13.	CAPITAL MANAGEMENT

Fair Values

For financial reporting purposes, fair value measurements are categorized into Level 1, 2 or 3 based on the degree to which inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

Level 1:

quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2:

valuation techniques for which the lowest level of inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly

Level 3:

valuation techniques for which the lowest level of inputs that have a significant effect on the recorded fair value are not based on observable market data.

The table below sets out the Group’s classification of each class of financial assets/liabilities, their fair values and under which valuation method they are valued:

	Level 1			Level 2			Total carrying amount			Fair Value
	US$’000			US$’000			US$’000			US$’000
June 30, 2022
Loans and receivables at amortised cost
Trade receivables		12,793			-			12,793			12,793
Cash and cash equivalents		10,453			-			10,453			10,453
Finance lease receivable		200			-			200			200

		23,446			-			23,446			23,446

Liabilities at amortised cost
Exchangeable note		-			(210	)		(210	)		(210	)
Senior secured term loan		-			(43,990	)		(43,990	)		(43,990	)
Convertible loan note		-			(13,372	)		(13,372	)		(13,372	)
Lease liabilities		(14,541	)		-			(14,541	)		(14,541	)
Trade and other payables (excluding deferred income)		(11,704	)		-			(11,704	)		(11,704	)
Provisions		(50	)		-			(50	)		(50	)

		(26,295	)		(57,572	)		(83,867	)		(83,867	)

Fair value through profit and loss (FVPL)

Derivative financial asset – early repayment option		-			140			140			140
Derivative financial liability – warrant		-			(2,002	)		(2,002	)		(2,002	)

		-			(1,862	)		(1,862	)		(1,862	)

		(2,849	)		(59,434	)		(62,283	)		(62,283	)

	Level 1			Level 2			Total carrying amount			Fair Value
	US$’000			US$’000			US$’000			US$’000
December 31, 2021
Loans and receivables at amortised cost
Trade receivables		13,290			-			13,290			13,290
Cash and cash equivalents		25,910			-			25,910			25,910
Finance lease receivable		293			-			293			293

		39,493			-			39,493			39,493

Liabilities at amortised cost
Exchangeable note		-			(83,312	)		(83,312	)		(83,312	)
Lease liabilities		(15,845	)		-			(15,845	)		(15,845	)
Trade and other payables (excluding deferred income)		(14,986	)		-			(14,986	)		(14,986	)
Provisions		(50	)		-			(50	)		(50	)

		(30,881	)		(83,312	)		(114,193	)		(114,193	)

		8,612			(83,312	)		(74,700	)		(74,700	)