Ainos (AIMD) 10-Q 15 Nov 21 2021 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2021	Nov. 15, 2021
Cover [Abstract]
Entity Registrant Name	AINOS, INC.
Entity Central Index Key	0001014763
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Sep. 30, 2021
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2021
Entity Common Stock Shares Outstanding		142,442,215
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	0-20791
Entity Incorporation State Country Code	TX
Entity Tax Identification Number	75-1974352
Entity Address Address Line 1	8880 Rio San Diego Drive
Entity Address Address Line 2	Ste. 800
Entity Address City Or Town	San Diego
Entity Address State Or Province	CA
Entity Address Postal Zip Code	92108
City Area Code	858
Local Phone Number	869-2986
Entity Interactive Data Current	Yes

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2021	Dec. 31, 2020
Balance Sheets
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)	300,000,000	300,000,000
Common stock, shares issued (in shares)	142,442,215	42,066,172
Common stock, shares outstanding (in shares)	142,442,215	42,066,172

Balance Sheets

Balance Sheets - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Assets
Cash and cash equivalents	$ 706,931	$ 22,245
Accounts receivable	44,643	0
Inventory	175	3,024
Prepaid expense and other current assets	133,065	51,144
Total current assets	884,814	76,413
Patents, net	19,011,337	180,628
Property and equipment, net	39,956	3,249
Right of Use Asset	55,724	0
Other Assets	1,795	0
Total assets	19,993,626	260,290
Current liabilities:
Accounts payable and accrued expenses	578,549	145,567
Contract liabilities	37,616	0
Convertible notes payable - related party	2,000,193	805,001
Convertible notes payable	185,000	148,000
Lease Obligation-Current	20,619	0
Total current liabilities	2,821,977	1,098,568
Non-current liabilities:
Lease Obligation-Non current	35,289	0
Total liabilities	2,857,266	1,098,568
Stockholders' equity (deficit)
Preferred stock, $0.01 par value, 10 million shares authorized, 0 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively	0	0
Common Stock, $0.01 par value, 300 million shares authorized, 142,442,215 and 42,066,172 shares outstanding at September 30, 2021 and December 31, 2020, respectively	1,424,422	420,662
Additional paid-in capital	24,369,245	4,961,315
Accumulated deficit	(8,664,145)	(6,220,255)
Translation adjustment	6,838	0
Total stockholders' equity (deficit)	17,136,360	(838,278)
Total liabilities and stockholders' equity (deficit)	$ 19,993,626	$ 260,290

Statements of Operations (Unaud

Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statements of Operations (Unaudited)
Revenues	$ 363,052	$ 192	$ 568,164	$ 15,876
Cost of revenues	103,638	123	174,395	11,221
Gross margin	259,414	69	393,769	4,655
Operating expenses:
Research and development expenses	646,798	0	646,798	389
Selling, general and administrative expenses	795,958	321,153	2,178,969	1,001,893
Total operating expense	1,442,756	321,153	2,825,767	1,002,282
Operating loss	(1,183,342)	(321,084)	(2,431,998)	(997,627)
Non-operating income and expenses
Interest Income, net	(23,517)	(2,201)	(9,361)	(4,503)
Other Losses	(285)	0	(2,532)	0
Total Non-operating income and expenses	23,232	(2,201)	(11,893)	(4,503)
Profit before income tax	(1,160,110)	(323,285)	(2,443,891)	(1,002,130)
Less: Income tax	0	0	0	0
Net loss	$ (1,160,110)	$ (323,285)	$ (2,443,891)	$ (1,002,130)
Basic and diluted net loss per average share available to common shareholders	$ (0.10)	$ (0.01)	$ (0.03)	$ (0.02)
Weighted average common shares outstanding - basic and diluted	142,419,337	40,516,351	75,919,713	40,620,055

Statements of Stockholders' Equ

Statements of Stockholders' Equity (Deficit) (Unaudited) - USD ($)	Total	Preferred Stock	Common Stock	Additional Paid-In Capital	Retained Earnings (Accumulated Deficit)	Translation Adjustment
Balance, shares at Dec. 31, 2019			40,516,351
Balance, amount at Dec. 31, 2019	$ (156,682)	$ 0	$ 405,164	$ 4,207,786	$ (4,769,632)	$ 0
Issuance of stock for compensation, amount	0	0	$ 0	0	0	0
Issuance of stock for cash, shares			400,000
Issuance of stock for cash, amount	100,000		$ 4,000	96,000	0	0
Warrant expense	10,218	0	0	10,218	0	0
Option expense	272,604	0	0	272,064	0	0
Net loss	(1,002,130)	0	0	0	(1,002,130)	0
Translation adjustment	0	0	$ 0	$ 0	0	0
Balance, shares at Sep. 30, 2020			40,916,351	1
Balance, amount at Sep. 30, 2020	(776,530)	0	$ 409,164	$ 4,586,068	(5,771,762)	0
Balance, shares at Jun. 30, 2020			40,516,351
Balance, amount at Jun. 30, 2020	(744,117)	0	$ 405,164	4,299,196	(5,448,477)	0
Issuance of stock for compensation, amount	0	0	$ 0	0	0	0
Issuance of stock for cash, shares			400,000
Issuance of stock for cash, amount	100,000	0	$ 4,000	96,000	0	0
Warrant expense	9,496	0	0	9,496	0	0
Option expense	181,376	0	0	181,376	0	0
Net loss	(323,285)	0	0	0	(323,285)	0
Translation adjustment	0	0	$ 0	$ 0	0	0
Balance, shares at Sep. 30, 2020			40,916,351	1
Balance, amount at Sep. 30, 2020	(776,530)	0	$ 409,164	$ 4,586,068	(5,771,762)	0
Balance, shares at Dec. 31, 2020			42,066,172
Balance, amount at Dec. 31, 2020	(838,278)	0	$ 420,661	4,961,315	(6,220,254)	0
Issuance of stock for compensation, amount	139,405	0	2,056	137,349	0	0
Warrant expense	10,252	0	0	10,252	0	0
Option expense	197,281	0	0	197,281	0	0
Net loss	(2,443,891)	0	0	0	(2,443,891)	0
Translation adjustment	6,838	0	$ 0	0	0	6,838
Issuance of stock for compensation, shares			205,643
Issuance of stock for Patent assets, shares			100,000,000
Issuance of stock for Patent assets, amount	20,000,000	0	$ 1,000,000	19,000,000	0	0
Issuance of stock for Option, shares			170,400
Issuance of stock for Option, amount	64,752	0	$ 1,704	63,048	0	0
Balance, shares at Sep. 30, 2021			142,442,215
Balance, amount at Sep. 30, 2021	17,136,360	0	$ 1,424,422	24,369,245	(8,664,145)	6,838
Balance, shares at Jun. 30, 2021			142,271,815
Balance, amount at Jun. 30, 2021	18,205,557	0	$ 1,422,718	24,286,875	(7,504,035)	0
Issuance of stock for compensation, amount	0	0	0	0	0	0
Warrant expense	3,417	0	0	3,417	0	0
Option expense	15,905	0	0	15,905	0	0
Net loss	(1,160,110)	0	0	0	(1,160,110)	0
Translation adjustment	6,838	0	0	0	0	6,838
Issuance of stock for Patent assets, amount	0	0	$ 0	0	0	0
Issuance of stock for Option, shares			170,400
Issuance of stock for Option, amount	64,752	0	$ 1,704	63,048	0	0
Balance, shares at Sep. 30, 2021			142,442,215
Balance, amount at Sep. 30, 2021	$ 17,136,360	$ 0	$ 1,424,422	$ 24,369,245	$ (8,664,145)	$ 6,838

