Document And Entity Information
Document And Entity Information | 6 Months Ended |
Jun. 30, 2022 | |
Document Information Line Items | |
Entity Registrant Name | UCLOUDLINK GROUP INC. |
Document Type | 6-K |
Current Fiscal Year End Date | --12-31 |
Amendment Flag | false |
Entity Central Index Key | 0001775898 |
Document Period End Date | Jun. 30, 2022 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q2 |
Entity File Number | 001-39302 |
Unaudited Interim Condensed Con
Unaudited Interim Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Revenues | $ 33,637 | $ 36,934 |
Cost of revenues | (19,847) | (26,000) |
Gross profit | 13,790 | 10,934 |
Research and development expenses | (5,101) | (6,839) |
Sales and marketing expenses | (5,290) | (7,216) |
General and administrative expenses | (7,988) | (17,046) |
Other expense, net | (8,776) | (3,378) |
Loss from operations | (13,365) | (23,545) |
Interest income | 5 | 9 |
Interest expenses | (346) | (89) |
Amortization of beneficial conversion feature | (456) | |
Loss before income tax | (14,162) | (23,625) |
Income tax credit/(expenses) | (119) | 4 |
Share of profit in equity method investment, net of tax | 77 | 53 |
Net loss | (14,204) | (23,568) |
Net loss attributable to ordinary shareholders of the Company | (14,204) | (23,568) |
Net loss | (14,204) | (23,568) |
Foreign currency translation adjustment | 1,832 | 432 |
Total comprehensive loss | $ (12,372) | $ (23,136) |
Net loss per share attributable to ordinary shareholders of the Company | ||
Basic and diluted (in Dollars per share) | $ (0.05) | $ (0.08) |
Weighted average number of ordinary shares used in computing net loss per share | ||
Basic and diluted (in Shares) | 291,887,614 | 283,008,578 |
Revenues from services | ||
Revenues | $ 21,084 | $ 17,710 |
Sales of products | ||
Revenues | 12,553 | 19,224 |
Cost of services | ||
Cost of revenues | (9,947) | (10,460) |
Cost of products sold | ||
Cost of revenues | $ (9,900) | $ (15,540) |
Unaudited Interim Condensed C_2
Unaudited Interim Condensed Consolidated Statements of Comprehensive Loss (Parentheticals) - $ / shares | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||
Basic and diluted | $ (0.05) | $ (0.08) |
Basic and diluted | 291,887,614 | 283,008,578 |
Unaudited Interim Condensed C_3
Unaudited Interim Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 11,985 | $ 7,868 |
Short-term deposit | 195 | 196 |
Accounts receivable, net | 12,919 | 14,923 |
Inventories | 4,937 | 6,133 |
Prepayments and other assets | 5,078 | 6,225 |
Amounts due from related parties | 271 | 1,153 |
Other investments | 10,177 | 12,587 |
Total current assets | 45,562 | 49,085 |
Non-current assets: | ||
Long-term investments | 1,853 | 1,867 |
Property and equipment, net | 1,455 | 1,796 |
Intangible assets, net | 887 | 1,009 |
Other investments | 7,738 | 12,058 |
Prepayments | 916 | 1,310 |
Total non-current assets | 12,849 | 18,040 |
Total assets | 58,411 | 67,125 |
Current liabilities: | ||
Short term borrowings (including US$941 thousands and nil from the former consolidated VIEs, without recourse to the Company as of December 31, 2021 and June 30, 2022, respectively) | 5,224 | 3,177 |
Accrued expenses and other liabilities (including US$12,424 thousands and nil from the former consolidated VIEs, without recourse to the Company as of December 31, 2021 and June 30, 2022, respectively) | 25,282 | 27,580 |
Accounts payables (including US$4,034 thousands and nil from the former consolidated VIEs, without recourse to the Company as of December 31, 2021 and June 30, 2022, respectively) | 9,952 | 12,986 |
Amounts due to related parties (including US$18 thousands and nil from the former consolidated VIEs, without recourse to the Company as of December 31, 2021 and June 30, 2022, respectively) | 1,376 | 1,453 |
Contract liabilities (including US$89 thousands and nil from the former consolidated VIEs, without recourse to the Company as of December 31, 2021 and June 30, 2022, respectively) | 1,492 | 1,575 |
Convertible promissory notes | 4,524 | |
Financial derivative instrument | 672 | |
Total current liabilities | 48,522 | 46,771 |
Non-current liabilities: | ||
Other non-current liabilities | 233 | 262 |
Total non-current liabilities | 233 | 262 |
Total liabilities | 48,755 | 47,033 |
Commitments and contingencies | ||
Shareholders’ equity | ||
Class A ordinary shares (US$0.00005 par value; 1,700,000,000 shares authorized; 164,975,400 and 167,674,670 shares issued and outstanding as of December 31, 2021 and June 30, 2022, respectively) | 8 | 8 |
Class B ordinary shares (US$0.00005 par value; 200,000,000 shares authorized; 122,072,980 and 122,072,980 shares issued and outstanding as of December 31, 2021 and June 30, 2022, respectively) | 6 | 6 |
Additional paid-in capital | 231,984 | 230,048 |
Accumulated other comprehensive (loss)/income | 1,386 | (446) |
Accumulated losses | (223,728) | (209,524) |
Total shareholders’ equity | 9,656 | 20,092 |
Total liabilities and shareholders’ equity | $ 58,411 | $ 67,125 |
Unaudited Interim Condensed C_4
Unaudited Interim Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Former VIE | ||
Short term borrowings (in Dollars) | $ 941 | |
Accrued expenses and other liabilities (in Dollars) | 12,424 | |
Accounts payables (in Dollars) | 4,034 | |
Amounts due to related parties (in Dollars) | 18 | |
Contract liabilities (in Dollars) | $ 89 | |
Class A Ordinary Shares | ||
Ordinary shares, par value (in Dollars per share) | $ 0.00005 | $ 0.00005 |
Ordinary shares, authorized | 1,700,000,000 | 1,700,000,000 |
Ordinary shares, issued | 167,674,670 | 164,975,400 |
Ordinary shares, outstanding | 167,674,670 | 164,975,400 |
Class B Ordinary Shares | ||
Ordinary shares, par value (in Dollars per share) | $ 0.00005 | $ 0.00005 |
Ordinary shares, authorized | 200,000,000 | 200,000,000 |
Ordinary shares, issued | 122,072,980 | 122,072,980 |
Ordinary shares, outstanding | 122,072,980 | 122,072,980 |
Unaudited Interim Condensed C_5
Unaudited Interim Condensed Consolidated Statements of Changes in Shareholders’ Equity - USD ($) $ in Thousands | Class A ordinary shares | Class B ordinary shares | Additional paid-in capital | Cumulative translation adjustments | Accumulated losses | Total |
Balance at Dec. 31, 2020 | $ 8 | $ 6 | $ 220,292 | $ (429) | $ (163,483) | $ 56,394 |
Balance (in Shares) at Dec. 31, 2020 | 160,055,640 | 122,072,980 | ||||
Foreign currency translation adjustment | 432 | 432 | ||||
Net loss for the year | (23,568) | (23,568) | ||||
Share-based compensation | 6,706 | 6,706 | ||||
Shares issued upon exercise of employee share options | 899 | 899 | ||||
Shares issued upon exercise of employee share options (in Shares) | 1,735,060 | |||||
Balance at Jun. 30, 2021 | $ 8 | $ 6 | 227,897 | 3 | (187,051) | 40,863 |
Balance (in Shares) at Jun. 30, 2021 | 161,790,700 | 122,072,980 | ||||
Balance at Dec. 31, 2021 | $ 8 | $ 6 | 230,048 | (446) | (209,524) | 20,092 |
Balance (in Shares) at Dec. 31, 2021 | 164,975,400 | 122,072,980 | ||||
Foreign currency translation adjustment | 1,832 | 1,832 | ||||
Net loss for the year | (14,204) | (14,204) | ||||
Share-based compensation | 1,711 | 1,711 | ||||
Issuance of Ordinary shares for convertible debenture | 225 | 225 | ||||
Issuance of Ordinary shares for convertible debenture (in Shares) | 1,000,000 | |||||
Issuance of shares upon vesting of Restricted Shares | ||||||
Issuance of shares upon vesting of Restricted Shares (in Shares) | 1,699,270 | |||||
Balance at Jun. 30, 2022 | $ 8 | $ 6 | $ 231,984 | $ 1,386 | $ (223,728) | $ 9,656 |
Balance (in Shares) at Jun. 30, 2022 | 167,674,670 | 122,072,980 |
Unaudited Interim Condensed C_6
Unaudited Interim Condensed Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities | ||
Net loss | $ (14,204) | $ (23,568) |
Adjustments to reconcile net loss to net cash generated from/ (used in) operating activities | ||
Provision/(Reversal) for bad debts | (155) | 77 |
Impairment for inventory obsolescence | 172 | |
Disposal of obsolescent goods | (44) | |
Depreciation of property and equipment | 448 | 1,074 |
Amortization of intangible assets | 74 | 70 |
Gains on disposals of property and equipment | (31) | (48) |
Interest expenses | 346 | 89 |
Amortization of beneficial conversion feature | 456 | |
Share-based compensation | 1,711 | 6,706 |
Fair value losses on other investments | 6,731 | 3,551 |
Share of profit in equity method investments | (77) | (53) |
Foreign currency exchange losses, net | 2,426 | 419 |
Changes in operating assets and liabilities | ||
Accounts receivable | 2,160 | (5,051) |
Prepayments and other assets | 1,148 | (1,194) |
Inventories | 851 | (479) |
Accrued expenses, accounts payable and other liabilities | (4,754) | 4,339 |
Amounts due to related parties | 324 | 22 |
Amounts due from related party | 481 | 1,027 |
Contract liabilities | (83) | 212 |
Net cash used in operating activities | (1,976) | (12,851) |
Cash flows from investing activities | ||
Purchase of property and equipment | (245) | (357) |
Purchase of intangible assets | (14) | |
Proceeds from disposal of property and equipment | 66 | 140 |
Cash paid for equity method investment | (247) | |
Increase in short-term deposit | (2) | |
Net cash used in investing activities | (179) | (480) |
Cash flows from financing activities | ||
Proceeds from bank borrowings | 6,641 | 4,534 |
Repayments of bank borrowings | (4,374) | (3,462) |
Proceeds from convertible debenture | 4,735 | |
Proceeds from exercise of share options | 772 | |
Net cash generated from financing activities | 7,002 | 1,844 |
(Decrease)/Increase in cash, cash equivalents and restricted cash | 4,847 | (11,487) |
Cash, cash equivalents and restricted cash at beginning of period | 7,868 | 30,226 |
Effect of exchange rates on cash, cash equivalents and restricted cash | (730) | (358) |
Cash, cash equivalents and restricted cash at end of period | 11,985 | 18,381 |
Supplemental disclosure of cash flow information | ||
Interest paid | $ (132) | $ (89) |
Organization and principal acti
Organization and principal activities | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Organization and principal activities | 1. Organization and principal activities (a) History and organization UCLOUDLINK GROUP INC. (the “Company”) was incorporated in the Cayman Islands on 25 August 2014 as an exempted company with limited liability under the Companies Law, Cap. 22 (Law 3 of 1961, as consolidated and revised) of the Cayman Islands. The Company through its consolidated subsidiaries is principally engaged in the provision of data connectivity services and sales of Wi-Fi terminals and data related products to enable personal and enterprise users to access mobile internet in more than 100 countries and areas. Due to the legal restrictions of the People’s Republic of China (the “PRC”) on foreign ownership and investment in such business, the Company conducts its primary business operations in the PRC through its subsidiaries. (b) Principal subsidiaries As of June 30, 2022, the details of the Company’s principal subsidiaries were as follows: Entity Place of incorporation Date of incorporation Relationship % of direct or indirect economic ownership Principal activities UCLOUDLINK (HK) LIMITED Hong Kong 2 September 2014 Subsidiary 100 % Holding company HONG KONG UCLOUDLINK Hong Kong 25 October 2010 Subsidiary 100 % Holding company, information technology services and sales of terminals and data related products Shenzhen Ucloudlink Technology PRC 9 July 2015 Subsidiary 100 % Technology research Shenzhen uCloudlink Co., Ltd. PRC 7 June 2018 Subsidiary 100 % Hardware exportation Beijing uCloudlink Technology PRC 29 January 2015 Subsidiary 100 % Holding company UCLOUDLINK (SINGAPORE) Singapore 15 May 2017 Subsidiary 100 % Sales and marketing UCLOUDLINK (UK) CO. LTD UK 13 October 2014 Subsidiary 100 % Sales and marketing Ucloudlink (America), Ltd. USA 1 August 2016 Subsidiary 100 % Sales and marketing UCLOUDLINK SDN.BHD Malaysia 24 August 2017 Subsidiary 100 % Sales and marketing uCloudlink Japan Co., Ltd. Japan 7 March 2018 Subsidiary 100 % Sales and marketing Shenzhen uCloudlink Network PRC 14 August 2014 Subsidiary 100 % Information technology services and sales of terminals and data related products Beijing uCloudlink New PRC 15 November 2014 Subsidiary 100 % Information technology services and sales of terminals and data related products PT UCLOUDLINK Indonesia 27 September 2018 Subsidiary 100 % Sales and marketing UCLOUDLINK UK LIMITED UK 24 February 2021 Subsidiary 100 % Sales and marketing Shenzhen Yulian Cloud Technology Co., PRC 22 February 2022 Subsidiary 100 % Sales and marketing (c) Former Variable Interest Entities Before March 17, 2022, t he Company entered into certain exclusive technical services agreements with certain PRC domestic companies, which entitle it to receive a majority of their residual returns and make it obligatory for the Company to absorb a majority of the risk of losses from their activities. In addition, the Company entered into certain agreements with the equity holders of these PRC domestic companies, including loan agreements that require them to contribute registered capital to those PRC domestic companies, exclusive call option agreements to acquire the equity interests in these companies when permitted by the PRC laws, rules and regulations, equity pledge agreements of the equity interests held by those equity holders, and proxy agreements that irrevocably authorize individuals designated by the Company to exercise the equity owner’s rights over these PRC domestic companies. On March 17, 2022, Beijing uCloudlink, the former VIEs, the nominee shareholders of the former VIEs and the spouses of the shareholders of Beijing Technology entered into termination agreements respectively, to terminate these contractual arrangements. Beijing uCloudlink issued a confirmation letter to designate Shenzhen Ucloudlink Technology Limited, to exercise the exclusive option right to purchase all equity interests of Beijing Technology from its shareholders according to the above-mentioned option agreement. Accordingly, Shenzhen Technology entered into an equity interest transfer agreement with the shareholders of Beijing Technology, and was registered as the sole shareholder of Beijing Technology since March 17, 2022. All contractual arrangements were terminated since then. (d) Initial Public Offering On June 10, 2020, the Company completed its IPO on the Nasdaq Global Market. In the offering, 2,010,000 ADSs, representing 20,100,000 Class A ordinary shares, were issued and sold to the public at a price of US$18 per ADS. The net proceeds to the Company from the IPO, after deducting commissions and offering expenses, were approximately US$27.6 million. Immediately prior to the completion of the IPO, the Company completed the redesignation on a one-for-one basis of: (i) 122,072,980 ordinary shares beneficially owned by Mr. Chaohui Chen and Mr. Zhiping Peng into Class B ordinary shares, (ii) all of the remaining ordinary shares into Class A ordinary shares, (iii) the automatic conversion and the redesignation of all of the remaining issued and outstanding preferred shares on a one-for-one basis into Class A ordinary shares. In respect of all matters subject to shareholders’ vote, each holder of Class A ordinary share is entitled to one and each holder of Class B ordinary share is entitled to fifteen votes. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | 2. Summary of significant accounting policies 2.1 Basis of presentation The accompanying unaudited interim condensed consolidated financial statements of the Group have been prepared in accordance with the accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes normally included in the annual financial statements prepared in accordance with U.S. GAAP. Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted consistent with Article 10 of Regulation S-X. In the opinion of management, the Group’s unaudited interim condensed consolidated financial statements and accompanying notes include all adjustments (consisting of normal recurring adjustments) considered necessary for the fair statement of the Group’s financial position as of December 31, 2021 and June 30, 2022, and results of operations and cash flows for the six months ended June 30, 2021 and 2022. Interim results of operations are not necessarily indicative of the results for the full year or for any future period. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2021, and related notes included in the Group’s audited consolidated financial statements. The financial information as of December 31, 2021 presented in the unaudited interim condensed consolidated financial statements is derived from the audited consolidated financial statements as of December 31, 2021. 2.2 Use of estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires the Group to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates, and such differences may be material to the consolidated financial statements. Significant accounting estimates reflected in the Company’s consolidated financial statements include legal contingencies, share-based compensation and realization of deferred tax assets. The Group bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. 2.3 Consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries. Subsidiaries are all entities (including structured entities) over which the Company has control. The Company controls an entity when the Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Company. They are de-consolidated from the date on that control ceases. In preparing the consolidated financial statements, transactions, balances and unrealized gains on transactions between group entities are eliminated. Unrealized losses are also eliminated unless the transactions provide evidence of an impairment indicator of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Company. 