Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2023

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, 2023 and for the six and three months ended June 30, 2023 and 2022 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, 2022, previously filed with the SEC (the “2022 Form 10-K”) on April 17, 2023.

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, 2023, its condensed consolidated results of operations for the six and three months ended June 30, 2023 and 2022, and its condensed consolidated cash flows for the six months ended June 30, 2023 and 2022, 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, 2023		December 31, 2022
Balance sheet items, except for equity accounts		7.2258		6.9646
	Six Months Ended June 30,
	2023		2022
Items in the statements of operations and comprehensive loss		6.9291		6.4835
	Three Months Ended June 30,
	2023		2022
Items in the statements of operations and comprehensive loss		6.9806		6.6144

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

Credit Loss, Financial Instrument [Policy Text Block]

e) Current expected credit losses

In  June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. The amendments in this ASU require the measurement and recognition of expected credit losses for financial assets held at amortized cost, which replace the existing incurred loss impairment model with an expected loss methodology. The Company, as a SEC smaller reporting company, has adopted the amendments in this ASU from  January 1, 2023, using a modified retrospective transition method and did not restate the related accounts in the comparable period. Instead, the Company recognized a cumulative-effect adjustment to increase the opening balance of its accumulated deficit on January 1, 2023 by US$0.19 million, of which US$0.04 million was related to the cumulative-effect adjustment to allowance for credit loss of accounts receivable, and the remaining US$0.15 million was related to the cumulative-effect adjustment to allowance for credit loss of other current assets, which primarily consisted of short-term loans the Company provided to unrelated parties.

The allowance for credit losses reflects the Company's current estimate of credit losses expected to be incurred over the life of the related financial assets. The allowance for credit losses is presented as a valuation account that is deducted from the amortized cost basis of financial asset(s) to present the net amount expected to be collected on the financial asset(s).

The Company considers various factors in establishing, monitoring, and adjusting its allowance for credit losses, including the aging and aging trends, customer/other parties’ creditworthiness and specific exposures related to particular customers/other parties. The Company also monitors other risk factors and forward-looking information, such as country specific risks and economic factors that may affect a customer/other party’s ability to pay in establishing and adjusting its allowance for credit losses. The Company assesses collectability by reviewing the financial assets on a collective basis where similar characteristics exist and on an individual basis when the Company identifies specific customers/other parties with known disputes or collectability issues. Accounts receivable and short-term loans to unrelated parties are written off after all collection efforts have ceased.

The following tables summarized the movements of the Company’s credit losses for the six and three months ended June 30, 2023 and 2022, respectively:

	Six Months Ended June 30,						Three Months Ended June 30,
	2023			2022			2023			2022
	US$(’000)			US$(’000)			US$(’000)			US$(’000)
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Credit loss for accounts receivable:
Balance as of beginning of the period		3,760			2,236			4,070			2,245
Cumulative-effect adjustment upon adoption of ASU No. 2016-13, Financial Instruments-Credit losses (Topic 326)		36			-			-			-
Provision for/(reverse of) credit loss during the period		40			330			(183	)		330
Written off during the period		-			-			-			-
Exchange translation adjustments		(121	)		(112	)		(172	)		(121	)
Balance as of end of the period		3,715			2,454			3,715			2,454

	Six Months Ended June 30,				Three Months Ended June 30,
	2023		2022		2023		2022
	US$(’000)		US$(’000)		US$(’000)		US$(’000)
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Credit loss for other current assets:
Balance as of beginning of the period		617		-		850		-
Cumulative-effect adjustment upon adoption of ASU No. 2016-13, Financial Instruments-Credit losses (Topic 326)		155		-		-		-
Provision for credit loss during the period		415		617		337		617
Written off during the period		-		-		-		-
Exchange translation adjustments		-		-		-		-
Balance as of end of the period		1,187		617		1,187		617

Fair Value Measurement, Policy [Policy Text Block]

f) Fair value measurement

Liabilities measured at fair value on a recurring basis by level within the fair value hierarchy as of June 30, 2023 and December 31, 2022 are as follows:

			Fair value measurement at reporting date using
	As of June 30, 2023		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 14)		13		-		-		13
			Fair value measurement at reporting date using
	As of December 31, 2022		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 14)		185		-		-		185

