Company: ACBM
Filing Date: 2025-07-18
Form Type: 10-K
Source: 0001640334-25-001245
Chunk: 420

Company: ACRO BIOMEDICAL CO., LTD.
Filing Date: 2025-07-18
Form: 10-K
Item: Item 6
Chunk 420
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 losses due to COVID-19 restrictions, including the Chinese government’s Zero COVID policy.  Our customers sold their products into China and the Chinese economy was having difficulty in bouncing back.  We believe these factors also affected the ability of our customer to pay for the products purchased from us which resulted in the bad debt provision of accounts receivable of $480,000.

Results of Operations

Years Ended December 31, 2023 and 2022 

For the year ended December 31, 2023, we had no revenues or cost of revenue, and we incurred operating expenses of $8,804,367, of which $4,794,825 represented research and development expenses related primarily to the cordyceps-infused chicken feed development project, $3,517,542 represented selling, general and administrative expenses, of which $3,266,158 related to services provided by our consultants and the balance primarily to expenses and professional fees relating to our status as a public company, bad debt provision of accounts receivable of $480,000 and provision for an inventory deposit of write-off of $12,000. The compensation to our consultants for research and development services and selling, general and administrative services totaling $8,060,983 represented the amortization of deferred stock compensation issued to the consultants in 2021. We also incurred interest expense to a minority stockholder of $3,206. As a result, we had a net loss of $8,807,573, or $(0.15) per share (basic and diluted).

For the year ended December 31, 2022, we had revenue of $658,500, representing sales to two customers.  Our gross profit was $140,500, and our gross margin was 21.3%. We had operating expenses of $16,010,237, representing research and development expenses of $10,080,000 and selling, general and administrative expenses of $5,930,237, which included stock-based compensation of $15,712,400 paid to consultants working on research and development and marketing and related expense relating to our proposed chicken feed product.  As a result of the foregoing, we had a net loss of $15,871,443, or $(0.26) per share (basic and diluted).

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Liquidity and Capital Resources

The following table summarizes our changes in working capital from December 31, 2022 to December 31, 2023:

  December 312023