| Accounting Policies, by Policy (Policies) | 12 Months Ended |
| Dec. 31, 2022 |
| Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
| Basis of presentation | Basis of presentation The accompanying consolidated financial
statements are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).
Significant accounting policies followed by the Group in the preparation of the accompanying consolidated financial statements are summarized
below. |
| Use of estimates | 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 | Consolidation The consolidated financial statements
include the financial statements of the Company and its subsidiaries, which include the wholly-foreign owned enterprises (“WFOE”)
and variable interest entities (“VIEs”) over which the Company is the primary beneficiary. All transactions and balances among
the Company and its subsidiaries have been eliminated upon consolidation. The results of subsidiaries acquired or disposed of are recorded
in the consolidated statements of comprehensive loss from the effective date of acquisition or up to the effective date of disposal, as
appropriate. A subsidiary is an entity in which
(i) the Company directly or indirectly controls more than 50% of the voting power; or (ii) the Company has the power to appoint
or remove the majority of the members of the board of directors or to cast a majority of votes at the meeting of the board of directors
or to govern the financial and operating policies of the investee pursuant to a statute or under an agreement among the shareholders or
equity holders. A VIE is required to be consolidated by the primary beneficiary of the entity if the equity holders in the entity do not
have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities
without additional subordinated financial support from other parties. Due to legal restrictions on foreign
ownership of data connectivity services license required by the business model the Company had been using during the year, the equity
interests of certain PRC domestic companies are held by PRC citizens or by PRC entities owned and/or controlled by PRC citizens. Specifically,
the PRC domestic companies that are material to the Group’s businesses are Beijing Technology and Shenzhen uCloudlink. The following table sets forth the
assets, liabilities, results of operations and changes in cash and cash equivalents of the former VIEs taken as a whole, which were included
in the Company’s consolidated financial statements with intercompany balances and transactions eliminated between the former VIEs:
As of December 31,
2021 2022
(in thousands of US$)
Cash and cash equivalents 293 1,951
Accounts receivable, net 1,333 474
Amounts due from subsidiaries 8,067 12,766
Property and equipment and intangible assets 1,195 775
Others 9,602 5,536
Total assets 20,490 21,502
Short term borrowings 941 574
Amounts due to parent and subsidiaries 55,623 60,029
Accounts payable, accrued expenses and other liabilities 16,458 12,690
Contract liabilities 89 62
Others 18 80
Total liabilities 73,129 73,435
Total shareholders’ deficit (52,639 ) (51,933 )
Years ended December 31,
2020 2021 2022
(in thousands of US$)
Revenue (note a) 55,014 30,979 30,371
Net loss (note a) (3,528 ) (16,244 ) (4,349 )
Net cash (used in)/generated from operating activities (4,933 ) (6,553 ) 858
Net cash used in investing activities (1,196 ) (178 ) (430 )
Net cash generated from financing activities 2,988 5,290 1,230 Note:
(a) Revenue and net loss incurred by the former VIEs are primarily from the provision of data
connectivity services, as well as sales of Wi-Fi terminals and sales of data related products.
