Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ~~[X]~~☒ No ~~[ ]~~☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ~~[X]~~☒ No ~~[ ]~~☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ~~[ ]~~☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ~~[ ]~~ ☐ No ~~[X]~~☒

As of ~~May 24,~~August 16, 2021, there were ~~8,511,637~~ 40,149,228 shares of the registrant’s common stock $0.001 par value per share, issued and outstanding.

	March 31, 2021			December 31, 2020			June 30, 2021			December 31, 2020
					(As Combined)		(Unaudited)			(As Combined)
Assets:
Current Assets:
Cash	$	20,368,692		$	24,465,923		$	59,529,026		$	24,965,946
Restricted Cash		8,636,391			6,769,533			7,396,111			6,769,533
Account Receivables, Net		1,062,278			1,366,194			1,180,881			1,366,194
Other Receivables		687,120			644,576			746,506			644,576
Note Receivables - Related Parties		669,561			649,569			906,369			649,569
Prepaid Expenses		2,894,258			1,470,680			2,938,695			1,470,680
Inventory		8,956			90,068			53,423			90,068
Investment in Securities at Fair Value		52,164,652			49,172,457			30,125,431			49,172,457
Investment in Securities at Cost		99,997			280,516			99,997			280,516
Deposits		25,528			47,019			25,528			48,820
Total Current Assets		86,617,433			84,956,535			103,001,967			85,458,359

Real Estate
Rental Properties		2,161,680			-			6,810,685			-
Properties under Development		18,104,033			20,505,591			16,279,723			20,505,591
Operating Lease Right-Of-Use Asset		722,507			574,754			728,828			574,754
Deposit		271,167			249,676			271,167			249,676
Loan Receivable - Related Parties		840,000			840,000			-			840,000
Property and Equipment, Net		81,169			85,365			246,177			85,365
Total Assets	$	108,797,989		$	107,211,921		$	127,338,547		$	107,713,745

Liabilities and Stockholders’ Equity:
Current Liabilities:
Accounts Payable and Accrued Expenses	$	2,388,448		$	1,670,320		$	1,845,157		$	1,671,265
Accrued Interest - Related Parties		41,239			-
Deferred Revenue		3,430,893			2,867,226			2,919,283			2,867,226
Builder Deposits		928,565			1,262,336			541,349			1,262,336
Operating Lease Liability		51,686			381,412			147,135			381,412
Notes Payable		238,935			172,706			236,683			172,706
Notes Payable - Related Parties		14,837,252			2,350,031			5,989,374			2,534,281
Total Current Liabilities		21,917,018			8,704,031			11,678,981			8,889,226

Long-Term Liabilities:
Operating Lease Liability		684,875			193,342			594,780			193,342
Note Payable, Net of Discount		651,034			636,362			-			636,362
Total Liabilities		23,252,927			9,533,735			12,273,761			9,718,930

Stockholders’ Equity:
Preferred Stock, $0.001 par value; 5,000,000 shares authorized, none issued and outstanding
Common Stock, $0.001 par value; 20,000,000 shares authorized; 8,580,000 and 8,570,000 shares issued and outstanding on March 31, 2021 and December 31, 2020, respectively		8,580			8,570
Additional Paid In Capital		101,799,367			102,339,666
Accumulated Other Comprehensive Income		1,092,609			2,143,338
Preferred Stock, $0.001 par value; 25,000,000 shares authorized, NaN issued and outstanding								-			-
Series A $0.001 par value; 6,380 designated, NaNissued and outstanding								-			-
Series B $0.001 par value; 2,132 designated, NaNissued and outstanding								-			-
Preferred Stock Value
Common Stock, $0.001 par value; 250,000,000 shares authorized; 28,265,289 and 8,570,000 shares issued and outstanding on June 30, 2021 and December 31, 2020, respectively								28,265			8,570
Additional Paid in Capital								204,762,770			102,729,944
Accumulated Other Comprehensive Income (Loss)								(40,823	)		2,143,338
Accumulated Deficit		(51,029,349	)		(44,793,713	)		(117,799,610	)		(44,910,297	)
Total Alset EHome International Stockholders’ Equity		51,871,207			59,697,861			86,950,602			59,971,555
Non-controlling Interests		33,673,855			37,980,325			28,114,184			38,023,260
Total Stockholders’ Equity		85,545,062			97,678,186			115,064,786			97,994,815

Total Liabilities and Stockholders’ Equity	$	108,797,989		$	107,211,921		$	127,338,547		$	107,713,745

Consolidated Statements of Operations and Other Comprehensive Income ~~(Loss~~(Loss))


							Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020 As Combined			2021			2020 As Combined
Revenue					(As Combined)
Property Sales	$	3,894,131		$	2,954,389
Biohealth Product Sales		1,712,783			10,782
Real Estate							$	4,584,542		$	2,047,405		$	8,478,673		$	5,001,794
Biohealth								1,958,890			18,420			3,671,673			29,202
Total Revenue		5,606,914			2,965,171			6,543,432			2,065,825			12,150,346			5,030,996
Operating Expenses
Cost of Sales		3,697,854			2,383,703			2,607,950			1,609,223			6,305,804			3,992,926
General and Administrative		2,312,505			1,001,850			8,611,512			2,582,881			10,926,830			3,588,524
Inventory Written Off		-			2,009			-			(2,009	)		-			-
Total Operating Expenses		6,010,359			3,387,562			11,219,462			4,190,095			17,232,634			7,581,450

Operating Losses From Operations		(403,445	)		(422,391	)
Operating Losses from Operations								(4,676,030	)		(2,124,270	)		(5,082,288	)		(2,550,454	)

Other Income (Expense)
Interest Income		30,632			19,415			25,656			14,609			56,288			34,027
Interest Expense		(53,582	)		(60,931	)		(262,703	)		(79,585	)		(316,285	)		(140,516	)
Foreign Exchange Transaction Gain		1,462,697			2,260,482
Foreign Exchange Rate Transaction Gain (Loss)								958,334			(796,709	)		2,421,031			1,463,773
Unrealized (Loss) Gain on Securities Investment		(9,535,009	)		458,422			(21,168,905	)		1,103,064			(30,703,914	)		1,561,486
Realized Loss on Securities Investment		(258,245	)		-
Realized Gain on Securities Investment								555,206			26,395			296,961			26,395
Loss on Investment on Security by Equity Method		(24,847	)		-			(77,459	)		(140,740	)		(102,306	)		(140,740	)
Finance Costs		(582,868	)		(4,903	)
Finance Income (Costs)								(50,261,203	)		347			(50,844,071	)		(4,890	)
Other Income		11,256			5,471			19,044			38,413			30,300			43,884
Total Other (Expense) Income, Net		(8,949,966	)		2,677,956
Total Other Income (Expense), Net								(70,212,030	)		165,794			(79,161,996	)		2,843,419

Net (Loss) Income Before Income Taxes		(9,353,411	)		2,255,565			(74,888,060	)		(1,958,476	)		(84,244,284	)		292,965

Income Tax		(451,337	)		-
Income Tax Expense								(1,264	)		(114,653	)		(452,601	)		(114,653	)

Net (Loss) Income		(9,804,748	)		2,255,565			(74,889,324	)		(2,073,129	)		(84,696,885	)		178,312

Net (Loss) Income Attributable to Non-Controlling Interest		(3,569,112	)		636,703
Loss from Discontinued Operations, Net of Tax								-			(361,385	)		-			(361,385	)
Net Loss								(74,889,324	)		(2,434,514	)		(84,696,885	)		(183,073	)

Net Loss Attributable to Non-Controlling Interest								(8,238,460	)		(1,269,460	)		(11,807,572	)		(633,021	)

Net (Loss) Income Attributable to Common Stockholders	$	(6,235,636	)	$	1,618,862		$	(66,650,864	)	$	(1,165,054	)	$	(72,889,313	)	$	449,948

Other Comprehensive Loss, Net
Unrealized Loss on Securities Investment		(1,987	)		(12,599	)
Other Comprehensive Income (Loss), Net
Unrealized Gain (Loss) on Securities Investment								(35,922	)		13,115			(37,909	)		516
Foreign Currency Translation Adjustment		(1,769,440	)		(1,674,021	)		(1,070,191	)		626,872			(2,839,631	)		(1,047,149	)
Comprehensive (Loss) Income		(11,576,175	)		568,945
Comprehensive Loss								(75,995,437	)		(1,433,142	)		(87,574,425	)		(1,229,706	)

Comprehensive (Loss) Income Attributable to Non-controlling Interests		(4,328,924	)		53,133
Comprehensive Loss Attributable to Non-controlling Interests								(8,584,838	)		(1,054,420	)		(12,913,762	)		(1,001,551	)

Comprehensive (Loss) Income Attributable to Common Stockholders	$	(7,247,251	)	$	515,812
Comprehensive Loss Attributable to Common Stockholders							$	(67,410,599	)	$	(378,722	)	$	(74,660,663	)	$	(228,155	)

Net (Loss) Income Per Share - Basic and Diluted	$	(0.73	)	$	0.16
Continuing Operations							$	(6.03	)	$	(0.08	)	$	(7.42	)	$	0.08
Discontinued Operations							$	-		$	(0.04	)	$	-		$	(0.03	)
Net Income (Loss) Per Share							$	(6.03	)	$	(0.12	)	$	(7.42	)	$	0.05

Weighted Average Common Shares Outstanding - Basic and Diluted		8,572,222			10,001,000			11,056,534			9,758,236			9,824,059			9,880,967

	2021			2020			2021			2020
					(As Combined)					(As Combined)
Cash Flows from Operating Activities
Net Income (Loss) from Operations	$	(9,804,748	)	$	2,255,565		$	(84,696,885	)	$	178,312
Adjustments to Reconcile Net Income (Loss) to Net Cash Used in Operating Activities:
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by (Used in) Operating Activities:
Depreciation		7,873			5,942			34,164			13,062
Amortization of Right -Of - Use Asset		81,013			70,671			259,691			141,097
Amortization of Debt Discount		553,961			-			50,813,099			3,777
Shared-based Compensation		134,192			-			133,983			1,564,376
Foreign Exchange Transaction Gain		(1,462,697	)		(2,296,128	)
Foreign Exchange Rate Transaction Gain								(2,421,031	)		(1,375,471	)
Unrealized Loss (Gain) on Securities Investment		9,548,251			(458,426	)		30,703,914			(1,561,486	)
Loss on Equity Method Investment		24,847			-			102,306			140,740
Changes in Operating Assets and Liabilities
Real Estate		441,764			15,952			(2,584,817	)		(2,387,115	)
Account Receivables		203,816			342,575			(6,503	)		497,845
Prepaid Expense		(1,458,620	)		(40,805	)		(1,480,203	)		(411,057	)
Trading Securities		(2,452,754	)
Investment in Securities								(952,509	)		-
Inventory		77,709			(20,590	)		33,236			(17,231	)
Accounts Payable and Accrued Expenses		596,355			231,421			173,892			3,011,179
Accrued Interest - Related Parties		41,239			19,634			73,903			100,324
Deferred Revenue		563,667			50,270			52,057			940,699
Operating Lease Liability		(66,954	)		(73,668	)		(167,161	)		(147,231	)
Builder Deposits		(333,771	)		(285,010	)		(720,987	)		(249,145	)
Net Cash Used in Operating Activities		(3,304,857	)		(182,597	)
Income Tax Payable								-			114,653
Net Cash Provided by (Used in) Operating Activities								(10,649,851	)		557,328
Net Cash Used in Discontinued Operating Activities								-			(353,123	)
Net Cash Provided by (Used in) Operating Activities								(10,649,851	)		204,205

Cash Flows from Investing Activities
Purchase of Fixed Assets		(3,767	)		(1,386	)		(87,044	)		(4,182	)
Proceeds from Global Opportunity Fund Liquidation		-			303,349			-			301,976
Purchase of Investment Securities		(108,208	)		-			(758,208	)		-
Sales of Investment Securities to Related Party		2,480,000			-			2,480,000			-
Promissory Note to Related Party		(15,489	)		(200,000	)
Issuing Loan Receivable - Related Parties								(240,129	)		(200,000	)
Proceed from Loan Receivable - Related Parties								840,000			123,185
Net Cash Provided by Investing Activities								2,234,619			220,979
Net Cash Provided by Discontinued Investing Activities								-			-
Net Cash Provided by Investing Activities		2,352,536			101,963			2,234,619			220,979

Cash Flows from Financing Activities
Proceeds from Common stock Issuance								39,268,580			615,623
Proceeds from Exercise of Subsidiary Warrants		7,484			-			2,753,203			-
Proceeds Received in Advance of Warrant Exercise								-			1,419,605
Proceeds from Sale of Subsidiary Shares		250,000			2,210,491			280,000			2,264,791
Borrowing from PPP Loan		68,502			-
Dividend Paid on Subsidiary Preferred Stock								(73,750	)		(4,861	)
Proceed from Note Payable								-			671,634
Proceed from PPP Loan								68,502			-
Distribution to Non-controlling Interest Shareholders		(82,250	)		(197,400	)		(1,151,500	)		(197,400	)
Net Proceeds from (Repayment to) Notes Payable - Related Parties		(1,200,000	)		17,501
Net Cash (Used in) Provided by Financing Activities		(956,264	)		2,030,592
Repayment to Notes Payable								(690,035	)		(265,367	)
Proceeds from Notes Payable - Related Parties								5,545,495			-
Repayment to Notes Payable - Related Parties								(2,102,400	)		202,167
Net Cash Provided by Financing Activities								43,898,095			4,706,192
Net Cash Provided by Discontinued Financing Activities								-			-
Net Cash Provided by Financing Activities								43,898,095			4,706,192

Net Increase in Cash and Restricted Cash		(1,908,585	)		1,949,958			34,482,863			5,131,376
Effects of Foreign Exchange Rates on Cash		(321,788	)		(39,411	)		(293,205	)		14,844
Cash and Restricted Cash - Beginning of Year		31,235,456			8,039,433
Cash and Restricted Cash - Beginning of Period								31,735,479			8,552,744
Cash and Restricted Cash- End of Period	$	29,005,083		$	9,949,980		$	66,925,137		$	13,698,964

Supplementary Cash Flow Information
Cash Paid for Interest	$	6,627		$	4,181		$	14,454		$	8,031
Cash Paid for Taxes	$	451,410		$	-		$	451,410		$	-

Supplemental Disclosure of Non-Cash Investing and Financing Activities
Unrealized Gain on Investment	$	(1,987	)	$	-
Unrealized Loss on Investment							$	(37,909	)	$	-
Initial Recognition of ROU / Lease Liability	$	256,928		$	-		$	256,928		$	-
Acquiring True Partner Stock	$	10,003,689		$	-
Sales of Investment in Vivacitas to Related Party	$	2,279,872		$	-
Acquiring True Partner Stock by Issuing Promissory Note							$	10,003,689		$	-
Sale of Investment in Vivacitas to Related Party							$	2,279,872		$	-
Transactions under Common Control	$	57,190,499		$	-		$	57,190,499		$	-
Beneficial Conversion Feature	$	(50,770,192	)	$	-		$	(50,770,192	)	$	-
Convert Related Party Note Payable to Common Stock							$	64,226,566		$	-

Alset EHome International Inc. (the “Company” or “AEI”), formerly known as HF Enterprises Inc., was incorporated in the State of Delaware on March 7, 2018 and 1,000 shares of common stock was issued to Chan Heng Fai, the founder, Chairman and Chief Executive Officer of the Company. AEI is a diversified holding company principally engaged in ~~property~~the development of EHome communities and other real estate, financial services, digital transformation ~~technology~~technologies, biohealth activities and ~~biohealth businesses~~consumer products with operations in the United States, Singapore, Hong Kong, Australia and South Korea. The Company manages its principal businesses primarily through its subsidiary, Alset International Limited (“Alset International”, f.k.a. Singapore eDevelopment Limited), a company publicly traded on the Singapore Stock Exchange.

The Company has four operating segments based on the products and services offered. These include ~~our~~the three principal businesses that have been the majority of our operations – ~~property development,~~real estate, digital transformation technology and biohealth – as well as a fourth category consisting of certain other business activities. At the present time, our financial services activities are reported under our other business activities. Our biohealth activities include the sale of consumer products.

The accompanying consolidated financial statements have been prepared on the basis that the Company is a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company has experienced losses from operations over the past six months. As of and for the six months ended June 30, 2021, the Company had an accumulated deficit of $117,799,610 and a loss of $5,082,288 from operations.

As a result, these conditions may raise substantial doubt regarding our ability to continue as a going concern twelve months from the date of issuance of our consolidated financial statements. However, the Company expects to have high volume of cash in hand and strong operating cash inflows for at least the next twelve months. As of June 30, 2021, the Company had cash $59,529,026 and restricted cash $7,396,111 compared to cash $24,965,946 and restricted cash $6,769,533 as of December 31, 2020. SeD Maryland Development LLC has an $8 million credit line from Manufacturers and Traders Trust Company (“M&T Bank”) and the loan balance with M&T Bank was $0 as of June 30, 2021. Management has evaluated the conditions in relation to the Company’s ability to meet its obligations and plans to continue borrowing funds from third party financial institutions in order to meet the operating cash requirements. As of June 30, 2021 and December 31, 2020, the loans from related party were $5,989,374 and $2,534,281. Funding the Company’s operations is our first priority, before repaying related party debtors. Therefore, available cash will be used to fund the Company’s operations before related party debtor repayments. At the same time management will concurrently work with the related party debtors on a plan to repay the related party loans, which are repayable on demand.

During the six months ended June 30, 2021, the revenue from lot sales was approximately $8.5 million and revenue from our biohealth business was approximately $3.7 million. Furthermore, the Company had not defaulted on any principal and interest repayment on its loans and borrowings and had repaid one of its bank loans during the year.

As a result of management’s plans, high volume cash in bank accounts, favorable cash revenue from real estate and biohealth operations in six months ended on June 30, 2021, and availability of $8 million line of credit under M&T Bank loan agreement, the Company believes the initial conditions which raised substantial doubt regarding the ability to continue as a going concern have been alleviated. However, we cannot predict, with certainty, the outcome of our actions to generate liquidity and the failure to do so could negatively impact our future operations.

The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and following the requirements of the Securities and Exchange Commission (“SEC”) for interim reporting. These interim financial statements have been prepared on the same basis as the Company’s annual financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair statement of the Company’s financial information. These interim results are not necessarily indicative of the results to be expected for the year ending December 31, 2021 or any other interim periods or for any other future years. These unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto included in the Company’s Form 10-K for the year ended December 31, 2020 filed on April 14, 2021.

The consolidated financial statements include all accounts of the Company and its majority owned and controlled subsidiaries. The Company consolidates entities in which it owns more than 50% of the voting common stockand controls operations. All intercompany transactions and balances among consolidated subsidiaries have been eliminated.

The Company’s consolidated financial statements include the financial position, results of operations and cash flows of the following entities as of ~~March 31,~~June 30, 2021 and December 31, 2020, as follows:

*Although the Company indirectly holds percentage of shares of these entities less than 50%, the subsidiaries of the Company directly hold more than 50% of shares of these entities, and therefore, they are still consolidated into the Company.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates made by management include, but are not limited to, allowance for doubtful accounts, valuation of real estate assets, allocation of development costs and capitalized interest to sold lots, fair value of the investments, the valuation allowance of deferred taxes, and contingencies. Actual results could differ from those estimates.

In our property development business, land acquisition costs are allocated to each lot based on the area method, the size of the lot compared to the total size of all lots in the project. Development costs and capitalized interest are allocated to lots sold based on the total expected development and interest costs of the completed project and allocating a percentage of those costs based on the selling price of the sold lot compared to the expected sales values of all lots in the project.

If allocation of development costs and capitalized interest based on the projection and relative expected sales value is impracticable, those costs could also be allocated based on area method, the size of the lot compared to the total size of all lots in the project.

On March 12, 2021, the Company entered into a Securities Purchase Agreement (the “SPA”) with Chan Heng Fai, the founder, Chairman and Chief Executive Officer of the Company, for four proposed transactions, consisting of (i) purchase of certain warrants (the “Warrants”) to purchase 1,500,000,000 shares of Alset International Limited (“Alset International”), which was valued at ~~$28,363,966;~~$28,363,966; (ii) purchase of all of the issued and outstanding stock of LiquidValue Development Pte Ltd. (“LVD”), which was valued at ~~$173,395;~~$173,395; (iii) purchase of 62,122,908 ordinary shares in True Partner Capital Holding Limited (HKG: 8657) (“True Partner”), which was valued at ~~$6,729,629;~~$6,729,629; and (iv) purchase of 4,775,523 shares of the common stock of American Pacific Bancorp Inc. (“APB”), which was valued at ~~$28,653,138.~~$28,653,138. The total amount of above four transactions was ~~$63,920,129,~~$63,920,129, payable on the Closing Date by the Company, in the convertible promissory notes (“Alset CPNs”), which, subject to the terms and conditions of the Alset CPNs and the Company’s shareholder approval, shall be convertible into shares of the Company’s common stock (“AEI Common Stock”), par value ~~$0.001~~ $0.001 per share, at the conversion price of AEI’s Stock Market Price. AEI’s Stock Market Price shall be ~~$5.59~~ $5.59 per share, equivalent to the average of the five closing per share prices of AEI’s Common Stock preceding January 4, 2021 as quoted by Bloomberg L.P. The above four acquisitions from Chan Heng Fai are transactions between entities under common control.

On October 15, 2020, American Pacific Bancorp (which subsequently became a majority-owned subsidiary of the Company) entered into an acquisition agreement to acquire 3,500,001 common shares of HengFeng Finance Limited (“HFL”), representing 100% of the common shares of HFL, in consideration for $1,500,000, to be satisfied by the issuance and allotment of 250,000 shares of the Class A Common Stock of American Pacific Bancorp. HFL is incorporated in Hong Kong with limited liability. The principal activities of HFL are money lending, securities trading and investment. This transaction closed on April 21, 2021. This transaction between the Company and Chan Heng Fai is under common control of Chan Heng Fai.

