Cellular Biomedicine (CBMG) 10-K 5 Mar 18 2017 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2017	Feb. 11, 2018	Jun. 30, 2017
Document And Entity Information
Entity Registrant Name	Cellular Biomedicine Group, Inc.
Entity Central Index Key	1,378,624
Document Type	10-K
Document Period End Date	Dec. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 92,318,196
Entity Common Stock, Shares Outstanding		17,003,968
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,017

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)		Dec. 31, 2017	Dec. 31, 2016
Assets
Cash and cash equivalents		$ 21,568,422	$ 39,252,432
Accounts receivable, less allowance for doubtful amounts of $10,789 and $10,163 as of December 31, 2017 and December 31, 2016, respectively		202,887	39,974
Other receivables		902,940	412,727
Prepaid expenses		1,852,695	986,951
Total current assets		24,526,944	40,692,084
Investments		269,424	509,424
Property, plant and equipment, net		12,973,342	4,117,739
Goodwill		7,678,789	7,678,789
Intangibles, net		12,419,692	14,092,581
Long-term prepaid expenses and other assets		3,294,105	1,537,850
Total assets (1)	[1]	61,162,296	68,628,467
Liabilities:
Accounts payable		225,287	216,154
Accrued expenses		1,097,327	1,168,787
Taxes payable		28,875	28,875
Other current liabilities		2,324,632	950,220
Total current liabilities		3,676,121	2,364,036
Other non-current liabilities		183,649	370,477
Total liabilities (1)	[1]	3,859,770	2,734,513
Commitments and Contingencies (note 13)
Stockholders' equity:
Preferred stock, par value $.001, 50,000,000 shares authorized; none issued and outstanding as of December 31, 2017 and 2016, respectively		0	0
Common stock, par value $.001, 300,000,000 shares authorized; 15,615,558 and 14,281,378 issued; and 15,188,764 and 14,281,378 outstanding, as of December 31, 2017 and 2016, respectively		15,616	14,281
Treasury stock at cost; 426,794 and nil shares of common stock as of December 31, 2017 and December 31, 2016, respectively		(3,977,929)	0
Additional paid in capital		172,691,339	152,543,052
Accumulated deficit		(111,036,997)	(85,546,687)
Accumulated other comprehensive loss		(389,503)	(1,116,692)
Total stockholders' equity		57,302,526	65,893,954
Total liabilities and stockholders' equity		$ 61,162,296	$ 68,628,467
[1]	The Company's consolidated assets as of December 31, 2017 and 2016 included $21,775,087 and $9,626,171, respectively, of assets of variable interest entities, or VIEs, that can only be used to settle obligations of the VIEs. Each of the following amounts represent the balances as of December 31, 2017 and 2016, respectively. These assets include cash and cash equivalents of $2,337,173 and $4,021,992; other receivables of $773,384 and $370,702; prepaid expenses of $1,750,509 and $777,445; property, plant and equipment, net, of $12,477,315 and $2,398,576; intangibles of $1,516,449 and $1,613,582; and long-term prepaid expenses and other assets of $2,920,257 and $443,874. The Company's consolidated liabilities as of December 31, 2017 and 2016 included $2,688,520 and $1,372,391, respectively, of liabilities of the VIEs whose creditors have no recourse to the Company. These liabilities include accounts payable of $181,231 and $161,825; other payables of $1,631,582 and $407,769; payroll accrual of $682,248 and $792,706;deferred income of $9,810 and nil;and other non-current liabilities of $183,649 and $10,091. See further description in Note 4, Variable Interest Entities.

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Allowance for doubtful amounts	$ 10,789	$ 10,163
Stockholders' equity:
Preferred stock par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, Authorized	300,000,000	300,000,000
Common stock, Issued	15,615,558	14,281,378
Common stock, outstanding	15,188,764	14,281,378
Treasury stock	426,794	0

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Consolidated Statements Of Operations And Comprehensive Loss
Net sales and revenue	$ 336,817	$ 627,930	$ 2,505,423
Operating expenses:
Cost of sales	162,218	860,417	1,880,331
General and administrative	12,780,483	11,670,506	13,068,255
Selling and marketing	360,766	425,040	709,151
Research and development	14,609,917	11,475,587	7,573,228
Impairment of investments	0	4,611,714	123,428
Total operating expenses	27,913,384	29,043,264	23,354,393
Operating loss	(27,576,567)	(28,415,334)	(20,848,970)
Other income:
Interest income	133,621	78,943	42,220
Other income	1,955,086	132,108	630,428
Total other income	2,088,707	211,051	672,648
Loss before taxes	(25,487,860)	(28,204,283)	(20,176,322)
Income taxes (expense) credit	(2,450)	(4,093)	728,601
Net loss	(25,490,310)	(28,208,376)	(19,447,721)
Other comprehensive income (loss):
Cumulative translation adjustment	967,189	(743,271)	(307,950)
Unrealized gain (loss) on investments, net of tax	(240,000)	5,300,633	(1,376,540)
Reclassification adjustments, net of tax, in connection with other-than-temporary impairment of investments	0	(5,557,939)	0
Total other comprehensive income (loss)	727,189	(1,000,577)	(1,684,490)
Comprehensive loss	$ (24,763,121)	$ (29,208,953)	$ (21,132,211)
Net loss per share :
Basic	$ (1.78)	$ (2.09)	$ (1.70)
Diluted	$ (1.78)	$ (2.09)	$ (1.70)
Weighted average common shares outstanding:
Basic	14,345,604	13,507,408	11,472,306
Diluted	14,345,604	13,507,408	11,472,306

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($)	Common Stock	Preferred Stock	Treasury Stock	Additional Paid In Capital	Accumulated Deficit	Accumulated Other Comprehensive Income(Loss)	Total
Beginning Balance, shares at Dec. 31, 2014	10,990,335	0	0
Beginning Balance, amount at Dec. 31, 2014	$ 10,990	$ 0	$ 0	$ 75,467,316	$ (37,890,590)	$ 1,568,375	$ 39,156,091
Common stock issued with PPM, shares	515,786
Common stock issued with PPM, amount	$ 516			18,584,338			18,584,854
Common stock issued for acquisition of intangible assets, shares	46,867
Common stock issued for acquisition of intangible assets, amount	$ 47			1,481,415			1,481,462
Restricted stock grants, shares	6,253
Restricted stock grants, amount	$ 6			410,314			410,320
Accrual of stock options				7,182,117			7,182,117
Exercise of stock options, shares	152,404
Exercise of stock options, amount	$ 152			682,151			$ 682,303
Treasury stock purchase, shares							0
Treasury stock purchase, amount							$ 0
Unrecognized loss on investments, net of tax						(1,376,540)	(1,376,540)
Reclassification adjustments, net of tax, in connection with other-than-temporary impairment of investments							0
Foreign currency translation						(307,950)	(307,950)
Net loss					(19,447,721)		(19,447,721)
Ending Balance, shares at Dec. 31, 2015	11,711,645	0	0
Ending Balance, amount at Dec. 31, 2015	$ 11,711	$ 0	$ 0	103,807,651	(57,338,311)	(116,115)	46,364,936
Common stock issued with PPM, shares	2,348,888
Common stock issued with PPM, amount	$ 2,349			42,397,525			42,399,874
Restricted stock grants, shares	24,660
Restricted stock grants, amount	$ 25			709,472			709,497
Accrual of stock options				4,742,920			4,742,920
Exercise of stock options, shares	196,185
Exercise of stock options, amount	$ 196			885,484			$ 885,680
Treasury stock purchase, shares							0
Treasury stock purchase, amount							$ 0
Unrecognized loss on investments, net of tax						5,300,633	5,300,633
Reclassification adjustments, net of tax, in connection with other-than-temporary impairment of investments						(5,557,939)	(5,557,939)
Foreign currency translation						(743,271)	(743,271)
Net loss					(28,208,376)		(28,208,376)
Ending Balance, shares at Dec. 31, 2016	14,281,378	0	0
Ending Balance, amount at Dec. 31, 2016	$ 14,281	$ 0	$ 0	152,543,052	(85,546,687)	(1,116,692)	65,893,954
Common stock issued with PPM, shares	1,208,334
Common stock issued with PPM, amount	$ 1,208			14,494,832			14,496,040
Restricted stock grants, shares	68,446
Restricted stock grants, amount	$ 69			832,950			833,019
Accrual of stock options				4,512,192			4,512,192
Exercise of stock options, shares	57,400
Exercise of stock options, amount	$ 58			308,313			$ 308,371
Treasury stock purchase, shares			(426,794)				426,794
Treasury stock purchase, amount			$ (3,977,929)				$ (3,977,929)
Unrecognized loss on investments, net of tax						(240,000)	(240,000)
Reclassification adjustments, net of tax, in connection with other-than-temporary impairment of investments							0
Foreign currency translation						967,189	967,189
Net loss					(25,490,310)		(25,490,310)
Ending Balance, shares at Dec. 31, 2017	15,615,558	0	(426,794)
Ending Balance, amount at Dec. 31, 2017	$ 15,616	$ 0	$ (3,977,929)	$ (3,977,929)	$ 172,691,339	$ (111,036,997)	$ 57,302,526

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (25,490,310)	$ (28,208,376)	$ (19,447,721)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	2,985,963	2,635,001	2,094,644
Loss on disposal of assets	317	2,156	1,444
Stock based compensation expense	5,345,211	5,452,417	7,592,438
Other than temporary impairment on investments	0	4,611,714	123,428
Realized losses from sale of investments	0	0	5,178
(Reversal) of inventory provision	0	(115,391)	123,848
Allowance for doubtful account	0	10,163	0
Decrease in fair value of accrued expenses for the acquisition of intangible assets	0	0	(345,882)
Changes in operating assets and liabilities:
Accounts receivable	(160,628)	537,155	(497,937)
Other receivables	(467,985)	(156,672)	(143,711)
Inventory	0	514,734	(142,486)
Prepaid expenses	(812,675)	(669,598)	181,679
Taxes recoverable	0	150,082	(150,082)
Other current assets	0	0	110,347
Long-term prepaid expenses and other assets	(1,005,029)	(643,673)	(384,432)
Accounts payable	(814)	(28,205)	(166,032)
Accrued expenses	(118,968)	356,420	396,557
Advance payable to related party	0	0	(30,216)
Other current liabilities	1,339,866	(640,573)	113,919
Taxes payable	0	28,875	(814,288)
Other non-current liabilities	(208,340)	296,036	(371,793)
Net cash used in operating activities	(18,593,392)	(15,867,735)	(11,751,098)
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of business, net of cash acquired	0	0	(1,568,627)
Proceed from sale of investments, net of transaction costs	0	0	1,480
Purchases of intangible assets	(23,734)	(56,519)	(4,260,420)
Purchases of property, plant and equipment	(10,169,134)	(2,676,888)	(1,874,538)
Net cash used in investing activities	(10,192,868)	(2,733,407)	(7,702,105)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from the issuance of common stock	14,496,040	42,399,874	18,964,849
Proceeds from exercise of stock options	308,371	885,680	682,303
Repurchase of treasury stock	(3,977,929)	0	0
Net cash provided by financing activities	10,826,482	43,285,554	19,647,152
EFFECT OF EXCHANGE RATE CHANGES ON CASH	275,768	(316,577)	(79,936)
INCREASE IN CASH AND CASH EQUIVALENTS	(17,684,010)	24,367,835	114,013
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	39,252,432	14,884,597	14,770,584
CASH AND CASH EQUIVALENTS, END OF PERIOD	21,568,422	39,252,432	14,884,597
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for income taxes	2,450	6,705	108,075
Non-cash investing activities
Acquisition of intangible assets through issuance of the Company's stock	$ 0	$ 0	$ 1,481,462

