ABVC BioPharma(ABVC) - 2024 Q3 - Quarterly Report

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$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$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]