AIOS Tech Inc.

AIOS Tech Inc. has undergone a significant strategic transformation, divesting its legacy SME financing and supply chain businesses in mainland China in December 2025 to pivot towards high-growth technology sectors, specifically artificial intelligence (AI) powered services, data solutions, and IT services ¹. The company's primary operations are now based in Hong Kong, leveraging its position as an Asia-Pacific digital hub ². This strategic shift effectively positions AIOS Tech as a new entrant in the IT and AI services and technology-driven financing sectors, with a limited operating history in these specific fields ³.

The core business model of AIOS Tech Inc. involves generating revenue through two primary service segments: SME financing solutions and information technology services ⁴. For SME financing solutions, the company provides technology-driven customized comprehensive financing solutions to SMEs, generating one-time advisory fees ⁵. The information technology services segment offers end-to-end digital transformation support, including customized software development, system integration, cloud technology solutions, data assetization, enterprise-level data middle platform construction, and AI integration application services ⁶. Revenue in the IT services sector is generated through a hybrid model, combining one-time project-based fees for customized solutions and recurring SaaS subscription fees for standardized products like the SaaS Data Middle Platform and AI Customer Service Suites ⁷.

The information technology services segment, newly launched in December 2025 through the acquisition of YD Network Technology Company Limited, successfully generated 41% of the total continuing revenue for fiscal year 2025 ⁸. The SME financing solutions segment contributed 59% of the total continuing revenue for the same period ⁹. Prior to the divestiture, the legacy SME financing solutions generated US$18.3 million in revenue for fiscal year 2025, a 78% decrease from US$84.3 million in 2024 ¹⁰. Revenue from the legacy supply chain trading and financing was US$21.6 million in 2025, a 92% decrease from US$255.9 million in 2024 ¹¹.

For the fiscal year ended December 31, 2025, AIOS Tech Inc. reported total revenue of $5,067,754 ¹², with a cost of revenue of $1,421,368 ¹³, resulting in a gross profit of $3,646,386 ¹⁴. General and administrative expenses were $2,175,028 ¹⁵, leading to income from operations of $1,471,358 ¹⁶. The company incurred other expenses of $225,106,572 ¹⁷, primarily due to a disposal loss of $225,328,551 recognized from the divestiture of Nisun BVI and its subsidiaries ¹⁸. This resulted in a loss before income taxes from continuing operations of $223,635,214 ¹⁹ and income tax expenses of $67,367 ²⁰, leading to a net loss from continuing operations of $223,702,581 ²¹. Net profit from discontinued operations was $2,796,798 ²², and after accounting for net profit attributed to non-controlling interest from discontinued operations of $3,306 ²³, the net loss attributed to shareholders was $220,909,089 ²⁴. The diluted EPS for fiscal year 2025 was $47.65 ²⁵. As of December 31, 2025, cash and cash equivalents stood at $1,410,674 ²⁶. The company had no non-current liabilities ²⁷ and total liabilities of $411,332 ²⁸.

Comparing fiscal year 2025 to 2024, total revenue from continuing operations increased from $0 ²⁹ in 2024 to $5,067,754 ³⁰ in 2025, reflecting the launch of new business segments. Cost of revenue also increased from $0 ³¹ in 2024 to $1,421,368 ³² in 2025. General and administrative expenses decreased by $7,778,147 ³³, or 78.1% ³⁴, from $9,953,175 ³⁵ in 2024 to $2,175,028 ³⁶ in 2025, primarily due to a non-cash expense of $9.2 million related to equity incentive plan in 2024 ³⁷. The company's net loss attributed to shareholders significantly increased from a net profit of $5,787,416 ³⁸ in 2024 to a net loss of $220,909,089 ³⁹ in 2025, largely driven by the $225.3 million disposal loss ⁴⁰.

During fiscal year 2025, AIOS Tech Inc. completed a fourth major corporate restructuring and strategic transformation. On December 1, 2025, the company acquired YD Network Technology Company Limited for US$50,000 ⁴¹ to establish AI and IT service capabilities in Hong Kong ⁴². On December 23, 2025, the company divested 100% of the equity interest in NiSun BVI and its subsidiaries to Everstone Global Holdings Limited for US$50,000 ⁴³, discontinuing its legacy SME financing services and supply chain businesses in mainland China ⁴⁴. Effective February 12, 2026, the company rebranded from "Nisun International Enterprise Development Group Co., Ltd" to "AIOS Tech Inc." and changed its Nasdaq ticker symbol from "NISN" to "AIOS" ⁴⁵.

AIOS Tech Inc. intends to achieve its growth objectives and strengthen its competitive position through several strategic initiatives, focusing on overseas markets, particularly Hong Kong and Southeast Asia ⁴⁶. The company plans to pursue benchmark-led and gradient penetration market expansion, leveraging leading financial institutions and cross-border enterprises as benchmark clients to develop replicable industry cases ⁴⁷. The strategy involves offering integrated services covering financing, consulting, implementation, training, and operation and maintenance to lower the trial threshold for small and medium-sized enterprises, gradually expanding from Hong Kong into the Southeast Asian market, with a prioritization of Indonesia and the Philippines ⁴⁸.

The company will adopt a scenario-based and subscription-integrated product and service strategy, building a product system that combines standardization and customization ⁴⁹. For general needs, standardized SaaS products, such as basic versions of data middle platforms and AI customer service suites, will be launched, generating recurring SaaS subscription fees ⁵⁰. For in-depth industry needs, customized project services, such as the development of intelligent risk control systems for financial institutions, will be provided, with fees charged according to project implementation progress ⁵¹. A customer success system will be established, clarifying service standards through SLA agreements to enhance customer retention and drive long-term revenue growth ⁵².

