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Amounts outstanding beneath the Note could additionally be transformed at any time, at the Lender’s choice, into shares of the Company’s Common Stock at a conversion worth of $3.00 per share, subject to certain changes as discussed in the July 2018 Note above. Due to halted trading of Huaxin inventory by NEEQ for not submitting its 2018 annual report, on December 19, 2019, Xi’an TCH, Xi’an Zhonghong, Guohua Ku and Chonggong Bai collectively and severally agreed to purchase back all excellent capital fairness of Xi’an Hanneng which was transferred to HYREF by Chonggong Bai earlie The conversion function did not require bifurcation and by-product accounting because the conversion price was higher than the market worth of the Company widespread shares, there was no helpful conversion characteristic to recognize.
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