Connect with us

Technology

Precision Optics Reports Second Quarter Fiscal Year 2024 Financial Results

Published

on

Conference Call Scheduled for today, February 14, 2024, at 5:00pm ET.

GARDNER, Mass., Feb. 14, 2024 /PRNewswire/ — Precision Optics Corporation, Inc. (NASDAQ: POCI), a leading designer and manufacturer of advanced optical instruments for the medical and defense industries, announced operating results on an unaudited basis for its second quarter fiscal year 2024 for the period ended December 31, 2023.

Q2 2024 Financial Highlights (3 Months Ended December 31, 2023):

Revenue decreased 18% to $4.8 million, compared to $5.9 million in the same quarter of the previous fiscal year, but up 12% from the most recent sequential quarter. The year ago second quarter included a one-time sale of $600,000 of technology rights relating to a single-use medical device developed for a customer.Engineering revenue increased 33% to $2.3 million compared to $1.7 million in the same quarter of the previous fiscal year, and up 19% from the most recent sequential quarter.Production revenue was $2.6 million compared to $3.6 million in the same quarter of the previous fiscal year, and $2.4 million in the most recent sequential quarter.Gross margins were 30.1% compared to 44.2% in the same quarter of the previous year. Removing the impact of the technology rights revenue, gross margins a year ago would have been 37.8%.Net loss for the quarter was ($758,802), compared to a net income of $508,668 in the same quarter of the previous year. Adjusted EBITDA was ($269,034) for the quarter compared to $866,450 in the same quarter of the previous year. 

Recent Additional Highlights:

In November 2023, the Company announced the receipt of initial purchase orders towards a $1.4 million total program development project to develop a highly complex imaging sub-assembly for a next generation ophthalmoscope for one of the world’s largest technology-focused medical device companies.In December 2023, the Company announced the signing of a production and technology license agreement with a leading surgical robotics company to supply a single-use endoscope assembly used in their cystoscopy robotic surgery system.

Precision Optics’ CEO, Joseph Forkey, commented, “The Company’s results for Q2 were generally in-line with our expectations and consistent with what we have communicated previously.  While revenue was lower compared to last year due to timing differences between reorders for ongoing production, the exit of certain mature customer programs and the introduction of new customer programs, we have begun to see the rebound we expected with two new programs moving to production in the quarter and another restarting after a pandemic-related hold.  These programs contributed to a 6% quarter-over-quarter increase in production revenue, which, combined with record engineering revenue led to a 12% increase in total revenue compared to the first quarter.  Margins for the second quarter were lower than the first quarter, due to a differing sales mix, lower than normal production yields on certain programs starting or re-starting production as well as other one-time charges.  We believe these margin issues are transient and will be substantially resolved in the second half of the year, with gross margins returning to historical levels.

Dr. Forkey continued, “The growth we expect in the second half of fiscal 2024 is supported by the strength of our engineering pipeline, a leading indicator of future production volumes.  Engineering revenue was $2.3 million during the second quarter – a new quarterly record, up 33% year-over-year, and up 19% sequentially. We anticipate volumes from production orders coming on-line to lift our overall revenue to new quarterly record run-rates in this fiscal year.  Precision Optics’ core competencies — micro-optics, digital imaging, 3D endoscopy, and single-use medical devices — uniquely position us at the center of market segments that are significantly outpacing the growth of the broader medical device and defense / aerospace industries, providing us with an ongoing opportunity to significantly grow into the future. I look forward to an exciting second half of fiscal 2024.”

The following table summarizes the second quarter and fiscal year to date (unaudited) results for the periods ended December 31, 2023, and 2022:

Three Months

Six Months

Ended December 31,

Ended December 31,

2023

2022

2023

2022

Revenues

$4,824,289

$5,886,961

$9,145,544

$10,972,262

Gross Profit

1,450,976

2,599,472

2,914,587

4,238,913

Stock Compensation Expenses

382,431

108,746

491,177

319,776

Other

1,772,707

1,919,661

3,532,865

3,449,874

Total Operating Expenses

2,155,138

2,028,407

4,024,042

3,769,650

Operating Income (Loss)

(704,162)

571,065

(1,109,455)

469,263

Net Income (Loss)

(758,802)

(508,668)

(1,223,217)

349,944

Income (Loss) per Share

Basic

$          (0.13)

$          (0.09)

$          (0.20)

$               0.06

Fully Diluted

$          (0.13)

$          (0.09)

$          (0.20)

$               0.06

Weighted Average Common Shares Outstanding

Basic

6,066,572

5,638,302

6,066,545

5,638,302

Fully Diluted

6,066,572

5,935,911

6,066,545

5,937,471

Note: The Common Shares in this table reflect shares on a post reverse split basis for all periods presented.

