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Note 14 - Warrant Liabilities

6 Months Ended

Jun. 30, 2023

14.

Warrant liabilities

The Company issued common stock purchase warrants to certain institutional investors and the Company’s placement agent in the registered direct offerings consummated in February 2021 (the “2021 Financing”) and December 2020 (the “2020 Financing”). Warrants issued to the investors and placement agent in the 2021 Financing were referred to as the “2021 Investors Warrants” and the “2021 Placement Agent Warrants”, respectively. Warrants issued to the investors and placement agent in the 2020 Financing were referred to as the “2020 Investors Warrants” and the “2020 Placement Agent Warrants”, respectively. The warrants issued in the 2021 Financing and the 2020 Financing were referred to collectively as the “Warrants”. The Company accounted for the Warrants 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, 2023			March 31, 2023			December 31, 2022			June 30, 2023			March 31, 2023			December 31, 2022

Stock price	$	1.27		$	1.70		$	0.46#		$	1.27		$	1.70		$	0.46#
Years to maturity		1.13			1.38			1.63			1.13			1.38			1.63
Risk-free interest rate		5.34	%		4.44	%		4.625	%		5.34	%		4.44	%		4.625	%
Dividend yield		-			-			-			-			-			-
Expected volatility		112	%		113	%		99.74	%		112	%		113	%		99.74	%
Exercise Price	$	17.95		$	17.95		$	3.59#		$	22.4375		$	22.4375		$	4.4875#

Fair value of the warrant	$	0.0232		$	0.0937		$	0.0329		$	0.0157		$	0.0727		$	0.0256

Warrant Liabilities (US$’000)	$	12		$	49		$	86		$	1		$	5		$	9

	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

Warrants issued in the 2020 Financing:

	2020 Investors Warrants									2020 Placement Agent Warrants
	June 30, 2023			March 31, 2023			December 31, 2022			June 30, 2023			March 31, 2023			December 31, 2022

Stock price	$	1.27		$	1.70		$	0.46#		$	1.27		$	1.70		$	0.46#
Years to maturity		0.45			0.70			0.95			0.45			0.70			0.95
Risk-free interest rate		5.46	%		4.80	%		4.716	%		5.46	%		4.80	%		4.716	%
Dividend yield		-			-			-			-			-			-
Expected volatility		94	%		125	%		115.61	%		94	%		125	%		115.61	%
Exercise Price	$	10.15		$	10.15		$	2.03#		$	10.15		$	10.15		$	2.03#

Fair value of the warrant	$	0.000		$	0.0731		$	0.0439		$	0.000		$	0.0760		$	0.0456

Warrant Liabilities (US$’000)	$	0		$	25		$	76		$	0		$	5		$	14

	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

# To reflect the actual inputs used for the determination of fair value of the Warrants, the stock prices and exercise prices presented were not retrospectively restated for effect of the 1-for-5 reverse stock split effective on January 18, 2023, see Note 4(g).

Changes in fair value of warrant liabilities

Six and Three Months Ended June 30, 2023 (Unaudited)

	As of June 30, 2023		As of March 31, 2023		As of December 31, 2022		Change in Fair Value (gain)/loss
							Six Months Ended June 30, 2023			Three Months Ended June 30, 2023
	(US$’000)		(US$’000)		(US$’000)		(US$’000)			(US$’000)

Warrants issued in the 2021 Financing:
--Investor Warrants		12		49		86		(74	)		(37	)
--Placement Agent Warrants		1		5		9		(8	)		(4	)
Warrants issued in the 2020 Financing:
--Investor Warrants		-		25		76		(76	)		(25	)
--Placement Agent Warrants		-		5		14		(14	)		(5	)
Warrant Liabilities		13		84		185		(172	)		(71	)

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	)

Warrants issued and outstanding as of June 30, 2023 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, 2023		1,000,343		1.36	$	15.11		1,001,343		1.36	$	15.11
Granted/Vested		-						-
Exercised		-						-
Balance, June 30, 2023 (Unaudited)		1,000,343		0.86	$	15.11		1,000,343		0.86	$	15.11