Press Releases

Avalon GloboCare Provides Third Quarter 2018 Business Update; Reports 30% Increase in Revenues

FREEHOLD, N.J., Nov. 13, 2018 (GLOBE NEWSWIRE) -- Avalon GloboCare Corp. (NASDAQ: AVCO), a leading global developer of cell-based technologies, today announced financial results and provided a business update for the third quarter ended September 30, 2018.

Third Quarter 2018 Highlights:

  • Revenues increased 30% to $413,503 for the third quarter ended September 30, 2018;
  • Cash at September 30, 2018 was $3.8 million;
  • Total assets increased to approximately $15.0 million while total liabilities decreased to approximately $2.2 million;
  • Formed a new wholly owned U.S. subsidiary, Avactis Biosciences, Inc., focused on accelerating commercial activities related to cellular therapies, including regenerative medicine with stem/progenitor cells as well as cellular immunotherapy including CAR-T, CAR-NK, TCR-T and others;
  • Appointed prominent Life Science M&A attorney Steven Sanders to the Board of Directors;
  • Formed a strategic partnership with Weill Cornell’s cGMP cellular therapy facility and laboratory for advanced cellular engineering to co-develop technologies and bio-production of CAR-T therapy;
  • Appointed former Medical Director at M.D. Anderson Cancer Center, Dr. James L. Gajewski, to head scientific and clinical advisory board;
  • Commenced operation of Epicon Biotech Co. Ltd., a joint venture with Jiangsu Unicorn Biological Technology Co. Ltd., to establish a provincial network of translational cellular therapies and bio-banking programs.

David Jin, M.D., Ph.D., CEO and President of Avalon GloboCare Corp., commented, “This has been a very busy quarter, as we continue to advance our cell-based therapies and regenerative medicine platform. In July, we formed a new wholly owned U.S. subsidiary, Avactis Biosciences, Inc., which will be taking on specific roles in CAR-T bio-manufacturing, standardization, and bio-banking for the LuDaopei Hospital network and other affiliated hospitals. Our proprietary, breakthrough technologies have the potential to revolutionize the manufacturing and therapeutic options for cancer patients, particularly in hematologic malignancies (such as B-ALL and non-Hodgkin Lymphoma). Our plan is to establish a unique, full-suite, integrated system for CAR-T bio-manufacturing, standardization, international multi-centered clinical studies, and intelligent bio-banking. In addition, we have formed a strategic partnership with Weill Cornell’s cGMP cellular therapy facility and laboratory for advanced cellular engineering. This strategic partnership will synergize Weill Cornell’s world-class cGMP cellular therapy facility and our immense clinical resources at the LuDaopei hospital network to accelerate innovative CAR-T technology development, standardization in bio-manufacturing process, as well as knowledge exchange in CAR-T and other cellular therapies.”

“During the quarter, we commenced operation of Epicon Biotech Co. Ltd., a joint venture with Jiangsu Unicorn Biological Technology Co. Ltd., to establish the world’s largest aqueous humor derived exosome bio-bank to advance the next-generation of diagnosis and therapeutics for ophthalmologic diseases. Epicon occupies a 16,000 square foot, state-of-the-art Good Manufacturing Practice (GMP) laboratory space for processing, biobanking and preparation of clinical-grade products for cellular therapy.  Epicon plays an essential role in facilitating standardized GMP laboratory platform for our subsidiaries- GenExosome Technologies and Avactis Biosciences.   This state-of-the-art platform serves well to accelerate our international programs in exosome technology, cellular therapeutics and bio-banking.”

“Finally, we are very pleased to have successfully uplisted to the NASDAQ Capital Markets last week. Listing on NASDAQ provides us greater exposure within the investment community as we execute on key upcoming milestones. Towards this end we appointed two high-profile independent board members, which reinforces our commitment to the highest levels of corporate governance.  We also appointed Dr. James Gajewski to head our Scientific and Clinical Advisory Board. Mr. Gajewski will aid our mission of accelerating translational research, clinical development, and commercialization of cellular technologies and therapeutics,” concluded Dr. Jin.

Revenues for the third quarter ended September 30, 2018 were $413,503 versus $317,450 for the third quarter ended September 30, 2017. The increase in revenues was due to development services and sales of developed products, and medical related consulting services. Operating loss for the third quarter ended September 30, 2018 was $2.4 million versus operating loss of $0.7 million for third quarter ended September 30, 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 attributable to Avalon GloboCare Corp. common shareholders for the third quarter ended September 30, 2018 was $2.3 million or ($0.03) earnings per share, versus net loss attributable to Avalon GloboCare Corp. common shareholders of $0.7 million or ($0.01) earnings per share for the third quarter ended September 30, 2017.

About Avalon GloboCare Corp.