Conference Call Details
Date and Time: Wednesday, February 14, 2024, at 5:00pm ET

Call-in Information: Interested parties can access the conference call by dialing (844) 735-3662 or
(412) 317-5705.

Live Webcast Information: Interested parties can access the conference call via a live webcast, which is available at https://app.webinar.net/5l19x2DzRKG.

Replay: A teleconference replay of the call will be available until February 21, 2024, at (877) 344-7529 or (412) 317-0088, replay access code 9304851. A webcast replay will be available at https://app.webinar.net/5l19x2DzRKG.  

About Precision Optics Corporation
Founded in 1982, Precision Optics is a vertically integrated optics company primarily focused on leveraging its proprietary micro-optics and  imaging technologies to the healthcare and defense/aerospace industries by providing services ranging from new product concept through mass manufacture.  Utilizing its leading-edge in-house design, prototype, regulatory and fabrication capabilities as well as its Lighthouse Imaging division’s electronic imaging expertise and its Ross Optical division’s high volume world-wide sourcing, inspecting and production resources, the Company designs and manufactures next-generation product solutions to meet the most challenging customer requirements. Within healthcare, Precision Optics enables next generation medical device companies around the world to meet the increasing demands of the surgical community who require more enhanced and smaller imaging systems for minimally invasive surgery, including single-use medical devices, as well as 3D endoscopy systems to support the rapid proliferation of surgical robotic systems. In addition to these next generation applications, Precision Optics has supplied top tier medical device companies with a wide variety of optical products for decades, including complex endocouplers and specialized endoscopes. The Company is also leveraging its technical proficiency in micro-optics to enable leading edge defense/aerospace applications which require the highest quality standards and the optimization of size, weight and power. For more information, please visit www.poci.com.

Non-GAAP Financial Measures
Precision Optics has provided in this press release financial information that has not been prepared in accordance with accounting principles generally accepted in the Unites States of America (“non-GAAP”). The non-GAAP financial measure is Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization). Adjusted EBITDA also excludes from Net Income (Loss) the effect of stock-based compensation, restructuring and other acquisition-related items.

This non-GAAP financial measure assists Precision Optics management in comparing its operating performance over time because certain items may obscure the underlying business trends and make comparisons of long-term performance difficult, as they are of a nature and/or size that occur with inconsistent frequency or relate to discrete acquisition or restructuring plans that are fundamentally different from the ongoing productivity of the Company. Precision Optics management also believes that presenting this measure allows investors to view its performance using the same measures that the Company uses in evaluating its financial and business performance and trends.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information calculated in accordance with GAAP. Investors are encouraged to review the reconciliation of non-GAAP measures to their most directly comparable GAAP financial measures. A reconciliation of the non-GAAP financial measure presented above to GAAP results has been provided in the financial tables included with this press release.

About Forward-Looking Statements
This press release contains forward-looking statements. Forward-looking statements include, but are not limited to, statements that express the Company’s intentions, beliefs, expectations, strategies, predictions or any other statements related to the Company’s future activities or future events or conditions. These statements are based on current expectations, estimates and projections about the Company’s business based, in part, on assumptions made by the Company’s management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in the forward-looking statements due to numerous risk factors. Any forward-looking statements speak only as of the date on which they are made, and the Company does not undertake any obligation to update any forward-looking statement, except as required by law.

Company Contact:
PRECISION OPTICS CORPORATION
22 East Broadway
Gardner, Massachusetts 01440-3338
Telephone: 978-630-1800

Investor Contact:
LYTHAM PARTNERS, LLC
Robert Blum
Telephone: 602-889-9700
poci@lythampartners.com

PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

December 31,

June 30,

2023

2023

ASSETS

Current Assets:

Cash and cash equivalents

$

987,044

$

2,925,852

Accounts receivable, net of allowance for doubtful accounts of $731,256
     at December 31, 2023 and $606,715 at June 30, 2023

3,511,544

3,907,407

Inventories

3,099,986

2,776,216

Prepaid expenses

234,121

249,681

Total current assets

7,832,695

9,859,156

Fixed Assets:

Machinery and equipment

3,253,746

3,227,481

Leasehold improvements

832,305

825,752

Furniture and fixtures

362,287

242,865

Total fixed assets

4,448,338

4,296,098

Less—Accumulated depreciation and amortization

3,966,839

3,862,578

Net fixed assets

481,499

433,520

Operating lease right-to-use asset

275,329

358,437

Patents, net

283,643

265,111

Goodwill

8,824,210

8,824,210

TOTAL ASSETS

$

17,697,376

$

19,740,434

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities:

Current portion of capital lease obligation

$

44,519

$

43,209

Current maturities of long-term debt

513,259

513,259

Accounts payable

1,675,742

2,432,264

Customer advances

1,158,242

1,174,690

Accrued compensation and other

747,793

927,521

Operating lease liability

173,503

168,677

Total current liabilities

4,313,058

5,259,620

Capital lease obligation, net of current portion

45,890

68,482

Long-term debt, net of current maturities and debt issuance costs

1,919,350

2,175,980

Operating lease liability, net of current portion

101,826

189,760

Stockholders’ Equity:

Common stock, $0.01 par value: 50,000,000 shares authorized; issued and
     outstanding – 6,067,518 shares at December 31, 2023 and 6,066,518 at June 30, 2023

60,675

60,665

Additional paid-in capital

60,718,801

60,224,934

Accumulated deficit

(49,462,224)

(48,239,007)

Total stockholders’ equity

11,317,252

12,046,592

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

17,697,376

$

19,740,434

 

PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE SIX MONTHS ENDED

DECEMBER 31, 2023 AND 2022

(UNAUDITED)

Three Months
Ended December 31,

Six Months
Ended December 31,

2023

2022

2023

2022

Revenues

$

4,824,289

$

5,886,961

$

9,145,544

$

10,972,262

Cost of Goods Sold

3,373,313

3,287,489

6,230,957

6,733,349

Gross Profit

1,450,976

2,599,472

2,914,587

4,238,913

Research and Development Expenses

221,728

155,264

434,486

365,891

Selling, General and Administrative
Expenses

1,933,410

1,873,143

3,589,556

3,403,759

Total Operating Expenses

2,155,138

2,028,407

4,024,042

3,769,650

Operating Income (Loss)

(704,162)

571,065

(1,109,455)

469,263

Interest Expense

(54,640)

(62,397)

(113,762)

(119,319)

Net Income (Loss)

$

(758,802)

$

508,668

$

(1,223,217)

$

349,944

Loss Per Share:

Basic

(0.13)

$

0.09

(0.20)

$

0.06

Fully Diluted

$

(0.13)

$

0.09

$

(0.20)

$

0.06

Weighted Average Common Shares
Outstanding:

Basic

6,066,572

5,638,302

6,066,545

5,638,302

Fully Diluted

6,066,572

5,935,911

6,066,545

5,937,471

 

PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED

DECEMBER 31, 2023 AND 2022

(UNAUDITED)

Six Months
Ended December 31,

2023

2022

Cash Flows from Operating Activities:

Net Income (Loss)

$

(1,223,217)

$

349,944

Adjustments to reconcile net loss to net cash used in by operating activities –

Depreciation and amortization

104,261

104,750

Stock-based compensation expense

491,177

319,776

Non-cash interest expense

8,752

16,966

Changes in operating assets and liabilities –

Accounts receivable, net

395,863

(1,368,650)

Inventories, net

(323,770)

232,963

Prepaid expenses

15,560

271

Accounts payable

(756,522)

216,060

Customer advances

(16,448)

(110,132)

Accrued compensation and other

(188,480)

255,162

Net cash (used in) provided by operating activities

(1,492,824)

17,110

Cash Flows from Investing Activities:

Purchases of fixed assets

(152,240)

(13,583)

Additional patent costs

(18,532)

(24,054)

Net cash used in investing activities

(170,772)

(37,637)

Cash Flows from Financing Activities:

Payments of capital lease obligations

(21,282)

(20,049)

Payments of long-term debt

(256,630)

(183,855)

Gross proceeds from the exercise of stock options

2,700

Net cash used in financing activities

(275,212)

(203,904)

Net (decrease) increase in cash and cash equivalents

(1,938,808)

(224,431)

Cash and cash equivalents, beginning of period

2,925,852

605,749

Cash and cash equivalents, end of period

$

987,044

$

381,318

 

PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

ADJUSTED EBITDA

Three Months

Six Months

Ended December 31,

Ended December 31,

2023

2022

2023

2022

Net Income (loss) (GAAP)

$

(758,802)

$

508,668

$

(1,223,217.00)

$

349,944

Stock based compensation

382,431

244,786

491,177.00

319,776

Depreciation and Amortization

52,697

52,667

104,261.00

105,078

Interest expense

54,640

60,329

113,762.00

117,251

Adjusted EBITDA (non-GAAP)

$

(269,034)

$

866,450

$

(514,017)

$

892,049

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/precision-optics-reports-second-quarter-fiscal-year-2024-financial-results-302062206.html

SOURCE Precision Optics Corporation

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Technology

AMSimpkins & Associates Awarded Wisconsin Technical Purchasing Consortium Contract RFB 25-002TP – for Identity Verification Solutions

Published

on

By

AMSimpkins & Associates has been awarded the Wisconsin Technical Colleges Purchasing Consortium (WTC-PC) contract for Identity Verification Solutions. This partnership includes providing their advanced S.A.F.E. (Student Application Fraudulent Examination) platform to 16 Wisconsin technical colleges, enhancing security and safeguarding against fraudulent student applications. With a focus on higher education, AMSA aims to support these institutions in maintaining the integrity of their admissions processes and preventing identity fraud. This collaboration underscores AMSA’s commitment to delivering innovative solutions tailored for the education sector.

ATLANTA, Sept. 22, 2024 /PRNewswire-PRWeb/ — AMSimpkins & Associates is proud to announce its selection by the Wisconsin Technical College System Purchasing Consortium (WTC-PC) to provide Identity Verification Solutions through the S.A.F.E. platform. The WTC-PC comprises 16 independent, publicly funded two-year technical colleges across Wisconsin, including Blackhawk Technical College, Chippewa Valley Technical College, Fox Valley Technical College, and Milwaukee Area Technical College, among others.

“We are honored by the Wisconsin Technical College Consortium’s trust in AMSA. This partnership further emphasizes our commitment to providing secure, innovative identity verification solutions that support the needs of educational institutions in protecting their students and operations.”

With a focus on preventing identity fraud, AMSimpkins & Associates’ comprehensive solutions will strengthen the security measures across admissions, enrollment, and financial aid processes, ensuring secure verification and compliance with federal and state regulations. S.A.F.E. will now support Wisconsin’s higher education system, offering its cutting-edge technology to streamline operations and safeguard student data.

“We are honored by the Wisconsin Technical College Consortium’s trust in AMSimpkins & Associates,” said Maurice Simpkins, President and Founder. “This partnership further emphasizes our commitment to providing secure, innovative identity verification solutions that support the needs of educational institutions in protecting their students and operations.”

As part of this agreement, AMSimpkins & Associates will deliver comprehensive services, including system integration, training, and ongoing support to ensure seamless implementation. S.A.F.E.’s capabilities are designed to evolve with growing threats of fraudulent activities, keeping institutions one step ahead in securing student identities.

Institutions in the Wisconsin Technical College System:

Blackhawk Technical CollegeChippewa Valley Technical CollegeFox Valley Technical CollegeGateway Technical CollegeLakeshore Technical CollegeMadison Area Technical CollegeMid-State Technical CollegeMilwaukee Area Technical CollegeMoraine Park Technical CollegeNicolet Area Technical CollegeNorthcentral Technical CollegeNortheast Wisconsin Technical CollegeNorthwood Technical CollegeSouthwest Wisconsin Technical CollegeWaukesha County Technical CollegeWestern Technical College

The S.A.F.E. platform’s advanced identity verification services will play a pivotal role in securing sensitive data and ensuring a safe and fraud-free environment for Wisconsin’s technical colleges and their students.

For more information about AMSimpkins & Associates and the S.A.F.E. platform, please visit amsa-highered.com.

Media Contact

LAQWACIA SIMPKINS, AMSimpkins & Associates, 1 6786824193, LSIMPKINS@AMSA-CONSULTING.COM, amsa-highered.com

Twitter, Facebook, LinkedIn

View original content:https://www.prweb.com/releases/amsimpkins–associates-awarded-wisconsin-technical-purchasing-consortium-contract-rfb-25-002tp—for-identity-verification-solutions-302253867.html

SOURCE AMSimpkins & Associates

Continue Reading

Technology

Shijingshan: Committed to High-Level Openness

Published

on

By

BEIJING, Sept. 22, 2024 /PRNewswire/ — Following the third plenary session of the 20th Central Committee of the Communist Party of China, China successfully hosted its first national-level international large-scale fair—the China International Fair for Trade in Services (CIFTIS) 2024, which concluded on September 16. The event featured exhibitors from 85 countries and international organizations, participating under their national governments or headquarters, with over 450 Fortune Global 500 companies and industry leaders showcasing their offerings both online and offline.

