Company: ACBM
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001640334-25-001999
Chunk: 38

Company: ACRO BIOMEDICAL CO., LTD.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 8
Chunk 38
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Inflation, Supply Chain Disruption and Effects of COVID-19 Restrictions

After years of relatively low inflation, in recent years, countries throughout the world, including Asia, have been subject to inflation at a rate significantly higher than in prior periods.  We expect that both the inflationary pressures and supply chain disruption that affect other industries will affect us.  These factors may result in delays in receipt of products we order, and increased costs which we may not be able to pass on to consumers. Both our cost of inventory and the prices we can charge for products increased as a result of inflation. We cannot assure you that our business will not be materially impaired by inflationary and supply chain disruption as well as be increased tariffs, in the event that we 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 and Nine Months Ended September 30, 2025 and 2024 

For the three months ended September 30, 2025, we had no revenue or cost of revenue.  Our operating expenses were $115,099, which are primarily related to expenses and professional fees relating to our status as a public company. We also incurred interest expense to a minority stockholder of $2,710. As a result, we had a net loss of $117,809 or $(0.00) per share (basic and diluted).

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For the three months ended September 30, 2024, we had no revenue or cost of revenue.  Our operating expenses were $9,106 which are primarily