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Long-Term Investments, Net

12 Months Ended

Dec. 31, 2023

Long-Term Investments, Net [Abstract]

NOTE 11 — LONG-TERM INVESTMENTS, NET

Long-term investments, net consisted of the following:

	As of December 31,
	Ownership interest			2023		Ownership interest			2022

Marketable equity securities:
Investment C		0.00	%*	$	595		0.46	%	$	2,443,593

Non-marketable equity securities:
Investment A		8.37	%		5,826,703		8.37	%		5,717,678
Investment B		3.63	%		342,000		3.63	%		513,000
Investment D		4.47	%#		16,880,384		4.92	%		16,030,943
Investment E, related party		4.00	%		522,531		4.00	%		522,557
Investment F		4.00	%		2,152,251		4.00	%		11,805,589
Total					25,723,869					34,589,767

Net carrying value				$	25,724,464				$	37,033,360

*	Less than 0.001%
#	Decrease in percentage due to share dilution

Investments in Marketable Equity Securities

Investments in marketable equity securities are accounted for at their current market value with changes in fair value recognized in net loss. Investment C was listed and publicly traded on Nasdaq Stock Exchange.

During the year ended December 31, 2023, the Company sold 993,108 shares of Investment C at the average market price of $4.01 per share, resulting with a realized gain of $1,543,543.

As of December 31, 2023 and 2022, Investment C was recorded at fair value of $595 and $2,443,593, which were traded at a closing price of $9.15 and $2.46 per share, respectively.

Investments in Non-Marketable Equity Securities

Investments in non-marketable equity securities consist of investments in limited liability companies in which the Company’s interests are deemed minor and long-term, strategic investments in companies that are in various stages of development, and investments in a close-ended partnership funds which concentrated in the healthcare sector. These investments do not have readily determinable fair values and, therefore, are reported at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer.

Management assesses each of these investments on an individual basis, subject to a periodic impairment review and considers qualitative and quantitative factors including the investee’s financial condition, the business outlook for its products and technology, its projected results and cash flow, financing transactions subsequent to the acquisition of the investment, the likelihood of obtaining subsequent rounds of financing and cash usage. The Company is not required to determine the fair value of these investments unless impairment indicators existed. When an impairment exists, the investment will be written down to its fair value by recording the corresponding charge as a component of other income (expense), net. Fair value is estimated using the best information available, which may include cash flow projections or other available market data.

Subsequently on February 5, 2024, the Company entered into a purchase and sale agreement with an independent third party to sell all of its equity interest in Investment F for a purchase price of $2.15 million and the transaction was completed on February 19, 2024.

The following table presents the movement of non-marketable equity securities as of December 31, 2023 and 2022:

	As of December 31,
	2023			2022
Balance at beginning of year	$	34,589,767		$	25,496,534
Additions		288,581			16,228,690
Adjustments:
Upward adjustments		—			2,137,021
Downward adjustments (note)		(10,092,729	)		(6,898,549	)
Foreign exchange adjustment		938,250			(2,373,929	)
Balance at end of year	$	25,723,869		$	34,589,767

Cumulative unrealized gains and losses, included in the carrying value of the Company’s non-marketable equity securities:

	As of December 31,
	2023			2022
Downward adjustments (including impairment)	$	(37,347,329	)	$	(27,254,600	)
Upward adjustments		6,209,357			6,209,357
Total	$	(31,137,972	)	$	(21,045,243	)

Investment loss, net is recorded as other expense in the Company’s consolidated statements of operations and comprehensive loss, and consisted of the following:

	For the years ended December 31,
	2023			2022
Marketable equity securities:
Unrealized gain (loss) from the changes in fair value – Investment C	$	272		$	(5,330,652	)
Realized gain from sale of Investment C		1,543,543			—

Non-marketable equity securities:
Unrealized (loss)/gains (including impairment) – Investment F		(9,922,184	)		2,137,021
Unrealized (loss) (including impairment) – Investment B		(170,545	)		(756,478	)
Unrealized (loss) (including impairment) – Investment A		—			(6,142,071	)
Dividend income		1,670,045			1,154,749
Investment loss, net	$	(6,878,869	)	$	(8,937,431	)

Note:

Downward adjustments represent unrealized loss (including impairment) of Investment B and F of $170,545 and $9,922,184 for the year ended December 31, 2023, respectively (2022: unrealized loss (including impairment) of Investment A and B of $6,142,071, and $756,478 respectively).