INVESTMENTS MEASURED AT FAIR VALUE

3 Months Ended

Mar. 31, 2022

Investments, All Other Investments [Abstract]

INVESTMENTS MEASURED AT FAIR VALUE

12. INVESTMENTS MEASURED AT FAIR VALUE

Financial assets measured at fair value on a recurring basis are summarized below and disclosed on the condensed consolidated balance sheet as of March 31, 2022 and December 31, 2021:

		Amount at		Fair Value Measurement Using						Amount at
		Cost		Level 1		Level 2		Level 3		Fair Value
March 31, 2022
Assets
Investment Securities- Fair Value	$	76,264,051	$	47,389,726	$	-	$	-	$	47,389,726
Investment Securities- Trading		2,387,149		2,397,169		-		-		2,397,169
Convertible Note Receivable		138,599		-		-		89,275		89,275
Warrants - American Premium Water		-		-		-		815,514		815,514
Warrants - AMRE		-		-		-		-		-
Total	$	78,789,799	$	49,786,895	$	-	$	904,789	$	50,691,684
Investment Securities - Fair Value NAV as Practical Expedient										100,000
Total Investment in securities at Fair Value										50,791,684

	Amount at		Fair Value Measurement Using						Amount at
	Cost		Level 1		Level 2		Level 3		Fair Value
December 31, 2021
Assets
Investment Securities- Fair Value	$	72,000,301	$	25,320,694	$	-	$	-	$	25,320,694
Investment Securities- Trading		9,809,778		9,908,077		-		-		9,908,077
Convertible Note Receivable		138,599		-		-		98,398		98,398
Warrants - American Premium Water		696,791		-		-		1,009,854		1,009,854
Warrants - AMRE		-		-		-		-		-
Total Investment in securities at Fair Value	$	82,645,469	$	35,228,771	$	-	$	1,108,252	$	36,337,023

Realized loss on investment securities for the three months ended March 31, 2022 was $3,436,783 and realized loss on investment securities for the three months ended March 31, 2021 was $258,245. Unrealized loss on securities investment was $3,899,015 and $9,535,009 in the three months ended March 31, 2022 and 2021, respectively. These gains and losses were recorded directly to net income (loss). The change in fair value of the convertible note receivable in the three months ended March 31, 2022 and 2021 was $9,123 and $1,987, respectively, and was recorded in condensed consolidated statements of stockholders’ equity.

For U.S. trading stocks, we use Bloomberg Market stock prices as the share prices to calculate fair value. For overseas stock, we use the stock price from local stock exchange to calculate fair value. The following chart shows details of the fair value of equity security investment at March 31, 2022 and December 31, 2021, respectively.

		Share price				Market Value
		3/31/2022		Shares		3/31/2022		Valuation
DSS (Related Party)		$	0.573		23,875,139	$	13,680,455	Investment in Securities at Fair Value
AMBS (Related Party)		$	0.008		20,000,000	$	158,000	Investment in Securities at Fair Value
Holista (Related Party)		$	0.025		43,626,621	$	1,111,173	Investment in Securities at Fair Value
American Premium Water (Related Party)		$	0.002		354,039,000	$	531,059	Investment in Securities at Fair Value
True Partner		$	0.112		62,122,908	$	6,981,617	Investment in Securities at Fair Value
Value Exchange		$	0.230		6,500,000	$	1,495,000	Investment in Securities at Fair Value
Alset Capital Acquisition - Common Stock (Related Party)		$	9.860		1,940,625	$	19,134,563	Investment in Securities at Fair Value
Alset Capital Acquisition – Unit (Related Party)		$	10.080		426,375	$	4,297,860	Investment in Securities at Fair Value
Trading Stocks						$	2,397,170	Investment in Securities at Fair Value
	Total Level 1 Equity Securities					$	49,786,896
Nervotech			N/A		1,666	$	37,045	Investment in Securities at Cost
Hyten Global			N/A		3,800	$	42,562	Investment in Securities at Cost
Ubeauty			N/A		3,600	$	19,609	Investment in Securities at Cost
		Total Equity Securities				$	49,886,112

