Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2024

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 September 30, 2024 and for the nine and three months ended September 30, 2024 and 2023 have been prepared pursuant to the rules and regulations of the U.S. 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, 2023, previously filed with the SEC (the “2023 Form 10-K”) on June 28, 2024.

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 September 30, 2024, its condensed consolidated results of operations for the nine and three months ended September 30, 2024 and 2023, and its condensed consolidated cash flows for the nine months ended September 30, 2024 and 2023, 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 Reminbi, the legal currency of mainland China (“RMB”) into US$ for the purposes of preparing the condensed consolidated financial statements are as follows :

	September 30, 2024		December 31, 2023
Balance sheet items, except for equity accounts		7.0074		7.0827

	Nine Months Ended September 30,
	2024		2023
Items in the statements of operations and comprehensive loss		7.1092		7.0148

	Three Months Ended September 30,
	2024		2023
Items in the statements of operations and comprehensive loss		7.1169		7.1649

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 nine and three months ended September 30, 2024 and 2023, respectively:

	Nine Months Ended September 30,					Three Months Ended September 30,
	2024		2023			2024		2023
	US$(’000)		US$(’000)			US$(’000)		US$(’000)
	(Unaudited)		(Unaudited)			(Unaudited)		(Unaudited)
Credit loss for accounts receivable:
Balance as of beginning of the period		3,987		3,760			4,657		3,715
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		800		252			106		212
Written off during the period		-		-			-		-
Exchange translation adjustments		52		(105	)		76		16
Balance as of end of the period		4,839		3,943			4,839		3,943

	Nine Months Ended September 30,					Three Months Ended September 30,
	2024			2023		2024		2023
	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		1,559			617		1,512		1,187
Cumulative-effect adjustment upon adoption of ASU No. 2016-13, Financial Instruments-Credit losses (Topic 326)		-			155		-		-
Provision for/(reverse of) credit loss during the period		(35	)		1,095		12		680
Written off during the period		-			-		-		-
Exchange translation adjustments		-			-		-		-
Balance as of end of the period		1,524			1,867		1,524		1,867

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 September 30, 2024 and December 31, 2023 are as follows:

			Fair value measurement at reporting date using
	As of September 30, 2024		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)		-		-		-		-

			Fair value measurement at reporting date using
	As of December 31, 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)
Warrant liabilities (Note 14)		-		-		-		-

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-4 (the “Reverse Stock Split”). The Reverse Stock Split became effective on September 30, 2024 (the “Effective Date”). As a result, the number of shares of the Company’s authorized Common Stock was reduced from 50,000,000 shares to 12,500,000 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 four 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, 8,704,506 shares of Common Stock that were issued and outstanding at September 30, 2024 was reduced to 2,176,213 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 table present the Company’s revenues disaggregated by products and services and timing of revenue recognition:

	Nine Months Ended September 30,				Three Months Ended September 30,
	2024		2023		2024		2023
	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		12,440		24,815		3,239		9,011
--online advertising placements		-		427		-		145
Blockchain-based SaaS services		750		75		-		25
Total revenues	$	13,190	$	25,317	$	3,239	$	9,181

	Nine Months Ended September 30,				Three Months Ended September 30,
	2024		2023		2024		2023
	US$(’000)		US$(’000)		US$(’000)		US$(’000)
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Revenue recognized over time		12,440		25,242		3,239		9,156
Revenue recognized at a point in time		750		75		-		25
Total revenues	$	13,190	$	25,317	$	3,239	$	9,181

Contract balances

The table below summarized the movement of the Company’s contract liabilities for the nine months ended September 30, 2024:

	Contract liabilities
	US$(’000)
Balance as of January 1, 2024		843
Exchange translation adjustment		9
Revenue recognized from beginning contract liability balances		(469	)
Advances received from customers related to unsatisfied performance obligations		317
Balance as of September 30, 2024(Unaudited)		700

Advance from customers related to unsatisfied performance obligations are generally refundable. Refund of advance from customers were insignificant for the nine and three months ended September 30, 2024 and 2023.

For the nine and three months ended September 30, 2024 and 2023, there were no revenue recognized from performance obligations that were satisfied in prior periods.

Business Combinations Policy [Policy Text Block]

i) Business combination

We account for our business combinations using the acquisition method in accordance with ASC Topic 805, Business Combinations. The acquisition method requires that the consideration transferred to be allocated to the assets, including separately identifiable assets and liabilities we acquired, based on their estimated fair values. The consideration transferred in an acquisition is measured as the aggregate of the fair values at the date of exchange of the assets given, liabilities incurred, and equity instruments issued as well as the contingent considerations as of the acquisition date. The costs directly attributable to the acquisition are expensed as incurred. Identifiable assets, liabilities and contingent liabilities acquired or assumed are measured separately at their fair value as of the acquisition date, irrespective of the extent of any noncontrolling interests. The excess of (i) the total of cost of acquisition, fair value of the noncontrolling interests and acquisition date fair value of any previously held equity interests in the acquiree over (ii) the fair value of the identifiable net assets of the acquiree, is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in earnings.

Acquisition of Yi En (Beijing) Technology Co., Ltd.

The Company acquired a 51% equity interest in Yi En (Beijing) Technology Co., Ltd. (“Beijing Yi En”) for a cash consideration of RMB1. During the three months ended September 30, 2024, the Company sold its equity interest in Beijing Yi for a cash consideration of RMB1.

Lessee, Leases [Policy Text Block]

j) Lease

As of September 30, 2024, there were no operating lease right-of-use assets and total operating lease liabilities recognized.

Operating lease expenses:

	Nine Months Ended September 30,				Three Months Ended September 30,
	2024		2023		2024		2023
	US$(’000)		US$(’000)		US$(’000)		US$(’000)
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Long-term operating lease contracts		22		386		-		125
Short-term operating lease contracts		34		23		4		9
Total	$	56	$	409	$	4	$	134

Supplemental information related to operating leases:

	Nine Months Ended September 30,
	2024		2023
	US$(’000)		US$(’000)
	(Unaudited)		(Unaudited)
Operating cash flows used for operating leases (US$’000)		25		409
Weighted-average remaining lease term (years)		-		5.42
Weighted-average discount rate		-		6	%