1. DESCRIPTION OF BUSINESS

1. DESCRIPTION OF BUSINESS	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
1. DESCRIPTION OF BUSINESS	As used in this report, "we", "us", "our", "CBMG", "Company" or "our company" refers to Cellular Biomedicine Group, Inc. and, unless the context otherwise requires, all of its subsidiaries. Overview Cellular Biomedicine Group, Inc. is a clinical stage biopharmaceutical company, principally engaged in the development of therapies for cancer and degenerative diseases utilizing proprietary cell-based technologies. Our technology includes two major platforms: (i) Immune cell therapy for treatment of a broad range of cancer indications comprised of technologies in Chimeric Antigen Receptor modified T cells (CAR-T), T-Cell Receptor (TCR), cancer vaccine, and ex vivo expanded autologous Central Memory T Cells (Tcm), and (ii) human adipose-derived mesenchymal progenitor cells (haMPC) for treatment of joint and autoimmune diseases. CBMG’s Research & Development are based in China and the U.S., and its manufacturing facilities are based in China in the cities of Shanghai, Wuxi, and Beijing. We are focused on developing and marketing safe and effective cell-based therapies based on our cellular platforms, to treat cancer, orthopedic diseases and metabolic diseases. We have developed proprietary technologies and know-hows in our cell therapy platforms. We are conducting clinical studies in China with our stem cell based therapies to treat knee osteoarthritis (“KOA”). We have completed a Phase IIb autologous haMPC KOA clinical study and published its promising results. Led by Shanghai Renji Hospital, one of the largest teaching hospitals in China, we have also completed a Phase I clinical trial of our off-the-shelf allogeneic haMPC (AlloJoinTM) therapy for treating KOA patients. In addition, we have received an award of $2.29 million grant from California Institute of Regenerative Medicine’s (CIRM) and we have started manufacturing AlloJoinTM product in California to support preclinical and clinical studies in the United States for the KOA indication. Our primary target market is Greater China. We believe that our cell-based therapies will be able to help patients with high unmet medical needs. We expect to carry out clinical studies leading to the eventual CFDA approval of our products through Biologics License Application (BLA) filings and authorized clinical centers throughout Greater China. We have launched multiple clinical trials using our CAR-T products in multiple indications such as DLBCL & ALL. We may also establish partnerships with other companies for co-development in CAR-T, TCR-T and stem cell based therapies. We are striving to build a highly competitive research and development function, a translational medicine unit, along with a well-established cellular manufacturing capability and ample capacity, to support the development of multiple assets in multiple indications. These efforts will allow us to boost the Company's Immuno-Oncology presence and pave the way for additional future partnerships. Corporate History Cellular Biomedicine Group, Inc., (formerly known as EastBridge Investment Group Corporation) was originally incorporated in the State of Arizona on June 25, 2001 under the name ATC Technology Corporation. ATC Technology Corporation changed its corporate name to EastBridge Investment Group Corporation in September 2005 and changed its business focus to providing investment related services in Asia. On November 13, 2012, EastBridge Investment Group Corporation, an Arizona corporation (“EastBridge”), CBMG Acquisition Limited, a British Virgin Islands company and the Company’s wholly-owned subsidiary (“Merger Sub”) and Cellular Biomedicine Group Ltd. (“CBMG BVI”), a British Virgin Islands company, entered into a Merger Agreement, pursuant to which CBMG BVI was the surviving entity in a merger with Merger Sub whereby CBMG BVI became a wholly-owned subsidiary of the Company (the “Merger”). The Merger was consummated on February 6, 2013 (the “Closing Date”). Also in connection with the Merger, the Company created a new Delaware subsidiary named EastBridge Investment Corp. (“EastBridge Sub”). Pursuant to a Contribution Agreement by and between the Company and EastBridge Sub dated February 5, 2013, the Company contributed all of its then current assets and liabilities to EastBridge Sub which continued the business and operations of the Company at the subsidiary level. A copy of the Contribution Agreement is attached as Exhibit 10.1 to the Current Report on Form 8-K filed by the Company on February 12, 2013. As a result of the Merger, CBMG BVI and EastBridge Sub became the two direct subsidiaries of the Company. In connection with the Merger, effective March 5, 2013, the Company (formerly named “EastBridge Investment Group Corporation”) changed its name to “Cellular Biomedicine Group, Inc.” In addition in March 2013, the Company changed its corporate headquarters to 530 University Avenue in Palo Alto, California. From February 6, 2013 to June 23, 2014, we operated the Company in two separate reportable segments: (i) Biomedicine Cell Therapy (“Biomedicine”); and (ii) Financial Consulting (“Consulting”). The Consulting segment was conducted through EastBridge Sub. On June 23, 2014, the Company announced the discontinuation of the Consulting segment as it no longer fit into management’s long-term strategy and vision. The Company is now focusing resources on becoming a biotechnology company bringing therapies to improve the health of patients in China. On September 26, 2014, the Company completed its acquisition of Beijing Agreen Biotechnology Co. Ltd. ("AG") and the U.S. patent held by AG’s founder. AG is a biotech company with operations in China, engaged in the development of treatments for cancerous diseases utilizing proprietary cell technologies. At the end of September, 2015, the Company moved its corporate headquarters to 19925 Stevens Creek Blvd., Suite 100 in Cupertino, California. The Company is a biopharmaceutical company focused on developing therapies to improve the health of patients in China.

2. BASIS OF PRESENTATION

2. BASIS OF PRESENTATION	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
2. BASIS OF PRESENTATION	The consolidated financial statements include the financial statements of the Company and all of its subsidiaries and variable interest entities. All significant inter-company transactions and balances are eliminated upon consolidation. The consolidated financial statements have been prepared in accordance with the accounting principles generally accepted in the United States of America (“GAAP”).

3. SUMMARY OF SIGNIFICANT ACCOU

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Significant accounting policies are as follows: Principles of Consolidation The consolidated financial statements have been prepared in conformity with GAAP, and reflect the accounts and operations of the Company and its subsidiaries, beginning with the date of their respective acquisition. In accordance with the provisions of Financial Accounting Standards Board (“FASB”), Accounting Standards Codification (“ASC”) Topic 810, or ASC 810, Consolidation Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. These estimates and assumptions also affect the reported amounts of revenues, costs and expenses during the reporting period. Management evaluates these estimates and assumptions on a regular basis. Significant accounting estimates reflected in the Company’s consolidated financial statements include inventory valuation, account receivable valuation, useful lives of property, plant and equipment and acquired intangibles, the valuation allowance for deferred income tax assets, valuation of goodwill, valuation of long-lived assets and share-based compensation expense. Actual results could materially differ from those estimates. Revenue Recognition The Company utilizes the guidance set forth in the FASB’s ASC Topic 605, Revenue Recognition Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. At December 31, 2017 and 2016, respectively, cash and cash equivalents include cash on hand and cash in the bank. At times, cash deposits may exceed government-insured limits. Accounts Receivable Accounts receivable represent amounts earned but not collected in connection with the Company’s sales of goods or services as of December 31, 2017 and 2016. Account receivables are carried at their estimated collectible amounts. The Company follows the allowance method of recognizing uncollectible accounts receivable. The Company recognizes bad debt expense based on specifically identified customers and invoices that are anticipated to be uncollectable. At December 31, 2017 and 2016, allowance of $10,789 and $10,163 was provided for debtors of certain customers as those debts are unrecoverable from customers, respectively. Property, Plant and Equipment Property, plant and equipment are recorded at cost. Depreciation is provided for on the straight-line method over the estimated useful lives of the assets ranging from three to ten years and begins when the related assets are placed in service. Maintenance and repairs that neither materially add to the value of the property nor appreciably prolong its life are charged to expense as incurred. Betterments or renewals are capitalized when incurred. Plant, property and equipment are reviewed each year to determine whether any events or circumstances indicate that the carrying amount of the assets may not be recoverable. We assess the recoverability of the asset by comparing the projected undiscounted net cash flows associated with the related assets over the estimated remaining life against the respective carrying value. For the years ended December 31, 2017, 2016 and 2015, depreciation expense was $1,195,705, $850,793 and $573,015, respectively. Goodwill and Other Intangibles Goodwill represents the excess of the cost of assets acquired over the fair value of the net assets at the date of acquisition. Intangible assets represent the fair value of separately recognizable intangible assets acquired in connection with the Company’s business combinations. The Company evaluates its goodwill and other intangibles for impairment on an annual basis or whenever events or circumstances indicate that impairment may have occurred. The carrying amount of the goodwill at December 31, 2017 and 2016 represents the cost arising from the business combinations in previous years and no impairment on goodwill was recognized for the years ended December 31, 2017 and 2016. Treasury Stock The treasury stock is recorded and carried at their repurchase cost. The Company recorded the entire purchase price of the treasury stock as a reduction of equity. A gain or loss will be determined when treasury stock is reissued or retired, and the original issue price and book value of the stock do not enter into the accounting. Additional paid-in capital from treasury stock is credited for gains and debited for losses when treasury stock is reissued at prices that differ from the repurchase cost. Government Grants Government grants are recognized in the balance sheet initially when there is reasonable assurance that they will be received and that the enterprise will comply with the conditions attached to them. When the Company received the government grants but the conditions attached to the grants have not been fulfilled, such government grants are deferred and recorded as deferred income. The classification of short-term or long-term liabilities is depended on the management’s expectation of when the conditions attached to the grant can be fulfilled. Grants that compensate the Company for expenses incurred are recognized as other income in statement of income on a systematic basis in the same periods in which the expenses are incurred. For the year ended December 31, 2017 and 2016, the Company received government grants of $1,905,213 and $422,839 for purpose of R&D and related capital expenditure, respectively. Government subsidies recognized as other income in the statement of income for the year ended December 31, 2017 and 2016 were $2,077,486 and $78,542, respectively. Valuation of long-lived asset The Company reviews the carrying value of long-lived assets to be held and used, including other intangible assets subject to amortization, when events and circumstances warrants such a review. The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flow from such asset is separately identifiable and is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair market value of the long-lived asset and intangible assets. Fair market value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Losses on long-lived assets and intangible assets to be disposed are determined in a similar manner, except that fair market values are reduced for the cost to dispose. Income Taxes Income taxes are accounted for using the asset and liability method. Under this method, deferred income tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which these temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance would be provided for those deferred tax assets if it is more likely than not that the related benefit will not be realized. A full valuation allowance has been established against all net deferred tax assets as of December 31, 2017 and 2016 based on estimates of recoverability. While the Company has optimistic plans for its business strategy, we determined that such a valuation allowance was necessary given the current and expected near term losses and the uncertainty with respect to the Company’s ability to generate sufficient profits from its business model. Share-Based Compensation The Company periodically uses stock-based awards, consisting of shares of common stock and stock options, to compensate certain officers and consultants. Shares are expensed on a straight line basis over the requisite service period based on the grant date fair value, net of estimated forfeitures, if any. We currently use the Black-Scholes option-pricing model to estimate the fair value of our stock-based payment awards. This model requires the input of highly subjective assumptions, including the fair value of the underlying common stock, the expected volatility of the price of our common stock, risk-free interest rates, the expected term of the option and the expected dividend yield of our common stock. These estimates involve inherent uncertainties and the application of management’s judgment. If factors change and different assumptions are used, our stock-based compensation expense could be materially different in the future. These assumptions are estimated as follows: ● Fair Value of Our Common Stock — Our common stock is valued by reference to the publicly-traded price of our common stock. ● Expected Volatility — Prior to the Eastbridge merger, we did not have a history of market prices for our common stock and since the merger, we do not have what we consider a sufficiently active and readily traded market for our common stock to use historical market prices for our common stock to estimate volatility. Accordingly, we estimate the expected stock price volatility for our common stock by taking the median historical stock price volatility for industry peers based on daily price observations over a period equivalent to the expected term of the stock option grants. Industry peers consist of other public companies in the stem cell industry similar in size, stage of life cycle and financial leverage. We intend to continue to consistently apply this process using the same or similar public companies until a sufficient amount of historical information regarding the volatility of our own common stock share price becomes available. ● Risk-Free Interest Rate — The risk-free interest rate assumption is based on observed interest rates appropriate for the expected terms of our awards. The risk-free interest rate assumption is based on the yields of U.S. Treasury securities with maturities similar to the expected term of the options for each option group. ● Expected Term — The expected term represents the period that our stock-based awards are expected to be outstanding. The expected terms of the awards are based on a simplified method which defines the life as the average of the contractual term of the options and the weighted-average vesting period for all open tranches. ● Expected Dividend Yield — We have never declared or paid any cash dividends and do not presently plan to pay cash dividends in the foreseeable future. Consequently, we used an expected dividend yield of zero. In addition to the assumptions used in the Black-Scholes option-pricing model, the amount of stock option expense we recognize in our consolidated statements of operations includes an estimate of stock option forfeitures. We estimate our forfeiture rate based on an analysis of our actual forfeitures and will continue to evaluate the appropriateness of the forfeiture rate based on actual forfeiture experience, analysis of employee turnover and other factors. Changes in the estimated forfeiture rate can have a significant impact on our stock-based compensation expense as the cumulative effect of adjusting the rate is recognized in the period the forfeiture estimate is changed. If a revised forfeiture rate is higher than the previously estimated forfeiture rate, an adjustment is made that will result in a decrease to the stock-based compensation expense recognized in the consolidated financial statements. If a revised forfeiture rate is lower than the previously estimated forfeiture rate, an adjustment is made that will result in an increase to the stock-based compensation expense recognized in our consolidated financial statements. Fair Value of Financial Instruments Under the FASB’s authoritative guidance on fair value measurements, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining the fair value, the Company uses various methods including market, income and cost approaches. Based on these approaches, the Company often utilizes certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable inputs. The Company uses valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Based on observability of the inputs used in the valuation techniques, the Company is required to provide the following information according to the fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: Level 1: Valuations for assets and liabilities traded in active exchange markets. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2: Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third party pricing services for identical or similar assets or liabilities. Level 3: Valuations for assets and liabilities that are derived from other valuation methodologies, including option pricing models, discounted cash flow models and similar techniques, and not based on market exchange, dealer or broker traded transactions. Level 3 valuations incorporate certain unobservable assumptions and projections in determining the fair value assigned to such assets. All transfers between fair value hierarchy levels are recognized by the Company at the end of each reporting period. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. The inputs or methodology used for valuing financial instruments are not necessarily an indication of the risks associated with investment in those instruments. The carrying amounts of other financial instruments, including cash, accounts receivable, accounts payable and accrued liabilities, income tax payable and related party payable approximate fair value due to their short maturities. Investments The fair value of “investments” is dependent on the type of investment, whether it is marketable or non-marketable. Marketable securities held by the Company are held for an indefinite period of time and thus are classified as available-for-sale securities. The fair value is based on quoted market prices for the investment as of the balance sheet date. Realized investment gains and losses are included in the statement of operations, as are provisions for other than temporary declines in the market value of available for-sale securities. Unrealized gains and unrealized losses deemed to be temporary are excluded from earnings (losses), net of applicable taxes, as a component of other comprehensive income (loss). Factors considered in judging whether an impairment is other than temporary include the financial condition, business prospects and creditworthiness of the issuer, the length of time that fair value has been less than cost, the relative amount of decline, and the Company’s ability and intent to hold the investment until the fair value recovers. Basic and Diluted Net Loss Per Share Diluted net loss per share reflects potential dilution from the exercise or conversion of securities into common stock. The dilutive effect of the Company's share-based awards is computed using the treasury stock method, which assumes that all share-based awards are exercised and the hypothetical proceeds from exercise are used to purchase common stock at the average market price during the period. Share-based awards whose effects are anti-dilutive are excluded from computing diluted net loss per share. Foreign Currency Translation The Company's financial statements are presented in U.S. dollars ($), which is the Company’s reporting currency, while some of the Company’s subsidiaries’ functional currency is Chinese Renminbi (RMB). Transactions in foreign currencies are initially recorded at the functional currency rate ruling at the date of transaction. Any differences between the initially recorded amount and the settlement amount are recorded as a gain or loss on foreign currency transaction in the consolidated statements of operations. Monetary assets and liabilities denominated in foreign currency are translated at the functional currency rate of exchange ruling at the balance sheet date. Any differences are recorded as an unrealized gain or loss on foreign currency translation in the statements of operations and comprehensive loss. In accordance with ASC 830, Foreign Currency Matters, the Company translates the assets and liabilities into USD from RMB using the rate of exchange prevailing at the applicable balance sheet date and the statements of income and cash flows are translated at an average rate during the reporting period. Adjustments resulting from the translation are recorded in shareholders' equity as part of accumulated other comprehensive income. The PRC government imposes significant exchange restrictions on fund transfers out of the PRC that are not related to business operations. Comprehensive Loss We apply ASC No. 220, Comprehensive Income Segment Information FASB ASC Topic 280, “Segment Reporting” establishes standards for reporting information about reportable segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision-making group in deciding how to allocate resources and in assessing performance. Following the discontinuance of our consulting business, we operate in a single reportable segment. Recent Accounting Pronouncements Accounting pronouncements adopted during the year ended December 31, 2017 In April 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, “Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” Accounting pronouncements not yet effective In February 2018, the FASB issued ASU No. 2018-02, “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” In July 2017, the FASB issued ASU No. 2017-11, “Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Non-controlling Interests with a Scope Exception” In May 2017, the FASB issued ASU No. 2017-09, “Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting” In February 2017, the FASB issued ASU No. 2017-05, “Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets” In January 2017, the FASB issued ASU No. 2017-04, “Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” In November 2016, the FASB issued ASU No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash” In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date” “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing” “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients” “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers” Revenue from Contracts with Customers

