Acro Biomedical (ACBM) 10-Q 19 May 20 2020 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2020	May 14, 2020
Document And Entity Information [Abstract]
Entity Registrant Name	ACRO BIOMEDICAL CO., LTD.
Entity Central Index Key	0001622996
Entity Current Reporting Status	No
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		47,760,000
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Interactive Data Current	Yes

Balance Sheets

Balance Sheets - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Current Assets
Cash and cash equivalents	$ 10,636	$ 911
Inventories	350,000	878,560
Purchase deposit for inventory	600,000
Prepaid expenses	12,000
Total Current Assets	972,636	879,471
Operating lease ROU asset	42,583	48,425
Security deposit	4,230	4,230
TOTAL ASSETS	1,019,449	932,126
Current Liabilities
Accounts payable and accrued expenses	15,072	23,834
Deferred revenue	20,000	37,464
Due to related parties	62,018	26,279
Operating lease liabilities - current	26,359	23,964
Total Current Liabilities	123,449	111,541
Operating lease liabilities - noncurrent	16,204	22,346
TOTAL LIABILITIES	139,653	133,887
Stockholders' Equity
Preferred stock: 25,000,000 authorized; $0.001 par value; no shares issued and outstanding
Common stock: 100,000,000 authorized; $0.001 par value; 47,760,000 shares issued and outstanding as of March 31, 2020 and December 31, 2019, respectively	47,760	47,760
Additional paid-in capital	872,121	871,680
Accumulated deficit	(40,085)	(121,201)
Total Stockholders' Equity	879,796	798,239
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 1,019,449	$ 932,126

Balance Sheets (Parentheticals)

Balance Sheets (Parentheticals) - $ / shares	Mar. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Preferred stock, shares authorized	25,000,000	25,000,000
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, shares authorized	100,000,000	100,000,000
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares issued	47,760,000	47,760,000
Common stock, shares outstanding	47,760,000	47,760,000

Statements of Operations (Unaud

Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Statement [Abstract]
Revenues	$ 687,964
Cost of revenues	528,560
Gross profit	159,404
Operating expenses
Selling, general and administrative	77,847	$ 214,766
Total operating expenses	77,847	214,766
Income (loss) from operations	81,557	(214,766)
Other expense
Interest expense - related party	441	108
Total other expenses	441	108
Income (loss) before income tax credit	81,116	(214,874)
Income taxes credit	0	(45,124)
Net income (loss)	$ 81,116	$ (169,750)
Basic and diluted income (loss) per share of common stock (in dollars per share)	$ 0	$ 0
Weighted average number of shares of common stock outstanding (in shares)	47,760,000	47,760,000

Statements of Changes in Stockh

Statements of Changes in Stockholders' Equity (Unaudited) - USD ($)	Preferred Stock	Common Stock	Additional Paid-in Capital	Retained earnings (Accumulated Deficit)	Total
Balance at Dec. 31, 2018	$ 0	$ 47,760	$ 869,697	$ 250,403	$ 1,167,860
Balance (in shares) at Dec. 31, 2018	0	47,760,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Imputed interest on related party loans			108		108
Net income (loss)				(169,750)	(169,750)
Balance at Mar. 31, 2019	$ 0	$ 47,760	869,805	80,653	998,218
Balance (in shares) at Mar. 31, 2019	0	47,760,000
Balance at Dec. 31, 2019	$ 0	$ 47,760	871,680	(121,201)	798,239
Balance (in shares) at Dec. 31, 2019	0	47,760,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Imputed interest on related party loans			441		441
Net income (loss)				81,116	81,116
Balance at Mar. 31, 2020	$ 0	$ 47,760	$ 872,121	$ (40,085)	$ 879,796
Balance (in shares) at Mar. 31, 2020	0	47,760,000

Statements of Cash Flows (Unaud

Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ 81,116	$ (169,750)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Stock based compensation		148,395
Imputed interest - related parties	441	108
Deferred tax asset		(45,124)
Change of ROU asset and lease liabilities	2,095
Changes in operating assets and liabilities:
Inventories	528,560
Purchase deposit for inventory	(600,000)
Prepaid expenses	(12,000)	(9,000)
Accounts payable and accrued expenses	(8,762)	3,036
Deferred revenue	(17,464)	20,000
Net cash used in operating activities	(26,014)	(52,335)
CASH FLOWS FROM FINANCING ACTIVITIES
Advances from related parties	35,739	15,140
Net cash provided by financing activities	35,739	15,140
Net change in cash and cash equivalents	9,725	(37,195)
Cash and cash equivalent at beginning of period	911	37,607
Cash and cash equivalent at end of period	10,636	412
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for income taxes	0	0
Cash paid for interest	$ 0	$ 0