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Condensed Statements of Cash Flows (Unaudited)
Net cash used in operating activities	$ (569,150)	$ (244,967)
Cash flows from investing activities
Investment in patents	0	(1,891)
Purchase of fixed assets	(41,581)	0
Proceeds from disposal of property, plant and equipment	36	0
Increase in refundable deposits	(1,795)	0
Net cash flows used in investing activities	(43,340)	(1,891)
Cash flows from financing activities
Advances from shareholder	0	35,000
Proceeds from private placement offering, net	0	50,000
Proceeds from exercise of share options	64,752	0
Payments of lease liabilities	(6,815)	0
Proceeds from convertible note payable -related party	1,232,192	0
Net cash used in financing activities	1,290,129	85,000
Effect of changes in exchange rates	7,046	0
Net change in cash and cash equivalents	677,639	(325,272)
Cash and cash equivalents at beginning of period	22,245	409,039
Cash and cash equivalents at end of period	706,931	83,767
Supplemental Cash Flow Information
Interest paid	9,363	4,895
Non-Cash Transactions
Stock issued for acquisition of patents	20,000,000	0
Stock issued for compensation, warrant and option expense	346,938	0
Stock issued for advances from investors	0	100,000
ROU Leased assets	62,723	0
Lease obligation	$ 62,723	$ 0

Organization and Business

Organization and Business	9 Months Ended
	Sep. 30, 2021
Organization and Business
1. Organization and Business	1. Organization and Business.

General

General	9 Months Ended
	Sep. 30, 2021
General
2. General	2. The Company is engaged in developing biologics for the treatment of human and animal diseases. Our current focus is research aimed at the treatment of human disease indications, including Sjögren’s syndrome, thrombocytopenia, and other indications using interferon (IFN) alpha that is administered in a proprietary low-dose non-injectable form. In addition to our core technology, we are working to expand our current focus into a diversified healthcare business portfolio in order to generate new revenue streams. We own patents with claims that encompass method of use or treatment, and/or composition of matter and manufacturing as well as design utility and/or invention. Of twelve issued patents, four patents are related to the low-dose oral delivery of interferon, three patents are associated with treatment of metabolic disorders, and five patents related to the development and manufacturing of point-of-care testing rapid test kit products that include diagnostics for COVID-19 (SARS CoV2 Antigen Rapid Test), pneumonia, vaginal infection and helicobacter pylori (H. pylori) bacterial infection. We primarily operate three business units: the Pharmaceutical, Medical Devices and Preventive Medicine Divisions. Our Pharmaceutical Division is focused on low-dose, orally administered lozenges containing the natural immune system activator interferon-alpha as a treatment for a variety of disease indications. We own a proprietary library of over thirty years of scientific and clinical data on the human and animal applications of low-dose oral interferon. Our Medical Device Division is dedicated to developing a novel insulin pump and further development of point-of-care rapid test kits for the detection and diagnosis of human infections. Our Preventative Medicine Division, which has been restructured from our former Consumer Product Division, is focused on SRNA-based therapeutics.

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2021
Organization and Business
3. Basis of Presentation	3. Basis of presentation.

Financial Condition

Financial Condition	9 Months Ended
	Sep. 30, 2021
Financial Condition
4. Financial Condition	4. Financial Condition. While the Company has recurring losses and generated negative cash flows from operations, the Company has taken initiatives to improve its management capacity and business operations. Such initiatives include the procurement of innovative diagnostic technologies and securing a strategic investor, as a result of the closing of a securities purchase agreement with Ainos, Inc. a Cayman Island corporation (“Ainos KY”) on April 15, 2021 (the “Ainos KY Transaction”). Details of the Ainos Transaction were disclosed in the Company’s Form 10-Q filing for the second quarter of 2021. After closing the Ainos KY Transaction, the Company engaged additional management resources including Mr. Chun-Hsien Tsai as Chairman and CEO, Ms. Hui-Lan (Celia) Wu as CFO and Mr. Chih-Heng (Jack Lu) as Head of Corporate Development, retained key management and legal staff, and implemented new business initiatives. On June 14, 2021, the Company became the master sales and marketing agent for the Ainos SARS-Cov-2 Antigen Rapid Test Kit (“Ainos Covid-19 Test Kit”) which has generated $568,164 in sales thus far in 2021. As of September 30, 2021, the Company’s financial improvement includes the following: Total stockholder’s equity increased to $17,136,360 as of September 30, 2021 compared to a negative total shareholder’s equity of $838,278 as of December 2021. Cash and cash equivalents increased to $706,931 as of September 30, 2021 compared to $22,245 at December 31, 2020. This is attributable to increased revenues from sales of our Ainos Covid-19 Test Kit in Taiwan and operational loans made to the Company by Ainos KY. The Company’s revenues increased to $568,164 during this reporting period compared to $15,876 as of third quarter of 2020. The Company anticipates business revenues and potential additional financial support from Ainos KY and other entities to fund the Company’s operations over the next twelve months. The Company may raise additional capital through the issuance of equity securities, debt financings or other sources in order to further implement its business plan. However, if such financing is not available when needed and at adequate levels, the Company will need to reevaluate its operating plan. 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. Any issuances of additional equity securities by the Company may result in dilution in the equity interests of its current stockholders. Obtaining commercial loans will increase the Company's liabilities and future cash commitments to the extent such loans would be available. While management believes in its strategic plans, management cannot be certain that projected financial results can be achieved.

