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ABVC Biopharma Reports Third Quarter 2021 Financial and Operational Results

Fremont, CA – (NewMediaWire) – November 15, 2021 – ABVC BioPharma, Inc. (Nasdaq: ABVC), a biotechnology company specializing in botanically based solutions that deliver high efficacy with low toxicity for improved health outcomes, today announced its financial and operating results for the third quarter of 2021.

Third Quarter 2021 Financial Results

Revenues. The Company generated $98,999 and $115,553 in revenues for the three months ended September 30, 2021 and 2020, respectively; and incurred $393 and $8,619 in cost of sales for the three months ended September 30, 2021 and 2020, respectively. The decrease in revenues was mainly due to the impact of COVID-19 on our CDMO business sector. 
Operating Expenses increased by $672,460, or 48%, to $2,069,160 for the three months ended September 30, 2021 from $1,396,700 for the three months ended September 30, 2020. Such increase in operating expenses was mainly due to the increase in selling, general and administrative expenses and research and development expenses. The Company’s selling, general and administrative expenses and stock-based compensation increased by $543,537, or 43%, mainly due to the increase in company’s marketing and Nasdaq up-list related expenses.
Research and Development expenses increased by $128,923 or approximately 96% primarily because of new service agreements signed with vendors during the three months ended September 30, 2021. 
Other Income (Expense) was $8,643 and ($886,100) for the three months ended September 30, 2021 and 2020, respectively. The change was principally caused by the decrease in interest income and rental income, as well as decreasing loss on investment in equity securities and the increase in government grant income. Interest income was $9,333 for the three months ended September 30, 2021 as compared to $19,571 for the three months ended September 30, 2020. The decrease of $10,238, or approximately -49%, was primarily due to the repayment of certain related-party loans. Other income totaled $131,927 for the three months ended September 30, 2021 as compared to other expense of $171 for the three months ended September 30, 2020. The increase of $132,098 was primarily due to the receipt of the second round of PPP loan forgiveness during the third quarter of 2021. 
Net Loss was $1,886,244 for the three months ended September 30, 2021 compared to $2,131,131 for the three months ended September 30, 2020, representing a decrease of $244,887, or 11%.

Third Quarter 2021 Highlights

The company completed a successful NASDAQ listing that resulted in improved trading liquidity for its shareholders and completion of a public offering of its shares.
Selected the first study site and principal investigator for conducting Phase II clinical trials of Vitargus® in Australia.
Strengthened its intellectual property protections with the filing of two new PCT (Patent Cooperation Treaty) applications in connection with ABVC medicines that help to treat major depressive disorder (MDD) and Attention-Deficit Hyperactivity Disorder (ADHD).
Restructured its joint venture agreement with BioLite Japan K.K., a drug discovery and research firm, which strengthened the company’s global abilities to identify early-stage opportunities in drug development, digital health, and medical device technology, especially in Japan.

Dr. Howard Doong (M.D., Ph.D), Chief Executive Officer of ABVC BioPharma, commented, “ABVC is proud of its accomplishments since the start of the year, highlighted by clinical trial success that continued to demonstrate that botanically derived medicines are safe and effective.” Dr. Doong further noted, “Our successful public offering completed during the quarter and the subsequent exercise of our Series A warrants by many investors has provided sufficient cash to assure that we can meet our goals through mid-2023. And, we are particularly pleased that our up listing on to the Nasdaq exchange has resulted in materially improved liquidity of our stock coupled with a far wider investor base, including several prominent funds that specialize in the biotech sector. Heading into 2022, we continue to proceed down the right path with the development of our product pipeline.”

About ABVC BioPharma, Inc.

ABVC BioPharma is a clinical-stage biopharmaceutical company with an active pipeline of six drugs and one medical device (ABV-1701/Vitargus®) under development. For its drug products, it is 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). For Vitargus®, the company intends to conduct the clinical trials through Phase III at various locations throughout the world. 

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.

This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that state or jurisdiction.

