In this article, we will be taking a look at the 15 Best Biotech Penny Stocks to Invest in Right Now. ABVC BioPharma, Inc. is one of them. ABVC BioPharma, Inc. (NASDAQ:ABVC) tops our list for being one of the best penny stocks. It is a clinical-stage biopharmaceutical company developing botanically derived therapeutics for oncology, neurology, and ophthalmology. Its pipeline includes treatments for Major Depressive Disorder (MDD), ADHD, metastatic pancreatic cancer, myelodysplastic syndromes, and inflamma ...

[FORM 8-K Filing Information](index=1&type=section&id=FORM%208-K%20Filing%20Information) This section outlines the registrant's legal name, filing date, contact details, and emerging growth company status [Registrant and Filing Details](index=1&type=section&id=Registrant%20and%20Filing%20Details) This section provides the registrant's legal name, jurisdiction, contact information, filing date, and emerging growth company status - Company Name: **ABVC BIOPHARMA, INC.**[1](index=1&type=chunk) - Date of Report (Earliest Event): **August 14, 2025**[1](index=1&type=chunk) Registrant Contact and Incorporation Details | Detail | Value | | :--- | :--- | | State or other jurisdiction of incorporation | Nevada | | Commission File Number | 001-40700 | | IRS Employer Identification No. | 26-0014658 | | Address of principal executive offices | 44370 Old Warm Springs Blvd., Fremont, CA 94538 | | Registrant's telephone number | (510) 668-0881 | - The registrant is **not an emerging growth company**[3](index=3&type=chunk) [Securities Information](index=1&type=section&id=Securities%20Information) This section details the company's registered securities under Section 12(b), including stock class, trading symbol, and exchange Registered Securities Details | Title of Each Class | Trading Symbol | Name of each exchange on which registered | | :------------------ | :------------- | :---------------------------------------- | | Common Stock, par value $0.001 per share | ABVC | The Nasdaq Stock Market LLC | [Item 2.02 Results of Operations and Financial Condition](index=2&type=section&id=Item%202.02%20Results%20of%20Operations%20and%20Financial%20Condition) This item reports the announcement of financial results for the second quarter and includes a disclaimer regarding securities offerings [Announcement of Financial Results](index=2&type=section&id=Announcement%20of%20Financial%20Results) ABVC BioPharma, Inc. announced Q2 2025 financial results via press release, furnished but not filed, limiting liability - **ABVC BioPharma, Inc.** issued a press release on **August 14, 2025**, announcing financial results for **Q2 ended June 30, 2025**[4](index=4&type=chunk) - The press release is furnished as **Exhibit 99.1** to this Current Report on Form 8-K[4](index=4&type=chunk) - This information is **furnished, not filed**, under Section 18 of the Securities Exchange Act of 1934, and is not incorporated by reference unless explicitly stated[5](index=5&type=chunk) [Disclaimer Regarding Securities Offerings](index=2&type=section&id=Disclaimer%20Regarding%20Securities%20Offerings) This section disclaims that the Form 8-K constitutes an offer to sell or solicit securities, noting they are unregistered under the Securities Act of 1933 - This Form 8-K and its exhibits do **not constitute an offer to sell or a solicitation to buy** the described securities[6](index=6&type=chunk) - The securities are **unregistered** under the Securities Act of 1933 and require registration or an applicable exemption for U.S. offers or sales[6](index=6&type=chunk) [Item 9.01 Exhibits](index=2&type=section&id=Item%209.01%20Exhibits) This item provides a comprehensive list of all exhibits furnished with the Form 8-K filing [List of Exhibits](index=2&type=section&id=List%20of%20Exhibits) This section lists all exhibits furnished with the Form 8-K, including their exhibit number and description Form 8-K Exhibits | No. | Description | | :-- | :---------- | | 99.1 | Press Release | | 104 | Cover Page Interactive Data File, formatted in Inline XBRL | [Signature](index=3&type=section&id=SIGNATURE) This section formally concludes the report with the authorized signatory's details and date [Authorized Signatory](index=3&type=section&id=Authorized%20Signatory) This section formally concludes the report, confirming its due signing by an authorized officer of ABVC BioPharma, Inc - The report was signed on **August 14, 2025**, by **Uttam Patil**, Chief Executive Officer of **ABVC BioPharma, Inc.**[9](index=9&type=chunk)[10](index=10&type=chunk)[11](index=11&type=chunk)

[PART I. FINANCIAL INFORMATION](index=2&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) This section presents the unaudited condensed consolidated financial information of ABVC BioPharma, Inc. and its subsidiaries [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for ABVC BioPharma, Inc. and its subsidiaries, including the Balance Sheets, Statements of Operations and Comprehensive Loss, Statements of Cash Flows, and Statements of Stockholders' Equity (Deficit) for the periods ended June 30, 2025, and December 31, 2024 (for balance sheet) or June 30, 2024 (for income statement and cash flow, restated) [Unaudited Condensed Consolidated Balance Sheets](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) This section presents the unaudited condensed consolidated balance sheets for ABVC BioPharma, Inc. as of June 30, 2025, and December 31, 2024 | Metric | June 30, 2025 | December 31, 2024 | | :--------------------------------- | :------------ | :---------------- | | Total Current Assets | **$2,770,401** | **$2,179,815** | | Total Assets | **$16,241,060** | **$7,539,907** | | Total Current Liabilities | **$6,532,514** | **$6,557,461** | | Total Liabilities | **$6,751,327** | **$6,815,948** | | Total Stockholders' Equity | **$7,013,635** | **$1,226,140** | | Total Equity | **$9,489,733** | **$723,959** | [Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) This section details the unaudited condensed consolidated statements of operations and comprehensive loss for the specified periods | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 (Restated) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 (Restated) | | :----------------------------------- | :------------------------------- | :------------------------------------------ | :----------------------------- | :---------------------------------------- | | Revenues | **$0** | **$117,142** | **$0** | **$118,347** | | Gross loss | **$0** | **$116,952** | **$0** | **$117,880** | | Total operating expenses | **$2,294,983** | **$977,059** | **$2,987,988** | **$3,816,242** | | Loss from operations | **$(2,294,983)** | **$(860,107)** | **$(2,987,988)** | **$(3,698,362)** | | Net loss | **$(2,332,833)** | **$(1,047,412)** | **$(3,277,023)** | **$(3,975,079)** | | Net loss attributed to ABVC and subsidiaries | **$(2,257,022)** | **$(942,336)** | **$(3,099,097)** | **$(3,776,535)** | | Basic and diluted Net loss per share | **$(0.13)** | **$(0.08)** | **$(0.19)** | **$(0.36)** | [Unaudited Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section outlines the unaudited condensed consolidated statements of cash flows for the specified periods | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 (Restated) | | :----------------------------------- | :----------------------------- | :---------------------------------------- | | Net cash used in operating activities | **$(1,434,007)** | **$(1,167,241)** | | Net cash used in investing activities | **$(665,779)** | **$(501,614)** | | Net cash provided by financing activities | **$2,356,083** | **$1,726,303** | | Net decrease in cash and cash equivalents and restricted cash | **$212,511** | **$25,989** | | Cash and cash equivalents and restricted cash, Ending | **$1,076,326** | **$742,769** | [Unaudited Condensed Consolidated Statements of Stockholders' Equity (Deficit)](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity%20(Deficit)) This section presents the unaudited condensed consolidated statements of stockholders' equity (deficit) for the specified periods | Metric | Balance at December 31, 2024 | Balance at June 30, 2025 | | :----------------------------------- | :--------------------------- | :----------------------- | | Common Stock (shares) | **13,868,484** | **19,533,416** | | Common Stock (amounts) | **$13,868** | **$19,533** | | Additional Paid-in Capital | **$78,595,065** | **$86,378,577** | | Accumulated Deficit | **$(68,949,807)** | **$(72,048,904)** | | Total Stockholders' Equity | **$1,226,140** | **$7,013,635** | | Noncontrolling Interest | **$(502,181)** | **$2,476,098** | | Total Equity | **$723,959** | **$9,489,733** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes supporting the unaudited condensed consolidated financial statements [1. Organization and Description of Business](index=10&type=section&id=1.