Press Releases

Avalon GloboCare Provides First Quarter 2018 Business Update; Reports 365% Increase in Revenues and Progress Towards Commercialization of its Cell-Based Technologies

FREEHOLD, N.J., May 14, 2018 (GLOBE NEWSWIRE) -- Avalon GloboCare Corp. (OTCQB:AVCO), a leading global developer of cell-based technologies, today announced financial results and provided a business update for the first quarter ended March 31, 2018.

First Quarter 2018 Highlights:

  • Revenues increased 365% to $307,913 for the first quarter ended March 31, 2018;
  • Cash at March 31, 2018 was $2.1 million;
  • Teamed up with Weill Cornell Medicine to establish joint translational research initiative in stem cell technology and regenerative medicine;
  • Formed strategic partnership with major biomedical enterprise Da An Gene Co., Ltd. (“Da An Gene”);
  • Majority-owned subsidiary, GenExosome Technologies Inc., launched its U.S. operations in Ohio;
  • Formed joint laboratory with top-ranked hospital in Shanghai for regenerative exosomics;
  • Submitted application for Nasdaq listing.

David Jin, M.D., Ph.D., CEO and President of Avalon GloboCare Corp., stated, “We made significant progress in the first quarter of 2018. We started off the year by forming a strategic partnership with Da An Gene, which is a leader in the molecular diagnostics market. We believe this partnership will help significantly accelerate our product development and commercialization by leveraging Da An Gene’s genomic sequencing and profiling platform, as well as its commercial network.”

“We have continued our expansion in the U.S. by launching operations of our GenExosome subsidiary in Ohio, where we plan to market and distribute our Exosome Isolation Systems. We are making progress with our commercial launch and believe this technology has the potential to transform the liquid biopsy and regenerative medicine markets by making exosome-specific diagnostics and therapies readily available and commercially viable. Continuing our U.S. growth, we have also jointly established a translational research training program with the Shahin Rafii Laboratory of the Division of Regenerative Medicine at Weill Cornell Medicine in New York. The joint laboratory provides us access to a world-class stem cell facility along with the existing clinical resources available to us through the Lu Daopei hospital network,” continued Dr. Jin.

“Importantly, we are moving forward with our plans to list on NASDAQ, which we believe will provide us greater exposure within the investment community as we execute on our upcoming milestones,” concluded Dr. Jin.

Revenues for the first quarter ended March 31, 2018 were $307,913 versus $66,286 for the first quarter ended March 31, 2017. The increase in revenues was due to property rental income, development services and sales of developed products. Operating loss for the quarter ended March 31, 2018 was $1.3 million versus operating loss of $0.5 million for first quarter ended March 31, 2017, 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 first quarter ended March 31, 2018 was $1.55 million or ($0.02) earnings per share, versus net loss of $0.55 million or ($0.01) earnings per share for the first quarter ended March 31, 2017.

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.

Contact Information:
Avalon GloboCare Corp.
4400 Route 9, Suite 3100
Freehold, NJ 07728
PR@Avalon-GloboCare.com

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

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AVALON GLOBOCARE CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
             
        As of
        March 31, 2018   December 31, 2017
        (Unaudited)    
ASSETS        
             
CURRENT ASSETS:        
  Cash $ 2,125,656   $ 3,027,033  
  Accounts receivable, net of allowance for doubtful accounts   7,027     10,179  
  Tenants receivable, net of allowance for doubtful accounts   37,990     38,469  
  Security deposit   28,016     6,916  
  Inventory   10,111     2,667  
  Prepaid expenses and other current assets   74,406     149,713  
             
    Total Current Assets   2,283,206     3,234,977  
             
OTHER ASSETS:        
  Security deposit - noncurrent portion   -     25,322  
  Prepayment for long-term assets   47,714     153,688  
  Property and equipment, net   158,415     48,029  
  Investment in real estate, net   7,591,952     7,623,757  
  Intangible assets, net   1,501,367     1,583,260  
             
    Total Other Assets   9,299,448     9,434,056  
             
    Total Assets $ 11,582,654   $ 12,669,033  
             
LIABILITIES AND EQUITY        
             
CURRENT LIABILITIES:        
  Accounts payable $ -   $ 29  
  Accrued liabilities and other payables   302,500     124,064  
  Accrued liabilities and other payables - related parties   25,481     39,927  
  Deferred rental income   7,254     12,769  
  Loan payable   1,500,000     1,500,000  
  Interest payable   375,096     138,110  
  VAT and other taxes payable   34,357     2,997  
  Tenants' security deposit   73,400     92,288  
  Due to related party   450,000     450,000  
  Refundable deposit   3,000,000     3,000,000  
             
    Total Current Liabilities   5,768,088     5,360,184  
             
  Commitments and Contingencies        
             
EQUITY:        
  Preferred stock, $0.0001 par value; 10,000,000 shares authorized;        
    no shares issued and outstanding at March 31, 2018 and December 31, 2017   -     -  
  Common stock, $0.0001 par value; 490,000,000 shares authorized;        
    70,278,622 shares issued and 69,758,622 shares outstanding at March 31, 2018;        
    70,278,622 shares issued and outstanding at December 31, 2017   7,028     7,028  
  Additional paid-in capital   12,016,633     11,490,285  
  Less: common stock held in treasury, at cost;        
    520,000 and 0 shares at March 31, 2018 and December 31, 2017, respectively   (522,500 )   -  
  Accumulated deficit   (4,999,233 )   (3,517,654 )
  Statutory reserve   6,578     6,578  
  Accumulated other comprehensive loss - foreign currency translation adjustment   (39,316 )   (91,994 )
  Total Avalon GloboCare Corp. stockholders' equity   6,469,190     7,894,243  
  Non-controlling interest   (654,624 )   (585,394 )
             
