FREMONT, CA, Nov. 15, 2021 (GLOBE NEWSWIRE) — via NewMediaWire — ABVC BioPharma, Inc. (Nasdaq: ABVC), a biotechnology company specializing in botanically based solutions that deliver high efficacy with low toxicity for improved health outcomes, today announced its financial and operating results for the third quarter of 2021. Third Quarter 2021 Financial Results Revenues. The Company generated $98,999 and $115,553 in revenues for the three months ended September 30, 2021 and 2020, respectively; and incurred $393 and $8,619 in cost of sales for the three months ended September 30, 2021 and 2020, respectively. The decrease in revenues was mainly due to the impact of COVID-19 on our CDMO business sector. Operating Expenses increased by $672,460, or 48%, to $2,069,160 for the three months ended September 30, 2021 from $1,396,700 for the three months ended September 30, 2020. Such increase in operating expenses was mainly due to the increase in selling, general and administrative expenses and research and development expenses. The Company’s selling, general and administrative expenses and stock-based compensation increased by $543,537, or 43%, mainly due to the increase in company’s marketing and Nasdaq up-list related expenses.Research and Development expenses increased by $128,923 or approximately 96% primarily because of new service agreements signed with vendors during the three months ended September 30, 2021. Other Income (Expense) was $8,643 and ($886,100) for the three months ended September 30, 2021 and 2020, respectively. The change was principally caused by the decrease in interest income and rental income, as well as decreasing loss on investment in equity securities and the increase in government grant income. Interest income was $9,333 for the three months ended September 30, 2021 as compared to $19,571 for the three months ended September 30, 2020. The decrease of $10,238, or approximately -49%, was primarily due to the repayment of certain related-party loans. Other income totaled $131,927 for the three months ended September 30, 2021 as compared to other expense of $171 for the three months ended September 30, 2020. The increase of $132,098 was primarily due to the receipt of the second round of PPP loan forgiveness during the third quarter of 2021. Net Loss was $1,886,244 for the three months ended September 30, 2021 compared to $2,131,131 for the three months ended September 30, 2020, representing a decrease of $244,887, or 11%. Third Quarter 2021 Highlights The company completed a successful NASDAQ listing that resulted in improved trading liquidity for its shareholders and completion of a public offering of its shares.Selected the first study site and principal investigator for conducting Phase II clinical trials of Vitargus® in Australia.Strengthened its intellectual property protections with the filing of two new PCT (Patent Cooperation Treaty) applications in connection with ABVC medicines that help to treat major depressive disorder (MDD) and Attention-Deficit Hyperactivity Disorder (ADHD).Restructured its joint venture agreement with BioLite Japan K.K., a drug discovery and research firm, which strengthened the company’s global abilities to identify early-stage opportunities in drug development, digital health, and medical device technology, especially in Japan. Dr. Howard Doong (M.D., Ph.D), Chief Executive Officer of ABVC BioPharma, commented, “ABVC is proud of its accomplishments since the start of the year, highlighted by clinical trial success that continued to demonstrate that botanically derived medicines are safe and effective.” Dr. Doong further noted, “Our successful public offering completed during the quarter and the subsequent exercise of our Series A warrants by many investors has provided sufficient cash to assure that we can meet our goals through mid-2023. And, we are particularly pleased that our up listing on to the Nasdaq exchange has resulted in materially improved liquidity of our stock coupled with a far wider investor base, including several prominent funds that specialize in the biotech sector. Heading into 2022, we continue to proceed down the right path with the development of our product pipeline.” 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 world. 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, LLC Lucy PengPhone: +1 646-677-1872Email: Lucy.Peng@icrinc.com ABVC BIOPHARMA, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS September 30, 2021 December 31, 2020 (Unaudited) ASSETS Current Assets Cash and cash equivalents $ 3,715,609 $ 4,273,208 Restricted cash and cash equivalents 734,163 728,163 Short-term Investment 111,320 – Accounts receivable, net 331,367 159,712 Accounts receivable – related parties, net 141,826 143,435 Due from related parties 561,085 696,255 Inventory, net 60,007 – Prepayment for long-term investments 639,738 – Prepaid expense and other current assets 815,916 172,193 Total Current Assets 7,111,031 6,172,966 Property and equipment, net 527,764 514,834 Operating lease right-of-use assets 1,554,280 1,772,747 Goodwill, net – – Long-term investments 1,006,533 1,190,727 Deferred tax assets 1,993,789 1,790,597 Prepaid expenses – noncurrent 120,320 119,315 Security deposits 41,099 45,519 Total Assets $ 12,354,816 $ 11,606,705 LIABILITIES AND EQUITY Current Liabilities Accounts payable $ 16,497 $ 23,044 Short-term bank loans 1,637,250 1,629,000 Short-term loan – 100,000 Notes payable – 106,800 Accrued expenses and other current liabilities 1,133,748 2,118,854 Advance from customers 10,985 12,070 Operating lease liabilities – current portion 342,131 316,178 Due to related parties 298,269 288,445 Convertible notes payable – related parties, current portion – 250,000 Total Current Liabilities 3,438,880 4,844,391 Paycheck Protection Program loan payable 104,167 124,400 Tenant security deposit 9,880 19,280 Operating lease liability – noncurrent portion 1,212,148 1,456,567 Convertible notes payable – noncurrent portion – 2,500,000 Total Liabilities 4,765,075 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, 27,935,783 and 24,420,526 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively 27,935 24,420 Additional paid-in capital 49,716,411 40,751,807 Stock subscription receivable (2,483,140 ) (3,160,360 ) Accumulated deficit (30,548,946 ) (25,642,387 ) Accumulated other comprehensive income 981,718 564,860 Treasury stock (9,100,000 ) (9,100,000 ) Total Stockholders’ Equity 8,593,978 3,438,340 Noncontrolling interest (1,004,237 ) (776,273 ) Total Equity 7,589,741 2,662,067 Total Liabilities and Equity $ 12,354,816 $ 11,606,705 ABVC BIOPHARMA, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS(UNAUDITED) Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Revenues $ 98,999 $ 115,553 $ 393,590 $ 420,852 Cost of revenues 393 8,619 2,284 16,814 Gross profit 98,606 106,934 391,306 404,038 Operating expenses Selling, general and administrative expenses 1,579,996 1,262,199 3,979,283 2,693,001 Research and development expenses 263,424 134,501 743,617 366,374 Stock-based compensation 225,740 – 927,220 999,820 Total operating expenses 2,069,160 1,396,700 5,650,120 4,059,195 Loss from operations (1,970,554 ) (1,289,766 ) (5,258,814 ) (3,655,157 ) Other income (expense) Interest income 9,333 19,571 72,584 39,641 Interest expense (38,677 ) (16,311 ) (251,577 ) (288,353 ) Rent income 2,624 4,774 60,822 15,254 Rent income – related parties 1,200 1,200 3,600 3,600 Impairment loss – (8,507 ) – (952,711 ) Investment loss – 665 – (38,272 ) Gain/Loss on foreign exchange changes (5,999 ) (90 ) (10,806 ) 8,569 Gain/Loss on investment in equity securities (91,765 ) (887,231 ) (193,147 ) (1,067,298 ) Other (expense) income (404 ) (171 ) (171 ) 176,330 Government grant income 132,331 – 256,731 – Total other expenses 8,643 (886,100 ) (61,964 ) (2,103,240 ) Loss before provision income tax (1,961,911 ) (2,175,866 ) (5,320,778 ) (5,758,397 ) Provision for income tax (75,667 ) (44,735 ) (186,255 ) (133,947 ) Net loss (1,886,244 ) (2,131,131 ) (5,134,523 ) (5,624,450 ) Net loss attributable to noncontrolling interests (79,756 ) (285,085 ) (227,964 ) (681,569 ) Net loss attributed to ABVC and subsidiaries (1,806,488 ) (1,846,046 ) (4,906,559 ) (4,942,881 ) Foreign currency translation adjustment 16,137 (25,384 ) 416,858 (42,403 ) Comprehensive loss $ (1,790,351 ) $ (1,871,430 ) $ (4,489,701 ) $ (4,985,284 ) Net loss per share: Basic and diluted $ (0.07 ) $ (0.09 ) $ (0.20 ) $ (0.25 ) Weighted average number of common shares outstanding: Basic and diluted 26,882,181 19,488,168 25,053,522 19,486,959 ABVC BIOPHARMA, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Nine Months Ended September 30, 2021 2020 Cash flows from operating activities Net loss $ (5,134,523 ) $ (5,624,450 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation 8,725 30,329 Stock based compensation for non employees 927,220 999,820 Gain/Loss on investment in equity securities 193,147 1,067,298 Government grant income (256,731 ) – Other non-cash income and expenses – (15,360 ) Investment loss – 990,982 Deferred tax (187,055 ) (136,797 ) Changes in operating assets and liabilities: Decrease (increase) in accounts receivable (171,655 ) 14,051 Decrease (increase) in prepaid expenses and deposits (647,219 ) 47,310 Decrease (increase) in due from related parties (45,784 ) 381,918 Increase (decrease) in accounts payable (6,547 ) (921 ) Increase (decrease) in inventory (59,673 ) – Increase (decrease) in notes payable – 22,806 Increase (decrease) in accrued expenses and other current liabilities (338,928 ) 429,051 Increase (decrease) in advance from others (1,085 ) 332 Increase (decrease) in due to related parties 178,570 (582,242 ) Net cash used in operating activities (5,541,538 ) (2,375,873 ) Cash flows from investing activities Sale of investments – 137,088 Loan to related parties – (469,627 ) Purchase of investments (110,700 ) – Purchases of property, plant and equipment (17,503 ) Prepayment for equity investment (636,174 ) – Net cash used in investing activities (764,377 ) (332,539 ) Cash flows from financing activities Proceeds from short-term loan – 100,000 Proceeds from short-term borrowing from third parties – 512,212 Proceeds from short-term borrowing from related parties – 72,433 Issuance of common stock 6,875,000 2,153,231 Payment for offering costs (850,429) Repayment of convertible notes (306,836 ) – Repayment of short-term loan (100,000 ) – Repayment of notes payable (107,100 ) – Proceeds from long-term loans 236,498 124,400 Repayment of long-term bank loans (4,396 ) (263,483 ) Net cash provided by financing activities 5,742,737 2,698,793 Effect of exchange rate changes on cash and cash equivalents and restricted cash 11,579 1,029 Net increase (decrease) in cash and cash equivalents and restricted cash (551,599 ) (8,590 ) Cash and cash equivalents and restricted cash Beginning 5,001,371 160,443 Ending $ 4,449,772 $ 151,853 Supplemental disclosure of cash flows Cash paid during the year for: Interest expense paid $ 327,642 $ 130,309 Income taxes paid $ – $ – Non-cash financing and investing activities Common shares issued for debt conversion $ 2,693,550 $1,446,780