Company: ACBM
Filing Date: 2025-07-11
Form Type: 10-Q
Source: 0001640334-25-001169
Chunk: 1

Company: ACRO BIOMEDICAL CO., LTD.
Filing Date: 2025-07-11
Form: 10-Q
Item: Item 8
Chunk 1
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 that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain revenues and expenses during the reporting period. Actual results could differ from these good faith estimates and judgments. Revenue Recognition We recognize revenue in accordance with Topic 606, which requires revenues are recognized when control of the promised goods or services are transferred to a customer, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements:  ·identify the contract with a customer; ·identify the performance obligations in the contract; ·determine the transaction price; ·allocate the transaction price to performance obligations in the contract; and ·recognize revenue as the performance obligation is satisfied.

 8Table of Contents

Under these criteria, the Company generally recognizes revenue when its products are delivered to customers in accordance with the written sales terms. Cash received in advance from customers is recorded as deferred revenue. Accounts Receivable Accounts receivable are recorded in accordance with ASC 310, “Receivables.” Accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in its existing accounts receivable. The Company has determined that $480,000 of the accounts receivable at December 31, 2022 are not collectible and wrote off $480,000 of such accounts receivables during the three and nine months ended September 30, 2023. There was no impairment of accounts receivable during the year ended December 31, 2022. Inventories Inventories consist of finished goods. Inventories are valued at the lower of cost or net realizable value. The Company determines cost on the basis of first-in, first-out methods. The Company periodically reviews inventories for obsolescence and any inventories identified as obsolete are written down or written off. The Company has no inventory at September 30, 2023 and December 31, 2022.  The Company wrote off of purchase deposit for inventory of $12,000 for the three and nine months ended September 30, 2023.  Net Income (Loss) Per Share of Common Stock The Company has