Full Press Release Details
ABVC Biopharma Announces Fiscal Year 2021 Financial
and Operational Results
FREMONT, CA, March 31, 2022 -- ABVC BioPharma,
Inc. (Nasdaq: ABVC), a biotechnology company specializing in botanically based solutions that seeks to deliver high efficacy with low
toxicity for improved health outcomes, today announced its financial and operating results for the fiscal year ended December 31, 2021.
Year 2021 Financial Results
All comparisons are made on a year-over-year basis.
with our remarkable accomplishments and meaningful progress in 2021," said Dr. Howard Doong, M.D., Ph.D., Chief Executive Officer
of ABVC BioPharma. "I am pleased that the CSR for the Phase II clinical study of our major depressive disorder (MDD) drug was received
by the US FDA without comments. The study demonstrated material improvement in both efficacy and safety, compared to existing medications
available. As such, we will seek a Phase III partner in 2022 to further prove the statistical significance of our MDD results. In addition,
Vitargus, a gel we developed to make retina reattachment surgery more comfortable for the patient, has shown advantages over existing
devices available to surgeons, prompting us to start a self-funded pivotal trial phase in 2022. We remain excited about our ongoing research
initiatives and look forward to expanding our product pipeline in the future."
About ABVC BioPharma
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.
Phone: +1 646-677-1872
Email: Lucy.Peng@icrinc.com
ABVC BIOPHARMA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
| December 31, | December 31, | |||||||
| 2021 | 2020 | |||||||
| ASSETS | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 5,828,548 | $ | 4,273,208 | ||||
| Restricted cash and cash equivalents | 736,667 | 728,163 | ||||||
| Accounts receivable, net | 280,692 | 159,712 | ||||||
| Accounts receivable - related parties, net | 145,399 | 143,435 | ||||||
| Due from related parties | 1,286,618 | 696,255 | ||||||
| Inventory, net | 25,975 | - | ||||||
| Short-term investments | 108,147 | - | ||||||
| Prepayment for long-term investments | 684,720 | - | ||||||
| Prepaid expense and other current assets | 528,354 | 172,193 | ||||||
| Total Current Assets | 9,625,120 | 6,172,966 | ||||||
| Property and equipment, net | 525,881 | 514,834 | ||||||
| Operating lease right-of-use assets | 1,471,899 | 1,772,747 | ||||||
| Goodwill, net | - | - | ||||||
| Long-term investments | 932,755 | 1,190,727 | ||||||
| Deferred tax assets | 981,912 | 1,790,597 | ||||||
| Prepaid expenses - noncurrent | 119,309 | 119,315 | ||||||
| Security deposits | 41,157 | 45,519 | ||||||
| Total Assets | $ | 13,698,033 | $ | 11,606,705 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current Liabilities | ||||||||
| Accounts payable | $ | - | $ | 23,044 | ||||
| Short-term bank loans | 1,640,000 | 1,629,000 | ||||||
| Short term loan | - | 100,000 | ||||||
| Notes payable | - | 106,800 | ||||||
| Accrued expenses and other current liabilities | 1,300,803 | 2,118,854 | ||||||
| Advance from customers | 10,985 | 12,070 | ||||||
| Operating lease liability - current portion | 347,100 | 316,178 | ||||||
| Due to related parties | 393,424 | 288,445 | ||||||
| Convertible notes payable - related parties, current portion | - | 250,000 | ||||||
| Total Current Liabilities | 3,692,312 | 4,844,391 | ||||||
| Paycheck Protection Program Loan Payable | - | 124,400 | ||||||
| Tenant security deposit | 10,580 | 19,280 | ||||||
| Operating lease liability - noncurrent portion | 1,124,799 | 1,456,567 | ||||||
| Convertible notes payable - noncurrent portion | - | 2,500,000 | ||||||
| Total Liabilities | 4,827,691 | 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, 28,926,322 and 24,420,526 shares issued and outstanding | 28,926 | 24,420 | ||||||
| Additional paid-in capital | 58,113,667 | 40,751,807 | ||||||
| Stock subscription receivable | (2,257,400 | ) | (3,160,360 | ) | ||||
| Accumulated deficit | (38,481,200 | ) | (25,642,387 | ) | ||||
| Accumulated other comprehensive income | 539,660 | 564,860 | ||||||
| Treasury stock | (9,100,000 | ) | (9,100,000 | ) | ||||
| Total Stockholders' equity | 8,843,653 | 3,438,340 | ||||||
| Noncontrolling Interest | 26,689 | (776,273 | ) | |||||
| Total Equity | 8,870,342 | 2,662,067 | ||||||
| Total Liabilities and Equity | $ | 13,698,033 | $ | 11,606,705 |
ABVC BIOPHARMA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
| Year Ended December 31, | ||||||||
| 2021 | 2020 | |||||||
| Revenue | $ | 355,797 | $ | 483,045 | ||||
| Cost of revenue | 5,086 | 18,716 | ||||||
| Gross profit | 350,711 | 464,329 | ||||||
| Operating expenses | ||||||||
| Selling, general and administrative expenses | 5,746,119 | 4,273,468 | ||||||
| Research and development expenses | 1,003,805 | 549,658 | ||||||
| Stock based compensation | 5,306,755 | 4,146,979 | ||||||
| Total operating expenses | 12,056,679 | 8,970,105 | ||||||
