debt Instrument, Convertible, Conversion Price (in dollars per share)	$ 0.168
Note 2
Notes Payable, Convertible, Related Parties, Classified Current	$ 262,500	262,500
Debt Instrument, Interest Rate, Stated Percentage	0.65%
Debt Instrument, Convertible, Conversion Price (in dollars per share)	$ 0.1875
Note 3
Notes Payable, Convertible, Related Parties, Classified Current	$ 39,620	39,620
Debt Instrument, Interest Rate, Stated Percentage	1.85%
Debt Instrument, Convertible, Conversion Price (in dollars per share)	$ 0.25
Note 4
Notes Payable, Convertible, Related Parties, Classified Current	$ 14,879	14,879
Debt Instrument, Interest Rate, Stated Percentage	1.61%
Debt Instrument, Convertible, Conversion Price (in dollars per share)	$ 0.25
Note 5
Notes Payable, Convertible, Related Parties, Classified Current	$ 16,000	16,000
Debt Instrument, Interest Rate, Stated Percentage	1.85%
Debt Instrument, Convertible, Conversion Price (in dollars per share)	$ 0.25
Note 6
Notes Payable, Convertible, Related Parties, Classified Current	$ 216,600	216,600
Debt Instrument, Interest Rate, Stated Percentage	1.85%
Debt Instrument, Convertible, Conversion Price (in dollars per share)	$ 0.25
Note 7
Notes Payable, Convertible, Related Parties, Classified Current	$ 23,366	23,366
Debt Instrument, Interest Rate, Stated Percentage	1.60%
Debt Instrument, Convertible, Conversion Price (in dollars per share)	$ 0.25
Note 8a
Notes Payable, Convertible, Related Parties, Classified Current	$ 48,000	48,000
Debt Instrument, Interest Rate, Stated Percentage	1.85%
Debt Instrument, Convertible, Conversion Price (in dollars per share)	$ 0.25
Note 8b
Notes Payable, Convertible, Related Parties, Classified Current	$ 84,000	84,000
Debt Instrument, Interest Rate, Stated Percentage	1.85%
Debt Instrument, Convertible, Conversion Price (in dollars per share)	$ 0.25
Note 9
Notes Payable, Convertible, Related Parties, Classified Current	$ 236,854	134,010
Debt Instrument, Interest Rate, Stated Percentage	0.13%
Debt Instrument, Convertible, Conversion Price (in dollars per share)	$ 0
Note 10
Notes Payable, Convertible, Related Parties, Classified Current	$ 59,025	0
Debt Instrument, Interest Rate, Stated Percentage	1.85%
Debt Instrument, Convertible, Conversion Price (in dollars per share)	$ 0.25
Note 11
Notes Payable, Convertible, Related Parties, Classified Current	$ 37,000	$ 0
Debt Instrument, Interest Rate, Stated Percentage	1.85%
Debt Instrument, Convertible, Conversion Price (in dollars per share)	$ 0.25

Note 6 - Convertible Notes Pa_4

Note 6 - Convertible Notes Payable - Related Party - Convertible Notes Payable, Outstanding (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Convertible Notes Payable [Abstract]
Convertible note payable	$ 915,016	$ 953,001