8. RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2020

Related Party Transactions [Abstract]

8. RELATED PARTY TRANSACTIONS

During the fiscal years 2020 and 2019, the Company borrowed $0 and $419,995 from Jiaxing Lighting Appliance Company Limited (Jiaxing Lighting”), in which Mr. Ming Yang, a shareholder and the Chairman of the Company, has a 100% equity interest. The amounts due to Jiaxing Lighting were unsecured, interest free and repayable on demand.

There was no balance owing to Jiaxing Lighting as of December 31, 2020 and 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 $95,613 for five years from January 1, 2018 to December 31, 2022. The expense associated with this agreement for the year ended December 31, 2020 was $90,510. The expense associated with this agreement for the year ended December 31, 2019 was $90,516. Amount owing to the Seller as of December 31, 2020 and 2019 was $95,616 and $89,424.