Adhering to the open, cooperative and mutually beneficial principle, the CIFTIS injects new momentum into global economic development through concrete actions. As one of the “dual venues” for the fair, Shijingshan District hosted a variety of business activities, including exhibitions, negotiations, and conferences. While providing meeting organization services, it showcased the achievements of Shijingshan in fostering openness and development. By leveraging the Fair’s platform, Shijingshan seeks to promote its developmental advantages globally and aims to attract more partners to this welcoming district for mutually beneficial and win-win cooperation.

Presenting Achievements in Open Cooperation and Development in Multiple Dimensions

This CIFTIS’s Shougang Park venue is composed of nine thematic exhibitions, including telecommunications, computer and information services; financial services; culture & tourism services; education services; sports services; supply chain & business services; engineering consulting & construction services; health services; and environmental services. It circles around cultivating new quality productive forces while showcasing the latest achievements, technologies, and applications in the digitalization, intelligentization, and greening of services trade, creating a “debut stage” for global services trade.

Shijingshan leverages its strengths by organizing five thematic exhibitions and four promotional booths on-site. The culture & tourism services exhibition promoted Shijingshan’s rich culture and tourism resources, while also building a support area for paired assistance to highlight its revitalization efforts to a global audience. The financial services exhibition showcased its achievements in economic development across five sectors, that is, sci-tech finance, green finance, inclusive finance, pension finance, and digital finance. The exhibition of telecommunications, computer and information services highlighted the growth of Shijingshan’s the artificial intelligence large model industry cluster and key humanoid robot enterprises. In addition, the primary and secondary school science education experimental zone invited participation from six national-level science education centers, including Shijingshan District, to display their accomplishments. Four schools, including the Beijing National Day School Shijingshan, showcased their scientific research and learning outcomes through visual presentations and videos, while also engaging visitors in interactive science experiments.

The AIES Beijing Open is made up of four competition areas, virtual cycling, virtual rowing, virtual dance, and virtual table tennis. The event welcomed international competitors, domestic professional athletes, high-level amateurs, and university students, while showing the achievements of the “digital + sports” industry. Besides, four promotional booths focused on taxation, justice, investment, and commerce showcases Shijingshan’s tax and judicial policies, offering one-stop policy guidance for participating businesses and visitors. These booths also clarified investment promotion policies, creating a unique event that integrates commerce, tourism, culture, and sports.

Working Together for Global Open Cooperation and Development

The Open Cooperation Forum 2024 was held on the afternoon of September 13. Experts, scholars, government representatives, and business leaders from both domestic and international backgrounds gathered at the Shougang Park to engage in in-depth discussions on promoting high-level open cooperation and supporting regional economic development. Shijingshan District is committed to taking industrial transformation as the strategic foundation for its initiatives, establishing several distinctive industrial parks, including the Intelligent Technology Park, Industrial Internet Park, Virtual Reality Park, Science Fiction Industry Cluster, and Artificial Intelligence Large Model Cluster. What’s more, the district is focusing on new opportunities in future information, future health, future manufacturing, and future space, continually enhancing its innovation capacity, development vitality, economic strength, and overall competitiveness.

It is dedicated to expanding openness as a key driver for integrating into the capital’s new development pattern. The district capitalizes on a range of policy opportunities, including the construction of Beijing’s two zones, effectively leveraging the role of expanding services and deepening economic reforms. It continues to optimize the business environment, actively participates in organizing the CIFTIS, and develops high-standard international cooperation zones to provide a broad platform and efficient services for enterprises to settle and cluster. Shijingshan aims to implement high-level openness to promote high-quality development, enhance mechanisms for foreign openness, innovate and elevate services trade, and align with international economic and trade standards, creating a premier business environment characterized by marketization, rule of law, and internationalization.

Three parallel forums took place during this CIFTIS. With the theme of “Leveraging Overseas Strength for Development • Pursuing Broad Horizons Through Innovation”, the Dream Incubator of Overseas Chinese Beijing Forum set up ten sub-venues abroad, aiming to enhance the involvement of overseas Chinese’s capital and expertise in Beijing’s high-quality development. The Artificial General Intelligence Computility Forum focused on “Releasing New Quality Productive Forces with Unbounded Intelligence and Computational Foundations”, where industry experts and scholars explored new possibilities in artificial general intelligence computility. The Digital Energy Development Forum 2024, themed as “Energizing the Future with Digital Innovation”, showcased a range of quality development achievements and finalized partnerships for several high-quality projects, uniting all parties to advance digital innovation and development.

The rich array of side events is one of the highlights of this CIFTIS. The International Open Cooperation Promotion Conference circled around developing the international open cooperation zone, drawing representatives from international organizations, leading global companies, and prospective businesses seeking to establish a presence in these areas. It centered on the advantages of Shijingshan’s key industries to attract target enterprises. Furthermore, the Roundtable Discussion of Foreign-Funded Enterprises engaged representatives from international organizations, business associations, and foreign-funded companies from countries like Malaysia, Singapore, and France to explore collaboration in aligning with high-standard international economic and trade rules, as well as market access in the service sector, sharing the successes of modernization with Chinese characteristics.

To enhance the consumer experience for attendees of the CIFTIS, Shijingshan has expanded its comprehensive service offerings in areas such as food, accommodation, transportation, tourism, entertainment and shopping. The Second “Here I Am for CIFTIS” Shijingshan Culture and Tourism Carnival has been significantly upgraded, evidenced by the “Divine Beasts Ascend to Immortal Mountain”: Enchanting Night Tour in Shijing Mountain. The “Surprises Await in Shijingshan. Hey There, CIFTIS!” promotional event was held during the 14th Shijingshan Consumption Festival. This included online surprise announcements and a consumption map showcasing quality shopping venues. Special surprise floats were on display, with oversized themed shopping bags distributed. Shopping centers like Joy City, Xirondo Plaza, Modern Plaza, and Chang’an Mills in Shijingshan also launched supporting promotional activities. Business tours in Shijingshan offered three dedicated routes, inviting exhibitors from digital technology, finance and insurance, culture and tourism, and sports related industries to explore relevant industrial parks and attractions for in-depth exchanges.

The China International Fair for Trade in Services 2024 has successfully concluded. Utilizing this platform, Shijingshan has once again showed its high-quality development achievements and favorable business environment to a global audience. We look forward to collaborating with more partners in an open and inclusive manner to create a win-win future.

View original content:https://www.prnewswire.com/news-releases/shijingshan-committed-to-high-level-openness-302254872.html

SOURCE Open Cooperation Forum

Continue Reading

Technology

Most Users Are NOT Using AI Companion as Their AI Girlfriend – Insights from Muah AI User Survey

Published

on

By

LOS ANGELES, Sept. 22, 2024 /PRNewswire/ — Muah AI/

In a world where artificial intelligence (AI) is becoming increasingly intertwined with daily life, the idea of having an AI companion or even an AI “girlfriend” has gained significant attention. While this concept has sparked curiosity, excitement, and even controversy, a recent survey by Muah AI has shed light on the reality of how users are actually engaging with these AI companions. According to the survey results, fewer than 2% of users consider themselves to be in a serious romantic relationship with their AI companion, with the overwhelming majority regarding it as a source of entertainment and roleplaying.

This revelation presents an interesting twist to the popular narrative surrounding AI and human relationships. Many assumed that, with the rise of sophisticated AI that can mimic human emotions and responses, people would begin forming deep emotional bonds with these digital entities. However, the survey data from Muah AI shows that, at least for now, the vast majority of users are not taking these AI relationships as seriously as some might have thought.

The Emergence of AI Companions

AI companions, or “AI girlfriends” as some platforms market them, have become a hot topic over the past few years. Platforms like Replika, Anima, and Muah AI offer users the chance to interact with a personalized AI, which can carry on conversations, offer emotional support, and even engage in roleplaying scenarios that resemble a relationship. The premise is simple: using advanced machine learning algorithms and natural language processing, these AI companions can learn from their users, creating the illusion of intimacy and personalization.

The potential appeal is obvious. For those who are lonely, socially anxious, or seeking comfort, the idea of having an AI that is always available, non-judgmental, and designed to cater to their emotional needs can be incredibly attractive. In fact, there are numerous reports and anecdotes from individuals who claim to have developed genuine emotional connections with their AI companions. But as the Muah AI survey shows, these instances may be far rarer than media headlines suggest.

