Bio Essence Corp SEC 10-Q Report

Bio Essence Corp, a company specializing in OEM services, has released its Form 10-Q report for the second quarter of 2025. The report highlights significant financial improvements and strategic operational shifts aimed at enhancing the company's market position and profitability.

Financial Highlights

• Total Revenues: $281.312 million, reflecting a significant increase from $41.695 million in the prior year period, primarily due to OEM service revenue.
• Gross Profit: $189.232 million, up from $29.187 million, driven by increased OEM service revenue.
• Loss from Operations: ($143.869 million), an improvement from a loss of ($316.842 million) in the prior year period, due to reduced general and administrative expenses.
• Net Income (Loss) from Continuing Operations: ($145.888 million), compared to a loss of ($338.665 million) in the prior year period, indicating improved operational efficiency.
• Basic and Diluted Net Loss Per Share: ($0.00), consistent with the prior year period, reflecting the company's ongoing efforts to manage costs and improve profitability.

Business Highlights

• Revenue Segments: The company reported revenue from OEM services amounting to $280,096 for the six months ended June 30, 2025, indicating a shift in focus towards manufacturing services after the disposal of its subsidiary BEP.
• Operational Strategy: The company is actively seeking to expand its OEM business and is looking for potential acquisition targets to enhance its operational capabilities.
• Discontinued Operations: The company completed the sale of its subsidiary BEH, which was involved in distribution operations, for $400,000, as part of its strategy to dispose of non-profitable subsidiaries.
• Future Outlook: Management plans to increase income by strengthening the sales force, providing attractive sales incentive programs, and increasing marketing and promotion activities. The company is also exploring options to raise additional funds through private or public offerings or loans.
• Operational Challenges: The company faces substantial doubt about its ability to continue as a going concern due to accumulated deficits and net losses, prompting management to seek new business opportunities and financial support.
• Operational Adjustments: The company has outsourced its manufacturing services following the disposal of BEP, indicating a strategic shift in its operational model.
• Customer Concentration: For the six months ended June 30, 2025, the company had two major customers accounting for 67.8% and 24.3% of total sales, highlighting a reliance on a limited customer base.
• Vendor Concentration: The company relied on two major vendors for 77.7% and 22.3% of its total manufacturing service, indicating a dependency on key suppliers for its operations.

SEC Filing: Bio Essence Corp [ BIOE ] - 10-Q - Aug. 14, 2025