FiEE, Inc. Announces Second Quarter and First Half 2026 Unaudited Financial Results
Rhea-AI Summary
FiEE (NASDAQ:FIEE) reported a profitable first half of 2026 following its shift to SaaS and AI-driven services. For the six months ended June 30, 2026, revenue rose to $6.9 million from $0.05 million a year earlier, with services led by SaaS – MCN digital services ($2.6 million), software services ($1.7 million), and digital authentication services ($2.6 million). Gross profit reached $5.4 million, lifting gross margin to 77.3% from 1.0%. Net income was $2.5 million, versus a $1.0 million loss in 2025, and diluted EPS was $0.17.
In Q2 2026, revenue was $4.8 million, gross profit $3.9 million, and net income $2.1 million. Operating expenses rose to $2.3 million on higher selling, G&A and R&D. FiEE completed the acquisition of Yinlian Culture and its VIE Maltose Culture in May 2026, expanding into AI music. Cash increased to $5.4 million and total assets to $15.1 million, while accumulated deficit narrowed and stockholders’ equity grew to $11.2 million.
Positive
- Revenue $6.9 million in H1 2026 vs. $0.05 million in 2025 (15,298.1% YoY growth)
- Net income $2.5 million in H1 2026 vs. $1.0 million loss in 2025
- Gross margin 77.3% in H1 2026 vs. 1.0% in prior-year period
- Q2 2026 revenue $4.8 million vs. $0.04 million in Q2 2025
- Cash balance $5.4 million at June 30, 2026 vs. $3.1 million at year-end 2025
- Stockholders’ equity $11.2 million at June 30, 2026 vs. $6.6 million at December 31, 2025
Negative
- Operating expenses $2.3 million in H1 2026, up 127.8% from $1.0 million in 2025
- Income tax expense $0.66 million in H1 2026 vs. none in prior-year period
- Accounts receivable $5.1 million at June 30, 2026 vs. $2.1 million at December 31, 2025
- Contract liabilities $0.34 million at June 30, 2026, down from $1.50 million at year-end 2025
News Explained
Service arrangements and preferred-stock allocation mean reported first-half profit does not map one-for-one to common holders.
As of
The disclosure therefore distinguishes amounts under stated service arrangements from revenue already recorded; the arrangements do not all appear in the reported top line at the same time.
Digital authentication services had
For the first half, net income attributable to common stockholders was
Market reaction after 2Q26 earnings report: FIEE +23.96%
Following this news, FIEE has gained 23.96%, reflecting a significant positive market reaction. Argus tracked a peak move of +33.1% during the session. Argus tracked a trough of -1.9% from its starting point during tracking. Our momentum scanner has triggered 59 alerts so far, indicating high trading interest and price volatility. The stock is currently trading at $6.20. Trading volume is exceptionally heavy at 18.4x the average, suggesting very strong buying interest.
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Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Apr 30 | First-quarter earnings | Positive | +2.6% | Revenue, margin, and net income improved versus the prior-year quarter. |
| Mar 20 | Full-year earnings | Positive | +6.7% | Revenue growth and profitability marked a reversal from the prior-year loss. |
| Feb 02 | Preliminary earnings | Positive | -13.2% | Preliminary results showed strong growth, gross profit, and net income. |
| Nov 12 | Third-quarter earnings | Positive | +7.4% | Sales and gross profit increased while the nine-month loss narrowed. |
| Aug 13 | First-half earnings | Negative | -3.8% | First-half sales declined and the company reported a net loss. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings-tagged events averaged a -0.05% move, with one notable divergence despite positive reported results.
Key Terms
saas technical
iot technical
vie financial
accounts receivable financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Strong Growth Across Segments Boosted First Half 2026 Revenue to
Profit Turnaround Achieved as First Half Net Income Reached
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 $0.05 million - 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 $7.9 million $2.6 million - As of June 30, 2026, we secured contracts totaling
$2.9 million $1.7 million - As of June 30, 2026, the digital authentication services business line generated cumulative revenue of
$2.9 million $2.6 million $2.0 million
- As of June 30, 2026, the Company onboarded over 900 customers for its SaaS – MCN digital services, representing total service fees of
- Gross profit was
$5.4 million $438 77.3% in the first half of 2026, up from1.0% 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 $1.0 million - 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 $0.04 million - Gross profit was approximately
$3.9 million $1,063 - Net income was approximately
$2.1 million $0.6 million
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
Revenues | Six Months Ended June 30, | % | ||||
2026 | 2025 | change | ||||
$ | $ | 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
Gross margin was
Operating expenses were approximately
- Selling and marketing expenses were approximately
$0.3 million $0.02 million - General and administrative expenses were approximately
$1.9 million $0.9 million - Research and development expenses were approximately
$80 thousand $50 thousand
Operating income was approximately
Net income was approximately
Diluted earnings per common share was
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, | |||||||
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 | |||||||||||||||
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.