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BEIJING - Datasea Inc. (NASDAQ:DTSS) announced it has achieved what it describes as a breakthrough in its acoustic technology by integrating sound wave coupling with AI, according to a company press release issued Monday. The micro-cap company, currently valued at $14 million, has shown impressive revenue growth of 144% over the last twelve months, though InvestingPro data indicates it faces significant financial challenges with a weak financial health score.
The Nevada-based technology enterprise said it plans to apply this technology to precision health management and clinical intervention, targeting a healthcare application market that research firm Grand View Research projects could exceed $100 billion in China and approach $90 billion globally by 2030. While the market opportunity appears substantial, InvestingPro analysis reveals the company operates with thin gross profit margins of just 2.13% and a concerning current ratio of 0.64, suggesting potential liquidity challenges.
Datasea reports its proprietary sound wave coupling technologies can regulate the nervous system, including intracranial, peripheral, and cardiac areas, as well as provide targeted foot acupoint stimulation. The company claims this enables a closed-loop ecosystem of detection, analysis, diagnosis, and real-time intervention in medical scenarios.
"This breakthrough in applying acoustic technology to healthcare marks a new stage in our commercialization journey," said Zhixin Liu, Chief Executive Officer of Datasea, in the statement.
The company indicated it has developed hardware products with what it terms "medical-grade precision" and has begun initial commercialization efforts. Datasea plans to advance its technology through strategic collaborations to accelerate technology transfer and product deployment. According to InvestingPro, which has identified 8 additional key investment factors for DTSS, the stock is currently trading below its Fair Value, though investors should note the company’s cash burn rate and profitability challenges.
In July 2023, Datasea established Datasea Acoustics LLC, a wholly-owned subsidiary in Delaware, as part of its expansion into U.S. markets.
The company’s announcement comes amid growing demand for non-pharmaceutical precision health solutions and increasing policy support for healthcare technologies, according to the press release.
In other recent news, Datasea Inc. has secured two significant service contracts valued at up to $100 million. These agreements, each worth $50 million, are set for a 12-month period and involve the delivery of tailored 5G-AI digital services. The contracts include data top-up solutions and AI-driven communication tools. One contract renews a partnership with Qingdao Ruizhi Yixing, while the other introduces Qingdao Dong’an as a new client. This development highlights Datasea’s ongoing growth and ability to retain customers in the digital services sector. These recent contracts reflect confidence in the company’s offerings and mark a notable expansion in its client base.
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