Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2023 shares | |
Document Information Line Items | |
Entity Registrant Name | UCLOUDLINK GROUP INC. |
Document Type | 20-F |
Current Fiscal Year End Date | --12-31 |
Amendment Flag | false |
Entity Central Index Key | 0001775898 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Non-accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Document Period End Date | Dec. 31, 2023 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | true |
Entity Shell Company | false |
Entity Ex Transition Period | false |
ICFR Auditor Attestation Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-39302 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | Unit 2214-Rm1, 22/F, Mira Place Tower A |
Entity Address, Address Line Two | 132 Nathan Road, Tsim Sha Tsui |
Entity Address, City or Town | Kowloon |
Entity Address, Country | HK |
Contact Personnel Name | Yimeng Shi |
Security Exchange Name | NASDAQ |
No Trading Symbol Flag | true |
Title of 12(g) Security | None |
Entity Interactive Data Current | Yes |
Document Financial Statement Error Correction [Flag] | false |
Document Accounting Standard | U.S. GAAP |
Auditor Name | Audit Alliance LLP |
Auditor Location | Singapore |
Auditor Firm ID | 3487 |
Entity Address, Postal Zip Code | 122001 |
Business Contact | |
Document Information Line Items | |
Entity Address, Address Line One | Unit 2214-Rm1, 22/F, Mira Place Tower A |
Entity Address, Address Line Two | 132 Nathan Road, Tsim Sha Tsui |
Entity Address, City or Town | Kowloon |
Entity Address, Country | HK |
Contact Personnel Name | Yimeng Shi |
City Area Code | 852 |
Local Phone Number | 2180-6111 |
Contact Personnel Email Address | ir@ucloudlink.com |
Entity Address, Postal Zip Code | 122001 |
American depositary shares | |
Document Information Line Items | |
Trading Symbol | UCL |
Title of 12(b) Security | American depositary shares (one American depositary share representing ten Class A ordinary shares, par value US$0.00005 per share) |
Security Exchange Name | NASDAQ |
Class A ordinary shares, par value US$0.00005 per share | |
Document Information Line Items | |
Title of 12(b) Security | Class A ordinary shares, par value US$0.00005 per share* |
Security Exchange Name | NASDAQ |
No Trading Symbol Flag | true |
Class A Ordinary Shares | |
Document Information Line Items | |
Entity Common Stock, Shares Outstanding | 252,412,720 |
Class B Ordinary Shares | |
Document Information Line Items | |
Entity Common Stock, Shares Outstanding | 122,072,980 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income/(Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues | $ 85,576 | $ 71,461 | $ 73,824 |
Cost of revenues | (43,611) | (38,927) | (51,990) |
Gross profit | 41,965 | 32,534 | 21,834 |
Research and development expenses | (6,456) | (8,430) | (13,697) |
Sales and marketing expenses | (14,304) | (10,305) | (13,620) |
General and administrative expenses | (17,118) | (18,726) | (28,551) |
Other expenses, net | (1,500) | (14,265) | (11,876) |
(Loss)/income from operations | 2,587 | (19,192) | (45,910) |
Interest income | 70 | 18 | 14 |
Interest expenses | (133) | (441) | (188) |
Amortization of beneficial conversion feature | (149) | ||
(Loss)/income before income tax | 2,524 | (19,764) | (46,084) |
Income tax expenses | (70) | (161) | (244) |
Share of profit in equity method investments, net of tax | 357 | 72 | 287 |
Net (loss)/income | 2,811 | (19,853) | (46,041) |
Net (loss)/income attributable to ordinary shareholders of the Company | 2,811 | (19,853) | (46,041) |
Net (loss)/income | 2,811 | (19,853) | (46,041) |
Foreign currency translation adjustment | 587 | 2,322 | (17) |
Total comprehensive (loss)/income | $ 3,398 | $ (17,531) | $ (46,058) |
Net (loss)/earnings per share attributable to ordinary shareholders of the Company | |||
Basic net (loss)/earnings per share (in Dollars per share) | $ 0.01 | $ (0.06) | $ (0.16) |
Weighted average number of ordinary shares used in computing net (loss)/earnings per share | |||
Basic weighted average number of ordinary shares (in Shares) | 371,726,318 | 312,485,140 | 285,979,036 |
Revenues from services | |||
Revenues | $ 58,570 | $ 46,228 | $ 37,798 |
Sales of products | |||
Revenues | 27,006 | 25,233 | 36,026 |
Cost of services | |||
Cost of revenues | (24,318) | (20,346) | (21,556) |
Cost of products sold | |||
Cost of revenues | $ (19,293) | $ (18,581) | $ (30,434) |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income/(Loss) (Parentheticals) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Diluted net (loss)/earnings per share | $ 0.01 | $ (0.06) | $ (0.16) |
Diluted weighted average number of ordinary shares | 371,726,318 | 312,485,140 | 285,979,036 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 23,371 | $ 14,921 |
Short-term deposit | 197 | |
Accounts receivable, net | 6,489 | 5,961 |
Inventories | 2,183 | 3,624 |
Prepayments and other assets | 6,416 | 4,255 |
Other investments | 7,613 | 11,690 |
Total current assets | 49,017 | 41,346 |
Non-current assets: | ||
Long-term investments | 1,956 | 1,711 |
Property and equipment, net | 2,433 | 1,181 |
Right-of-use assets, net | 2,321 | 206 |
Intangible assets, net | 652 | 802 |
Prepayments | 228 | 688 |
Total non-current assets | 7,590 | 4,588 |
Total assets | 56,607 | 45,934 |
Current liabilities: | ||
Short term borrowings | 5,297 | 2,876 |
Accrued expenses and other liabilities | 24,755 | 24,014 |
Accounts payable | 5,314 | 6,832 |
Contract liabilities | 1,425 | 1,052 |
Operating lease liabilities | 1,082 | 184 |
Total current liabilities | 39,123 | 36,439 |
Non-current liabilities: | ||
Operating lease liabilities | 1,286 | |
Other non-current liabilities | 145 | 204 |
Total non-current liabilities | 1,431 | 204 |