The common control transactions resulted in the following basis of accounting for the financial reporting periods:

~~AEI~~ AEI’s stock price was ~~$10.03~~ $10.03 on March 12, 2021, the commitment date. The Beneficial Conversion Feature (“BCF”) intrinsic value was ~~$50,770,192~~ $50,770,192 for the four convertible promissory notes and was recorded as debt discount of convertible notes after these transactions. The debt discount attributable to the BCF is amortized over period from issuance to the date that the debt becomes convertible using the effective interest method. If the debt is converted, the discounted is amortized to finance cost in full immediately. AsOn May 13, 2021 and June 14, 2021 all Alset CPNs of ~~March 31, 2021, the promissory notes net of debt discount were $13,695,853~~ $63,920,128 and accrued ~~interest was $41,239. During~~interests of $306,438 were converted into 2,123 shares of series B preferred stock and 9,163,965 shares of common stock of the ~~three months ended on March 31, 2021, the amortized debt discount recorded as finance cost was $545,916.~~Company.

The Company considers all highly liquid investments with a maturity of three months or less at the date of acquisition to be cash equivalents. Cash and cash equivalents include cash on hand and at the bank and short-term deposits with financial institutions that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in values. There were no 0cash equivalents as of ~~March 31,~~June 30, 2021 and December 31, 2020.

As a condition to the loan agreement with the Manufacturers and Traders Trust Company (“M&T Bank”), the Company is required to maintain a minimum of ~~$2,600,000~~ $2,600,000 in an interest-bearing account maintained by the lender as additional security for the loans. ~~The fund is~~These funds are required to remain as collateral for the loan until the loan is paid off in full and the loan agreement is terminated. The Company also has an escrow account with M&T Bank to deposit a portion of cash proceeds from lot sales. The ~~fund~~funds in the escrow account isare specifically used for the payment of the loan from M&T Bank. ~~The fund is~~These funds are required to remain in the escrow account for the loan payment until the loan agreement terminates. As of ~~March 31,~~June 30, 2021 and December 31, 2020, the total balance of these two accounts was ~~$8,099,097~~ $4,757,477 and ~~$5,729,067,~~$5,729,067, respectively.

As a condition to the loan agreement with National Australian Bank Limited in conjunction with the Perth project, an Australian real estate development project, the Company is required to maintain Australian Dollar 50,000, in a non-interest-bearing account. As of ~~March 31,~~June 30, 2021 and December 31, 2020, the account balance was ~~$38,043~~ $37,540 and ~~$38,550,~~$38,550, respectively. These funds will remain as collateral for the loans until paid in full.

The Company puts money into brokerage accounts specifically for equity investment. As of ~~March 31,~~June 30, 2021 and December 31, 2020, the cash balance in these brokerage accounts was ~~$499,251~~ $2,601,096 and ~~$1,001,916,~~$1,001,916, respectively.

Account receivables is stated at amounts due from buyers, contractors, and all third parties, net of an allowance for doubtful accounts. As of ~~March 31,~~June 30, 2021 and December 31, 2020, the balance of account receivables was ~~$1,062,278~~ $1,180,881 and ~~$1,366,194,~~$1,366,194, respectively. Approximately ~~$0.9~~ $1million and ~~$1.3~~ $1.3 million of account receivables as of ~~March 31,~~June 30, 2021 and December 31, 2020, respectively, was from DSS with a merchant agreement, under which the Company uses DSS credit card platform to collect money from our direct sales.

The Company monitors its account receivables balances monthly to ensure that they are collectible. On a quarterly basis, the Company uses its historical experience to estimate its allowance for doubtful account receivables. The Company’s allowance for doubtful accounts represents an estimate of the losses expected to be incurred based on specifically identified accounts as well as nonspecific amount, when determined appropriate. Generally, the amount of the allowance is primarily decided by division management’s historical experience, the delinquency trends, the resolution rates, the aging of receivables, the credit quality indicators and financial health of specific customers. As of ~~March 31,~~June 30, 2021 and December 31, 2020, the allowance was ~~$0.~~$0.

Inventories are stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method and includes all costs in bringing the inventories to their present location and condition. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs necessary to make the sale. As of ~~March 31,~~June 30, 2021 and December 31, 2020, inventory consisted of finished goods from HWH World Inc. The Company continuously evaluates the need for reserve for obsolescence and possible price concessions required to write-down inventories to net realizable value.

Investments represent equity investments with readily determinable fair values, equity-method investments, equity investments without readily determinable fair values and debt securities.

The Company holds investments in equity securities with readily determinable fair values, equity investments without readily determinable fair values, investments accounted for under the equity method, and investments at cost.

~~Prior to the adoption of Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2016-01,~~ ~~Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities~~, investments in equity securities were classified as either 1) available-for-sale securities, stated at fair value, and unrealized holding gains and losses, net of related tax effects, were recorded directly to accumulated other comprehensive income (loss) or 2) trading securities, stated at fair value, and unrealized holding gains and losses, net of related tax benefits, were recorded directly to net income (loss). With the adoption of ASU 2016-01 on January 1, 2018, investments in equity securities are still stated at fair value, quoted by market prices, but all unrealized holding gains and losses are credited or charged to net income (loss) based on fair value measurement as the respective reporting date.

~~The Company accounts for certain of its investments in equity securities in accordance with ASU 2016-01~~ ~~Financial Instruments—Overall (Subtopic 825- 10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”)~~~~. In accordance with ASU 2016-01, the~~ Company records all equity investments with readily determinable fair values at fair value calculated by the publicly traded stock price at the close of the reporting period. Amarantus BioScience Holdings (“AMBS”) and Ture Partner Capital Holding Limited (“True Partner”) are publicly traded companies. The Company does not have significant influence over AMBS and True Partner, as the Company is the beneficial owner of approximately ~~5.4%~~5.3% of the common shares of AMBS and ~~15.5%~~15.5% of True Partner. The stock’s fair value is determined by quoted stock prices.

On April 12, 2021 the Company acquired 6,500,000 common shares of Value Exchange International, Inc. (“Value Exchange International”), an OTC listed company, for an aggregate subscription price of $650,000. After the transaction the Company owns approximately 18% of Value Exchange International and does not have significant influence on it. The stock’s fair value is determined by quoted stock prices.

During the six months ended June 30, 2021, the Company subsidiaries established a portfolio of trading securities. The objective is to generate profits on short-term differences in market prices. The Company does not have significant influence over any trading securities in our portfolio and fair value of these trading securities are determined by quoted stock prices.

The Company has elected the fair value option for the equity securities noted below that would otherwise be accounted for under the equity method of accounting. Holista CollTech Limited (“Holista”), Document Securities Systems Inc. (“DSS”), OptimumBank Holdings, Inc. (“OptimumBank”) and American Premium Water Corp (“APW”) are publicly traded companies and fair value is determined by quoted stock prices. The Company has significant influence but does not have a controlling interest in these investments, and therefore, the Company’s investment could be accounted for under the equity method of accounting or elect fair value accounting.

The Company invested $50,000 in a convertible promissory note of Sharing Services, Inc. (“Sharing Services Convertible Note”), a company quoted on the US OTC market. The value of the convertible note was estimated by management using a Black-Scholes valuation model. The fair value of the note was $64,991 and $66,978 on March 31, 2021 and December 31, 2020, respectively.

On February 26, 2021, the Company invested approximately $88,599 in the convertible note of Vector Com Co., Ltd (“Vector Com”), a private company in South Korea. The interest rate is 2% per annum and maturity is two years. The conversion price is approximately $21.26, per common share of Vector Com. As of March 31, 2021, the Management estimated that the fair value of the note to be $88,599, the initial transaction price.

On March 2, 2020, the Company received warrants to purchase shares of American Medical REIT Inc. (“AMRE”), a related party private startup company, in conjunction with the Company lending a ~~$200,000~~ $200,000 promissory note. For further details on this transaction, refer to Note 810 - Related Party Transactions, Note Receivable from a Related Party Company. As of ~~March 31,~~June 30, 2021 and December 31, 2020, AMRE was a private company. Based on management’s analysis, the fair value of the AMRE warrants ~~and the stock option~~ was $0 $0 as of ~~March 31,~~June 30, 2021 and December 31, 2020.

The Company held a stock option to purchase 250,000 shares of Vivacitas common stock at $1 $1 per share at any time prior to the date of a public offering by Vivacitas. As of December 31, 2020, Vivacitas was a private company. Based on management’s analysis, the fair value of the Vivacitas stock option was $0 $0 as of December 31, 2020. On March 18, 2021 the Company sold the subsidiary holding the ownership and stock option in Vivacitas to an indirect subsidiary of DSS. For further details on this transaction, refer to Note 910 - Related Party Transactions, Sale of Investment in Vivacitas to DSS.

In the first quarter of 2021, the Company subsidiaries established a portfolio of trading securities. The objective is to generate profits on short-term differences in market prices. During the three months ended March 31, 2021, the Company incurred approximately $4.6 million in purchase of trading securities, received approximately $1.9 million for sale and $285,245 was recognized as realized loss on securities investment.

Investments in equity securities without readily determinable fair values are measured at cost minus impairment adjusted by observable price changes in orderly transactions for the identical or a similar investment of the same issuer. These investments are measured at fair value on a nonrecurring basis when there are events or changes in circumstances that may have a significant adverse effect. An impairment loss is recognized in the consolidated statements of comprehensive income equal to the amount by which the carrying value exceeds the fair value of the investment.

The Company had an equity holding in Vivacitas Oncology Inc. (“Vivacitas”), a private company that is currently not listed on an exchange. Vivacitas was acquired after the adoption of ASU 2016-01. The Company applied ASC 321, Investments – Equity Securities, and elected the measurement alternative for equity investments that do not have readily determinable fair values and do not qualify for the practical expedient in ASC 820 to estimate fair value using the NAV per share. Under the alternative, weWe measure Vivacitas at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. ~~Ownership~~Our ownership in Vivacitas was sold on March 18, 2021 ~~at the price of $2,480,000~~ to ~~DSS.~~DSS for $2,480,000. The difference of ~~$2,279,872~~ $2,279,872 between the selling price and our original investment cost was recorded as additional paid capital considering a related party transaction. For further details on this transaction, refer to Note 910 – Related Party Transactions.

On September 8, 2020, the Company acquired 1,666 shares, approximately ~~1.45%~~1.45% ownership, from Nervotec Pte Ltd (“Nervotec”), a private company, at the purchase price of ~~$37,826.~~$37,826. The Company applied ASC 321 and measured Nervotec at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer.

On September 30, 2020, the Company acquired 20,000 shares, approximately ~~19%~~19% ownership, from Hyten Global (Thailand) Co., Ltd (“Hyten”), a private company, at a purchase price of ~~$42,562.~~$42,562. Hyten is a direct sales company in Thailand. The Company does not have significant influence over Hyten and applied ASC 321 and measured Hyten at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer.

InDuring the ~~first quarter of~~six months ended June 30, 2021, the Company invested ~~$19,609~~ $19,609 in K Beauty Research Lab Co., Ltd (“K Beauty”) for ~~18%~~18% ownership. K Beauty was established for sourcing, developing and producing variety of Korea-made beauty products as well as Korea - originated beauty contents for the purpose of distribution to HWH’s membership distribution channel.

There has been no indication of impairment or changes in observable prices via transactions of similar securities and investments are still carried at cost.

The Company accounts for equity investment in entities with significant influence under equity-method accounting. Under this method, the Group’s pro rata share of income (loss) from investment is recognized in the consolidated statements of comprehensive income. Dividends received reduce the carrying amount of the investment. When the Company’s share of loss in an equity-method investee equals or exceeds its carrying value of the investment in that entity, the Company continues to report its share of equity method losses in the statements of comprehensive income to the extent and as an adjustment to the carrying amount of its other investments in the investee. Equity-method investment is reviewed for impairment by assessing if the decline in market value of the investment below the carrying value is other-than-temporary. In making this determination, factors are evaluated in determining whether a loss in value should be recognized. These include consideration of the intent and ability of the Group to hold investment and the ability of the investee to sustain an earnings capacity, justifying the carrying amount of the investment. Impairment losses are recognized in other expense when a decline in value is deemed to be other-than- temporary.

LiquidValue Asset Management Pte. Ltd. (“LiquidValue”), a subsidiary of the Company owns ~~36.1%~~less than 1% of American Medical REIT Inc. (“AMRE”), as of June 30, 2021, a startup REIT company concentrating on medical real estate. AMRE acquires state-of-the-art, purpose-built healthcare facilities and leases them to leading clinical operators with dominant market share under secure triple net leases. AMRE targets hospitals (both Critical Access and Specialty Surgical), Physician Group Practices, Ambulatory Surgical Centers, and other licensed medical treatment facilities. Chan Heng Fai, our CEO, is the executive chairman and director of AMRE. LiquidValue did not invest equity but provided a loan to AMRE (for further details on this transaction, refer to Note 9,10, Related Party Transactions). On balance sheet, the prorate loss from AMRE was recorded as a liability, accumulated losses on equity method investment. During three months ended ~~March 31,~~June 30, 2021 and 2020, the investment losses from AMRE were ~~$24,847~~ $77,459 and ~~$0,~~$140,740, respectively. During six months ended June 30, 2021 and 2020, the investment losses from AMRE were $102,306 and $140,740, respectively. As of ~~March 31,~~June 30, 2021 and December 31, 2020, the accumulated losses on equity method investment were ~~$290,776~~ $368,235 and ~~$265,929,~~$265,929, respectively.

BioLife Sugar, Inc. (“BioLife’), a subsidiary consolidated under Alset International, entered into a joint venture agreement on April 25, 2018 with Quality Ingredients, LLC (“QI”). The agreement created an entity called Sweet Sense, Inc. (“Sweet Sense”) which is 50% owned by BioLife and 50% owned by QI. Management believes its 50% investment represents significant influence over Sweet Sense and accounts for the investment under the equity method of accounting.

On November 8, 2019, Impact BioMedical Inc., a subsidiary of the Company, purchased 50% of Sweet Sense from QI for $91,000 and recorded a loss from acquisition of $90,001. As of November 8, 2019, the total investment in joint venture was equal to $91,000 and the proportionate losses totaled $90,001. The transaction was not in the scope of ASC 805 Business Combinations since the acquisition was accounted for an asset purchase instead of a business combination. As an asset acquisition, the Company recorded the transaction at cost and applied ASC 730 to expense in-process research and development cost, the major cost of Sweet Sense. Consequently, Sweet Sense was an 81.8% owned subsidiary of Impact BioMedical Inc. and therefore, was consolidated into the Company’s condensed consolidated financial statements as of June 30, 2020. As a subsidiary of Impact BioMedical Inc., Sweet Sense was in the discontinued operations of Impact BioMedical Inc. (See Note 13 Discontinued Operations).

On April 20, 2021 one of Company’s indirect subsidiaries, SeD Capital Pte. Ltd. (“SeD Capital”), entered into joint venture agreement with digital asset management firm Novum Alpha Pte Ltd (“Novum”). Pursuant to this agreement, SeD Capital will own 50% of the issued and paid-up capital in the joint venture company, Credas Capital Pte Ltd (“Credas”) with the remaining 50% shareholding stake held by Novum. Credas intends to develop and launch its maiden digital assets-based Exchange-Traded Product in the fourth quarter of 2021 on the SIX Swiss Exchange, Switzerland’s principal stock exchange and one of Europe’s largest stock exchanges.

Debt securities are reported at fair value, with unrealized gains and losses (other than impairment losses) recognized in accumulated other comprehensive income or loss. Realized gains and losses on debt securities are recognized in the net income in the consolidated statements of comprehensive income. The Company monitors its investments for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, the operating performance of the companies including current earnings trends and other company-specific information.

The Company invested $50,000 in a convertible promissory note of Sharing Services, Inc. (“Sharing Services Convertible Note”), a company quoted on the US OTC market. The value of the convertible note was estimated by management using a Black-Scholes valuation model. The fair value of the note was $29,069 and $66,978 on June 30, 2021 and December 31, 2020, respectively.

On February 26, 2021, the Company invested approximately $88,599 in the convertible note of Vector Com Co., Ltd (“Vector Com”), a private company in South Korea. The interest rate is 2% per annum and maturity is two years. The conversion price is approximately $21.26, per common share of Vector Com. As of June 30, 2021, the Management estimated that the fair value of the note to be $88,599, the initial transaction price.

Real estate assets are recorded at cost, except when real estate assets are acquired that meet the definition of a business combination in accordance with Financial Accounting Standards Board (“FASB”) ASC 805 - “Business Combinations”, which acquired assets are recorded at fair value. Interest, property taxes, insurance and other incremental costs (including salaries) directly related to a project are capitalized during the construction period of major facilities and land improvements. The capitalization period begins when activities to develop the parcel commence and ends when the asset constructed is completed. The capitalized costs are recorded as part of the asset to which they relate and are reduced when lots are sold.

The Company capitalized construction costs of approximately ~~$1.2~~ $0.2 million and ~~$2.4~~ $3.7 million for the three months ended ~~March 31,~~June 30, 2021 and 2020, respectively. The Company capitalized construction costs of approximately $1.4 million and $6.1 million for the six months ended June 30, 2021 and 2020, respectively.

The Company’s policy is to obtain an independent third-party valuation for each major project in the United States as part of our assessment of identifying potential triggering events for impairment. Management may use the market comparison method to value other relatively small projects, such as the project in Perth, Australia. In addition to the annual assessment of potential triggering events in accordance with ASC 360 – Property Plant and Equipment (“ASC 360”), the Company applies a fair value-based impairment test to the net book value assets on an annual basis and on an interim basis if certain events or circumstances indicate that an impairment loss may have occurred.

The Company did not record impairment on any of its projects during the three and six months ended on ~~March 31,~~June 30, 2021 and 2020.

Properties under development are properties being constructed for sale in the ordinary course of business, rather than to be held for the Company’s own use, rental or capital appreciation.

Rental properties are acquired with the intent to be rented to tenants. On March 15, 2021 and May 11, 2021 Alset EHome, Inc. signed ~~twenty separate Purchase Agreements,~~purchase agreements to acquire 2030 homes in Montgomery County, Texas. ~~On March 31,~~By June 30, 2021, all of the ~~first batch~~30 homes were closed for an aggregate purchase price of ~~10 homes was closed with the purchase cost of $2,161,680.~~$6,825,907. All of these purchased homes are properties of our rental business.

The Company accounts for its investments in single-family residential properties as asset acquisitions and records these acquisitions at their purchase price. The purchase price is allocated between land, building, improvements and existing leases based upon their relative fair values at the date of acquisition. The purchase price for purposes of this allocation is inclusive of acquisition costs which typically include legal fees, title fees, property inspection and valuation fees, as well as other closing costs.

Building improvements and buildings are depreciated over estimated useful lives of approximately 10 to 27.5 years, respectively, using the straight-line method.

The Company assesses its investments in single-family residential properties for impairment whenever events or changes in business circumstances indicate that carrying amounts of the assets may not be fully recoverable. When such events occur, management determines whether there has been impairment by comparing the asset’s carrying value with its fair value. Should impairment exist, the asset is written down to its estimated fair value. The Company did not recognize any impairment losses during the six months ended on June 30, 2021.

ASC 606 - Revenue from Contracts with Customers (“ASC 606”), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The Company adopted this new standard on January 1, 2018 under the modified retrospective method. The adoption of this new standard did not have a material effect on our financial statements.

In accordance with ASC 606, revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for these goods or services. The provisions of ASC 606 include a five-step process by which the determination of revenue recognition, depicting the transfer of goods or services to customers in amounts reflecting the payment to which the Company expects to be entitled in exchange for those goods or services. ASC 606 requires the Company to apply the following steps:

(1) identify the contract with the customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, performance obligations are satisfied.

The following represents the Company’s revenue recognition policies by Segments:

The Company’s main business is land development. The Company purchases land and develops it for building into residential communities. The developed lots are sold to builders (customers) for the construction of new homes. The builders enter a sales contract with the Company before they take the lots. The prices and timeline are determined and agreed upon in the contract. The builders do the inspections to make sure all conditions and requirements in contracts are met before purchasing the lots. A detailed breakdown of the five-step process for the revenue recognition of the Ballenger ~~and Black Oak projects,~~project, which represented approximately ~~69%~~70% and ~~100%~~99%, respectively, of the Company’s revenue in the ~~three~~six months ended on ~~March 31,~~June 30, 2021 and 2020, is as follows:

The Company has signed agreements with the builders for developing the raw land to ready to build lots. The contract has agreed upon prices, timelines, and specifications for what is to be provided.

Performance obligations of the Company include delivering developed lots to the customer, which are required to meet certain specifications that are outlined in the contract. The customer inspects all lots prior to accepting title to ensure all specifications are met.

The transaction price per lot is fixed and specified in the contract. Any subsequent change orders or price changes are required to be approved by both parties.

Each lot or a group of lots is considered to be a separate performance obligation, for which the specified price in the contract is allocated to.

The builders do the inspections to make sure all conditions/requirements are met before taking title of lots. The Company recognizes revenue at a point in time when title is transferred. The Company does not have further performance obligations or continuing involvement once title is transferred.

The Company leases real estate properties to its tenants under leases that are predominately classified as operating leases, in accordance with ASC 842, Leases (“ASC 842”). Real estate rental revenue is comprised of minimum base rent and revenue from the collection of lease termination fees.

Rent from tenants is recorded in accordance with the terms of each lease agreement on a straight-line basis over the initial term of the lease. Rental revenue recognition begins when the tenant controls the space and continues through the term of the related lease. Generally, the Company’s leases provide the tenant with one or more multi-year renewal options, including mostly the same terms and conditions provided under the initial lease term, subject to rent increases

The Company defers rental revenue related to lease payments received from tenants in advance of their due dates. These amounts are presented within deferred revenues and other payables on the Company’s consolidated balance sheets.

Rental revenue is subject to an evaluation for collectability on several factors, including payment history, the financial strength of the tenant and any guarantors, historical operations and operating trends of the property, and current economic conditions. If our evaluation of these factors indicates that it is not probable that we will recover substantially all of the receivable, rental revenue is limited to the lesser of the rental revenue that would be recognized on a straight-line basis (as applicable) or the lease payments that have been collected from the lessee. Differences between rental revenue recognized and amounts contractually due under the lease agreements are credited or charged to straight-line rent receivable or straight-line rent liability, as applicable. For the six months ended June 30, 2021, the Company didn’t recognize any deferred revenue and collected all rents due.

