ACRO Biomedical Co., Ltd. reported its financial results for the third quarter and the first nine months of 2024, revealing a continued lack of revenue generation. For the three months ended September 30, 2024, the company reported no revenue, consistent with the same period in 2023. Operating expenses for the quarter totaled $9,106, a significant decrease from $1,588,700 in the prior year, primarily due to the absence of research and development costs associated with previous projects. The net loss for the quarter was $10,229, compared to a net loss of $1,589,490 in the same quarter of 2023.
For the nine months ended September 30, 2024, ACRO Biomedical again reported no revenue, with operating expenses amounting to $28,490, a substantial reduction from $8,786,966 in the same period of 2023. The net loss for the nine months was $31,624, compared to a net loss of $8,789,333 in the previous year. The decrease in operating expenses was attributed to the cessation of stock-based compensation related to consultant agreements that expired in 2023, which had previously inflated expenses.
The company has not made any sales since December 31, 2022, and has no current orders for products. This lack of revenue generation has raised concerns about its ability to continue as a going concern. As of September 30, 2024, ACRO Biomedical had minimal cash reserves of $701, down from $1,626 at the end of 2023, and a working capital deficiency of $316,603. The company has relied on advances from a minority stockholder to fund operations, with no assurance that this funding will continue.
Operationally, ACRO Biomedical has faced challenges in product development and market engagement. The company previously engaged consultants for research and development of a cordyceps-infused chicken feed product, but these efforts did not yield marketable results. The company has no full-time employees, with its chief executive officer working part-time without compensation. The absence of a robust employee base and ongoing product development has hindered its operational capacity.
Looking ahead, ACRO Biomedical's management has indicated that the company will continue to seek funding through product sales and equity financing arrangements. However, the lack of revenue, ongoing financial losses, and the company's stock being traded on the OTC Market Group’s Expert Market, which limits its marketability, pose significant risks to its future operations. The company has acknowledged that without generating revenue, it may not be able to sustain its business.
About ACRO BIOMEDICAL CO., LTD.
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