%20ORGANIZATION%20AND%20DESCRIPTION%20OF%20BUSINESS) This section describes ABVC BioPharma, Inc.'s corporate structure and its focus on plant-derived biopharmaceutical development - **ABVC BioPharma, Inc.** (formerly American BriVision (Holding) Corporation) is a Nevada corporation focused on biotechnology, specifically developing new drugs and medical devices from plants[22](index=22&type=chunk) - The Company's pipeline development involves licensing drugs/medical devices from Asia-Pacific research institutions after pre-clinical and Phase I safety studies, then conducting Phase II clinical trials in the U.S., Australia, and Taiwan[22](index=22&type=chunk) - Key subsidiaries include BriVision, BioLite Holding Inc., BioKey Inc., BioKey (Cayman), Inc., and majority-owned AiBtl BioPharma Inc. The Company gained a **controlling interest (58.85%)** in AiBtl through licensing agreements for CNS drugs (MDD and ADHD)[23](index=23&type=chunk)[27](index=27&type=chunk) [2. Liquidity, Going Concern, and Restatement](index=11&type=section&id=2.%20LIQUIDITY,%20GOING%20CONCERN,%20AND%20RESTATEMENT) This section addresses the Company's financial viability, going concern status, and the restatement of prior financial statements - The Company reported a **net loss of $3,277,023** and a **working capital deficit of $2,762,113** for the six months ended June 30, 2025, indicating **substantial doubt** about its ability to continue as a **going concern**[28](index=28&type=chunk) - Management plans to improve operations for positive cash flow, raise additional capital through offerings, and seek financial support from related parties or shareholders to address liquidity concerns[29](index=29&type=chunk)[34](index=34&type=chunk) - Financial statements for December 31, 2023, and June 30, 2024, were **restated** to correct misstatements in share-based payments, interest expense recognition for convertible debts, and misidentification of non-controlling interest in a subsidiary[30](index=30&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk) Impact of Restatement on Six Months Ended June 30, 2024 (Selected Items) | Metric | As Reported | Adjustments | As Restated | | :----------------------------------- | :---------- | :---------- | :---------- | | Selling, general and administrative expenses | **$1,471,708** | **$(79,439)** | **$1,392,269** | | Stock based compensation | **$2,957,736** | **$(643,230)** | **$2,314,506** | | Interest expenses | **$(944,715)** | **$555,960** | **$(388,755)** | | Net loss | **$(5,253,708)**| **$1,278,629** | **$(3,975,079)**| [3. Summary of Significant Accounting Policies](index=15&type=section&id=3.%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This section outlines the key accounting principles and policies applied in preparing the Company's financial statements - The financial statements are prepared in accordance with U.S. GAAP, with certain information condensed or omitted consistent with Article 8 of Regulation S-X[42](index=42&type=chunk) - **Revenue recognition** follows ASC 606, with collaborative revenues, milestone payments, and CDMO services being key sources. Revenue is recognized when control of goods/services is transferred, with significant judgment applied to distinct performance obligations and standalone selling prices[56](index=56&type=chunk)[59](index=59&type=chunk)[70](index=70&type=chunk) - **Stock-based compensation** for employees and non-employees is measured using a fair value method and recognized over the requisite service period. Total stock-based compensation for the six months ended June 30, 2025, was **$1,620,386** (down from **$2,314,506** in 2024)[75](index=75&type=chunk)[76](index=76&type=chunk) - The Company currently has **one reportable segment**, and assets are reviewed on a consolidated basis[79](index=79&type=chunk) [4. Collaborative Agreements](index=25&type=section&id=4.%20COLLABORATIVE%20AGREEMENTS) This section details the Company's partnerships for co-development and commercialization of drug products and medical devices - **Collaborative agreements** with BioHopeKing Corporation (BHK) involve co-development of BLI-1401-2 (Triple Negative Breast Cancer), BLI-1005 (Major Depressive Disorder), and BLI-1006 (Inflammatory Bowel Disease) in Asia (excluding Japan)[83](index=83&type=chunk)[85](index=85&type=chunk) - BioLite Taiwan is entitled to receive **12% royalty** on BHK's net sales for BLI-1401-2 Products and **50%** of future net licensing income/sales profit for BLI-1005/BLI-1006. **No royalties have been earned** as of June 30, 2025[85](index=85&type=chunk)[86](index=86&type=chunk) - A co-development agreement with Rgene Corporation covers ABV-1511 (Pancreatic Cancer) and ABV-1526 (Colorectal Cancer). The Company owns **26.65%** of Rgene and provides clinical development services for RGC-1501, RGC-1502, and RGC-1503[88](index=88&type=chunk)[90](index=90&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk) - **Collaborative agreements** with BioFirst Corporation include global licensing rights for BFC-1401 Vitreous Substitute for Vitrectomy, ABV-2001 Intraocular Irrigation Solution, and ABV-2002 Corneal Storage Solution. Further development of ABV-2002 is **on hold due to funding**[97](index=97&type=chunk)[102](index=102&type=chunk)[104](index=104&type=chunk) - Licensing agreements with ForSeeCon Eye Corporation (FEYE) for Ophthalmology pipeline products (including Vitargus) involve a **total licensing fee of $33.5 million** (upfront payment in FEYE stock and cash milestone). The Company received **5 million FEYE shares** but did not recognize revenue due to uncertain fair value[108](index=108&type=chunk) - Agreements with OncoX BioPharma, Inc. grant exclusive rights to develop and commercialize botanical drug extracts from Maitake Mushroom for Non-Small Cell Lung Cancer, Pancreatic Cancer, Triple Negative Breast Cancer, and Myelodysplastic Syndrome. Consideration includes OncoX shares (fair value uncertain) and cash milestone payments, plus **5% royalties** on net sales[110](index=110&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk)[113](index=113&type=chunk) [5. Property and Equipment, and Prepayment for Asset Acquisition](index=30&type=section&id=5.%20PROPERTY%20AND%20EQUIPMENT,%20AND%20PREPAMENT%20FOR%20ASSET%20ACQUISITION) This section describes the Company's fixed assets and prepayments made for future asset acquisitions Property and Equipment, Net | Category | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Land | **$8,048,975** | **$338,966** | | Buildings and leasehold improvements | **$2,232,641** | **$2,219,244** | | Machinery and equipment | **$1,143,449** | **$1,131,169** | | Office equipment | **$182,022** | **$163,448** | | **Total Property and equipment, net** | **$8,215,366**| **$511,088** | - **Prepayment for asset acquisition of $691,900** relates to a **20% ownership stake** in a property and land in Chengdu, China, intended for a healthcare center. The value was adjusted from **$7.4 million** to **$691,900** due to accounting guidance correction (ASC 718 instead of ASC 845)[117](index=117&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk) - In March 2024, AiBtl issued common stock to acquire farmland in Taiwan for health-related businesses, recognizing **$7,670,000** on its balance sheet. The title transfer is pending government review, with a nominee holding agreement in place due to foreign ownership restrictions[121](index=121&type=chunk) [6. Long-Term Investments](index=32&type=section&id=6.%20LONG-TERM%20INVESTMENTS) This section provides an overview of the Company's strategic long-term equity investments in other biotechnology firms Long-Term Investments Summary | Investee Name | Ownership Percentage (June 30, 2025) | Accounting Treatment | | :--------------------------------- | :----------------------------------- | :------------------- | | Braingenesis Biotechnology Co., Ltd. | **0.17%** | Cost Method | | Genepharm Biotech Corporation | **0.67%** | Cost Method | | BioHopeKing Corporation | **5.90%** | Cost Method | | ForSeeCon Eye Corporation | **19.78%** | Cost Method | | BioFirst Corporation | **18.68%** | Equity Method | | OncoX BioPharma, Inc. | **24.97%** | Equity Method | | Rgene Corporation | **37.00%** | Equity Method | | BioLite Japan K.K. | **49.00%** | Equity Method | Long-Term Investments, Net | Category | June 30, 2025 | December 31, 2024 | | :--------------------------------- | :------------ | :---------------- | | Non-marketable Cost Method Investments, net | **$884,390** | **$790,250** | | Equity Method Investments, net | **$1,953,532** | **$1,468,504** | | **Total Long-term investments** | **$2,837,922**| **$2,258,754** | - The Company's **ownership in Rgene Corporation increased to 37%** after a convertible loan was approved for conversion in May 2024 (informed April 2025), impacting the equity method accounting[125](index=125&type=chunk) Loss on Investment in Equity Securities | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Share of equity method investee losses | **$(44,917)** | **$(79,057)** | **$(95,794)** | **$(79,057)** | [7. Convertible Notes Payable](index=33&type=section&id=7.