We have established a front foot benefit (“FFB”) assessment on all of the NVR lots. This is a 30-year annual assessment allowed in Frederick County which requires homeowners to reimburse the developer for the costs of installing public water and sewer to the lots. These assessments become effective as homes are settled, at which time we can sell the collection rights to investors who will pay an upfront lump sum, enabling us to realize the revenue more quickly. The selling prices range from ~~$3,000~~ $3,000 to ~~$4,500~~ $4,500 per home depending on the type of the home. Our total revenue from the front foot benefit assessment is approximately $1 $1 million. To recognize revenue of FFB assessment, both our and NVR’s performance obligation must be satisfied. Our performance obligation is completed once we complete the construction of water and sewer facility and close the lot sales with NVR, which inspects these water and sewer facility prior to close lot sales to ensure all specifications are met. NVR’s performance obligation is to sell homes they build to homeowners. Our FFB revenue is recognized on quarterly basis after NVR closes sales of homes to homeowners. The agreement with these FFB investors is not subject to amendment by regulatory agencies and thus our revenue from FFB assessment is not either. During the three months ended on ~~March 31,~~June 30, 2021 and 2020, we recognized revenue ~~$107,071~~ $141,575 and ~~$40,322~~ $74,879 from FFB assessment, respectively. During the six months ended on June 30, 2021 and 2020, we recognized revenue $248,646 and $115,202 from FFB assessment, respectively.

Land acquisition costs are allocated to each lot based on the area method, the size of the lot ~~comparing~~compared to the total size of all lots in the project. Development costs and capitalized interest are allocated to lots sold based on the total expected development and interest costs of the completed project and allocating a percentage of those costs based on the selling price of the sold lot compared to the expected sales values of all lots in the project.

If allocation of development costs and capitalized interest based on the projection and relative expected sales value is impracticable, those costs could also be allocated based on area method, the size of the lot ~~comparing~~compared to the total size of all lots in the project.

The Company’s net sales consist of product sales. The Company’s performance obligation is to transfer its products to its third-party independent distributors (“Distributors”). The Company generally recognizes revenue when product is shipped to its Distributors.

The Company’s Distributors may receive distributor allowances, which are comprised of discounts, rebates and wholesale commission payments from the Company. Distributor allowances resulting from the Company’s sales of its products to its Distributors are recorded against net sales because the distributor allowances represent discounts from the suggested retail price.

In addition to distributor allowances, the Company compensates its sales leader Distributors with leadership incentives for services rendered, relating to the development, retention, and management of their sales organizations. Leadership incentives are payable based on achieved sales volume, which are recorded in general and administrative expenses. The Company recognizes revenue when it ships products. The Company receives the net sales price in cash or through credit card payments at the point of sale.

If a Distributor returns a product to the Company on a timely basis, he/she may obtain a replacement product from the Company for such returned products. In addition, the Company maintains a buyback program pursuant to which it will repurchase products sold to a Distributor who has decided to leave the business. Allowances for product returns, primarily in connection with the Company’s buyback program, are provided at the time the sale is recorded. This accrual is based upon historical return rates for each country and the relevant return pattern, which reflects anticipated returns to be received over a period of up to 12 months following the original sale.

The Company collects an annual membership fee from its Distributors. The fee is fixed, paid in full at the time of joining the membership and non-refundable. The membership provides the member access to purchase products at a discount, use to certain back-office services, receive commissions for signing up new members, and attend corporate events. The Company recognizes revenue associated with the membership over the period of the membership. Before the membership fee is recognized as revenue, it is recorded as deferred revenue. Deferred revenue relating to membership was ~~$3,430,893~~ $2,919,283and ~~$2,867,226~~ $2,867,226 at ~~March 31,~~June 30, 2021 and December 31, 2020, respectively.

As of ~~March 31,~~June 30, 2021 and December 31, 2020, there were no 0remaining performance obligations or continuing involvement, as all service obligations within the other business activities segment have been completed.

Items included in the financial statements of each entity in the Company are measured using the currency of the primary economic environment in which the entity operates (“functional currency”). The financial statements of the Company are presented in U.S. dollars (the “reporting currency”).

The functional and reporting currency of the Company is the United States dollar (“U.S. dollar”). The financial records of the Company’s subsidiaries located in Singapore, Hong Kong, Australia and South Korea are maintained in their local currencies, the Singapore Dollar (S$), Hong Kong Dollar (HK$), Australian Dollar (“AUD”) and South Korean Won (“KRW”), which are also the functional currencies of these entities.

Transactions in currencies other than the functional currency during the periods are converted into functional currency at the applicable rates of exchange prevailing when the transactions occurred. Transaction gains and losses are recognized in the statement of operations.

The majority of the Company’s foreign currency transaction gains or losses come from the effects of foreign exchange rate changes on the intercompany loans between Singapore entities and U.S. entities. The Company recorded foreign exchange gain of ~~$1,462,697~~ $958,334 and ~~$2,260,482~~$796,709 loss during the three months ended on ~~March 31,~~June 30, 2021 and 2020, respectively. The Company recorded foreign exchange gain of $2,421,031 and $1,463,773 during the six months ended on June 30, 2021 and 2020, respectively. The foreign currency transactional gains and losses are recorded in operations.

Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency at the rates of exchange ruling at the balance sheet date. The Company’s entities with functional currency of Singapore Dollar, Hong Kong Dollar, AUD and KRW, translate their operating results and financial positions into the U.S. dollar, the Company’s reporting currency. Assets and liabilities are translated using the exchange rates in effect on the balance sheet date. Revenue, expense, gains and losses are translated using the average rate for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of comprehensive income (loss).

For the three months ended on ~~March 31,~~June 30, 2021, the Company recorded other comprehensive loss from foreign currency translation of ~~$1,769,440~~ $1,070,191 and a ~~$1,674,021 loss~~$626,872 gain in the three months ended ~~March 31,~~June 30, 2020, in accumulated other comprehensive loss. For the six months ended on June 30, 2021, the Company recorded other comprehensive loss from foreign currency translation of $2,839,631 and a $1,047,149 loss in the six months ended June 30, 2020, in accumulated other comprehensive loss.

Non-controlling interests represent the equity in subsidiary not attributable, directly or indirectly, to owners of the Company, and are presented separately in the consolidated statements of operation and comprehensive income, and within equity in the Consolidated Balance Sheets, separately from equity attributable to owners of the Company.

On ~~March 31,~~June 30, 2021 and December 31, 2020, the aggregate non-controlling interests in the Company were ~~$33,673,855~~ $28,114,184 and ~~$37,980,325,~~$38,023,260, respectively.

Financing costs, such as loan origination fee, administration fee, interests and other related financing costs, should be capitalized and recorded on the balance sheet if these financing activities are directly associated with the development of real estates.

Capitalized Financing Costs are allocated to lots sold based on the total expected development and interest costs of the completed project and allocating a percentage of those costs based on the selling price of the sold lot compared to the expected sales values of all lots in the project. If the allocation of capitalized financing costs based on the projection and relative expected sales value is impracticable, those costs could also be allocated based on an area method, which uses the size of the lots compared to the total project area and allocates costs based on their size.

As of ~~March 31,~~June 30, 2021 and December 31, 2020, the capitalized financing costs were ~~$3,348,112~~ $3,257,033 and ~~$3,513,535,~~$3,513,535, respectively.

The Company evaluates the conversion feature for whether it was beneficial as described in ASC 470-30. The intrinsic value of a beneficial conversion feature inherent to a convertible note payable, which is not bifurcated and accounted for separately from the convertible note payable and may not be settled in cash upon conversion, is treated as a discount to the convertible note payable. This discount is amortized over the period from the date of issuance to the date the note is due using the effective interest method. If the note payable is retired prior to the end of its contractual term, the unamortized discount is expensed in the period of retirement to interest expense. In general, the beneficial conversion feature is measured by comparing the effective conversion price, after considering the relative fair value of detachable instruments included in the financing transaction, if any, to the fair value of the shares of common stock at the commitment date to be received upon conversion.

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). ASU 2016-13 requires financial assets measured at amortized cost to be presented at the net amount expected to be collected. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amounts. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. ASU 2016-13 is effective for annual reporting periods beginning after December 15, 2019, including interim periods within those fiscal years, and a modified retrospective approach is required, with a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. In November of 2019, the FASB issued ASU 2019-10, which delayed the implementation of ASU 2016-13 to fiscal years beginning after December 15, 2022 for smaller reporting companies. The Company is currently evaluating the impact of ASU 2016-13 on its future consolidated financial statements.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of Reference Rate Reform on Financial Reporting. The amendments in this Update provide optional expedients and exceptions for applying generally accepted accounting principles (GAAP) to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this Update apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The Company’s line of credit agreement provides procedures for determining a replacement or alternative rate in the event that LIBOR is unavailable. The amendments in this Update are effective for all entities as of March 12, 2020 through December 31, 2022. The Company is currently evaluating the impact of ASU 2020-04 on its future consolidated financial statements.

The Company maintains cash balances at various financial institutions in different countries. These balances are usually secured by the central banks’ insurance companies. At times, these balances may exceed the insurance limits. As of ~~March 31,~~June 30, 2021 and December 31, 2020, uninsured cash and restricted cash balances were ~~$26,238,531~~ $63,973,230 and ~~$25,752,637,~~$25,752,637, respectively.

For the three months ended ~~March 31,~~June 30, 2021, two customers accounted for approximately ~~97%~~97%, and 3%3% of the Company’s property and development revenue. For the three months ended ~~March 31,~~June 30, 2020, two customers accounted for approximately ~~99%~~96%, and 1%4% of the Company’s property and development revenue. For the six months ended June 30, 2021, two customers accounted for approximately 97%, and 3% of the Company’s property and development revenue. For the six months ended June 30, 2020, two customers accounted for approximately 98%, and 2% of the Company’s property and development revenue.

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision–making group, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision-maker is the CEO. The Company operates in and reports four business segments: ~~property development,~~real estate, digital transformation technology, biohealth, and other business activities. At the present time, our financial services activities are reported under our other business activities. Our biohealth revenues include the sale of consumer products. The Company’s reportable segments are determined based on the services they perform and the products they sell, not on the geographic area in which they operate. The Company’s chief operating decision maker evaluates segment performance based on segment revenue. Costs excluded from segment income (loss) before taxes and reported as “Other” consist of corporate general and administrative activities which are not allocable to the four reportable segments.

The following table summarizes the Company’s segment information for the following balance sheet dates presented, and for the ~~three~~six months ended ~~March 31,~~June 30, 2021 and 2020:

	Property Development			Digital Transformation Technology			Biohealth Business			Other			Total			Real Estate			Digital Transformation Technology			Biohealth Business			Other			Total

Three Months Ended March 31, 2021
Six Months Ended June 30, 2021
Revenue	$	3,894,131		$	-		$	1,712,783		$	-		$	5,606,914		$	8,478,673		$	-		$	3,671,673		$	-		$	12,150,346
Cost of Sales		(3,614,832	)		-			(83,022	)		-			(3,697,854	)		(6,125,201	)		-			(180,603	)		-			(6,305,804	)
Gross Margin		279,299			-			1,629,761			-			1,909,060			2,353,472			-			3,491,070			-			5,844,542
Operating Expenses		(359,489	)		(30,128	)		(846,480	)		(1,076,408	)		(2,312,505	)		(625,555	)		(69,375	)		(1,910,582	)		(8,321,318	)		(10,926,830	)
Operating Income (Loss)		(80,190	)		(30,128	)		783,281			(1,076,408	)		(403,445	)		1,727,917			(69,375	)		1,580,488			(8,321,318	)		(5,082,288	)
Other Income (Expense)		(9,873	)		(36,471	)		(8,371,117	)		(532,505	)		(8,949,966	)		(9,177	)		617,562			(28,743,495	)		(51,026,886	)		(79,161,996	)
Net Income (Loss) Before Income Tax		(90,063	)		(66,599	)		(7,587,836	)		(1,608,913	)		(9,353,411	)		1,718,740			548,187			(27,163,007	)		(59,348,204	)		(84,244,284	)

Due to the transactions with Chan Heng Fai on March 12, 2021 and acquisition of HengFeng Finance Limited (“HFL”) on April 21, 2021, transactions between entities under common control (~~for~~(for further details on these transactions, refer to Note 23 – Summary of Significant Accounting Policies), the Company has disclosed the Consolidated Statement of Operations and Other Comprehensive Income for the ~~Three~~Six Months Ended on ~~March 31,~~June 30, 2020 and Consolidated Balance Sheet as of December 31, 2020, to adjust the information on a consolidated basis as follows:

Consolidated Statement of Operations and Other Comprehensive Income for the ~~Three~~Six Months Ended on ~~March 31,~~June 30, 2020

	As Previously Reported			Acquisition of APB under Common Control			Acquisition of LVD Ltd under Common Control			As Combined			As Previously Reported			Acquisition of APB and HFL under Common Control			Acquisition of LVD Ltd under Common Control			As Combined
Revenue
Property Sales	$	2,954,389		$	-		$	-		$	2,954,389
Biohealth Product Sales		10,782			-			-			10,782
Real Estate													$	5,001,794		$	-		$	-		$	5,001,794
Biohealth														29,202			-			-			29,202
Revenue
		2,965,171			-			-			2,965,171			5,030,996			-			-			5,030,996
Operating Expenses
Cost of Sales		2,383,703			-			-			2,383,703			3,992,926			-			-			3,992,926
General and Administrative		920,124			81,226			500			1,001,850			3,398,753			183,903			5,868			3,588,524
Research and Development		2,009			-			-			2,009
Total Operating Expenses		3,305,836			81,226			500			3,387,562			7,391,679			183,903			5,868			7,581,450

Loss From Operations		(340,665	)		(81,226	)		(500	)		(422,391	)		(2,360,683	)		(183,903	)		(5,868	)		(2,550,454	)

Other Income (Expense)
Interest Income		7,810			11,580			25			19,415			12,491			21,485			51			34,027
Interest Expense		(60,931	)		-			-			(60,931	)		(140,516	)		-			-			(140,516	)
Foreign Exchange Transaction Gain (Loss)		2,118,952			-			141,530			2,260,482
Foreign Exchange Transaction Gain														1,375,471			-			88,302			1,463,773
Unrealized Gain (Loss) on Securities Investment		484,362			(26,034	)		94			458,422			1,592,647			(31,259	)		98			1,561,486
Realized Gain on Securities Investment														2,281						24,114			26,395
Loss on Investment on Security by Equity Method														(140,740	)								(140,740	)
Finance Costs		-			(4,890	)		(13	)		(4,903	)		-			(4,890	)		-			(4,890	)
Other Income		5,471			-			-			5,471			42,002			1,882			-			43,884
Total Other Income (Expense), Net		2,555,664			(19,344	)		141,636			2,677,956			2,743,636			(12,782	)		112,565			2,843,419

Net Income (Loss) Before Income Taxes		2,214,999			(100,570	)		141,136			2,255,565
Net Income (Loss) from Continuing Operations Before Income Taxes														382,953			(196,685	)		106,967			292,965

Income Tax		-			-			-			-
Income Tax Expense from Continuing Operations														(114,653	)		-			-			(114,653	)

Net Income (Loss) from Continuing operations														268,300			(196,685	)		106,697			178,312

Loss from Discontinued Operations, Net of Tax														(361,385	)		-			-			(361,385	)
Net Income (Loss)		2,214,999			(100,570	)		141,136			2,255,565			(93,085	)		(196,685	)		106,697			(183,073	)

Net Income (Loss) Attributable to Non-Controlling Interest		643,139			(6,436	)		-			636,703
Net Loss Attributable to Non-Controlling Interest														(620,433	)		(12,588	)		-			(633,021	)

Net Income (Loss) Attributable to Common Stockholders	$	1,571,860		$	(94,134	)	$	141,136		$	1,618,862		$	527,348		$	(184,097	)	$	106,697		$	449,948

Other Comprehensive Loss, Net
Unrealized Loss on Securities Investment		(12,599	)		-			-			(12,599	)
Unrealized Gain on Securities Investment														516			-			-			516
Foreign Currency Translation Adjustment		(1,674,021	)		-			-			(1,674,021	)		(1,047,149	)		-			-			(1,047,149	)
Comprehensive Income (Loss)		528,379			(100,570	)		141,136			568,945			(1,139,718	)		(196,685	)		106,697			(1,229,706	)

Comprehensive Income (Loss) Attributable to Non-controlling Interests		59,569			(6,436	)		-			53,133
Comprehensive Loss Attributable to Non-controlling Interests														(988,963	)		(12,588	)		-			(1,001,551	)

Comprehensive Income (Loss) Attributable to Common Stockholders	$	468,810		$	(94,134	)	$	141,136		$	515,812		$	(150,755	)	$	(184,097	)	$	106,697		$	(228,155	)

Net Income Per Share - Basic and Diluted	$	0.16								$	0.16
Net Income (Loss) Per Share - Basic and Diluted
Continuing Operations													$	0.08								$	0.08
Discontinued Operations													$	(0.03	)							$	(0.03	)
Net Income Per Share													$	0.05								$	0.05

Weighted Average Common Shares Outstanding - Basic and Diluted		10,001,000									10,001,000			9,880,967									9,880,967

	As Previously Reported			Acquisition of APB under Common Control			Acquisition of LVD Ltd under Common Control			Eliminations			As Combined			As Previously Reported			Acquisition of APB and HFL under Common Control			Acquisition of LVD Ltd under Common Control			Eliminations			As Combined
Assets:
Current Assets:
Cash	$	22,124,491		$	1,848,455		$	492,977		$	-		$	24,465,923		$	22,124,491		$	2,348,478		$	492,977		$	-		$	24,965,946
Restricted Cash		6,769,533			-			-			-			6,769,533			6,769,533			-			-			-			6,769,533
Account Receivables, Net		1,366,194			-			-			-			1,366,194			1,366,194			-			-			-			1,366,194
Other Receivables		270,222			279,177			95,177			-			644,576			270,222			279,177			95,177			-			644,576
Note Receivables - Related Party		624,986	��		24,583			-			-			649,569			624,986			24,583			-			-			649,569
Prepaid Expenses		1,470,680			-			-			-			1,470,680			1,470,680			-			-			-			1,470,680
Inventory		90,068			-			-			-			90,068			90,068			-			-			-			90,068
Investment in Securities at Fair Value		48,857,483			313,343			1,631			-			49,172,457			48,857,483			313,343			1,631			-			49,172,457
Investment in Securities at Cost		280,516			-			-			-			280,516			280,516			-			-			-			280,516
Investment in Securities on Equity Method		-			-			74,535			(74,535	)		-			-			-			74,535			(74,535	)		-
Deposits		47,019			-			-			-			47,019			47,019			1,801			-			-			48,820
Total Current Assets		81,901,192			2,465,558			664,320			(74,535	)		84,956,535			81,901,192			2,967,382			664,320			(74,535	)		85,458,359

Real Estate
Properties under Development		20,505,591			-			-			-			20,505,591			20,505,591			-			-			-			20,505,591
Operating Lease Right-Of-Use Asset		574,754			-			-			-			574,754			574,754			-			-			-			574,754
Deposit		249,676			-			-			-			249,676			249,676			-			-			-			249,676
Loan Receivable		-			840,000			-			-			840,000			-			840,000			-			-			840,000
Property and Equipment, Net		85,365			-			-			-			85,365			85,365			-			-			-			85,365
Total Assets	$	103,316,578		$	3,305,558		$	664,320		$	(74,535	)	$	107,211,921		$	103,316,578		$	3,807,382		$	664,320		$	(74,535	)	$	107,713,745

Liabilities and Stockholders’ Equity:
Current Liabilities:
Accounts Payable and Accrued Expenses	$	1,553,132		$	117,188		$	-		$	-		$	1,670,320		$	1,553,132		$	118,133		$	-		$	-		$	1,671,226
Deferred Revenue		2,867,226			-			-			-			2,867,226			2,867,226			-			-			-			2,867,226
Builder Deposits		1,262,336			-			-			-			1,262,336			1,262,336			-			-			-			1,262,336
Operating Lease Liability		381,412			-			-			-			381,412			381,412			-			-			-			381,412
Note Payable		172,706			-			-			-			172,706			172,706			-			-			-			172,706
Note Payable- Related Parties		1,526,208			-			823,823			-			2,350,031			1,526,208			184,250			823,823			-			2,534,281
Total Current Liabilities		7,763,020			117,188			823,823			-			8,704,031			7,763,020			302,383			823,823			-			8,889,226
Long-Term Liabilities:
Builder Deposits		-			-			-			-			-			-			-			-			-			-
Operating Lease Liability		193,342			-			-			-			193,342			193,342			-			-			-			193,342
Notes Payable		636,362			-			-			-		��	636,362			636,362			-			-			-			636,362
Total Liabilities		8,592,724			117,188			823,823			-			9,533,735			8,592,724			302,383			823,823			-			9,718,930

Stockholders’ Equity:
Common Stock		8,570			47,756			-			(47,756	)		8,570			8,570			47,756			-			(47,756	)		8,570
Additional Paid In Capital		97,950,440			3,584,982			756,487			47,756			102,339,666
Additional Paid in Capital																	97,950,440			3,975,261			756,487			47,756			102,729,944
Accumulated Deficit		(43,010,991	)		(876,712	)		(906,010	)		-			(44,793,713	)		(43,010,991	)		(993,296	)		(906,010	)		-			(44,910,297	)
Accumulated Other Comprehensive Income		2,153,318			-			(9,980	)		-			2,143,338
Accumulated Other Comprehensive Income (Loss)																	2,153,318			-			(9,980	)		-			2,143,338
Total Stockholders’ Equity		57,101,337			2,756,027			(159,503	)		-			59,697,861			57,101,337			3,029,721			(159,503	)		-			59,971,555
Non-controlling Interests		37,622,517			432,343			-			(74,535	)		37,980,325			37,622,517			475,278			-			(74,535	)		38,023,260
Total Stockholders’ Equity		94,723,854			3,188,370			(159,503	)		(74,535	)		97,678,186			94,723,854			3,504,999			(159,503	)		(74,535	)		97,994,815

Total Liabilities and Stockholders’ Equity	$	103,316,578		$	3,305,558		$	664,320		$	(74,535	)	$	107,211,921		$	103,316,578		$	3,807,382		$	664,320		$	(74,535	)	$	107,713,745

As of ~~March 31,~~June 30, 2021 and December 31, 2020, real estate assets consisted of the following:

	March 31, 2021		December 31, 2020		June 30, 2021		December 31, 2020

Construction in Progress	$	7,465,347	$	9,567,841	$	6,498,049	$	9,567,841
Land Held for Development		10,638,686		10,937,750		9,781,674		10,937,750
Rental Properties		2,161,680		-
Rental Properties, net						6,810,685		-
Total Real Estate Assets	$	20,265,713	$	20,505,591	$	23,090,408	$	20,505,591

As of June 30, 2021, the Company owns 30 Single Family Residential Properties (“SFRs”) in Montgomery County, Texas. The Company’s aggregate investment in those SFRs was $6.8 million. Depreciation expense was $15,222 and $0 in three months ended June 30, 2021 and 2020, respectively. Depreciation expense was $15,222 and $0 in six months ended June 30, 2021 and 2020, respectively.

