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Long-Term Investments

6 Months Ended

Jun. 30, 2024

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	2024			2023			treatments
Braingenesis Biotechnology Co., Ltd.		0.17	%		0.17	%	Cost Method
Genepharm Biotech Corporation		0.67	%		0.67	%	Cost Method
BioHopeKing Corporation		5.90	%		5.90	%	Cost Method
ForSeeCon Corporation		19.78	%		-	%	Cost Method
BioFirst Corporation		18.68	%		18.68	%	Equity Method
Rgene Corporation		26.65	%		26.65	%	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
ForSeeCon Corporation		Collaborating with the Company to develop and commercialize ophthalmic medical devices (referring to Note 4, Collaborative Agreements)
BioFirst Corporation		Loaned from investee and provides research and development support service
Rgene Corporation		Collaborating with the Company to develop and commercialize drugs
BioLite Japan K.K.		Prepaid investment for a Joint Venture

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

	June 30, 2024		December 31, 2023
	(Unaudited)
Non-marketable Cost Method Investments, net
Braingenesis Biotechnology Co., Ltd.	$	6,794	$	7,213
Genepharm Biotech Corporation		20,742		22,021
BioHopeKing Corporation		770,487		818,018
ForSeeCon Corporation (See Note 4)		-		-
Sub total		798,023		847,252
Equity Method Investments, net
BioFirst Corporation		1,579,526		1,680,488
Rgene Corporation		-		-
Total	$	2,377,549	$	2,527,740

(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, 2024 and December 31, 2023, the Company owns 18.68% and 18.68% common stock shares of BioFirst, respectively. The Company made a prepayment for equity investment in BioFirst to purchase additional shares to be issued by BioFirst in the aggregate amount of $2,688,578, 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 was $1,895,556, which is a portion of the prepayment as of December 31, 2022, and was converted into 994,450 shares of BioFirst stock. As of June 30, 2024, the amount of prepayment for long-term investments in BioFirst is $1,124,842.

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

Balance Sheets

	June 30, 2024			December 31, 2023
	(Unaudited)
Current Assets	$	1,676,014		$	1,451,877
Non-current Assets		606,553			686,206
Current Liabilities		3,063,359			2,286,058
Non-current Liabilities		105,548			347,193
Stockholders’ Equity (Deficit)		(886,340	)		(495,168	)

Statement of Operations

	Six months Ended June 30,
	2024			2023
	(Unaudited)
Net sales	$	358		$	-
Gross profit		217			-
Net loss		(426,599	)		(788,788	)
Share of losses from investments accounted for using the equity method		79,057			-

(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, 2024 and December 31, 2023, the Company owns 26.65% and 26.65% Common Stock shares of Rgene, respectively.

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

Balance Sheets

	June 30, 2024			December 31, 2023
	(Unaudited)
Current Assets	$	254,967		$	50,538
Non-current Assets		3,258,797			250,716
Current Liabilities		2,508,301			2,591,960
Non-current Liabilities		-			811
Shareholders’ Deficit		(1,005,463	)		(2,291,517	)

Statement of Operations

	Six months Ended June 30,
	2024			2023
	(Unaudited)
Net sales	$	-		$	-
Gross Profit		-			-
Net loss		(78,161	)		(155,873	)
Share of loss from investments accounted for using the equity method		-			-

(c)	BioLite Japan K.K. (BioLite JP)

In October 2021, the Company, Lucidaim Co., Ltd., a Japanese corporation (“Lucidaim,” together with the Company, the “Shareholders”), and BioLite Japan K.K., a Japanese corporation (“BioLite JP”) entered into a Joint Venture Agreement. BioLite JP is a private limited company incorporated on December 18, 2018. The business of the joint venture is the research and development of drugs, medical device and digital media, investment, fund running and consulting, distribution and marketing of supplements carried on by BioLite JP and its subsidiaries in Japan, or any other territory or businesses. At the date of the Agreement, BioLite JP has 10,000 ordinary shares authorized, with 3,049 ordinary shares issued and outstanding (the “Ordinary Shares”). Pursuant to the Agreement and the related share transfer agreement, Lucidaim shall own 1,555 Ordinary Shares (51%) and the Company shall own 1,494 Ordinary Shares (49%). The Company paid $150,000 towards the setup of the joint venture; BioLite Japan’s other shareholder also paid $150,000 after the Letter of Intent was signed. This prepayment is booked in prepayment for investment.

(4)	Disposition of long-term investment

During the six months ended June 30, 2024 and 2023, 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,
	2024		2023
	(Unaudited)
Share of equity method investee losses	$	79,057	$	-