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Long-Term Investments

12 Months Ended

Dec. 31, 2022

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	2022			2021			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		21.77	%		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 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, 2022		December 31, 2021
Non-marketable Cost Method Investments, net
Braingenesis Biotechnology Co., Ltd.	$	7,169	$	7,941
Genepharm Biotech Corporation		21,887		24,244
BioHopeKing Corporation		813,014		900,570
Subtotal		842,070		932,755
Equity Method Investments, net
BioFirst Corporation		-		-
Rgene Corporation		-		-
Total	$	842,070	$	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 December 31, 2022 and 2021, the Company owns 21.77% and 21.77% common stock shares of BioFirst, respectively. During year ended December 31, 2021, 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 $618,150, recorded as prepayment for long-term investments as of December 31, 2022. The amount due from BioFirst has been reclassified as prepayment for investment.

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

Balance Sheet

	December 31, 2022		December 31, 2021
Current Assets	$	1,543,151	$	2,205,669
Noncurrent Assets		739,472		959,454
Current Liabilities		2,663,051		2,909,703
Noncurrent Liabilities		103,447		32,522
Stockholders’ Equity		483,874		222,898

Statement of operation

	Year Ended December 31,
	2022			2021
Net sales	$	30,162		$	26,693
Gross profit		8,239			8,348
Net loss		(1,274,539	)		(2,276,892	)
Share of losses from investments accounted for using the equity method		-			(269,844	)

(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, 2022 and 2021, the Company owns 28.85% and 28.85% common stock shares of Rgene, respectively.

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

Balance Sheets

	December 31, 2022			December 31, 2021
Current Assets	$	68,302		$	73,452
Noncurrent Assets		303,893			374,423
Current Liabilities		2,478,868			1,934,786
Noncurrent Liabilities		2,441			-
Shareholders’ Deficit		(2,481,309	)		(1,486,911	)

Statement of operations

	Year Ended December 31,
	2022			2021
Net sales	$	-		$	-
Gross Profit		-			-
Net loss		(1,550,123	)		(576,514)
Share of loss from investments accounted for using the equity method		-			-

(4)

Disposition of long-term investment

During the years ended December 31, 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:

	Year Ended December 31,
	2022		2021
Share of equity method investee losses	$	-	$	(269,844	)