Note 21 - Share-based Compensation Expenses

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

21. Share-based compensation expenses

In June 2022, the Company granted and issued 0.08 million fully-vested and non-forfeitable shares of the Company restricted common stock to a management consulting and advisory service provider in exchange for its service for a 12-month period until May 2023. The Company valued these shares at US$1.75 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$0.14 million as a prepayment asset in prepayment and deposit to suppliers account upon the grant and issuance of these shares. Total compensation expenses amortized was approximately US$0.04 million for the three months ended March 31, 2023.

In March 2022, under its 2020 Omnibus Securities and Incentive Plan, the Company granted and issued an aggregate of 0.095 million fully-vested shares of the Company’s restricted common stock to two of the Company’s executive officers in exchange for their services to the Company for the year ended December 31, 2022. These shares were valued at the closing bid price of the Company’s common stock on the respective date of grant. Total compensation expenses amortized for the three months ended March 31, 2022 was approximately US$0.02 million.

For the three months ended March 31, 2022, the Company also amortized an approximately US$0.04 million compensation expense, which was related to fully-vested and nonforfeitable restricted common stock granted and issued to one of its service providers in March 2020.

The table below summarized share-based compensation expenses recorded for the three months ended March 31, 2023 and 2022, respectively:

	Three Months Ended March 31,
	2023		2022
	US$(’000)		US$(’000)
	(Unaudited)		(Unaudited)
Sales and marketing expenses		-		-
General and administrative expenses		35		56
Research and development expenses		-		-
Total		35		56

The aggregate unrecognized share-based compensation expenses as of March 31, 2023 was approximately US$0.02 million, which will be recognized for the year ending December 31, 2023.