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Organization and Nature of Operations (Tables)

12 Months Ended

Dec. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of principal subsidiaries and VIEs

The Company’s principal subsidiaries and VIEs as of December 31, 2022 are as follows:


Principal Subsidiaries:	Date of Incorporation	Place of Incorporation	Percentage of direct/indirect economic interest			Principal Activities
Agora Lab, Inc.	January 13, 2014	California, United States		100	%	Provision of services
API Investment Limited (formerly known as Agora IO, Inc)	December 2, 2014	Cayman Islands		100	%	Investment holding
Shengwang Hongkong Limited (formerly known as Agora IO Hongkong Limited)	December 12, 2014	Hong Kong		100	%	Investment holding
Shanghai Dayin Network Technology Co., Ltd. (“Dayin”)	April 30, 2015	PRC		100	%	Provision of services
Shanghai Shengwang Technology Co., Ltd. (“Shengwang”, formerly known as Shanghai Jiyin Network Technology Co., Ltd.)	May 26, 2020	PRC		100	%	Provision of services
Agora.IO Ltd	July 25, 2019	United Kingdom		100	%	Investment holding
Agora IO Singapore PTE. Ltd.	November 4, 2020	Singapore		100	%	Provision of services
Agora Labs India Private Limited	December 29, 2021	India		100	%	Provision of services
Beijing Yizhang Yunfeng Technology Co., Ltd (“Beijing Easemob”)	April 27, 2013	PRC		100	%	Provision of services
VIEs:
Shanghai Zhaoyan Network Technology Co., Ltd. (“Zhaoyan”)	March 28, 2014	PRC		100	%	Provision of services
Beijing Zhonghuan Chuanyin Technology Co., Ltd. (“Zhonghuan”)	April 22, 2020	PRC		100	%	Provision of services

Schedule of financial information of VIEs

The following financial information sets forth the assets, liabilities, results of operations and changes in cash flows of the consolidated VIEs and the VIEs’ subsidiaries as of December 31, 2021 and 2022 and for the years ended December 31, 2020, 2021 and 2022, which was included in the accompanying consolidated financial statements of the Group:


	As of December 31,
	2021		2022
	(US$ thousand)
Assets
Current assets:
Cash and cash equivalents	$	2,786	$	2,135
Short-term investments		7,547		10,359
Accounts receivable, net		24,625		21,739
Amounts due from related parties		10,109		2,338
Prepayments and other current assets		1,259		424
Held-for-sale assets (1)	—			82
Total current assets		46,326		37,077
Non-current assets:
Property and equipment, net		7,639		4,025
Long-term investments		16,919		8,500
Operating lease right-of-use assets		766		442
Intangible assets		231		151
Other non-current assets		312		2,048
Total non-current assets		25,867		15,166
Total assets	$	72,193	$	52,243
Liabilities
Current liabilities:
Accounts payable		3,751		8,129
Amounts due to related parties		44,394		54,210
Advances from customers		1,491		2,348
Taxes payable		241		336
Current operating lease liabilities		459		294
Accrued expenses and other current liabilities		15,721		11,299
Total current liabilities		66,057		76,616
Non-current liabilities:
Long term payable		228		19
Long-term operating lease liabilities		305		134
Deferred tax liabilities		43		32
Total non-current liabilities		576		185
Total liabilities	$	66,633	$	76,801

(1)

Held-for-sale assets was related to Zhonghuan Chuanyin, which was disposed subsequently in connection with the Group’s selling its customer engagement cloud business of Easemob to a third party (Note 15).


	Year Ended December 31
	2020		2021			2022
			(US$ thousand)
Third-party revenues	115,254			114,617			85,686
Inter-company revenues		577	—			—
Net (loss) income		1,247		(5,660	)		(32,039	)


	Year Ended December 31
	2020			2021			2022
				(US$ thousand)
Net cash and cash equivalents generated from operating activities		3,918			15,740			12,478
Net cash and cash equivalents used in investing activities		(18,865	)		(15,316	)		(13,057	)
Cash balance recorded in held-for-sale assets	—			—				(72	)

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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