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INVESTMENTS MEASURED AT FAIR VALUE

6 Months Ended

Jun. 30, 2023

Investments, All Other Investments [Abstract]

13. 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 June 30, 2023 and December 31, 2022:

	Fair Value Measurement Using						Amount at
	Level 1		Level 2		Level 3		Fair Value
June 30, 2023
Assets
Investment Securities- Fair Value	$	287,818	$	-	$	-	$	287,818
Investment Securities- Fair Value - Related Party		24,757,622		-		-		24,757,622
Investment Securities- Trading		6,319,406		-		-		6,319,406
Convertible Note Receivable		-		-		88,599		88,599
Warrants - New Electric CV Corp.		-		-		47,115		47,115

Total Investment in securities at Fair Value	$	31,364,846	$	-	$	135,714	$	31,500,560

	Fair Value Measurement Using						Amount at
	Level 1		Level 2		Level 3		Fair Value
December 31, 2022
Assets
Investment Securities- Fair Value	$	884,432	$	-	$	-	$	884,432
Investment Securities- Fair Value - Related Party		12,865,525		-		-		12,865,525
Investment Securities- Trading		5,315,204		-		-		5,315,204
Convertible Note Receivable		-		-		88,599		88,599
Warrants - New Electric CV Corp.		-		-		327,565		327,565

Total Investment in securities at Fair Value	$	19,065,161	$	-	$	416,164	$	19,481,325

Realized loss on investment securities for the six months ended June 30, 2023 was $10,688,542 and realized loss on investment securities for the six months ended June 30, 2022 was $6,355,451. Unrealized loss on securities investment was $17,652,880 and $10,766,390 in the six months ended June 30, 2023 and 2022, respectively. These gains and losses were recorded directly to net loss. The change in fair value of the convertible note receivable in the six months ended June 30, 2023 and 2022 was $0 and $9,123, 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 June 30, 2023 and December 31, 2022, respectively.

	Share price				Market Value
	6/30/2023		Shares		6/30/2023		Valuation

DSS (Related Party)	$	0.359		62,812,264	$	22,549,603	Investment in Securities at Fair Value

AMBS (Related Party)	$	0.001		20,000,000	$	16,000	Investment in Securities at Fair Value

Holista (Related Party)	$	0.007		40,927,621	$	271,818	Investment in Securities at Fair Value

New Electric CV (Related Party)	$	0.001		354,039,000	$	70,808	Investment in Securities at Fair Value

Value Exchange (Related Party)	$	0.100		13,834,643	$	1,383,464	Investment in Securities at Fair Value

Sharing Services (Related Party)	$	0.006		125,624,528	$	753,747	Investment in Securities at Fair Value

Trading Stocks					$	6,319,406	Investment in Securities at Fair Value

		Total Level 1 Equity Securities			$	31,364,846
Nervotec		N/A		1,666	$	37,631	Investment in Securities at Cost
HWH World Co.		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			$	31,464,648

	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)	$	0.020		42,999,621	$	850,432	Investment in Securities at Fair Value

New Electric CV (Related Party)	$	0.001		354,039,000	$	212,423	Investment in Securities at Fair Value

Value Exchange (Related Party)	$	0.170		13,834,643	$	2,351,889	Investment in Securities at Fair Value

Trading Stocks					$	5,315,204	Investment in Securities at Fair Value

Total Level 1 Equity Securities					$	19,065,161

Nervotec		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
UBeauty		N/A		3,600	$	19,609	Investment in Securities at Cost
Total Equity Securities					$	19,163,290

Sharing Services Convertible Note

The fair value of the Sharing Services Convertible Note under level 3 category was calculated using a Black-Scholes valuation model.

We assumed dividend yield rate of 0.00% in Sharing Services. The volatility was 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.

The Sharing Services Convertible Note was redeemed in July 2022.

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 six months ended June 30, 2023 and 2022:

SCHEDULE OF CHANGE IN FAIR VALUE

	Total
Balance at January 1, 2023	$	327,565
Total gains		62,348
Balance at March 31, 2023	$	389,913
Total losses		(342,798	)
Balance at June 30, 2023	$	47,115

		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

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 June 30, 2023, 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 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 and 2022. The Company did not exercise any warrants during six months ended June 30, 2023. 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 $47,115 as of June 30, 2023 and $327,565 as of December 31, 2022.

The fair value of the NECV warrants under level 3 category as of June 30, 2023 and December 31, 2022 was calculated using a Black-Scholes valuation model valued with the following weighted average assumptions:

	June 30, 2023			December 31, 2022

Stock Price	$	0.0002		$	0.0006
Exercise price		0.001			0.001
Risk free interest rate		3.96	%		3.95	%
Annualized volatility		250.4	%		186.1	%
Dividend Yield		0.00			0.00
Year to maturity		7.07			7.56