ACRO Biomedical Reports No Revenue for Q3 2023, Faces Financial Challenges

ACRO Biomedical Co., Ltd. reported its financial results for the third quarter and the first nine months of 2023, revealing a continued lack of revenue generation. The company reported no revenues for the three and nine months ended September 30, 2023, a significant decline compared to the $298,500 in revenue recorded during the same period in 2022. The absence of sales has been attributed to ongoing challenges in the market, including the impact of COVID-19 restrictions in China, which have affected customer purchasing behavior.

Operating expenses for the third quarter of 2023 totaled $1,588,700, a decrease from $4,010,823 in the same quarter of the previous year. This reduction was primarily due to lower research and development costs, which fell from $2,520,000 in Q3 2022 to $396,550 in Q3 2023. The company also recorded a provision for doubtful accounts of $480,000 and a write-off of a $12,000 inventory deposit. The net loss for the third quarter was $1,589,490, or $(0.03) per share, compared to a net loss of $4,011,322, or $(0.07) per share, in the prior year.

For the nine months ended September 30, 2023, ACRO Biomedical incurred a net loss of $8,789,333, compared to a loss of $11,936,762 for the same period in 2022. The total operating expenses for the nine months were $8,786,966, with significant contributions from research and development and selling, general, and administrative expenses. The company has not generated any revenue since the first quarter of 2022, and its financial position remains precarious, with cash reserves dwindling to $3,271 as of September 30, 2023.

The company has faced operational challenges, including the expiration of consulting agreements that were intended to support product development. Despite previous efforts to develop a cordyceps-infused chicken feed product, these initiatives have not yielded marketable results. As of the reporting date, ACRO Biomedical has no full-time employees, relying solely on its part-time CEO, who does not receive compensation. The company’s stock is currently traded on the OTC Market Group’s Expert Market, limiting its ability to attract investment.

Looking ahead, ACRO Biomedical's management has expressed concerns about the company's ability to continue as a going concern, given its lack of revenue, negative cash flow, and reliance on advances from related parties. The company plans to seek funding through product sales and equity financing, but it currently has no orders or agreements in place. The ongoing economic conditions, including inflation and supply chain disruptions, further complicate the company's outlook, raising doubts about its ability to generate revenue in the future.