ABVC Biopharma Reports First Quarter 2022 Financial and Operational Results

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, LLCLucy PengPhone: [phone]Email: [e-mail]

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