Strong Growth Across Segments Boosted First Half 2026 Revenue to $6.9 million
Profit Turnaround Achieved as First Half Net Income Reached $2.5 million
OSAKA, Japan, Aug. 14, 2026 /PRNewswire/ -- FiEE, Inc. $(FIEE)$ ("FiEE," the "Company," "we," "our," or similar terms), a technology company integrating IoT, connectivity, and AI to redefine brand management solutions in the digital era, today announced its unaudited financial results for the three and six months ended June 30, 2026, marking a profitable half-year following its strategic transformation.
Operational and Financial Highlights for the Six Months Ended June 30, 2026
-- Revenue soared 15,298.1% year-on-year to approximately $6.9 million,
compared to $0.05 million in the first half of 2025. The increase in
revenue primarily reflects the Company's strategic transition from legacy
hardware operations to SaaS solutions, with a new business model focusing
on integrating AI and big data into content creation and brand management,
and the successful expansion into multiple new business lines, including
SaaS -- MCN digital services, software services, digital authentication
services, and other services, most of which experienced rapid growth
following their launch.
-- As of June 30, 2026, the Company onboarded over 900 customers for
its SaaS -- MCN digital services, representing total service fees
of $9.2 million, of which $7.9 million has been recognized as
revenue cumulatively. Specifically, in the first half of 2026,
FiEE added 138 new customers and recognized $2.6 million in
revenue from this business.
-- As of June 30, 2026, we secured contracts totaling $2.9 million
for our software services, $1.7 million of which was recognized as
revenue in the six months ended June 30, 2026. During the first
half of 2026, FiEE added 18 new software services customers,
bringing the total number of customers for these services to 31.
-- As of June 30, 2026, the digital authentication services business
line generated cumulative revenue of $2.9 million, including $2.6
million recognized in the six months ended June 30, 2026, serving
five corporate clients and 459 individual clients in total, with
related accounts receivable amounting to $2.0 million.
-- Gross profit was $5.4 million, compared to a gross profit of $438 in the
same period of 2025. Gross margin increased significantly to 77.3% in the
first half of 2026, up from 1.0% in the same period of 2025. The
improvement was primarily driven by our MCN digital services, which
leverage AI and data analytics to reduce reliance on manual labor,
resulting in higher margins compared to traditional service models.
-- Net income was approximately $2.5 million, achieving a turnaround from a
net loss of $1.0 million in same period of 2025.
-- The Company acquired Yinlian Culture and its VIE Maltose Culture in May
2026. Through this acquisition, the Company has further expanded into the
AI music business, combining music content creation and distribution with
AI capabilities to build an advanced AI music ecosystem.
Operational and Financial Highlights for the Three Months Ended June 30, 2026
-- Revenue was approximately $4.8 million, compared to $0.04 million for the
three months ended June 30, 2025.
-- Gross profit was approximately $3.9 million, compared to $1,063 for the
three months ended June 30, 2025.
-- Net income was approximately $2.1 million, turning around the net loss of
$0.6 million for the three months ended June 30, 2025.
Rafael Li, Chief Executive Officer and President of FiEE, commented, "We delivered strong profitability in the first half of 2026, a remarkable turnaround from last year's net loss. Our multi-line service lineup and acquisition integration drove notable gross margin expansion, validating our strategic transformation roadmap. We're also proud to have expanded into AI music and home entertainment, our two key growth engines going forward, after completing the first-stage closing of our Yinlian Culture acquisition in the first half of 2026."
Mr. Li further mentioned, "Backed by our music patent portfolio and operations team, we expect to accelerate AI music commercialization to capture streaming revenue and creator royalties. Our home entertainment system, launched in June 2026, is expected to deliver steady revenue contributions through year-end. We remain committed to optimizing our service mix, investing in client development and technical innovation, and building long-term stockholder value."
Financial Results for the Six Months Ended June 30, 2026
Revenue was approximately $6.9 million, compared to $0.05 million in the same period of 2025.
Six Months Ended June 30, %
------------------------------ --------------------------- ----------
2026 2025 change
--------------- --------- ----------
Revenues $ $ YoY
------------------------------ --------------- --------- ----------
Services
-- SaaS -- MCN digital
services 2,628,291 45,118 5,725.4 %
-- Software services 1,698,099 - N/A
-- Digital authentication
services 2,609,650 - N/A
-- Others 11,289 - N/A
--------------- --------- ----------
Total $ 6,947,329 $ 45,118 15,298.1 %
=============== ========= ==========
Gross profit was approximately $5.4 million, compared to $438 in the same period of 2025.
Gross margin was 77.3%, compared to 1.0% in the same period of 2025.
Operating expenses were approximately $2.3 million, representing an increase of 127.8% from $1.0 million in the same period of 2025.