2.4 Investment in equity method investees The equity investment represents the Group’s investment in three entities. The Group accounts for its equity investment over which it has significant influence but does not own a majority equity interest or otherwise control using the equity method. The Group adjusts the carrying amount of the investment and recognizes investment income or loss for share of the earnings or loss of the investees after the date of investment. When the Group’s share of loss in the equity investees equal or exceed their interest in the equity investee, the Group does not recognize further losses, unless the Group has incurred obligations or made payments or guarantees on behalf of the equity investees. The Group assesses its equity investment for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, operating performance of the entities, including current earnings trends and undiscounted cash flows, and other entity-specific information. The fair value determination, particularly for investment in privately-held entities, requires judgment to determine appropriate estimates and assumptions. Changes in these estimates and assumptions could affect the calculation of the fair value of the investment and determination of whether any identified impairment is other-than-temporary. 2.5 Fair value of financial instruments 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. The established fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs that may be used to measure fair value include: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Observable, market-based inputs, other than quoted prices, in active markets for identical assets or liabilities. Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Accounting guidance also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. The Group does not have any non-financial assets or liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. The Group’s financial instruments consist principally of cash and cash equivalents, short-term deposit, accounts receivable, accounts payable, contract liabilities and other liabilities. As of December 31, 2021 and June 30, 2022, the carrying values of cash and cash equivalents, short-term deposit, accounts receivable, accounts payable, contract liabilities and other liabilities approximated their fair values reported in the consolidated balance sheets due to the short-term nature of these instruments. 2.6 Revenue recognition Revenue is principally generated by the provision of data connectivity services and the sales of terminals and sales of data related products. Revenue represents the fair value of the consideration received or receivable for the sales of goods and the provision of services in the ordinary course of the Group’s activities and is recorded net of value-added tax (“VAT”). The Group recognizes revenue in accordance with ASC 606 “Revenue from Contracts with Customers” for all years presented with full retrospective method. The Group conducts its business through various contracts with customers, including: (i) Data connectivity services The Group generates international data connectivity services revenues from (i) data service fees from the use of portable Wi-Fi terminals (under its brand of “Roamingman”), (ii) data service fees generated from sales of data connectivity services to enterprise customers, and (iii) retail sales of data connectivity services. The Group also generates local data connectivity services revenues from (i) data service fees generated from sales of data connectivity services to enterprise customers, and (ii) retail sales of data connectivity services. For data connectivity services from the use of portable Wi-Fi terminals, the Group determines that the arrangement involves the leasing of portable Wi-Fi terminals with data connectivity services embedded. The Group determines that it is the lessor in the arrangement which contains an equipment lease component and a service non-lease component. The Group further determines that lease component is an operating lease under ASC 840, and that the operating lease component and service component are delivered over the same time and pattern. Therefore, the lease income and service income are recognized as data connectivity services revenue evenly over the service period. The Group evaluates and determines that it is the principal. For data connectivity services from the use of portable Wi-Fi terminals and retail sales of data connectivity services, the Group views users as its customers. For data connectivity services generated from sales of data connectivity services to enterprise customers, the Group views enterprise customers as its customers. The Group reports data connectivity services revenues on gross basis. Accordingly, the amounts paid for data connectivity services by customers are recorded as revenues and the related commission fees paid to its agents (mainly travel agents and other online distributors) are recorded as cost of revenues. Where the Group is the principal, it controls the data before the data connectivity service is provided to customers. Its control is evidenced by the inventory risk borne by the Group and the Group’s ability to direct the use of the data, and is further supported by the Group being primarily responsible to customers and having the discretion in establishing pricing. Data connectivity services offered to customers typically provide unlimited data usage during a fixed period of time (“contract period”), where revenue is recognized ratably on a straight-line basis over the contract period. The Group does not have further performance obligations to the customers after the contract period. The Group also offers data connectivity services where customers are charged service fee based on actual data usage, where revenue is recognized as the services are provided to customers. In providing data connectivity services to its customers, the Group procures SIM cards and data plans from various suppliers. Those SIM cards are activated and hosted on the Group’s cloud SIM platform. The Group’s cloud SIM platform manages terminal information and customer accounts and intelligently allocates the SIM cards and data plans and makes them available to customers who purchase the Group’s data connectivity services. Accordingly, the Group takes inventory risk and obtains control of the SIM cards and data plans procured and direct the use of the data on its cloud SIM platform depending on customers’ demand. The Group accounts for the SIM cards and data plans procured as costs of revenue as data is being made available and consumed on its cloud SIM platform. As the Group’s data connectivity services are provided without right of return and the Group does not provide any other credit and incentive to its customers, therefore, the Group’s provision of data connectivity services does not involve variable consideration. (ii) Sales of terminals and data related products The Group generates revenues from selling tangible products, including GlocalMe portable Wi-Fi terminals, GlocalMe World Phone series and smartphones with GlocalMe Inside (“GMI”) implemented, as well as SIM cards, to enterprise and retail customers and business partners. Sales of terminals and data related products are recognized when control of promised goods is transferred to the customers, which generally occurs upon the acceptance of the goods by the customers. For sales of Wi-Fi terminals, one gigabyte of free data connectivity service is normally included as a bundle package for the first time purchase of the terminals. There are two separate performance obligations in such bundle sales as the Wi-Fi terminal is a distinct good while the data connectivity service is a distinct service. The Group allocates the transaction price to each distinct performance obligation based on their relative standalone selling prices. The Group then recognizes revenue for each of the distinct performance obligations identified in accordance with the applicable revenue recognition method relevant for that obligation. For revenue related to the Wi-Fi terminals, revenue is recognized when the control of the Wi-Fi terminals is transferred. For revenue related to the data connectivity service, it is recognized ratably on a straight-line basis over the relevant contract period. (iii) Provision of PaaS or SaaS services Platform-as-a-Service (PaaS) or Software-as-a-Service (SaaS) mainly consist of fees generated from providing cloud SIM platform as a service to business partners. The Group provides its cloud SIM platform as a service to business partners enabling them to manage their data resources. Business partners using the platform are charged service fees for the use of the cloud SIM platform services. The Group has continuous obligation to ensure the performance of the platform over the service period. Revenue is recognized ratably over the contract period as business partners simultaneously consume and receive benefits from the service. The Group does not provide any other credit and incentive related to the cloud SIM platform services, therefore there is no variable consideration in the arrangement. (iv) Contract balance Contract liabilities represent the cash collected upfront from the customers for purchase of data connectivity services or purchase of Wi-Fi terminals, while the underlying data connectivity services have not yet been rendered or the Wi-Fi terminals have not been delivered to the customers by the Group, which is included in the presentation of contract liabilities. Due to the generally short-term duration of the relevant contracts, all performance obligations are satisfied within one year. Where transaction prices for data connectivity services and Wi-Fi terminals are received upfront from the customers, such receipts are recorded as contract liabilities and recognized as revenues over the contract period. The opening balance of contract liabilities from several customers as of January 1, 2021 was US$889 thousands. For the year ended December 31, 2021 and six months ended 2022, revenue amounting to US$889 thousands and US$1,575 thousands were included in the contract liabilities balance at the beginning of the respective period. 2.7 Convertible promissory notes Convertible promissory notes are recognized initially at fair value, net of upfront fees, debt discounts or premiums, debt issuance costs and other incidental fees. Upfront fees, debt discounts or premiums, debt issuance costs and other incidental fees are recorded as a reduction of the proceeds received and the related accretion is recorded as interest expense in the consolidated income statements over the estimated term of the facilities using the effective interest method. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent accounting pronouncements | 3. Recent accounting pronouncements In June 2016, the FASB issued ASU No. 2016-13 “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. The new guidance amended guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For available for sale debt securities, credit losses will be presented as an allowance rather than as a write-down. This standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for all entities. In November 2019, the FASB issued ASU No. 2019-10, “Financial Instruments-Credit Losses (Topic 326): Effective Dates”, to finalize the effective date delays for private companies, not-for-profits, and smaller reporting companies applying the CECL standards. The ASU is effective for reporting periods beginning after December 15, 2022 and interim periods within those fiscal years. Early adoption is permitted. The Group is currently assessing the impact of adopting this standard on its consolidated financial statements. In August 2020, the FASB issued ASU 2020-06, “Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity”, which simplifies an issuer’s accounting for certain convertible instruments and the application of derivatives scope exception for contracts in an entity’s own equity. This guidance also addresses how convertible instruments are accounted for in the diluted earnings per share calculation and required enhanced disclosures about the terms of convertible instruments and contracts in an entity’s own equity. The new guidance is required to be applied either retrospectively to financial instruments outstanding as of the beginning of the first comparable reporting period for each prior reporting period presented or retrospectively with the cumulative effect of the change to be recognized as an adjustment to the opening balance of retained earnings at the date of adoption. This guidance is effective for the Company for the year ending March 31, 2023 and interim reporting periods during the year ending March 31, 2023. Early adoption is permitted. The Company does not expect the adoption of this guidance will have a material impact on the financial position, results of operations and cash flows. In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (ASU 2021-08), which clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. The new amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The amendments should be applied prospectively to business combinations occurring on or after the effective date of the amendments, with early adoption permitted. The Group is currently evaluating the impact of the new guidance on the consolidated financial statements. In June 2022, the FASB issued ASU 2022-03, “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions”, which clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. This guidance also requires certain disclosures for equity securities subject to contractual sale restrictions. The new guidance is required to be applied prospectively with any adjustments from the adoption of the amendments recognized in earnings and disclosed on the date of adoption. This guidance is effective for the Company for the year ending March 31, 2025 and interim reporting periods during the year ending March 31, 2025. Early adoption is permitted. The Company does not expect that the adoption of this guidance will have a material impact on the financial position, results of operations and cash flows. |
Revenues
Revenues | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | 4. Revenues Six Months ended June 30, (In thousands) 2021 2022 Revenues from services —Data connectivity services 12,072 15,787 International data connectivity services 10,334 12,391 Local data connectivity services 1,738 3,396 —PaaS and SaaS services 5,437 4,927 —Others 201 370 17,710 21,084 Sales of products —Sales of terminals 14,451 10,589 —Sales of data related products 2,978 1,892 —Others 1,795 72 19,224 12,553 Total 36,934 33,637 (a) Disaggregation of revenue In the following table, revenue is geographically disaggregated according to the locations of the customers. Six Months ended June 30, (In thousands) 2021 2022 Japan 20,314 13,132 North America 9,502 12,979 Mainland China 2,596 848 Southeast Asia 1,712 2,416 Hong Kong SAR 1,441 1,905 Europe 612 1,430 Taiwan 81 240 Others 676 687 Total 36,934 33,637 |
Other Expense, Net
Other Expense, Net | 6 Months Ended |
Jun. 30, 2022 | |
Other Income and Expenses [Abstract] | |
Other Expense, Net | 5. Other expense, net Six Months ended June 30, (In thousands) 2021 2022 Foreign exchange losses, net (419 ) (2,426 ) Government grants (note) 488 342 Gains on disposal of property and equipment, net 48 31 Fair value losses on other investments (3,551 ) (6,731 ) Others 56 8 Total (3,378 ) (8,776 ) Note: Government grants mainly represent amounts received from central and local governments in connection with the Group’s investments in local business districts and contributions to technology development. |
Taxation
Taxation | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Taxation | 6. Taxation (a) Income taxes (i) Cayman Islands The Company was incorporated in the Cayman Islands and conducts most of its business through its subsidiaries and VIEs located in the PRC and Hong Kong. Under the current laws of the Cayman Islands, the Company is not subject to tax on either income or capital gain. Additionally, upon payments of dividends to the shareholders, no Cayman Islands withholding tax will be imposed. (ii) PRC The PRC enterprise income tax is calculated based on the taxable income determined under the PRC laws and accounting standards. Under the Corporate Income Tax (“CIT”) Law, which became effective on January 1, 2008, foreign invested enterprises and domestic enterprises are subject to a unified CIT rate of 25%. In accordance with the implementation rules of the CIT Law, a qualified “High and New Technology Enterprise” (“HNTE”) is eligible for a preferential tax rate of 15% with valid period of three years. Shenzhen Ucloudlink Technology Limited and Shenzhen uCloudlink are qualified as HNTE, which are eligible to a preferential tax rate of 15% for the three-year period from 2017 to 2019 as long as they fulfill the HNTE criteria. In 2020, the preferential tax rate of 15% for Shenzhen Ucloudlink Technology Limited and Shenzhen uCloudlink was extended for three years from 2020 to 2022. The Group’s loss before income taxes consisted of: Six Months ended June 30, (In thousands) 2021 2022 Non-PRC (13,952 ) (7,897 ) PRC (9,673 ) (6,265 ) Total (23,625 ) (14,162 ) (iii) Hong Kong The Company’s subsidiaries incorporated in Hong Kong are subject to profits tax rate of 16.5% on taxable income. The reconciliations of the income tax expenses for the six months ended June 30,2021 and June 30, 2022 were as follows: Six Months ended June 30, (In thousands) 2021 2022 Loss before income tax (23,625 ) (14,162 ) Income tax computed at statutory PRC income tax rate (25%) (i) (5,906 ) (3,541 ) Differential income tax rates applicable to certain entities comprising the Group 2,169 712 Effect of tax holiday 950 646 Permanent differences (ii) 90 15 Change in valuation allowance 3,147 2,874 Accelerated deductions on research and development expenses (iii) (454 ) (587 ) Income tax (credit)/expenses (4 ) 119 (i) The PRC statutory income tax rate was used because the majority of the Group’s operations are based in the PRC. (ii) Permanent differences primarily represent non-deductible expenses. (iii) This amount represents tax incentives relating to the research and development expenses of certain major operating subsidiaries in the PRC. This tax incentive enables those subsidiaries to claim an additional tax deduction amounting to 75% of the qualified research and development expenses incurred. The per share effect of the tax holiday are as follows: Six Months ended June 30, (In thousands) 2021 2022 Effect of tax holiday 950 646 Per share effect – basic and diluted 0.00 0.00 (b) Deferred tax assets Deferred income tax expense reflects the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The components of the deferred tax assets are as follows: As of December 31, As of June 30, (In thousands) 2021 2022 Deferred tax assets Net operating loss carryforwards 14,808 17,497 Accrued expenses and others 427 612 Less: valuation allowance (15,235 ) (18,109 ) Net deferred tax assets — — Movement of valuation allowance As of December 31, As of June 30, (In thousands) 2021 2022 Balance at beginning of the period 9,830 15,235 Change of valuation allowance 5,405 2,874 Balance at end of the period 15,235 18,109 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 utilized in the future. The Group considers positive and negative evidence to determine whether some portion or all of the deferred tax assets will be more-likely-than-not realized. This assessment considers, among other matters, the nature, frequency and severity of recent losses and forecasts of future profitability. These assumptions require significant judgment and the forecasts of future taxable income are consistent with the plans and estimates the Group is using to manage the underlying businesses. Valuation allowances are established for deferred tax assets based on a more likely than not threshold. The Group’s ability to realize deferred tax assets depends on its ability to generate sufficient taxable income within the carry forward periods provided for in the tax law. The Group has provided a full valuation allowance for the deferred tax assets as of December 31, 2021 and June 30, 2022, as management is not able to conclude that the future realization of those net operating loss carries forwards and other deferred tax assets are more likely than not. The statutory rate of 15% to 25%, depending on which entity, was applied when calculating deferred tax assets. As of December 31, 2021 and June 30, 2022, the Group had net operating loss carryforwards of approximately US$100,986 thousands and US$117,995 thousands respectively, which arose from the subsidiaries and the former VIE established in Hong Kong and PRC. As of December 31, 2021 and June 30, 2022, the Group does not believe that sufficient positive evidence exists to conclude that the recoverability of deferred tax assets is more likely than not to be realized. Consequently, the Group has provided full valuation allowance on the related deferred tax assets. According to the Circular of relevant governmental regulatory authorities of Taxation on Extending the Loss Carry-over Period of High-tech Enterprises and High-tech SMEs (Cai Shui [2018] No. 76), from January 1, 2018, the enterprises that have the qualifications of high-tech enterprises or high-tech SMEs will be able to make up for the losses that have not been completed in the previous five years before the qualification year. The longest carry-over period is extended from 5 years to 10 years. As of December 31, 2021, the net operating loss carry forwards arose from Shenzhen uCloudlink Technology Limited and Shenzhen uCloudlink will expire during the period from 2026 2030 (c) Uncertain tax position The Group evaluates the level of authority for each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. As of December 31, 2021 and June 30, 2022, the Group did not have any significant unrecognized uncertain tax positions. The Group does not anticipate any significant increase to our liability for unrecognized tax benefit within the next 12 months. Interest and penalties related to income tax matters, if any, is included in income tax expense. |
Ordinary shares
Ordinary shares | 6 Months Ended |
Jun. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
Ordinary shares | 7. Ordinary shares (i) Prior to May 19, 2019, the authorized share of the Company was US$50,000 divided into 50,000,000 shares of par value US$0.001. On May 19, 2019, the Board of Directors of the Company passed the resolution that all of the Company’s ordinary shares and preferred shares were subdivided into 20 shares with a par value of US$0.00005 each. The par value of ordinary shares and preferred shares and related disclosure have been recast to reflect the US$0.00005 par value for all periods presented in the consolidated financial statements. As of December 31, 2018, 2019 and 2020, the Company has 228,749,678 ordinary shares (including 162,897,778 vested restricted shares), 232,451,900 shares (including 162,897,778 vested restricted shares) and nil nil (ii) On January 28, 2015, the Company entered into a share purchase agreement (“Series A SPA”) with certain investors under which the Company issued 8,400,000 ordinary shares at a total consideration of US$4,056,206 and 25,000,000 Series A Preferred Shares to certain investors at a total consideration of US$9,788,652. Also as a closing condition to the Series A SPA, the Company entered into a share restriction agreement with certain senior management and their respective wholly owned subsidiaries, which directly hold the equity interest on the Company. Pursuant to the share restriction agreement, all ordinary shares (“Restricted Shares”) of the Company held by certain senior management shall be subject to vesting conditions until the Restricted Shares become vested. The Restricted Shares shall vest over a period of 5 years from the closing of the Series A SPA (which was shortened to 4 years on September 22, 2016). Vesting of all Restricted Shares will be accelerated upon the completion of a qualified IPO or trade sale. In the event that certain senior management voluntarily and unilaterally terminates his employment/service contract with the Group or his employment or service relationship is terminated by any applicable Group entities for cause as stated in the Series A SPA, the related senior management shall sell to the Company, and the Company shall repurchase from certain senior management, all of the unvested shares at a price of US$0.00005 per share. Such restricted shares were treated as deemed contribution by those senior management to the Company and the fair value of which were recognized as share-based compensation expense over the vesting period. Ordinary shares of 44,426,667 and 44,426,667 were vested and presented as an increase of the numbers of issued ordinary shares during the year ended December 31, 2017 and December 31, 2018, respectively. At any time prior to a qualified IPO, the shares held by certain senior management shall not be transferred directly or indirectly without the prior written consent of the Series A Preferred Shares holders, except for those to be transferred to the employees of the Company pursuant to an Stock Option Plan approved by the board. (iii) On November 25, 2015, the Company entered into a share purchase agreement (“A-1 SPA”) with certain investors under which the Company issued 26,575,220 ordinary shares at a total consideration of US$21,555,470. There were liquidation preference and a redemption right attached to certain of these ordinary shares with 10% annual compounded interest based on original purchase price which expired on December 31, 2016. (iv) On January 1, 2016, 4,000,000 ordinary shares of certain senior management were transferred to Series A Preferred Shares at the then fair value of US$0.88 per share. (v) On September 22, 2016, the Company entered into a share purchase agreement (“A-2 SPA”) with certain investors under which the Company issued 8,502,600 ordinary shares at a total consideration of US$10,000,000. There is a redemption right attached to the ordinary shares with 12% annual compounded interest based on original purchase price. Such redemption right expired on December 31, 2017. (vi) On June 19, 2017, the Company repurchased 8,630,140 of its ordinary shares from an investor at a price of US$0.96 per share amounting to US$8,297,880. The repurchased ordinary shares were cancelled immediately and the additional paid in capital of the Company was reduced by US$8,298,236. (vii) On August 28, 2018, upon the occurrence of the event of automatic conversion of convertible bonds, in which that the Group attained cumulative revenue over RMB500 million during the year ended December 31, 2017, all the convertible bonds were converted into 35,004,220 ordinary shares of the Company. (viii) On November 25, 2015, June 19, 2017 and March 22, 2018, the Company issued 20,000,000, 4,315,080 and 31,665,280 ordinary shares, respectively, and had them held by a limited liability company owned by one of certain senior management. These ordinary shares were held on behalf of the Company and are to be awarded to employees under future equity incentive plan based on the discretion of the board of directors of the Company. The ordinary shares issued above were accounted for as treasury shares of the Group. None of these shares has been exercised nor issued from treasury shares as of December 31, 2017 and December 31, 2018, respectively. On December 31, 2018, all of the treasury shares were cancelled under the decision of the board of directors of the Company. (ix) On December 31, 2018, the board of directors of the Company adopted the 2018 Stock Option Scheme under which the Company may grant options to purchase its ordinary shares to selected employees of the Group. The board of directors of the Company reserved 55,980,360 shares on December 31, 2018 of the Company’s ordinary shares for future issuance under the plan. (x) In July 2019, two written resolutions were passed and approved by the board of directors of the Company and its shareholders: (a) The Group will adopt a dual-class share structure, consisting of Class A ordinary shares and Class B ordinary shares, which will become effective immediately prior to the completion of the Company’s IPO. Immediately prior to the completion of the IPO, (i) the conversion and re-designation of all of the then currently issued and outstanding preferred shares into ordinary shares on a one-to-one basis; (ii) 122,072,980 of ordinary shares beneficially owned by Mr. Chaohui Chen and Mr. Zhiping Peng will be redesignated into Class B ordinary shares on a one-for-one basis (iii) all of the remaining ordinary shares (including ordinary shares resulting from the conversion and re-designation of preferred shares) will be re-designated into Class A ordinary shares on a one-to-one basis. In respect of matters requiring the votes of shareholders, holders of Class A ordinary shares will be entitled to one vote per share, while holders of Class B ordinary shares will be entitled to fifteen votes per share. (b) Immediately prior to the completion of the IPO, the authorized share capital will be increased from US$50,000 divided into 1,000,000,000 shares of par value of US$0.00005 each, to US$100,000 divided into 2,000,000,000 shares of par value of US$0.00005 each. (xi) On June 10, 2020, the Company completed its IPO on the Nasdaq Global Market. The outstanding shares consist of 159,478,920 Class A ordinary shares and 122,072,980 Class B ordinary shares, of which (i) 61,346,560 Class B ordinary shares ultimately held by the Company’s founder, director and chief executive officer Chaohui Chen; (ii) 60,726,420 Class B ordinary shares ultimately held by the Company’s founder and chairman of board of directors Zhiping Peng and (iii) 110,378,920 ordinary shares were converted into Class A ordinary shares. In the offering, 2,010,000 ADSs, representing 20,100,000 Class A ordinary shares, were issued and sold to the public at a price of US$18 per ADS. Upon the completion of the IPO, all 29,000,000 issued and outstanding preferred shares were converted into Class A ordinary shares immediately as of the same date. (xii) During year ended December 31, 2020, 576,720 shares of Class A Ordinary Shares were issued upon exercise of outstanding stock options under the Group’s share-based incentive plans (Note 10). (xiii) During year ended December 31, 2021, 1,919,760 shares of Class A Ordinary Shares were issued upon exercise of outstanding stock options and 3,000,000 shares of Class A Ordinary Shares were issued upon vesting of restricted share units under the Group’s share-based incentive plans (Note 10). (xiv) During six months ended June 30, 2022, 1,000,000 shares of Class A Ordinary Shares were issued for convertible debenture and 1,699,270 shares of Class A Ordinary Shares were issued upon vesting of restricted share units under the Group’s share-based incentive plans (Note 10). |
Convertible promissory notes
Convertible promissory notes | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Convertible promissory notes | 8. Convertible promissory notes (In thousands) December 31, 2021 June 30, 2022 Convertible promissory notes – principal — 5,000 Convertible promissory notes – discount — (262 ) Convertible promissory notes – interest — (214 ) Convertible promissory notes, net — 4,524 On January 6, 2022, the Company entered into a securities purchase agreement with YA II PN, Ltd., a limited partnership managed by Yorkville Advisor Global (the “Purchaser”), pursuant to which the Company issued the Investor an unsecured promissory note on January 6, 2022 in the original principal amount of $5,000,000 at a purchase price equal to 95% of the principal amount through private placement. The above Note has a maturity date of 12 months with an interest rate of 5% per annum. The Purchaser has the right to convert all or any portion of the convertible debentures at its option at any time. Upon conversion, the Company will deliver to the Purchaser the Company’s Class A ordinary shares, par value US$0.00005 per share (the “Ordinary Shares”), which may be represented by American depositary shares (the “ADSs”). The conversion price shall be the lower of (i) US$3.50 per ADS, or (ii) 85% of a reference price benchmarked against the trading price of the Company’s ADSs. In addition, the Company will also issue to the Purchaser 1,000,000 Ordinary Shares as commitment fee at closing. Upon evaluation, the Company determined that the Agreements contained embedded beneficial conversion features which met the definition of Debt with Conversion and Other Options covered under the Accounting Standards Codification topic 470 (“ASC 470”). According to ASC 470, an embedded beneficial conversion feature present in a convertible instrument shall be recognized Separately at issuance by allocating a portion of the proceeds equal to the intrinsic value of that feature to additional paid-in capital. Pursuant to the agreement, the Company recognized embedded beneficial conversion features on January 6, 2022 of $939,376. Beneficial conversion features have been recognized into discount on convertible promissory notes and additional paid-in capital and such discount will be amortized in twelve months until the notes will be settled. For the six months ended June 30, 2022, the Company have recognized Amortization of beneficial conversion feature $456,641 to profit. |
Financial derivative instrument
Financial derivative instrument | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial derivative instrument | 9. Financial derivative instrument (In thousands) December 31, 2021 June 30, 2022 Carrying value as at beginning of period — — Derivates related to convertible promissory note (Note 8) — 672 Carrying value as at end of period — 672 On January 6, 2022, the derivatives related to the convertible promissory note (details are set out in Note 8) were valued using the Monte Carlo simulation model: volatility 112.35%, the weighted expected term of one year, a discount rate of 9.54% and a dividend yield of 0%. |
Share-based awards
