AI Era Corp. Reports Fiscal Third Quarter and Nine-Month Results; Operating Cash Flow Swings by $4.9 Million on Strength of Agentic AI Platform

Revenue More Than Doubles to $7.2 Million Year-to-Date; Adjusted Operating Income of $4.9 Million; Ufilm AI creator ecosystem and AI-Training Licensing Drive Turnaround

MT. KISCO, N.Y., July 21, 2026 (GLOBE NEWSWIRE) -- AI Era Corp. (OTC: AERA) ("AI Era" or the "Company"), an intellectual property firm powered by an agentic AI platform for creator-media ecosystems, today announced results for its fiscal third quarter and nine months ended May 31, 2026, as reported in its Quarterly Report on Form 10-Q filed with the U.S. Securities and Exchange Commission ("SEC").

The Company's Form 10-Q is available on the SEC's EDGAR system at the AI Era Corp. filer landing page (CIK 0001605331), and a summary is available at StockTitan.

Nine-Month Highlights (vs. Prior-Year Nine Months)

• Revenue of $7,168,497, up 103.1% from $3,530,082, driven by broadcast/download licensing, the UFilm.ai platform, embedded marketing, and premium licensing of the Company's TV-series library for training third-party large language models ("LLMs").
• GAAP income from operations of $1,475,967, up more than 1,940% from $72,206.
• Adjusted operating income (Non-GAAP) of $4,943,378, up 436% from $921,774 after adding back non-cash amortization of intangible assets.
• Net cash provided by operating activities of $1,025,009, a swing of approximately $4.9 million from net cash used of $(3,876,764) in the prior-year period.
• Adjusted operating income of $0.85 per share (Non-GAAP), based on 5,801,681 common shares outstanding at May 31, 2026, compared to $0.16 per share in the prior-year period.
  
  

Third-Quarter Highlights

• Revenue of $1,501,839, reflecting the normal back-end-weighted timing of AI-training and licensing contracts within fiscal 2026.
• Adjusted operating income (Non-GAAP) of $166,505 after adding back $1,445,409 of non-cash amortization to a GAAP operating loss of $(1,278,904).
• GAAP net loss of $(4,328,997) driven entirely by a $(3,044,828) non-cash change in the fair value of the Company's warrant liability — a mark-to-market accounting adjustment with no impact on operating earnings, operating cash flow, or the underlying business.
  
  

Management Commentary

"The nine-month results demonstrate that our shift to an agentic AI platform is working — and accelerating," said Fred Deng, President of AI Era Corp. "Revenue has more than doubled, GAAP operating income is up nearly 20-fold, and, most importantly, we generated more than $1 million in cash from operations against a nearly $4 million cash burn in the same period last year. That is a $4.9 million swing in one year, and it was driven by two things: licensing our proprietary short form dramas series library to leading AI companies to train their LLMs, and the rapid growth of our UFilm AI ecosystem."

"Our reported GAAP net loss is entirely the result of a non-cash change in the fair value of our warrant liability, which is a mark-to-market accounting entry and has zero impact on our operating earnings or our cash generation. We are very proud of the positive momentum in our business and believe it will continue to accelerate as we sign additional AI-training partnerships."

A Note on Amortization and the Extended Useful Life of AI-Training Content

Historically, the Company amortizes acquired TV-series inventory over an estimated two-year useful life. Management believes that the emergence of a persistent AI-training data market has meaningfully extended the revenue-generating life of this inventory. Series licensed to AI companies for LLM training continue to generate revenue well beyond the two-year window used for GAAP amortization. Because current accounting does not yet reflect this extended monetization tail, management believes investors should evaluate the Company's underlying earnings power on a basis that adds back the non-cash amortization of intangibles alongside the non-cash warrant fair-value adjustments. The reconciliation tables below present that view.