In November 2015, SeD Maryland Development, LLC (“SeD Maryland”) entered into lot purchase agreements with NVR, Inc. (“NVR”) relating to the sale of single-family home and townhome lots to NVR in the Ballenger Run Project. The purchase agreements were amended three times thereafter. Based on the agreements, NVR is entitled to purchase 479 lots for a price of approximately ~~$64,000,000,~~$64,000,000, which escalates 3%3% annually after June 1, 2018.

As part of the agreements, NVR was required to give a deposit in the amount of ~~$5,600,000.~~$5,600,000. Upon the sale of lots to NVR, ~~9.9%~~9.9% of the purchase price is taken as payback of the deposit. A violation of the agreements by NVR would cause NVR to forfeit the deposit. On January 3, 2019 and April 28, 2020, NVR gave SeD Maryland two more deposits in the amounts of ~~$100,000~~ $100,000 and ~~$220,000,~~$220,000, respectively, based on the 3rd Amendment to the Lot Purchase Agreement. On ~~March 31,~~June 30, 2021 and December 31, 2020, there were ~~$928,565~~ $541,349 and ~~$1,262,336~~ $1,262,336 held on deposit, respectively.

As of ~~March 31,~~June 30, 2021 and December 31, 2020, notes payable consisted of the following:

	March 31, 2021		December 31, 2020		June 30, 2021		December 31, 2020
M&T Bank Loan, Net of Debt Discount		651,034		636,362		-		636,362
PPP Loan		68,502		-		68,502		-
Australia Loan		170,433		172,706		168,181		172,706
Total notes payable	$	889,969	$	809,068	$	236,683	$	809,068

On April 17, 2019, SeD Maryland Development LLC entered into a Development Loan Agreement with Manufacturers and Traders Trust Company (“M&T Bank”) in the principal amount not to exceed at any one time outstanding the sum of ~~$8,000,000,~~$8,000,000, with a cumulative loan advance amount of ~~$18,500,000.~~ $18,500,000. The line of credit bears interest rate on LIBOR plus 375 basis points.SeD Maryland Development LLC was also provided with a Letter of Credit (“L/C”) Facility in an aggregate amount of up to ~~$900,000.~~$900,000. The L/C commission will be ~~1.5%~~1.5% per annum on the face amount of the L/C. Other standard lender fees will apply in the event L/C is drawn down. The loan is a revolving line of credit. The L/C Facility is not a revolving loan, and amounts advanced and repaid may not be re-borrowed. Repayment of the Loan Agreement is secured by ~~$2,600,000~~ $2,600,000 collateral fund and a Deed of Trust issued to the Lender on the property owned by SeD Maryland. As of ~~March 31,~~June 30, 2021, the outstanding balance of the revolving loan was ~~$0.~~$0. As part of the transaction, the Company incurred loan origination fees and closing fees in the amount of ~~$381,823~~ $381,823 and capitalized it into construction in process.

On June 18, 2020, Alset EHome Inc. (“Alset EHome”), a wholly owned subsidiary of LiquidValue Development Inc., entered into a Loan Agreement with Manufacturers and Traders Trust Company (the “Lender”).

Pursuant to the Loan Agreement, the Lender provided a non-revolving loan to Alset EHome in an aggregate amount of up to ~~$2,990,000 (the~~$2,990,000 (the “Loan”). The line of credit bears interest rate on LIBOR plus 375 basis points. Repayment of the Loan is secured by a Deed of Trust issued to the Lender on the property owned by certain subsidiaries of Alset EHome. The maturity date of this Loan is July 1, ~~2022.~~2022. LiquidValue Development Inc. and one of its subsidiaries are guarantors of this Loan. The guarantors are required to maintain during the term of the loan a combined minimum net worth in an aggregate amount equal to not less than ~~$20,000,000.~~$20,000,000. The Company was in compliance with this covenant as of December 31, ~~2020 and March 31,2021.~~2020.

During the year ended December 31, 2020 Alset EHome borrowed ~~$664,810~~ $664,810 from M&T Bank, incurring at the same time a loan origination fees of ~~$61,679~~ $61,679 which ~~are to be~~were amortized over the term of the loan. Alset EHome didn’t borrow any additional funds in three months ended on March 31, 2021. In the three months ended March 31, 2021 and 2020, Alset EHome expensed $6,627 and $0, respectively, in interest on this loan and recorded $8,045 and $0, respectively, of amortization expense. As of ~~March 31, 2021 and~~ December 31, 2020, the remaining unamortized debt discount was ~~$34,862 and $42,906, respectively.~~$42,906. The loan in the amount of $664,810, together with all accrued interests of $25,225, was paid off on May 28, 2021. The loan was closed in June 2021. Additionally, the debt discount of $42,907 was fully amortized during the six months ended June 30, 2021.

On February 11, 2021, the Company entered into a five yearnote with M&T Bank with a principal amount of ~~$68,502~~ $68,502 pursuant to the Paycheck Protection Program (“PPP Term Note”) under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The PPP Loan is evidenced by a promissory note. The PPP Term Note bears interest at a fixed annual rate of ~~1.00%~~1.00%, with the first sixteen months of principal and interest deferred or until we apply for the loan forgiveness. The PPP Term Note may be accelerated upon the occurrence of an event of default.

The PPP Term Note is unsecured and guaranteed by the United States Small Business Administration. The Company may apply to M&T Bank for forgiveness of the PPP Term Note, with the amount which may be forgiven equal to at least ~~60%~~60% of payroll costs and other eligible payments incurred by the Company, calculated in accordance with the terms of the CARES Act. At this time, we are not in a position to quantify the portion of the PPP Term Note that will be forgiven. As of ~~March 31,~~June 30, 2021, we ~~owned $68,502~~ owed $68,502 to M&T Bank.

On January 7, 2017, SeD Perth Pty Ltd (“SeD Perth”) entered into a loan agreement with National Australian Bank Limited (the “Australia Loan”) for the purpose of funding land development. The loan facility provides SeD Perth with access to funding of up to approximately ~~$460,000~~ $460,000 and matures on December 31, ~~2018.~~2018. The Australia Loan is secured by both the land under development and a pledged deposit of ~~$35,276.~~$35,276. This loan is denominated in AUD. Personal guarantees amounting to approximately $500,000 have been provided by our CEO, Chan Heng Fai and by Rajen Manicka, the CEO of Holista CollTech and Co-founder of iGalen Inc. The interest rate on the Australia Loan is based on the weighted average interest rates applicable to each of the business markets facility components as defined within the loan agreement, ranging from ~~4.12%~~4.12% to ~~4.58%~~4.86% per annum for the ~~three~~six months ended ~~March 31,~~June 30, 2021 and from ~~4.85%~~4.36% to ~~5.57%~~5.57% per annum for the ~~three~~six months ended ~~March 31,~~June 30, 2020. On September 7, 2017 the Australia Loan was amended to reduce the maximum borrowing capacity to approximately ~~$179,000.~~$179,000. During 2020, the terms of the Australia Loan were amended to reflect an extended maturity date of April 30, ~~2022.~~2022. This was accounted for as a debt modification. The Company did not pay fees to the National Australian Bank Limited for the modification of the loan agreement.

As of ~~March 31,~~June 30, 2021 and December 31, 2020, a director of the Company had provided personal guarantees amounting to approximately ~~$500,000,~~$500,000, to secure external loans from financial institutions for AEI and the consolidated entities.

On March 18, 2021, the Company sold equity investment in Vivacitas, a U.S.-based biopharmaceutical company, equaling to 2,480,000 shares of common stock and a stock option to purchase 250,000 shares of Vivacitas common stock at $1 $1 per share at any time prior to the date of a public offering, to a subsidiary of DSS for ~~$2,480,000.~~$2,480,000. Chan Heng Fai, CEO and the founder of the Company, holds a director position on both Vivacitas and DSS. After this transaction, we do not own any investment in Vivacitas. Our original cost of common stock and stock option of Vivacitas was ~~$200,128.~~$200,128. We did not recognize gain or loss in this transaction. The difference of ~~$2,279,872~~ $2,279,872 between the selling price and our original investment cost was recorded as additional paid capital considering it was a related party transaction.

On March 12, 2021, the Company purchased 62,122,908 ordinary shares of True Partners Capital Holding Limited for $6,729,629 from a related party. The fair market value of stock on acquisition date was $10,003,689. The difference between purchase price and fair market value of $3,274,060 was recorded as equity transaction on Company’s consolidated statement of stockholders’ equity.

Chan Heng Fai provided an interest-free, due on demand advance to LiquidValue Development Pte. Ltd. and its subsidiary LiquidValue Development Limited ~~of approximately $815,381~~ for the general operations. ~~On March 31,~~As of June 30, 2021 and December 31, 2020, the outstanding balance was approximately ~~$815,381~~ $836,198 and ~~$823,823,~~$823,823, respectively.

Chan Heng Fai provided an interest-free, due on demand advance to Alset EHome International for the Company’s general operations. ~~On March 31,~~The advance was paid back during the six months ended June 30, 2021 and as of June 30, 2021 and December 31, 2020, the outstanding balance was ~~$178,400.~~$0 and $178,400, respectively.

Chan Heng Fai provided an interest-free, due on demand advance to SeD Perth Pty. Ltd. for its general operations. ~~On March 31,~~As of June 30, 2021 and December 31, 2020, the outstanding balance was ~~$14,190~~ $14,002 and ~~$14,379,~~$14,379, respectively.

On August 20, 2020, the Company acquired 30,000,000 common shares from Chan Heng Fai in exchange for a two-year non-interest bearing note of ~~$1,333,429. On March 31,~~$1,333,429. During the six months ended June 30, 2021, the Company paid back $1,321,600 and as of June 30, 2021 and December 31, 2020 the amount outstanding was $ ~~133,429~~ 11,829 and ~~$1,333,429,~~$1,333,429, respectively.

On March 12, 2021, the Company entered into a Securities Purchase Agreement (the “SPA”) with Chan Heng Fai, the founder, Chairman and Chief Executive Officer of the Company, for four proposed transactions, consisting of (i) purchase of certain warrants (the “Warrants”) to purchase 1,500,000,000 shares of Alset International Limited (“Alset International”), which was valued at ~~$28,363,966;~~$28,363,966; (ii) purchase of all of the issued and outstanding stock of LiquidValue Development Pte Ltd. (“LVD”), which was valued at ~~$173,395;~~$173,395; (iii) purchase of 62,122,908 ordinary shares in True Partners Capital Holding Limited (HKG: 8657) (“True Partners”), which was valued at ~~$6,729,629;~~$6,729,629; and (iv) purchase of 4,775,523 shares of the common stock of American Pacific Bancorp Inc. (“APB”), which was valued at ~~$28,653,138.~~$28,653,138. The total amount of above four transactions was ~~$63,920,129,~~$63,920,129, payable on the Closing Date by the Company, in the convertible promissory notes (“Alset CPNs”), which, subject to the terms and conditions of the Alset CPNs and the Company’s shareholder approval, shall be convertible into shares of the Company’s common stock (“AEI Common Stock”), at par value of ~~$0.001~~ $0.001 per share, at the conversion price of AEI’s Stock Market Price. AEI’s Stock Market Price shall be ~~$5.59~~ $5.59 per share, equivalent to the average of the five closing per share prices of AEI Common Stock preceding January 4, 2021 as quoted by Bloomberg L.P. ~~AEI~~AEI’s stock price was ~~$10.03~~ $10.03on March 12, 2021, the commitment date. The Beneficial Conversion Feature (“BCF”) intrinsic value was ~~$50,770,192~~ $50,770,192 for the four convertible promissory notes and was recorded as debt discount of convertible notes after the transaction. On May 13 and June 14, 2021 all Alset CPNs of $63,920,128 and accrued interests of $306,438 were converted into 2,123 shares of series B preferred stock and 9,163,965 shares of common stock of the Company.

On May 14, 2021, Alset EHome International Inc., a Delaware corporation (the “Company”), borrowed S$7,395,472 Singapore Dollars (equal to approximately $5,545,495 U.S. Dollars) from Chan Heng Fai. The unpaid principal amount of the Loan shall be due and payable on May 14, 2022 and the Loan shall have no interest. As of ~~March 31,~~June 30, 2021 the ~~promissory notes net~~outstanding balance was $4,943,095.

Chan Heng Fai provided an interest-free, due on demand advance to HengFeng Finance Limited for the general operations. As of ~~debt discount were $13,695,852~~June 30, 2021 and ~~accrued interest~~December 31, 2020, the outstanding balance was ~~$41,239.~~$184,250 and $0, respectively.

MacKenzie Equity Partners, owned by Charles MacKenzie, a Director of the Company’s subsidiary LiquidValue Development, has had a consulting agreement with the Company since 2015. Per the terms of the agreement, as amended on January 1, 2018, the Company has paid a monthly fee of ~~$20,000~~ $20,000 for these consulting services. The Company incurred expenses of ~~$60,000~~ $60,000 and ~~$60,000~~ $60,000 for the three months ended ~~March 31,~~June 30, 2021 and 2020, respectively. Company incurred expenses of $120,000 and $120,000 for the six months ended June 30, 2021 and 2020, respectively, which were capitalized as part of Real Estate on the Company’s Consolidated Balance Sheet as the services relate to property and project management. ~~As of March 31,~~In June 2021, MacKenzie Equity Partners was granted an additional $60,000 bonus payment. On June 30, 2021 and December 31, 2020, the Company owed ~~$0 to~~ this ~~entity.~~related party $20,000 and $0, respectively.

Chan Tung Moe was engaged as a consultant by the Company through Pop Motion Consulting Pte. Ltd. Chan Tung Moe is the son of Chan Heng Fai, the Chairman and CEO of our Company. In August of 2020, this consulting agreement was terminated, and Chan Tung Moe became an employee of Alset International as Chief Development Officer. Chan Tung Moe was appointed as Executive Director of Alset International Limited on December 11, 2020 and on March 1, 2021, he was appointed as Co-Chief Executive Officer of Alset International Limited. Chan Tung Moe was appointed as Co-Chief Executive Officer of Alset EHome International on July 1, 2021.

The Company incurred expense of $0 $0 and ~~$57,931~~ $59,144 for the three months ended ~~March 31,~~June 30, 2021 and 2020, respectively. The Company incurred expense of $0 and $118,288 for the six months ended June 30, 2021 and 2020, respectively. As of ~~March 31,~~June 30, 2021 and December 31, 2020, the Company owed Pop Motion a consulting fee of ~~$0.~~$0.

On March 2, 2020 LiquidValue Asset Management Pte. Ltd. (“LiquidValue”) received a ~~$200,000~~ $200,000 Promissory Note from American Medical REIT Inc. (“AMRE”), a company which is ~~36.1%~~less than1% owned by ~~LiquidValue.~~LiquidValue as of June 30, 2021. Chan Heng Fai and Chan Tung Moe from Alset International are directors of American Medical REIT Inc. The note carries interests of 8%8% and is payable in two ~~years.~~years. LiquidValue also received warrants to purchase AMRE shares at the Exercise Price ~~$5.00~~ $5.00 per share. The amount of the warrants equals to the note principle divided by the Exercise Price. If AMRE goes to IPO in the future and IPO price is less than $10.00 per share, the Exercise price shall be adjusted downward to fifty percent (50%) of the IPO price.As of ~~March 31,~~June 30, 2021 and December 31, 2020, the fair market value of the warrants was ~~$0.~~$0. The Company accrued ~~$17,431~~ $21,366 and ~~$13,431~~ $13,431 interest income as of ~~March 31,~~June 30, 2021 and December 31, 2020, respectively.

On January 24, 2017, SeD Capital Pte Ltd, a 100% owned subsidiary of Alset International lent ~~$350,000~~ $350,000 to iGalen. The term of the loan was two years, with an interest rate of 3% per annum for the first of year and 5% per annum for the second year. The expiration term was renewed as due on demand after two years with 5% per annum interest rate. As of ~~March 31,~~June 30, 2021 and December 31, 2020, the outstanding principle was ~~$350,000~~ $350,000 and accrued interest was ~~$62,058~~ $70,291 and ~~$61,555,~~$61,555, respectively.

As of ~~March 31,~~June 30, 2021, the Company provided advances for operation of ~~$10,104~~ $234,744 to Hyten, a direct sales company in Thailand of which the Company holds approximately ~~19%~~19% ownership. The Company provided advances for operation of ~~$29,968~~ $29,968 to APW, a related party company of which the Company holds ~~8.7%~~8.7% ownership.

On November 24, 2020, American Pacific Bancorp. Inc. lent ~~$560,000~~ $560,000 to Chan Tung Moe, an officer of one of the subsidiaries of the Company and son of Chan Heng Fai, Chairman and Chief Executive Officer of the Company, bearing interest at 6%6%, with a maturity date of November 23, ~~2023.~~ 2023. This loan iswas secured by an irrevocable letter of instruction on 80,000 shares of Alset EHome International.On November 24, 2020, American Pacific Bancorp. Inc. lent ~~$280,000~~ $280,000 to Lim Sheng Hon Danny, an employee of one of the subsidiaries of the Company, bearing interest at 6%, with a maturity date of November 23, 2023. This loan iswas secured by an irrevocable letter of instruction on 40,000 shares of Alset EHome International. AsSubsequent to the making of ~~December 31, 2020 and March 31, 2021, the accrued interest was $17,536 and $5,109, respectively. On March 12, 2021, the Company entered into a Securities Purchase Agreement pursuant to which~~these loans, the Company acquired ~~86.44%~~the majority of the ~~total~~ issued and outstanding common stock of American Pacific Bancorp. ~~Inc.~~As of June 30, 2021, both principal and interest, $840,000 and $28,031, of both loans to Chan Tung Moe and Lim Sheng Hong, were fully paid off.

On June 14, 2021, the Company filed an amendment (the “Amendment”) to its Third Amended and Restated Certificate of Incorporation, as amended, to increase the Company’s authorized share capital. The ~~Company is~~Amendment increased the Company’s authorized share capital to ~~issue 20,000,000~~ 250,000,000common shares and ~~5,000,000~~ 25,000,000preferred shares, ~~both at a~~from 20,000,000common shares and 5,000,000preferred shares, respectively.

The Company has designated 6,380 preferred shares as Series A Preferred Stock and 2,132 as Series B Preferred Stock.

Holders of the Series A Preferred Stock shall be entitled to receive dividends equal, on an as-if-converted basis, to and in the same form as dividends actually paid on shares of the Company’s common stock, par value ~~$0.001~~ $0.001 per ~~share. As~~share (“Common Stock”) when, as and if paid on shares of ~~December 31, 2020, there~~Common Stock. Each holder of outstanding Series A Preferred Stock is entitled to vote equal to the number of whole shares of Common Stock into which each share of the Series A Preferred Stock is convertible. Holders of Series A Preferred Stock are entitled, upon liquidation of the Company, to receive the same amount that a holder of Series A Preferred Stock would receive if the Series A Preferred Stock were ~~8,570,000~~fully converted into Common Stock.

Holders of the Series B Preferred Stock shall be entitled to receive dividends equal, on an as-if-converted basis, to and in the same form as dividends actually paid on shares of the Company’s common stock par value $0.001 per share (“Common Stock”) when, as and if paid on shares ~~issued~~of Common Stock. Each holder of outstanding Series B Preferred Stock is entitled to vote equal to the number of whole shares of Common Stock into which each share of the Series B Preferred Stock is convertible. Holders of Series B Preferred Stock are entitled, upon liquidation of the Company, to receive the same amount that a holder of Series B Preferred Stock would receive if the Series B Preferred Stock were fully converted into Common Stock.

The Company analyzed the Preferred stock and ~~outstanding.~~the embedded conversion option for derivative accounting consideration under ASC 815-15 “Derivatives and Hedging” and determined that the conversion option should be classified as equity.

On January 19, 2021, the Company issued 10,000 shares of its common stock as compensation for public relations services at a fair value of ~~$60,900.~~$60,900.

On May 3, 2021, the Company entered into a Loan and Exchange Agreement with its Chief Executive Officer, Chan Heng Fai pursuant to which he loaned the Company his shares of Common Stock of the Company by exchanging 6,380,000 shares of common stock which he owned for an aggregate of 6,380 shares of the Company’s newly designated Series A Convertible Preferred Stock. Effective upon the filing of the Amendment in June 2021, the Company issued an entity owned by Chan Heng Fai 6,380,000 shares of common stock upon the automatic conversion of all 6,380 outstanding shares of the Company’s Series A Convertible Preferred Stock.