Share-based awards | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-based awards | 10. Share-based awards Compensation expense recognized for share-based awards was as follow: Six Months ended Share-based compensation expenses (In thousands) 2021 2022 —Restricted Shares (a) 4,637 440 —Share options (b) 2,069 1,271 Total 6,706 1,711 (a) Restricted Shares As described in note 10(b), in July 2019, the shareholders and board of directors of the Company approved the 2019 Share Incentive Plan (“the 2019 Plan”). On January 27, 2021 and February 26, 2021, the Company granted 2,717,500 and 3,304,000 restricted shares units respectively to its employees, directors, and other consultants, pursuant to the 2019 Plan. On January 1, 2022 and January 27, 2022, the Company granted 163,520 and 172,500 restricted shares units respectively to its consultant, pursuant to the 2019 Plan. The fair value of each restricted share granted with service conditions is estimated based on the stock price of the underlying ordinary shares of the Company on the date of grant. A summary of the Restricted Shares activity for the six months ended June 30, 2021 and 2022 is presented below: Number of Restricted Shares As of January 1, 2021 — Granted 6,021,500 As of June 30, 2021 6,021,500 Number of Restricted Shares As of January 1, 2022 2,916,100 Granted 336,020 Vested (1,699,280 ) As of June 30, 2022 1,552,840 (b) Share options In December 2018, the Company adopted a share incentive plan, which is referred to as the 2018 Stock Option Scheme (“the 2018 Plan”). The purpose of the plan is to attract and retain the best available personnel by linking the personal interests of the members of the board, employees, and consultants to the success of the Company’s business and by providing such individuals with an incentive to reward their performance. Under the 2018 Plan, the maximum number of shares in respect of which options, restricted shares, or restricted share units may be granted is 55,980,360 shares. In July 2019, the Group adopted the Amended and Restated 2018 Stock Option Scheme (“Revised 2018 Plan”), which amends the previously adopted 2018 Stock Option Scheme, pursuant to which the Group may grant awards to directors, officers and employees. The maximum aggregate number of ordinary shares that may be issued under Revised 2018 Plan was 40,147,720 ordinary shares. In July 2019, the shareholders and board of directors of the Company also approved the 2019 Share Incentive Plan (“the 2019 Plan”). Under the 2019 Plan, which will be increased by a number equal to 1.0% of the total number of shares issued and outstanding on the last day of the immediately preceding fiscal year on the first day of each fiscal year, commencing with the fiscal year ended December 31, 2020, if determined and approved by the board of directors for the relevant fiscal year. On December 31, 2018 and August 12, 2019, the Company granted 12,187,420 and 5,414,300 share options to employees and certain senior management pursuant to the 2018 Plan and the Revised 2018 Plan respectively. On April 27, 2020, August 3, 2020 and November 27, 2020, the Company granted 4,963,017, 1,000,000 and 200,000 share options to employees, directors and officers respectively pursuant to the Revised 2018 Plan. On July 1, 2021, the Company granted 680,000 share options respectively to its employees pursuant to the Revised 2018 Plan. On October 31, 2021, the Company granted 140,000 share options to other consultant pursuant to the 2019 Plan. On February 11, 2022, the Company granted 616,420 share options to its consultant pursuant to the 2019 Plan. On March 1, 2022, the Company granted 100,000 share options to its employee pursuant to the Revised 2018 Plan. These options were granted with exercise prices denominated in US$. The grantees can exercise vested options after the commencement date of exercise and before the end of its contractual term (i.e. 6 years after the commencement date of exercise). The commencement date of exercise is 6 months after the completion of the IPO. All share-based payments to employees are measured based on their grant-date fair values. Compensation expense is recognized by graded vesting method. A summary of the changes in the share options granted by the Company during the six months ended June 30, 2021 and 2022 is as follows: Number of share options Weighted average exercise price Aggregate intrinsic value Outstanding as of January 1, 2021 22,298,757 $ 0.54 $ 57,082,970 Forfeited (539,500 ) $ 0.61 $ (1,277,918 ) Exercised (1,735,060 ) $ 0.52 $ (5,409,518 ) Outstanding as of June 30, 2021 20,024,197 $ 0.54 $ 50,395,534 Exercisable as of June 30, 2021 13,369,429 $ 0.50 $ 36,556,152 Outstanding as of January 1, 2022 19,225,361 $ 0.54 $ 47,926,931 Granted 716,420 $ 0.81 $ (458,564 ) Forfeited (1,080,901 ) $ 0.70 $ (2,638,866 ) Outstanding as of June 30, 2022 18,860,880 $ 0.54 $ 44,829,501 Exercisable as of June 30, 2022 13,989,010 $ 0.54 $ 38,526,174 The Group calculated the estimated fair value of an options on the grant date using the binomial option pricing model with assistance from an independent valuation firm. Assumptions used to determine the fair value of share options granted during the year ended December 31, 2021 and June 30, 2022 is summarized in the following table: Years ended December 31, Six Months ended June 30, (In thousands) 2021 2022 Risk-free interest rate (i) 1.22%-1.52 % 0.91%-1.67 % Expected dividend yield (ii) 0.00 % 0.00 % Expected volatility (iii) 35.01%-36.00 % 29.44%-34.81 % Grant date fair value $0.06-$0.65 $0.000-$0.0043 (i) Risk-free interest rate is based on the yields of United States Treasury securities with maturities similar to the expected life of the share options in effect at the time of grant. (ii) Expected dividend yield is assumed to be 0% as the Company has no history or expectation of paying dividend on its ordinary shares. (iii) Expected volatility is assumed based on the historical volatility of the Company’s comparable companies in the period equal to the expected life of each grant. As of June 30, 2022, the unrecognized share-based compensation expenses related to share options and restricted share units granted by Company were US$2,301 thousands and US$782 thousands respectively. |
Loss per share
Loss per share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Loss per share | 11. Loss per share Basic and diluted net loss per share for each of the year presented were calculated as follows: Six Months ended (In thousands of US$ except share data and per share data) 2021 2022 Numerator: Net loss (23,568 ) (14,204 ) Net loss attributable to ordinary shareholders of the Company for computing basic and diluted net loss per share (23,568 ) (14,204 ) Denominator: Weighted average number of ordinary shares outstanding used in calculating basic and diluted net loss per share 283,008,578 291,887,614 Basic and diluted net loss per ordinary share (0.08 ) (0.05 ) Diluted earnings per share do not include the following instruments as their inclusion would have been anti-dilutive: Six Months ended 2021 2022 Restricted Shares 6,021,500 1,552,840 Share options awards 20,024,197 18,860,880 Total 26,045,697 20,413,720 |
Cash and cash equivalents and s
Cash and cash equivalents and short-term deposit | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure of Cash and Cash Equivalents and Short-Term Deposit [Abstract] | |
Cash and cash equivalents and short-term deposit | 12. Cash and cash equivalents and short-term deposit Cash and cash equivalents represent cash on hand, cash held at bank, and term deposits placed with banks or other financial institutions, which have original maturities of three months or less. Short-term deposit represents term deposit placed with bank with original maturity more than three months but less than one year. The Group had US$195 thousands of short-term deposit as of June 30, 2022, with an original maturity of 12 months denominated in HKD. Cash on hand and cash held at bank balance and short-term deposit as of December 31, 2021 and June 30, 2022 primarily consist of the following currencies: December 31, 2021 June 30, 2022 (In thousands) Original currency US$ equivalent Original currency US$ Equivalent US$ 3,195 3,195 4,553 4,553 RMB 13,433 2,107 18,571 2,767 HKD 5,791 743 6,955 886 Others 2,019 3,974 Total 8,064 12,180 |
Accounts receivable, net
Accounts receivable, net | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Accounts receivable, net | 13. Accounts receivable, net (In thousands) December 31, 2021 June 30, 2022 Accounts receivable 18,273 16,114 Less: Allowance for doubtful accounts (3,350 ) (3,195 ) Accounts receivable, net 14,923 12,919 The following table presents movement in the allowance for doubtful accounts: (In thousands) December 31, 2021 June 30, 2022 Balance at beginning of the period 3,289 3,350 Additions 67 — Reversal (22 ) (81 ) Exchange difference 16 (74 ) Balance at end of the period 3,350 3,195 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | 14. Inventories (In thousands) December 31, 2021 June 30, 2022 Raw materials 4,395 3,470 Finished goods 2,390 2,291 Less: write-down of obsolete inventories (652 ) (824 ) Total inventories 6,133 4,937 |
Prepayments and other assets
Prepayments and other assets | 6 Months Ended |
Jun. 30, 2022 | |
Prepayments and Other Assets Disclosure [Abstract] | |
Prepayments and other assets | 15. Prepayments and other assets (In thousands) December 31, 2021 June 30, 2022 Prepayments 3,859 2,901 Deposits 1,389 1,341 Export tax receivable 744 — VAT recoverable 729 892 Others 814 860 Total of prepayments and other assets 7,535 5,994 (In thousands) December 31, 2021 June 30, 2022 Current 6,225 5,078 Non-current 1,310 916 Total of prepayments and other assets 7,535 5,994 |
Long-Term Investments
Long-Term Investments | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Long-term investments | 16. Long-term investments In October 2018, the Company made an equity investment in a privately-held company, Maya System, Inc. (the “Maya”), which provides cloud SIM related services in Japan, including sale of products and maintenance. The Company acquired 49.00% equity interest of Maya with total consideration of JPY49,000 thousands. The Group classified Maya as an equity method investment as it has significant influence over Maya. The consideration was mainly attributed to trademark, customer relationship and goodwill. As of December 31, 2021 and June 30, 2022, the share of loss from Maya exceeded the total investment cost. As the Company is not required to fund losses, the balance was written down to zero. In April 2019 and September 2020, the Company made an equity investment in a privately-held company, Beijing Huaxianglianxin Technology Company (the “Huaxiang”), the Company held 10% equity interest of the Huaxiang with total consideration of RMB8,521 thousands. In March 2022, Huaxiang introduced new investors and the Company’s equity interest in Huaxiang was diluted to approximately 9.36%. The Company exercises significant influence in the Huaxiang and therefore accounts for this as a long-term investment using equity method. The Company recognized the share of profit of RMB547 thousands (equivalent to US$85 thousands) and RMB790 thousands (equivalent to US$120 thousands) for the six months ended June 30, 2021 and 2022. In January 2021, the Company acquired 31.25% of the equity interests of iQsim S.A., which is a provider of open virtual SIM (“VSIM”) platform and VSIM-enabled mobile devices based in France, with total consideration of EUR200 thousands. The Company exercises significant influence in the iQsim S.A and therefore accounts for this as a long-term investment using equity method. The Company recognized the share of loss of EUR27 thousands (equivalent to US$32 thousands) and EUR41 thousands (equivalent to US$43 thousands) for the six months ended June 30, 2021 and 2022. |
Property and equipment, net
Property and equipment, net | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, net | 17. Property and equipment, net Property and equipment consist of the following: (In thousands) December 31, 2021 June 30, 2022 Computers 672 639 Server & switch 1,382 1,323 Office equipment 1,685 1,808 Wi-Fi terminals for data connectivity services 9,632 8,765 Leasehold improvement 589 544 Total original costs 13,960 13,079 Less: accumulated depreciation (12,164 ) (11,624 ) Net book value 1,796 1,455 Depreciation expenses recognized for the six months ended June 30, 2021 and 2022 were US$1,074 thousands, US$448 thousands, respectively. |
Intangible Assets, Net
Intangible Assets, Net | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets, net | 18. Intangible assets, net (In thousands) Carrying amount Accumulated amortization Net carrying amount December 31, 2021 Purchased software 1,206 (322 ) 884 Trademarks 124 (76 ) 48 Licensed copyrights 181 (104 ) 77 Intangible assets 1,511 (502 ) 1,009 (In thousands) Carrying amount Accumulated amortization Net carrying amount June 30, 2022 Purchased software 1,144 (363 ) 781 Trademarks 118 (78 ) 40 Licensed copyrights 175 (109 ) 66 Intangible assets 1,437 (550 ) 887 Amortization expenses recognized for the six months ended June 30, 2021 and 2022 were US$70 thousands and US$74 thousands, respectively. |
Other investments
Other investments | 6 Months Ended |
Jun. 30, 2022 | |
Other Investments Disclosure [Abstract] | |
Other investments | 19. Other investments (In thousands) December 31, 2021 June 30, 2022 Current (i) 12,587 10,177 Non-current (ii) 12,058 7,738 Total 24,645 17,915 Note: (i) In June 2020, the Group made an investment in an investment fund for a cash consideration of US$15,000 thousands, for which the underlying assets were mainly comprised of debt securities and equity securities. It is redeemable at the option of the Group with one-month notice. There was a fair value loss of US$4,235 thousands and US$2,410 thousands for the six months ended June 30, 2021 and 2022 respectively. (ii) In June 2020, the Group made an investment in an investment fund for a cash consideration of US$17,100 thousands, for which the underlying assets were mainly comprised of unlisted bonds and subordinated debentures, for a period of 3 years. There was a fair value gain of US$684 thousands and a fair value loss of US$4,320 thousands for the six months ended June 30, 2021 and 2022 respectively. |
Accounts payable, accrued expen
Accounts payable, accrued expenses and other liabilities | 6 Months Ended |
Jun. 30, 2022 | |
Payables and Accruals [Abstract] | |
Accounts payable, accrued expenses and other liabilities | 20. Accounts payable, accrued expenses and other liabilities (In thousands) December 31, 2021 June 30, 2022 Accounts payable to suppliers 12,986 9,952 Accrued bonus and staff costs 20,742 20,356 Other deposits 1,793 1,301 Other taxes payable (note) 881 397 Accrued professional fees 3,007 2,012 Accrued marketing expenses 75 189 Others 1,082 1,027 Total 40,566 35,234 Note: Other taxes payable represents business tax, VAT and related surcharges and PRC individual income tax of employees withheld by the Group. |
Short-term borrowings
Short-term borrowings | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Short-term borrowings | 21. Short-term borrowings (In thousands) December 31, 2021 June 30, 2022 Current Bank borrowings (i) 3,177 5,224 Note: The Group’s short-term bank borrowings are primarily used for working capital and business development purposes and bear interest rate of 1.60% ~ 5.60% (2021: 1.60% ~ 5.22%) per annum, with a weighted average interest rate of 4.15% (2021: 3.67%) per annum. |
Related party transactions
Related party transactions | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related party transactions | 22. Related party transactions (a) Related parties As at June 30, 2022, the name and relationship with material related parties are as follows: Related Parties Relationship with the Company Maya Equity method investee of the Company Beijing Huaxianglianxin Technology Company Equity method investee of the Company iQsim S.A. Equity method investee of the Company (b) During the six months ended June 30, 2021 and 2022, other than disclosed elsewhere, the Company had the following material transactions with related parties: Six Months ended (In thousands) 2021 2022 Revenue from provision of data connectivity services, PaaS and SaaS services and sales of terminals and data related products: Maya 4,249 2,893 Beijing Huaxianglianxin Technology Company 405 248 Purchase of data connectivity service: Maya 24 2 Beijing Huaxianglianxin Technology Company 80 6 (c) The Company had the following balances with related parties as December 31, 2021 and June 30, 2022: (In thousands) December 31, 2021 June 30, 2022 Deposits received from related parties: Maya 1,417 1,318 Contract liability : Maya 18 26 iQsim S.A. — 11 Amounts payable to related parties: Beijing Huaxianglianxin Technology Company 18 21 Amounts receivable from related parties: Maya 1,108 186 Beijing Huaxianglianxin Technology Company 45 85 |
Commitments and contingencies
Commitments and contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | 23. Commitments and contingencies (a) Operating lease commitments The Group has leased office premises and buildings under non-cancellable operating lease agreements. These leases have different terms and renewal rights. Year (In thousands) Remainder of 2022 396 2023 202 2024 11 2025 — 2026 — Total 609 For the six months ended June 30, 2021 and 2022, the Group incurred rental expenses under operating leases US$804 thousands and US$408 thousands, respectively. (b) Purchase commitment for purchase of data As at June 30, 2022, the Group has future minimum purchase commitment related to the purchase of data of US$1,136 thousands, US$871 thousands and US$143 thousands within the remainder of 2022, 2023 and 2024, respectively. (c) Contingencies In August 2018, two affiliates of SIMO, namely Shenzhen Sibowei’ersi Technology Co., Ltd. and Shenzhen Skyroam Technology Co., Ltd., jointly filed a complaint against Shenzhen uCloudlink Network Technology Co., Ltd. in Guangzhou Intellectual Property Court in the PRC alleging patent infringements and claimed damages up to RMB10.5 million (equivalent to US$1.6 million). The Group has filed an invalidation petition against their alleged patent in Patent Reexamination Board of National Intellectual Property Administration in the PRC. On July 16, 2019, the Patent Reexamination Board of National Intellectual Property Administration issued a reexamination decision which invalidated the plaintiffs’ alleged patent in its entirety with respect to the patent infringement allegation. The first hearing of this lawsuit was held on May 13, 2019. The plaintiffs applied to withdraw the lawsuit, which has been approved on August 14, 2019. In October 2019, Shenzhen Sibowei’ersi Technology Co., Ltd. filed a complaint against the National Intellectual Property Administration in Beijing Intellectual Property Court in PRC petitioning the withdrawal of the foregoing reexamination decision of invalidity and reach of a new reexamination decision. In December 2020, the Beijing Intellectual Property Court entered its judgment which upheld National Intellectual Property Administration’s invalidation decision. Sibowei’ersi Technology Co., Ltd. has appealed against such judgment. On November 2, 2021, the Supreme People’s Court held an online hearing of the case, and the Group is awaiting for the ruling of the second instance as well as the court’s further notice. The Group believes the aforementioned allegations are without merit and will defend vigorously. The Group considers that the likelihood of an unfavorable outcome is not probable or is unable to estimate the amount or the range of the possible loss. Therefore, no accrual has been recorded by the Group as of June 30, 2022 in respect of these proceedings. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | 24. Subsequent Events (a) Impact of COVID-19 Following the COVID-19 outbreak since early 2020, a series of precautionary and control measures have been implemented by the Chinese government, including but not limited to extending the Chinese New Year holiday, quarantine measures and travel restrictions. These measures have resulted in drop in outbound travelers from China and mainly impacted the Group’s Roamingman business. Since then, the COVID-19 pandemic has led governments and other authorities around the world to impose measures intended to control its spread, including restrictions on freedom of movement, gatherings of large numbers of people, and business operations such as travel bans, border closings, business closures, quarantines, shelter-in-place orders and social distancing measures. These measures have caused a severe decline in the level of business and leisure travel around the globe. This has resulted in the reduction in demands for the Group’s international data connectivity services compared to the pre COVID-19 pandemic period. The net cash used in operating activities of the Group was US$1,976 thousands for the six months ended June 30,2022. The Group anticipates that a reduction in revenue will result in reduction in cash flow generated from operations. The Group will evaluate its financial and cash flow positions from time to time and intend to mitigate liquidity risk by implementing operational measures such as costs cutting and reducing investment in capital expenditures. The extent of the impact of the COVID-19 on the Group’s operational and financial performance in the longer term will depend on future developments, including the duration of the outbreak and related travel advisories and restrictions and the impact of the COVID-19 on overall demand for travel, all of which are highly uncertain and beyond the control of the Group. (b) Settlement of Convertible promissory notes The Company settled convertible promissory notes of $50,000 on July 6, 2022, $150,000 on July 25, 2022, $200,000 on July 29, 2022, $200,000 on August 8, 2022, $200,000 on August 18, 2022, $200,000 on August 26, 2022, and issued 1,974,870, 1,829,950, 2,424,380, 2,880,490, 3,531,490, 4,002,400, Class A ordinary shares of the Company on July 6, 2022, July 25, 2022, July 29, 2022, August 8, 2022, August 18, 2022 and August 26, 2022, respectively. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of presentation | 2.1 Basis of presentation The accompanying unaudited interim condensed consolidated financial statements of the Group have been prepared in accordance with the accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes normally included in the annual financial statements prepared in accordance with U.S. GAAP. Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted consistent with Article 10 of Regulation S-X. In the opinion of management, the Group’s unaudited interim condensed consolidated financial statements and accompanying notes include all adjustments (consisting of normal recurring adjustments) considered necessary for the fair statement of the Group’s financial position as of December 31, 2021 and June 30, 2022, and results of operations and cash flows for the six months ended June 30, 2021 and 2022. Interim results of operations are not necessarily indicative of the results for the full year or for any future period. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2021, and related notes included in the Group’s audited consolidated financial statements. The financial information as of December 31, 2021 presented in the unaudited interim condensed consolidated financial statements is derived from the audited consolidated financial statements as of December 31, 2021. |
