Avalon GloboCare Reports $13.5 Million Net Loss and Decreased Assets in Latest 10-Q Filing

Avalon GloboCare Corp. reported significant financial challenges in its latest 10-Q filing for the quarter ending June 30, 2025. The company recorded a net loss of $13.5 million for the quarter, a substantial increase from the $2.1 million loss reported in the same period last year. For the first half of 2025, the net loss reached $15.9 million, compared to $3.5 million for the first half of 2024. The increase in losses is attributed to rising operational expenses, particularly in professional fees and advertising, as well as a notable $1.65 million credit loss expense related to receivables from a previous investment in Lab Services MSO, which the company sold in February 2025.

In terms of revenue, Avalon GloboCare generated $350,406 from real property rental in the second quarter of 2025, marking a 6.9% increase from $327,887 in the same quarter of 2024. For the first half of 2025, rental revenue totaled $700,206, up 9% from $642,475 in the prior year. The increase in rental income is attributed to a higher occupancy rate at the company’s New Jersey property, which stood at 96.2% as of June 30, 2025. However, the company’s total assets decreased significantly to $7.99 million from $20.99 million at the end of 2024, primarily due to the redemption of its equity interest in Lab Services MSO and a reduction in cash reserves.

Operationally, Avalon GloboCare has shifted its focus towards the commercialization of its KetoAir™ breathalyzer device, which is registered as a Class I medical device with the FDA. The company has begun marketing the device and plans to expand its diagnostic applications. However, it has suspended research and development efforts related to cellular therapy to conserve cash and concentrate on its core business. The company’s workforce has also been impacted, with a reduction in employee headcount as part of its cost-cutting measures.

Avalon GloboCare's financial outlook remains uncertain, with a working capital deficit of approximately $14.1 million as of June 30, 2025. The company has indicated that its current cash balance is insufficient to cover operating expenses for the next twelve months, raising substantial doubt about its ability to continue as a going concern. Management plans to raise additional capital through equity sales to fund operations and implement its business strategy, but there are no assurances that these plans will be successful or that financing will be available on favorable terms.

In summary, Avalon GloboCare is navigating a challenging financial landscape, with increasing losses, a significant reduction in assets, and a pressing need for additional capital to sustain operations and pursue its business objectives.