Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2021shares | |
Document and Entity Information | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-38833 |
Entity Registrant Name | UP FINTECH HOLDING LIMITED |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 50 Raffles Place |
Entity Address, Address Line Two | #29-04 Singapore Land Tower |
Entity Address, City or Town | Singapore |
Entity Address, Country | SG |
Entity Address, Postal Zip Code | 048623 |
Entity Voluntary Filers | No |
Entity Central Index Key | 0001756699 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Current Fiscal Year End Date | --12-31 |
Entity Well Known Seasoned Issuer | Yes |
Document Period End Date | Dec. 31, 2021 |
Amendment Flag | false |
ICFR Auditor Attestation Flag | true |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | false |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Auditor Firm ID | 1186 |
Auditor Name | KPMG Huazhen LLP |
Auditor Location | Beijing, China |
Business Contact | |
Document and Entity Information | |
Entity Address, Address Line One | 18/F, Grandyvic Building, No. 1 Building |
Entity Address, Address Line Two | No. 16 Taiyanggong Middle Road, Chaoyang District |
Entity Address, City or Town | Beijing |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 100020 |
Country Region | 86 |
City Area Code | 10 |
Local Phone Number | 56216660 |
Contact Personnel Name | John Fei Zeng |
Class A ordinary shares | |
Document and Entity Information | |
Title of 12(b) Security | Class A Ordinary Shares, par valueUS$0.00001 per share |
Trading Symbol | TIGR |
Security Exchange Name | NASDAQ |
Entity Common Stock, Shares Outstanding | 2,250,051,860 |
American Depositary Shares | |
Document and Entity Information | |
Title of 12(b) Security | American Depositary Shares |
Trading Symbol | TIGR |
Security Exchange Name | NASDAQ |
Class B ordinary shares | |
Document and Entity Information | |
Entity Common Stock, Shares Outstanding | 222,111,722 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Assets: | ||
Cash and cash equivalents | $ 269,057,708 | $ 79,652,897 |
Cash-segregated for regulatory purpose | 1,431,827,247 | 867,946,754 |
Term deposits | 3,044,461 | 18,698,143 |
Receivables from customers (net of allowance of US$91,788 and US$518,741 as of December 31, 2020 and 2021) | 664,657,453 | 372,215,645 |
Receivables from brokers, dealers, and clearing organizations (net of allowance of nil as of December 31, 2020 and 2021): | ||
Related parties | 804,639,024 | 764,318,932 |
Others | 75,143,153 | 32,547,428 |
Financial instruments held, at fair value | 3,902,987 | 562,536 |
Prepaid expenses and other current assets | 16,051,623 | 11,214,430 |
Amounts due from related parties | 2,947,871 | 5,065,222 |
Total current assets | 3,271,271,527 | 2,152,221,987 |
Right-of-use assets | 6,613,520 | 7,280,763 |
Property, equipment and intangible assets, net | 14,031,652 | 9,693,034 |
Goodwill | 2,492,668 | 2,421,403 |
Long-term investments | 9,777,844 | 6,480,951 |
Other non-current assets | 4,973,085 | 4,299,246 |
Deferred tax assets | 12,258,360 | 9,919,967 |
Total assets | 3,321,418,656 | 2,192,317,351 |
Liabilities: | ||
Payables to customers | 2,509,492,814 | 1,696,164,267 |
Payables to brokers, dealers and clearing organizations | ||
Related parties | 170,338,199 | 218,574,120 |
Others | 499,978 | 5,135,941 |
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of the consolidated VIEs without recourse to the Group of US$12,345,185 and US$15,611,533 as of December 31, 2020 and 2021, respectively) | 33,746,177 | 27,138,201 |
Deferred income - current | 1,213,647 | 844,558 |
Lease liabilities - current (including lease liabilities - current of the consolidated VIEs without recourse to the Group of US$1,743,537 and US$1,057,862 as of December 31,2020 and 2021, respectively) | 2,610,041 | 3,514,592 |
Amount due to related parties | 2,039,287 | |
Total current liabilities | 2,719,940,143 | 1,951,371,679 |
Convertible bonds | ||
Related party | 25,330,766 | |
Others | 123,510,910 | |
Deferred income – non-current | 1,382,091 | 1,565,843 |
Lease liabilities – non-current (including lease liabilities – non-current of the consolidated VIEs without recourse to the Group of US$1,158,044 and US$6,858 as of December 31, 2020 and 2021, respectively) | 3,092,913 | 3,692,701 |
Deferred tax liabilities | 1,535,965 | 0 |
Total liabilities | 2,874,792,788 | 1,956,630,223 |
Commitments and Contingencies | ||
Shareholders’ equity: | ||
Additional paid-in capital | 484,335,291 | 291,827,379 |
Statutory reserve | 3,562,888 | 2,663,551 |
Accumulated deficit | (45,788,131) | (59,579,495) |
Treasury stock (10,429,305 and 10,429,305 shares as of December 31, 2020 and 2021, respectively) | (2,172,819) | (2,172,819) |
Accumulated other comprehensive income | 6,665,819 | 2,927,192 |
Total UP Fintech Holding Limited shareholder’s equity | 446,625,868 | 235,687,128 |
Total liabilities and equity | 3,321,418,656 | 2,192,317,351 |
Class A ordinary shares | ||
Shareholders’ equity: | ||
Ordinary shares | 20,599 | 17,944 |
Class B ordinary shares | ||
Shareholders’ equity: | ||
Ordinary shares | $ 2,221 | $ 3,376 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Allowance of receivables from customers | $ 518,741 | $ 91,788 |
Allowance of receivables from brokers, dealers, and clearing organizations | 0 | 0 |
Accrued expenses and other current liabilities | 33,746,177 | 27,138,201 |
Lease liabilities, current | 2,610,041 | 3,514,592 |
Lease liabilities, non-current | $ 3,092,913 | $ 3,692,701 |
Treasury Stock, shares | 10,429,305 | 10,429,305 |
Class A ordinary shares | ||
Common stock, par value (in US dollars per share) | $ 0.00001 | |
Common stock, shares authorized (in shares) | 4,662,388,278 | 4,662,388,278 |
Common stock, shares issued (in shares) | 2,059,987,139 | 1,794,357,434 |
Common stock, shares outstanding (in shares) | 2,059,987,139 | 1,794,357,434 |
Class B ordinary shares | ||
Common stock, par value (in US dollars per share) | $ 0.00001 | |
Common stock, shares authorized (in shares) | 337,611,722 | 337,611,722 |
Common stock, shares issued (in shares) | 222,111,722 | 337,611,722 |
Common stock, shares outstanding (in shares) | 222,111,722 | 337,611,722 |
VIEs | ||
Accrued expenses and other current liabilities | $ 15,611,533 | $ 12,345,185 |
Lease liabilities, current | 1,057,862 | 1,743,537 |
Lease liabilities, non-current | $ 6,858 | $ 1,158,044 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | |||
Total revenues | $ 264,488,162 | $ 138,496,690 | $ 58,662,900 |
Interest expense | (18,378,823) | (10,102,290) | (4,101,528) |
Total Net Revenues | 246,109,339 | 128,394,400 | 54,561,372 |
Operating cost and expenses: | |||
Execution and clearing | (31,143,578) | (12,645,113) | (2,519,238) |
Employee compensation and benefits (including share-based compensation of US$4,062,600, US$6,054,612 and US$13,370,377 for the years ended December 31, 2019, 2020 and 2021, respectively) | (87,160,214) | (50,039,073) | (35,787,458) |
Occupancy, depreciation and amortization | (6,134,991) | (4,735,881) | (3,572,260) |
Communication and market data | (22,121,263) | (10,320,505) | (6,494,006) |
Marketing and branding | (59,264,634) | (15,871,777) | (7,103,178) |
General and administrative | (22,705,839) | (13,748,818) | (9,259,484) |
Total operating cost and expenses | (228,530,519) | (107,361,167) | (64,735,624) |
Other income: | |||
Fair value change from convertible bonds | 4,194,848 | ||
Others, net | (2,719,196) | 996,559 | 869,028 |
(Loss) income before income taxes | 19,054,472 | 22,029,792 | (9,305,224) |
Income tax benefit (expense) | (4,363,771) | (2,850,547) | 3,355,366 |
Net (loss) income | 14,690,701 | 19,179,245 | (5,949,858) |
Less: | |||
Net income attributable to redeemable non-controlling interests | 3,114,452 | 639,573 | |
Net (loss) income attributable to ordinary shareholders of UP Fintech Holding Limited | $ 14,690,701 | $ 16,064,793 | $ (6,589,431) |
Net (loss) income per share attributable to ordinary shareholders of UP Fintech Holding Limited: | |||
Basic | $ 0.01 | $ 0.01 | $ 0 |
Diluted | $ 0.01 | $ 0.01 | $ 0 |
Weighted average shares used in calculating net (loss) income per ordinary share: | |||
Basic | 2,205,186,257 | 2,117,904,025 | 1,751,784,176 |
Diluted | 2,335,717,204 | 2,162,232,325 | 1,751,784,176 |
Other comprehensive (loss) income, net of tax: | |||
Unrealized gain on available-for-sale securities (net of tax effect of nil, US$6,284 and nil for the years ended December 31, 2019, 2020 and 2021, respectively) | $ 1,899,605 | $ 41,149 | |
Change in cumulative foreign currency translation adjustment | 1,839,022 | 3,752,464 | $ (321,433) |
Total Comprehensive (loss) income | 18,429,328 | 22,972,858 | (6,271,291) |
Total Comprehensive income attributable to redeemable non-controlling interests | 3,114,452 | 639,573 | |
Total Comprehensive (loss) income attributable to ordinary shareholders of UP Fintech Holding Limited | 18,429,328 | 19,858,406 | (6,910,864) |
Commissions | |||
Revenues: | |||
Revenues | 147,198,648 | 77,628,521 | 26,697,958 |
Financing service fees | |||
Revenues: | |||
Revenues | 9,268,819 | 6,576,622 | 7,926,766 |
Interest income | |||
Revenues: | |||
Revenues | 70,335,156 | 31,754,541 | 16,505,185 |
Other revenues | |||
Revenues: | |||
Revenues | $ 37,685,539 | $ 22,537,006 | $ 7,532,991 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based compensation | $ 13,370,377 | $ 6,054,612 | $ 4,062,600 |
Unrealized gain on available for sale investments, tax | 0 | 6,284 | $ 0 |
Interest expense, related parties | (13,938,263) | (9,316,150) | |
Execution and clearing, related party | (17,510,426) | (7,150,700) | |
Communication and market data, related party | (94,333) | ||
Marketing and branding, related parties | (397,590) | ||
General and administrative, related parties | (700,000) | ||
Fair value change from convertible bonds | 2,860,123 | ||
Commissions | |||
Revenues from related parties | 30,446,244 | 35,559,807 | |
Financing service fees | |||
Revenues from related parties | 9,268,819 | 6,576,622 | |
Interest income | |||
Revenues from related parties | 31,776,764 | 21,966,305 | |
Other revenues | |||
Revenues from related parties | $ 15,556,298 | $ 8,014,524 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIT) - USD ($) | Total | Ordinary sharesClass A ordinary shares | Ordinary sharesClass B ordinary shares | Treasury stock purchases | Preferred sharesAngle preferred shares | Additional paid in capital | Statutory Reserves | Accumulated other comprehensive income (loss) | Accumulated deficit | Non controlling interests | Redeemable non-controlling interest of sponsored fund |
Beginning balance at Dec. 31, 2018 | $ (25,877,957) | $ 2,166 | $ 3,376 | $ 4,197 | $ 42,520,332 | $ (544,988) | $ (66,391,306) | $ (1,471,734) | $ 2,204,940 | ||
Beginning balance (in shares) at Dec. 31, 2018 | 216,546,541 | 337,611,722 | 419,736,104 | ||||||||
Changes in equity | |||||||||||
Issuance of Class A ordinary shares upon initial public offering, net of offering costs of US$3,462,099 | 114,765,901 | $ 2,373 | 114,763,528 | ||||||||
Issuance of Class A ordinary shares upon initial public offering, net of offering costs of US$3,462,099 (in shares) | 237,375,000 | ||||||||||
Conversion of convertible preferred shares to Class A ordinary shares upon initial public offering | 122,700,922 | $ 12,295 | $ (4,197) | 122,692,824 | |||||||
Conversion of convertible preferred shares to Class A ordinary shares upon initial public offering (in shares) | 1,229,518,986 | (419,736,104) | |||||||||
Issuance of Class A ordinary shares in relation to the acquisition of TradeUp Securities Inc(US) | 3,000,000 | $ 85 | 2,999,915 | ||||||||
Issuance of Class A ordinary shares in relation to the acquisition of TradeUp Securities Inc(US) (in shares) | 8,508,390 | ||||||||||
Issuance of Class A ordinary shares upon settlement of share-based awards | 201,010 | $ 853 | 200,157 | ||||||||
Issuance of Class A ordinary shares upon settlement of share-based awards (in shares) | 85,269,532 | ||||||||||
Share-based compensation | 4,062,600 | 4,062,600 | |||||||||
Provision of statutory reserve | $ 724,008 | (724,008) | |||||||||
Foreign currency translation adjustment | (321,433) | (321,433) | |||||||||
Acquisition of additional equity interest from non-controlling shareholders | (1,471,734) | $ 1,471,734 | |||||||||
Investment in sponsored fund from non-controlling shareholders | 239,609 | ||||||||||
Net income (loss) | (6,589,431) | (6,589,431) | 639,573 | ||||||||
Ending balance at Dec. 31, 2019 | 211,941,612 | $ 17,772 | $ 3,376 | 285,767,622 | 724,008 | (866,421) | (73,704,745) | 3,084,122 | |||
Ending balance (in shares) at Dec. 31, 2019 | 1,777,218,449 | 337,611,722 | |||||||||
Changes in equity | |||||||||||
Issuance of Class A ordinary shares upon settlement of share-based awards | 5,317 | $ 172 | 5,145 | ||||||||
Issuance of Class A ordinary shares upon settlement of share-based awards (in shares) | 17,138,985 | ||||||||||
Share-based compensation | 6,054,612 | 6,054,612 | |||||||||
Treasury stock purchases (in shares) | 10,429,305 | ||||||||||
Treasury stock purchases | (2,172,819) | $ (2,172,819) | |||||||||
Provision of statutory reserve | 1,939,543 | (1,939,543) | |||||||||
Foreign currency translation adjustment | 3,752,464 | 3,752,464 | |||||||||
Investment in sponsored fund from non-controlling shareholders | 4,251,549 | ||||||||||
Unrealized gain on available-for-sale securities | 41,149 | 41,149 | |||||||||
Disposal of sponsored fund from non-controlling shareholders | (10,450,123) | ||||||||||
Net income (loss) | 16,064,793 | 16,064,793 | $ 3,114,452 | ||||||||
Ending balance at Dec. 31, 2020 | 235,687,128 | $ 17,944 | $ 3,376 | $ (2,172,819) | 291,827,379 | 2,663,551 | 2,927,192 | (59,579,495) | |||
Ending balance (in shares) at Dec. 31, 2020 | 1,794,357,434 | 337,611,722 | 10,429,305 | ||||||||
Changes in equity | |||||||||||
Class B ordinary shares converted into Class A ordinary shares | $ 1,155 | $ (1,155) | |||||||||
Class B ordinary shares converted into Class A ordinary shares (in shares) | 115,500,000 | (115,500,000) | |||||||||
Issuance of ordinary shares upon follow-on public offering | 175,421,594 | $ 1,121 | 175,420,473 | ||||||||
Issuance of ordinary shares upon follow-on public offering (in shares) | 112,125,000 | ||||||||||
Issuance of Class A ordinary shares upon settlement of share-based awards | 549,984 | $ 379 | 549,605 | ||||||||
Issuance of Class A ordinary shares upon settlement of share-based awards (in shares) | 38,004,705 | ||||||||||
Share-based compensation | 13,370,377 | 13,370,377 | |||||||||
Provision of statutory reserve | 899,337 | (899,337) | |||||||||
Foreign currency translation adjustment | 1,839,022 | 1,839,022 | |||||||||
Unrealized gain on available-for-sale securities | 1,899,605 | 1,899,605 | |||||||||
Equity component of convertible bonds | 3,167,457 | 3,167,457 | |||||||||
Net income (loss) | 14,690,701 | 14,690,701 | |||||||||
Ending balance at Dec. 31, 2021 | $ 446,625,868 | $ 20,599 | $ 2,221 | $ (2,172,819) | $ 484,335,291 | $ 3,562,888 | $ 6,665,819 | $ (45,788,131) | |||
Ending balance (in shares) at Dec. 31, 2021 | 2,059,987,139 | 222,111,722 | 10,429,305 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIT) (Parenthetical) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Statement Of Stockholders Equity [Abstract] | |
Offering costs | $ 3,462,099 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net (loss) income | $ 14,690,701 | $ 19,179,245 | $ (5,949,858) |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Share-based compensation | 13,370,377 | 6,054,612 | 4,062,600 |
Depreciation and amortization | 1,338,968 | 928,414 | 752,167 |
Unrealized fair value change of financial instruments held, at fair value | (1,081,873) | (6,281) | (1,659,469) |
(Gain) loss on disposal of subsidiaries | 115,681 | (467,500) | |
Loss from equity investments, including impairments | 571,440 | 191,603 | 755,524 |
Allowance for doubtful accounts | 426,953 | 91,788 | |
Loss on disposal of property and equipment | 24,844 | 119,136 | 34,467 |
Foreign currency exchange (gain) loss | 3,265,271 | 2,918,701 | (284,153) |
Deferred tax (benefit) expense | (662,310) | 1,772,670 | (6,215,140) |
Interest expense from convertible bonds | 1,294,203 | ||
Fair value change from convertible bonds | (4,194,848) | ||
Changes in operating assets and liabilities: | |||
Financial instruments held, at fair value | (2,258,578) | 14,324,985 | (6,627,630) |
Receivables from customers | (292,868,761) | (266,193,537) | (101,438,442) |
Receivables from brokers, dealers and clearing organizations | (82,000,320) | (602,544,944) | (183,103,763) |
Amounts due from/to related parties | 3,084,210 | (390,683) | 401,748 |
Prepaid expenses and other current assets | (4,350,422) | (3,531,256) | (1,259,888) |
Operating lease right-of-use assets | 667,243 | (1,548,204) | 2,251,301 |
Other non-current assets | (1,072,518) | (130,244) | (435,614) |
Payables to customers | 810,443,951 | 1,183,682,588 | 481,105,480 |
Payables to brokers, dealers and clearing organizations | (52,871,884) | 168,580,067 | 55,078,762 |
Accrued expenses and other current liabilities | 6,590,630 | 10,256,244 | 6,200,824 |
Operating lease liabilities | (1,504,339) | 1,365,635 | (2,142,202) |
Deferred income | 185,337 | 160,476 | 2,249,925 |
Net cash provided by operating activities | 413,203,956 | 535,281,015 | 243,309,139 |
Cash flows from investing activities: | |||
Purchase of property, equipment and intangible assets | (4,967,842) | (978,142) | (1,317,435) |
Disposal of property, equipment and software | 3,308 | ||
Prepayment for acquisition and long-term investments subject to certain closing conditions | (854,891) | ||
Payment for long-term investments | (2,450,736) | (600,000) | |
Cash paid for acquisition, net of cash acquired | 2,584,303 | (6,008,680) | |
Cash-segregated for regulatory purpose acquired from acquisition | 2,166,432 | 22,094,198 | |
Repayment of loans from related parties | 110,487 | 1,585,591 | |
Cash received from disposal of a subsidiary | 79,634 | 106,105 | |
Purchase of term deposits | (17,460,305) | (31,449,568) | (65,601,207) |
Maturity of term deposits | 33,088,423 | 78,374,132 | 29,999,865 |
Advances to employees | (126,779) | (1,462,052) | (1,154,938) |
Loans to related parties | (2,155,038) | (928,751) | (288,719) |
Dividend received | 46,938 | ||
Net cash (used in) provided by investing activities | 10,918,825 | 43,555,619 | (22,040,111) |
Cash flows from financing activities: | |||
Proceeds received from issuance of convertible bonds | 154,909,777 | ||
Proceeds received from issuance of Series C convertible redeemable preferred shares | 800,000 | ||
Net proceeds received from follow-on public offering (net of offering cost of US$1,215,162) | 175,421,594 | ||
Net proceeds received from initial public offering (net of offering cost of US$3,462,099) | 114,765,901 | ||
Proceeds received from issuance of Class A Ordinary Shares upon settlement of share-based awards | 549,984 | 5,317 | 201,010 |
Capital contribution in sponsored fund from redeemable non-controlling interest | 4,251,549 | 239,609 | |
Payment to redeemable non-controlling interest due to disposal of sponsored fund | (10,450,123) | ||
Repayment of loans to bank | (1,100,000) | ||
Purchases of treasury stock | (2,172,819) | ||
Net cash provided by (used in) financing activities | 330,881,355 | (8,366,076) | 114,906,520 |
Increase in cash, cash equivalents and restricted cash | 755,004,136 | 570,470,558 | 336,175,548 |
Effect of exchange rate changes | (1,718,832) | (194,554) | 45,693 |
Cash, cash equivalents and restricted cash at beginning of the year | 947,599,651 | 377,323,647 | 41,102,406 |
Cash, cash equivalents and restricted cash at end of the year | 1,700,884,955 | 947,599,651 | 377,323,647 |
Cash, cash equivalents and restricted cash: | |||
Cash and cash equivalents | 269,057,708 | 79,652,897 | 59,408,555 |
Cash-segregated for regulatory purpose | 1,431,827,247 | 867,946,754 | 317,915,092 |
Supplemental disclosure of cash flow information: | |||
Income taxes paid | 5,586,372 | 266,269 | 762,179 |
Acquisition consideration paid | $ 1,079,830 | 6,348,290 | |
Non-cash investing activity: | |||
Loan converted to long‑term investment | $ 3,846,699 | ||
Prepayment converted to long-term investment and loans to related parties | $ 654,891 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement Of Cash Flows [Abstract] | |||
Net of offering cost | $ 1,215,162 | ||
Net of Follow-on public offering | $ 3,462,099 | ||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Interest expense from convertible bonds | 350,519 | ||
Fair value change from convertible bonds | (2,860,123) | ||
Changes in operating assets and liabilities: | |||
Receivables from brokers, dealers and clearing organizations | (40,320,092) | $ (579,271,721) | |
Payables to brokers, dealers and clearing organizations | $ (48,235,921) | $ 164,799,238 |
ORGANIZATION AND PRINCIPAL ACTI
ORGANIZATION AND PRINCIPAL ACTIVITIES | 12 Months Ended |
Dec. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES UP Fintech Holding Limited (the “Company”) was incorporated under the laws of Cayman Islands on January 26, 2018. The Company, its subsidiaries, its consolidated variable interest entities (“VIEs”) and VIEs’ subsidiaries (collectively, the “Group”) are primarily engaged in providing online brokerage services. As of December 31, 2021, details of the Group’s major principal operating subsidiaries, VIEs and VIEs’ subsidiaries were as follows: Date of incorporation or acquisition Place of establishment/ incorporation Percentage of legal ownership Subsidiaries: Tiger Brokers (NZ) Limited (“TBNZ”) August 02, 2016 New Zealand 100 % Up Fintech International Limited (“Up International”) February 08, 2018 Hong Kong 100 % Tiger Fintech (Singapore) PTE Ltd. (“Tiger SG”) March 13, 2018 Singapore 100 % Tiger Brokers (Singapore) PTE Ltd. (“Tiger Brokers SG”) March 27, 2018 Singapore 100 % US Tiger Securities, Inc. (“US Tiger Securities”) March 30, 2018 United States of America(“USA”) 100 % Beijing Bohu Xiangshang Technology Co., LTD (“Beijing BHXS”,“Beijing WFOE I”) May 17, 2018 PRC 100 % Tiger Fintech Holdings, Inc (“Tiger Fintech Holdings”) July 09, 2018 USA 100 % Beijing Xiangshang Yixin Technology Co., Ltd (“Beijing Yixin”,“Beijing WFOE II”) July 26, 2018 PRC 100 % Trading Front Inc (“Trading Front”) August 01, 2018 USA 100 % Wealthn LLC (“Wealthn”) August 01, 2018 USA 100 % Kastle Limited (“Kastle”) October 15, 2018 Hong Kong 100 % Tung Chi Consulting Limited (“Tung Chi”) January 29, 2019 Hong Kong 100 % TradeUP Securities Inc (US) (“TradeUP Securities”) 1 July 12, 2019 USA 100 % Tradeup Inc. (“Tradeup”) October 10, 2019 USA 100 % Hangzhou U-Tiger Technology Co. LTD (“Hangzhou U-Tiger”) April 09,2020 PRC 100 % Tiger Fintech (NZ) Limited (“TFNZ”) May 17, 2021 New Zealand 100 % Tiger Services (AU) Pty Ltd (“Tiger Services AU”) August 27, 2021 Australia 100 % Tiger Brokers (HK) Global Limited (“Tiger Brokers HK”) 2 October 26, 2021 Hong Kong 100 % VIEs: Beijing Xiangshang Rongke Technology Co. LTD (“Beijing Rongke”, “Ningxia VIE”) 3 June 11, 2014 PRC Consolidated VIE Beijing Xiangshang Yiyi Laohu Technology Group Co., LTD (“Beijing Yiyi”, “Beijing VIE”) October 29, 2018 PRC Consolidated VIE VIEs’ subsidiaries: Tiger Technology Corporation Limited (“Tiger Technology”) October 14, 2014 Hong Kong VIE’s subsidiary Beijing U-Tiger Network Technology Co., LTD (“Beijing U-Tiger Network”) April 20, 2016 PRC VIE’s subsidiary Beijing U-Tiger Business Service Co., Ltd (“Beijing U-Tiger Business”) April 21, 2016 PRC VIE’s subsidiary Beijing Chenhao Technology Co., LTD. (“Beijing Chenhao”) August 11, 2016 PRC VIE’s subsidiary Beijing Zhijianfengyi Information Technology Co., Ltd (“Beijing ZJFY”) January 25, 2018 PRC VIE’s subsidiary Shenzhen Xiang Shang Hu Xun Technology Co., LTD (“HuXun”) June 20, 2018 PRC VIE’s subsidiary Beijing Huyi Technology Co., Ltd (“Huyi”) September 05, 2018 PRC VIE’s subsidiary Guangzhou U-Tiger Technology Co., LTD (“Guangzhou U Tiger”) December 24, 2018 PRC VIE’s subsidiary 1 2 3 1. ORGANIZATION AND PRINCIPAL ACTIVITIES (Continued) History of the Group and reorganization under identical common ownership The Group’s history began in June 2014 with the commencement of operations of Beijing Rongke, as a limited liability company in PRC incorporated by Mr. Tianhua, Wu, Chief Executive Officer (the “CEO”). From December 2014 to January 2017, after the incorporation of the Beijing Rongke, series Angel, A, B, B+ investors (collectively, the “equity investors”) each acquired certain equity interest with preferential rights of Beijing Rongke. In June 2018, the Company undertook a series of reorganization transactions to re-domicile its business from the PRC to the Cayman Islands (the “Re-domiciliation”). The main purpose of the Re-domiciliation was to establish a Cayman holding company for the existing business in preparation for its overseas initial public offering. At the same shareholding percentages and the rights of each shareholder were substantially the same in Beijing Rongke and the Company, the Re-domiciliation was accounted for as a reorganization of entities under common ownership. As a result, Beijing Rongke’s historical financial information was consolidated in the consolidated financial statements of the Group since the beginning of the periods presented. The VIE arrangements To provide the Company control over the VIEs and the rights to the expected residual returns of the VIEs and VIEs’ subsidiaries, on June 7, 2018, Beijing WFOE I, entered into a series of contractual arrangements as described below, and as amended on December 17, 2018, with the Beijing Rongke and its equity investors. On October 30, 2018, Beijing WFOE II entered into a series of substantially same contractual arrangements with Beijing Yiyi. As a result of entering into these contractual agreements, the Company through its wholly owned subsidiaries, Beijing WFOE I and Beijing WFOE II (the “WOFEs”), has (1) power to direct the activities of the VIEs that most significantly affect the entities' economic performance and (2) the right to receive economic benefits of the VIEs that could be significant to the VIEs. Accordingly, The Company is considered the primary beneficiary of the VIEs and consolidate the VIEs’ financial results of operations, assets, and liabilities in the Company’s consolidated financial statements. The Company also believes that this ability to exercise control ensures that the VIEs will continue to execute and renew the exclusive business cooperation agreements and pay service fees to the Company. The ability to charge service fees in amounts determined at the Company’s sole discretion, and by ensuring that the exclusive business cooperation agreements are executed and renewed indefinitely, the Company has the right to receive substantially all of the economic benefits from the VIEs. Agreements Exclusive Option Agreements. The respective equity investors of the VIEs entered into Exclusive Option Agreements with the WFOEs respectively, pursuant to which the equity investors of the VIEs grant the WFOEs an irrevocable and exclusive right to purchase or designate one or more persons to purchase the equity interests in the VIEs then held by the equity investors of the VIEs once or at multiple times at any time in part or in whole at the WFOEs’ sole and absolute discretion to the extent permitted by PRC laws. The standard equity interest purchase price is RMB10 (US$1.5). If a minimum price limited by PRC law applicable is more than RMB10 (US$1.5), the purchase price of the equity interest shall equal such minimum price. The agreement shall remain effective for a term of ten years and renewable at the WFOEs’ election. 1. ORGANIZATION AND PRINCIPAL ACTIVITIES (Continued) The VIE arrangements (Continued) Powers of Attorney. The equity investors of the VIEs signed the irrevocable Powers of Attorney to appoint the WFOEs as the attorney-in-fact to act on the equity investors’ behalf on all rights that the equity investors have in respect of their equity interest in the VIEs conferred by relevant laws and regulations and the articles of association of the VIEs. The rights include but not limited to attending shareholders meeting, exercising voting rights, designating and appointing on behalf of the equity investors, the legal representative (chairperson), the director, supervisor, the chief executive officer and other senior management members of the VIEs. Powers of attorney are coupled with an interest and shall be irrevocable and continuously valid from the date of execution of the Powers of Attorney. Spousal Consent letters. The spouse of each married equity investors of the VIEs has signed a spousal consent letter, which unconditionally and irrevocably agreed not to assert any rights over the equity interest in the VIEs held by and registered in the name of their spouse. In addition, in the event that the spouse obtains any equity interest in the VIEs for any reason, they agreed to be bound by the contractual arrangements. Commitment letters. The respective equity investors of the VIEs entered into Commitment letters with the WFOEs respectively. The equity investors of the VIEs undertake that, when exercising their options, they will refund, without any conditions, any amount and fees to the WFOEs which exceed the share purchase price provided in the Exclusive Option Agreements. Agreements Exclusive Business Cooperation Agreements. The WFOEs entered into Exclusive Business Cooperation Agreements with the VIEs and their equity investors. Under the agreements, VIEs agree to appoint the WFOEs as their exclusive services provider to provide the business support, technical and consulting services at a determined price. The WFOEs shall have exclusive and proprietary rights and interests in all rights, ownership, interests and intellectual properties arising out of or created during the performance of the agreement. The annual service fee should not be less than 99% of VIEs’ total net profit and could be decided and adjusted by the WFOEs. The service agreements shall remain effective for ten years. The WFOEs has the right to unilaterally extend the agreement and the VIEs shall accept the extended term unconditionally. Equity Pledge Agreements. The equity investors of the VIEs entered into Equity Pledge Agreements with the WFOEs, under which the equity investors pledged all of the equity interest in the VIEs to the WFOEs to ensure that the WFOEs collect all payments due by the VIEs, including without limitation the consulting and service fees regularly from the VIEs under the Exclusive Business Cooperation Agreements. The WFOEs shall have the right to collect dividends generated by the equity interest during the term of pledge. If any event of default, the WFOEs, as the pledgee, will be entitled to take possession of the equity interest pledged and to dispose of the pledged equity interest. The Equity Pledge Agreements remain continuously valid until all payments due under the Exclusive Business Cooperation Agreements have been fulfilled by the VIEs. Risks in relation to the VIE structure The Company believes that the WFOEs’ contractual arrangements with the VIEs and their respective subsidiaries are in compliance with PRC laws and are legally enforceable. The equity investors of the VIEs are also major shareholders of the Company and therefore have no current interest in seeking to act contrary to the contractual arrangements. However, uncertainties in the PRC legal system could limit the Company’s ability to enforce these contractual arrangements and if the shareholders were to reduce their interest in the Company, their interests may diverge from that of the Company and that may potentially increase the risk that they would seek to act contrary to the contractual terms, for example by influencing the VIEs not to pay the service fees when required to do so. 1. ORGANIZATION AND PRINCIPAL ACTIVITIES (Continued) Risks in relation to the VIE structure (Continued) The Company’s ability to control the VIEs also depends on the Powers of attorney. The WFOEs have to vote on all matters requiring shareholders’ approval in the VIEs. As noted above, the Company believes this Powers of attorney is legally enforceable but may not be as effective as direct equity ownership. The shareholders are required to complete the registration of the equity pledge under the agreements with competent government authorities. In case any of the shareholders is in breach, the WFOEs will be entitled to certain right, including the right to dispose the pledged equity interest and to receive proceeds from the auction or sale of the pledge equity interests. The Company has completed the registration of the equity pledges relating to the VIEs with the local government authorities. In addition, if the legal structure and contractual arrangements were found to be in violation of any existing PRC laws and regulations, the PRC regulatory authorities could: • revoke the Group’s business and operating licenses; • require the Group to discontinue or restrict its operations; • restrict the Group’s right to collect revenues; • restrict or prohibit the Group to finance its business and operations in China; • require the Group to restructure the operations; • impose additional conditions or requirements with which the Group might not be able to comply, levy fines, confiscate the Group’s income or the income of its PRC subsidiary or affiliated PRC entities; or • take other regulatory or enforcement actions against the Group that could be harmful to its business. The imposition of any of these penalties could result in a material adverse effect on the Group’s ability to conduct the Group’s business. In addition, if the imposition of any of these penalties causes the Group to lose the rights to direct the activities of the VIEs, VIEs’ subsidiaries, or the right to receive their economic benefits, the Group would no longer be able to consolidate the VIEs and VIEs’ subsidiaries. The Group does not believe that any penalties imposed or actions taken by the PRC government would result in the liquidation or dissolution of the Company, the WFOEs, the VIEs and their respective subsidiaries. 