Use of estimates | 2.2 Use of estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires the Group to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates, and such differences may be material to the consolidated financial statements. Significant accounting estimates reflected in the Company’s consolidated financial statements include legal contingencies, share-based compensation and realization of deferred tax assets. The Group bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. |
Consolidation | 2.3 Consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries. Subsidiaries are all entities (including structured entities) over which the Company has control. The Company controls an entity when the Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Company. They are de-consolidated from the date on that control ceases. In preparing the consolidated financial statements, transactions, balances and unrealized gains on transactions between group entities are eliminated. Unrealized losses are also eliminated unless the transactions provide evidence of an impairment indicator of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Company. |
Investment in equity method investees | 2.4 Investment in equity method investees The equity investment represents the Group’s investment in three entities. The Group accounts for its equity investment over which it has significant influence but does not own a majority equity interest or otherwise control using the equity method. The Group adjusts the carrying amount of the investment and recognizes investment income or loss for share of the earnings or loss of the investees after the date of investment. When the Group’s share of loss in the equity investees equal or exceed their interest in the equity investee, the Group does not recognize further losses, unless the Group has incurred obligations or made payments or guarantees on behalf of the equity investees. The Group assesses its equity investment for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, operating performance of the entities, including current earnings trends and undiscounted cash flows, and other entity-specific information. The fair value determination, particularly for investment in privately-held entities, requires judgment to determine appropriate estimates and assumptions. Changes in these estimates and assumptions could affect the calculation of the fair value of the investment and determination of whether any identified impairment is other-than-temporary. |
Fair value of financial instruments | 2.5 Fair value of financial instruments 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. The established fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs that may be used to measure fair value include: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Observable, market-based inputs, other than quoted prices, in active markets for identical assets or liabilities. Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Accounting guidance also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. The Group does not have any non-financial assets or liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. The Group’s financial instruments consist principally of cash and cash equivalents, short-term deposit, accounts receivable, accounts payable, contract liabilities and other liabilities. As of December 31, 2021 and June 30, 2022, the carrying values of cash and cash equivalents, short-term deposit, accounts receivable, accounts payable, contract liabilities and other liabilities approximated their fair values reported in the consolidated balance sheets due to the short-term nature of these instruments. |
Revenue recognition | 2.6 Revenue recognition Revenue is principally generated by the provision of data connectivity services and the sales of terminals and sales of data related products. Revenue represents the fair value of the consideration received or receivable for the sales of goods and the provision of services in the ordinary course of the Group’s activities and is recorded net of value-added tax (“VAT”). The Group recognizes revenue in accordance with ASC 606 “Revenue from Contracts with Customers” for all years presented with full retrospective method. The Group conducts its business through various contracts with customers, including: (i) Data connectivity services The Group generates international data connectivity services revenues from (i) data service fees from the use of portable Wi-Fi terminals (under its brand of “Roamingman”), (ii) data service fees generated from sales of data connectivity services to enterprise customers, and (iii) retail sales of data connectivity services. The Group also generates local data connectivity services revenues from (i) data service fees generated from sales of data connectivity services to enterprise customers, and (ii) retail sales of data connectivity services. For data connectivity services from the use of portable Wi-Fi terminals, the Group determines that the arrangement involves the leasing of portable Wi-Fi terminals with data connectivity services embedded. The Group determines that it is the lessor in the arrangement which contains an equipment lease component and a service non-lease component. The Group further determines that lease component is an operating lease under ASC 840, and that the operating lease component and service component are delivered over the same time and pattern. Therefore, the lease income and service income are recognized as data connectivity services revenue evenly over the service period. The Group evaluates and determines that it is the principal. For data connectivity services from the use of portable Wi-Fi terminals and retail sales of data connectivity services, the Group views users as its customers. For data connectivity services generated from sales of data connectivity services to enterprise customers, the Group views enterprise customers as its customers. The Group reports data connectivity services revenues on gross basis. Accordingly, the amounts paid for data connectivity services by customers are recorded as revenues and the related commission fees paid to its agents (mainly travel agents and other online distributors) are recorded as cost of revenues. Where the Group is the principal, it controls the data before the data connectivity service is provided to customers. Its control is evidenced by the inventory risk borne by the Group and the Group’s ability to direct the use of the data, and is further supported by the Group being primarily responsible to customers and having the discretion in establishing pricing. Data connectivity services offered to customers typically provide unlimited data usage during a fixed period of time (“contract period”), where revenue is recognized ratably on a straight-line basis over the contract period. The Group does not have further performance obligations to the customers after the contract period. The Group also offers data connectivity services where customers are charged service fee based on actual data usage, where revenue is recognized as the services are provided to customers. In providing data connectivity services to its customers, the Group procures SIM cards and data plans from various suppliers. Those SIM cards are activated and hosted on the Group’s cloud SIM platform. The Group’s cloud SIM platform manages terminal information and customer accounts and intelligently allocates the SIM cards and data plans and makes them available to customers who purchase the Group’s data connectivity services. Accordingly, the Group takes inventory risk and obtains control of the SIM cards and data plans procured and direct the use of the data on its cloud SIM platform depending on customers’ demand. The Group accounts for the SIM cards and data plans procured as costs of revenue as data is being made available and consumed on its cloud SIM platform. As the Group’s data connectivity services are provided without right of return and the Group does not provide any other credit and incentive to its customers, therefore, the Group’s provision of data connectivity services does not involve variable consideration. (ii) Sales of terminals and data related products The Group generates revenues from selling tangible products, including GlocalMe portable Wi-Fi terminals, GlocalMe World Phone series and smartphones with GlocalMe Inside (“GMI”) implemented, as well as SIM cards, to enterprise and retail customers and business partners. Sales of terminals and data related products are recognized when control of promised goods is transferred to the customers, which generally occurs upon the acceptance of the goods by the customers. For sales of Wi-Fi terminals, one gigabyte of free data connectivity service is normally included as a bundle package for the first time purchase of the terminals. There are two separate performance obligations in such bundle sales as the Wi-Fi terminal is a distinct good while the data connectivity service is a distinct service. The Group allocates the transaction price to each distinct performance obligation based on their relative standalone selling prices. The Group then recognizes revenue for each of the distinct performance obligations identified in accordance with the applicable revenue recognition method relevant for that obligation. For revenue related to the Wi-Fi terminals, revenue is recognized when the control of the Wi-Fi terminals is transferred. For revenue related to the data connectivity service, it is recognized ratably on a straight-line basis over the relevant contract period. (iii) Provision of PaaS or SaaS services Platform-as-a-Service (PaaS) or Software-as-a-Service (SaaS) mainly consist of fees generated from providing cloud SIM platform as a service to business partners. The Group provides its cloud SIM platform as a service to business partners enabling them to manage their data resources. Business partners using the platform are charged service fees for the use of the cloud SIM platform services. The Group has continuous obligation to ensure the performance of the platform over the service period. Revenue is recognized ratably over the contract period as business partners simultaneously consume and receive benefits from the service. The Group does not provide any other credit and incentive related to the cloud SIM platform services, therefore there is no variable consideration in the arrangement. (iv) Contract balance Contract liabilities represent the cash collected upfront from the customers for purchase of data connectivity services or purchase of Wi-Fi terminals, while the underlying data connectivity services have not yet been rendered or the Wi-Fi terminals have not been delivered to the customers by the Group, which is included in the presentation of contract liabilities. Due to the generally short-term duration of the relevant contracts, all performance obligations are satisfied within one year. Where transaction prices for data connectivity services and Wi-Fi terminals are received upfront from the customers, such receipts are recorded as contract liabilities and recognized as revenues over the contract period. The opening balance of contract liabilities from several customers as of January 1, 2021 was US$889 thousands. For the year ended December 31, 2021 and six months ended 2022, revenue amounting to US$889 thousands and US$1,575 thousands were included in the contract liabilities balance at the beginning of the respective period. |
Convertible promissory notes | 2.7 Convertible promissory notes Convertible promissory notes are recognized initially at fair value, net of upfront fees, debt discounts or premiums, debt issuance costs and other incidental fees. Upfront fees, debt discounts or premiums, debt issuance costs and other incidental fees are recorded as a reduction of the proceeds received and the related accretion is recorded as interest expense in the consolidated income statements over the estimated term of the facilities using the effective interest method. |
Organization and principal ac_2
Organization and principal activities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Principal Subsidiaries | Entity Place of incorporation Date of incorporation Relationship % of direct or indirect economic ownership Principal activities UCLOUDLINK (HK) LIMITED Hong Kong 2 September 2014 Subsidiary 100 % Holding company HONG KONG UCLOUDLINK Hong Kong 25 October 2010 Subsidiary 100 % Holding company, information technology services and sales of terminals and data related products Shenzhen Ucloudlink Technology PRC 9 July 2015 Subsidiary 100 % Technology research Shenzhen uCloudlink Co., Ltd. PRC 7 June 2018 Subsidiary 100 % Hardware exportation Beijing uCloudlink Technology PRC 29 January 2015 Subsidiary 100 % Holding company UCLOUDLINK (SINGAPORE) Singapore 15 May 2017 Subsidiary 100 % Sales and marketing UCLOUDLINK (UK) CO. LTD UK 13 October 2014 Subsidiary 100 % Sales and marketing Ucloudlink (America), Ltd. USA 1 August 2016 Subsidiary 100 % Sales and marketing UCLOUDLINK SDN.BHD Malaysia 24 August 2017 Subsidiary 100 % Sales and marketing uCloudlink Japan Co., Ltd. Japan 7 March 2018 Subsidiary 100 % Sales and marketing Shenzhen uCloudlink Network PRC 14 August 2014 Subsidiary 100 % Information technology services and sales of terminals and data related products Beijing uCloudlink New PRC 15 November 2014 Subsidiary 100 % Information technology services and sales of terminals and data related products PT UCLOUDLINK Indonesia 27 September 2018 Subsidiary 100 % Sales and marketing UCLOUDLINK UK LIMITED UK 24 February 2021 Subsidiary 100 % Sales and marketing Shenzhen Yulian Cloud Technology Co., PRC 22 February 2022 Subsidiary 100 % Sales and marketing |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of revenues | Six Months ended June 30, (In thousands) 2021 2022 Revenues from services —Data connectivity services 12,072 15,787 International data connectivity services 10,334 12,391 Local data connectivity services 1,738 3,396 —PaaS and SaaS services 5,437 4,927 —Others 201 370 17,710 21,084 Sales of products —Sales of terminals 14,451 10,589 —Sales of data related products 2,978 1,892 —Others 1,795 72 19,224 12,553 Total 36,934 33,637 |
Schedule of disaggregation of revenue | Six Months ended June 30, (In thousands) 2021 2022 Japan 20,314 13,132 North America 9,502 12,979 Mainland China 2,596 848 Southeast Asia 1,712 2,416 Hong Kong SAR 1,441 1,905 Europe 612 1,430 Taiwan 81 240 Others 676 687 Total 36,934 33,637 |
Other Expense, Net (Tables)
Other Expense, Net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Other Income and Expenses [Abstract] | |
Schedule of other expense, net | Six Months ended June 30, (In thousands) 2021 2022 Foreign exchange losses, net (419 ) (2,426 ) Government grants (note) 488 342 Gains on disposal of property and equipment, net 48 31 Fair value losses on other investments (3,551 ) (6,731 ) Others 56 8 Total (3,378 ) (8,776 ) |
Taxation (Tables)
Taxation (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of loss before income taxes | Six Months ended June 30, (In thousands) 2021 2022 Non-PRC (13,952 ) (7,897 ) PRC (9,673 ) (6,265 ) Total (23,625 ) (14,162 ) |
