ABVC BioPharma's Assets Soar 115% Amidst Continued Losses

TL;DR

**ABVC's asset boom is a mirage without revenue; stay away until they prove a path to profitability.**

AI Summary

ABVC BioPharma, Inc. reported a significant increase in total assets to $16,241,060 as of June 30, 2025, up from $7,539,907 at December 31, 2024, primarily driven by a substantial increase in property and equipment, net, to $8,215,366 from $511,088. The company experienced a net loss of $3,277,023 for the six months ended June 30, 2025, compared to a net loss of $3,975,079 for the same period in 2024, representing a 17.6% improvement. Revenue remained at $0 for the six months ended June 30, 2025, a decrease from $118,347 in the prior year period. Operating expenses decreased to $2,987,988 from $3,816,242 year-over-year, largely due to a reduction in stock-based compensation from $2,314,506 to $1,620,386. Cash and cash equivalents increased to $388,251 from $248,382, and total stockholders' equity surged to $9,489,733 from $723,959, bolstered by a $7,670,000 acquisition of land and $1,868,750 from private offerings. The company continues to operate at a net loss and has no revenue from product sales, relying on financing activities to fund operations and R&D.

Why It Matters

ABVC's substantial asset growth, particularly in property and equipment, signals a strategic shift towards tangible investments, potentially for future operational expansion or R&D facilities. However, the continued absence of revenue and persistent net losses raise concerns about the company's path to profitability and long-term sustainability for investors. The reliance on financing activities, including private offerings and warrant exercises totaling over $2.3 million in the last six months, indicates ongoing capital needs. This financial structure, coupled with a competitive biotech landscape, means investors should closely scrutinize the company's ability to monetize its drug development pipeline and generate sales to justify its increased asset base and reduce its accumulated deficit.

Risk Assessment

Risk Level: high — The company reported no revenue for the six months ended June 30, 2025, and a net loss of $3,277,023. This, combined with an accumulated deficit of $72,048,904, indicates a significant going concern risk and reliance on external financing to sustain operations.

Analyst Insight

Investors should exercise extreme caution and avoid investing in ABVC BioPharma until the company demonstrates a clear path to generating sustainable revenue from its drug development pipeline. Monitor future filings for any signs of commercialization or significant licensing deals that could alter its financial trajectory.

Financial Highlights

debt To Equity

0.71

revenue

$0

operating Margin

N/A

total Assets

$16,241,060

total Debt

$6,751,327

net Income

$(3,277,023)

eps

N/A

gross Margin

N/A

cash Position

$388,251

revenue Growth

-100.0%

Revenue Breakdown

Key Numbers

• $16,241,060 — Total Assets (Increased from $7,539,907 at December 31, 2024, a 115% increase, primarily due to land acquisition.)
• $8,215,366 — Property and equipment, net (Significantly increased from $511,088 at December 31, 2024, reflecting the acquisition of land.)
• $0 — Revenues (For the six months ended June 30, 2025, down from $118,347 in the prior year, indicating no product sales.)
• $(3,277,023) — Net loss (For the six months ended June 30, 2025, an improvement from $(3,975,079) in the prior year, but still a substantial loss.)
• $72,048,904 — Accumulated deficit (As of June 30, 2025, highlighting significant historical losses.)
• $9,489,733 — Total Stockholders' Equity (Increased from $723,959 at December 31, 2024, largely due to the land acquisition and private offerings.)
• $7,670,000 — Acquiring control of the land (Non-cash financing activity contributing to asset growth and noncontrolling interest.)
• $1,868,750 — Proceeds from private offerings (Cash provided by financing activities for the six months ended June 30, 2025.)
• $1,620,386 — Stock-based compensation (A significant operating expense for the six months ended June 30, 2025, though lower than $2,314,506 in the prior year.)
• $2,356,083 — Net cash provided by financing activities (For the six months ended June 30, 2025, essential for funding operations given negative cash flow from operations.)

