Revenue and Financial Performance - For the year ended December 31, 2024, the Company generated 509,589inrevenue,primarilyfromoutlicensingintellectualpropertyandprovidingCDMOservices[250].−RevenuefortheyearendedDecember31,2024,was509,589, a 234% increase from 152,430in2023,primarilyduetooutlicensingofintellectualproperties[443].−Grossprofitfor2024was508,826, compared to a gross loss of 149,607in2023,reflectingachangeof658,433 [443]. - Operating expenses decreased to 5,214,068in2024from6,617,127 in 2023, a reduction of approximately 21% [444]. - Loss from operations improved to (4,705,242)in2024,adecreaseof2,061,492 or 30% from (6,766,734)in2023[443].−Netlossfor2024was5,259,037, down 3,021,807or368,280,844 in 2023, attributed to more cost-efficient funding and discontinuation of certain consulting services [447]. - Other expense decreased to 664,334in2024from1,258,104 in 2023, primarily due to reduced interest expenses [445]. - Interest expense for 2024 was (738,541),adecreaseof389,649 or approximately 35% from (1,128,190)in2023[446].−Stock−basedcompensationexpensesforemployeestotaled1,995,049 in 2024, compared to 0in2023[429].−Totalemployeebenefitsexpenseswere11,642 in 2024, up from 10,314in2023,reflectingthemandatedcontributionof61.87 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 667million,withpotentialroyaltiesof56,250,000 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 3millionforpastresearcheffortsanda503,000,000 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 1.00for10consecutivebusinessdaysfromJuly25,2023,toAugust7,2023[274].−AsofMarch31,2023,thecompany′sstockholders′equitywas1,734,507, below the required minimum of 2,500,000,promptingadeficiencyletterfromNasdaq[275].−Thecompanyincreaseditsstockholders′equitybyapproximately10.65 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 1,179,667fortheyearendedDecember31,2023,duetomisapplicationofaccountingstandards[375].−Stock−basedcompensationexpenseswerereversedby902,960 for the year ended December 31, 2023, impacting the accumulated deficit [378]. - The total assets were restated from 14,492,599to7,784,499 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,withadjustmentsleadingtoareductionof6,708,100 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].
