Biddance AI Systems, Inc. Announces First Half of Fiscal Year 2026 Financial Results

Higher hardware sales lifted revenue, but lower gross margin and increased operating expenses accompanied a wider first-half loss.

Rhea-AI Summary

Biddance AI Systems (BDAI) reported first-half 2026 revenue of $1,226,046, up from the comparable period a year earlier. For the six months ended June 30, revenue compared with $741,541 in 2025, with the company citing increased hardware sales as the main driver. Gross profit rose to $201,211 from $173,866, but gross margin fell to 16.4% from 23.4%.

Operating expenses increased to $2,003,478 from $1,521,453. Net loss widened to $1,370,065 from $916,109, and basic and diluted loss per share increased to $0.16 from $0.11. Operating activities used $1.08 million in cash, versus providing $1.15 million a year earlier. Financing activities provided $10.42 million. Cash and cash equivalents reached $17,088,014 at June 30, versus $3,611,999 at December 31, 2025. The company issued 794,232 Class A ordinary shares during the half.

11 points · 1 major

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1 major · 9 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointFirst-half 2026 financing activities provided $10.42 million in cash. 58% of market cap
• Moderate pointFirst-half 2026 revenue rose to $1,226,046 from $741,541 a year earlier, mainly from hardware sales.
• Moderate pointFirst-half 2026 gross profit increased to $201,211 from $173,866 a year earlier.
• Moderate pointFirst-half 2026 investing activities provided $4.15 million, versus using $0.23 million a year earlier.
• Moderate pointRelated-party loan payable fell to zero at June 30, 2026, from $2,645,465 at December 31, 2025.

6 minor points

• Minor pointCash and equivalents increased to $17,088,014 at June 30, 2026, from $3,611,999 at December 31, 2025.
• Minor pointShareholders' equity rose to $45,403,748 at June 30, 2026, from $36,010,312 at December 31, 2025.
• Minor pointFirst-half 2026 interest expense fell to zero from $153,049 a year earlier.
• Minor pointFirst-half 2026 net investment gain increased to $102,363 from $82,463 a year earlier.
• Minor pointFirst-half 2026 other income was $14,337, versus other expense of $11,501 a year earlier.
• Minor point. Forward-looking: it has not happened yet and may not happen.Tax services expansion: the company is seeking to expand its client base.

Negative

• Major pointIssuance of 794,232 Class A ordinary shares in first-half 2026 diluted existing holders.
• Moderate pointFirst-half 2026 net loss widened to $1,370,065 from $916,109 a year earlier.
• Moderate pointFirst-half 2026 gross margin declined to 16.4% from 23.4% a year earlier.
• Moderate pointFirst-half 2026 operating expenses increased to $2,003,478 from $1,521,453 a year earlier.
• Moderate pointFirst-half 2026 operating cash flow turned negative: $1.08 million used, versus $1.15 million provided a year earlier.

4 minor points

• Minor pointFirst-half 2026 basic and diluted loss per share increased to $0.16 from $0.11 a year earlier.
• Minor pointFirst-half 2026 operating loss widened to $1,802,267 from $1,347,587 a year earlier.
• Minor pointFirst-half 2026 cost of revenues increased to $1,024,835 from $567,675 a year earlier.
• Minor pointFirst-half 2026 interest income decreased to $210,639 from $412,683 a year earlier.

News Explained

Biddance issued 794,232 Class A shares in the half, taking that class from 5,629 shares at December 31, 2025 to 799,861 at June 30, 2026; issuing shares increases the total share count and reduces existing holders’ percentage ownership absent offsetting changes.

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XIAMEN, China, Oct. 26, 2026 /PRNewswire/ -- Biddance AI Systems, Inc. (Nasdaq: BDAI) (the "Company"), a China-based information technology consulting and solutions service provider, today announced its unaudited financial results for the six months ended June 30, 2026.

Ms. Xiaoyang Huang, Chief Executive Officer and Director of Biddance AI Systems, Inc., commented, "We are delighted with the robust year-over-year revenue growth achieved in the first half of the fiscal year. Our hardware and equipment sales served as the main revenue driver, providing solid support to the segment's expansion. Concurrently, we are aggressively seeking to expand our client base for our tax services."

First Half 2026 Financial Highlights

• Revenue was $1.23 million for the six months ended June 30, 2026 compared to $0.74 million for the same period of last year.
• Cost of revenue was $1.02 million for the six months ended June 30, 2026 compared to $0.57 million for the same period of last year.
• Gross profit was $0.20 million for the six months ended June 30, 2026 compared to $0.17 million for the same period of last year.
• Net loss was $1.37 million for the six months ended June 30, 2026 compared to a net loss of $0.92 million for the same period of last year.

First Half 2026 Financial Results

Revenue

Total revenues were $1.23 million for the six months ended June 30, 2026, compared to $0.74 million for the same period of last year. The revenue increase was mainly due to the increase in hardware sales.

Gross Profit and Gross Margin

Gross profit was $0.20 million for the six months ended June 30, 2026 compared to $0.17 million for the same period of last year.