    Total Equity   5,814,566     7,308,849  
             
    Total Liabilities and Equity $ 11,582,654   $ 12,669,033  
                 


   
AVALON GLOBOCARE CORP. AND SUBSIDIARIES  
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS  
               
        For the Three Months Ended   For the Three Months Ended  
        March 31, 2018   March 31, 2017  
               
REVENUES          
  Real property rental $ 296,623   $ -    
  Development services and sales of developed products   11,290     -    
  Medical related consulting services - related party   -     66,286    
    Total Revenues   307,913     66,286    
               
COSTS AND EXPENSES          
  Real property operating expenses   210,274     -    
  Development services and sales of developed products   16,520     -    
  Medical related consulting services - related party   -     99,581    
    Total Costs and Expenses   226,794     99,581    
               
REAL PROPERTY OPERATING INCOME   86,349     -    
GROSS LOSS FROM DEVELOPMENT SERVICES AND SALES OF DEVELOPED PRODUCTS   (5,230 )   -    
GROSS LOSS FROM MEDICAL RELATED CONSULTING SERVICES   -     (33,295 )  
               
OTHER OPERATING EXPENSES:          
  Selling expenses   -     8,711    
  Compensation and related benefits   538,814     182,927    
  Professional fees   571,772     207,218    
  Other general and administrative   285,252     60,732    
               
    Total Other Operating Expenses   1,395,838     459,588    
               
LOSS FROM OPERATIONS   (1,314,719 )   (492,883 )  
               
OTHER INCOME (EXPENSE)          
  Interest income   408     794    
  Interest expense   (236,986 )   -    
  Foreign currency transaction loss   -     (57,244 )  
  Other income   328     -    
               
    Total Other Expense, net   (236,250 )   (56,450 )  
               
LOSS BEFORE INCOME TAXES   (1,550,969 )   (549,333 )  
               
INCOME TAXES   -     -    
               
NET LOSS $ (1,550,969 ) $ (549,333 )  
               
LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST   (69,390 )   -    
               
NET LOSS ATTRIBUTABLE TO AVALON GLOBOCARE CORP. COMMON SHAREHOLDERS $ (1,481,579 ) $ (549,333 )  
               
COMPREHENSIVE LOSS:          
  NET LOSS   (1,550,969 )   (549,333 )  
  OTHER COMPREHENSIVE INCOME (LOSS)          
    Unrealized foreign currency translation gain (loss)   52,838     (39,771 )  
  COMPREHENSIVE LOSS $ (1,498,131 ) $ (589,104 )  
  LESS: COMPREHENSIVE LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST   (69,230 )   -    
  COMPREHENSIVE LOSS ATTRIBUTABLE TO AVALON GLOBOCARE CORP. COMMON SHAREHOLDERS $ (1,428,901 ) $ (589,104 )  
               
NET LOSS PER COMMON SHARE ATTRIBUTABLE TO AVALON GLOBOCARE CORP. COMMON SHAREHOLDERS:          
    Basic and diluted $ (0.02 ) $ (0.01 )  
               
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:          
      Basic and diluted   69,781,733     62,595,289    
               


 
AVALON GLOBOCARE CORP. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
             
        For the Three Months Ended   For the Three Months Ended
        March 31, 2018   March 31, 2017
             
CASH FLOWS FROM OPERATING ACTIVITIES:        
  Net loss $ (1,550,969 ) $ (549,333 )
  Adjustments to reconcile net loss from operations to        
    net cash used in operating activities:        
    Depreciation and amortization   123,379     26  
    Stock-based compensation and service fees   526,348     138,334  
  Changes in operating assets and liabilities:        
    Accounts receivable   3,469     -  
    Accounts receivable - related parties   -     547  
    Tenants receivable   479     -  
    Inventory   (7,372 )   -  
    Prepaid expenses and other current assets   75,693     2,254  
    Security deposit   5,284     (23,922 )
    Accounts payable   (30 )   -  
    Accrued liabilities and other payables   178,136     29,202  
    Accrued liabilities and other payables - related parties   (14,498 )   16,257  
    Deferred rental income   (5,515 )   -  
    Interest payable   236,986     -  
    Income taxes payable   -     (21,150 )
    VAT and other taxes payable   31,264     (5,029 )
    Tenants' security deposit   (18,888 )   -  
             
NET CASH USED IN OPERATING ACTIVITIES   (416,234 )   (412,814 )
             
CASH FLOWS FROM INVESTING ACTIVITIES:        
  Prepayment made for acquisition of real property   -     (2,000 )
  Purchase of property and equipment   (7,852 )   -  
             
NET CASH USED IN INVESTING ACTIVITIES   (7,852 )   (2,000 )
             
CASH FLOWS FROM FINANCING ACTIVITIES        
               
  Repurchase of common stock   (522,500 )   -  
  Refundable deposit in connection with Share Subscription Agreement   -     3,000,000  
             
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES   (522,500 )   3,000,000  
             
EFFECT OF EXCHANGE RATE ON CASH   45,209     (40,147 )
             
NET (DECREASE) INCREASE IN CASH   (901,377 )   2,545,039  
             
CASH  - beginning of period   3,027,033     2,886,189  
             
CASH - end of period $ 2,125,656   $ 5,431,228  
             
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:        
  Cash paid for:        
    Interest $ -   $ -  
    Income taxes $ -   $ 21,150  
             
NON-CASH INVESTING AND FINANCING ACTIVITIES:        
  Common stock issued in connection with Share Subscription Agreement $ -   $ 300  
  Acquisition of equipment by decreasing prepayment for long-term assets $ 110,103   $ -  

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Source: Avalon GloboCare Corp.