Company: ACBM
Filing Date: 2025-07-24
Form Type: 10-K
Source: 0001640334-25-001300
Chunk: 5

Company: ACRO BIOMEDICAL CO., LTD.
Filing Date: 2025-07-24
Form: 10-K
Item: Item 1
Chunk 5
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 are marketed as dietary supplements, including laws relating to the products and which describe the extent that products subject to the applicable laws, including the purity of the ingredients and marketing and labeling of products. We will need to comply with all applicable regulations and we may not be permitted to sell products in a country unless we have received prior approval from the applicable government agency. 

When we sold our products, are products were sold to distributors, and it is the responsibility of our customers to comply with applicable regulations in the countries in which they sell products, including Taiwan, China and Hong Kong.

To the extent that we either manufacture our product or have our product manufactured by a third party, we intend to use a third party for inspection, verification, testing and certification services.

Research and Development

We incurred research and development expenses of approximately $4.8 million in 2023, which reflects the amortization of equity compensation paid to our consultants whose services related to the development of our proposed chicken feed product.  We have not engaged in research and development activities since the expiration of the contracts with our consultants in August 2023.  Accordingly, we did not incur any research and development expense in 2024.

Intellectual Property Rights

We do not have any patent or other intellectual property rights with respect to any products.

Competition

A number of companies market and sell cordyceps products in the United States, including Real Mushrooms, Bulk Supplements, Terrasoul SuperFoods; Mental Refreshment Nutrition, NOW Foods, Aloha Medicinals, Natures Elements and Swanson Premium, and many companies market cordyceps in Asia. These products include cordyceps extract as well as products that include cordyceps along with other ingredients. Many, if not all, of these companies are better known and better capitalized than we are, and we cannot assure you that we will be able to compete successfully with these and other existing suppliers of cordyceps. There are a few companies that offer cordyceps in chicken feed. We believe that the market for this product is relatively small since cordyceps is extremely expensive and is usually used for human consumption. While cordyceps is considered a high price product, there are varying degrees of product, with the higher quality selling at higher prices. Cheaper products with lower quality that the products we sell are and have always been available in China. Although we believe there is a market for high quality product, we cannot give any assurance that if we continue the development of our