Survey Results: Entertainment Over Emotional Investment

Muah AI‘s survey provides a comprehensive look at how its users interact with their AI companions, and the results challenge the notion that most users are looking for a serious relationship with AI. According to the data:

Less than 2% of users consider themselves to be “seriously dating” their AI companion.A significant majority view their interactions with the AI as a form of entertainment or roleplaying rather than a meaningful romantic or emotional connection.Many users engage with AI companions out of curiosity or as a way to pass the time, often treating the interactions as light-hearted and fun rather than a substitute for a real-life relationship.A notable portion of users also expressed that they enjoy using AI companions for creative roleplaying scenarios, where they can explore fictional or fantasy-based interactions without any real-world implications.

This data suggests that while the idea of an “AI girlfriend” may be intriguing, most users are not approaching it with the intention of forming a serious romantic bond. Instead, they are treating it more like a game or simulation, where they can experiment with different types of interactions and relationships in a low-stakes environment.

Why Are Users Hesitant to Commit to AI Companions?

There are several reasons why users may be hesitant to view their AI companion as a genuine romantic partner. First and foremost is the awareness of the artificial nature of the interaction. While AI can simulate human conversation and emotions, most users are well aware that these responses are pre-programmed and algorithmically generated. The knowledge that their “partner” is ultimately a machine can create a barrier to forming a deep emotional connection.

Moreover, many users view AI companions as a tool for escapism or fantasy rather than a replacement for real-life relationships. In the same way that people may enjoy playing video games or engaging in fictional roleplaying, interacting with an AI companion can offer a similar outlet for creativity and entertainment. These users are not seeking emotional fulfillment from the AI but rather a way to explore different scenarios and personalities without the complexities of real-world dynamics.

Additionally, there are ethical and philosophical concerns that may prevent users from seriously considering a relationship with AI. The idea of forming a romantic connection with a machine raises questions about authenticity, consent, and the nature of love. Many users may feel uncomfortable with the idea of developing feelings for an entity that lacks true emotions or consciousness, no matter how convincing the simulation may be.

The Future of AI Companions: Entertainment or Emotional Support?

While the Muah AI survey indicates that most users are not taking their AI companions seriously as romantic partners, that does not mean that AI companions are without value. For many, these AI entities serve as a valuable source of emotional support and companionship. Users who are isolated, dealing with mental health challenges, or simply looking for someone to talk to may find comfort in the consistent and non-judgmental nature of an AI companion.

Furthermore, the role of AI in human relationships may evolve as the technology continues to improve. As AI becomes more advanced, it is possible that future iterations of AI companions could offer even more realistic and emotionally engaging interactions. This could blur the line between entertainment and emotional connection even further, leading to more users considering AI as a legitimate relationship option.

However, the survey data suggests that for now, AI companions are primarily being used for fun and fantasy rather than serious emotional investment. Whether this changes in the future will depend not only on advancements in AI technology but also on shifting societal attitudes towards AI-human relationships.

Conclusion

The concept of an “AI girlfriend” may have captured the imagination of many, but Muah AI‘s survey reveals that most users are not taking their AI companions seriously as romantic partners. With fewer than 2% of users considering themselves to be in a serious relationship with their AI, it’s clear that the majority view these interactions as a form of entertainment or roleplaying rather than a meaningful emotional connection.

As AI technology continues to develop, it will be fascinating to see how users’ relationships with AI companions evolve. For now, however, it seems that the allure of AI companionship lies more in its ability to entertain and provide creative outlets than in offering a substitute for real-life romantic relationships.

Ultimately, the future of AI-human relationships is still in its early stages, and as AI becomes more capable, the way people engage with these digital companions may change. But as of now, it’s clear that most users are enjoying the novelty of AI companionship without taking it too seriously—at least not yet.

Media/Business Contact Information:
Muah AI 

PR Director:
Ashley

Contact Number:
+1 626-677-6013

Company Website:
https://muah.ai 

Company email:
love@muah.ai

Feel free to reach out if you are interested in writing a dedicated piece about Muah AI!

View original content to download multimedia:https://www.prnewswire.com/news-releases/most-users-are-not-using-ai-companion-as-their-ai-girlfriend—insights-from-muah-ai-user-survey-302254868.html

SOURCE Muah AI

Continue Reading

Trending