%20CONVERTIBLE%20NOTES%20PAYABLE) This section details the Company's outstanding convertible debt instruments and their conversion activities - The Company has three secured, convertible notes with Lind Global Fund II, LP (Lind Notes 1, 2, and 3), which are convertible into common stock and have specific repayment terms, including cash or shares[129](index=129&type=chunk)[133](index=133&type=chunk)[135](index=135&type=chunk) - As of June 30, 2025, the 1st and 2nd Lind Notes were **fully converted/repaid**. The 3rd Lind Note had an **outstanding principal of $200,000**, which was **fully converted** in July 2025[133](index=133&type=chunk)[136](index=136&type=chunk)[191](index=191&type=chunk) - Total interest expenses related to the Lind Notes were **$117,290** for the three months ended June 30, 2025 (down from **$186,443** in 2024) and **$326,662** for the six months ended June 30, 2025 (down from **$359,537** in 2024)[139](index=139&type=chunk) Convertible Notes Payable, Net | Metric | June 30, 2025 | December 31, 2024 | | :--------------------------------- | :------------ | :---------------- | | Principal Amount at Balance Sheet Date | **$269,010** | **$1,460,000** | | Unamortized Discount | **$14,815** | **$509,954** | | **Carrying Value** | **$254,195** | **$950,046** | | Fair Value | **$309,010** | **$1,740,000** | [8. Accrued Expenses and Other Current Liabilities](index=37&type=section&id=8.%20ACCURRED%20EXPENSES%20AND%20OTHER%20CURRENT%20LIABILITIES) This section itemizes the Company's short-term financial obligations and accrued operational costs Accrued Expenses and Other Current Liabilities | Category | June 30, 2025 | December 31, 2024 | | :--------------------------------- | :------------ | :---------------- | | Accrued research and development expense | **$1,799,583** | **$1,799,583** | | Accrued directors and officers (owners) compensation | **$996,675** | **$1,025,867** | | Cash portion of the Lind Note repayments | **$769,660** | **$127,759** | | Accrued compensation and employee benefits | **$160,914** | **$126,106** | | Others | **$564,132** | **$557,866** | | **Total** | **$4,290,964**| **$3,509,422** | [9. Short-Term Loans](index=37&type=section&id=9.%20SHORT-TERM%20LOANS) This section outlines the Company's current borrowings from banks and other individual lenders Short-Term Loans | Lender | June 30, 2025 | December 31, 2024 | | :----------------- | :------------ | :---------------- | | Cathay United Bank | **$159,951** | **$200,252** | | CTBC Bank | **$682,000** | **$610,000** | | Other individual | **$30,000** | **$30,000** | | **Total** | **$871,951** | **$840,252** | - Cathay United Bank loan bears a floating interest rate (**2.99%** as of June 30, 2025) and is collateralized by BioLite Taiwan's building and improvements, with a personal guarantee from the Company's chairman[147](index=147&type=chunk) - CTBC Bank loans bear a fixed interest rate of **2.5% per annum**, secured by a savings account deposit and personally guaranteed by the Company's chairman and BioFirst[149](index=149&type=chunk) [10. Related Parties Transactions](index=38&type=section&id=10.%20RELATED%20PARTIES%20TRANSACTIONS) This section discloses financial and operational dealings with entities and individuals connected to the Company - **No cash receipts** from related parties on licensing agreements or other services were recognized as revenue for the six months ended June 30, 2025, compared to **$116,000** in revenue from FEYE in 2024[154](index=154&type=chunk)[155](index=155&type=chunk) - Consulting fees to Lion Arts (controlled by the Jiangs) were **$126,019** for the six months ended June 30, 2025, an **increase** from **$75,862** in 2024[158](index=158&type=chunk) Due from Related Parties - Current | Related Party | June 30, 2025 | December 31, 2024 | | :-------------- | :------------ | :---------------- | | Rgene | **$2,115** | **$565,711** | | BioFirst | **$1,420,290** | **$589,340** | | **Total** | **$1,422,405**| **$1,155,051** | Due to Related Parties | Related Party | June 30, 2025 | December 31, 2024 | | :-------------- | :------------ | :---------------- | | AiBtl Holding | **$348,219** | **$348,219** | | The Jiangs | **$83,011** | **$274,170** | | Shareholders | **$158,906** | **$142,130** | | Lion Art Promotions Inc | **$125,488** | **$0** | | Directors | **$12,952** | **$8,526** | | **Total** | **$728,576** | **$773,045** | [11. Income Taxes](index=42&type=section&id=11.%20INCOME%20TAXES) This section reports the Company's income tax expenses, benefits, and deferred tax asset positions Income Tax (Benefit) Expense | Period | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Income tax (benefit) expense | **$23,627** | **$(110,894)** | **$23,627** | **$(110,894)** | Deferred Tax Assets (Liability) | Category | June 30, 2025 | December 31, 2024 | | :--------------------------------- | :------------ | :---------------- | | Deferred tax assets, gross | **$6,761,724** | **$6,390,636** | | Valuation allowance | **$(6,761,724)** | **$(6,390,636)** | | **Deferred tax assets, net** | **$0** | **$0** | [12. Equity](index=42&type=section&id=12.%20EQUITY) This section details changes in the Company's capital structure, including common stock issuances and warrant activities - The Company issued **2,566,557 unregistered shares** in private offerings during the six months ended June 30, 2025, **raising $1,868,750**[177](index=177&type=chunk) - Common stock was issued for various purposes, including consulting services (**$454,370** for **518,471 shares**) and rent payments (**$181,956** for **260,460 shares**) during the six months ended June 30, 2025[175](index=175&type=chunk)[178](index=178&type=chunk) - Lind converted **$800,000 principal balance** of the 3rd Lind Note into **800,000 shares** of common stock during the six months ended June 30, 2025, with the remaining **$200,000 converted** in July 2025[190](index=190&type=chunk)[191](index=191&type=chunk) Warrants Issued and Outstanding (Lind Convertible Notes) | Metric | Outstanding as of January 1, 2025 | Exercised | Outstanding as of June 30, 2025 | | :--------------------------------- | :-------------------------------- | :-------- | :------------------------------ | | Number of Underlying Shares | **2,029,167** | **(1,029,167)**| **1,000,000** | | Weighted Average Exercise Price Per Share | **$0.0*** | **$0.40** | **$0.40** | [13. Stock Options](index=45&type=section&id=13.%20STOCK%20OPTIONS) This section provides information on the Company's outstanding stock options and their exercise status - **No stock options were granted** during the six months ended June 30, 2025, or 2024[194](index=194&type=chunk) - As of June 30, 2025, there were **258,710 stock options outstanding** and exercisable, with a **weighted-average exercise price of $27.9 per share** and a **remaining contractual life of 6.25 years**[195](index=195&type=chunk) [14. Loss Per Share](index=46&type=section&id=14.%20LOSS%20PER%20SHARE) This section presents the basic and diluted loss per share calculations for the Company Loss Per Share | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss attributable to ABVC's common stockholders | **$(2,257,022)** | **$(942,336)** | **$(3,099,097)** | **$(3,776,535)** | | Weighted-average shares outstanding – Basic & Diluted | **17,386,536** | **11,321,277** | **16,184,064** | **10,593,704** | | Loss per share – Basic & Diluted | **$(0.13)** | **$(0.08)** | **$(0.19)** | **$(0.36)** | - The Company's **net loss** for both periods resulted in an **anti-dilutive effect** from potential common shares[197](index=197&type=chunk) [15. Lease](index=47&type=section&id=15.