Avalon GloboCare Reports $2.48 Million Net Loss and Increased Revenue Amid Operational Changes

Avalon GloboCare Corp. reported a net loss of $2.48 million for the three months ended March 31, 2025, compared to a loss of $1.37 million during the same period in 2024, marking an increase of 81.5%. The company's revenue from real property rental increased by 11.2% to $349,800, up from $314,588, primarily due to a higher occupancy rate in its New Jersey headquarters. However, total operating expenses surged to $2.27 million, a significant rise from $1.00 million in the previous year, largely driven by a 282.4% increase in professional fees, which were associated with consulting services related to a potential merger.

In terms of operational changes, Avalon GloboCare completed the redemption of its 40% equity interest in Lab Services MSO on February 26, 2025, which had previously contributed to its income from equity method investments. This transaction resulted in a cash inflow of $1.75 million, although it also led to the extinguishment of $11 million in Series B convertible preferred stock. The company has since ceased offering laboratory services, focusing instead on its core product, the KetoAir™ breathalyzer device, which is marketed for monitoring ketosis levels.

Avalon’s total assets decreased significantly to $10.61 million as of March 31, 2025, down from $20.99 million at the end of 2024. This decline was primarily due to the reduction in equity method investments and the extinguishment of preferred stock. The company’s current liabilities increased to $14.45 million, resulting in a working capital deficit of approximately $11.66 million, which raises concerns about its ability to continue as a going concern. The company reported cash and cash equivalents of $1.37 million, a decrease from $2.86 million at the end of the previous year.

Looking ahead, Avalon GloboCare's management has indicated that the company will need to secure additional financing to support its operations and growth initiatives. The current cash balance is not projected to cover operating expenses for the next twelve months, and the company plans to raise capital through equity sales. However, there are no assurances that such financing will be available on favorable terms. The company is also focusing on the commercialization of the KetoAir device and has suspended research and development efforts related to cellular therapy to conserve cash.