Bio Essence Corp. Reports Revenue Growth to $323,940 Amid Significant Losses

Bio Essence Corp. reported a significant increase in revenue for the fiscal year ending December 31, 2024, generating $323,940 compared to no revenue in the previous year. This revenue was derived from $37,415 in product sales, $282,752 from OEM service revenue, and $3,773 in shipping and delivery income. However, the company also faced substantial losses, with a net loss from continuing operations of $1,565,721, a 287% increase from the $404,604 loss reported in 2023. The overall net loss, including discontinued operations, was $1,308,796, which reflects a decrease of 34.67% compared to the previous year.

The company underwent significant organizational changes during the fiscal year, including the sale of its subsidiaries. On December 12, 2023, Bio Essence sold its manufacturing subsidiary, Bio Essence Pharmaceutical, Inc. (BEP), for $300,000, followed by the sale of Bio Essence Herbal Essentials Inc. (BEH) for $400,000 on March 28, 2024. Additionally, the company dissolved its subsidiary McBE Pharma, Inc. on April 15, 2024. These strategic decisions were aimed at streamlining operations and focusing on direct sales of health supplement products and OEM services.

Operationally, Bio Essence reported a total of two full-time employees as of the end of the fiscal year. The company’s cash and equivalents stood at $1,371, with total current liabilities amounting to $2,802,700, resulting in a working capital deficit of $2,522,008. The current ratio was reported at 0.10:1, indicating liquidity challenges. The company’s management plans to address these issues by enhancing its sales force, increasing marketing efforts, and exploring additional funding options, including potential public or private offerings.

The filing also highlighted a substantial increase in general and administrative expenses, which rose to $676,515 from $345,590 in the previous year, primarily due to increased office rent and consulting fees. Other expenses from continuing operations surged to $1,105,483, largely attributed to interest expenses and an impairment of a right-of-use asset. Despite these challenges, the company reported a gain from the disposal of discontinued operations amounting to $377,752, which contributed positively to the overall financial results.

Looking ahead, Bio Essence Corp. acknowledges the uncertainty surrounding its ability to continue as a going concern, given its accumulated deficit of $10,449,270 and ongoing losses. The management is optimistic about its strategy to generate sufficient revenue and is actively seeking additional financing to support future operations. However, the company cautions that there are no guarantees regarding the successful implementation of these plans or the ability to secure necessary funding.