--- title: "Biddance AI Systems, Inc. Announces First Half of Fiscal Year 2026 Financial Results | BDAI Stock News" type: "News" locale: "en" url: "https://longbridge.com/en/news/303133080.md" description: "Biddance AI Systems, Inc. (Nasdaq: BDAI) reported its first-half fiscal 2026 financial results. Revenue increased to $1.23 million from $0.74 million year-over-year, driven by higher hardware sales. However, the net loss widened to $1.37 million from $0.92 million, due to lower gross margins and a 31.7% increase in operating expenses." datetime: "2026-10-26T13:00:00.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/303133080.md) - [en](https://longbridge.com/en/news/303133080.md) - [zh-HK](https://longbridge.com/zh-HK/news/303133080.md) generator: "portal-rs" --- # Biddance AI Systems, Inc. Announces First Half of Fiscal Year 2026 Financial Results | BDAI Stock News Higher hardware sales lifted revenue, but lower gross margin and increased operating expenses accompanied a wider first-half loss. , /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. SOURCE Biddance AI Systems, Inc. ### Related Stocks - [BDAI.US](https://longbridge.com/en/quote/BDAI.US.md) - [HKIT.US](https://longbridge.com/en/quote/HKIT.US.md) ## Related News & Research - [HiTek Global announces annual general meeting](https://longbridge.com/en/news/291125417.md) - [HiTek Global enters US$20 million deal to buy Beijing Fourth Coco owner Ju Fu Limited](https://longbridge.com/en/news/295151278.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**