ABVC Biopharma Reports First Quarter 2022 Financial and Operational Results
FREMONT, CA, May 16, 2022 (GLOBE NEWSWIRE) — via NewMediaWire—ABVC BioPharma, Inc. (Nasdaq: ABVC), a clinical stage biopharmaceutical company developing therapeutic solutions in oncology/hematology, CNS, and ophthalmology, today announced its financial and operating results for the first quarter of 2022.
First Quarter 2022 Financial Results
All comparisons are made on a year-over-year basis.
- Revenues. The Company generated $25,660 and $263,150 in revenues for the three months ended March 31, 2022 and 2021, respectively. The decrease in revenues was mainly due to the impact of COVID-19 on the Contract Development & Manufacturing Organization (“CDMO”) business sector.
- Operating Expenses increased by $4,727,835 to $6,242,485 for the three months ended March 31, 2022 from $1,514,650 for the three months ended March 31, 2021. The increase in operating expenses was mainly attributable to the increase in stock-based compensation and selling, general and administrative expenses by $4,489,746, which relates to costs in conjunction with the recent stock issuance, as well as the increase in research and development expenses of $238,089 to continue developing the Company’s pipeline.
- Other Income (Expense) was $44,239 and $6,398 for the three months ended March 31, 2022 and 2021, respectively. The change was principally caused by the increase in rental income and decrease in interest expense, as well as the loss on investment in equity securities and government grant income, which occurred in the three months ended March 31, 2021.Net interest income (expense) was $21,962 for the three months ended March 31, 2022, compared to $(77,700) for the three months ended March 31, 2021. The increase of $99,662, or approximately 128%, was primarily due to the repayment of convertible notes payable during the year ended 2021. Government grant income totaled $0 for the three months ended March 31, 2022, compared to $124,400 for the three months ended March 31, 2021, which was recorded as receipt of the first round of PPP loan forgiveness.
- Net Loss was $6,087,615 for the three months ended March 31, 2022 compared to $1,195,323 for the three months ended March 31, 2021.
Recent 2022 Highlights
- Engaged the FreeMind Group to help explore and identify funding opportunities from non-dilutive sources, such as the NIH, DOD, NSF, FDA and BARDA, as well as private foundations.
- All five clinical study sites in Taiwan participating in the Phase II part 2 clinical study of the company’s ADHD medicine completed site initiation visits (SIV).
- The Company entered into a $3.0 million clinical services contract with NeuCen BioMed Co. Ltd. to guide two NeuCen drug products, CEN501 and NEU001, through completion of Phase II clinical studies under U.S. FDA IND regulatory requirements.
- The first subject treatment in the Phase II part 2 clinical study of the Company’s ADHD medicine (ABV-1505) began at the Cheng Hsin General Hospital. The study is a randomized, double-blind, placebo-controlled study, involving a total of approximately 100 patients in the United States and Taiwan. This is a continuation of the Phase II part 1 study of ABV-1505, which was completed successfully at the University of California, San Francisco, and accepted by the U.S. FDA in October 2020.
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 globe.
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
| March 31, | December 31, | ||||||
| 2022 | 2021 | ||||||
| ASSETS | |||||||
| Current Assets | |||||||
| Cash and cash equivalents | $ | 2,717,936 | $ | 5,828,548 | |||
| Restricted cash and cash equivalents | 714,652 | 736,667 | |||||
| Accounts receivable, net | 281,197 | 280,692 | |||||
| Accounts receivable – related parties, net | 145,399 | 145,399 | |||||
| Due from related parties | 2,715,375 | 1,286,618 | |||||
| Inventory, net | 22,700 | 25,975 | |||||
| Short-term investments | 95,553 | 108,147 | |||||
| Prepayment for long-term investments | 663,798 | 684,720 | |||||
| Prepaid expense and other current assets | 631,321 | 528,354 | |||||
| Total Current Assets | 7,987,931 | 9,625,120 | |||||
| Property and equipment, net | 598,648 | 525,881 | |||||
| Operating lease right-of-use assets | 1,382,695 | 1,471,899 | |||||
| Goodwill, net | – | – | |||||
| Long-term investments | 904,254 | 932,755 | |||||
| Deferred tax assets | 1,036,830 | 981,912 | |||||
| Prepaid expenses – noncurrent | 115,664 | 119,309 | |||||
| Security deposits | 40,733 | 41,157 | |||||
| Total Assets | $ | 12,066,755 | $ | 13,698,033 | |||
| LIABILITIES AND EQUITY | |||||||
| Current Liabilities | |||||||
| Short-term bank loans | $ | 1,609,750 | $ | 1,640,000 | |||
| Accrued expenses and other current liabilities | 1,247,558 | 1,300,803 | |||||
| Advance from customers | 10,985 | 10,985 | |||||
| Operating lease liability – current portion | 349,008 | 347,100 | |||||
| Due to related parties | 446,397 | 393,424 | |||||
| Total Current Liabilities | 3,663,698 | 3,692,312 | |||||
| Tenant security deposit | 7,980 | 10,580 | |||||
| Operating lease liability – noncurrent portion | 1,033,686 | 1,124,799 | |||||
| Total Liabilities | 4,705,364 | 4,827,691 | |||||
| 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, 30,307,329 and 28,926,322 shares issued and outstanding | 30,307 | 28,926 | |||||
| Additional paid-in capital | 62,578,549 | 58,113,667 | |||||
| Stock subscription receivable | (2,031,660) | (2,257,400) | |||||
| Accumulated deficit | (44,476,640) | (38,481,200) | |||||
| Accumulated other comprehensive income | 426,321 | 539,660 | |||||
| Treasury stock | (9,100,000) | (9,100,000) | |||||
| Total Stockholders’ equity | 7,426,877 | 8,843,653 | |||||
| Noncontrolling Interest | (65,486) | 26,689 | |||||
| Total Equity | 7,361,391 | 8,870,342 | |||||
| Total Liabilities and Equity | $ | 12,066,755 | $ | 13,698,033 | |||