Avalon GloboCare Corp. (NASDAQ: 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. subsidiaries, namely GenExosome Technologies Inc. and Avactis Biosciences Inc., Avalon will further establish our leading roles in the fields of CAR-T therapy, 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
                                                                           


AVALON GLOBOCARE CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

    As of  
    September 30, 2018     December 31, 2017  
    (Unaudited)        
ASSETS            
             
CURRENT ASSETS:                
Cash   $ 3,810,139     $ 3,027,033  
Accounts receivable, net of allowance for doubtful accounts     134,319       10,179  
Accounts receivable - related party, net of allowance for doubtful accounts     214,665        
Tenants receivable, net of allowance for doubtful accounts     51,244       38,469  
Security deposit     418,464       6,916  
Security deposit - related party     291,163        
Inventory     27,427       2,667  
Prepaid expenses and other current assets     364,655       149,713  
                 
Total Current Assets     5,312,076       3,234,977  
                 
NON-CURRENT ASSETS:                
Security deposit - noncurrent portion           25,322  
Prepayment for long-term assets           153,688  
Property and equipment, net     271,526       48,029  
Investment in real estate, net     7,920,912       7,623,757  
Intangible assets, net     1,337,582       1,583,260  
                 
Total Non-current Assets     9,530,020       9,434,056  
                 
Total Assets   $ 14,842,096     $ 12,669,033  
                 
LIABILITIES AND EQUITY                
                 
CURRENT LIABILITIES:                
Accounts payable   $ 106,331     $ 29  
Accrued liabilities and other payables     657,815       124,064  
Accrued liabilities and other payables - related parties     3,873       39,927  
Deferred rental income     3,525       12,769  
Loan payable           1,500,000  
Interest payable     50,137       138,110  
VAT and other taxes payable     13,218       2,997  
Tenants’ security deposit     73,400       92,288  
Due to related party     250,000       450,000  
Refundable deposit           3,000,000  
                 
Total Current Liabilities     1,158,299       5,360,184  
                 
NON-CURRENT LIABILITIES:                
Loan payable - noncurrent portion     1,000,000        
                 
Total Non-current Liabilities     1,000,000        
                 
Total Liabilities     2,158,299       5,360,184  
                 
Commitments and Contingencies - (Note 19)                
                 
EQUITY:                
Preferred stock, $0.0001 par value; 10,000,000 shares authorized; no shares issued and outstanding at September 30, 2018 and December 31, 2017            
Common stock, $0.0001 par value; 490,000,000 shares authorized; 73,560,751 shares issued and 73,040,751 shares outstanding at September 30, 2018; 70,278,622 shares issued and outstanding at December 31, 2017     7,356       7,028  
Additional paid-in capital     22,822,878       11,490,285  
Less: common stock held in treasury, at cost; 520,000 and 0 shares at September 30, 2018 and December 31, 2017, respectively     (522,500 )      
Accumulated deficit     (8,638,297 )     (3,517,654 )
Statutory reserve     6,578       6,578  
Accumulated other comprehensive loss - foreign currency translation adjustment     (229,260 )     (91,994 )
Total Avalon GloboCare Corp. stockholders’ equity     13,446,755       7,894,243  
Non-controlling interest     (762,958 )     (585,394 )
                 
Total Equity     12,683,797       7,308,849  
                 
Total Liabilities and Equity   $ 14,842,096     $ 12,669,033  
                 


AVALON GLOBOCARE CORP. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

    For the
Three
Months
Ended
September
30, 2018
    For the
Three
Months
Ended
September
30, 2017
    For the
Nine
Months
Ended
September
30, 2018
    For the
Nine
Months
Ended
September
30, 2017
 
REVENUES                        
Real property rental   $ 272,444     $ 315,284     $ 847,939     $ 537,538  
Medical related consulting services - related parties     71,398       2,166       213,394       220,949  
Development services and sales of developed products     69,661             156,176        
Total Revenues     413,503       317,450       1,217,509       758,487  
                                 
COSTS AND EXPENSES                                
Real property operating expenses     190,899       180,722       597,114       342,576  
Medical related consulting services - related parties     64,196       47,033       188,911       271,845  
Development services and sales of developed products     40,386             98,999        
Total Costs and Expenses     295,481       227,755       885,024       614,421  
                                 
REAL PROPERTY OPERATING INCOME     81,545       134,562       250,825       194,962  
GROSS PROFIT (LOSS) FROM MEDICAL RELATED CONSULTING SERVICES     7,202       (44,867 )     24,483       (50,896 )
GROSS PROFIT FROM DEVELOPMENT SERVICES AND SALES OF DEVELOPED PRODUCTS     29,275             57,177        
                                 
OTHER OPERATING EXPENSES:                                
Selling expenses           148             15,138  
Advertising expenses     150,548             150,548        
Compensation and related benefits     569,915       468,837       1,596,181       857,237  
Professional fees     1,449,768       186,208       2,614,565       566,131  
Other general and administrative     327,209       92,421       878,582       245,080  
                                 
Total Other Operating Expenses     2,497,440       747,614       5,239,876       1,683,586  
                                 
LOSS FROM OPERATIONS     (2,379,418 )     (657,919 )     (4,907,391 )     (1,539,520 )
                                 
OTHER INCOME (EXPENSE)                                
Interest income     1,394       122       3,102       1,126  
Interest expense     (25,205 )     (52,932 )     (287,123 )     (94,932 )
Foreign currency transaction loss                 (106,929 )     (57,244 )
Other (expense) income     (22 )           306        
                                 