Operationally, AIOS Tech Inc. plans to implement a resource integration and capability complementation ecological cooperation strategy ⁵³. This includes establishing partnerships with local system integrators, law firms, and audit institutions to provide one-stop "technology + compliance + consulting" services ⁵⁴. Additionally, the company will collaborate with universities and research institutions to cultivate compound talents with both technical capabilities and industry knowledge ⁵⁵. The company also intends to actively participate in the formulation of industry standards and enhance brand influence through certification endorsements and case sharing ⁵⁶. The company will adhere to a compliance-first and diversified layout risk control strategy, integrating compliance management into the entire business process, appointing full-time compliance specialists, and conducting regular risk inspections and compliance training ⁵⁷. In terms of customer layout, the company will avoid over-reliance on a single industry, initially focusing on developing benchmark clients in 3-5 industries including finance, retail, and manufacturing to diversify operational risks ⁵⁸. Technically, core modules will be independently developed, and qualified local suppliers will be selected for non-core businesses, ensuring data security and independent controllability of technology through NDA agreements ⁵⁹.

The company's capital expenditures were nil in 2025 ⁶⁰, $0.03 million in 2024 ⁶¹, and $0.5 million in 2023 ⁶². AIOS Tech Inc. anticipates continued capital expenditures to support the anticipated growth of its business ⁶³. The company intends to fund its existing and future material cash requirements through its current cash balance and other financing alternatives ⁶⁴. The board of directors may consider declaring dividends in the future, taking into account operational performance, earnings, financial condition, cash requirements, and other relevant factors ⁶⁵.

Management has explicitly flagged several structural headwinds and execution risks to its growth plan. The company has a limited operating history in the rapidly evolving AI and IT services industries, and its future success depends on its ability to design and deliver competitive AI and data solutions ⁶⁶. Failure to innovate or respond effectively to ever-changing AI technologies and IT solutions could materially adversely affect the business ⁶⁷. The company relies on cooperation with customers and industry partners, and the inability of its technology solutions or services to meet needs or expectations could lead to loss of market share ⁶⁸. Furthermore, the planned expansion into Southeast Asian markets subjects the company to additional operational, regulatory, and foreign exchange risks, including intense competition from well-established local IT providers, complex legal and tax environments, potential political and economic instability, and fluctuations in foreign exchange rates ⁶⁹.

AIOS Tech Inc. faces several material risks following its strategic transformation. The company has a limited operating history in the rapidly evolving AI and IT services industries, making its future prospects uncertain ⁷⁰. The AI and IT services markets are characterized by rapid technological advancement, and failure to innovate or respond effectively to changes could materially adversely affect the business ⁷¹. The company relies heavily on customer and partner relationships, and non-exclusive service agreements mean clients may opt for in-house solutions or competitors, potentially reducing revenue and profitability ⁷². Evolving regulatory requirements in Hong Kong and other jurisdictions, particularly concerning data privacy, cybersecurity, and cross-border data transfer, pose significant compliance risks, with potential for severe penalties, business interruptions, and loss of clients if measures fail to meet stringent requirements ⁷³. Providing IT services to financial institutions in Hong Kong subjects the company to heightened compliance, technology risk management, and auditability requirements, and failure to adapt could lead to disqualification from engagements, legal liabilities, and reputational damage ⁷⁴. Inadequacy in internal record-keeping or unclear contractual governance regarding data and compliance responsibilities could expose the company to significant legal liabilities ⁷⁵. Reliance on third-party cloud, technology, and outsourcing providers introduces operational and compliance risks beyond direct control, as malfunctions or breaches by these providers could compromise the company's solutions and lead to regulatory investigations ⁷⁶. Although the company has divested its mainland China operations, it may still be subject to certain PRC laws with extraterritorial effect, and the PRC government may intervene in or influence operations at any time, potentially impacting the value of its shares ⁷⁷. The enactment of the Hong Kong National Security Law and the Safeguarding National Security Ordinance, along with the U.S. Hong Kong Autonomy Act, could impact the company's Hong Kong subsidiaries and lead to sanctions or adverse effects on business operations ⁷⁸. The company has incurred significant net losses, including $220.9 million for the fiscal year ended December 31, 2025 ⁷⁹, and cannot assure future profitability ⁸⁰. The loss of any of its key customers, with four customers accounting for 14%, 12%, 12%, and 11% of total revenue from continuing operations in 2025 ⁸¹, could reduce revenues and profitability, especially since the company does not have long-term contracts with these major customers ⁸².

Management's message to shareholders emphasizes a strategic pivot towards high-growth technology sectors, specifically AI-powered services, data solutions, and IT services, following the divestiture of legacy businesses in December 2025. The company has rebranded to AIOS Tech Inc. and changed its Nasdaq ticker symbol to AIOS, signifying a full transition to these new sectors ⁸³. Management acknowledges the significant net loss of $220.9 million for fiscal year 2025, primarily due to the loss on disposal associated with the legacy business divestiture ⁸⁴, and states that future financial performance will depend entirely on continuing operations. The three strategic priorities for the period ahead include pursuing benchmark-led and gradient penetration market expansion, particularly in Hong Kong and Southeast Asia, adopting a scenario-based and subscription-integrated product and service strategy combining standardized SaaS products with customized project services, and implementing a resource integration and capability complementation ecological cooperation strategy, while adhering to a compliance-first and diversified layout risk control strategy. Management is confident in possessing sufficient funds to meet working capital requirements for the twelve months following the report date.