Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2025

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

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 March 31, 2025 and for the three months ended March 31, 2025 and 2024 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, 2024, previously filed with the SEC (the “2024 Form 10-K”) on April 15, 2025.

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 March 31, 2025, its condensed consolidated results of operations for the three months ended March 31, 2025 and 2024, and its condensed consolidated cash flows for the three months ended March 31, 2025 and 2024, 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]

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]

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]

The exchange rates used to translate amounts in RMB into US$ for the purposes of preparing the condensed consolidated financial statements are as follows:

	March 31, 2025		December 31, 2024
Balance sheet items, except for equity accounts		7.1782		7.1884

	Three Months Ended March 31,
	2025		2024
Items in the statements of operations and comprehensive loss		7.1759		7.1217

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]

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 three months ended March 31, 2025 and 2024, respectively:

	Three Months Ended March 31,
	2025		2024
	US$(’000)		US$(’000)
	(Unaudited)		(Unaudited)
Credit loss for accounts receivable:
Balance as of beginning of the period		4,817		3,987
Provision for/(reverse of) credit loss during the period		11		280
Written off during the period		-		-
Exchange translation adjustments		6		(6	)
Balance as of end of the period		4,834		4,261

	Three Months Ended March 31,
	2025		2024
	US$(’000)		US$(’000)
	(Unaudited)		(Unaudited)
Credit loss for other current assets:
Balance as of beginning of the period		1,513		1,559
Provision for credit loss during the period		376		21
Written off during the period		-		-
Exchange translation adjustments		-		-
Balance as of end of the period		1,889		1,580

Stockholders' Equity, Policy [Policy Text Block]

In 2024, 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 2,301,205 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 consolidated financial statements and notes to the 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]

The following table present the Company’s revenues disaggregated by products and services and timing of revenue recognition:

	Three Months Ended March 31,
	2025		2024
	US$(’000)		US$(’000)
	(Unaudited)		(Unaudited)
Internet advertising and related services
--distribution of the right to use search engine marketing service		49		3,531
-- Internet advertising and related data service		970		-
Blockchain-based SaaS services		615		-
IP Services		18		-
Total revenues	$	1,652	$	3,531

	Three Months Ended March 31,
	2025		2024
	US$(’000)		US$(’000)
	(Unaudited)		(Unaudited)
Revenue recognized over time		67		3,531
Revenue recognized at a point in time		1,585		-
Total revenues	$	1,652	$	3,531

Contract balances

The table below summarized the movement of the Company’s contract liabilities for the three months ended March 31, 2025:

	Contract liabilities
	US$(’000)
Balance as of January 1, 2025		489
Exchange translation adjustment		1
Revenue recognized from beginning contract liability balances		(38	)
Advances received from customers related to unsatisfied performance obligations		-
Balance as of March 31, 2025(Unaudited)		452

Advance from customers related to unsatisfied performance obligations are generally refundable. Refund of advance from customers were insignificant for the three months ended March 31, 2025 and 2024.

For the three months ended March 31, 2025 and 2024, there were no revenue recognized from performance obligations that were satisfied in prior periods.

Business Combination [Policy Text Block]

h) Asset acquisition of Rahula Group

Acquisitions that do not meet the definition of a business under ASC 805 are accounted for as an asset acquisition, utilizing a cost accumulation model. Assets acquired and liabilities assumed are recognized at cost, which is the consideration the acquirer transfers to the seller, including direct transaction costs, on the acquisition date. The cost of the acquisition is then allocated to the assets acquired based on their relative fair values. Goodwill is not recognized in an asset acquisition. Direct transaction costs include those third-party costs that can be directly attributable to the asset acquisition and would not have been incurred absent the acquisition transaction.

Acquisition of Rahula Digital Media (HK) Limited.

On March 7, 2025, ChinaNet Investment Holding Limited (the “Purchaser”), a British Virgin Islands company and an indirect wholly-owned subsidiary of ZW Data Action Technologies Inc. acquired the 10,000 shares of Rahula Digital Media (HK) Limited, a Hong Kong company (the "Rahula") that Vickie Chan, an individual (the “Seller”) owned, pursuant to that certain Share Sale and Purchase Agreement, dated March 3, 2025, entered into by and between the Purchaser and the Seller for a total consideration of US$0.6 million. Rahula owns 100% equity interest in Shenzhen Shangye Business Consulting Services Co., Ltd., a People’s Republic of China company (together as “Rahula Group”). Rahula Group is principally engaged in the development and monetization of intellectual property rights on agent management, marketing data management, targeted marketing and mass marketing systems and technologies.

The Company determined this transaction represented an asset acquisition as substantially all of the value was in the intellectual property intangible assets of Rahula Group.

The acquisition method of accounting includes the establishment of a net deferred tax asset or liability resulting from book tax basis differences related to assets acquired and liabilities assumed on the date of acquisition. When an acquisition of a group of assets is purchased in a transaction that is not accounted for as a business combination under ASC 805, “Business Combinations”, a difference between the book and tax bases of the assets arises. ASC 740, “Income Taxes,” requires the use of simultaneous equations to determine the assigned value of the asset and the related deferred tax asset or liability. As goodwill is not recognized in an asset acquisition, recognizing deferred tax assets or liabilities for temporary differences in an asset acquisition results in adjusting the carrying amount of the acquired assets and liabilities.

On March 7, 2025, upon the Purchaser’s acquisition of the outstanding common stock of Rahula, the Rahula intangible asset balance recorded on the acquisition date and included in intangible assets was as follows:

	As of March 7, 2025
	US$(’000)
	(Unaudited)
Rahula Group intangible asset recorded on acquisition date:
Intangible asset acquired (a)		707
Deferred tax liability generated from the Rahula asset		(107	)
Total consideration paid		600

(a) This intangible asset balance will be amortized over the remaining useful life of 3 years as of the March 7, 2025 acquisition date.

Lessee, Leases [Policy Text Block]

As of March 31, 2025, operating lease right-of-use assets and total operating lease liabilities recognized was approximately US$0.08 million and US$0.05 million, respectively.

Maturity of operating lease liabilities

	Operating leases
	US$(’000)
	(Unaudited)
Nine months ending December 31, 2025		38
Year ending December 31,
-2026		51
Total undiscounted lease payments		89
Less: imputed interest		(5	)
Total operating lease liabilities as of March 31, 2025		84
Including:
Operating lease liabilities		47
Operating lease liabilities-Non current		37
		84

Operating lease expenses:

	Three Months Ended March 31,
	2025		2024
	US$(’000)		US$(’000)
	(Unaudited)		(Unaudited)
Long-term operating lease contracts		12		22
Short-term operating lease contracts		1		12
Total	$	13	$	34

Supplemental information related to operating leases:

	Three Months Ended March 31,
	2025			2024
	US$(’000)			US$(’000)
	(Unaudited)			(Unaudited)
Operating cash flows used for operating leases (US$’000)		11			25
Right-of-use assets obtained in exchange for new lease liabilities (US$’000)		87			-
Weighted-average remaining lease term (years)		0.75			-
Weighted-average discount rate		6	%		-