Executive Summary

Q2 revenue grew 32% year over year to $0.50M, driven by rental income, development services and product sales; net loss widened to $1.34M as public company and growth investments lifted operating expenses .
No earnings call transcript or formal guidance was found for Q2; management emphasized strategic partnerships (regenerative exosomics joint lab in Shanghai; Jiangsu Unicorn JV) and progress toward a NASDAQ uplisting, including $5.06M net equity raised in Q2 and a $2.1M financing in August 2018 that bolstered the balance sheet and shareholders’ equity .
Results versus estimates: S&P Global consensus EPS and revenue estimates were unavailable for this microcap during the period; therefore, we cannot assess beats/misses against Street expectations (S&P Global data unavailable).
Near-term stock catalysts revolve around uplisting progress, execution on exosome/CAR-T initiatives, and additional financing milestones highlighted by management .

What Went Well and What Went Wrong

What Went Well
- Revenue rose 32% YoY to $496,093 as the company added development services and product sales, alongside higher rental revenue .
- Strengthening strategic pipeline: established a regenerative exosomics joint laboratory with Shanghai Ninth People’s Hospital and formed a JV with Jiangsu Unicorn to build a provincial cellular therapy and bio-banking network; CEO: “This strategic partnership…is the first of its kind…in regenerative exosomics” .
- Capital and governance steps toward uplisting: added independent directors (Dr. Tevi Troy, William Stilley) and raised equity; “completed a $2.1 million financing with strategic investors in August 2018, which further strengthens our balance sheet…in advance of a listing on a national exchange” .
What Went Wrong
- Operating loss widened to $(1.21)M vs $(0.39)M in Q2’17 as professional fees, compensation, and other G&A scaled with public company readiness and expansion; professional fees were $593k in Q2 vs $173k in Q2’17 .
- Net loss increased to $(1.34)M vs $(0.43)M in Q2’17, including a ~$107k FX transaction loss, underscoring exposure to RMB volatility and cross-border operations .
- Continued dependence on related-party consulting revenue (e.g., Daopei-affiliated entities) presents concentration risk; Q2 consulting revenue from related parties was $142k, with the 10-Q highlighting related-party ties and segment dependence .

Financial Results

Overall P&L and per-share results (oldest → newest)

Metric	Q2 2017	Q1 2018	Q2 2018
Revenue ($USD)	$374,751	$307,913	$496,093
Loss from Operations ($USD)	$(388,718)	$(1,314,719)	$(1,213,254)
Net Loss ($USD)	$(430,508)	$(1,550,969)	$(1,343,815)
Diluted EPS ($)	$(0.01)	$(0.02)	$(0.02)

Segment revenue breakdown (oldest → newest)

Segment Revenue ($USD)	Q2 2017	Q1 2018	Q2 2018
Real Property Rental	$222,254	$296,623	$278,872
Medical Consulting – Related Parties	$152,497	$0	$141,996
Development Services & Developed Products	$0	$11,290	$75,225
Total Revenue	$374,751	$307,913	$496,093

KPIs and operating drivers (oldest → newest)

KPI	Q2 2017	Q1 2018	Q2 2018
Cash and Equivalents (period-end)	$381,954	$2,125,656	$3,643,316
Professional Fees (quarter)	$172,705	$571,772	$593,025
Compensation & Related Benefits (quarter)	$205,473	$538,814	$487,452
Interest Expense (quarter)	$42,000	$236,986	$24,932
FX Transaction Loss (quarter)	$0	$0	$106,929
Loan Payable (period-end)	—	$1,500,000	$1,000,000

Notes:

Q2 2018 revenue composition: rental $278,872, related-party consulting $141,996, development services/products $75,225 .
Operating expense inflation was driven by higher stock-based comp, investor relations and consulting as detailed in MD&A .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Financial Guidance	FY/Q3 onward	None	None provided in Q2 press release/10-Q	Maintained: No formal guidance
Capital/Listing	2018	Target NASDAQ uplisting; board additions	Continued progress; equity raises and August 2018 financing cited as balance sheet support	Narrative progress (no numeric targets)

No quantitative revenue/EPS/cost guidance ranges were issued in Q2 materials .