Common Stock

Common Stock	9 Months Ended
	Sep. 30, 2021
Common Stock
5. Common Stock	5. Common Stock.

Convertible Notes Payable and O

Convertible Notes Payable and Other Related Party Notes Payable	9 Months Ended
	Sep. 30, 2021
Convertible Notes Payable and Other Related Party Notes Payable
6. Convertible Notes Payable and Other Related Party Notes Payable	6. Convertible Notes Payable and Other Related Party Notes Payable. Annual Interest Rate Unpaid Principal Balance No# Effective Date Due Date From Effective Following Maturity Payee Issuing Purpose Sep 30, 2021 Dec 31, 2020 Payee: Dr. Stephen T. Chen, resigned as Chairman of the Board, President, and Board director April 15, 2021 #1.16 2016/01/30 Payable on demand 0.75% NA Stephen Chen working capital 114,026 114,026 #2.16 2016/03/18 Payable on demand 0.65% NA Stephen Chen working capital 262,500 262,500 #3.19 2019/09/01 2020/09/01 1.85% 10% Stephen Chen salary 39,392 39,620 #4.19 2019/12/01 2020/12/31 1.61% 10% Stephen Chen working capital 14,879 14,879 #6.20 2020/01/01 2021/01/01 1.85% 10% Stephen Chen salary 216,600 216,600 #7.20 2020/01/01 2021/01/02 1.60% 10% Stephen Chen working capital 23,366 23,366 #9.20 2020/01/01 2021/04/14 0.13% 10% Stephen Chen working capital 279,405 134,010 #10.21 2021/01/01 2021/04/01 1.85% 10% Stephen Chen salary 59,025 #11.21 2021/04/01 2021/05/01 1.85% 10% Stephen Chen salary 10,000 1,019,193 805,001 Payee: Ainos KY, an affiliated company #12.21 2021/04/27 2021/10/27 1.85% NA Ainos KY working capital 15,000 #13.21 2021/05/05 2021/11/05 1.85% NA Ainos KY working capital 20,000 #14.21 2021/05/25 2021/11/25 1.85% NA Ainos KY working capital 30,000 #15.21 2021/05/28 2021/11/28 1.85% NA Ainos KY working capital 35,000 #16.21 2021/06/09 2021/12/09 1.85% NA Ainos KY working capital 300,000 #17.21 2021/06/21 2021/12/21 1.85% NA Ainos KY working capital 107,000 #18.21 2021/07/02 2022/01/02 1.85% NA Ainos KY working capital 54,000 #19.21 2021/09/01 2021/03/01 1.85% NA Ainos KY working capital 120,000 #20.21 2021/09/28 2021/03/28 1.85% NA Ainos KY working capital 300,000 981,000 0 Convertible and other notes payable- related parties 2,000,193 805,001 Payee: i2China Management Group LLC, a management consultant #5.19 2019/09/01 2020/09/01 1.85% 10% i2China consulting fee 16,000 16,000 #8a.20 2020/01/01 2021/01/01 1.85% 10% i2China consulting fee 48,000 48,000 #8b.20 Retroactive from 2020/01/01 2021/01/01 1.85% 10% i2China consulting fee 84,000 84,000 #11.21 2021/01/01 2021/04/01 1.85% 10% i2China consulting fee 37,000 Convertible and other notes payable 185,000 148,000 Total Convertible and other notes payable 2,185,193 953,001 All of the aforementioned convertible and non-convertible promissory notes are unsecured and due on demand. All shares issued upon conversion are restricted and subject to Rule 144 promulgated under the U.S. Securities Act of 1933 (the “Securities Act”); subject to any exemptions or exclusions under the Act. The Company may prepay the notes in whole or in part at any time without penalty. The promissory notes due to Dr. Stephen T. Chen and Ainos KY are related party notes. i2China Management Group, LLC (“i2China”) and Dr. Stephen T. Chen (together the “Payees”), have both agreed to waive any and all rights pertaining to the conditional term “Annual Interest Rate on Matured, Unpaid Amounts: 10% per annum, compounded annually of Convertible Notes” in regards to interest charged on any unpaid amounts following maturity for all of their respective notes. The Company and the Payees agree that the originally agreed annual interest rate will continue to be valid for any unpaid amounts after maturity. The amended terms of the above convertible notes were made during 2021 Q3 on September 1, 2021. The waived interest amount was $45,875. Unpaid Interest Rate Interest amount Interest No# Date Payee Description Principal Amount Original after Maturity Original rate 10% Total after Maturity Interest Waived #1.16 1/30/2016 Stephen working capital 114,026 0.75% NA 5,624 0 5,624 5,624 0 #2.16 3/18/2016 Stephen working capital 262,500 0.65% NA 9,447 0 9,447 9,447 0 #3.19 9/1/2019(DS) Stephen salary 39,392 1.85% 10% 714 4,340 5,054 1,518 3,536 #4.19 12/1/2019(DE) Stephen working capital 14,879 1.61% 10% 257 1,132 1,389 439 950 #6.20 1/1/2020(DS) Stephen salary 216,600 1.85% 10% 2,179 16,363 18,543 5,206 13,336 #7.20 1/1/2020(DE) Stephen working capital 23,366 1.60% 10% 72 1,753 1,825 352 1,473 #9.20 11/2020 (Open) Stephen working capital 279,405 0.13% 10% 81 12,864 12,945 248 12,697 #10.21 1/1/2021(DS) Stephen salary 59,025 1.85% 10% 178 2,968 3,146 725 2,421 #11.21 4/1/2021(DS) Stephen salary 10,000 1.85% 10% 15 420 435 93 342 1,019,193 1.85% 10% 18,566 39,841 58,407 23,653 34,754 #5.19 9/1/2019 i2China consulting fee 16,000 1.85% 10% 253 1,759 2,012 579 1,433 #8a.20 1/1/2020 i2China consulting fee 48,000 1.85% 10% 483 3,626 4,109 1,154 2,955 #8b.20 1/1/2020 i2China retroactive increase 84,000 1.85% 10% 1,554 6,399 7,953 2,738 5,215 #11.21 1/1/2021(DS) i2China consulting fee 37,000 1.85% 10% 107 1,860 1,967 450 1,517 185,000 2,397 13,645 16,041 4,920 11,121 TOTAL ACCRUED 1,204,193 20,963 53,485 74,448 28,573 45,875 The accrued interest amount was $31,983 and $18,691 as of September 30, 2021 and December 31, 2020, respectively.

