Stock Quote

ABVC BioPharma Reports Second Quarter 2021 Results


Clinical Trials Continue Despite COVID-19 Restrictions 

Fremont, CA, Aug. 12, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- 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 $-  $- 

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.