(b) As described in Note 10 to the consolidated financial statements, the Company sponsors share-based
compensation plans in which employees, directors and officers of the Company, its subsidiaries and its former VIEs are eligible to participate. The
Company has reflected the full cost of the share-based compensation expenses in its operating expenses. Most of the participating
employees of the plans are based in the subsidiaries and former VIEs. If these expenses had been pushed down to the subsidiaries and
former VIEs during the periods presented, the Company’s non-cash operating expenses would be lower and the former VIEs’ non-cash operating
expenses would be higher by the following amounts: FY20: USD14.8 million, FY21: USD0.4 million and FY22: USD0.5 million, while
subsidiaries’ non-cash operating expenses would be higher by the following amounts: FY20: USD35.8 million, FY2021: USD4.7 million
and FY22: USD2.5 million. The former VIEs did not have any material related party transactions except for the related party transactions which are disclosed in Note 23 or elsewhere in these consolidated financial statements, and those transactions with other subsidiaries that are not VIEs, which were eliminated upon consolidation. Under the contractual arrangements
with the former VIEs, the Company has the power to direct activities of the former VIEs and can have assets transferred out of the former
VIEs under its control. Therefore, the Company considers that there is no asset in any of the former VIEs that can be used only to settle
obligations of the former VIEs, except for registered capital. As all former VIEs are incorporated as limited liability companies under
the Company Law of the PRC, creditors of the VIEs do not have recourse to the general credit of the Company for any of the liabilities
of the former VIEs. Unrecognized revenue-producing assets
held by the former VIEs include certain internet value added services provision and other licenses. The internet value added services
provision and other licenses are required under relevant PRC laws, rules and regulations for the operation of internet businesses in the
PRC, and therefore are integral to the Group’s operations. The internet content provision licenses require that core PRC trademark
registrations and domain names are held by the VIEs that provide the relevant services. 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. |
| Segment reporting | Segment reporting Operating segments are reported in
a manner consistent with the internal reporting provided to the chief operating decision maker (the “CODM”), which is comprised
of the executive directors of the Company. The Group has only one operating and reportable segment. The Group’s long-lived assets
are substantially all located in the PRC. |
| Foreign currency translation | Foreign currency translation The functional currency of the Company
is US$. The Company’s subsidiaries with operations in the PRC, Hong Kong and other jurisdictions generally use their respective
local currencies as their functional currencies. The reporting currency of the Company is US$. The financial statements of the Company’s
subsidiaries, other than the subsidiaries with the functional currency of US$, are translated into US$ using the exchange rate as of the
balance sheet date for assets and liabilities and the average daily exchange rate for each month for income and expense items. Translation
gains and losses are recorded in accumulated other comprehensive income or loss as a component of shareholders’ equity. In the financial statements of the
Company’s subsidiaries, transactions in currencies other than the functional currency are measured and recorded in the functional
currency using the exchange rate in effect at the date of the transaction. At the balance sheet date, monetary assets and liabilities
that are denominated in currencies other than the functional currency are translated into the functional currency using the exchange rate
at the balance sheet date. All gains and losses arising from foreign currency transactions are recorded in the consolidated statements
of comprehensive loss during the period in which they occur. |
| Mezzanine equity | Mezzanine equity Mezzanine equity represents the Series
A In accordance with ASC 480-10, the
mezzanine equity was initially measured based on its fair value at date of issue. Since the Series A Preferred Shares will be redeemable
at the holder’s option after 5 years from issuance if the Series A Preferred Shares are not converted, either voluntarily or automatically
upon a qualified initial public offering (“Qualified IPO”), the Group accretes changes in the redemption value over the period
from the date of issuance to the earliest redemption date of the instrument using the effective interest method. Increase in carrying amount shall be
recorded as charges against retained earnings or, in the absence of retained earnings, by charges against additional paid-in capital. In June 2020, all 29,000,000 issued
and outstanding Series A Preferred Shares were converted into Class A ordinary shares upon the completion of the IPO. |
| Revenue recognition | 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, 2020 was US$1,925 thousand. For the year ended December 31, 2020, 2021 and 2022, revenue amounting to US$1,925 thousand, US$889 thousand
