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Acro Biomedical (ACBM) Reports Fiscal 2018 Annual Operating Results

FISHERS, Ind., Dec. 28, 2018 (GLOBE NEWSWIRE) -- Acro Biomedical Co., Ltd. (“Acro Biomedical” or the “Company”) (OTC Pink: ACBM), a company focused on developing and marketing products that promote wellness and a healthy lifestyle, today reported financial results for the year ended September 30, 2018 as summarized below.

Full Fiscal 2018 Highlights:

  • The Company generated revenue of $8.0 million.
  • Company achieved record gross profit in fiscal year 2018 with $0.83 million.
  • The Company generated Positive net income of $0.42 million.

Revenue for the year ended September 30, 2018 was $8.0 million, representing an increase of $7.5 million compared to $510,000 for the year ending September 30, 2017. The Company did not generate any revenue prior to the fourth quarter of the year ended September 30, 2017.  All sales efforts to date have resulted from the sales efforts by the Company’s chief executive officer, who is the Company’s only employee.  All sales in the year ended September 30, 2018 resulted from sales to two customers, one of which was the Company’s sole customer in the prior year.  

Gross profit margin increased from 10% to 10.4%. Due to the increase in total revenue, gross profit, or total revenue net of costs of revenue, for the year ending September 30, 2018 was $833,400 compared to $51,000 for the year ending September 30, 2017 for an increase of $782,400.

Total operating expenses increased from $53,248 in the prior year to $317,850 for the year ended September 30, 2018. A majority of the increase was due to an increase in professional fees and consulting fees, a significant portion of which were paid through the issuance of stock.

Net income increased to $419,660, or $0.01 per share (basic and diluted) for the year ended September 30, 2018 as compared with a loss of $2,248 or $(0.00) per share (basic or diluted) for the year ended September 30, 2017.

Pao-Chi Chu, Acro Biomedical’s Chief Executive Officer, commented, “We believe that our revenue and net income for the year ended September 30, 2018 show that there is a market for our products.  We are hoping to expand our customer base and work on product development during the current year.”

About Acro Biomedical

Acro Biomedical is in the business of developing and marketing nutritional products that promote wellness and a healthy lifestyle.  All of the Company’s sales to date have been sales of cordyceps related products and, commencing in the second quarter of the year ended September 30, 2018, metallothionein MT-3 elizer.  The Company may also seek to market other products which it sees as complementary to its present products and conduct research and development on our own proprietary products based on cordyceps sinensis. Cordyceps is a fungus that is used in traditional Chinese medicine. Cordyceps sinensis has been described as a medicine in old Chinese medical books and Tibetan medicine.  It is a rare combination of a caterpillar and a fungus and found at altitudes above 4500m in Sikkim. Metallothionein MT-3 elizer is a protein that, in powder form, is used in health supplements.  Our website is http://www.acrobiomedicalco.com.  Information on or derived from our website or any other website is not part of this press release.

Safe Harbor Statement:

This release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Such statements include any that may predict, forecast, indicate, or imply future results, performance or achievements, and may contain the words “estimate”, “project”, “intend”, “forecast”, “anticipate”, “plan”, “planning”, “expect”, “believe”, “likely”, “should”, “could”, “would”, “may” or similar words or expressions. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the company’s actual results and financial position to differ materially from those in such statements, which involve risks and uncertainties, including its ability to develop and market any products and raise any funding required for its operations, and the effect of the stock being trading on the OTCQB upon the market for or the market price of the Company’s common stock. Actual results may differ materially from those predicted and any reported should not be considered an indication of future performance. Potential risks and uncertainties include, but are not limited to, the Company’s operating history and resources, its ability to increase its customer base from its present two customers and its supplier base from its present two suppliers, its ability to market or develop new products; the existence of a market in the United States for products being developed for that market, the development of a market for our common stock, our ability to raise any funds required for our business and  economic, competitive and equity market conditions and the risks contained under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Form 10-K for the year ended September 30, 2018 and the Company’s other filings with the Securities and Exchange Commission.

ACRO BIOMEDICAL CO., LTD.
Statements of Operations 

    Year Ended  
    September 30,  
    2018     2017  
             
Revenues   $ 8,014,500     $ 510,000  
Cost of revenues     7,181,100       459,000  
Gross profit     833,400       51,000  
                 
Operating expenses                
General and administrative     317,850       53,248  
Total operating expenses     317,850       53,248  
                 
Other expense                
Interest expense - related party     3,663       -  
Total other expenses     3,663       -  
                 
Income (loss) before provision for income taxes     511,887       (2,248 )
Provision for income taxes     92,227       -  
Net income (loss)   $ 419,660     $ (2,248 )
                 
Basic and dilutive income (loss) per share of common stock   $ 0.01     $ (0.00 )
                 
Weighted average number of shares of common stock outstanding     47,661,235       47,173,699  

The notes contained in our Annual Report on Form 10-K are an integral part of these consolidated financial statements.


ACRO BIOMEDICAL CO., LTD.
Balance Sheets

    September 30,     September 30,  
    2018     2017  
             
ASSETS            
Current Assets            
Cash and cash equivalents   $ 1,148     $ 36,810  
Inventories     1,146,600       -  
Purchase deposit to vendor     -       481,000  
Prepaid expenses     330,089       30,500  
Total Current Assets     1,477,837       548,310  
                 
Security deposit     4,992       -  
                 
TOTAL ASSETS   $ 1,482,829     $ 548,310  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY                
                 
Current Liabilities                
Accounts payable and accrued expenses   $ 7,312     $ 600  
Income tax payable     92,227       -  
Due to related parties     141,136       36,379  
Total Current Liabilities     240,675       36,979  
                 
TOTAL LIABILITIES     240,675       36,979  
                 
Stockholders’ Equity                
Preferred stock: 25,000,000 authorized; $0.001 par value; no shares issued and outstanding     -       -  
Common stock: 100,000,000 authorized; $0.001 par value; 47,760,000 and 47,660,000 shares issued and outstanding, respectively     47,760       47,660  
Additional paid-in capital     868,975       557,912  
Retained earnings (Accumulated deficit)     325,419       (94,241 )
Total Stockholders’ Equity     1,242,154       511,331  
                 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY   $ 1,482,829     $ 548,310  

The notes contained in our Annual Report on Form 10-K are an integral part of these consolidated financial statements

Media and Investor Contact:
Kao Cheng Hsiang
Acro Biomedical Co., Ltd.
(317) 286-6788
pr@acrobiomedicalco.com