Other Related Party Transaction

Other Related Party Transactions	9 Months Ended
	Sep. 30, 2021
Other Related Party Transactions
7. Other Related Party Transactions	7. Related Party Transactions The following is a list of related parties who have undertaken transactions with the Company during this reporting period: Name of the related party Relationship Description Taiwan Carbon Nano Technology Corporation (TCNT) Affiliated company Ainos, Inc. (Cayman Island) ( Ainos KY) Affiliated company ASE Technology Holding Affiliated company Parent company of ASE Test Inc. which is Ainos KY's board member and with more than 10% of the voting rights i2 China Management Group LLC (i2 China) Affiliated company Sole member owner is Lawrence Lin, EVP Operations effective August 1, 2021 Dr. Stephen T. Chen Principal owner Shareholder with more than 5% of Company voting rights, Ainos' former Chairman, President, CEO and CFO Chun-Hsien Tsai Board of Director, Executive Officer and Immediate Family Chairman of BOD, President, CEO and spouse of Ting-Chuan Lee Ting-Chuan Lee Board of Director and Immediate Family Spouse of Chun Hsien Tsai Hui-Lan Wu Executive Officer CFO Lawrence Lin Key management EVP Operations effective August 1, 2021 Chih-Heng Lu Key management Director of Corporate Development and Corporate Secretary John Junyong Lee Key management Chief Legal Counsel and Corporate Secretary rewarded by fixed monthly fee and performance bonus effective September 1,2021 Chief Legal Counsel and Corporate Secretary Chien-Hsuan Huang Immediate Family of Director Spouse of Wen-Han Chang Bernard Cohen Former CFO Resigned on April 5, 2021 Below is a summary of the significant related party transactions entered into by the Company over the first nine months of 2021: Financial support Convertible Note Related Interest Expense Nine months ended September 30, 2021 As of September 30, 2021 Nine months ended September 30, 2021 As of September 30, 2021 Ainos KY 981,000 981,000 3,410 3,410 i2China 37,000 185,000 2,087 4,920 Dr. Stephen T. Chen 15,272 1,019,193 5,936 23,653 1,033,272 2,185,193 11,433 31,983 i2China became an affiliate of the Company as of August 1, 2021. From August 1, 2021 to September 30, 2021, interest payable to i2China amounted to $496. Other transactions - Inventory purchases from TCNT totaling $173,657. - Product co-development agreement with TCNT resulting in $117,386 in costs and $122,680 in accounts payable. - Sale of products to ASE Technology Holding totaling $185,376. - Three-year office space was leased from a related party resulting in ROU Asset totaling $55,728 and Lease Obligations totaling $55,908. The Company makes monthly lease payments of $1,785. - Product development consulting fee of $7,215 payable to Huang Chien-Hsuan, of which $6,671 remains outstanding and payable. - Product development consulting fee of $7,215 payable to Huang Chien-Hsuan, of which $6,671 remains outstanding and payable. - On August 1, 2021, the Company entered into a five-year product development agreement with TCNT. Pursuant to the agreement both parties will endeavor to develop pharmaceutical, medical and preventive medicine related products. Under the agreement the Company is designated as the exclusive sales agent of the resulting products. The agreement also provides for the Company to bear the expenses of product development and for TCNT to contribute personnel and facilities. Both parties shall each jointly own an equal proportion of the intellectual property rights arising from the product co-development cooperation. As a result, the Company incurred $117,386 in product co-development expenses and $122,680 in accounts payable during the reporting period. - The Company issued common stock as partial compensation to Dr. Stephen T. Chen and Bernard Cohen as follows: Shares Par Value Paid in Excess of Par Total amount Price per share 06/30/2021 Bernard Cohen 5,876 58.76 3,107.89 3,166.65 0.5389 06/30/2021 Dr. Stephen T. Chen 53,419 534.19 32,799.14 33,333.33 0.6240 59,295 593 35,907 36,500