		Share price				Market Value
		12/31/2021		Shares		12/31/2021		Valuation
DSS (Related Party)		$	0.672		19,888,262	$	13,364,912	Investment in Securities at Fair Value
AMBS (Related Party)		$	0.016		20,000,000	$	328,000	Investment in Securities at Fair Value
Holista (Related Party)		$	0.034		43,626,621	$	1,489,179	Investment in Securities at Fair Value
American Premium Water (Related Party)		$	0.002		354,039,000	$	778,886	Investment in Securities at Fair Value
True Partner		$	0.119		62,122,908	$	7,409,717	Investment in Securities at Fair Value
Value Exchange		$	0.300		6,500,000	$	1,950,000	Investment in Securities at Fair Value
Trading Stocks						$	9,908,077	Investment in Securities at Fair Value
	Total Level 1 Equity Securities					$	35,228,771
Nervotech			N/A		1,666	$	37,045	Investment in Securities at Cost
Hyten Global			N/A		3,800	$	42,562	Investment in Securities at Cost
Ubeauty			N/A		3,600	$	19,609	Investment in Securities at Cost
			Total Equity Securities			$	35,327,987

DSS convertible preferred stock

During the three months ended March 31, 2021, Global BioMedical Pte Ltd. held 42,575 preferred stock of DSS which could convert to 6,570,216 common shares of DSS.

Sharing Services Convertible Note

The fair value of the Sharing Services Convertible Note under level 3 category as of March 31, 2022 and December 31, 2021 was calculated using a Black-Scholes valuation model valued with the following weighted average assumptions:

	March 31, 2022			December 31, 2021
Dividend yield		0.00	%		0.00	%
Expected volatility		126.23	%		138.85	%
Risk free interest rate		3.25	%		3.25	%
Contractual term (in years)		0.51			0.76
Exercise price	$	0.15		$	0.15

We assumed dividend yield rate is 0.00% in Sharing Services. The volatility is based on the historical volatility of the Sharing Services’ common stock. Risk-free interest rates were obtained from U.S. Treasury rates for the applicable periods.

Changes in the observable input values would likely cause material changes in the fair value of the Company’s Level 3 financial instruments. A significant increase (decrease) in this likelihood would result in a higher (lower) fair value measurement.

The table below provides a summary of the changes in fair value which are recorded as other comprehensive income (loss), including net transfers in and/or out of all financial assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended March 31, 2022 and 2021:

	Total
Balance at January 1, 2022	$	1,108,252
Total losses		(203,463	)
Balance at March 31, 2022	$	904,789

	Total
Balance at January 1, 2021	$	66,978
Total losses		(1,987	)
Balance at March 31, 2021	$	64,991

Vector Com Convertible Bond

On February 26, 2021, the Company invested approximately $88,599 in the convertible bond of Vector Com Co., Ltd (“Vector Com”), a private company in South Korea. The interest rate is 2% per annum and maturity is two years. The conversion price is approximately $21.26, per common share of Vector Com. As of March 31, 2022, the management estimated that the fair value of this note remained unchanged from its initial purchase price.

Warrants

On March 2, 2020 and October 29, 2021, the Company received warrants to purchase shares of AMRE, a related party private startup company, in conjunction with the Company lending two $200,000 promissory notes. For further details on this transaction, refer to Note 8 - Related Party Transactions, Note Receivable from a Related Party Company. As of March 31, 2022 and December 31, 2021, AMRE was a private company. Based the management’s analysis, the fair value of the warrants was $0 as of March 31, 2022 and December 31, 2021. All warrants were converted into common shares in March 2022.

On July 17, 2020, the Company purchased 122,039,000 shares, approximately 9.99% ownership, and 1,220,390,000 warrants with an exercise price of $0.0001 per share, from APW, for an aggregated purchase price of $122,039. During 2021, the Company exercised 232,000,000 of the warrants to purchase 232,000,000 shares of APW for the total consideration of $232,000, leaving the balance of outstanding warrants of 988,390,000 at December 31, 2021. The Company did not exercise any warrants during three months ended March 31, 2022. We value APB warrants under level 3 category through a Black Scholes option pricing model and the fair value of the warrants from APW was $815,514 as of March 31, 2022 and $1,009,854 as of December 31, 2021.

The fair value of the APW warrants under level 3 category as of March 31, 2022 and December 31, 2021 was calculated using a Black-Scholes valuation model valued with the following weighted average assumptions:

	March 31, 2022			December 31, 2021
Stock Price	$	0.0015		$	0.0022
Exercise price		0.001			0.001
Risk free interest rate		2.39	%		1.48	%
Annualized volatility		111.5	%		186.5	%
Year to maturity		8.31			8.58