Question-and-Answer Session
Operator
Yes ma'am. (Operator Instructions). And your first question comes from the line of Dimitri Wagner from Genesis Pharmaceuticals (ph). You may proceed.
Unidentified Analyst
Good morning, Elsa and the rest of the Board.
Sung Elsa
Good morning.
Unidentified Analyst
Good morning, Elsa. I have a couple of questions real quickly. On the other expenses listed and I'm looking at those and, are most of those related to the discontinued operations and what are the discontinued operations?
Sung Elsa
A portion of it actually was, yes a portion of it actually was related to the discontinued operations. And another major portion of it almost as big as the discontinued operation was the interest expense and the interest expense under this line item are comprised of several components.
One is the amortization expenses related to the convertible debenture. And then we have the actual of course the interest on those convertible debenture and also we have the amortization on the debt issuance cost related to those convertible debenture both also included in this interest expense line item. And another portion that's not quite as big but also in this other expense category was the loss on change of the market value on those securities holdings that we currently have in our portfolio.
Unidentified Analyst
Do you see the other expenses declining as we move into the future?
Sung Elsa
Yes, yes, part of the reason that we will see the loss from discontinued operation to decline is probably recognize of course the arbitration has come to us now. And in last quarter our loss from discontinued operation was significantly higher than previous quarter it was because the arbitration's amount that was awarded by the AAA was included in this line item. That's why this quarter is considerably large than last quarter.
Unidentified Analyst
Okay, great.
Sung Elsa
Now going forward we do expect this to decrease.
Unidentified Analyst
Great. Now, one other comment that you made in your notes in the liquidity of the capital resources about the PRC has strict rules in converting the RMB to other currencies and movement of funds from the PRC and management is evaluating resolving the situation--
Sung Elsa
Yes.
Unidentified Analyst
So I see that you are having trouble moving monies from China to the United States. Talk to us a little bit about that and what you see to remedy that?
Sung Elsa
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