| Loss from operations | (11,705,968 | ) | (8,505,776 | ) | ||||
| Other income (expense) | ||||||||
| Interest income | 43,196 | 71,045 | ||||||
| Interest expense | (227,210 | ) | (405,032 | ) | ||||
| Operating sublease income | 134,576 | 20,071 | ||||||
| Operating sublease income - related parties | 4,800 | 4,800 | ||||||
| Impairment loss | - | (961,217 | ) | |||||
| Investment loss | - | (40,589 | ) | |||||
| Gain/Loss on foreign exchange changes | 426,316 | (3,275 | ) | |||||
| Gain/Loss on investment in equity securities | (269,844 | ) | (1,168,733 | ) | ||||
| Other income (expense) | 22,409 | 174,770 | ||||||
| Government grant income | 360,898 | - | ||||||
| Total other income (expenses) | 495,141 | (2,308,160 | ) | |||||
| Loss before provision for income tax | (11,210,827 | ) | (10,813,936 | ) | ||||
| Provision for income tax expense (benefit) | 825,024 | (220,352 | ) | |||||
| Net loss | (12,035,851 | ) | (10,593,584 | ) | ||||
| Net loss attributable to noncontrolling interests | 802,962 | (802,420 | ) | |||||
| Net loss attributed to ABVC and subsidiaries | (12,838,813 | ) | (9,791,164 | ) | ||||
| Foreign currency translation adjustment | (25,200 | ) | (98,893 | ) | ||||
| Comprehensive loss | $ | (12,864,013 | ) | $ | (9,890,057 | ) | ||
| Net loss per share: | ||||||||
| Basic and diluted | $ | (0.51 | ) | $ | (0.50 | ) | ||
| Weighted average number of common shares outstanding: | ||||||||
| Basic and diluted | 25,053,522 | 19,715,559 |
ABVC BIOPHARMA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2021 AND 2020
| 2021 | 2020 | |||||||
| Cash flows from operating activities | ||||||||
| Net loss | $ | (12,035,851 | ) | $ | (10,593,584 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation | 11,993 | 37,142 | ||||||
| Stock based compensation | 5,306,755 | 4,146,979 | ||||||
| Gain/Loss on investment in equity securities | 269,844 | 1,168,733 | ||||||
| Government grant income | (360,898 | ) | - | |||||
| Other non-cash income and expenses | - | (15,360 | ) | |||||
| Investment loss | - | 1,001,806 | ||||||
| Deferred tax | 824,199 | (223,201 | ) | |||||
| Changes in operating assets and liabilities: | ||||||||
| Decrease (increase) in accounts receivable | (120,980 | ) | 3,696 | |||||
| Decrease (increase) in prepaid expenses and other current assets | (357,276 | ) | (15,778 | ) | ||||
| Decrease (increase) in due from related parties | (595,037 | ) | 20,645 | |||||
| Decrease (increase) in inventory | (25,830 | ) | - | |||||
| Increase (decrease) in accounts payable | (23,044 | ) | (951 | ) | ||||
| Increase (decrease) in accrued expenses and other current liabilities | (173,151 | ) | (359,822 | ) | ||||
| Increase (decrease) in advanced from others | (1,085 | ) | (1,015 | ) | ||||
| Increase (decrease) in due to related parties | (317,358 | ) | 266,791 | |||||
| Net cash used in operating activities | (7,597,719 | ) | (4,563,919 | ) | ||||
| Cash flows from investing activities | ||||||||
| Net proceeds from sale of investment | - | 147,804 | ||||||
| Purchase of investments | (107,547 | ) | - | |||||
| Purchase of equipment | (17,503 | ) | - | |||||
| Loan to related parties | - | (373,235 | ) | |||||
| Prepayment for equity investment | (680,916 | ) | ||||||
| Net cash used in investing activities | (805,966 | ) | (225,431 | ) | ||||
| Cash flows from financing activities | ||||||||
| Issuance of common stock | 11,119,452 | 7,615,331 | ||||||
| Payment for offering costs | (850,429 | ) | - | |||||
| Proceeds from convertible notes | - | 2,500,000 | ||||||
| Repayment of convertible notes | (306,836 | ) | - | |||||
| Repayment of short-term loan | (100,000 | ) | - | |||||
| Repayment of notes payable | (107,400 | ) | - | |||||
| Repayment of short-term bank loan | - | (350,000 | ) | |||||
| Proceeds from short-term loan | - | 100,000 | ||||||
| Proceeds from long-term loan | 236,498 | 124,400 | ||||||
| Proceeds from (repayments of) short term borrowings from third parties | 4,265 | (480,989 | ) | |||||
| Proceeds from borrowings from related parties | - | 72,704 | ||||||
| Repayment of long-term bank loans | - | (13,603 | ) | |||||
| Net cash provided by financing activities | 9,995,550 | 9,567,843 | ||||||
| Effect of exchange rate changes on cash and cash equivalents and restricted cash | (28,021 | ) | 62,435 | |||||
| Net increase in cash and cash equivalents and restricted cash | 1,563,844 | 4,840,928 | ||||||
| Cash and cash equivalents and restricted cash | ||||||||
| Beginning | 5,001,371 | 160,443 | ||||||
| Ending | $ | 6,565,215 | $ | 5,001,371 | ||||
| Supplemental disclosure of cash flows | ||||||||
| Cash paid during the year for: | ||||||||
| Interest expense paid | $ | 333,873 | $ | 208,556 | ||||
| Income taxes paid | $ | - | $ | - | ||||
| Non-cash financing and investing activities | ||||||||
| Common shares issued for debt conversion | $ | 2,693,548 | $ | 1,717,051 |