XML 26 R12.htm IDEA: XBRL DOCUMENT

Long-Term Investments

3 Months Ended

Mar. 31, 2021

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	2021			2020			treatments
Braingenesis Biotechnology Co., Ltd.		0.17	%		0.17	%	Cost Method
Genepharm Biotech Corporation		0.70	%		0.70	%	Cost Method
BioHopeKing Corporation		5.90	%		5.90	%	Cost Method
BioFirst Corporation		15.99	%		15.99	%	Equity Method
Rgene Corporation		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:

	March 31, 2021		December 31, 2020

Non-marketable Cost Method Investments, net
Braingenesis Biotechnology Co., Ltd.	$	7,742	$	7,853
Genepharm Biotech Corporation		23,638		23,974
BioHopeKing Corporation		878,056		890,564
Sub total		909,436		922,391
Equity Method Investments, net
BioFirst Corporation		217,448		268,336
Rgene Corporation		-		-
Total	$	1,126,884	$	1,190,727

(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 March 31, 2021 and December 31, 2020, the Company owns 15.99% and 15.99% common stock shares of BioFirst, respectively. During the three months ended March 31, 2021, the Company made prepayment for equity investment in BioFirst to purchase additional 132,000 shares issued by BioFirst in the aggregate amount of $281,952.

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

Balance Sheet

	March 31, 2021		December 31, 2020

Current Assets	$	1,216,963	$	1,299,822
Non-current Assets		2,633,925		2,540,041
Current Liabilities		1,959,919		1,986,340
Non-current Liabilities		76,082		73,197
Stockholders’ Equity		1,814,887		1,780,326

Statement of operation

	Three Months Ended March 31,
	2021			2020

Net sales	$	12,239		$	12,110
Gross profit		7,080			1,578
Net loss		(220,855	)		(325,652	)
Share of losses from investments accounted for using the equity method		(47,791	)		(70,411	)

(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 March 31, 2021 and December 31, 2020, the Company owns 31.62% and 31.62% Common Stock shares of Rgene, respectively.

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

Balance Sheets

	March 31, 2021			December 31, 2020

Current Assets	$	107,682		$	123,958
Noncurrent Assets		395,665			412,342
Current Liabilities		1,451,387			1,392,756
Noncurrent Liabilities		28,877			38,953
Shareholders’ Deficit		(976,917	)		(895,409	)

Statement of operations

	Three Months Ended March 31,
	2021			2020

Net sales	$	-		$	-
Gross Profit		-			-
Net loss		(95,395	)		(21,889	)
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. As of March 31. 2021, there is no disposition of long-term investment.

(5)

Losses on Equity Investments

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

	Three Months Ended March 31,
	2021			2020

Share of equity method investee losses	$	(47,791	)	$	(70,411	)