Acro Biomedical Reports No Revenue and $42,297 Net Loss in 2024 Filing

Acro Biomedical Co., Ltd. reported significant financial challenges in its recent 10-K filing for the fiscal year ending December 31, 2024. The company recorded no revenue for the year, continuing a trend that began in 2022, resulting in a net loss of approximately $42,297. This follows a substantial loss of $8.8 million in 2023, primarily attributed to stock-based compensation and provisions for uncollectible accounts receivable. The company has not generated any revenue since December 31, 2022, and its financial condition raises substantial doubt about its ability to continue as a going concern.

The filing highlights a notable decline in operational activity, with no sales recorded in the second and third quarters of 2022 and throughout 2023. Acro Biomedical's revenue has historically been concentrated, with two customers accounting for 100% of sales in 2022 and 91.7% in 2021. The company recognized a provision for doubtful accounts of $480,000 in 2023, reflecting the inability to collect on previous sales, which has further strained its financial position. As of December 31, 2024, the company reported nominal cash reserves, no accounts receivable, and no inventory.

Strategically, Acro Biomedical has faced setbacks in its product development efforts, particularly regarding a proposed cordyceps-infused chicken feed product. The company engaged consultants for research and development in 2021, but these efforts did not yield a marketable product, and the consulting agreements expired in 2023. The company has not pursued new product development since then and has indicated that it may not continue with the chicken feed project or any other initiatives without significant funding, which remains uncertain.

Operationally, Acro Biomedical has been impacted by external factors, including inflation, supply chain disruptions, and the residual effects of COVID-19 restrictions in China. These challenges have hindered the company's ability to generate sales and maintain relationships with its customer base, primarily located in Taiwan and Hong Kong. The company has also noted that its common stock is traded on the OTC Market Group’s Expert Market, limiting its ability to raise capital through equity financing due to the absence of an active market.

Looking ahead, Acro Biomedical's outlook remains uncertain. The company has expressed the need for significant funding to implement its business plan but currently lacks agreements or understandings for such financing. The management has indicated that without the ability to generate revenue or secure funding, the company may not be able to continue its operations. The filing underscores the critical need for Acro Biomedical to develop a viable strategy for product development and market engagement to improve its financial standing and operational viability.