Company: ACBM
Filing Date: 2025-07-11
Form Type: 10-Q
Source: 0001640334-25-001169
Chunk: 11

Company: ACRO BIOMEDICAL CO., LTD.
Filing Date: 2025-07-11
Form: 10-Q
Item: Item 8
Chunk 11
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 2022, we had revenues of $298,500, representing the sale of cordyceps products to one customer in the first quarter, cost of revenue of $222,000, a gross profit of $76,500, operating expenses of $12,012,343, of which $11,784,300 represented stock-based compensation to consultants for research and development ($7,560,000) and marketing expenses ($4,224,300) and the balance was primarily expenses and professional fees relating to our status as a public company. We also incurred interest expense to a related party of $919. As a result, we had a net loss of $11,936,762 or $(0.20) per share (basic and diluted).

Because of our dependence on a few customers, one of which accounted for all of our sales since in the first quarter of 2022, our revenue in any quarter is dependent upon both the timing of orders from customers and the delivery of products from our suppliers.  We did not generate any revenue during the nine months ended September 30, 2023.

Liquidity and Capital Resources

The following table summarizes our changes in working capital from December 31, 2022 to September 30, 2023:

  September 302023  December 31,2022  Change  % Change Current assets $12,501  $657,537  $(645,036 )  (98.1 )%Current liabilities $258,640  $201,116  $57,524   28.6%Working capital (deficiency)  $(246,139 ) $456,421  $(702,560 )    

The following table summarizes our cash flows for the nine months ended September 30, 2023 and 2022: 

  Nine months EndedSeptember 30,   2023  2022 Cash (used in) operating activities $(2,833 ) $(136,913 )Cash provided by financing activities $252  $57,853 Cash at end of period $3,271  $16,188 

 14Table of Contents

Cash used in operating activities of $2,833 for the nine months ended September 30, 2023 reflected primarily our net loss of $8,789,333, increased primarily by stock-based compensation representing the amortization of deferred stock compensation of $