4. VARIABLE INTEREST ENTITY

4. VARIABLE INTEREST ENTITY	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
4. VARIABLE INTEREST ENTITY	VIEs are those entities in which a company, through contractual arrangements, bears the risk of, and enjoys the rewards normally associated with ownership of the entity, and therefore the Company is the primary beneficiary of the entity. Cellular Biomedicine Group Ltd (Shanghai) (“CBMG Shanghai”) and its subsidiaries are variable interest entities (VIEs), through which the Company conducts stem cell and immune therapy research and clinical trials in China. The registered shareholders of CBMG Shanghai are Lu Junfeng and Chen Mingzhe, who together own 100% of the equity interests in CBMG Shanghai. The initial capitalization and operating expenses of CBMG Shanghai are funded by our wholly foreign-owned enterprise (“WFOE”), Cellular Biomedicine Group Ltd. (Wuxi) (“CBMG Wuxi”). The registered capital of CBMG Shanghai is ten million RMB and was incorporated on October 19, 2011. AG was 100% acquired by CBMG Shanghai in September 2014. The registered capital of AG is five million RMB and was incorporated on April 27, 2011. In 2017, CBMG Shanghai established two subsidiaries in Wuxi and Shanghai. For the year ended December 31, 2017, 2016 and 2015, 3%, 78% and 80% of the Company revenue is derived from VIEs respectively. In February 2012, CBMG Wuxi provided financing to CBMG Shanghai in the amount of $1,587,075 for working capital purposes. In conjunction with the provided financing, exclusive option agreements were executed granting CBMG Wuxi the irrevocable and exclusive right to convert the unpaid portion of the provided financing into equity interest of CBMG Shanghai at CBMG Wuxi’s sole and absolute discretion. CBMG Wuxi and CBMG Shanghai additionally executed a business cooperation agreement whereby CBMG Wuxi is to provide CBMG Shanghai with technical and business support, consulting services, and other commercial services. The shareholders of CBMG Shanghai pledged their equity interest in CBMG Shanghai as collateral in the event CBMG Shanghai does not perform its obligations under the business cooperation agreement. The Company has determined it is the primary beneficiary of CBMG Shanghai by reference to the power and benefits criterion under ASC Topic 810, Consolidation. This determination was reached after considering the financing provided by CBMG Wuxi to CBMG Shanghai is convertible into equity interest of CBMG Shanghai and the business cooperation agreement grants the Company and its officers the power to manage and make decisions that affect the operation of CBMG Shanghai. There are substantial uncertainties regarding the interpretation, application and enforcement of PRC laws and regulations, including but not limited to the laws and regulations governing our business or the enforcement and performance of our contractual arrangements. See Risk Factors below regarding “Risks Related to Our Structure”. The Company has not provided any guarantees related to VIEs and no creditors of VIEs have recourse to the general credit of the Company. As the primary beneficiary of CBMG Shanghai and its subsidiaries, the Company consolidates in its financial statements the financial position, results of operations, and cash flows of CBMG Shanghai and its subsidiaries, and all intercompany balances and transactions between the Company and CBMG Shanghai and its subsidiaries are eliminated in the consolidated financial statements. The Company has aggregated the financial information of CBMG Shanghai and its subsidiaries in the table below. The aggregate carrying value of assets and liabilities of CBMG Shanghai and its subsidiaries (after elimination of intercompany transactions and balances) in the Company’s consolidated balance sheets as of December 31, 2017 and 2016 are as follows: December 31, December 31, 2017 2016 Assets Cash $ 2,337,173 $ 4,021,992 Other receivables 773,384 370,702 Prepaid expenses 1,750,509 777,445 Total current assets 4,861,066 5,170,139 Property, plant and equipment, net 12,477,315 2,398,576 Intangibles 1,516,449 1,613,582 Long-term prepaid expenses and other assets 2,920,257 443,874 Total assets $ 21,775,087 $ 9,626,171 Liabilities Accounts payable $ 181,231 $ 161,825 Other payables 1,631,582 407,769 Payroll accrual 682,248 792,706 Deferred income 9,810 - Total current liabilities $ 2,504,871 $ 1,362,300 Other non-current liabilities 183,649 10,091 Total liabilities $ 2,688,520 $ 1,372,391

5. OTHER RECEIVABLES

5. OTHER RECEIVABLES	12 Months Ended
	Dec. 31, 2017
Other Receivables
5. OTHER RECEIVABLES	The Company pays deposits on various items relating to office expenses. Management has classified these deposits as receivables as the intention is to recover these deposits in less than 12 months. As of December 31, 2017 and 2016 the amounts of other receivables was $902,940 and $412,727, respectively.

6. PROPERTY, PLANT AND EQUIPMEN

6. PROPERTY, PLANT AND EQUIPMENT	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
6. PROPERTY, PLANT AND EQUIPMENT	As of December 31, 2017 and 2016, property, plant and equipment, carried at cost, consisted of the following: December 31, 2017 December 31, 2016 Office equipment $ 105,114 $ 80,485 Manufacturing equipment 4,781,936 3,347,458 Computer equipment 233,539 162,769 Leasehold improvements 4,196,589 1,912,573 Construction in progress 7,498,272 1,172,433 16,815,450 6,675,718 Less: accumulated depreciation (3,842,108 ) (2,557,979 ) $ 12,973,342 $ 4,117,739 Depreciation expense for the years ended December 31, 2017, 2016 and 2015 was $1,195,705, $850,793 and $573,015, respectively.

7. INVESTMENTS

7. INVESTMENTS	12 Months Ended
	Dec. 31, 2017
Schedule of Investments [Abstract]
7. INVESTMENTS	The Company’s investments represent the investment in equity securities listed in Over-The-Counter (“OTC”) markets of the United States of America: December 31, 2017 Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses more than 12 months Gross Unrealized Losses less than 12 months Market or Fair Value Equity position in Alpha Lujo, Inc. $ 251,388 $ - $ (221,964 ) $ - $ 29,424 Equity position in Arem Pacific Corporation 480,000 - - (240,000 ) 240,000 Total $ 731,388 $ - $ (221,964 ) $ (240,000 ) $ 269,424 December 31, 2016 Adjusted Cost Gross Unrealized Gains Gross Gross Unrealized Losses less than 12 months Market or Fair Value Equity position in Alpha Lujo, Inc. $ 251,388 $ - $ - $ (221,964 ) $ 29,424 Equity position in Arem Pacific Corporation 480,000 - - - 480,000 Total $ 731,388 $ - $ - $ (221,964 ) $ 509,424 There were no sale of investments for the year ended December 31, 2017 and 2016. Net proceeds from sale of investments for the year ended December 31, 2015 was $1,480. Net realized losses from sale of investments for the year ended December 31, 2017, 2016 and 2015 was $nil, $nil and $5,178, respectively. The unrealized holding gain (loss) for the investments, net of tax that were recognized in other comprehensive income for the year ended December 31, 2017 was other comprehensive loss of $(240,000), as compared to $5,300,633 and $(1,376,540) for the year ended December 31, 2016 and 2015, respectively. Reclassification adjustment of $5,557,939 in connection with other-than-temporary impairment of investments was recorded in other comprehensive income for the year ended December 31, 2016. No adjustment was recorded in other comprehensive income for the year ended December 31, 2017 and 2015. The Company tracks each investment with an unrealized loss and evaluates them on an individual basis for other-than-temporary impairments, including obtaining corroborating opinions from third party sources, performing trend analysis and reviewing management’s future plans. When investments have declines determined by management to be other-than-temporary the Company recognizes write downs through earnings. Other-than-temporary impairment of investments for the year ended December 31, 2017 was $nil, as compared with $4,611,714 and $123,428 for the year ended December 31, 2016 and 2015, respectively.

8. FAIR VALUE ACCOUNTING

8. FAIR VALUE ACCOUNTING	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
8. FAIR VALUE ACCOUNTING	The Company has adopted ASC Topic 820, Fair Value Measurement and Disclosure, which defines fair value, establishes a framework for measuring fair value in GAAP, and expands disclosures about fair value measurements. It does not require any new fair value measurements, but provides guidance on how to measure fair value by providing a fair value hierarchy used to classify the source of the information. It establishes a three-level valuation hierarchy of valuation techniques based on observable and unobservable inputs, which may be used to measure fair value and include the following: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Classification within the hierarchy is determined based on the lowest level of input that is significant to the fair value measurement. The carrying value of financial items of the Company including cash and cash equivalents, accounts receivable, other receivables, accounts payable and accrued liabilities, approximate their fair values due to their short-term nature and are classified within Level 1 of the fair value hierarchy. The Company’s investments are classified within Level 2 of the fair value hierarchy because of the insufficient volatility of the three stocks traded in OTC market. The Company did not have any Level 3 financial instruments as of December 31, 2017 and 2016. Assets measured at fair value within Level 2 on a recurring basis as of December 31, 2017 and 2016 are summarized as follows: As of December 31, 2017 Fair Value Measurements at Reporting Date Using: Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) Assets: Equity position in Alpha Lujo, Inc. $ 29,424 $ - $ 29,424 $ - Equity position in Arem Pacific Corporation 240,000 - 240,000 - $ 269,424 $ - $ 269,424 $ - As of December 31, 2016 Fair Value Measurements at Reporting Date Using: Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) Assets: Equity position in Alpha Lujo, Inc. $ 29,424 $ - $ 29,424 $ - Equity position in Arem Pacific Corporation 480,000 - 480,000 - $ 509,424 $ - $ 509,424 $ - No shares were acquired during the year ended December 31, 2017 and 2016. As of December 31, 2017 and 2016, the Company holds 8,000,000 shares in Arem Pacific Corporation, 2,942,350 shares in Alpha Lujo, Inc. and 2,057,131 shares in Wonder International Education and Investment Group Corporation. All available-for-sale investments held by the Company at December 31, 2017 and 2016 have been valued based on level 2 inputs due to the limited trading of all three of these companies.

