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Long-Term Investments

12 Months Ended

Dec. 31, 2020

6. LONG-TERM INVESTMENTS

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

	Ownership percentage
	December 31,			December 31,			Accounting
Name of related party	2020			2019			treatments
Braingenesis Biotechnology Co., Ltd.		0.17	%		0.17	%	Cost Method
Genepharm Biotech Corporation		0.70	%		0.72	%	Cost Method
BioHopeKing Corporation		5.90	%		7.13	%	Cost Method
BioFirst Corporation		15.99	%		15.89	%	Equity Method
Rgene Corporation		31.62	%		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:

	December 31, 2020		December 31, 2019

Non-marketable Cost Method Investments, net
Braingenesis Biotechnology Co., Ltd.	$	7,853	$	7,367
Genepharm Biotech Corporation		23,974		22,493
BioHopeKing Corporation		890,564		1,998,310
Sub total		922,391		2,028,170
Equity Method Investments, net
BioFirst Corporation		268,336		1,336,449
Rgene Corporation		-		-
Total	$	1,190,727	$	3,364,619

(a)	BioFirst Corporation (the "BioFirst"):

The Company holds an equity interest in BioFirst Corporation, 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 December 31, 2020 and 2019, the Company owns 15.99% 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

	December 31, 2020		December 31, 2019

Current Assets	$	1,299,822	$	1,350,701
Noncurrent Assets		2,540,041		7,450,032
Current Liabilities		1,986,340		2,060,460
Noncurrent Liabilities		73,197		78,888
Stockholders' Equity		1,780,326		6,661,385

Statement of operation

	Year Ended December 31,
	2020			2019

Net sales	$	257,235		$	43,975
Gross profit		10,121			(37,160	)
Net loss		(5,401,074	)		(972,303	)
Share of losses from investments accounted for using the equity method		(1,168,733	)		(210,086	)

(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 BioLite Inc. 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 December 31, 2020 and 2019, the Company owns 31.62% 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

	December 31, 2020			December 31, 2019

Current Assets	$	123,958		$	82,254
Noncurrent Assets		412,342			62,768
Current Liabilities		1,392,756			312,950
Noncurrent Liabilities		38,953			-
Shareholders' Deficit		(895,409	)		(167,928	)

Statement of operations

	Year Ended December 31,
	2020			2019

Net sales	$	16,595		$	-
Gross Profit		(335,735	)		-
Net loss		(641,636	)		(53,877	)
Share of loss from investments accounted for using the equity method		-			-

(4)

Disposition of long-term investment

During the year ended December 31, 2020, the Company sold 218,000 shares of common stock of BioHopeKing Corporation at price of NT$24, equivalent $0.85, to several individuals, and the percentage of ownership decreased to 5.90% as of December 31, 2020. As a result of the transactions, the Company recognized investment loss of $40,589 and impairment loss of $961,217 for the same period.

(5)

Losses on Equity Investments

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

	Year Ended December 31,
	2020			2019

Share of equity method investee losses	$	(1,168,733	)	$	(210,086	)