Avalon GloboCare (US:ALBT)2025-11-14 22:17Revenue and Income - For the three months ended September 30, 2025, real property rental revenue was $350,099, an increase of $4,940 or 1.4% compared to $345,159 for the same period in 2024[264]. - For the nine months ended September 30, 2025, real property rental revenue was $1,050,305, an increase of $62,671 or 6.3% compared to $987,634 for the same period in 2024[264]. - Real property operating income for the three months ended September 30, 2025 was $115,733, an increase of $16,102 or 16.2% compared to $99,631 for the same period in 2024[268]. - Real property operating income for the nine months ended September 30, 2025 was $284,472, an increase of $90,980 or 47.0% compared to $193,492 for the same period in 2024[268]. - For the nine months ended September 30, 2025, the company reported income from Lab Services MSO of $392,677, which included its share of net income and amortization of identifiable intangible assets[270]. Expenses and Losses - The company incurred a working capital deficit of approximately $11,515,000 at September 30, 2025, with recurring net losses of approximately $16,195,000 for the nine months ended September 30, 2025[253]. - The company generated negative cash flow from operating activities of approximately $4,389,000 for the nine months ended September 30, 2025[253]. - For the three months ended September 30, 2025, advertising and marketing expenses increased by $104,287, or 72.1%, compared to the same period in 2024, while for the nine months, the increase was $390,329, or 154.7%[273]. - Professional fees for the three months ended September 30, 2025, rose by $945,150, or 311.6%, primarily due to increased consulting and legal service fees related to a potential merger with YOOV Group[275]. - Compensation and related benefits decreased by $112,976, or 32.9%, for the three months ended September 30, 2025, and by $159,333, or 15.1%, for the nine months, mainly due to reduced compensation for the executive officer[275]. - Miscellaneous taxes increased by $31,600, or 263.3%, for the three months ended September 30, 2025, primarily due to an increase in Delaware state franchise tax[275]. - Loss from operations for the three months ended September 30, 2025, was $76,193, a decrease of $1,193,768, or 94.0%, compared to the same period in 2024[277]. - Net loss for the three months ended September 30, 2025, was $254,268, a decrease of $1,424,932, or 84.9%, compared to the same period in 2024[282]. - The net loss attributable to common shareholders for the nine months ended September 30, 2025, was $16,032,504, or $6.10 per share, representing an increase of $10,853,765, or 209.6%[284]. - Comprehensive loss for the three months ended September 30, 2025, was $253,997, compared to $1,676,157 for the same period in 2024[286]. Cash Flow and Capital - As of September 30, 2025, the company's cash balance was approximately $334,000, a decrease from $2,856,000 on December 31, 2024[288]. - The working capital deficit increased by $868,585 to $11,514,642 at September 30, 2025, compared to $10,646,057 at December 31, 2024, primarily due to a decrease in cash and increases in accrued liabilities[290]. - Net cash used in operating activities for the nine months ended September 30, 2025, was $4,388,557, reflecting a consolidated net loss of approximately $16,195,000[292]. - Net cash flow provided by investing activities was $752,635 for the nine months ended September 30, 2025, compared to a net cash flow used of $100,000 for the same period in 2024[295]. - Net cash flow provided by financing activities was $1,112,871 for the nine months ended September 30, 2025, down from $4,726,942 in the same period of 2024[296]. - The company expects cash used in operating activities to increase in the next 12 months due to new product development and increased marketing efforts[294]. - The company estimates that its available cash will be insufficient to meet its cash requirements under current operating expectations, necessitating significant additional capital[298]. Operational Changes and Future Outlook - The company suspended all research and development efforts related to cellular therapy to focus on product commercialization[251]. - The KetoAir breathalyzer device is registered with the U.S. FDA as a Class I medical device and is marketed for the diabetes and obesity markets[244][247]. - The company sold its 40% equity interest in Lab Services MSO on February 26, 2025, resulting in no income from this investment for the three months ended September 30, 2025[269]. - The company faces substantial doubt about its ability to continue as a going concern, dependent on raising additional capital and generating sufficient revenues[287]. - The unrealized foreign currency translation gain for the nine months ended September 30, 2025, was approximately $700, compared to $2,800 for the same period in 2024[299]. - The company has ceased all operations in China since 2022, limiting exposure to foreign currency exchange rate fluctuations[299]. - The increase in working capital requirements is attributed to financing current business operations and capital for acquisitions[301].