and US$1,575 thousand were included in the contract liabilities balance at the beginning of the respective period. |
| Cost of revenue | Cost of revenue Cost of revenue consists primarily
of data connectivity service costs, cost of inventory, logistics costs, depreciation and maintenance costs for equipment, payment processing
fees and other related incidental expenses that are directly attributable to the Group’s principal operations. |
| Research and development expenses | 2.9 Research and development expenses Research and development expenses primarily
consist of salaries and benefits for research and development personnel, share-based compensation, materials, general expenses and depreciation
expenses associated with research and development activities. |
| Sales and marketing expenses | Sales and marketing expenses Sales and marketing expenses consist
primarily of online and offline advertising expenses, promotion expenses, share-based compensation, staff costs, sales commissions and
other related incidental expenses that are incurred to conduct the Group’s sales and marketing activities. Advertising and promotional expenses
were US$2,695 thousand, US$2,846 thousand and US$2,217 thousand during the years ended December 31, 2020, 2021 and 2022, respectively. |
| General and administrative expenses | 2.11 General and administrative expenses General and administrative expenses
consist primarily of salaries, bonuses, share-based compensation and those not specifically dedicated to research and development or sales
and marketing activities, depreciation of property and equipment, amortization of intangible assets, legal and professional services fees,
rental and other general corporate related expenses. |
| Share-based compensation | Share-based compensation Share-based compensation expenses arise
from share-based awards, mainly including Restricted Shares held by certain senior management (namely, Mr. Chaohui Chen, Mr. Zhiping Peng
and Mr. Wen Gao), and share options and Restricted Shares awarded to employees, directors and other consultants in accordance with ASC
718 Stock Compensation. The Group follows ASC 718 to determine whether share option or Restricted Shares should be classified and accounted
for as a liability award or equity award. All grants of share-based awards to employees, certain senior management and directors classified
as equity awards are recognized in the financial statements based on their grant date fair values which are calculated using an option
pricing model. The Group classifies the share-based awards granted to employees, certain senior management, directors and other consultants
as equity award, and has elected to recognize compensation expense on share-based awards with service condition on a graded vesting basis
over the requisite service period, which is generally the vesting period. The Group entered into a share restriction
agreement with certain senior management and their respective wholly owned companies, which directly hold the equity interest in the Group.
Pursuant to the share restriction agreement, all ordinary shares (“Restricted Shares”) of the Group held by certain senior
management shall be subject to vesting conditions until the Restricted Shares become vested. The Restricted Shares were classified as
equity awards under ASC 718 and are accounted for as share-based compensation based on the grant date fair value over the vesting period
using graded vesting method. For share options awarded to employees,
directors and other consultants, the Group applies the Binominal option pricing model in determining the fair value of options granted
under ASC 718. The Group has elected to account for forfeitures when they occur. On each measurement date, the Group
reviews internal and external sources of information to assist in the estimation of various attributes to determine the fair value of
the share-based awards granted by the Group, including the fair value of the underlying shares, expected life and expected volatility.
The Group is required to consider many factors and makes certain assumptions during this assessment. If any of the assumptions used to
determine the fair value of the share-based awards change significantly in the future, share-based compensation expense may differ materially. |
| Other employee benefits | Other employee benefits The Company’s subsidiaries in
the PRC participate in a government-mandated multi-employer defined contribution plan pursuant to which certain retirement, medical and
other welfare benefits are provided to employees. The relevant labor regulations require the Company’s subsidiaries in the PRC to
pay the local labor and social welfare authorities monthly contributions based on the applicable benchmarks and rates stipulated by the
local government. The relevant local labor and social welfare authorities are responsible for meeting all retirement benefits obligations
and the Company’s subsidiaries in the PRC have no further commitments beyond their monthly contributions. The contributions to the
plan are expensed as incurred. During the years ended December 31, 2020, 2021 and 2022, contributions to such plan amounting to US$2,077 thousand,
US$3,074 thousand and US$1,909 thousand respectively, were charged to the consolidated statements of comprehensive loss. The Group also makes payments to other
