INVESTMENT IN EQUITY SECURITIES

12 Months Ended

Dec. 31, 2022

INVESTMENT IN EQUITY SECURITIES [Abstract]

INVESTMENT IN EQUITY SECURITIES

NOTE 8 – INVESTMENT IN EQUITY SECURITIES

As of December 31, 2022, the balance consisted of the following two equity investments:

Investment on partnership shares in MineOne Fix Income Investment I L.P

On October 12, 2022, the Company entered into a subscription agreement with MineOne Partners Limited, a partnership incorporated in the British Virgin Islands, for purchase of $25 million partnership shares in MineOne Fix Income Investment I LP (“MineOne”), over which MineOne Partners Limited is the General Partner. The Company holds 100% of the limited partnership equity of MineOne and is entitled to a fixed return of 5% per annum on the investment amount, and has the rights to sell all or any portion of its partnership interest after the second anniversary of the investment if the Company gives at least ten business days’ prior notice to the General Partner and receives the consent of General Partner. MineOne focuses on private credit loans, convertible bridge, and personal factoring. The Company determines the appropriate classification of its investments in debt and equity securities at the time of purchase and reevaluates such determinations at each balance sheet date. The private equity fund is measured at fair value with gains and losses recognized in earnings. As a practical expedient, the Company NAV or its equivalent to measure the fair value of the Fund. The NAV of the Fund was $25,128,833 as of December 31, 2022. Net assets of the Partnership were $25,019,244. For the year ended December 31, 2022, the Company recorded upward adjustments for changes in fair value of this equity investment of $19,244.

Investment on participating shares in Micro Money Fund SPC

On August 11, 2022, the Company invested $5 million in Micro Money Fund SPC, for purchase of 4,454.37 of participating, redeemable, non-voting shares attributable to Micro Money Fund SPII (“the Fund”), a segregated portfolio of Micro Money Fund SPC. The Company holds 59% of the limited partnership equity of the Fund, and has the rights to redeem the investment at the option of the Company, but a redemption gate may be setup to limit the redemption amount if redemption on redemption day in excess of such percentage of the NAV of the relevant portfolio by Micro Money Fund SPC. The Fund focuses on investments in convertible securities, publicly traded debt and stock, and combination options and futures trading. The investment was classified as an equity security because the investment represented the ownership interest in the Fund. As of December 31, 2022, the investment consisted of 4,454.37 participating shares of the Fund. The private equity fund is measured at fair value with gains and losses recognized in earnings. As a practical expedient, the Company uses NAV to measure the fair value of the Fund. The NAV of the Fund was $4,869,908 as of December 31, 2022. Net assets of the Partnership was $8,033,816 by taking liabilities into consideration. For the year ended December 31, 2022, the Company recorded downward adjustments for changes in fair value of this equity investment of $260,049.

The Company has neither control nor significant influence over MineOne or Micro Money Fund, the Company does not have the power to direct the activities that most significantly affect the their economic performance, and there is no kick-off rights or right to dissolve the funds.