Exhibit 99.1

 

Avalon GloboCare Provides Second Quarter 2018 Business Update; Reports 32% Increase in Revenues

 

FREEHOLD, NJ – August XX, 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 second quarter ended June 30, 2018.

 

Second Quarter 2018 Highlights: 

Revenues increased 32% to $496,093 for the second quarter ended June 30, 2018;

Cash at June 30, 2018 was $3.6 million;

Formed joint laboratory with top-ranked hospital in Shanghai for regenerative exosomics;

Appointed Former Deputy Secretary of the U.S. Department of Health and Human Services Dr. Tevi Troy to Board of Directors;

Formed joint venture with Jiangsu Unicorn to establish provincial network of translational cellular therapy and bio-banking programs;

Appointed Senior Healthcare Executive William Stilley to Board of Directors

 

David Jin, M.D., Ph.D., CEO and President of Avalon GloboCare Corp., commented, “We continue to make rapid progress towards the advancement of our cell-based therapies and exosome technology platform. Notably, we have formed a strategic partnership with the Shanghai Ninth People’s Hospital, a top-ranked medical institute in China and the Asia Pacific region, renowned for its plastic and reconstructive surgery specialty. This strategic partnership with the Shanghai Ninth People's Hospital is the first of its kind in establishing an innovative, state-of-the-art joint laboratory in regenerative exosomics. The joint laboratory will utilize Avalon’s proprietary exosome isolation system to in order to accelerate the development of diagnostic and therapeutic applications particularly in the areas of plastic/reconstructive surgery, wound healing, skincare, and exosomic bioinformatics. In addition, we have formed a joint venture with Jiangsu Unicorn Biological Technology Co. Ltd to establish provincial network of translational cellular therapy and bio-banking programs. A major initiative of this joint venture is to establish the world’s largest aqueous humor derived exosome bio-bank to advance the next-generation of diagnosis and therapeutics for ophthalmologic diseases. Through this provincial network of translational programs, we are able to further strengthen our leadership role and capabilities in order to accelerate our growth and development in regenerative medicine and cellular therapies.”

 

“Throughout the second quarter of 2018, we continued to move forward towards a NASDAQ uplisting by appointing prominent independent board members, Dr. Tevi Troy and William Stilley. Dr. Tevi Troy brings extensive government relationships and experience in the healthcare industry that will aid in accelerating the development of our cell-based therapies and exosome technology platform. William Stilley is the perfect fit to chair our audit committee as he brings valuable operational, financial and strategic experience, including product licensing, partnering, financing, and M&A. We are also pleased to announce that we completed a $2.1 million financing with strategic investors in August 2018, which further strengthens our balance sheet and shareholders’ equity in advance of a listing on a national exchange.” concluded Dr. Jin.

 

Revenues for the second quarter ended June 30, 2018 were $496,093 versus $374,751 for the second quarter ended June 30, 2017. The increase in revenues was due to property rental income, development services and sales of developed products. Operating loss for the quarter ended June 30, 2018 was $1.2 million versus operating loss of $0.4 million for second quarter ended June 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 second quarter ended June 30, 2018 was $1.3 million or ($0.02) earnings per share, versus net loss attributable to Avalon GloboCare Corp. common shareholders of $0.4 million or ($0.01) earnings per share for the second quarter ended June 30, 2017.

 

  

 

 

About Avalon GloboCare Corp.

 

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. 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

 

(tables follow)

 

  

 

 

AVALON GLOBOCARE CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

 

   As of 
   June 30, 2018   December 31, 2017 
   (Unaudited)     
ASSETS      
         
CURRENT ASSETS:          
Cash  $3,643,316   $3,027,033 
Accounts receivable, net of allowance for doubtful accounts
   74,969    10,179 
Accounts receivable - related party, net of allowance for doubtful accounts   144,779     
Tenants receivable, net of allowance for doubtful accounts   38,527    38,469 
Security deposit   328,615    6,916 
Inventory   22,049    2,667 
Prepaid expenses and other current assets   707,925    149,713 
           
