Quarterly report pursuant to Section 13 or 15(d)

Long-Term Investment

v3.21.2
Long-Term Investment
6 Months Ended
Jun. 30, 2021
Prepayment For Longterm Investment [Abstract]  
Long-term Investment

NOTE 7 – Long-term Investment

 

On December 3, 2020, the Company entered into three separate stock purchase agreements (or “Stock Purchase Agreement”) from three individuals to purchase an aggregate of 6,000,000 restricted shares of one of the Company’s related parties, YuanJiu Inc. (YuanJiu) in a total amount of NT$141,175,000. YuanJiu is a listed company in Taiwan Stock Exchange and the stock title transfer is subject to certain restrictions. Albert Hsu, a member of the Company’s board of directors, is the Chairman of YuanJiu. On July 19, 2021, YuanJiu Inc. changed its name to “EJECTT INC.”

 

In the Stock Purchase Agreement, there was a restriction on the stock title transfer until May 13, 2021. As of August 12, 2021, this restriction on the stock transfer was released and the stock title transfer process has been completed. As of June 30, 2021 and December 31, 2020, this investment totaled approximately a 10% ownership of YuanJiu. The Company intends to hold this investment for long-term purposes.

 

On March 24, 2021, the Company purchased additional 1,000 shares of YuanJiu’s common stock for a total amount of $694 (unaudited) from a related party.

 

As of June 30, 2021 and December 31, 2020, the fair value of the investment was as follows:

 

    June 30,
2021
    December 31,
2020
 
    (Unaudited)          
Investment cost   $ 5,058,917     $ 5,027,600  
Less: Allowance for value decline     (1,349,875 )     (722,044 )
Net   $ 3,709,042     $ 4,305,556