ABVC BioPharma Reports Reduced Net Loss and Increased Total Assets in Q1 2025

ABVC BioPharma, Inc. reported a net loss of $944,190 for the first quarter of 2025, a significant reduction from the $2,927,667 loss recorded in the same period of the previous year. The company did not generate any revenue during this quarter, compared to $1,205 in revenue for the first quarter of 2024. Total operating expenses decreased to $693,005 from $2,839,183 year-over-year, primarily due to a substantial reduction in stock-based compensation, which fell from $2,031,631 to $48,773. The decrease in expenses reflects the company's ongoing efforts to streamline operations and manage costs effectively.

ABVC's total assets increased to $14.88 million as of March 31, 2025, up from $7.54 million at the end of 2024. This growth was driven by a significant rise in property and equipment, which rose to $8.17 million from $511,088, largely due to the acquisition of land in Taiwan valued at $7.67 million. The company's total equity also saw a substantial increase, reaching $7.96 million compared to $723,959 at the end of the previous fiscal year, attributed to the issuance of common stock and the acquisition of controlling interest in AiBtl BioPharma, Inc.

Operationally, ABVC has made strategic moves to enhance its market position, including the acquisition of land for health-related business development in Taiwan and the establishment of collaborative agreements with various partners. The company has entered into a licensing agreement with ForSeeCon Eye Corporation, which includes a potential upfront payment of $30 million and royalties on net sales. Additionally, ABVC has expanded its collaborative efforts with OncoX BioPharma, Inc. for the development of botanical drug extracts, which could further diversify its product offerings.

Despite these developments, ABVC faces challenges, including a working capital deficit of $5.26 million and ongoing cash outflows from operating activities. The company reported net cash used in operating activities of $539,833 for the first quarter of 2025, although it managed to generate $428,756 from financing activities. Management has indicated that to sustain operations, it may need to seek additional financing or support from related parties and shareholders. The outlook remains cautious, with substantial doubt about the company's ability to continue as a going concern unless it can generate positive cash flows and secure further capital.