%20LEASE) This section describes the Company's lease arrangements and the accounting treatment under ASC 842 - The Company adopted ASC 842, recognizing **operating lease ROU assets** and liabilities. ROU assets represent the right to use underlying assets, and lease liabilities represent payment obligations[199](index=199&type=chunk) Operating Lease Assets and Liabilities | Category | June 30, 2025 | December 31, 2024 | | :--------------------------------- | :------------ | :---------------- | | Operating lease right-of-use assets | **$459,325** | **$640,387** | | Operating lease liabilities (current) | **$282,192** | **$403,581** | | Operating lease liabilities (non-current) | **$177,133** | **$236,807** | Operating Lease Expenses and Terms | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :----------------------------- | :----------------------------- | | Operating lease expenses | **$236,496** | **$199,187** | | Weighted Average Remaining Lease Term | **2.37 years** | **2.48 years** | | Weighted Average Discount Rate | **1.32%** | **1.19%** | [16. Commitments and Contingencies](index=49&type=section&id=16.%20COMMITMENTS%20AND%20CONTINGENCIES) This section addresses potential future obligations and uncertain events that could impact the Company's finances - As of June 30, 2025, and up to the date of financial statement issuance, management is **not aware of any pending or threatened legal proceedings** that would **materially adversely affect** the Company's business, financial condition, or results of operations[205](index=205&type=chunk) [17. Subsequent Events](index=49&type=section&id=17.%20SUBSEQUENT%20EVENTS) This section reports significant events that occurred after the reporting period but before the financial statements were issued - On July 15, 2025, the Company finalized the **purchase of land** in Taoyuan City, Taiwan, from Shuling Jiang (a director) for an estimated fair value of **$3,857,975**, paid with **2,035,136 restricted shares** and five-year **warrants to purchase 1,000,000 shares**[206](index=206&type=chunk) - A one-year **consulting agreement** was entered with Shuling Jiang on July 15, 2025, for land-related advisory services, compensated with **1,000,000 restricted shares** vesting over five years[207](index=207&type=chunk) - On July 1, 2025, Lind **exercised 500,000 warrants**, and on July 9, 2025, **converted the remaining $200,000 outstanding** 3rd Lind Note into common stocks, **fully repaying all Lind Notes**[208](index=208&type=chunk) - In July and August 2025, the Company received **$100,000** and **$350,000 cash payments** on licensing agreements from ForSeeCon and OncoX, respectively[209](index=209&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=50&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the Company's financial condition and results of operations, highlighting its business overview, R&D pipeline, recent corporate developments, financial performance for the three and six months ended June 30, 2025, and its liquidity and capital resources. It also addresses the impact of COVID-19 and the restatement of prior financial statements [Overview](index=50&type=section&id=Overview) This section provides an overview of the Company's business, R&D pipeline, and recent corporate developments - **ABVC BioPharma Inc.** is a clinical-stage biopharmaceutical company focused on plant-derived new drugs and medical devices, operating through subsidiaries like BriVision, BioLite Holding, BioKey, and AiBtl BioPharma Inc[216](index=216&type=chunk) - The Company's R&D pipeline includes ABV-1504 (MDD, Phase II completed), ABV-1505 (ADHD, Phase II Part 1 completed, Part 2 in progress), ABV-1601 (Major Depression in Cancer Patients, Phase I/II expected end of 2025), and ABV-1701 (Vitargus® for vitrectomy surgery, Phase II initiated but **on hold due to SAEs**)[222](index=222&type=chunk)[225](index=225&type=chunk) - BioKey, a wholly-owned subsidiary, provides **Contract Development & Manufacturing Organization (CDMO) services**, including API characterization, formulation development, and regulatory submissions[224](index=224&type=chunk) - The Company received a **Nasdaq notification** on April 24, 2025, for **non-compliance** with the minimum stockholders' equity requirement (**$723,959** as of April 23, 2025), but **regained compliance** by May 5, 2025, with stockholders' equity of **$7,956,295**[242](index=242&type=chunk)[249](index=249&type=chunk) [Recent Research Results](index=57&type=section&id=Recent%20Research%20Results) This section highlights recent research and development outcomes for the Company's drug and medical device pipeline - The Phase II clinical study of Vitargus® (ABV-1701) for vitrectomy surgery commenced in Q2 2023 but is currently **on hold due to Serious Adverse Events (SAEs)** observed in Thailand sites, prompting investigation and product improvement efforts[260](index=260&type=chunk) - Development of ABV-2002 Corneal Storage Solution is temporarily **suspended due to funding constraints**, despite preliminary internal testing indicating potential advantages[261](index=261&type=chunk) - For ABV-1505 (ADHD), **69 subjects** have been enrolled in the Phase II Part II clinical study, with **50 completing treatment**. The **Clinical Study Report (CSR)** was submitted to the U.S. FDA on March 27, 2025[263](index=263&type=chunk) [Public Offering & Financings](index=58&type=section&id=Public%20Of%20ering%20%26%20Financings) This section details the Company's recent public offerings, private placements, and financing activities - During Q1 2025, the Company **extinguished** the remaining principal balance of the 2nd Lind Note through equity issuances and **reduced** the 3rd Lind Note **outstanding balance to $600,000** via equity conversions[264](index=264&type=chunk) - In the six months ended June 30, 2025, the Company **raised $1,868,750** through several private offerings of **2,566,557 unregistered common shares**[267](index=267&type=chunk) - In 2024, Lind **exercised 1,000,000 Pre-Existing Warrants** at a reduced price of **$0.75 per share** and received new warrants for **1,000,000 shares** at **$1.00 per share**[273](index=273&type=chunk) - The Company **repaid $800,000 principal** of the 2nd Lind Note in 2024 through common stock issuances, with additional cash repayments due to conversion price floor requirements[270](index=270&type=chunk)[271](index=271&type=chunk)[272](index=272&type=chunk) [Strategy](index=63&type=section&id=Strategy) This section outlines the Company's business strategy, focusing on R&D, clinical trials, and revenue generation - The Company's business strategy focuses on **augmenting R&D capabilities** by conducting Phase I and II clinical trials for new drugs and medical devices in CNS, Hematology/Oncology, and Ophthalmology[304](index=304&type=chunk) - Key business objectives include advancing ABV-1701 Vitargus to **pivotal trial phase**, licensing ABV-1504 for MDD, completing Phase II Part 2 for ABV-1505 (ADHD), and **out-licensing** post-Phase II candidates to major pharmaceutical companies[306](index=306&type=chunk) - **Revenue generation** relies on collaborative activities, including **non-refundable upfront license fees**, development and commercial milestones, R&D cost reimbursements, and **royalties on net sales**[307](index=307&type=chunk) - BioKey subsidiary generates revenue through **Contract Development & Manufacturing Organization (CDMO) services** and regulatory services, supporting both ABVC's internal development and external customers[329](index=329&type=chunk)[330](index=330&type=chunk) [Impact of COVID-19 Outbreak](index=68&type=section&id=Impact%20of%20COVID-19%20Outbreak) This section discusses the impact of the COVID-19 pandemic on the Company's operations and financial estimates - The COVID-19 pandemic has **adversely affected** the CDMO business sector, constraining researcher access to labs and reducing demand below historic levels. The Company anticipates a return to pre-COVID-19 demand with vaccination programs and policy changes[332](index=332&type=chunk) - Estimates in financial statements may be **materially and adversely impacted** in the near term due to COVID-19 conditions, including potential losses on inventory and impairment losses[333](index=333&type=chunk) [Restatement of Consolidated Financial Statements](index=68&type=section&id=Restatement%20of%20Consolidated%20Financial%20Statements) This section explains the restatement of prior consolidated financial statements and the reasons for the adjustments - The Company **restated its financial statements** for the year ended December 31, 2023, to correct misstatements related to share-based payments, interest expense recognition on convertible debts, and misidentification of non-controlling interest[334](index=334&type=chunk) - Adjustments included reducing asset value by **$6,708,100** and stock-compensation expense by **$536,648** due