Schedule of reconciliations of the income tax expenses | Six Months ended June 30, (In thousands) 2021 2022 Loss before income tax (23,625 ) (14,162 ) Income tax computed at statutory PRC income tax rate (25%) (i) (5,906 ) (3,541 ) Differential income tax rates applicable to certain entities comprising the Group 2,169 712 Effect of tax holiday 950 646 Permanent differences (ii) 90 15 Change in valuation allowance 3,147 2,874 Accelerated deductions on research and development expenses (iii) (454 ) (587 ) Income tax (credit)/expenses (4 ) 119 (i) The PRC statutory income tax rate was used because the majority of the Group’s operations are based in the PRC. (ii) Permanent differences primarily represent non-deductible expenses. (iii) This amount represents tax incentives relating to the research and development expenses of certain major operating subsidiaries in the PRC. This tax incentive enables those subsidiaries to claim an additional tax deduction amounting to 75% of the qualified research and development expenses incurred. |
Schedule of per share effect of the tax holiday | Six Months ended June 30, (In thousands) 2021 2022 Effect of tax holiday 950 646 Per share effect – basic and diluted 0.00 0.00 |
Schedule of components of deferred tax assets | As of December 31, As of June 30, (In thousands) 2021 2022 Deferred tax assets Net operating loss carryforwards 14,808 17,497 Accrued expenses and others 427 612 Less: valuation allowance (15,235 ) (18,109 ) Net deferred tax assets — — |
Schedule of movement of valuation allowance | As of December 31, As of June 30, (In thousands) 2021 2022 Balance at beginning of the period 9,830 15,235 Change of valuation allowance 5,405 2,874 Balance at end of the period 15,235 18,109 |
Convertible promissory notes (T
Convertible promissory notes (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of convertible promissory notes | (In thousands) December 31, 2021 June 30, 2022 Convertible promissory notes – principal — 5,000 Convertible promissory notes – discount — (262 ) Convertible promissory notes – interest — (214 ) Convertible promissory notes, net — 4,524 |
Financial derivative instrume_2
Financial derivative instrument (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of financial derivative instrument | (In thousands) December 31, 2021 June 30, 2022 Carrying value as at beginning of period — — Derivates related to convertible promissory note (Note 8) — 672 Carrying value as at end of period — 672 |
Share-based awards (Tables)
Share-based awards (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of compensation expense recognized for share-based awards | Six Months ended Share-based compensation expenses (In thousands) 2021 2022 —Restricted Shares (a) 4,637 440 —Share options (b) 2,069 1,271 Total 6,706 1,711 (a) Restricted Shares (b) Share options |
Schedule of changes in the restricted shares granted | Number of Restricted Shares As of January 1, 2021 — Granted 6,021,500 As of June 30, 2021 6,021,500 Number of Restricted Shares As of January 1, 2022 2,916,100 Granted 336,020 Vested (1,699,280 ) As of June 30, 2022 1,552,840 |
Schedule of changes in the share options granted | Number of share options Weighted average exercise price Aggregate intrinsic value Outstanding as of January 1, 2021 22,298,757 $ 0.54 $ 57,082,970 Forfeited (539,500 ) $ 0.61 $ (1,277,918 ) Exercised (1,735,060 ) $ 0.52 $ (5,409,518 ) Outstanding as of June 30, 2021 20,024,197 $ 0.54 $ 50,395,534 Exercisable as of June 30, 2021 13,369,429 $ 0.50 $ 36,556,152 Outstanding as of January 1, 2022 19,225,361 $ 0.54 $ 47,926,931 Granted 716,420 $ 0.81 $ (458,564 ) Forfeited (1,080,901 ) $ 0.70 $ (2,638,866 ) Outstanding as of June 30, 2022 18,860,880 $ 0.54 $ 44,829,501 Exercisable as of June 30, 2022 13,989,010 $ 0.54 $ 38,526,174 |
Schedule of share based payment award stock options valuation assumptions | Years ended December 31, Six Months ended June 30, (In thousands) 2021 2022 Risk-free interest rate (i) 1.22%-1.52 % 0.91%-1.67 % Expected dividend yield (ii) 0.00 % 0.00 % Expected volatility (iii) 35.01%-36.00 % 29.44%-34.81 % Grant date fair value $0.06-$0.65 $0.000-$0.0043 |
Loss per share (Tables)
Loss per share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted net loss per share | Six Months ended (In thousands of US$ except share data and per share data) 2021 2022 Numerator: Net loss (23,568 ) (14,204 ) Net loss attributable to ordinary shareholders of the Company for computing basic and diluted net loss per share (23,568 ) (14,204 ) Denominator: Weighted average number of ordinary shares outstanding used in calculating basic and diluted net loss per share 283,008,578 291,887,614 Basic and diluted net loss per ordinary share (0.08 ) (0.05 ) |
Schedule of anti-dilutive instruments for diluted earnings per share | Six Months ended 2021 2022 Restricted Shares 6,021,500 1,552,840 Share options awards 20,024,197 18,860,880 Total 26,045,697 20,413,720 |
Cash and cash equivalents and_2
Cash and cash equivalents and short-term deposit (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Cash and Cash Equivalents and Short-Term Deposit [Abstract] | |
Schedule of cash and cash equivalents and short-term deposit | December 31, 2021 June 30, 2022 (In thousands) Original currency US$ equivalent Original currency US$ Equivalent US$ 3,195 3,195 4,553 4,553 RMB 13,433 2,107 18,571 2,767 HKD 5,791 743 6,955 886 Others 2,019 3,974 Total 8,064 12,180 |
Accounts receivable, net (Table
Accounts receivable, net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Schedule of accounts receivable net | (In thousands) December 31, 2021 June 30, 2022 Accounts receivable 18,273 16,114 Less: Allowance for doubtful accounts (3,350 ) (3,195 ) Accounts receivable, net 14,923 12,919 |
Schedule of movement in allowance for doubtful accounts | (In thousands) December 31, 2021 June 30, 2022 Balance at beginning of the period 3,289 3,350 Additions 67 — Reversal (22 ) (81 ) Exchange difference 16 (74 ) Balance at end of the period 3,350 3,195 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | (In thousands) December 31, 2021 June 30, 2022 Raw materials 4,395 3,470 Finished goods 2,390 2,291 Less: write-down of obsolete inventories (652 ) (824 ) Total inventories 6,133 4,937 |
Prepayments and other assets (T
Prepayments and other assets (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Prepayments and Other Assets [Abstract] | |
Schedule of prepayments and other assets | (In thousands) December 31, 2021 June 30, 2022 Prepayments 3,859 2,901 Deposits 1,389 1,341 Export tax receivable 744 — VAT recoverable 729 892 Others 814 860 Total of prepayments and other assets 7,535 5,994 |
Schedule of current and non current prepayments and other assets | (In thousands) December 31, 2021 June 30, 2022 Current 6,225 5,078 Non-current 1,310 916 Total of prepayments and other assets 7,535 5,994 |
Property and equipment, net (Ta
Property and equipment, net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Summary of property and equipment | (In thousands) December 31, 2021 June 30, 2022 Computers 672 639 Server & switch 1,382 1,323 Office equipment 1,685 1,808 Wi-Fi terminals for data connectivity services 9,632 8,765 Leasehold improvement 589 544 Total original costs 13,960 13,079 Less: accumulated depreciation (12,164 ) (11,624 ) Net book value 1,796 1,455 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible asset, net | (In thousands) Carrying amount Accumulated amortization Net carrying amount December 31, 2021 Purchased software 1,206 (322 ) 884 Trademarks 124 (76 ) 48 Licensed copyrights 181 (104 ) 77 Intangible assets 1,511 (502 ) 1,009 (In thousands) Carrying amount Accumulated amortization Net carrying amount June 30, 2022 Purchased software 1,144 (363 ) 781 Trademarks 118 (78 ) 40 Licensed copyrights 175 (109 ) 66 Intangible assets 1,437 (550 ) 887 |
Other investments (Tables)
Other investments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Other Investments [Abstract] | |
Schedule of other investments | (In thousands) December 31, 2021 June 30, 2022 Current (i) 12,587 10,177 Non-current (ii) 12,058 7,738 Total 24,645 17,915 (i) In June 2020, the Group made an investment in an investment fund for a cash consideration of US$15,000 thousands, for which the underlying assets were mainly comprised of debt securities and equity securities. It is redeemable at the option of the Group with one-month notice. There was a fair value loss of US$4,235 thousands and US$2,410 thousands for the six months ended June 30, 2021 and 2022 respectively. (ii) In June 2020, the Group made an investment in an investment fund for a cash consideration of US$17,100 thousands, for which the underlying assets were mainly comprised of unlisted bonds and subordinated debentures, for a period of 3 years. There was a fair value gain of US$684 thousands and a fair value loss of US$4,320 thousands for the six months ended June 30, 2021 and 2022 respectively. |
Accounts payable, accrued exp_2
Accounts payable, accrued expenses and other liabilities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of accounts payable, accrued expenses and other liabilities | (In thousands) December 31, 2021 June 30, 2022 Accounts payable to suppliers 12,986 9,952 Accrued bonus and staff costs 20,742 20,356 Other deposits 1,793 1,301 Other taxes payable (note) 881 397 Accrued professional fees 3,007 2,012 Accrued marketing expenses 75 189 Others 1,082 1,027 Total 40,566 35,234 |
Short-term borrowings (Tables)
Short-term borrowings (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of short-term borrowings | (In thousands) December 31, 2021 June 30, 2022 Current Bank borrowings (i) 3,177 5,224 |
Related party transactions (Tab
Related party transactions (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of related parties transactions | Related Parties Relationship with the Company Maya Equity method investee of the Company Beijing Huaxianglianxin Technology Company Equity method investee of the Company iQsim S.A. Equity method investee of the Company |
Schedule of related party transactions | Six Months ended (In thousands) 2021 2022 Revenue from provision of data connectivity services, PaaS and SaaS services and sales of terminals and data related products: Maya 4,249 2,893 Beijing Huaxianglianxin Technology Company 405 248 Purchase of data connectivity service: Maya 24 2 Beijing Huaxianglianxin Technology Company 80 6 |
Schedule of related parties balances | (In thousands) December 31, 2021 June 30, 2022 Deposits received from related parties: Maya 1,417 1,318 Contract liability : Maya 18 26 iQsim S.A. — 11 Amounts payable to related parties: Beijing Huaxianglianxin Technology Company 18 21 Amounts receivable from related parties: Maya 1,108 186 Beijing Huaxianglianxin Technology Company 45 85 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of non cancellable operating lease agreements | Year (In thousands) Remainder of 2022 396 2023 202 2024 11 2025 — 2026 — Total 609 |
Organization and principal ac_3
Organization and principal activities (Details) $ / shares in Units, $ in Millions | 6 Months Ended | |
Jun. 10, 2020 USD ($) $ / shares shares | Jun. 30, 2022 $ / shares shares | |
Organization and principal activities (Details) [Line Items] | ||
Sale of stock, price per share (in Dollars per share) | $ / shares | $ 0.00005 | |
American Depositary Receipts [Member] | IPO [Member] | ||
Organization and principal activities (Details) [Line Items] | ||
Sale of stock, shares issued | shares | 2,010,000 | |
Sale of stock, price per share (in Dollars per share) | $ / shares | $ 18 | |
Proceeds from initial public offering, net of issuance costs (in Dollars) | $ | $ 27.6 | |
Class A Ordinary Shares [Member] | ||
Organization and principal activities (Details) [Line Items] | ||
Ordinary shares voting rights | 1 | |
Class A Ordinary Shares [Member] | IPO [Member] | ||
Organization and principal activities (Details) [Line Items] | ||
Ordinary shares issued | shares | 20,100,000 | |
Sale of stock, price per share (in Dollars per share) | $ / shares | $ 18 | |
Class B Ordinary Shares [Member] | ||
Organization and principal activities (Details) [Line Items] | ||
Ordinary shares voting rights | 15 | |
Mr. Chaohui Chen and Mr. Zhiping Peng [Member] | ||
Organization and principal activities (Details) [Line Items] | ||
Redesignation of ordinary shares into class B ordinary shares | shares | 122,072,980 |
Organization and principal ac_4
Organization and principal activities (Details) - Schedule of Principal Subsidiaries | 6 Months Ended |
Jun. 30, 2022 | |
UCLOUDLINK (HK) LIMITED [Member] | |
Variable Interest Entity [Line Items] | |
Place of incorporation | Hong Kong |
Date of incorporation | Sep. 02, 2014 |
Relationship | Subsidiary |
% of direct or indirect economic ownership | 100% |
Principal activities | Holding company |
HONG KONG UCLOUDLINK NETWORK TECHNOLOGY LIMITED [Member] | |
Variable Interest Entity [Line Items] | |
Place of incorporation | Hong Kong |
Date of incorporation | Oct. 25, 2010 |
Relationship | Subsidiary |
% of direct or indirect economic ownership | 100% |
Principal activities | Holding company, information technology services and sales of terminals and data related products |
Shenzhen Ucloudlink Technology Limited [Member] | |
Variable Interest Entity [Line Items] | |
Place of incorporation | PRC |
Date of incorporation | Jul. 09, 2015 |
Relationship | Subsidiary |
% of direct or indirect economic ownership | 100% |
Principal activities | Technology research and development |
Shenzhen uCloudlink Co., Ltd. [Member] | |
Variable Interest Entity [Line Items] | |
Place of incorporation | PRC |
Date of incorporation | Jun. 07, 2018 |
Relationship | Subsidiary |
% of direct or indirect economic ownership | 100% |
Principal activities | Hardware exportation |
Beijing uCloudlink Technology Co., Ltd. (“Beijing uCloudlink”) [Member] | |
Variable Interest Entity [Line Items] | |
Place of incorporation | PRC |
Date of incorporation | Jan. 29, 2015 |
Relationship | Subsidiary |
% of direct or indirect economic ownership | 100% |
Principal activities | Holding company |
UCLOUDLINK (SINGAPORE) PTE.LTD [Member] | |
Variable Interest Entity [Line Items] | |
Place of incorporation | Singapore |
Date of incorporation | May 15, 2017 |
Relationship | Subsidiary |
% of direct or indirect economic ownership | 100% |
Principal activities | Sales and marketing |
UCLOUDLINK (UK) CO. LTD [Member] | |
Variable Interest Entity [Line Items] | |
Place of incorporation | UK |
Date of incorporation | Oct. 13, 2014 |
Relationship | Subsidiary |
% of direct or indirect economic ownership | 100% |
Principal activities | Sales and marketing |
Ucloudlink (America), Ltd. [Member] | |
Variable Interest Entity [Line Items] | |
Place of incorporation | USA |
Date of incorporation | Aug. 01, 2016 |
Relationship | Subsidiary |
% of direct or indirect economic ownership | 100% |
Principal activities | Sales and marketing |
UCLOUDLINK SDN.BHD [Member] | |
Variable Interest Entity [Line Items] | |
Place of incorporation | Malaysia |
Date of incorporation | Aug. 24, 2017 |
Relationship | Subsidiary |
% of direct or indirect economic ownership | 100% |
Principal activities | Sales and marketing |
uCloudlink Japan Co., Ltd. [Member] | |
Variable Interest Entity [Line Items] | |
Place of incorporation | Japan |
Date of incorporation | Mar. 07, 2018 |
Relationship | Subsidiary |
% of direct or indirect economic ownership | 100% |
Principal activities | Sales and marketing |
Shenzhen uCloudlink Network Technology Co., Ltd. (“Shenzhen uCloudlink”) [Member] | |
Variable Interest Entity [Line Items] | |
Place of incorporation | PRC |
Date of incorporation | Aug. 14, 2014 |
Relationship | Subsidiary |
% of direct or indirect economic ownership | 100% |
Principal activities | Information technology services and sales of terminals and data related products |
Beijing uCloudlink New Technology Co., Ltd. (“Beijing Technology”) [Member] | |
Variable Interest Entity [Line Items] | |
Place of incorporation | PRC |
Date of incorporation | Nov. 15, 2014 |
Relationship | Subsidiary |
% of direct or indirect economic ownership | 100% |
Principal activities | Information technology services and sales of terminals and data related products |
PT UCLOUDLINK TECHNOLOGIES PMA [Member] | |
Variable Interest Entity [Line Items] | |
Place of incorporation | Indonesia |
Date of incorporation | Sep. 27, 2018 |
Relationship | Subsidiary |
% of direct or indirect economic ownership | 100% |
Principal activities | Sales and marketing |
UCLOUDLINK UK LIMITED [Member] | |
Variable Interest Entity [Line Items] | |
Place of incorporation | UK |
Date of incorporation | Feb. 24, 2021 |
Relationship | Subsidiary |
% of direct or indirect economic ownership | 100% |
Principal activities | Sales and marketing |
Shenzhen Yulian Cloud Technology Co., Ltd. [Member] | |
Variable Interest Entity [Line Items] | |
Place of incorporation | PRC |
Date of incorporation | Feb. 22, 2022 |
Relationship | Subsidiary |
% of direct or indirect economic ownership | 100% |
Principal activities | Sales and marketing |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | |
Accounting Policies [Abstract] | |||
Contract liabilities | $ 889 | ||
Revenue included in contract liability | $ 1,575 | $ 889 |
Revenues (Details) - Schedule o
Revenues (Details) - Schedule of revenues - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Revenues from services | ||
Revenues | $ 33,637 | $ 36,934 |
Revenues from services [Member] | ||
Revenues from services | ||
Revenues | 21,084 | 17,710 |
Sales of products [Member] | ||
Revenues from services | ||
Revenues | 12,553 | 19,224 |
Data connectivity services [Member] | Revenues from services [Member] | ||
Revenues from services | ||
Revenues | 15,787 | 12,072 |
International data connectivity services [Member] | Revenues from services [Member] | ||
Revenues from services | ||
Revenues | 12,391 | 10,334 |
Local data connectivity services [Member] | Revenues from services [Member] | ||
Revenues from services | ||
Revenues | 3,396 | 1,738 |
PaaS and SaaS services [Member] | Revenues from services [Member] | ||
Revenues from services | ||
Revenues | 4,927 | 5,437 |
Others [Member] | Revenues from services [Member] | ||
Revenues from services | ||
Revenues | 370 | 201 |
Others [Member] | Sales of products [Member] | ||
Revenues from services | ||
Revenues | 72 | 1,795 |
Sales of terminals [Member] | Sales of products [Member] | ||
Revenues from services | ||
Revenues | 10,589 | 14,451 |
Sales of data related products [Member] | Sales of products [Member] | ||
Revenues from services | ||
Revenues | $ 1,892 | $ 2,978 |
Revenues (Details) - Schedule_2