ORGANIZATION AND DESCRIPTION OF

ORGANIZATION AND DESCRIPTION OF BUSINESS	3 Months Ended
	Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND DESCRIPTION OF BUSINESS	NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS Acro Biomedical Co., Ltd. (the “Company”) is a Nevada corporation incorporated on September 24, 2014 under the name Killer Waves Hawaii, Inc., which was changed to Acro Biomedical Co., Ltd. on January 30, 2017. The Company’s business is the sale of cordyceps related products and, to a significantly lesser extent, metallothionein MT-3 elizer, a protein that, in powder form, which is used in health supplements. Cordyceps is a fungus that is used in traditional Chinese medicine. The Company has not sold metallothionein MT-3 elizer since the quarter ended September 30, 2018, and its present inventory and the purchase deposit for inventory are for cordyceps related products. Although the Company intends to conduct research and development on its own proprietary products based on cordyceps sinensis, as of March 31, 2020, it has not commenced such activities, and it can provide no assurance that it will be able to conduct such activities.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Unaudited Interim Financial Statements The accompanying unaudited interim financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial information and with Rule 8-03 of Regulation S-X. Accordingly, the unaudited interim financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. Notes to the unaudited interim financial statements that would substantially duplicate the disclosures contained in the audited financial statements for the year ended December 31, 2019 have been omitted; these unaudited interim financial statements should be read in conjunction with the audited financial statements and the footnotes thereto for the fiscal year ended December 31, 2019 included within the Company’s transition report on Form 10-K. In the opinion of management, all adjustments consisting of normal recurring entries necessary for a fair statement of the periods presented for: (a) the financial position; (b) the result of operations; and (c) cash flows, have been made in order to make the unaudited interim financial statements presented not misleading. The results of operations for such interim periods are not necessarily indicative of operations for a full year. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain revenues and expenses during the reporting period. Actual results could differ from these good faith estimates and judgments. Revenue Recognition Revenues are recognized when control of the promised goods or services are transferred to a customer, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: • identify the contract with a customer; • identify the performance obligations in the contract; • determine the transaction price; • allocate the transaction price to performance obligations in the contract; and • recognize revenue as the performance obligation is satisfied. Under these criteria, the Company generally recognizes revenue when its products are delivered to customers in accordance with the written sales terms. Inventories Inventories consist primarily of finished goods. Inventories are valued at the lower of cost or net realizable value. The Company determines cost on the basis of first-in, first-out methods. The Company periodically reviews inventories for obsolescence and any inventories identified as obsolete are written down or written off. Although the Company believes that the assumptions it uses to estimate inventory write-downs are reasonable, future changes in these assumptions could provide a significantly different result. No inventory markdown was recorded for the three months ended March 31, 2020 and 2019. Net Income (Loss) Per Share of Common Stock The Company has adopted ASC Topic 260, “ Earnings per Share” COVID – 19 Since our products are purchased by customers in Taiwan and Hong Kong who sold to their customers in the People’s Republic of China (the “PRC”), our business was impacted by the effects of the COVID-19 pandemic and the actions taken by the governments of the PRC, the Republic of China and Hong Kong. Since we had modest sales in the three months ended March 31, 2020 as well as the year ended December 31, 2019, with sales in only the last quarter of 2019, we cannot predict the effect of COVID-19 on our business. A prolonged outbreak could have a material adverse impact on financial results and business operations of the Company.

GOING CONCERN

GOING CONCERN	3 Months Ended
	Mar. 31, 2020
Going Concern [Abstract]
GOING CONCERN	NOTE 3 - GOING CONCERN The accompanying unaudited financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. The Company had minimal cash as of March 31, 2020 and did not generate cash from its operation for the three months ended March 31, 2020. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. The Company proposes to fund operations through sales of its products and equity financing arrangements. because of the lack of sales and the absence of any active trading market for its common stock, its financial condition and its lack of an operating history, the Company may not be able to raise funds for capital expenditures, working capital and other cash requirements. If the Company cannot generate revenue from its products, it may not be able to continue in its business.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2020
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 4 - RELATED PARTY TRANSACTIONS At December 31, 2019, the Company owed $62,018 and $26,279 to a stockholder who is not a 5% During the three months ended March 31, 2020 and 2019, the stockholder paid expenses of $35,739 and $15,140, respectively on behalf of the Company. The Company has imputed interest at the rate of 4% on the advances made to the Company in the amount of

