Equity Method Investment

12 Months Ended

Dec. 31, 2021

Equity Method Investments and Joint Ventures [Abstract]

EQUITY METHOD INVESTMENT

NOTE 7 – EQUITY METHOD INVESTMENT

As of December 31, 2021 and 2020, the equity method investment amounted to $515,632 and $521,758, respectively. The investment represents the Company’s subsidiary, Avalon Shanghai’s interest in Epicon Biotech Co., Ltd. (“Epicon”). Epicon was incorporated on August 14, 2018 in PRC. Avalon Shanghai and the other unrelated company, Jiangsu Unicorn Biological Technology Co., Ltd. (“Unicorn”), accounted for 40% and 60% of the total ownership, respectively. Epicon is focused on cell preparation, third party testing, biological sample repository for commercial and scientific research purposes and the clinical transformation of scientific achievements.

The Company treats the equity investment in the consolidated financial statements under the equity method. Under the equity method, the investment is initially recorded at cost, adjusted for any excess of the Company’s share of the incorporated-date fair values of the investee’s identifiable net assets over the cost of the investment (if any). Thereafter, the investment is adjusted for the post incorporation change in the Company’s share of the investee’s net assets and any impairment loss relating to the investment.

For the years ended December 31, 2021 and 2020, the Company’s share of Epicon’s net loss was $60,463 and $51,673, respectively, which was included in loss from equity method investment in the accompanying consolidated statements of operations and comprehensive loss.

In the years ended December 31, 2021 and 2021, activity recorded for the Company’s equity method investment in Epicon is summarized in the following table:

Equity investment carrying amount at January 1, 2020	$	483,101
Payment made for equity method investment		57,972
Epicon’s net loss attributable to the Company		(51,673	)
Foreign currency fluctuation		32,358
Equity investment carrying amount at December 31, 2020		521,758
Payment made for equity method investment		40,301
Epicon’s net loss attributable to the Company		(60,463	)
Foreign currency fluctuation		14,036
Equity investment carrying amount at December 31, 2021	$	515,632

The tables below present the summarized financial information, as provided to the Company by the investee, for the unconsolidated company:

	December 31, 2021		December 31, 2020
Current assets	$	5,479	$	13,023
Noncurrent assets		216,864		264,390
Current liabilities		56,626		6,615
Noncurrent liabilities		-		-
Equity		165,717		270,798

	For the Years Ended December 31,
	2021		2020
Net revenue	$	-	$	-
Gross profit		-		-
Loss from operation		151,158		129,316
Net loss		151,158		129,183