GAAP-to-Non-GAAP Reconciliation — Nine Months Ended May 31

($, unless otherwise noted)	9M FY2026		9M FY2025		YoY Change
Revenue	$7,168,497		$3,530,082		+103.1%
GAAP income from operations	$1,475,967		$72,206		+1,944.1%
Add: Amortization of intangible assets (non-cash)	$3,467,411		$849,568
Adjusted operating income (Non-GAAP)	$4,943,378		$921,774		+436.3%
GAAP net (loss) / income	$(1,728,819)		$39,651
Add: Change in fair value of warrant liability (non-cash)	$3,093,820		—
Add: Amortization of intangible assets (non-cash)	$3,467,411		$849,568
Adjusted net income (Non-GAAP)	$4,832,412		$889,219		+443.4%
Net cash provided by (used in) operating activities	$1,025,009		$(3,876,764)		+$4.9M swing
Adjusted operating income per share (Non-GAAP)	$0.85		$0.16
Adjusted net income per share (Non-GAAP)	$0.83		$0.15

GAAP-to-Non-GAAP Reconciliation — Three Months Ended May 31

($, unless otherwise noted)	Q3 FY2026		Q3 FY2025
Revenue	$1,501,839		$1,845,189
GAAP (loss) from operations	$(1,278,904)		$(88,776)
Add: Amortization of intangible assets (non-cash)	$1,445,409		$594,802
Adjusted operating income (Non-GAAP)	$166,505		$506,026
GAAP net (loss)	$(4,328,997)		$(125,244)
Add: Change in fair value of warrant liability (non-cash)	$3,044,828		—
Add: Amortization of intangible assets (non-cash)	$1,445,409		$594,802
Adjusted net income (Non-GAAP)	$161,240		$469,558
Adjusted operating income per share (Non-GAAP)	$0.03		$0.09
Adjusted net income per share (Non-GAAP)	$0.03		$0.08

Per-share amounts are calculated on 5,801,681 common shares outstanding at May 31, 2026, as disclosed in the Form 10-Q, for illustrative comparability across periods.

Growth Drivers

Licensing to AI companies for LLM training. Demand from AI developers for high-quality, professionally produced video content to train multimodal models has become a significant and recurring revenue stream. The Company's growing library of short-form drama and premium TV-series inventory is well-suited to this demand, and management expects continued growth in this line as additional partnerships are signed.

UFilm.ai platform. The Company's UFilm.ai creator ecosystem — a SaaS platform for AI-assisted content creation and distribution — continues to scale, contributing platform-fee, subscription, and embedded-marketing revenue. The UFlix distribution channel is a core component of the Company's shift toward recurring, higher-margin revenue.

Agentic AI platform. These businesses are unified by, and increasingly automated through, AI Era's agentic AI platform, which management believes is the primary driver of the year-over-year turnaround in revenue, operating income, and operating cash flow.

About AI Era Corp.

AI Era Corp. (OTC: AERA), formerly AB International Group Corp., is an intellectual property firm based in Mt. Kisco, New York, dedicated to the acquisition, development, and licensing of creator-media ecosystems powered by agentic AI. The Company's businesses include the UFilm AI creator ecosystem, the UFlix.ai and AIXdance.com distribution channels, agentic AI-driven IP licensing, and premium licensing of professionally produced content for AI model training.

Investor Relations Contact

Paul Foisy
AI Era Corp. (OTC: AERA)
Email: ir@aieraco.com
Tel: (914) 864-0313
X: @AIEraCorp

Non-GAAP Financial Measures

This press release includes references to "adjusted operating income," "adjusted net income," and related per-share amounts, which are non-GAAP financial measures. The Company defines adjusted operating income as GAAP income from operations plus amortization of intangible assets, and adjusted net income as GAAP net income (loss) plus amortization of intangible assets plus the change in fair value of warrant liability. Management believes these measures provide investors with useful supplemental information about the Company's operating performance by excluding non-cash items that do not reflect ongoing cash generation or operating economics. Non-GAAP financial measures should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP. Reconciliations of each non-GAAP measure to its most directly comparable GAAP measure are provided in the tables above.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements about the Company's expected continued acceleration of momentum, growth in AI-training and licensing revenue, expansion of the UFilm.ai and UFlix platforms, and the extended monetization life of its TV-series inventory. These statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially, including the risks described in the Company's filings with the SEC, including its Annual Report on Form 10-K for the fiscal year ended August 31, 2025 and its Quarterly Reports on Form 10-Q, including the going-concern disclosure, the working-capital deficit, and the potential dilution associated with the Company's outstanding convertible notes, warrants, and equity purchase agreement. The Company undertakes no obligation to update any forward-looking statement except as required by law.

Source

AI Era Corp. Form 10-Q for the quarterly period ended May 31, 2026 (filed July 20, 2026). SEC EDGAR CIK: 0001605331. Filing summary: StockTitan.

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