What changed in this filing

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Item 5. Market for Registrant’s Common Equity

2021-07-08 compared with 2020-07-09 · 35 added, 39 removed, 25 unchanged (75% of the section changed)

4 unchanged sentences

On July 7, 2021, our common stock had a closing price of $0.885.

Based upon information

furnished by our transfer agent, as of July 6, 2020, the Company had approximately 18 stockholders of record.

Because some of our

common stock is held by brokers and other institutions on behalf of stockholders, we are unable to estimate the total number of

stockholders represented by these record holders.

We have never declared

or paid cash dividends on our shares.

We do not have any present plan to pay any cash dividends on our common stock in the foreseeable

We currently intend to retain most, if not all, of our available funds and any future earnings to operate and grow our

Our board of directors

will have the discretion to declare and pay dividends in the future as we are a holding company and we rely on dividends and other

distributions on equity paid by our PRC subsidiaries for our cash and financing requirements, including the funds necessary to

pay dividends and other cash distributions to our stockholders and service any debt we may incur.

The Foreign Investment Law, and

the Company Law of the PRC (2006), as amended, contain the principal regulations governing dividend distributions by wholly foreign

owned enterprises.

Under these regulations, wholly foreign owned enterprises may pay dividends only out of their accumulated profits,

if any, determined in accordance with PRC accounting standards and regulations.

Additionally, such companies are required to set

aside 10% of their after-tax profits of the year, if any, to statutory reserve funds until such time as the accumulated reserve

funds reach and remain above 50% of the registered capital amount.

These reserves are not distributable as cash dividends except

in the event of liquidation and cannot be used for working capital purposes.

Furthermore, if our subsidiaries and affiliates in

China incur debt on their own in the future, the instruments governing the debt may restrict its ability to pay dividends or make

other payments.

If we or our subsidiary and affiliates are unable to receive all of the revenues from our operations through the

current contractual arrangements, we may be unable to pay dividends on our common stock.

Based upon information furnished

by our transfer agent, as of July 7, 2021, the Company had approximately 18 stockholders of record.

Because some of our common stock is

held by brokers and other institutions on behalf of stockholders, we are unable to estimate the total number of stockholders represented

by these record holders.

We have never declared or

paid cash dividends on our shares.

We do not have any present plan to pay any cash dividends on our common stock in the foreseeable future.

We currently intend to retain most, if not all, of our available funds and any future earnings to operate and grow our business.

Our board of directors will

have the discretion to declare and pay dividends in the future as we are a holding company and we rely on dividends and other distributions

on equity paid by our PRC subsidiaries for our cash and financing requirements, including the funds necessary to pay dividends and other

cash distributions to our stockholders and service any debt we may incur.

The Foreign Investment Law, and the Company Law of the PRC (2006),

as amended, contain the principal regulations governing dividend distributions by wholly foreign owned enterprises.

Under these regulations,

wholly foreign owned enterprises may pay dividends only out of their accumulated profits, if any, determined in accordance with PRC accounting

standards and regulations.

Additionally, such companies are required to set aside 10% of their after-tax profits of the year, if any,

to statutory reserve funds until such time as the accumulated reserve funds reach and remain above 50% of the registered capital amount.

These reserves are not distributable as cash dividends except in the event of liquidation and cannot be used for working capital purposes.

Furthermore, if our subsidiaries and affiliates in China incur debt on their own in the future, the instruments governing the debt may

restrict its ability to pay dividends or make other payments.

If we or our subsidiary and affiliates are unable to receive all of the

revenues from our operations through the current contractual arrangements, we may be unable to pay dividends on our common stock.

Equity Compensation Plan Information

In September 2018,

our board of directors and in November 2018, our stockholders approved, the 2018 Equity Incentive Plan, pursuant to which a maximum

of 2,000,000 shares of common stock were reserved for issuance to our employees, officers, directors, consultants.

The plan permits

the grant of nonqualified stock options, incentive stock options, restricted stock, restricted stock units (“RSUs”),

stock appreciation rights, stock bonus awards, and performance compensation awards.

As of the date of this Report, an aggregate

of 169,015 RSUs were issued under the plan.

The following table

provides information as of March 31, 2020 with respect to the shares of our common stock that may be issued under our existing

equity incentive plan:

In September 2018, our

board of directors and in November 2018, our stockholders approved, the 2018 Equity Incentive Plan, pursuant to which a maximum of

2,000,000 shares of common stock were reserved for issuance to our employees, officers, directors, consultants.

The plan permits the grant

of nonqualified stock options, incentive stock options, restricted stock, restricted stock units (“RSUs”), stock appreciation

rights, stock bonus awards, and performance compensation awards.

As of the date of this Report, an aggregate of 169,015 RSUs were issued

and 63,637 RSUs shall be vested but have not been issued under the plan.

The following table provides

information as of March 31, 2021 with respect to the shares of our common stock that may be issued under our existing equity incentive

Plan category

18 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 5. Market for Registrant’s Common Equity