8. RELATED PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2020

Related Party Transactions [Abstract]

8. RELATED PARTY TRANSACTIONS

During the three months ended June 30, 2020 and June 30, 2019, the Company borrowed $0 and $60,000 from a related company. There was no balance owing to this related company as of June 30, 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 $88,121 for five years from January 1, 2018 to December 31, 2022. The expense associated with this agreement for the three and six months ended June 30, 2020was approximately $22,030 and $44,043.The expense associated with this agreement for the three and six months ended June 30, 2019was approximately $22,687 and $45,849.