Total liabilities | 40,554 | 36,643 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Additional paid-in capital | 240,137 | 236,774 |
Accumulated other comprehensive income | 2,463 | 1,876 |
Accumulated losses | (226,566) | (229,377) |
Total shareholders’ equity | 16,053 | 9,291 |
Total liabilities and shareholders’ equity | 56,607 | 45,934 |
Class A Ordinary Shares | ||
Shareholders’ equity: | ||
Class ordinary shares | 13 | 12 |
Class B Ordinary Shares | ||
Shareholders’ equity: | ||
Class ordinary shares | 6 | 6 |
Related Party | ||
Current assets: | ||
Amounts due from related parties | 2,945 | 698 |
Current liabilities: | ||
Amounts due to related parties | $ 1,250 | $ 1,481 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
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 | 252,412,720 | 246,686,120 |
Ordinary shares, outstanding | 252,412,720 | 246,686,120 |
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 |
Consolidated Statements of Chan
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 | (17) | (17) | ||||
Net income loss for the year | (46,041) | (46,041) | ||||
Share-based compensation | 8,757 | 8,757 | ||||
Shares issued upon exercise of employee share options | 999 | $ 999 | ||||
Shares issued upon exercise of employee share options (in Shares) | 1,919,760 | 1,919,760 | ||||
Issuance of shares upon vesting of Restricted Shares | ||||||
Issuance of shares upon vesting of Restricted Shares (in Shares) | 3,000,000 | |||||
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 | 2,322 | 2,322 | ||||
Net income loss for the year | (19,853) | (19,853) | ||||
Share-based compensation | 3,098 | 3,098 | ||||
Issuance of ordinary shares for convertible bond | 225 | 225 | ||||
Issuance of ordinary shares for convertible bond (in Shares) | 1,000,000 | |||||
Conversion of convertible bond to ordinary shares | $ 4 | 3,403 | 3,407 | |||
Conversion of convertible bond to ordinary shares (in Shares) | 76,943,540 | |||||
Issuance of shares upon vesting of Restricted Shares | ||||||
Issuance of shares upon vesting of Restricted Shares (in Shares) | 3,767,180 | |||||
Balance at Dec. 31, 2022 | $ 12 | $ 6 | 236,774 | 1,876 | (229,377) | 9,291 |
Balance (in Shares) at Dec. 31, 2022 | 246,686,120 | 122,072,980 | ||||
Foreign currency translation adjustment | 587 | 587 | ||||
Net income loss for the year | 2,811 | 2,811 | ||||
Share-based compensation | 3,314 | 3,314 | ||||
Shares issued upon exercise of employee share options | 49 | $ 49 | ||||
Shares issued upon exercise of employee share options (in Shares) | 97,200 | 97,200 | ||||
Issuance of shares upon vesting of Restricted Shares | $ 1 | $ 1 | ||||
Issuance of shares upon vesting of Restricted Shares (in Shares) | 5,629,400 | |||||
Balance at Dec. 31, 2023 | $ 13 | $ 6 | $ 240,137 | $ 2,463 | $ (226,566) | $ 16,053 |
Balance (in Shares) at Dec. 31, 2023 | 252,412,720 | 122,072,980 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Cash Flows [Abstract] | |||
Net (loss)/income | $ 2,811 | $ (19,853) | $ (46,041) |
Provision/(reversal) for bad debts | (126) | 2,014 | 40 |
Impairment for inventory obsolescence | 657 | 96 | 16 |
Impairment for long-term investment | 80 | ||
Depreciation of property and equipment | 985 | 839 | 2,022 |
Amortization of intangible assets | 136 | 142 | 143 |
Gains on disposals of property and equipment | (203) | (215) | (94) |
Interest expenses | 133 | 441 | 188 |
Amortization of beneficial conversion feature | 149 | ||
Share-based compensation | 3,314 | 3,098 | 8,757 |
Fair value losses on other investments | 2,748 | 12,958 | 12,363 |
Share of profit in equity method investments | (357) | (72) | (287) |
Foreign currency exchange losses, net | 514 | 2,519 | 1,106 |
Changes in operating assets and liabilities | |||
Accounts receivable | (390) | 7,715 | (8,239) |
Prepayments and other assets | (1,713) | 1,825 | 985 |
Inventories | 784 | 2,413 | (302) |
Accrued expenses, accounts payable and other liabilities | (691) | (9,647) | 5,917 |
Amounts due to related parties | (231) | 28 | (50) |
Amounts due from related parties | (2,247) | 455 | 1,111 |
Contract liabilities | 373 | (523) | 686 |
Other non-current liabilities | (59) | (58) | (59) |
Operating lease right-of-use assets | (2,115) | ||
Operating lease liabilities | 2,184 | ||
Net cash (used in)/generated from operating activities | 6,507 | 4,404 | (21,738) |
Cash flows from investing activities | |||
Purchase of property and equipment | (2,065) | (411) | (787) |
Purchase of intangible assets | (14) | (92) | |
Proceeds from disposal of property and equipment | 217 | 266 | 193 |
Cash paid for equity method investment | (247) | ||
Dividend received from long-term investment | 83 | ||
(Increase)/decrease in short-term deposit | 196 | (2) | |
Purchase of other investments | (3) | ||
Proceeds from redemption of other investment | 1,329 | ||
Net cash used in investing activities | (240) | (162) | (935) |
Cash flows from financing activities | |||
Proceeds from other borrowings | 2,541 | 212 | |
Repayments of other borrowings | (34) | (163) | |
Proceeds from issuance of convertible bonds | 4,735 | ||
Redemption of convertible bonds | (1,050) | ||
Proceeds from bank borrowings | 5,369 | 9,496 | 11,419 |
Repayments of bank borrowings | (5,416) | (9,452) | (11,968) |
Proceeds from exercise of share options | 49 | 1,284 | |
Payments relating to current Lease Liability | (238) | ||
Net cash generated from financing activities | 2,509 | 3,540 | 735 |
(Decrease)/increase in cash, cash equivalents and restricted cash | 8,776 | 7,782 | (21,938) |
Cash, cash equivalents and restricted cash at beginning of year | 14,921 | 7,868 | 30,226 |
Effect of exchange rates on cash, cash equivalents and restricted cash | (326) | (729) | (420) |
