Press Releases

Avalon GloboCare Reports 75% Increase in Revenue for the Year Ended 2017

Shareholders' Equity Increased by $4.3 Million to $7.9 Million

FREEHOLD, NJ -- (Marketwired) -- 03/13/18 -- Avalon GloboCare Corp. (OTCQB: AVCO), a leading global developer of cell-based technologies, today announced financial results and provided a business update for the year ended December 31, 2017.

David Jin, M.D., Ph.D., CEO and President of Avalon GloboCare Corp., stated, "2017 was a very exciting year for Avalon as we laid the foundation in our efforts to become a significant player in the cell therapy and regenerative medicine markets. I am pleased to report the acquisition of the executive center property in Freehold, NJ, which houses our headquarters. This new facility is an important step in our overall strategy to build a global network of healthcare facilities that will both generate immediate cash flow and provide a network to support the roll-out of our planned cell therapies and related services. As a next step in our growth strategy, we acquired a controlling position in a Beijing exosome technology company, GenExosome Technologies Inc. (GenExosome), to pursue the global advancement of exosome technology for diagnosis and treatment of diseases. GenExosome's Exosome Isolation Systems were designed for use by researchers for biomarker discovery and clinical diagnostic development, as well as the advancement of targeted therapies."

"Last month, we announced that we have formally launched GenExosome's U.S. operations, with plans to market and distribute our proprietary Exosome Isolation Systems from the new headquarters in Ohio. We also announced plans to develop proprietary diagnostic and therapeutic products leveraging this breakthrough exosome technology. We believe our proprietary Exosome Isolation System is a disruptive and enabling technology that could transform the "liquid biopsy" and regenerative medicine markets by making exosome-specific diagnostics and therapies more readily available and commercially viable. Specifically, this technology enables us to capture exosomes quickly and efficiently from a tiny volume of any bodily fluids. Our studies have shown that our proprietary isolation system is more efficient and effective than what is available today, with faster extraction and higher purity results. Our current focus is on the development of diagnostic products in the fields of oncology, infectious diseases and fibrotic diseases, as well as the discovery and development of therapeutics based on disease-specific exosomes. We currently have four patents in China and we have several patents pending in the U.S. One of our goals in 2018 is to further expand our intellectual property protection," continued Dr. Jin.

"Importantly, we have strengthened our balance sheet with shareholders' equity increasing to $7.9 million at the end of December 31, 2017 compared to shareholders equity of $3.5 million at the end of 2016. We believe the increase in shareholders' equity brings us closer to achieving our goal of listing on a senior national stock exchange. We are constantly looking to grow through viable acquisitions and uplisting to a national exchange will provide us a stronger platform for acquisitions, while increasing our visibility within the investment community," concluded Dr. Jin.

Revenue for the year ended December 31, 2017 was $1.1 million versus $0.6 million for the year ended December 31, 2016. The increase in revenue was due to the executive property acquisition completed in 2017. Operating loss for the year December 31, 2017 was ($3.9) million versus operating income of $76,933 for year ended December 31, 2016, which reflects increased SG&A expenses to support the anticipated growth, as well as an increase in public company expenses in advance of the planned listing on a national exchange. Net loss for the year ended December 31, 2017 was ($3.5) million or ($0.05) earnings per share, versus net income of $55,581 or $0.00 earnings per share for the year ended December 31, 2016.

About Avalon GloboCare Corp.

Avalon GloboCare Corp. (OTCQB: AVCO) is a global intelligent biotech developer and healthcare service provider dedicated to promoting and empowering high impact, transformative cell-based /technologies and their clinical applications, as well as healthcare facility management through its core platforms, namely "Avalon Cell" and "Avalon Rehab." In addition, Avalon provides strategic advisory and outsourcing services to facilitate and enhance their clients' growth, development, as well as competitiveness in both domestic and global healthcare markets. Avalon also engages in the management of stem cell banks and specialty clinical laboratories. Through its U.S. subsidiary, GenExosome Technologies Inc., Avalon further establishes its leading role in the fields of liquid biopsy, precision medicine and regenerative medicine.

Forward-Looking Statements

Certain statements contained in this press release may constitute "forward-looking statements." Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors as disclosed in our filings with the Securities and Exchange Commission located at their website (http://www.sec.gov). In addition to these factors, actual future performance, outcomes, and results may differ materially because of more general factors including (without limitation) general industry and market conditions and growth rates, economic conditions, and governmental and public policy changes. The forward-looking statements included in this press release represent the Company's views as of the date of this press release and these views could change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to the date of the press release.