Stockholders' Equity, Policy [Policy Text Block]

g) Reverse stock split

The Board of Directors of the Company approved a reverse stock split of the Company’s issued and outstanding shares of common stock, par value $0.001 per share (the “Common Stock”) at a ratio of 1-for-5 (the “Reverse Stock Split”). The Reverse Stock Split became effective on January 18, 2023 (the “Effective Date”). As a result, the number of shares of the Company’s authorized Common Stock was reduced from 100,000,000 shares to 20,000,000 shares and the issued and outstanding number of shares of the Common Stock was correspondingly decreased. The Reverse Stock Split has no effect on the par value of the Company’s Common Stock or authorized shares of preferred stock.

When the Reverse Stock Split became effective, each five shares of issued and outstanding Common Stock were converted into one newly issued and outstanding share of Common Stock. No fractional shares were issued in connection with the Reverse Stock Split. Any fractional shares of Common Stock that would have otherwise resulted from the Reverse Stock Split were rounded up to the nearest full share. No cash or other consideration was paid in connection with any fractional shares that would otherwise have resulted from the Reverse Stock Split.

As a result of the Reverse Stock Split, 35,827,677 shares of Common Stock that were issued and outstanding at January 18, 2023 was reduced to 7,174,506 shares of Common Stock (taking into account the rounding of fractional shares).

Except where otherwise specified, all number of shares, number of warrants, share prices, exercise prices and per share data in the condensed consolidated financial statements and notes to the condensed consolidated financial statements have been retroactively restated as if the Reverse Stock Split occurred at the beginning of the periods presented.

Revenue from Contract with Customer [Policy Text Block]

h) 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,
	2023		2022		2023		2022
	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		15,804		12,369		9,643		5,775
--online advertising placements		282		2,228		152		1,170
Blockchain-based SaaS services		50		-		25		-
Total revenues	$	16,136	$	14,597	$	9,820	$	6,945

	Six Months Ended June 30,				Three Months Ended June 30,
	2023		2022		2023		2022
	US$(’000)		US$(’000)		US$(’000)		US$(’000)
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Revenue recognized over time		16,086		14,597		9,795		6,945
Revenue recognized at a point in time		50		-		25		-
Total revenues	$	16,136	$	14,597	$	9,820	$	6,945

Contract balances

The table below summarized the movement of the Company’s contract liabilities for the six months ended June 30, 2023:

	Contract liabilities
	US$(’000)
Balance as of January 1, 2023		739
Exchange translation adjustment		(21	)
Revenue recognized from beginning contract liability balances		(615	)
Advances received from customers related to unsatisfied performance obligations		809
Balance as of June 30, 2023 (Unaudited)		912

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, 2023 and 2022.

For the six and three months ended June 30, 2023 and 2022, there were no revenue recognized from performance obligations that were satisfied in prior periods.

Lessee, Leases [Policy Text Block]

i) Lease

As of June 30, 2023, operating lease right-of-use assets and total operating lease liabilities recognized was approximately US$1.50 million and US$1.63 million, respectively.

Maturity of operating lease liabilities

	Operating leases
	US$(’000)
	(Unaudited)
Six months ending December 31, 2023		193
Year ending December 31,
-2024		301
-2025		317
-2026		332
-2027		349
-2028		366
-thereafter		62
Total undiscounted lease payments		1,920
Less: imputed interest		(294	)
Total operating lease liabilities as of June 30, 2023		1,626
Including:
Operating lease liabilities		255
Operating lease liabilities-Non current		1,371
		1,626

Operating lease expenses:

	Six Months Ended June 30,				Three Months Ended June 30,
	2023		2022		2023		2022
	US$(’000)		US$(’000)		US$(’000)		US$(’000)
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Long-term operating lease contracts		261		193		128		103
Short-term operating lease contracts		14		29		8		14
Total	$	275	$	222	$	136	$	117

Supplemental information related to operating leases:

	Six Months Ended June 30,
	2023			2022
	US$(’000)			US$(’000)
	(Unaudited)			(Unaudited)
Operating cash flows used for operating leases (US$’000)		264			178
Right-of-use assets obtained in exchange for new lease liabilities (US$’000)		-			259
Weighted-average remaining lease term (years)		5.51			6.06
Weighted-average discount rate		6	%		6	%