Cash, cash equivalents and restricted cash at end of year | 23,371 | 14,921 | 7,868 |
Supplemental disclosure of cash flow information | |||
Interest paid | (133) | (426) | (188) |
Cash paid for amounts include in operating lease liabilities | (15) | ||
Supplemental disclosure of non-cash operating activities | |||
Right-of-use assets obtained in exchange for operating lease obligations | $ 2,806 | $ 444 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2023 | |
Organization and principal activities [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. Before March 17,2022, the Company through its consolidated subsidiaries and the former consolidated variable interest entities (the “VIE”) (collectively, the “Group”) 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 of data connectivity services license required by the business model the Company had been using before March 17,2022, the Company conducts its business operations in the PRC through its former VIEs. 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., or Shenzhen Technology, to exercise the exclusive option right to purchase all equity interests of Beijing Technology from its shareholders according to the abovementioned 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. (b) Principal subsidiaries and former VIEs As of December 31, 2023, the details of the Company’s principal subsidiaries and former VIEs were as follows: Entity Place of Date of Relationship % of Principal activities UCLOUDLINK (HK) LIMITED Hong Kong 2 September 2014 Subsidiary 100 % Holding company HONG KONG UCLOUDLINK NETWORK TECHNOLOGY LIMITED Hong Kong 25 October 2010 Subsidiary 100 % Holding company, Shenzhen Ucloudlink Technology Limited PRC 9 July 2015 Subsidiary 100 % Technology research Shenzhen uCloudlink Co., Ltd. PRC 7 June 2018 Subsidiary 100 % Hardware exportation Beijing uCloudlink Technology Co., Ltd. (“Beijing uCloudlink”) PRC 29 January 2015 Subsidiary 100 % Holding company UCLOUDLINK (SINGAPORE) PTE.LTD 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 Technology Co., Ltd. (“Shenzhen uCloudlink”) PRC 14 August 2014 Subsidiary and Consolidated former VIE 100 % Holder of value-added Beijing uCloudlink New Technology Co., Ltd. (“Beijing Technology”) PRC 15 November 2014 Subsidiary and Consolidated former VIE 100 % Information technology PT UCLOUDLINK TECHNOLOGIES PMA 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., Ltd. PRC 22 February 2022 Subsidiary 100 % Sales and marketing Refer to Note 2.3 for the consolidated financial information of the Company’s former VIEs as of December 31, 2022. (c) Variable Interest Entities Before March 17, 2022, the Company has 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 has 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. Details of the typical structure of the Group’s former significant VIEs are set forth below: (i) VIE agreements among Beijing uCloudlink, Shenzhen uCloudlink and its nominee shareholders The following is a summary of the contractual arrangements entered among Beijing uCloudlink, Shenzhen uCloudlink and its nominee shareholder: ● Exclusive Technology Support and Technology Services Agreement Under the exclusive technology support and technology services agreement between Beijing uCloudlink and Shenzhen uCloudlink, Beijing uCloudlink has the exclusive right to provide to Shenzhen Ucloudlink technology support and technology services related to all technologies needed for its business. Beijing uCloudlink owns the exclusive intellectual property rights created as a result of the performance of this agreement. The service fee payable by Shenzhen uCloudlink to Beijing uCloudlink is determined by the revenue of Shenzhen uCloudlink less the expenditures incurred for operation and capital purpose, or at an amount subject to mutual negotiation and agreement between the parties. The term of this agreement will expire only upon the liquidation of Shenzhen uCloudlink. ● Exclusive Business Operation Agreement Under the exclusive business operation agreement among Beijing uCloudlink, Shenzhen uCloudlink and Beijing Technology, which is the sole shareholder of Shenzhen uCloudlink, Shenzhen uCloudlink and Beijing Technology undertake that without Beijing uCloudlink’s prior written consent, Shenzhen uCloudlink shall not enter into any transactions that may have a material effect on Shenzhen uCloudlink’s assets, business, personnel, obligations, rights or business operations. Shenzhen uCloudlink and Beijing Technology agree that to the extent permitted by law, they will accept and unconditionally execute instructions from Beijing uCloudlink on business operations. Shenzhen uCloudlink and Beijing Technology also agree to elect directors nominated by Beijing uCloudlink and such directors shall nominate officers designated by Beijing uCloudlink. The business operation agreement will remain effective until the end of the dissolution of Shenzhen uCloudlink and Beijing Technology correspondingly, the term of which will be extended if Beijing uCloudlink’s business term is extended or as required by Beijing uCloudlink. ● Exclusive Option Agreement The parties to the exclusive option agreement are Beijing uCloudlink, Shenzhen uCloudlink and the shareholder of Shenzhen uCloudlink. Under the exclusive option agreement, the shareholder of Shenzhen uCloudlink irrevocably granted Beijing uCloudlink or its designated representative(s) an exclusive option to purchase all or part of his or its equity interests in Shenzhen uCloudlink at a consideration of RMB1 or any lower price to the extent permitted under PRC law. Beijing uCloudlink or its designated representative(s) have sole discretion as to when to exercise such options, either in part or in full. Without Beijing uCloudlink’s prior written consent, Shenzhen