ABVC BioPharma's Assets Soar 180% Amidst Widening Losses

TL;DR

**ABVC is burning cash and racking up losses despite asset growth, making it a risky bet for traders.**

AI Summary

ABVC BioPharma, Inc. reported a significant increase in total assets to $21,176,299 as of September 30, 2025, up from $7,539,907 at December 31, 2024, primarily driven by a substantial increase in property and equipment, net, to $12,055,642 from $511,088. Revenues for the nine months ended September 30, 2025, increased to $795,950 from $507,623 in the prior year period. Despite revenue growth, the company experienced an increased net loss of $4,564,546 for the nine months ended September 30, 2025, compared to $4,462,510 for the same period in 2024. This was largely due to a surge in stock-based compensation, which rose to $2,756,603 from $2,410,381, and an increase in selling, general and administrative expenses to $2,103,718 from $1,949,865. Cash and cash equivalents decreased to $192,068 from $248,382, while restricted cash increased to $661,843 from $615,433. The company also saw a significant increase in 'Due from related parties' to $2,694,743 from $1,155,051, indicating increased intercompany lending or receivables. Strategic outlook includes continued development of new drugs and medical devices, with clinical trials at institutions like Stanford University and UCSF.

Why It Matters

ABVC's substantial asset growth, particularly in property and equipment, suggests significant investment in its operational infrastructure, potentially for future drug development and manufacturing. However, the widening net loss and increased operating expenses, especially stock-based compensation, raise concerns about profitability and cash burn for investors. The company's reliance on related party transactions for funding and receivables could also signal financial instability or complex governance. For customers and employees, continued investment in R&D and clinical trials at prestigious institutions like Stanford indicates progress in its biotechnology pipeline, but the financial performance could impact long-term stability and competitive positioning against larger, more financially robust biopharma firms.

Risk Assessment

Risk Level: high — The company reported a net loss of $4,564,546 for the nine months ended September 30, 2025, and a net cash used in operating activities of $1,567,264. This consistent negative cash flow and increasing accumulated deficit of $73,295,417 indicate significant financial risk and a reliance on financing activities to sustain operations.

Analyst Insight

Investors should exercise extreme caution and conduct thorough due diligence on ABVC BioPharma. The significant increase in assets, particularly property, needs to be balanced against the widening net losses and substantial cash burn. Consider the long-term viability of their drug pipeline and their ability to secure non-dilutive funding before making any investment decisions.

Financial Highlights

debt To Equity

0.46

revenue

$795,950

operating Margin

N/A

total Assets

$21,176,299

total Debt

$809,103

net Income

-$4,564,546

eps

N/A

gross Margin

100.0%

cash Position

$192,068

revenue Growth

56.8%

Key Numbers

• $21,176,299 — Total Assets (Increased from $7,539,907 at December 31, 2024, representing a 180% increase.)
• $12,055,642 — Property and equipment, net (Increased significantly from $511,088 at December 31, 2024, indicating major capital investment.)
• $795,950 — Revenues (For the nine months ended September 30, 2025, up from $507,623 in the prior year period.)
• $4,564,546 — Net loss (For the nine months ended September 30, 2025, an increase from $4,462,510 in the prior year period.)
• $2,756,603 — Stock-based compensation (For the nine months ended September 30, 2025, up from $2,410,381 in the prior year period.)
• $1,567,264 — Net cash used in operating activities (For the nine months ended September 30, 2025, an increase from $1,107,011 in the prior year period.)
• $2,694,743 — Due from related parties (Increased from $1,155,051 at December 31, 2024.)
• 24,301,089 — Shares of common stock outstanding (As of October 30, 2025, indicating potential dilution from 13,868,484 shares at December 31, 2024.)
• $73,295,417 — Accumulated deficit (Increased from $68,949,807 at December 31, 2024, reflecting ongoing losses.)
• $14,492,707 — Total Equity (Increased from $723,959 at December 31, 2024, largely due to noncontrolling interest and additional paid-in capital.)

Key Players & Entities

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

FAQ

Risk Factors

• Significant Increase in Stock-Based Compensation [medium — financial]: Stock-based compensation surged to $2,756,603 for the nine months ended September 30, 2025, up from $2,410,381 in the prior year period. This increase contributed to a wider net loss despite revenue growth.
• Deteriorating Net Loss [high — financial]: The company reported an increased net loss of $4,564,546 for the nine months ended September 30, 2025, compared to $4,462,510 for the same period in 2024. This trend, coupled with a growing accumulated deficit of $73,295,417, indicates ongoing financial challenges.
• Declining Cash Position [medium — financial]: Cash and cash equivalents decreased to $192,068 as of September 30, 2025, from $248,382 at December 31, 2024. This reduction in liquid assets, alongside increased net cash used in operating activities ($1,567,264), raises concerns about short-term liquidity.
• Increased Related Party Balances [medium — financial]: The 'Due from related parties' balance significantly increased to $2,694,743 from $1,155,051. This suggests increased intercompany lending or receivables, which could pose risks if not managed effectively.
• Substantial Capital Expenditures [medium — financial]: Property and equipment, net, increased dramatically to $12,055,642 from $511,088. While this indicates investment, it also represents a significant outflow of capital that needs to be supported by future revenue generation.
• Growing Share Count [high — financial]: The number of shares of common stock outstanding increased to 24,190,340 as of October 30, 2025, from 13,868,484 at December 31, 2024. This substantial increase could lead to significant dilution for existing shareholders.