Total Current Assets   4,960,180    3,234,977 
           
OTHER ASSETS:          
Security deposit - noncurrent portion       25,322 
Prepayment for long-term assets   67,044    153,688 
Property and equipment, net   143,226    48,029 
Investment in real estate, net   7,725,301    7,623,757 
Intangible assets, net   1,419,474    1,583,260 
           
Total Other Assets   9,355,045    9,434,056 
           
Total Assets  $14,315,225   $12,669,033 
           
LIABILITIES AND EQUITY          
           
CURRENT LIABILITIES:          
Accounts payable  $1,702   $29 
Accrued liabilities and other payables   299,788    124,064 
Accrued liabilities and other payables - related parties   48,694    39,927 
Deferred rental income   11,182    12,769 
Loan payable   1,000,000    1,500,000 
Interest payable   24,931    138,110 
VAT and other taxes payable   12,516    2,997 
Tenants’ security deposit   73,400    92,288 
Due to related party   450,000    450,000 
Refundable deposit   2,000,000    3,000,000 
           
Total Current Liabilities   3,922,213    5,360,184 
           
Commitments and Contingencies - (Note 20)        
           
EQUITY:          
Preferred stock, $0.0001 par value; 10,000,000 shares authorized; no shares issued and outstanding at June 30, 2018 and December 31, 2017        
Common stock, $0.0001 par value; 490,000,000 shares authorized; 73,560,622 shares issued and 73,040,622 shares outstanding at June 30, 2018; 70,278,622 shares issued and outstanding at December 31, 2017   7,356    7,028 
Additional paid-in capital   18,034,773    11,490,285 
Less: common stock held in treasury, at cost; 520,000 and 0 shares at June 30, 2018 and December 31, 2017, respectively   (522,500)    
Accumulated deficit   (6,293,627)   (3,517,654)
Statutory reserve   6,578    6,578 
Accumulated other comprehensive loss - foreign currency translation adjustment   (135,404)   (91,994)
Total Avalon GloboCare Corp. stockholders’ equity   11,097,176    7,894,243 
Non-controlling interest   (704,164)   (585,394)
           
Total Equity   10,393,012    7,308,849 
           
Total Liabilities and Equity  $14,315,225   $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
   For the
Six
Months
Ended
   For the
Six
Months
Ended
 
   June 30, 2018   June 30, 2017   June 30, 2018   June 30, 2017 
                 
REVENUES            
Real property rental  $278,872   $222,254   $575,495   $222,254 
Medical related consulting services - related parties   141,996    152,497    141,996    218,783 
Development services and sales of developed products   75,225        86,515     
Total Revenues   496,093    374,751    804,006    441,037 
                     
COSTS AND EXPENSES                    
Real property operating expenses   195,941    161,854    406,215    161,854 
Medical related consulting services - related parties   124,715    125,231    124,715    224,812 
Development services and sales of developed products   42,093        58,613     
Total Costs and Expenses   362,749    287,085    589,543    386,666 
                     
REAL PROPERTY OPERATING INCOME   82,931    60,400    169,280    60,400 
GROSS PROFIT (LOSS) FROM MEDICAL RELATED CONSULTING SERVICES   17,281    27,266    17,281    (6,029)
GROSS PROFIT FROM DEVELOPMENT SERVICES AND SALES OF DEVELOPED PRODUCTS   33,132        27,902     
                     
OTHER OPERATING EXPENSES:                    
Selling expenses       6,279        14,990 
Compensation and related benefits   487,452    205,473    1,026,266    388,400 
Professional fees   593,025    172,705    1,164,797    379,923 
Other general and administrative   266,121    91,927    551,373    152,659 
                     
Total Other Operating Expenses   1,346,598    476,384    2,742,436    935,972 
                     
LOSS FROM OPERATIONS   (1,213,254)   (388,718)   (2,527,973)   (881,601)
                     
OTHER INCOME (EXPENSE)                    
Interest income   1,300    210    1,708    1,004 
Interest expense   (24,932)   (42,000)   (261,918)   (42,000)
Foreign currency transaction loss   (106,929)       (106,929)   (57,244)
Other income           328     
                     
Total Other Expense, net   (130,561)   (41,790)   (366,811)   (98,240)
                     
LOSS BEFORE INCOME TAXES   (1,343,815)   (430,508)   (2,894,784)   (979,841)
                     
