Business Combination

12 Months Ended

Dec. 31, 2021

Business Combinations [Abstract]

BUSINESS COMBINATION

3. BUSINESS COMBINATION

On June 2, 2021, Shenzhen Wei Lian entered into an equity transfer agreement relating to the acquisition of 99% of the equity of Nainiang Liquor in exchange for agreeing to cause the Company to issue 9,281,577 shares of its common stock to the Sellers. To determine the amount of shares that the Company issued to the Sellers, the Company converted the net asset value of Nainiang Liquor as of June 3, 2021 to US Dollars, and then used a price per share for the Company’s common stock of US$1.10. The PRC Acquisition closed on June 3, 2021 and the results of operations of Nainiang Liquor are included in the Company’s consolidated financial statements beginning on June 3, 2021. The operational control of Nainiang Liquor passed to FHAI and all assets of Nainiang Liquor were acquired by FHAI effective June 3, 2021, the date that 99% of the outstanding equity of Nainiang Liquor was transferred to Shenzhen Wei Lian. FHAI does not account for the remaining 1% non-controlling interest held by Ms. Zhu Hong, as Ms. Zhu Hong is the common controlling shareholder for both the acquirer and the acquiree.

Accordingly, the acquisition has been accounted for in accordance with ASC 805 guidelines, whereby FHAI recognized the assets and liabilities of Nainiang Liquor transferred at their carrying amounts with a carry-over basis.

The following represents the purchase price allocation at the dates of the acquisition:

	June 3, 2021
Cash and cash equivalents	$	48,689
Other current assets		13,666,168
Property, plant and equipment		310,631
Current liabilities		(3,697,772	)
Total purchase price	$	10,327,716