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Warrants
 6 Months Ended
Jun. 30, 2019
Warrants and Rights Note Disclosure [Abstract]  
WARRANTS

14.WARRANTS

 

On April 28, 2016, the Company signed Share Purchase Agreement ("SPA") with HLI. In this SPA, HLI is entitled with 1,000,000 warrants to acquire from the Company 1,000,000 common shares at purchase price of $2.20 per share. The new warrants will be exercisable at any time.

 

1,000,000 warrants were issued and outstanding as of June 30, 2019 and December 31, 2018

 

The fair value of the outstanding warrants was calculated using the Black Scholes Model with the following assumptions:

 

   June 30,
2019		   December 31,
2018		 
Market price per share (USD/share)  $1.23   $1.13 
Exercise price (USD/share)   2.20    2.20 
Risk free rate   1.86%   2.6%
Dividend yield   0%   0%
Expected term/Contractual life (years)   6.8.    7.3 
Expected volatility   262.47%   256.20%

 

The following is a reconciliation of the beginning and ending balances of warrants liability measured at fair value on a recurring basis using Level 3 inputs:

 

   Six months ended June 30, 
   2019   2018 
         
Beginning balance  $1,129,246   $1,729,111 
Fair value change of the issued warrants included in earnings   99,821    110,018 
Ending balance  $1,229,067   $1,839,129 

 

The following is a summary of the warrants activity:

 

   Number   Weighted
Average
Exercise Price		   Weighted Average
Remaining
Contractual Life
(Years)		 
Outstanding as of January 1, 2019   1,000,000   $2.20     
Granted   -           
Forfeited   -           
Exercised   -           
Redeemed   -           
Outstanding as of June 30, 2019   1,000,000   $2.20