uCloudlink’s shareholder shall not sell, transfer, mortgage or otherwise dispose his equity interests in Shenzhen uCloudlink. The term of this agreement will expire only when the total assets of Shenzhen uCloudlink have been acquired by Beijing uCloudlink. ● Powers of Attorney Pursuant to the irrevocable power of attorney executed by each shareholder of Shenzhen uCloudlink, each such shareholder appointed Beijing uCloudlink as its attorney-in-fact to exercise such shareholders’ rights in Shenzhen uCloudlink, including, without limitation, the power to vote on its behalf on all matters of Shenzhen uCloudlink requiring shareholder approval under PRC laws and regulations and the articles of association of Shenzhen uCloudlink. Each power of attorney will remain in force until the termination of the Exclusive Business Cooperation Agreement. ● Equity Interest Pledge Agreement Pursuant to the share pledge agreement among Beijing uCloudlink, Shenzhen uCloudlink and the shareholder of Shenzhen uCloudlink, the shareholder of Shenzhen uCloudlink has pledged all of their equity interests in Shenzhen uCloudlink to Beijing uCloudlink to guarantee the performance by Shenzhen uCloudlink and its shareholders’ performance of their respective obligations under the exclusive business cooperation agreement, exclusive option agreement, exclusive technology support and technology services agreement and powers of attorney. If Shenzhen uCloudlink and/or its shareholders breach their contractual obligations under those agreements, Beijing uCloudlink, as pledgee, will be entitled to certain rights, including the right to sell the pledged equity interests. (ii) VIE agreements among Beijing uCloudlink, Beijing Technology and its nominee shareholders The following is a summary of the contractual arrangements entered among Beijing uCloudlink, Beijing Technology and its nominee shareholders: ● Exclusive Technology Support and Technology Services Agreement Under the exclusive technology support and technology services agreement between Beijing uCloudlink and Beijing Technology, Beijing uCloudlink has the exclusive right to provide to Beijing Technology technology support and technology services related to all technologies needed for its business. Beijing uCloudlink owns the exclusive intellectual property rights created as a result of the performance of this agreement. The service fee payable by Beijing Technology to Beijing uCloudlink is determined by the revenue of Beijing Technology generated less the expenditures incurred for operation and capital purpose, or at an amount subject to mutual negotiation and agreement between the parties. The term of this agreement will expire only upon the liquidation of Beijing Technology. ● Exclusive Business Operation Agreement Beijing uCloudlink, Beijing Technology and the shareholders of Beijing Technology entered into exclusive business operation agreement under which Beijing Technology engages Beijing uCloudlink as its exclusive provider of technology support, business support and consulting services. Beijing Technology shall pay to Beijing uCloudlink service fees, which is determined by the revenue of Beijing Technology less the expenditures incurred for operation and capital purpose, subject to further mutual negotiation and agreement. Beijing uCloudlink shall have exclusive and proprietary rights and interests in all rights, ownership, interests and intellectual properties arising from the performance of the agreement. During the term of the agreement, Beijing Technology shall not accept any consultations and/or services provided by any third party and shall not cooperate with any third party for the provision of identical or similar services without prior consent of Beijing uCloudlink. The term of this agreement will expire only upon the liquidation of Beijing Technology or may be cancelled at Beijing uCloudlink’s sole discretion. ● Exclusive Purchase Option Agreement Under the exclusive purchase option agreement, the nominee shareholders of Beijing Technology have granted Beijing uCloudlink or its designated representative(s) irrevocably an exclusive option to purchase, to the extent permitted under PRC law, all or part of their equity interests in Beijing Technology at the lowest price permitted by the laws of the PRC applicable at the time of exercise. Beijing uCloudlink or its designated representative(s) have sole discretion as to when to exercise such options, either in part or in full. Without Beijing uCloudlink’s prior written consent, the nominee shareholders shall not sell, transfer, mortgage or otherwise dispose their equity interests in Beijing Technology. The term of this agreement will expire only when the total assets of Beijing Technology have been acquired by Beijing uCloudlink. ● Power of Attorney Pursuant to the irrevocable power of attorney, Beijing uCloudlink is authorized by each of the nominee shareholders as its attorney-in-fact to exercise such nominee shareholders’ rights in Beijing Technology , including, without limitation, the power to vote on its behalf on all matters of Beijing Technology requiring nominee shareholder approval under PRC laws and regulations and the articles of association of Beijing Technology and rights to information relating to all business aspects of Beijing Technology . Each power of attorney will remain in force until the termination of the Exclusive Business Cooperation Agreement. ● Equity Interest Pledge Agreement Pursuant to the equity pledge agreement, the nominee shareholders of Beijing Technology have pledged all of their equity interests in Beijing Technology to Beijing uCloudlink to guarantee the performance by Beijing Technology and its nominee shareholders’ performance of their respective obligations under