Exhibit 99.1

 

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

 

FREEHOLD, NJ—May 14, 2018 – 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 Regenerartive 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 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

 

(tables follow)

 

 

 

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 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

 

 

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 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

 

 

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   $ 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.