Company: ACBM
Filing Date: 2025-07-22
Form Type: 10-Q
Source: 0001640334-25-001257
Chunk: 24

Company: ACRO BIOMEDICAL CO., LTD.
Filing Date: 2025-07-22
Form: 10-Q
Item: Item 1
Chunk 24
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 seek to sell products into the United States, although historically we have not sold products into the United States market.  Since we did not make any sales or purchase any inventory subsequent to December 31, 2022, we cannot evaluate the effects of inflation or supply chain issues on the price at which we sell products or the cost of our inventory.

We cannot assure you that we will be able to develop a marketable product or that we will be able to generate significant, if any, revenue. 

Our inability to generate sales partially resulted from the aftereffects of the COVID-19 restrictions of the Chinese government.  Our customers suffered tremendous financial losses due to COVID-19 restrictions, including the Chinese government’s No-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 a $480,000 account receivable reserve in 2023. 

Results of Operations

Three Months Ended March 31, 2023 and 2024 

For the three months ended March 31, 2024, we had no revenue or cost of revenue.  Our operating expenses were $10,298 which are primarily relating to expenses and professional fees relating to our status as a public company. We also incurred interest expense to a minority stockholder of $954. As a result, we had a net loss of $11,252 or $(0.00) per share (basic and diluted).

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For the three months ended March 31, 2023, we did not generate any revenue.  Our operating expenses were $4,003,566, of which $2,520,000 represented research and development expenses related primarily to the development project for cordyceps-infused chicken feed, and $1,483,566 represented selling, general and administrative expenses, of which $1,438,100 related to services provided by our consultants and $45,466 to expenses and professional fees relating to our status as a public company. The compensation to our consultants for research and development services and selling, general and administrative services totaling $3,928,100 represented the amortization of deferred stock compensation issued to the consultants in 2021. We also incurred interest expense to a minority stockholder of $788. As a result, we had a net loss of $4,004,354 or $(0.07) per share