1. ORGANIZATION AND PRINCIPAL ACTIVITIES (Continued) Risks in relation to the VIE structure (Continued) The following table sets forth the assets, liabilities, results of operations and cash flows of the VIEs and VIEs’ subsidiaries taken as a whole, which were included in the Group’s consolidated financial statements with intercompany balances and transactions eliminated between the VIEs and VIEs’ subsidiaries: As of December 31, 2020 2021 US$ US$ Current assets 48,118,025 51,873,657 Non-current assets 16,253,660 16,083,322 Total assets 64,371,685 67,956,979 Current liabilities 25,955,828 25,422,094 Non-current liabilities 1,158,044 6,858 Total liabilities 27,113,872 25,428,952 For the years ended December, 31 2019 2020 2021 US$ US$ US$ Total revenues 44,134,256 16,191,693 65,295,325 Net income (loss) 16,505,238 (7,524,524 ) (700,720 ) For the years ended December, 31 2019 2020 2021 US$ US$ US$ Net cash provided by (used in) operating activities 6,567,594 (597,323 ) 18,431,299 Net cash (used in) provided by investing activities (10,240,498 ) 646,647 (4,048,620 ) Net cash provided by (used in) financing activities 43,730 311,688 (5,091,778 ) Total assets as of December 31, 2020 and 2021 disclosed above include amounts due from internal companies within the Group, amounting to US$38,117,451 and US$29,039,312, respectively. Total liabilities as of December 31, 2020 and 2021 disclosed above include amounts due to the internal companies amounting to US$11,867,106 and US$8,752,699, respectively. During 2019, 2020 and 2021, the VIEs earned inter-company total revenues amounting to US$41,044,651, US$13,565,810 and US$60,971,555, respectively. All of these intercompany balances and transactions have been eliminated in consolidation. The Group’s main revenues were mostly generated from its wholly owned subsidiaries in New Zealand, Singapore , PRC and the United States for the years ended December 31, 2019, 2020, and 2021. Most of Group’s consolidated VIEs and their subsidiaries operate business in the PRC and their main functions are to support Group’s licensed/registered entities in New Zealand, Singapore, and the United States (“Licensed Entities”). Certain of the costs generated by VIEs and their subsidiaries are covered by these Licensed Entities through inter-company transactions, and the Group expect that the Licensed Entities will cover a substantial majority of such costs in the future. In general, the holding company transfers funds from financing (including funds from its IPO, follow-on equity offerings, and offerings of convertible bonds, as applicable) to Licensed Entities in the form of capital injections or loans to support their business expansion. These Licensed Entities pay the Group’s consolidated VIEs and their subsidiaries periodically for the services rendered through inter-company transactions, pursuant to the terms of the contractual arrangements between them. 1. ORGANIZATION AND PRINCIPAL ACTIVITIES (Continued) Risks in relation to the VIE structure (Continued) The Company’s subsidiaries and consolidated VIEs did not declare or distribute any dividends or distributions for the years ended December 31, 2019, 2020 and 2021. Additionally, the holding company did not declare nor distribute any dividends or distribution for the years ended December 31, 2019, 2020 and 2021. There are no consolidated VIEs’ assets that are collateralized for the VIEs’ obligations and can only be used to settle the VIEs’ obligations. There are no creditors (or beneficial interest holders) of the VIEs that have recourse to the general credit of the Company or any of its consolidated subsidiaries. There are no terms in any arrangements, considering both explicit arrangements and implicit variable interests that require the Company or its subsidiaries to provide financial support to the VIEs. However, if the VIEs ever need financial support, the Company or its subsidiaries may, at its option and subject to statutory limits and restrictions, provide financial support to its VIEs through loans to the shareholders of the VIEs or entrustment loans to the VIEs. Relevant PRC laws and regulations restrict the VIEs from transferring a portion of their net assets, equivalent to the balance of their statutory reserve and their share capital, to the Company in the form of loans and advances or cash dividends. Please refer to Note 21 for disclosure of restricted net assets. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation and principle of consolidation The consolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements of the Group include the financial statements of the Company, its wholly-owned subsidiaries, its VIEs and the VIEs’ subsidiaries. Consolidation of a sponsored fund The Company has a trust that develops and holds an exchange-trade fund (the “sponsored fund”) that is publicly traded from the Nasdaq Global Select Market. The fund is managed by a subsidiary of the Company. Decisions regarding the trustees of the trust and certain key activities of the sponsored fund within the trust, such as appointment of the sponsored fund’s investment adviser, resides at the trust level. As a result, shareholders of the sponsored fund lack the ability to control the key decision-making processes that most significantly affect the economic performance of the sponsored fund. Accordingly, the Company believes that the trust and the sponsored fund are variable interest entities (“VIEs”) and shall be evaluated for consolidation as VIEs. The Company provides seed funding to new sponsored fund and may hold a significant interest in the shares of a sponsored fund during the seed investment stage when the sponsored fund’s investment track record is being established. To the extent that the Company’s interest in a sponsored fund is limited to: (i) fixed management fee and (ii) other interests that, in aggregate, would absorb an insignificant amount of variability in the fund, the Company’s management contract would not be considered a variable interest that provides the Company with the power to direct the activities of the fund and would therefore not be required to consolidate the fund. However, the Company has concluded that its fees earned from asset management arrangement with sponsored fund in which the Company holds a significant (at least 10 percent) ownership interest in the fund do represent variable interests that convey both power, in combination with the ownership interest, and significant economic exposure (both characteristics of a controlling financial interest) to the Company and therefore the Company would be the primary beneficiary that required to consolidate the fund. Upon consolidation, management fee revenue earned on, as well as the Company’s investments in, the consolidated sponsored funds are eliminated. The Company retains the specialized accounting treatment of the sponsored fund in consolidation whereby the underlying investments are carried at fair value, reflected in financial instruments held, at fair value, in the Company's consolidated balance sheets, with corresponding changes in fair value reflected in others, net in the Company’s consolidated statements of comprehensive income (loss). The non-controlling interest represents third-party interests of the Company’s consolidated sponsored fund. This interest is redeemable at the option of the investors and therefore is recorded as mezzanine equity. Redeemable non-controlling interest is recorded at redemption value which approximates the fair value at each reporting period. When the Company no longer holds a controlling financial interest in the sponsored fund, the Company deconsolidates the sponsored fund and removes the related assets, liabilities and redeemable non-controlling interests from its balance sheet. Because consolidated sponsored funds carry their assets and liabilities at fair value, there is no incremental gain or loss recognized upon deconsolidation. In November 2020, the sponsored fund was delisted and liquidated. Therefore it was deconsolidated in Group's consolidated financial statement since November 2020. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. Significant accounting estimates reflected in the Group’s consolidated financial statements include allowance for doubtful accounts Fair value Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. Authoritative literature provides a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows: Level 1 Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model‑derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Fair value of financial instruments The Group’s financial instruments consist primarily of cash and cash equivalents, cash—segregated for regulatory purpose, term deposits, financial instruments held, at fair value, derivative assets or liabilities in relation to the Company's derivative transactions, receivables from or payables to customers, receivables from or payables to brokers, dealers, clearing organizations, amounts due from or to related parties, long‑term equity securities without readily determinable fair value, long-term available‑for‑sale securities and convertible bonds. The Company carries its financial instruments held, at fair value, long‑term available‑for‑sales securities at fair value. Financial instruments held, at fair value, based upon quoted market price, consist of stock investments related to the exchange trade funds (“ETFs”), US treasuries and corporate bonds. The carrying amounts of cash and cash equivalents, cash—segregated for regulatory purpose, term deposits, receivables from or payables to customers, receivables from or payables to brokers, dealers and clearing organizations, amounts due from or to related parties approximate their fair values due to the short‑term maturities of these instruments. The fair value of convertible bonds that adopted fair value option (2021 Series A1 Note) was measured using binomial-lattice option valuation model and significant unobservable inputs included share price, volatility, expected dividend, risk free interest rate and bond yield. The convertible bonds that are not reported at fair value are disclosed in Note 11. Derivative financial instruments The Company may utilize derivative financial instruments to mitigate the risk of fair value change of its investments in certain consolidated sponsored funds seeded for business development purposes. These derivative financial instruments are not designated as hedging instruments for accounting purposes. The Company does not use derivative financial instruments for speculative purposes. The Company may also acquire derivative financial instruments (i.e. warrants) during the course of its IPO distribution services. The Company records the derivative financial instruments in financial instrument held, at fair value or accrued expenses and other current liabilities on its consolidated balance sheets and measures these instruments at fair value. As of December 31, 2020 and 2021, the Company held nil and US$12,906 derivatives (mainly stock index future contracts and warrants) reflected in financial instruments held at fair value in the Company’s consolidated balance sheets, respectively. For the years ended December 31, 2020 and 2021, the Company recognized US$2,316,585 and nil realized loss, as well as nil and US$80,703 unrealized loss in other income in the Company’s consolidated statements of comprehensive income (loss), respectively. Cash and cash equivalents Cash and cash equivalents consist of cash on Cash—segregated for regulatory purpose Certain subsidiaries of the Company are obligated by rules mandated by their primary regulators to segregate or set aside amount of cash deposited by the customer and the Company. Such regulations are promulgated to protect customer assets and meet the capital adequacy and other regulatory requirement. A corresponding payable to customers is recorded upon receipt of the cash from the customer. Restricted cash represents cash and cash equivalents that are subject to withdrawal or usage restrictions. Cash segregated for regulatory purposes meets the definition of restricted cash and is included in “cash, cash equivalents and restricted cash” in the consolidated statements of cash flows. As of December 31, 2020 and 2021, TradeUP Securities, the Company's broker-dealer subsidiary located in the USA, had a cash of US$29,625,645 and US$433,540,023 segregated for the exclusive benefit of customers under Rule 15c3-3 of the Securities Exchange Act. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Term deposits Term deposits consist of bank deposits with an original maturity of greater than three months and less than one year. Receivables from and payables to Customers Receivables from customers include the margin loans extended to consolidated accounts customers by the Group. Securities owned by the customers, which are not recorded in the consolidated balance sheets, are held as collateral for amounts due on the loan receivables. Receivables from customers are recorded net of allowance for doubtful accounts. Revenues earned from the margin loan transactions are included in interest income. The amounts receivable from customers that are determined by management to be uncollectible when the fair value of the collaterals fall under the carrying value of the receivables are recorded as bad debt expense in the consolidated statements of comprehensive income (loss). For the years ended December 31, 2019, 2020 and 2021, nil, US$91,788 and US$426,953 of allowance for doubtful accounts were recorded. The table below presents the movement of allowance for doubtful accounts from customers for the year ended December 31, 2020 and 2021. For the years ended December 31, 2020 2021 US$ US$ Balance at the beginning of the year — 91,788 Accruals 91,788 426,953 Balance at the end of the year 91,788 518,741 Payables to customers represent the closing cash balance to the customers, which include cash deposit and cash collateral received or advanced from consolidated account customers derived from security borrowing and lending activities. The Company receives or advances cash collateral, in an amount equals to or in excess of the fair value of the securities borrowed and loaned by customers. The Company monitors the market value of securities borrowed and loaned on a daily basis, with additional collateral obtained or refunded as permitted contractually. Interest income and interest expense are recorded on an accrual basis. Receivables from and Payables to Receivables from brokers, dealers and clearing organizations include customers' cash deposits, the Group’s revenue receivables, cash collateral received for consolidated account customers’ security lending activities, and net receivables arising from unsettled trades. Payables to brokers, dealers and clearing organizations include borrowed margin and cash collaterals received from securities borrowing transactions. Securities borrowing transactions require the Company to deposit cash with the lender, and securities lending transactions result in the Company receiving collateral in the form of cash from the brokers, dealers and clearing organization. The cash collateral advanced to or received from the brokers are in an amount generally equal to or in excess of the market value of the securities that borrowed or loaned by the consolidated account customers. The Company monitors the market value of securities borrowed and loaned on a daily basis, with additional collateral obtained or refunded as permitted contractually. Interest income and interest expense are recorded on an accrual basis. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Property, equipment, and intangible assets, net Property and equipment mainly consist of electronic equipment, office equipment, leasehold improvements and software. The property and equipment are carried at cost less accumulated depreciation. Depreciation is calculated on a straight‑line basis over the following estimated useful lives: Electronic equipment 3 years Office equipment 5-14.25 years Software 3-5 years Leasehold improvement Shorter of the lease terms or the estimated useful lives of the assets Intangible assets mainly consist of the brokerage’s license in USA, New Zealand, Hong Kong and Australia acquired by the Company, which are recognized as intangible assets with indefinite life, and it should not be amortized until its useful life is determined to be no longer indefinite. An intangible asset that is not subject to amortization is tested for impairment at least annually or if events or changes in circumstances indicate that the asset might be impaired. Goodwill Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. Goodwill is not amortized but is tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired. Goodwill is tested for impairment at the reporting unit level on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. These events or circumstances could include a significant change in the business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. Application of the goodwill impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units, and determination of the fair value of each reporting unit. The estimation of fair value of each reporting unit using a discounted cash flow methodology also requires significant judgments, including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long‑term rate of growth for the Group’s business, estimation of the useful life over which cash flows will occur, and determination of the Group’s weighted average cost of capital. The estimates used to calculate the fair value of a reporting unit change from year to year based on operating results and market conditions. Changes in these estimates and assumptions could materially affect the determination of fair value and goodwill impairment for the reporting unit. The Group first assesses relevant events and circumstances to determine whether it is necessary to perform the two-step goodwill impairment test. If, after assessing the totality of events or circumstances such as those described in the preceding paragraph, the Group determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then the first and second steps of the goodwill impairment test are unnecessary. The first step of the goodwill impairment test, used to identify potential impairment, compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit is greater than zero and its fair value exceeds its carrying amount, goodwill of the reporting unit is considered not impaired and the second step of the impairment test is unnecessary. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of the affected reporting unit’s goodwill to the carrying value of that goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. This allocation process is only performed for purposes of evaluating goodwill impairment and does not result in an entry to adjust the value of any assets or liabilities. The Group concluded that the estimated fair value of the reporting unit substantially exceeded the underlying carrying value as of December 31, 2021. No impairment charge was recognized for the years ended December 31, 2019, 2020 and 2021. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Lease The Group leases offices and other facilities in different cities in the PRC, New Zealand, Singapore, USA and other countries. The Group determines whether an arrangement constitutes a lease and records lease liabilities and right-of-use assets on its consolidated balance sheets at the lease commencement. The Group measures its lease liabilities based on the present value of the total lease payments not yet paid discounted based on the more readily determinable of the rate implicit in the lease or its incremental borrowing rate, which is the estimated rate the Group would be required to pay for a collateralized borrowing equal to the total lease payments over the term of the lease. The Group estimates its respective incremental borrowing rate for each jurisdiction based on their analysis of publicly traded debt securities of companies with credit and financial profiles similar to its own. The Group measures right-of-use assets based on the corresponding lease liability adjusted for payments made to the lessor at the commencement date, and initial direct costs it incurs under the lease. The Group begins recognizing operating lease expense when the lessor makes the underlying asset available to the Group. The Group’s leases have remaining lease terms of up to seven years, some of which include options to extend the leases for an additional period which has to be agreed with the lessors based on mutual negotiation. After considering the factors that create an economic incentive, the Group did not include renewal option periods in the lease term for which it is not reasonably certain to exercise. For short-term leases, the Group records operating lease expense in its consolidated statements of comprehensive income (loss) on a straight-line basis over the lease term and record variable lease payments as incurred. Long‑term investment The Group’s long‑term investments consist of equity securities without readily determinable fair values, available‑for‑sale securities and equity method investment. (a) Equity securities without readily determinable fair values For investments in equity securities without readily determinable fair values, the Group elects to use the measurement alternative defined as cost, less impairment, adjusted by observable price change. The Group reviews its equity securities without readily determinable fair values investments for impairment at each reporting period by performing a qualitative assessment considering impairment indicators. The Group recorded US$755,524, nil and US$600,000 impairment loss on its equity securities without readily determinable fair values during the years ended December 31, 2019, 2020 and 2021. (b) Available‑for‑sale securities For investments which are determined to be debt securities, the Group accounts for them as long‑term available‑for‑sale securities when they are not classified as either trading or held‑to‑maturity investments. Available‑for‑sale securities are carried at its fair value and the unrealized gains or losses from the changes in fair values are included in accumulated other comprehensive income or loss. The Group reviews its investments for other than temporary impairment based on the specific identification method. The Group considers available quantitative and qualitative evidence in evaluating potential impairment of its investments. If the cost of an investment exceeds the investment’s fair value, the Group considers, among other factors, general market conditions, government economic plans, the duration and the extent to which the fair value of the investment is less than the cost, the Group’s intent and ability to hold the investment, and the financial condition and near term prospects of the investees. The Group recorded nil, US$150,978 and nil impairment losses on its available‑for‑sale securities during the years ended December 31, 2019, 2020 and 2021, respectively. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Long‑term investment (Continued) (c) Equity method investment In accordance with ASC 323 Investment—Equity Method and Joint Ventures, the Group accounts for an equity method investment over which it has significant influence but does not own a majority of the equity interest or otherwise controls and the investments are either common stock or in substance common stock using the equity method. The Group’s share of the investee’s profit and loss is recognized in the consolidated statements comprehensive income (loss) of the period. An impairment loss on the equity method investments is recognized in the consolidated statements of comprehensive income (loss) when the decline in value is determined to be other-than-temporary. The Group did not record any impairment losses on its equity method investment during the years ended December 31, 2019, 2020 and 2021. Revenue recognition Revenue from contracts with customers is recognized when or as the Group satisfies its performance obligations by transferring the promised services to the customers. A service is transferred to a customer when or as the customer obtains control of that service. A performance obligation may be satisfied at a point in time or over time. Revenue from a performance obligation satisfied at a point in time is recognized at the point in time that the Group determines the customer obtains control over the promised service. Revenue from a performance obligation satisfied over time is recognized by measuring the Group’s progress in satisfying the performance obligation in a manner that depicts the transfer of the services to the customer. The amount of revenue recognized reflects the consideration the Group expects to receive in exchange for those promised services (i.e., the “transaction price”). The Group’s revenues from contracts with customers are recognized when the performance obligations are satisfied at an amount that reflects the consideration expected to be received in exchange for such services. The majority of the Group’s performance obligations are satisfied at a point in time upon the successful execution and clearing of the customer’s trade order. Revenue is collected from the Group’s clearing partners in the brokerage business or from the customers directly by debiting their brokerage account with the Group. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Revenue recognition (Continued) Nature of Services The Group’s services under contracts with customers are mainly related to its commission earned from its online brokerage business under the consolidated accounts (which customer information are not disclosed to the broker) and the fully disclosed accounts. The Group’s main sources of revenue from contracts with customers are as follows: i ) Commissions earned for the Group’s online brokerage business in customers’ fully disclosed accounts and consolidated accounts are charged for each customer trade order executed and cleared by broker on a trade date basis and are reported as commissions in the consolidated statements of comprehensive income (loss). According to the attributes of transactions under consolidated accounts, the Group provides brokerage service for its customers. Commission fees are deducted from the customer’s account at the time of trade order initiation and a pre‑determined portion is directed to the broker. The Group recognizes revenue at the time of execution of the order (i.e., trade date) on a gross basis as the Group is determined to be the primary obligor in fulfilling the trade order initiated by the customer. According to the attributes of transactions under fully disclosed accounts, the Group provides the agreed services to its customers in facilitating the trades. Every time the broker executes and clears a trade, the broker collects the commissions, deducts its pre‑determined portion and returns the rest of the commission fees to the Group. Accordingly, the commission fee is recorded on a net basis. ii) Finance servicing fees are related to margin loans and securities borrowing and lending activities provided by the brokers under the fully disclosed accounts. Revenue is recognized over the period that the margin loans and securities borrowing and lending activities are outstanding. iii) Interest income is generated from margin loans and securities borrowing and lending activities provided to consolidated account customers and interest income from bank deposits. Interest income is recognized on an accrual basis. iv) Other revenues consist of the revenue arising from initial public offering (“IPO”) distribution service, currency exchange service and others. Revenue from the IPO distribution service is derived from IPO underwriting and new share subscription services in relation to IPOs in the USA and Hong Kong capital market. IPO distribution revenue are generally recognized when the services are completed. The related revenue from IPO distribution services amounted at US$3,142,763, US$13,760,209 and US$12,565,574 for the years ended December 31, 2019, 2020 and 2021. Revenue from currency exchange service is charged to the Group’s clients for providing currency exchange service, which was recorded upon the time when the services are rendered to customers. The related revenue from currency exchange service amounted at US$246,135, US$2,530,145 and US$12,607,089 for the years ended December 31, 2019, 2020 and 2021. The Group also provides promotional and advertisement service and financial advisory service under the contracts with customers, which are recorded over the period of service provided. Contract liabilities arise when customers remit contractual cash payments in advance of the Company satisfying its performance obligations under the contract and are derecognized when the revenue associated with the contract is recognized either when a milestone is met triggering the contractual right to bill the customer or when the performance obligation is satisfied. Contract liabilities are reported in deferred income and accrued expenses and other current liabilities-advanced from customers in the consolidated balance sheets. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Research and development expenses Research and development expenses primarily consist of salaries and employee benefits, rental and depreciation expenses related to the development of the Group’s proprietary trading platform, back-end technology and customer relationship management system. For the years ended December 31, 2019, 2020 and 2021, US$18,033,074 and US$22,507,376 and US$47,769,773 of research and development costs have been expensed as incurred as the costs qualifying for capitalization have been insignificant. Occupancy, Depreciation and Amortization Occupancy expenses consist primarily of lease payments on office and data center leases and related occupancy costs, such as utilities. Depreciation and amortization expenses result from the depreciation of fixed assets, such as electronic equipment, office equipment as well as leasehold improvements and the amortization of intangible assets. Share‑based compensation Share‑based payment transactions with employees and managements, such as share options are measured based on the grant date fair value of the equity instrument. The Group has elected to recognize compensation expenses using the straight‑line method for all employee equity awards granted with graded vesting provided that the cumulative amount of compensation cost recognized at any date is at least equal to the portion of the grant‑date value of the options that are vested at that date, over the requisite service period of the award, which is generally the vesting period of the award. Compensation expenses for awards with performance conditions is recognized when it is probable that the performance condition will be achieved. The Group elects to recognize forfeitures when they occur. Compensation expenses for awards with service conditions is recognized on a straight-line method over the requisite service period. The cancellation of an award accompanied by the concurrent grant of a replacement award is accounted for as a modification of the terms of the awards. The incremental compensation cost is measured as the excess of the fair value of the modified award over the fair value of the modified award at the modification date. The incremental portion of share-based compensation for the vested portion is recognized immediately and the incremental portion of share-based compensation for the unvested portion is recognized over the remaining vesting period of the award. If an award is canceled without the concurrent grant of a replacement award or any other consideration, unrecognized compensation cost related to the canceled award is recognized immediately upon cancelation. For awards granted with a performance condition that affects vesting, the performance condition is not considered in determining the award’s grant-date fair value; however, the performance condition is considered when estimating the quantity of awards that are expected to vest. No compensation expense is recorded for awards with a performance condition unless and until the performance condition is determined to be probable of achievement. Income taxes Current taxes are provided for in accordance with the laws of the relevant taxing authorities. Deferred taxes are recognized when temporary differences exist between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities, including those for net operating loss carryforwards are measured using enacted statutory tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance if, in the opinion of management, it is more‑likely‑than‑not that some portion or all of the deferred tax assets will not be realized. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Income taxes The Group accounts for uncertainty in income taxes by recording an unrecognized tax benefit resulting from tax positions taken or expected to be taken in a tax return. Tax benefits are recognized when the Group believes that it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. A tax position that meets the more likely than not recognition threshold is measured as the largest amount of tax benefit that is greater than 50 percent likely of being realized upon settlement. The Group presents interest and penalties, if any, related to an underpayment of income taxes in income tax expense. The Group accounts for residual income tax effects in accumulated other comprehensive income due to a change in tax law or a change in judgment about realization of a |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
Prepaid Expense And Other Assets Current [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 3. PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other currents assets consisted of the following: As of December 31, 2020 2021 US$ US$ IPO distribution service and promotional and advertisement service receivables 5,360,831 3,588,851 Prepaid data and IT service expenses 1,315,469 2,226,216 Prepaid income taxes — 1,978,308 Rental and other deposits 391,625 1,885,272 Advances to employees 825,682 1,458,582 Prepaid professional service fees 998,235 1,225,020 Prepaid marketing expenses 402,724 1,073,965 Wealth management service fees receivables — 727,209 Input VAT receivables 1,174,934 529,985 Interest receivables from term deposits 429,454 117,392 Others 315,476 1,240,823 Total 11,214,430 16,051,623 |
PROPERTY, EQUIPMENT AND INTANGI
PROPERTY, EQUIPMENT AND INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2021 | |
Property Equipment And Intangible Assets [Abstract] | |
PROPERTY, EQUIPMENT AND INTANGIBLE ASSETS, NET | 4. PROPERTY, EQUIPMENT AND INTANGIBLE ASSETS, NET Property, equipment and intangible assets, net, consisted of the following: As of December 31, 2020 2021 US$ US$ Electronic Equipment 2,385,263 6,292,614 Office Equipment 235,894 391,223 Leasehold improvement 100,417 752,194 Software 159,939 367,853 Less: accumulated depreciation (1,252,714 ) (2,661,241 ) Property and equipment, net 1,628,799 5,142,643 Licenses 7,967,036 8,677,136 Trademark 125,285 128,281 Trading right — 128,212 Less: accumulated amortization (28,086 ) (44,620 ) Intangible assets, net 8,064,235 8,889,009 Total 9,693,034 14,031,652 Depreciation and amortization expenses for the years ended December 31, 2019, 2020 and 2021 were US$752,167, US$928,414 and US$1,338,968, respectively. The estimated amortization expenses for the above intangible assets for future years are as follows: Years ending December 31, Amortization for Intangible Assets US$ 2022 16,732 2023 16,732 2024 16,732 2025 16,732 2026 16,732 Total 83,660 |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
GOODWILL | 5. GOODWILL The changes in the carrying amount of goodwill for the years ended December 31, 2020 and 2021 are as follows: For the years ended, 2020 2021 US$ US$ Balance at the beginning of year 2,421,403 2,421,403 Increase in goodwill related to acquisitions during the year (Note 2) — 71,265 Impairment loss — — Balance at the end of year 2,421,403 2,492,668 As of December 31, 2020 and 2021, there had not been any accumulated goodwill impairment provided. |
LONG-TERM INVESTMENTS