defined contribution plans for the benefit of employees employed by subsidiaries outside of the PRC. |
| Income taxes | Income taxes The Group accounts for income taxes
using the liability method, under which deferred income taxes are recognized for future tax consequences attributable to differences between
the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities
are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected
to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized as income or expense in the period that
includes the enactment date. Valuation allowance is provided on deferred tax assets to the extent that it is more likely than not that
the asset will not be realizable in the foreseeable future. Deferred taxes are also recognized
on the undistributed earnings of subsidiaries, which are presumed to be transferred to the parent company and are subject to withholding
taxes, unless there is sufficient evidence to show that the subsidiary has invested or will invest the undistributed earnings indefinitely
or that the earnings will be remitted in a tax-free manner. The Group adopts ASC 740 “Income
Taxes” which prescribes a more likely than not threshold for financial statement recognition and measurement of a tax position taken
or expected to be taken in a tax return. It also provides guidance on derecognition of income tax assets and liabilities, classification
of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting
for income taxes in interim periods and income tax disclosures. The Group did not have significant
unrecognized uncertain tax positions or any unrecognized liabilities, interest or penalties associated with unrecognized tax benefit as
of and for the years ended December 31, 2020, 2021 and 2022. |
| Government grants | 2.15 Government grants For government grants that are non-operating
in nature and with no further conditions to be met, the amounts are recognized as income in other income/(expense), net. For government
grants that contain certain operating conditions, the amounts are recorded as deferred government grant, and are recognized as income
in other income/(expense), net when the conditions are met. |
| Comprehensive loss | Comprehensive loss Comprehensive loss is defined to include
all changes in equity of the Group during a period arising from transactions and other event and circumstances except those resulting
from investments by shareholders and distributions to shareholders. For the years presented, the Group’s comprehensive loss includes
net loss and other comprehensive loss, which mainly consists of the foreign currency translation adjustment that have been excluded from
the determination of net loss. |
| Leases | 2.17 Leases The Group determines if an arrangement
is a lease at inception. Leases that transfer substantially all of the benefits and risks incidental to the ownership of assets are accounted
for as finance leases as if there was an acquisition of an asset and incurrence of an obligation at the inception of the lease. All other
leases are accounted for as operating leases. The Group has no significant finance leases. The Group recognizes lease liabilities
and corresponding right-of-use assets on the balance sheet for leases. Operating lease right-of-use assets are included in non-current
prepayments, receivables and other assets and operating lease liabilities are included in current accrued expenses, accounts payable and
other liabilities and other non-current liabilities on the consolidated balance sheets. Operating lease right-of-use assets and operating
lease liabilities are initially recognized based on the present value of future lease payments at lease commencement. The operating lease
right-of-use asset also includes any lease payments made prior to lease commencement and the initial direct costs incurred by the lessee
and is recorded net of any lease incentives received. As the interest rates implicit in most of the leases are not readily determinable,
the Company uses the incremental borrowing rates based on the information available at lease commencement to determine the present value
of the future lease payments. Operating lease expenses are recognized on a straight-line basis over the term of the lease. Lease and non-lease components for
leases of asset classes are accounted for separately. The Company elected to recognize short-term leases with an initial lease term of
twelve months or less. |
| Loss per share | Loss per share Basic loss per share is computed by
dividing net loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period
using the two-class method. Under the two-class method, net loss is allocated between different classes of ordinary shares based on their
participating rights. Diluted loss per share is calculated by dividing net loss attributable to ordinary shareholders by the weighted
average number of ordinary and dilutive ordinary equivalent shares outstanding during the year. Ordinary equivalent shares consist of
ordinary shares issuable in connection with the Group’s convertible redeemable preferred shares, redeemable ordinary shares and
convertible bonds using the if-converted method and shares issuable upon the exercise of share options using the treasury stock method.