9. INTANGIBLE ASSETS

9. INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
9. INTANGIBLE ASSETS	Intangible assets that are subject to amortization are reviewed for potential impairment whenever events or circumstances indicate that carrying amounts may not be recoverable. Assets not subject to amortization are tested for impairment at least annually. The Company evaluates the continuing value of the intangibles at each balance sheet date and records write-downs if the continuing value has become impaired. An impairment is determined to exist if the anticipated undiscounted future cash flow attributable to the asset is less than its carrying value. The asset is then reduced to the net present value of the anticipated future cash flow. As of December 31, 2017 and 2016, intangible assets, consisted of the following: Patents & knowhow & license December 31, 2017 December 31, 2016 Cost basis $ 17,674,431 $ 17,560,496 Less: accumulated amortization (5,325,113 ) (3,539,617 ) $ 12,349,318 $ 14,020,879 Software December 31, 2017 December 31, 2016 Cost basis $ 158,273 $ 125,964 Less: accumulated amortization (87,899 ) (54,262 ) $ 70,374 $ 71,702 Total intangibles, net $ 12,419,692 $ 14,092,581 All software is provided by a third party vendor, is not internally developed, and has an estimated useful life of 5 years. Patents, knowhow and license are amortized using an estimated useful life of five to ten years. Amortization expense for the years ended December 31, 2017, 2016 and 2015 was $1,790,258, $1,784,208 and $1,521,629, respectively. Estimated amortization expense for each of the ensuing years are as follows for the years ending December 31: Years ending December 31, Amount 2018 $ 1,788,814 2019 1,787,586 2020 1,784,335 2021 1,778,866 2022 and thereafter 5,280,091 $ 12,419,692

10. LEASES

10. LEASES	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
10. LEASES	The Company leases facilities under non-cancellable operating lease agreements. These facilities are located in the United States, Hong Kong and China. The Company recognizes rental expense on a straight-line basis over the life of the lease period. Rent expense under operating leases for the year ended December 31, 2017, 2016 and 2015 was approximately $4,345,893, $1,043,968 and $1,043,833, respectively. As of December 31, 2017, the Company has the following future minimum lease payments due under the foregoing lease agreements: Years ending December 31, Amount 2018 $ 3,062,842 2019 2,822,735 2020 2,627,027 2021 2,547,990 2022 and thereafter 12,623,886 $ 23,684,480

11. RELATED PARTY TRANSACTIONS

11. RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
11. RELATED PARTY TRANSACTIONS	As of December 31, 2017 and 2016, accrued expenses included director fees of $25,882 and $3,082 due to independent director Mr. Gang Ji. On December 15, 2017, the Company entered into a Share Purchase Agreement with three of its executive officers, pursuant to which the Company agreed to sell, and the three executive officers agreed to purchase an aggregate of 41,667 shares of the Company’s common stock, par value $0.001 per share at $12.00 per share, for total gross proceeds of approximately $500,000. The transaction closed on December 22, 2017. The Company advanced petty cash to officers for business travel purpose. As of December 31, 2017 and 2016, other receivables due from officers for business travel purpose was $8,531 and $nil, respectively.

12. EQUITY

12. EQUITY	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
12. EQUITY	ASC Topic 505, “Equity”, paragraph 505-50-30-6 establishes that share-based payment transactions with nonemployees shall be measured at the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. In March 2015, the Company closed a financing transaction pursuant to which it sold 515,786 shares of the Company’s common stock to selected investors at $38 per share, for total gross proceeds of approximately $19,600,000. The shares were sold pursuant to separate subscription agreements between the Company and each investor. The Company incurred a finder fee of $979,992, equal to 5% of the gross proceeds from the investors that were introduced by such finders, which was recorded as reduction in equity. On June 26, 2015, the Company completed its acquisition of the certain license rights to technology and know-how from Blackbird BioFinance, LLC (“Blackbird”) and entered into an assignment and assumption agreement to acquire all of Blackbird’s right, title and interest in and to the exclusive worldwide license to a CD40LGVAX vaccine from the University of South Florida. According to the asset purchase agreement, $1,050,500 in restricted common stock (based on the 20-day volume-weighted average price of the Company’s stock on the closing date) will be delivered to Blackbird at closing, thus 28,120 shares of Company common stock were issued as part of the consideration of this transaction. In addition, 18,747 shares of Company common stock (equal to $700,000 based on the 20-day volume-weighted average price of the Company’s stock on the closing date) would be delivered to Blackbird on the 6 month anniversary of the closing date upon satisfaction of certain conditions according to the agreements. Above shares were issued in November 2015. On February 4, 2016, the Company conducted an initial closing of a financing transaction (the “Financing”), pursuant to which it sold an aggregate of 263,158 shares of the Company’s common stock, par value $0.001 per share to Wuhan Dangdai Science & Technology Industries Group Inc. (the “Investor”) at $19.00 per share, for total gross proceeds of approximately $5,000,000. The Investor agreed to purchase, in one or more subsequent closings, up to an additional 2,006,842 shares on or before April 15, 2016, for a potential aggregate additional raise of $38,130,000. The Company had received the proceeds of $5,000,000 on February 4, 2016. On April 15, 2016, the Company completed the second and final closing of the Financing with the Investor, pursuant to which the Company sold to the Investor 2,006,842 shares of the Company’s Common Stock, for approximately $38,130,000 in gross proceeds. The aggregate gross proceeds from both closings in the Financing totaled approximately $43,130,000. In the aggregate, 2,270,000 shares of Common Stock were issued in the Financing. In connection with the above Financing, the Company agreed to pay a finder’s fee equal to 5% of the gross proceeds comprised of (i) $657,628 from the gross proceeds of the Financing and (ii) 78,888 restricted shares of Common Stock based on the per share purchase price in the Financing of $19 per share. On April 28, 2016, 78,888 shares of common stock were issued to the finder, which was recorded against the equity. On December 15, 2017, the Company entered into a Share Purchase Agreement with three of its executive officers, pursuant to which the Company agreed to sell, and the three executive officers agreed to purchase an aggregate of 41,667 shares of the Company’s common stock, par value $0.001 per share at $12.00 per share, for total gross proceeds of approximately $500,000. The transaction closed on December 22, 2017. On December 26, 2017, the Company entered into a Share Purchase Agreement with two investors, pursuant to which the Company agreed to sell and the two investors agreed to purchase from the Company, an aggregate of 1,166,667 shares of the Company’s common stock, par value $0.001 per share, at $12.00 per share, for total gross proceeds of approximately $14,000,000. The transaction closed on December 28, 2017. Together with a private placement with three of its executive officers on December 22, 2017, the Company raised an aggregate of approximately $14.5 million in the two private placements in December 2017. During the year ended December 31, 2017, 2016 and 2015, the Company expensed $4,512,192, $4,742,920 and $7,182,118 associated with unvested options awards and $833,019, $709,497 and $410,320 associated with restricted common stock issuances, respectively. During the year ended December 31, 2017, 2016 and 2015, options for 57,400, 196,185 and 152,404 underlying shares were exercised, 57,400, 196,185 and 152,404 shares of the Company’s common stock were issued accordingly. During the year ended December 31, 2017, 2016 and 2015, 68,446, 24,660 and 6,253 shares of the Company's restricted common stock were issued to directors, employees and advisors respectively. During the year ended December 31, 2017, the Company repurchased 426,794 shares of the Company’s common stock with the total cost of $3,977,929. There was no repurchase of stock in 2016. Details are as follows: Period Total number of shares purchased Average price paid per share Total number of shares purchased as part of publicly announced plans or programs Maximum dollar value of shares that may yet be purchased under the plans or programs June 9, 2017 ~ June 30, 2017 170,169 $ 7.98 170,169 July 1, 2017 ~ September 30, 2017 114,156 $ 9.51 114,156 October 1, 2017 ~ December 31, 2017 142,469 $ 10.77 142,469 Total 426,794 $ 9.32 426,794 6,022,071 The Company's Board of Directors has approved a new stock repurchase program granting the company authority to repurchase up to $10 million in common shares (the "2017 Stock Repurchase Program") through open market purchases pursuant to a plan adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and in accordance with Rule 10b-18 of the Exchange Act and was announced on June 1, 2017.

13. COMMITMENTS AND CONTINGENCI

13. COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
13. COMMITMENTS AND CONTINGENCIES	Operating lease commitments The future minimum lease payment due under the executed operating lease agreements as of December 31, 2017 was presented in Note 10 to the consolidated financial statements. Capital commitments As of December 31, 2017, the capital commitments of the Company are summarized as follows: December 31, 2017 Contracts for acquisition of plant and equipment being or to be executed $ 1,444,449

14. STOCK BASED COMPENSATION

14. STOCK BASED COMPENSATION	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
14. STOCK BASED COMPENSATION	Our stock-based compensation arrangements include grants of stock options and restricted stock awards under the Stock Option Plan (the “2009 Plan”,“2011 Plan”, “2013 Plan” and the “2014 Plan”), and certain awards granted outside of these plans. The compensation cost that has been charged against income related to stock options (including shares issued for services and expense true-ups and reversals described in Note 12) for the year ended December 31, 2017, 2016 and 2015 was $4,512,192, $4,742,920 and $7,182,118, respectively. The compensation cost that has been charged against income related to restrict stock awards for the year ended December 31, 2017, 2016 and 2015 was $833,019, $709,497 and $410,320, respectively. These expenses are included in overhead, general and administrative expense, selling and marketing expense as well as research and development expenses in our Consolidated Statements of Operations. As of December 31, 2017, there was $4,362,541 all unrecognized compensation cost related to an aggregate of 592,249 of non-vested stock option awards and $385,331 related to an aggregate of 34,105 of non-vested restricted stock awards. Restricted stock awards under long-term incentive plan is not accounted for as attendant could chose to surrender part of the restricted stock awards for individual income tax payment purpose. These costs are expected to be recognized over a weighted-average period of 2.29 years for the stock options awards and 1.37 years for the restricted stock awards. During the year ended December 31, 2017, the Company issued an aggregate of 547,793 options under the 2011 Plan, 2013 Plan and 2014 Plan to officers, directors, employees and advisors. The grant date fair value of these options was $4,600,926 using Black-Scholes option valuation models with the following assumptions: grant date strike price from $5.3 to $13.2, volatility 85.41% to 89.62%, expected life 6.0 years, and risk-free rate of 1.86% to 2.29%. The Company is expensing these options on a straight-line basis over the requisite service period. During the year ended December 31, 2016, the Company issued an aggregate of 309,382 options under the 2013 Plan and 2014 Plan to officers, directors, employees and advisors. The grant date fair value of these options was $3,811,362 using Black-Scholes option valuation models with the following assumptions: grant date strike price from $12.13 to $40, volatility 88.44% to 90.03%, expected life 6.0 years, and risk-free rate of 1.07% to 2.17%. The Company is expensing these options on a straight-line basis over the requisite service period. During the year ended December 31, 2015, the Company issued an aggregate of 721,779 options under the 2013 Plan and 2014 Plan to officers, directors and employees. The grant date fair value of these options was $13,687,655 using Black-Scholes option valuation models with the following assumptions: exercise price equal to the grant date stock price of $12.91 to $38.4, volatility 88.41% to 99.27%, expected life 6.0 years, and risk-free rate of 1.39% to 1.92%. The Company is expensing these options on a straight-line basis over the requisite service period. The following table summarizes stock option activity as of December 31, 2017 and 2016 and for the year ended December 31, 2017: Number of Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at December 31, 2015 1,952,648 $ 12.42 7.8 $ 17,701,962 Grants 309,382 18.65 Forfeitures (458,030 ) 19.45 Exercises (196,185 ) 4.51 Outstanding at December 31, 2016 1,607,815 $ 12.59 7.3 $ 6,355,072 Grants 547,793 11.34 Forfeitures (206,019 ) 20.68 Exercises (57,400 ) 5.37 Outstanding at December 31, 2017 1,892,189 $ 11.54 7.0 $ 4,909,194 Vested and exercisable at December 31, 2017 1,299,940 $ 10.52 6.1 $ 4,619,527 Exercise Price Number of Options Outstanding Exercisable $3.00 - $4.95 185,547 185,547 $5.00 - $9.19 569,204 510,768 $9.20+ 1,137,438 603,625 1,892,189 1,299,940 The aggregate intrinsic value for stock options outstanding is defined as the positive difference between the fair market value of our common stock and the exercise price of the stock options. Cash received from option exercises under all share-based payment arrangements for the year ended December 31, 2017, 2016 and 2015 was $308,371, $885,680 and $682,303, respectively.

