NOTE 4 - Short-term Investment

On September 9, 2019, the Company entered into a liquidity agreement with a security company (“the Liquidity Provider”) in France, which was consistent with customary practice in the French securities market. The liquidity agreement complied with applicable laws and regulations in France and authorized the Liquidity Provider to carry out market purchases and sales of shares of the Company’s common stock on the Euronext Paris market. To enable the Liquidity Provider to carry out the interventions provided for in the contract, the Company contributed approximately $225,500 (200,000 euros) into its account with the Liquidity Provider. The transaction was initiated in the beginning of 2020, and the Company paid annual compensation of 20,000 euros to the Liquidity Provider in advance by semi-annual installments at the beginning of each semi-annual period under the agreement. The liquidity agreement had an initial term of one year and was to renew automatically unless otherwise terminated by either party. As of September 30, 2022, the Company had purchased 5,361 shares of its common stock with the fair value of $44,055. The securities were recorded as short-term investment with an accumulated unrealized loss of $21,157. In January 2022, the Liquidity Provider terminated the agreement and the Company is determining whether to continue a similar program.

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 changed its name to “EJECTT INC” (“Ejectt”). On March 24, 2021, the Company purchased additional 2,000 shares of Ejectt’s common stock for a total amount of $1,392 from a related party.

As of September 30, 2022, 5,000,000 shares of Ejectt’s common stock were restricted and booked under long-term investment. As of September 30, 2022 and December 31, 2021, this investment totaled approximately a 10% ownership of Ejectt. 

On September 30, 2022, the Company entered into a stock purchase agreement (or “Stock Purchase Agreement”) to purchase common stock of Shinbao in a total amount of NT$35,000,000 (approximately $1,101,322). Shinbao is a privately-held company in Taiwan. As of December 20, 2022, the stock title transfer is still under process.

Also on September 29, 2022, the Company entered into a stock purchase agreement (or “Stock Purchase Agreement”) to purchase 2,670,000 shares of common stock of AnaNaviTek Corp. (AnaNaviTek) in a total amount of NT$40,050,000 (approximately $1,260,227). AnaNaviTek is a privately-held company in Taiwan. As of December 20, 2022, the Company has paid NT$10,005,000 (approximately $314,821) for 667,000 shares of AnaNaviTek stock and the stock title transfer for these shares has been completed. The Company expects to receive a valuation report on AnaNaviTek and will determine whether to purchase the remainder of the AnaNaviTek shares under the Stock Purchase Agreement once it has completed its review of the AnaNaviTek valuation report.

As of September 30, 2022 and December 31, 2021, the fair value of the investment was as follows: