XML 32 R23.htm IDEA: XBRL DOCUMENT

Note 15 - Warrant Liabilities

6 Months Ended

Jun. 30, 2022

15.

Warrant liabilities

The Company issued warrants to certain institutional investors and the Company’s placement agent in the registered direct offerings consummated in February 2021 (the “2021 Financing”), December 2020 (the “2020 Financing”), and January 2018 (the “2018 Financing”), which warrants were accounted for as derivative liabilities and measured at fair value with changes in fair value be recorded in earnings in each reporting period.

Warrants issued in the 2021 Financing:

	2021 Investors Warrants									2021 Placement Agent Warrants
	June 30, 2022			March 31, 2022			December 31, 2021			June 30, 2022			March 31, 2022			December 31, 2021

Stock price	$	0.34		$	0.73		$	1.00		$	0.34		$	0.73		$	1.00
Years to maturity		2.13			2.38			2.63			2.13			2.38			2.63
Risk-free interest rate		2.97	%		2.35	%		0.87	%		2.97	%		2.35	%		0.87	%
Dividend yield		-			-			-			-			-			-
Expected volatility		124	%		121	%		115	%		124	%		121	%		115	%
Exercise Price	$	3.59		$	3.59		$	3.59		$	4.4875		$	4.4875		$	4.4875

Fair value of the warrant	$	0.064		$	0.24		$	0.37		$	0.061		$	0.23		$	0.36

Warrant Liabilities (US$’000)	$	167		$	626		$	964		$	22		$	84		$	132

	2021 Investors Warrants									2021 Placement Agent Warrants
	June 30, 2021			March 31, 2021			February 18, 2021*			June 30, 2021			March 31, 2021			February 18, 2021*

Stock price	$	2.00		$	2.64		$	4.48		$	2.00		$	2.64		$	4.48
Years to maturity		3.14			3.38			3.50			3.14			3.38			3.50
Risk-free interest rate		0.48	%		0.41	%		0.26	%		0.48	%		0.41	%		0.26	%
Dividend yield		-			-			-			-			-			-
Expected volatility		114	%		168	%		168	%		114	%		168	%		168	%
Exercise Price	$	3.59		$	3.59		$	3.59		$	4.4875		$	4.4875		$	4.4875

Fair value of the warrant	$	1.25		$	2.28		$	4.02		$	1.18		$	2.24		$	3.96

Warrant Liabilities (US$’000)	$	3,257		$	5,942		$	10,476		$	431		$	817		$	1,445

* Closing date of the 2021 Financing.

Warrants issued in the 2020 Financing:

	2020 Investors Warrants									2020 Placement Agent Warrants
	June 30, 2022			March 31, 2022			December 31, 2021			June 30, 2022			March 31, 2022			December 31, 2021

Stock price	$	0.34		$	0.73		$	1.00		$	0.34		$	0.73		$	1.00
Years to maturity		1.45			1.70			1.95			1.45			1.70			1.95
Risk-free interest rate		2.79	%		2.23	%		0.72	%		2.79	%		2.23	%		0.72	%
Dividend yield		-			-			-			-			-			-
Expected volatility		107	%		127	%		128	%		107	%		127	%		128	%
Exercise Price	$	2.03		$	2.03		$	2.03		$	2.03		$	2.03		$	2.03

Fair value of the warrant	$	0.033		$	0.26		$	0.46		$	0.036		$	0.28		$	0.49

Warrant Liabilities (US$’000)	$	57		$	449		$	795		$	11		$	85		$	148

2020 Investors Warrants

2020 Placement Agent Warrants

June 30,

2021

March 31,

2021

December 31,

2020

June 30,

2021

March 31,

2021

December 31,

2020

Stock price
$ 2.00 $ 2.64 $ 1.35 $ 2.00 $ 2.64 $ 1.35

Years to maturity
2.45 2.70 2.95 2.45 2.70 2.95

Risk-free interest rate
0.34 % 0.29 % 0.17 % 0.34 % 0.29 % 0.17 %

Dividend yield
- - - - - -

Expected volatility
120 % 120 % 102 % 120 % 120 % 102 %

Exercise Price
$ 2.03 $ 2.03 $ 2.03 $ 2.03 $ 2.03 $ 2.03

Fair value of the warrant
$ 1.40 $ 1.95 $ 0.74 $ 1.40 $ 1.95 $ 0.74

Warrant Liabilities (US$’000)
$ 2,420 $ 3,370 $ 1,279 $ 423 $ 590 $ 224

Warrants issued in the 2018 Financing:

2018 Placement Agent Warrants

June 30, 2021

March 31, 2021

December 31, 2020

Stock price
$ 2.00 $ 2.64 $ 1.35

Years to maturity
0.05 0.30 0.05

Risk-free interest rate
0.04 % 0.03 % 0.08 %

Dividend yield
- - -

Expected volatility
74 % 206 % 59 %

Exercise Price
$ 1.4927 $ 1.4927 $ 1.4927

Fair value of the warrant
$ 0.51 $ 1.55 $ 0.02

Warrant liabilities (US$’000)
$ 66 $ 200 $ 2

* The investor warrants issued in the 2018 Financing expired in July 2020. The placement agent warrants issued in the 2018 Financing were cashless exercised in July 2021.

Changes in fair value of warrant liabilities

Six and Three Months Ended June 30, 2022 (Unaudited)

As of

June 30, 2022

As of

March 31, 2022

As of

December 31, 2021

Change in Fair Value

(gain)/loss

Six Months Ended

June 30, 2022

Three Months Ended

June 30, 2022

(US$’000)

(US$’000)

(US$’000)

(US$’000)

(US$’000)

Warrants issued in the 2021 Financing:

--Investor Warrants
167 626 964 (797 ) (459 )

--Placement Agent Warrants
22 84 132 (110 ) (62 )

Warrants issued in the 2020 Financing:

--Investor Warrants
57 449 795 (738 ) (392 )

--Placement Agent Warrants
11 85 148 (137 ) (74 )

Warrant Liabilities
257 1,244 2,039 (1,782 ) (987 )

Six and Three Months Ended June 30, 2021 (Unaudited)

Change in Fair Value

(gain)/loss

As of

June 31, 2021

As of

March 31, 2021

As of

February 18, 2021

As of
December 31, 2020
Six Months Ended

June 30, 2021

Three Months Ended

June 30, 2021

(US$’000)

(US$’000)

(US$’000)

(US$’000)

(US$’000)
(US$’000)

Warrants issued in the 2021 Financing:

--Investor Warrants
3,257 5,942 10,476 * (7,219 ) (2,685 )

--Placement Agent Warrants
431 817 1,445 * (1,014 ) (386 )

Warrants issued in the 2020 Financing:

--Investor Warrants
2,420 3,370 * 1,279 1,141 (950 )

--Placement Agent Warrants
423 590 * 224 199 (167 )

Warrants issued in the 2018 Financing:

--Placement Agent Warrants 66 200 * 2 64 (134 )

6,597 10,919 11,921 1,505 (6,829 ) (4,322 )

* Not applicable.

Warrants issued and outstanding as of June 30, 2022 and their movements during the six months then ended are as follows:

Warrant Outstanding

Warrant 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, 2022
5,001,705 2.36 $ 3.02 5,001,705 2.36 $ 3.02

Granted/Vested
- -

Exercised
- -

Balance, June 30, 2022 (Unaudited)
5,001,705 1.86 $ 3.02 5,001,705 1.86 $ 3.02