Bio Essence Corp. Files Q1 2024 10-Q Report

TL;DR

Bio Essence Corp. filed its Q1 2024 10-Q, confirming compliance with reporting rules.

AI Summary

Bio Essence Corp. filed its quarterly report on Form 10-Q for the period ended March 31, 2024. The company, incorporated in California and headquartered in Irvine, CA, operates in the Pharmaceutical Preparations sector. The filing indicates it has met its reporting requirements for the past 12 months and 90 days.

Why It Matters

This 10-Q filing provides investors and stakeholders with an update on Bio Essence Corp.'s financial performance and operational status for the first quarter of 2024.

Risk Assessment

Risk Level: low — This filing is a standard quarterly report and does not contain immediate red flags or significant new disclosures that would indicate a high risk.

Key Numbers

• 1231 — Fiscal Year End (Indicates the company's annual reporting cycle.)

Key Players & Entities

• Bio Essence Corp. (company) — Registrant
• March 31, 2024 (date) — Quarterly period end date
• 20240517 (date) — Filing date
• 12 Chrysler Unit B, Irvine, CA 92618 (address) — Principal executive offices
• 949-706-9966 (phone_number) — Issuer telephone number

FAQ

Filing Documents

• ea0206106-10q_bioess.htm (10-Q) — 486KB
• ea020610601ex31-1_bioess.htm (EX-31.1) — 17KB
• ea020610601ex32-1_bioess.htm (EX-32.1) — 10KB
• image_001.jpg (GRAPHIC) — 7KB
• 0001213900-24-044667.txt ( ) — 4329KB
• bioe-20240331.xsd (EX-101.SCH) — 53KB
• bioe-20240331_cal.xml (EX-101.CAL) — 53KB
• bioe-20240331_def.xml (EX-101.DEF) — 231KB
• bioe-20240331_lab.xml (EX-101.LAB) — 404KB
• bioe-20240331_pre.xml (EX-101.PRE) — 226KB
• ea0206106-10q_bioess_htm.xml (XML) — 403KB

Financial Statements

Financial Statements Balance Sheets as of March 31, 2024 (Unaudited) and December 31, 2023 1 2 3 4

Notes to Financial Statements (Unaudited)

Notes to Financial Statements (Unaudited) 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 17 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 22 Item 4.

Controls and Procedures

Controls and Procedures 22 PART II 23 Item 1.

Legal Proceedings

Legal Proceedings 23 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 23 Item 3. Defaults Upon Senior Securities 23 Item 4. Mine Safety Disclosures 23 Item 5. Other Information 23 Item 6. Exhibits 23

Signatures

Signatures 24 i BIO ESSENCE CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS AS OF MARCH 31, AS OF DECEMBER 31, 2024 2023 (UNAUDITED) ASSETS CURRENT ASSETS Cash and equivalents $ 23 $ - Other receivables 650,593 203,197 Total current assets 650,616 203,197 NONCURRENT ASSETS Security deposit 52,545 52,545 Right-of-use assets, net - 1,427,918 Property and equipment, net 238 3,688 Intangible assets, net 509 567 Total non-current assets 53,292 1,484,718 Assets classified as held for sale - 973,862 TOTAL ASSETS $ 703,908 $ 2,661,777 LIABILITIES AND STOCKHOLDERS' DEFICIT CURRENT LIABILITIES Bank overdraft $ - $ 9,436 Accounts payable 13,006 12,453 Accrued liabilities and other payables 88,296 40,897 Accrued interest on government loans 2,359 2,377 Operating lease liabilities - 495,217 Government loans payable - current portion 1,319 4,596 Loan from shareholders 1,979,377 1,788,677 Total current liabilities 2,084,357 2,353,653 NONCURRENT LIABILITIES Operating lease liabilities - 938,409 Government loans payable 56,093 53,120 Total non-current liabilities 56,093 991,529 Liabilities classified as held for sale - 976,889 TOTAL LIABILITIES 2,140,450 4,322,071 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' DEFICIT Preferred stock $ 0.0001 par value; authorized shares 10,000,000 , no shares issued and outstanding as of March 31, 2024 and December 31, 2023 - - Common stock $ 0.0001 par value; authorized shares 100,000,000 ; issued and outstanding shares 38,009,000 as of March 31, 2024 and December 31, 2023 3,801 3,801 Additional paid in capital 7,476,379 7,476,379 Accumulated deficit ( 8,916,722 ) ( 9,140,474 ) TOTAL STOCKHOLDERS' DEFICIT ( 1,436,542 ) ( 1,660,294 ) TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 703,908 $ 2,661,777 The accompanying notes are an integral part of these consolidated

