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Note 14 - The Financing and Warrant Liabilities

6 Months Ended

Jun. 30, 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 Investors Warrants									2021 Placement Agent Warrants
	June 30, 2024			March 31, 2024			December 31, 2023			June 30, 2024			March 31, 2024			December 31, 2023

Stock price	$	0.76		$	1.02		$	0.83		$	0.76		$	1.02		$	0.83
Years to maturity		0.1			0.4			0.6			0.1			0.4			0.6
Risk-free interest rate		5.47	%		5.39	%		5.13	%		5.47	%		5.39	%		5.13	%
Dividend yield		-			-			-			-			-			-
Expected volatility		75	%		111	%		82	%		75	%		111	%		82	%
Exercise Price	$	17.95		$	17.95		$	17.95		$	22.4375		$	22.4375		$	22.4375

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

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

	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

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)	$	-		$	25		$	76		$	-		$	5		$	14

# 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, 2024 (Unaudited)

Change in Fair Value

(gain)/loss

As of

June 30, 2024

As of

March 31, 2024

As of
December 31, 2023

Six Months Ended

June 30, 2024

Three Months Ended

June 30, 2024

(US$’000)

Warrants issued in the 2021 Financing:

--Investor Warrants

--Placement Agent Warrants

Warrants issued in the 2020 Financing:

--Investor Warrants

--Placement Agent Warrants

Warrant Liabilities

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

							Change in Fair Value (gain)/loss
		As of June 30, 2023		As of March 31, 2023		As of December 31, 2022	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	)

Warrants issued and outstanding as of June 30, 2024 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, 2024		594,168		0.63	$	18.50		594,168		0.63	$	18.50
Granted/Vested		-						-
Exercised		-						-
Balance, June 30, 2024 (Unaudited)		594,168		0.13	$	18.50		1,000,343		0.13	$	18.50