-- Selling and marketing expenses were approximately $0.3 million, as
compared to $0.02 million in the same period of 2025, which was primarily
due to the Company's business transformation and stock-based compensation
expenses in connection with equity awards granted in May 2026 under our
2025 Equity Incentive Plan. The expense incurred in the first half of
2026 primarily reflected costs related to the expansion of our four core
business lines-- SaaS -- MCN digital services, software services, digital
authentication services, and other services -- as well as corporate
branding initiatives.
-- General and administrative expenses were approximately $1.9 million,
compared to $0.9 million in the same period of 2025. The increase was
primarily attributable to certain non-recurring professional service fees
incurred during the six months ended June 30, 2026, including legal and
advisory fees related to strategic initiatives and stock-based
compensation expenses in connection with equity awards granted in May
2026 under our 2025 Equity Incentive Plan.
-- Research and development expenses were approximately $80 thousand, as
compared to $50 thousand in the first half of 2025. The increase
primarily reflects ongoing enhancements and optimizations to our system
during the six months ended June 30, 2026.
Operating income was approximately $3.1 million, marking a complete turnaround from a loss of $1.0 million recorded in the first half of 2025.
Net income was approximately $2.5 million, a turnaround from the $1.0 million loss recorded in the first half of 2025.
Diluted earnings per common share was $0.17, as compared to a loss of $0.20 in the first half of 2025.
About FiEE, Inc.
FiEE, Inc. (NASDAQ:FIEE), formerly Minim, Inc., was founded in 1977. The Company has a historical track record of delivering comprehensive WiFi/Software as a Service platform in the market. After years of development, FiEE made the strategic decision to transition to a Software First Model in 2024 to expand its technology portfolio and revenue streams. In 2025, FiEE rebranded itself as a technology company leveraging its expertise in IoT, connectivity, and AI to explore new business prospects and extend its global footprint.
FiEE's services are structured into four key categories: Cloud-Managed Connectivity (WiFi) Platform, IoT Hardware Sales & Licensing, SaaS Solutions, and Professional To-C and To-B Services & Support. Notably, FiEE has introduced its innovative Software as a Service solutions, which integrates its AI and data analytics capabilities into content creation and brand management. This initiative has led to the nurturing of a robust pool of KOLs on major social media platforms worldwide, assisting them in developing, managing, and optimizing their digital presence across global platforms. FiEE's services include customized graphics and posts, short videos, and editorial calendars tailored to align with brand objectives.
Forward-Looking Statements
In addition to historical information, this press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements, written, oral, or otherwise made, represent the Company's expectation or belief concerning future events. Without limiting the foregoing, the words "believes," "expects," "may," "might," "will," "should," "seeks," "intends," "plans, " "strives," "goal," "estimates," "forecasts," "projects" or "anticipates" or the negative of these terms and similar expressions are intended to identify forward-looking statements. Forward-looking statements included in this press release may include, among others, statements relating to (i) the future financial position and results of operations of the Company, (ii) our ability to successfully implement our strategic business transformation, (iii) our commitment to investing in R&D and our ability to execute on our AI music and home entertainment initiatives, including our expectations regarding streaming revenue, creator royalties, and contributions from our home entertainment system, (iv) our long-term growth objectives and opportunities, (v) our commitment to investing in R&D to expand our service offerings, enhance customer experience, and deliver greater brand value across the digital content landscape, (vi) our plans to drive growth through innovation, build bridges between influencers, content creators, and global markets, and foster impactful partnerships to extend our reach across the digital landscape, and (vii) our plans to further accelerate business growth and create value for our stockholders.
By nature, forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or implied by the forward-looking statement. In addition, there may be other factors of which we are presently unaware or that we currently deem immaterial that could cause our actual results to be materially different from the results referenced in the forward-looking statements. All forward-looking statements contained in this press release are qualified in their entirety by this cautionary statement. Although we believe that our plans, intentions and expectations are reasonable, we may not achieve our plans, intentions or expectations. Forward-looking statements are based on current expectations and assumptions and currently available data and are neither predictions nor guarantees of future events or performance. You should not place undue reliance on forward-looking statements, which speak only as of the date hereof. See "Risk Factors" and "Special Note Regarding Forward-Looking Statements" included in the Company's filings with the U.S. Securities and Exchange Commission (the "SEC"), including the Company's most recent annual report on Form 10-K and other risk factors described from time to time in subsequent quarterly reports on Form 10-Q, or other subsequent filings with the SEC. The Company undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.