15. NET LOSS PER SHARE

15. NET LOSS PER SHARE	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
15. NET LOSS PER SHARE	Basic and diluted net loss per common share is computed on the basis of our weighted average number of common shares outstanding, as determined by using the calculations outlined below: For the Year Ended December 31, 2017 2016 2015 Net loss $ (25,490,310 ) $ (28,208,376 ) $ (19,447,721 ) Weighted average shares of common stock 14,345,604 13,507,408 11,472,306 Dilutive effect of stock options - - - Restricted stock vested not issued - - - Common stock and common stock equivalents 14,345,604 13,507,408 11,472,306 Net loss per basic share $ (1.78 ) $ (2.09 ) $ (1.70 ) Net loss per diluted share $ (1.78 ) $ (2.09 ) $ (1.70 ) For the year ended December 31, 2017, 2016 and 2015, the effect of conversion and exercise of the Company’s outstanding options are excluded from the calculations of dilutive net income (loss) per share as their effects would have been anti-dilutive since the Company had generated loss for the year ended December 31, 2017, 2016 and 2015.

16. INCOME TAXES

16. INCOME TAXES	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
16. INCOME TAXES	Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period during which such rates are enacted. The Company considers all available evidence to determine whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become realizable. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carry-forward periods), and projected taxable income in assessing the realizability of deferred tax assets. In making such judgments, significant weight is given to evidence that can be objectively verified. Based on all available evidence, in particular our three-year historical cumulative losses, recent operating losses and U.S. pre-tax loss for the year ended December 31, 2017, we recorded a valuation allowance against our U.S. net deferred tax assets. In order to fully realize the U.S. deferred tax assets, we will need to generate sufficient taxable income in future periods before the expiration of the deferred tax assets governed by the tax code. The following represent components of the income tax (expense) credit for the year ended December 31, 2017, 2016 and 2015: For the Year Ended December 31, 2017 2016 2015 Current: US federal $ - $ - $ 733,158 US state (2,450 ) (4,093 ) (4,557 ) Foreign - Total current tax credit (expense) $ (2,450 ) $ (4,093 ) $ 728,601 Deferred: Federal $ - $ - $ - State - - - Foreign - - - Total deferred tax expense $ - $ - $ - Total income tax credit (expense) $ (2,450 ) $ (4,093 ) $ 728,601 Tax effects of temporary differences that give rise to significant portions of the Company's deferred tax assets at December 31, 2017 and 2016 are presented below: December 31, December 31, 2017 2016 Deferred tax assets: Net operating loss carry forwards (offshore) $ 5,448,339 $ 3,827,747 Net operating loss carry forwards (US) 3,864,824 4,496,655 Accruals (offshore) 588,277 280,756 Accrued compensation (US) 83,071 25,168 Stock-based compensation (US) 2,315,801 3,018,905 Investments (US) 1,893,532 3,673,382 Credits (US) 217,329 97,504 Property and equipment 123 - Goodwill & intangibles 49,653 33,079 Subtotal 14,460,949 15,453,196 Less: valuation allowance (14,460,949 ) (15,452,737 ) Total deferred tax assets - 459 Deferred tax liabilities: Property and equipment - (459 ) Subtotal - (459 ) Net deferred tax asset $ - $ - In each period since inception, the Company has recorded a valuation allowance for the full amount of net deferred tax assets, as the realization of deferred tax assets is uncertain. As a result, the Company has not recorded any federal or state income tax benefit in the consolidated statements of operations and comprehensive income (loss). On December 22, 2017, US President signed tax reform bill (Tax Cut and Jobs Act (H.R.1)) and reduced top corporate tax rate from 35% to 21% effective from January 1, 2018. Pursuant to this new Act, non-operating loss carry back period is eliminated and an indefinite carry forward period is permitted. As of December 31, 2017, the Company had net operating loss carryforwards of $16 million for U.S federal purposes, $6 million for U.S. state purposes. As of December 31, 2017, the Company had net operating loss carryforwards of $14 million for Chinese income tax purposes, such losses are set to expire in 2022 for Chinese income tax purposes. All deferred income tax expense is offset by changes in the valuation allowance pertaining to the Company's existing net operating loss carryforwards due to the unpredictability of future profit streams prior to the expiration of the tax losses. The Company's effective tax rate differs from statutory rates of 21% for U.S. federal income tax purposes, 15% ~ 25% for Chinese income tax purpose and 16.5% for Hong Kong income tax purposes due to the effects of the valuation allowance and certain permanent differences as it pertains to book-tax differences in the value of client shares received for services. Pursuant to the Corporate Income Tax Law of the PRC, all of the Company’s PRC subsidiaries are liable to PRC Corporate Income Taxes (“CIT”) at a rate of 25% except for Cellular Biomedicine Group Ltd. (Shanghai) (“CBMG Shanghai”). According to Guoshuihan 2009 No. 203, if an entity is certified as an “advanced and new technology enterprise”, it is entitled to a preferential income tax rate of 15%. CBMG Shanghai obtained the certificate of “advanced and new technology enterprise” dated October 30, 2015 with an effective period of three years and the provision for PRC corporate income tax for CBMG Shanghai is calculated by applying the income tax rate of 15% from 2015. CBMG Shanghai will still apply the certificate of “advanced and new technology enterprise” in 2018. Income tax expense for year ended December 31, 2017, 2016 and 2015 differed from the amounts computed by applying the statutory federal income tax rate of 35% to pretax income (loss) as a result of the following: For the Year Ended For the Year Ended For the Year Ended December 31, 2017 December 31, 2016 December 31, 2015 Effective Tax Rate Reconciliation Income tax provision at statutory rate 35 % 35 % 35 % State income taxes, net of federal benefit 0 % 0 % 0 % Rate deduction (20 )% 0 % 0 % Foreign rate differential (13 )% (9 )% (12 )% Other permanent difference (2 )% (2 )% (4 )% Change in valuation allowance 0 % (24 )% (15 )% Total tax credit (expense) 0 % 0 % 4 %

17. COLLABORATION AGREEMENT

17. COLLABORATION AGREEMENT	12 Months Ended
	Dec. 31, 2017
Collaboration Agreement
17. COLLABORATION AGREEMENT	Part of AG’s business includes a collaboration agreement to establish and operate a biologic treatment center in the Jilin province of China. Under the terms of the Collaboration Agreement dated December 10, 2012 and its supplementary agreement dated July 19, 2014 (the “Collaboration Agreement”), AG’s collaborative partner (the “Partner”) funded the development of the center and provides certain ongoing services. In exchange, the Partner receives preferred repayment of all funds that were invested in the development, 60% of the net profits until all of the invested funds are repaid, and 40% of the net profits thereafter, and the rights to the physical assets at the conclusion of the agreement. We accounted for this transaction in accordance with ASC 808 Collaborative Arrangements and have reflected all assets and liabilities of the treatment center. With our recent build-up of multiple cancer therapeutic technologies, we have prioritized our clinical efforts on developing CAR-T technologies, Vaccine, Tcm and TCR clonality technologies, and not actively pursuing the fragmented technical services opportunities. In June 2016, the Company and the Partner agreed to terminate the Collaboration Agreement and in July 2016 entered into a cooperation termination agreement (the “Termination Agreement”) with the Partner. In August 2016, in accordance with the Termination Agreement, the Company paid $0.3 million (RMB2 million equivalent) to settle all the liabilities with the Partner and retain the ownership of all the assets under the Collaboration Agreement.

18. SEGMENT INFORMATION

18. SEGMENT INFORMATION	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
18. SEGMENT INFORMATION	The Company is engaged in the development of new treatments for cancerous and degenerative diseases utilizing proprietary cell-based technologies, which have been organized as one reporting segment since they have similar nature and economic characteristics. The Company’s principle operating decision maker, the Chief Executive Officer, receives and reviews the result of the operation for all major cell platforms as a whole when making decisions about allocating resources and assessing performance of the Company. In accordance with FASB ASC 280-10, the Company is not required to report the segment information.

19. SUBSEQUENT EVENTS

19. SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2017
Subsequent Events [Abstract]
19. SUBSEQUENT EVENTS	On January 30, 2018 and February 5, 2018, the Company entered into securities purchase agreements with certain investors pursuant to which the Company agreed to sell, and the investors agreed to purchase from the Company, an aggregate of 1,719,324 shares of the Company’s common stock, par value $0.001 per share, at $17.80 per share, for total gross proceeds of approximately $30.6 million. The transaction closed on February 5, 2018. Pursuant to the Purchase Agreement, the Investors have the right to nominate one director to the board of directors of the Company to stand for election at the 2018 Annual Meeting of Stockholders. Effective as of the closing of the February 2018 private placement, the Board elected Bosun S. Hau as a nonexecutive Class III director of the Company. On February 6, 2018, driven primarily by the Company’s strategy move to expand its business operations in early diagnosis and cancer intervention, Meng Xia transitioned from the role of Chief Operating Officer to Head of the Early Diagnosis & Intervention for the Company. On February 15, 2018, the Company obtained a 36 months exclusive option with Augusta University to to negotiate a royalty-bearing, exclusive license to the patent rights owned by the Augusta University relating to an invention to identify novel alpha fetoprotein specific T-cell receptors (TCR) for a hepatocellular carcinoma immunotherapy ( “HCC”). The Company plan to evaluate the feasibility and opportunities of this novel alpha fetoprotein TCR to redirect T Cells for the HCC indication.

21. UNAUDITED QUARTERLY FINANCI

21. UNAUDITED QUARTERLY FINANCIAL INFORMATION	12 Months Ended
	Dec. 31, 2017
Quarterly Financial Information Disclosure [Abstract]
21. UNAUDITED QUARTERLY FINANCIAL INFORMATION	Year ended December 31, 2017 Q4 Q3 Q2 Q1 Total Selected Income Statement Data: Net sales and revenue $ 68,691 $ 106,787 $ 62,914 $ 98,425 $ 336,817 Gross Profit 37,266 51,493 24,817 61,023 174,599 Net loss (6,922,585 ) (6,202,214 ) (6,203,518 ) (6,161,993 ) (25,490,310 ) Net loss per share: Basic (0.48 ) (0.43 ) (0.43 ) (0.43 ) (1.78 ) Diluted (0.48 ) (0.43 ) (0.43 ) (0.43 ) (1.78 ) Year ended December 31, 2016 Q4 Q3 Q2 Q1 Total Selected Income Statement Data: Net sales and revenue $ 57,828 $ 10,012 $ 71,599 $ 488,491 $ 627,930 Gross Profit/(Loss) 33,319 884 (251,988 ) (14,702 ) (232,487 ) Net loss (6,139,761 ) (10,661,220 ) (7,197,282 ) (4,210,113 ) (28,208,376 ) Net loss per share: Basic (0.43 ) (0.75 ) (0.52 ) (0.35 ) (2.09 ) Diluted (0.43 ) (0.75 ) (0.52 ) (0.35 ) (2.09 )

