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Avalon GloboCare Corp. (ALBT)·Q1 2018 Earnings Summary

Executive Summary

  • Q1 2018 revenue rose 365% year over year to $0.308M, driven by rental income and initial development product sales; however, operating loss widened to $1.31M and net loss to $1.55M, reflecting higher SG&A and public company costs ahead of a planned NASDAQ listing .
  • EPS was a loss of $0.02 versus a $0.01 loss in Q1 2017; weighted average shares increased to 69.78M, dilutive to per-share metrics .
  • Management advanced strategic initiatives: partnerships (Da An Gene), translational research with Weill Cornell Medicine, GenExosome U.S. operations launch, and filed for NASDAQ uplisting—key potential catalysts despite continued negative margins in development activities .
  • No explicit financial guidance was provided; Wall Street consensus (S&P Global) was unavailable, so beat/miss cannot be assessed.

What Went Well and What Went Wrong

  • What Went Well
    • Revenue mix pivot: rental income of $296,623 and product development revenues of $11,290 replaced prior reliance on related-party consulting, supporting a more diversified base .
    • Strategic partnerships and platform build-out: “We made significant progress…forming a strategic partnership with Da An Gene…help significantly accelerate our product development and commercialization” .
    • U.S. expansion: “GenExosome…launched its U.S. operations in Ohio…we plan to market and distribute our Exosome Isolation Systems” .
  • What Went Wrong
    • Margin pressure: development services posted a gross loss and negative gross margin due to low revenue and fixed-cost allocation; development margin was (46.3)% in Q1 2018 .
    • Higher operating costs: professional fees and compensation increased materially vs. prior year, driving operating loss to $1.31M .
    • Cash drawdown and working capital deficit: cash fell to $2.13M with a working capital deficit of $3.48M; interest payable increased as financing costs rose .

Financial Results

MetricQ1 2017Q3 2017Q1 2018
Total Revenue ($USD)$66,286 $317,450 $307,913
Real Property Rental Revenue ($USD)$0 $315,284 $296,623
Development Services & Product Sales ($USD)$0 $0 $11,290
Medical Consulting Revenue - Related Party ($USD)$66,286 $2,166 $0
Operating Loss ($USD)$(492,883) $(657,919) $(1,314,719)
Net Loss ($USD)$(549,333) $(710,729) $(1,550,969)
EPS (Basic & Diluted, $)$(0.01) $(0.011) $(0.02)
Weighted Avg Shares (Basic & Diluted)62,595,289 64,628,622 69,781,733

Segment breakdown (Q1 2018):

SegmentRevenue ($USD)Notes
Real Property Operating$296,623 Real property operating income $86,349
Development Services & Sales$11,290 Gross loss $(5,230) due to fixed costs
Medical Consulting (Related)$0 No demand in period

Key margins and operating metrics:

MetricQ1 2017Q3 2017Q1 2018
Development Services Gross Margin (%)N/AN/A(46.3)%
Medical Consulting Gross Margin (%)(50.2)% (2,071.4)% N/A
Real Property Operating Income ($USD)N/A$134,562 $86,349

Liquidity and capital position:

KPIQ1 2018
Cash and Equivalents ($USD)$2,125,656
Working Capital Deficit ($USD)$(3,484,882)
Interest Expense ($USD, quarter)$236,986
Total Current Liabilities ($USD)$5,768,088

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY/Q1 2018Not providedNot providedMaintained (no guidance)
Margins/OpExFY/Q1 2018Not providedNot providedMaintained (no guidance)
Capital/Listing2018—Application submitted for NASDAQ listing New disclosure

Earnings Call Themes & Trends

No Q1 2018 earnings call transcript was found; themes are drawn from filings and press release.

TopicPrevious Mentions (Q-2 and Q-1 context)Current Period (Q1 2018)Trend
Exosome/GenExosome commercializationFormed GenExosome (Oct 2017); initial IP acquisitions and Beijing GenExosome consolidation U.S. ops launched; exosome isolation systems to be marketed; expects transformational potential in liquid biopsy and regenerative medicine Execution progressing
PartnershipsEarly-stage JV/acquisition focus; related-party consulting base Strategic partnership with Da An Gene to accelerate development/commercialization Strengthening ecosystem
Academic collaborationsU.S. collaborations referenced (MD Anderson, Mayo Clinic, Weill Cornell) Joint translational research initiative with Weill Cornell Medicine; access to stem cell facilities Deepening translational pipeline
Revenue mixRental revenue commenced in 2017; consulting revenue declining Q1 mix dominated by rental; no consulting revenue; small development revenue Shift to asset-based/product revenue
Capital & listing2017 financing and loan; working capital deficit NASDAQ application submitted; April-May 2018 private placements noted in subsequent events Pursuing uplist/capital

Management Commentary

  • “We made significant progress in the first quarter of 2018…forming a strategic partnership with Da An Gene…which…will help significantly accelerate our product development and commercialization” .
  • “GenExosome…launched its U.S. operations in Ohio…we plan to market and distribute our Exosome Isolation Systems…this technology has the potential to transform the liquid biopsy and regenerative medicine markets” .
  • “We are moving forward with our plans to list on NASDAQ…to provide us greater exposure within the investment community” .

Q&A Highlights

No Q1 2018 earnings call transcript located; no Q&A available in source documents.

Estimates Context

  • S&P Global consensus estimates (EPS, revenue) for Q1 2018 were unavailable at the time of retrieval; beat/miss versus Street cannot be assessed.
  • Implication: Without coverage, estimate revisions/expectations are unlikely to be near-term catalysts; narrative catalysts (uplist, partnerships) dominate.

Key Takeaways for Investors

  • Revenue growth is real but small in absolute dollars and driven by rental income; core biotech revenues remain nascent with negative margins due to fixed-cost absorption at low sales volumes .
  • Operating losses widened on higher professional fees and compensation tied to scaling and public-company readiness; expect continued OpEx pressure near term .
  • Liquidity is constrained (working capital deficit), but subsequent private placements and loan extension indicate access to capital; monitor cash burn and interest obligations (loan and refundable deposit arrangements) .
  • Strategic momentum (Da An Gene partnership, Weill Cornell initiative, GenExosome U.S. launch) supports medium-term commercialization optionality in exosomes/liquid biopsy .
  • Absence of guidance and limited sell-side coverage mean the stock is likely driven by milestone headlines (uplist progress, product launches, partnerships) rather than quarterly beats/misses.
  • Near-term trading: sensitivity to uplisting progress and financing updates; medium-term thesis hinges on converting platform initiatives into scalable, higher-margin product revenue.
  • Watch for segment revenue mix evolution and margin improvement in development services as commercialization scales .