financial statements

financial statements. 1 BIO ESSENCE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) THREE MONTHS ENDED MARCH 31, 2024 2023 Revenues $ - $ - Cost of revenues - - Gross profit - - Operating expenses General and administrative 62,015 24,310 Total operating expenses 62,015 24,310 Loss from operations ( 62,015 ) ( 24,310 ) Other income (expenses) Interest expense ( 542 ) ( 554 ) Other income 32,500 1,800 Other expenses ( 3,116 ) - Other income, net 28,842 1,246 Loss before income taxes ( 33,173 ) ( 23,064 ) Income tax expense - - Net loss from continuing operations ( 33,173 ) ( 23,064 ) Loss from discontinued operations ( 120,827 ) ( 155,772 ) Gain from disposal of discontinued operations 377,752 - Net income (loss ) $ 223,752 $ ( 178,836 ) Basic and diluted weighted average shares outstanding 38,009,000 33,009,000 Basic and diluted net loss per share $ 0.01 $ ( 0.01 ) The accompanying notes are an integral part of these consolidated financial statements. 2 BIO ESSENCE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT THREE MONTHS ENDED MARCH 31, 2024 AND 2023 (UNAUDITED) COMMON COMMON ADDITIONAL STOCK - SHARES STOCK - AMOUNT PAID IN CAPITAL ACCUMULATED DEFICIT TOTAL Balance at January 1, 2024 38,009,000 $ 3,801 $ 7,476,379 $ ( 9,140,474 ) $ ( 1,660,294 ) Net income for the period - - - 223,752 223,752 Balance at March 31, 2024 38,009,000 $ 3,801 $ 7,476,379 $ ( 8,916,722 ) $ ( 1,436,542 ) Balance at January 1, 2023 33,009,000 $ 3,301 $ 4,926,879 $ ( 8,168,595 ) $ ( 3,238,415 ) Net loss for the period - - - ( 178,836 ) ( 178,836 ) Balance at March 31, 2023 33,009,000 $ 3,301 $ 4,926,879 $ ( 8,347,431 ) $ ( 3,417,251 ) The accompanying notes are an integral part of these consolidated financial statements. 3 BIO ESSENCE CORPORATION AND SUBSIDIARIES CONSOLIDATED

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS MARCH 31, 2024 (UNAUDITED) AND DECEMBER 31, 2023 1. ORGANIZATION AND DESCRIPTION OF BUSINESS Bio Essence Corporation ("the Company" or "Bio Essence") was incorporated in 2000 in the state of California. Fusion Diet Systems ("FDS") was incorporated in 2010 in the state of Utah. Bio Essence and FDS were under common control since 2016. Bio Essence and FDS are mainly engaged in manufacturing and distributing health supplement products. In January 2017, Bio Essence incorporated two subsidiaries in the state of California: Bio Essence Pharmaceutical Inc. ("BEP") and Bio Essence Herbal Essentials, Inc. ("BEH"), Bio Essence transferred its manufacturing operation to BEP, and transferred its distributing operation to BEH. On March 1, 2017, the 100 % shareholder of FDS transferred all of her ownership in FDS to Bio Essence. On December 7, 2021, the Company dissolved FDS. On November 12, 2021, Bio Essence incorporated a wholly owned subsidiary McBE Pharma Inc. ("McBE") in the state of California, McBE will be engaged in developing, manufacturing and sales of prescription medicine. McBE has not engaged in any operations since its inception. On December 12, 2023, the Company entered into an agreement with Newways Inc. to sell the 100 % equity ownership of BEP for $ 300,000 . On March 28, 2024, the Company entered into an agreement with Health Up Inc. to sell the 100 % equity ownership of BEH for $ 400,000 . On April 15, 2024, the Company dissolved McBE. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Consolidation The accompanying consolidated financial statements ("CFS") are prepared in conformity with U.S. Generally Accepted Accounting Principles ("US GAAP") and applicable rules and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting. The functional currency of Bio Essence is U.S. dollars ("$''). The accompanying financial statements are presented in U.S. dollars ("$"). Th

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