INVESTMENTS MEASURED AT FAIR VALUE

12 Months Ended

Dec. 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 consolidated balance sheets as of December 31, 2022 and 2021:

			Fair Value Measurement Using
	Amount at Cost		Level 1		Level 2		Level 3		Amount at Fair Value
December 31, 2022
Assets
Investment Securities- Fair Value Option	$	76,264,051	$	13,749,957	$	-	$	-	$	13,749,957
Investment Securities- Trading		11,268,362		5,315,204		-		-		5,315,204
Convertible Note Receivable		138,599		-		-		88,599		88,599
Warrants - American Premium Water		696,791		-		-		327,565		327,565
Warrants - AMRE		-		-		-		-		-
Total Investment in Securities at Fair Value	$	88,367,803	$	19,065,161	$	-	$	416,164	$	19,481,325

			Fair Value Measurement Using
	Amount at Cost		Level 1		Level 2		Level 3		Amount at Fair Value
December 31, 2021
Assets
Investment Securities- Fair Value Option	$	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 year ended December 31, 2022 and 2021 was $7,308,580 and $4,698,078, respectively. Unrealized loss on securities investment was $31,350,358 and $49,190,748 in the years ended December 31, 2022 and 2021, respectively. These losses were recorded directly to net loss. The change in fair value of the convertible note receivable in the years ended December 31, 2022 and 2021 was $40,201 gain and $57,179 loss, respectively, and was recorded in 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 investments at December 31, 2022 and 2021, respectively.

	Share price				Market Value
	12/31/2022		Shares		12/31/2022		Valuation
DSS (Related Party)	$	0.164		62,812,264	$	10,301,211	Investment in Securities at Fair Value
AMBS (Related Party)	$	0.002		20,000,000	$	34,000	Investment in Securities at Fair Value
Holista (Related Party)	$	0.20		42,999,621	$	850,432	Investment in Securities at Fair Value
American Premium Water (Related Party)	$	0.001		354,039,000	$	212,423	Investment in Securities at Fair Value
Value Exchange	$	0.170		13,834,643	$	2,351,889	Investment in Securities at Fair Value
Trading Stock					$	5,315,204	Investment in Securities at Fair Value
		Total Level 1 Equity Securities			$	19,065,161
Nervotech		N/A		1,666	$	35,958	Investment in Securities at Cost
HWH World Co.		N/A		3,800	$	42,562	Investment in Securities at Cost
K Beauty		N/A		3,600	$	19,609	Investment in Securities at Cost
		Total Equity Securities			$	19,163,290

	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 Stock					$	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
HWH World Co.		N/A		3,800	$	42,562	Investment in Securities at Cost
K Beauty		N/A		3,600	$	19,609	Investment in Securities at Cost
		Total Equity Securities			$	35,327,987

DSS convertible preferred stock

During the year ended December 31, 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:

	December 31, 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 years ended December 31, 2022 and 2021:

	Total
Balance at January 1, 2021	$	38,604,701
Net loss		(57,179	)
Conversion of DSS Preferred Stock		(37,439,270	)
Balance at December 31, 2021	$	1,108,252
Net gain		40,201
Balance at December 31, 2022	$	1,148,453

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 December 31, 2022 and 2021, 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 December 31, 2022 and 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 NECV, 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 NECV for the total consideration of 232,000, leaving the balance of outstanding warrants of 988,390,000 at December 31, 2021. We value NECV warrants under level 3 category through a Black Scholes option pricing model and the fair value of the warrants from NECV was $327,565 as of December 31, 2022 and $1,009,854 as of December 31, 2021.

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

	As of			As of
	December 31, 2022			December 31, 2021
Stock Price	$	0.0006		$	0.0022
Exercise Price	$	0.001		$	0.001
Risk-free Interest Rate		3.95	%		1.48	%
Annualized volatility		186.1	%		186.5	%
Dividend Yield		0.00			0.00
Year to Maturity		7.56			8.58

The following table presents summarized unaudited financial information for our investments that we elected the fair value option that would otherwise be accounted for under the equity method of accounting.

	Summarized Financial Information
	Assets		Liabilities		Net Income (Loss)
December 31, 2022
NECV*	$	1,038,946	$	2,507,797	$	128,968
Holista	$	3,717,593	$	2,660,281	$	(1,053,668	)
DSS*	$	264,880,000	$	82,231,000	$	(52,214,667	)
VEII*	$	5,047,729	$	2,676,237	$	185,321
December 31, 2021
NECV	$	348,688	$	4,049,594	$	(873,550	)
Holista	$	5,031,866	$	2,870,177	$	(1,018,871	)
DSS	$	284,826,000	$	84,522,000	$	(31,921,000	)

* Data derived from Financial Statement as of September 30, 2022 which was the latest available date source we could reach. 12-month Net Income (Loss) was estimated by adding one-third of 9-month Net Loss.