3. SUMMARY OF SIGNIFICANT ACC27

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2017
Summary Of Significant Accounting Policies Policies
Principles of Consolidation	The consolidated financial statements have been prepared in conformity with GAAP, and reflect the accounts and operations of the Company and its subsidiaries, beginning with the date of their respective acquisition. In accordance with the provisions of Financial Accounting Standards Board (“FASB”), Accounting Standards Codification (“ASC”) Topic 810, or ASC 810, Consolidation
Use of Estimates	The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. These estimates and assumptions also affect the reported amounts of revenues, costs and expenses during the reporting period. Management evaluates these estimates and assumptions on a regular basis. Significant accounting estimates reflected in the Company’s consolidated financial statements include inventory valuation, account receivable valuation, useful lives of property, plant and equipment and acquired intangibles, the valuation allowance for deferred income tax assets, valuation of goodwill, valuation of long-lived assets and share-based compensation expense. Actual results could materially differ from those estimates.
Revenue Recognition	The Company utilizes the guidance set forth in the FASB’s ASC Topic 605, Revenue Recognition
Cash and Cash Equivalents	The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. At December 31, 2017 and 2016, respectively, cash and cash equivalents include cash on hand and cash in the bank. At times, cash deposits may exceed government-insured limits.
Accounts Receivable	Accounts receivable represent amounts earned but not collected in connection with the Company’s sales of goods or services as of December 31, 2017 and 2016. Account receivables are carried at their estimated collectible amounts. The Company follows the allowance method of recognizing uncollectible accounts receivable. The Company recognizes bad debt expense based on specifically identified customers and invoices that are anticipated to be uncollectable. At December 31, 2017 and 2016, allowance of $10,789 and $10,163 was provided for debtors of certain customers as those debts are unrecoverable from customers, respectively.
Property, Plant and Equipment	Property, plant and equipment are recorded at cost. Depreciation is provided for on the straight-line method over the estimated useful lives of the assets ranging from three to ten years and begins when the related assets are placed in service. Maintenance and repairs that neither materially add to the value of the property nor appreciably prolong its life are charged to expense as incurred. Betterments or renewals are capitalized when incurred. Plant, property and equipment are reviewed each year to determine whether any events or circumstances indicate that the carrying amount of the assets may not be recoverable. We assess the recoverability of the asset by comparing the projected undiscounted net cash flows associated with the related assets over the estimated remaining life against the respective carrying value. For the years ended December 31, 2017, 2016 and 2015, depreciation expense was $1,195,705, $850,793 and $573,015, respectively.
Goodwill and Other Intangibles	Goodwill represents the excess of the cost of assets acquired over the fair value of the net assets at the date of acquisition. Intangible assets represent the fair value of separately recognizable intangible assets acquired in connection with the Company’s business combinations. The Company evaluates its goodwill and other intangibles for impairment on an annual basis or whenever events or circumstances indicate that impairment may have occurred. The carrying amount of the goodwill at December 31, 2017 and 2016 represents the cost arising from the business combinations in previous years and no impairment on goodwill was recognized for the years ended December 31, 2017 and 2016.
Treasury Stock	The treasury stock is recorded and carried at their repurchase cost. The Company recorded the entire purchase price of the treasury stock as a reduction of equity. A gain or loss will be determined when treasury stock is reissued or retired, and the original issue price and book value of the stock do not enter into the accounting. Additional paid-in capital from treasury stock is credited for gains and debited for losses when treasury stock is reissued at prices that differ from the repurchase cost.
Government Grants	Government grants are recognized in the balance sheet initially when there is reasonable assurance that they will be received and that the enterprise will comply with the conditions attached to them. When the Company received the government grants but the conditions attached to the grants have not been fulfilled, such government grants are deferred and recorded as deferred income. The classification of short-term or long-term liabilities is depended on the management’s expectation of when the conditions attached to the grant can be fulfilled. Grants that compensate the Company for expenses incurred are recognized as other income in statement of income on a systematic basis in the same periods in which the expenses are incurred. For the year ended December 31, 2017 and 2016, the Company received government grants of $1,905,213 and $422,839 for purpose of R&D and related capital expenditure, respectively. Government subsidies recognized as other income in the statement of income for the year ended December 31, 2017 and 2016 were $2,077,486 and $78,542, respectively.
Valuation of long-lived asset	The Company reviews the carrying value of long-lived assets to be held and used, including other intangible assets subject to amortization, when events and circumstances warrants such a review. The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flow from such asset is separately identifiable and is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair market value of the long-lived asset and intangible assets. Fair market value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Losses on long-lived assets and intangible assets to be disposed are determined in a similar manner, except that fair market values are reduced for the cost to dispose.
Income Taxes	Income taxes are accounted for using the asset and liability method. Under this method, deferred income tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which these temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance would be provided for those deferred tax assets if it is more likely than not that the related benefit will not be realized. A full valuation allowance has been established against all net deferred tax assets as of December 31, 2017 and 2016 based on estimates of recoverability. While the Company has optimistic plans for its business strategy, we determined that such a valuation allowance was necessary given the current and expected near term losses and the uncertainty with respect to the Company’s ability to generate sufficient profits from its business model.
Share-Based Compensation	The Company periodically uses stock-based awards, consisting of shares of common stock and stock options, to compensate certain officers and consultants. Shares are expensed on a straight line basis over the requisite service period based on the grant date fair value, net of estimated forfeitures, if any. We currently use the Black-Scholes option-pricing model to estimate the fair value of our stock-based payment awards. This model requires the input of highly subjective assumptions, including the fair value of the underlying common stock, the expected volatility of the price of our common stock, risk-free interest rates, the expected term of the option and the expected dividend yield of our common stock. These estimates involve inherent uncertainties and the application of management’s judgment. If factors change and different assumptions are used, our stock-based compensation expense could be materially different in the future. These assumptions are estimated as follows: ● Fair Value of Our Common Stock — Our common stock is valued by reference to the publicly-traded price of our common stock. ● Expected Volatility — Prior to the Eastbridge merger, we did not have a history of market prices for our common stock and since the merger, we do not have what we consider a sufficiently active and readily traded market for our common stock to use historical market prices for our common stock to estimate volatility. Accordingly, we estimate the expected stock price volatility for our common stock by taking the median historical stock price volatility for industry peers based on daily price observations over a period equivalent to the expected term of the stock option grants. Industry peers consist of other public companies in the stem cell industry similar in size, stage of life cycle and financial leverage. We intend to continue to consistently apply this process using the same or similar public companies until a sufficient amount of historical information regarding the volatility of our own common stock share price becomes available. ● Risk-Free Interest Rate — The risk-free interest rate assumption is based on observed interest rates appropriate for the expected terms of our awards. The risk-free interest rate assumption is based on the yields of U.S. Treasury securities with maturities similar to the expected term of the options for each option group. ● Expected Term — The expected term represents the period that our stock-based awards are expected to be outstanding. The expected terms of the awards are based on a simplified method which defines the life as the average of the contractual term of the options and the weighted-average vesting period for all open tranches. ● Expected Dividend Yield — We have never declared or paid any cash dividends and do not presently plan to pay cash dividends in the foreseeable future. Consequently, we used an expected dividend yield of zero. In addition to the assumptions used in the Black-Scholes option-pricing model, the amount of stock option expense we recognize in our consolidated statements of operations includes an estimate of stock option forfeitures. We estimate our forfeiture rate based on an analysis of our actual forfeitures and will continue to evaluate the appropriateness of the forfeiture rate based on actual forfeiture experience, analysis of employee turnover and other factors. Changes in the estimated forfeiture rate can have a significant impact on our stock-based compensation expense as the cumulative effect of adjusting the rate is recognized in the period the forfeiture estimate is changed. If a revised forfeiture rate is higher than the previously estimated forfeiture rate, an adjustment is made that will result in a decrease to the stock-based compensation expense recognized in the consolidated financial statements. If a revised forfeiture rate is lower than the previously estimated forfeiture rate, an adjustment is made that will result in an increase to the stock-based compensation expense recognized in our consolidated financial statements.
Fair Value of Financial Instruments	Under the FASB’s authoritative guidance on fair value measurements, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining the fair value, the Company uses various methods including market, income and cost approaches. Based on these approaches, the Company often utilizes certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable inputs. The Company uses valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Based on observability of the inputs used in the valuation techniques, the Company is required to provide the following information according to the fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values. Financial assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: Level 1: Valuations for assets and liabilities traded in active exchange markets. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2: Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third party pricing services for identical or similar assets or liabilities. Level 3: Valuations for assets and liabilities that are derived from other valuation methodologies, including option pricing models, discounted cash flow models and similar techniques, and not based on market exchange, dealer or broker traded transactions. Level 3 valuations incorporate certain unobservable assumptions and projections in determining the fair value assigned to such assets. All transfers between fair value hierarchy levels are recognized by the Company at the end of each reporting period. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. The inputs or methodology used for valuing financial instruments are not necessarily an indication of the risks associated with investment in those instruments. The carrying amounts of other financial instruments, including cash, accounts receivable, accounts payable and accrued liabilities, income tax payable and related party payable approximate fair value due to their short maturities.
Investments	The fair value of “investments” is dependent on the type of investment, whether it is marketable or non-marketable. Marketable securities held by the Company are held for an indefinite period of time and thus are classified as available-for-sale securities. The fair value is based on quoted market prices for the investment as of the balance sheet date. Realized investment gains and losses are included in the statement of operations, as are provisions for other than temporary declines in the market value of available for-sale securities. Unrealized gains and unrealized losses deemed to be temporary are excluded from earnings (losses), net of applicable taxes, as a component of other comprehensive income (loss). Factors considered in judging whether an impairment is other than temporary include the financial condition, business prospects and creditworthiness of the issuer, the length of time that fair value has been less than cost, the relative amount of decline, and the Company’s ability and intent to hold the investment until the fair value recovers.
Basic and Diluted Net Loss Per Share	Diluted net loss per share reflects potential dilution from the exercise or conversion of securities into common stock. The dilutive effect of the Company's share-based awards is computed using the treasury stock method, which assumes that all share-based awards are exercised and the hypothetical proceeds from exercise are used to purchase common stock at the average market price during the period. Share-based awards whose effects are anti-dilutive are excluded from computing diluted net loss per share.
Foreign Currency Translation	The Company's financial statements are presented in U.S. dollars ($), which is the Company’s reporting currency, while some of the Company’s subsidiaries’ functional currency is Chinese Renminbi (RMB). Transactions in foreign currencies are initially recorded at the functional currency rate ruling at the date of transaction. Any differences between the initially recorded amount and the settlement amount are recorded as a gain or loss on foreign currency transaction in the consolidated statements of operations. Monetary assets and liabilities denominated in foreign currency are translated at the functional currency rate of exchange ruling at the balance sheet date. Any differences are recorded as an unrealized gain or loss on foreign currency translation in the statements of operations and comprehensive loss. In accordance with ASC 830, Foreign Currency Matters, the Company translates the assets and liabilities into USD from RMB using the rate of exchange prevailing at the applicable balance sheet date and the statements of income and cash flows are translated at an average rate during the reporting period. Adjustments resulting from the translation are recorded in shareholders' equity as part of accumulated other comprehensive income. The PRC government imposes significant exchange restrictions on fund transfers out of the PRC that are not related to business operations.
Comprehensive Loss	We apply ASC No. 220, Comprehensive Income
Segment Information	FASB ASC Topic 280, “Segment Reporting” establishes standards for reporting information about reportable segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision-making group in deciding how to allocate resources and in assessing performance. Following the discontinuance of our consulting business, we operate in a single reportable segment.
Recent Accounting Pronouncements	Accounting pronouncements adopted during the year ended December 31, 2017 In April 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, “Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” Accounting pronouncements not yet effective In February 2018, the FASB issued ASU No. 2018-02, “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” In July 2017, the FASB issued ASU No. 2017-11, “Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Non-controlling Interests with a Scope Exception” In May 2017, the FASB issued ASU No. 2017-09, “Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting” In February 2017, the FASB issued ASU No. 2017-05, “Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets” In January 2017, the FASB issued ASU No. 2017-04, “Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” In November 2016, the FASB issued ASU No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash” In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date” “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing” “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients” “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers” Revenue from Contracts with Customers

4. VARIABLE INTEREST ENTITY (Ta

4. VARIABLE INTEREST ENTITY (Tables)	12 Months Ended
	Dec. 31, 2017
Variable Interest Entity, Nonconsolidated, Comparison of Carrying Amount of Assets and Liabilities to Maximum Loss Exposure [Abstract]
Aggregate carrying value of assets and liability	December 31, December 31, 2017 2016 Assets Cash $ 2,337,173 $ 4,021,992 Other receivables 773,384 370,702 Prepaid expenses 1,750,509 777,445 Total current assets 4,861,066 5,170,139 Property, plant and equipment, net 12,477,315 2,398,576 Intangibles 1,516,449 1,613,582 Long-term prepaid expenses and other assets 2,920,257 443,874 Total assets $ 21,775,087 $ 9,626,171 Liabilities Accounts payable $ 181,231 $ 161,825 Other payables 1,631,582 407,769 Payroll accrual 682,248 792,706 Deferred income 9,810 - Total current liabilities $ 2,504,871 $ 1,362,300 Other non-current liabilities 183,649 10,091 Total liabilities $ 2,688,520 $ 1,372,391

6. PROPERTY, PLANT AND EQUIPM29

6. PROPERTY, PLANT AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2017
Property Plant And Equipment Tables
Property, plant and equipment, carried at cost	December 31, 2017 December 31, 2016 Office equipment $ 105,114 $ 80,485 Manufacturing equipment 4,781,936 3,347,458 Computer equipment 233,539 162,769 Leasehold improvements 4,196,589 1,912,573 Construction in progress 7,498,272 1,172,433 16,815,450 6,675,718 Less: accumulated depreciation (3,842,108 ) (2,557,979 ) $ 12,973,342 $ 4,117,739

7. INVESTMENTS (Tables)

7. INVESTMENTS (Tables)	12 Months Ended
	Dec. 31, 2017
Schedule of Investments [Abstract]
Assets measured at fair value on a recurring basis	December 31, 2017 Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses more than 12 months Gross Unrealized Losses less than 12 months Market or Fair Value Equity position in Alpha Lujo, Inc. $ 251,388 $ - $ (221,964 ) $ - $ 29,424 Equity position in Arem Pacific Corporation 480,000 - - (240,000 ) 240,000 Total $ 731,388 $ - $ (221,964 ) $ (240,000 ) $ 269,424 December 31, 2016 Adjusted Cost Gross Unrealized Gains Gross Gross Unrealized Losses less than 12 months Market or Fair Value Equity position in Alpha Lujo, Inc. $ 251,388 $ - $ - $ (221,964 ) $ 29,424 Equity position in Arem Pacific Corporation 480,000 - - - 480,000 Total $ 731,388 $ - $ - $ (221,964 ) $ 509,424

8. FAIR VALUE ACCOUNTING (Table

8. FAIR VALUE ACCOUNTING (Tables)	12 Months Ended
	Dec. 31, 2017
Fair Value Accounting Tables
Assets measured at fair value on a recurring basis	As of December 31, 2017 Fair Value Measurements at Reporting Date Using: Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) Assets: Equity position in Alpha Lujo, Inc. $ 29,424 $ - $ 29,424 $ - Equity position in Arem Pacific Corporation 240,000 - 240,000 - $ 269,424 $ - $ 269,424 $ - As of December 31, 2016 Fair Value Measurements at Reporting Date Using: Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) Assets: Equity position in Alpha Lujo, Inc. $ 29,424 $ - $ 29,424 $ - Equity position in Arem Pacific Corporation 480,000 - 480,000 - $ 509,424 $ - $ 509,424 $ -