the exclusive business cooperation agreement, exclusive purchase option agreement, and powers of attorney. The nominee shareholders shall not transfer or assign the equity interests, the rights and obligations in the equity pledge agreement or create or permit to create any pledges which may have an adverse effect on the rights or benefits of Beijing uCloudlink without Beijing uCloudlink’s written consent. If Beijing Technology and/or its nominee shareholders breach their contractual obligations under those agreements, Beijing uCloudlink, as pledgee, will be entitled to certain rights, including the right to sell the pledged equity interests. Through the aforementioned contractual agreements, Shenzhen uCloudlink and Beijing Technology are considered VIEs and Beijing uCloudlink is the primary beneficiary because the Company, through Beijing uCloudlink has the ability to: ● exercise effective control over Shenzhen uCloudlink and Beijing Technology; ● receive substantially all of the economic benefits and residual returns, and absorb substantially all the risks and expected losses from these VIEs as if it were their sole shareholder; and ● have an exclusive option to purchase all of the equity interests in these VIEs. (iii) Risks in relation to the VIE structure In accordance with various contractual agreements, the Company has the power to direct the activities of the VIEs and can have assets transferred out of the VIEs. Therefore, the Company considers that there are no assets in the respective VIEs that can be used only to settle obligations of the respective VIEs, except for the registered capital of the VIEs amounting to approximately US$3.8 million and US$3.8 million, as of December 31, 2021 and 2022, respectively. As the respective VIEs are incorporated as limited liability companies under the PRC Company Law, creditors do not have recourse to the general credit of the Company for the liabilities of the respective VIEs. There is currently no contractual arrangement that would require the Company to provide additional financial support to the VIEs. As the Company is conducting certain businesses in the PRC through the VIEs, the Company may provide additional financial support on a discretionary basis in the future, which could expose the Company to a loss. There is no VIE in the Group where the Company or any subsidiary has a variable interest but is not the primary beneficiary. In the opinion of the Company’s management, the contractual arrangements among its subsidiary, the VIEs and their respective nominee shareholders are in compliance with the current PRC laws and are legally binding and enforceable. However, uncertainties in the interpretation and enforcement of the PRC laws, regulations and policies could limit the Company’s ability to enforce these contractual arrangements. As a result, the Company may be unable to consolidate the VIEs in the consolidated financial statements. In January 2015, the Ministry of Commerce (“MOFCOM”), released for public comment a proposed PRC law, the Draft Foreign Investment Enterprises (“FIE”) Law, that appears to include VIEs within the scope of entities that could be considered to be FIEs, that would be subject to restrictions under existing PRC law on foreign investment in certain categories of industry. Specifically, the Draft FIE Law introduces the concept of “actual control” for determining whether an entity is considered to be an FIE. In addition to control through direct or indirect ownership or equity, the Draft FIE Law includes control through contractual arrangements within the definition of “actual control”. If the Draft FIE Law is passed by the People’s Congress of the PRC and goes into effect in its current form, these provisions regarding control through contractual arrangements could be construed to include the Company’s contractual arrangements with its VIEs, and as a result, the Group’s VIEs could become explicitly subject to the current restrictions on foreign investment in certain categories of industry. The Draft FIE Law includes provisions that would exempt from the definition of FIEs where the ultimate controlling shareholders are either entities organized under PRC law or individuals who are PRC citizens. The Draft FIE Law is silent as to what type of enforcement action might be taken against existing VIEs, that operates in restricted or prohibited industries and is not controlled by entities organized under PRC law or individuals who are PRC citizens. If the restrictions and prohibitions on FIEs included in the Draft FIE Law are enacted and enforced in their current form, the Company’s ability to use the contractual arrangements with its VIEs and the Company’s ability to conduct business through the VIEs could be severely limited. The Company’s ability to control the VIEs also depends on the power of attorney exercised by Beijing uCloudlink to vote on all matters requiring shareholders’ approvals in the VIEs. As noted above, the Company believes these powers of attorney are legally binding and enforceable but may not be as effective as direct equity ownership. In addition, if the Company’s corporate structure or the contractual arrangements with the VIEs were found to be in violation of any existing PRC laws and regulations, the PRC regulatory authorities could, within their respective jurisdictions: ● revoke the Company’s business and operating licenses; ● require the Company to discontinue or restrict its operations; ● restrict the Company’s right to collect revenues; ● require the Company to restructure its operations, re-apply for the necessary licenses or relocate the Company’s businesses, staff and assets; ● impose additional conditions or requirements with which the Company may not be able to comply; or ● take