Note 23 - Share-based Compensation Expenses

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Share-based Payment Arrangement [Text Block]

23. Share-based compensation expenses

In May 2021, 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 the year ended December 31, 2021.

For each of the year ended December 31, 2021 and 2020, the Company granted and issued 0.03 million shares of the Company’s restricted common stock to one of its independent directors, in exchange for his services to the Company. The shares issued for the years ended December 31, 2021 and 2020 were valued at US$3.13 and US$1.11 per share, respectively, the closing bid price of the Company’s common stock on the respective grant date. Total compensation expenses recognized was approximately US$0.09 million and US$0.03 million for the years ended December 31, 2021 and 2020, respectively.

In February 2020, the Company granted and issued in the aggregate of approximately 1.60 million fully-vested shares of the Company’s restricted common stock to its management and employees for their services provided. These shares were valued at the closing bid price of the Company’s common stock on the date of grant, which is US$1.18 per share. Total compensation expenses of approximately US$1.89 million was recorded for the year ended December 31, 2020.

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 until February 2022. 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 years ended December 31, 2021 and 2020 was approximately US$0.24 million and US$0.20 million, respectively.

In August 2020, the Company granted and issued 0.05 million shares of the Company restricted common stock to an information technology consulting and advisory service provider in exchange for its service for a one-year period ended July 2021. 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$1.36 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$0.07 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 years ended December 31, 2021 and 2020 was approximately US$0.04 million and US$0.03 million, respectively.

The table below summarized share-based compensation expenses recorded for the years ended December 31, 2021 and 2020, respectively:

	Year Ended December 31,
	2021		2020
	US$(’000)		US$(’000)
Sales and marketing expenses		-		122
General and administrative expenses		7,028		1,884
Research and development expenses		-		146
Total		7,028		2,152

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

Options issued and outstanding at December 31, 2021 and their movements for the two years 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, 2020		755,216			1.15	$	2.43		755,216			1.15	$	2.43
Granted/Vested		-							-
Exercised		-							-
Expired		(477,240	)			$	2.10		(477,240	)			$	2.10
Balance, December 31, 2020		277,976			0.91	$	3.00		277,976			0.91	$	3.00
Granted/Vested		-							-
Exercised		-							-
Expired		(277,976	)			$	3.00		(277,976	)			$	3.00
Balance, December 31, 2021		-							-