LONG-TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Long Term Investments [Abstract] | |
LONG-TERM INVESTMENTS | 6. LONG‑TERM INVESTMENTS Equity securities without readily determinable fair value The Group had the following equity securities without readily determinable fair value: As of December 31, 2020 2021 US$ US$ TradeUP Acquisition Corp.("UPTDU") ( a) — 445,400 Fortune Rise Acquisition Corporation ("FRLAU") ( b) — 201,248 Shenzhen Guru Club Information Technology Group Co., LTD. ("Guru") ( c) 1,532,567 1,569,218 Shanghai Realize Investment Consulting Co., Ltd. ("Realize") ( d) — 941,531 Shanghai Yisong Consulting Management Co., LTD ("Yisong") ( e) — 407,997 UNext Group Limited ("UNext") ( f) 600,000 — Total 2,132,567 3,565,394 (a) UPTDU is a NASDAQ listed blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. In February and July 2021, the Group respectively acquired 230,000 founder shares (8,500 of which was forfeited in September 2021) and 44,040 private shares issued by UPTDU for a total purchase consideration of US$445,400. After the completion of UPTDU's initial public offering in July 2021, the shares owned by the Group take up 4.54% equity interests of UPTDU with no significant impacts. The founder shares and private shares are each subject to transfer restrictions pursuant to lock-up provisions. No observable price change has been identified and no fair value change was recorded for the year ended December 31, 2021. (b) FRLAU is a NASDAQ listed blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. In November 2021, the Group acquired 122,000 founder shares, 20,000 private shares and 60,000 representative shares issued by FRLAU for a total purchase consideration of US$201,248, which accounted for 1.57% equity interests of FRLAU with no significant impacts. The founder shares, private shares and representative shares are each subject to transfer restrictions pursuant to lock-up provisions. No observable price change has been identified and no fair value change was recorded for the year ended December 31, 2021. ( c ) In October 2017, the Group acquired 1.0% equity interests of Guru, formerly known as Tibet Gelonghui Information Technology Co., LTD., for a purchase consideration of US$1,536,972 (RMB10,000,000). Guru is principally engaged in information technology development, technical consultation and technical services. On January 1, 2018, the Group adopted ASU 2016-01 and ASU 2018-03 with no significant impacts noted. No observable price change has been identified and no fair value change was recorded for the years ended December 31, 2020 and 2021. The change of balance was foreign exchange difference. (d) In August 2021, the Group acquired 1.5% equity interests of Realize for a purchase consideration of US$926,183 (RMB6,000,000). Realize is principally engaged in ESOP advisory and management services. No observable price change has been identified and no fair value change was recorded for the years ended December 31, 2021. The change of balance was foreign exchange difference. 6. LONG‑TERM INVESTMENTS (Continued) Equity securities without readily determinable fair value (Continued) (e) In April 2021, the Group acquired 5% equity interests of Yisong for a purchase consideration of US$400,962 (RMB2,600,000). Yisong is principally engaged in consulting and financial advisory services. No observable price change has been identified and no fair value change was recorded for the year ended December 31, 2021. The change of balance was foreign exchange difference. (f) In December 2019, the Group acquired 0.6% equity interests of UNext for a purchase consideration of US$600,000. UNext is principally engaged in financing service. For the year ended December 31, 2021, due to the deterioration of the operating conditions of UNext, the Group had made full provision of US$600,000 for the impairment of this investment. . Available‑for‑sale securities The Group had the following available‑for‑sale securities: As of December 31, 2020 2021 US$ US$ Beijing Yingxin Network Technology Co., LTD ("Yingxin") ( g) 803,938 823,165 Alphalion Technology Holding Limited ("Alphalion") (h) 3,120,113 5,019,718 Total 3,924,051 5,842,883 ( g ) In September 2017, the Group acquired 2.91% equity interests of Yingxin for a purchase consideration of US$461,092 (RMB3,000,000). Yingxin is principally engaged in IT services, including systems, data or maintenance. The investment was classified as available-for-sale securities as the Group determined that the preferred shares were debt securities due to the redemption option available to the investor and measured the investment subsequently at fair value. There were no unrealized holding gains or losses recognized in other comprehensive income for the years ended December 31, 2019, 2020 and 2021. The change of balance in 2021 was foreign exchange difference. ( h ) In February 2019, the Group entered into a series of agreements to covert its short-term interest-free loans to Alphalion Technology Holding Limited and its affiliates amounted at US$ 3,060,113 6. LONG‑TERM INVESTMENTS (Continued) Equity method investments: The Group had the following Equity method investments: As of December 31, 2020 2021 US$ US$ Ocean Joy Holdings Limited ("Ocean Joy") ( i ) 424,333 — TradeUP Global Sponsor LLC ("Global Sponsor") (j) — 369,567 Total 424,333 369,567 ( i ) The Group prepaid US$462,276 (HK$3,600,000) in 2019 for the investment of 30% equity interests in Ocean Joy (including its sole subsidiary Tiger Brokers HK) which has a license approved by SFC in Hong Kong to provide securities and futures services. The investment was completed in May 2020. The Group acquired the remaining 70% equity interests in Ocean Joy on October 26, 2021. Prior to the acquisition, the Group accounted for the investment under the equity method. For the year ended December 31, 2020 and the period from January 1, 2021 through October 26, 2021, the Group had recorded an investment loss of US$40,625 and US$39,141, respectively. On October 26, 2021, the Group has obtained control over Ocean Joy and accounted for it as a consolidated subsidiary (Note 2). (j) In April 2021, the Group acquired 20% equity interests of Global Sponsor for a purchase consideration of US$454,560. Global Sponsor is the sponsor to TradeUP Global Corporation, a NASDAQ listed blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. The Group accounted for the investment using equity method accounting because the Group does not control the investee but has the ability to exercise significant influence over the operating and financial policies of the investee. For the year ended December 31, 2021, the Group recorded an investment loss of US$84,993. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
Accrued Liabilities And Other Liabilities [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 7. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consisted of the following: As of December 31, 2020 2021 US$ US$ Accrued payroll and welfare 12,099,447 14,760,788 Income and non-income based taxes payables 4,936,372 7,156,828 Accrued marketing expenses 6,251,009 3,748,010 Accrued professional expenses 2,471,569 1,749,229 Advanced from customers 429,531 1,748,167 Accrued data and IT service expenses 622,641 1,443,897 Amounts due to employees for sale of their shares exercised under the share incentive plan — 1,131,614 Others 327,632 2,007,644 Total 27,138,201 33,746,177 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 8. INCOME TAXES PRC Under the PRC Enterprise Income Tax Law (the “EIT Law”), the standard enterprise income tax rate for domestic enterprises and foreign invested enterprises is 25%. In addition, the EIT Law and its implementing rules permit qualified “High and New Technologies Enterprise” (the “HNTE”) to enjoy a reduced 15% EIT rate. Beijing U‑Tiger Business began to qualify as an HNTE under the EIT Law in 2017, subject to the tax rate of 15% with a valid period of three years starting from December 2017 and obtained a new certificate on December 2, 2020, subject to the tax rate of 15% with a valid period of three years, ending on December 31, 2022. Beijing Yixin Cayman Islands Under the current laws of the Cayman Islands, the Group is not subject to tax on its income or capital gains. New Zealand The Group’s subsidiaries, TBNZ and TFNZ are located in New Zealand and are subject to an income tax rate of 28% Hong Kong The Group’s subsidiaries, Up International, Tiger Technology, Tiger Brokers HK, Kastle limited, Tung Chi and Tiger Assets, are located in Hong Kong and are subject to a profits tax rate of 8.25% on assessable profits up to HK$2,000,000 and 16.5% on any part of assessable profits over HK$2,000,000. USA The Group’s subsidiaries, TradeUP Securities, US Tiger Securities, Tiger Fintech Holdings, Trading Front, Tradeup and Wealthn LLC, are located in the USA and are subject to Singapore The Group’s subsidiaries, Tiger SG and Tiger Brokers SG, are located in Singapore and are subject to an income tax rate of 17% for taxable income earned in Singapore. Australia The Group’s subsidiaries, TBAU, Tiger Services AU, Fleming Funds Management PTY Limited and Tiger investor Services PTY Limited, are located in Australia and are subject to an income tax rate of 27.5% for taxable income earned in Australia. 8. INCOME TAXES (Continued) The components of income (loss) before income taxes are as follows: For the years ended December 31, 2019 2020 2021 US$ US$ US$ The Cayman Islands 946,035 (1,302,817 ) 2,442,082 PRC 6,117,021 20,551,832 21,320,470 International (16,368,280 ) 2,780,777 (4,708,080 ) Total income (loss) before income taxes (9,305,224 ) 22,029,792 19,054,472 The current and deferred portions of income tax expense (benefit), all of which was incurred outside the Cayman Islands, included in the consolidated statements of comprehensive income (loss) were as follows: For the years ended December 31, 2019 2020 2021 US$ US$ US$ Current tax expense 2,859,774 1,077,877 5,026,081 Deferred tax expense (benefit) (6,215,140 ) 1,772,670 (662,310 ) Income tax expense (benefit) (3,355,366 ) 2,850,547 4,363,771 The related enterprise income tax law also imposes a withholding income tax of 10% on dividends distributed by a foreign investment enterprise ("FIE") to its immediate holding company outside of the PRC, if such immediate holding company is considered as a non-resident enterprise without any establishment or place within the PRC or if the received dividends have no connection with the establishment or place of such immediate holding company within the PRC, unless such immediate holding company's jurisdiction of incorporation has a tax treaty with the PRC that provides for a different withholding arrangement. The Cayman Islands, where the Company is incorporated, does not have such tax treaty with the PRC. According to the arrangement between Mainland China and HKSAR on the Avoidance of Double Taxation and Prevention of Fiscal Evasion in August 2006, dividends paid by an FIE in Mainland China to its immediate holding company in HKSAR will be subject to withholding tax at a rate of no more than 5% (if the foreign investor owns directly at least 25% of the shares of the FIE). Cash dividends paid by a HKSAR incorporated company to a non-HKSAR tax resident shareholder that holds all of the shares in the HKSAR company are not subject to HKSAR withholding tax. Dividends paid from US sources to foreign corporations are subject to US withholding tax at a rate of 30% or a lower rate under an applicable tax treaty. The British Virgin Islands, where the parent company of US companies is incorporated, does not have such tax treaty with the US. The Cayman Islands operates a system of indirect taxation. No direct taxes are imposed on net or gross income or gains of individuals or companies, nor are there any withholding taxes, estate duties, inheritance, or gift taxes. Cash dividends paid by a New Zealand incorporated company to a non-New Zealand tax resident shareholder that holds all of the shares in the New Zealand company are subject to New Zealand withholding tax at the rate of 0% if those dividends are fully imputed. If any part of a cash dividend paid to such a shareholder is not fully imputed then New Zealand withholding tax is imposed at the rate of 15% on that part of the dividend, although that rate is reduced to 5% if the shareholder is able to take the benefit of Article 10 of the New Zealand-Singapore Double Tax Agreement. The Company does not intend to have any of its subsidiaries located in the PRC, HKSAR, the USA, the Cayman Islands and New Zealand distribute any undistributed profits of such subsidiaries in the foreseeable future, but rather expects that such profits will be indefinitely reinvested by such subsidiaries for their respective local operations. Accordingly, no withholding tax was recorded as of December 31, 2020 and 2021. Undistributed earnings of such subsidiaries that are not distributed amounted to US$33.1 million and US$57.9 million and unrecognized deferred tax liability related to such earning amounted to US$1.7 million and US$4.5 million as of December 31, 2020 and December 31, 2021, respectively. The Group’s subsidiaries and consolidated VIEs located in the PRC, HKSAR, New Zealand, the USA, Singapore and other jurisdictions are open to tax examination for the period from its inception until the years ended December 31, 2021. 8. INCOME TAXES (Continued) The significant components of the Group’s deferred tax assets and liabilities were as follows: As of December 31, 2020 2021 US$ US$ Deferred tax assets Accrued expenses — 64,103 Allowance for doubtful accounts 25,704 142,385 Long-term investments 38,314 39,230 Advertising expense carryforwards 877,424 1,081,850 Net operating loss carryforwards 13,407,157 15,101,309 Withholding tax credit carryforwards 1,106,569 1,161,221 Lease liabilities 1,799,483 1,511,324 Total deferred tax assets 17,254,651 19,101,422 Less: valuation allowance (4,000,159 ) (5,224,095 ) Deferred tax assets, net of valuation allowance 13,254,492 13,877,327 Deferred tax liabilities Right-of-use assets 1,799,483 1,511,324 Long term investments 86,042 88,098 Intangible assets 1,449,000 1,535,965 Financial instruments held, at fair value — 19,545 Total deferred tax liabilities 3,334,525 3,154,932 Deferred tax assets, net 9,919,967 12,258,360 Deferred tax liabilities, net — 1,535,965 The movement of the valuation allowance is as follows: For the years ended December 31, 2019 2020 2021 US$ US$ US$ Balance at the beginning of the year 2,931,196 4,888,240 4,000,159 Additions of valuation allowance 2,573,942 1,775,887 2,814,445 Reversals of valuation allowance — (2,802,174 ) (1,628,176 ) Foreign currency translation adjustment (616,898 ) 138,206 37,667 Balance at the end of the year 4,888,240 4,000,159 5,224,095 A valuation allowance is provided against deferred tax assets when the Group determines that it is more-likely-than-not that the deferred tax assets will not be realized in the future. The Group considers positive and negative evidence on each individual subsidiary basis to determine whether some portion or all of the deferred tax assets will be more-likely-than-not realized. As of December 31, 2020 and 2021, the Group had net operating loss carryforwards of US$64,430,676 and US$83,597,429, respectively. 8. INCOME TAXES (Continued) Management assessed the positive and negative evidence in certain entities in the PRC, United States, New Zealand and Singapore, and estimated they will have sufficient future taxable income to utilize the existing deferred tax assets. Significant objective positive evidence included the significant growth in customer trading activities in the New Zealand entities where net operating loss carryforwards could be carried forward indefinitely, net operating loss carryforwards in the United States generated after 2017 that can be carried forward indefinitely, and net operating loss carryforwards in Singapore that can be carried forward indefinitely. Net operating loss The expiration status of net operating loss carryforwards as of December 31, 2021 is listed below. Expiration year US$ 2022 7,170 2023 434,585 2024 4,222,851 2025 9,112,742 2026 through 2031 40,608,576 Indefinitely 29,211,505 As of December 31, 2020 and 2021, the Group had advertising expenses carryforwards of US$4,712,189 and US$4,598,999, respectively, which can be carried forward indefinitely. As of December 31, 2020 and 2021, the Group had withholding tax credit carryforwards of US$1,106,569 and US$1,161,221, respectively, Among the withholding tax credit carryforwards as of December 31, 2021, US$984,315 will expire, by 2025 while US$176,906 will expire in 2026. The realizability of deferred tax assets requires significant judgment associated with evaluation of past and projected financial performance which incorporates projections of future taxable income by tax-paying component. In assessing the realizability of deferred tax assets, management considered the future taxable earnings and the expected timing of the reversal of temporary differences. As of December 31, 2020 and 2021 valuation allowances of US$3,867,639 and US$4,614,648 respectively, were provided for net operating loss carryforwards totaled US$20,695,157 and US$27,152,139, while the remaining net operating loss carryforwards of US$43,735,519 and US$56,445,290 is expected to be utilized prior to expiration considering future taxable income for respective tax-paying component. Deferred tax assets related to net operating loss carryforwards of US$4,607,181 without a valuation allowance were generated in 2021. Due to changes in judgment about the realizability of deferred tax assets in 2021, valuation allowance increases of US$475,079 and decreases of US$405,767 were recorded in 2021. The Group realized a benefit of utilizing DTAs of US$171,363 in 2021 that were offset with a valuation allowance 8. INCOME TAXES (Continued) Reconciliations between the income tax expense (benefit) computed by applying the PRC For the years ended December 31, 2019 2020 2021 US$ US$ US$ Income (loss) before income taxes (9,305,224 ) 22,029,792 19,054,472 PRC statutory tax rate 25 % 25 % 25 % Income tax at statutory income tax rate (2,326,306 ) 5,507,448 4,763,618 Effect of income tax rate difference in other jurisdictions 124,406 (773,402 ) 596,978 Effect of preferential tax rates (2,673,841 ) 1,837,667 (1,735,439 ) Super deduction of research and development expense (2,479,428 ) (3,607,755 ) (4,476,114 ) Effect of expenses not deductible for income tax purposes 1,425,861 912,876 4,028,459 Changes in valuation allowance 2,573,942 (1,026,287 ) 1,186,269 Income tax expense (benefit) (3,355,366 ) 2,850,547 4,363,771 |
CONVERTIBLE BOND PAYABLE
CONVERTIBLE BOND PAYABLE | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE BOND PAYABLE | 9. CONVERTIBLE BOND PAYABLE 2021 Series A1 Note On February 25, 2021, the Company entered into the Convertible Note Purchase Agreement (the “Agreement”) with a group of investors (the “Investors”) to issue its convertible bonds with an aggregate principal amount of US$44 million to the Investors through a private placement (2021 Series A1 Note). The convertible notes issued will mature in 2026 unless previously converted. The 2021 Series A1 Note bears annual interest rate at 1% from the issuance date until the outstanding principal amount is fully repaid. The Company elected the fair value option for the 2021 Series A1 Note. The Company adopted binomial-lattice option valuation model to estimate the fair value of the convertible bonds with the assistance of an independent third-party appraiser and the following assumptions for each applicable period which took into account variables such as share price, volatility, expected dividend, risk free interest rate and bond yield. Changes in fair value of convertible bonds are recognized in other income in the consolidated statements of comprehensive income (loss) during the year, with the exception of changes in fair value due to instrument-specific credit risk which are required to be recognized in accumulated other comprehensive income (loss). On September 27 and 30, 2021, the Company and the Investors entered into an amendment agreement with a cash conversion feature added into the Agreement. Upon conversion, the Company will pay or deliver, as the case may be, cash, ADSs, or a combination of cash and ADSs, at the Company’s election. The Company accounted for the amendment as an extinguishment of the previous bonds. The changes in the fair value of the convertible bonds before and after the modification was recorded in other income in the consolidated statements of comprehensive income (loss) during the year. As the conversion option may be settled entirely or partially in cash at the Company’s option, the Company separated the 2021 Series A1 Note into liability and equity components in accordance with ASC Subtopic 470-20, Debt with Conversion and Other Options. The carrying amount of the liability component was calculated by measuring the fair value of a similar liability that did not have an associated conversion feature. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the initial proceeds and recorded as additional paid-in capital. The resulting discount was accreted at an effective interest rate of 5.4% over the period from modification date to the maturity date. 9. CONVERTIBLE BOND PAYABLE (Continued) 2021 Series A2 Note On May 5, 2021, the Company issued US$21 million convertible bonds (2021 Series A2 Note). The convertible notes to be issued will mature in 2026 unless previously converted. The Bond bears annual interest rate at 1% from the issuance date until the outstanding principal amount is fully repaid. The 2021 Series A2 Note did not have any embedded conversion option which required to be bifurcated and separately accounted for as a derivative under ASC 815 2021 Series B Note On April 12, 2021, a consortium of institutional investors subscribed to purchase convertible notes in an aggregate principal amount of US$90 million through a private placement (2021 Series B Note). The convertible notes issued will mature in 2026 unless previously converted. The Bond bears annual interest rate at 1% from the issuance date until the outstanding principal amount is fully repaid. The 2021 Series B Note did not have any embedded conversion option which required to be bifurcated and separately accounted for as a derivative under ASC 815 Derivatives and Hedging, nor do they contain a cash conversion feature. The Company accounted for the 2021 Series B Note in accordance with ASC 470 Debt, as a single debt instrument and subsequently measured at amortized cost. No BCF was recognized as the set conversion price for the 2021 Series B Note is greater than the fair value of the ADSs price at date of issuance. US$ 2021 Series A1 Note US$ 44,000,000 1.00% due to 2026 37,148,318 2021 Series A2 Note US$ 21,000,000 1.00% due to 2026 21,120,487 2021 Series B Note US$ 90,000,000 1.00% due to 2026 90,572,871 148,841,676 |
ORDINARY SHARES
ORDINARY SHARES | 12 Months Ended |
Dec. 31, 2021 | |
Common Stock Number Of Shares Par Value And Other Disclosures [Abstract] | |
ORDINARY SHARES | 10. ORDINARY SHARES The Company’s Amended and Restated Memorandum of Association authorizes the Company to issue 4,662,388,278 Class A ordinary shares and 337,611,722 Class B ordinary shares with a par value of US$0.00001 per share. The shareholders of Class A ordinary shares and Class B ordinary shares have the same rights except for the voting and conversion rights. Each Class A ordinary share is entitled to one vote and is not convertible into Class B ordinary share under any circumstance; and each Class B ordinary share is entitled to twenty votes and will be automatically converted into one Class A ordinary share under certain circumstances. As of June 7, 2018, upon the Re-domiciliation described in Note 1, the Company had 33,170,968 Class A ordinary shares and 410,643,948 Class B ordinary shares issued and outstanding, respectively. In June 2018, the Company further issued 2,480,000 Class A ordinary shares and 107,863,347 Class B ordinary shares. In November 2018, 180,895,573 Class B ordinary shares were redesignated into Class A ordinary shares. As of December 31, 2018, the Company had 216,546,541 Class A ordinary shares and 337,611,722 Class B ordinary shares issued and outstanding, respectively. In March 2019, the Group completed its initial public offering and received net proceeds of US$114,765,901, the Company newly issued 237,375,000 Class A ordinary shares (representing 15,825,000 ADSs), including 13,125,000 Class A ordinary shares issued through a private placement from an existing shareholder, IB Global Investment LLC, an affiliate of Interactive Brokers, and 29,250,000 Class A ordinary shares issued from exercising the over-allotment option by the underwriters. Upon the completion of the initial public offering, 1,210,906,902 outstanding Series Angel, A, B-1, B-2, B-3 and C preferred shares were converted into 1,210,906,902 Class A ordinary shares on a one-for-one basis, and 18,597,738 outstanding Series C-1 preferred shares were converted into 18,612,084 Class A ordinary shares, reflecting the anti-dilution adjustments to the conversion rate based on the initial public offering price of US$8.00 per ADS. As of December 31, 2019, the Company had 1,777,218,449 Class A ordinary shares and 337,611,722 Class B ordinary shares issued and outstanding, respectively. As of December 31, 2020, the Company had 1,794,357,434 Class A ordinary shares and 337,611,722 Class B ordinary shares issued and outstanding, respectively. On June 10, 2021, the Company completed a follow-on public offering, issued 112,125,000 Class A ordinary shares for a total consideration of US$175.4 million after deducting the underwriting discounts and commissions and offering expenses. In March, August and December 2021, 22,500,000, 45,000,000 and 48,000,000 Class B ordinary shares were converted into Class A ordinary shares, respectively. As of December 31, 2021, the Company had 2,059,987,139 Class A ordinary shares and 222,111,722 Class B ordinary shares issued and outstanding, respectively. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | 11. FAIR VALUE MEASUREMENT Measured at fair value on a recurring basis The Company measures financial instruments held, at fair value and long-term available-for-sale securities on a recurring basis. The fair value of the Company’s financial instruments held, at fair value The Group measured the fair value of its long-term available-for-sale securities using market approach and discounted cash flow approach and considered those as Level 3 measurement because the Group used unobservable inputs to determine their fair values. As of December 31, 2020 and 2021, recent transaction price was used of market approach and discounted cash flow approach. The unobservable inputs were discounts for lack of marketability for such market approach and discount rates for discounted cash flow approach as of December 31, 2020 and 2021. Significant increases or decreases in any of those inputs in isolation would result in a significant change in fair value measurement. 11. FAIR VALUE MEASUREMENT (Continued) Measured at fair value on a recurring basis (Continued) As of December 31, 2020 and 2021, information about inputs for the fair value measurements of the Group’s assets that were measured at fair value on a recurring basis in periods subsequent to their initial recognition is as follows: As of December 31, 2020 Quoted prices in active markets for identical instruments (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (level 3) Total balance US$ US$ US$ US$ Financial instruments held, at fair value Funds 283,764 — — 283,764 Corporate bonds 263,750 — — 263,750 Stock 15,022 — — 15,022 Long‑term available-for-sale securities — — 3,924,051 3,924,051 Total 562,536 — 3,924,051 4,486,587 As of December 31, 2021 Quoted prices in active markets for identical instruments (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (level 3) Total balance US$ US$ US$ US$ Financial instruments held, at fair value Funds 419,503 — 1,971,872 2,391,375 Stock 1,498,706 — — 1,498,706 Derivative — 12,906 — 12,906 Long‑term available-for-sale securities — — 5,842,883 5,842,883 Total 1,918,209 12,906 7,814,755 9,745,870 During the years ended December 31, 2020 and 2021, there were no transfers between level 1, level 2 and level 3 categories. 11. FAIR VALUE MEASUREMENT (Continued) Measured at fair value on a recurring basis(Continued) The movements of Level 3 fair value measurements for the years ended December 31, 2020 and 2021 are as follows: US$ As of January 1, 2020 3,980,806 Additions during the year — Net unrealized gains 41,149 Impairment (150,978 ) Foreign currency translation adjustment 53,074 As of December 31, 2020 3,924,051 Additions during the year 1,000,000 Net unrealized gains 2,871,477 Impairment — Foreign currency translation adjustment 19,227 As of December 31, 2021 7,814,755 For the year ended December 31, 2020, the unrealized gains included US$41,149 recognized in other comprehensive income (loss) in the consolidated statements of comprehensive income (loss). For the year ended December 31, 2021, the unrealized gains included US$1,899,605 recognized in other comprehensive income (loss) in the consolidated statements of comprehensive income (loss), and US$971,872 recognized in other income in the consolidated statements of comprehensive income (loss).The Group recognized nil, US$150,978 and nil impairment loss related to the long-term available-for-sale securities as an offset of other income for the years ended December 31, 2019, 2020 and 2021. Measured at fair value on a non‑recurring basis The Group measures the equity securities without readily determinable fair value at fair value on a nonrecurring basis whenever there is an impairment indicator or any changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The Group recognized US$755,524, nil and US$600,000 impairment loss related to the long-term equity securities without readily determinable fair value in other income for the years ended December 31, 2019, 2020 and 2021. The Group measured the value of its share options and restricted share units granted to employees and management at fair value to determine the share based compensation expenses on each of the grant date. The fair value was determined using models with significant unobservable inputs (Level 3 inputs). The Group measures goodwill at fair value on a nonrecurring basis and performs a goodwill impairment test annually or more often if event occur or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carry amount. The Group measured acquired intangible assets using the income approach‑discounted cash flow method when events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. The Group did not recognize any impairment loss related to other intangible assets arising from acquisitions during the years ended December 31, 2020 and 2021. The fair value of goodwill is determined using discounted cash flows, and an impairment loss will be recognized for any excess in the carrying value of goodwill over the implied fair value of goodwill. The Group did not recognize any impairment loss related to goodwill during the years ended December 31, 2020 and 2021. |
SHARE BASED COMPENSATION
SHARE BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
