Acro Biomedical Co Ltd (ACBM) Q1 2023 Earnings Report

Acro Biomedical reported a difficult start to 2023 with no reported revenue for QQ1 2023 (three months ended 2023-03-31) and a GAAP net loss of $4.00 million. The operating loss mirrors a heavy burn on non-cash and cash expenses, with notable drivers including R&D expense of $2.52 million and selling/general administrative expense of $1.483 million, alongside depreciation and amortization of $4.003 million and stock-based compensation of $3.928 million. The combination yields an operating loss of $4.003 million and a net loss of $4.004 million, while interest expense remains modest at $788 thousand. With minimal cash on hand ($322) and negative operating cash flow of $5.57 thousand, the company enters the period with a tight liquidity runway despite a relatively modest current ratio (2.59) and a very low perceived leverage (debt ratios remain subdued).

The balance sheet shows total assets of $656.9k against liabilities of $246.0k and stockholders’ equity of $410.9k. The company carries a small amount of short-term debt ($98.2k) and a larger accrued deficit (retained earnings of -$27.8m) along with accumulated other comprehensive income loss (-$4.13m), indicating a long-standing cumulative deficit typical of pre-revenue biotech ventures. The cash burn is being funded by external financing activity, though financing details for QQ1 2023 are not provided in the excerpt. Absent a revenue ramp or strategic partnerships, the near-term liquidity and ability to sustain ongoing R&D investment beyond the immediate quarter will be critical to watch.

Overall, the QQ1 2023 results underscore the high-risk, high-reward profile of Acro Biomedical: substantial cash outlays for R&D and infrastructure in a pre-revenue stage, limited liquidity, and a need for external funding or strategic milestones (e.g., regulatory progress, partnerships, or licensing arrangements) to extend runway and unlock value for shareholders.