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Commitments and Contingencies
 6 Months Ended
Jun. 30, 2024
Commitments and Contingencies [Abstract]  
COMMITMENTS AND CONTINGENCIES

NOTE 15 – COMMITMENTS AND CONTINGENCIES

 

Operating Leases Commitment

 

The Company is a party to leases for office space. These lease agreements will expire through February 2025. Rent expense under all operating leases amounted to approximately $64,000 and $66,000 for the six months ended June 30, 2024 and 2023, respectively.

 

Supplemental cash flow information related to leases for the six months ended June 30, 2024 and 2023 is as follows:

 

   Six Months Ended
June 30,		 
   2024   2023 
Cash paid for amounts included in the measurement of lease liabilities:        
Operating cash flows paid for operating lease  $48,085   $66,045 
Right-of-use assets obtained in exchange for lease obligation:          
Operating lease  $
-
   $243,169 

 

The following table summarizes the lease term and discount rate for the Company’s operating lease as of June 30, 2024:

 

   Operating
Lease		 
Weighted average remaining lease term (in years)   0.58 
Weighted average discount rate   11.0%

 

The following table summarizes the maturity of lease liabilities under operating lease as of June 30, 2024:

 

For the Twelve-month Period Ending June 30:  Operating
Lease		 
2025  $87,411 
2026 and thereafter   
-
 
Total lease payments   87,411 
Amount of lease payments representing interest   (2,038)
Total present value of operating lease liabilities (current liability)  $85,373 

 

Joint Venture – Avactis Biosciences Inc.

 

On July 18, 2018, the Company formed a wholly owned subsidiary, Avactis Biosciences Inc. (“Avactis”), a Nevada corporation, which focuses on accelerating commercial activities related to cellular therapies as well as cellular immunotherapy including CAR-T, CAR-NK, TCR-T and others. When formed, Avactis was designed to integrate and optimize the Company’s global scientific and clinical resources to further advance the use of cellular therapies to treat certain cancers, however the Company is no longer pursuing any commercial activities with respect to cellular immunotherapy and CAR-T, in particular. As of April 6, 2022, the Company owns 60% of Avactis and Arbele Biotherapeutics Limited (“Arbele Biotherapeutics”) owns 40% of Avactis. Avactis owns 100% of the capital stock of Avactis Nanjing Biosciences Ltd., a company incorporated in the PRC on May 8, 2020 (“Avactis Nanjing”), which only owns a patent and is not considered an operating entity.

 

The Company is required to contribute $10 million (or equivalent in RMB) in cash and/or services, which shall be contributed in tranches based on milestones to be determined jointly by Avactis and the Company in writing subject to the Company’s cash reserves. Within 30 days, Arbele Biotherapeutics shall make contribution of $6.66 million in the form of entering into a License Agreement with Avactis granting Avactis an exclusive right and license in China to its technology and intellectual property pertaining to CAR-T/CAR-NK/TCR-T/universal cellular immunotherapy technology and any additional technology developed in the future with terms and conditions to be mutually agreed upon the Company and Avactis and services. As of the date hereof, the License Agreement has not been finalized by the parties. 

 

In addition, the Company is responsible for contributing registered capital of RMB 5,000,000 (approximately $0.7 million) for working capital purposes as required by local regulation, which is not required to be contributed immediately and will be contributed subject to the Company’s discretion. As of the date hereof, Avactis’ activities have been limited to that of a patent holding company and there is no other activity or planned contributions in the rest of 2024.