Earnings Call Themes & Trends

No Q2 2018 earnings call transcript was found in the document catalog (no “earnings-call-transcript” returned). Themes below derive from the Q2 press release, Q2 10-Q, and prior filings.

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q2 2018)	Trend
Exosome platform and diagnostics/therapeutics	FY17 10-K lays out exosome strategy and GenExosome expansion	Joint lab in regenerative exosomics with Shanghai Ninth People’s Hospital; development services/products revenue contribution	Expanding partnerships and early commercialization
CAR-T and cell therapy initiatives	Strategic focus outlined in FY17 10-K (Avalon Cell)	Subsequent events: Weill Cornell strategic partnership; LOI with Arbele to form AVAR (China) Biotherapeutics	Building academic/clinical collaborations post-Q2
China clinical network & related-party consulting	Q1’18: Weill Cornell translational initiative; consulting with Daopei affiliates	Jiangsu Unicorn JV to build provincial translational therapy/bio-banking network; related-party consulting $142k	Broader footprint; continued related-party concentration
Uplisting and governance	Q1’18 noted Nasdaq application; board evolution	Added independent directors; cited uplisting progress and financing as enablers	Governance/capital actions supportive of listing
Capital and liquidity	FY17 10-K emphasized need to raise capital	Q2 equity raise net ~$5.06M; loan extended post-Q2; Aug 13, 2018 equity raised $2.11M gross	Strengthened balance sheet; reduced near-term debt

Management Commentary

“We continue to make rapid progress towards the advancement of our cell-based therapies and exosome technology platform… establishing an innovative, state-of-the-art joint laboratory in regenerative exosomics” (Dr. David Jin, CEO) .
“We…formed a joint venture with Jiangsu Unicorn…A major initiative…is to establish the world’s largest aqueous humor derived exosome bio-bank to advance…diagnosis and therapeutics for ophthalmologic diseases” .
“Throughout the second quarter of 2018, we continued to move forward towards a NASDAQ uplisting by appointing prominent independent board members…We…completed a $2.1 million financing…which further strengthens our balance sheet and shareholders’ equity in advance of a listing on a national exchange” .

Q&A Highlights

No Q2 2018 earnings call transcript was available; therefore, no Q&A themes or clarifications could be extracted from a call recording/transcript (no transcript found).

Estimates Context

We attempted to retrieve S&P Global consensus for Q2 2018 revenue and EPS, but the data were unavailable at the time; as a result, we cannot provide a beats/misses assessment versus Street estimates (S&P Global data unavailable).
Given the microcap nature and limited analyst following, consensus coverage appears sparse; investors should anchor on actuals and management’s strategic milestones .

Key Takeaways for Investors

Topline expanded 32% YoY to $0.50M, reflecting new development services/products and steady rental income; however, scale remains small and quarterly mix can shift with related-party consulting activity .
Operating leverage is negative near term: professional fees and stock-based comp tied to public company readiness and growth elevated operating loss to $(1.21)M, implying continued funding needs absent step-change in revenues .
Balance sheet improved with ~$5.06M net equity raised in Q2 and additional post-quarter financings; loan maturity extended to 2020, reducing near-term refinancing pressure .
Strategic pipeline advanced (regenerative exosomics lab, Jiangsu Unicorn JV) and post-Q2 CAR-T partnerships (Weill Cornell; Arbele LOI) enhance medium-term optionality if execution translates into revenue-generating programs .
Absence of formal guidance and limited consensus coverage increase uncertainty; near-term trading likely driven by uplisting progress, partnership conversions, and financing cadence rather than quarterly beats/misses .
Concentration risk remains (related-party consulting revenue) and FX exposure is non-trivial (Q2 FX loss ~$107k); diversification of revenue sources will be a key de-risking milestone .
Actionable: monitor forthcoming JV milestones, any commercialization updates for exosome products/services, and SEC/NASDAQ listing steps; watch operating expense trajectory versus revenue scale to gauge path to sustainable funding .

Sources: Q2 2018 8-K with press release and financials ; Q2 2018 10-Q including MD&A and segment data ; Q1 2018 8-K press release and financials ; FY2017 10-K for strategic context .

Avalon GloboCare Corp. (ALBT)·Q2 2018 Earnings Summary