Gross profit margin as a percentage of revenue decreased to 16.4% for the six months ended June 30, 2026 from 23.4% for the same period of last year.

Operating Expenses

Operating expenses were $2.00 million for the six months ended June 30, 2026, an increase of 31.7% from $1.52 million for the same period of last year. The increase in operating expense in 2026 was primarily due to the increase in general and administrative expenses.

Other Income

Total other income, net, was $0.33 million ($327,339) and $0.33 million ($330,596) for the six months ended June 30, 2026 and 2025, respectively.

Net Income (Loss)

As a result of the factors described above, net loss was $1.37 million for the six months ended June 30, 2026, compared to a net loss of $0.92 million for the comparable period of 2025.

Basic and Diluted Loss per Share

Basic and diluted loss per share was $0.16 for the six months ended June 30, 2026, compared to $0.11 for the same period of last year.

Cash Flow

Net cash used in operating activities was $1.08 million for the six months ended June 30, 2026, compared to net cash provided by operating activities of $1.15 million for the same period of last year.

Net cash provided by investing activities was $4.15 million for the six months ended June 30, 2026, compared to net cash used in investing activities of $0.23 million for the same period of last year.

Net cash provided by financing activities was $10.42 million for the six months ended June 30, 2026.

About Biddance AI Systems, Inc.

Biddance AI Systems, Inc. (formerly known as Hitek Global Inc.), headquartered in Xiamen, China, is an information technology ("IT") consulting and solutions service provider in China. The Company has two lines of business: 1) services to small and medium businesses, which consists of Anti-Counterfeiting Tax Control System ("ACTCS") tax devices, ACTCS services, and IT services, and 2) services to large businesses, which consists of hardware sales and software sales. The Company's vision is to become a one-stop consulting destination for holistic IT and other business consulting services in China. For more information, visit the Company's website at http://www.xmhitek.com/. 

Forward-Looking Statements

This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and in its other filings with the SEC.

The following tables summarize our results of operations for the periods indicated:

 

 

BIDDANCE AI SYSTEMS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Expressed in U.S. Dollars, except for the number of shares)
		June 30, 2026				December 31, 2025
		(Unaudited)
Assets
Current assets
Cash and cash equivalents		$	17,088,014			$	3,611,999
Short-term investments			19,970,243				18,364,219
Accounts receivable, net			5,350,006				5,407,989
Advances to suppliers, net			4,422				290,680
Inventories, net			85,568				79,411
Loans receivable			589,528				6,020,220
Other receivable			5,846,247				6,846,247
Prepaid expenses and other current assets			10,507				171,661
Total current assets			48,944,535				40,792,426
Non-current assets
Non-current accounts receivable, net			-				1,027,421
Non-current loans receivable			-				285,996
Property, equipment and software, net			332,488				475,189
Total non-current assets			332,488				1,788,606
Total Assets		$	49,277,023			$	42,581,032
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable		$	255,982			$	292,065
Loan payable – related party			-				2,645,465
Deferred revenue			65,298				73,059
Taxes payable			1,832,077				1,795,736
Accrued expenses and other current liabilities			160,776				148,342
Total current liabilities			2,314,133				4,954,667
Non-current Liabilities
Deferred income tax liabilities, net			1,559,142				1,616,053
Total non-current liabilities			1,559,142				1,616,053
Total Liabilities			3,873,275				6,570,720
Commitments and Contingencies			-				-
Shareholders' Equity
Class A Ordinary Shares, US$0.375 par value; 800,000 shares authorized,    799,861 shares issued and outstanding as of June 30, 2026; 800,000 shares    authorized, 5,629 shares issued and outstanding as of December 31, 2025*			299,948				2,111
Class B Ordinary Shares, US$0.0001 par value; 150,000,000 shares authorized,    8,192,000 shares issued and outstanding			819				819
Additional paid-in capital			35,040,217				24,920,060
Statutory reserve			836,215				836,215
Retained earnings			9,301,135				10,671,200
Accumulated other comprehensive loss			(74,586)				(420,093)
Total Shareholders' Equity			45,403,748				36,010,312
Total Liabilities and Shareholders' Equity		$	49,277,023			$	42,581,032

 

 

BIDDANCE AI SYSTEMS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Expressed in U.S. Dollars, except for the number of shares)
		Six Months Ended June 30,
		2026				2025
		(Unaudited)				(Unaudited)
Revenues		$	1,226,046			$	741,541
Cost of revenues			(1,024,835)				(567,675)
Gross profit			201,211				173,866
Operating expenses:
General and administrative			2,002,067				1,519,128
Selling			1,411				2,325
Total operating expenses			2,003,478				1,521,453
Operating loss			(1,802,267)				(1,347,587)
Other income (expense)
Net investment gain			102,363				82,463
Interest income			210,639				412,683
Interest expense			-				(153,049)
Other income (expense), net			14,337				(11,501)
Total other income, net			327,339				330,596
Loss before income taxes			(1,474,928)				(1,016,991)
Income tax benefit			(104,863)				(100,882)
Net loss		$	(1,370,065)			$	(916,109)
Comprehensive loss
Net loss		$	(1,370,065)			$	(916,109)
Foreign currency translation gain			345,507				236,419
Comprehensive loss		$	(1,024,558)			$	(679,690)
Loss per ordinary share
Basic and diluted		$	(0.16)			$	(0.11)
Weighted average number of ordinary shares outstanding
Basic and diluted*			8,313,997				8,197,629