SHARE BASED COMPENSATION | 12. SHARE‑BASED COMPENSATION The Group implemented a share incentive plan in June 2014 (the “2014 Plan”) which allows the Group to grant options and restricted share units to employees, directors and consultants of the Group. Under the 2014 Plan, the maximum aggregate number of shares that may be issued shall not exceed 187,697,314 ordinary shares. In relation with the Re‑domiciliation, the Company adopted the 2018 share incentive plan, which was approved by the board of directors of the Company to replace the previous 2014 share incentive plan created in June 2014. The terms of the 2018 share incentive plan are substantially the same as those under the 2014 share incentive plan, except that the number of options and restricted share units and exercise price were adjusted on a diluted basis in accordance to the shares number of the Company upon the Re‑domiciliation. The awards granted and outstanding under the 2014 share incentive plan survived and remained effective and binding under the 2018 share incentive plan. In December 2018, the Board of Directors of the Company approved to expand the aggregate number of shares that may be issued to not exceed 254,697,314 ordinary shares. In March 2019, the Group implemented the 2019 Performance Incentive Plan (the “2019 Plan”), which was approved by the board of directors of the Company to grant a maximum number of 52,000,000 ordinary shares under the 2019 Plan. In December, 2020, 10,429,305 treasury stock repurchased under the Share Repurchase Program were approved by the board of directors of the Company to increase the shares issuable under 2019 Plan from 52,000,000 shares to 62,429,305 shares. In September, 2021, 36,534,437 Class A ordinary shares issued under the evergreen plan were approved by the board of directors of the Company to increase the award pool under 2019 Plan from 62,429,305 shares to 98,963,742 shares. Share options The Company has granted service-based share options, which vest and become exercisable in three installments, with 50% of the total number of ordinary shares subject to such option becoming vested and exercisable on the second anniversary of the vesting commencement date, and 25% becoming vested and exercisable on each of the third and fourth anniversary of the vesting commencement date. The grant date of the share options is the vesting commencement date. The Company also has granted performance-based share options with performance conditions included semi-annual performance results and operating and financial results of the Company. The performance-based share options will commence to vest once the performance conditions are satisfied. Upon termination of employment, all the options that have not been vested will be forfeited. The terms of the options shall not exceed ten years from the date of grant. In addition, the Company has the right to purchase: 1. upon termination for death, disability or retirement, the employees’ vested and/or exercised options at a price of 50% of the fair market value as of the latest practicable date prior to the termination, within 6 months from the employees’ termination; 2. upon dismissal for cause, all the employees’ vested and/or exercised option at a purchase price equals to the exercise price the employees paid to the Company; 3. upon other terminations of employment, the employees’ vested and/or exercised option at a price of 30% of the fair market value as of the latest practicable date prior to the termination, within 6 months from the employees’ termination. 12. SHARE ‑BASED COMPENSATION (Continued) Share options (Continued) As the terms permit the Company to purchase these share options at an amount that is equal to or less than the fair value, the Company evaluates the classification for each awards upon the occurrence of each employment termination. The termination of employees have been insignificant for all periods presented. As of December 31, 2020 and 2021, the share option award is classified as equity. The Group calculated the estimated fair value of the options on the respective grant dates using the binomial‑lattice option valuation model with the following assumptions for each applicable period which took into account variables such as volatility, dividend yield, and risk‑free interest rate, the probability that the option will be exercised prior to the end of its contractual life, and the probability of termination or retirement of the option holder in computing the value of the option. The fair value of the options granted was estimated on the date of grant that prepared by the management with the assistance of an independent third‑party appraiser, and was determined using a binomial model with the following assumptions: Fair value per ordinary share at grant date ( 1) Exercise price ( 2) Expected volatility ( 3) Contractual life ( 4) Risk-free interest rate ( 5) Expected dividend ( 6) US$ US$ Granted in 2014 0.008 0.00001 40% 10 years 3.0-3.1% 0.0 Granted in 2015 0.008-0.016 0.00001 39% 10 years 2.5-3.1% 0.0 Granted in 2016 0.019-0.030 0.00001 39% 10 years 2.3-3% 0.0 Granted in 2017 0.034-0.059 0.00001-0.040 39% 10 years 3.0-3.2% 0.0 Granted in 2018 0.147-0.405 0.0001-0.200 35-38% 10 years 3.1-3.8% 0.0 Granted in 2019 0.274-0.484 0.00001-0.274 37-39% 10 years 3.0-3.4% 0.0 Granted in 2021 0.2184 1.1853 55% 10 years 0.88% 0.0 (1) Fair value of underlying ordinary shares. Prior to the completion of initial public offering, the estimated fair value of the ordinary shares underlying the options as of the respective grant dates was determined based on a valuation with the assistance of a third party appraiser. The fair value of the underlying ordinary shares is determined based on the closing market price of the share after the completion of initial public offering in March 2019. (2) Exercise price. The exercise price of the options was determined by the Company’s Board of Directors. (3) Volatility. The volatility of the underlying ordinary shares was estimated based on the historical share price movement of the comparable companies for the period of time close to the expected time to exercise. (4) Contractual life. The contractual life of the share options was the period between the grant date and the expiry date. (5) Risk free rate. Risk free rate is estimated based on market yield of U.S. Sovereign Curve with maturity close to the share options as of the valuation date, plus country spread. (6) Expected dividend. The Company does not expect to declare any dividends in the foreseeable future. 12. SHARE‑BASED COMPENSATION (Continued) Share options (Continued) A summary of the Company’s share option activities for the years ended December 31, 2020 and 2021 is presented below: Number of share options Weighted average exercise price Weighted average remaining contractual life Aggregate intrinsic value US$ Years US$ Outstanding as of January 1, 2020 95,933,244 0.05223 8.46 17,694,050 Cancelled to grant RSUs (7,660,000 ) 0.27400 Exercised (16,688,995 ) 0.00031 Forfeited (11,840,000 ) 0.09374 Outstanding as of December 31, 2020 59,744,249 0.03005 7.50 29,829,248 Granted 750,000 1.18530 Exercised (15,767,275 ) 0.03322 Forfeited (370,185 ) 0.04544 Outstanding as of December 31, 2021 44,356,789 0.04833 6.77 12,375,711 The aggregate intrinsic value is calculated as the difference between the exercise price of the awards and the fair value of the underlying ordinary shares at each reporting date, for those awards that had exercise price below the estimated fair value of the relevant ordinary shares. The Group recognized share-based compensation expenses with no income tax benefit relating to the share options of US$2,239,136, US$1,701,132 and US$4,272,939 for the years ended December 31, 2019, 2020 and 2021, respectively. As of December 31, 2021, total unrecognized share-based compensation expenses relating to these share options was US$9,455,252. The expense is expected to be recognized over a weighted-average period of 3.6 years. RSUs On April 30, 2020, the Company cancelled 7,660,000 stock options and 900,000 RSUs granted historically, and granted 8,560,000 RSUs to employee on May 1, 2020. Those restricted shares vest over a period of 3 to 3.5 years. The cancellation of stock options and RSUs accompanied by the concurrent grant of a replacement RSUs is accounted for as a modification. The incremental share-based compensation of this replacement is US$0.8 million. Total amount of unrecognized share-based compensation of unvested options and RSUs and incremental share-based compensation is US$1.7 million. 12. SHARE‑BASED COMPENSATION (Continued) RSUs (Continued) A summary of the Company’s RSU activities for the years ended December 31, 2020 and 2021 is presented below: Number of Units Weighted-Average Grant-Date Fair Value US$ Unvested as of January 1, 2020 28,406,980 0.34 Granted 44,179,590 0.23 Cancelled to grant new RSUs (900,000 ) 0.26 Exercised (449,990 ) 0.23 Forfeited (1,410,000 ) 0.20 Unvested as of December 31, 2020 69,826,580 0.28 Granted 21,259,735 0.97 Exercised (22,237,430 ) 0.34 Forfeited (3,032,440 ) 0.34 Unvested as of December 31, 2021 65,816,445 0.48 The Group recognized share-based compensation expenses with no income tax benefit relating to RSUs (including the expense upon medication) of US$1,823,464, US$4,353,480 and US$9,097,438 for the years ended December 31, 2019, 2020 and 2021, respectively. As of December 31, 2021, total unrecognized share-based compensation expenses relating to these RSUs was US$22,309,037. The expense is expected to be recognized over a weighted average period of 2.3 years. |
NET INCOME (LOSS) PER SHARE
NET INCOME (LOSS) PER SHARE | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
NET INCOME (LOSS) PER SHARE | 13. NET INCOME (LOSS) PER SHARE The following table sets forth the computation of basic and diluted net income (loss) per share for the following years: For the years ended December 31, 2019 2020 2021 US$ US$ US$ Numerator: Net income (loss) attributable to ordinary shareholders of UP Fintech Holding Limited (6,589,431 ) 16,064,793 14,690,701 Less: The dilutive effect arising from the convertible bonds — — 2,900,645 Numerator for diluted net income (loss) per ordinary share (6,589,431 ) 16,064,793 11,790,056 Denominator: Weighted average shares used in calculating net income (loss) per ordinary share Basic 1,751,784,176 2,117,904,025 2,205,186,257 Effect of dilutive securities: Dilutive effect of share options — 25,462,481 17,457,965 Dilutive effect of restricted shares units — 18,865,819 32,613,976 Dilutive effect of convertible bonds — — 80,459,006 Denominator for diluted net income (loss) per ordinary share 1,751,784,176 2,162,232,325 2,335,717,204 Net income (loss) per ordinary share Basic (0.00 ) 0.01 0.01 Diluted (0.00 ) 0.01 0.01 The following table summarizes potential ordinary shares outstanding excluded from the computation of diluted net loss per ordinary share for the year ended December 31, 2019, because their effect is anti-dilutive: For the year ended December 31,2019 Share issuable upon exercise of share options 95,933,244 Share issuable upon exercise of RSUs 28,406,980 |
Treasury Stock
Treasury Stock | 12 Months Ended |
Dec. 31, 2021 | |
Treasury Stock [Abstract] | |
TREASURY STOCK | 14. TREASURY STOCK On March 25, 2020, the Company’s Board of Directors approved a share repurchase program. Under the terms of the approved program (“Share Repurchase Program”), the Company may repurchase US$20 million worth of its outstanding ADSs from time to time for a period not to exceed twelve months. As of December 31, 2020 and 2021, the Company had repurchased an aggregate of 10,429,305 ordinary shares under the Share Repurchase Program in the open market, at an average price of US$3.13 per ADS, or US$0.21 per share for a total consideration of US$2.2 million. |
RELATED PARTY BALANCES AND TRAN
RELATED PARTY BALANCES AND TRANSACTIONS | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY BALANCES AND TRANSACTIONS | 15. RELATED PARTY BALANCES AND TRANSACTIONS As of December 31, Name Relationship with the Group 2020 2021 US$ US$ Amounts due from related parties: Alphalion Technology Holding Limited and its affiliates ("Alphalion Group") (1) Long-term available-for-sale investee 1,032,211 1,046,190 Fast Connection Limited (2) Entity controlled by a principal shareholder of the Company 1,500,000 — Ocean Joy and its subsidiary (3) Equity method investee 1,044,738 — Individual directors and executive officers (4) Directors or officers of the Group 1,488,273 1,901,681 Subtotal 5,065,222 2,947,871 Receivables from brokers, dealers, and clearing organizations: Interactive Brokers LLC (5) Under common control with a principal shareholder of the Company 761,681,403 804,639,024 Ocean Joy and its subsidiary (6) Equity method investee 2,637,529 — Subtotal 764,318,932 804,639,024 (1) The amount represents short-term, interest-free loans provided to Alphalion Group to facilitate its daily operational cash flow needs and prepaid IT service fee as of December 31, 2020 and 2021. (2) The amount represents the Group's prepaid consulting fee to Fast Connection Limited as of December 31, 2020. Because of the resignation of the director assigned by a principal shareholder of the Company which can control Fast Connection Limited in the beginning of 2021, Fast Connection Limited was no longer considered a related party in 2021. (3) The amounts of US (4) The Group provided brokerage services and margin loans to its individual directors and executive officers and their spouses during its ordinary courses of business. The amounts represent receivables from directors and executive officers of the Group as of December 31, 2020 and 2021 respectively. (5) The amount represents the Group’s customer deposit, revenue receivables and securities lending transactions from the Company's trade execution partner and principal shareholder, Interactive Brokers. (6) The amount represents the Group’s customer deposit and revenue receivables deposited in Tiger Brokers HK as the execution partner. 15. RELATED PARTY BALANCES AND TRANSACTIONS (Continued) As of December 31, Name Relationship with the Group 2020 2021 US$ US$ Payables to brokers, dealers and clearing organizations-Related parties: Interactive Brokers LLC (7) Under common control with a principal shareholder of the Company 218,563,624 170,338,199 Ocean Joy and its subsidiary (8) Equity method investee 10,496 — Subtotal 218,574,120 170,338,199 Amount due to related parties: Individual directors and executive officers (9) Directors or officers of the Group — 2,039,287 Subtotal — 2,039,287 Convertible bonds -Related parties: Xiaomi Corporation and its affiliates (10) Principal shareholder of the Company — 25,330,766 Subtotal — 25,330,766 (7) The amount represents the Group’s margin and cash collaterals received from securities borrowing transactions for the Company's trade execution partner and principal shareholder, Interactive Brokers. (8) The amount represents the Group’s service fee payables to Ocean Joy Holdings Limited and its subsidiary. (9) The amounts represent the cash account balance of directors and executive officers. (10) The amount represents the convertible bonds balance issued to Xiaomi Corporation and its affiliates. 15. RELATED PARTY BALANCES AND TRANSACTIONS (Continued) Transactions with related parties: For the years ended December 31, Name Relationship with the Group 2019 2020 2021 US$ US$ US$ Xiaomi Corporation and its affiliates (11) Principal shareholder of the Company (517,134 ) (397,590 ) — Alphalion Group (12) Long-term available-for-sale investee 617,500 — (94,333 ) Fast Connection Limited (13) Entity controlled by a principal shareholder of the Company — (700,000 ) — Ocean Joy and its subsidiary (14) Equity method investee — 16,173 28,350 Ocean Joy and its subsidiary (15) Equity method investee — (51,446 ) (686,576 ) Interactive Brokers LLC (16) Under common control with a principal shareholder of the Company 38,089,982 62,704,986 73,293,370 Interactive Brokers LLC (17) Under common control with a principal shareholder of the Company (2,102,385 ) (7,099,254 ) (16,823,850 ) Guangzhou 88 (18) Entity controlled by management of the Company’s subsidiary (755,524 ) — — Individual directors and executive officers (19) Directors or officers of the Group 79,949 138,661 Xiaomi Corporation and its affiliates (20) Principal shareholder of the Company — — 2,860,123 Xiaomi Corporation and its affiliates (21) Principal shareholder of the Company — — (350,519 ) (11) The amounts represent the purchase of marketing services from Xiaomi Corporation and its affiliates for the years ended December 31, 2019, 2020 and 2021, respectively. (12) The amounts represent the sale of a Group's subsidiary to Alphalion Group for a gain of US$617,500 in 2019 with a consideration for the sale of US$106,105 and purchase of IT services from Alphalion Group in 2021. (13) The amounts represent consulting fees paid to Fast Connection Limited for the years ended December 31, 2019, 2020, respectively. Because of the resignation of the director assigned by a principal shareholder of the Company which can control Fast Connection Limited in the beginning of 2021, Fast Connection Limited was no longer considered a related party in 2021. (14) The amounts represent the commissions and interest income earned from Tiger Brokers HK for periods from June to December of 2020 and January to October of 2021. (15) The amounts represent the execution and clearing fees paid to Tiger Brokers HK for periods from June to December of 2020 and January to October of 2021. 15. RELATED PARTY BALANCES AND TRANSACTIONS (Continued) Transactions with related parties: (Continued) (16) The amounts represent the commissions, financing service fees, interest income and other revenues earned from Interactive Brokers for the years ended December 31, 2019, 2020 and 2021, respectively, netting off interest expense incurred from margin, security borrowing and lending business. (17) The amounts represent the execution and clearing fees paid to Interactive Brokers for the years ended December 31, 2019, 2020 and 2021, respectively. (18) The amounts represent the Company's impairment loss on equity investment in Guangzhou 88. The Company has converted its short-term, interest-free loans provided to Guangzhou 88 into equity interests and measured at long-term equity securities without readily determinable fair value. Guangzhou 88 was a software development company that principally engaged in providing investor events information. In the year of 2019, the equity investment was fully impaired due to the operating difficulties of Guangzhou 88 which subsequently dissolved in February 2020. (19) The amounts represent the commissions and interest income earned by providing brokerage services and margin loans to the individual directors and executive officers during its ordinary courses of business for the years ended December 31, 2019, 2020 and 2021, respectively. (20) The amount represents the changes in the fair value of the convertible bonds issued to Xiaomi Corporation and its affiliates during the year (Note 9) (21) The amount represents the interest expense of the convertible bonds issued to Xiaomi Corporation and its affiliates accreted at an effective interest rate of 5.4% for the year ended December 31, 2021 (Note 9). |
COLLATERALIZED TRANSACTIONS
COLLATERALIZED TRANSACTIONS | 12 Months Ended |
Dec. 31, 2021 | |
Collateralized Financings [Abstract] | |
COLLATERALIZED TRANSACTIONS | 16. COLLATERALIZED TRANSACTIONS The Group accepted collateral in connection with client margin loans and security borrowing and lending transactions for consolidated account customers. The Group monitors required margin and collateral level on a daily basis in compliance with regulatory and internal guidelines and controls its risk exposure through financial, credit, legal reporting system. Under applicable agreements, customers are required to deposit additional collateral or reduce holding positions, when necessary to avoid forced liquidation of their positions. Pursuant to the authorization obtained from margin clients, the Group further repledges the collaterals to other financial institutions to obtain the funding for the margin transactions. Margin loans are extended to customers on demand and are not committed facilities. Underlying collateral for margin loans is evaluated with respect to the liquidity of the collateral positions, valuation of securities, volatility analysis and an evaluation of industry concentrations. The Group’s collateral policies minimize the Group’s credit exposure to margin loans in the event of a customer’s default. For the Group’s securities borrowing and lending transactions which require to deposit cash collateral with the securities lenders and receive the cash collateral from the borrowers, the cash collateral is generally in excess of the market value of the securities borrowed and lent. The Group monitors the market value of securities borrowed and lent on a daily basis, with additional collateral obtained or refunded as permitted contractually. 16. COLLATERALIZED TRANSACTIONS (Continued) The following table summarizes the amounts related to collateralized transactions as of December 31, 2020 and 2021: As of December 31, 2020 2021 US$ US$ Total client margin asset 1,626,260,131 1,759,500,650 Fulfillment of client margin financings 168,840,684 202,004,165 Fulfillment of client short sales 21,492,878 31,612,750 Securities lending to other brokers 434,780,528 392,897,973 Total collateral repledged 625,114,090 626,514,888 |
LEASE
LEASE | 12 Months Ended |
Dec. 31, 2021 | |
Lessee Disclosure [Abstract] | |
Lease | 17. Lease Operating leases The Group’s leases consist of operating leases for corporate offices, data centers, and other facilities. The Group determines if an arrangement is a lease at inception. Some lease agreements contain lease and non-lease components, which the Group choose to account for as separate components. The allocation of the consideration between the lease and the non-lease components is based on the relative stand-alone prices of lease components included in the lease contracts. As of December 31, 2021, the Group had no long-term leases that were classified as a financing lease. As of December 31, 2021 the operating leases that have not yet commenced is immaterial. The arrangements of remaining lease terms are one year to seven years. Total lease expenses for the year ended December 31, 2020 and 2021 was US$3,494,456 and US$4,138,401, which were recorded in occupancy, depreciation and amortization on the consolidated statements of comprehensive income (loss). The Group classifies operating lease payments as cash outflows for operating activities in the statement of cash flows. The Group presents the reduction in the carrying amount of the right-of-use assets and the change in operating lease liabilities as two adjustments to net income and changes in net assets in the reconciliation of net income to net cash flows from operating activities. The following table presents balances reported in the consolidated balance sheets related to the Group's leases: For the years ended December 31, 2020 2021 US$ US$ Operating lease right-of-use assets 7,280,763 6,613,520 Operating lease liabilities 7,207,293 5,702,954 The following table presents operating lease expenses and short-term lease expenses reported in the consolidated statements of comprehensive income (loss) related to the Group's leases: 17. Lease (Continued) Operating leases (Continued) For the years ended December 31, 2020 2021 US$ US$ Operating lease expenses 2,985,665 3,881,251 Short-term lease expenses 508,791 257,150 A summary of supplemental information related to operating leases as of December 31, 2021 is as follows: For the years ended December 31, 2020 2021 US$ US$ Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used in operating leases 3,422,191 5,058,078 Non-cash right-of-use assets in exchange for new lease obligations: Operating leases 4,281,660 4,058,759 Weighted average remaining lease term: Operating leases 3 years 4 years Weighted average discount rate: Operating leases 5.3 % 5.5 % The following is a maturity analysis of the annual undiscounted cash flows for the annual periods ended December 31: 2021 US$ Years ending December 31: 2022 2,695,299 2023 1,036,814 2024 838,969 2025 452,218 2026 465,785 2027 and after 805,931 Total undiscounted operating lease payments 6,295,016 Less: imputed interest (592,062 ) Present value of operating lease liabilities 5,702,954 The terms of the leases do not contain contingent rents. |
COMMITMENTS AND CONTINGENCY
COMMITMENTS AND CONTINGENCY | 12 Months Ended |
Dec. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCY | 18. COMMITMENTS AND CONTINGENCY The Company did not have any significant capital or other commitments, long-term obligations, or guarantees as of December 31, 2021. |
REGULATORY REQUIREMENT
REGULATORY REQUIREMENT | 12 Months Ended |
Dec. 31, 2021 | |
Regulatory Capital Requirements [Abstract] | |
REGULATORY REQUIREMENT | 19. REGULATORY REQUIREMENT The Company’s broker-dealer subsidiaries, TBNZ, TradeUP Securities, US Tiger Securities, Tiger Brokers SG and Tiger Brokers HK are subject to capital requirements determined by its respective regulators. TBNZ, the Company’s New Zealand subsidiary, was subject to New Zealand’s Exchange ("NZX") capital adequacy requirements under the Section 19, NZX Participant Rules. TBNZ was not an NZX Participant since May of 2021. TradeUP Securities and US Tiger Securities, the Company’s USA subsidiaries, are subject to the Uniform Net Capital Rule (Rule 15c3-1) under the Exchange Act in the USA, which requires the maintenance of minimum net capital. Tiger Brokers SG, the Company’s Singapore subsidiary, is subject to the Securities and Futures Regulations 2018 (Amendment) Regulation 2018 under Chapter 289 of Securities and Futures Act in Singapore, which requires the maintenance of minimum net capital. Tiger Brokers HK, the Company’s Hong Kong subsidiary, is subject to Securities and Futures (Financial Resources) Rules and the Securities and Futures Ordinance, Tiger Brokers HK is required to maintain minimum paid-up share capital and liquid capital. As of December 31, 2020 and 2021, all of the Company’s broker-dealer subsidiaries met applicable minimum net capital requirements. The tables below summaries the net capital, the capital requirement and the excess net capital for the Company’s broker-dealer subsidiaries as of December 31, 2020 and 2021: Net Capital Requirement Excess Net Capital December 31, 2021 US$ US$ US$ TradeUP Securities 95,665,200 4,283,392 91,381,808 US Tiger Securities 10,429,009 250,000 10,179,009 Tiger Brokers SG 113,290,584 12,443,882 100,846,702 Tiger Brokers HK 14,569,722 384,635 14,185,087 Total 233,954,515 17,361,909 216,592,606 Net Capital Requirement Excess Net Capital December 31, 2020 US$ US$ US$ TBNZ 61,427,613 34,258,411 27,169,202 TradeUP Securities 14,546,628 250,000 14,296,628 US Tiger Securities 9,206,613 250,000 8,956,613 Tiger Brokers SG 9,718,825 2,382,717 7,336,108 Total 94,899,679 37,141,128 57,758,551 |
EMPLOYEE BENEFIT PLAN
EMPLOYEE BENEFIT PLAN | 12 Months Ended |
Dec. 31, 2021 | |
Compensation And Retirement Disclosure [Abstract] | |
EMPLOYEE BENEFIT PLAN | 20. EMPLOYEE BENEFIT PLAN Full time PRC employees of the Group are eligible to participate in a government‑mandated multi‑employer defined contribution plan under which certain pension benefits, medical care, unemployment insurance and employee housing fund are provided to these employees. The PRC labor regulations require the Group to accrue for these benefits based on a percentage of each employee’s salary income. Total provisions for employee benefits were US$5,618,209, US$4,323,814 and US$11,121,724 for the years ended December 31, 2019, 2020 and 2021, respectively, reported as a component of salary and compensation expenses when incurred. |
STATUTORY RESERVES AND RESTRICT
STATUTORY RESERVES AND RESTRICTED NET ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
Statutory Reserves And Restricted Net Assets [Abstract] | |
STATUTORY RESERVES AND RESTRICTED NET ASSETS | 21. STATUTORY RESERVES AND RESTRICTED NET ASSETS In accordance with the PRC laws and regulations, the Group’s subsidiaries located in the PRC, are required to provide for certain statutory reserves. These statutory reserve funds include one or more of the following: (i) a general reserve, (ii) an enterprise expansion fund or discretionary reserve fund, and (iii) a staff bonus and welfare fund. Subject to certain cumulative limits, the general reserve fund requires a minimum annual appropriation of 10% of after‑tax profit (as determined under accounting principles generally accepted in China at each year‑end); the other fund appropriations are at the subsidiaries’ or the affiliated PRC entities’ discretion. These statutory reserve funds can only be used for specific purposes of enterprise expansion, staff bonus and welfare, and are not distributable as cash dividends except in the event of liquidation of Group’s subsidiaries, affiliated PRC entities and their respective subsidiaries. The Group’s subsidiaries are required to allocate at least 10% of their after‑tax profits to the general reserve until such reserve has reached 50% of their respective registered capital. As of December 31, 2018, none of the Group’s PRC subsidiaries has a general reserve that reached 50% of their registered capital threshold. The Group did not made appropriation to these statutory reserve funds due to the loss position of the Group's PRC subsidiaries for the year ended December 31, 2018. For the year ended December 31, 2019, Beijing U-Tiger Business made appropriation to these statutory reserve funds of US$724,008 due to the profit position, which also reached the maximum required amount of 50% of its registered capital. For the year ended December 31, 2020, Beijing Yixin made appropriation to these statutory reserve funds of US$1,939,543 due to the profit position, which did not reach the maximum required amount of 50% of its registered capital. For the year ended December 31, 2021, Beijing Yixin made appropriation to these statutory reserve funds of US$899,337 due to the profit position, which did not reach the maximum required amount of 50% of its registered capital. Appropriations to the enterprise expansion reserve and the staff welfare and bonus reserve are to be made at the discretion of the Board of Directors of each of the Group’s subsidiaries. As a result of these PRC laws and regulations and the requirement that distributions by the PRC entities can only be paid out of distributable profits computed in accordance with the PRC GAAP, the PRC entities are restricted from transferring a portion of their net assets to the Group. Amounts restricted include paid‑in capital and the statutory reserves of the Group’s PRC subsidiaries. The aggregate amounts of capital and statutory reserves restricted which represented the amount of net assets of the relevant subsidiaries in the Group not available for distribution were US$48,315,519 and US$63,908,860 as of December 31, 2020 and 2021, respectively. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 22. SEGMENT INFORMATION Segments are business units that offer different services and are reviewed separately by the chief operating decision maker (the “CODM”), or the decision-making group, in deciding how to allocate resources and in assessing performance. The CODM, who is responsible for allocating resources and assessing performance of the operating segment, has been identified as the Group’s Chief Executive Officer. The Group operates as a single operating segment. The single operating segment is reported in a manner consistent with the internal reporting provided to the CODM. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | 23. SUBSEQUENT EVENT The Group evaluated events subsequent to the balance sheet date of December 31, 2021 through the date of issuance of the consolidated financial statements. No material recordable or disclosable events or transactions occurred. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of presentation and principle of consolidation | Basis of presentation and principle of consolidation The consolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements of the Group include the financial statements of the Company, its wholly-owned subsidiaries, its VIEs and the VIEs’ subsidiaries. |
Consolidation of a sponsored fund | Consolidation of a sponsored fund The Company has a trust that develops and holds an exchange-trade fund (the “sponsored fund”) that is publicly traded from the Nasdaq Global Select Market. The fund is managed by a subsidiary of the Company. Decisions regarding the trustees of the trust and certain key activities of the sponsored fund within the trust, such as appointment of the sponsored fund’s investment adviser, resides at the trust level. As a result, shareholders of the sponsored fund lack the ability to control the key decision-making processes that most significantly affect the economic performance of the sponsored fund. Accordingly, the Company believes that the trust and the sponsored fund are variable interest entities (“VIEs”) and shall be evaluated for consolidation as VIEs. The Company provides seed funding to new sponsored fund and may hold a significant interest in the shares of a sponsored fund during the seed investment stage when the sponsored fund’s investment track record is being established. To the extent that the Company’s interest in a sponsored fund is limited to: (i) fixed management fee and (ii) other interests that, in aggregate, would absorb an insignificant amount of variability in the fund, the Company’s management contract would not be considered a variable interest that provides the Company with the power to direct the activities of the fund and would therefore not be required to consolidate the fund. However, the Company has concluded that its fees earned from asset management arrangement with sponsored fund in which the Company holds a significant (at least 10 percent) ownership interest in the fund do represent variable interests that convey both power, in combination with the ownership interest, and significant economic exposure (both characteristics of a controlling financial interest) to the Company and therefore the Company would be the primary beneficiary that required to consolidate the fund. Upon consolidation, management fee revenue earned on, as well as the Company’s investments in, the consolidated sponsored funds are eliminated. The Company retains the specialized accounting treatment of the sponsored fund in consolidation whereby the underlying investments are carried at fair value, reflected in financial instruments held, at fair value, in the Company's consolidated balance sheets, with corresponding changes in fair value reflected in others, net in the Company’s consolidated statements of comprehensive income (loss). The non-controlling interest represents third-party interests of the Company’s consolidated sponsored fund. This interest is redeemable at the option of the investors and therefore is recorded as mezzanine equity. Redeemable non-controlling interest is recorded at redemption value which approximates the fair value at each reporting period. When the Company no longer holds a controlling financial interest in the sponsored fund, the Company deconsolidates the sponsored fund and removes the related assets, liabilities and redeemable non-controlling interests from its balance sheet. Because consolidated sponsored funds carry their assets and liabilities at fair value, there is no incremental gain or loss recognized upon deconsolidation. In November 2020, the sponsored fund was delisted and liquidated. Therefore it was deconsolidated in Group's consolidated financial statement since November 2020. |
Use of estimates | Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. Significant accounting estimates reflected in the Group’s consolidated financial statements include allowance for doubtful accounts |
Fair value | Fair value Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. Authoritative literature provides a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows: Level 1 Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model‑derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. |
Fair value of financial instruments | Fair value of financial instruments The Group’s financial instruments consist primarily of cash and cash equivalents, cash—segregated for regulatory purpose, term deposits, financial instruments held, at fair value, derivative assets or liabilities in relation to the Company's derivative transactions, receivables from or payables to customers, receivables from or payables to brokers, dealers, clearing organizations, amounts due from or to related parties, long‑term equity securities without readily determinable fair value, long-term available‑for‑sale securities and convertible bonds. The Company carries its financial instruments held, at fair value, long‑term available‑for‑sales securities at fair value. Financial instruments held, at fair value, based upon quoted market price, consist of stock investments related to the exchange trade funds (“ETFs”), US treasuries and corporate bonds. The carrying amounts of cash and cash equivalents, cash—segregated for regulatory purpose, term deposits, receivables from or payables to customers, receivables from or payables to brokers, dealers and clearing organizations, amounts due from or to related parties approximate their fair values due to the short‑term maturities of these instruments. The fair value of convertible bonds that adopted fair value option (2021 Series A1 Note) was measured using binomial-lattice option valuation model and significant unobservable inputs included share price, volatility, expected dividend, risk free interest rate and bond yield. The convertible bonds that are not reported at fair value are disclosed in Note 11. |
Derivative financial instruments | Derivative financial instruments The Company may utilize derivative financial instruments to mitigate the risk of fair value change of its investments in certain consolidated sponsored funds seeded for business development purposes. These derivative financial instruments are not designated as hedging instruments for accounting purposes. The Company does not use derivative financial instruments for speculative purposes. The Company may also acquire derivative financial instruments (i.e. warrants) during the course of its IPO distribution services. The Company records the derivative financial instruments in financial instrument held, at fair value or accrued expenses and other current liabilities on its consolidated balance sheets and measures these instruments at fair value. As of December 31, 2020 and 2021, the Company held nil and US$12,906 derivatives (mainly stock index future contracts and warrants) reflected in financial instruments held at fair value in the Company’s consolidated balance sheets, respectively. For the years ended December 31, 2020 and 2021, the Company recognized US$2,316,585 and nil realized loss, as well as nil and US$80,703 unrealized loss in other income in the Company’s consolidated statements of comprehensive income (loss), respectively. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents consist of cash on |