other regulatory or enforcement actions against the Company that could be harmful to the Group’s business. The imposition of any of these restrictions or actions may result in a material adverse effect on the Company’s ability to conduct its business. In addition, if the imposition of any of these restrictions causes the Company to lose the right to direct the activities of the VIEs or the right to receive their economic benefits, the Company would no longer be able to consolidate the financial statements of the VIEs. In the opinion of management, the likelihood of losing the benefits in respect of the Company’s contractual arrangements with its VIEs is remote. Through the evaluation of its business plan, the Company has decided to adjust its business model in the PRC. The Company believes it will no longer require the specific certificate for offering internet access services that could fall within the scope of prohibited or restricted categories for foreign investment in the PRC. The Company terminated the contractual arrangements with its VIEs on March 17, 2022, including Beijing Technology and Shenzhen uCloudlink. The equity of its VIEs was transferred to Shenzhen Ucloudlink Technology Limited on the same day, and previous VIEs have become wholly-owned subsidiaries of Shenzhen Ucloudlink Technology Limited. The Company believes the restructuring will not affect its international data connectivity services in the PRC. The Company will transform and carry out the PaaS and SaaS platform services in the PRC in cooperation with local business partners which have the required licenses to provide local data connectivity services in the PRC. Refer to Note 2.3 for the consolidated financial information of the Company’s former VIEs as of December 31, 2021 and 2022. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of significant accounting policies | 2. Summary of significant accounting policies 2.1 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 Company in the preparation of the accompanying consolidated financial statements are summarized below. 2.2 Use of estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires the Company 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 Company 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, 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 income/(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 (in thousands of US$) Cash and cash equivalents 1,951 Accounts receivable, net 474 Amounts due from subsidiaries 12,766 Property and equipment and intangible assets 775 Others 5,536 Total assets 21,502 Short term borrowings 574 Amounts due to parent and subsidiaries 60,029 Accounts payable, accrued expenses and other liabilities 12,690 Contract liabilities 62 Others 80 Total liabilities 73,435 Total shareholders’ deficit (51,933 ) Years ended December 31, 2021 2022 (in thousands of US$) Revenue (note a) 30,979 30,371 Net loss (note a) (16,244 ) (4,349 ) Net cash (used in)/generated from operating activities (6,553 ) 858 Net cash used in investing activities (178 ) (430 ) Net cash generated from financing activities 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: FY21: USD 0.4 million and FY22: USD 0.5 million, while subsidiaries’ non-cash operating expenses would be higher by the following amounts: FY2021: USD 4.7 million and FY22: USD 2.5 million. The former VIEs did not have any material related party transactions except for the related party transactions which are disclosed in Note 22 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. 2.4 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 Company has only one operating and reportable segment. The Company’s long-lived assets are substantially located in the PRC. 2.5 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)/income during the period in which they occur. 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 Company’s activities and is recorded net of value-added tax (“VAT”). The Company recognizes revenue in accordance with ASC 606 “Revenue from Contracts with Customers” for all years presented with full retrospective method. The Company conducts its business through various contracts with customers, including: (i) Data connectivity services The Company 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 Company 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 Company determines that the arrangement involves the leasing of portable Wi-Fi terminals with data connectivity services embedded. The Company determines that it is the lessor in the arrangement which contains an equipment lease component and a service non-lease component. The Company 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 Company 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 Company views users as its customers. For data connectivity services generated from sales of data connectivity services to enterprise customers, the Company views enterprise customers as its customers. The Company 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 Company 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 Company and the Company’s ability to direct the use of the data, and is further supported by the Company 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 Company does not have further performance obligations to the customers after the contract period. The Company 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 Company procures SIM cards and data plans from various suppliers. Those SIM cards are activated and hosted on the Company’s cloud SIM platform. The Company’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 Company’s data connectivity services. Accordingly, the Company 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 Company 