FREEHOLD, N.J., May 14, 2018 (GLOBE NEWSWIRE) -- Avalon GloboCare Corp. (OTCQB:AVCO), a leading global developer of cell-based technologies, today announced financial results and provided a business update for the first quarter ended March 31, 2018.

First Quarter 2018 Highlights:

-- Revenues increased 365% to $307,913 for the first quarter ended March 31, 2018; -- Cash at March 31, 2018 was $2.1 million; -- Teamed up with Weill Cornell Medicine to establish joint translational research initiative in stem cell technology and regenerative medicine; -- Formed strategic partnership with major biomedical enterprise Da An Gene Co., Ltd. (“Da An Gene”); -- Majority-owned subsidiary, GenExosome Technologies Inc., launched its U.S. operations in Ohio; -- Formed joint laboratory with top-ranked hospital in Shanghai for regenerative exosomics; -- Submitted application for Nasdaq listing.

David Jin, M.D., Ph.D., CEO and President of Avalon GloboCare Corp., stated, “We made significant progress in the first quarter of 2018. We started off the year by forming a strategic partnership with Da An Gene, which is a leader in the molecular diagnostics market. We believe this partnership will help significantly accelerate our product development and commercialization by leveraging Da An Gene’s genomic sequencing and profiling platform, as well as its commercial network.”

“We have continued our expansion in the U.S. by launching operations of our GenExosome subsidiary in Ohio, where we plan to market and distribute our Exosome Isolation Systems. We are making progress with our commercial launch and believe this technology has the potential to transform the liquid biopsy and regenerative medicine markets by making exosome-specific diagnostics and therapies readily available and commercially viable. Continuing our U.S. growth, we have also jointly established a translational research training program with the Shahin Rafii Laboratory of the Division of Regenerative Medicine at Weill Cornell Medicine in New York. The joint laboratory provides us access to a world-class stem cell facility along with the existing clinical resources available to us through the Lu Daopei hospital network,” continued Dr. Jin.

“Importantly, we are moving forward with our plans to list on NASDAQ, which we believe will provide us greater exposure within the investment community as we execute on our upcoming milestones,” concluded Dr. Jin.

Revenues for the first quarter ended March 31, 2018 were $307,913 versus $66,286 for the first quarter ended March 31, 2017. The increase in revenues was due to property rental income, development services and sales of developed products. Operating loss for the quarter ended March 31, 2018 was $1.3 million versus operating loss of $0.5 million for first quarter ended March 31, 2017, which reflects increased SG&A expenses to support the anticipated growth, as well as an increase in public company expenses in advance of the planned listing on a national exchange. Net loss for the first quarter ended March 31, 2018 was $1.55 million or ($0.02) earnings per share, versus net loss of $0.55 million or ($0.01) earnings per share for the first quarter ended March 31, 2017.

About Avalon GloboCare Corp.

Avalon GloboCare Corp. (OTCQB:AVCO) is a global intelligent biotech developer and healthcare service provider dedicated to promoting and empowering high impact, transformative cell-based /technologies and their clinical applications, as well as healthcare facility management through its core platforms, namely "Avalon Cell" and "Avalon Rehab." In addition, Avalon provides strategic advisory and outsourcing services to facilitate and enhance their clients' growth, development, as well as competitiveness in both domestic and global healthcare markets. Avalon also engages in the management of stem cell banks and specialty clinical laboratories. Through its U.S. subsidiary, GenExosome Technologies Inc., Avalon further establishes its leading role in the fields of liquid biopsy, precision medicine and regenerative medicine.

Forward-Looking StatementsCertain statements contained in this press release may constitute "forward-looking statements." Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors as disclosed in our filings with the Securities and Exchange Commission located at their website ( http://www.sec.gov ). In addition to these factors, actual future performance, outcomes, and results may differ materially because of more general factors including (without limitation) general industry and market conditions and growth rates, economic conditions, and governmental and public policy changes. The forward-looking statements included in this press release represent the Company's views as of the date of this press release and these views could change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to the date of the press release.

