Quarterly report pursuant to Section 13 or 15(d)

Cost Method Investment

v3.20.2
Cost Method Investment
9 Months Ended
Sep. 30, 2020
Cost Method Investment [Abstract]  
COST METHOD INVESTMENT

NOTE 5 – COST METHOD INVESTMENT

 

At September 30, 2020 and December 31, 2019, cost method investment amounted to $3,083,655 and $3,010,235, respectively. The investment represents Pingtan Fishing’s, the Company’s subsidiary, minority interest in Fujian Pingtan Rural-Commercial Bank Joint-Stock Co., Ltd. (“Pingtan Rural-Commercial Bank”), a private financial institution. Pingtan Fishing completed its registration as a shareholder on October 17, 2012 and paid RMB 21 million (approximately $3.0 million) to purchase 5% of the common stock of Pingtan Rural-Commercial Bank. Pingtan Fishing held 15,113,250 shares and accounted for 4.8% investment in the total equity investment of the bank as of September 30, 2020 and December 31, 2019.

 

In according to ASC Topic 321, the Company elected to use the measurement alternative to measure such investments at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer, if any. The Company monitors its investment in the non-marketable security and will recognize, if ever existing, a loss in value which is deemed to be other than temporary. The Company determined that there was no impairment on this investment as of September 30, 2020 and December 31, 2019.