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ABVC BioPharma Reports Second Quarter 2021 Results

Clinical Trials Continue Despite COVID-19 Restrictions 

Fremont, CA – (NewMediaWire) – August 12, 2021 – ABVC Biopharma, Inc., a clinical stage biopharmaceutical company developing therapeutic solutions in oncology/hematology, central nervous system (CNS), and ophthalmology, today announced its unaudited financial and operating results for the three-month period ended June 30, 2021.  

 Revenues.We generated $31,441 and $226,513 in revenues for the three months ended June 30, 2021 and 2020, respectively; and incurred $646 and $4,236 in cost of sales for the three months ended June 30, 2021 and 2020, respectively. The decrease in revenues was mainly due to the impact of COVID-19 onto our CDMO business sector.   

 Operating Expenses.  Our operating expenses have increased by $650,010, or 46%, to $2,066,310 for the three months ended June 30, 2021, from $1,416,290 for the three months ended June 30, 2020. Such increase in operating expenses was mainly due to the increase in selling, general and administrative expenses and research and development expenses.

Our selling, general and administrative expenses and stock-based compensation increased by $430,224, or 34%, mainly due to the increase in company’s marketing and up-list related expenses.

Our research and development expenses increased by $219,796 or approximately 158% primarily because of new service agreements signed with vendors during the three months ended June 30, 2021.

Other Income (Expense). Our other expense was $77,005 for the three months ended June 30, 2021, as compared to $1,038,688 for the three months ended June 30, 2020. The change was principally caused by the decrease in impairment loss of $944,204 during the quarter, and increase in interest income and rental income, as well as decreasing loss on investment in equity securities, while deducted from decrease in net other income.

Interest income was $10,722 for the three months ended June 30, 2021, as compared to $9,350 for the three months ended June 30, 2020. The increase of $1,372, or approximately 15%, was primarily due to the interest income for various related-party loans.

Loss on investment in equity securities was $53,591 for the three months ended June 30, 2021, as compared to $109,656 for the three months ended June 30, 2020. The decrease of $56,065, or approximately 51%, was primarily due to the loss on investment in BioFirst. 

Other income and government grant income totaled $162 for the three months ended June 30, 2021, as compared to $170,179 for the three months ended June 30, 2020. The decrease of $170,017, or approximately 100%, was primarily due to the tax refund for greenlight project recorded in the first half year of 2020.  

Net Loss. As a result of the above factors, our net loss was $2,052,956 for the three months ended June 30, 2021, compared to $2,184,057 for the three months ended June 30, 2020, representing a decrease of $131,101, or 6%.

“In spite of elevated COVID-19 restrictions, we were pleased to make significant clinical study progress during Q2 with respect to Vitargus, our medical device, and MDD for Cancer Patients, our depression medicine for cancer patients,” said Dr. Howard Doong, ABVC BioPharma’s chief executive officer.“For example, we identified three potential trial sites and principal investigators in Australia to conduct further clinical trials of Vitargus beginning in Q4 of this year, the data of which may be included in the pivotal trial phase required by the US FDA to obtain marketing approval. And, in connection with our medicine addressing depression for cancer patients, MDD for Cancer Patients, we submitted all necessary protocol documents to Cedar-Sinai Medical Center that we believe will enable them to issue their final approval to initiate clinical trial Phase I/II for this drug before the end of 2021.” 

Dr. Doong continued, “We also took steps during the quarter to expand our patent protection for our medicines that address MDD andAttention Deficit/Hyperactivity Disorderby applying for additional patents in both the United States and China that include the results of the Phase II human trials for these medicines.”

Subsequent to the quarter, the company completed a public offering of 1,100,000 units, consisting of 1,100,000 shares of its common stock, Series A Warrants to purchase up to 1,100,000 shares of common stock at $6.30 per share and Series B Warrants to purchase up to 1,100,000 shares of common stock at $10.00 per share, resulting in net proceeds to ABVC BioPharma of $6,021,585, after deducting the underwriting commissions and offering expenses payable by us. We intend to use the net proceeds from the offering to fund clinical trials and for working capital and general business purposes. In addition, while we have not entered into any agreements, commitments or understandings relating to any significant transaction, we may use a portion of the net proceeds to pursue acquisitions, joint ventures, and other strategic transactions.

The Company’s common stock began trading on The Nasdaq Capital Market on August 3, 2021,under the ticker symbol “ABVC”. 

