Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2020

Basis of Accounting, Policy [Policy Text Block]

Basis of consolidation

The unaudited interim condensed consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant intercompany transactions and balances between the Company and its subsidiaries are eliminated upon consolidation.

Going Concern, Policy [Policy Text Block}

Going concern

According to Accounting Standards Codification (“ASC”)

205

40,

Presentation of Financial Statements - Going Concern

(“ASC

205

40”

), management must evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within

one

year after the date that the financial statements are issued. This evaluation initially does

not

take into consideration the potential mitigating effect of management’s plans that have

not

been fully implemented as of the date the financial statements are issued. When substantial doubt exists under this methodology, management evaluates whether the mitigating effect of its plans sufficiently alleviates substantial doubt about the Company’s ability to continue as a going concern. The mitigating effect of management’s plans, however, is only considered if both (

) it is probable that the plans will be effectively implemented within

one

year after the date that the financial statements are issued, and (

) it is probable that the plans, when implemented, will mitigate the relevant conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within

one

year after the date that the financial statements are issued.

The Company has incurred operating losses and negative cash flows from operations since inception. To date, the Company has

product revenue and management expects operating losses to continue for the foreseeable future, and has primarily funded these losses through equity financings. The Company incurred a net loss of

$16,662

during the

three

months ended

March 31, 2020

and has an accumulated deficit of

$232,929

as of

March 31, 2020.

Net cash used in operations was approximately

$11,050

for the

three

months ended

March 31, 2020.

As of

March 31, 2020,

the Company had

$17,546

net current assets and

$24,917

of cash and cash equivalents on hand.

The Company is implementing a cost reduction plan, which includes the deferral of certain research, development and clinical projects and reduction of administrative expenses until it obtains additional financings. With the implementation of cost reduction plan, the Company anticipates that its current financial resources will enable it to meet its operational expenses and capital expenditures into the

second

quarter of year

2021.

Therefore, the management believes that the substantial doubt about the Company’s ability to continue as a going concern within

one

year after the date the financial statements are issued has been alleviated. The accompanying unaudited interim condensed consolidated financial statements have been prepared on a going concern basis.

Use of Estimates, Policy [Policy Text Block]

Use of estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting periods. Significant estimates and assumptions reflected in these financial statements include, but are

not

limited to share-based compensation, clinical trial accrual, valuation allowance for deferred tax assets, estimating uncertain tax position, measurement of right of use assets and lease liabilities and estimating of useful life for property and equipment. Management bases the estimates on historical experience, known trends and various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from these estimates.

Fair Value of Financial Instruments, Policy [Policy Text Block]

Fair value measurements

The Company measures certain financial assets and liabilities at fair value. Fair value is determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a

three

-level hierarchy, as follows:

•

Level

1—

Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

•

Level

2—

Other inputs that are directly or indirectly observable in the marketplace.

•

Level

3—

Unobservable inputs which are supported by little or

market activity.

ASC

820,

Fair Value Measurements and Disclosures

(“ASC

820”

) describes

three

main approaches to measuring the fair value of assets and liabilities: (

) market approach; (

) income approach and (

) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset.

Financial instruments of the Company primarily include cash and cash equivalents, due from related parties, due to related parties, accounts payable and long-term loans. Except for the long-term loans, the carrying values of these financial instruments approximated their fair value due to their short term nature as of

December 31, 2019

and

March 31, 2020.

As of

December 31, 2019

and

March 31, 2020,

the total carrying amount of long-term loans was

$1,436

and

$1,413,

compared with an estimated fair value of

$1,373

and

$1,214,

respectively. The fair value of the long-term loans is estimated by discounting cash flows using interest rates currently available for debts with similar terms and maturities (Level

fair value measurement).

New Accounting Pronouncements, Policy [Policy Text Block]

Recent accounting pronouncements

New accounting standard have

not

yet been adopted

December 2019,

the FASB issued ASU

2019

12,

Income Taxes (Topic

740

): Simplifying the Accounting for Income Taxes. This update simplifies the accounting for income taxes as part of the FASB’s overall initiative to reduce complexity in accounting standards. The amendments include removal of certain exceptions to the general principles of ASC

740,

and simplification in several other areas such as accounting for a franchise tax (or similar tax) that is partially based on income. The update is effective in fiscal years beginning after

December 15, 2020,

and interim periods therein, and early adoption is permitted. Certain amendments in this update should be applied retrospectively or modified retrospectively, all other amendments should be applied prospectively. The Company is currently evaluating the impact on its financial statements of adopting this guidance.