Executive Summary

Q3 2018 revenue was $0.41M, up 30% year over year but down sequentially, with net loss widening as SG&A and public company costs ramped ahead of the NASDAQ uplisting .
Operating loss increased to $2.38M vs. $0.66M in Q3 2017 and $1.21M in Q2 2018, driven by higher professional fees and compensation tied to commercialization and listing activities .
Strategic momentum continued: Avactis Biosciences launched to focus on CAR‑T/CAR‑NK manufacturing; a cGMP partnership with Weill Cornell; and operations commenced at Epicon Biotech JV to build the exosome bio‑bank .
The company successfully uplisted to NASDAQ and strengthened governance with new independent directors—potential visibility and liquidity catalysts for the equity story .
No formal numerical guidance was provided; Wall Street consensus estimates could not be retrieved due to S&P Global daily limit constraints (estimate comparisons unavailable) .

What Went Well and What Went Wrong

What Went Well

Revenue grew 30% YoY to $413,503, with contributions from development services/products and medical consulting services alongside rental income .
Strategic execution: formation of Avactis Biosciences, cGMP Weill Cornell partnership for advanced cellular engineering, and initiation of the Epicon Biotech JV to establish the aqueous humor exosome bio‑bank .
Management emphasized a comprehensive CAR‑T manufacturing and bio‑banking platform: “establish a unique, full‑suite, integrated system for CAR‑T bio‑manufacturing, standardization… and intelligent bio‑banking” .

What Went Wrong

Sequential revenue decline vs. Q2 ($496,093 → $413,503) amid ramping SG&A and listing costs; operating loss widened to $2.38M vs. $1.21M in Q2 .
Professional fees surged ($1.45M in Q3) and compensation rose ($0.57M), reflecting commercialization and public company infrastructure build‑out, pressuring near‑term profitability .
Net loss attributable to common shareholders expanded to $2.34M ($0.03 per share) vs. $1.29M ($0.02) in Q2 and $0.71M ($0.01) in Q3 2017 .

Financial Results

Metric	Q3 2017	Q1 2018	Q2 2018	Q3 2018
Revenue ($USD)	$317,450	$307,913	$496,093	$413,503
Operating Loss ($USD)	$(657,919)	$(1,314,719)	$(1,213,254)	$(2,379,418)
Net Loss Attributable to Common ($USD)	$(710,729)	$(1,481,579)	$(1,294,394)	$(2,344,670)
Diluted EPS ($USD)	$(0.01)	$(0.02)	$(0.02)	$(0.03)

Segment revenue breakdown:

Revenue Segment ($USD)	Q3 2017	Q1 2018	Q2 2018	Q3 2018
Real property rental	$315,284	$296,623	$278,872	$272,444
Medical related consulting services – related parties	$2,166	—	$141,996	$71,398
Development services and sales of developed products	—	$11,290	$75,225	$69,661
Total Revenues	$317,450	$307,913	$496,093	$413,503

KPIs and balance sheet snapshot:

KPI ($USD)	Q1 2018	Q2 2018	Q3 2018
Cash and Equivalents	$2,125,656	$3,643,316	$3,810,139
Total Assets	$11,582,654	$14,315,225	$14,842,096
Total Liabilities	$5,768,088	$3,922,213	$2,158,299

Guidance Changes

No formal numerical guidance was provided in the Q3 2018 press release or 8‑K; therefore, there are no changes to report .

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q4 2018	N/A	N/A	N/A
Operating Loss	FY/Q4 2018	N/A	N/A	N/A
EPS	FY/Q4 2018	N/A	N/A	N/A

Earnings Call Themes & Trends

No earnings call transcript was available in our document catalog for Q3 2018 (search returned zero transcripts). The following themes reflect press release commentary across Q1–Q3 2018 .