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 Company’s data connectivity services are provided without right of return and the Company does not provide any other credit and incentive to its customers, therefore, the Company’s provision of data connectivity services does not involve variable consideration. (ii) Sales of terminals and data related products The Company 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 Company allocates the transaction price to each distinct performance obligation based on their relative standalone selling prices. The Company 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 Company 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 Company 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 Company 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 liabilities 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 Company, 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 thousand. For the years ended December 31, 2021, 2022 and 2023, revenue amounting to US$889 thousand, US$1,575 thousand and US$1,052 thousand were included in the contract liabilities balance at the beginning of the respective period. 2.7 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 Company’s principal operations. 2.8 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. 2.9 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 Company’s sales and marketing activities. Advertising and promotional expenses were US$2,846 thousand, US$2,217 thousand and US$3,923 thousand during the years ended December 31, 2021, 2022 and 2023, respectively. 2.10 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. 2.11 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 Company 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 Company 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 Company entered into a share restriction agreement with certain senior management and their respective wholly owned companies, which directly hold the equity interest in 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 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 Company applies the Binominal option pricing model in determining the fair value of options granted under ASC 718. The Company has elected to account for forfeitures when they occur. On each measurement date, the Company 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 Company, including the fair value of the underlying shares, expected life and expected volatility. The Company 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. 2.12 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, 2021, 2022 and 2023, contributions to such plan amounting to US$3,074 thousand, US$1,909 thousand and US$708 thousand respectively, were charged to the consolidated statements of comprehensive (loss)/income. The Company also makes payments to other defined contribution plans for the benefit of employees employed by subsidiaries outside of the PRC. 2.13 Income taxes The Company 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 Company 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 Company 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, 2021, 2022 and 2023. 2.14 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. 2.15 Comprehensive income/(loss) Comprehensive income/(loss) is defined to include all changes in equity of the Company 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 Company’s comprehensive income/(loss) includes net income/(loss) and other comprehensive income/(loss), which mainly consists of the foreign currency translation adjustment that have been excluded from the determination of net income/(loss). 2.16 Leases The Company 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 Company has no significant finance leases. The Company 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 assets 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. 2.17 Earnings/(loss) per share Basic earnings/(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 income/(loss) is allocated between different classes of ordinary shares based on their participating rights. Diluted earnings/(loss) per share is calculated by dividing net income/(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 Company’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. 2.18 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) 2022 2023 Cash and cash equivalents 14,921 23,371 2.19 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$12 thousand, US$138 thousand and US$657 thousand were recorded in cost of revenues in the consolidated statements of comprehensive (loss)/income for the years ended December 31, 2021, 2022 and 2023 respectively. 2.20 Accounts receivable, net Accounts receivable are presented net of allowance for doubtful accounts. The Company 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 Company 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 Company’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 Company assesses collectibility 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$4,519 thousand and US$4,201 thousand as of December 31, 2022 and 2023, respectively. 2.21 Investment in equity method investees The equity investment represents the Company’s investment in three entities. The Company 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 Company 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 Company’s share of loss in the equity investee equals or exceeds its interest in the equity investee, the Company does not recognize further losses, unless the Company has incurred obligations or made payments or guarantees on behalf of the equity investee. The Company 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 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2023 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recent accounting pronouncements | 3. Recent accounting pronouncements 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 Company 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 fiscal years beginning after 15 December 2023, including interim periods within those fiscal years. 