ABVC BioPharma, Inc. reported revenue of $509,589 for the year ended December 31, 2024, a significant increase of 234% compared to the $152,430 reported in the restated 2023 fiscal year. This surge is attributed to out-licensing intellectual property, a contrast to the CDMO services that primarily contributed to 2023 revenue. The company's gross profit for 2024 was $508,826, a substantial improvement from a loss of $149,607 in 2023. Operating expenses decreased by $1,403,059 (21%) to $5,214,068 in 2024, primarily due to reductions in selling, general, and administrative expenses and research and development expenses, partially offset by increased stock-based compensation. The net loss for 2024 was $5,259,037, a 36% decrease compared to the restated 2023 net loss of $8,280,844.
Significant changes in 2024 included a change in CEO, with Dr. Uttam Patil replacing Dr. Howard Doong in June 2023. The company also acquired a 20% ownership stake in a property in Chengdu, China, in exchange for 370,000 shares of common stock. Further, ABVC and its subsidiary BioLite entered into licensing agreements with AiBtl BioPharma Inc. for their CNS drugs, receiving 23 million AiBtl shares each in return. Additional licensing agreements were signed with ForSeeCon Eye Corporation and OncoX BioPharma, Inc. for various products, resulting in further revenue generation. The company also underwent a 1-for-10 reverse stock split in July 2023.
Operational developments included the initiation of Phase II clinical trials for ABV-1701 (Vitargus) in Australia and Thailand during the second quarter of 2023. Phase II, Part 2 clinical trials for ABV-1505 (ADHD) are ongoing, with 69 subjects enrolled by December 2023. The company also highlighted ongoing Phase I/II trials for several other drug candidates. BioKey, a subsidiary, continued to provide CDMO services, generating revenue. As of December 31, 2024, the company employed 19 people, 16 of whom were full-time employees.
The company's financial statements were restated for the year ended December 31, 2023, to correct misstatements related to share-based payments, interest expense recognition on convertible debt, and the identification of non-controlling interest in a subsidiary. A material weakness in internal control over financial reporting was identified, primarily due to insufficient accounting personnel and inadequate controls over financial reporting. The company is actively working to remediate these weaknesses.
ABVC BioPharma's outlook remains focused on advancing its pipeline of drug and medical device candidates through clinical trials and securing partnerships for further development and commercialization. The company anticipates continued revenue generation from out-licensing and CDMO services, while also highlighting the potential for future revenue streams from its licensing agreements and the development of its acquired property in China. However, the company acknowledges substantial risks related to its financial condition, regulatory approvals, and competition within the highly competitive biopharmaceutical industry. The company's ability to continue as a going concern is dependent on its ability to generate positive cash flow and secure additional funding.
About ABVC BIOPHARMA, INC.
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