Contact

ICR, LLC
Lucy Peng
Phone: +1 646-677-1872
Email: Lucy.Peng@icrinc.com

ABVC BIOPHARMA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
 

 
 
September 30,
2021

 
 
December 31,
2020

 

 
 
(Unaudited)
 
 
 
 

ASSETS
 
 
 
 
 
 

Current Assets
 
 
 
 
 
 

Cash and cash equivalents
 
$
3,715,609
 
 
$
4,273,208
 

Restricted cash and cash equivalents
 
 
734,163
 
 
 
728,163
 

Short-term Investment
 
 
111,320
 
 
 

 

Accounts receivable, net
 
 
331,367
 
 
 
159,712
 

Accounts receivable – related parties, net
 
 
141,826
 
 
 
143,435
 

Due from related parties
 
 
561,085
 
 
 
696,255
 

 
 
 
 
 
 
 
 
 

Inventory, net
 
 
60,007
 
 
 

 

Prepayment for long-term investments
 
 
639,738
 
 
 

 

Prepaid expense and other current assets
 
 
815,916
 
 
 
172,193
 

Total Current Assets
 
 
7,111,031
 
 
 
6,172,966
 

 
 
 
 
 
 
 
 
 

Property and equipment, net
 
 
527,764
 
 
 
514,834
 

Operating lease right-of-use assets
 
 
1,554,280
 
 
 
1,772,747
 

Goodwill, net
 
 

 
 
 

 

Long-term investments
 
 
1,006,533
 
 
 
1,190,727
 

Deferred tax assets
 
 
1,993,789
 
 
 
1,790,597
 

Prepaid expenses – noncurrent
 
 
120,320
 
 
 
119,315
 

Security deposits
 
 
41,099
 
 
 
45,519
 

Total Assets
 
$
12,354,816
 
 
$
11,606,705
 

 
 
 
 
 
 
 
 
 

LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 

Current Liabilities
 
 
 
 
 
 
 
 

Accounts payable
 
$
16,497
 
 
$
23,044
 

Short-term bank loans
 
 
1,637,250
 
 
 
1,629,000
 

Short-term loan
 
 

 
 
 
100,000
 

Notes payable
 
 

 
 
 
106,800
 

Accrued expenses and other current liabilities
 
 
1,133,748
 
 
 
2,118,854
 

Advance from customers
 
 
10,985
 
 
 
12,070
 

Operating lease liabilities – current portion
 
 
342,131
 
 
 
316,178
 

Due to related parties
 
 
298,269
 
 
 
288,445
 

Convertible notes payable – related parties, current portion
 
 

 
 
 
250,000
 

Total Current Liabilities
 
 
3,438,880
 
 
 
4,844,391
 

Paycheck Protection Program loan payable
 
 
104,167
 
 
 
124,400
 

Tenant security deposit
 
 
9,880
 
 
 
19,280
 

Operating lease liability – noncurrent portion
 
 
1,212,148
 
 
 
1,456,567
 

Convertible notes payable – noncurrent portion
 
 

 
 
 
2,500,000
 

Total Liabilities
 
 
4,765,075
 
 
 
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, 27,935,783 and 24,420,526 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively
 
 
27,935
 
 
 
24,420
 

Additional paid-in capital
 
 
49,716,411
 
 
 
40,751,807
 

Stock subscription receivable
 
 
(2,483,140
)
 
 
(3,160,360
)

Accumulated deficit
 
 
(30,548,946
)
 
 
(25,642,387
)

Accumulated other comprehensive income
 
 
981,718
 
 
 
564,860
 

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

Total Stockholders’ Equity
 
 
8,593,978
 
 
 
3,438,340
 

Noncontrolling interest
 
 
(1,004,237
)
 
 
(776,273
)

Total Equity
 
 
7,589,741
 
 
 
2,662,067
 

 
 
 
 
 
 
 
 
 

Total Liabilities and Equity
 
$
12,354,816
 
 
$
11,606,705
 

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

 
 
Three Months Ended
September 30,

 
 
Nine Months Ended
September 30,

 

 
 
2021
 
 
2020
 
 
2021
 
 
2020
 

Revenues
 
$
98,999
 
 
$
115,553
 
 
$
393,590
 
 
$
420,852
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Cost of revenues
 
 
393
 
 
 
