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Long-Term Investment

12 Months Ended

Dec. 31, 2018

5. LONG-TERM INVESTMENT

On December 24, 2018, the Company received the remaining balance of $2,550,000 in the form of newly issued shares of Rgene’s Common Stock, at the price of NT$50 (approximately equivalent to $1.60 per share), for an aggregate number of 1,530,000 shares(See Note 4). As of December 31, 2018, the Company owns 23.90% common stock shares of Rgene, accounting for its equity interest using the equity method to its equity investment as prescribed in ASC 323, Investments—Equity Method and Joint Ventures (“ASC 323”). Equity method adjustments include the Company’s proportionate share of investee’s income or loss and other adjustments required by the equity method.

(1)

The ownership percentages of the investee are listed as follows:

	Ownership percentage
	December 31,			December 31,		Accounting
Name of related party	2018			2017		treatment
Rgene Corporation		23.90	%		N/A	Equity Method

(2)

The extent the investee relies on the company for its business are summarized as follows:

Name of related party		The extent the investee relies on the Company for its business
Rgene Corporation		Collaborating with the Company to develop and commercialize drugs

(3)

Long-term investment mainly consists of the following:

	December 31,		December 31,
	2018		2017
Equity Method Investments, net of impairment
Rgene Corporation	$	-		N/A
Total	$	-		N/A

(4)

Summarized financial information for the Company’s equity method investee, Rgene, is as follows:

Balance Sheets
	December 31, 2018			December 31, 2017
Current Assets	$	98,168			N/A
Noncurrent Assets		14,779			N/A
Current Liabilities		261,685			N/A
Shareholders’ Deficit		(148,738	)		N/A

Statements of operation
	For the Years Ended December 31,
	2018			2017
Net sales	$	-			N/A
Gross Profit		-			N/A
Net loss		(120,065	)		N/A
Share of loss from investments accounted for using the equity method		(549	)		N/A

(5)

Losses on Equity Investments

The components of losses on equity investments for each period were as follows:

	For the Years Ended December 31,
	2018			2017
Share of equity method investee losses	$	(549	)		N/A
Impairments		(2,549,451	)		N/A
Total losses on equity investments	$	(2,550,000	)		N/A