Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

a) Basis of presentation 

The unaudited condensed consolidated interim financial statements are prepared and presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

The unaudited condensed consolidated interim financial information as of June 30, 2021 and for the six and three months ended June 30, 2021 and 2020 have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures, which are normally included in complete consolidated financial statements prepared in accordance with U.S. GAAP, have been omitted pursuant to those rules and regulations. The unaudited condensed consolidated interim financial information should be read in conjunction with the financial statements and the notes thereto, included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, previously filed with the SEC (the “2020 Form 10-K”) on April 13, 2021.

In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair statement of the Company’s condensed consolidated financial position as of June 30, 2021, its condensed consolidated results of operations for the six and three months ended June 30, 2021 and 2020, and its condensed consolidated cash flows for the six months ended June 30, 2021 and 2020, as applicable, have been made. The interim results of operations are not necessarily indicative of the operating results for the full fiscal year or any future periods.

Consolidation, Policy [Policy Text Block]

b) Principles of consolidation

The unaudited condensed consolidated interim financial statements include the accounts of all the subsidiaries and VIEs of the Company. All transactions and balances between the Company and its subsidiaries and VIEs have been eliminated upon consolidation.

Use of Estimates, Policy [Policy Text Block]

c) Use of estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related disclosure of contingent assets and liabilities at the date of these consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. The Company continually evaluates these estimates and assumptions based on the most recently available information, historical experience and various other assumptions that the Company believes to be reasonable under the circumstances. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from those estimates.

Foreign Currency Transactions and Translations Policy [Policy Text Block]

d) Foreign currency translation

The exchange rates used to translate amounts in RMB into US$ for the purposes of preparing the condensed consolidated financial statements are as follows:

	June 30, 2021		December 31, 2020
Balance sheet items, except for equity accounts		6.4601		6.5249

	Six Months Ended June 30,
	2021		2020
Items in the statements of operations and comprehensive loss		6.4718		7.0319

	Three Months Ended June 30,
	2021		2020
Items in the statements of operations and comprehensive loss		6.4596		7.0839

No representation is made that the RMB amounts could have been, or could be converted into US$ at the above rates.

Fair Value Measurement, Policy [Policy Text Block]

e) Fair value measurement

Liabilities measured at fair value on a recurring basis by level within the fair value hierarchy as of June 30, 2021 and December 31, 2020 are as follows:

			Fair value measurement at reporting date using
	As of June 30, 2021		Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	US$(’000)		US$(’000)		US$(’000)		US$(’000)
	(Unaudited)
Warrant liabilities (Note 16)		6,597		-		-		6,597

			Fair value measurement at reporting date using
	As of December 31, 2020		Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	US$(’000)		US$(’000)		US$(’000)		US$(’000)
Warrant liabilities (Note 16)		1,505		-		-		1,505

Revenue from Contract with Customer [Policy Text Block]

f) Revenue recognition

The following tables present the Company’s revenues disaggregated by products and services and timing of revenue recognition:

	Six Months Ended June 30,				Three Months Ended June 30,
	2021		2020		2021		2020
	US$(’000)		US$(’000)		US$(’000)		US$(’000)
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Internet advertising and related services
--distribution of the right to use search engine marketing service		18,965		9,298		12,100		7,310
--online advertising placements		3,595		3,250		2,193		2,302
--data and technical services		-		600		-		300
Ecommerce O2O advertising and marketing services		387		1,007		258		504
Technical solution services		-		645		-		-
Total revenues	$	22,947	$	14,800	$	14,551	$	10,416

	Six Months Ended June 30,				Three Months Ended June 30,
	2021		2020		2021		2020
	US$(’000)		US$(’000)		US$(’000)		US$(’000)
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Revenue recognized over time		22,947		14,155		14,551		10,416
Revenue recognized at a point in time		-		645		-		-
Total revenues	$	22,947	$	14,800	$	14,551	$	10,416

Contract costs

For the six and three months ended June 30, 2021 and 2020, the Company did not have any significant incremental costs of obtaining contracts with customers incurred and/or costs incurred in fulfilling contracts with customers, that shall be recognized as an asset and amortized to expenses in a pattern that matches the timing of the revenue recognition of the related contract.

Contract liabilities

The table below summarized the movement of the Company’s contract liabilities for the six months ended June 30, 2021:

	Contract liabilities
	US$(’000)
Balance as of January 1, 2021		1,436
Exchange translation adjustment		14
Revenue recognized from beginning contract liability balances		(1,245	)
Advances received from customers related to unsatisfied performance obligations		1,334
Balance as of June 30, 2021 (Unaudited)	$	1,539

Advance from customers related to unsatisfied performance obligations are generally refundable. Refund of advance from customers were insignificant for the six and three months ended June 30, 2021 and 2020.

For the six and three months ended June 30, 2021 and 2020, there is no revenue recognized from performance obligations that were satisfied in prior periods.

Research and Development Expense, Policy [Policy Text Block]

g) Research and development expenses

The Company accounts for expenses for the enhancement, maintenance and technical support to the Company’s Internet platforms and intellectual properties that are used in its daily operations in research and development expenses. Research and development costs are charged to expense when incurred. Expenses for research and development for the six months ended June 30, 2021 and 2020 were approximately US$0.16 million and US$0.33 million, respectively. Expenses for research and development for the three months ended June 30, 2021 and 2020 were approximately US$0.09 million and US$0.12 million, respectively.

Lessee, Leases [Policy Text Block]

h) Lease

As of June 30, 2021, operating lease right-of-use assets and total operating lease liabilities recognized was approximately US$2.11 million and US$2.17 million, respectively.

Maturity of operating lease liabilities

	Operating leases
	US$(’000)
	(Unaudited)
Six months ending December 31, 2021		147
Year ending December 31,
-2022		316
-2023		331
-2024		337
-2025		354
-2026		372
-thereafter		869
Total undiscounted lease payments		2,726
Less: imputed interest		(560	)
Total operating lease liabilities as of June 30, 2021	$	2,166
Including:
Operating lease liabilities		187
Operating lease liabilities-Non current		1,979
	$	2,166

Operating lease expenses:

	Six Months Ended June 30,				Three Months Ended June 30,
	2021		2020		2021		2020
	US$(’000)		US$(’000)		US$(’000)		US$(’000)
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Long-term operating lease contracts		124		5		87		2
Short-term operating lease contracts		30		79		15		35
Total	$	154	$	84	$	102	$	37

Supplemental information related to operating leases:

	Six Months Ended June 30, 2021
	(Unaudited)
Operating cash flows used for operating leases (US$’000)		63
Right-of-use assets obtained in exchange for new lease liabilities (US$’000)		2,179
Weighted-average remaining lease term (years)		7.63
Weighted-average discount rate		6	%