Revenues (Details) - Schedule of disaggregation of revenue - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 33,637 | $ 36,934 |
Japan [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 13,132 | 20,314 |
North America [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 12,979 | 9,502 |
Mainland China [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 848 | 2,596 |
Southeast Asia [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2,416 | 1,712 |
Hong Kong SAR [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,905 | 1,441 |
Europe [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,430 | 612 |
Taiwan [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 240 | 81 |
Others [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 687 | $ 676 |
Other Expense, Net (Details) -
Other Expense, Net (Details) - Schedule of other expense, net - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule Of Other Expense Net Abstract | ||
Foreign exchange losses, net | $ (2,426) | $ (419) |
Government grants (note) | 342 | 488 |
Gains on disposal of property and equipment, net | 31 | 48 |
Fair value losses on other investments | (6,731) | (3,551) |
Others | 8 | 56 |
Total | $ (8,776) | $ (3,378) |
Taxation (Details)
Taxation (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jan. 01, 2008 | Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Taxation (Details) [Line Items] | ||||
Unified corporate income tax rate | 25% | |||
Preferential tax rate | 15% | |||
Preferential tax rate extension period | 3 years | |||
Additional tax deduction rate | 75% | |||
Net operating loss carryforwards (in Dollars) | $ 117,995 | $ 100,986 | ||
Minimum [Member] | ||||
Taxation (Details) [Line Items] | ||||
Statutory income tax rate | 15% | |||
Carry-over period | 5 years | |||
Net operating loss carryforwards expiration year | 2026 | |||
Maximum [Member] | ||||
Taxation (Details) [Line Items] | ||||
Statutory income tax rate | 25% | |||
Carry-over period | 10 years | |||
Net operating loss carryforwards expiration year | 2030 | |||
HONG KONG | ||||
Taxation (Details) [Line Items] | ||||
Statutory income tax rate | 16.50% | |||
Shenzhen Ucloudlink Technology Limited [Member] | ||||
Taxation (Details) [Line Items] | ||||
Preferential tax rate | 15% | 15% | ||
Preferential tax rate extension period | 3 years |
Taxation (Details) - Schedule o
Taxation (Details) - Schedule of loss before income taxes - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule Of Loss Before Income Taxes Abstract | ||
Non-PRC | $ (7,897) | $ (13,952) |
PRC | (6,265) | (9,673) |
Total | $ (14,162) | $ (23,625) |
Taxation (Details) - Schedule_2
Taxation (Details) - Schedule of reconciliations of the income tax expenses - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | ||
Schedule Of Reconciliations Of The Income Tax Expenses Abstract | |||
Loss before income tax | $ (14,162) | $ (23,625) | |
Income tax computed at statutory PRC income tax rate (25%) | [1] | (3,541) | (5,906) |
Differential income tax rates applicable to certain entities comprising the Group | 712 | 2,169 | |
Effect of tax holiday | 646 | 950 | |
Permanent differences | [2] | 15 | 90 |
Change in valuation allowance | 2,874 | 3,147 | |
Accelerated deductions on research and development expenses | [3] | (587) | (454) |
Income tax (credit)/expenses | $ 119 | $ (4) | |
[1]The PRC statutory income tax rate was used because the majority of the Group’s operations are based in the PRC.[2]Permanent differences primarily represent non-deductible expenses.[3]This amount represents tax incentives relating to the research and development expenses of certain major operating subsidiaries in the PRC. This tax incentive enables those subsidiaries to claim an additional tax deduction amounting to 75% of the qualified research and development expenses incurred. |
Taxation (Details) - Schedule_3
Taxation (Details) - Schedule of reconciliations of the income tax expenses (Parentheticals) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule Of Reconciliations Of The Income Tax Expenses Abstract | ||
Statutory income tax rate | 25% | 25% |
Taxation (Details) - Schedule_4
Taxation (Details) - Schedule of per share effect of the tax holiday - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule Of Per Share Effect Of The Tax Holiday Abstract | ||
Effect of tax holiday | $ 646 | $ 950 |
Per share effect – basic and diluted | $ 0 | $ 0 |
Taxation (Details) - Schedule_5
Taxation (Details) - Schedule of per share effect of the tax holiday (Parentheticals) - $ / shares | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule Of Per Share Effect Of The Tax Holiday Abstract | ||
Per share effect – diluted | $ 0 | $ 0 |
Taxation (Details) - Schedule_6
Taxation (Details) - Schedule of components of deferred tax assets - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Deferred tax assets | ||
Net operating loss carryforwards | $ 17,497 | $ 14,808 |
Accrued expenses and others | 612 | 427 |
Less: valuation allowance | (18,109) | (15,235) |
Net deferred tax assets |
Taxation (Details) - Schedule_7
Taxation (Details) - Schedule of movement of valuation allowance - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Schedule Of Movement Of Valuation Allowance Abstract | ||
Balance at beginning of the period | $ 15,235 | $ 9,830 |
Change of valuation allowance | 2,874 | 5,405 |
Balance at end of the period | $ 18,109 | $ 15,235 |
Ordinary shares (Details)
Ordinary shares (Details) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||
Jun. 10, 2020 $ / shares shares | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2016 $ / shares shares | May 19, 2019 USD ($) $ / shares shares | Aug. 28, 2018 shares | Mar. 22, 2018 shares | Jun. 19, 2017 USD ($) $ / shares shares | Sep. 22, 2016 USD ($) shares | Nov. 25, 2015 USD ($) shares | Jan. 18, 2015 USD ($) shares | Jun. 30, 2022 USD ($) $ / shares shares | Jun. 30, 2021 shares | Dec. 31, 2021 $ / shares shares | Dec. 31, 2020 shares | Dec. 31, 2018 shares | Dec. 31, 2017 CNY (¥) shares | Dec. 31, 2019 shares | |
Ordinary shares (Details) [Line Items] | ||||||||||||||||||
Ordinary shares, authorized amount (in Dollars) | $ | $ 50,000 | $ 50,000 | ||||||||||||||||
Common stock, shares authorized | 50,000,000 | |||||||||||||||||
Common Stock, par or stated value per Share (in Dollars per share) | $ / shares | $ 0.001 | |||||||||||||||||
Common stock, shares, outstanding | 228,749,678 | 232,451,900 | ||||||||||||||||
Ordinary shares, vested | 1,699,280 | |||||||||||||||||
Ordinary shares repurchased | 8,630,140 | |||||||||||||||||
Ordinary shares repurchased price per share (in Dollars per share) | $ / shares | $ 0.96 | |||||||||||||||||
Ordinary shares repurchased, amount (in Dollars) | $ | $ 8,297,880 | |||||||||||||||||
Reduction of additional paid in capital for cancellation of repurchased ordinary shares (in Dollars) | $ | $ 8,298,236 | |||||||||||||||||
Cumulative revenue (in Yuan Renminbi) | ¥ | ¥ 500 | |||||||||||||||||
Number of shares issued upon conversion | 35,004,220 | |||||||||||||||||
Number of shares issued upon conversion | 122,072,980 | |||||||||||||||||
Common stock, shares authorized | 1,000,000,000 | |||||||||||||||||
Ordinary shares issued and sold price per ADS (in Dollars per share) | $ / shares | $ 0.00005 | |||||||||||||||||
Shares were issued upon exercise of outstanding stock options | 1,735,060 | |||||||||||||||||
Shares were issued upon vesting of restricted share | 1,699,270 | |||||||||||||||||
2018 Stock Option Scheme [Member] | ||||||||||||||||||
Ordinary shares (Details) [Line Items] | ||||||||||||||||||
Conversion of shares, basis | 55,980,360 | |||||||||||||||||
Ordinary Shares [Member] | ||||||||||||||||||
Ordinary shares (Details) [Line Items] | ||||||||||||||||||
Ordinary shares, authorized amount (in Dollars) | $ | $ 100,000 | |||||||||||||||||
Common stock, shares authorized | 2,000,000,000 | |||||||||||||||||
Common Stock, par or stated value per Share (in Dollars per share) | $ / shares | $ 0.00005 | |||||||||||||||||
Preferred shares, per value (in Dollars per share) | $ / shares | 0.00005 | |||||||||||||||||
Treasury Stock [Member] | ||||||||||||||||||
Ordinary shares (Details) [Line Items] | ||||||||||||||||||
Ordinary shares issued | 31,665,280 | 4,315,080 | 20,000,000 | |||||||||||||||
IPO [Member] | ||||||||||||||||||
Ordinary shares (Details) [Line Items] | ||||||||||||||||||
Common Stock, par or stated value per Share (in Dollars per share) | $ / shares | $ 0.00005 | |||||||||||||||||
Series A Preferred Stock [Member] | ||||||||||||||||||
Ordinary shares (Details) [Line Items] | ||||||||||||||||||
Ordinary shares transferred | 4,000,000 | |||||||||||||||||
Ordinary shares transferred fair value per share (in Dollars per share) | $ / shares | $ 0.88 | |||||||||||||||||
Class A Ordinary Shares [Member] | ||||||||||||||||||
Ordinary shares (Details) [Line Items] | ||||||||||||||||||
Common stock, shares authorized | 1,700,000,000 | 1,700,000,000 | ||||||||||||||||
Common Stock, par or stated value per Share (in Dollars per share) | $ / shares | $ 0.00005 | $ 0.00005 | ||||||||||||||||
Common stock, shares, outstanding | 167,674,670 | 164,975,400 | ||||||||||||||||
Number of votes per ordinary share | 1 | |||||||||||||||||
Shares were issued upon exercise of outstanding stock options | 1,919,760 | 576,720 | ||||||||||||||||
Shares were issued upon vesting of restricted share | 3,000,000 | |||||||||||||||||
Ordinary Shares were issued for convertible debenture | 1,000,000 | |||||||||||||||||
Class A Ordinary Shares [Member] | IPO [Member] | ||||||||||||||||||
Ordinary shares (Details) [Line Items] | ||||||||||||||||||
Common stock, shares, outstanding | 159,478,920 | |||||||||||||||||
Ordinary shares issued | 20,100,000 | |||||||||||||||||
Ordinary shares converted into Class A ordinary share | 110,378,920 | |||||||||||||||||
Ordinary shares issued and sold price per ADS (in Dollars per share) | $ / shares | $ 18 | |||||||||||||||||
Preferred shares converted into ordinary shares | 29,000,000 | |||||||||||||||||
Class B Ordinary Shares [Member] | ||||||||||||||||||
Ordinary shares (Details) [Line Items] | ||||||||||||||||||
Common stock, shares authorized | 200,000,000 | 200,000,000 | ||||||||||||||||
Common Stock, par or stated value per Share (in Dollars per share) | $ / shares | $ 0.00005 | $ 0.00005 | ||||||||||||||||
Common stock, shares, outstanding | 122,072,980 | 122,072,980 | ||||||||||||||||
Number of votes per ordinary share | 15 | |||||||||||||||||
Class B Ordinary Shares [Member] | IPO [Member] | ||||||||||||||||||
Ordinary shares (Details) [Line Items] | ||||||||||||||||||
Common stock, shares, outstanding | 122,072,980 | |||||||||||||||||
ADS [Member] | IPO [Member] | ||||||||||||||||||
Ordinary shares (Details) [Line Items] | ||||||||||||||||||
Ordinary shares issued | 2,010,000 | |||||||||||||||||
Chaohui Chen [Member] | Class B Ordinary Shares [Member] | ||||||||||||||||||
Ordinary shares (Details) [Line Items] | ||||||||||||||||||
Common stock, shares, outstanding | 61,346,560 | |||||||||||||||||
Zhiping Peng [Member] | Class B Ordinary Shares [Member] | ||||||||||||||||||
Ordinary shares (Details) [Line Items] | ||||||||||||||||||
Common stock, shares, outstanding | 60,726,420 | |||||||||||||||||
Restricted Shares [Member] | ||||||||||||||||||
Ordinary shares (Details) [Line Items] | ||||||||||||||||||
Common Stock, par or stated value per Share (in Dollars per share) | $ / shares | $ 0.00005 | |||||||||||||||||
Common stock, shares, outstanding | 162,897,778 | 162,897,778 | ||||||||||||||||
Vesting period | 4 years | 5 years | ||||||||||||||||
Ordinary shares, vested | 44,426,667 | 44,426,667 | ||||||||||||||||
Board of Directors Chairman [Member] | ||||||||||||||||||
Ordinary shares (Details) [Line Items] | ||||||||||||||||||
Common Stock, par or stated value per Share (in Dollars per share) | $ / shares | $ 0.00005 | |||||||||||||||||
Shares subdivided, number of shares | 20 | |||||||||||||||||
Series A Share Purchase Agreement [Member] | ||||||||||||||||||
Ordinary shares (Details) [Line Items] | ||||||||||||||||||
Ordinary shares issued | 8,400,000 | |||||||||||||||||
Ordinary shares issued, total consideration (in Dollars) | $ | $ 4,056,206 | |||||||||||||||||
Series A Share Purchase Agreement [Member] | Series A Preferred Stock [Member] | ||||||||||||||||||
Ordinary shares (Details) [Line Items] | ||||||||||||||||||
Ordinary shares issued | 25,000,000 | |||||||||||||||||
Ordinary shares issued, total consideration (in Dollars) | $ | $ 9,788,652 | |||||||||||||||||
A-1 SPA [Member] | ||||||||||||||||||
Ordinary shares (Details) [Line Items] | ||||||||||||||||||
Ordinary shares issued | 26,575,220 | |||||||||||||||||
Ordinary shares issued, total consideration (in Dollars) | $ | $ 21,555,470 | |||||||||||||||||
Ordinary shares redemption price compounded annual interest rate | 10% | |||||||||||||||||
A-2 SPA [Member] | ||||||||||||||||||
Ordinary shares (Details) [Line Items] | ||||||||||||||||||
Ordinary shares issued | 8,502,600 | |||||||||||||||||
Ordinary shares issued, total consideration (in Dollars) | $ | $ 10,000,000 | |||||||||||||||||
Ordinary shares redemption price compounded annual interest rate | 12% |
Convertible promissory notes (D
Convertible promissory notes (Details) - USD ($) | 6 Months Ended | |
Jan. 06, 2022 | Jun. 30, 2022 | |
Debt Disclosure [Abstract] | ||
Principal amount | $ 5,000,000 | |
Percentage of principal amount of debt | 95% | |
Maturity date | 12 months | |
Interest rate | 5% | |
Ordinary share par value (in Dollars per share) | $ 0.00005 | |
Conversion price description | The conversion price shall be the lower of (i) US$3.50 per ADS, or (ii) 85% of a reference price benchmarked against the trading price of the Company’s ADSs. In addition, the Company will also issue to the Purchaser 1,000,000 Ordinary Shares as commitment fee at closing. | |
Recognized embedded beneficial conversion | $ 939,376 | |
Recognized Amortization | $ 456,641 |
Convertible promissory notes _2
Convertible promissory notes (Details) - Schedule of convertible promissory notes - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Convertible promissory notes (Details) - Schedule of convertible promissory notes [Line Items] | ||
Convertible promissory notes, net | $ 4,524 | |
Principal [Member] | ||
Convertible promissory notes (Details) - Schedule of convertible promissory notes [Line Items] | ||
Convertible promissory notes, net | 5,000 | |
Discount [Member] | ||
Convertible promissory notes (Details) - Schedule of convertible promissory notes [Line Items] | ||
Convertible promissory notes, net | (262) | |
Interest [Member] | ||
Convertible promissory notes (Details) - Schedule of convertible promissory notes [Line Items] | ||
Convertible promissory notes, net | $ (214) |
Financial derivative instrume_3
Financial derivative instrument (Details) | Jan. 06, 2022 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
volatility rate | 112.35% |
Weighted expected term | 1 year |
Discount rate | 9.54% |
Dividend yield | 0% |
Financial derivative instrume_4
Financial derivative instrument (Details) - Schedule of financial derivative instrument - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Schedule Of Financial Derivative Instrument Abstract | ||
Carrying value as at beginning of period | ||
Derivates related to convertible promissory note (Note 8) | 672 | |
Carrying value as at end of period | $ 672 |
Share-based awards (Details)
Share-based awards (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | |||||||||||||
Mar. 01, 2022 | Feb. 11, 2022 | Jan. 27, 2022 | Jan. 01, 2022 | Oct. 31, 2021 | Jul. 01, 2021 | Feb. 26, 2021 | Jan. 27, 2021 | Nov. 27, 2020 | Aug. 03, 2020 | Apr. 27, 2020 | Aug. 12, 2019 | Dec. 31, 2018 | Jul. 31, 2019 | Jun. 30, 2022 | |
Share-based awards (Details) [Line Items] | |||||||||||||||
Granted shares | 716,420 | ||||||||||||||
Expected dividend yield rate | 0% | ||||||||||||||
Unrecognized share-based compensation expenses (in Dollars) | $ 2,301 | ||||||||||||||
Restricted share units granted (in Dollars) | $ 782 | ||||||||||||||
2019 Plan [Member] | |||||||||||||||
Share-based awards (Details) [Line Items] | |||||||||||||||
Granted shares | 616,420 | 140,000 | |||||||||||||
2018 Stock Option Scheme [Member] | |||||||||||||||
Share-based awards (Details) [Line Items] | |||||||||||||||
Granted shares | 200,000 | 1,000,000 | 4,963,017 | 5,414,300 | 12,187,420 | ||||||||||
Maximum aggregate number of ordinary shares can be issued | 55,980,360 | ||||||||||||||
Revised 2018 [Member] | |||||||||||||||
Share-based awards (Details) [Line Items] | |||||||||||||||
Granted shares | 100,000 | 680,000 | |||||||||||||
Maximum aggregate number of ordinary shares can be issued | 40,147,720 | ||||||||||||||
Restricted Stock [Member] | 2019 Plan [Member] | |||||||||||||||
Share-based awards (Details) [Line Items] | |||||||||||||||
Granted shares | 172,500 | 163,520 | 3,304,000 | 2,717,500 | |||||||||||
Total number of shares issued and outstanding rate | 1% |
Share-based awards (Details) -
Share-based awards (Details) - Schedule of compensation expense recognized for share-based awards - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total compensation expense recognized | $ 1,711 | $ 6,706 |
Restricted Shares [Member] | ||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total compensation expense recognized | 440 | 4,637 |
Share Options [Member] | ||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total compensation expense recognized | $ 1,271 | $ 2,069 |
Share-based awards (Details) _2
Share-based awards (Details) - Schedule of changes in the restricted shares granted - shares | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule Of Changes In The Restricted Shares Granted Abstract | ||
Number of restricted shares, beginning balance | 2,916,100 | |
Number of restricted shares, granted | 336,020 | 6,021,500 |
Number of restricted shares, vested | (1,699,280) | |
Number of restricted shares, ending balance | 1,552,840 | 6,021,500 |
Share-based awards (Details) _3
Share-based awards (Details) - Schedule of changes in the share options granted - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Schedule Of Changes In The Share Options Granted Abstract | |||