to **incorrect application of accounting guidance** (ASC 845 instead of ASC 718) for an asset acquisition[336](index=336&type=chunk) - Interest expenses were **overstated by $1,179,667** for 2023 due to misapplication of ASC 470-20 instead of ASC 815-40 for a convertible note[337](index=337&type=chunk) - The Company's **controlling interest** in AiBtl was **adjusted from 100% to 69.70%** as of December 31, 2023, due to outstanding founder shares not timely deposited[338](index=338&type=chunk) [Results of Operations - Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024.](index=70&type=section&id=Results%20of%20Operations%20-%20Three%20Months%20Ended%20June%2030,%202025%20Compared%20to%20Three%20Months%20Ended%20June%2030,%202024.) This section analyzes the Company's financial performance for the three months ended June 30, 2025, compared to the same period in 2024 Financial Performance (Three Months Ended June 30) | Metric | 2025 | 2024 (Restated) | Increase (Decrease) | % Change | | :----------------------- | :--- | :-------------- | :------------------ | :------- | | Revenue | **$0** | **$117,142** | **$(117,142)** | **-100%** | | Operating Expenses | **$2,294,983** | **$977,059** | **$1,317,924** | **135%** | | Loss from Operations | **$(2,294,983)** | **$(860,107)** | **$(1,434,876)** | **167%** | | Net Income (Loss) | **$(2,332,833)** | **$(1,047,412)** | **$(1,285,421)** | **123%** | - **Revenue decreased by 100% to $0** in Q2 2025, primarily due to **no milestone revenue** recognized from licensing agreements, compared to **$117,142** in Q2 2024[346](index=346&type=chunk) - **Operating expenses increased by 135% to $2,294,983**, mainly due to hiring consultants and advisors for business opportunities and financial advisory services[347](index=347&type=chunk) [Results of Operations - Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024.](index=70&type=section&id=Results%20of%20Operations%20-%20Six%20Months%20Ended%20June%2030,%202025%20Compared%20to%20Six%20Months%20Ended%20June%2030,%202024.) This section analyzes the Company's financial performance for the six months ended June 30, 2025, compared to the same period in 2024 Financial Performance (Six Months Ended June 30) | Metric | 2025 | 2024 (Restated) | Increase (Decrease) | % Change | | :----------------------- | :--- | :-------------- | :------------------ | :------- | | Revenue | **$0** | **$118,347** | **$(118,347)** | **-100%** | | Operating Expenses | **$2,987,988** | **$3,816,242** | **$(828,254)** | **-22%** | | Loss from Operations | **$(2,987,988)** | **$(3,698,362)** | **$710,374** | **-19%** | | Net Income (Loss) | **$(3,277,023)** | **$(3,975,079)** | **$698,056** | **-18%** | - **Revenue decreased by 100% to $0** for the six months ended June 30, 2025, due to **no cash receipts** from recent licensing agreements[352](index=352&type=chunk) - **Operating expenses decreased by 22% to $2,987,988**, primarily due to a **$694,120 decrease** in stock-based compensation expenses[353](index=353&type=chunk) - **Net loss decreased by 18% to $3,277,023**, mainly driven by the decrease in operating expenses[356](index=356&type=chunk) [Asset Recognition and Investment Reclassification](index=71&type=section&id=Asset%20Recognition%20and%20Investment%20Reclassification) This section details the recognition of new assets and the reclassification of certain investments on the Company's balance sheet - On March 31, 2025, the Company recognized the **acquisition of land** in Puli, Taiwan, with a **carrying value of approximately $7.67 million**, intended for health-related business development[357](index=357&type=chunk) - Amounts previously classified as 'Due from Related Parties' were **reclassified** to 'Long-Term Investments' to reflect the **strategic nature** and **expected holding period** of the investment in Rgene Corporation[357](index=357&type=chunk) [Liquidity and Capital Resources](index=71&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the Company's liquidity position, working capital, and sources and uses of capital Working Capital (Deficit) | Metric | June 30, 2025 | December 31, 2024 | | :----------------------- | :------------ | :---------------- | | Current Assets | **$2,770,401** | **$2,179,815** | | Current Liabilities | **$6,532,514** | **$6,557,461** | | **Working Capital (Deficit)** | **$(3,762,113)**| **$(4,377,616)** | - The Company reported a **net loss of $3,277,023** and a **working capital deficit of $3,762,113** for the six months ended June 30, 2025, raising **substantial doubt** about its ability to continue as a **going concern**[359](index=359&type=chunk) - **Net cash used in operating activities increased by 23% to $1,434,007** for the six months ended June 30, 2025, primarily due to an **increase** in amounts due from related parties[362](index=362&type=chunk)[363](index=363&type=chunk) - **Net cash provided by financing activities increased by 37% to $2,356,083**, driven by proceeds from **private offerings** and **warrant exercises**, partially offset by **short-term loan repayments**[362](index=362&type=chunk)[365](index=365&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=73&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, ABVC BioPharma, Inc. is not required to provide quantitative and qualitative disclosures about market risk - The Company is **exempt from providing** quantitative and qualitative disclosures about market risk as it qualifies as a smaller reporting company[367](index=367&type=chunk) [Item 4. Controls and Procedures](index=73&type=section&id=Item%204.%20Controls%20and%20Procedures) This section assesses the effectiveness of the Company's disclosure controls and internal control over financial reporting - Disclosure controls and procedures were deemed **ineffective** as of June 30, 2025, due to a **material weakness** in internal control over financial reporting[368](index=368&type=chunk) - The **material weakness** resulted in material misstatements in financial statements and a **restatement**, highlighting the inability to maintain effective controls[368](index=368&type=chunk) - Management is developing a plan to remediate the **material weakness**, including hiring personnel with requisite technical accounting knowledge[369](index=369&type=chunk) [PART II. OTHER INFORMATION](index=74&type=section&id=PART%20II%20OTHER%20INFORMATION) This section provides additional information not covered in the financial statements, including legal proceedings, equity sales, and exhibits [Item 1. Legal Proceedings](index=74&type=section&id=Item%201.%20Legal%20Proceedings) The Company is not currently a party to any legal proceedings that would individually or in aggregate have a material adverse effect on its business, financial condition, or results of operations - The Company is **not currently involved in any legal proceedings** whose adverse outcome would **materially affect** its business, financial condition, or results of operations[372](index=372&type=chunk) [Item 1A. Risk Factors](index=74&type=section&id=Item%201A.%20Risk%20Factors) As a smaller reporting company, ABVC BioPharma, Inc. is not required to provide the information typically included under this item - The Company is **exempt from providing risk factor disclosures** as it qualifies as a smaller reporting company[373](index=373&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=74&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the Company's unregistered sales of equity securities, primarily common stock, issued for various purposes - The Company issued **169,992 shares** of common stock for rent payable through July 2024, totaling **$127,494**, and continued to issue shares for rent payments in 2025[375](index=375&type=chunk) - Between April 11, 2025, and April 30, 2025, the Company conducted a **private offering** to non-U.S. investors, issuing **724,372 unregistered shares** for **$436,125**[376](index=376&type=chunk) - Additional **private offerings** between May 9, 2025, and June 20, 2025, resulted in the issuance of **2,865,628 shares** to non-U.S. persons, **raising approximately $1,473,250**[378](index=378&type=chunk)[379](index=379&type=chunk)[380](index=380&type=chunk)[381](index=381&type=chunk)[382](index=382&type=chunk) - The Company issued **117,277 shares** to employees as **compensation** in December 2024 and **90,277 shares** to an employee for **additional services** in April 2025[376](index=376&type=chunk)[378](index=378&type=chunk) [Item 3. Defaults Upon Senior Securities](index=75&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities reported by the Company - **No defaults upon senior securities** were reported[383](index=383&type=chunk) [Item 4. Mine Safety Disclosures](index=75&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the Company - Mine safety disclosures are **not applicable to the Company**[384](index=384&type=chunk) [Item 5. Other Information](index=75&type=section&id=Item%205.%20Other%20Information) No other material information or changes in Rule 10b5-1 trading arrangements were reported by officers or directors during the six months ended June 30, 2025 - **No officers or directors reported** the **adoption, modification, or termination** of any **Rule 10b5-1 or non-Rule 10b5-1 trading arrangements** during the six months ended June 30, 2025[385](index=385&type=chunk) [Item 6. Exhibits](index=76&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including various agreements, corporate documents, and certifications, many of which are incorporated by reference from previous SEC filings - The report includes a **comprehensive list of exhibits**, such as Share Exchange Agreements, Articles of Incorporation, Bylaws, Forms of Warrant, Collaboration Agreements, Securities Purchase Agreements, and various certifications[386](index=386&type=chunk)[387](index=387&type=chunk)