Key Players & Entities

• ABVC BioPharma, Inc. (company) — Registrant and parent company
• American BriVision Corporation (company) — Wholly-owned operating entity of ABVC BioPharma, Inc.
• BioLite Holding Inc. (company) — Wholly-owned subsidiary of ABVC BioPharma, Inc.
• BioKey Inc. (company) — Wholly-owned subsidiary of ABVC BioPharma, Inc.
• AiBtl BioPharma Inc. (company) — Majority-owned subsidiary of ABVC BioPharma, Inc. (58.85% ownership)
• Shuling Jiang (person) — Director of ABVC BioPharma, Inc. and 10% owner of Yunzhiyi
• Stanford University (company) — Institution conducting clinical trials for ABVC BioPharma, Inc.
• University of California San Francisco (UCSF) (company) — Institution conducting clinical trials for ABVC BioPharma, Inc.
• Cedar Sinai Medical Centre (CSMC) (company) — Institution conducting clinical trials for ABVC BioPharma, Inc.
• The Nasdaq Stock Market LLC (regulator) — Exchange where ABVC common stock is registered

FAQ

Risk Factors

• Continued Net Losses and Dependence on Financing [high — financial]: The company reported a net loss of $3,277,023 for the six months ended June 30, 2025, and has no revenue from product sales. This necessitates reliance on financing activities, such as private offerings totaling $1,868,750, to fund operations and R&D, posing a significant financial risk.
• Significant Increase in Property and Equipment [medium — operational]: Total assets surged by 115% to $16,241,060, driven by a substantial increase in property and equipment, net, to $8,215,366 from $511,088. This includes a $7,670,000 acquisition of land, which represents a significant investment that may not yield immediate returns.
• High Accumulated Deficit [high — financial]: The company has an accumulated deficit of $72,048,904 as of June 30, 2025. This indicates a history of significant losses, which could impact future profitability and investor confidence.
• Reliance on Licensing and Clinical Trials [medium — operational]: The company's business model relies on licensing drugs and medical devices from research institutions and conducting clinical trials. Success is dependent on the outcomes of these trials and the ability to navigate the complex regulatory approval process.
• Stock-Based Compensation Expense [medium — financial]: Stock-based compensation remains a significant operating expense, totaling $1,620,386 for the six months ended June 30, 2025. While reduced from $2,314,506 in the prior year, it still impacts profitability.

Industry Context

ABVC BioPharma operates in the highly competitive and capital-intensive biotechnology sector, focusing on plant-derived drugs and medical devices. The industry is characterized by long development cycles, significant R&D investment, and stringent regulatory hurdles. Companies like ABVC often rely on licensing and partnerships to advance their pipelines, facing competition from established pharmaceutical giants and numerous emerging biotech firms.

Regulatory Implications

As a biotechnology company developing drugs, ABVC is subject to rigorous oversight from regulatory bodies such as the FDA. The success of its product candidates hinges on successful clinical trials and obtaining regulatory approval, which is a lengthy and uncertain process. Any delays or failures in clinical trials or regulatory submissions pose significant risks to the company's development and commercialization prospects.

What Investors Should Do

1. Monitor R&D progress and clinical trial results closely.
2. Evaluate the sustainability of the current financing strategy.
3. Analyze the strategic value and integration of the newly acquired land.
4. Assess the impact of stock-based compensation on dilution and profitability.

Key Dates

• 2025-06-30: Balance Sheet Date — Reflects a significant increase in total assets to $16,241,060, primarily due to land acquisition.
• 2025-06-30: End of Six-Month Reporting Period — Company reported $0 revenue and a net loss of $3,277,023, but improved operating expenses and cash position.
• 2024-12-31: Prior Year End Balance Sheet Date — Provided a baseline for comparison, showing total assets of $7,539,907 and a smaller property and equipment base.
• 2024-06-30: Prior Year Six-Month Reporting Period End — Showed revenue of $118,347 and a net loss of $3,975,079, highlighting the decrease in revenue and improvement in net loss.

Glossary

Accumulated deficit

The total net losses of a company since its inception that have not been offset by net income. (Indicates the company's historical unprofitability, with a deficit of $72,048,904 as of June 30, 2025.)