9. INTANGIBLE ASSETS (Tables)

9. INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2017
Intangible Assets Tables
Intangible assets at cost	Patents & knowhow & license December 31, 2017 December 31, 2016 Cost basis $ 17,674,431 $ 17,560,496 Less: accumulated amortization (5,325,113 ) (3,539,617 ) $ 12,349,318 $ 14,020,879 Software December 31, 2017 December 31, 2016 Cost basis $ 158,273 $ 125,964 Less: accumulated amortization (87,899 ) (54,262 ) $ 70,374 $ 71,702 Total intangibles, net $ 12,419,692 $ 14,092,581
Estimated amortization expenses	Years ending December 31, Amount 2018 $ 1,788,814 2019 1,787,586 2020 1,784,335 2021 1,778,866 2022 and thereafter 5,280,091 $ 12,419,692

10. LEASES (Tables)

10. LEASES (Tables)	12 Months Ended
	Dec. 31, 2017
Leases Tables
Future minimum lease payments due	Years ending December 31, Amount 2018 $ 3,062,842 2019 2,822,735 2020 2,627,027 2021 2,547,990 2022 and thereafter 12,623,886 $ 23,684,480

12. EQUITY (Tables)

12. EQUITY (Tables)	12 Months Ended
	Dec. 31, 2017
Equity Tables
Stock purchases	Period Total number of shares purchased Average price paid per share Total number of shares purchased as part of publicly announced plans or programs Maximum dollar value of shares that may yet be purchased under the plans or programs June 9, 2017 ~ June 30, 2017 170,169 $ 7.98 170,169 July 1, 2017 ~ September 30, 2017 114,156 $ 9.51 114,156 October 1, 2017 ~ December 31, 2017 142,469 $ 10.77 142,469 Total 426,794 $ 9.32 426,794 6,022,071

13. COMMITMENTS AND CONTINGEN35

13. COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Capital commitments	December 31, 2017 Contracts for acquisition of plant and equipment being or to be executed $ 1,444,449

14. STOCK BASED COMPENSATION (T

14. STOCK BASED COMPENSATION (Tables)	12 Months Ended
	Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock option activity	Number of Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at December 31, 2015 1,952,648 $ 12.42 7.8 $ 17,701,962 Grants 309,382 18.65 Forfeitures (458,030 ) 19.45 Exercises (196,185 ) 4.51 Outstanding at December 31, 2016 1,607,815 $ 12.59 7.3 $ 6,355,072 Grants 547,793 11.34 Forfeitures (206,019 ) 20.68 Exercises (57,400 ) 5.37 Outstanding at December 31, 2017 1,892,189 $ 11.54 7.0 $ 4,909,194 Vested and exercisable at December 31, 2017 1,299,940 $ 10.52 6.1 $ 4,619,527
Outstanding stock options	Exercise Price Number of Options Outstanding Exercisable $3.00 - $4.95 185,547 185,547 $5.00 - $9.19 569,204 510,768 $9.20+ 1,137,438 603,625 1,892,189 1,299,940

15. NET LOSS PER SHARE (Tables)

15. NET LOSS PER SHARE (Tables)	12 Months Ended
	Dec. 31, 2017
Net Loss Per Share Tables
Schedule of basic and diluted earning per share	For the Year Ended December 31, 2017 2016 2015 Net loss $ (25,490,310 ) $ (28,208,376 ) $ (19,447,721 ) Weighted average shares of common stock 14,345,604 13,507,408 11,472,306 Dilutive effect of stock options - - - Restricted stock vested not issued - - - Common stock and common stock equivalents 14,345,604 13,507,408 11,472,306 Net loss per basic share $ (1.78 ) $ (2.09 ) $ (1.70 ) Net loss per diluted share $ (1.78 ) $ (2.09 ) $ (1.70 )

16. INCOME TAXES (Tables)

16. INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2017
Income Taxes Tables
Schedule of components of the current tax expense	For the Year Ended December 31, 2017 2016 2015 Current: US federal $ - $ - $ 733,158 US state (2,450 ) (4,093 ) (4,557 ) Foreign - Total current tax credit (expense) $ (2,450 ) $ (4,093 ) $ 728,601 Deferred: Federal $ - $ - $ - State - - - Foreign - - - Total deferred tax expense $ - $ - $ - Total income tax credit (expense) $ (2,450 ) $ (4,093 ) $ 728,601
Schedule of components of net deferred tax assets	December 31, December 31, 2017 2016 Deferred tax assets: Net operating loss carry forwards (offshore) $ 5,448,339 $ 3,827,747 Net operating loss carry forwards (US) 3,864,824 4,496,655 Accruals (offshore) 588,277 280,756 Accrued compensation (US) 83,071 25,168 Stock-based compensation (US) 2,315,801 3,018,905 Investments (US) 1,893,532 3,673,382 Credits (US) 217,329 97,504 Property and equipment 123 - Goodwill & intangibles 49,653 33,079 Subtotal 14,460,949 15,453,196 Less: valuation allowance (14,460,949 ) (15,452,737 ) Total deferred tax assets - 459 Deferred tax liabilities: Property and equipment - (459 ) Subtotal - (459 ) Net deferred tax asset $ - $ -
Schedule of reconciliation of income tax expense (benefit)	For the Year Ended For the Year Ended For the Year Ended December 31, 2017 December 31, 2016 December 31, 2015 Effective Tax Rate Reconciliation Income tax provision at statutory rate 35 % 35 % 35 % State income taxes, net of federal benefit 0 % 0 % 0 % Rate deduction (20 )% 0 % 0 % Foreign rate differential (13 )% (9 )% (12 )% Other permanent difference (2 )% (2 )% (4 )% Change in valuation allowance 0 % (24 )% (15 )% Total tax credit (expense) 0 % 0 % 4 %

20. UNAUDITED QUARTERLY FINANCI

20. UNAUDITED QUARTERLY FINANCIAL INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2017
Quarterly Financial Information Disclosure [Abstract]
Schedule of quarterly financial information	Year ended December 31, 2017 Q4 Q3 Q2 Q1 Total Selected Income Statement Data: Net sales and revenue $ 68,691 $ 106,787 $ 62,914 $ 98,425 $ 336,817 Gross Profit 37,266 51,493 24,817 61,023 174,599 Net loss (6,922,585 ) (6,202,214 ) (6,203,518 ) (6,161,993 ) (25,490,310 ) Net loss per share: Basic (0.48 ) (0.43 ) (0.43 ) (0.43 ) (1.78 ) Diluted (0.48 ) (0.43 ) (0.43 ) (0.43 ) (1.78 ) Year ended December 31, 2016 Q4 Q3 Q2 Q1 Total Selected Income Statement Data: Net sales and revenue $ 57,828 $ 10,012 $ 71,599 $ 488,491 $ 627,930 Gross Profit/(Loss) 33,319 884 (251,988 ) (14,702 ) (232,487 ) Net loss (6,139,761 ) (10,661,220 ) (7,197,282 ) (4,210,113 ) (28,208,376 ) Net loss per share: Basic (0.43 ) (0.75 ) (0.52 ) (0.35 ) (2.09 ) Diluted (0.43 ) (0.75 ) (0.52 ) (0.35 ) (2.09 )

3. SUMMARY OF SIGNIFICANT ACC40

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Summary Of Significant Accounting Policies Details Narrative
Allowance for doubtful amounts	$ 10,789	$ 10,163
Depreciation expense	1,195,705	850,793	$ 573,015
Goodwill impairment	0	0
Government grants received	1,905,213	422,839
Government subsidies	2,077,486	78,542
Comprehensive loss	$ 24,763,121	$ 29,208,953	$ 21,132,211

4. VARIABLE INTEREST ENTITY (De

4. VARIABLE INTEREST ENTITY (Details) - USD ($)		Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Assets
Cash		$ 21,568,422	$ 39,252,432	$ 14,884,597	$ 14,770,584
Other receivable		902,940	412,727
Total current assets		24,526,944	40,692,084
Property, plant and equipment, net		12,973,342	4,117,739
Intangibles		12,419,692	14,092,581
Total assets	[1]	61,162,296	68,628,467
Liabilities:
Accounts payable		225,287	216,154
Other payables		1,097,327	1,168,787
Total current liabilities		3,676,121	2,364,036
Other non-current liabilities		183,649	370,477
Total liabilities	[1]	3,859,770	2,734,513
CBMG Shanghai
Assets
Cash		2,337,173	4,021,992
Other receivable		773,384	370,702
Prepaid expenses		1,750,509	777,445
Total current assets		4,861,066	5,170,139
Property, plant and equipment, net		12,477,315	2,398,576
Intangibles		1,516,449	1,613,582
Long-term prepaid expenses and other assets		2,920,257	443,874
Total assets		21,775,087	9,626,171
Liabilities:
Accounts payable		181,231	161,825
Other payables		1,631,582	407,769
Payroll accrual		682,248	792,706
Deferred income		9,810	0
Total current liabilities		2,504,871	1,362,300
Other non-current liabilities		183,649	10,091
Total liabilities		$ 2,688,520	$ 1,372,391
[1]	The Company's consolidated assets as of December 31, 2017 and 2016 included $21,775,087 and $9,626,171, respectively, of assets of variable interest entities, or VIEs, that can only be used to settle obligations of the VIEs. Each of the following amounts represent the balances as of December 31, 2017 and 2016, respectively. These assets include cash and cash equivalents of $2,337,173 and $4,021,992; other receivables of $773,384 and $370,702; prepaid expenses of $1,750,509 and $777,445; property, plant and equipment, net, of $12,477,315 and $2,398,576; intangibles of $1,516,449 and $1,613,582; and long-term prepaid expenses and other assets of $2,920,257 and $443,874. The Company's consolidated liabilities as of December 31, 2017 and 2016 included $2,688,520 and $1,372,391, respectively, of liabilities of the VIEs whose creditors have no recourse to the Company. These liabilities include accounts payable of $181,231 and $161,825; other payables of $1,631,582 and $407,769; payroll accrual of $682,248 and $792,706;deferred income of $9,810 and nil;and other non-current liabilities of $183,649 and $10,091. See further description in Note 4, Variable Interest Entities.

5. OTHER RECEIVABLES (Details N

5. OTHER RECEIVABLES (Details Narrative) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Other Receivables Details Narrative
Other receivables	$ 902,940	$ 412,727

6. PROPERTY, PLANT AND EQUIPM43

6. PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Gross Property plant and equipment	$ 16,815,450	$ 6,675,718
Less: accumulated depreciation	(3,842,108)	(2,557,979)
Net Property plant and equipment	12,973,342	4,117,739
Office equipment
Gross Property plant and equipment	105,114	80,485
Manufacturing equipment
Gross Property plant and equipment	4,781,936	3,347,458
Computer equipment
Gross Property plant and equipment	233,539	162,769
Leasehold improvements
Gross Property plant and equipment	4,196,589	1,912,573
Construction in progress
Gross Property plant and equipment	$ 7,498,272	$ 1,172,433

6. PROPERTY, PLANT AND EQUIPM44

6. PROPERTY, PLANT AND EQUIPMENT (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Property Plant And Equipment Details Narrative
Depreciation expense	$ 1,195,705	$ 850,793	$ 573,015

7. INVESTMENTS (Details)

7. INVESTMENTS (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Cost	$ 731,388	$ 731,388
Gross Unrealized Gains	0	0
Gross Unrealized Losses more than 12 months	(221,964)	0
Gross Unrealized Losses less than 12 months	(240,000)	(221,964)
Market or Fair Value	269,424	509,424
Equity position in Alpha Lujo, Inc.
Cost	251,388	251,388
Gross Unrealized Gains	0	0
Gross Unrealized Losses more than 12 months	(221,964)	0
Gross Unrealized Losses less than 12 months	0	(221,964)
Market or Fair Value	29,424	29,424
Equity position in Arem Pacific Corporation
Cost	480,000	480,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses more than 12 months	0	0
Gross Unrealized Losses less than 12 months	(240,000)	0
Market or Fair Value	$ 240,000	$ 480,000

7. INVESTMENTS (Details Narrati

7. INVESTMENTS (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Schedule of Investments [Abstract]
Net proceeds from sale of investments	$ 0	$ 0	$ 1,480
Realized losses from sale of investments	0	0	5,178
Unrecognized gain (loss) on investments	(240,000)	5,300,633	(1,376,540)
Impairment of investments	$ 0	$ 4,611,714	$ 123,428