Topic	Previous Mentions (Q1 2018, Q2 2018)	Current Period (Q3 2018)	Trend
CAR‑T/cellular immunotherapy manufacturing	Q1: Weill Cornell translational initiative ; Q2: JV/provincial cellular therapy network	Avactis Biosciences formed; cGMP partnership with Weill Cornell for advanced cellular engineering	Expanding platform and manufacturing standardization
Exosome technology and bio‑banking	Q1: GenExosome U.S. launch ; Q2: Shanghai Ninth joint lab; plan for aqueous humor exosome bio‑bank	Epicon Biotech JV commenced operations; building exosome bio‑bank	Scaling infrastructure and clinical applications
NASDAQ uplisting and governance	Q1: Nasdaq application submitted ; Q2: added independent directors to prep uplisting	Successfully uplisted; added board members and scientific advisory leadership	Execution milestone achieved
SG&A/public company expense ramp	Q1: Operating loss increased with SG&A and listing prep ; Q2: continued SG&A and public company costs	Higher professional fees and compensation; operating loss widened	Near‑term margin pressure from scaling
Strategic partnerships	Q1: Da An Gene partnership	Q3: Weill Cornell partnership; advisory board leadership added	Broader clinical/academic network

Management Commentary

“Our proprietary, breakthrough technologies have the potential to revolutionize the manufacturing and therapeutic options for cancer patients… Our plan is to establish a unique, full‑suite, integrated system for CAR‑T bio‑manufacturing, standardization… and intelligent bio‑banking.” — David Jin, M.D., Ph.D., CEO and President .
“We have formed a strategic partnership with Weill Cornell’s cGMP cellular therapy facility… to co‑develop technologies and bio‑production of CAR‑T therapy.” .
“We commenced operation of Epicon Biotech Co. Ltd… to establish the world’s largest aqueous humor derived exosome bio‑bank.” .
“We are very pleased to have successfully uplisted to the NASDAQ Capital Markets last week… we appointed two high‑profile independent board members… [and] Dr. James Gajewski to head our Scientific and Clinical Advisory Board.” .
Q2 perspective: “We have formed a… joint laboratory in regenerative exosomics… and a joint venture… to establish [a] provincial network of translational cellular therapy and bio‑banking programs.” .
Q1 perspective: “We formed a strategic partnership with Da An Gene… and launched operations of our GenExosome subsidiary in Ohio… submitted application for Nasdaq listing.” .

Q&A Highlights

No earnings call transcript was available for Q3 2018; thus, Q&A themes and any guidance clarifications were not observable from primary sources for this period (document search returned zero transcripts) .

Estimates Context

Wall Street consensus EPS and revenue estimates for Q3 2018 were unavailable at time of analysis due to S&P Global daily request limit errors; therefore, estimate comparisons and beat/miss determinations are not provided (consensus retrieval failed). Values would have been retrieved from S&P Global if available.
Given the sequential revenue decline and widened operating loss, consensus may need to reassess near‑term expense trajectories tied to commercialization and public company infrastructure, but we cannot quantify revisions without estimates .

Key Takeaways for Investors

Revenue growth YoY remains positive, but sequential softness and a larger operating loss highlight near‑term P&L pressure from scaling SG&A and professional fees ahead of and following the NASDAQ uplisting .
Strategic execution is robust: Avactis and the Weill Cornell cGMP partnership enhance CAR‑T manufacturing capabilities; Epicon JV accelerates exosome platform development—key pillars of the medium‑term thesis .
Balance sheet strengthened through equity financing earlier in 2018; cash rose to $3.8M and total liabilities decreased to ~$2.2M by Q3, improving financial flexibility .
Watch for commercialization milestones (product launches, clinical collaborations) that can translate platform investments into revenue growth, particularly in exosome diagnostics/therapeutics and cellular therapy services .
Near‑term trading may be driven by visibility/liquidity from the NASDAQ uplisting and continued partnership announcements; monitor filings for additional strategic updates .
Absence of formal guidance and unavailable consensus estimates increases uncertainty in modeling; focus on expense discipline trends (professional fees, compensation) and revenue mix evolution across consulting and product sales .
Key narrative: building differentiated cell‑therapy and exosome infrastructure; execution on manufacturing standardization and bio‑banking could be catalysts for investor re‑rating as revenues scale .

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