Avalon GloboCare (ALBT) - 2025 Q2 - Quarterly Report

Revenue and Income - Real property rental revenue for Q2 2025 was $350,406, an increase of $22,519 or 6.9% compared to Q2 2024[263] - Real property operating income for Q2 2025 was $99,329, an increase of $56,930 or 134.3% compared to Q2 2024[267] - For the six months ended June 30, 2025, real property rental revenue was $700,206, up $57,731 or 9.0% from the same period in 2024[263] Expenses and Losses - Real property operating expenses for Q2 2025 decreased to $251,077, down $34,411 or 12.1% from Q2 2024[265] - Loss from operations for the three months ended June 30, 2025, amounted to $3,887,987, representing an increase of $2,383,624, or 158.4%, compared to the same period in 2024[274] - Other expense, net, totaled $9,570,611 for the three months ended June 30, 2025, representing an increase of $8,942,948, or 1,424.8%, primarily due to increased third-party interest expense and loss on extinguishment of debt[276] - Net loss for the three months ended June 30, 2025, was $13,458,598, an increase of $11,326,572, or 531.3%, compared to the same period in 2024[279] - The net loss attributable to common shareholders for the three months ended June 30, 2025, was $13,458,598, or $6.22 per share, compared to $2,132,026, or $2.85 per share, for the same period in 2024[280] - Comprehensive loss for the three months ended June 30, 2025, was $13,458,494, compared to $2,129,320 for the same period in 2024[283] Cash Flow and Working Capital - The company incurred a working capital deficit of approximately $14,132,000 as of June 30, 2025[252] - The company generated negative cash flow from operating activities of approximately $3,028,000 for the six months ended June 30, 2025[252] - As of June 30, 2025, the company's cash balance was approximately $201,532, a decrease of 92.9% from $2,856,309 on December 31, 2024[286] - The working capital deficit increased by $3,486,262 to $14,132,319 at June 30, 2025, primarily due to a decrease in cash and increases in accrued liabilities[286] - Net cash used in operating activities for the six months ended June 30, 2025 was $3,027,822, reflecting a consolidated net loss of approximately $15,941,000[289] - The company reported a net cash flow provided by financing activities of $277,636 for the six months ended June 30, 2025, a significant decrease from $2,010,577 in the same period of 2024[292] - The company expects cash used in operating activities to increase in the next 12 months due to rising operational costs and working capital requirements[291] Assets and Liabilities - The total current assets decreased by 71.2% from $3,236,498 on December 31, 2024 to $933,088 on June 30, 2025[286] - The total current liabilities increased by 8.5% from $13,882,555 on December 31, 2024 to $15,065,407 on June 30, 2025[286] Business Operations and Strategy - The company has suspended all research and development efforts related to cellular therapy to focus on product commercialization[250] - The company plans to target the diabetes and obesity markets with the KetoAir breathalyzer device[246] - The KetoAir device is registered as a Class I medical device with the U.S. FDA and is paired with an "AI Nutritionist" software program[248] - The company has ceased all operations in China since 2022, limiting future revenue generation from that market[296] - The company will need to raise significant additional capital to fund operations and provide working capital, with no assurance that financing will be available on acceptable terms[295] Financial Viability - The company has a limited operating history and its continued growth is dependent on generating rental revenue and obtaining additional financing, raising substantial doubt about its ability to continue as a going concern[285]