Ordinary equivalent shares are not included in the denominator of the diluted loss per share calculation when inclusion of such shares
would be anti-dilutive. |
| Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents represent
cash on hand, term deposits and highly-liquid investments placed with banks or other financial institutions, which are unrestricted as
to withdrawal and use, and which have original maturities of three months or less. Cash, and cash equivalents as reported
in the consolidated statement of cash flows are presented on the consolidated balance sheet as follows:
December 31, December 31,
(In thousands) 2021 2022
Cash and cash equivalents 7,868 14,921 |
| Inventories | 2.20 Inventories Inventories mainly consist of products
for sales. They are accounted for using the weighted average cost and stated at the lower of cost and net realizable value. Net realizable
value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs
necessary to make the sale. Write downs of US$948 thousand, US$12 thousand and US$138 thousand were recorded in cost of revenues in
the consolidated statements of comprehensive loss for the years ended December 31, 2020, 2021 and 2022 respectively. |
| Accounts receivable, net | Accounts receivable, net Accounts receivable are presented net
of allowance for doubtful accounts. The Group evaluates the creditworthiness of each customer at the time when services are rendered or
products are sold and continuously monitor the recoverability of the accounts receivable. In January 2022, the Group adopted
ASU 2016-13, “Financial Instruments — Credit Losses (Topic 326): Measurement on Credit Losses on Financial Instruments”,
including certain subsequent amendments, transitional guidance and other interpretive guidance within ASU 2018-19, ASU 2019-04, ASU 2019-05,
ASU 2019-11, ASU 2020-02 and ASU 2020-03 (collectively, including ASU 2016-13, “ASC 326”). ASC 326 introduces an approach
based on expected losses to estimate the allowance for doubtful accounts, which replaces the previous incurred loss impairment model.
The Group’s estimation of allowance for doubtful accounts considers factors such as historical credit loss experience, age of receivable
balances, current market conditions, reasonable and supportable forecasts of future economic conditions, as well as an assessment of receivables
due from specific identifiable counterparties to determine whether these receivables are considered at risk or uncollectible. The Group
assesses collectability by pooling receivables that have similar risk characteristics and evaluates receivables individually when specific
receivables no longer share those risk characteristics. For receivables evaluated individually, when it is determined that foreclosure
is probable or when the debtor is experiencing financial difficulty at the reporting date and repayment is expected to be provided substantially
through the operation or sale of collateral, expected credit losses are based on the fair value of the collateral at the reporting date.
The adoption of ASC 326 did not have a material impact on the Company’s financial position, results of operations and cash flows.
The consolidated financial statements for the year ended December 31, 2021 were not retrospectively adjusted. The allowance for doubtful
accounts were US$3,350 thousand and US$4,519 thousand as of December 31, 2021 and 2022, respectively. |
| Investment in equity method investees | 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 investee after the date of investment. When the Group’s
share of loss in the equity investee equals or exceeds its 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 investee. The Group assesses its equity
investments 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. |
| Property and equipment | Property and equipment Property and equipment are stated at
historical cost less accumulated depreciation and impairment loss, if any. Depreciation is calculated using the straight-line method over
their estimated useful lives. Residual rate is determined based on the economic value of the property and equipment at the end of the
estimated useful lives as a percentage of the original cost. Depreciation is calculated using the
straight-line method to allocate their cost to their residual values over their estimated useful lives, as follows:
Computers, server & switch and office equipment 5 years
Wi-Fi terminals for data connectivity services 2 years
Leasehold improvement Over the shorter of lease term or 3 years Expenditures for maintenance and repairs
are expensed as incurred. The gain or loss on the disposal of property and equipment is the difference between the net sales proceeds
and the carrying amount of the relevant assets and is recognized in the consolidated statements of comprehensive loss. |
| Intangible assets | Intangible assets Intangible assets mainly consist of
trademark, software and licensed copyrights. Identifiable intangible assets are carried at acquisition cost less accumulated amortization
and impairment loss, if any. Finite-lived intangible assets are tested for impairment if impairment indicators arise. All intangible assets