About ABVC Biopharma
ABVC Biopharma is a clinical-stage biopharmaceutical company focused on utilizing its licensed technology to conduct proof-of-concept trials through Phase II of the clinical development process at world-famous research institutions (such as Stanford University, University of California at San Francisco, and Cedars-Sinai Medical Center). The company has an active pipeline of six drugs and one medical device (ABV-1701/Vitargus®) under development.
Disclaimer
Clinical trials are in early stages, and there is no guarantee that any specific outcome will be achieved. Past performance is not indicative of future results. Investments may be speculative and illiquid, and there is a risk of complete loss. 
Forward-Looking Statements
Clinical trials are in early stages, and there is no guarantee that any specific outcome will be achieved. This press release contains “forward-looking statements.” Such statements may be preceded by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential,” or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions, and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company’s control, and cannot be predicted or quantified, and, consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) our inability to manufacture our product candidates on a commercial scale on our own, or in collaboration with third parties; (ii) difficulties in obtaining financing on commercially reasonable terms; (iii) changes in the size and nature of our competition; (iv) loss of one or more key executives or scientists; and (v) difficulties in securing regulatory approval to proceed to the next level of the clinical trials or to market our product candidates. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission (SEC), including the Company’s Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Investors are urged to read these documents free of charge on the SEC’s website at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.
Contact:

Andy An – Chief Financial Officer
765-610-8826
andyan@ambrivis.com

ABVC BIOPHARMA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

 
 
June 30, 
2021

 
 
December 31,
2020

 

 
 
(Unaudited)
 
 
 
 

ASSETS
 
 
 
 
 
 

Current Assets  
 
 
 
 
 
 

Cash and cash equivalents
 
$
924,841
 
 
$
4,273,208
 

Restricted cash and cash equivalents
 
 
732,163
 
 
 
728,163
 

Accounts receivable, net
 
 
297,024
 
 
 
159,712
 

Accounts receivable – related parties, net
 
 
145,475
 
 
 
143,435
 

Due from related parties
 
 
710,257
 
 
 
696,255
 

Inventory, net
 
 

 
 
 

 

Prepaid expense and other current assets
 
 
817,889
 
 
 
172,193
 

Total Current Assets
 
 
3,627,649
 
 
 
6,172,966
 

 
 
 
 
 
 
 
 
 

Property and equipment, net
 
 
511,747
 
 
 
514,834
 

Operating lease right-of-use assets
 
 
1,636,436
 
 
 
1,772,747
 

Goodwill, net
 
 

 
 
 

 

Long-term investments
 
 
1,095,751
 
 
 
1,190,727
 

Deferred tax assets
 
 
1,912,356
 
 
 
1,790,597
 

Prepaid expenses – noncurrent
 
 
119,985
 
 
 
119,315
 

Security deposits
 
 
41,042
 
 
 
45,519
 

Total Assets
 
$
8,944,966
 
 
$
11,606,705
 

 
 
 
 
 
 
 
 
 

LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 

Current Liabilities
 
 
 
 
 
 
 
 

Accounts payable
 
$
5,047
 
 
$
23,044
 

Short-term bank loans
 
 
1,634,500
 
 
 
1,629,000
 

Short-term loan
 
 
100,000
 
 
 
100,000
 

Notes payable
 
 
107,400
 
 
 
106,800
 

Accrued expenses and other current liabilities
 
 
1,865,254
 
 
 
2,118,854
 

Advance from customers
 
 
10,985
 
 
 
12,070
 

Operating lease liabilities – current portion
 
 
337,170
 
 
 
316,178
 

Due to related parties
 
 
315,676
 
 
 
288,445
 

Convertible notes payable – related parties, current portion
 
 

 
 
 
250,000
 

Total Current Liabilities
 
 
4,376,032
 
 
 
4,844,391
 

Paycheck Protection Program loan payable
 
 
236,498
 
 
 
124,400
 

Tenant security deposit
 
 
17,180
 
 
 
19,280
 

Operating lease liability – noncurrent portion
 
 
1,299,267
 
 
 
1,456,567
 

Convertible notes payable – noncurrent portion
 
 
2,500,000
 
 
 
2,500,000
 

Total Liabilities
 
 
8,428,977
 
 
 
8,944,638
 

 
 
 
 
 
 
 
 
 

Equity
 
 
 
 
 
 
 
 

Preferred stock, $0.001 par value, 20,000,000 authorized, nil shares issued and outstanding
 
 

 
 
 

 

