INVESTMENTS MEASURED AT FAIR VALUE

9 Months Ended

Sep. 30, 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 September 30, 2022 and December 31, 2021:

	Amount at		Fair Value Measurement Using						Amount at
	Cost		Level 1		Level 2		Level 3		Fair Value
September 30, 2022
Assets
Investment Securities- Fair Value	$	76,264,051	$	18,184,407	$	-	$	-	$	18,184,407
Investment Securities- Trading		2,387,149		11,894,002		-		-		11,894,002
Convertible Note Receivable		138,599		-		-		88,599		88,599
Warrants - American Premium Mining		696,791		-		-		517,965		517,965
Total	$	79,486,590	$	30,078,409	$	-	$	606,564	$	30,684,973
Total Investment in securities at Fair Value										30,684,973

	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 Mining		696,791		-		-		1,009,854		1,009,854
Warrants - AMRE		-		-		-		-		-
Total	$	82,645,469	$	35,228,771	$	-	$	1,108,252	$	36,337,023
Total Investment in securities at Fair Value										36,337,023

Realized loss on investment securities for the nine months ended September 30, 2022 was $6,500,573 and realized loss on investment securities for the nine months ended September 30, 2021 was $2,218,988. Unrealized loss on securities investment was $21,773,223 and $35,972,445 in the nine months ended September 30, 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 nine months ended September 30, 2022 and 2021 was $40,201 and $56,969, 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 the local stock exchange to calculate fair value. The following chart shows details of the fair value of equity security investment at September 30, 2022 and December 31, 2021, respectively.

	Share price				Market Value
	9/30/2022		Shares		9/30/2022		Valuation
DSS (Related Party)	$	0.256		62,812,264	$	16,079,940	Investment in Securities at Fair Value
AMBS (Related Party)	$	0.004		20,000,000	$	74,000	Investment in Securities at Fair Value
Holista (Related Party)	$	0.021		43,326,621	$	923,988	Investment in Securities at Fair Value
American Premium Mining (Related Party)	$	0.001		354,039,000	$	389,443	Investment in Securities at Fair Value
Value Exchange	$	0.110		6,518,512	$	717,036	Investment in Securities at Fair Value
Trading Stocks					$	11,894,002	Investment in Securities at Fair Value
Total Level 1 Equity Securities					$	30,078,409
Nervotech		N/A		1,666	$	35,958	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					$	30,176,538

	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 Mining (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 nine months ended September 30, 2021, Global BioMedical Pte Ltd. converted 42,575 preferred stock of DSS into 6,570,170 common shares of DSS.

Sharing Services Convertible Note

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

	September 30, 2022			December 31, 2021
Dividend yield		-	%		0.00	%
Expected volatility		-	%		138.85	%
Risk free interest rate		-	%		3.25	%
Contractual term (in years)		-			0.76
Exercise price	$	-		$	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 and nine months ended September 30, 2022 and 2021:

	Total
Balance at January 1, 2022	$	1,108,252
Total losses		(203,463	)
Balance at March 31, 2022	$	904,789
Total losses		(591	)
Balance at June 30, 2022	$	904,198
Total gain		49,915
Balance at September 30, 2022	$	954,113

	Total
Balance at January 1, 2021	$	66,978
Total losses		(1,987	)
Balance at March 31, 2021	$	64,991
Total losses		(35,922	)
Balance at June 30, 2021	$	29,069
Total losses		(19,060	)
Balance at September 30, 2021	$	10,009

The Note was redeemed in July 2022.

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 September 30, 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 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 September 30, 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 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 APM, 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 APM 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 nine months ended September 30, 2022. We value APB warrants under level 3 category through a Black Scholes option pricing model and the fair value of the warrants from APM was $517,965 as of September 30, 2022 and $1,009,854 as of December 31, 2021.

The fair value of the APM warrants under level 3 category as of September 30, 2022 and December 31, 2021 was calculated using a Black-Scholes valuation model valued with the following weighted average assumptions:

	September 30, 2022			December 31, 2021
Stock Price	$	0.0011		$	0.0022
Exercise price		0.001			0.001
Risk free interest rate		3.94	%		1.48	%
Annualized volatility		167.9	%		186.5	%
Year to maturity		7.81			8.58