Cash-segregated for regulatory purposes | Cash—segregated for regulatory purpose Certain subsidiaries of the Company are obligated by rules mandated by their primary regulators to segregate or set aside amount of cash deposited by the customer and the Company. Such regulations are promulgated to protect customer assets and meet the capital adequacy and other regulatory requirement. A corresponding payable to customers is recorded upon receipt of the cash from the customer. Restricted cash represents cash and cash equivalents that are subject to withdrawal or usage restrictions. Cash segregated for regulatory purposes meets the definition of restricted cash and is included in “cash, cash equivalents and restricted cash” in the consolidated statements of cash flows. As of December 31, 2020 and 2021, TradeUP Securities, the Company's broker-dealer subsidiary located in the USA, had a cash of US$29,625,645 and US$433,540,023 segregated for the exclusive benefit of customers under Rule 15c3-3 of the Securities Exchange Act. |
Term deposits | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Term deposits Term deposits consist of bank deposits with an original maturity of greater than three months and less than one year. |
Receivables from and payables to Customers | Receivables from and payables to Customers Receivables from customers include the margin loans extended to consolidated accounts customers by the Group. Securities owned by the customers, which are not recorded in the consolidated balance sheets, are held as collateral for amounts due on the loan receivables. Receivables from customers are recorded net of allowance for doubtful accounts. Revenues earned from the margin loan transactions are included in interest income. The amounts receivable from customers that are determined by management to be uncollectible when the fair value of the collaterals fall under the carrying value of the receivables are recorded as bad debt expense in the consolidated statements of comprehensive income (loss). For the years ended December 31, 2019, 2020 and 2021, nil, US$91,788 and US$426,953 of allowance for doubtful accounts were recorded. The table below presents the movement of allowance for doubtful accounts from customers for the year ended December 31, 2020 and 2021. For the years ended December 31, 2020 2021 US$ US$ Balance at the beginning of the year — 91,788 Accruals 91,788 426,953 Balance at the end of the year 91,788 518,741 Payables to customers represent the closing cash balance to the customers, which include cash deposit and cash collateral received or advanced from consolidated account customers derived from security borrowing and lending activities. The Company receives or advances cash collateral, in an amount equals to or in excess of the fair value of the securities borrowed and loaned by customers. The Company monitors the market value of securities borrowed and loaned on a daily basis, with additional collateral obtained or refunded as permitted contractually. Interest income and interest expense are recorded on an accrual basis. |
Receivables from and Payables to brokers, dealers and clearing organizations | Receivables from and Payables to Receivables from brokers, dealers and clearing organizations include customers' cash deposits, the Group’s revenue receivables, cash collateral received for consolidated account customers’ security lending activities, and net receivables arising from unsettled trades. Payables to brokers, dealers and clearing organizations include borrowed margin and cash collaterals received from securities borrowing transactions. Securities borrowing transactions require the Company to deposit cash with the lender, and securities lending transactions result in the Company receiving collateral in the form of cash from the brokers, dealers and clearing organization. The cash collateral advanced to or received from the brokers are in an amount generally equal to or in excess of the market value of the securities that borrowed or loaned by the consolidated account customers. The Company monitors the market value of securities borrowed and loaned on a daily basis, with additional collateral obtained or refunded as permitted contractually. Interest income and interest expense are recorded on an accrual basis. |
Property, equipment, and intangible assets, net | Property, equipment, and intangible assets, net Property and equipment mainly consist of electronic equipment, office equipment, leasehold improvements and software. The property and equipment are carried at cost less accumulated depreciation. Depreciation is calculated on a straight‑line basis over the following estimated useful lives: Electronic equipment 3 years Office equipment 5-14.25 years Software 3-5 years Leasehold improvement Shorter of the lease terms or the estimated useful lives of the assets Intangible assets mainly consist of the brokerage’s license in USA, New Zealand, Hong Kong and Australia acquired by the Company, which are recognized as intangible assets with indefinite life, and it should not be amortized until its useful life is determined to be no longer indefinite. An intangible asset that is not subject to amortization is tested for impairment at least annually or if events or changes in circumstances indicate that the asset might be impaired. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. Goodwill is not amortized but is tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired. Goodwill is tested for impairment at the reporting unit level on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. These events or circumstances could include a significant change in the business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. Application of the goodwill impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units, and determination of the fair value of each reporting unit. The estimation of fair value of each reporting unit using a discounted cash flow methodology also requires significant judgments, including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long‑term rate of growth for the Group’s business, estimation of the useful life over which cash flows will occur, and determination of the Group’s weighted average cost of capital. The estimates used to calculate the fair value of a reporting unit change from year to year based on operating results and market conditions. Changes in these estimates and assumptions could materially affect the determination of fair value and goodwill impairment for the reporting unit. The Group first assesses relevant events and circumstances to determine whether it is necessary to perform the two-step goodwill impairment test. If, after assessing the totality of events or circumstances such as those described in the preceding paragraph, the Group determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then the first and second steps of the goodwill impairment test are unnecessary. The first step of the goodwill impairment test, used to identify potential impairment, compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit is greater than zero and its fair value exceeds its carrying amount, goodwill of the reporting unit is considered not impaired and the second step of the impairment test is unnecessary. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of the affected reporting unit’s goodwill to the carrying value of that goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. This allocation process is only performed for purposes of evaluating goodwill impairment and does not result in an entry to adjust the value of any assets or liabilities. The Group concluded that the estimated fair value of the reporting unit substantially exceeded the underlying carrying value as of December 31, 2021. No impairment charge was recognized for the years ended December 31, 2019, 2020 and 2021. |
Lease | Lease The Group leases offices and other facilities in different cities in the PRC, New Zealand, Singapore, USA and other countries. The Group determines whether an arrangement constitutes a lease and records lease liabilities and right-of-use assets on its consolidated balance sheets at the lease commencement. The Group measures its lease liabilities based on the present value of the total lease payments not yet paid discounted based on the more readily determinable of the rate implicit in the lease or its incremental borrowing rate, which is the estimated rate the Group would be required to pay for a collateralized borrowing equal to the total lease payments over the term of the lease. The Group estimates its respective incremental borrowing rate for each jurisdiction based on their analysis of publicly traded debt securities of companies with credit and financial profiles similar to its own. The Group measures right-of-use assets based on the corresponding lease liability adjusted for payments made to the lessor at the commencement date, and initial direct costs it incurs under the lease. The Group begins recognizing operating lease expense when the lessor makes the underlying asset available to the Group. The Group’s leases have remaining lease terms of up to seven years, some of which include options to extend the leases for an additional period which has to be agreed with the lessors based on mutual negotiation. After considering the factors that create an economic incentive, the Group did not include renewal option periods in the lease term for which it is not reasonably certain to exercise. For short-term leases, the Group records operating lease expense in its consolidated statements of comprehensive income (loss) on a straight-line basis over the lease term and record variable lease payments as incurred. |
Long-term investment | Long‑term investment The Group’s long‑term investments consist of equity securities without readily determinable fair values, available‑for‑sale securities and equity method investment. (a) Equity securities without readily determinable fair values For investments in equity securities without readily determinable fair values, the Group elects to use the measurement alternative defined as cost, less impairment, adjusted by observable price change. The Group reviews its equity securities without readily determinable fair values investments for impairment at each reporting period by performing a qualitative assessment considering impairment indicators. The Group recorded US$755,524, nil and US$600,000 impairment loss on its equity securities without readily determinable fair values during the years ended December 31, 2019, 2020 and 2021. (b) Available‑for‑sale securities For investments which are determined to be debt securities, the Group accounts for them as long‑term available‑for‑sale securities when they are not classified as either trading or held‑to‑maturity investments. Available‑for‑sale securities are carried at its fair value and the unrealized gains or losses from the changes in fair values are included in accumulated other comprehensive income or loss. The Group reviews its investments for other than temporary impairment based on the specific identification method. The Group considers available quantitative and qualitative evidence in evaluating potential impairment of its investments. If the cost of an investment exceeds the investment’s fair value, the Group considers, among other factors, general market conditions, government economic plans, the duration and the extent to which the fair value of the investment is less than the cost, the Group’s intent and ability to hold the investment, and the financial condition and near term prospects of the investees. The Group recorded nil, US$150,978 and nil impairment losses on its available‑for‑sale securities during the years ended December 31, 2019, 2020 and 2021, respectively. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Long‑term investment (Continued) (c) Equity method investment In accordance with ASC 323 Investment—Equity Method and Joint Ventures, the Group accounts for an equity method investment over which it has significant influence but does not own a majority of the equity interest or otherwise controls and the investments are either common stock or in substance common stock using the equity method. The Group’s share of the investee’s profit and loss is recognized in the consolidated statements comprehensive income (loss) of the period. An impairment loss on the equity method investments is recognized in the consolidated statements of comprehensive income (loss) when the decline in value is determined to be other-than-temporary. The Group did not record any impairment losses on its equity method investment during the years ended December 31, 2019, 2020 and 2021. |
Revenue recognition | Revenue recognition Revenue from contracts with customers is recognized when or as the Group satisfies its performance obligations by transferring the promised services to the customers. A service is transferred to a customer when or as the customer obtains control of that service. A performance obligation may be satisfied at a point in time or over time. Revenue from a performance obligation satisfied at a point in time is recognized at the point in time that the Group determines the customer obtains control over the promised service. Revenue from a performance obligation satisfied over time is recognized by measuring the Group’s progress in satisfying the performance obligation in a manner that depicts the transfer of the services to the customer. The amount of revenue recognized reflects the consideration the Group expects to receive in exchange for those promised services (i.e., the “transaction price”). The Group’s revenues from contracts with customers are recognized when the performance obligations are satisfied at an amount that reflects the consideration expected to be received in exchange for such services. The majority of the Group’s performance obligations are satisfied at a point in time upon the successful execution and clearing of the customer’s trade order. Revenue is collected from the Group’s clearing partners in the brokerage business or from the customers directly by debiting their brokerage account with the Group. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Revenue recognition (Continued) Nature of Services The Group’s services under contracts with customers are mainly related to its commission earned from its online brokerage business under the consolidated accounts (which customer information are not disclosed to the broker) and the fully disclosed accounts. The Group’s main sources of revenue from contracts with customers are as follows: i ) Commissions earned for the Group’s online brokerage business in customers’ fully disclosed accounts and consolidated accounts are charged for each customer trade order executed and cleared by broker on a trade date basis and are reported as commissions in the consolidated statements of comprehensive income (loss). According to the attributes of transactions under consolidated accounts, the Group provides brokerage service for its customers. Commission fees are deducted from the customer’s account at the time of trade order initiation and a pre‑determined portion is directed to the broker. The Group recognizes revenue at the time of execution of the order (i.e., trade date) on a gross basis as the Group is determined to be the primary obligor in fulfilling the trade order initiated by the customer. According to the attributes of transactions under fully disclosed accounts, the Group provides the agreed services to its customers in facilitating the trades. Every time the broker executes and clears a trade, the broker collects the commissions, deducts its pre‑determined portion and returns the rest of the commission fees to the Group. Accordingly, the commission fee is recorded on a net basis. ii) Finance servicing fees are related to margin loans and securities borrowing and lending activities provided by the brokers under the fully disclosed accounts. Revenue is recognized over the period that the margin loans and securities borrowing and lending activities are outstanding. iii) Interest income is generated from margin loans and securities borrowing and lending activities provided to consolidated account customers and interest income from bank deposits. Interest income is recognized on an accrual basis. iv) Other revenues consist of the revenue arising from initial public offering (“IPO”) distribution service, currency exchange service and others. Revenue from the IPO distribution service is derived from IPO underwriting and new share subscription services in relation to IPOs in the USA and Hong Kong capital market. IPO distribution revenue are generally recognized when the services are completed. The related revenue from IPO distribution services amounted at US$3,142,763, US$13,760,209 and US$12,565,574 for the years ended December 31, 2019, 2020 and 2021. Revenue from currency exchange service is charged to the Group’s clients for providing currency exchange service, which was recorded upon the time when the services are rendered to customers. The related revenue from currency exchange service amounted at US$246,135, US$2,530,145 and US$12,607,089 for the years ended December 31, 2019, 2020 and 2021. The Group also provides promotional and advertisement service and financial advisory service under the contracts with customers, which are recorded over the period of service provided. Contract liabilities arise when customers remit contractual cash payments in advance of the Company satisfying its performance obligations under the contract and are derecognized when the revenue associated with the contract is recognized either when a milestone is met triggering the contractual right to bill the customer or when the performance obligation is satisfied. Contract liabilities are reported in deferred income and accrued expenses and other current liabilities-advanced from customers in the consolidated balance sheets. |
Research and development expenses | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Research and development expenses Research and development expenses primarily consist of salaries and employee benefits, rental and depreciation expenses related to the development of the Group’s proprietary trading platform, back-end technology and customer relationship management system. For the years ended December 31, 2019, 2020 and 2021, US$18,033,074 and US$22,507,376 and US$47,769,773 of research and development costs have been expensed as incurred as the costs qualifying for capitalization have been insignificant. |
Occupancy, Depreciation and Amortization | Occupancy, Depreciation and Amortization Occupancy expenses consist primarily of lease payments on office and data center leases and related occupancy costs, such as utilities. Depreciation and amortization expenses result from the depreciation of fixed assets, such as electronic equipment, office equipment as well as leasehold improvements and the amortization of intangible assets. |
Share-based compensation | Share‑based compensation Share‑based payment transactions with employees and managements, such as share options are measured based on the grant date fair value of the equity instrument. The Group has elected to recognize compensation expenses using the straight‑line method for all employee equity awards granted with graded vesting provided that the cumulative amount of compensation cost recognized at any date is at least equal to the portion of the grant‑date value of the options that are vested at that date, over the requisite service period of the award, which is generally the vesting period of the award. Compensation expenses for awards with performance conditions is recognized when it is probable that the performance condition will be achieved. The Group elects to recognize forfeitures when they occur. Compensation expenses for awards with service conditions is recognized on a straight-line method over the requisite service period. The cancellation of an award accompanied by the concurrent grant of a replacement award is accounted for as a modification of the terms of the awards. The incremental compensation cost is measured as the excess of the fair value of the modified award over the fair value of the modified award at the modification date. The incremental portion of share-based compensation for the vested portion is recognized immediately and the incremental portion of share-based compensation for the unvested portion is recognized over the remaining vesting period of the award. If an award is canceled without the concurrent grant of a replacement award or any other consideration, unrecognized compensation cost related to the canceled award is recognized immediately upon cancelation. For awards granted with a performance condition that affects vesting, the performance condition is not considered in determining the award’s grant-date fair value; however, the performance condition is considered when estimating the quantity of awards that are expected to vest. No compensation expense is recorded for awards with a performance condition unless and until the performance condition is determined to be probable of achievement. |
Income taxes | Income taxes Current taxes are provided for in accordance with the laws of the relevant taxing authorities. Deferred taxes are recognized when temporary differences exist between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities, including those for net operating loss carryforwards are measured using enacted statutory tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance if, in the opinion of management, it is more‑likely‑than‑not that some portion or all of the deferred tax assets will not be realized. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Income taxes The Group accounts for uncertainty in income taxes by recording an unrecognized tax benefit resulting from tax positions taken or expected to be taken in a tax return. Tax benefits are recognized when the Group believes that it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. A tax position that meets the more likely than not recognition threshold is measured as the largest amount of tax benefit that is greater than 50 percent likely of being realized upon settlement. The Group presents interest and penalties, if any, related to an underpayment of income taxes in income tax expense. The Group accounts for residual income tax effects in accumulated other comprehensive income due to a change in tax law or a change in judgment about realization of a valuation allowance using the portfolio method and only releases residual amounts when the entire portfolio is liquidated. |
Comprehensive income or loss | Comprehensive income or loss Comprehensive income or loss consists of two components, net income or loss and other comprehensive income or loss, net of tax. Other comprehensive income or loss refers to revenue, expenses, and gains and losses that are recorded as an element of shareholders’ equity but are excluded from net income or loss. The Group’s other comprehensive income or loss consists of foreign currency translation adjustments from its subsidiaries not using the US$ as their functional currency and the fair value change of long‑term available‑for‑sale securities of the Group, if any. Comprehensive income or loss is reported in the consolidated statements of comprehensive income (loss). |
Treasury stock | Treasury stock The Group accounted for those shares repurchased as treasury stock at cost, Treasury stock, and is shown separately in the shareholders’ equity as the Company has not yet decided on the ultimate disposition of those shares acquired. When the Company decides to cancel the treasury stock, the difference between the original issuance price and the repurchase price is debited into additional paid-in capital. Refer to Note 14 for details. |
Non-controlling interests | Non‑controlling interests For the Company’s consolidated subsidiaries, non‑controlling interests are recognized to reflect the portion of their equity that is not attributable, directly or indirectly, to the Company as the controlling shareholder. Non‑controlling interests are classified as a separate line item in the equity section of the Group’s consolidated balance sheets and have been separately disclosed in the Group’s consolidated statements of comprehensive income (loss) to distinguish the interests from that of the Company. |
Foreign currencies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Foreign currencies The reporting currency of the Company is the US$. The Company and the Company’s subsidiaries with operations in the PRC, Hong Kong, New Zealand, Singapore, Australia, the United States and other jurisdictions use their respective local currencies as their functional currencies except for TBNZ which changed the functional currency from local currency to US$. The financial statements of the Company’s subsidiaries, other than the subsidiaries with functional currency in US$, are translated into US$ using the exchange rate as of the balance sheet date for assets and liabilities and the average daily exchange rate for each month for income and expense items. Translation gains and losses are recorded as a separate component of other comprehensive income or loss in the consolidated statements of change in equity (deficit) and consolidated statements of comprehensive income (loss). In the financial statements of the Company’s subsidiaries, transactions in currencies other than the functional currency are measured and recorded in the functional currency using the exchange rate in effect at the date of the transaction. At the balance sheet date, monetary assets and liabilities that are denominated in currencies other than the functional currency are translated into the functional currency using the exchange rate at the balance sheet date. All gains and losses arising from foreign currency transactions are recorded in other income in the consolidated statements of comprehensive income (loss) during the year in which they occur. RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into other currencies. The value of the RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. The Group’s cash and cash equivalents denominated in RMB amounted to US$9,473,171, US$5,972,337 and US$1,606,471 as of December 31, 2019, 2020 and 2021, respectively. |
Net income (loss) per share | Net income (loss) per share The Group computes net income or loss per Class A and Class B ordinary share in accordance with ASC 260-10 The liquidation and dividend rights of the holders of the Company’s Class A and Class B ordinary shares are identical, except with respect to voting. As the liquidation and dividend rights are identical, the net incomes are allocated on a proportionate basis. Basic net income or loss per share is computed by dividing net income or loss attributable to ordinary shareholders by the weighted average number of ordinary shares and contingently issuable shares outstanding during the period except that it does not include unvested restricted shares or repurchased ordinary shares subject to cancellation. Diluted net income or loss per share is calculated by dividing net income or loss attributable to ordinary shareholders, as adjusted for the effect of dilutive potential ordinary shares, if any, by the weighted average number of ordinary shares outstanding and dilutive potential ordinary shares during the period. Potential ordinary shares are excluded in the denominator of the diluted net income or loss per share calculation if their effects would be anti-dilutive. |
Concentration of credit risk | Concentration of credit risk The Group’s exposure to credit risk associated with its trading and other activities is measured on an individual counterparty basis, as well as by groups of counterparties that share similar attributes. Concentrations of credit risk can be affected by changes in political, industry, or economic factors. To reduce the potential for risk concentration, credit limits are established and exposure is monitored in light of changing counterparty and market conditions. As of December 31, 2020 and 2021, the Group did not have any material concentrations of credit risk outside the ordinary course of business. |
Concentration of revenue | Concentration of revenue There is no customer accounting for 10% or more of total revenues for the years ended December 31, 2019, 2020 and 2021, respectively. |
Concentration of supplier | Concentration of supplier The Group relies on third parties for the execution and clearing of trade requests made by customers. In instances where these parties fail to perform their obligations, the Group may be temporarily unable to find alternative suppliers to satisfactorily deliver services to its customers in a timely manner, if at all. For the years ended December 31, 2019, 2020 and 2021, 78.4%, 74.8% and 57.4% of its total net revenues were executed and cleared by one supplier. |
Current Expected Credit Losses | Current Expected Credit Losses On January 1, 2020, the Group adopted FASB ASC Topic 326 – “Financial Instruments – Credit Losses” (“ASC Topic 326”) which replaces the incurred loss methodology with the current expected credit loss (“CECL”) methodology. The new guidance applies to financial assets measured at amortized cost, held-to-maturity debt securities and off-balance sheet credit exposures. For on-balance sheet assets, an allowance must be recognized at the origination or purchase of in-scope assets and represents the expected credit losses over the contractual life of those assets. Expected credit losses on off-balance sheet credit exposures must be estimated over the contractual period the Group is exposed to credit risk as a result of a present obligation to extend credit. The Group adopted ASC Topic 326 using the modified retrospective approach for all in-scope assets, which did not result in an adjustment to the opening balance in retained earnings. Results for reporting periods beginning after January 1, 2020 are presented under ASC Topic 326 while prior periods continue to be reported in accordance with previously applicable U.S. GAAP. The impact to the current period is not material since the Group’s in-scope assets are primarily subject to collateral maintenance provisions for which the Company elected to apply the practical expedient of reporting the difference between the fair value of collateral and the amortized cost for the in-scope assets as the allowance for current expected credit losses. |