LEASES

LEASES	3 Months Ended
	Mar. 31, 2020
Leases [Abstract]
LEASES	NOTE 5 – LEASES On December 27, 2019, the Company entered into a new lease agreement to rent a storage facility in Hong Kong for a two-year term at HK$16,500 (approximately $2,115) per month. A stockholder paid HK$33,000 (approximately $4,230) as a security deposit and HK$16,500 (approximately $2,115) as prepaid rent on behalf of the Company. In accordance with ASC 842, the Company recognized operation lease ROU assets and lease liabilities as follows; March 31, December 31, 2020 2019 Operating lease ROU asset $ 42,583 $ 48,425 March 31, December 31, Operating lease liabilities 2020 2019 Current portion $ 26,359 $ 23,964 Non-current portion 16,204 22,346 Total $ 42,563 $ 46,310 Future minimum lease payments under operating leases at March 31, 2020 were as follows: Remainder of 2020 $ 21,190 2021 22,787 Thereafter — Total 43,977 Less: Imputed interest (1,414 ) Operating lease liabilities $ 42,563 The Company recognized total lease expense of approximately $6,285 and $7,560 for the three months ended March 31, 2020 and 2019, respectively, primarily related to operating rent lease costs paid to lessors.

CONCENTRATION

CONCENTRATION	3 Months Ended
	Mar. 31, 2020
Concentration Risks, Types, No Concentration Percentage [Abstract]
CONCENTRATION	NOTE 6 – CONCENTRATION Revenue During the three months ended March 31, 2020, all revenue was derived from one customer. Purchase During the three months ended March 31, 2020, we purchased inventory, which is reflected as a purchase deposit for inventory, from one supplier. During the three months ended March 31, 2019, all purchases were derived from purchase contracts with one supplier. All purchases and sales were for cordyceps related products.

INCOME TAX

INCOME TAX	3 Months Ended
	Mar. 31, 2020
Income Tax Disclosure [Abstract]
INCOME TAX	NOTE 7 – INCOME TAX The reconciliation of income tax expense (credit) at the statutory federal income tax rate of 21% to the Company’s effective income taxes is as follows: Three Months Ended March 31, 2020 2019 Income tax expense (credit) at statutory rate $ 17,034 $ (45,124 ) Income tax adjustment – Imputed interest 93 — Change of valuation allowance (17,127 ) — Income tax credit $ — $ (45,124 ) Net deferred tax assets consist of the following components: March 31, December 31, 2020 2019 Operating loss carry forward $ 39,248 $ 39,248 Operating losses utilized (17,127 ) — Valuation allowance (22,121 ) (39,248 ) Deferred tax asset $ — $ —

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2020
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 8 - SUBSEQUENT EVENTS The Company has evaluated subsequent events that have occurred after the date of the balance sheet through the date of issuance of these unaudited financial statements and determined that no subsequent event requires recognition or disclosure to the unaudited financial statements.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
Unaudited Interim Financial Statements	Unaudited Interim Financial Statements The accompanying unaudited interim financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial information and with Rule 8-03 of Regulation S-X. Accordingly, the unaudited interim financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. Notes to the unaudited interim financial statements that would substantially duplicate the disclosures contained in the audited financial statements for the year ended December 31, 2019 have been omitted; these unaudited interim financial statements should be read in conjunction with the audited financial statements and the footnotes thereto for the fiscal year ended December 31, 2019 included within the Company’s transition report on Form 10-K. In the opinion of management, all adjustments consisting of normal recurring entries necessary for a fair statement of the periods presented for: (a) the financial position; (b) the result of operations; and (c) cash flows, have been made in order to make the unaudited interim financial statements presented not misleading. The results of operations for such interim periods are not necessarily indicative of operations for a full year.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain revenues and expenses during the reporting period. Actual results could differ from these good faith estimates and judgments.
Revenue Recognition	Revenue Recognition Revenues are recognized when control of the promised goods or services are transferred to a customer, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: • identify the contract with a customer; • identify the performance obligations in the contract; • determine the transaction price; • allocate the transaction price to performance obligations in the contract; and • recognize revenue as the performance obligation is satisfied. Under these criteria, the Company generally recognizes revenue when its products are delivered to customers in accordance with the written sales terms.
Inventories	Inventories Inventories consist primarily of finished goods. Inventories are valued at the lower of cost or net realizable value. The Company determines cost on the basis of first-in, first-out methods. The Company periodically reviews inventories for obsolescence and any inventories identified as obsolete are written down or written off. Although the Company believes that the assumptions it uses to estimate inventory write-downs are reasonable, future changes in these assumptions could provide a significantly different result. No inventory markdown was recorded for the three months ended March 31, 2020 and 2019.
Net Income (Loss) Per Share of Common Stock	Net Income (Loss) Per Share of Common Stock The Company has adopted ASC Topic 260, “ Earnings per Share” COVID – 19 Since our products are purchased by customers in Taiwan and Hong Kong who sold to their customers in the People’s Republic of China (the “PRC”), our business was impacted by the effects of the COVID-19 pandemic and the actions taken by the governments of the PRC, the Republic of China and Hong Kong. Since we had modest sales in the three months ended March 31, 2020 as well as the year ended December 31, 2019, with sales in only the last quarter of 2019, we cannot predict the effect of COVID-19 on our business. A prolonged outbreak could have a material adverse impact on financial results and business operations of the Company.

