Note 25 - Subsequent Events

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Subsequent Events [Text Block]

25. Subsequent events

In

January 2021,

the Company co-founded a new entity, Xiao Peng Education Technology (Hubei) Co., Ltd. (“Xiao Peng Education”), in which the Company beneficially owns a

17%

equity interest. The registered capital of Xiao Peng Education is

RMB3.0

million (approximately

US$0.46

million). Xiao Peng Education is primarily engaged in providing precision marketing services to online education service providers.

In

January 2021,

the Company acquired a

15%

equity interest in Guangzhou Gong Xiang Technology Co., Ltd. (“Gong Xiang Technology”) for a cash consideration of

RMB1.5

million (approximately

US$0.23

million). Gong Xiang Technology is primarily engaged in operating of an online marketplace for merchandise sales.

In

February 2021,

the Company completed an additional registered direct offering of

5,212,000

shares of common stock to certain institutional investors at a per share price of

$3.59.

The Company also completed a concurrent private placement of unregistered warrants to purchase up to

2,606,000

shares of common stock. The warrants have a term of

three

and

one

-half years and are exercisable at a price of

$3.59

per share. The warrants were issued pursuant to an exemption from registration under the Securities Act of

1933,

as amended. The Company received gross proceeds of approximately

$18.7

million, before the placement agent fees and offering related expenses.

In

March 2021, 

under its

2020

Omnibus Securities and Incentive Plan, the Company granted and issued

0.03

million fully-vested shares of the Company's restricted common stock to

one

of the Company's independent directors for his service to the Company for the year ending

December 31, 2021.

These shares were valued at the closing bid price of the Company's common stock on the date of grant, which was

US$3.13

per share. Total compensation expenses related to these shares was approximately

US$0.09

million.

The Company primarily conducts its operations in the PRC. In

January 2020,

an outbreak of a novel coronavirus (COVID-

19

) surfaced in Wuhan City, Hubei province of the PRC, and spread all over the country during the

first

fiscal quarter of

2020.

The spread of COVID-

19

resulted in the World Health Organization declaring the outbreak of COVID-

19

as a global pandemic. The Company's principal business activity is to provide advertising and marketing services to small and medium enterprises in the PRC, which is particularly sensitive to changes in general economic conditions. The pandemic of COVID-

19

in the PRC had caused and

may

continue to cause decreases in or delays in advertising spending, and had negatively impacted and

may

continue to negatively impact the Company's short-term ability to grow revenues. Although the Chinese government had declared the COVID-

19

outbreak largely under control within its border since the

second

fiscal quarter of

2020,

the Company will continue to assess its financial impacts for the future periods. There can be

no

assurance that this assessment will enable the Company to avoid part or all of any impact from the spread of COVID-

19

or its consequences, including downturns in business sentiment generally or in the Company's sector in particular.