Acquisition | Acquisition Acquisition of TradeUp Securities In July 2019, the Group acquired 100% equity interests in TradeUP Securities for a total consideration of US$9,348,290 in a combination of US$6,348,290 of cash and US$3,000,000 of Class A ordinary shares of the Company. TradeUP Securities is a licensed U.S self-clearing broker-dealer that focuses on empowering self-directed investors with the necessary tools to manage their portfolios. TradeUP Securities brings in rich broker dealer experience in execution and clearing. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Acquisition (Continued) Acquisition of TradeUp Securities The acquisition was recorded using the acquisition method of accounting. Accordingly, the acquired assets and liabilities were recorded at their fair value at the date of acquisition. The tangible and intangible assets valuation disclosed below was based on a valuation analysis prepared by the management with the assistance from an independent third-party appraiser. In order to value the intangible asset, a multi period excess earnings method (“MPEEM”), a method of discount cash flow, was used. The MPEEM requires significant judgment and estimates by the management on future earnings as well as the economic useful life, taking into account certain factors including the appropriate discount rate. TradeUP Securities’s financial statements constituted less than 1% of revenue and 4.1% of total assets of the Company's consolidated financial statement for and as of the year ended December 31, 2019 The purchase price was allocated at the date of acquisition as follows: US$ Amortization period Cash and cash equivalents 339,611 Cash-segregated for regulatory purpose 22,094,198 Other current assets 5,098,900 Property, plant and equipment 5,581 3-5 years Intangible assets Operating License 6,900,000 Indefinite life Goodwill (note 5) 2,421,403 Other current liabilities (26,062,403 ) Deferred tax liabilities (1,449,000 ) 9,348,290 The goodwill is mainly attributable to intangible assets that cannot be recognized separately as identifiable assets under U.S.GAAP, and comprise of (a) the assembled work force and (b) the expected but unidentifiable business growth as a result of synergy effect from the acquisition. The acquired goodwill is not deductible for tax purposes. The Group incurred total acquisition costs of US$377,239. The acquisition costs were primarily related to legal, accounting and advisory services and were expensed as incurred for the year ended December 31, 2019 and are included in general and administrative expenses in the consolidated statements of comprehensive income (loss) . 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Acquisition (Continued) Acquisition of Ocean Joy Holdings Limited (“Ocean Joy”) In May 2020, the Group acquired 30% equity interests in Ocean Joy, and its sole subsidiary Tiger Brokers HK, which is licensed by the SFC in Hong Kong to carry on business dealing in securities and futures contracts, for a cash consideration of US$462,276 (HK$3,600,000). The investment was accounted for as an equity method investment as the Group has significant influence but does not have control over Ocean Joy. On October 26, 2021 (the “Acquisition Date”), the Group acquired the remaining 70% equity interest in Ocean Joy for cash consideration of US$1,079,830 (HK$8,400,000). In addition to the cash consideration, there was also US$1,426,919 (HK$11,100,000) receivables from Ocean Joy that was settled as a pre-existing relationship on acquisition. The additional 70% equity interest purchase was accounted for as a step acquisition whereby the Group remeasured the fair value of its previously held equity interests in Ocean Joy on October 26, 2021, the acquisition date. The fair value of the equity interest in Ocean Joy held by the Group immediately before the step acquisition date was US$462,784 (HK$3,600,000) and the resulting gain was US$77,593. Following the completion of the transaction, the Group held a total of 100% equity interest in Ocean Joy, and Ocean Joy became a consolidated subsidiary of the Group. The acquisition was recorded using the acquisition method of accounting. Accordingly, the acquired assets and liabilities were recorded at their fair value at the date of acquisition. The tangible and intangible assets valuation disclosed below was based on a valuation analysis prepared by the management with the assistance from an independent third-party appraiser. In order to value the intangible asset, MPEEM, a method of discount cash flow, was used. The MPEEM requires significant judgment and estimates by the management on future earnings as well as the economic useful life, taking into account certain factors including the appropriate discount rate. The consolidated financial performance of Ocean Joy and its sole subsidiary Tiger Broker HK since the Acquisition Date to December 31, 2021 constituted less than 0.1% of revenue of the Group’s consolidated financial performance for the year ended December 31, 2021, and the total consolidated assets of Ocean Joy and its sole subsidiary Tiger Broker HK accounted for less than 2.2% of that of the Group as of December 31, 2021. The following table summarizes the consideration for this transaction: US$ The fair value of its previously held equity interests in Ocean Joy at the acquisition Date 462,784 Cash Consideration 1,079,830 Settlement of pre-existing balance with Ocean Joy 1,426,919 Total consideration 2,969,533 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Acquisition (Continued) Acquisition of Ocean Joy Holdings Limited (“Ocean Joy”) (Continued) The assets and liabilities recognized as of the acquisition are as follows : US$ Amortization period Cash and cash equivalents 3,664,133 Cash-segregated for regulatory purpose 2,166,432 Receivables-Brokers, dealers and clearing organizations 915,497 Other current assets 190,132 Property, plant and equipment 82,284 3-5 years Deferred tax assets, net 13,060 Intangible assets Operating License 527,060 Indefinite life Trading rights 128,551 Indefinite life Other non-current assets 218,537 Payable to customers (2,884,596 ) Other payables (2,018,511 ) Other current liabilities (17,346 ) Deferred tax liabilities (86,965 ) Net identifiable assets acquired 2,898,268 Add: goodwill (Note 5) 71,265 Total 2,969,533 The goodwill is mainly attributable to intangible assets that cannot be recognized separately as identifiable assets under U.S.GAAP, and comprise of (a) the assembled work force and (b) the expected but unidentifiable business growth as a result of synergy effect from the acquisition. The acquired goodwill is not deductible for income tax purposes. The Group incurred total acquisition costs of US$11,736. The acquisition costs were primarily related to legal, accounting and advisory services and were expensed as incurred for the year ended December 31, 2021 and are included in general and administrative expenses in the consolidated statements of comprehensive income (loss) . The results of operations attributable to Ocean Joy are included in the consolidated statement of operations of the Group beginning on October 26, 2021, which included net revenue of US$213,895 and net loss of US$73,273 generated from the acquisition date to December 31, 2021. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Acquisition (Continued) Acquisition of Ocean Joy Holdings Limited (“Ocean Joy”) (Continued) Pro forma information of acquisitions The following unaudited pro forma information summarizes the results of operations of the Group for the years ended December 31, 2020 and 2021 assuming that the acquisition of Ocean Joy occurred as of January 1, 2020. The following pro forma financial information is not necessarily indicative of the results that would have occurred had the acquisitions been completed at the beginning of the periods as indicated, nor is it indicative of future operating results: For the years ended December 31, 2020 2021 US$ US$ Unaudited Unaudited Pro forma net revenue 138,662,645 264,887,363 Pro forma net income 18,900,392 14,521,983 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Income taxes (Topic 740)-Simplifying the accounting for income taxes, which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740, Income Taxes. For public business entities, the ASU will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The Group applied this ASU on January 1, 2021 and the adoption had no material impact on the Group’s consolidated financial statements. In January 2020, the FASB issued ASU 2020-01, Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815). ASU 2020-01 states any equity security transitioning from the alternative method of accounting under Topic 321 to the equity method, or vice versa, due to an observable transaction will be re-measured immediately before the transition. In addition, the ASU clarifies the accounting for certain non-derivative forward contracts or purchased call options to acquire equity securities stating such instruments will be measured using the fair value principles of Topic 321 before settlement or exercise. The ASU is effective for the Company for the year ended December 31, 2021 and has been applied on a prospective basis. The adoption of this ASU did not have a significant impact on the Group’s consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting if certain criteria are met. In addition, in January 2021, the FASB issued ASU 2021-01, "Reference Rate Reform (Topic 848)- Scope". The amendments in these ASUs apply to all entities that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. Together, these ASUs provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. These ASUs were effective upon issuance and may be applied prospectively through December 31, 2022. The adoption did not have a material accounting impact on the Group's consolidated financial position or results of operations. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Recent Accounting Pronouncements (Continued) In August 2021, the FASB issued ASU 2021-06, Presentation of Financial Statements (Topic 205), Financial Services-Depository and Lending (Topic 942), and Financial Services-Investment Companies (Topic 946): Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses, and No. 33-10835, Update of Statistical Disclosures for Bank and Savings and Loan Registrants. These amendments updated certain SEC disclosure guidance that is included in the accounting standards codification to reflect the SEC’s recent issuance of rules intended to modernize and streamline disclosure requirements, including updates to business acquisition and disposition significance tests used, the significance thresholds for proforma statement disclosures, the number of preceding years of financial statements required for disclosure as well as other provisions in the SEC releases. The Group adopted this pronouncement upon issuance and the adoption had no material impact on the Group’s consolidated financial statements. |
ORGANIZATION AND PRINCIPAL AC_2
ORGANIZATION AND PRINCIPAL ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of details of the Group's subsidiaries, VIEs and VIEs' subsidiaries | As of December 31, 2021, details of the Group’s major principal operating subsidiaries, VIEs and VIEs’ subsidiaries were as follows: Date of incorporation or acquisition Place of establishment/ incorporation Percentage of legal ownership Subsidiaries: Tiger Brokers (NZ) Limited (“TBNZ”) August 02, 2016 New Zealand 100 % Up Fintech International Limited (“Up International”) February 08, 2018 Hong Kong 100 % Tiger Fintech (Singapore) PTE Ltd. (“Tiger SG”) March 13, 2018 Singapore 100 % Tiger Brokers (Singapore) PTE Ltd. (“Tiger Brokers SG”) March 27, 2018 Singapore 100 % US Tiger Securities, Inc. (“US Tiger Securities”) March 30, 2018 United States of America(“USA”) 100 % Beijing Bohu Xiangshang Technology Co., LTD (“Beijing BHXS”,“Beijing WFOE I”) May 17, 2018 PRC 100 % Tiger Fintech Holdings, Inc (“Tiger Fintech Holdings”) July 09, 2018 USA 100 % Beijing Xiangshang Yixin Technology Co., Ltd (“Beijing Yixin”,“Beijing WFOE II”) July 26, 2018 PRC 100 % Trading Front Inc (“Trading Front”) August 01, 2018 USA 100 % Wealthn LLC (“Wealthn”) August 01, 2018 USA 100 % Kastle Limited (“Kastle”) October 15, 2018 Hong Kong 100 % Tung Chi Consulting Limited (“Tung Chi”) January 29, 2019 Hong Kong 100 % TradeUP Securities Inc (US) (“TradeUP Securities”) 1 July 12, 2019 USA 100 % Tradeup Inc. (“Tradeup”) October 10, 2019 USA 100 % Hangzhou U-Tiger Technology Co. LTD (“Hangzhou U-Tiger”) April 09,2020 PRC 100 % Tiger Fintech (NZ) Limited (“TFNZ”) May 17, 2021 New Zealand 100 % Tiger Services (AU) Pty Ltd (“Tiger Services AU”) August 27, 2021 Australia 100 % Tiger Brokers (HK) Global Limited (“Tiger Brokers HK”) 2 October 26, 2021 Hong Kong 100 % VIEs: Beijing Xiangshang Rongke Technology Co. LTD (“Beijing Rongke”, “Ningxia VIE”) 3 June 11, 2014 PRC Consolidated VIE Beijing Xiangshang Yiyi Laohu Technology Group Co., LTD (“Beijing Yiyi”, “Beijing VIE”) October 29, 2018 PRC Consolidated VIE VIEs’ subsidiaries: Tiger Technology Corporation Limited (“Tiger Technology”) October 14, 2014 Hong Kong VIE’s subsidiary Beijing U-Tiger Network Technology Co., LTD (“Beijing U-Tiger Network”) April 20, 2016 PRC VIE’s subsidiary Beijing U-Tiger Business Service Co., Ltd (“Beijing U-Tiger Business”) April 21, 2016 PRC VIE’s subsidiary Beijing Chenhao Technology Co., LTD. (“Beijing Chenhao”) August 11, 2016 PRC VIE’s subsidiary Beijing Zhijianfengyi Information Technology Co., Ltd (“Beijing ZJFY”) January 25, 2018 PRC VIE’s subsidiary Shenzhen Xiang Shang Hu Xun Technology Co., LTD (“HuXun”) June 20, 2018 PRC VIE’s subsidiary Beijing Huyi Technology Co., Ltd (“Huyi”) September 05, 2018 PRC VIE’s subsidiary Guangzhou U-Tiger Technology Co., LTD (“Guangzhou U Tiger”) December 24, 2018 PRC VIE’s subsidiary 1 2 3 |
Schedule of assets, liabilities, results of operations and cash flows of the VIEs | The following table sets forth the assets, liabilities, results of operations and cash flows of the VIEs and VIEs’ subsidiaries taken as a whole, which were included in the Group’s consolidated financial statements with intercompany balances and transactions eliminated between the VIEs and VIEs’ subsidiaries: As of December 31, 2020 2021 US$ US$ Current assets 48,118,025 51,873,657 Non-current assets 16,253,660 16,083,322 Total assets 64,371,685 67,956,979 Current liabilities 25,955,828 25,422,094 Non-current liabilities 1,158,044 6,858 Total liabilities 27,113,872 25,428,952 For the years ended December, 31 2019 2020 2021 US$ US$ US$ Total revenues 44,134,256 16,191,693 65,295,325 Net income (loss) 16,505,238 (7,524,524 ) (700,720 ) For the years ended December, 31 2019 2020 2021 US$ US$ US$ Net cash provided by (used in) operating activities 6,567,594 (597,323 ) 18,431,299 Net cash (used in) provided by investing activities (10,240,498 ) 646,647 (4,048,620 ) Net cash provided by (used in) financing activities 43,730 311,688 (5,091,778 ) |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring Cost And Reserve [Line Items] | |
Schedule of allowance for doubtful accounts | The table below presents the movement of allowance for doubtful accounts from customers for the year ended December 31, 2020 and 2021. For the years ended December 31, 2020 2021 US$ US$ Balance at the beginning of the year — 91,788 Accruals 91,788 426,953 Balance at the end of the year 91,788 518,741 |
Schedule of estimated useful lives of property, plant and equipment | Electronic equipment 3 years Office equipment 5-14.25 years Software 3-5 years Leasehold improvement Shorter of the lease terms or the estimated useful lives of the assets |
TradeUp Securities | |
Restructuring Cost And Reserve [Line Items] | |
Schedule of allocation of purchase price as of the acquisition date | US$ Amortization period Cash and cash equivalents 339,611 Cash-segregated for regulatory purpose 22,094,198 Other current assets 5,098,900 Property, plant and equipment 5,581 3-5 years Intangible assets Operating License 6,900,000 Indefinite life Goodwill (note 5) 2,421,403 Other current liabilities (26,062,403 ) Deferred tax liabilities (1,449,000 ) 9,348,290 |
Ocean Joy | |
Restructuring Cost And Reserve [Line Items] | |
Schedule of allocation of purchase price as of the acquisition date | The following table summarizes the consideration for this transaction: US$ The fair value of its previously held equity interests in Ocean Joy at the acquisition Date 462,784 Cash Consideration 1,079,830 Settlement of pre-existing balance with Ocean Joy 1,426,919 Total consideration 2,969,533 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Acquisition (Continued) Acquisition of Ocean Joy Holdings Limited (“Ocean Joy”) (Continued) The assets and liabilities recognized as of the acquisition are as follows : US$ Amortization period Cash and cash equivalents 3,664,133 Cash-segregated for regulatory purpose 2,166,432 Receivables-Brokers, dealers and clearing organizations 915,497 Other current assets 190,132 Property, plant and equipment 82,284 3-5 years Deferred tax assets, net 13,060 Intangible assets Operating License 527,060 Indefinite life Trading rights 128,551 Indefinite life Other non-current assets 218,537 Payable to customers (2,884,596 ) Other payables (2,018,511 ) Other current liabilities (17,346 ) Deferred tax liabilities (86,965 ) Net identifiable assets acquired 2,898,268 Add: goodwill (Note 5) 71,265 Total 2,969,533 |
Schedule of proforma acquisition | For the years ended December 31, 2020 2021 US$ US$ Unaudited Unaudited Pro forma net revenue 138,662,645 264,887,363 Pro forma net income 18,900,392 14,521,983 |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Prepaid Expense And Other Assets Current [Abstract] | |
Summary of prepaid expenses and other assets | As of December 31, 2020 2021 US$ US$ IPO distribution service and promotional and advertisement service receivables 5,360,831 3,588,851 Prepaid data and IT service expenses 1,315,469 2,226,216 Prepaid income taxes — 1,978,308 Rental and other deposits 391,625 1,885,272 Advances to employees 825,682 1,458,582 Prepaid professional service fees 998,235 1,225,020 Prepaid marketing expenses 402,724 1,073,965 Wealth management service fees receivables — 727,209 Input VAT receivables 1,174,934 529,985 Interest receivables from term deposits 429,454 117,392 Others 315,476 1,240,823 Total 11,214,430 16,051,623 |
PROPERTY, EQUIPMENT AND INTAN_2
PROPERTY, EQUIPMENT AND INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property Equipment And Intangible Assets [Abstract] | |
Summary of property, equipment and intangible assets, net | As of December 31, 2020 2021 US$ US$ Electronic Equipment 2,385,263 6,292,614 Office Equipment 235,894 391,223 Leasehold improvement 100,417 752,194 Software 159,939 367,853 Less: accumulated depreciation (1,252,714 ) (2,661,241 ) Property and equipment, net 1,628,799 5,142,643 Licenses 7,967,036 8,677,136 Trademark 125,285 128,281 Trading right — 128,212 Less: accumulated amortization (28,086 ) (44,620 ) Intangible assets, net 8,064,235 8,889,009 Total 9,693,034 14,031,652 |
Summary of Estimated Amortization Expenses for Intangible Assets | The estimated amortization expenses for the above intangible assets for future years are as follows: Years ending December 31, Amortization for Intangible Assets US$ 2022 16,732 2023 16,732 2024 16,732 2025 16,732 2026 16,732 Total 83,660 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the years ended December 31, 2020 and 2021 are as follows: For the years ended, 2020 2021 US$ US$ Balance at the beginning of year 2,421,403 2,421,403 Increase in goodwill related to acquisitions during the year (Note 2) — 71,265 Impairment loss — — Balance at the end of year 2,421,403 2,492,668 |
LONG TERM INVESTMENTS (Tables)
LONG TERM INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Long Term Investments [Abstract] | |
Summary of equity securities without readily determinable fair value | The Group had the following equity securities without readily determinable fair value: As of December 31, 2020 2021 US$ US$ TradeUP Acquisition Corp.("UPTDU") ( a) — 445,400 Fortune Rise Acquisition Corporation ("FRLAU") ( b) — 201,248 Shenzhen Guru Club Information Technology Group Co., LTD. ("Guru") ( c) 1,532,567 1,569,218 Shanghai Realize Investment Consulting Co., Ltd. ("Realize") ( d) — 941,531 Shanghai Yisong Consulting Management Co., LTD ("Yisong") ( e) — 407,997 UNext Group Limited ("UNext") ( f) 600,000 — Total 2,132,567 3,565,394 (a) UPTDU is a NASDAQ listed blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. In February and July 2021, the Group respectively acquired 230,000 founder shares (8,500 of which was forfeited in September 2021) and 44,040 private shares issued by UPTDU for a total purchase consideration of US$445,400. After the completion of UPTDU's initial public offering in July 2021, the shares owned by the Group take up 4.54% equity interests of UPTDU with no significant impacts. The founder shares and private shares are each subject to transfer restrictions pursuant to lock-up provisions. No observable price change has been identified and no fair value change was recorded for the year ended December 31, 2021. (b) FRLAU is a NASDAQ listed blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. In November 2021, the Group acquired 122,000 founder shares, 20,000 private shares and 60,000 representative shares issued by FRLAU for a total purchase consideration of US$201,248, which accounted for 1.57% equity interests of FRLAU with no significant impacts. The founder shares, private shares and representative shares are each subject to transfer restrictions pursuant to lock-up provisions. No observable price change has been identified and no fair value change was recorded for the year ended December 31, 2021. ( c ) In October 2017, the Group acquired 1.0% equity interests of Guru, formerly known as Tibet Gelonghui Information Technology Co., LTD., for a purchase consideration of US$1,536,972 (RMB10,000,000). Guru is principally engaged in information technology development, technical consultation and technical services. On January 1, 2018, the Group adopted ASU 2016-01 and ASU 2018-03 with no significant impacts noted. No observable price change has been identified and no fair value change was recorded for the years ended December 31, 2020 and 2021. The change of balance was foreign exchange difference. (d) In August 2021, the Group acquired 1.5% equity interests of Realize for a purchase consideration of US$926,183 (RMB6,000,000). Realize is principally engaged in ESOP advisory and management services. No observable price change has been identified and no fair value change was recorded for the years ended December 31, 2021. The change of balance was foreign exchange difference. 6. LONG‑TERM INVESTMENTS (Continued) Equity securities without readily determinable fair value (Continued) (e) In April 2021, the Group acquired 5% equity interests of Yisong for a purchase consideration of US$400,962 (RMB2,600,000). Yisong is principally engaged in consulting and financial advisory services. No observable price change has been identified and no fair value change was recorded for the year ended December 31, 2021. The change of balance was foreign exchange difference. (f) In December 2019, the Group acquired 0.6% equity interests of UNext for a purchase consideration of US$600,000. UNext is principally engaged in financing service. For the year ended December 31, 2021, due to the deterioration of the operating conditions of UNext, the Group had made full provision of US$600,000 for the impairment of this investment. . |
Summary of available for sale investments | The Group had the following available‑for‑sale securities: As of December 31, 2020 2021 US$ US$ Beijing Yingxin Network Technology Co., LTD ("Yingxin") ( g) 803,938 823,165 Alphalion Technology Holding Limited ("Alphalion") (h) 3,120,113 5,019,718 Total 3,924,051 5,842,883 ( g ) In September 2017, the Group acquired 2.91% equity interests of Yingxin for a purchase consideration of US$461,092 (RMB3,000,000). Yingxin is principally engaged in IT services, including systems, data or maintenance. The investment was classified as available-for-sale securities as the Group determined that the preferred shares were debt securities due to the redemption option available to the investor and measured the investment subsequently at fair value. There were no unrealized holding gains or losses recognized in other comprehensive income for the years ended December 31, 2019, 2020 and 2021. The change of balance in 2021 was foreign exchange difference. ( h ) In February 2019, the Group entered into a series of agreements to covert its short-term interest-free loans to Alphalion Technology Holding Limited and its affiliates amounted at US$ 3,060,113 |
Summary of equity method investment | The Group had the following Equity method investments: As of December 31, 2020 2021 US$ US$ Ocean Joy Holdings Limited ("Ocean Joy") ( i ) 424,333 — TradeUP Global Sponsor LLC ("Global Sponsor") (j) — 369,567 Total 424,333 369,567 ( i ) The Group prepaid US$462,276 (HK$3,600,000) in 2019 for the investment of 30% equity interests in Ocean Joy (including its sole subsidiary Tiger Brokers HK) which has a license approved by SFC in Hong Kong to provide securities and futures services. The investment was completed in May 2020. The Group acquired the remaining 70% equity interests in Ocean Joy on October 26, 2021. Prior to the acquisition, the Group accounted for the investment under the equity method. For the year ended December 31, 2020 and the period from January 1, 2021 through October 26, 2021, the Group had recorded an investment loss of US$40,625 and US$39,141, respectively. On October 26, 2021, the Group has obtained control over Ocean Joy and accounted for it as a consolidated subsidiary (Note 2). (j) In April 2021, the Group acquired 20% equity interests of Global Sponsor for a purchase consideration of US$454,560. Global Sponsor is the sponsor to TradeUP Global Corporation, a NASDAQ listed blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. The Group accounted for the investment using equity method accounting because the Group does not control the investee but has the ability to exercise significant influence over the operating and financial policies of the investee. For the year ended December 31, 2021, the Group recorded an investment loss of US$84,993. |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accrued Liabilities And Other Liabilities [Abstract] | |
Summary of accrued expenses and other current liabilities | As of December 31, 2020 2021 US$ US$ Accrued payroll and welfare 12,099,447 14,760,788 Income and non-income based taxes payables 4,936,372 7,156,828 Accrued marketing expenses 6,251,009 3,748,010 Accrued professional expenses 2,471,569 1,749,229 Advanced from customers 429,531 1,748,167 Accrued data and IT service expenses 622,641 1,443,897 Amounts due to employees for sale of their shares exercised under the share incentive plan — 1,131,614 Others 327,632 2,007,644 Total 27,138,201 33,746,177 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of profit (loss) before income taxes | The components of income (loss) before income taxes are as follows: For the years ended December 31, 2019 2020 2021 US$ US$ US$ The Cayman Islands 946,035 (1,302,817 ) 2,442,082 PRC 6,117,021 20,551,832 21,320,470 International (16,368,280 ) 2,780,777 (4,708,080 ) Total income (loss) before income taxes (9,305,224 ) 22,029,792 19,054,472 |
Schedule of current and deferred portions of income taxes included in the consolidated statements of operations | The current and deferred portions of income tax expense (benefit), all of which was incurred outside the Cayman Islands, included in the consolidated statements of comprehensive income (loss) were as follows: For the years ended December 31, 2019 2020 2021 US$ US$ US$ Current tax expense 2,859,774 1,077,877 5,026,081 Deferred tax expense (benefit) (6,215,140 ) 1,772,670 (662,310 ) Income tax expense (benefit) (3,355,366 ) 2,850,547 4,363,771 |
Schedule of significant components of the Group's deferred tax assets | The significant components of the Group’s deferred tax assets and liabilities were as follows: As of December 31, 2020 2021 US$ US$ Deferred tax assets Accrued expenses — 64,103 Allowance for doubtful accounts 25,704 142,385 Long-term investments 38,314 39,230 Advertising expense carryforwards 877,424 1,081,850 Net operating loss carryforwards 13,407,157 15,101,309 Withholding tax credit carryforwards 1,106,569 1,161,221 Lease liabilities 1,799,483 1,511,324 Total deferred tax assets 17,254,651 19,101,422 Less: valuation allowance (4,000,159 ) (5,224,095 ) Deferred tax assets, net of valuation allowance 13,254,492 13,877,327 Deferred tax liabilities Right-of-use assets 1,799,483 1,511,324 Long term investments 86,042 88,098 Intangible assets 1,449,000 1,535,965 Financial instruments held, at fair value — 19,545 Total deferred tax liabilities 3,334,525 3,154,932 Deferred tax assets, net 9,919,967 12,258,360 Deferred tax liabilities, net — 1,535,965 |
Schedule of movement of the valuation allowance | The movement of the valuation allowance is as follows: For the years ended December 31, 2019 2020 2021 US$ US$ US$ Balance at the beginning of the year 2,931,196 4,888,240 4,000,159 Additions of valuation allowance 2,573,942 1,775,887 2,814,445 Reversals of valuation allowance — (2,802,174 ) (1,628,176 ) Foreign currency translation adjustment (616,898 ) 138,206 37,667 Balance at the end of the year 4,888,240 4,000,159 5,224,095 |
Schedule of expiration status of net operating loss carryforwards | The expiration status of net operating loss carryforwards as of December 31, 2021 is listed below. Expiration year US$ 2022 7,170 2023 434,585 2024 4,222,851 2025 9,112,742 2026 through 2031 40,608,576 Indefinitely 29,211,505 |
Schedule of Reconciliations between the income tax expense (benefit) computed by applying the PRC statutory income tax rate to income (loss) before income taxes and the actual income tax expense (benefit) | Reconciliations between the income tax expense (benefit) computed by applying the PRC For the years ended December 31, 2019 2020 2021 US$ US$ US$ Income (loss) before income taxes (9,305,224 ) 22,029,792 19,054,472 PRC statutory tax rate 25 % 25 % 25 % Income tax at statutory income tax rate (2,326,306 ) 5,507,448 4,763,618 Effect of income tax rate difference in other jurisdictions 124,406 (773,402 ) 596,978 Effect of preferential tax rates (2,673,841 ) 1,837,667 (1,735,439 ) Super deduction of research and development expense (2,479,428 ) (3,607,755 ) (4,476,114 ) Effect of expenses not deductible for income tax purposes 1,425,861 912,876 4,028,459 Changes in valuation allowance 2,573,942 (1,026,287 ) 1,186,269 Income tax expense (benefit) (3,355,366 ) 2,850,547 4,363,771 |
CONVERTIBLE BOND PAYABLE (Table
CONVERTIBLE BOND PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Convertible Bonds Payable | US$ 2021 Series A1 Note US$ 44,000,000 1.00% due to 2026 37,148,318 2021 Series A2 Note US$ 21,000,000 1.00% due to 2026 21,120,487 2021 Series B Note US$ 90,000,000 1.00% due to 2026 90,572,871 148,841,676 |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value measurements of the Group's assets that were measured at fair value on a recurring basis | As of December 31, 2020 and 2021, information about inputs for the fair value measurements of the Group’s assets that were measured at fair value on a recurring basis in periods subsequent to their initial recognition is as follows: As of December 31, 2020 Quoted prices in active markets for identical instruments (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (level 3) Total balance US$ US$ US$ US$ Financial instruments held, at fair value Funds 283,764 — — 283,764 Corporate bonds 263,750 — — 263,750 Stock 15,022 — — 15,022 Long‑term available-for-sale securities — — 3,924,051 3,924,051 Total 562,536 — 3,924,051 4,486,587 As of December 31, 2021 Quoted prices in active markets for identical instruments (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (level 3) Total balance US$ US$ US$ US$ Financial instruments held, at fair value Funds 419,503 — 1,971,872 2,391,375 Stock 1,498,706 — — 1,498,706 Derivative — 12,906 — 12,906 Long‑term available-for-sale securities — — 5,842,883 5,842,883 Total 1,918,209 12,906 7,814,755 9,745,870 |
Schedule of movements of Level 3 fair value measurements | The movements of Level 3 fair value measurements for the years ended December 31, 2020 and 2021 are as follows: US$ As of January 1, 2020 3,980,806 Additions during the year — Net unrealized gains 41,149 Impairment (150,978 ) Foreign currency translation adjustment 53,074 As of December 31, 2020 3,924,051 Additions during the year 1,000,000 Net unrealized gains 2,871,477 Impairment — Foreign currency translation adjustment 19,227 As of December 31, 2021 7,814,755 |
SHARE BASED COMPENSATION (Table
SHARE BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of fair value of the options granted was estimated on the date of grant that prepared by the management with the assistance of an independent third party appraiser, and was determined using a binomial model | The fair value of the options granted was estimated on the date of grant that prepared by the management with the assistance of an independent third‑party appraiser, and was determined using a binomial model with the following assumptions: Fair value per ordinary share at grant date ( 1) Exercise price ( 2) Expected volatility ( 3) Contractual life ( 4) Risk-free interest rate ( 5) Expected dividend ( 6) US$ US$ Granted in 2014 0.008 0.00001 40% 10 years 3.0-3.1% 0.0 Granted in 2015 0.008-0.016 0.00001 39% 10 years 2.5-3.1% 0.0 Granted in 2016 0.019-0.030 0.00001 39% 10 years 2.3-3% 0.0 Granted in 2017 0.034-0.059 0.00001-0.040 39% 10 years 3.0-3.2% 0.0 Granted in 2018 0.147-0.405 0.0001-0.200 35-38% 10 years 3.1-3.8% 0.0 Granted in 2019 0.274-0.484 0.00001-0.274 37-39% 10 years 3.0-3.4% 0.0 Granted in 2021 0.2184 1.1853 55% 10 years 0.88% 0.0 (1) Fair value of underlying ordinary shares. Prior to the completion of initial public offering, the estimated fair value of the ordinary shares underlying the options as of the respective grant dates was determined based on a valuation with the assistance of a third party appraiser. The fair value of the underlying ordinary shares is determined based on the closing market price of the share after the completion of initial public offering in March 2019. (2) Exercise price. The exercise price of the options was determined by the Company’s Board of Directors. (3) Volatility. The volatility of the underlying ordinary shares was estimated based on the historical share price movement of the comparable companies for the period of time close to the expected time to exercise. (4) Contractual life. The contractual life of the share options was the period between the grant date and the expiry date. (5) Risk free rate. Risk free rate is estimated based on market yield of U.S. Sovereign Curve with maturity close to the share options as of the valuation date, plus country spread. (6) Expected dividend. The Company does not expect to declare any dividends in the foreseeable future. |
Summary of share option activities | A summary of the Company’s share option activities for the years ended December 31, 2020 and 2021 is presented below: Number of share options Weighted average exercise price Weighted average remaining contractual life Aggregate intrinsic value US$ Years US$ Outstanding as of January 1, 2020 95,933,244 0.05223 8.46 17,694,050 Cancelled to grant RSUs (7,660,000 ) 0.27400 Exercised (16,688,995 ) 0.00031 Forfeited (11,840,000 ) 0.09374 Outstanding as of December 31, 2020 59,744,249 0.03005 7.50 29,829,248 Granted 750,000 1.18530 Exercised (15,767,275 ) 0.03322 Forfeited (370,185 ) 0.04544 Outstanding as of December 31, 2021 44,356,789 0.04833 6.77 12,375,711 |
Schedule of service based RSU | A summary of the Company’s RSU activities for the years ended December 31, 2020 and 2021 is presented below: Number of Units Weighted-Average Grant-Date Fair Value US$ Unvested as of January 1, 2020 28,406,980 0.34 Granted 44,179,590 0.23 Cancelled to grant new RSUs (900,000 ) 0.26 Exercised (449,990 ) 0.23 Forfeited (1,410,000 ) 0.20 Unvested as of December 31, 2020 69,826,580 0.28 Granted 21,259,735 0.97 Exercised (22,237,430 ) 0.34 Forfeited (3,032,440 ) 0.34 Unvested as of December 31, 2021 65,816,445 0.48 |
NET INCOME (LOSS) PER SHARE (Ta
NET INCOME (LOSS) PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted net income (loss) per share | The following table sets forth the computation of basic and diluted net income (loss) per share for the following years: For the years ended December 31, 2019 2020 2021 US$ US$ US$ Numerator: Net income (loss) attributable to ordinary shareholders of UP Fintech Holding Limited (6,589,431 ) 16,064,793 14,690,701 Less: The dilutive effect arising from the convertible bonds — — 2,900,645 Numerator for diluted net income (loss) per ordinary share (6,589,431 ) 16,064,793 11,790,056 Denominator: Weighted average shares used in calculating net income (loss) per ordinary share Basic 1,751,784,176 2,117,904,025 2,205,186,257 Effect of dilutive securities: Dilutive effect of share options — 25,462,481 17,457,965 Dilutive effect of restricted shares units — 18,865,819 32,613,976 Dilutive effect of convertible bonds — — 80,459,006 Denominator for diluted net income (loss) per ordinary share 1,751,784,176 2,162,232,325 2,335,717,204 Net income (loss) per ordinary share Basic (0.00 ) 0.01 0.01 Diluted (0.00 ) 0.01 0.01 |
Schedule of potential ordinary shares outstanding excluded from the computation of diluted net loss per ordinary share | The following table summarizes potential ordinary shares outstanding excluded from the computation of diluted net loss per ordinary share for the year ended December 31, 2019, because their effect is anti-dilutive: For the year ended December 31,2019 Share issuable upon exercise of share options 95,933,244 Share issuable upon exercise of RSUs 28,406,980 |
RELATED PARTY BALANCES AND TR_2