Financial Results - ABVC BioPharma, Inc. announced its financial results for the fiscal year ended December 31, 2024, in a press release issued on April 15, 2025[4]. Financial Misstatements - The company identified material misstatements in its financial statements for the fiscal year ended December 31, 2023, due to errors in accounting guidance and recognition of expenses[7]. - The misstatements affected key financial metrics including construction in progress, carrying value of convertible notes payable, and stock-based compensation[8]. - The company plans to file an amendment to its Annual Report on Form 10-K to address the identified errors and their impacts[9]. Internal Controls - ABVC BioPharma's Audit Committee has acknowledged a material weakness in its internal controls over financial reporting[10].

Financial Performance - Net loss for the three months ended March 31, 2025, was $944,190, a decrease from a net loss of $2.93 million for the same period in 2024, representing a 68% improvement[17]. - The company reported a gross loss of $928 for Q1 2024, with no revenues recorded for Q1 2025[17]. - For the three months ended March 31, 2025, the company reported a net loss of $944,190, with a working capital deficit of $5,261,178[30]. - The net loss for the three months ended March 31, 2024 was restated to $2,927,667, reflecting an improvement of $1,053,352 from the prior report[42]. - The net loss attributable to common stockholders for the three months ended March 31, 2025, was $842,075, compared to a net loss of $2,834,199 for the same period in 2024, resulting in a basic and diluted loss per share of $0.06[179]. Assets and Liabilities - Total assets increased to $14.88 billion as of March 31, 2025, compared to $7.54 billion at December 31, 2024, reflecting a growth of 97%[16]. - Total liabilities slightly increased to $6.92 billion as of March 31, 2025, compared to $6.82 billion at December 31, 2024, an increase of 2%[16]. - The company had total stockholders' equity of $5.40 billion as of March 31, 2025, up from $1.23 billion at December 31, 2024, an increase of 340%[16]. - The company’s accumulated deficit as of March 31, 2025, was $69,791,882[30]. - The total amount due from related parties decreased to $537,119 as of March 31, 2025, from $1,155,051 as of December 31, 2024, showing a decline of about 53.5%[152]. Cash Flow and Expenses - Cash flows from operating activities resulted in a net cash used of $539,833 for Q1 2025, compared to $955,816 for Q1 2024, a decrease of 44%[19]. - Operating expenses decreased to $693,005 for Q1 2025, down from $2.84 million in Q1 2024, indicating a reduction of 76%[17]. - Cash and cash equivalents decreased to $152,206 as of March 31, 2025, from $248,382 at December 31, 2024, a decline of 39%[16]. - The company incurred consulting fees of $68,141 for the three months ended March 31, 2025, significantly higher than $14,628 for the same period in 2024, reflecting an increase of about 366%[150]. - Total accrued expenses and other current liabilities increased to $3,826,819 as of March 31, 2025, compared to $3,509,422 as of December 31, 2024, reflecting a growth of approximately 9%[141]. Research and Development - Research and development expenses were $28,861 for Q1 2025, significantly lower than $69,066 in Q1 2024, a reduction of 58%[17]. - The Company has a co-development agreement with BHK to develop BLI-1401-2 for Triple Negative Breast Cancer, with development costs shared 50/50[82]. - The Company is conducting Phase II clinical trials for drugs ABV-1504 and ABV-1505, with interim analysis for ABV-1505 expected in December 2023[202]. - The Vitargus Phase II study was temporarily halted due to Serious Adverse Events (SAEs) observed in patients, with investigations ongoing to ensure safety before resuming[205]. - The Company is actively developing its pipeline by tracking new medical discoveries and collaborating with research institutions in the Asia-Pacific region[201]. Stock and Equity - The weighted average number of common shares outstanding increased to 14,968,232 in Q1 2025 from 9,736,150 in Q1 2024, an increase of 54%[17]. - The company issued 370,000 shares of common stock as consideration for acquiring 20% ownership of certain property, with a third-party valuation of $7,400,000[33]. - The Company issued 370,000 shares at a price of $1.87 per share for a total of $691,900 in connection with a cooperation agreement with Zhonghui[162]. - The Company granted 1,302,726 restricted shares to employees and directors under the 2016 Equity Incentive Plan as compensation for previous services[163]. - The Company has 386,021 stock options available for grant under the 2016 Equity Incentive Plan as of December 31, 2024, with no options granted during the three months ended March 31, 2025[176]. Agreements and Collaborations - The company acquired a controlling interest of 58.85% in AiBtl BioPharma, Inc. through a multi-year global licensing agreement, with potential royalties of 5% of net sales, up to $100 million[28]. - The Company entered into a definitive agreement with OncoX BioPharma, Inc. for exclusive rights to develop a botanical drug for Non-Small Cell Lung Cancer, with a total payment of $6.25 million and 5% royalties on net sales[111]. - The Company has entered into multiple agreements with OncoX BioPharma for the development of botanical drug extracts, each valued at $6.25 million, with additional milestone payments and royalties of 5% on net sales[211][212][213][214]. - The Company is exploring partnerships for Phase III studies upon successful completion of Phase II trials, targeting commercialization in the US and Taiwan[203]. - The Company has agreements with OncoX for the development of multiple botanical drug extracts, each with a total payment of $6.25 million and additional milestone payments of $625,000[112][113][114]. Debt and Financing - The Company entered into a securities purchase agreement with Lind, issuing a secured convertible note of $3,704,167, convertible at an initial price of $10.5 per share[129]. - Monthly payments of $308,651 are due to Lind starting six months after the issuance of the Lind Note, with options for payment in cash or shares[130]. - Total interest expenses related to the three Lind Notes were $209,372 for the three months ended March 31, 2025[136]. - The total principal amount of the 2nd LIND Note is $1,200,000, with an effective interest rate of 86.94% as of March 31, 2025[140]. - The Company recognized interest expenses of $4,963 and $5,938 for loans from shareholders for the three months ended March 31, 2025, and 2024, respectively[157]. Miscellaneous - The Company has not recorded any contingent liabilities from pending or threatened claims and litigation as of March 31, 2025[188]. - The Company is currently seeking a full-time Chief Financial Officer following the resignation of Leeds Chow, with the CEO serving as interim CFO[206]. - The Company has terminated an agreement for land acquisition in Taoyuan City, Taiwan, which involved the transfer of approximately $500,000 in liabilities[207]. - BioLite Holding has established a subsidiary, Yunzhiyi, which is 90% owned by BioLite Taiwan, to acquire land in Puli, Taiwan for health-related business development[198]. - The Company recognized expected credit losses of $839,983 for BioFirst (Australia) due to deteriorating business conditions, ceasing to accrue interest income[154].

