AI Era Corp. Swings to $2.6M Profit in H1 2026 as Revenue Surges 236%

AI Era Corp., a media and intellectual property company operating cinema theaters and licensing content, reported net income of $2.6 million for the six months ending February 28, 2026, up sharply from $164,895 in the year-ago period. Revenue jumped 236% to $5.67 million from $1.68 million. Read more earnings reports.

Service revenue — spanning licensing for broadcast, embedded marketing, and NFT platform deals — drove the top line, climbing to $5.55 million from $664,028. The company also recognized $858,000 in copyright sales during the period, compared to none in the prior year.

Operating income reached $2.75 million, up from $160,982, though amortization expenses surged to $2.02 million from $254,766 as the company amortized its library of movie copyrights, television series, and short-form drama content. Total operating costs and expenses rose to $2.91 million from $1.52 million.

Theater revenue fell to $113,805 from $162,865 as admissions and food and beverage sales both declined. The company's cinema segment posted a loss of $98,029 for the six-month period, widening slightly from a loss of $96,565 in the prior year.

On the balance sheet, total assets stood at $9.05 million as of February 28, 2026, up from $6.66 million at the end of August 2025. Cash and cash equivalents climbed to $508,940 from $13,691. Intangible assets, net of amortization, totaled $7.11 million compared to $4.77 million six months earlier.

The company's IP segment, which houses content licensing operations, generated segment income of $2.70 million for the six months, compared to $261,460 in the prior year. That offset the loss from the cinema segment.

Total liabilities decreased to $2.83 million from $3.60 million, driven by a reduction in loans from related parties, which fell to $11,165 from $1.81 million. The company repaid $2.48 million to related parties during the period and recorded $675,000 in common share repurchases through non-cash settlement.

Stockholders' equity more than doubled to $6.22 million from $3.07 million as the company issued shares for officer bonuses, consulting services, and a private placement totaling $729,480. Accumulated deficit narrowed to $7.79 million from $10.39 million.

For the three months ending February 28, 2026, AI Era posted net income of $2.24 million on revenue of $4.14 million, compared to net income of $214,931 on revenue of $1.06 million in the year-ago quarter. Diluted earnings per share were $0.57, up from $0.16.

Cash provided by operating activities was $1.54 million for the six-month period, swinging from cash used of $345,972 in the prior year. The company spent $3.45 million acquiring intangible assets during the period.