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].
ABVC BioPharma(ABVC) - 2025 Q1 - Quarterly Report