8. RELATED PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2020

Related Party Transactions [Abstract]

8. RELATED PARTY TRANSACTIONS

During the three-month period ended March 31, 2020, the Company borrowed a sum of $49,995 from Shouguang Vegetable Industry Holding Group Company Limited ("Shouguang Vegetable"), in which Mr. Ming Yang, a shareholder and the Chairman of the Company, has a 100% equity interest. The amount due to Shouguang Vegetable was unsecured, interest free and repayable on demand and was fully settled in the three-month period ended March 31, 2020. There was no balance owing to Shouguang Vegetable as of March 31, 2020 and December 31, 2019.

On September 25, 2012, the Company purchased five floors of a commercial building in the PRC, through SYCI, from Shandong Shouguang Vegetable Seed Industry Group Co., Ltd. (the “Seller”) at a cost of approximately $5.7 million in cash, of which Mr. Ming Yang, the Chairman of the Company, had a 99% equity interest in the Seller. During the first quarter of 2018, the Company entered into an agreement with the Seller, a related party, to provide property management services for an annual amount of approximately $92,650 for five years from January 1, 2018 to December 31, 2022. The expense associated with this agreement for the three months ended March 31, 2020 and 2019 was approximately $22,013 and $23,162. The amounting owing for the property management services as of March 31, 2020 and December 31, 2019 was $22,013 and $89,424 (Note 7).