RELATED PARTY BALANCES AND TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of amount due from related parties | As of December 31, Name Relationship with the Group 2020 2021 US$ US$ Amounts due from related parties: Alphalion Technology Holding Limited and its affiliates ("Alphalion Group") (1) Long-term available-for-sale investee 1,032,211 1,046,190 Fast Connection Limited (2) Entity controlled by a principal shareholder of the Company 1,500,000 — Ocean Joy and its subsidiary (3) Equity method investee 1,044,738 — Individual directors and executive officers (4) Directors or officers of the Group 1,488,273 1,901,681 Subtotal 5,065,222 2,947,871 Receivables from brokers, dealers, and clearing organizations: Interactive Brokers LLC (5) Under common control with a principal shareholder of the Company 761,681,403 804,639,024 Ocean Joy and its subsidiary (6) Equity method investee 2,637,529 — Subtotal 764,318,932 804,639,024 (1) The amount represents short-term, interest-free loans provided to Alphalion Group to facilitate its daily operational cash flow needs and prepaid IT service fee as of December 31, 2020 and 2021. (2) The amount represents the Group's prepaid consulting fee to Fast Connection Limited as of December 31, 2020. Because of the resignation of the director assigned by a principal shareholder of the Company which can control Fast Connection Limited in the beginning of 2021, Fast Connection Limited was no longer considered a related party in 2021. (3) The amounts of US (4) The Group provided brokerage services and margin loans to its individual directors and executive officers and their spouses during its ordinary courses of business. The amounts represent receivables from directors and executive officers of the Group as of December 31, 2020 and 2021 respectively. (5) The amount represents the Group’s customer deposit, revenue receivables and securities lending transactions from the Company's trade execution partner and principal shareholder, Interactive Brokers. (6) The amount represents the Group’s customer deposit and revenue receivables deposited in Tiger Brokers HK as the execution partner. As of December 31, Name Relationship with the Group 2020 2021 US$ US$ Payables to brokers, dealers and clearing organizations-Related parties: Interactive Brokers LLC (7) Under common control with a principal shareholder of the Company 218,563,624 170,338,199 Ocean Joy and its subsidiary (8) Equity method investee 10,496 — Subtotal 218,574,120 170,338,199 Amount due to related parties: Individual directors and executive officers (9) Directors or officers of the Group — 2,039,287 Subtotal — 2,039,287 Convertible bonds -Related parties: Xiaomi Corporation and its affiliates (10) Principal shareholder of the Company — 25,330,766 Subtotal — 25,330,766 (7) The amount represents the Group’s margin and cash collaterals received from securities borrowing transactions for the Company's trade execution partner and principal shareholder, Interactive Brokers. (8) The amount represents the Group’s service fee payables to Ocean Joy Holdings Limited and its subsidiary. (9) The amounts represent the cash account balance of directors and executive officers. (10) The amount represents the convertible bonds balance issued to Xiaomi Corporation and its affiliates. 15. RELATED PARTY BALANCES AND TRANSACTIONS (Continued) Transactions with related parties: For the years ended December 31, Name Relationship with the Group 2019 2020 2021 US$ US$ US$ Xiaomi Corporation and its affiliates (11) Principal shareholder of the Company (517,134 ) (397,590 ) — Alphalion Group (12) Long-term available-for-sale investee 617,500 — (94,333 ) Fast Connection Limited (13) Entity controlled by a principal shareholder of the Company — (700,000 ) — Ocean Joy and its subsidiary (14) Equity method investee — 16,173 28,350 Ocean Joy and its subsidiary (15) Equity method investee — (51,446 ) (686,576 ) Interactive Brokers LLC (16) Under common control with a principal shareholder of the Company 38,089,982 62,704,986 73,293,370 Interactive Brokers LLC (17) Under common control with a principal shareholder of the Company (2,102,385 ) (7,099,254 ) (16,823,850 ) Guangzhou 88 (18) Entity controlled by management of the Company’s subsidiary (755,524 ) — — Individual directors and executive officers (19) Directors or officers of the Group 79,949 138,661 Xiaomi Corporation and its affiliates (20) Principal shareholder of the Company — — 2,860,123 Xiaomi Corporation and its affiliates (21) Principal shareholder of the Company — — (350,519 ) (11) The amounts represent the purchase of marketing services from Xiaomi Corporation and its affiliates for the years ended December 31, 2019, 2020 and 2021, respectively. (12) The amounts represent the sale of a Group's subsidiary to Alphalion Group for a gain of US$617,500 in 2019 with a consideration for the sale of US$106,105 and purchase of IT services from Alphalion Group in 2021. (13) The amounts represent consulting fees paid to Fast Connection Limited for the years ended December 31, 2019, 2020, respectively. Because of the resignation of the director assigned by a principal shareholder of the Company which can control Fast Connection Limited in the beginning of 2021, Fast Connection Limited was no longer considered a related party in 2021. (14) The amounts represent the commissions and interest income earned from Tiger Brokers HK for periods from June to December of 2020 and January to October of 2021. (15) The amounts represent the execution and clearing fees paid to Tiger Brokers HK for periods from June to December of 2020 and January to October of 2021. 15. RELATED PARTY BALANCES AND TRANSACTIONS (Continued) Transactions with related parties: (Continued) (16) The amounts represent the commissions, financing service fees, interest income and other revenues earned from Interactive Brokers for the years ended December 31, 2019, 2020 and 2021, respectively, netting off interest expense incurred from margin, security borrowing and lending business. (17) The amounts represent the execution and clearing fees paid to Interactive Brokers for the years ended December 31, 2019, 2020 and 2021, respectively. (18) The amounts represent the Company's impairment loss on equity investment in Guangzhou 88. The Company has converted its short-term, interest-free loans provided to Guangzhou 88 into equity interests and measured at long-term equity securities without readily determinable fair value. Guangzhou 88 was a software development company that principally engaged in providing investor events information. In the year of 2019, the equity investment was fully impaired due to the operating difficulties of Guangzhou 88 which subsequently dissolved in February 2020. (19) The amounts represent the commissions and interest income earned by providing brokerage services and margin loans to the individual directors and executive officers during its ordinary courses of business for the years ended December 31, 2019, 2020 and 2021, respectively. (20) The amount represents the changes in the fair value of the convertible bonds issued to Xiaomi Corporation and its affiliates during the year (Note 9) (21) The amount represents the interest expense of the convertible bonds issued to Xiaomi Corporation and its affiliates accreted at an effective interest rate of 5.4% for the year ended December 31, 2021 (Note 9). |
COLLATERALIZED TRANSACTIONS (Ta
COLLATERALIZED TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Collateralized Financings [Abstract] | |
Schedule of fair values of client margin asset and security borrowings that were available to utilize as collateral | The following table summarizes the amounts related to collateralized transactions as of December 31, 2020 and 2021: As of December 31, 2020 2021 US$ US$ Total client margin asset 1,626,260,131 1,759,500,650 Fulfillment of client margin financings 168,840,684 202,004,165 Fulfillment of client short sales 21,492,878 31,612,750 Securities lending to other brokers 434,780,528 392,897,973 Total collateral repledged 625,114,090 626,514,888 |
Lease (Tables)
Lease (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Lessee Disclosure [Abstract] | |
Schedule of balances reported in the consolidated balance sheets related to the Group's leases | The following table presents balances reported in the consolidated balance sheets related to the Group's leases: For the years ended December 31, 2020 2021 US$ US$ Operating lease right-of-use assets 7,280,763 6,613,520 Operating lease liabilities 7,207,293 5,702,954 |
Schedule of operating lease expenses and short-term lease expenses | The following table presents operating lease expenses and short-term lease expenses reported in the consolidated statements of comprehensive income (loss) related to the Group's leases: 17. Lease (Continued) Operating leases (Continued) For the years ended December 31, 2020 2021 US$ US$ Operating lease expenses 2,985,665 3,881,251 Short-term lease expenses 508,791 257,150 |
Summary of supplemental information related to operating leases | A summary of supplemental information related to operating leases as of December 31, 2021 is as follows: For the years ended December 31, 2020 2021 US$ US$ Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used in operating leases 3,422,191 5,058,078 Non-cash right-of-use assets in exchange for new lease obligations: Operating leases 4,281,660 4,058,759 Weighted average remaining lease term: Operating leases 3 years 4 years Weighted average discount rate: Operating leases 5.3 % 5.5 % |
Summary of maturity analysis of the annual undiscounted cash flows | The following is a maturity analysis of the annual undiscounted cash flows for the annual periods ended December 31: 2021 US$ Years ending December 31: 2022 2,695,299 2023 1,036,814 2024 838,969 2025 452,218 2026 465,785 2027 and after 805,931 Total undiscounted operating lease payments 6,295,016 Less: imputed interest (592,062 ) Present value of operating lease liabilities 5,702,954 |
REGULATORY REQUIREMENT (Tables)
REGULATORY REQUIREMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Regulatory Capital Requirements [Abstract] | |
Schedule of net capital requirement and the excess net capital for the Company's broker dealer subsidiaries | Net Capital Requirement Excess Net Capital December 31, 2021 US$ US$ US$ TradeUP Securities 95,665,200 4,283,392 91,381,808 US Tiger Securities 10,429,009 250,000 10,179,009 Tiger Brokers SG 113,290,584 12,443,882 100,846,702 Tiger Brokers HK 14,569,722 384,635 14,185,087 Total 233,954,515 17,361,909 216,592,606 Net Capital Requirement Excess Net Capital December 31, 2020 US$ US$ US$ TBNZ 61,427,613 34,258,411 27,169,202 TradeUP Securities 14,546,628 250,000 14,296,628 US Tiger Securities 9,206,613 250,000 8,956,613 Tiger Brokers SG 9,718,825 2,382,717 7,336,108 Total 94,899,679 37,141,128 57,758,551 |
ORGANIZATION AND PRINCIPAL AC_3
ORGANIZATION AND PRINCIPAL ACTIVITIES - Subsidiaries (Details) | Dec. 31, 2021 |
TBNZ | |
Consolidation Less Than Wholly Owned Subsidiary Parent Ownership Interest Effects Of Changes Net [Line Items] | |
Legal ownership (as a percent) | 100.00% |
Up International | |
Consolidation Less Than Wholly Owned Subsidiary Parent Ownership Interest Effects Of Changes Net [Line Items] | |
Legal ownership (as a percent) | 100.00% |
Tiger SG | |
Consolidation Less Than Wholly Owned Subsidiary Parent Ownership Interest Effects Of Changes Net [Line Items] | |
Legal ownership (as a percent) | 100.00% |
Tiger Brokers SG | |
Consolidation Less Than Wholly Owned Subsidiary Parent Ownership Interest Effects Of Changes Net [Line Items] | |
Legal ownership (as a percent) | 100.00% |
US Tiger Securities | |
Consolidation Less Than Wholly Owned Subsidiary Parent Ownership Interest Effects Of Changes Net [Line Items] | |
Legal ownership (as a percent) | 100.00% |
Beijing BHXS, Beijing WFOE | |
Consolidation Less Than Wholly Owned Subsidiary Parent Ownership Interest Effects Of Changes Net [Line Items] | |
Legal ownership (as a percent) | 100.00% |
Tiger Fintech Holdings | |
Consolidation Less Than Wholly Owned Subsidiary Parent Ownership Interest Effects Of Changes Net [Line Items] | |
Legal ownership (as a percent) | 100.00% |
Beijing Yixin, Beijing WFOE | |
Consolidation Less Than Wholly Owned Subsidiary Parent Ownership Interest Effects Of Changes Net [Line Items] | |
Legal ownership (as a percent) | 100.00% |
Trading Front | |
Consolidation Less Than Wholly Owned Subsidiary Parent Ownership Interest Effects Of Changes Net [Line Items] | |
Legal ownership (as a percent) | 100.00% |
Wealthn | |
Consolidation Less Than Wholly Owned Subsidiary Parent Ownership Interest Effects Of Changes Net [Line Items] | |
Legal ownership (as a percent) | 100.00% |
Kastle | |
Consolidation Less Than Wholly Owned Subsidiary Parent Ownership Interest Effects Of Changes Net [Line Items] | |
Legal ownership (as a percent) | 100.00% |
Tung Chi | |
Consolidation Less Than Wholly Owned Subsidiary Parent Ownership Interest Effects Of Changes Net [Line Items] | |
Legal ownership (as a percent) | 100.00% |
TradeUp Securities | |
Consolidation Less Than Wholly Owned Subsidiary Parent Ownership Interest Effects Of Changes Net [Line Items] | |
Legal ownership (as a percent) | 100.00% |
Tradeup | |
Consolidation Less Than Wholly Owned Subsidiary Parent Ownership Interest Effects Of Changes Net [Line Items] | |
Legal ownership (as a percent) | 100.00% |
Hangzhou U-Tiger | |
Consolidation Less Than Wholly Owned Subsidiary Parent Ownership Interest Effects Of Changes Net [Line Items] | |
Legal ownership (as a percent) | 100.00% |
TFNZ | |
Consolidation Less Than Wholly Owned Subsidiary Parent Ownership Interest Effects Of Changes Net [Line Items] | |
Legal ownership (as a percent) | 100.00% |
Tiger Services AU | |
Consolidation Less Than Wholly Owned Subsidiary Parent Ownership Interest Effects Of Changes Net [Line Items] | |
Legal ownership (as a percent) | 100.00% |
Tiger Brokers HK | |
Consolidation Less Than Wholly Owned Subsidiary Parent Ownership Interest Effects Of Changes Net [Line Items] | |
Legal ownership (as a percent) | 100.00% |
ORGANIZATION AND PRINCIPAL AC_4
ORGANIZATION AND PRINCIPAL ACTIVITIES - The VIE arrangements (Details) - 12 months ended Dec. 31, 2021 | $ / shares | ¥ / shares |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Standard equity interest purchase price | (per share) | $ 1.5 | ¥ 10 |
Term (in years) | 10 years | 10 years |
Annual service fee (as a percent) | 99.00% | 99.00% |
Term of service agreement (in years) | 10 years | 10 years |
ORGANIZATION AND PRINCIPAL AC_5
ORGANIZATION AND PRINCIPAL ACTIVITIES - Assets, liabilities, results of operations and cash flows of the VIEs (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Variable Interest Entity [Line Items] | |||
Current assets | $ 3,271,271,527 | $ 2,152,221,987 | |
Total assets | 3,321,418,656 | 2,192,317,351 | |
Current liabilities | 2,719,940,143 | 1,951,371,679 | |
Total liabilities | 2,874,792,788 | 1,956,630,223 | |
Total revenues | 264,488,162 | 138,496,690 | $ 58,662,900 |
Net income (loss) | 14,690,701 | 19,179,245 | (5,949,858) |
Net cash provided by (used in) operating activities | 413,203,956 | 535,281,015 | 243,309,139 |
Net cash (used in) provided by investing activities | 10,918,825 | 43,555,619 | (22,040,111) |
Net cash provided by (used in) financing activities | 330,881,355 | (8,366,076) | 114,906,520 |
VIEs | |||
Variable Interest Entity [Line Items] | |||
Current assets | 51,873,657 | 48,118,025 | |
Non-current assets | 16,083,322 | 16,253,660 | |
Total assets | 67,956,979 | 64,371,685 | |
Current liabilities | 25,422,094 | 25,955,828 | |
Non-current liabilities | 6,858 | 1,158,044 | |
Total liabilities | 25,428,952 | 27,113,872 | |
Total revenues | 65,295,325 | 16,191,693 | 44,134,256 |
Net income (loss) | (700,720) | (7,524,524) | 16,505,238 |
Net cash provided by (used in) operating activities | 18,431,299 | (597,323) | 6,567,594 |
Net cash (used in) provided by investing activities | (4,048,620) | 646,647 | (10,240,498) |
Net cash provided by (used in) financing activities | $ (5,091,778) | $ 311,688 | $ 43,730 |
ORGANIZATION AND PRINCIPAL AC_6
ORGANIZATION AND PRINCIPAL ACTIVITIES - Risks in relation to the VIE structure (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Variable Interest Entity [Line Items] | |||
Total assets | $ 3,321,418,656 | $ 2,192,317,351 | |
Total liabilities | 2,874,792,788 | 1,956,630,223 | |
Total revenues | 264,488,162 | 138,496,690 | $ 58,662,900 |
VIEs | |||
Variable Interest Entity [Line Items] | |||
Total assets | 67,956,979 | 64,371,685 | |
Total liabilities | 25,428,952 | 27,113,872 | |
Total revenues | 65,295,325 | 16,191,693 | 44,134,256 |
VIEs | Intercompany Eliminations | |||
Variable Interest Entity [Line Items] | |||
Total assets | 29,039,312 | 38,117,451 | |
Total liabilities | 8,752,699 | 11,867,106 | |
Total revenues | $ 60,971,555 | $ 13,565,810 | $ 41,044,651 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Consolidation of sponsored funds and Derivative financial instruments (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Gain or loss recognized upon deconsolidation | $ 0 | |
Derivatives reflected in financial instruments held at fair value | 3,902,987 | $ 562,536 |
Realized loss | 0 | 2,316,585 |
Unrealized loss | 80,703 | 0 |
Stock Index Future Contracts and Warrants | ||
Derivatives reflected in financial instruments held at fair value | $ 12,906 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cash Segregated for Regulatory Purposes (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
Cash-segregated for regulatory purposes | $ 433,540,023 | $ 29,625,645 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Receivables from Customers (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||
Allowance for doubtful accounts receivable | $ 426,953 | $ 91,788 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Receivables from Customers (Details 1) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||
Balance at the beginning of the year | $ 91,788 | ||
Accruals | 426,953 | $ 91,788 | $ 0 |
Balance at the end of the year | $ 518,741 | $ 91,788 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property, equipment, and intangible assets, net (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Electronic Equipment | |
Property Plant And Equipment [Line Items] | |
Useful life (in years) | 3 years |
Office Equipment | Minimum | |
Property Plant And Equipment [Line Items] | |
Useful life (in years) | 5 years |
Office Equipment | Maximum | |
Property Plant And Equipment [Line Items] | |
Useful life (in years) | 14 years 3 months |
Software | Minimum | |
Property Plant And Equipment [Line Items] | |
Useful life (in years) | 3 years |
Software | Maximum | |
Property Plant And Equipment [Line Items] | |
Useful life (in years) | 5 years |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Goodwill, Lease and Long-term investment (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Impairment of goodwill | $ 0 | $ 0 | $ 0 |
Impairment loss on equity securities without readily determinable fair values | 600,000 | 0 | 755,524 |
Impairment loss on available-for-sale investments | $ 0 | $ 150,978 | $ 0 |
Maximum | |||
Remaining lease terms (in years) | 7 years |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue recognition (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IPO Distribution Services | |||
Revenue from contracts with customers | $ 12,565,574 | $ 13,760,209 | $ 3,142,763 |
Currency Exchange Service | |||
Revenue from contracts with customers | $ 12,607,089 | $ 2,530,145 | $ 246,135 |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Research and development expenses and Foreign currencies (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Research and development expenses | $ 47,769,773 | $ 22,507,376 | $ 18,033,074 |
Cash and cash equivalents | 269,057,708 | 79,652,897 | 59,408,555 |
CNY | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Cash and cash equivalents | $ 1,606,471 | $ 5,972,337 | $ 9,473,171 |
SUMMARY OF SIGNIFICANT ACCOU_12
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration of supplier (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Total net revenues were executed and cleared by one supplier | Concentration of supplier | Supplier | |||
Concentration Risk [Line Items] | |||
Concentration risk (in percent) | 57.40% | 74.80% | 78.40% |
SUMMARY OF SIGNIFICANT ACCOU_13
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Acquisition (Details) | Oct. 26, 2021USD ($) | Oct. 26, 2021HKD ($) | May 31, 2020USD ($) | May 31, 2020HKD ($) | Jul. 31, 2019USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Oct. 27, 2021 | Oct. 26, 2021HKD ($) |
Restructuring Cost And Reserve [Line Items] | |||||||||||
Payment for a business acquisition | $ 1,079,830 | $ 6,348,290 | |||||||||
Revenues | $ 264,488,162 | $ 138,496,690 | $ 58,662,900 | ||||||||
TradeUp Securities | |||||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||||
Equity interest acquired (as a percentage) | 100.00% | ||||||||||
Business Combination, Consideration Transferred, Total | $ 9,348,290 | ||||||||||
Payment for a business acquisition | 6,348,290 | ||||||||||
Business Combination, Consideration Transferred, Equity Interests Issued | $ 3,000,000 | ||||||||||
Maximum percentage of acquired entity revenue combined in consolidated financial statements | 1.00% | ||||||||||
Maximum percentage of acquired entity assets combined in consolidated financial statements | 4.10% | ||||||||||
Business Combination, Acquisition Related Costs | $ 377,239 | ||||||||||
Ocean Joy Holdings Limited ("Ocean Joy") | |||||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||||
Equity interest acquired (as a percentage) | 70.00% | 30.00% | 30.00% | 100.00% | 70.00% | ||||||
Business Combination, Consideration Transferred, Total | $ 1,079,830 | $ 8,400,000 | $ 462,276 | $ 3,600,000 | |||||||
Maximum percentage of acquired entity revenue combined in consolidated financial statements | 0.10% | ||||||||||
Maximum percentage of acquired entity assets combined in consolidated financial statements | 2.20% | ||||||||||
Business Combination, Acquisition Related Costs | $ 11,736 | ||||||||||
Business combination, acquired receivable | $ 1,426,919 | $ 11,100,000 | |||||||||
Equity interest acquired, step acquisition (as a percentage) | 70.00% | 70.00% | |||||||||
Business combination, step acquisition fair value of equity interests | $ 462,784 | $ 3,600,000 | |||||||||
Business combination, step acquisition, equity interest gain | $ 77,593 | ||||||||||
Revenues | $ 213,895 | ||||||||||
Net income (loss) | $ 73,273 |
SUMMARY OF SIGNIFICANT ACCOU_14
SUMMARY OF SIGNIFICANT ACCOUNTING - BUSINESS ACQUISITIONS - Purchase price allocation (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Oct. 26, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Intangible assets | ||||
Goodwill (note 5) | $ 2,492,668 | $ 2,421,403 | $ 2,421,403 | |
Total purchase price | 2,969,533 | |||
TradeUp Securities | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | 339,611 | |||
Cash-segregated for regulatory purpose | 22,094,198 | |||
Other current assets | 5,098,900 | |||
Property, plant and equipment | 5,581 | |||
Intangible assets | ||||
Operating License | 6,900,000 | |||
Goodwill (note 5) | 2,421,403 | |||
Other current liabilities | (26,062,403) | |||
Deferred tax liabilities | (1,449,000) | |||
Total purchase price | $ 9,348,290 | |||
TradeUp Securities | Minimum | ||||
Intangible assets | ||||
Useful life (in years) | 3 years | |||
TradeUp Securities | Maximum | ||||
Intangible assets | ||||
Useful life (in years) | 5 years | |||
Ocean Joy Holdings Limited ("Ocean Joy") | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 3,664,133 | |||
Cash-segregated for regulatory purpose | 2,166,432 | |||
Other current assets | 190,132 | |||
Property, plant and equipment | 82,284 | |||
Intangible assets | ||||
Operating License | 527,060 | |||
Goodwill (note 5) | 71,265 | |||
Other current liabilities | (17,346) | |||
Deferred tax liabilities | (86,965) | |||
Total purchase price | $ 2,969,533 | |||
Trading rights | 128,551 | |||
Other non-current assets | 218,537 | |||
Payable to customers | (2,884,596) | |||
Other payables | (2,018,511) | |||
Net identifiable assets acquired | 2,898,268 | |||
Receivables-Brokers, dealers and clearing organizations | 915,497 | |||
Deferred tax assets, net | $ 13,060 | |||
Ocean Joy Holdings Limited ("Ocean Joy") | Minimum | ||||
Intangible assets | ||||
Useful life (in years) | 3 years | |||
Ocean Joy Holdings Limited ("Ocean Joy") | Maximum | ||||
Intangible assets | ||||
Useful life (in years) | 5 years |
SUMMARY OF SIGNIFICANT ACCOU_15
SUMMARY OF SIGNIFICANT ACCOUNTING - BUSINESS ACQUISITIONS - Summary of Consideration for Transaction (Details) | Oct. 26, 2021USD ($) | Oct. 26, 2021HKD ($) | May 31, 2020USD ($) | May 31, 2020HKD ($) | Dec. 31, 2021USD ($) | Oct. 26, 2021HKD ($) |
Business Acquisition [Line Items] | ||||||
Total consideration | $ 2,969,533 | |||||
Ocean Joy Holdings Limited ("Ocean Joy") | ||||||
Business Acquisition [Line Items] | ||||||
The fair value of its previously held equity interests in Ocean Joy at the acquisition Date | $ 462,784 | |||||
Business Combination, Consideration Transferred, Total | 1,079,830 | $ 8,400,000 | $ 462,276 | $ 3,600,000 | ||
Business combination, acquired receivable | 1,426,919 | $ 11,100,000 | ||||
Total consideration | $ 2,969,533 |
SUMMARY OF SIGNIFICANT ACCOU_16
SUMMARY OF SIGNIFICANT ACCOUNTING - BUSINESS ACQUISITIONS - Pro forma information of acquisitions (Details) - Ocean Joy Holdings Limited ("Ocean Joy") - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||
Pro forma net revenue | $ 264,887,363 | $ 138,662,645 |
Pro forma net income (loss) | $ 14,521,983 | $ 18,900,392 |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Prepaid Expense And Other Assets Current [Abstract] | ||
IPO distribution service and promotional and advertisement service receivables | $ 3,588,851 | $ 5,360,831 |
Prepaid data and IT service expenses | 2,226,216 | 1,315,469 |
Prepaid income taxes | 1,978,308 | |
Rental and other deposits | 1,885,272 | 391,625 |
Advances to employees | 1,458,582 | 825,682 |
Prepaid professional service fees | 1,225,020 | 998,235 |
Prepaid marketing expenses | 1,073,965 | 402,724 |
Wealth management service fees receivables | 727,209 | |
Input VAT receivables | 529,985 | 1,174,934 |
Interest receivables from term deposits | 117,392 | 429,454 |
Others | 1,240,823 | 315,476 |
Total | $ 16,051,623 | $ 11,214,430 |
PROPERTY, EQUIPMENT AND INTAN_3
PROPERTY, EQUIPMENT AND INTANGIBLE ASSETS, NET (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Equipment and Intangible Assets [Line Items] | |||
Less: accumulated depreciation | $ (2,661,241) | $ (1,252,714) | |
Property and equipment, net | 5,142,643 | 1,628,799 | |
Intangible assets, net | 8,889,009 | 8,064,235 | |
Less: accumulated amortization | (44,620) | (28,086) | |
Property, equipment and intangible assets, net | 14,031,652 | 9,693,034 | |
Depreciation and amortization expenses | 1,338,968 | 928,414 | $ 752,167 |
Licenses | |||
Property, Equipment and Intangible Assets [Line Items] | |||
Intangible assets, net | 8,677,136 | 7,967,036 | |
Trading Right | |||
Property, Equipment and Intangible Assets [Line Items] | |||
Intangible assets, net | 128,212 | ||
Electronic Equipment | |||
Property, Equipment and Intangible Assets [Line Items] | |||
Property and equipment, gross | 6,292,614 | 2,385,263 | |
Office Equipment | |||
Property, Equipment and Intangible Assets [Line Items] | |||
Property and equipment, gross | 391,223 | 235,894 | |
Leasehold improvement | |||
Property, Equipment and Intangible Assets [Line Items] | |||
Property and equipment, gross | 752,194 | 100,417 | |
Software | |||
Property, Equipment and Intangible Assets [Line Items] | |||
Property and equipment, gross | 367,853 | 159,939 | |
Trademark | |||
Property, Equipment and Intangible Assets [Line Items] | |||
Intangible assets, net | $ 128,281 | $ 125,285 |
PROPERTY, EQUIPMENT AND INTAN_4
PROPERTY, EQUIPMENT AND INTANGIBLE ASSETS, NET - Summary of Estimated Amortization Expenses for Intangible Assets (Details) | Dec. 31, 2021USD ($) |
Property Equipment And Intangible Assets [Abstract] | |
2022 | $ 16,732 |
2023 | 16,732 |
2024 | 16,732 |
2025 | 16,732 |
2026 | 16,732 |
Total | $ 83,660 |
GOODWILL - Schedule of Changes
GOODWILL - Schedule of Changes in Carrying Amount of Goodwill (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Balance at the beginning of year | $ 2,421,403 | $ 2,421,403 | |
Increase in goodwill related to acquisitions during the year (Note 2) | 71,265 | ||
Impairment of goodwill | 0 | 0 | $ 0 |
Balance at the end of year | $ 2,492,668 | $ 2,421,403 | $ 2,421,403 |
GOODWILL - Additional Informati
GOODWILL - Additional Information (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Accumulated goodwill impairment | $ 0 | $ 0 |
LONG TERM INVESTMENTS - Equity
LONG TERM INVESTMENTS - Equity securities without readily determinable fair value - (Details) | 1 Months Ended | 12 Months Ended | ||||||||||||
Nov. 30, 2021USD ($)shares | Sep. 30, 2021shares | Aug. 31, 2021USD ($) | Aug. 31, 2021CNY (¥) | Jul. 31, 2021USD ($)shares | Apr. 30, 2021USD ($) | Apr. 30, 2021CNY (¥) | Feb. 28, 2021USD ($)shares | Dec. 31, 2019USD ($) | Oct. 31, 2017USD ($) | Oct. 31, 2017CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Equity Securities Without Readily Determinable Fair Value [Line Items] | ||||||||||||||
Equity securities without readily determinable fair value | $ 3,565,394 | $ 2,132,567 | ||||||||||||
Payment for longterm investments | 2,450,736 | $ 600,000 | ||||||||||||
TradeUP Acquisition Corp.("UPTDU") | ||||||||||||||
Equity Securities Without Readily Determinable Fair Value [Line Items] | ||||||||||||||
Equity securities without readily determinable fair value | $ 445,400 | |||||||||||||
Percentage of equity interest acquired | 4.54% | |||||||||||||
Payment for longterm investments | $ 445,400 | $ 445,400 | ||||||||||||
Change of fair value | $ 0 | |||||||||||||
TradeUP Acquisition Corp.("UPTDU") | Founder Shares | ||||||||||||||
Equity Securities Without Readily Determinable Fair Value [Line Items] | ||||||||||||||
Number of shares acquired | shares | 230,000 | |||||||||||||
Number of shares forfeited | shares | 8,500 | |||||||||||||
TradeUP Acquisition Corp.("UPTDU") | Private Shares | ||||||||||||||
Equity Securities Without Readily Determinable Fair Value [Line Items] | ||||||||||||||
Number of shares acquired | shares | 44,040 | |||||||||||||
Fortune Rise Acquisition Corporation ("FRLAU") | ||||||||||||||
Equity Securities Without Readily Determinable Fair Value [Line Items] | ||||||||||||||
Equity securities without readily determinable fair value | 201,248 | |||||||||||||
Percentage of equity interest acquired | 1.57% | |||||||||||||
Payment for longterm investments | $ 201,248 | |||||||||||||
Change of fair value | 0 | |||||||||||||
Fortune Rise Acquisition Corporation ("FRLAU") | Founder Shares | ||||||||||||||
Equity Securities Without Readily Determinable Fair Value [Line Items] | ||||||||||||||
Number of shares acquired | shares | 122,000 | |||||||||||||
Fortune Rise Acquisition Corporation ("FRLAU") | Private Shares | ||||||||||||||
Equity Securities Without Readily Determinable Fair Value [Line Items] | ||||||||||||||
Number of shares acquired | shares | 20,000 | |||||||||||||
Fortune Rise Acquisition Corporation ("FRLAU") | Representative Shares | ||||||||||||||
Equity Securities Without Readily Determinable Fair Value [Line Items] | ||||||||||||||
Number of shares acquired | shares | 60,000 | |||||||||||||
Shenzhen Guru Club Information Technology Group Co., LTD. ("Guru") | ||||||||||||||
Equity Securities Without Readily Determinable Fair Value [Line Items] | ||||||||||||||
Equity securities without readily determinable fair value | 1,569,218 | 1,532,567 | ||||||||||||
Percentage of equity interest acquired | 1.00% | 1.00% | ||||||||||||
Payment for longterm investments | $ 1,536,972 | ¥ 10,000,000 | ||||||||||||
Change of fair value | 0 | 0 | ||||||||||||
Shanghai Realize Investment Consulting Co., Ltd. ("Realize") | ||||||||||||||
Equity Securities Without Readily Determinable Fair Value [Line Items] | ||||||||||||||
Equity securities without readily determinable fair value | 941,531 | |||||||||||||
Percentage of equity interest acquired | 1.50% | 1.50% | ||||||||||||
Payment for longterm investments | $ 926,183 | ¥ 6,000,000 | ||||||||||||
Change of fair value | 0 | |||||||||||||
Shanghai Yisong Consulting Management Co., LTD ("Yisong") | ||||||||||||||
Equity Securities Without Readily Determinable Fair Value [Line Items] | ||||||||||||||
Equity securities without readily determinable fair value | 407,997 | |||||||||||||
Percentage of equity interest acquired | 5.00% | 5.00% | ||||||||||||
Payment for longterm investments | $ 400,962 | ¥ 2,600,000 | ||||||||||||
Change of fair value | 0 | |||||||||||||
UNext Group Limited ("UNext") | ||||||||||||||
Equity Securities Without Readily Determinable Fair Value [Line Items] | ||||||||||||||
Equity securities without readily determinable fair value | $ 600,000 | |||||||||||||
Percentage of equity interest acquired | 0.60% | |||||||||||||
Payment for longterm investments | $ 600,000 | |||||||||||||
Impairment of equity securities without readily determinable fair value | $ 600,000 |
LONG TERM INVESTMENTS - Availab
LONG TERM INVESTMENTS - Available for sale investments - (Details) | 1 Months Ended | 12 Months Ended | ||||
Feb. 28, 2019USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2017CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Schedule Of Available For Sale Securities [Line Items] | ||||||
Long-term available-for-sale investments | $ 5,842,883 | $ 3,924,051 | ||||
Unrealized gain on available-for-sale securities | 1,899,605 | 41,149 | ||||
Beijing Yingxin Network Technology Co., LTD ("Yingxin") | ||||||
Schedule Of Available For Sale Securities [Line Items] | ||||||
Long-term available-for-sale investments | 823,165 | 803,938 | ||||
Alphalion Technology Holding Limited ("Alphalion") | ||||||
Schedule Of Available For Sale Securities [Line Items] | ||||||
Long-term available-for-sale investments | $ 3,060,113 | 5,019,718 | 3,120,113 | |||
Percentage of equity interest acquired | 25.00% | |||||
Fair value change recorded | 1,899,605 | 60,000 | ||||
Beijing Yingxin Network Technology Co., LTD ("Yingxin") | ||||||
Schedule Of Available For Sale Securities [Line Items] | ||||||
Percentage of equity interest acquired | 2.91% | 2.91% | ||||
Purchase consideration | $ 461,092 | ¥ 3,000,000 | ||||
Unrealized gain on available-for-sale securities | $ 0 | $ 0 | $ 0 |
LONG TERM INVESTMENTS - Equit_2
LONG TERM INVESTMENTS - Equity method investments (Details) | 1 Months Ended | 10 Months Ended | 12 Months Ended | ||||
Apr. 30, 2021USD ($) | Oct. 26, 2021USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | May 31, 2020USD ($) | May 31, 2020HKD ($) | |
Schedule Of Equity Method Investments [Line Items] | |||||||
Equity method investments | $ 369,567 | $ 424,333 | |||||
Payment for longterm investments | 2,450,736 | $ 600,000 | |||||
Ocean Joy Holdings Limited ("Ocean Joy") | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Equity method investments | 424,333 | ||||||
Investment amount | $ 462,276 | $ 3,600,000 | |||||
Percentage of ownership investment | 70.00% | 30.00% | 30.00% | ||||
Investment gain (loss) | $ (39,141) | $ (40,625) | |||||
TradeUP Global Sponsor LLC ("Global Sponsor") | |||||||
Schedule Of Equity Method Investments [Line Items] | |||||||
Equity method investments | 369,567 | ||||||
Percentage of ownership investment | 20.00% | ||||||
Investment gain (loss) | $ (84,993) | ||||||
Payment for longterm investments | $ 454,560 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Prepaid Expense And Other Assets Current [Abstract] | ||
Accrued payroll and welfare | $ 14,760,788 | $ 12,099,447 |
Income and non-income based taxes payables | 7,156,828 | 4,936,372 |
Accrued marketing expenses | 3,748,010 | 6,251,009 |
Accrued professional expenses | 1,749,229 | 2,471,569 |
Advanced from customers | 1,748,167 | 429,531 |
Accrued data and IT service expenses | 1,443,897 | 622,641 |
Amounts due to employees for sale of their shares exercised under the share incentive plan | 1,131,614 | |
Others | 2,007,644 | 327,632 |
Total | $ 33,746,177 | $ 27,138,201 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure | |||
Income tax rate (as a percent) | 25.00% | 25.00% | 25.00% |
Withholding income tax on dividends distributed by a foreign investment enterprise | 10.00% | ||
Maximum withholding tax rate (in percent) | 5.00% | ||
Minimum percentage of shares to be held for withholding tax | 25.00% | ||
Withholding tax | $ 0 | $ 0 | |
Undistributed earnings of subsidiaries | 57,900,000 | 33,100,000 | |
Unrecognized deferred tax liability related to earning | $ 4,500,000 | $ 1,700,000 | |