Contact Information: Avalon GloboCare Corp. 4400 Route 9, Suite 3100Freehold, NJ 07728 PR@Avalon-GloboCare.com

Investor Relations: Crescendo Communications, LLC Tel: (212) 671-1020 avco@crescendo-ir.com

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AVALON GLOBOCARE CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS As of --------------------------- March 31, December 31, 2018 2017 ------------ ------------ (Unaudited) ASSETS CURRENT ASSETS: Cash $ 2,125,656 $ 3,027,033 Accounts receivable, net of allowance for doubtful accounts 7,027 10,179 Tenants receivable, net of allowance for doubtful accounts 37,990 38,469 Security deposit 28,016 6,916 Inventory 10,111 2,667 Prepaid expenses and other current assets 74,406 149,713 ---------- - ---------- - Total Current Assets 2,283,206 3,234,977 ---------- - ---------- - OTHER ASSETS: Security deposit - noncurrent portion - 25,322 Prepayment for long-term assets 47,714 153,688 Property and equipment, net 158,415 48,029 Investment in real estate, net 7,591,952 7,623,757 Intangible assets, net 1,501,367 1,583,260 ---------- - ---------- - Total Other Assets 9,299,448 9,434,056 ---------- - ---------- - Total Assets $ 11,582,654 $ 12,669,033 ---------- - ---------- - LIABILITIES AND EQUITY CURRENT LIABILITIES: Accounts payable $ - $ 29 Accrued liabilities and other payables 302,500 124,064 Accrued liabilities and other payables - related parties 25,481 39,927 Deferred rental income 7,254 12,769 Loan payable 1,500,000 1,500,000 Interest payable 375,096 138,110 VAT and other taxes payable 34,357 2,997 Tenants' security deposit 73,400 92,288 Due to related party 450,000 450,000 Refundable deposit 3,000,000 3,000,000 ---------- - ---------- - Total Current Liabilities 5,768,088 5,360,184 ---------- - ---------- - Commitments and Contingencies EQUITY: Preferred stock, $0.0001 par value; 10,000,000 shares authorized; no shares issued and outstanding at March 31, 2018 and December 31, 2017 - - Common stock, $0.0001 par value; 490,000,000 shares authorized; 70,278,622 shares issued and 69,758,622 shares outstanding at March 31, 2018; 70,278,622 shares issued and outstanding at December 31, 2017 7,028 7,028 Additional paid-in capital 12,016,633 11,490,285 Less: common stock held in treasury, at cost; 520,000 and 0 shares at March 31, 2018 and December 31, 2017, respectively (522,500 ) - Accumulated deficit (4,999,233 ) (3,517,654 ) Statutory reserve 6,578 6,578 Accumulated other comprehensive loss - foreign currency translation adjustment (39,316 ) (91,994 ) ---------- - ---------- - Total Avalon GloboCare Corp. stockholders' equity 6,469,190 7,894,243 Non-controlling interest (654,624 ) (585,394 ) ---------- - ---------- - Total Equity 5,814,566 7,308,849 ---------- - ---------- - Total Liabilities and Equity $ 11,582,654 $ 12,669,033 ---------- - ---------- -

