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Long-Term Investments

6 Months Ended

Jun. 30, 2019

7. LONG-TERM INVESTMENTS

(1)

The ownership percentages of each investee are listed as follows:

	Ownership percentage
	June 30,			December 31,			Accounting
Name of related party	2019			2018			treatments
Braingenesis Biotechnology Co., Ltd., a Taiwan company		0.17	%		0.17	%	Cost Method
Genepharm Biotech Corporation, a Taiwan company		0.72	%		0.72	%	Cost Method
BioHopeKing Corporation, a Taiwan company		7.13	%		7.13	%	Cost Method
BioFirst Corporation, a Taiwan company		15.88	%		15.84	%	Equity Method
Rgene Corporation, a Taiwan company		31.62	%		31.62	%	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

Braingenesis Biotechnology Co., Ltd.		No specific business relationship

Genepharm Biotech Corporation		No specific business relationship

BioHopeKing Corporation		Collaborating with the Company to develop and commercialize drugs

BioFirst Corporation		Loaned from the investee and provides research and development support service

Rgene Corporation		Collaborating with the Company to develop and commercialize drugs

(3)	Long-term investment mainly consists of the following:

	June 30, 2019		December 31, 2018
Non-marketable Cost Method Investments, net		(Unaudited)
Braingenesis Biotechnology Co., Ltd.	$	7,103	$	7,213
Genepharm Biotech Corporation		21,685		22,021
BioHopeKing Corporation		1,926,513		1,956,429
Sub total		1,955,301		1,985,663
Equity Method Investments, net
BioFirst Corporation		1,380,162		1,502,506
Rgene Corporation		-		-
Total	$	3,335,463	$	3,488,169

(a)

BioFirst Corporation (the "BioFirst):

The Company holds an equity interest in BioFirst Corporation, (the "BioFirst"), accounting for its equity interest using the equity method to accounts for 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. As of June 30, 2019 and December 31, 2018, the Company owns 15.88% and 15.84% common stock shares of BioFirst, respectively.

Summarized financial information for the Company's equity method investee, BioFirst, is as follows:

Balance Sheets

	June 30, 2019		December 31, 2018
	(Unaudited)
Current Assets	$	4,058,357	$	7,551,898
Noncurrent Assets		4,510,526		1,608,460
Current Liabilities		1,707,839		1,648,206
Noncurrent Liabilities		21,563		-
Stockholders' Equity		6,839,481		7,512,152

Statements of Operations

	Six Months Ended June 30,
	2019			2018
	(Unaudited)
Net sales	$	20,446		$	21,629
Gross profit		4,214			4,584
Net loss		(543,582	)		(582,718	)
Share of losses from investments accounted for using the equity method		(117,424	)		(125,483	)

(b)

Rgene Corporation (the "Rgene")

Both Rgene and the Company are under common control by Dr. Tsung-Shann Jiang, the CEO and chairman of the Company. Since Dr. Tsung-Shann Jiang is able to exercise significant influence, but not control, over the Rgene, the Company determined to use the equity method to accounts for 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. As of June 30, 2019 and December 31, 2018, the Company owns 31.62% common stock shares of Rgene.

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

Balance Sheets

	June 30, 2019			December 31, 2018
	(Unaudited)
Current Assets	$	32,408		$	98,168
Noncurrent Assets		97,249			14,779
Current Liabilities		319,009			261,685
Noncurrent Liabilities		8,017			-
Stockholders' Equity (Deficit)		(197,369	)		(148,738	)

Statement of Operations

	Six Months Ended June 30,
	2019			2018
	(Unaudited)
Net sales	$	-		$	-
Gross profit		-			-
Net loss		(49,896	)		(138,888	)
Share of loss from investments accounted for using the equity method		-			N/A

(4)

Disposition of long-term investment

During the year ended December 31, 2018, the Company sold 552,000 shares of common stock of BioHopeKing Corporation (the "BHK") at prices ranging from NT$25, equivalent $0.82, to NT$32, equivalent $1.05, to two directors of BHK and 25 individuals. As a result of the transactions, the Company recognized investment loss of $395,476 for the same period.

On October 15, 2018 and November 2, 2018, the Company subsequently purchased an aggregate of 200,000 and 366,200 shares of common stock of BHK at NT$10, equivalent to $0.33, and NT$50, equivalent $1.64, from one of directors of BHK and eleven shareholders of BHK, respectively. The percentage of ownership accordingly increased to 7.13% as of June 30, 2019 and December 31, 2018.

(5)

Losses on Equity Investments

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

	Six Months Ended June 30,
	2019			2018
	(Unaudited)
Share of equity method investee losses	$	(117,424	)	$	(125,483	)
Impairments		-			-
Total losses on equity investments	$	(117,424	)	$	(125,483	)