Company Summary: Acro Biomedical Co., Ltd.

Business Overview

• Type: Development and marketing of nutritional products that promote wellness and a healthy lifestyle.
• Product Focus: Primarily sells cordyceps-related products, a fungus used in traditional Chinese medicine.
• Product Development: Engaged in research on a cordyceps-infused chicken feed; however, efforts did not produce a marketable product. Development activities with consultants ceased in August 2023.
• Product Line: Mainly cordyceps products, including extract and ingredients for other formulations.

Operations & Customers

• Sales History:
  • All sales have been to distributors or end users in Taiwan and Hong Kong.
  • Prior to 2019, sales were primarily in Hong Kong and China.
  • Only two customers accounted for 100% of 2022 revenue and 91.7% of 2021 revenue.
  • No current purchase orders or active sales as of the latest reporting.
• Revenue:
  • No revenue generated in 2023.
  • Revenue in 2022 was $658,500.
• Customers:
  • Based in Taiwan, Hong Kong, and China (with prior sales to Hong Kong customers who sold into China).

Employees & Management

• Number of Employees: 1
  • The company's only employee is Pao-Chi Chu, who serves on a part-time basis as CEO, CFO, President, and Secretary.
• Management:
  • Pao-Chi Chu owns approximately 49.97% of the company’s shares and is the sole director.
  • No independent directors or formal board committees.

Financial Summary

• Assets:
  • As of December 31, 2023: $58,459 (mainly cash, lease right-of-use asset).
  • As of December 31, 2022: $687,486.
• Liabilities:
  • As of December 31, 2023: $315,473 (mainly accounts payable, accrued expenses, lease liabilities).
  • As of December 31, 2022: $201,116.
• Income & Loss:
  • 2023: No revenue, net loss of $8,807,573.
  • 2022: Revenue of $658,500, net loss of $15,871,443.
• Cash Position:
  • $376 at December 31, 2023
  • $5,852 at December 31, 2022
• Revenue & Profitability:
  • No sales or revenue in the second and third quarters of 2022 and thereafter.
  • Incurs losses, largely due to research and development expenses, stock-based compensation, and bad debt provisions.

Additional Details

• Research & Development:
  • About $4.8 million in 2023 and $10.1 million in 2022 mainly related to consulting services for chicken feed development, which did not produce a marketable product.
• Market & Competition:
  • Competes with larger firms in the cordyceps market, including various U.S. and Asian companies.
  • Market is highly competitive and prices vary.
• Corporate Status:
  • Listed on OTC Markets Group’s Expert Market, with no active market makers or quotations.
  • No plans for full-time employees or independent directors.
  • Financial statements note substantial doubt about continuing as a going concern due to minimal cash, no current revenue, and lack of active operations.

In summary, Acro Biomedical is a small, developing company focused on cordyceps products primarily in Taiwan and Hong Kong. It has no current revenue, only one part-time employee, and significant financial losses with assets mainly limited to lease rights and minimal cash. The company has historically relied on consulting for product development, but efforts have not yet resulted in a marketable product or active sales.