Stock-based compensation

Compensation provided to employees in the form of stock or stock options. (A significant operating expense for ABVC, totaling $1,620,386 for the six months ended June 30, 2025, impacting net loss.)

Property and equipment, net

The value of a company's tangible assets used in operations, minus accumulated depreciation. (Showed a substantial increase to $8,215,366 from $511,088, primarily due to a $7,670,000 land acquisition.)

Noncontrolling interest

The portion of equity of a subsidiary that is not attributable to the parent company. (Increased significantly to $2,476,098 from a deficit of $(502,181), reflecting changes in ownership or subsidiary performance.)

Operating lease right-of-use assets

An asset representing the right to use an asset for the lease term, recognized under ASC 842. (Decreased from $640,387 to $459,325, indicating lease payments or terminations.)

Year-Over-Year Comparison

Compared to the six months ended June 30, 2024, ABVC BioPharma has seen a dramatic shift in its financial position. Total assets have more than doubled, largely due to a significant investment in property and equipment, specifically land. While revenue has fallen to zero from $118,347, the net loss has improved by 17.6% to $3,277,023, driven by reduced operating expenses, particularly stock-based compensation. The company's equity position has strengthened considerably, bolstered by financing activities, but the core challenge of generating revenue and achieving profitability remains.

Key Financial Figures

• $0.001 — ich registered Common Stock, par value $0.001 per share ABVC The Nasdaq Stock Market
• $0 — es of common stock, par value per share $0.001, issued and outstanding. TABLE OF

Filing Documents

• ea0251467-10q_abvcbio.htm (10-Q) — 1503KB
• ea025146701ex31-1_abvcbio.htm (EX-31.1) — 10KB
• ea025146701ex31-2_abvcbio.htm (EX-31.2) — 10KB
• ea025146701ex32-1_abvcbio.htm (EX-32.1) — 5KB
• ea025146701ex32-2_abvcbio.htm (EX-32.2) — 5KB
• 0001213900-25-075644.txt ( ) — 9861KB
• abvc-20250630.xsd (EX-101.SCH) — 80KB
• abvc-20250630_cal.xml (EX-101.CAL) — 48KB
• abvc-20250630_def.xml (EX-101.DEF) — 444KB
• abvc-20250630_lab.xml (EX-101.LAB) — 753KB
• abvc-20250630_pre.xml (EX-101.PRE) — 470KB
• ea0251467-10q_abvcbio_htm.xml (XML) — 1278KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) F-1 Unaudited Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024 F-1 Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three and Six Months Ended June 30, 2025 and 2024 (Restated) F-2 Unaudited Condensed Consolidated Statements of Cash Flows for the Six months Ended June 30, 2025 and 2024 (Restated) F-3 Unaudited Condensed Consolidated Statements of Stockholders' Equity (Deficit) for the Three and Six Months Ended June 30, 2025 and 2024 (Restated) F-4 Notes to Unaudited Condensed Consolidated Financial Statements F-5 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 1 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 24 Item 4.

Controls and Procedures

Controls and Procedures 24 PART II OTHER INFORMATION 25 Item 1.

Legal Proceedings

Legal Proceedings 25 Item 1A.

Risk Factors

Risk Factors 25 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 25 Item 3. Defaults Upon Senior Securities 26 Item 4. Mine Safety Disclosures 26 Item 5. Other Information 26 Item 6. Exhibits 27

Signatures

Signatures 31 i CAUTIONARY NOTE ON FORWARD LOOKING STATEMENTS This Quarterly Report on Form 10-Q (this "Report") contains "forward-looking statements" which discuss matters that are not historical facts. Because they discuss future events or conditions, forward-looking statements may include words such as "anticipate," "believe," "estimate," "intend," "could," "should," "would," "may," "seek," "plan," "might," "will," "expect," "predict," "project," "forecast," "potential," "continue" and negatives thereof or similar expressions. Forward-looking statements speak only as of the date they are made, are based on various underlying assumptions and current expectations about the future and are not guarantees. Such statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, level of activity, performance or achievement to be materially different from the results of operations or plans expressed or implied by such forward-looking statements. We cannot predict all of the risks and uncertainties. Accordingly, such information should not be regarded as representations that the results or conditions described in such statements or that our objectives and plans will be achieved and we do not assume any responsibility for the accuracy or completeness of any of these forward-looking statements. These forward-looking statements represent our intentions, plans, expectations, assumptions and beliefs about future events and are subject to risks, uncertainties and other factors. Many of those factors are outside of our control and could cause actual results to differ materially from the results expressed or implied by those forward-looking statements. Factors that could cause or contribute to such differences in results and outcomes include, without limitation, those specifically addressed under the headings "Risks Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our annual