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2021
Subsequent Events
8. Subsequent Events	8. Subsequent Events. The Company engaged PricewaterhouseCoopers, Taiwan (“PWC”) as independent accountants of Ainos Inc. Taiwan Branch under an engagement agreement dated October 4, 2021 (“Audit Engagement”). The Audit Engagement covers audit services for the years ending December 31, 2021 and 2022 and PWC will issue interfirm audit reports for group reporting purposes to the Company’s group audit firm, PWR CPA, LLP. Additionally, the Company engaged PWC under separate agreements dated October 4, 2021 for PWC to render advisory services in connection to the Company’s internal controls over financial reporting as required under section 404 of the Sarbanes-Oxley Act (“SOX Engagement”) and in respect to compliance with Taiwan corporate income tax requirements for the tax years ending December 31, 2021 and 2022 (“Taiwan Tax Engagement”). On October 6, 2021, the Company board of directors approved and adopted the following resolutions: · Effective August 30, 2021, the Board appointed Hsiu-Chen Chiu and Wen-Han Chang to serve on the Compensation Committee; · Effective August 30, 2021, the Board appointed Yao-Chung Chiang, Wen-Han Chang and Hsiu-Chen Chiu to serve on the Audit Committee; · Board approval of the Company’s 2021 Employee Stock Purchase Plan, 2021 Stock Incentive Plan, and 2021 Director Compensation Policy and, if required, shall submit the same for formal adoption by a vote of the Company’s shareholders · Board approval of the Company’s Related Transaction Policy, Hedging Policy, and the Diversity Policy of the Board; and · Board approval of the Company’s engagement agreements dated October 4, 2021 with PricewaterhouseCoopers, Taiwan (“PWC”) On November 1, 2021, the Company engaged its former President and CEO, Dr. Stephen T. Chen, as a consultant to assist with its pharmaceutical division. The Company agrees to pay Dr. Chen 50,000 New Taiwan Dollars (NTD) per month for a period of one year for his services. With over 30 years of pharmaceutical professional experience, we expect Dr. Chen to provide technical assistance on our pharmaceutical development initiatives, analyze results from second phase interferon studies for Thrombocytopenia, and contribute to the protocol design of the third phase of interferon development focused on Sjögren’s syndrome. Lastly, we expect that Dr. Chen will provide assistance for our mass commercial production of low-dose interferon products.

Convertible Notes Payable and_2

Convertible Notes Payable and Other Related Party Notes Payable (Tables)	9 Months Ended
	Sep. 30, 2021
Convertible Notes Payable and Other Related Party Notes Payable (Tables)
Convertible Debt	Annual Interest Rate Unpaid Principal Balance No# Effective Date Due Date From Effective Following Maturity Payee Issuing Purpose Sep 30, 2021 Dec 31, 2020 Payee: Dr. Stephen T. Chen, resigned as Chairman of the Board, President, and Board director April 15, 2021 #1.16 2016/01/30 Payable on demand 0.75% NA Stephen Chen working capital 114,026 114,026 #2.16 2016/03/18 Payable on demand 0.65% NA Stephen Chen working capital 262,500 262,500 #3.19 2019/09/01 2020/09/01 1.85% 10% Stephen Chen salary 39,392 39,620 #4.19 2019/12/01 2020/12/31 1.61% 10% Stephen Chen working capital 14,879 14,879 #6.20 2020/01/01 2021/01/01 1.85% 10% Stephen Chen salary 216,600 216,600 #7.20 2020/01/01 2021/01/02 1.60% 10% Stephen Chen working capital 23,366 23,366 #9.20 2020/01/01 2021/04/14 0.13% 10% Stephen Chen working capital 279,405 134,010 #10.21 2021/01/01 2021/04/01 1.85% 10% Stephen Chen salary 59,025 #11.21 2021/04/01 2021/05/01 1.85% 10% Stephen Chen salary 10,000 1,019,193 805,001 Payee: Ainos KY, an affiliated company #12.21 2021/04/27 2021/10/27 1.85% NA Ainos KY working capital 15,000 #13.21 2021/05/05 2021/11/05 1.85% NA Ainos KY working capital 20,000 #14.21 2021/05/25 2021/11/25 1.85% NA Ainos KY working capital 30,000 #15.21 2021/05/28 2021/11/28 1.85% NA Ainos KY working capital 35,000 #16.21 2021/06/09 2021/12/09 1.85% NA Ainos KY working capital 300,000 #17.21 2021/06/21 2021/12/21 1.85% NA Ainos KY working capital 107,000 #18.21 2021/07/02 2022/01/02 1.85% NA Ainos KY working capital 54,000 #19.21 2021/09/01 2021/03/01 1.85% NA Ainos KY working capital 120,000 #20.21 2021/09/28 2021/03/28 1.85% NA Ainos KY working capital 300,000 981,000 0 Convertible and other notes payable- related parties 2,000,193 805,001 Payee: i2China Management Group LLC, a management consultant #5.19 2019/09/01 2020/09/01 1.85% 10% i2China consulting fee 16,000 16,000 #8a.20 2020/01/01 2021/01/01 1.85% 10% i2China consulting fee 48,000 48,000 #8b.20 Retroactive from 2020/01/01 2021/01/01 1.85% 10% i2China consulting fee 84,000 84,000 #11.21 2021/01/01 2021/04/01 1.85% 10% i2China consulting fee 37,000 Convertible and other notes payable 185,000 148,000 Total Convertible and other notes payable 2,185,193 953,001 Unpaid Interest Rate Interest amount Interest No# Date Payee Description Principal Amount Original after Maturity Original rate 10% Total after Maturity Interest Waived #1.16 1/30/2016 Stephen working capital 114,026 0.75% NA 5,624 0 5,624 5,624 0 #2.16 3/18/2016 Stephen working capital 262,500 0.65% NA 9,447 0 9,447 9,447 0 #3.19 9/1/2019(DS) Stephen salary 39,392 1.85% 10% 714 4,340 5,054 1,518 3,536 #4.19 12/1/2019(DE) Stephen working capital 14,879 1.61% 10% 257 1,132 1,389 439 950 #6.20 1/1/2020(DS) Stephen salary 216,600 1.85% 10% 2,179 16,363 18,543 5,206 13,336 #7.20 1/1/2020(DE) Stephen working capital 23,366 1.60% 10% 72 1,753 1,825 352 1,473 #9.20 11/2020 (Open) Stephen working capital 279,405 0.13% 10% 81 12,864 12,945 248 12,697 #10.21 1/1/2021(DS) Stephen salary 59,025 1.85% 10% 178 2,968 3,146 725 2,421 #11.21 4/1/2021(DS) Stephen salary 10,000 1.85% 10% 15 420 435 93 342 1,019,193 1.85% 10% 18,566 39,841 58,407 23,653 34,754 #5.19 9/1/2019 i2China consulting fee 16,000 1.85% 10% 253 1,759 2,012 579 1,433 #8a.20 1/1/2020 i2China consulting fee 48,000 1.85% 10% 483 3,626 4,109 1,154 2,955 #8b.20 1/1/2020 i2China retroactive increase 84,000 1.85% 10% 1,554 6,399 7,953 2,738 5,215 #11.21 1/1/2021(DS) i2China consulting fee 37,000 1.85% 10% 107 1,860 1,967 450 1,517 185,000 2,397 13,645 16,041 4,920 11,121 TOTAL ACCRUED 1,204,193 20,963 53,485 74,448 28,573 45,875

