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Long-Term Investments

6 Months Ended

Jun. 30, 2022

6. 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	2022			2021			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		Collaborating with the Company to develop and commercialize drugs
Rgene Corporation		Collaborating with the Company to develop and commercialize drugs

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

	June 30, 2022		December 31, 2021
	(Unaudited)
Non-marketable Cost Method Investments, net
Braingenesis Biotechnology Co., Ltd.	$	7,411	$	7,941
Genepharm Biotech Corporation		22,628		24,244
BioHopeKing Corporation		840,532		900,570
Sub total		870,571		932,755
Equity Method Investments, net
BioFirst Corporation		-		-
Rgene Corporation		-		-
Total	$	870,571	$	932,755

(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 June 30, 2022 and December 31, 2021, the Company owns 15.99% and 15.99% common stock shares of BioFirst, respectively. The Company made prepayment for equity investment in BioFirst to purchase additional 317,000 shares to be issued by BioFirst in the aggregate amount of $639,072 and $684,720, recorded as prepayment for long-term investments as of June 30, 2022 and December 31, 2021, respectively.

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

Balance Sheet

	June 30, 2022			December 31, 2021
	(Unaudited)
Current Assets	$	2,065,236		$	2,205,669
Non-current Assets		877,630			959,454
Current Liabilities		3,501,538			2,909,703
Non-current Liabilities		113,615			32,522
Stockholders’ Equity (Deficit)		(672,287	)		222,898

Statement of Operations

	Six Months Ended June 30,
	2022			2021
	(Unaudited)
Net sales	$	15,398		$	13,500
Gross profit		3,375			3,203
Net loss		(872,254	)		(465,704	)
Share of losses from investments accounted for using the equity method		-			(101,382	)

(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 account 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, 2022 and December 31, 2021, the Company owns 31.62% and 31.62% Common Stock shares of Rgene, respectively. On June 30, 2022, Dr. Tsung-Shann Jiang has been elected to become the Chairman of Rgene.

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

Balance Sheets

	June 30, 2022			December 31, 2021
	(Unaudited)
Current Assets	$	1,227,904		$	73,452
Noncurrent Assets		330,231			374,423
Current Liabilities		2,221,846			1,934,786
Noncurrent Liabilities		-			-
Shareholders’ Deficit		(663,711	)		(1,486,911	)

Statement of Operations

	Six Months Ended June 30,
	2022			2021
	(Unaudited)
Net sales	$	-		$	-
Gross Profit		-			-
Net loss		(295,517	)		(228,451	)
Share of loss from investments accounted for using the equity method		-			-

(4)	Disposition of long-term investment

During the three and six months ended June 30, 2022 and 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:

	Six Months Ended June 30,
	2022		2021
	(Unaudited)
Share of equity method investee losses	$	-	$	(101,382	)