AI Era Corp (AERA) AI Stock Analysis

• Market Cap: $1.22M
• Dividend Yield: N/A
• Average Volume (3M): 4.87K
• Price to Earnings (P/E): 0.5
• Beta (1Y): 3.66
• Revenue Growth: 92.96%
• EPS Growth: -49.99%
• Country: US
• Employees: 8
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): N/A
• Shares Outstanding: 3,201,107
• 10 Day Avg. Volume: 4,865
• 30 Day Avg. Volume: 4,865
• PEG Ratio: <0.01
• Price to Book (P/B): 0.23
• Price to Sales (P/S): 0.11
• P/FCF Ratio: -0.31
• Enterprise Value/Market Cap: 4.23
• Enterprise Value/Revenue: 0.71
• Enterprise Value/Gross Profit: 1.02
• Enterprise Value/Ebitda: 1.21
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: $0.39
• Action: Reiterated Date: 03/21/26
• Date: Action: Reiterated 03/21/26

The score is held back mainly by weak cash generation and historical inconsistency despite improved recent profitability, alongside bearish technical momentum. These are partially offset by an extremely low P/E and corporate actions that improve liquidity/leadership but introduce dilution risk.

Positive Factors

Revenue and margin improvement

Trailing‑12‑month revenue growth in the mid‑teens alongside materially improved gross and operating margins shows the company has moved from prior loss periods into a scalable profit profile. Sustained margin improvement supports reinvestment in content and product development and reduces structural insolvency risk.

Stronger capital base

A rebuilt equity base versus recent years provides greater balance‑sheet resilience and financial flexibility. That stronger capital footing helps absorb operational volatility, supports longer term R&D or content investment, and reduces immediate solvency pressure compared with prior deep‑loss episodes.

Committed equity purchase facility

A $30 million, 24‑month equity purchase facility materially improves multi‑quarter liquidity optionality, allowing management to fund SaaS build‑out, hire tech talent, or smooth operating cash needs without one‑off financings. Predictable access to capital supports execution of multi‑period strategic initiatives.

Negative Factors

Weak cash generation

Persistent negative operating and free cash flow means reported profits are not converting into cash, forcing reliance on external financing to fund operations and growth. Over months, this undermines self‑funding ability, raises creditor reliance, and increases execution risk if financing terms tighten.

Material dilution risk from financing and incentives

Large stock‑based incentive awards and a $30M equity line create persistent dilution pressure as the company funds growth and compensates leadership. For a small float micro‑cap, ongoing issuance can impair per‑share economics, complicate long‑term returns and raise investor resistance to repeated equity funding.

Balance‑sheet and earnings volatility

Sharp swings in leverage and a history of deep losses show earnings and balance‑sheet metrics are unstable. That volatility increases the probability of future funding stress or credit covenant breaches if growth stalls, making multi‑period planning and guaranteed investment returns less reliable.

AI Era Corp Business Overview & Revenue Model

Company Description

AI Era Corp., through its subsidiaries, acquires and develops various intellectual property. The company operates through two segments, Copyrights and License (IP) and Cinema. It engages in the acquisition and distribution of movies and TV shows; licensing of its non-fungible token movie and music marketplace platform; and operation of Mt. Kisco movie theater. The company also provides video streaming services on its website under the ABQQ.tv brand; and technical, marketing, and consulting services in the media industry. AI Era Corp. was formerly known as AB International Group Corp. and changed its name to AI Era Corp. in December 2025. The company was incorporated in 2013 and is headquartered in Mount Kisco, New York.

How the Company Makes Money

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AI Era Corp Financial Statement Overview

Summary

Profitability has improved in TTM with revenue growth and healthy margins, but the recovery quality is weakened by persistently negative operating/free cash flow and inconsistent margin reporting across periods. Balance-sheet leverage and returns have also been volatile, adding execution risk.

Income Statement

Profitability has improved meaningfully versus earlier loss years, with TTM (Trailing-Twelve-Months) showing solid gross and operating profitability and a healthy net margin. Revenue is also growing in TTM (Trailing-Twelve-Months) (mid-teens). However, results have been volatile historically (deep losses in 2021–2023), and the annual 2025 report shows zero gross profit and zero EBIT margin, which raises questions around cost classification/consistency and makes the margin profile less dependable across periods.

Balance Sheet

Equity has built up versus 2023 and leverage appears manageable in absolute debt terms, supporting a stronger capital base than during the heavy-loss period. That said, leverage metrics swing sharply by period (debt-to-equity ranges from very low to elevated, and is relatively high again in TTM (Trailing-Twelve-Months)), pointing to balance-sheet volatility. Return on equity is strong in the latest periods but was severely negative in 2021–2023, highlighting execution risk if profitability softens.

Cash Flow

Cash generation is the key weakness: operating cash flow and free cash flow are negative in both TTM (Trailing-Twelve-Months) and the most recent annual period, and free cash flow growth is also negative. While 2024 briefly turned positive, the company has not shown sustained cash conversion, and the repeated negative operating cash flow relative to earnings suggests profits are not consistently translating into cash.

