First Quarter Revenue Reached $2.1 million
Gross Margin of 70.4% Supported Profit Turnaround in First Quarter 2026
OSAKA, Japan, April 30, 2026 /PRNewswire/ -- FiEE, Inc. $(FIEE)$ ("FiEE" or the "Company"), a technology company integrating IoT, connectivity and AI to redefine brand management solutions in the digital era, today announced its financial results for the first quarter ended March 31, 2026.
Operational and Financial Highlights for the Three Months Ended March 31, 2026
-- Revenue was approximately $2.1 million, compared to $125 for the three
months ended March 31, 2025. The increase in revenue primarily reflects
the Company's strategic transition from legacy hardware operations to
software-as-a-service ("SaaS") solutions, with the new business model
focusing on integrating AI and big data into content creation and brand
management, generating sales since March 2025. The increase in revenue is
also driven by the Company's newly introduced customized software R&D
services and digital authentication services.
-- As of March 31, 2026, FiEE onboarded approximately 818 customers for its
SaaS service, corresponding to SaaS -- multi-channel network ("MCN")
digital service fees totaling $6.9 million, of which $6.4 million was
recognized as revenue cumulatively, including $1.1 million recognized in
the three months ended March 31, 2026.
-- Building on this momentum, FiEE introduced customized software services
in July 2025. As of March 31, 2026, FiEE secured contracts totaling $1.5
million for customized software services, of which $0.6 million was
recognized as revenue in the three months ended March 31, 2026. During
the three months ended March 31, 2026, FiEE added five new customers,
bringing the total number of customers for its software services to 17.
-- Through the acquisition of Houren-Geiju Kabushikikaisha in November 2025,
FiEE added the ability to provide digital authentication, certification,
and display services for artwork. As of March 31, 2026, this business had
generated cumulative revenue of $0.8 million, including $0.4 million
recognized in the three months ended March 31, 2026, serving five
corporate and 52 individual clients.
-- Gross profit was approximately $1.5 million, compared to a gross loss of
$625 for the three months ended March 31, 2025.
-- Net income was approximately $0.4 million, compared to a net loss of $0.4
million for the three months ended March 31, 2025.
-- Net cash provided by operating activities reached $67 thousand during the
three months ended March 31, 2026.
Rafael Li, Chief Executive Officer of FiEE, commented, "We are delighted to announce a substantial improvement in profitability for the first quarter of 2026. This highlights the strong momentum of our expanding SaaS solutions, as well as the growing contributions of our customized software and digital authentication services. In March 2026, through our strategic entry into AI-powered music creation, distribution, and entertainment, we further demonstrated our commitment to innovation and expansion, opening new pathways to integrate advanced technologies into our digital ecosystem. In line with our long-term strategy, we are actively assessing opportunities in AI, hardware, and the Internet of Things (IoT), while also exploring opportunities in the MCN business."
Mr. Li further mentioned, "Looking ahead, we will continue to drive growth through innovation. By investing in R&D, we aim to broaden our service portfolio, deepen user engagement, and strengthen our brand's resilience in the digital content industry. At the same time, we are focused on building bridges between influencers, content creators, and global markets, fostering impactful partnerships and extending our reach across this rapidly evolving digital landscape."
Financial Results for the First Quarter Ended March 31, 2026
Revenue was approximately $2.1 million, compared to $125 in the same period of fiscal year 2025.
Three Months Ended March 31, %
------------------------ -------------------------------- -------------
2026 2025 change
------------------ -------- -------------
Revenues $ $ YoY
------------------------ ------------------ -------- -------------
Product sales
-- SaaS -- MCN digital
services 1,093,336 125 874,568.8 %
-- Software services 589,959 - N/A
-- Digital
authentication
services 438,694 - N/A
------------------ -------- -------------
Total $ 2,121,989 $ 125 1,697,491.2 %
================== ======== =============
Gross profit was approximately $1.5 million, compared to a gross loss of $625 in the same period of 2025.
Gross margin was 70.4%, representing a significant increase compared to the same period in 2025.
Operating expenses were approximately $1.1 million, representing an increase of 188.2% from $0.4 million in the same period of 2025.
-- Selling and marketing expenses were approximately $34 thousand, increased
by $34 thousand compared to the three months ended March 31 2025,
primarily reflecting the costs related to the expansion of our three core
business lines--MCN digital services, software development services, and
digital authentication services--as well as corporate branding
initiatives. For the three months ended March 31, 2025, the Company had
just launched its new business lines and had not yet incurred any selling
and marketing expenses.
-- General and administrative expenses were approximately $1.0 million,
representing an increase of 192.8% from $0.3 million in the prior year.
The increase was attributable to expanded business operations following
our strategic transformation, including certain non-recurring
professional service fees such as legal and advisory fees related to
strategic initiatives.
-- Research and development expenses were approximately $37 thousand,
representing an increase of 22.0% from $30 thousand in the prior year.
The increase primarily reflects ongoing enhancements and optimizations to
our system during the current period.
Operating income was approximately $0.4 million, as compared to a loss of $0.4 million in the prior year.
Net income was approximately $0.4 million, representing a turnaround from a loss of $0.4 million in the prior year.
Diluted earnings per common share was $0.02, as compared to a loss of $0.10 in the prior year.
As of March 31, 2026, total cash and cash equivalents was $4.6 million, as compared to $3.1 million as of December 31, 2025.
About FiEE, Inc.
FiEE, Inc. (NASDAQ:FIEE), formerly Minim, Inc., was founded in 1977. It has a historical track record of delivering comprehensive WiFi/Software as a Service platform in the market. After years of development, it made the strategic decision to transition to a Software First Model in 2024 to expand its technology portfolio and revenue streams. In 2025, FiEE, Inc. 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, Inc.'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, Inc. has introduced its innovative Software-as-a-Service solutions, which integrate its AI and data analytics capabilities into content creation and brand management. This initiative has nurtured a robust pool of KOLs on major social media platforms worldwide, helping them develop, manage, and optimize their digital presence. FiEE, Inc.'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 performance of the Company, (ii) our ability to successfully implement our strategic business transformation, (iii) our long-term growth objectives and opportunities, (iv) 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, (v) 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 (vi) our plans to further accelerate business growth and create value for our stockholders.
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