8. FAIR VALUE ACCOUNTING (Detai

8. FAIR VALUE ACCOUNTING (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Equity position	$ 269,424	$ 509,424
Equity position in Alpha Lujo, Inc.
Equity position	29,424	29,424
Equity position in Arem Pacific Corporation Member
Equity position	240,000	480,000
Level 1
Equity position	0	0
Level 1 | Equity position in Alpha Lujo, Inc.
Equity position	0	0
Level 1 | Equity position in Arem Pacific Corporation Member
Equity position	0	0
Level 2
Equity position	269,424	509,424
Level 2 | Equity position in Alpha Lujo, Inc.
Equity position	29,424	29,424
Level 2 | Equity position in Arem Pacific Corporation Member
Equity position	240,000	480,000
Level 3
Equity position	0	0
Level 3 | Equity position in Alpha Lujo, Inc.
Equity position	0	0
Level 3 | Equity position in Arem Pacific Corporation Member
Equity position	$ 0	$ 0

8. FAIR VALUE ACCOUNTING (Det48

8. FAIR VALUE ACCOUNTING (Details Narrative) - shares	Dec. 31, 2017	Dec. 31, 2016
Equity position in Arem Pacific Corporation Member
Shares held by the company	8,000,000	8,000,000
Equity position in Alpha Lujo, Inc.
Shares held by the company	2,942,350	2,942,350
Equity position in Wonder International Education & Investment Group Corporation
Shares held by the company	2,057,131	2,057,131

9. INTANGIBLE ASSETS (Details)

9. INTANGIBLE ASSETS (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Total intangibles, net	$ 12,419,692	$ 14,092,581
Patents, Knowhow & License [Member]
Cost basis	17,674,431	17,560,496
Less: accumulated amortization	(5,325,113)	(3,539,617)
Intangible assets, gross	12,349,318	14,020,879
Software [Member]
Cost basis	158,273	125,964
Less: accumulated amortization	(87,899)	(54,262)
Intangible assets, gross	$ 70,374	$ 71,702

9. INTANGIBLE ASSETS (Details 1

9. INTANGIBLE ASSETS (Details 1) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Intangible Assets Details 1Abstract
2,018	$ 1,788,814
2,019	1,787,586
2,020	1,784,335
2,021	1,778,866
2022 and thereafter	5,280,091
Intangibles, net	$ 12,419,692	$ 14,092,581

9. INTANGIBLE ASSETS (Details N

9. INTANGIBLE ASSETS (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Amortization expense	$ 1,790,258	$ 1,784,208	$ 1,521,629
Software [Member]
Intangible assets estimated useful life	5 years
Patents, Knowhow & License [Member] | Minimum [Member]
Intangible assets estimated useful life	5 years
Patents, Knowhow & License [Member] | Maximum [Member]
Intangible assets estimated useful life	10 years

10. LEASES (Details)

10. LEASES (Details)	Dec. 31, 2017USD ($)
Leases Details
2,018	$ 3,062,842
2,019	2,822,735
2,020	2,627,027
2,021	2,547,990
2022 and thereafter	12,623,886
Total	$ 23,684,480

10. LEASES (Details Narrative)

10. LEASES (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Leases Details Narrative
Rent expense under operating leases	$ 4,345,893	$ 1,043,968	$ 1,043,833

11. RELATED PARTY TRANSACTIONS

11. RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Related Party Transactions Details Narrative
Director fees	$ 25,882	$ 3,082
Due from officers	$ 8,531	$ 0

12. EQUITY (Details)

12. EQUITY (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Total number of shares purchased	426,794	0
Average price paid per share	$ 9.32
Total number of shares purchased as part of publicly announced plans or programs	426,794
Maximum dollar value of shares that may yet be purchased under the plans or programs	$ 6,022,071
June 9, 2017 - June 30, 2017
Total number of shares purchased	170,169
Average price paid per share	$ 7.98
Total number of shares purchased as part of publicly announced plans or programs	170,169
July 1, 2017 - September 30, 2017
Total number of shares purchased	114,156
Average price paid per share	$ 9.51
Total number of shares purchased as part of publicly announced plans or programs	114,156
October 1, 2017 - December 31, 2017
Total number of shares purchased	142,469
Average price paid per share	$ 10.77
Total number of shares purchased as part of publicly announced plans or programs	142,469

12. EQUITY (Details Narrative)

12. EQUITY (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Notes to Financial Statements
Expense associated with stock options awards	$ 4,512,192	$ 4,742,920	$ 7,182,118
Restricted common stock issuances	$ 833,019	$ 709,497	$ 410,320
Underlying exercised shares	57,400	196,185	152,404
Restricted common stock issued to directors	68,446	24,660	6,253
Treasury stock purchase	426,794	0	0
Treasury stock purchase, amount	$ 3,977,929	$ 0	$ 0

13. COMMITMENTS AND CONTINGEN57

13. COMMITMENTS AND CONTINGENCIES (Details)	Dec. 31, 2017USD ($)
Notes to Financial Statements
Contracts for acquisition of plant and equipment being or to be executed	$ 1,444,449

14. STOCK BASED COMPENSATION (D

14. STOCK BASED COMPENSATION (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Ending Balance	1,892,189
Equity Option [Member]
Beginning Balance	1,607,815	1,952,648
Granted	547,793	309,382
Forfeited	(206,019)	(458,030)
Exercised	(57,400)	(152,404)
Ending Balance	1,892,189	1,607,815	1,952,648
Vested and exercisable	1,299,940
Weighted Average Exercise Price, Outstanding Begining Balance	$ 12.59	$ 12.42
Weighted Average Exercise Price, Granted	11.34	18.65
Weighted Average Exercise Price, Forfeited	20.68	19.45
Weighted Average Exercise Price, Exercised	5.37	4.51
Weighted Average Exercise Price, Outstanding Ending Balance	11.54	$ 12.59	$ 12.42
Weighted Average Exercise Price, Vested and exercisable	$ 10.52
Weighted-Average Remaining Contractual Term, Outstanding	7 years	7 years 3 months 18 days	7 years 9 months 18 days
Weighted-Average Remaining Contractual Term, Vested and exercisable	6 years 1 month 6 days
Aggregate Intrinsic Value, Outstanding	$ 4,909,194	$ 6,355,072	$ 17,701,962
Aggregate Intrinsic Value, Vested and exercisable	$ 4,619,527

14. STOCK BASED COMPENSATION 59

14. STOCK BASED COMPENSATION (Details 1)	Dec. 31, 2017shares
Number of Shares Outstanding	1,892,189
Outstanding stock options,Exerciseable	1,299,940
$3.00 - $4.95 [Member]
Number of Shares Outstanding	185,547
Outstanding stock options,Exerciseable	185,547
$5.00 - $9.19 [Member]
Number of Shares Outstanding	569,204
Outstanding stock options,Exerciseable	510,768
$9.20 + [Member]
Number of Shares Outstanding	1,137,438
Outstanding stock options,Exerciseable	603,625

14. STOCK BASED COMPENSATION 60

14. STOCK BASED COMPENSATION (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Stock-based compensation	$ 4,512,192	$ 4,742,920	$ 7,182,117
Compensation cost related to restricted stock grants	833,019	$ 709,497	$ 410,320
Unrecognized compensation cost related to non-vested stock option awards	$ 4,362,541
Non-vested stock option awards	592,249
Unrecognized compensation cost related to non-vested restricted stock awards	$ 385,331
Non-vested restricted stock	34,105
Weighted-average period for the stock option awards	2 years 3 months 14 days
Weighted-average period for the restricted stock awards	1 year 4 months 13 days
Shares issued under 2011, 2013 and 2014 Incentive Plan	547,793	309,382	721,779
Grant date fair value of the options	$ 460,926	$ 3,811,362	$ 13,687,655
Minimum expected volatility	85.41%	88.44%	88.41%
Maximum expected volatility	89.62%	90.03%	99.27%
Expected lives	6 years	6 years	6 years
Minimum Risk-free interest rate	1.86%	1.07%	1.39%
Maximum Risk-free interest rate	2.29%	2.17%	1.92%
Cash received from option exercises under share-based payment	$ 308,371	$ 885,680	$ 682,303
Minimum [Member]
Stock exercise price	$ 5.30	$ 12.13	$ 12.91
Maximum [Member]
Stock exercise price	$ 13.20	$ 40	$ 38.40

15. NET LOSS PER SHARE (Details

15. NET LOSS PER SHARE (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Net loss per share :
Net loss	$ (6,922,585)	$ (6,202,214)	$ (6,203,518)	$ (6,161,993)	$ (6,139,761)	$ (10,661,220)	$ (7,197,282)	$ (4,210,113)	$ (25,490,310)	$ (28,208,376)	$ (19,447,721)
Weighted average shares of common stock									14,345,604	13,507,408	11,472,306
Dilutive effect of stock options									0	0	0
Restricted stock vested not issued									0	0	0
Common stock and common stock equivalents									14,345,604	13,507,408	11,472,306
Net loss per basic share	$ (0.48)	$ (0.43)	$ (0.43)	$ (0.43)	$ (0.43)	$ (0.75)	$ (0.52)	$ (0.35)	$ (1.78)	$ (2.09)	$ (1.70)
Net loss per diluted share	$ (0.48)	$ (0.43)	$ (0.43)	$ (0.43)	$ (0.43)	$ (0.75)	$ (0.52)	$ (0.35)	$ (1.78)	$ (2.09)	$ (1.70)

16. INCOME TAXES (Details)

16. INCOME TAXES (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Current:
US federal	$ 0	$ 0	$ 733,158
US state	(2,450)	(4,093)	(4,557)
Foreign	0	0	0
Total current tax (credit) expense	(2,450)	(4,093)	728,601
Deferred:
Federal	0	0	0
State	0	0	0
Foreign	0	0	0
Total deferred tax expense	0	0	0
Total income tax (credit) expense	$ (2,450)	$ (4,093)	$ 728,601

16. INCOME TAXES (Details 1)

16. INCOME TAXES (Details 1) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Deferred tax assets:
Net operating loss carry forwards (offshore)	$ 5,448,339	$ 3,827,747
Net operating loss carry forwards (US)	3,864,824	4,496,655
Accruals (offshore)	588,277	280,756
Accrued compensation (US)	83,071	25,168
Stock-based compensation (US)	2,315,801	3,018,905
Investments (US)	1,893,532	3,673,382
Credits (US)	217,329	97,504
Property and equipment	123	0
Goodwill & intangibles	49,653	33,079
Subtotal	14,460,949	15,453,196
Less: valuation allowance	(14,460,949)	(15,452,737)
Total deferred tax assets	0	459
Deferred tax liabilities:
Property and equipment	0	(459)
Subtotal	0	(459)
Net deferred tax asset	$ 0	$ 0

16. INCOME TAXES (Details 2)

16. INCOME TAXES (Details 2)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Effective Tax Rate Reconciliation
Income tax provision at statutory rate	35.00%	35.00%	35.00%
State income taxes, net of federal benefit	0.00%	0.00%	0.00%
Rate deduction	(20.00%)	0.00%	0.00%
Foreign rate differential	(13.00%)	(9.00%)	(12.00%)
Other permanent difference	(2.00%)	(2.00%)	(4.00%)
Change in valuation allowance	0.00%	(24.00%)	(15.00%)
Total tax (credit) expense	0.00%	0.00%	4.00%

16. INCOME TAXES (Details Narra

16. INCOME TAXES (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Effective tax rate	0.00%	0.00%	4.00%
U.S Federal [Member]
Net operating loss carryforwards	$ 16,000,000
Effective tax rate	21.00%
U.S. State [Member]
Net operating loss carryforwards	$ 6,000,000
Chinese [Member]
Net operating loss carryforwards	$ 14,000,000
Losses expiration period	Dec. 31, 2022
Chinese [Member] | Minimum [Member]
Effective tax rate	15.00%
Chinese [Member] | Maximum [Member]
Effective tax rate	25.00%
Hong Kong [Member]
Effective tax rate	16.50%

20. UNAUDITED QUARTERLY FINAN66

20. UNAUDITED QUARTERLY FINANCIAL INFORMATION (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Unaudited Quarterly Financial Information Details
Net sales and revenue	$ 68,691	$ 106,787	$ 62,914	$ 98,425	$ 57,828	$ 10,012	$ 71,599	$ 488,491	$ 336,817	$ 627,930	$ 2,505,423
Gross Profit/(Loss)	37,266	51,493	24,817	61,023	33,319	884	(251,988)	(14,702)	174,599	(232,487)
Net loss	$ (6,922,585)	$ (6,202,214)	$ (6,203,518)	$ (6,161,993)	$ (6,139,761)	$ (10,661,220)	$ (7,197,282)	$ (4,210,113)	$ (25,490,310)	$ (28,208,376)	$ (19,447,721)
Net loss per share :
Basic	$ (0.48)	$ (0.43)	$ (0.43)	$ (0.43)	$ (0.43)	$ (0.75)	$ (0.52)	$ (0.35)	$ (1.78)	$ (2.09)	$ (1.70)
Diluted	$ (0.48)	$ (0.43)	$ (0.43)	$ (0.43)	$ (0.43)	$ (0.75)	$ (0.52)	$ (0.35)	$ (1.78)	$ (2.09)	$ (1.70)