Company: AWX
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001437749-25-033887
Chunk: 18

Company: AVALON HOLDINGS CORP
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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 of a private placement offering, Avalon is not the majority owner of AWMS Holdings, LLC. At September 30, 2025 and December 31, 2024, respectively, Avalon owns approximately47% of AWMS Holdings, LLC. In accordance with ASC 810-10 and related amendment, due to the managerial control of American Water Solutions, LLC, AWMS Holdings, LLC is a VIE, and the financial statements of AWMS Holdings, LLC and subsidiaries are included in Avalon’s consolidated financial statements. ASC 810-10 requires noncontrolling interests to be reported as a separate component of equity. The amount of net loss attributable to the noncontrolling interest is recorded in “net loss attributable to noncontrolling interest” in our Condensed Consolidated Statements of Operations. During both the three months ended September 30, 2025 and 2024, net loss attributable to the noncontrolling interest in AWMS Holdings, LLC was $36,000 and $11,000, respectively. During the nine months ended September 30, 2025 and 2024, net loss attributable to the noncontrolling interest in AWMS Holdings, LLC was $126,000 and $49,000, respectively.

Avalon Med Spa, LLC

In March 2021, Avalon created a new Ohio limited liability company, Avalon Med Spa, LLC. Avalon Med Spa, LLC provides elective appearance improving nonsurgical aesthetic services under the supervision of a licensed physician. Avalon Med Spa, LLC, offers investment opportunities to accredited investors by selling membership units through private placement offerings. The monies received from these offerings, along with internally contributed capital, are used to purchase medical spa equipment and construct the facilities necessary for operation. Avalon operates and manages all decisions regarding the medical spa operations for a percentage of the gross revenues.

In 2021, Avalon made a capital contribution totaling $0.4million, which included cash and certain equipment, in exchange for membership units of Avalon Med Spa, LLC. Through a private placement offering for the purchase of membership units, Avalon Med Spa, LLC raised $0.4million from accredited investors in August 2021. In March 2022, both Avalon and accredited investors made additional capital contributions of $0.1million, respectively. An outside director of Avalon, who qualified as an accredited investor, invested less than10% of the total investment in Avalon Med Spa, LLC. Avalon is the majority owner of