INCOME TAXES                
                     
NET LOSS  $(1,343,815)  $(430,508)  $(2,894,784)  $(979,841)
                     
LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST   (49,421)       (118,811)    
                     
NET LOSS ATTRIBUTABLE TO AVALON GLOBOCARE CORP. COMMON SHAREHOLDERS  $(1,294,394)  $(430,508)  $(2,775,973)  $(979,841)
                     
COMPREHENSIVE LOSS:                    
NET LOSS   (1,343,815)   (430,508)   (2,894,784)   (979,841)
OTHER COMPREHENSIVE (LOSS) INCOME                    
Unrealized foreign currency translation (loss) gain   (96,207)   7,647    (43,369)   (32,124)
COMPREHENSIVE LOSS  $(1,440,022)  $(422,861)  $(2,938,153)  $(1,011,965)
LESS: COMPREHENSIVE LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST   (49,540)       (118,770)    
COMPREHENSIVE LOSS ATTRIBUTABLE TO AVALON GLOBOCARE CORP. COMMON SHAREHOLDERS  $(1,390,482)  $(422,861)  $(2,819,383)  $(1,011,965)
                     
NET LOSS PER COMMON SHARE ATTRIBUTABLE TO AVALON GLOBOCARE CORP. COMMON SHAREHOLDERS:                    
Basic and diluted  $(0.02)  $(0.01)  $(0.04)  $(0.02)
                     
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:                    
Basic and diluted   71,979,678    64,628,622    71,122,356    63,617,572 

 

  

 

 

AVALON GLOBOCARE CORP. AND SUBSIDIARIES

 UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

   For the Six Months Ended   For the Six Months Ended 
   June 30, 2018   June 30, 2017 
         
CASH FLOWS FROM OPERATING ACTIVITIES:          
Net loss  $(2,894,784)  $(979,841)
Adjustments to reconcile net loss from operations to net cash used in operating activities:          
Depreciation and amortization   247,975    34,156 
Stock-based compensation expense   1,082,923    266,467 
Changes in operating assets and liabilities:          
Accounts receivable   (67,542)    
Accounts receivable - related parties   (150,516)   (160,964)
Tenants receivable   (58)   (25,433)
Inventory   (19,892)    
Prepaid expenses and other current assets   (153,785)   21,653 
Security deposit   (308,694)   (29,786)
Accounts payable   1,740    22,646 
Accrued liabilities and other payables   176,584    146,680 
Accrued liabilities and other payables - related parties   9,811    32,135 
Deferred rental income   (1,587)   4,178 
Interest payable   (113,179)    
Income taxes payable       (21,191)
VAT and other taxes payable   9,850    (3,841)
Tenants’ security deposit   (18,888)   92,288 
           
NET CASH USED IN OPERATING ACTIVITIES   (2,200,042)   (600,853)
           
CASH FLOWS FROM INVESTING ACTIVITIES:          
Purchase of property and equipment   (10,192)   (27,784)
Prepayment for purchase of long-term assets   (22,606)    
Purchase of commercial real estate       (7,008,571)
Improvement of commercial real estate   (165,155)    
           
NET CASH USED IN INVESTING ACTIVITIES   (197,953)   (7,036,355)
           
CASH FLOWS FROM FINANCING ACTIVITIES          
Proceeds received from loan payable       2,100,000 
Repayments of loan   (500,000)    
Proceeds received from related parties’ advance       70,000 
Repayment of 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   5,437,250     
Disbursements for equity offering costs   (380,607)    
           
NET CASH PROVIDED BY FINANCING ACTIVITIES   3,034,143    5,169,500 
           
EFFECT OF EXCHANGE RATE ON CASH   (19,865)   (36,527)
           
NET INCREASE (DECREASE) IN CASH   616,283    (2,504,235)
           
CASH  - beginning of period   3,027,033    2,886,189 
           
CASH - end of period  $3,643,316   $381,954 
           
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:          
Cash paid for:          
Interest  $375,096   $ 
Income taxes  $   $21,190 
           
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  $109,889   $ 
Acquisition of real estate by decreasing prepayment for property  $   $700,000 
Common stock issued for future services  $405,250   $