AVALON GLOBOCARE CORP. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS For the For the Three Months Three Months Ended Ended March 31, March 31, 2018 2017 ------------ ------------ REVENUES Real property rental $ 296,623 $ - Development services and sales of developed products 11,290 - Medical related consulting services - related party - 66,286 ---------- - Total Revenues 307,913 66,286 ---------- - ---------- - COSTS AND EXPENSES Real property operating expenses 210,274 - Development services and sales of developed products 16,520 - Medical related consulting services - related party - 99,581 ---------- - Total Costs and Expenses 226,794 99,581 ---------- - ---------- - REAL PROPERTY OPERATING INCOME 86,349 - ---------- - ---------- - GROSS LOSS FROM DEVELOPMENT SERVICES AND SALES OF (5,230 ) - DEVELOPED PRODUCTS ---------- - ---------- - GROSS LOSS FROM MEDICAL RELATED CONSULTING SERVICES - (33,295 ) ---------- - ---------- - OTHER OPERATING EXPENSES: Selling expenses - 8,711 Compensation and related benefits 538,814 182,927 Professional fees 571,772 207,218 Other general and administrative 285,252 60,732 ---------- - Total Other Operating Expenses 1,395,838 459,588 ---------- - ---------- - LOSS FROM OPERATIONS (1,314,719 ) (492,883 ) ---------- - ---------- - OTHER INCOME (EXPENSE) Interest income 408 794 Interest expense (236,986 ) - Foreign currency transaction loss - (57,244 ) Other income 328 - ---------- - Total Other Expense, net (236,250 ) (56,450 ) ---------- - ---------- - LOSS BEFORE INCOME TAXES (1,550,969 ) (549,333 ) INCOME TAXES - - NET LOSS $ (1,550,969 ) $ (549,333 ) ---------- - ---------- - LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING (69,390 ) - INTEREST ---------- - ---------- - NET LOSS ATTRIBUTABLE TO AVALON GLOBOCARE CORP. $ (1,481,579 ) $ (549,333 ) COMMON SHAREHOLDERS ---------- - ---------- - COMPREHENSIVE LOSS: NET LOSS (1,550,969 ) (549,333 ) OTHER COMPREHENSIVE INCOME (LOSS) Unrealized foreign currency translation gain (loss) 52,838 (39,771 ) ---------- - ---------- - COMPREHENSIVE LOSS $ (1,498,131 ) $ (589,104 ) ---------- - ---------- - LESS: COMPREHENSIVE LOSS ATTRIBUTABLE TO (69,230 ) - NON-CONTROLLING INTEREST COMPREHENSIVE LOSS ATTRIBUTABLE TO AVALON GLOBOCARE $ (1,428,901 ) $ (589,104 ) CORP. COMMON SHAREHOLDERS ---------- - ---------- - NET LOSS PER COMMON SHARE ATTRIBUTABLE TO AVALON GLOBOCARE CORP. COMMON SHAREHOLDERS: Basic and diluted $ (0.02 ) $ (0.01 ) ---------- - ---------- - WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: Basic and diluted 69,781,733 62,595,289 ---------- - ---------- -

AVALON GLOBOCARE CORP. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the For the Three Months Three Ended Months Ended March 31, March 31, 2018 2017 ------------ ----------- CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ (1,550,969 ) $ (549,333 ) Adjustments to reconcile net loss from operations to net cash used in operating activities: Depreciation and amortization 123,379 26 Stock-based compensation and service fees 526,348 138,334 Changes in operating assets and liabilities: Accounts receivable 3,469 - Accounts receivable - related parties - 547 Tenants receivable 479 - Inventory (7,372 ) - Prepaid expenses and other current assets 75,693 2,254 Security deposit 5,284 (23,922 ) Accounts payable (30 ) - Accrued liabilities and other payables 178,136 29,202 Accrued liabilities and other payables - related parties (14,498 ) 16,257 Deferred rental income (5,515 ) - Interest payable 236,986 - Income taxes payable - (21,150 ) VAT and other taxes payable 31,264 (5,029 ) Tenants' security deposit (18,888 ) - ---------- - --------- - NET CASH USED IN OPERATING ACTIVITIES (416,234 ) (412,814 ) ---------- - --------- - CASH FLOWS FROM INVESTING ACTIVITIES: Prepayment made for acquisition of real property - (2,000 ) Purchase of property and equipment (7,852 ) - ---------- - --------- - NET CASH USED IN INVESTING ACTIVITIES (7,852 ) (2,000 ) ---------- - --------- - CASH FLOWS FROM FINANCING ACTIVITIES Repurchase of common stock (522,500 ) - Refundable deposit in connection with Share Subscription - 3,000,000 Agreement ---------- - --------- - NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES (522,500 ) 3,000,000 ---------- - --------- - EFFECT OF EXCHANGE RATE ON CASH 45,209 (40,147 ) ---------- - --------- - NET (DECREASE) INCREASE IN CASH (901,377 ) 2,545,039 CASH - beginning of period 3,027,033 2,886,189 ---------- - --------- - CASH - end of period $ 2,125,656 $ 5,431,228 ---------- - --------- - SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid for: Interest $ - $ - ---------- - --------- - Income taxes $ - $ 21,150 ---------- - --------- - NON-CASH INVESTING AND FINANCING ACTIVITIES: Common stock issued in connection with Share Subscription $ - $ 300 Agreement ---------- - --------- - Acquisition of equipment by decreasing prepayment for $ 110,103 $ - long-term assets ---------- - --------- -