Revenue and Financial Performance - For the year ended December 31, 2024, the Company generated $509,589 in revenue, primarily from outlicensing intellectual property and providing CDMO services [250]. - Revenue for the year ended December 31, 2024, was $509,589, a 234% increase from $152,430 in 2023, primarily due to outlicensing of intellectual properties [443]. - Gross profit for 2024 was $508,826, compared to a gross loss of $149,607 in 2023, reflecting a change of $658,433 [443]. - Operating expenses decreased to $5,214,068 in 2024 from $6,617,127 in 2023, a reduction of approximately 21% [444]. - Loss from operations improved to $(4,705,242) in 2024, a decrease of $2,061,492 or 30% from $(6,766,734) in 2023 [443]. - Net loss for 2024 was $5,259,037, down $3,021,807 or 36% from $8,280,844 in 2023, attributed to more cost-efficient funding and discontinuation of certain consulting services [447]. - Other expense decreased to $664,334 in 2024 from $1,258,104 in 2023, primarily due to reduced interest expenses [445]. - Interest expense for 2024 was $(738,541), a decrease of $389,649 or approximately 35% from $(1,128,190) in 2023 [446]. - Stock-based compensation expenses for employees totaled $1,995,049 in 2024, compared to $0 in 2023 [429]. - Total employee benefits expenses were $11,642 in 2024, up from $10,314 in 2023, reflecting the mandated contribution of 6% of employees' salaries [428]. Clinical Trials and Product Development - The Company is currently conducting Phase II clinical trials for ABV-1701 (medical device) and ABV-1505 (ADHD drug) in collaboration with various institutions in Australia and the United States [254]. - The Company plans to seek a partner for Phase III studies and NDA submission upon successful completion of Phase II trials [255]. - The Company initiated a Phase II study for Vitargus® in Australia and Thailand, with the study starting in Q2 2023 [278]. - ABV-2002, a solution for storing donor corneas, is being developed to maintain corneal transparency and prevent swelling, with early tests indicating it may be more effective than current storage media [279][280]. - The Company is advancing to the pivotal trial phase of ABV-1701 Vitargus® for the treatment of retinal detachment or vitreous hemorrhage, which is expected to generate future revenues [324]. - The Company has completed Phase II, Part 2 clinical trial for ABV-1505 for the treatment of attention deficit hyperactivity disorder (ADHD) [324]. - The Company plans to conduct Phase I and II clinical trials for investigational new drugs and medical devices in CNS, Hematology/Oncology, and Ophthalmology [320]. - The Company expects to build a substantial portfolio of Oncology/Hematology, CNS, and Ophthalmology products through an assertive product development approach [321]. Collaborations and Agreements - The Company entered into a cooperation agreement with Zhonghui United Technology, acquiring a 20% ownership of certain property for 370,000 shares at $1.87 per share [258]. - The Company and Zhonghui plan to develop a healthcare center focusing on ophthalmology, oncology, and central nervous systems, targeting the China market [259]. - A multi-year global licensing agreement was signed with AiBtl for CNS drugs, valued at $667 million, with potential royalties of 5% on net sales [262]. - The Company has entered into multiple agreements with OncoX BioPharma for the development of botanical drug extracts, with upfront payments of $6,250,000 and royalties of 5% on net sales [265][266][267]. - The Company has a co-development agreement with Rgene Corporation, which includes a payment of $3 million for past research efforts and a 50% share of future net licensing income [335]. - The Company has a collaborative agreement with BioFirst Corporation, granting global licensing rights to medical use of ABV-1701 Vitreous Substitute for Vitrectomy [346]. - The Company will pay BioFirst a total of $3,000,000 for past research efforts, with future net licensing revenue shared equally [347]. - The Company entered into a Joint Venture Agreement with BioLite Japan K.K. to co-develop drugs and medical devices, with the Company owning 49% of Biolite JP [356]. Stock and Compliance - A 1-for-10 reverse stock split was authorized to reduce the number of outstanding shares and potentially increase the trading value [270]. - The company regained compliance with Nasdaq Listing Rule 5550(a)(2) after the closing bid price of its common stock was at least $1.00 for 10 consecutive business days from July 25, 2023, to August 7, 2023 [274]. - As of March 31, 2023, the company's stockholders' equity was $1,734,507, below the required minimum of $2,500,000, prompting a deficiency letter from Nasdaq [275]. - The company increased its stockholders' equity by approximately $10.65 million through various transactions, including issuing 300,000 shares and entering a cooperation agreement with Zhonghui United Technology [275]. - The company has been actively monitoring its stock price to avoid delisting and has until January 6, 2025, to regain compliance with Nasdaq's minimum bid price requirement [276][277]. Financial Restatements and Adjustments - The Company restated its financial statements for the year ended December 31, 2023, to correct misstatements related to share-based payments and convertible debts [372]. - The company overstated interest expenses by $1,179,667 for the year ended December 31, 2023, due to misapplication of accounting standards [375]. - Stock-based compensation expenses were reversed by $902,960 for the year ended December 31, 2023, impacting the accumulated deficit [378]. - The total assets were restated from $14,492,599 to $7,784,499 as of December 31, 2023, reflecting significant adjustments [380]. - The net loss attributable to the company was adjusted from $(10,910,288) to $(8,280,844) for the year ended December 31, 2023 [380]. Asset Management and Investments - The Company acquired land to support its product pipeline and reduce costs, ensuring quality control for botanical drug raw materials [269]. - The fair value of the acquired real estate assets is estimated at $7,400,000, with adjustments leading to a reduction of $6,708,100 in recognized assets for 2023 [374]. - The allowance for expected credit losses was $616,505 as of December 31, 2023 [399]. - Non-marketable equity investments are assessed for impairment based on qualitative and quantitative factors, impacting their valuation [421]. - Convertible notes payable are evaluated for embedded conversion features, with proceeds allocated between debt and equity components [422]. - Marketable equity investments are measured at fair value, with unrealized gains and losses recognized in net income [423].

