Company: ACBM
Filing Date: 2025-07-18
Form Type: 10-K
Source: 0001640334-25-001245
Chunk: 297

Company: ACRO BIOMEDICAL CO., LTD.
Filing Date: 2025-07-18
Form: 10-K
Item: Item 2
Chunk 297
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,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).

 19Table of Contents

Liquidity and Capital Resources

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

  December 312023  December 31,2022  Change  % Change Current assets $1,626  $657,537  $(655,911 )  (99.8 )%Current liabilities $288,575  $201,116  $87,459   43.5%Working capital (deficiency)  $(286,949 ) $456,421  $(743,370 )    

The following table summarizes our cash flows for the years ended December 31, 2023 and 2022: