ABVC BioPharma, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>ABVC BioPharma, Inc. has filed its 2023 Form 10-K, detailing its fiscal year-end financial and operational status.</b>

AI Summary

ABVC BIOPHARMA, INC. (ABVC) filed a Annual Report (10-K) with the SEC on March 13, 2024. ABVC BioPharma, Inc. filed its annual report on Form 10-K for the fiscal year ended December 31, 2023. The company is incorporated in Nevada and its principal executive offices are located at 44370 Old Warm Springs Blvd., Fremont, CA 94538. ABVC BioPharma's common stock, par value $0.001 per share, is traded on The Nasdaq Stock Market LLC under the symbol ABVC. The company has confirmed it has filed all required reports for the preceding 12 months and has been subject to filing requirements for at least the past 90 days. ABVC BioPharma has submitted electronically every Interactive Data File required by Rule 405 of Regulation S-T during the preceding 12 months.

Why It Matters

For investors and stakeholders tracking ABVC BIOPHARMA, INC., this filing contains several important signals. This filing provides a comprehensive overview of ABVC BioPharma's financial performance, business operations, and risk factors for the fiscal year 2023, crucial for investors to assess the company's current standing and future prospects. As a publicly traded company on Nasdaq, the 10-K filing is a mandatory disclosure that ensures transparency and compliance with SEC regulations, offering stakeholders detailed insights into the company's governance and strategic direction.

Risk Assessment

Risk Level: low — ABVC BIOPHARMA, INC. shows low risk based on this filing. The filing is a standard annual report (10-K) and does not contain new material events or significant financial disclosures that would indicate a change in risk profile.

Analyst Insight

Investors should review the full 10-K filing for detailed financial statements, management's discussion and analysis, and risk factors to form an informed opinion on ABVC BioPharma's performance and outlook.

Key Numbers

• 2023-12-31 — Fiscal Year End (Period covered by the 10-K report)
• 2024-03-13 — Filing Date (Date the 10-K was filed)
• 001-40700 — Commission File Number (SEC file number for ABVC BioPharma)
• 26-0014658 — IRS Number (Employer Identification Number)

Key Players & Entities

• ABVC BIOPHARMA, INC. (company) — Filer name
• ABVC (company) — Trading Symbol
• The Nasdaq Stock Market LLC (company) — Exchange where common stock is registered
• 2023-12-31 (date) — Fiscal year end
• 2024-03-13 (date) — Filing date
• Nevada (jurisdiction) — State of incorporation
• 44370 Old Warm Springs Blvd. (address) — Principal executive offices
• 001-40700 (filing_id) — Commission file number

FAQ

Industry Context

ABVC BioPharma operates in the pharmaceutical preparations industry, focusing on the development and commercialization of biopharmaceutical products.

Regulatory Implications

As a publicly traded company, ABVC BioPharma is subject to the reporting requirements of the Securities Exchange Act of 1934, including the filing of annual reports on Form 10-K.

What Investors Should Do

1. Review the complete Form 10-K for detailed financial statements and disclosures.
2. Analyze the 'Risk Factors' section for potential challenges and uncertainties facing the company.
3. Compare ABVC BioPharma's 2023 performance against previous years and industry benchmarks.

Year-Over-Year Comparison

This is the initial extraction of the 2023 10-K filing; a comparison to the prior year's filing would require access to that document.

Key Financial Figures

• $0.001 — ich registered Common Stock, par value $0.001 per share ABVC The Nasdaq Stock Market
• $3.0 million — exchange for the commitment to purchase $3.0 million of the new product over three years. N
• $6.30 — mon stock at an exercise price equal to $6.30 per share, exercisable until the fifth
• $10.00 — mon stock at an exercise price equal to $10.00 per share, exercisable until the fifth
• $6.25 — n Statement"). The Units were priced at $6.25 per Unit, before underwriting discounts
• $6,875,000 — xpenses, resulting in gross proceeds of $6,875,000. The Offering was conducted on a firm c
• $1.00 — our common stock was below the minimum $1.00 per share required for continued listin
• $2,500,000 — intain stockholders' equity of at least $2,500,000, and the Company's stockholders' equity
• $1,734,507 — the Company's stockholders' equity was $1,734,507 as of March 31, 2023. In accordance wit
• $0.01 — unded warrants, at an exercise price of $0.01 per share, in a registered direct offer
• $1.75M — e stockholders' equity was increased by $1.75M. On August 1, 2023, $500,000 of Notes w
• $500,000 — increased by $1.75M. On August 1, 2023, $500,000 of Notes were converted at $3.50 per sh
• $3.50 — 23, $500,000 of Notes were converted at $3.50 per share and the holder received 142,8
• $0.5M — e stockholders' equity was increased by $0.5M. Additionally, on August 14, 2023, the
• $7.4M — ngly, stockholders' equity increased by $7.4M. On February 23, 2023, the Company ente

Filing Documents

• ea0201142-10k_abvcbio.htm (10-K) — 1863KB
• ea0201142ex21-1_abvcbiophar.htm (EX-21.1) — 5KB
• ea0201142ex31-1_abvcbiophar.htm (EX-31.1) — 12KB
• ea0201142ex31-2_abvcbiophar.htm (EX-31.2) — 12KB
• ea0201142ex32-1_abvcbiophar.htm (EX-32.1) — 5KB
• ea0201142ex32-2_abvcbiophar.htm (EX-32.2) — 5KB
• image_001.jpg (GRAPHIC) — 67KB
• image_002.jpg (GRAPHIC) — 20KB
• image_003.jpg (GRAPHIC) — 5KB
• image_004.jpg (GRAPHIC) — 2KB
• 0001213900-24-022235.txt (&nbsp;) — 8800KB
• abvc-20231231.xsd (EX-101.SCH) — 78KB
• abvc-20231231_cal.xml (EX-101.CAL) — 47KB
• abvc-20231231_def.xml (EX-101.DEF) — 399KB
• abvc-20231231_lab.xml (EX-101.LAB) — 687KB
• abvc-20231231_pre.xml (EX-101.PRE) — 400KB
• ea0201142-10k_abvcbio_htm.xml (XML) — 833KB

Business

Business 3 Item 1A.

Risk Factors

Risk Factors 19 Item 1B. Unresolved staff comments 43 Item 1C. Cybersecurity 43 Item 2.

Properties

Properties 43 Item 3.

Legal Proceedings

Legal Proceedings 43 Item 4. Mine Safety Disclosures 43 Part II Item 5. Market for Registrant's Common Equity, Related Stockholders Matters and Issuer Purchases of Equity Securities 44 Item 6. [Reserved] 45 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 45 Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 67 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data F-1 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 68 Item 9A.

Controls and Procedures

Controls and Procedures 68 Item 9B. Other Information 69 Item 9C. Disclosure Regarding Foreign Jurisdictions That Prevent Inspections 69 Part III Item 10. Directors, Executive Officers and Corporate Governance 70 Item 11.

Executive Compensation

Executive Compensation 77 Item 12. Securities Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 80 Item 13. Certain Relationships and Related Transactions, and Director Independence 81 Item 14. Principal Accountant Fees and Services 83 Part IV Item 15. Exhibits, Financial Statement Schedules 84 Item 16. Form 10-K Summary 87