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Mar. 31, 2020
Leases [Abstract]
Schedule of recognized operation lease ROU assets and lease liabilities	March 31, December 31, 2020 2019 Operating lease ROU asset $ 42,583 $ 48,425 March 31, December 31, Operating lease liabilities 2020 2019 Current portion $ 26,359 $ 23,964 Non-current portion 16,204 22,346 Total $ 42,563 $ 46,310
Schedule of future minimum lease payment	Remainder of 2020 $ 21,190 2021 22,787 Thereafter — Total 43,977 Less: Imputed interest (1,414 ) Operating lease liabilities $ 42,563

INCOME TAX (Tables)

INCOME TAX (Tables)	3 Months Ended
	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Schedule of provision for income taxes	Three Months Ended March 31, 2020 2019 Income tax expense (credit) at statutory rate $ 17,034 $ (45,124 ) Income tax adjustment – Imputed interest 93 — Change of valuation allowance (17,127 ) — Income tax credit $ — $ (45,124 )
Schedule of net deferred tax assets	March 31, December 31, 2020 2019 Operating loss carry forward $ 39,248 $ 39,248 Operating losses utilized (17,127 ) — Valuation allowance (22,121 ) (39,248 ) Deferred tax asset $ — $ —

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Detail Textuals) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Related Party Transaction [Line Items]
Due to related parties	$ 62,018		$ 26,279
Percentage of imputed interest	4.00%
Imputed interest - related parties	$ 441	$ 108
Stockholder
Related Party Transaction [Line Items]
Due to related parties	$ 62,018		$ 26,279
Percentage of stockholder who Is not paid various expenses	5.00%
Expenses paid by stockholder on behalf of company	$ 35,739	$ 15,140

LEASES (Details)

LEASES (Details) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Operating lease ROU asset	$ 42,583	$ 48,425

LEASES (Details 1)

LEASES (Details 1) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Operating lease liability - Current portion	$ 26,359	$ 23,964
Operating lease liability - Non-current portion	16,204	22,346
Operating Lease, Liability, Total	$ 42,563	$ 46,310

LEASES (Details 2)

LEASES (Details 2) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Remainder of 2020	$ 21,190
2021	22,787
Thereafter	0
Operating Leases, Future Minimum Payments Due, Total	43,977
Less: Imputed interest	(1,414)
Operating Lease, Liability	$ 42,563	$ 46,310

LEASES (Detail Textuals)

LEASES (Detail Textuals)	1 Months Ended		3 Months Ended
	Dec. 27, 2019HKD ($)	Dec. 27, 2019USD ($)	Mar. 31, 2020USD ($)	Mar. 31, 2019USD ($)	Dec. 27, 2019USD ($)
Lessee, Lease, Description [Line Items]
Total lease expense			$ 6,285	$ 7,560
Lease agreement
Lessee, Lease, Description [Line Items]
Lease term	2 years				2 years
Rent expense	$ 16,500	$ 2,115
Lease agreement | Stockholder
Lessee, Lease, Description [Line Items]
Security deposit	33,000				$ 4,230
Prepaid rent	$ 16,500				$ 2,115

CONCENTRATION (Detail Textuals)

CONCENTRATION (Detail Textuals)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenue | Customer concentration risk
Concentration Risk [Line Items]
Concentration risk, customer	one
Purchases | Supplier concentration risk
Concentration Risk [Line Items]
Concentration risk, supplier	one
Number of contracts		one

INCOME TAX (Details)

INCOME TAX (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Income tax expense (credit) at statutory rate	$ 17,034	$ (45,124)
Income tax adjustment
Imputed interest	93	0
Change of valuation allowance	(17,127)	0
Income tax credit	$ 0	$ (45,124)

INCOME TAX (Details 1)

INCOME TAX (Details 1) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Operating loss carry forward	$ 39,248	$ 39,248
Operating losses utilized	(17,127)	0
Valuation allowance	(22,121)	(39,248)
Deferred tax asset	$ 0	$ 0

INCOME TAX (Detail Textuals)

INCOME TAX (Detail Textuals)	3 Months Ended
	Mar. 31, 2020
Income Tax [Line Items]
Statutory federal income tax rate	21.00%