Common stock, $0.001 par value, 100,000,000 authorized, 24,470,526 and 24,420,526 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively
 
 
24,470
 
 
 
24,420
 

Additional paid-in capital
 
 
41,001,757
 
 
 
40,751,807
 

Stock subscription receivable
 
 
(2,708,880
)
 
 
(3,160,360
)

Accumulated deficit
 
 
(28,742,458
)
 
 
(25,642,387
)

Accumulated other comprehensive income
 
 
965,581
 
 
 
564,860
 

Treasury stock
 
 
(9,100,000
)
 
 
(9,100,000
)

Total Stockholders’ Equity
 
 
1,440,470
 
 
 
3,438,340
 

Noncontrolling interest
 
 
(924,481
)
 
 
(776,273
)

Total Equity
 
 
515,989
 
 
 
2,662,067
 

 
 
 
 
 
 
 
 
 

Total Liabilities and Equity
 
$
8,944,966
 
 
$
11,606,705
 

ABVC BIOPHARMA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(UNAUDITED)

 
 
Three Months Ended
June 30,

 
 
Six Months Ended
June 30,

 

 
 
2021
 
 
2020
 
 
2021
 
 
2020
 

Revenues
 
$
31,441
 
 
$
226,513
 
 
$
294,591
 
 
$
305,299
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Cost of revenues
 
 
646
 
 
 
4,236
 
 
 
1,891
 
 
 
8,195
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Gross profit
 
 
30,795
 
 
 
222,277
 
 
 
292,700
 
 
 
297,104
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Operating expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Selling, general and administrative expenses
 
 
1,231,692
 
 
 
1,277,133
 
 
 
2,399,287
 
 
 
2,430,022
 

Research and development expenses
 
 
358,878
 
 
 
139,082
 
 
 
480,193
 
 
 
231,872
 

Stock-based compensation
 
 
475,740
 
 
 
75
 
 
 
701,480
 
 
 
600
 

Total operating expenses
 
 
2,066,310
 
 
 
1,416,290
 
 
 
3,580,960
 
 
 
2,662,494
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Loss from operations
 
 
(2,035,515
)
 
 
(1,194,013
)
 
 
(3,288,260
)
 
 
(2,365,390
)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Other income (expense)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Interest income
 
 
10,722
 
 
 
9,350
 
 
 
63,251
 
 
 
20,070
 

Interest expense
 
 
(82,671
)
 
 
(140,525
)
 
 
(212,900
)
 
 
(272,042
)

Rent income
 
 
53,331
 
 
 
5,249
 
 
 
58,198
 
 
 
10,480
 

Rent income – related parties
 
 
800
 
 
 
1,200
 
 
 
2,400
 
 
 
2,400
 

Impairment loss
 
 

 
 
 
(944,204
)
 
 

 
 
 
(944,204
)

Investment loss
 
 

 
 
 
(38,937
)
 
 

 
 
 
(38,937
)

Gain/Loss on foreign exchange changes
 
 
(5,758
)
 
 
8,656
 
 
 
(4,807
)
 
 
8,658
 

Gain/Loss on investment in equity securities
 
 
(53,591
)
 
 
(109,656
)
 
 
(101,382
)
 
 
(180,067
)

Other income
 
 
162
 
 
 
170,179
 
 
 
233
 
 
 
176,501
 

Government grant income
 
 

 
 
 

 
 
 
124,400
 
 
 

 

Total other expenses
 
 
(77,005
)
 
 
(1,038,688
)
 
 
(70,607
)
 
 
(1,217,141
)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Loss before provision income tax
 
 
(2,112,520
)
 
 
(2,232,701
)
 
 
(3,358,867
)
 
 
(3,582,531
)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Provision for income tax
 
 
(59,564
)
 
 
(48,644
)
 
 
(110,588
)
 
 
(89,212
)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Net loss
 
 
(2,052,956
)
 
 
(2,184,057
)
 
 
(3,248,279
)
 
 
(3,493,319
)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Net loss attributable to noncontrolling interests
 
 
(81,390
)
 
 
(334,760
)
 
 
(148,208
)
 
 
(396,484
)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Net loss attributed to ABVC and subsidiaries
 
 
(1,971,566
)
 
 
(1,849,297
)
 
 
(3,100,071
)
 
 
(3,096,835
)

Foreign currency translation adjustment
 
 
364,581
 
 
 
(10,568
)
 
 
400,721
 
 
 
(17,019
)

Comprehensive loss
 
$
(1,606,985
)
 