Signatures

Signatures 88 i CONVENTIONS Except where the context otherwise requires and for purposes of this annual report only: "APR" or "annual percentage rate" refers to the annual rate that is charged to borrowers, including a fixed interest rate and a transaction fee rate, expressed as a single percentage number that represents the actual yearly cost of borrowing over the life of a loan; "BioKey" means BioKey, Inc. refers to a California corporation and wholly-owned subsidiary of ABVC; "BioLite" means BioLite Holding, Inc. refers to a Nevada corporation and a wholly-owned subsidiary of ABVC; The "Board" or "Board of Directors" refers to the board of directors of the Company; "CDMO" refers to the Contract Development& Manufacturing Organization services BioKey provides, such as a API characterization, pre-formulation studies, formulation development, analytical method development, stability studies, IND/NDA/ANDA/510K submissions, and manufacturing clinical trial materials (phase I through phase III) and commercial manufacturing. "China" and "P.R.C." refer to the People's Republic of China, including Hong Kong Special Administrative Region and the Macau Special Administrative Region, unless referencing specific laws and regulations adopted by the PRC and other legal or tax matters only applicable to mainland China, excluding Taiwan for purposes of this report; "Common Stock" is the Common Stock of ABVC Biopharma, Inc., par value US$0.001 per share; "Lind" refers to Lind Global Fund II, LP; "Merger Agreement" means the Agreement and Plan of Merger dated as of January 31, 2018, pursuant to which the Company, BioLite, BioKey, "BioLite Acquisition Corp." a Nevada corporation, and BioKey Acquisition Corp." a California corporation completed a business combination on February 8, 2019 where ABVC acquired BioLite and BioKey via the issuance of additional shares of Common Stock to the shareholders of BioLite and BioKey; "Series A Convertible Preferred Stock" is the S

DESCRIPTION OF BUSINESS

ITEM 1. DESCRIPTION OF BUSINESS Industry Overview The biotechnology industry focuses on developing breakthrough products and technologies to combat various diseases through efficient industrial manufacturing. Biotechnology is an important business sector in the world's economies and is vital to human health. Companies engaged in biotechnology generally require large amounts of capital investment for their research & development activities. Developing and commercializing a new drug or medical device may take up to tens of years. ABVC ("we" or the "Company") is an early stage biotechnology company with a pipeline of seven new drugs and one medical device under development, all of which are licensed from related parties of the Company. Our Mission We devote our resources to building a sophisticated biotech company and becoming a pioneer in the biopharmaceutical industry. Dr. Uttam Patil, our Chief Executive Officer, and Dr. Tsung-Shann Jiang, the founder and majority shareholder of the Company, understand the challenges and opportunities of the biotech industry and intend to provide therapeutic solutions to significant unmet medical needs and to improve health and quality of human life by developing innovative botanical drugs to treat central nervous system ("CNS") and oncology/ hematology diseases.

Business

Business As of the date of this Report, the Company's minimal revenue has come from selling CDMO services through BioKey. However, the Company focuses on developing a product pipeline by carefully tracking new medical discoveries or medical device technologies in research institutions in the Asia-Pacific region. Pre-clinical, disease animal model and Phase I safety studies are examined closely by the Company's scientists and other specialists known to the Company to identify drugs or medical devices that it believes demonstrate efficacy and safety based on the Company's internal qualifications. Once a drug or medical device is shown to be a good candidate for further development and ultimately commercialization, ABVC licenses the drug or medical device from the original researchers and introduces the drug or medical device clinical trial plan to highly respected principal investigators in the United States, Australia and Taiwan. In almost all cases, ABVC has found that research institutions in each country are eager to work with the Company to move forward with Phase II clinical trials. Institutions that have or are now conducting phase II clinical trials in partnership with ABVC include: Drug: ABV-1504, Major Depressive Disorder (MDD), Phase II completed. NCE drug Principal Investigators: Charles DeBattista M.D. and Alan F. Schatzberg, MD, Stanford University Medical Center, Cheng-Ta Li, MD, Ph.D – Taipei Veterans General Hospital Drug: ABV-1505, Adult Attention-Deficit Hyperactivity Disorder (ADHD), Phase II Part 1 completed. Principal Investigators: Keith McBurnett, Ph.D. and Linda Pfiffner, Ph.D., University of California San Francisco (UCSF), School of Medicine. Phase II, Part 2 clinical study sites include UCSF and 5 locations in Taiwan. The Principal Investigators are Keith McBurnett, Ph.D. and Linda Pfiffner, Ph.D., University of California San Francisco (UCSF), School of Medicine; Susan Shur-Fen Gau, M.D., National Taiwan University Hospital; Xinzhang

View Full Filing

View this 10-K filing on SEC EDGAR