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Note 23 - Share-based Compensation Expenses

6 Months Ended

Jun. 30, 2021

Share-based Payment Arrangement [Text Block]

23.

Share-based compensation expenses

In May 2021, under its 2020 Omnibus Securities and Incentive Plan, the Company granted and issued 3.99 million fully-vested shares of the Company’s restricted common stock to its management and employees for their services provided to the Company. These shares were valued at the closing bid price of the Company’s common stock on the date of grant, which was US$1.67 per share. Total compensation expenses recognized was approximately US$6.66 million for both the six and three months ended June 30, 2021.

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 amortized for the six and three months ended June 30, 2021 was approximately US$0.05 million and US$0.02 million, respectively.

For the six and three months ended June 30, 2021, the Company also amortized an approximately US$0.15 million and US$0.08 million compensation expense in the aggregate, respectively, which was related to fully-vested and nonforfeitable restricted common stock granted and issued to two of its service providers in March 2020 and August 2020, respectively.

During the first half year of 2020, under its 2015 Omnibus Securities and Incentive Plan, the Company granted and issued in the aggregate of approximately 1.63 million fully-vested shares of the Company’s restricted common stock to its management, employees and directors. These shares were valued at the closing bid price of the Company’s common stock on the respective date of grant. Total compensation expenses of approximately US$1.91 and US$0.01 million was recorded for the six and three months ended June 30, 2020, respectively.

In March 2020, the Company granted and issued 0.43 million shares of the Company restricted common stock to a management consulting and advisory service provider in exchange for its service for a two-year period. According to the service agreement, these shares are fully-vested upon issuance at the contract inception and shall not be subject to forfeiture upon termination of the agreement. The Company valued these shares at US$1.11 per share, the closing bid price of the Company’s common stock on the grant date of these shares and recorded the related total cost of approximately US$0.48 million as a prepayment asset in prepayment and deposit to suppliers account upon grant and issuance of these fully-vested and nonforfeitable shares. Total compensation expenses amortized for the six and three months ended June 30, 2020 was approximately US$0.08 million and US$0.06 million, respectively.

The table below summarized share-based compensation expenses recorded for the six and three months ended June 30, 2021 and 2020, respectively:

Six Months Ended June 30,

Three Months Ended June 30,

2021

2020

2021

2020

US$(’000)

(Unaudited)

Sales and marketing expenses

122

General and administrative expenses

6,857

1,719

6,757

Research and development expenses

146

Total

6,857

1,987

6,757

The aggregate unrecognized share-based compensation expenses as of June 30, 2021 was approximately US$0.21 million, of which approximately US$0.17 million will be recognized for the year ending December 31, 2021 and approximately US$0.04 million will be recognized for the year ending December 31, 2022.

Options issued and outstanding as of June 30, 2021 and their movements during the six months then ended are as follows:

	Option Outstanding						Option Exercisable
	Number of underlying shares		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Number of underlying shares		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price

Balance, January 1, 2021		277,976		0.91	$	3.00		277,976		0.91	$	3.00
Granted/Vested		-						-
Expired		-						-
Exercised		-						-
Balance, June 30, 2021 (Unaudited)		277,976		0.41	$	3.00		277,976		0.41	$	3.00