Number of share options outstanding, beginning balance | 19,225,361 | 22,298,757 | 22,298,757 |
Weighted average exercise price, outstanding, beginning balance | $ 0.54 | $ 0.54 | $ 0.54 |
Aggregate intrinsic value, beginning balance | $ 47,926,931 | $ 57,082,970 | $ 57,082,970 |
Number of share options outstanding, outstanding, ending balance | 18,860,880 | 20,024,197 | 19,225,361 |
Weighted average exercise price, outstanding, ending balance | $ 0.54 | $ 0.54 | $ 0.54 |
Aggregate intrinsic value, outstanding, ending balance | $ 44,829,501 | $ 50,395,534 | $ 47,926,931 |
Number of share options outstanding, exercisable as of June 30, 2021 | 13,989,010 | 13,369,429 | |
Weighted average exercise price, exercisable as of June 30, 2021 | $ 0.54 | $ 0.5 | |
Aggregate intrinsic value, exercisable as of June 30, 2021 | $ 38,526,174 | $ 36,556,152 | |
Number of share options outstanding, granted | 716,420 | ||
Weighted average exercise price, granted | $ 0.81 | ||
Aggregate intrinsic value, granted | $ (458,564) | ||
Number of share options outstanding, forfeited | (1,080,901) | (539,500) | |
Weighted average exercise price, forfeited | $ 0.7 | $ 0.61 | |
Aggregate intrinsic value, forfeited | $ (2,638,866) | $ (1,277,918) | |
Number of share options outstanding, exercised | (1,735,060) | ||
Weighted average exercise price, exercised | $ 0.52 | ||
Aggregate intrinsic value, exercised | $ (5,409,518) |
Share-based awards (Details) _4
Share-based awards (Details) - Schedule of share based payment award stock options valuation assumptions - $ / shares | 6 Months Ended | ||
Jun. 30, 2022 | Dec. 31, 2021 | ||
Share-based awards (Details) - Schedule of share based payment award stock options valuation assumptions [Line Items] | |||
Risk-free interest rate | [1] | ||
Expected dividend yield | [2] | 0% | 0% |
Expected volatility | [3] | ||
Minimum [Member] | |||
Share-based awards (Details) - Schedule of share based payment award stock options valuation assumptions [Line Items] | |||
Risk-free interest rate | [1] | 0.91% | 1.22% |
Expected dividend yield | [2] | ||
Expected volatility | [3] | 29.44% | 35.01% |
Grant date fair value (in Dollars per share) | $ 0 | $ 0.06 | |
Maximum [Member] | |||
Share-based awards (Details) - Schedule of share based payment award stock options valuation assumptions [Line Items] | |||
Risk-free interest rate | [1] | 1.67% | 1.52% |
Expected dividend yield | [2] | ||
Expected volatility | [3] | 34.81% | 36% |
Grant date fair value (in Dollars per share) | $ 0.0043 | $ 0.65 | |
[1]Risk-free interest rate is based on the yields of United States Treasury securities with maturities similar to the expected life of the share options in effect at the time of grant.[2]Expected dividend yield is assumed to be 0% as the Company has no history or expectation of paying dividend on its ordinary shares.[3]Expected volatility is assumed based on the historical volatility of the Company’s comparable companies in the period equal to the expected life of each grant. |
Loss per share (Details) - Sche
Loss per share (Details) - Schedule of basic and diluted net loss per share - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Numerator: | ||
Net loss | $ (14,204) | $ (23,568) |
Net loss attributable to ordinary shareholders of the Company for computing basic and diluted net loss per share | $ (14,204) | $ (23,568) |
Denominator: | ||
Weighted average number of ordinary shares outstanding used in calculating basic and diluted net loss per share (in Shares) | 291,887,614 | 283,008,578 |
Basic and diluted net loss per ordinary share (in Dollars per share) | $ (0.05) | $ (0.08) |
Loss per share (Details) - Sc_2
Loss per share (Details) - Schedule of anti-dilutive instruments for diluted earnings per share - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule Of Anti Dilutive Instruments For Diluted Earnings Per Share Abstract | ||
Restricted Shares | $ 1,552,840 | $ 6,021,500 |
Share options awards | 18,860,880 | 20,024,197 |
Total | $ 20,413,720 | $ 26,045,697 |
Cash and cash equivalents and_3
Cash and cash equivalents and short-term deposit (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Disclosure of Cash and Cash Equivalents and Short-Term Deposit [Abstract] | |
Short-term deposit | $ 195 |
Cash and cash equivalents and_4
Cash and cash equivalents and short-term deposit (Details) - Schedule of cash and cash equivalents and short-term deposit - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
US$ equivalent [Member] | ||
Cash and cash equivalents and short-term deposit (Details) - Schedule of cash and cash equivalents and short-term deposit [Line Items] | ||
Cash on hand and cash held at bank balance and short-term deposit | $ 12,180 | $ 8,064 |
US$ [Member] | Original currency [Member] | ||
Cash and cash equivalents and short-term deposit (Details) - Schedule of cash and cash equivalents and short-term deposit [Line Items] | ||
Cash on hand and cash held at bank balance and short-term deposit | 4,553 | 3,195 |
US$ [Member] | US$ equivalent [Member] | ||
Cash and cash equivalents and short-term deposit (Details) - Schedule of cash and cash equivalents and short-term deposit [Line Items] | ||
Cash on hand and cash held at bank balance and short-term deposit | 4,553 | 3,195 |
RMB [Member] | Original currency [Member] | ||
Cash and cash equivalents and short-term deposit (Details) - Schedule of cash and cash equivalents and short-term deposit [Line Items] | ||
Cash on hand and cash held at bank balance and short-term deposit | 18,571 | 13,433 |
RMB [Member] | US$ equivalent [Member] | ||
Cash and cash equivalents and short-term deposit (Details) - Schedule of cash and cash equivalents and short-term deposit [Line Items] | ||
Cash on hand and cash held at bank balance and short-term deposit | 2,767 | 2,107 |
HKD [Member] | Original currency [Member] | ||
Cash and cash equivalents and short-term deposit (Details) - Schedule of cash and cash equivalents and short-term deposit [Line Items] | ||
Cash on hand and cash held at bank balance and short-term deposit | 6,955 | 5,791 |
HKD [Member] | US$ equivalent [Member] | ||
Cash and cash equivalents and short-term deposit (Details) - Schedule of cash and cash equivalents and short-term deposit [Line Items] | ||
Cash on hand and cash held at bank balance and short-term deposit | 886 | 743 |
Others [Member] | US$ equivalent [Member] | ||
Cash and cash equivalents and short-term deposit (Details) - Schedule of cash and cash equivalents and short-term deposit [Line Items] | ||
Cash on hand and cash held at bank balance and short-term deposit | $ 3,974 | $ 2,019 |
Accounts receivable, net (Detai
Accounts receivable, net (Details) - Schedule of accounts receivable net - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule Of Accounts Receivable Net Abstract | ||
Accounts receivable | $ 16,114 | $ 18,273 |
Less: Allowance for doubtful accounts | (3,195) | (3,350) |
Accounts receivable, net | $ 12,919 | $ 14,923 |
Accounts receivable, net (Det_2
Accounts receivable, net (Details) - Schedule of movement in allowance for doubtful accounts - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Schedule Of Movement In Allowance For Doubtful Accounts Abstract | ||
Balance at beginning of the period | $ 3,350 | $ 3,289 |
Additions | 67 | |
Reversal | (81) | (22) |
Exchange difference | (74) | 16 |
Balance at end of the period | $ 3,195 | $ 3,350 |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of inventories - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule Of Inventories Abstract | ||
Raw materials | $ 3,470 | $ 4,395 |
Finished goods | 2,291 | 2,390 |
Less: write-down of obsolete inventories | (824) | (652) |
Total inventories | $ 4,937 | $ 6,133 |
Prepayments and other assets (D
Prepayments and other assets (Details) - Schedule of prepayments and other assets - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule Of Prepayments And Other Assets Abstract | ||
Prepayments | $ 2,901 | $ 3,859 |
Deposits | 1,341 | 1,389 |
Export tax receivable | 744 | |
VAT recoverable | 892 | 729 |
Others | 860 | 814 |
Total of prepayments and other assets | $ 5,994 | $ 7,535 |
Prepayments and other assets _2
Prepayments and other assets (Details) - Schedule of current and non current prepayments and other assets - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule Of Current And Non Current Prepayments And Other Assets Abstract | ||
Current | $ 5,078 | $ 6,225 |
Non-current | 916 | 1,310 |
Total of prepayments and other assets | $ 5,994 | $ 7,535 |
Long-Term Investments (Details)
Long-Term Investments (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 6 Months Ended | |||||
Sep. 30, 2020 CNY (¥) | Jun. 30, 2022 USD ($) | Jun. 30, 2022 CNY (¥) | Jun. 30, 2021 USD ($) | Jun. 30, 2021 CNY (¥) | Jan. 31, 2021 | Oct. 31, 2018 | |
Maya System Inc [Member] | |||||||
Long-Term Investments (Details) [Line Items] | |||||||
Equity method investment, ownership percentage | 49% | ||||||
Beijing Huaxianglianxin Technology Company [Member] | |||||||
Long-Term Investments (Details) [Line Items] | |||||||
Equity method investment, ownership percentage | 10% | 9.36% | 9.36% | ||||
Consideration to acquire equity interest | ¥ | ¥ 8,521 | ||||||
Share of profit in equity method investment, net of tax | $ 120 | ¥ 790 | $ 85 | ¥ 547 | |||
iQsim S.A. [Member] | |||||||
Long-Term Investments (Details) [Line Items] | |||||||
Equity method investment, ownership percentage | 31.25% | ||||||
Share of profit in equity method investment, net of tax | $ | $ 43 | $ 32 |
Property and equipment, net (De
Property and equipment, net (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expenses | $ 448 | $ 1,074 |
Property and equipment, net (_2
Property and equipment, net (Details) - Summary of property and equipment - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total original costs | $ 13,079 | $ 13,960 |
Less: accumulated depreciation | (11,624) | (12,164) |
Net book value | 1,455 | 1,796 |
Computers [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total original costs | 639 | 672 |
Server & switch [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total original costs | 1,323 | 1,382 |
Office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total original costs | 1,808 | 1,685 |
Wi-Fi terminals for data connectivity services [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total original costs | 8,765 | 9,632 |
Leasehold improvement [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total original costs | $ 544 | $ 589 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 74 | $ 70 |
Intangible Assets, Net (Detai_2
Intangible Assets, Net (Details) - Schedule of intangible asset, net - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Intangible Assets, Net (Details) - Schedule of intangible asset, net [Line Items] | ||
Carrying amount | $ 1,437 | $ 1,511 |
Accumulated amortization | (550) | (502) |
Net carrying amount | 887 | 1,009 |
Purchased Software [Member] | ||
Intangible Assets, Net (Details) - Schedule of intangible asset, net [Line Items] | ||
Carrying amount | 1,144 | 1,206 |
Accumulated amortization | (363) | (322) |
Net carrying amount | 781 | 884 |
Trademarks [Member] | ||
Intangible Assets, Net (Details) - Schedule of intangible asset, net [Line Items] | ||
Carrying amount | 118 | 124 |
Accumulated amortization | (78) | (76) |
Net carrying amount | 40 | 48 |
Licensed Copyrights [Member] | ||
Intangible Assets, Net (Details) - Schedule of intangible asset, net [Line Items] | ||
Carrying amount | 175 | 181 |
Accumulated amortization | (109) | (104) |
Net carrying amount | $ 66 | $ 77 |
Other investments (Details)
Other investments (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2022 | Jun. 30, 2021 | |
Investment Fund One [Member] | |||
Other investments (Details) [Line Items] | |||
Investment cash consideration | $ 15,000 | ||
Investment fund redemption notice period | 1 month | ||
Fair value loss from investment | $ 2,410 | $ 4,235 | |
Investment Fund Two [Member] | |||
Other investments (Details) [Line Items] | |||
Investment cash consideration | $ 17,100 | ||
Fair value loss from investment | $ 4,320 | ||
Investment fund redemption period | 3 years | ||
Fair value gain from investment | $ 684 |
Other investments (Details) - S
Other investments (Details) - Schedule of other investments - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | |
Schedule Of Other Investments Abstract | |||
Current | [1] | $ 10,177 | $ 12,587 |
Non-current | [2] | 7,738 | 12,058 |
Total | $ 17,915 | $ 24,645 | |
[1]In June 2020, the Group made an investment in an investment fund for a cash consideration of US$15,000 thousands, for which the underlying assets were mainly comprised of debt securities and equity securities. It is redeemable at the option of the Group with one-month notice. There was a fair value loss of US$4,235 thousands and US$2,410 thousands for the six months ended June 30, 2021 and 2022 respectively.[2]In June 2020, the Group made an investment in an investment fund for a cash consideration of US$17,100 thousands, for which the underlying assets were mainly comprised of unlisted bonds and subordinated debentures, for a period of 3 years. There was a fair value gain of US$684 thousands and a fair value loss of US$4,320 thousands for the six months ended June 30, 2021 and 2022 respectively. |
Accounts payable, accrued exp_3
Accounts payable, accrued expenses and other liabilities (Details) - Schedule of accounts payable, accrued expenses and other liabilities - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule Of Accounts Payable Accrued Expenses And Other Liabilities Abstract | ||
Accounts payable to suppliers | $ 9,952 | $ 12,986 |
Accrued bonus and staff costs | 20,356 | 20,742 |
Other deposits | 1,301 | 1,793 |
Other taxes payable (note) | 397 | 881 |
Accrued professional fees | 2,012 | 3,007 |
Accrued marketing expenses | 189 | 75 |
Others | 1,027 | 1,082 |
Total | $ 35,234 | $ 40,566 |
Short-term borrowings (Details)
Short-term borrowings (Details) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Short-term borrowings (Details) [Line Items] | ||
Weighted average interest rate | 4.15% | 3.67% |
Maximum [Member] | ||
Short-term borrowings (Details) [Line Items] | ||
Bear interest rate | 1.60% | 1.60% |
Minimum [Member] | ||
Short-term borrowings (Details) [Line Items] | ||
Bear interest rate | 5.60% | 5.22% |
Short-term borrowings (Detail_2
Short-term borrowings (Details) - Schedule of short-term borrowings - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule Of Short Term Borrowings Abstract | ||
Bank borrowings | $ 5,224 | $ 3,177 |
Related party transactions (Det
Related party transactions (Details) - Schedule of related parties transactions | 6 Months Ended |
Jun. 30, 2022 | |
Maya [Member] | |
Related party transactions (Details) - Schedule of related parties transactions [Line Items] | |
Relationship with the Company | Equity method investee of the Company |
Beijing Huaxianglianxin Technology Company [Member] | |
Related party transactions (Details) - Schedule of related parties transactions [Line Items] | |
Relationship with the Company | Equity method investee of the Company |
iQsim S.A. [Member] | |
Related party transactions (Details) - Schedule of related parties transactions [Line Items] | |
Relationship with the Company | Equity method investee of the Company |
Related party transactions (D_2
Related party transactions (Details) - Schedule of related party transactions - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Maya [Member] | ||
Related Party Transaction [Line Items] | ||
Revenue from provision of data connectivity services, PaaS and SaaS services and sales of terminals and data related products: | $ 2,893 | $ 4,249 |
Purchase of data connectivity service | 2 | 24 |
Beijing Huaxianglianxin Technology Company [Member] | ||
Related Party Transaction [Line Items] | ||
Revenue from provision of data connectivity services, PaaS and SaaS services and sales of terminals and data related products: | 248 | 405 |
Purchase of data connectivity service | $ 6 | $ 80 |
Related party transactions (D_3
Related party transactions (Details) - Schedule of related parties balances - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Maya [Member] | ||
Related party transactions (Details) - Schedule of related parties balances [Line Items] | ||
Deposits received from related parties | $ 1,318 | $ 1,417 |
Contract liability | 26 | 18 |
Amounts receivable from related parties | 186 | 1,108 |
iQsim S.A. [Member] | ||
Related party transactions (Details) - Schedule of related parties balances [Line Items] | ||
Contract liability | 11 | |
Beijing Huaxianglianxin Technology Company [Member] | ||
Related party transactions (Details) - Schedule of related parties balances [Line Items] | ||
Amounts payable to related parties | 21 | 18 |
Amounts receivable from related parties | $ 85 | $ 45 |
Commitments and contingencies_2
Commitments and contingencies (Details) $ in Thousands, ¥ in Millions | 6 Months Ended | ||
Jun. 30, 2022 USD ($) | Jun. 30, 2022 CNY (¥) | Jun. 30, 2021 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating leases rental expense | $ 408 | $ 804 | |
Future minimum purchase commitment ,2022 | 1,136 | ||
Future minimum purchase commitment ,2023 | 871 | ||
Future minimum purchase commitment ,2024 | 143 | ||
Claimed damage | $ 1,600 | ¥ 10.5 |
Commitments and contingencies_3
Commitments and contingencies (Details) - Schedule of non cancellable operating lease agreements $ in Thousands | Jun. 30, 2022 USD ($) |
Schedule Of Non Cancellable Operating Lease Agreements Abstract | |
Remainder of 2022 | $ 396 |
2023 | 202 |
2024 | 11 |
2025 | |
2026 | |
Total | $ 609 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Subsequent Events [Abstract] | |
Net cash used in operating activities | $ 1,976 |
Settlement of convertible promissory notes | The Company settled convertible promissory notes of $50,000 on July 6, 2022, $150,000 on July 25, 2022, $200,000 on July 29, 2022, $200,000 on August 8, 2022, $200,000 on August 18, 2022, $200,000 on August 26, 2022, and issued 1,974,870, 1,829,950, 2,424,380, 2,880,490, 3,531,490, 4,002,400, Class A ordinary shares of the Company on July 6, 2022, July 25, 2022, July 29, 2022, August 8, 2022, August 18, 2022 and August 26, 2022, respectively. |