GOLDENWELL BIOTECH, INC. (GWLL)
Goldenwell Biotech, Inc. (GWLL) is a development-stage nutraceutical company formed in 2019. It licenses supplement technologies—freeze-dried peptides and collagen powders—from related parties and has no in-house manufacturing or patents. FY 2024 revenues were a mere $139 (down from $1,836 in FY ...
Goldenwell Biotech, Inc. (GWLL) 10-K Deep Dive: Is This Supplement Play Worth the Risk?
Goldenwell Biotech, Inc. is a Nevada‐incorporated biotech and nutraceutical company founded in 2019. In its most recent 10-K report for the fiscal year ended December 31, 2024, GWLL positions itself as an early‐stage developer of bioactive peptide and collagen-based dietary supplements. While the company touts potential benefits—everything from cardiovascular support to collagen rejuvenation—their financials, operational status, and capital requirements paint a far more cautious picture.
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Table of Contents
- Business Overview
- Product Pipeline
- Intellectual Property & Licensing
- Competitive Landscape
- Financial Performance
- Going Concern & Capital Needs
- Risk Factors
- Conclusion & Investment Score
Business Overview
Goldenwell Biotech, Inc. (“the Company”) is a development-stage issuer with its headquarters listed as a mail-drop office in Hudson, Ohio. Incorporation occurred in August 2019, but as of December 31, 2024, the company:
- Has no manufacturing facility or in‐house production.
- Conducts R&D and initial marketing analysis in-house, contracting out actual production planning.
- Reports only $139 in revenues for FY 2024, down from $1,836 in FY 2023, demonstrating negligible commercial traction.
The management team of three officers—CEO/President Shang Liu, CFO/Secretary Hua Xie, and Treasurer Li Yang—are also major shareholders and related‐party licensors, creating potential conflicts of interest.
Product Pipeline
Goldenwell’s product line is split into two categories:
- Category I: Polypeptide Freeze-Dried Powders
- JI MAI (Bovine Cardiac Vascular Active Peptide): Derived from bovine vascular tissue, freeze-dried to optimize human absorption.
- DPAG (3D Active Collagen Peptide): A low‐molecular‐weight (1,920 Da) collagen peptide optimized for skin health and joint support.
- Cartilage Peptide (Type II Collagen): From bovine/pig cartilage, high molecular weight (~8,000 Da) for bone and joint supplements.
- Category II: Solid Tablets
- Se Plus: Organic selenium complex and L-Se-Methylselenocysteine aimed at antioxidant and chemopreventive benefits.
- Sugar Master: Plant extract–based formula for blood sugar modulation.
While the formulations are scientifically plausible, none have moved beyond lab-scale extraction, enzymatic purification, or marketing‐analysis. No commercialization or FDA/USDA approvals appear in the filing.
Intellectual Property & Licensing
Goldenwell does not own patents. The company holds two exclusive license agreements:
- Australian Trefoil License: Covers Sugar Master and DNA Repair tech. Term expires November 15, 2025.
- JZY Biotech License: Covers the remaining product technology. Term expires January 11, 2035.
Both licences were granted by entities controlled by Goldenwell insiders (Li Yang or Shang Liu) for only $10 each. While nominal licensing fees reduce cash burn, they may raise corporate‐governance red flags.
Competitive Landscape
The dietary supplement sector is crowded with:
- Established players like GNC, Herbalife, and Nature’s Bounty.
- Agile direct‐to‐consumer startups focusing on clinically backed ingredients.
- In‐house private brands sold through Amazon, pharmacies, or specialty wellness channels.
Goldenwell’s niche—low‐temperature freeze-drying for potency—may appeal to quality‐focused customers but lacks a unique USP compared with competitors who already scale similar collagen and peptide products.
Financial Performance
Key figures (FY 2024 vs. FY 2023):
| Metric | 2024 | 2023 |
|---|---|---|
| Revenues | $ 139 | $ 1,836 |
| Cost of Goods Sold | $ 75 | $ 1,170 |
| Gross Profit | $ 64 | $ 666 |
| Operating Expenses | $ 123,162 | $ 116,492 |
| Net Loss | ($ 131,498) | ($ 117,361) |
| Cash & Cash Equivalents | $ 49,400 | $ 53,230 |
| Inventory | $ 174,788 | $ 174,863 |
| Total Assets | $ 224,192 | $ 228,094 |
| Total Liabilities | $ 271,433 | $ 143,837 |
| Stockholders’ Equity | ($ 47,241) | $ 84,257 |
Analysis
- Negligible revenues: Less than $200 in annual sales reflects that commercial launch has not occurred.
- Operating burn: Over $120,000/year of G&A with zero staffing or facility costs suggest disproportionate legal, consulting, and related-party fees.
- Leverage & related-party debt: $189,250 of long‐term debt from a related-party insider, plus another $95,588 from the CEO.
- Negative equity: A clear signal of an uncapitalized balance sheet.
Going Concern & Capital Needs
The Company discloses substantial doubt about its ability to continue as a going concern. Management estimates it requires approximately $5 million and “one year” to launch commercial manufacturing:
- Facility & equipment: Site selection, workshop installation, equipment procurement (all non‐specialized).
- Workforce training: No specialized labor required but initial training is necessary.
- Regulatory clearances: The company asserts none are needed, which may be optimistic depending on state and federal labeling or health‐claim rules.
Unless Goldenwell raises capital via equity or debt—particularly dilutive $5M+ financing—operations cannot scale.
Risk Factors
Though Goldenwell omits most Item 1A disclosures (exempt as a smaller reporting company), key risks include:
- Going concern: Dependent on successful capital raises.
- Lack of revenue model: No customers, no distribution channels, no sales team.
- Related-party licenses: Potential governance, valuation, and conflict-of-interest issues.
- No patents: Technology protection limited to trade secrets and near‐expiring license.
- Competitive pressure: Established supplement brands with marketing budgets and proven sales.
Conclusion & Investment Score
Goldenwell Biotech, Inc. remains a pure research‐and‐development shell. With sub-$200 of revenue, net losses exceeding $130,000, negative equity, and a $5 million funding gap, the company faces an uphill battle.
Investment Score: 2.0 / 10.0
This reflects extreme execution risk, a capital‐intensive manufacturing plan, corporate governance issues, and no near-term revenue prospects. Unless you see strategic value in a related-party licensing deal and believe GWLL can secure major funding, this stock is best approached with caution.
Disclaimer: This analysis is for informational purposes, based on Goldenwell Biotech’s 10-K filing. This is not investment advice. Always conduct your own due diligence or consult a financial professional before making investment decisions.