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Property and Equipment
 6 Months Ended
Jun. 30, 2024
Property and Equipment [Abstract]  
PROPERTY AND EQUIPMENT

5. PROPERTY AND EQUIPMENT

 

Property and equipment as of June 30, 2024 and December 31, 2023 are summarized as follows:

 

   June 30,
2024		   December 31,
2023		 
   (Unaudited)     
Land  $342,300   $363,416 
Construction-in-Progress   7,400,000    7,400,000 
Buildings and leasehold improvements   2,220,361    2,227,431 
Machinery and equipment   1,132,194    1,138,675 
Office equipment   164,995    174,797 
    11,259,850    11,304,319 
Less: accumulated depreciation   (3,330,729)   (3,335,041)
Property and equipment, net  $7,929,121   $7,969,278 

 

Construction-in-progress consists of the property recently acquired in Chengdu, China. The Company entered into a cooperation agreement on August 14, 2023, with Zhong Hui Lian He Ji Tuan, Ltd. (the “Zhonghui”). Pursuant thereto, the Company acquired 20% of the ownership of certain property and a parcel of the land, with a view to jointly develop the property into a healthcare center for senior living, long-term care, and medical care in the areas of ABVC’s special interests, such as Ophthalmology, Oncology, and Central Nervous Systems. The plan is to establish a base for the China market and global development of these interests.

 

The valuation of such property is US$37,000,000; based on the Company’s 20% ownership, the Company acquired the value of US$7,400,000. In exchange, the Company issued to Zhonghui an aggregate of 370,000 shares (the “Shares”) of common stock, at a per share price of $20.0. The Shares are subject to a lock-up period of one year following the closing date of the transaction. In addition, the parties agreed that, after one year following the closing of the transaction, if the market value of the Shares or the value of the Property increases or decreases, the parties will negotiate in good faith to make reasonable adjustments.

 

The asset ownership certification is in the application process. However, the Company’s ownership rights to the property and the associated land parcel, or a suitable replacement property, are safeguarded under the terms of the cooperation agreement, which is legally binding and enforceable.

 

The Construction-in-progress is planned to finish before the end of 2024.

 

Depreciation expenses were $13,305 and $6,997 for three months ended June 30, 2024 and 2023, respectively.

 

Depreciation expenses were $14,591 and $13,490 for six months ended June 30, 2024 and 2023, respectively.