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Long-Term Investments

9 Months Ended

Sep. 30, 2023

5. LONG-TERM INVESTMENTS

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

	Ownership percentage
	September 30,			December 31,			Accounting
Name of related party	2023			2022			treatments
Braingenesis Biotechnology Co., Ltd.		0.22	%		0.22	%	Cost Method
Genepharm Biotech Corporation		0.92	%		0.92	%	Cost Method
BioHopeKing Corporation		8.03	%		8.03	%	Cost Method
BioFirst Corporation		23.53	%		21.77	%	Equity Method
Rgene Corporation		28.85	%		28.85	%	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 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:

	September 30, 2023		December 31, 2022
	(Unaudited)
Non-marketable Cost Method Investments, net
Braingenesis Biotechnology Co., Ltd.	$	6,838	$	7,169
Genepharm Biotech Corporation		20,876		21,887
BioHopeKing Corporation		775,491		813,014
Sub total		803,205		842,070
Equity Method Investments, net
BioFirst Corporation		1,874,190		-
Rgene Corporation		-		-
Total	$	2,677,395	$	842,070

(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 September 30, 2023 and December 31, 2022, the Company owns 23.53% and 21.77% common stock shares of BioFirst, respectively. The Company made a prepayment for equity investment in BioFirst to purchase additional 317,000 shares to be issued by BioFirst in the aggregate amount of $618,150, recorded as prepayment for long-term investments as of December 31, 2022. On July 19, 2023, the Company successfully completed the registration process for this Investment. The initial prepayment amounted to $589,620, transferred into 317,000 shares. In addition, The Company also converted a loan of $1,284,570 into 677,450 shares of BioFirst.

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

Balance Sheets

	September 30, 2023			December 31, 2022
	(Unaudited)
Current Assets	$	1,690,060		$	1,543,152
Non-current Assets		651,221			739,472
Current Liabilities		2,236,708			2,663,051
Non-current Liabilities		366,634			103,447
Stockholders’ Equity (Deficit)		(262,061	)		(483,874	)

Statement of Operations

	Nine months Ended September 30,
	2023			2022
	(Unaudited)
Net sales	$	739		$	23,079
Gross profit		291			5,747
Net loss		(986,181	)		(993,643	)
Share of losses from investments accounted for using the equity method		-			-

(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 September 30, 2023 and December 31, 2022, the Company owns 28.85% and 28.85% Common Stock shares of Rgene, respectively. On March 31, 2023, 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

	September 30, 2023			December 31, 2022
	(Unaudited)
Current Assets	$	56,091		$	68,302
Non-current Assets		239,594			303,893
Current Liabilities		2,407,204			2,478,868
Non-current Liabilities		1,465			2,441
Shareholders’ Deficit		(2,112,984	)		(2,109,114	)

Statement of Operations

	Nine months Ended September 30,
	2023			2022
	(Unaudited)
Net sales	$	-		$	-
Gross Profit		-			-
Net loss		(231,445	)		(450,995	)
Share of loss from investments accounted for using the equity method		-			-

(4)	Disposition of long-term investment

During the nine months ended September 30, 2023 and 2022, 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:

	Nine months Ended September 30,
	2023		2022
	(Unaudited)
Share of equity method investee losses	$	-	$	-