Related Party Transactions (Tab

Related Party Transactions (Tables)	9 Months Ended
	Sep. 30, 2021
Other Related Party Transactions
Schedule of list of related parties	Name of the related party Relationship Description Taiwan Carbon Nano Technology Corporation (TCNT) Affiliated company Ainos, Inc. (Cayman Island) ( Ainos KY) Affiliated company ASE Technology Holding Affiliated company Parent company of ASE Test Inc. which is Ainos KY's board member and with more than 10% of the voting rights i2 China Management Group LLC (i2 China) Affiliated company Sole member owner is Lawrence Lin, EVP Operations effective August 1, 2021 Dr. Stephen T. Chen Principal owner Shareholder with more than 5% of Company voting rights, Ainos' former Chairman, President, CEO and CFO Chun-Hsien Tsai Board of Director, Executive Officer and Immediate Family Chairman of BOD, President, CEO and spouse of Ting-Chuan Lee Ting-Chuan Lee Board of Director and Immediate Family Spouse of Chun Hsien Tsai Hui-Lan Wu Executive Officer CFO Lawrence Lin Key management EVP Operations effective August 1, 2021 Chih-Heng Lu Key management Director of Corporate Development and Corporate Secretary John Junyong Lee Key management Chief Legal Counsel and Corporate Secretary rewarded by fixed monthly fee and performance bonus effective September 1,2021 Chief Legal Counsel and Corporate Secretary Chien-Hsuan Huang Immediate Family of Director Spouse of Wen-Han Chang Bernard Cohen Former CFO Resigned on April 5, 2021
schedule of financial support list	Convertible Note Related Interest Expense Nine months ended September 30, 2021 As of September 30, 2021 Nine months ended September 30, 2021 As of September 30, 2021 Ainos KY 981,000 981,000 3,410 3,410 i2China 37,000 185,000 2,087 4,920 Dr. Stephen T. Chen 15,272 1,019,193 5,936 23,653 1,033,272 2,185,193 11,433 31,983 Shares Par Value Paid in Excess of Par Total amount Price per share 06/30/2021 Bernard Cohen 5,876 58.76 3,107.89 3,166.65 0.5389 06/30/2021 Dr. Stephen T. Chen 53,419 534.19 32,799.14 33,333.33 0.6240 59,295 593 35,907 36,500

Financial Condition (Details Na

Financial Condition (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020	Dec. 31, 2019
Total stockholders' equity (deficit)	$ 17,136,360	$ (776,530)	$ 17,136,360	$ (776,530)	$ 18,205,557	$ (838,278)	$ (744,117)	$ (156,682)
Revenues	363,052	$ 192	568,164	15,876
Securities Purchase Agreements [Member]
Cash and cash equivalents	706,931		706,931			22,245
Total stockholders' equity (deficit)	$ 17,136,360		17,136,360			$ 838,278
Revenues			$ 568,164	$ 15,786

Common Stock (Details Narrative

Common Stock (Details Narrative)	Sep. 30, 2021USD ($)
Stockholders' equity (deficit)
Shares increase value	$ 1,003,760