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AVALON GLOBOCARE CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

         
  As of  
  December 31, 2017   December 31, 2016  
ASSETS        
             
CURRENT ASSETS:            
  Cash $ 3,027,033   $ 2,886,189  
  Accounts receivable - net of allowance for doubtful accounts   10,179     -  
  Accounts receivable - related parties, net of allowance for doubtful accounts   -     70,228  
  Tenants receivable, net of allowance for doubtful accounts   38,469     -  
  Security deposit   6,916     -  
  Inventory   2,667     -  
  Prepaid expenses and other current assets   149,713     749,796  
             
    Total Current Assets   3,234,977     3,706,213  
             
OTHER ASSETS:            
  Security deposit - noncurrent portion   25,322     -  
  Prepayment for long-term assets   153,688     -  
  Property, plant and equipment, net   48,029     295  
  Investment in real estate, net   7,623,757     -  
  Intangible assets, net   1,583,260     -  
             
    Total Other Assets   9,434,056     295  
             
    Total Assets $ 12,669,033   $ 3,706,508  
             
LIABILITIES AND EQUITY            
             
CURRENT LIABILITIES:            
  Accounts payable $ 29   $ -  
  Accrued liabilities and other payables   262,174     22,334  
  Accrued liabilities and other payables - related parties   39,927     8,587  
  Deferred rental income   12,769     -  
  Loan payable   1,500,000     -  
  Income taxes payable   -     20,976  
  VAT and other taxes payable   2,997     11,270  
  Tenants' security deposit   92,288     -  
  Due to related parties   450,000     97,150  
  Refundable deposit   3,000,000     -  
             
    Total Current Liabilities   5,360,184     160,317  
             
  Commitments and Contingencies - (Note 19)            
             
EQUITY:            
  Preferred stock, $0.0001 par value; 10,000,000 shares authorized; no shares issued and outstanding at December 31, 2017 and 2016   -     -  
  Common stock, $0.0001 par value; 490,000,000 shares authorized; 70,278,622 and 61,628,622 shares issued and outstanding at December 31, 2017 and 2016, respectively   7,028     6,163  
  Additional paid-in capital   11,490,285     3,681,387  
  Accumulated deficit   (3,517,654 )   (53,369 )
  Statutory reserve   6,578     6,578  
  Accumulated other comprehensive loss - foreign currency translation adjustment   (91,994 )   (94,568 )
  Total Avalon GloboCare Corp. stockholders' equity   7,894,243     3,546,191  
  Non-controlling interest   (585,394 )   -  
             
    Total Equity   7,308,849     3,546,191  
             
    Total Liabilities and Equity $ 12,669,033   $ 3,706,508  

AVALON GLOBOCARE CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS

  For the Year Ended     For the Year Ended  
  December 31, 2017     December 31, 2016  
               
REVENUES              
  Real property rental $ 828,663     $ -  
  Medical related consulting services - related parties   222,611       616,446  
  Development services and sales of developed products   26,276       -  
    Total Revenues   1,077,550       616,446  
               
COSTS AND EXPENSES              
  Real property operating expenses   542,371       -  
  Medical related consulting services - related parties   272,400       73,066  
  Development services and sales of developed products   15,016       -  
    Total Costs and Expenses   829,787       73,066  
               
REAL PROPERTY OPERATING INCOME   286,292       -  
GROSS (LOSS) PROFIT FROM MEDICAL RELATED CONSULTING SERVICES   (49,789 )     543,380  
GROSS PROFIT FROM DEVELOPMENT SERVICES AND SALES OF DEVELOPED PRODUCTS   11,260       -  
               
OTHER OPERATING EXPENSES:              
  Selling expenses   15,253       6,894  
  Compensation and related benefits   1,291,183       10,088  
  Professional fees   1,033,308       395,780  
  Other general and administrative   464,544       53,685  
  Impairment loss   1,321,338       -  
               
    Total Other Operating Expenses   4,125,626       466,447  
               
(LOSS) INCOME FROM OPERATIONS   (3,877,863 )     76,933  
               
OTHER INCOME (EXPENSE)              
  Interest income   1,370       575  
  Interest expense   (138,110 )     -  
  Foreign currency transaction loss   (57,244 )     -  
  Grant income   22,202       -  
               
    Total Other (Expense) Income, net   (171,782 )     575  
               
(LOSS) INCOME BEFORE INCOME TAXES   (4,049,645 )     77,508  
               
INCOME TAXES   -       21,927  
               
NET (LOSS) INCOME $ (4,049,645 )   $ 55,581  
               
LESS: NET (LOSS) INCOME ATTRIBUTABLE TO NON-CONTROLLING INTEREST   (585,360 )     -  
               
NET (LOSS) INCOME ATTRIBUTABLE TO AVALON GLOBOCARE CORP. COMMON SHAREHOLDERS $ (3,464,285 )   $ 55,581  
               
COMPREHENSIVE LOSS:              
  NET (LOSS) INCOME   (4,049,645 )     55,581  
  OTHER COMPREHENSIVE INCOME (LOSS)              
    Unrealized foreign currency translation gain (loss)   2,540       (94,568 )
  COMPREHENSIVE LOSS $ (4,047,105 )   $ (38,987 )
  LESS: COMPREHENSIVE LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST   (585,394 )     -  
  COMPREHENSIVE LOSS ATTRIBUTABLE TO AVALON GLOBOCARE CORP. COMMON SHAREHOLDERS $ (3,461,711 )   $ (38,987 )
               