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS. ABVC BIOPHARMA, INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS June 30 December 31 2025 2024 ASSETS Current Assets Cash and cash equivalents $ 388,251 $ 248,382 Restricted cash 688,075 615,433 Inventories 11,460 - Due from related parties 1,422,405 1,155,051 Short-term investments 65,211 64,736 Prepaid expense and other current assets 194,999 96,213 Total Current Assets 2,770,401 2,179,815 Property and equipment, net 8,215,366 511,088 Operating lease right-of-use assets 459,325 640,387 Long-term investments 2,837,922 2,258,754 Prepayment for long-term investments 1,124,842 1,124,842 Prepayment for asset acquisition 691,900 691,900 Other non-current assets 141,304 133,121 Total Assets $ 16,241,060 $ 7,539,907 LIABILITIES AND EQUITY Current Liabilities Short-term loans $ 871,951 $ 840,252 Accrued expenses and other current liabilities 4,290,964 3,509,422 Contract liabilities 81,115 81,115 Taxes payables 23,521 - Operating lease liabilities 282,192 403,581 Due to related parties 728,576 773,045 Convertible notes payable – third parties, net 254,195 950,046 Total Current Liabilities 6,532,514 6,557,461 Tenant security deposit 41,680 21,680 Operating lease liability – non-current 177,133 236,807 Total Liabilities 6,751,327 6,815,948 COMMITMENTS AND CONTINGENCIES Equity Preferred stock, $ 0.001 par value, 20,000,000 authorized, nil shares issued and outstanding - - Common stock, $ 0.001 par value, 100,000,000 authorized, 19,533,416 and 13,868,484 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively 19,533 13,868 Stock to be issued 1,090,308 31,040 Additional paid-in capital 86,378,577 78,595,065 Accumulated deficit ( 72,048,904 ) ( 68,949,807 ) Accumulated other comprehensive income 483,812 445,665 Treasury stock ( 8,909,691 ) ( 8,909,691 )

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. ORGANIZATION AND DESCRIPTION OF BUSINESS ABVC BioPharma, Inc. (the "Company"), formerly known as American BriVision (Holding) Corporation, a Nevada corporation, through the Company's operating entity, American BriVision Corporation ("BriVision"), which was incorporated in July 2015 in the State of Delaware, engages in biotechnology to fulfill unmet medical needs and focuses on the development of new drugs and medical devices derived from plants. BriVision develops its 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 to identify drugs that BriVision believes demonstrate efficacy and safety. Once a drug appears to be a good candidate for development and ultimately commercialization, BriVision licenses the drug or medical device from the original researchers and begins to introduce the drugs clinical plan to highly respected principal investigators in the United States, Australia and Taiwan to conduct a Phase II clinical trial. At present, clinical trials for the Company's drugs and medical devices are being conducted at such world-famous institutions including Stanford University, University of California San Francisco (UCSF) and Cedar Sinai Medical Centre (CSMC). The Company has four wholly-owned subsidiaries, BriVision, BioLite Holding Inc. ("BioLite Holding"), BioKey Inc. ("BioKey"), BioKey (Cayman), Inc ("BioKey Cayman"), and a majority-owned subsidiary, AiBtl BioPharma Inc. ("AiBtl"). BioLite Holding was incorporated in the State of Nevada with wholly owned subsidiary BioLite BVI, Inc. ("BioLite BVI") that was incorporated in the British Virgin Islands . BioLite BVI holds 73 % ownership of BioLite Inc. ("BioLite Taiwan"), a Taiwanese corporation that was founded in February 2006. BioLite Taiwan has been in the business of devel

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