AIHS

AIHS is a five-year melting ice cube dressed up with an AI narrative. Revenue has collapsed every single year — $11.7M (FY2022) → $8.08M → $4.32M → $1.90M → $1.55M (FY2026, -18.5% YoY) — while losses widened to -$5.27M net (-340.9% net margin). Gross profit is a mere $210K (down 63.2%) on a 13.6% gross margin, and operating income of -$2.89M means the core auto-leasing business for PRC ride-hailing drivers cannot cover its own cost structure. The company has already gutted itself to survive: it ceased its online ride-hailing platform in August 2024 and, per the MD&A, disposed of its entire Sichuan operation to a non-affiliated Hong Kong buyer for 'nil consideration' on December 31, 2025, even taking on $518,388 of liabilities to hand the business away. What remains is a single-province stub (Hunan Ruixi) generating $1.55M of shrinking revenue.

The balance sheet is worse than the income statement. Stockholders' equity is -$5.83M — the company is book-value insolvent — with total liabilities of $7.78M (up 49%) against just $5.26M of assets and a $50.4M accumulated deficit. All $7.78M of liabilities are current, versus $4.09M current assets, a working-capital hole. The $3.60M cash balance (up on financing/dilution, not operations) is being burned at -$1.60M operating cash flow per year, so runway is short and further raises are near-certain — shares already grew 31.4% YoY, diluting holders as the business shrinks.