On May 12, 2021 the Company entered into an Exchange Agreement with Chan Heng Fai, pursuant to which he converted $13,000,000 of note payable for 2,132 shares of the Company’s newly designated Series B Preferred Stock. Effective upon the filing of the Amendment in June 2021, the Company issued Chan Heng Fai 2,132,000 shares of common stock upon the automatic conversion of all 2,132 outstanding shares of the Company’s Series B Convertible Preferred Stock.

On May 10, 2021, the Company entered into an underwriting agreement (the “Underwriting Agreement”) with Aegis Capital Corp., as the sole book-running manager and representative of the underwriters named therein (the “Underwriters”), relating to an underwritten public offering (the “Offering”) of (i) 4,700,637 common units (the “Common Units”), at a price to the public of $5.07 per Common Unit, with each Common Unit consisting of (a) one share of common stock, par value $0.001 per share (the “Common Stock”), (b) one Series A warrant (the “Series A Warrant” and collectively, the “Series A Warrants”) to purchase one share of Common Stock with an initial exercise price of $5.07 per whole share, exercisable until the fifth anniversary of the issuance date, and (c) one Series B warrant (the “Series B Warrant” and collectively, the “Series B Warrants” and together with the Series A Warrants, the “Warrants”) to purchase one-half share of Common Stock with an initial exercise price of $6.59 per whole share, exercisable until the fifth anniversary of the issuance date and (ii) 1,611,000 pre-funded units (the “Pre-funded Units”), at a price to the public of $5.06 per Pre-funded Unit, with each Pre-funded Unit consisting of (a) one pre-funded warrant (the “Pre-funded Warrant” and collectively, the “Pre-funded Warrants”) to purchase one share of Common Stock, (b) one Series A Warrant and (c) one Series B Warrant. The shares of Common Stock, the Pre-funded Warrants, and the Warrants were offered together, but the securities contained in the Common Units and the Pre-funded Units were issued separately. Following the offering, all the investors exercised their Pre-funded Units and additional 1,611,000 shares of common stock and Series A and Series B Warrants were issued.

The Company also granted the Underwriters a 45-day over-allotment option to purchase up to 808,363 additional shares of Common Stock and/or up to 808,363 additional Series A Warrants to purchase 808,363 shares of Common Stock, and/or up to 808,363 additional Series B warrants to purchase 404,181 shares of Common Stock. The Offering, including the partial exercise of the Underwriters’ over-allotment option to purchase 808,363 Series A Warrants and 808,363 Series B Warrants, closed on May 13, 2021. During the month of June, 2021, Aegis exercised its option to purchase an additional 808,363 common shares at a price of $5.07 per common share and as of June 30, 2021 still holds 808,363 Series B Warrants. During the month of June, 2021, investors exercised 1,266,025 of Series A Warrants and 6,598 of Series B Warrants. As a result of the offering and subsequent exercise notice received for the pre-funded units and warrants, the Company issued 8,389,324 common shares As a result of the offering and subsequent exercise notice received for the pre-funded units and warrants, and the net proceeds to the Company were $39,268,580.

The Company incurred approximately $88,848 in expenses related to the Offering and subsequent warrants exercises, including SEC fees, FINRA fees, auditor fees and filing fees.

The following table presents net funds received from the May 2021 offering and warrants exercised as of June 30, 2021.

On ~~March 31,~~June 30, 2021, there were ~~8,580,000~~ 28,265,289common shares issued and outstanding.

On November 23, 2020, under the terms of the Underwriting Agreement, the Company issued to Aegis Capital Corp a warrant (the “Representative’s Warrant”) to purchase an aggregate of 108,000 shares of common stock. The Representative’s Warrant is exercisable at a per share price of $9.80 and is exercisable at any time and from time to time, in whole or in part, during the three-year period commencing from the date of issuance. Followingfollowing table summarizes the warrant activity for the ~~three~~six months ended ~~March 31,~~June 30, 2021.

Warrant
for

Remaining
Contractual
Aggregate

Common
Shares

Exercise
Price

Term
(Years)

Intrinsic
Value

Outstanding as of December 31, 2020 108,000 $ 9.80 2.95 $ -
Vested and exercisable at December 31, 2020 108,000 $ 9.80 2.95 $ -
Granted - -
Exercised - -
Forfeited, cancelled, expired - -
Outstanding as of March 31, 2021 108,000 $ 9.80 2.70 $ 191,160
Vested and exercisable at March 31, 2021 108,000 $ 9.80 2.70 $ 191,160

~~From January to March,~~During the six months ended, June 30, 2021, the Company sold ~~250,000~~ 280,000 shares of GigWorld to international investors for the amount of ~~$250,000,~~$280,000, which was booked as addition paid-in capital. The Company held ~~505,551,376~~ 505,381,376 shares of the total outstanding shares 506,898,576 before the sale. After the sale, the Company still owns approximately ~~99%~~99% of GigWorld’s total outstanding shares.

~~From January to March,~~During the six months ended, June 30, 2020, the Company sold ~~10,000~~ 37,300 shares of GigWorld to international investors for the amount of ~~$5,000,~~$32,300, which was booked as addition paid-in capital. The Company held ~~506,223,676~~ 500,821,889 shares of the total outstanding shares 506,898,576 before the sale. After the sale, the Company still owns approximately ~~99%~~99% of GigWorld’s total outstanding shares.

During the ~~three~~six months ended ~~March 31,~~June 30, 2021 and 2020, the sales of GigWorld’s shares were de minimis compared to its outstanding shares and did not change the minority interest.

During ~~three~~six months ended ~~on March 31,~~June 30, 2021, SeD Maryland Development LLC Board approved the payment distribution plan to members and paid ~~$82,250~~ $1,151,500 in distribution to the minority shareholder. During ~~three~~six months ended ~~on March 31,~~June 30, 2020, SeD Maryland Development LLC Board approved the payment distribution plan to members and paid ~~$197,400~~ $197,400 in distribution to the minority shareholder.

In the ~~three~~six months ended ~~March 31,~~June 30, 2021, Alset International issued ~~250,000~~ 1,160,581,454 common shares through warrants exercise with exercise price of approximately ~~$0.03~~ $0.03 per share and received ~~$7,484 cash.~~$35,878,698 cash, which included approximately $33 million from Alset EHome International to exercise its warrants to purchase Alset International common shares. The warrant exercise transactions between Alset EHome International and Alset International were intercompany transactions and only affected change in non-controlling interest on the consolidated statements of stockholders’ equity. During the ~~three~~six months ended ~~March 31,~~June 30, 2021, the stock-based compensation expense of Alset International was ~~$73,292~~ $73,292 with the issuance of 1,500,000 shares to an officer. The Company’s ownership of Alset International changed from ~~57.1%~~57.1% as of December 31, 2020 to ~~57.1%~~71.4% as of ~~March 31,~~June 30, 2021.

~~During~~ In March, 2020, American Pacific Bancorp. (which subsequently became a majority-owned subsidiary of the ~~Company started~~Company) commenced a private ~~offer (the “Private Offer”)~~offering of units of its ~~units.~~securities. Each unit was comprised of one share of its Class A Common Stock with par value of ~~$0.01~~ $0.01 per share and its one share of Series A 5%5% Cumulative Preferred Stock with a par value of ~~$0.01~~ $0.01 per share, at a subscription price of $6 $6 per unit. The net proceeds from ~~the~~investors from this private ~~offer~~offering were ~~$2,232,491 from investors~~ $2,232,491 as of ~~March 31,~~June 30, 2020.

The Company generally rents its SFRs under lease agreements with a term of one year. Future minimum rental revenue under existing leases on our properties at June 30, 2021 in each calendar year through the end of their terms are as follows:

The Company has entered into property management agreement with the property managers under which the property managers generally oversee and direct the leasing, management and advertising of the properties in our portfolio, including collecting rents and acting as liaison with the tenants. The Company pays its property managers a property management fee of $90 per month per property unit and a leasing fee equal to one month of each lease’s annual rent. For the three months ended June 30, 2021 and 2020, property management fees incurred by the property managers were $2,740and $0, respectively. For the six months ended June 30, 2021 and 2020, property management fees incurred by the property managers were $2,740 and $0, respectively. For the three months ended June 30, 2021 and 2020, leasing fees incurred by the property managers were $14,475 and $0, respectively. For the six months ended June 30, 2021 and 2020, leasing fees incurred by the property managers were $14,475 and $0, respectively.

On April 27, 2020, Global BioMedical Pte Ltd (“GBM”), one of our subsidiaries, entered into a share exchange agreement with DSS BioHealth Security, Inc. (“DBHS”), a wholly owned subsidiary of Document Securities Systems Inc. (“DSS”), pursuant to which, DBHS agreed to acquire all of the outstanding capital stock of Impact BioMedical Inc, a wholly owned subsidiary of GBM, through a share exchange. It was agreed that the aggregate consideration to be issued to GBM for the Impact BioMedical shares would be the following: (i) 483,334 newly issued shares of DSS common stock; and (ii) 46,868 newly issued shares of a new series of DSS perpetual convertible preferred stock with a stated value of $46,868,000 ($1,000 per share). The convertible preferred stock will be convertible into shares of DSS common stock at a conversion price of $6.48 of preferred stock stated value per share of common stock, subject to a 19.9% beneficial ownership conversion limitation (a so-called “blocker”) based on the total issued outstanding shares of common stock of DSS beneficially owned by GBM. Holders of the convertible preferred stock will have no voting rights, except as required by applicable law or regulation, and no dividends will accrue or be payable on the convertible preferred stock. The holders of convertible preferred stock will be entitled to a liquidation preference of $1,000 per share, and DSS will have the right to redeem all or any portion of the then outstanding shares of convertible preferred stock, pro rata among all holders, at a redemption price per share equal to such liquidation value per share.

Under ASU 2014-08, a disposal transaction meets the definition of a discontinued operation if all of the following criteria are met:

Impact BioMedical Inc and its subsidiaries have financial reporting. The transaction is a disposal by sale and has a major effect on our financial results. Since it meets all of the test criteria set forth above, we have treated this disposal transaction as a discontinued operations in our consolidated financial statements.

On August 21, 2020, the transaction closed and Impact BioMedical Inc became a direct wholly owned subsidiary of DBHS. GBM received 483,334 shares of DSS common stock and 46,868 shares of DSS preferred stock, which preferred shares could be converted to 7,232,716 common shares (however, any conversion will be subject to the blocker GBM has agreed to, as described above). After this transaction, we held 500,001 shares of the common stock of DSS, representing 9.7% of the outstanding common stock of DSS. Our CEO, Chan Heng Fai owned an additional 14.5% of the common stock of DSS (not including any common or preferred shares we held) and is the executive chairman of the board of directors of DSS. The Company has elected the fair value option for the DSS common stock that would otherwise be accounted for under the equity method of accounting. ASC 820, Fair Value Measurement and Disclosures, defines the fair value of the financial assets. We value DSS common stock under level 1 category through quoted prices and preferred stock under level 2 category through the value of the common shares into which the preferred shares are convertible. The quoted price of DSS common stock was $6.95 as of August 21, 2020. The total fair value of DSS common and preferred stocks GBM received as consideration for the disposal of Impact BioMedical was $53,626,548. As of August 21, 2020, the net asset value of Impact BioMedical was $57,143. The difference of $53,569,405 was recorded as additional paid in capital. We did not recognize gain or loss from this transaction as it was a related party transaction.

During the three months ended June 30, 2021 and 2020, the discontinued operation loss from Impact BioMedical Inc was $0 and $361,385, respectively. During the six months ended June 30, 2021 and 2020 the discontinued operation loss from Impact BioMedical Inc was $0 and $361,385, respectively.

On October 16, 2020, GBM converted an aggregate of 4,293 shares of Series A Convertible Preferred Stock into 662,500 shares of the common stock of DSS. On May 25, 2021 and again on June 21, 2021, GBM converted an aggregate of 42,575 shares of Series A Convertible Preferred Stock into 6,570,170 shares of the common stock of DSS. We now own approximately 11.8% of the common stock of DSS, and our CEO, Chan Heng Fai, owns an additional 3.1% of the common stock of DSS (not including any common shares we hold).

Following is a summary of the changes in the balances of accumulated other comprehensive income, net of tax:

SCHEDULE OF CHANGES IN THE BALANCES OF ACCUMULATED OTHER COMPREHENSIVE INCOME, NET OF TAX

Financial assets measured at fair value on a recurring basis are summarized below and disclosed on the consolidated balance sheet as of ~~March 31,~~June 30, 2021 and December 31, 2020:

~~Unrealized loss~~Realized gain on investment securities for the ~~three~~six months ended ~~March 31,~~June 30, 2021 and 2020 was ~~$1,987~~ $296,961 and ~~$12,599,~~$26,395, respectively. Unrealized loss on securities investment was $30,703,914 in the six months ended June 30, 2021 and unrealized gain on securities investment was $1,561,486 in the six months ended on June 30, 2020. These gains and losses were recorded directly to net income (loss). The change in fair value of the convertible note receivable in the six months ended June 30, 2021 and 2020 was $37,909 and $516, respectively, and was recorded in consolidated statements of stockholders’ equity.

For U.S. trading stocks, we use Bloomberg Market stock prices as the share prices to calculate fair value. For overseas stock, we use the stock price from local stock exchange to calculate fair value. The following chart shows details of the fair value of equity security investment at ~~March 31,~~June 30, 2021 and December 31, 2020, respectively.

* Ratio of 1-for-30 (the “Reverse Split”) was effective at 5:01 p.m. Eastern Time on May 7, 2020 (the “Effective Time”)

~~The DSS convertible~~ In six months ended June 30, 2021 Global BioMedical Pte Ltd. converted 42,575 preferred stock ~~under level 3 category was valued on Option Pricing Method (OPM) in determining the fair value. As~~ of ~~March 31, 2021, the Company held 42,575~~DSS into 6,570,170 common shares of DSS convertible preferred stock, which could convert to 6,570,216 common shares, with fair market value of $29,430,000. As of December 31, 2020, the Company held 42,575 shares of DSS convertible preferred stock, which could convert to 6,570,216 common shares, with fair market value $37,675,000. The following table shows the parameters adopted in the valuation at the valuation dates.DSS.

The selected stock prices represent the close market bid price of DSS on the valuation date. Risk-free interest rates were obtained from Bloomberg. The volatility is based on the historical volatility of the DSS common stock. We assumed a three-year life for the preferred stock and assumed that after three-years the Company would desire to begin receiving a return on this investment – either through a conversion or liquidation. Given the Beneficial Ownership limited on the exercise of the Series A Preferred Shares, we have assumed that Alset International will sell their common stocks in the Target Company such that their shareholding does not exceed 19.99% prior to conversion. We have assessed the Discount for Lack of Marketability (DLOM) of this interest using a put option method and adopted Black-Scholes Option Pricing Model to estimate the DLOM.

The fair value of the Sharing Services Convertible Note under level 3 category as of ~~March 31,~~June 30, 2021 and December 31, 2020 was calculated using a Black-Scholes valuation model valued with the following weighted average assumptions:

	March 31, 2021			December 31, 2020			June 30, 2021			December 31, 2020

Dividend yield		0.00	%		0.00	%		0.00	%		0.00	%
Expected volatility		210.07	%		210.07	%		158.61	%		210.07	%
Risk free interest rate		3.25	%		0.13	%		3.25	%		0.13	%
Contractual term (in years)		1.51			1.76			1.26			11.76
Exercise price	$	0.15		$	0.15		$	0.15		$	0.15

We assumed dividend yield rate is ~~0.00%~~0.00% in Sharing Services. The volatility is based on the historical volatility of the Sharing Services’ common stock. Risk-free interest rates were obtained from U.S. Treasury rates for the applicable periods.

Changes in the observable input values would likely cause material changes in the fair value of the Company’s Level 3 financial instruments. A significant increase (decrease) in this likelihood would result in a higher (lower) fair value measurement.

The table below provides a summary of the changes in fair value which are recorded as other comprehensive income (loss), including net transfers in and/or out of all financial assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three and six months ended ~~March 31,~~June 30, 2021 and 2020:

On February 26, 2021, the Company invested approximately ~~$88,599~~ $88,599 in the convertible bond of Vector Com Co., Ltd (“Vector Com”), a private company in South Korea. The interest rate is 2%2% per annum and maturity is two ~~years.~~years. The conversion price is approximately ~~$21.26,~~$21.26, per common share of Vector Com. As of ~~March 31,~~June 30, 2021, the ~~Management~~management estimated that the fair value of ~~the~~this note ~~to be $88,599, the~~remained unchanged from its initial ~~transaction price.~~purchase price

On March 2, 2020, the Company received warrants to purchase shares of AMRE, a related party private startup company, in conjunction with the Company lending a ~~$200,000~~ $200,000 promissory note. For further details on this transaction, refer to Note 910 Related Party Transactions, Note Receivable from a Related Party Company. As of ~~March 31,~~June 30, 2021 and December 31, 2020, AMRE was a private company. Based the management’s analysis, the fair value of the warrants was $0 $0 as of ~~March 31,~~June 30, 2021 and December 31, 2020.

On July 17, 2020, the Company purchased 122,039,000 shares, approximately ~~9.99%~~9.99% ownership, and 122,039,000 warrants with an exercise price of ~~$0.0001~~ $0.0001 per share, from APW, for an aggregated purchase price of ~~$122,039.~~ $122,039. We value APW warrants under level 3 category through a Black-Scholes option pricing model and the fair value of the warrants from APW were ~~$862,723~~ $862,723 as of December 31, 2020 and ~~$2,188,264~~ $2,048,747 as of ~~March 31,~~June 30, 2021.

The fair value of the APW warrants under level 3 category as of ~~March 31,~~June 30, 2021 and ~~July 17,~~December 31, 2020 was calculated using a Black-Scholes valuation model valued with the following weighted average assumptions:

On November 23, 2015, SeD Maryland Development LLC completed the ~~$15,700,000~~ $15,700,000 acquisition of Ballenger Run, a ~~197-acre~~197-acre land sub-division development located in Frederick County, Maryland. Previously, on May 28, 2014, the RBG Family, LLC entered into a ~~$15,000,000~~ $15,000,000 assignable real estate sales contract with NVR, by which RBG Family, LLC would facilitate the sale of the 197 acres of Ballenger Run to NVR. On December 10, 2014, NVR assigned this contract to SeD Maryland Development, LLC through execution of an assignment and assumption agreement and entered into a series of lot purchase agreements by which NVR would purchase 443 subdivided residential lots from SeD Maryland Development, LLC. On December 31, 2018, SeD Maryland entered into the Third Amendment to the Lot Purchase Agreement for Ballenger Run with NVR. Pursuant to the Third Amendment, SeD Maryland will convert the 5.9 acre CCRC parcel to 36 lots (the 28 feet wide villa lot) and sell to NVR. SeD Maryland pursued the required zoning approval to change the number of such lots from 85 to 121, which was approved in July 2019. Subsequently, SeD Maryland Development signed Fourth Amendment to the Lot Purchase Agreement, pursuant to which NVR agreed to purchase all of the new 121 lots.

~~Through~~During the three months ended on ~~March 31,~~June 30, 2021 and 2020, NVR purchased 27 31 lots and 27 19 lots, respectively. During the six months ended on June 30, 2021 and 2020, NVR purchased 58 lots and 46 lots, respectively. Through ~~March 31,~~June 30, 2021 and December 31, 2020, NVR had purchased a total of ~~415~~ 446 and 388 lots, respectively.

The Company leases offices in Maryland, Singapore, Magnolia, Texas, Hong Kong and South Korea through leased spaces aggregating approximately 15,811square feet, under leases expiring on various dates from December 2020 to March 2024. The leases have rental rates ranging from ~~$2,265~~ $2,265 to ~~$23,297~~ $23,297 per month. Our total rent expense under these office leases was ~~$140,271~~ $140,271and ~~$85,558~~ $85,558in the three months ended ~~March 31,~~June 30, 2021 and 2020, respectively. Our total rent expense under these office leases was $272,985 and $171,116 in the six months ended June 30, 2021 and 2020, respectively. The following table outlines the details of lease terms:

The Company adopted ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”) to recognize a right-of-use asset and a lease liability for all the leases with terms greater than twelve months. We elected the practical expedient to not recognize operating lease right-of-use assets and operating lease liabilities for lease agreements with terms less than 12 months. Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As our leases do not provide a readily determinable implicit rates, we estimate our incremental borrowing rates to discount the lease payments based on information available at lease commencement. Our incremental borrowings rates are 3.9% in 2021 and at a range from 0.5% to 4.5% per annum in 2020, which were used as the discount rates.The balances of operating lease right-of-use assets and operating lease liabilities as of ~~March 31,~~June 30, 2021 were ~~$722,507~~ $728,828 and ~~$736,561,~~$741,915, respectively. The balances of operating lease right-of-use assets and operating lease liabilities as of December 31, 2020 were ~~$574,754~~ $574,754 and ~~$574,754,~~$574,754, respectively.

The table below summarizes future payments due under these leases as of ~~March 31,~~June 30, 2021.


2021	$	341,827		$	280,947
2022		292,830			361,405
2023		95,104			95,104
2024		24,430			24,430
Total Minimum Lease Payments		754,191			761,886
Less: Effect of Discounting		(17,630	)		(19,971	)
Present Value of Future Minimum Lease Payments		736,561			741,915
Less: Current Obligations under Leases		(51,686	)		(147,135	)
Long-term Lease Obligations		684,875		$	594,780

The Company reserves 500,000 shares of common stock under the Incentive Compensation Plan for high-quality executives and other employees, officers, directors, consultants and other persons who provide services to the Company or its related entities. This plan is meant to enable such persons to acquire or increase a proprietary interest in the Company in order to strengthen the mutuality of interests between such persons and the Company’s shareholders, and providing such persons with performance incentives to expand their maximum efforts in the creation of shareholder value. As of ~~March 31,~~June 30, 2021 and December 31, 2020, there have been no options granted.

On November 20, 2013, Alset International approved a Stock Option Plan (the “2013 Plan”). Employees, executive directors, and non-executive directors (including the independent directors) are eligible to participate in the 2013 Plan.

