Bio Essence Corporation Reports $22.2 Million Revenue in Q1 2025, Faces Increased Net Loss

Bio Essence Corporation reported its financial results for the first quarter of 2025, revealing a total revenue of $22.2 million, a significant increase from zero revenue in the same period last year. The revenue was primarily driven by $21.0 million in manufacturing service revenue and $1.2 million from shipping and delivery income. However, the company also reported a net loss of $205,752 for the quarter, compared to a loss of $122,986 in the first quarter of 2024, marking a 67.3% increase in losses year-over-year.

The company's financial position showed notable changes, with total assets rising to $365.7 million as of March 31, 2025, up from $281.0 million at the end of 2024. This increase was largely attributed to a rise in accounts receivable and prepayments to vendors. On the liabilities side, total liabilities increased to $3.54 billion, up from $3.25 billion, primarily due to a significant rise in customer deposits, which surged to $426.5 million from $187.1 million. The accumulated deficit also widened to $10.7 million, reflecting ongoing operational challenges.

Strategically, Bio Essence has undergone significant organizational changes, including the dissolution of its subsidiaries, Bio Essence Pharmaceutical Inc. and Bio Essence Herbal Essentials, in 2024. The company has shifted its focus to outsourcing manufacturing services following the sale of its manufacturing subsidiary, BEP, in December 2023. This transition is part of a broader strategy to streamline operations and reduce costs. The company is also exploring opportunities for geographic expansion and potential acquisitions to enhance its market presence.

Operationally, the company reported a working capital deficit of $2.87 billion, with a current ratio of 0.11:1, indicating liquidity challenges. As of March 31, 2025, Bio Essence had no cash on hand, down from $1,371 at the end of 2024. The company is actively seeking additional funding through private or public offerings and loans to support its operations. Management has indicated that it requires approximately $1.2 million in cash to sustain its business over the next 12 months.

Looking ahead, Bio Essence remains focused on increasing its revenue through enhanced sales efforts and marketing initiatives. The management believes in the viability of its strategy to generate sufficient revenue and is committed to raising additional funds to support its operations. However, the company acknowledges that its ability to continue as a going concern is contingent upon successfully implementing its business plan and securing necessary financing.