8. RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2020

Related Party Transactions [Abstract]

8. RELATED PARTY TRANSACTIONS

During the three months ended September 30, 2020 and September 30, 2019, the Company borrowed $0 and $299,995 from a related company. There was no balance owing to this related company as of September 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 $91,608 for five years from January 1, 2018 to December 31, 2022. The expense associated with this agreement for the three and nine months ended September 30, 2020 was approximately $22,902 and $66,945.The expense associated with this agreement for the three and nine months ended September 30, 2019 was approximately $22,050 and $67,900.