The following tables summarize stock option activity under the 2013 Plan for the ~~three~~six months ended ~~March 31,~~June 30, 2021:

	Options for				Remaining Contractual		Aggregate		Options for Common Shares		Exercise Price		Remaining Contractual Term (Years)		Aggregate Intrinsic Value
	Common Shares		Exercise Price		Term (Years)		Intrinsic Value
Outstanding as of January 1, 2020		1,061,333	$	0.09		4.00	$	-
Vested and exercisable at January 1, 2020		1,061,333	$	0.09		4.00	$	-
Granted		-		-
Exercised		-		-
Forfeited, cancelled, expired		-		-
Outstanding as of December 31, 2020		1,061,333	$	0.09		3.00	$	-		1,061,333	$	0.09		3.00	$	-
Vested and exercisable at December 31, 2020		1,061,333	$	0.09		3.00	$	-		1,061,333	$	0.09		3.00	$	-
Granted		-		-						-		-
Exercised		-		-						-		-
Forfeited, cancelled, expired		-		-						-		-
Outstanding as of March 31, 2021		1,061,333	$	0.09		2.75	$	-
Vested and exercisable at March 31, 2021		1,061,333	$	0.09		2.75	$	-
Outstanding as of June 30, 2021										1,061,333	$	0.09		2.50	$	-
Vested and exercisable at June 30, 2021										1,061,333	$	0.09		2.50	$	-

~~Purchase of Shares of Value Exchange International, Inc.~~18.SUBSEQUENT EVENTS

The Company has entered into a securities purchase agreement dated April 5, 2021 with Value Exchange International, Inc. (“Value Exchange International”) in connection with the purchase of 6,500,000 shares of Value Exchange International’s common stock for an aggregate subscription price of $650,000. The acquisition of 6,500,000 shares of Value Exchange International’s common stock was completed on April 12, 2021.

On April 8, 2021, the Company exercised its warrants to purchase 139,834,471 shares of Alset International at an exercise price of Singapore $0.04. On May 12, 2021, Chan Heng Fai exercised warrants to purchase 76,925,000 shares of Alset International at an exercise price of Singapore $0.048. On May 14 and 17, 2021, the Company exercised its warrants to purchase 943,531,983 shares of Alset International at an exercise price of Singapore $0.048. Total outstanding shares of Alset International were 2,931,951,400 after these issuances. The Company holds 2,094,516,748 shares of Alset International, approximately 71.4% ownership.

On October 15, 2020, the Company’s subsidiary, American Pacific Bancorp (“APB”), entered into an acquisition agreement to acquire 3,500,001 common shares of Hengfeng Finance Limited (“HFL”), representing 100% of the common shares of HFL, in consideration for 250,000 shares of APB’s Class A Common Stock. HFL is incorporated in Hong Kong with limited liability. This transaction closed on April 21, 2021.

On April 20, 2021 on of Company’s indirect subsidiaries, SeD Capital Pte. Ltd. (“SeD Capital”), entered into joint venture agreement with digital asset management firm Novum Alpha Pte Ltd (“Novum”). Pursuant to this agreement, SeD Capital will own 50% of the issued and paid-up capital in the joint venture company, Credas Capital Pte Ltd (“Credas”) with the remaining 50% shareholding stake held by Novum. Credas intends to develop and launch its maiden digital assets-based Exchange-Traded Product in the fourth quarter of 2021 on the SIX Swiss Exchange, Switzerland’s principal stock exchange and one of Europe’s largest stock exchanges.

On April 30, 2021, the Board of Managers of SeD Maryland Development LLC (the 83.55% owned subsidiary of the Company which owns the Company’s Ballenger Project) authorized the payment of distributions to its members in the amount of $3,000,000. Accordingly, the minority member of SeD Maryland Development LLC received a distribution in the amount of $493,500, with the remainder being distributed to a subsidiary of the Company, which is eliminated upon consolidation.

On May 3, 2021, the holder of a majority of the issued and outstanding shares of common stock of the Company, by written consent, approved and adopted an amendment to our Third Amended and Restated Certificate of Incorporation (the “Amendment”) to increase the number of authorized shares of the Company’s common stock from Twenty Million (20,000,000) common shares to Two Hundred and Fifty Million (250,000,000) common shares and its preferred shares from Five Million (5,000,000) to Twenty Five Million (25,000,000). As of filing date, the amendment is still pending approval from State of Delaware.

On May 3, 2021, the Company filed an amendment to its Articles of Incorporation which sets forth the rights and preferences of the Series A Convertible Preferred Stock. Pursuant to the Series A Designation, 6,380 shares of the Company’s preferred stock was designated Series A Preferred Stock. Holders of the Series A Preferred Stock shall be entitled to receive dividends equal, on an as-if-converted basis, to and in the same form as dividends actually paid on shares of the Company’s common stock par value $0.001 per share (“Common Stock”) when, as and if paid on shares of Common Stock. Each holder of outstanding Series A Preferred Stock is entitled to vote equal to the number of whole shares of Common Stock into which each share of the Series A Preferred Stock is convertible. Holders of Series A Preferred Stock are entitled, upon liquidation of the Company, to receive the same amount that a holder of Series A Preferred Stock would receive if the Series A Preferred Stock were fully converted into Common Stock.

On May 12, 2021 the Company filed a Certificate of Designation which sets forth the rights and preferences of the Series B Preferred Stock. Pursuant to the Series B Designation, 2,132 shares of the Company’s preferred stock was designated Series B Preferred Stock. Holders of the Series B Preferred Stock shall be entitled to receive dividends equal, on an as-if-converted basis, to and in the same form as dividends actually paid on shares of the Company’s common stock par value $0.001 per share (“Common Stock”) when, as and if paid on shares of Common Stock. Each holder of outstanding Series B Preferred Stock is entitled to vote equal to the number of whole shares of Common Stock into which each share of the Series B Preferred Stock is convertible. Holders of Series B Preferred Stock are entitled, upon liquidation of the Company, to receive the same amount that a holder of Series B Preferred Stock would receive if the Series B Preferred Stock were fully converted into Common Stock.

On May 3, 2021, the Company entered into a Loan and Exchange Agreement with its Chief Executive Officer, Chan Heng Fai pursuant to which Chan Heng Fai loaned the Company his shares of Common Stock of the Company by exchanging 6,380,000 shares of common stock which he owned for an aggregate of 6,380 shares of the Company’s newly designated Series A Convertible Preferred Stock.

On May 12, 2021, Company entered into an Exchange Agreement with Chan Heng Fai, effective May 13, 2021, pursuant to which he exchanged $13,000,000 in principal amount under a $28,363,966 convertible promissory note (the “Note”) in exchange for 2,132 shares of the Company’s newly designated Series B Preferred Stock.

On ~~May 10,~~July 27, 2021, the Company entered into an underwriting agreement (the “Underwriting ~~Agreement��~~Agreement”) with Aegis Capital Corp., as the sole book-running manager and representative of the underwriters named therein (the “Underwriters”), relating to an underwritten public offering (the “Offering”) of (i) ~~4,700,637~~5,324,139 shares of common ~~units~~stock, par value $0.001 per share (the “Common ~~Units”~~Stock”), at a price to the public of ~~$5.07~~ $2.12 per ~~Common Unit, with each Common Unit consisting of (a) one~~ share of ~~common stock, par value $0.001 per share~~Common Stock and (ii) 9,770,200 pre-funded warrants (the ~~“Common Stock”), (b) one Series A warrant (the “Series A Warrant” and collectively, the “Series A~~“Pre-funded Warrants”) to purchase ~~one share~~9,770,200 shares of Common Stock, with an initial exercise price of $5.07 per whole share, exercisable until the fifth anniversary of the issuance date, and (c) one Series B warrant (the “Series B Warrant” and collectively, the “Series B Warrants” and together with the Series A Warrants, the “Warrants”) to purchase one-half share of Common Stock with an initial exercise price of $6.59 per whole share, exercisable until the fifth anniversary of the issuance date and (ii) 1,611,000 pre-funded units (the “Pre-funded Units”), at a price to the public of ~~$5.06~~ $2.11 per Pre-funded Unit, with each Pre-funded Unit consisting of (a) one pre-funded warrant (the “Pre-funded Warrant” and collectively, the “Pre-funded Warrants”) to purchase one share of Common Stock, (b) one Series A Warrant and (c) one Series B Warrant. The ~~shares of Common Stock, the Pre-funded Warrants, and the Warrants were offered together, but the securities contained in the Common Units and the Pre-funded Units were issued separately.~~Offering closed on July 30, 2021.

The Company ~~also~~ granted the Underwriters a 45-day over-allotment option to purchase up to ~~808,363~~ 2,264,150 additional ~~shares of Common Stock and/or up to 808,363 additional Series A Warrants to purchase 808,363 shares of Common Stock, and/or up to 808,363 additional Series B warrants to purchase 404,181~~ shares of Common Stock. The ~~Offering, including the partial exercise of the Underwriters’ over-allotment option to purchase 808,363 Series A Warrants and 808,363 Series B Warrants, closed on May 13, 2021.~~

~~The~~ Company also paid the Underwriters an underwriting discount equal to ~~6.5%~~7.0% of the gross proceeds of the Offering and a non-accountable expense fee equal to ~~1.25%~~1.5% of the gross proceeds of the Offering. In addition, the Company agreed to issue to the representative warrants (the “Representative’s Warrants”) to purchase a number of shares equal to 3.0% of the aggregate number of shares (including shares underlying the Pre-funded Warrants) sold under in the Offering, or warrants to purchase up to an aggregate of 520,754 shares, assuming the Underwriters exercise their over-allotment option in full. The Representative’s Warrants have an exercise price equal to 125% of the public offering price, or $2.65 per share, with an exercise period of 24 months from issuance.

The Company ~~also reimbursed the Underwriters for certain of their expenses, including “roadshow”, diligence,~~ and ~~reasonable legal fees~~its directors and ~~disbursements, in an amount of $150,000 in the aggregate. The Company has~~executive officers also agreed that, ~~it will not issue or announce the issuance or proposed issuance of any Common Stock or Common Stock equivalents~~ for a period of ~~120~~one (1) year and ninety (90) days, respectively, after the date of the offering, subject to certain limited exceptions, not to directly or indirectly, without the prior written consent of the Underwriters, (a) offer, sell, or otherwise transfer or dispose of, directly or indirectly, any shares of capital stock of the Company or any securities convertible into or exercisable or exchangeable for shares of capital stock of the Company; or (b) file or caused to be filed any registration statement with the Securities and Exchange Commission (the “SEC”) relating to the offering of any shares of capital stock of the Company or any securities convertible into or exercisable or exchangeable for shares of capital stock of the Company.

The Pre-funded Warrants were offered and sold to purchasers whose purchase of Common Stock in the Offering would otherwise result in the purchaser, together with its affiliates and certain related parties, beneficially owning more than 4.99% (or, at the election of the purchaser, 9.99%) of the Company’s outstanding Common Stock immediately following the ~~closing date, other than certain exempt issuances.~~consummation of the Offering in lieu of Common Stock that would otherwise result in the purchaser’s beneficial ownership exceeding 4.99% of the Company’s outstanding Common Stock (or, at the election of the purchaser, 9.99%). Each Pre-funded Warrant is exercisable for one share of Common Stock at an exercise price of $0.01 per share. The Pre-funded Warrants are immediately exercisable and may be exercised at any time until all of the Pre-funded Warrants are exercised in full.

The net proceeds to the Company from the Offering were approximately ~~$29.2~~ $28.8 million, ~~excluding the proceeds, if any, from the exercise of the Warrants and the Pre-funded Warrants sold in the Offering, and~~ after deducting underwriting discounts and commissions and the payment of other estimated offering expenses associated with the Offering that are payable by the Company. The Company intends to use the net proceeds of the Offering for the following purposes: (i) to fund possible acquisitions of new companies and additional properties; (ii) to fund the further development of properties, including services and infrastructure; (iii) to develop rental opportunities at properties; (iv) to exercise warrants of our subsidiaries to accomplish the items in (i) – (iii); and (v) for working capital and general corporate purposes.

A registration statement on Form S-1 relating to the Offering was declared effective by the SEC on July 27, 2021.

~~On May 14,~~As of August 16, 2021 ~~Alset EHome International Inc., a Delaware corporation (the “Company”), borrowed S$7,395,472 Singapore Dollars (equal~~investors who purchased the pre-funded warrants in this offering exercised 6,461,800 warrants to ~~approximately $5,557,371 U.S. Dollars) from~~purchase 6,461,800 shares of the Company’s ~~Chairman, Chief Executive Officer~~common stock and ~~major stockholder, Chan Heng Fai. The unpaid principal amount~~the Company received $64,618 from these exercises.

From July 1, 2021 through August 16, 2021 investors who purchased Series A Warrants in the Company’s May 2021 offering exercised warrants to purchase 98,000 shares of the ~~Loan shall be due and payable on May 14, 2022 and the Loan shall have no interest.~~Company’s common stock. The Company received $496,860 from these exercises.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

This Form 10-Q contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. For this purpose, any statements contained in this Form 10-Q that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, words such as “may”, “will”, “expect”, “believe”, “anticipate”, “estimate” or “continue” or comparable terminology are intended to identify forward-looking statements. These statements by their nature involve substantial risks and uncertainties, and actual results may differ materially depending on a variety of factors, many of which are not within our control. These factors include by are not limited to economic conditions generally and in the industries in which we may participate, competition within our chosen industry, including competition from much larger competitors, technological advances and failure to successfully develop business relationships.

Alset EHome International Inc. is a ~~fast-growing~~ diversified holding company principally engaged through its subsidiaries in ~~property~~the development of EHome communities and other real estate, financial services, digital transformation ~~technology~~technologies, biohealth activities and ~~biohealth activities~~consumer products with operations is United States, Singapore, Hong Kong, South Korea and Australia. Our growth strategy is ~~both,~~ to pursue opportunities that we can leverage on our global network using our capital resources and to accelerate the expansion of our organic businesses. We manage our ~~three~~ principal businesses primarily through our 71.4% ~~( as~~(as of the filing date) owned subsidiary, Alset International Limited, a public company traded on the Singapore Stock Exchange.

The extent to which the COVID-19 pandemic may impact our business will depend on future developments, which are highly uncertain and cannot be predicted. The COVID-19 pandemic’s far-reaching impact on the global economy could negatively affect various aspects of our business, including demand for real estate. From March 2020 through ~~December 2020,~~June 30, 2021, we continued to sell lots at our Ballenger Run project (in Maryland) for the construction of town homes to NVR. Sales of such ~~homes~~lots to NVR ~~were at the same level~~increased in the first ~~three~~six months of 2021 asto 58 compared to 46 lots sold in the first ~~three~~six months of 2020. ~~In first quarter of 2021 and 2020 we sold 27 lots to NVR.~~ Such town homes are often a first home that generally did not require buyers to sell an existing home. We believe low interest rates have encouraged home sales. Many buyers opted to see home models at the project virtually. This technology allowed them to ask questions to sales staff and see the town homes. Home closings were able to occur electronically.

We have received strong indications that buyers and renters across the country are ~~expressing~~continuing to express interest in moving from more densely populated urban areas to the suburbs. We believe that our Ballenger Run project is well suited and positioned to accommodate those buyers. Our latest phase for sale at Ballenger Run, involving single-family homes, has seen a high number of interested potential buyers signing up for additional information and updates on home availability.

The COVID-19 pandemic could impact the ability of our staff and contractors to continue to work, and our ability to conduct our operations in a prompt and efficient manner. To date, we experienced a slowdown in the construction of a clubhouse at the Ballenger Run project during the earlier part of the pandemic, which was completed behind schedule. We believe this delay was caused in part by policies requiring lower numbers of contractors working in indoor spaces.

The COVID-19 pandemic may adversely impact the timeliness of local government in granting required approvals. Accordingly, the COVID-19 pandemic may cause the completion of important stages in our real estate projects to be delayed.

Most of our U.S. staff works out of our Bethesda, Maryland office. At our office in Texas, we received a 50% rent abatement for the month of May 2020.

Our U.S. staff has shifted to mostly working from home since March 2020, but this has had a minimal impact on our operations to date. Our staff in Singapore and Hong Kong has been able to work from home when needed with minimal impact on our operations, however our staff’s ability to travel between our Hong Kong and Singapore offices has been significantly limited, and our staff’s travel between the U.S. and non-U.S. offices has been suspended since March 2020. The COVID-19 pandemic has ~~also impacted~~reduced the frequency with which our management would otherwise travel to the Black Oaks project; however, we have a contractor in Texas providing supervision of the project. Management continues to regularly supervise the Ballenger Run project. Limitations on the mobility of our management and staff may slow down our ability to enter into new transactions and expand existing projects.

We have not reduced our staff in connection with the COVID-19 pandemic. To date, we did not have to expend significant resources related to employee health and safety matters related to the COVID-19 pandemic. We have a small staff, however, and the inability of any significant number of our staff to work due to illness or the illness of a family member could adversely impact our operations.

In addition to the matters described above, the primary challenges and trends that could affect or are affecting our financial results include:

● Our ability to improve our revenue through cross-selling and revenue-sharing arrangements among our diverse group of companies;

● Our ability to identify complementary businesses for acquisition, obtain additional financing for these acquisitions, if and when needed, and profitably integrate them into our existing operation;

● Our ability to attract competent, skilled technical and sales personnel for each of our businesses at acceptable compensation levels to manage our overhead; and

● Our ability to control our operating expenses as we expand each of our businesses and product and service offerings.

Summary of Statements of Operations for the Three and Six Months Ended ~~March 31,~~June 30, 2021 and 2020

	Three Months Ended March 31,					Three- Months Ended						Six-months Ended
	2021			2020		June 30, 2021			June 30, 2020			June 30, 2021			June 30, 2020
Revenue	$	5,606,914		$	2,965,171	$	6,543,432		$	2,065,825		$	12,150,346		$	5,030,996
Operating Expenses		6,010,359			3,387,562	$	11,219,462		$	4,190,095		$	17,232,634		$	7,581,450
Other Income (Expense)		(8,949,966	)		2,677,956	$	(70,212,030	)	$	165,794		$	(79,161,996	)	$	2,843,419
Net (Loss) Income	$	(9,804,748	)	$	2,255,565
Loss from Discontinued Operations						$	-		$	(361,385	)	$	-		$	(361,385	)
Net Loss						$	(74,889,324	)	$	(2,434,514	)	$	(84,696,885	)	$	(183,073	)

The following tables ~~sets~~set forth period-over-period changes in revenue for each of our reporting segments:

	Three Months Ended March 31,				Change					Three Months Ended June 30,				Change
	2021		2020		Dollars		Percentage			2021		2020		Dollars		Percentage
Property development	$	3,894,131	$	2,954,389	$	939,742		32	%
Real Estate										$	4,584,542	$	2,047,405	$	2,537,137		124	%
Biohealth		1,712,783		10,782		1,702,001		15,786	%		1,958,890		18,420		1,940,470		10,535	%
Digital transformation technology		-		-		-		-			-		-		-		-
Other		-		-		-		-			-		-		-		-
Total revenue	$	5,606,914	$	2,965,171	$	2,641,743		89	%	$	6,543,432	$	2,065,825	$	4,477,607		217	%

Revenue was ~~$5,606,914~~$6,543,432 and ~~$2,965,171~~$2,065,825 for the three months ended ~~March 31,~~June 30, 2021 and 2020, respectively. Revenue was $12,150,346 and $5,030,996 for the six months ended June 30, 2021 and 2020, respectively. An increase in property sales from the Ballenger Project and direct sales from our indirect subsidiary HWH World in the first ~~quarter~~two quarters of 2021 contributed to higher revenue in ~~that period.~~those periods. For our Ballenger Project, builders are required to purchase a minimum number of lots based on their applicable sale agreements. We collect revenue ~~only~~ from the sale of lots to builders. We are not involved in the construction of homes at the present time.

Income from the sale of Front Foot Benefits (“FFBs”), assessed on Ballenger ~~Run~~ project lots, increased from ~~$40,322~~$74,879 in the three months ended ~~March 31,~~June 30, 2020 to ~~$107,071~~$141,575 in the three months ended ~~March 31,~~June 30, 2021. Income from the sale of FFBs increased from $115,202 in the six months ended June 30, 2020 to $248,646 in the six months ended June 30, 2021. The increase is a mixed result of the increased sale of properties to homebuyers in ~~the first quarter of~~ 2021 and sale of FFBs of a higher value.

In the second quarter of 2021, the Company started renting homes to tenants. Revenue from this rental business was $21,947 for the three and six months ended June 30, 2021. The Company expects that the revenue from this business will continue to increase as we acquire more rental houses and successfully rent them.

Revenues from our biohealth segment in the first ~~quarter~~six months of 2020 ~~come~~came from the direct sales by iGalen Inc. (formerly known as iGalen USA, LLC), which iswas 100% owned by iGalen International Inc., Alset International’s 53%-owned subsidiary. On December 30, 2020 Alset International’s ownership of iGalen International was sold to one of the directors of iGalen International. During the three months ended ~~March 31,~~June 30, 2020, the revenue from iGalen Inc. was ~~$10,782.~~$17,420. During the six months ended June 30, 2020, the revenue from iGalen Inc. was $28,202.

In recent years, the Company expanded its biohealth segment to the Korean market through one of the subsidiaries of Health Wealth Happiness Pte. Ltd., HWH World Inc (“HWH World”). HWH World, similarly to iGalen Inc., operates based on a direct sale model of health supplements. HWH World recognized ~~$1,702,001~~$1,958,890 and $0$1,000 in revenue in three months ended ~~March 31,~~June 30, 2021 and 2020, respectively. HWH World recognized $3,671,673 and $1,000 in revenue in six months ended June 30, 2021 and 2020, respectively.