of the Group are finite-lived intangible assets. Amortization of finite-lived intangible
assets is computed using the straight-line method over their estimated useful lives, which are as follows:
Trademark 10 years
Software 10 years
Licensed copyrights 10 years |
| Equity securities without readily determinable fair values | 2.25 Equity securities without readily determinable fair values The Group measures the long-term investment
over which the Group does not have significant influence or that do not have readily determinable fair value at cost less impairment prior
to January 1, 2018. Effective from January 1, 2018 with the adoption of ASU 2016-01, the Group has elected to use the measurement alternative
to account for the equity investment, and therefore carries this investment at cost adjusted for changes from observable transactions
for identical or similar investments of the same investee, less impairment. |
| Impairment of long-lived assets | Impairment of long-lived assets For long-lived assets the Group evaluates
for impairment whenever events or changes indicate that the carrying amount of an asset may no longer be recoverable. The Group assesses
the recoverability of the long-lived assets by comparing the carrying value of the long-lived assets to the estimated undiscounted future
cash flows expected to receive from use of the assets and their eventual disposition. Such assets are considered to be impaired if the
sum of the expected undiscounted cash flows is less than the carrying amount of the assets. The impairment to be recognized is measured
by the amount by which the carrying amount of the assets exceeds the fair value of the assets. The Group tests impairment of long-lived
assets at the reporting unit level when impairment indicator appeared and recognizes impairment in the event at the carrying value exceeds
the fair value of each reporting unit. No impairment charge of long-lived
assets was recorded for the years ended December 31, 2020, 2021 and 2022. |
| Software development costs | 2.27 Software development costs The Group incurred costs to research
and develop relevant software that is used in its cloud SIM architecture. Costs incurred during the research phase are expensed as incurred.
Costs incurred for the development of software prior to the establishment of technological feasibility, which is when a working model
is available, are expensed when incurred. |
| Fair value of financial instruments | 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 other investments, cash and cash equivalents, short-term deposit, accounts receivable, accounts payable, contract
liabilities and other liabilities. As of December 31, 2020, 2021 and 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. |
| Other investment | Other investments The Group’s other investments
consist of investment funds of which underlying assets are debt securities and equity securities. These investment funds are measured
and recorded at fair value on a recurring basis with changes in fair value, whether realized or unrealized, recorded through the consolidated
statements of comprehensive loss. |
| Convertible promissory notes | 2.30 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. |
| Newly adopted accounting standard updates | Newly adopted accounting standard updates In January 2022, the Group adopted
ASU 2016-13, “Financial Instruments — Credit Losses (Topic 326): Measurement on Credit Losses on Financial Instruments”,
including certain subsequent amendments, transitional guidance and other interpretive guidance within ASU 2018-19, ASU 2019-04, ASU 2019-05,
ASU 2019-11, ASU 2020-02 and ASU 2020-03 (collectively, including ASU 2016-13, “ASC 326”). The
Group adopted this guidance prospectively and the adoption of this guidance did not have a material impact on the financial position,
results of operations and cash flows. In January,2022, the Group adopted
FASB ASC Topic 842, “Leases,” (“ASC Topic 842”) which requires that a lessee recognize in the consolidated balance
sheet a lease liability and a corresponding right-of-use asset, including for those leases that the Company currently classifies as operating
leases. The right-of-use asset and the lease liability was initially measured using the present value of the remaining lease payments.
ASC Topic 842 was implemented using a modified retrospective approach which resulted in no cumulative-effect adjustment in the opening
balance of retained earnings as of January 1, 2022. As a result, the consolidated balance sheet prior to January 1, 2022 was not restated
and continues to be reported under FASB ASC Topic 840, “Leases,” (“ASC Topic 840”), which did not require the
recognition of a right-of-use asset or lease liability for operating leases. As permitted under ASC Topic 842, the Company adopted the
following practical expedients: (1) not to reassess whether an expired or non-lease contract that commenced before January 1, 2022 contained
an embedded lease, (2) not to reassess the classification of existing leases, (3) not to determine whether initial direct costs related
to existing leases should be capitalized under ASC Topic 842, and (4) not to separate lease and non-lease components |
