Quarterly report pursuant to Section 13 or 15(d)

Equity Method Investment

v3.19.2
Equity Method Investment
6 Months Ended
Jun. 30, 2019
Equity Method Investments and Joint Ventures [Abstract]  
EQUITY METHOD INVESTMENT

NOTE 9 – EQUITY METHOD INVESTMENT

 

As of June 30, 2019 and December 31, 2018, equity method investment amounted to $363,002 and $385,162, respectively. The investment represents the Company’s subsidiary, Avalon Shanghai’s interest in Epicon Biotech Co., Ltd. (“Epicon”). Epicon was incorporated on August 14, 2018 in PRC. Avalon Shanghai and the other unrelated company, Jiangsu Unicorn Biological Technology Co., Ltd. (“Unicorn”), accounted for 40% and 60% of the total ownership, respectively. Epicon is focused on cell preparation, third party testing, biological sample repository for commercial and scientific research purposes and the clinical transformation of scientific achievements.

 

The Company treats the equity investment in the consolidated financial statements under the equity method. Under the equity method, the investment is initially recorded at cost, adjusted for any excess of the Company’s share of the incorporated-date fair values of the investee’s identifiable net assets over the cost of the investment (if any). Thereafter, the investment is adjusted for the post incorporation change in the Company’s share of the investee’s net assets and any impairment loss relating to the investment. For the three and six months ended June 30, 2019, the Company’s share of Epicon’s net loss was $10,344 and $23,087, respectively, which was included in loss from equity-method investment in the accompanying consolidated statements of operations and comprehensive loss.

 

The tables below present the summarized financial information, as provided to the Company by the investee, for the unconsolidated company:

 

    June 30,
2019
    December 31,
2018
 
Current assets   $ 48,033     $ 301,714  
Noncurrent assets     204,181       7,015  
Current liabilities     38       38  
Noncurrent liabilities     -       -  
Equity     252,177       308,691  

 

    For the Three Months Ended
June 30,
2019
    For the Six Months Ended
June 30,
2019
 
Net revenue   $ -     $ -  
Gross profit     -       -  
Loss from operation     25,861       57,717  
Net loss     25,861       57,717