8,619
 
 
 
2,284
 
 
 
16,814
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Gross profit
 
 
98,606
 
 
 
106,934
 
 
 
391,306
 
 
 
404,038
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Operating expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Selling, general and administrative expenses
 
 
1,579,996
 
 
 
1,262,199
 
 
 
3,979,283
 
 
 
2,693,001
 

Research and development expenses
 
 
263,424
 
 
 
134,501
 
 
 
743,617
 
 
 
366,374
 

Stock-based compensation
 
 
225,740
 
 
 

 
 
 
927,220
 
 
 
999,820
 

Total operating expenses
 
 
2,069,160
 
 
 
1,396,700
 
 
 
5,650,120
 
 
 
4,059,195
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Loss from operations
 
 
(1,970,554
)
 
 
(1,289,766
)
 
 
(5,258,814
)
 
 
(3,655,157
)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Other income (expense)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Interest income
 
 
9,333
 
 
 
19,571
 
 
 
72,584
 
 
 
39,641
 

Interest expense
 
 
(38,677
)
 
 
(16,311
)
 
 
(251,577
)
 
 
(288,353
)

Rent income
 
 
2,624
 
 
 
4,774
 
 
 
60,822
 
 
 
15,254
 

Rent income – related parties
 
 
1,200
 
 
 
1,200
 
 
 
3,600
 
 
 
3,600
 

Impairment loss
 
 

 
 
 
(8,507
)
 
 

 
 
 
(952,711
)

Investment loss
 
 

 
 
 
665
 
 
 

 
 
 
(38,272
)

Gain/Loss on foreign exchange changes
 
 
(5,999
)
 
 
(90
)
 
 
(10,806
)
 
 
8,569
 

Gain/Loss on investment in equity securities
 
 
(91,765
)
 
 
(887,231
)
 
 
(193,147
)
 
 
(1,067,298
)

Other (expense) income
 
 
(404
)
 
 
(171
)
 
 
(171
)
 
 
176,330
 

Government grant income
 
 
132,331
 
 
 

 
 
 
256,731
 
 
 

 

Total other expenses
 
 
8,643
 
 
 
(886,100
)
 
 
(61,964
)
 
 
(2,103,240
)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Loss before provision income tax
 
 
(1,961,911
)
 
 
(2,175,866
)
 
 
(5,320,778
)
 
 
(5,758,397
)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Provision for income tax
 
 
(75,667
)
 
 
(44,735
)
 
 
(186,255
)
 
 
(133,947
)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Net loss
 
 
(1,886,244
)
 
 
(2,131,131
)
 
 
(5,134,523
)
 
 
(5,624,450
)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Net loss attributable to noncontrolling interests
 
 
(79,756
)
 
 
(285,085
)
 
 
(227,964
)
 
 
(681,569
)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Net loss attributed to ABVC and subsidiaries
 
 
(1,806,488
)
 
 
(1,846,046
)
 
 
(4,906,559
)
 
 
(4,942,881
)

Foreign currency translation adjustment
 
 
16,137
 
 
 
(25,384
)
 
 
416,858
 
 
 
(42,403
)

Comprehensive loss
 
$
(1,790,351
)
 
$
(1,871,430
)
 
$
(4,489,701
)
 
$
(4,985,284
)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Net loss per share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Basic and diluted
 
$
(0.07
)
 
$
(0.09
)
 
$
(0.20
)
 
$
(0.25
)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Weighted average number of common shares outstanding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Basic and diluted
 
 
26,882,181
 
 
 
19,488,168
 
 
 
25,053,522
 
 
 
19,486,959
 

ABVC BIOPHARMA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS 
(UNAUDITED)

 
 
Nine Months Ended
September 30,

 

 
 
2021
 
 
2020
 

Cash flows from operating activities
 
 
 
 
 
 

Net loss
 
$
(5,134,523
)
 
$
(5,624,450
)

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

Depreciation
 
 
8,725
 
 
 
