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Equity
 6 Months Ended
Jun. 30, 2024
Equity [Abstract]  
EQUITY

12. EQUITY 

 

On January 3, 2023, the Company issued 22,341 shares (post-split) of common stock to a consultant for providing consulting services on listing to NASDAQ in 2021.

 

On July 27, 2023, the Company entered into that certain securities purchase agreement. relating to the offer and sale of 300,000 shares of common stock and 200,000 pre-funded warrants, at an exercise price of $0.001 per share, in a registered direct offering. Pursuant to the Purchase Agreement, the Company agreed to sell the Shares and/or Pre-funded Warrants at a per share purchase price of $3.50, for gross proceeds of $1,750,000, before deducting any estimated offering expenses. On August 1, 2023, the pre-funded warrants were exercised.

 

On August 14, 2023, the Company entered into a cooperation agreement with Zhonghui. Pursuant thereto, the Company acquired 20% of the ownership of a property and the parcel of the land owned by Zhonghui in Leshan, Sichuan, China. During the third quarter of 2023, the Company issued to Zhonghui, an aggregate of 370,000 shares of the Company’s common stock, at a per share price of $20.

 

On January 27, 2024, the Company granted 1,302,726 restricted shares to its employees and directors under the 2016 Equity Incentive Plan, with an issuance date of February 2, 2024. These shares are subject to a three-year restriction period.

 

On May 24, 2024, the Company issued 200,000 shares of common stock to a consultant for providing business and funding opportunities.

 

Noncontrolling Interests

 

On March 14, 2024, AiBtl BioPharma Inc. issued 1,610,700 AiBtl BioPharma Inc.’s common stocks to a land acquisition transaction in Taiwan, including the consulting fee of $383,500 and the cost of land of $7,670,000. Due to certain administrative processes and restrictions, AiBtl BioPharma Inc. has not acquired ownership of the land and no asset was recognized. AiBtl BioPharma Inc. is in the process of resolving this issue.

 

On April 11, 2024 and May 10, 2024, AiBtl BioPharma Inc. entered into share purchase agreements with an investor to sell 100,000 shares of AiBtl BioPharma Inc. common stocks at $1.00 per share. As of the issuance date of the interim financial statements, the stock has not been issued.

 

Lind Offerings and Repayments

 

On February 23, 2023, in connection with the issuance of the Lind Note (referring to Note 7), the Company also issued Lind a common stock purchase warrant to purchase up to 529,167 shares (post-split) of the Company’s common stock at an initial exercise price of $10.5 per share, subject to adjustment. During the period ended March 31, 2024, the Company has been repaying Lind with securities for 751,795 shares, totaling $681,000. During the three months ended June 30, 2024, the Company further repaid Lind with securities for 153,508 shares of common stock, totaling $130,175. As of June 30, 2024, this convertible note was fully repaid. During July 2023, the warrant exercise price was reset to $3.5 in accordance with the issuance of common stock in relation to securities purchase agreement in July 2023. On May 22, 2024, the exercise price of these warrants was reset to $0.75 along with the immediate exercise of existing warrants and issuance of the New Warrants. As of June 30, 2024, these warrants were fully exercised.

 

On November 17, 2023, in connection with the issuance of the 2nd Lind Note (referring to Note 7, Convertible Notes Payable), Lind also received a 5-year, common stock purchase warrant to purchase up to 1,000,000 shares of the Company’s common stock at an initial exercise price of $2 per share for a period of 5 years. The warrants were valued using the Black-Scholes model and the fair value was determined to be $480,795, which was recorded as a debt discount.

 

On January 17, 2024, in connection with the issuance of the 3rd Lind Note (referring to Note 7, Convertible Notes Payable), Lind also received a 5-year, common stock purchase warrant to purchase up to 1,000,000 shares of the Company’s common stock at an initial exercise price of $2 per share.

 

On May 22, 2024, the Company and Lind entered into a letter agreement, pursuant to which Lind will exercise, for cash, 1,000,000 of its Pre-Existing Warrants (all of the warrants issued to Lind on February 23, 2023, November 17, 2023 and January 17, 2024 are hereinafter referred to as the “Pre-Existing Warrants”), to purchase shares of Common Stock at a reduced exercise price of $0.75 per share. Concurrently, the exercise price of all Pre-Existing Warrants was reduced to $0.75 per share according to this agreement. Lind will also receive a new warrant to purchase 1,000,000 shares of common stock, exercisable at any time on or after the date of its issuance and until the five-year anniversary thereof, for $1.00 per share (the “New Warrant”). The fair value of the New Warrants was determined to be $925,210 using the Black-Scholes model. The New Warrant may be exercised via cashless exercise or resale pursuant to the registration statement that was declared effective. As of June 30, 2024, Lind has exercised 1,000,000 shares of Pre-Existing Warrants and received 1,000,000 shares of New Warrants according to this agreement. All warrants issued to Lind may be exercised via cashless exercise.

 

Warrants issued and outstanding in connection with above Lind convertible notes as of June 30, 2024, and their activities during the six months ended are as follows:

 

    Number of
Underlying
Shares		     Weighted-
Average
Exercise
Price
Per Share		     Weighted-
Average
Contractual
Life
Remaining
in Years		     Aggregate
Intrinsic
Value		  
Outstanding as of January 1, 2024     1,529,167     $ 0.75       4.38     $
       -
  
Issued     2,000,000     $ 0.88       4.72       -  
Exercised     (1,000,000 )     -       -       -  
Outstanding as of June 30, 2024     2,529,167     $ 0.85       4.65     $ -