Industry Context

ABVC BioPharma operates in the competitive biotechnology sector, focusing on plant-derived drugs and medical devices. The industry is characterized by long development cycles, high R&D costs, and significant regulatory hurdles. Companies like ABVC rely on licensing technologies from research institutions and conducting extensive clinical trials to advance their pipelines.

Regulatory Implications

As a biotechnology company, ABVC is subject to stringent regulations from bodies like the FDA. Delays or failures in clinical trials, or issues with regulatory approval processes, can significantly impact the company's financial performance and future prospects. Compliance with evolving regulatory standards is critical.

What Investors Should Do

1. Monitor cash burn rate and runway.
2. Scrutinize related party transactions.
3. Evaluate the impact of increased share count.
4. Assess the return on significant capital investments.

Key Dates

• 2025-09-30: Quarterly Financial Reporting — Indicates significant growth in total assets and property/equipment, but also an increase in net loss and stock-based compensation.
• 2025-12-31: Previous Fiscal Year End — Provides a baseline for comparison, showing a much smaller asset base and lower stock-based compensation.

Glossary

Accumulated deficit

The total net losses of a company since its inception that have not been offset by net income. (Shows the company has consistently incurred losses, with the deficit growing to $73,295,417.)

Stock-based compensation

Compensation provided to employees in the form of stock or stock options. (A significant expense item, increasing to $2,756,603 and contributing to the net loss.)

Due from related parties

Amounts owed to the company by affiliated companies or individuals. (The substantial increase to $2,694,743 suggests increased financial interdependencies that warrant scrutiny.)

Noncontrolling interest

The portion of equity of a subsidiary that is not attributable to the parent company. (The change from a negative to a positive balance ($2,435,088) impacts total equity and may reflect changes in subsidiary ownership or performance.)

Operating lease right-of-use assets

An asset representing the right to use an leased asset over the lease term. (Decreased from $640,387 to $369,135, indicating a reduction in lease commitments.)

Convertible notes payable

Debt that can be converted into equity under certain conditions. (Significant reduction in third-party convertible notes ($68,791 from $950,046) and introduction of related party convertible notes ($150,000).)

Year-Over-Year Comparison

Compared to the prior year period, ABVC BioPharma has seen a significant increase in total assets, driven by substantial investment in property and equipment. While revenues grew by approximately 56.8% for the nine months ended September 30, 2025, the net loss also widened due to a sharp rise in stock-based compensation and SG&A expenses. The company's cash position has decreased, and the number of outstanding shares has increased considerably, indicating potential dilution.

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

• ea0261774-10q_abvc.htm (10-Q) — 1521KB
• ea026177401ex31-1_abvc.htm (EX-31.1) — 8KB
• ea026177401ex31-2_abvc.htm (EX-31.2) — 8KB
• ea026177401ex32-1_abvc.htm (EX-32.1) — 4KB
• ea026177401ex32-2_abvc.htm (EX-32.2) — 4KB
• 0001213900-25-104811.txt ( ) — 10156KB
• abvc-20250930.xsd (EX-101.SCH) — 81KB
• abvc-20250930_cal.xml (EX-101.CAL) — 51KB
• abvc-20250930_def.xml (EX-101.DEF) — 457KB
• abvc-20250930_lab.xml (EX-101.LAB) — 771KB
• abvc-20250930_pre.xml (EX-101.PRE) — 488KB
• ea0261774-10q_abvc_htm.xml (XML) — 1281KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) F-1 Unaudited Condensed Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024 F-1 Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three and Nine Months Ended September 30, 2025 and 2024 (Restated) F-2 Unaudited Condensed Consolidated Statements of Cash Flows for the Nine months Ended September 30, 2025 and 2024 (Restated) F-3 Unaudited Condensed Consolidated Statements of Stockholders' Equity (Deficit) for the Three and Nine Months Ended September 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 September 30 December 31 2025 2024 ASSETS Current Assets Cash and cash equivalents $ 192,068 $ 248,382 Restricted cash 661,843 615,433 Inventories 11,460 - Due from related parties 2,694,743 1,155,051 Short-term investments 65,175 64,736 Prepaid expense and other current assets 447,280 96,213 Total Current Assets 4,072,569 2,179,815 Property and equipment, net 12,055,642 511,088 Operating lease right-of-use assets 369,135 640,387 Long-term investments 2,745,194 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 117,017 133,121 Total Assets $ 21,176,299 $ 7,539,907 LIABILITIES AND EQUITY Current Liabilities Short-term loans $ 809,103 $ 840,252 Accrued expenses and other current liabilities 3,991,414 3,509,422 Contract liabilities 81,115 81,115 Taxes payables 6,170 - Operating lease liabilities 199,335 403,581 Due to related parties 1,201,592 773,045 Convertible notes payable – third parties, net 68,791 950,046 Convertible notes payable – related party 150,000 - Total Current Liabilities 6,507,520 6,557,461 Tenant security deposit 12,000 21,680 Operating lease liability – non-current 164,072 236,807 Total Liabilities 6,683,592 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, 24,190,340 and 13,868,484 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively 24,190 13,868 Stock to be issued 636,500 31,040 Additional paid-in capital 93,114,989 78,595,065 Accumulated deficit ( 73,295,417 ) ( 68,949,807 ) Accumulated other comprehensive income 48

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 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 busin

View Full Filing

View this 10-Q filing on SEC EDGAR