30,329
 

Stock based compensation for non employees
 
 
927,220
 
 
 
999,820
 

Gain/Loss on investment in equity securities
 
 
193,147
 
 
 
1,067,298
 

Government grant income
 
 
(256,731
)
 
 

 

Other non-cash income and expenses
 
 

 
 
 
(15,360
)

Investment loss
 
 

 
 
 
990,982
 

Deferred tax
 
 
(187,055
)
 
 
(136,797
)

Changes in operating assets and liabilities:
 
 
 
 
 
 
 
 

Decrease (increase) in accounts receivable
 
 
(171,655
)
 
 
14,051
 

Decrease (increase) in prepaid expenses and deposits
 
 
(647,219
)
 
 
47,310
 

Decrease (increase) in due from related parties
 
 
(45,784
)
 
 
381,918
 

Increase (decrease) in accounts payable
 
 
(6,547
)
 
 
(921
)

Increase (decrease) in inventory
 
 
(59,673
)
 
 

 

Increase (decrease) in notes payable
 
 

 
 
 
22,806
 

Increase (decrease) in accrued expenses and other current liabilities
 
 
(338,928
)
 
 
429,051
 

Increase (decrease) in advance from others
 
 
(1,085
)
 
 
332
 

Increase (decrease) in due to related parties
 
 
178,570
 
 
 
(582,242
)

Net cash used in operating activities
 
 
(5,541,538
)
 
 
(2,375,873
)

 
 
 
 
 
 
 
 
 

Cash flows from investing activities
 
 
 
 
 
 
 
 

Sale of investments
 
 

 
 
 
137,088
 

Loan to related parties
 
 

 
 
 
(469,627
)

Purchase of investments
 
 
(110,700
)
 
 

 

Purchases of property, plant and equipment
 
 
(17,503
)
 
 
 
 

Prepayment for equity investment
 
 
(636,174
)
 
 

 

Net cash used in investing activities
 
 
(764,377
)
 
 
(332,539
)

 
 
 
 
 
 
 
 
 

Cash flows from financing activities
 
 
 
 
 
 
 
 

Proceeds from short-term loan
 
 

 
 
 
100,000
 

Proceeds from short-term borrowing from third parties
 
 

 
 
 
512,212
 

Proceeds from short-term borrowing from related parties
 
 

 
 
 
72,433
 

Issuance of common stock
 
 
6,875,000
 
 
 
2,153,231
 

Payment for offering costs
    
 
 
 
(850,429)
 
 
 
 
 
 
 
 

Repayment of convertible notes
 
 
(306,836
)
 
 

 

Repayment of short-term loan
 
 
(100,000
)
 
 

 

Repayment of notes payable
 
 
(107,100
)
 
 

 

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

Repayment of long-term bank loans
 
 
(4,396
)
 
 
(263,483
)

Net cash provided by financing activities
 
 
5,742,737
 
 
 
2,698,793
 

 
 
 
 
 
 
 
 
 

Effect of exchange rate changes on cash and cash equivalents and restricted cash
 
 
11,579
 
 
 
1,029
 

 
 
 
 
 
 
 
 
 

Net increase (decrease) in cash and cash equivalents and restricted cash
 
 
(551,599
)
 
 
(8,590
)

 
 
 
 
 
 
 
 
 

Cash and cash equivalents and restricted cash
 
 
 
 
 
 
 
 

Beginning
 
 
5,001,371
 
 
 
160,443
 

Ending
 
$
4,449,772
 
 
$
151,853
 

 
 
 
 
 
 
 
 
 

Supplemental disclosure of cash flows
 
 
 
 
 
 
 
 

Cash paid during the year for:
 
 
 
 
 
 
 
 

Interest expense paid
 
$
327,642
 
 
$
130,309
 

Income taxes paid
 
$

 
 
$

 

Non-cash financing and investing activities
 
 
 
 
 
 
 
 

Common shares issued for debt conversion 
 

2,693,550 
 
 
$
1,446,780

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The post ABVC Biopharma Reports Third Quarter 2021 Financial and Operational Results first appeared on Smallcaps Daily.

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