PRC | |||
Income Tax Disclosure | |||
Income tax rate (as a percent) | 25.00% | ||
HNTE | |||
Income Tax Disclosure | |||
Preferential tax rate (as a percent) | 15.00% | ||
New Zealand | |||
Income Tax Disclosure | |||
Minimum percentage of shares to be held for withholding tax | 5.00% | ||
Withholding tax rate | 0 | ||
Withholding tax imposed rate | 15 | ||
New Zealand | Tiger Brokers | |||
Income Tax Disclosure | |||
Income tax rate (as a percent) | 28.00% | ||
New Zealand | Tiger Fintech Limited | |||
Income Tax Disclosure | |||
Income tax rate (as a percent) | 28.00% | ||
Hong Kong | Scenario 1 | |||
Income Tax Disclosure | |||
Income tax rate (as a percent) | 8.25% | ||
Base profit for calculating tax rate | $ 2,000,000 | ||
Hong Kong | Scenario 2 | |||
Income Tax Disclosure | |||
Income tax rate (as a percent) | 16.50% | ||
Base profit for calculating tax rate | $ 2,000,000 | ||
USA | |||
Income Tax Disclosure | |||
Income tax rate (as a percent) | 21.00% | ||
Maximum withholding tax rate (in percent) | 30.00% | ||
SINGAPORE | |||
Income Tax Disclosure | |||
Income tax rate (as a percent) | 17.00% | ||
AUSTRALIA | |||
Income Tax Disclosure | |||
Income tax rate (as a percent) | 27.50% | ||
Beijing U Tiger Business | |||
Income Tax Disclosure | |||
Income tax rate (as a percent) | 15.00% | ||
Beijing U Tiger Business | HNTE | |||
Income Tax Disclosure | |||
Preferential tax rate (as a percent) | 15.00% | ||
Beijing Yixin And Beijing U Tiger Network | HNTE | |||
Income Tax Disclosure | |||
Income tax rate (as a percent) | 15.00% |
INCOME TAXES - Components of pr
INCOME TAXES - Components of profit (loss) before income taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
(Loss) income before income taxes - PRC | $ 21,320,470 | $ 20,551,832 | $ 6,117,021 |
(Loss) income before income taxes | 19,054,472 | 22,029,792 | (9,305,224) |
The Cayman Islands | |||
(Loss) income before income taxes - Foreign | 2,442,082 | (1,302,817) | 946,035 |
International | |||
(Loss) income before income taxes - Foreign | $ (4,708,080) | $ 2,780,777 | $ (16,368,280) |
INCOME TAXES - Current and defe
INCOME TAXES - Current and deferred portions of income taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Current tax expense | $ 5,026,081 | $ 1,077,877 | $ 2,859,774 |
Deferred tax expense (benefit) | (662,310) | 1,772,670 | (6,215,140) |
Income tax expense (benefit) | $ 4,363,771 | $ 2,850,547 | $ (3,355,366) |
INCOME TAXES - Significant comp
INCOME TAXES - Significant components of the Group's deferred tax assets (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets | ||||
Accrued expenses | $ 64,103 | $ 0 | ||
Allowance for doubtful accounts | 142,385 | 25,704 | ||
Long-term investments | 39,230 | 38,314 | ||
Advertising expense carryforwards | 1,081,850 | 877,424 | ||
Net operating loss carryforwards | 15,101,309 | 13,407,157 | ||
Withholding tax credit carryforwards | 1,161,221 | 1,106,569 | ||
Lease liabilities | 1,511,324 | 1,799,483 | ||
Total deferred tax assets | 19,101,422 | 17,254,651 | ||
Less: valuation allowance | (5,224,095) | (4,000,159) | $ (4,888,240) | $ (2,931,196) |
Deferred tax assets, net of valuation allowance | 13,877,327 | 13,254,492 | ||
Deferred tax liabilities | ||||
Right-of-use assets | 1,511,324 | 1,799,483 | ||
Long term investments | 88,098 | 86,042 | ||
Intangible assets | 1,535,965 | 1,449,000 | ||
Financial instruments held, at fair value | 19,545 | |||
Total deferred tax liabilities | 3,154,932 | 3,334,525 | ||
Deferred tax assets, net | 12,258,360 | 9,919,967 | ||
Deferred tax liabilities, net | $ 1,535,965 | $ 0 |
INCOME TAXES - Movement of Valu
INCOME TAXES - Movement of Valuation Allowance (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Movement of the valuation allowance | |||
Balance at the beginning of the year | $ 4,000,159 | $ 4,888,240 | $ 2,931,196 |
Additions of valuation allowance | 2,814,445 | 1,775,887 | 2,573,942 |
Reversals of valuation allowance | (1,628,176) | (2,802,174) | |
Foreign currency translation adjustment | 37,667 | 138,206 | (616,898) |
Balance at the end of the year | $ 5,224,095 | $ 4,000,159 | $ 4,888,240 |
INCOME TAXES - Additional infor
INCOME TAXES - Additional information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure | ||||
Net operating loss carryforwards | $ 83,597,429 | $ 64,430,676 | ||
Deferred tax assets valuation allowance | 5,224,095 | 4,000,159 | $ 4,888,240 | $ 2,931,196 |
Valuation allowance for Operating loss carryforwards | 27,152,139 | 20,695,157 | ||
Operating loss carryforwards | 4,607,181 | |||
Deferred tax assets valuation allowance, increase amount | 475,079 | |||
Deferred tax assets valuation allowance, decrease amount | 405,767 | |||
Utilization of deferred tax assets | 171,363 | |||
Expected Utilization Prior To Expiration | ||||
Income Tax Disclosure | ||||
Net operating loss carryforwards | 56,445,290 | 43,735,519 | ||
Valuation Allowance, Net Operating Loss Carryforwards | ||||
Income Tax Disclosure | ||||
Deferred tax assets valuation allowance | $ 4,614,648 | $ 3,867,639 | ||
USA | ||||
Income Tax Disclosure | ||||
Term of operating loss carryforward (in years) | 5 years | |||
PRC | ||||
Income Tax Disclosure | ||||
Term of operating loss carryforward (in years) | 10 years |
INCOME TAXES - Net operating lo
INCOME TAXES - Net operating loss carryforwards (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Operating loss carryforwards | ||
Net operating loss carryforwards | $ 83,597,429 | $ 64,430,676 |
Withholding tax credit carryforwards | 1,161,221 | 1,106,569 |
Advertising expenses | ||
Operating loss carryforwards | ||
Net operating loss carryforwards | 4,598,999 | $ 4,712,189 |
2022 | ||
Operating loss carryforwards | ||
Net operating loss carryforwards | 7,170 | |
2023 | ||
Operating loss carryforwards | ||
Net operating loss carryforwards | 434,585 | |
2024 | ||
Operating loss carryforwards | ||
Net operating loss carryforwards | 4,222,851 | |
2025 | ||
Operating loss carryforwards | ||
Net operating loss carryforwards | 9,112,742 | |
Withholding tax credit carryforwards | 984,315 | |
2026 through 2031 | ||
Operating loss carryforwards | ||
Net operating loss carryforwards | 40,608,576 | |
Indefinitely | ||
Operating loss carryforwards | ||
Net operating loss carryforwards | 29,211,505 | |
2026 | ||
Operating loss carryforwards | ||
Withholding tax credit carryforwards | $ 176,906 |
INCOME TAXES - Income Tax Recon
INCOME TAXES - Income Tax Reconciliation (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income (loss) before income taxes | $ 19,054,472 | $ 22,029,792 | $ (9,305,224) |
PRC statutory tax rate | 25.00% | 25.00% | 25.00% |
Income tax at statutory income tax rate | $ 4,763,618 | $ 5,507,448 | $ (2,326,306) |
Effect of income tax rate difference in other jurisdictions | 596,978 | (773,402) | 124,406 |
Effect of preferential tax rates | (1,735,439) | 1,837,667 | (2,673,841) |
Super deduction of research and development expense | (4,476,114) | (3,607,755) | (2,479,428) |
Effect of expenses not deductible for income tax purposes | 4,028,459 | 912,876 | 1,425,861 |
Changes in valuation allowance | 1,186,269 | (1,026,287) | 2,573,942 |
Income tax expense (benefit) | $ 4,363,771 | $ 2,850,547 | $ (3,355,366) |
CONVERTIBLE BOND PAYABLE (Detai
CONVERTIBLE BOND PAYABLE (Details) - USD ($) $ in Millions | May 05, 2021 | Apr. 12, 2021 | Feb. 25, 2021 | Dec. 31, 2021 |
2021 Series A1 Note US$ 44,000,000 1.00% due to 2026 | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 44 | |||
Convertible notes maturity year | 2026 | 2026 | ||
Convertible notes interest rate percentage | 1.00% | |||
Effective interest rate | 5.40% | |||
Convertible notes interest rate percentage | 1.00% | |||
2021 Series A2 Note US$ 21,000,000 1.00% due to 2026 | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 21 | |||
Convertible notes maturity year | 2026 | 2026 | ||
Convertible notes interest rate percentage | 1.00% | 1.00% | ||
2021 Series B Note US$ 90,000,000 1.00% due to 2026 | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 90 | |||
Convertible notes maturity year | 2026 | 2026 | ||
Convertible notes interest rate percentage | 1.00% | 1.00% |
CONVERTIBLE BOND PAYABLE - Summ
CONVERTIBLE BOND PAYABLE - Summary of Convertible Bonds Payable (Details) | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Debt Instrument [Line Items] | |
Debt conversion amount | $ 148,841,676 |
2021 Series A1 Note US$ 44,000,000 1.00% due to 2026 | |
Debt Instrument [Line Items] | |
Debt conversion amount | 37,148,318 |
2021 Series A2 Note US$ 21,000,000 1.00% due to 2026 | |
Debt Instrument [Line Items] | |
Debt conversion amount | 21,120,487 |
2021 Series B Note US$ 90,000,000 1.00% due to 2026 | |
Debt Instrument [Line Items] | |
Debt conversion amount | $ 90,572,871 |
CONVERTIBLE BOND PAYABLE - Su_2
CONVERTIBLE BOND PAYABLE - Summary of Convertible Bonds Payable (Parenthetical) (Details) - USD ($) | May 05, 2021 | Apr. 12, 2021 | Feb. 25, 2021 | Dec. 31, 2021 |
2021 Series A1 Note US$ 44,000,000 1.00% due to 2026 | ||||
Debt Instrument [Line Items] | ||||
Convertible notes face amount | $ 44,000,000 | |||
Convertible notes interest rate percentage | 1.00% | |||
Convertible notes maturity year | 2026 | 2026 | ||
2021 Series A2 Note US$ 21,000,000 1.00% due to 2026 | ||||
Debt Instrument [Line Items] | ||||
Convertible notes face amount | $ 21,000,000 | |||
Convertible notes interest rate percentage | 1.00% | 1.00% | ||
Convertible notes maturity year | 2026 | 2026 | ||
2021 Series B Note US$ 90,000,000 1.00% due to 2026 | ||||
Debt Instrument [Line Items] | ||||
Convertible notes face amount | $ 90,000,000 | |||
Convertible notes interest rate percentage | 1.00% | 1.00% | ||
Convertible notes maturity year | 2026 | 2026 |
ORDINARY SHARES (Details)
ORDINARY SHARES (Details) | Jun. 10, 2021USD ($)shares | Dec. 31, 2021$ / sharesshares | Sep. 30, 2021shares | Aug. 31, 2021shares | Mar. 31, 2021shares | Apr. 30, 2019$ / sharesshares | Mar. 31, 2019USD ($)shares | Nov. 30, 2018shares | Dec. 31, 2021$ / sharesshares | Dec. 31, 2019USD ($)shares | Dec. 31, 2020$ / sharesshares | Dec. 31, 2018shares | Jun. 30, 2018shares | Jun. 07, 2018shares |
Class Of Stock [Line Items] | ||||||||||||||
Net proceeds received from initial public offering | $ | $ 114,765,901 | |||||||||||||
Price per share | $ / shares | $ 0.21 | $ 0.21 | $ 0.21 | |||||||||||
Class A ordinary shares | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Common stock, shares authorized (in shares) | 4,662,388,278 | 4,662,388,278 | 4,662,388,278 | |||||||||||
Par value per share (in dollars per share) | $ / shares | $ 0.00001 | $ 0.00001 | ||||||||||||
Votes per share (in votes) | one | |||||||||||||
Common stock, shares issued (in shares) | 2,059,987,139 | 2,059,987,139 | 1,777,218,449 | 1,794,357,434 | 216,546,541 | 2,480,000 | ||||||||
Common stock, shares outstanding (in shares) | 2,059,987,139 | 2,059,987,139 | 1,777,218,449 | 1,794,357,434 | 216,546,541 | |||||||||
Number of shares issued in conversion (in shares) | 1,210,906,902 | 180,895,573 | ||||||||||||
Net proceeds received from initial public offering | $ | $ 114,765,901 | |||||||||||||
Shares issued during the period (in shares) | 36,534,437 | 237,375,000 | ||||||||||||
ADS issued during period | 15,825,000 | |||||||||||||
Conversion ratio | 1 | |||||||||||||
Price per share | $ / shares | $ 8 | |||||||||||||
Class A ordinary shares | IPO | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Common stock, shares issued (in shares) | 33,170,968 | |||||||||||||
Common stock, shares outstanding (in shares) | 33,170,968 | |||||||||||||
Shares issued during the period (in shares) | 112,125,000 | |||||||||||||
Consideration received | $ | $ 175,400,000 | |||||||||||||
Class A ordinary shares | Private placement | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Shares issued during the period (in shares) | 13,125,000 | |||||||||||||
Class A ordinary shares | Over allotment option | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Shares issued during the period (in shares) | 29,250,000 | |||||||||||||
Class B ordinary shares | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Common stock, shares authorized (in shares) | 337,611,722 | 337,611,722 | 337,611,722 | |||||||||||
Par value per share (in dollars per share) | $ / shares | $ 0.00001 | $ 0.00001 | ||||||||||||
Votes per share (in votes) | twenty | |||||||||||||
Number of Class A Ordinary Shares issued for each share converted | 1 | |||||||||||||
Common stock, shares issued (in shares) | 222,111,722 | 222,111,722 | 337,611,722 | 337,611,722 | 337,611,722 | 107,863,347 | ||||||||
Common stock, shares outstanding (in shares) | 222,111,722 | 222,111,722 | 337,611,722 | 337,611,722 | 337,611,722 | |||||||||
Number of shares converted | 48,000,000 | 45,000,000 | 22,500,000 | |||||||||||
Class B ordinary shares | IPO | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Common stock, shares issued (in shares) | 410,643,948 | |||||||||||||
Common stock, shares outstanding (in shares) | 410,643,948 | |||||||||||||
Series Angel, A, B-1, B-2, B-3 and C | IPO | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Number of shares converted | 1,210,906,902 | |||||||||||||
Series C-1 convertible redeemable preferred shares | ||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||
Number of shares issued in conversion (in shares) | 18,612,084 | |||||||||||||
Number of shares converted | 18,597,738 | |||||||||||||
Price per share | $ / shares | $ 8 |
FAIR VALUE MEASUREMENT - Measur
FAIR VALUE MEASUREMENT - Measured at fair value on a recurring basis (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments held, at fair value | $ 3,902,987 | $ 562,536 |
Long-term available-for-sale investments | 5,842,883 | 3,924,051 |
Fair value assets transferred from level 1 to level 2 | 0 | |
Fair value assets transferred from level 2 to level 1 | 0 | |
Fair value liabilities transferred from level 1 to level 2 | 0 | |
Fair value liabilities transferred from level 2 to level 1 | 0 | |
Fair value assets transferred into level 3 | 0 | |
Fair value assets transferred out of level 3 | 0 | |
Fair value liabilities transferred into level 3 | 0 | |
Fair value liabilities transferred out of level 3 | 0 | |
Impairment loss related to long-term available-for-sale securities | 150,978 | |
Other Comprehensive Income (Loss) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unrealized gain | 1,899,605 | 41,149 |
Other Income | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unrealized gain | 971,872 | |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative | 12,906 | |
Long-term available-for-sale investments | 5,842,883 | 3,924,051 |
Total | 9,745,870 | 4,486,587 |
Recurring | Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments held, at fair value | 2,391,375 | 283,764 |
Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments held, at fair value | 263,750 | |
Recurring | Stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments held, at fair value | 1,498,706 | 15,022 |
Recurring | Quoted prices in active markets for identical instruments (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 1,918,209 | 562,536 |
Recurring | Quoted prices in active markets for identical instruments (Level 1) | Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments held, at fair value | 419,503 | 283,764 |
Recurring | Quoted prices in active markets for identical instruments (Level 1) | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments held, at fair value | 263,750 | |
Recurring | Quoted prices in active markets for identical instruments (Level 1) | Stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments held, at fair value | 1,498,706 | 15,022 |
Recurring | Significant other observable inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative | 12,906 | |
Total | 12,906 | |
Recurring | Significant unobservable inputs (level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term available-for-sale investments | 5,842,883 | 3,924,051 |
Total | 7,814,755 | $ 3,924,051 |
Recurring | Significant unobservable inputs (level 3) | Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments held, at fair value | $ 1,971,872 |
FAIR VALUE MEASUREMENT - Moveme
FAIR VALUE MEASUREMENT - Movements of level 3 fair value measurements (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment | $ (600,000) | $ 0 | $ (755,524) |
Foreign currency translation adjustment | 1,839,022 | 3,752,464 | (321,433) |
Fair Value, Nonrecurring | Significant unobservable inputs (level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, Fair value measurements | 3,924,051 | 3,980,806 | |
Additions during the year | 1,000,000 | ||
Net unrealized gains | 2,871,477 | 41,149 | |
Impairment | (150,978) | ||
Foreign currency translation adjustment | 19,227 | 53,074 | |
Assets, Fair value measurements | $ 7,814,755 | $ 3,924,051 | $ 3,980,806 |
FAIR VALUE MEASUREMENT - Meas_2
FAIR VALUE MEASUREMENT - Measured at fair value on a non recurring basis (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |||
Impairment loss as an offset to other income | $ 600,000 | $ 755,524 | |
Impairment loss on other intangible assets arising from acquisitions | 0 | $ 0 | |
Impairment loss on goodwill | $ 0 | $ 0 | $ 0 |
SHARE BASED COMPENSATION (Detai
SHARE BASED COMPENSATION (Details) - shares | 1 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2021 | Mar. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Aug. 31, 2021 | Dec. 20, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Maximum aggregate number of shares that may be issued | 254,697,314 | 187,697,314 | |||||||
Class A ordinary shares | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Shares issued | 36,534,437 | 237,375,000 | |||||||
2019 Performance Incentive Plan | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Maximum aggregate number of shares that may be issued | 98,963,742 | 62,429,305 | 52,000,000 | ||||||
Aggregate number of shares increased for issuance | 10,429,305 | ||||||||
Aggregate number of outstanding shares | 62,429,305 | ||||||||
Share options | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Aggregate number of outstanding shares | 44,356,789 | 59,744,249 | 95,933,244 | ||||||
Term of option | 10 years | ||||||||
Percentage of fair market value as of the latest practicable date upon termination for death, disability or retirement of employees | 50.00% | ||||||||
Threshold period for vesting or exercising option upon termination for death, disability or retirement, the employees | 6 months | ||||||||
Percentage of fair market value as of the latest practicable date upon other termination | 30.00% | ||||||||
Threshold period for vesting or exercising option upon other termination | 6 months | ||||||||
Share options | Vested and exercisable on second anniversary | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Vesting percentage | 50.00% | ||||||||
Share options | Vested and exercisable on third anniversary | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Vesting percentage | 25.00% | ||||||||
Share options | Vested and exercisable on fourth anniversary | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Vesting percentage | 25.00% |
SHARE BASED COMPENSATION - Fair
SHARE BASED COMPENSATION - Fair value of options granted (Details) - Share options - $ / shares | 12 Months Ended | ||||||
Dec. 31, 2021 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Fair value per ordinary share at grant date | $ 0.2184 | $ 0.008 | |||||
Exercise price | $ 1.1853 | $ 0.00001 | $ 0.00001 | $ 0.00001 | |||
Expected volatility | 55.00% | 39.00% | 39.00% | 39.00% | 40.00% | ||
Contractual life | 10 years | 10 years | 10 years | 10 years | 10 years | 10 years | 10 years |
Risk free interest rate | 0.88% | ||||||
Expected dividend | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Minimum | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Fair value per ordinary share at grant date | $ 0.274 | $ 0.147 | $ 0.034 | $ 0.019 | $ 0.008 | ||
Exercise price | $ 0.00001 | $ 0.0001 | $ 0.00001 | ||||
Expected volatility | 37.00% | 35.00% | |||||
Risk free interest rate | 3.00% | 3.10% | 3.00% | 2.30% | 2.50% | 3.00% | |
Maximum | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Fair value per ordinary share at grant date | $ 0.484 | $ 0.405 | $ 0.059 | $ 0.030 | $ 0.016 | ||
Exercise price | $ 0.274 | $ 0.200 | $ 0.040 | ||||
Expected volatility | 39.00% | 38.00% | |||||
Risk free interest rate | 3.40% | 3.80% | 3.20% | 3.00% | 3.10% | 3.10% |
SHARE BASED COMPENSATION - Summ
SHARE BASED COMPENSATION - Summary of share option activities (Details) - USD ($) | Apr. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation | $ 13,370,377 | $ 6,054,612 | $ 4,062,600 | |
Share options | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Outstanding at the beginning | 59,744,249 | 95,933,244 | ||
Cancelled to grant RSUs | (7,660,000) | (7,660,000) | ||
Exercised | (15,767,275) | (16,688,995) | ||
Forfeited | (370,185) | (11,840,000) | ||
Outstanding at the end | 44,356,789 | 59,744,249 | 95,933,244 | |
Granted | 750,000 | |||
Outstanding at the beginning | $ 0.03005 | $ 0.05223 | ||
Cancelled to grant RSUs | 0.27400 | |||
Exercised | 0.03322 | 0.00031 | ||
Forfeited | 0.04544 | 0.09374 | ||
Outstanding at the end | 0.04833 | $ 0.03005 | $ 0.05223 | |
Granted | $ 1.18530 | |||
Weighted average remaining contractual life | 6 years 9 months 7 days | 7 years 6 months | 8 years 5 months 15 days | |
Aggregate intrinsic value | $ 12,375,711 | $ 29,829,248 | $ 17,694,050 | |
Share-based compensation | $ 800,000 | 4,272,939 | $ 1,701,132 | $ 2,239,136 |
Total unrecognized share based compensation expense | $ 9,455,252 | |||
Weighted average period expected to be recognized for unrecognized share based compensation expense | 3 years 7 months 6 days |
SHARE BASED COMPENSATION - Rest
SHARE BASED COMPENSATION - Restricted Share Units ("RSUs") (Details) - USD ($) | Apr. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total share based compensation | $ 13,370,377 | $ 6,054,612 | $ 4,062,600 | |
Service-based RSUs | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Beginning balance | 69,826,580 | 28,406,980 | ||
Granted | 21,259,735 | 44,179,590 | ||
Cancelled to grant new RSUs | 900,000 | (900,000) | ||
Exercised | (22,237,430) | (449,990) | ||
Forfeited | (3,032,440) | (1,410,000) | ||
Ending balance | 65,816,445 | 69,826,580 | 28,406,980 | |
Beginning balance | $ 0.28 | $ 0.34 | ||
Granted | 0.97 | 0.23 | ||
Cancelled to grant new RSUs | 0.26 | |||
Exercised | 0.34 | 0.23 | ||
Forfeited | 0.34 | 0.20 | ||
Ending balance | $ 0.48 | $ 0.28 | $ 0.34 | |
Weighted average period expected to be recognized for unrecognized share based compensation expense | 2 years 3 months 18 days | |||
Total share based compensation | $ 9,097,438 | $ 4,353,480 | $ 1,823,464 | |
Total unrecognized share based compensation expense | $ 22,309,037 | |||
Share options | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Granted | 8,560,000 | |||
Number of options cancelled during the period | 7,660,000 | 7,660,000 | ||
Weighted average period expected to be recognized for unrecognized share based compensation expense | 3 years 7 months 6 days | |||
Total share based compensation | $ 800,000 | $ 4,272,939 | $ 1,701,132 | $ 2,239,136 |
Total unrecognized share based compensation expense | $ 1,700,000 | |||
Restricted Share Units ("RSUs") | Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Weighted average period expected to be recognized for unrecognized share based compensation expense | 3 years | |||
Restricted Share Units ("RSUs") | Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Weighted average period expected to be recognized for unrecognized share based compensation expense | 3 years 6 months |
NET INCOME (LOSS) PER SHARE (De
NET INCOME (LOSS) PER SHARE (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator: | |||
Net income (loss) attributable to ordinary shareholders of UP Fintech Holding Limited | $ 14,690,701 | $ 16,064,793 | $ (6,589,431) |
Less: | |||
The dilutive effect arising from the convertible bonds | 2,900,645 | ||
Numerator for diluted net income (loss) per ordinary share | $ 11,790,056 | $ 16,064,793 | $ (6,589,431) |
Weighted average shares used in calculating net income (loss) per ordinary share | |||
Basic | 2,205,186,257 | 2,117,904,025 | 1,751,784,176 |
Dilutive effect of convertible bonds | 80,459,006 | ||
Diluted | 2,335,717,204 | 2,162,232,325 | 1,751,784,176 |
Net income (loss) per ordinary share | |||
Basic | $ 0.01 | $ 0.01 | $ 0 |
Diluted | $ 0.01 | $ 0.01 | $ 0 |
Share Options | |||
Weighted average shares used in calculating net income (loss) per ordinary share | |||
Dilutive effect | 17,457,965 | 25,462,481 | |
Restricted Shares Units | |||
Weighted average shares used in calculating net income (loss) per ordinary share | |||
Dilutive effect | 32,613,976 | 18,865,819 |
NET INCOME (LOSS) PER SHARE - A
NET INCOME (LOSS) PER SHARE - Antidilutive securities (Details) | 12 Months Ended |
Dec. 31, 2019shares | |
Share options | |
Antidilutive securities excluded from computation of earnings per share | |
Antidilutive securities excluded from computation of earnings per share | 95,933,244 |
Restricted Share Units ("RSUs") | |
Antidilutive securities excluded from computation of earnings per share | |
Antidilutive securities excluded from computation of earnings per share | 28,406,980 |
TREASURY STOCK (Details)
TREASURY STOCK (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 25, 2020 |
TREASURY STOCK | |||
Stock repurchase program authorized amount | $ 20,000,000 | ||
Number of shares repurchased during the period | 10,429,305 | 10,429,305 | |
Price per share | $ 0.21 | $ 0.21 | |
Consideration of shares repurchased | $ 2,172,819 | $ 2,172,819 | |
American Depositary Shares | |||
TREASURY STOCK | |||
Price per share | $ 3.13 | $ 3.13 |
RELATED PARTY BALANCES AND TR_3
RELATED PARTY BALANCES AND TRANSACTIONS (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
RELATED PARTY BALANCES AND TRANSACTIONS | ||
Amounts due from related parties | $ 2,947,871 | $ 5,065,222 |
Receivables from brokers, dealers, and clearing organizations | ||
RELATED PARTY BALANCES AND TRANSACTIONS | ||
Amounts due from related parties | 804,639,024 | 764,318,932 |
Interactive Brokers | ||
RELATED PARTY BALANCES AND TRANSACTIONS | ||
Amounts due from related parties | 804,639,024 | 761,681,403 |
Ocean Joy and its subsidiary | ||
RELATED PARTY BALANCES AND TRANSACTIONS | ||
Amounts due from related parties | 2,637,529 | |
Alphalion Group Limited | ||
RELATED PARTY BALANCES AND TRANSACTIONS | ||
Amounts due from related parties | 1,046,190 | 1,032,211 |
Fast Connection Limited | ||
RELATED PARTY BALANCES AND TRANSACTIONS | ||
Amounts due from related parties | 1,500,000 | |
Ocean Joy and its subsidiary | ||
RELATED PARTY BALANCES AND TRANSACTIONS | ||
Amounts due from related parties | 1,044,738 | |
Amount due to related parties | 10,496 | |
Individual directors and executive officers | ||
RELATED PARTY BALANCES AND TRANSACTIONS | ||
Amounts due from related parties | 1,901,681 | 1,488,273 |
Amount due to related parties | 2,039,287 | |
Interactive Brokers | ||
RELATED PARTY BALANCES AND TRANSACTIONS | ||
Amount due to related parties | 170,338,199 | 218,563,624 |
Payables to brokers, dealers and clearing organizations | ||
RELATED PARTY BALANCES AND TRANSACTIONS | ||
Amount due to related parties | 170,338,199 | $ 218,574,120 |
Xiaomi Corporation and its affiliates | ||
RELATED PARTY BALANCES AND TRANSACTIONS | ||
Amount due to related parties | $ 25,330,766 |
RELATED PARTY BALANCES AND TR_4
RELATED PARTY BALANCES AND TRANSACTIONS (Parenthetical) (Details) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020HKD ($) |
RELATED PARTY BALANCES AND TRANSACTIONS | |||
Amounts due from related parties | $ 2,947,871 | $ 5,065,222 | |
Ocean Joy Holdings Limited ("Ocean Joy") | |||
RELATED PARTY BALANCES AND TRANSACTIONS | |||
Amounts due from related parties | 386,940 | $ 3,000,000 | |
Ocean Joy Securities Limited | |||
RELATED PARTY BALANCES AND TRANSACTIONS | |||
Amounts due from related parties | $ 657,798 | $ 5,100,000 |
RELATED PARTY BALANCES AND TR_5
RELATED PARTY BALANCES AND TRANSACTIONS - Transactions with related parties (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
RELATED PARTY BALANCES AND TRANSACTIONS | |||
Transactions with related parties | $ 2,860,123 | ||
Xiaomi Corporation and its affiliates | |||
RELATED PARTY BALANCES AND TRANSACTIONS | |||
Transactions with related parties | $ (397,590) | $ (517,134) | |
Alphalion Group Limited | |||
RELATED PARTY BALANCES AND TRANSACTIONS | |||
Transactions with related parties | (94,333) | ||
Transactions with related parties | 617,500 | ||
Fast Connection Limited | |||
RELATED PARTY BALANCES AND TRANSACTIONS | |||
Transactions with related parties | (700,000) | ||
Guangzhou88 Technology Limited | |||
RELATED PARTY BALANCES AND TRANSACTIONS | |||
Transactions with related parties | (755,524) | ||
Commissions and Interest Income | Ocean Joy and its subsidiary | |||
RELATED PARTY BALANCES AND TRANSACTIONS | |||
Transaction with related parties | 28,350 | 16,173 | |
Commissions and Interest Income | Individual directors and executive officers | |||
RELATED PARTY BALANCES AND TRANSACTIONS | |||
Transaction with related parties | 138,661 | 79,949 | |
Execution and clearing fees | Ocean Joy and its subsidiary | |||
RELATED PARTY BALANCES AND TRANSACTIONS | |||
Transactions with related parties | (686,576) | (51,446) | |
Execution and clearing fees | Interactive Brokers | |||
RELATED PARTY BALANCES AND TRANSACTIONS | |||
Transactions with related parties | (16,823,850) | (7,099,254) | (2,102,385) |
Commissions, Financing Service Fees, Interest Income and Other Revenues | Interactive Brokers | |||
RELATED PARTY BALANCES AND TRANSACTIONS | |||
Transaction with related parties | 73,293,370 | $ 62,704,986 | $ 38,089,982 |
Changes in Fair Value of Convertible Bonds | Xiaomi Corporation and its affiliates | |||
RELATED PARTY BALANCES AND TRANSACTIONS | |||
Transactions with related parties | 2,860,123 | ||
Interest Expense of Convertible Bonds | Xiaomi Corporation and its affiliates | |||
RELATED PARTY BALANCES AND TRANSACTIONS | |||
Transactions with related parties | $ (350,519) |
RELATED PARTY BALANCES AND TR_6
RELATED PARTY BALANCES AND TRANSACTIONS - Transactions with related parties (Parenthetical) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2021 | |
Alphalion Group Limited | ||
RELATED PARTY BALANCES AND TRANSACTIONS | ||
Gain from sale of a Group's subsidiary | $ 617,500 | |
Alphalion Group Limited | IT Service Fees | ||
RELATED PARTY BALANCES AND TRANSACTIONS | ||
Consideration for sale | $ 106,105 | |
Xiaomi Corporation and its affiliates | Convertible Bonds | ||
RELATED PARTY BALANCES AND TRANSACTIONS | ||
Effective interest rate | 5.40% |
COLLATERALIZED TRANSACTIONS (De
COLLATERALIZED TRANSACTIONS (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Collateralized Financings [Abstract] | ||
Total client margin asset | $ 1,759,500,650 | $ 1,626,260,131 |
Fulfillment of client margin financings | 202,004,165 | 168,840,684 |
Fulfillment of client short sales | 31,612,750 | 21,492,878 |
Securities lending to other brokers | 392,897,973 | 434,780,528 |
Total collateral repledged | $ 626,514,888 | $ 625,114,090 |
Lease - Operating leases (Detai
Lease - Operating leases (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee Lease Description [Line Items] | ||
Total operating lease expenses | $ 4,138,401 | $ 3,494,456 |
Minimum | ||
Lessee Lease Description [Line Items] | ||
Remaining lease terms | 1 year | |
Maximum | ||
Lessee Lease Description [Line Items] | ||
Remaining lease terms | 7 years |
Lease - Balances reported in th
Lease - Balances reported in the consolidated balance sheets related to the Group's leases (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Lessee Disclosure [Abstract] | ||
Operating lease right-of-use assets | $ 6,613,520 | $ 7,280,763 |
Operating lease liabilities | $ 5,702,954 | $ 7,207,293 |
Lease - Operating lease expense
Lease - Operating lease expenses and short-term lease expenses reported in the consolidated statements of comprehensive income related to the Group's leases (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee Disclosure [Abstract] | ||
Operating lease expenses | $ 3,881,251 | $ 2,985,665 |
Short-term lease expenses | $ 257,150 | $ 508,791 |
Lease - Summary of supplemental
Lease - Summary of supplemental information related to operating leases (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee Disclosure [Abstract] | ||
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used in operating leases | $ 5,058,078 | $ 3,422,191 |
Non-cash right-of-use assets in exchange for new lease obligations: Operating leases | $ 4,058,759 | $ 4,281,660 |
Weighted average remaining lease term: Operating leases | 4 years | 3 years |
Weighted average discount rate: Operating leases | 5.50% | 5.30% |
Lease - Maturity analysis of th
Lease - Maturity analysis of the annual undiscounted cash flows (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Years ending December 31: | ||
2022 | $ 2,695,299 | |
2023 | 1,036,814 | |
2024 | 838,969 | |
2025 | 452,218 | |
2026 | 465,785 | |
2027 and after | 805,931 | |
Total undiscounted operating lease payments | 6,295,016 | |
Less: imputed interest | (592,062) | |
Present value of operating lease liabilities | $ 5,702,954 | $ 7,207,293 |
REGULATORY REQUIREMENT (Details
REGULATORY REQUIREMENT (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
REGULATORY REQUIREMENT | ||
Net Capital | $ 233,954,515 | $ 94,899,679 |
Requirement | 17,361,909 | 37,141,128 |
Excess Net Capital | 216,592,606 | 57,758,551 |
TradeUp Securities | ||
REGULATORY REQUIREMENT | ||
Net Capital | 95,665,200 | 14,546,628 |
Requirement | 4,283,392 | 250,000 |
Excess Net Capital | 91,381,808 | 14,296,628 |
US Tiger Securities | ||
REGULATORY REQUIREMENT | ||
Net Capital | 10,429,009 | 9,206,613 |
Requirement | 250,000 | 250,000 |
Excess Net Capital | 10,179,009 | 8,956,613 |
Tiger Brokers SG | ||
REGULATORY REQUIREMENT | ||
Net Capital | 113,290,584 | 9,718,825 |
Requirement | 12,443,882 | 2,382,717 |
Excess Net Capital | 100,846,702 | 7,336,108 |
TBNZ | ||
REGULATORY REQUIREMENT | ||
Net Capital | 61,427,613 | |
Requirement | 34,258,411 | |
Excess Net Capital | $ 27,169,202 | |
Tiger Brokers HK | ||
REGULATORY REQUIREMENT | ||
Net Capital | 14,569,722 | |
Requirement | 384,635 | |
Excess Net Capital | $ 14,185,087 |
EMPLOYEE BENEFIT PLAN (Details)
EMPLOYEE BENEFIT PLAN (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |||
Provision for employee benefits | $ 11,121,724 | $ 4,323,814 | $ 5,618,209 |
STATUTORY RESERVES AND RESTRI_2
STATUTORY RESERVES AND RESTRICTED NET ASSETS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Minimum annual appropriation to general reserve fund as a percentage of after tax profit | 10.00% | ||
Threshold percentage of general reserve fund to registered capital | 50.00% | ||
Amount of restricted net asset unconsolidated subsidiaries | $ 63,908,860 | $ 48,315,519 | |
Beijing U Tiger Business | |||
Appropriation to statutory reserve funds | $ 724,008 | ||
Beijing Yixin | |||
Appropriation to statutory reserve funds | $ 899,337 | $ 1,939,543 |