NET (LOSS) INCOME PER COMMON SHARE ATTRIBUTABLE TO AVALON GLOBOCARE CORP. COMMON SHAREHOLDERS:              
  Basic and diluted $ (0.05 )   $ 0.00  
               
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:              
  Basic and diluted   65,033,472       51,139,475  

AVALON GLOBOCARE CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS

  For the Year Ended     For the Year Ended  
  December 31, 2017     December 31, 2016  
               
CASH FLOWS FROM OPERATING ACTIVITIES:              
  Net (loss) income $ (4,049,645 )   $ 55,581  
  Adjustments to reconcile net (loss) income from operations to net cash (used in) provided by operating activities:              
    Depreciation and amortization   181,637       26  
    Stock-based compensation   992,997       52,550  
    Impairment loss   1,321,338       -  
  Changes in operating assets and liabilities, net of assets and liabilities assumed in business acquisition:              
    Accounts receivable   (9,803 )     -  
    Accounts receivable - related parties   72,187       (73,413 )
    Tenants receivable   (38,469 )     -  
    Inventory   (1,509 )     -  
    Prepaid expenses and other current assets   (98,917 )     (50,619 )
    Security deposit   (30,294 )     -  
    Accounts payable   28       -  
    Accrued liabilities and other payables   214,628       5,758  
    Accrued liabilities and other payables - related parties   31,331       (9,607 )
    Deferred rental income   12,769       -  
    Income taxes payable   (21,561 )     21,927  
    VAT and other taxes payable   (8,697 )     11,781  
    Tenants' security deposit   92,288       -  
               
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES   (1,339,692 )     13,984  
               
CASH FLOWS FROM INVESTING ACTIVITIES:              
  Prepayment made for acquisition of real property   -       (700,000 )
  Purchase of Avalon GloboCare Corp.'s shares by AHS   -       (230,000 )
  Prepayment made for purchase of long-term assets   (148,010 )     -  
  Purchase of property, plant and equipment   (53,812 )     (334 )
  Purchase of intangible assets   (876,087 )     -  
  Purchase of commercial real estate   (7,008,571 )     -  
  Cash acquired on acquisition of business   72,032       -  
               
NET CASH USED IN INVESTING ACTIVITIES   (8,014,448 )     (930,334 )
               
CASH FLOWS FROM FINANCING ACTIVITIES              
  Proceeds received from loan payable   2,100,000       -  
  Repayments for loan   (600,000 )     -  
  Proceeds received from related parties' advance   210,000       9,000  
  Repayment for related parties' advance   (307,150 )     -  
  Proceeds received from AHS's founders' contribution   -       141,000  
  Refundable deposit in connection with Share Subscription Agreement   3,000,000       -  
  Proceeds received from sale of common stock   5,150,000       3,635,000  
  Payment of issuance costs related to sale of common stock   (50,625 )     -  
               
NET CASH PROVIDED BY FINANCING ACTIVITIES   9,502,225       3,785,000  
               
EFFECT OF EXCHANGE RATE ON CASH   (7,241 )     (92,047 )
               
NET INCREASE IN CASH   140,844       2,776,603  
               
CASH - beginning of year   2,886,189       109,586  
               
CASH - end of year $ 3,027,033     $ 2,886,189  
               
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:              
  Cash paid for:              
    Interest $ -     $ -  
    Income taxes $ 21,561     $ -  
               
NON-CASH INVESTING AND FINANCING ACTIVITIES:              
  Common stock issued in connection with Share Subscription Agreement $ 300     $ -  
  Distribution of Avalon GloboCare Corp.'s shares to AHS's founders $ -     $ 230,000  
  Acquisition of real estate by decreasing prepayment for property $ 700,000     $ -  
  Common stock issued on purchase of intangible assets $ 500,000     $ -  
  GenExosome's shares issued on purchase of intangible assets $ 1,217,391     $ -  
  Business acquired on credit $ 450,000     $ -  

Contact Information:
Avalon GloboCare Corp.
4400 South Street, Suite 3100
Freehold, New Jersey 07728
PR@Avalon-GloboCare.com

Investor Relations:
Crescendo Communications, LLC
Tel: (212) 671-1020
avco@crescendo-ir.com

Source: Avalon GloboCare Corp.