For investor and media inquiries, please contact:
Email: fiee@dlkadvisory.com
FIEE, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
June 30, December 31,
2026 2025
------------- -------------
ASSETS
Current assets
Cash $ 5,435,709 $ 3,084,461
Accounts receivable 5,134,459 2,110,715
Other receivables, net - 1,217,692
Prepaid expenses and other current
assets 373,949 199,309
------------ ------------
Total current assets 10,944,117 6,612,177
------------ ------------
Property, equipment and software,
net 860,482 366,439
Intangible assets 2,888,743 3,529,835
Operating lease right-of-use assets,
net - 31,004
Goodwill 24,990 -
Deferred tax assets 26,371 -
Other assets 341,814 231,680
------------ ------------
Total assets $ 15,086,517 $ 10,771,135
============ ============
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities
Accounts payable $ 821,899 $ 511,206
Contract liabilities 343,015 1,497,721
Accrued expenses and other current
liabilities 1,307,982 1,169,737
Income tax payable 1,382,613 972,743
Current maturities of operating
lease liabilities - 30,350
------------ ------------
Total current liabilities 3,855,509 4,181,757
------------ ------------
Total liabilities 3,855,509 4,181,757
------------ ------------
Commitments and Contingencies
Stockholders' equity
Preferred Stock 1,639,779 1,639,779
Common Stock 85,286 79,341
Additional paid-in capital 102,750,237 100,500,280
Accumulated deficit (93,158,867) (95,621,579)
Accumulated other comprehensive loss (40,429) (8,443)
------------ ------------
Total stockholders' equity
attributable to parent 11,276,006 6,589,378
------------ ------------
Non-controlling interests (44,998) -
------------ ------------
Total stockholders' equity 11,231,008 6,589,378
------------ ------------
Total liabilities and stockholders'
equity $ 15,086,517 $ 10,771,135
============ ============
FIEE, INC. AND SUBSIDIARIES Condensed Consolidated Statements of
Operations and Comprehensive Income (Loss) (Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
----------------------- -------------------------
2026 2025 2026 2025
----------- ---------- ----------- ------------
Revenues $ 4,825,340 $ 44,993 $ 6,947,329 $ 45,118
Cost of revenues 951,806 43,930 1,579,551 44,680
---------- --------- ---------- -----------
Gross profit 3,873,534 1,063 5,367,778 438
---------- --------- ---------- -----------
Operating
expenses:
Selling and
marketing 252,314 16,811 286,653 16,811
General and
administrative 938,162 603,744 1,935,035 944,240
Research and
development 39,226 17,419 75,813 47,419
---------- --------- ---------- -----------
Total operating
expenses 1,229,702 637,974 2,297,501 1,008,470
---------- --------- ---------- -----------
Operating income
(loss) 2,643,832 (636,911) 3,070,277 (1,008,032)
---------- --------- ---------- -----------
Other income
(expense):
Interest income
(expense), net 97 (2,638) 97 (5,427)
Foreign currency
exchange income
(loss) (6,443) (131) 28,552 (131)
Other, net 125 - 27,030 -
---------- --------- ---------- -----------
Total other income
(expense) (6,221) (2,769) 55,679 (5,558)
---------- --------- ---------- -----------
Income (loss)
before income
taxes 2,637,611 (639,680) 3,125,956 (1,013,590)
Income tax expense 526,897 - 663,726 -
---------- --------- ---------- -----------
Net income (loss) $ 2,110,714 $(639,680) $ 2,462,230 $(1,013,590)
---------- --------- ---------- -----------
Attributable to
non-controlling
interests (482) - (482) -
---------- --------- ---------- -----------
Attributable to
owners of parent $ 2,111,196 $(639,680) $ 2,462,712 $(1,013,590)
Allocation to
participating
preferred stock (583,312) - (695,696) -
---------- --------- ---------- -----------
Net income (loss)
attributable to
common
stockholders $ 1,527,884 $(639,680) $ 1,767,016 $(1,013,590)
========== ========= ========== ===========
Basic earnings
(loss) per common
share $ 0.18 $ (0.13) $ 0.22 $ (0.20)
Diluted earnings
(loss) per common
share $ 0.14 $ (0.13) $ 0.17 $ (0.20)
========== ========= ========== ===========
Weighted-average
number of common
shares
outstanding:
Basic 8,453,873 5,090,949 8,197,613 5,090,949
Diluted 10,786,717 5,090,949 10,518,841 5,090,949
========== ========= ========== ===========
Net income (loss) $ 2,110,714 $(639,680) $ 2,462,230 $(1,013,590)
Other
comprehensive
income (loss),
net of tax:
Foreign currency
translation
adjustment 4,316 1,962 (31,986) 1,962
---------- --------- ---------- -----------
Total
comprehensive
income (loss) $ 2,115,030 $(637,718) $ 2,430,244 $(1,011,628)
========== ========= ========== ===========
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SOURCE FiEE, Inc.