The following tables sets forth period-over-period changes in cost of sales for each of our reporting segments:

	Three Months Ended March 31,				Change					Three Months Ended June 30,				Change
	2021		2020		Dollars		Percentage			2021		2020		Dollars		Percentage
Property development	$	3,614,832	$	2,380,820	$	1,234,012		52	%
Real Estate										$	2,510,369	$	1,609,223	$	901,146		56	%
Biohealth		83,022		2,883		80,139		2,780	%		97,581		-		97,581		100	%
Digital transformation technology		-		-		-		-			-		-		-		-
Other		-		-		-		-			-		-		-		-
Total Cost of Sales	$	3,697,854	$	2,383,703	$	1,314,151		55	%	$	2,607,950	$	1,609,223	$	998,727		62	%

Cost of sales increased from ~~$2,380,820~~$1,609,223 in the three months ended ~~March 31,~~June 30, 2020 to ~~$3,614,832~~$2,607,950 in the three months ended ~~March 31,~~June 30, 2021, as a result of the increase in sales in the Ballenger Run ~~project.~~project and HWH World sales. Cost of sales increased from $3,992,926 in the six months ended June 30, 2020 to $6,305,804 in the six months ended June 30, 2021, as a result of the increase in sales in the Ballenger Run project and HWH World sales. Capitalized construction expenses, finance costs and land costs are allocated to sales. We anticipate the total cost of sales to increase as revenue increases.

The gross margin increased from ~~$581,468~~$456,602 to ~~$1,909,060~~$3,935,482 in the three months ended ~~March 31,~~June 30, 2020 and 2021, respectively. The gross margin increased from $1,038,070 to $5,844,542 in the six months ended June 30, 2020 and 2021, respectively. The increase of gross margin was caused by the increase of gross margin of HWH World, mostly due to the increase in the ~~sales.~~sales and from increased sales in Ballenger project.

The following tables sets forth period-over-period changes in operating expenses for each of our reporting segments.

	Three Months Ended March 31,				Change					Three Months Ended June 30,				Change
	2021		2020		Dollars		Percentage			2021		2020		Dollars			Percentage
Property development	$	359,489	$	277,056	$	82,433		30	%
Real Estate										$	266,066	$	225,872	$	40,194			18	%
Biohealth		846,480		132,791		713,689		537	%		1,064,102		81,009		983,093			1,214	%
Digital transformation technology		30,128		18,228		11,900		65	%		39,247		77,033		(37,786	)		-49	%
Other		1,076,408		575,784		500,624		87	%		7,242,097		2,196,958		5,045,139			230	%
Total operating expenses	$	2,312,505	$	1,003,859	$	1,308,646		130	%	$	8,611,512	$	2,580,872	$	6,030,640			234	%

The increase of operating expense in second quarter of 2021 is mainly caused by the approximately $6.0 million, paid in two bonus payments from one of our subsidiary to its CEO. Under an executive employment agreement with its CEO, the subsidiary pays approximately $1 per month and two bonus payments each year consisting of: (i) one payment equal to five percent (5%) of the growth in market capitalization the subsidiary experiences in any year; and (ii) one payment equal to five percent (5%) of the growth in net asset value the subsidiary experiences in any year. Additionally, the increase of operating expenses of property development in 2021 compared with 2020 was mostly caused by the increase of sales related expenses. Increase in expenses in our biohealth business is caused by the increased commission payments to our distributors, which is connected to increased sales.

In the three months ended ~~March 31,~~June 30, 2021, the Company had other expense of ~~$8,949,966~~$70,212,030 compared to other income of ~~$2,677,956~~$165,794 in the three months ended ~~March 31,~~June 30, 2020. In the six months ended June 30, 2021, the Company had other expense of $79,161,996 compared to other income of $2,843,419 in the six months ended June 30, 2020. The change in unrealized gain (loss) on securities investment and on ~~foreign exchange transactions~~financing costs are the primary reasons for the volatility in these two periods. Unrealized loss on securities investment was ~~$9,535,009~~$21,168,905 in the three months ended ~~March 31,~~June 30, 2021, ~~comparing~~compared to ~~$458,422~~$1,103,064 gain in the three months ended ~~March 31,~~June 30, 2020. ~~Foreign exchange transaction~~Unrealized loss on securities investment was $30,703,914 in six months ended June 30, 2021, compared to $1,561,486 gain ~~was $1,462,697~~in the six months ended June 30, 2020. Finance costs were $50,261,203 in the three months ended ~~March 31,~~June 30, 2021, compared to ~~$2,260,482~~a $347 gain in the three months ended ~~March 31,~~June 30, 2020. Finance costs were $50,844,071 in the six months ended June 30, 2021, compared to a $4,890 loss in the six months ended June 30, 2020.

Under ASU 2014-08, a disposal transaction meets the definition of a discontinued operation if all of the following criteria are met:

In the three months ended ~~March 31,~~June 30, 2021 the Company had net loss of ~~$9,353,411~~$74,889,324 compared to net ~~income~~loss of ~~$2,255,565~~$2,434,514 in the three months ended ~~March 31,~~June 30, 2020. In the six months ended June 30, 2021 the Company had net loss of $84,696,885 compared to net loss of $183,073 in the six months ended June 30, 2020.

Our real estate assets under development have decreased to ~~$20,265,713~~$16,279,723 as of ~~March 31,~~June 30, 2021 from $20,505,591 as of December 31, 2020. This decrease primarily reflects an increase in sales of lots and a higher increase in costs of sales than in the capitalized costs related to the construction in progress. ~~On March 31,~~In the six months ended June 30, 2021, we purchased 1030 homes, which will be used in Company’s rental business. Our rental properties assets were $6,810,685 as of June 30, 2021.

Our cash has ~~decreased~~increased from ~~$24,465,923~~$24,965,946 as of December 31, 2020 to ~~$20,368,692~~$59,529,026 as of ~~March 31,~~June 30, 2021. Our liabilities increased from ~~$9,533,735~~$9,718,930 at December 31, 2020 to ~~$23,252,927~~$12,273,761 at ~~March 31,~~June 30, 2021. Our total assets have increased to ~~$108,797,989~~$127,338,547 as of ~~March 31,~~June 30, 2021 from ~~$107,211,921~~$107,713,745 as of December 31, 2020 mainly due to the increase in cash and investments in securities.

Summary of Cash Flows for the ~~Three~~Six Months Ended ~~March 31,~~June 30, 2021 and 2020

Net cash used in operating activities was ~~$3,304,857~~$10,649,851 in the first ~~three~~six months of 2021, as compared to net cash ~~used in~~provided by operating activities of ~~$182,597~~$204,205 in the same period of 2020. The higher prepayments and purchase of trading securities for investment purposes and land for rental business explained the increased cash flow used in operating activities in the first ~~three~~six months of 2021.

Net cash provided by investing activities was ~~$2,352,536~~$2,234,619 in the first ~~three~~six months of 2021, as compared to net cash provided by investing activities of ~~$101,963~~$220,979 in the same period of 2020. In the ~~three~~six months ended ~~March 31,~~June 30, 2021 we invested ~~$108,208~~$758,208 in securities and $240,129 in promissory notes of a related party and received approximately $2.5 million from the sale of Vivacitas Oncology to a related party and $840,000 from the repayment of promissory note from related party. InDuring the ~~three~~six months ended ~~March 31,~~June 30, 2020, we received ~~$303,349~~$301,976 from the liquidation of Global Opportunity Fund. We also ~~invested~~lent $200,000 in a promissory note ofto a related party and received $123,185 from loan receivable from related party.

Net cash ~~used in~~provided by financing activities was ~~$956,264~~$43,898,095 in the ~~three~~six months ended ~~March 31,~~June 30, 2021, ~~comparing~~compared to net cash provided of ~~$2,030,592~~$4,706,192 the ~~three~~six months ended ~~March 31,~~June 30, 2020. The increase in cash ~~used~~provided by financing activities in ~~financing activities~~the first six months of 2021 is primarily caused by the ~~increase in cash used to repay related party note payable.~~proceeds from stock issuance of $39,268,580 and warrants exercise of $2,756,203. During the ~~three~~six months ended ~~March 31,~~June 30, 2021, we also received cash proceeds of ~~$7,484 from the exercise of subsidiary warrants, $250,000~~$280,000 from the sale of our GigWorld shares to individual investors and $68,502 from a loan. ~~The~~Additionally, the Company ~~also~~ distributed ~~$82,250~~$1,151,500 to one minority interest investor and ~~repaid $1,200,000 of promissory note held by~~borrowed $5,545,495 from related parties. During the ~~three~~six months ended ~~March 31,~~June 30, 2020, we received cash proceeds of ~~$2,210,491~~$2,264,791 from the issuance of stock through a subsidiary’s private placement, received $1,419,605 in advance of warrants exercise, distributed $197,400 to one minority interest investor and borrowed ~~$17,501~~$202,167 from related party loan.

We do not have any off-balance sheet arrangements that are reasonably likely to have a current or future effect on our financial condition, revenues, results of operations, liquidity or capital expenditures.

We believe that inflation has not had a material impact on our results of operations for the ~~three~~six months ended ~~March 31,~~June 30, 2021 or the year ended December 31, 2020. We cannot assure you that future inflation will not have an adverse impact on our operating results and financial condition.

The effect of foreign exchange rate changes on the intercompany loans (under ASC 830), which mostly consist of loans from Singapore to the United States and which were approximately $27.1 million and $24.8 million on ~~March 31,~~June 30, 2021 and December 31, 2020, respectively, are the reason for the significant fluctuation of foreign currency transaction Gain or Loss on the Consolidated Statements of Operations and Other Comprehensive Income. Because the intercompany loan balances between Singapore and United States will remain at approximately $25 million over the next year, we expect this fluctuation of foreign exchange rates to still significantly impact the results of operations in 2021, especially given that the foreign exchange rate may and is expected to be volatile. If the amount of intercompany loan is lowered in the future, the effect will also be reduced. However, at this moment, we do not expect to repay the intercompany loans in the short term.

We are an “emerging growth company,” as defined in the JOBS Act, and we may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not “emerging growth companies.” Section 107 of the JOBS Act provides that an “emerging growth company” can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an “emerging growth company” can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of these exemptions until we are no longer an emerging growth company or until we affirmatively and irrevocably opt out of this exemption.

The real estate business is subject to seasonal shifts in costs as certain work is more likely to be performed at certain times of year. This may impact the expenses of Alset EHome Inc. from time to time. In addition, should we commence building homes, we are likely to experience periodic spikes in sales as we commence the sales process at a particular location.

As a “smaller reporting company” as defined by Item 10(f)(1) of Regulation S-K, the Company is not required to provide the information required by this Item.

As of the end of the period covered by this report, an evaluation was performed under the supervision and with the participation of our management, including our Chief Executive ~~Officer~~Officers and Chief Financial Officers, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). Based on that evaluation, our management, including our Chief Executive ~~Officer~~Officers and Chief Financial Officers, concluded that our disclosure controls and procedures are not effective as of ~~March 31,~~June 30, 2021 to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms and to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our Chief Executive ~~Officer~~Officers and Chief Financial Officers, as appropriate to allow timely decisions regarding required disclosure.

There was no change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15(d)-15(f) under the Exchange Act) that occurred during the quarterly period ended ~~March 31,~~June 30, 2021 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

The Company has not sold any unregistered shares during the period covered by this Report or through May 24, 2021; however, on January 19, 2021, the Company issued 10,000 shares of its common stock for public relations services. Such securities were not registered under the Securities Act of 1933 and were issued pursuant to the exemption under Section 4(2) of the Securities Act.

On May 3, 2021, the Company entered into a Loan and Exchange Agreement with its Chairman and Chief Executive Officer, Chan Heng Fai pursuant to which Chan Heng Fai loaned the Company his shares of Common Stock of the Company by exchanging 6,380,000 shares of common stock which he owned for an aggregate of 6,380 shares of the Company’s newly designated Series A Convertible Preferred Stock. Such securities were not registered under the Securities Act of 1933 and were issued pursuant to the exemption under Section 3(a)(9) of the Securities Act. On June 14, 2021 Chan Heng Fai converted the 6,380 Series A Preferred Stock back into 6,380,000 shares of Company’s common stock.

On May 12, 2021, Company entered into an Exchange Agreement with our Chairman and Chief Executive Officer Chan Heng Fai, effective May 13, 2021, pursuant to which Chan Heng Fai exchanged $13,000,000 in principal amount under a ~~$28,363,966~~ convertible promissory note in the amount of $28,363,966 in exchange for 2,132 shares of the Company’s newly designated Series B Preferred Stock. Such securities were not registered under the Securities Act of 1933 and were issued pursuant to the exemption under Section 3(a)(9) of the Securities Act. On June 14, 2021 Chan Heng Fai converted the 2,132 Series B Preferred Stock into 2,132,000 shares of Company’s common stock.

On May 10, 2021, the Company entered into an underwriting agreement (the “Underwriting Agreement”) with Aegis Capital Corp., as the sole book-running manager and representative of the underwriters named therein (the “Underwriters”), relating to an underwritten public offering (the “Offering”) of (i) 4,700,637 common units (the “Common Units”), at a price to the public of $5.07 per Common Unit, with each Common Unit consisting of (a) one share of common stock, par value $0.001 per share (the “Common Stock”), (b) one Series A warrant (the “Series A Warrant” and collectively, the “Series A Warrants”) to purchase one share of Common Stock with an initial exercise price of $5.07 per whole share, exercisable until the fifth anniversary of the issuance date, and (c) one Series B warrant (the “Series B Warrant” and collectively, the “Series B Warrants” and together with the Series A Warrants, the “Warrants”) to purchase one-half share of Common Stock with an initial exercise price of $6.59 per whole share, exercisable until the fifth anniversary of the issuance date and (ii) 1,611,000 pre-funded units (the “Pre-funded Units”), at a price to the public of $5.06 per Pre-funded Unit, with each Pre-funded Unit consisting of (a) one pre-funded warrant (the “Pre-funded Warrant” and collectively, the “Pre-funded Warrants”) to purchase one share of Common Stock, (b) one Series A Warrant and (c) one Series B Warrant. The shares of Common Stock, the Pre-funded Warrants, and the Warrants were offered together, but the securities contained in the Common Units and the Pre-funded Units were issued separately. The Offering was made pursuant to the Company’s registration statement on Form S-1 (File Number 333-255757), which was declared effective on May 10, 2021.

In June 2021 some investors who participated in the Offering started exercising their Series A and Series B Warrants.

As of August 16, 2021, 1,266,025 Series A Warrants and 6,598 Series B Warrants were exercised and 1,269,324 common shares of the Company were issued.

The net proceeds to the Company from the Offering ~~was~~were approximately $29.2 million, excluding the proceeds, if any, from the exercise of the Warrants and the Pre-funded Warrants sold in the Offering, and after deducting underwriting discounts and commissions and the payment of other estimated offering expenses associated with the Offering that are payable by the Company. On May 17, 2021, the Company paid S$37,894,063.20 Singapore Dollars (equal to approximately $28,475,719 U.S. Dollars) received from the Offering to exercise warrants to purchase 789,459,650 shares of Alset International Limited at an exercise price of S$.048 Singapore Dollars (equal to approximately $.036 U.S. Dollars) per share. The proceeds have been received by Alset International Limited.

On June 14, 2021 Chan Heng Fai converted $50,920,129 in principal amount and $306,437 in interest under a $50,920,129 2% convertible promissory notes issued on March 12, 2021 into 9,163,965 shares of the Company’s common stock.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

~~NEVADA~~nevada		83-1079861
State or other jurisdiction of incorporation or organization		(I.R.S. Employer Identification No.)

4800 Montgomery Lane, Suite 210 , Bethesda, Maryland		20814
(Address of principal executive offices)		(Zip Code)

Title of Each Class		Trading Symbol(s)		Name of Each Exchange on Which Registered
Common Stock, $0.001 par value		AEI		The NasdaqStock Market LLC

PART I FINANCIAL INFORMATION	F-1

Item 1. Consolidated Financial Statements (Unaudited)

Consolidated Balance Sheets – ~~March 31,~~June 30, 2021 and December 31, 2020	F-1

Consolidated Statements of Operations and Other Comprehensive Income (Loss) - Three and Six Months Ended ~~March 31,~~June 30, 2021 and 2020	F-2

Consolidated Statements of Stockholders’ Equity – Three and Six Months Ended ~~March 31,~~June 30, 2021 and 2020	F-3

Consolidated Statements of Cash Flows – ~~Three~~Six Months Ended ~~March 31,~~June 30, 2021 and 2020	~~F-4~~F-5

Notes to Consolidated Financial Statements	~~F-5~~F-6 – ~~F-33~~F-35

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	2

Item 3. Quantitative and Qualitative Disclosure About Market Risk	79

Item 4. Controls and Procedures	79

PART II OTHER INFORMATION	79

Item 1. Legal Proceedings	79

Item 1A. Risk Factors	79

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	79

Item 3. Defaults Upon Senior Securities	710

Item 4. Mine Safety Disclosures	710

Item 5. Other Information	810

Item 6. Exhibits	811

SIGNATURES	1012


	Series A Preferred Stock						Series B Preferred Stock						Common Stock
	Shares			Par Value $0.001			Shares			Par Value $0.001			Shares			Par Value $0.001			Additional Paid in Capital			Accumulated Other Comprehensive Income			Accumulated Deficit			Total Alset EHome International Stockholders’ Equity			Non-Controlling Interests			Total Stockholders’ Equity
Balance at January 1, 2021 As Combined		-		$	-			-		$	-			8,570,000		$	8,570		$	102,729,944		$	2,143,338		$	(44,910,297	)	$	59,971,555		$	38,023,260		$	97,994,815

Issuance of Common Stock
Issuance of Common Stock, shares
Change Common stock to Series A Prefered Stock
Change Common stock to Series A Prefered Stock, shares
Issuance of Series B Prefered Stock
Issuance of Series B Prefered Stock, shares
Convert Preferred Stock Series A and B to Common
Convert Preferred Stock Series A and B to Common, shares
Convertible Note to Stock
Convertible Note to Stock, shares
Cancellation of Outstanding Stock
Cancellation of Outstanding Stock, shares
Change in Minority Interest
Issuance of Stock for Services		-			-			-			-			10,000			10			60,890			-			-			60,900			-			60,900

Transactions under Common Control		-			-			-			-			-			-			(57,190,499	)		-			-			(57,190,499	)		-			(57,190,499	)

Sale of Vivacitas to Related Party		-			-			-			-			-			-			2,279,872			-			-			2,279,872			-			2,279,872

Purchase Stock of True Partner from Related Party		-			-			-			-			-			-			3,274,060			-			-			3,274,060			-			3,274,060

Beneficial Conversion Feature Intrinsic Value, Net		-			-			-			-			-			-			50,770,192			-			-			50,770,192			-			50,770,192

Subsidiary’s Issuance of Stock		-			-			-			-			-			-			46,099			-			-			46,099			34,677			80,776

Proceeds from Selling Subsidiary Equity		-			-			-			-			-			-			142,675			-			-			142,675			107,325			250,000

Change in Non-Controlling Interest		-			-			-			-			-			-			76,412			(39,067	)		-			37,345			(37,345	)		-

Change in Unrealized Loss on Investment		-			-			-			-			-			-			-			(1,135	)		-			(1,135	)		(852	)		(1,987	)

Foreign Currency Translations		-			-			-			-			-			-			-			(1,010,527	)		-			(1,010,527	)		(758,913	)		(1,769,440	)

Distribution to Non-Controlling Shareholders		-			-			-			-			-			-			-			-			-			-			(82,250	)		(82,250	)

Net Loss		-			-			-			-			-			-			-			-			(6,238,449	)		(6,238,449	)		(3,569,112	)		(9,807,561	)

Balance at March 31, 2021		-			-			-			-			8,580,000			8,580			102,189,645			1,092,609			(51,148,746	)		52,142,088			33,716,790			85,858,878

Issuance of Common Stock		-			-			-			-			8,389,324			8,389			39,260,191			-			-			39,268,580			-			39,268,580

Convert Common stock to Series A Preferred Stock		6,380			6			-			-			(6,380,000	)		(6,380	)		6,374			-			-			-			-			-

Convert Related Party Note Payable to Series B Preferred Stock		-			-			2,132			2			-			-			12,999,998			-			-			13,000,000			-			13,000,000

Convert Series A and B Preferred Stock to Common Stock		(6,380	)		(6	)		(2,132	)		(2	)		8,512,000			8,512			(8,504	)		-			-			-			-			-

Change in Non-Controlling Interest		-			-			-			-			-			-			(2,885,117	)		(343,225	)		-			(3,228,342	)		3,228,342			-

Convert Related Party Note Payable to Common Stock		-			-			-			-			9,163,965			9,164			51,217,402			-			-			51,226,566			-			51,226,566

Subsidiary’s Issuance of Stock		-			-			-			-			-			-			1,961,349			-			-			1,961,349			784,100			2,745,449

Proceeds from Selling Subsidiary Equity		-			-			-			-			-			-			21,432			-			-			21,432			8,568			30,000

Change in Unrealized Loss on Investment		-			-			-			-			-			-			-			(25,663	)		-			(25,663	)		(10,259	)		(35,922	)

Foreign Currency Translations		-			-			-			-			-			-			-			(764,544	)		-			(764,544	)		(305,647	)		(1,070,191	)

Distribution to Non-Controlling Shareholders		-			-			-			-			-			-			-			-			-			-			(1,069,250	)		(1,069,250	)

Net Loss		-			-			-			-			-			-			-			-			(66,650,864	)		(66,650,864	)		(8,238,460	)		(74,889,324	)

Balance at June 30, 2021		-		$	-			-		$	-			28,265,289		$	28,265		$	204,762,770		$	(40,823	)	$	(117,799,610	)	$	86,950,602		$	28,114,184		$	115,064,786

Large accelerated filer	~~[ ]~~☐	Accelerated filer	~~[ ]~~☐
Non-accelerated filer	~~[X]~~☒	Smaller reporting company	~~[X]~~☒
		Emerging growth company	~~[X]~~☒

	Preferred Stock				Common Stock				Additional			Accumulated Other						Total Alset EHome International			Non-			Total
	Shares		Par Value $0.001		Shares		Par Value $0.001		Paid in Capital			Comprehensive Income			Accumulated Deficit			Stockholders’ Equity			Controlling Interests			Stockholders’ Equity
Balance at January 1, 2021 (As Combined)						8,570,000	$	8,570	$	102,339,666		$	2,143,338		$	(44,793,713	)	$	59,697,861		$	37,980,325		$	97,678,186