Breakdown	TTM	Aug 2025	Aug 2024	Aug 2023	Aug 2022	Aug 2021
Income Statement
Total Revenue	7.27M	6.37M	3.30M	1.47M	2.93M	115.09K
Gross Profit	5.06M	3.01M	2.99M	1.23M	-293.79K	-1.38M
EBITDA	4.28M	3.09M	486.90K	-503.78K	1.18M	-1.96M
Net Income	1.87M	1.46M	542.33K	-3.57M	-2.17M	-3.61M
Balance Sheet
Total Assets	6.20M	6.66M	2.35M	2.62M	5.84M	5.76M
Cash, Cash Equivalents and Short-Term Investments	11.77K	13.69K	64.43K	117.10K	84.22K	132.25K
Total Debt	298.31K	2.17M	801.32K	1.57M	1.47M	48.23K
Total Liabilities	2.73M	3.60M	889.27K	1.73M	1.82M	1.11M
Stockholders Equity	3.47M	3.07M	1.46M	890.99K	4.02M	4.65M
Cash Flow
Free Cash Flow	-1.79M	-2.32M	162.32K	-553.49K	-1.50M	-5.15M
Operating Cash Flow	-1.79M	-2.32M	162.32K	-553.49K	-1.50M	-5.14M
Investing Cash Flow	0.00	0.00	0.00	0.00	0.00	-5.00K
Financing Cash Flow	1.54M	2.27M	-214.99K	586.36K	1.45M	2.83M

AI Era Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

AI Era Corp Corporate Events

AI Era Corp Names New CEO, Adopts Incentive Plan

On March 1, 2026, AI Era Corp.’s board accepted the resignation of Chief Executive Officer Chiyuan (Fred) Deng, who will remain President, Chief Financial Officer and a director, while appointing AI technologist Ahmad Moradi as the new CEO under a three-year employment agreement featuring equity-heavy compensation and robust severance protections. The board simultaneously formalized Deng’s role as President with a parallel three-year agreement and adopted a 10 million-share 2026 Incentive Plan to fund stock-based awards, signaling a strategic reliance on equity incentives to secure leadership, support future hiring and align management with long-term growth while managing dilution typical of micro-cap public companies.

The most recent analyst rating on (AERA) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on AI Era Corp stock, see the AERA Stock Forecast page.

AI Era Corp Establishes $30 Million Equity Purchase Facility

On February 21, 2026, AI Era Corp. entered into an Equity Purchase Agreement with Monroe Street Capital Partners, giving the company the option to sell up to $30 million of its common stock over a commitment period of up to 24 months, subject to pricing formulas tied to market VWAP and volume-based limits per draw. As part of the arrangement, AI Era agreed to issue 100,000 commitment shares in stages, accepted covenants limiting competing equity facilities, and obtained an equity line that could bolster liquidity while potentially diluting existing shareholders and concentrating issuance through a single institutional investor.

Concurrently on February 21, 2026, the company signed a Registration Rights Agreement obligating it to file and maintain an effective SEC registration statement for the resale of the commitment and put shares, with specified timelines and remedies for delays. This structure is intended to facilitate orderly resale of the securities by the investor, aligning regulatory compliance with the funding mechanism and shaping how AI Era may access and deploy equity capital over the duration of the facility.

The most recent analyst rating on (AERA) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on AI Era Corp stock, see the AERA Stock Forecast page.

AI Era Corp Secures New Convertible Debt Financing

On February 2 and February 4, 2026, AI Era Corp. raised a total of $227,250 in private debt financing through two convertible promissory notes issued to Jefferson Street Capital and Labrys Fund II. The notes, bearing 10% annual interest and maturing in early 2027, are convertible into common stock at a 20% discount to the lowest trading price over a 20-day lookback period, subject to ownership caps and heightened default interest rates of up to 18% and 22%, respectively. The transactions, structured as private placements to accredited investors under exemptions from U.S. securities registration requirements, provide near-term funding while creating potential future equity dilution for existing shareholders once the debt becomes convertible.

The most recent analyst rating on (AERA) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on AI Era Corp stock, see the AERA Stock Forecast page.

AI Era Corp Secures Convertible Note Financing for SaaS

On January 27 and 28, 2026, AI Era Corp. entered into separate securities purchase agreements with Monroe Street Capital Partners LP and Crom Structured Opportunities Fund I, LP, issuing each investor a $154,500 unsecured convertible promissory note for $150,000 in cash proceeds, reflecting an original issue discount. The one-year notes carry a 10% annual interest rate with the first year of interest fully earned upfront, can be converted at the investors’ option into common stock at a 20% discount to the lowest trading price over a prior 20-day period (subject to ownership caps and adjustments), and feature investor-friendly terms including prepayment premiums, default acceleration to 150% of principal plus interest with monthly balance step-ups, stringent share-reservation requirements, and restrictive covenants on dividends, redemptions, additional variable-rate financings, and certain structured transactions. The financing, conducted as a private placement to accredited investors under U.S. securities law exemptions, is earmarked specifically to fund the company’s SaaS AI build-out, reinforcing its capital position for product development while imposing tight operational and financing constraints that may affect existing shareholders through potential dilution and limit the company’s flexibility in pursuing alternative funding or corporate actions.

The most recent analyst rating on (AERA) stock is a Buy with a $1.50 price target. To see the full list of analyst forecasts on AI Era Corp stock, see the AERA Stock Forecast page.

AI Era Corp Secures New Convertible Note Financing

On January 22, 2026, AI Era Corp. raised $100,000 in net proceeds through two privately placed convertible promissory notes with accredited investors Vanquish Funding Group Inc. and Boot Capital LLC, taken under Securities Purchase Agreements that allow for potential additional funding tranches of up to $865,000 over the next 12 months for general working capital needs. The notes, totaling $107,000 in principal, carry 10% annual interest, mature on October 15, 2026, and are convertible into common stock at a 20% discount to the lowest trading price over a specified lookback period, a structure that may lead to future equity dilution for shareholders but strengthens the company’s near-term liquidity and financing flexibility.

The most recent analyst rating on (AERA) stock is a Buy with a $1.50 price target. To see the full list of analyst forecasts on AI Era Corp stock, see the AERA Stock Forecast page.