$
(1,859,865
)
 
$
(2,699,350
)
 
$
(3,113,854
)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Net loss per share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Basic and diluted
 
$
(0.08
)
 
$
(0.09
)
 
$
(0.13
)
 
$
(0.16
)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Weighted average number of common shares outstanding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Basic and diluted
 
 
24,421,082
 
 
 
19,488,168
 
 
 
24,420,804
 
 
 
19,486,355
 

ABVC BIOPHARMA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS 
FOR THE SIX MONTHS ENDED JUNE 30, 2021 AND 2020
(UNAUDITED)

 
 
2021
 
 
2020
 

Cash flows from operating activities
 
 
 
 
 
 

Net loss
 
$
(3,248,279
)
 
$
(3,493,319
)

Adjustments to reconcile net loss to net cash used in operating activities:
 
 
 
 
 
 
 
 

Depreciation
 
 
5,869
 
 
 
21,599
 

Stock based compensation for nonemployees
 
 
701,480
 
 
 
600
 

Gain/Loss on investment in equity securities
 
 
101,382
 
 
 
180,067
 

Government grant income
 
 
(124,400
)
 
 

 

Other non-cash income and expenses
 
 

 
 
 
(5,886
)

Investment loss
 
 

 
 
 
983,141
 

Deferred tax
 
 
(111,388
)
 
 
(92,062
)

Changes in operating assets and liabilities:
 
 
 
 
 
 
 
 

Decrease (increase) in accounts receivable
 
 
(137,312
)
 
 
(39,845
)

Decrease (increase) in prepaid expenses and deposits
 
 
(219,020
)
 
 
20,091
 

Decrease (increase) in due from related parties
 
 
(12,346
)
 
 
(438,174
)

Increase (decrease) in accounts payable
 
 
(17,997
)
 
 
(16,183
)

Increase (decrease) in notes payable
 
 

 
 
 
51,240
 

Increase (decrease) in accrued expenses and other current liabilities
 
 
201,591
 
 
 
736,046
 

Increase (decrease) in advance from others
 
 
(1,085
)
 
 
836
 

Increase (decrease) in due to related parties
 
 
4,427
 
 
 
44,778
 

Net cash used in operating activities
 
 
(2,857,078
)
 
 
(2,047,071
)

 
 
 
 
 
 
 
 
 

Cash flows from investing activities
 
 
 
 
 
 
 
 

Net proceeds from sale of investment
 
 

 
 
 
33,300
 

Prepayment for equity investment
 
 
(421,974
)
 
 

 

Net cash provided by (used in) investing activities
 
 
(421,974
)
 
 
33,300
 

 
 
 
 
 
 
 
 
 

Cash flows from financing activities
 
 
 
 
 
 
 
 

Issuance of common stock for private placement
 
 

 
 
 
1,697,051
 

Issuance of common stock for stock-based compensation
 
 

 
 
 
493,480
 

Proceeds from short-term loan
 
 

 
 
 
100,000
 

Proceeds from short-term borrowing from third parties
 
 

 
 
 
31,850
 

Proceeds from short-term borrowing from related parties
 
 

 
 
 
71,688
 

Repayment of convertible notes
 
 
(306,836
)
 
 

 

Proceeds from long-term loans
 
 
236,498
 
 
 
124,400
 

Repayment of long-term bank loans
 
 
(4,396
)
 
 
(263,362
)

Net cash provided by financing activities
 
 
(74,734
)
 
 
2,255,107
 

 
 
 
 
 
 
 
 
 

Effect of exchange rate changes on cash and cash equivalents and restricted cash
 
 
9,419
 
 
 
4,590
 

 
 
 
 
 
 
 
 
 

Net increase (decrease) in cash and cash equivalents and restricted cash
 
 
(3,344,367
)
 
 
245,926
 

 
 
 
 
 
 
 
 
 

Cash and cash equivalents and restricted cash
 
 
 
 
 
 
 
 

Beginning
 
 
5,001,371
 
 
 
160,443
 

Ending
 
$
1,657,004
 
 
$
406,369
 

 
 
 
 
 
 
 
 
 

Supplemental disclosure of cash flows
 
 
 
 
 
 
 
 

Cash paid during the year for:
 
 
 
 
 
 
 
 

Interest expense paid
 
$
69,623
 
 
$
59,812
 

Income taxes paid
 
$

 
 
$

 

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The post ABVC BioPharma Reports Second Quarter 2021 Results first appeared on Smallcaps Daily.

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