Issuance of Stock for Services		-		-		10,000		10		60,890			-			-			60,900			-			60,900

Transactions under Common Control		-		-		-		-		(57,190,499	)		-			-			(57,190,499	)		-			(57,190,499	)

Sale of Vivacitas to Related Party		-		-		-		-		2,279,872			-			-			2,279,872			-			2,279,872

Purchase Stock of True Partner from Related Party		-		-		-		-		3,274,060			-			-			3,274,060			-			3,274,060

Beneficial Conversion Feature		-		-		-		-		50,770,192			-			-			50,770,192			-			50,770,192

Subsidiary’s Issuance of Stock		-		-		-		-		46,099			-			-			46,099			34,677			80,776

Proceeds from Selling Subsidiary Equity		-		-		-		-		142,675			-			-			142,675			107,325			250,000

Change in Non-Controlling Interest		-		-		-		-		76,412			(39,067	)		-			37,345			(37,345	)		-

Change in Unrealized Gain on Investment		-		-		-		-		-			(1,135	)		-			(1,135	)		(852	)		(1,987	)

Foreign Currency Translations		-		-		-		-		-			(1,010,527	)		-			(1,010,527	)		(758,913	)		(1,769,440	)

Distribution to Non-Controlling Shareholders		-		-		-		-		-			-			-			-			(82,250	)		(82,250	)

Net Loss		-		-		-		-		-			-			(6,235,636	)		(6,235,636	)		(3,569,112	)		(9,804,748	)

Balance at March 31, 2021						8,580,000	$	8,580	$	101,799,367		$	1,092,609		$	(51,029,349	)	$	51,871,207		$	33,673,855		$	85,545,062

		Attributable interest as of,
Name of subsidiary consolidated under AEI	State or other jurisdiction of incorporation or organization	June 30, 2021			December 31, 2020
			%			%
Hengfai International Pte. Ltd	Singapore		100			100
Hengfai Business Development Pte. Ltd	Singapore		100			100
Heng Fai Enterprises Pte. Ltd.	Singapore		0			100
Global eHealth Limited	Hong Kong		100			100
Alset International Limited (f.k.a. Singapore eDevelopment Limited)	Singapore		71.4			57.1
Singapore Construction & Development Pte. Ltd.	Singapore		71.4			57.1
Art eStudio Pte. Ltd.	Singapore		36.4	*		29.1	*
Singapore Construction Pte. Ltd.	Singapore		71.4			57.1
Global BioMedical Pte. Ltd.	Singapore		71.4			57.1
Alset Innovation Pte. Ltd. (f.k.a. SeD Investment Pte. Ltd.)	Singapore		71.4			57.1
Health Wealth Happiness Pte. Ltd.	Singapore		71.4			57.1
SeD Capital Pte. Ltd.	Singapore		71.4			57.1
LiquidValue Asset Management Pte. Ltd. (f.k.a. HengFai Asset Management Pte. Ltd.)	Singapore		76.6			46.9	*
SeD Home Limited	Hong Kong		71.4			57.1
SeD Management Pte. Ltd. (f.k.a. SeD Reits Management Pte. Ltd.)	Singapore		71.4			57.1
Global TechFund of Fund Pte. Ltd.	Singapore		71.4			57.1
Singapore eChainLogistic Pte. Ltd.	Singapore		71.4			57.1
BMI Capital Partners International Limited.	Hong Kong		71.4			57.1
SeD Perth Pty. Ltd.	Australia		71.4			57.1
SeD Intelligent Home Inc. (f.k.a SeD Home International, Inc.)	United States of America		71.4			57.1
LiquidValue Development Inc. (f.k.a. SeD Intelligent Home Inc.)	United States of America		71.4			57.1
Alset EHome Inc. (f.k.a. Alset iHome Inc., SeD Home & REITs Inc. and SeD Home, Inc.)	United States of America		71.4			57.1
SeD USA, LLC	United States of America		71.4			57.1
150 Black Oak GP, Inc.	United States of America		71.4			57.1
SeD Development USA Inc.	United States of America		71.4			57.1
150 CCM Black Oak, Ltd.	United States of America		71.4			57.1
SeD Texas Home, LLC	United States of America		71.4			57.1
SeD Ballenger, LLC	United States of America		71.4			57.1
SeD Maryland Development, LLC	United States of America		59.7			47.8	*
SeD Development Management, LLC	United States of America		60.7			48.6	*
SeD Builder, LLC	United States of America		71.4			57.1
GigWorld Inc. (f.k.a. HotApp Blockchain Inc.)	United States of America		71.2			57.0
HotApp BlockChain Pte. Ltd. (f.k.a. HotApps International Pte. Ltd.)	Singapore		71.2			57.0
HotApp International Limited	Hong Kong		71.2			57.0
HWH International, Inc.	United States of America		71.4			57.1
Health Wealth & Happiness Inc.	United States of America		71.4			57.1
HWH Multi-Strategy Investment, Inc.	United States of America		71.4			57.1
SeD REIT Inc.	United States of America		71.4			57.1
Gig Stablecoin Inc. (f.k.a. Crypto Exchange Inc.)	United States of America		71.2			57.0
HWH World Inc.	United States of America		71.2			57.0
HWH World Pte. Ltd.	Singapore		71.2			57.0
UBeauty Limited	Hong Kong		71.4			57.1
WeBeauty Korea Inc	Korea		71.4			57.1
HWH World Limited	Hong Kong		71.4			57.1
HWH World Inc.	Korea		71.4			57.1
Alset BioHealth Pte. Ltd.	Singapore		71.4			57.1
Alset Energy Pte. Ltd.	Singapore		71.4			57.1
Alset Payment Inc.	United States of America		71.4			57.1
Alset World Pte. Ltd.	Singapore		71.4			57.1
BioHealth Water Inc.	United States of America		71.4			57.1
Impact BioHealth Pte. Ltd.	Singapore		71.4			57.1
American Home REIT Inc.	United States of America		76.6			46.9	*
Alset Solar Inc.	United States of America		57.1			45.7	*
HWH KOR Inc.	United States of America		71.4			57.1
Open House Inc.	United States of America		71.4			57.1
Open Rental Inc.	United States of America		71.4			57.1
Hapi Cafe Inc. (Nevada)	United States of America		71.4			57.1
Global Solar REIT Inc.	United States of America		71.4			57.1
OpenBiz Inc.	United States of America		71.4			57.1
Hapi Cafe Inc. (Texas)	United States of America		100			100
HWH (S) Pte. Ltd.	Singapore		71.4			0
American Pacific Bancorp Inc.	United States of America		86.4			0
HengFeng Finance Limited	Hong Kong		86.4			0
Decentralize Finance Inc.	United States of America		86.4			0
True Partner International Limited	Hong Kong		100			0
LiquidValue Development Pte. Ltd.	Singapore		100			0
LiquidValue Development Limited.	Hong Kong		100			0
EPowerTech Inc.	United States of America		100			0
Alset EPower Inc.	United States of America		100			0

	●	The Company has significant influence over DSS. As of ~~March 31,~~June 30, 2021 and December 31, 2020, the Company owned approximately 11.7% of the common stock of DSS and 42,575 shares of preferred stock, which could covert to 6,570,216 common shares, subject to a 19.9% beneficial ownership conversion limitation (a so-called “blocker”) based on the total issued outstanding shares of common stock of DSS beneficially owned by Global BioMedical Pte Ltd (“GBM”), one of our subsidiaries.DSS. Our CEO is a Stockholder and the Chairman of the Board of Directors of DSS. Chan Tung Moe, our Co-Chief Executive Officer and the son of Chan Heng Fai, is also a director of DSS.

	●	The Company has significant influence over Holista as the Company and its CEO are the beneficial owner of approximately ~~16.8%~~16.8% of the outstanding shares of Holista and our CEO ~~holds~~held a position on Holista’s Board of Directors.

	●	The Company has significant influence over OptimumBank. Our CEO is the beneficial owner of approximately ~~3.9%~~3.9% of the outstanding shares of OptimumBank and holds a position on OptimumBank’s Board of Directors.

	●	The Company has significant influence over APW as the Company is the beneficial owner of approximately ~~8.7%~~8.7% of the common shares of APW and one officer from the Company holds a director position on APW’s Board of Directors.

		Number of Homes				Aggregate investment				Average Investment per Home
SFRs			30			$	6,825,907			$	227,530

	Shares		Par value		Amount received
Offering		4,700,637	$	4,701	$	29,145,056
Exercise of Pre-Funded Units		1,611,000	$	1,611	$	16,110
Exercise of Underwriter’s Series A Warrants		808,363	$	808	$	3,755,774
Exercise of Series A and Series B Warrants		1,269,324	$	1,269	$	6,440,487
Offering Expenses		-	$	-	$	(88,848	)
Total		8,389,324	$	8,389	$	39,268,580

	Warrant for Common Shares			Weighted Average Exercise Price		Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Warrants Outstanding as of December 31, 2020		108,000		$	9.80		2.91	$	-
Warrants Vested and exercisable at December 31, 2020		108,000		$	9.80		2.91	$	-
Granted		14,240,000			4.18
Exercised		(2,080,986	)		5.06
Forfeited, cancelled, expired		-			-
Warrants Outstanding as of June 30, 2021		12,267,014		$	4.08		4.85	$	3,077,823
Warrants Vested and exercisable at June 30, 2021		12,267,014		$	4.08		4.85	$	3,077,823

	Warrant for				Remaining Contractual		Aggregate
	Common Shares		Exercise Price		Term (Years)		Intrinsic Value
Outstanding as of December 31, 2020		108,000	$	9.80		2.95	$	-
Vested and exercisable at December 31, 2020		108,000	$	9.80		2.95	$	-
Granted		-		-
Exercised		-		-
Forfeited, cancelled, expired		-		-
Outstanding as of March 31, 2021		108,000	$	9.80		2.70	$	191,160
Vested and exercisable at March 31, 2021		108,000	$	9.80		2.70	$	191,160

	~~11.~~1.	~~ACCUMULATED OTHER COMPREHENSIVE INCOME~~The disposal group constitutes a component of an entity or a group of components of an entity.

	2.	The component of an entity (or group of components of an entity) meets the held-for-sale classification criteria, is disposed of by sale, or is disposed of other than by sale (e.g., “by abandonment, in an exchange measured based on the recorded amount of the nonmonetary asset relinquished, or in a distribution to owners in a spinoff”).

	3.	The disposal of a component of an entity (or group of components of an entity) “represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results”.

	Unrealized Gains and Losses on Security Investment			Foreign Currency Translations			Change in Minority Interest			Total
Balance at January 1, 2021	$	(48,758	)	$	2,258,017		$	(65,921	)	$	2,143,338

Other Comprehensive Income		(1,135	)		(1,010,527	)		(39,067	)		(1,050,729	)

Balance at March 31, 2021	$	(49,893	)	$	1,247,490		$	(104,988	)	$	1,092,609

Other Comprehensive Income		(25,663	)		(764,544	)		(343,225	)		(1,133,432	)

Balance at June 30, 2021	$	(75,556	)	$	482,946		$	(448,213	)	$	(40,823	)

	Amount at		Fair Value Measurement Using						Amount at
	Cost		Level 1		Level 2		Level 3		Fair Value
June 30, 2021
Assets
Investment Securities- Fair Value	$	14,784,540	$	27,004,907	$	-	$	-	$	27,004,907
Investment Securities- Trading		968,525		954,109		-		-		954,109
Convertible Preferred Stock		42,889,000		-		-		-		-
Convertible Note Receivable		138,599		-		-		117,668		117,668
Warrants - American Premium Water		860,342		-		-		2,048,747		2,048,747
Warrants - AMRE		-		-		-		-		-

Total Investment in securities at Fair Value	$	59,641,006	$	27,959,016	$	-	$	2,166,415	$	30,125,431

	Amount at		Fair Value Measurement Using						Amount at
	Cost		Level 1		Level 2		Level 3		Fair Value
December 31, 2020
Assets
Investment securities- Fair Value Option	$	7,404,911	$	10,549,102	$	-	$	-	$	10,549,102
Investment securities- Trading		17,650		18,654		-		-		18,654
Convertible preferred stock		42,889,000		-		-		37,675,000		37,675,000
Convertible note receivable		50,000		-		-		66,978		66,978
Warrants - American Premium Water		860,342		-		-		862,723		862,723
Warrants - AMRE		-		-		-		-		-
Stock Options - Vivacitas		-		-		-		-		-
Total Investment in securities at Fair Value	$	51,221,903	$	10,567,756	$	-	$	38,604,701	$	49,172,457

	Share price					Market Value
	6/30/2021		Shares			6/30/2021		Valuation

DSS (Related Party)	$	1.790		7,732,671	^*	$	13,841,481	Investment in Securities at Fair Value

AMBS (Related Party)	$	0.008		20,000,000		$	150,000	Investment in Securities at Fair Value

Holista (Related Party)	$	0.044		46,226,673		$	2,047,424	Investment in Securities at Fair Value

American Premium Water (Related Party)	$	0.007		122,039,000		$	817,661	Investment in Securities at Fair Value

OptimumBank (Related Party)	$	4.820		92,980		$	448,164	Investment in Securities at Fair Value

True Partners	$	0.135		62,122,908		$	8,400,177	Investment in Securities at Fair Value

Value Exchange	$	0.200		6,500,000		$	1,300,000	Investment in Securities at Fair Value

Trading Stocks						$	954,109	Investment in Securities at Fair Value

		Total Level 1 Equity Securities				$	27,959,016
Nervotech		N/A		1,666		$	37,826	Investment in Securities at Cost
Hyten Global		N/A		20,000		$	42,562	Investment in Securities at Cost
K Beauty		N/A		3,600		$	19,609	Investment in Securities at Cost
		Total Equity Securities				$	28,059,013

	Share price					Market Value
	12/31/2020		Shares			12/31/2020		Valuation

DSS (Related Party)	$	6.240		1,162,501	^*	$	7,254,006	Investment in Securities at Fair Value

AMBS (Related Party)	$	0.008		20,000,000		$	160,000	Investment in Securities at Fair Value

Holista (Related Party)	$	0.055		46,226,673		$	2,565,469	Investment in Securities at Fair Value

American Premium Water (Related Party)	$	0.002		122,039,000		$	256,284	Investment in Securities at Fair Value

OptimumBank (Related Party)	$	3.370		92,980		$	313,343	Investment in Securities at Fair Value

Trading Stocks						$	18,654	Investment in Securities at Fair Value

		Total Level 1 Equity Securities				$	10,567,756
Vivacitas (Related Party)		N/A		2,480,000		$	200,128	Investment in Securities at Cost
Nervotech		N/A		1,666		$	37,826	Investment in Securities at Cost
Hyten Global		N/A		20,000		$	42,562	Investment in Securities at Cost

		Total Equity Securities				$	10,848,272

	Share price					Market Value
	3/31/2021		Shares			3/31/2021		Valuation

DSS (Related Party)	$	3.610		1162501	*	$	4,196,629	Investment in Securities at Fair Value

AMBS (Related Party)	$	0.011		20,000,000		$	228,000	Investment in Securities at Fair Value

Holista (Related Party)	$	0.049		46,226,673		$	2,285,838	Investment in Securities at Fair Value

American Premium Water (Related Party)	$	0.008		122,039,000		$	1,025,128	Investment in Securities at Fair Value

OptimumBank (Related Party)	$	3.870		92,980		$	359,833	Investment in Securities at Fair Value

True Partners	$	0.158		62,122,908		$	9,828,563	Investment in Securities at Fair Value

Trading Stocks						$	2,468,809	Investment in Securities at Fair Value

		Total Level 1 Equity Securities				$	20,392,798

	As of March 31,			As of December 31,
	2021			2020
Stock price	$	4.22		$	6.24
Risk-free rate		1.64	%		0.93	%
Volatility		109.67	%		113.69	%
Expected Exit Date		March 24, 2023			December 31, 2023
Dividend Yield		0.00			0.00

	Total
Balance at January 1, 2020	$	26,209
Total losses		(12,599	)
Balance at March 31, 2020	$	13,610
Total gain		13,115
Balance at June 30, 2020	$	26,725

	March 31, 2021			December 31, 2020

Stock Price	$	0.0084		$	0.0021
Exercise price		0.001			0.001
Risk free interest rate		1.74	%		0.88	%
Annualized volatility		232.10	%		178.86	%
Year to maturity		9.32			9.58

Office Location	Lease Term as of December 31, 2020	Renewed Lease term in 2021
Singapore	June 2020 to May 2021	June 2021	to May 2022
Hong Kong	October 2020 to October 2022
South Korea	August 2020 to August 2022
Magnolia, Texas, USA	November 2019 to April 2021	May 2021 to October 2021
Bethesda, Maryland, USA	August 2015 to December 2020	January 2021 to March 2024

	1.	The disposal group constitutes a component of an entity or a group of components of an entity.

	2.	The component of an entity (or group of components of an entity) meets the held-for-sale classification criteria, is disposed of by sale, or is disposed of other than by sale (e.g., “by abandonment, in an exchange measured based on the recorded amount of the nonmonetary asset relinquished, or in a distribution to owners in a spinoff”).

	3.	The disposal of a component of an entity (or group of components of an entity) “represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results”.

	Six Months Ended June 30
	2021			2020
Net cash provided by (used in) operating activities	$	(10,649,851	)	$	204,205
Net cash provided by investing activities	$	2,234,619		$	220,979
Net cash provided by financing activities	$	43,898,095		$	4,706,192

1.1	Underwriting Agreement, dated as of May 10, 2021, by and between Alset EHome International Inc. and Aegis Capital Corp., as representative of the underwriters named therein, incorporated herein by reference to Exhibit 1.1 to the Company’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on May 14, 2021.

3.1	~~Certificate of Merger, incorporated herein by reference to Exhibit 3.5 to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on February 11, 2021.~~

~~3.2~~	Certificate of Designation of the Company’s Series A Convertible Preferred Stock, incorporated herein by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on May 4, ~~2021.~~2021

~~3.3~~3.2	Certificate of Designation of the Company’s Series B Convertible Preferred Stock, incorporated herein by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on May 12, 2021.

~~4.1~~3.3	Certificate of Amendment, incorporated by reference to Exhibit 3.1 on Form 8-K filed with the SEC on June 14, 2021.

4.1	Pre-funded Warrant ~~Agent~~ Agreement, ~~(including the terms of the Pre-funded Warrant),~~ incorporated herein by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on May 14, 2021.

4.2	Series A Warrant ~~Agent~~ Agreement, ~~(including the terms of the Series A Warrant),~~ incorporated herein by reference to Exhibit 4.2 to the Company’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on May 14, 2021.

4.3	Series B Warrant ~~Agent~~ Agreement, ~~(including the terms of the Series B Warrant),~~ incorporated herein by reference to Exhibit 4.3 to the Company’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on May 14, 2021.

10.1	Binding Term Sheet on Share Exchange Transaction Among HF Enterprises Inc. and Mr. Chan Heng Fai Ambrose, dated January 4, 2021, incorporated herein by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on January 12, 2021.

~~10.2~~	Term Sheet by and among Document Security Systems, Inc., Alset International Limited, Health Wealth Happiness Pte. Ltd., and HWH World Inc. dated January 6, 2021, incorporated herein by reference to Exhibit 99.1 to the Company’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on January 7, 2021.

~~10.3~~	Executive Employment Agreement, by and between Alset EHome International Inc., Hengfai Business Development Pte Ltd. and Chan Heng Fai, dated as of February 8, 2021, incorporated herein by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on February 12, 2021.

~~10.4~~	Securities Purchase Agreement By and Among Alset EHome International Inc., Chan Heng Fai Ambrose, True Partners International Limited, LiquidValue Development Pte Ltd. and American Pacific Bancorp, Inc. dated March 12, 2021, incorporated herein by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on March 18, 2021.

~~10.5~~	2% Conditional Convertible Promissory Note dated March 12, 2021, in the principal amount of $28,363,966.42, incorporated herein by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on March 18, 2021.

~~10.6~~	2% Conditional Convertible Promissory Note dated March 12, 2021, in the principal amount of $173,394.87, incorporated herein by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on March 18, 2021.

~~10.7~~	2% Conditional Convertible Promissory Note dated March 12, 2021, in the principal amount of $6,729,629.29, incorporated herein by reference to Exhibit 10.4 to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on March 18, 2021.

~~10.8~~	2% Conditional Convertible Promissory Note dated March 12, 2021, in the principal amount of $28,653,138.00, incorporated herein by reference to Exhibit 10.5 to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on March 18, 2021.

~~10.9~~	Loan and Exchange Agreement By and Between the Company and Chan Heng Fai, incorporated herein by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on May 4, 2021.

~~10.10~~10.2	Form of Series A Warrant Agent Agreement, incorporated by reference to Exhibit 10.33 on Form S-1 filed with the SEC on May 4, 2021.

10.3	Form of Series B Warrant Agent Agreement, incorporated by reference to Exhibit 10.34 on Form S-1 filed with the SEC on May 4, 2021.

10.4	Exchange Agreement By and Between the Company and Chan Heng Fai, incorporated herein by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on May 12, 2021.

~~10.11~~10.5	Promissory Note, incorporated herein by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on May 20, 2021.

31.1*10.6	Executive Employment Agreement, by and between Alset EHome International Inc., Hengfai Business Development Pte Ltd. and Chan Tung Moe, dated as of July 1, 2021, incorporated by reference to Exhibit 10.1 on Form 8-K filed with the SEC on July 7, 2021

31.1a*	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

~~31.2a~~31.1b	Certification of Co-Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2a*	Certification of Co-Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

~~31.2b~~31.2b	Certification of Co-Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

~~32.1~~32.1***	Certifications of the Chief Executive Officer and Chief Financial Officers pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

	ALSET EHOME INTERNATIONAL INC.

~~May 24,~~August 16, 2021	By:	/s/ Chan Heng Fai
		Chan Heng Fai Chairman of the Board and Chief Executive Officer
		(Principal Executive Officer)

~~May 24,~~August 16, 2021	By:	/s/ Chan Tung Moe
		Chan Tung Moe
		Co-Chief Executive Officer
		(Principal Executive Officer)