VitaSpring Biomedical (VSBC) Financial Performance and Risk Analysis Report

Based on the obtained SEC filings and company data, I am providing you with a comprehensive financial analysis report for VitaSpring Biomedical Co. Ltd.

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VitaSpring Biomedical Co. Ltd. is a development-stage biomedical company focused on the application of cell-based technologies in the fields of regenerative medicine, preventive healthcare, aesthetics, and anti-aging[0][1]. Formerly known as Shenn Corp., the company was incorporated in Nevada on September 6, 2016, and changed its name to its current name on April 21, 2020. The company currently trades on the OTC Market under the ticker symbol VSBC[0].

As of November 12, 2025, the company has no full-time employees other than executive officers, and its operations are supported by a network of contractors, consultants, scientists, and research partners[0].

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Financial Metric	FY2023	FY2022	Change Analysis
Operating Revenue	$0	$5,613,200	Shifted from profit to loss, revenue dropped to zero
Gross Profit/Gross Loss	($3,333,000)	$2,068,000	Gross margin deteriorated
Operating Loss	($4,177,836)	$1,126,664	Loss widened
Net Income	($4,164,396)	$909,560	Shifted from profit to loss

• In FY2023, there was no main business revenue, primarily due to the discontinuation of the one-time product sales from FY2022[0]
• Operating expenses were controlled at $844,836, a decrease from $941,336 in FY2022, mainly due to reductions in professional service fees and general administrative costs[0]
• Cash flow from operating activities was -$77,556, a significant improvement from -$269,631 in FY2022, demonstrating stricter working capital management[0]

Assets/Liability Items	Amount
Total Assets	$765,948
Current Assets	$437,078
Cash and Cash Equivalents	$29,656
Total Liabilities	$3,162,440
Shareholders’ Equity (Deficit)	($2,396,492)
Current Ratio	0.14

• The company is in a serious insolvent state with negative shareholders’ equity[0]
• Liquidity is extremely strained, with a current ratio of only 0.14, far below a healthy level[0]
• Related party payables amount to $2,411,000, accounting for 78.5% of current liabilities[0]

• Current Stock Price: $1.00
• Market Capitalization: $207 million
• 1-Year Performance: -93.75%
• Price-to-Book Ratio: -86.18x
• Price-to-Earnings Ratio: -49.59x[0]

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As of January 31, 2023, the company’s accumulated deficit has reached $3,388,019, and cash flow from operating activities remains negative. The company clearly disclosed in its annual report that existing cash resources are insufficient to support operations over the next 12 months, and it will need to rely on external financing to sustain its business[0].

If sufficient financing cannot be obtained, the company may face the risk of delaying, reducing, or terminating some business activities. This uncertainty constitutes a significant threat to its ability to continue as a going concern.

The company has material internal control deficiencies, including:

• Failure to maintain proper segregation of duties
• Failure to hire sufficient accounting personnel with experience related to US GAAP and SEC reporting requirements

These deficiencies significantly increase the risk of material misstatement in financial reporting, which may impact investors’ confidence in the accuracy of the company’s financial statements[0].

The company’s business model shows:

• 100% of purchases are from a single related party supplier
• This supplier is controlled by a shareholder with more than 20% ownership
• 100% of FY2022 revenue came from a single customer

This highly concentrated business relationship makes the company extremely vulnerable to changes in suppliers or customers, which may have a significant negative impact on its financial condition[0].

In August 2025, core management including the former CEO and Chairman of the company resigned. In addition, the former management is involved in civil and criminal legal proceedings in Taiwan. Although the company is not a party to the proceedings, there is uncertainty regarding potential reputational damage and operational impact[0].

The new management is restructuring the leadership team, but risks to business continuity and strategic execution brought about by management changes still require attention.

As a development-stage biomedical company, the company has not yet established a sustainable revenue model:

• Zero revenue in FY2023
• Business is highly dependent on one-time transactions
• Significant uncertainty exists in future commercialization processes

Biomedical products typically require a long cycle and substantial capital investment from R&D to commercialization, and there is significant uncertainty regarding the company’s ability to successfully achieve commercialization[0].

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Based on the following factors, the company’s stock is only suitable for professional investors with high risk tolerance:

Evaluation Dimension	Assessment
Financial Health	Extremely Poor (Insolvent, Liquidity Exhausted)
Business Maturity	Extremely Low (Zero Revenue, Dependent on Single Transactions)
Risk Level	Extremely High (Multi-Dimensional Risks Overlapping)
Valuation Rationality	Questionable (Severe Divergence Between Market Capitalization and Fundamentals)

Despite numerous risks, the company still has certain potential value:

1. Broad Industry Prospects
   : Regenerative medicine and cell technologies are high-growth sectors in the biomedical field
2. Core Technology Potential
   : Cell-based technologies have application potential in the fields of anti-aging and regenerative medicine
3. Management Restructuring
   : The new management team may bring new strategic directions and development opportunities
4. Financing Possibility
   : If external financing can be successfully obtained, it may provide capital support for business development

Investor Type	Recommendation
Risk-Averse	Avoid, refrain from investing
Growth-Oriented/Risk-Prone	Only for very small positions (<1% of portfolio), prepare for total loss
Professional Institutions	Can be used as a high-risk speculative allocation, requires in-depth due diligence
Short-Term Traders	High liquidity risk, not recommended to participate

If investors choose to follow this target, it is recommended to continuously monitor the following indicators:

• Progress of subsequent financing (private equity, debt financing, strategic cooperation)
• New product development progress and commercialization timeline
• Execution capability after management restructuring
• Progress of internal control rectification
• Material event changes disclosed in SEC filings

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VitaSpring Biomedical Co. Ltd. is an early-stage, high-risk biotechnology company. Its Form 10-Q quarterly report due in January 2025 reveals severe financial conditions and multiple risk factors[0].

1. The company’s financial condition is extremely strained, facing significant going concern uncertainty
2. Internal control deficiencies and business model sustainability issues are prominent
3. Management changes bring additional uncertainty
4. Stock price performance reflects market concerns about the company’s fundamentals

, the company’s stock is a high-risk investment product, only suitable for professional investors with extremely high risk tolerance who can bear total investment losses. For the vast majority of investors, it is recommended to avoid such targets or limit the allocation ratio to an extremely low level.

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[0] VitaSpring Biomedical Co. Ltd. Form 10-K Annual Report. SEC.gov. Retrieved January 14, 2026. (https://www.sec.gov/Archives/edgar/data/1697884/000164033425002237/vsbc_10k.htm)

[1] VitaSpring Biomedical Co. Ltd. Company Overview and SEC Filing Dates. Financial API Data. Retrieved January 14, 2026.