Convertible Notes Payable and_3

Convertible Notes Payable and Oayable (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Dr. Stephen T. Chen [Member]
Due Date	2021/04/01
Annual interest rate, From effective	1.85%
Effective Date	2021/01/01
Unpaid principal balance	$ 1,019,193	$ 805,001
Annual interest rate, Following maturity	10.00%
Dr. Stephen T. Chen [Member] | 2.16 [Member]
Due Date	Payable on demand
Annual interest rate, From effective	0.65%
Effective Date	2016/03/18
Unpaid principal balance	$ 262,500	262,500
Dr. Stephen T. Chen [Member] | 1.16 [Member]
Due Date	Payable on demand
Annual interest rate, From effective	0.75%
Effective Date	2016/01/30
Unpaid principal balance	$ 114,026	114,026
Dr. Stephen T. Chen [Member] | 3.19 [Member]
Due Date	2020/09/01
Annual interest rate, From effective	1.85%
Effective Date	2019/09/01
Unpaid principal balance	$ 39,392	39,620
Annual interest rate, Following maturity	10.00%
Dr. Stephen T. Chen [Member] | 4.19 [Member]
Due Date	2020/12/31
Annual interest rate, From effective	1.61%
Effective Date	2019/12/01
Unpaid principal balance	$ 14,879	14,879
Annual interest rate, Following maturity	10.00%
Dr. Stephen T. Chen [Member] | 6.20 [Member]
Due Date	2021/01/
Annual interest rate, From effective	1.85%
Effective Date	2020/01/01
Unpaid principal balance	$ 216,600	216,600
Annual interest rate, Following maturity	10.00%
Dr. Stephen T. Chen [Member] | 7.20 [Member]
Due Date	2021/01/02
Annual interest rate, From effective	1.60%
Effective Date	2020/01/01
Unpaid principal balance	$ 23,366	23,366
Annual interest rate, Following maturity	10.00%
Dr. Stephen T. Chen [Member] | 9.20 [Member]
Due Date	2021/04/14
Annual interest rate, From effective	0.13%
Effective Date	2020/01/01
Unpaid principal balance	$ 279,405	134,010
Annual interest rate, Following maturity	10.00%
Dr. Stephen T. Chen [Member] | 11.21 [Member]
Due Date	2021/05/01
Annual interest rate, From effective	1.85%
Effective Date	2021/04/01
Unpaid principal balance	$ 10,000
Annual interest rate, Following maturity	10.00%
Dr. Stephen T. Chen [Member] | 10.21 [Member]
Due Date	2021/04/01
Annual interest rate, From effective	1.85%
Effective Date	2021/01/01
Unpaid principal balance	$ 59,025
Annual interest rate, Following maturity	10.00%
Ainos KY [Member] | 12.21 [Member]
Due Date	2021/10/27
Annual interest rate, From effective	1.85%
Effective Date	2021/04/27
Unpaid principal balance	$ 15,000
Ainos KY [Member] | 13.21 [Member]
Due Date	2021/11/05
Annual interest rate, From effective	1.85%
Effective Date	2021/05/05
Unpaid principal balance	$ 20,000
Ainos KY [Member] | Total [Member]
Unpaid principal balance	981,000
Convertible and other notes payable- related parties	$ 2,000,193	805,001
Ainos KY [Member] | 14.21 [Member]
Due Date	2021/11/25
Annual interest rate, From effective	1.85%
Effective Date	2021/05/25
Unpaid principal balance	$ 30,000
Ainos KY [Member] | 15.21 [Member]
Due Date	2021/11/28
Annual interest rate, From effective	1.85%
Effective Date	2021/05/28
Unpaid principal balance	$ 35,000
Ainos KY [Member] | 16.21 [Member]
Due Date	2021/12/09
Annual interest rate, From effective	1.85%
Effective Date	2021/06/09
Unpaid principal balance	$ 300,000
Ainos KY [Member] | 17.21 [Member]
Due Date	2021/12/21
Annual interest rate, From effective	1.85%
Effective Date	2021/06/21
Unpaid principal balance	$ 107,000
Ainos KY [Member] | 18.21 [Member]
Due Date	2022/01/02
Annual interest rate, From effective	1.85%
Effective Date	2021/07/02
Unpaid principal balance	$ 54,000
Ainos KY [Member] | 19.21 [Member]
Due Date	2021/03/01
Annual interest rate, From effective	1.85%
Effective Date	2021/09/01
Unpaid principal balance	$ 120,000
Ainos KY [Member] | 20.21 [Member]
Due Date	2021/03/28
Annual interest rate, From effective	1.85%
Effective Date	2021/09/28
Unpaid principal balance	$ 300,000
i2China Management Group LLC [Member] | 11.21 [Member]
Due Date	2021/04/01
Annual interest rate, From effective	1.85%
Effective Date	2021/01/01
Unpaid principal balance	$ 37,000
Annual interest rate, Following maturity	10.00%
i2China Management Group LLC [Member] | 5.19 [Member]
Due Date	2020/09/01
Annual interest rate, From effective	1.85%
Effective Date	2019/09/01
Unpaid principal balance	$ 16,000	16,000
Annual interest rate, Following maturity	10.00%
i2China Management Group LLC [Member] | Total [Member]
Unpaid principal balance	$ 185,000	148,000
Convertible and other notes payable- related parties	$ 2,185,193	953,001
i2China Management Group LLC [Member] | 8b.20 [Member]
Due Date	2021/01/01
Annual interest rate, From effective	1.85%
Effective Date	Retroactive from 2020/01/01
Unpaid principal balance	$ 84,000	84,000
Annual interest rate, Following maturity	10.00%
i2China Management Group LLC [Member] | 8a.20 [Member]
Due Date	2021/01/01
Annual interest rate, From effective	1.85%
Effective Date	2020/01/01
Unpaid principal balance	$ 48,000	$ 48,000
Annual interest rate, Following maturity	10.00%