Total Other Expense, net     (23,833 )     (52,810 )     (390,644 )     (151,050 )
                                 
LOSS BEFORE INCOME TAXES     (2,403,251 )     (710,729 )     (5,298,035 )     (1,690,570 )
                                 
INCOME TAXES                        
                                 
NET LOSS   $ (2,403,251 )   $ (710,729 )   $ (5,298,035 )   $ (1,690,570 )
                                 
LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST     (58,581 )           (177,392 )      
                                 
NET LOSS ATTRIBUTABLE TO AVALON GLOBOCARE CORP. COMMON SHAREHOLDERS   $ (2,344,670 )   $ (710,729 )   $ (5,120,643 )   $ (1,690,570 )
                                 
COMPREHENSIVE LOSS:                                
NET LOSS     (2,403,251 )     (710,729 )     (5,298,035 )     (1,690,570 )
OTHER COMPREHENSIVE (LOSS) INCOME                                
Unrealized foreign currency translation (loss) gain     (94,069 )     6,151       (137,438 )     (25,973 )
COMPREHENSIVE LOSS   $ (2,497,320 )   $ (704,578 )   $ (5,435,473 )   $ (1,716,543 )
LESS: COMPREHENSIVE LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST     (58,794 )           (177,564 )      
COMPREHENSIVE LOSS ATTRIBUTABLE TO AVALON GLOBOCARE CORP. COMMON SHAREHOLDERS   $ (2,438,526 )   $ (704,578 )   $ (5,257,909 )   $ (1,716,543 )
                                 
NET LOSS PER COMMON SHARE ATTRIBUTABLE TO AVALON GLOBOCARE CORP. COMMON SHAREHOLDERS:                                
Basic and diluted   $ (0.03 )   $ (0.01 )   $ (0.07 )   $ (0.03 )
                                 
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:                                
Basic and diluted     72,573,462       64,628,622       71,611,375       63,958,292  
                                 


AVALON GLOBOCARE CORP. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

    For the Nine
Months
Ended
September
30, 2018
    For the Nine
Months
Ended 
September
30, 2017
 
             
CASH FLOWS FROM OPERATING ACTIVITIES:                
Net loss   $ (5,298,035 )   $ (1,690,570 )
Adjustments to reconcile net loss from operations to net cash used in operating activities:                
Depreciation and amortization     383,603       58,478  
Stock-based compensation expense     2,224,969       602,224  
Changes in operating assets and liabilities:                
Accounts receivable     (131,357 )      
Accounts receivable - related parties     (226,166 )     (91,463 )
Tenants receivable     (12,775 )     (56,239 )
Inventory     (25,876 )      
Prepaid expenses and other current assets     (94,094 )     14,151  
Security deposit     (710,098 )     (30,081 )
Accounts payable     18,105       21,600  
Accrued liabilities and other payables     454,772       320,505  
Accrued liabilities and other payables - related parties     (35,846 )     22,990  
Deferred rental income     (9,244 )     19,914  
Interest payable     (87,973 )      
Income taxes payable           (21,400 )
VAT and other taxes payable     28,207       (9,453 )
Tenants’ security deposit     (18,888 )     92,288  
                 
NET CASH USED IN OPERATING ACTIVITIES     (3,540,696 )     (747,056 )
                 
CASH FLOWS FROM INVESTING ACTIVITIES:                
Purchase of property and equipment     (49,949 )     (50,994 )
Purchase of commercial real estate           (7,008,571 )
Improvement of commercial real estate     (392,571 )      
Payment for previously acquired business     (200,000 )      
                 
NET CASH USED IN INVESTING ACTIVITIES     (642,520 )     (7,059,565 )
                 
CASH FLOWS FROM FINANCING ACTIVITIES                
Proceeds received from loan payable           2,100,000  
Repayments for loan     (500,000 )      
Proceeds received from related parties’ advance           210,000  
Repayment for related parties’ advance           (500 )
Repurchase of common stock     (522,500 )      
Refundable deposit in connection with Share Subscription Agreement           3,000,000  
Refund for refundable deposit in connection with Share Subscription Agreement     (1,000,000 )      
Proceeds received from equity offering     7,551,013        
Disbursements for equty offering costs     (486,296 )      
                 
NET CASH PROVIDED BY FINANCING ACTIVITIES     5,042,217       5,309,500  
                 
EFFECT OF EXCHANGE RATE ON CASH     (75,895 )     (32,246 )
                 
NET INCREASE (DECREASE) IN CASH     783,106       (2,529,367 )
                 
CASH - beginning of period     3,027,033       2,886,189  
                 
CASH - end of period   $ 3,810,139     $ 356,822  
                 
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:                
Cash paid for:                
Interest   $ 375,096     $  
Income taxes   $     $ 21,400  
                 
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   $ 153,381     $  
Equipment acquired on credit as payable   $ 93,894     $  
Acquisition of real estate by decreasing prepayment for property   $     $ 700,000  
Common stock issued for future services   $ 33,235     $  
Refundable deposit exchange for common shares   $ 2,000,000     $  
                 

 

Avalon GloboCare Corp..jpg

Source: Avalon GloboCare Corp.