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Long-Term Investments

3 Months Ended

Mar. 31, 2020

6. LONG-TERM INVESTMENTS

(1)	The ownership percentages of each investee are listed as follows:

	Ownership percentage
	March 31,			December 31,			Accounting
Name of related party	2020			2019			treatments
Braingenesis Biotechnology Co., Ltd.		0.17	%		0.17	%	Cost Method
Genepharm Biotech Corporation		0.72	%		0.72	%	Cost Method
BioHopeKing Corporation		7.13	%		7.13	%	Cost Method
BioFirst Corporation		15.89	%		15.89	%	Equity Method
Rgene Corporation		31.61	%		31.61	%	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:

	March 31, 2020		December 31, 2019
Non-marketable Cost Method Investments, net	(Unaudited)
Braingenesis Biotechnology Co., Ltd.	$	7,301	$	7,367
Genepharm Biotech Corporation		22,291		22,493
BioHopeKing Corporation		1,980,361		1,998,310
Sub total		2,009,953		2,028,170
Equity Method Investments, net
BioFirst Corporation		1,254,247		1,336,449
Rgene Corporation		-		-
Total	$	3,264,200	$	3,364,619

(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 March 31, 2020 and December 31, 2019, the Company owns 15.89% and 15.89% common stock shares of BioFirst, respectively.

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

Balance Sheet

	March 31, 2020		December 31, 2019
	(Unaudited)
Current Assets	$	1,235,043	$	1,350,701
Noncurrent Assets		7,238,415		7,450,032
Current Liabilities		2,105,938		2,060,460
Noncurrent Liabilities		65,847		78,888
Shareholders' Equity		6,301,673		6,661,385

Statement of operation

	Three Months Ended March 31,
	2020			2019
	(Unaudited)
Net sales	$	12,110		$	10,334
Gross profit		1,578			1,882
Net loss		(325,652	)		(307,034	)
Share of losses from investments accounted for using the equity method		(70,411	)		(66,205	)

(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 March 31, 2020 and December 31, 2019, the Company owns 31.61% and 31.61% Common Stock shares of Rgene, respectively.

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

Balance Sheets

	March 31, 2020			December 31, 2019
	(Unaudited)
Current Assets	$	136.936		$	82,254
Noncurrent Assets		161,255			62,768
Current Liabilities		462,667			312,950
Noncurrent Liabilities		62,801			-
Shareholders' Deficit		(227,277	)		(167,928	)

Statement of operations

	Three Months Ended March 31,
	2020			2019
	(Unaudited)
Net sales	$			$
Gross Profit
Net loss		(21,889	)		(22,662	)
Share of loss from investments accounted for using the equity method		-			-

(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 March 31, 2020 and December 31, 2019.

(5)	Losses on Equity Investments

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

	Three Months Ended March 31,
	2020			2019
	(Unaudited)
Share of equity method investee losses	$	(70,411	)	$	(66,205	)