Company Overview - ABVC BioPharma, Inc. is a clinical-stage biopharmaceutical company focused on innovative treatments in ophthalmology, CNS, and oncology/hematology [1] - The company has an active pipeline of six drugs and one medical device under development, utilizing inlicensed technology from renowned research institutions [5] Product Development - ABVC's ABV-1504, containing the active pharmaceutical ingredient Radix Polygala (PDC-1421), aims to address the gap left by the discontinuation of Prozac, particularly in treating Major Depressive Disorder (MDD) and Attention Deficit Hyperactivity Disorder (ADHD) [1][3] - PDC-1421 has completed Phase II clinical trials and is progressing towards Phase III trials globally, with patents approved in the USA and other countries valid until 2041 [1] Market Opportunity - The global MDD market is projected to grow from $11.51 billion in 2022 to $14.96 billion by 2032, with a CAGR of 2.8% [4] - The global ADHD treatment market is expected to increase from $15.23 billion in 2022 at a CAGR of 7.3% through 2032 [4] - The global botanical drug market, valued at $163 million in 2021, is forecasted to grow at a CAGR of 39% through 2030, reaching $3.2 billion [4] Competitive Advantage - ABV-1504 is positioned as a safer and more effective alternative to traditional antidepressants like Prozac, with a favorable safety profile and fewer side effects [3] - Internal studies indicate that PDC-1421 achieved a MADRS score reduction of -13.21 from baseline over 6 weeks, with a placebo-subtracted difference of -4.1, demonstrating significant efficacy in treating MDD [3]

Company Overview - ABVC BioPharma, Inc. is a clinical-stage biopharmaceutical company focused on developing therapeutic solutions in ophthalmology, central nervous system (CNS), and oncology/hematology [1] - The company has an active pipeline consisting of six drugs and one medical device (ABV-1701/Vitargus®) under development [2] - ABVC utilizes in-licensed technology from prestigious research institutions, including Stanford University, University of California at San Francisco, and Cedars-Sinai Medical Center, to conduct proof-of-concept trials through Phase II of clinical development [2] Recent Developments - ABVC announced a $200,000 cash payment from OncoX BioPharma Inc. as part of a strategic licensing agreement for oncology-related products, marking the first installment of a potential $5 million in licensing fees [1] - The total cash payments received by ABVC from its three strategic partners for licensing various products now amount to $546,000 [1] - ABVC and its subsidiaries are eligible to receive up to 10 million OncoX shares, an additional $5 million cash payment, and royalties up to $50 million after product launches [1] Market Position - The global cancer therapeutics market is projected to reach $393.61 billion by 2032, growing at a compound annual growth rate (CAGR) of 9.20% [1] - ABVC is strategically positioned to capitalize on this rapidly expanding market, reinforcing its competitive position within the oncology landscape [1]

Financial Performance - ABVC BioPharma achieved its first operational profit in Q3 2024, with a 102% improvement over the same quarter last year[1] - Revenue for Q3 2024 reached $389,276, a significant increase from $15,884 in Q3 2023, reflecting strong demand for CNS and oncology R&D services[2] - The net loss for Q3 2024 decreased to $134,272 from $3.37 million in Q3 2023, indicating effective financial management[3] - Earnings per share (EPS) improved to $(0.02) in Q3 2024, a notable advancement from $(0.82) per share in Q3 2023[4] - Cash and cash equivalents increased to $137,344 as of September 30, 2024, up from $60,155 at the end of 2023[5] Strategic Partnerships and Licensing - ABVC secured long-term licensing agreements that could generate up to $292 million in income, including $187 million from ForSeeCon Eye Corporation for Vitargus[9] Clinical Development and Regulatory Progress - The company completed Phase II trials for ABV-1504 in Major Depressive Disorder and is preparing for an FDA End-of-Phase 2 meeting[7] - ABVC's first-in-class vitreous substitute, Vitargus, is advancing through regulatory stages with approvals for further trials in Australia[8] Intellectual Property and Future Growth - The company has been granted multiple patents in the U.S., Taiwan, and Australia, enhancing its intellectual property portfolio[10] - ABVC anticipates further revenue growth through strategic collaborations and ongoing clinical developments in CNS, oncology, and ophthalmology programs[12]

Financial Performance - Total revenues for the three months ended September 30, 2024, were $389,276, a significant increase from $15,884 in the same period of 2023[11] - The gross profit for the nine months ended September 30, 2024, was $506,860, compared to a loss of $12,566 in the same period of 2023[11] - The net loss attributable to ABVC and subsidiaries for the three months ended September 30, 2024, was $186,561, compared to a loss of $3,317,516 in the same period of 2023[11] - Net loss for the nine months ended September 30, 2024, was $5,387,980, an improvement from a net loss of $7,580,535 for the same period in 2023, representing a 29% reduction[13] - The net loss attributable to common stockholders for the three months ended September 30, 2024, was $186,561, compared to a loss of $3,317,516 for the same period in 2023[168] - The net loss attributable to common stockholders for the nine months ended September 30, 2024, was $5,132,182, compared to $7,404,722 for the same period in 2023[169] Assets and Liabilities - Total current assets increased to $2,148,327 as of September 30, 2024, compared to $1,656,709 as of December 31, 2023, representing a growth of approximately 29.6%[9] - Cash and cash equivalents increased to $137,344 as of September 30, 2024, from $60,155 as of December 31, 2023, reflecting a growth of approximately 128.5%[9] - Total liabilities decreased to $6,483,523 as of September 30, 2024, from $6,361,627 as of December 31, 2023, showing a slight increase of 1.9%[9] - The accumulated deficit increased to $(70,552,277) as of September 30, 2024, from $(65,420,095) as of December 31, 2023[9] - The company had net cash outflows of $1,315,534 from operating activities for the nine months ended September 30, 2024[25] Cash Flow and Financing Activities - Cash used in operating activities decreased to $1,315,534 for the nine months ended September 30, 2024, compared to $3,756,385 for the same period in 2023, indicating a 65% improvement[13] - The company reported a net cash provided by financing activities of $1,399,313 for the nine months ended September 30, 2024, down from $3,831,540 in the same period of 2023, a decrease of 64%[13] - The issuance of common stock for cash amounted to $1,050,000 during the nine months ended September 30, 2023[16] - The Company issued 300,000 shares of common stock at a price of $3.50 per share, resulting in gross proceeds of $1,750,000 from a registered direct offering[145] Stock-Based Compensation - Stock-based compensation increased significantly to $2,957,736 for the nine months ended September 30, 2024, compared to $1,409,969 for the same period in 2023, marking a 109% increase[13] - Total employee stock-based compensation expenses for the nine months ended September 30, 2024, were $1,935,756, compared to $0 for the same period in 2023[64] - Total non-employee stock-based compensation expenses for the nine months ended September 30, 2024, were $1,021,980, down from $1,409,969 for the same period in 2023[65] Revenue Recognition - The Company recognizes revenue from collaborative agreements upon satisfaction of performance obligations, with no royalty revenues received to date[48] - The Company evaluates milestone payments under collaborative agreements, recognizing revenue when the underlying triggering event occurs[53] - The Company recognizes revenues related to research and development services when the related activities are performed[59] - The Company applies ASC 606 for revenue recognition, ensuring that revenue is recognized when performance obligations are satisfied[46] Licensing Agreements and Collaborations - The company entered into a multi-year, global licensing agreement for CNS drugs with AiBtl, receiving 23 million shares of AIBL stock[24] - BioLite Taiwan has a milestone payment agreement with BHK totaling $10 million, with specific payments tied to clinical trial phases and regulatory submissions[71] - The Company entered into a definitive agreement with OncoX BioPharma, Inc. for exclusive rights to develop and commercialize a botanical drug extract for Non-Small Cell Lung Cancer, with expected payments totaling $6,250,000 and 5% royalties on net sales[101] - The Company has entered into multiple licensing agreements with OncoX for various botanical drug extracts, each with a total payment of $6,250,000 and additional milestone payments of $625,000[101] Debt and Interest Expenses - The principal amount of the secured convertible note issued to Lind Global Fund II, LP is $3,704,167, convertible at an initial price of $10.5 per share[110] - The total interest expenses related to convertible notes were $209,022 for the three months ended September 30, 2024, compared to $1,198,290 for the same period in 2023[119] - The effective interest rate for the Cathay United Bank loan was 3.01% as of September 30, 2024, compared to 2.87% at the end of 2023[123] Operational Developments - The Company plans to initiate Phase I/II clinical studies for drug ABV-1601 in cancer patients in Q4 2024, indicating ongoing investment in drug development[198] - The Construction-in-progress is expected to be completed before the end of 2024[105] Corporate Structure and Ownership - BioLite was incorporated in Nevada with 500,000,000 shares authorized, par value $0.0001[205] - BioLite Taiwan, a key subsidiary, has been developing new drugs for over ten years[205] - BioLite and BioLite BVI are holding companies and have not conducted substantive business operations of their own[206]