 

 

BIDDANCE AI SYSTEMS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
Six Months Ended June 30, 2026 and 2025
(Expressed in U.S. Dollars, except for the number of shares)
		Class A Ordinary Shares*								Class B Ordinary Shares								Additional												Accumulated other				Total
		Number of shares				Amount				Number of shares				Amount				paid-in capital				Statutory reserve				Retained earnings				comprehensive loss				Shareholders' Equity
Balance as of    December 31, 2024			5,629			$	2,111				8,192,000			$	819			$	24,920,060			$	836,215			$	10,491,058			$	(975,343)			$	35,274,920
Foreign currency    translation adjustment			-				-				-				-				-				-				-				236,419				236,419
Net loss			-				-				-				-				-				-				(916,109)				-				(916,109)
Balance as of    June 30, 2025    (unaudited)			5,629			$	2,111				8,192,000			$	819			$	24,920,060			$	836,215			$	9,574,949			$	(738,924)			$	34,595,230

		Class A Ordinary Shares*								Class B Ordinary Shares								Additional												Accumulated other				Total
		Number of shares				Amount				Number of shares				Amount				paid-in capital				Statutory reserve				Retained earnings				comprehensive loss				Shareholders' Equity
Balance as of    December 31, 2025			5,629			$	2,111				8,192,000			$	819			$	24,920,060			$	836,215			$	10,671,200			$	(420,093)			$	36,010,312
Foreign currency    translation adjustment			-				-				-				-				-				-				-				345,507				345,507
Issuance of ordinary    shares			794,232				297,837				-				-				10,120,157								-				-				10,417,994
Net loss			-				-				-				-				-				-				(1,370,065)				-				(1,370,065)
Balance as of    June 30, 2026    (unaudited)			799,861			$	299,948				8,192,000			$	819			$	35,040,217			$	836,215			$	9,301,135			$	(74,586)			$	45,403,748

 

 

BIDDANCE AI SYSTEMS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in U.S. Dollars)
		Six Months Ended June 30,
		2026				2025
		(Unaudited)				(Unaudited)
Cash flows from operating activities:
Net loss		$	(1,370,065)			$	(916,109)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization			154,064				145,775
Loss on disposal of property, plant and equipment			1,433				-
Accrued interest income from loans, net			-				(104,790)
Net investment gain			(55,640)				(66,820)
Provision for expected credit losses of receivables			506,980				482,621
Provision for obsolete inventories			2,019				3,832
Deferred income tax			(105,252)				(100,882)
Changes in operating assets and liabilities:
Short-term investments - trading securities			(1,312,113)				2,427,711
Accounts receivable			710,590				1,044,167
Advance to suppliers			291,845				(2,272,803)
Inventories			(5,700)				12,483
Prepaid expenses and other current assets			164,540				265,122
Accounts payable			(42,330)				(50,983)
Advance from customers			-				291,466
Deferred revenue			(9,888)				(16,056)
Tax payable			(18,497)				5,781
Due to related parties			-				16,546
Accrued expenses and other current liabilities			7,798				(13,461)
Net cash (used in) provided by operating activities			(1,080,216)				1,153,600
Cash flows from investing activities:
Loans to third parties			(291,443)				(413,645)
Loans repayment by third parties			3,439,030				137,882
Purchases of held-to-maturity investments			(1,000,000)				(1,650,000)
Redemption of held-to-maturity investments			2,000,000				700,000
Refund of deposit for acquisition			-				1,000,000
Net cash provided by (used in) investing activities			4,147,587				(225,763)
Cash flows from financing activities:
Proceeds from issuance of ordinary shares			10,417,994				-
Net cash provided by financing activities			10,417,994				-
Effect of exchange rate changes on cash			(9,350)				33,690
Net increase in cash			13,476,015				961,527
Cash and cash equivalents at the beginning of period			3,611,999				7,236,798
Cash and cash equivalents at the end of period		$	17,088,014			$	8,198,325
Supplemental disclosures of cash flow information:
Cash paid for income taxes		$	-			$	-
Cash paid for interest		$	-			$	-

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

 

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SOURCE Biddance AI Systems, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Biddance AI Systems' revenue and net loss for the first half of 2026?

Biddance AI Systems reported revenue of $1,226,046 and a net loss of $1,370,065 for the six months ended June 30, 2026. In the comparable 2025 period, revenue was $741,541 and net loss was $916,109. Basic and diluted loss per share increased to $0.16 from $0.11.

How did Biddance AI Systems' gross margin change in the first half of 2026?

Gross margin declined to 16.4% for the six months ended June 30, 2026, from 23.4% a year earlier. Gross profit nevertheless increased to $201,211 from $173,866 as revenue increased.