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Note 14 - The Financing and Warrant Liabilities

3 Months Ended

Mar. 31, 2024

14.

The Financing and 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”) and December 2020 (the “2020 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. The warrants issued in the 2020 Financing expired during the year ended December 31, 2023.

Warrants issued in the 2021 Financing:

	2021 Investor Warrants						2021 Placement Agent Warrants
	March 31, 2024			December 31, 2023			March 31, 2024			December 31, 2023

Stock price	$	1.02		$	0.83		$	1.02		$	0.83
Years to maturity		0.4			0.6			0.4			0.6
Risk-free interest rate		5.39	%		5.13	%		5.39	%		5.13	%
Dividend yield		-			-			-			-
Expected volatility		111	%		82	%		111	%		82	%
Exercise Price	$	17.95		$	17.95		$	22.4375		$	22.4375

Fair value of the warrant	$	-		$	-		$	-		$	-

Warrant liabilities (US$’000)	$	-		$	-		$	-		$	-

	2021 Investor Warrants						2021 Placement Agent Warrants
	March 31, 2023			December 31, 2022			March 31, 2023			December 31, 2022

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

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

Warrant liabilities (US$’000)	$	49		$	86		$	5		$	9

# 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

Three Months Ended March 31, 2024 (Unaudited)

As of

March 31, 2024

As of

December 31, 2023

Change in Fair Value

(Gain)/Loss

(US$’000)

Fair value of the Warrants:

Warrants issued in the 2021 Financing：

--Investor Warrants

--Placement Agent Warrants

Warrants issued in the 2020 Financing*:

--Investor Warrants

--Placement Agent Warrants

Warrant liabilities

Three Months Ended March 31, 2023 (Unaudited)

	As of March 31, 2023		As of December 31, 2022		Change in Fair Value (Gain)/Loss
	(US$’000)		(US$’000)		(US$’000)
Fair value of the Warrants:

Warrants issued in the 2021 Financing：
--Investor Warrants		49		86		(37	)
--Placement Agent Warrants		5		9		(4	)
Warrants issued in the 2020 Financing*:
--Investor Warrants		25		76		(51	)
--Placement Agent Warrants		5		14		(9	)
Warrant liabilities		84		185		(101	)

* The investor and placement agent warrants issued in 2020 expired during the year ended December 31, 2023.

Warrants issued and outstanding as of March 31, 2024 and their movements during the three 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, 2024		594,168		0.63	$	18.50		594,168		0.63	$	18.50
Granted/Vested		-						-
Exercised		-						-
Balance, March 31, 2024 (Unaudited)		594,168		0.38	$	18.50		594,168		0.38	$	18.50