Convertible Notes Payable and_4

Convertible Notes Payable and Oayable (Details 1) - USD ($)	9 Months Ended		12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Interest amount total	$ 9,363	$ 4,895
Dr. Stephen T. Chen [Member]
Unpaid principal balance	$ 1,019,193		$ 805,001
Date	3/18/2016
Interest rate original	1.85%
Interest amount original rate	$ 18,566
Interest amount 10%	39,841
Interest amount total	58,407
Interest after Maturity	23,653
Interest waived	$ 34,754
Interest rate after maturity	10.00%
Dr. Stephen T. Chen [Member] | 2.16 [Member]
Unpaid principal balance	$ 262,500		262,500
Date	3/18/2016
Interest rate original	0.65%
Interest amount original rate	$ 9,447
Interest amount 10%	0
Interest amount total	9,447
Interest after Maturity	9,447
Interest waived	0
Dr. Stephen T. Chen [Member] | 1.16 [Member]
Unpaid principal balance	$ 114,026		114,026
Date	1/30/2016
Interest rate original	0.75%
Interest amount original rate	$ 5,624
Interest amount 10%	0
Interest amount total	5,624
Interest after Maturity	5,624
Interest waived	0
Dr. Stephen T. Chen [Member] | 3.19 [Member]
Unpaid principal balance	$ 39,392		39,620
Date	9/1/2019(DS
Interest rate original	1.85%
Interest amount original rate	$ 714
Interest amount 10%	4,340
Interest amount total	5,054
Interest after Maturity	1,518
Interest waived	$ 3,536
Interest rate after maturity	10.00%
Dr. Stephen T. Chen [Member] | 4.19 [Member]
Unpaid principal balance	$ 14,879		14,879
Date	12/1/2019(DE)
Interest rate original	1.61%
Interest amount original rate	$ 257
Interest amount 10%	1,132
Interest amount total	1,389
Interest after Maturity	439
Interest waived	$ 950
Interest rate after maturity	10.00%
Dr. Stephen T. Chen [Member] | 6.20 [Member]
Unpaid principal balance	$ 216,600		216,600
Date	1/1/2020(DS)
Interest rate original	1.85%
Interest amount original rate	$ 2,179
Interest amount 10%	16,363
Interest amount total	18,543
Interest after Maturity	5,206
Interest waived	$ 13,336
Interest rate after maturity	10.00%
Dr. Stephen T. Chen [Member] | 7.20 [Member]
Unpaid principal balance	$ 23,366		23,366
Date	1/1/2020(DE)
Interest rate original	1.60%
Interest amount original rate	$ 1,753
Interest amount 10%	72
Interest amount total	1,825
Interest after Maturity	352
Interest waived	$ 1,473
Interest rate after maturity	10.00%
Dr. Stephen T. Chen [Member] | 9.20 [Member]
Unpaid principal balance	$ 279,405		134,010
Date	11/2020 (Open)
Interest rate original	0.13%
Interest amount original rate	$ 81
Interest amount 10%	12,864
Interest amount total	12,945
Interest after Maturity	248
Interest waived	$ 12,697
Interest rate after maturity	10.00%
Dr. Stephen T. Chen [Member] | 11.21 [Member]
Unpaid principal balance	$ 10,000
Date	4/1/2021(DS)
Interest rate original	0.65%
Interest amount original rate	$ 15
Interest amount 10%	420
Interest amount total	435
Interest after Maturity	93
Interest waived	$ 342
Interest rate after maturity	10.00%
Dr. Stephen T. Chen [Member] | 10.21 [Member]
Unpaid principal balance	$ 59,025
Date	1/1/2021(DS)
Interest rate original	1.85%
Interest amount original rate	$ 178
Interest amount 10%	2,968
Interest amount total	3,146
Interest after Maturity	725
Interest waived	$ 2,421
Interest rate after maturity	10.00%
i2China Management Group LLC [Member] | 11.21 [Member]
Unpaid principal balance	$ 37,000
Date	3/18/2016
Interest rate original	1.85%
Interest amount original rate	$ 107
Interest amount 10%	1,860
Interest amount total	1,967
Interest after Maturity	450
Interest waived	$ 1,517
Interest rate after maturity	10.00%
i2China Management Group LLC [Member] | 5.19 [Member]
Unpaid principal balance	$ 16,000		16,000
Date	9/1/2019
Interest rate original	1.85%
Interest amount original rate	$ 253
Interest amount 10%	1,759
Interest amount total	2,012
Interest after Maturity	579
Interest waived	$ 1,433
Interest rate after maturity	10.00%
i2China Management Group LLC [Member] | Total [Member]
Unpaid principal balance	$ 185,000		148,000
Date	3/18/2016
Interest amount original rate	$ 2,397
Interest amount 10%	13,645
Interest amount total	16,041
Interest after Maturity	4,920
Interest waived	11,121
i2China Management Group LLC [Member] | 8b.20 [Member]
Unpaid principal balance	$ 84,000		84,000
Date	1/1/2020
Interest rate original	1.85%
Interest amount original rate	$ 1,554
Interest amount 10%	6,399
Interest amount total	7,953
Interest after Maturity	2,738
Interest waived	$ 5,215
Interest rate after maturity	10.00%
i2China Management Group LLC [Member] | 8a.20 [Member]
Unpaid principal balance	$ 48,000		$ 48,000
Date	1/1/2020
Interest rate original	1.85%
Interest amount original rate	$ 483
Interest amount 10%	3,626
Interest amount total	4,109
Interest after Maturity	1,154
Interest waived	$ 2,955
Interest rate after maturity	10.00%

Convertible Notes Payable and_5

Convertible Notes Payable and Oayable (Details Narrative) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Convertible Notes Payable and Other Related Party Notes Payable (Tables)
Accrued interest	$ 31,983	$ 18,691
Total Convertible and other notes payable	$ 2,185,953	$ 953,001

Related Party Transactions (Det

Related Party Transactions (Details)	9 Months Ended
	Sep. 30, 2021USD ($)
Related Party
Related party debt	$ 1,033,272
Related Interest Expense	11,433
Convertible Note	2,185,193
Related parties	31,983
I2China [member]
Related party debt	37,000
Related Interest Expense	2,087
Convertible Note	185,000
Related parties	4,920
Ainos KY [Member]
Related party debt	981,000
Related Interest Expense	3,410
Convertible Note	981,000
Related parties	3,410
Dr. Stephen T. Chen [Member]
Related party debt	15,272
Related Interest Expense	5,936
Convertible Note	1,019,193
Related parties	$ 23,653

Related Party Transactions (D_2

Related Party Transactions (Details 1)	Jun. 30, 2021USD ($)$ / shares
Shares	$ 59,295
Par Value	593
Paid in Excess of Par	35,907
Total amount	36,500
Bernard Cohen [Member]
Shares	53,419
Par Value	534
Paid in Excess of Par	32,799
Total amount	$ 33,333
Price per share | $ / shares	$ 0.6240
Dr. Stephen T. Chen [Member]
Shares	$ 5,876
Par Value	58
Paid in Excess of Par	3,107
Total amount	$ 3,166
Price per share | $ / shares	$ 0.5389

Related Party Transactions (D_3

Related Party Transactions (Details Narrative)	9 Months Ended
	Sep. 30, 2021USD ($)
Other Related Party Transactions
Interest payable	$ 496
Inventory	173,657
Accounts Payable	122,680
Right of usee asset	55,728
lease obligations	55,908
Lease payment monthly	1,785
Consulting fee	7,215
Consulting fee payable	6,671
Development expenses	117,386
Account payable	$ 122,680

Subsequent Events (Details Narr

Subsequent Events (Details Narrative)	Nov. 01, 2021
Subsequent Event [Member]
Description of Consultant	The Company agrees to pay Dr. Chen 50,000 New Taiwan Dollars (NTD) per month for a period of one year for his services. With over 30 years of pharmaceutical professional experience