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. In July 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in ASU 2023-07 improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in ASU 2023-07 improve financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The adoption of this guidance did not have a material impact on its financial position, results of operations and cash flows. In September 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The Board is issuing the amendments in this Update to enhance the transparency and decision usefulness of income tax disclosures. Investors currently rely on the rate reconciliation table and other disclosures, including total income taxes paid, to evaluate income tax risks and opportunities. While investors find these disclosures helpful, they suggested possible enhancements to better (1) understand an entity’s exposure to potential changes in jurisdictional tax legislation and the ensuing risks and opportunities, (2) assess income tax information that affects cash flow forecasts and capital allocation decisions, and (3) identify potential opportunities to increase future cash flows. The Board decided that the amendments should be effective for public business entities for annual periods beginning after December 15, 2024. |
Concentration and Risks
Concentration and Risks | 12 Months Ended |
Dec. 31, 2023 | |
Concentration and Risks [Abstract] | |
Concentration and Risks | 4. Concentration and Risks (a) Foreign exchange risk The revenues and expenses of the Company’s entities in the PRC are generally denominated in RMB and their assets and liabilities are denominated in RMB. The RMB is not freely convertible into foreign currencies. Remittances of foreign currencies into the PRC or remittances of RMB out of the PRC as well as exchange between RMB and foreign currencies require approval by foreign exchange administrative authorities and certain supporting documentation. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into other currencies. (b) Credit risk Financial instruments that potentially expose the Company to credit risk consist primarily of cash and cash equivalents, short-term deposit and accounts receivable. The Company places its cash and cash equivalents and short-term deposit with financial institutions with high credit ratings and quality. The Company conducts credit evaluations of third-party customers and related parties, and generally does not require collateral or other security from its third-party customers and related parties. The Company establishes an allowance for doubtful accounts primarily based upon the age of the receivables and factors surrounding the credit risk of specific third-party customers and related parties. |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2023 | |
Revenues [Abstract] | |
Revenues | 5. Revenues Years ended December 31, (In thousands) 2021 2022 2023 Revenues from services —Data connectivity services 26,430 35,483 46,745 International data connectivity services 21,672 28,085 37,928 Local data connectivity services 4,758 7,398 8,817 —PaaS and SaaS services 10,770 9,819 10,425 —Others 598 926 1,400 37,798 46,228 58,570 Sales of products —Sales of terminals 27,408 21,748 24,369 —Sales of data related products 5,843 3,230 2,150 —Others 2,775 255 487 36,026 25,233 27,006 Total 73,824 71,461 85,576 In the following table, revenue is geographically disaggregated according to the locations of the customers. Years ended December 31, (In thousands) 2021 2022 2023 Japan 35,883 28,088 37,122 North America 24,183 27,183 24,074 Southeast Asia 4,173 4,912 4,605 Mainland China 3,842 1,883 11,156 Hong Kong SAR 2,199 4,166 1,660 Europe 1,845 3,361 4,207 Others 1,457 1,264 1,884 Taiwan 242 604 868 Total 73,824 71,461 85,576 |
Other Expenses, Net
Other Expenses, Net | 12 Months Ended |
Dec. 31, 2023 | |
Other Expenses, Net [Abstract] | |
Other expenses, net | 6. Other expenses, net Years ended December 31, (In thousands) 2021 2022 2023 Foreign exchange losses, net (1,106 ) (2,519 ) (514 ) Government grants (note) 1,012 935 1,120 Gains on disposal of property and equipment, net 94 215 203 Fair value losses on other investments (12,363 ) (12,958 ) (2,748 ) Others 487 62 439 Total (11,876 ) (14,265 ) (1,500 ) Note: Government grants mainly represent amounts received from central and local governments in connection with the Company’s investments in local business districts and contributions to technology development. |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2023 | |
Taxation [Abstract] | |
Taxation | 7. 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. In 2023, the preferential tax rate of 15% for Shenzhen Ucloudlink Technology Limited and Shenzhen uCloudlink was extended for three years from 2023 to 2025. The Company’s (loss)/income before income taxes consisted of: Years ended December 31, (In thousands) 2021 2022 2023 Non-PRC (28,212 ) (15,397 ) (2,149 ) PRC (17,872 ) (4,367 ) 4,673 Total (46,084 ) (19,764 ) 2,524 (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 years ended December 31, 2021, 2022 and 2023 were as follows: Years ended December 31, (In thousands) 2021 2022 2023 (Loss)/income before income tax (46,084 ) (19,764 ) 2,524 Income tax computed at statutory PRC income tax rate (25%) (i) (11,521 ) (4,941 ) 631 Differential income tax rates applicable to certain entities comprising the Company 4,061 1,791 74 Effect of tax holiday 1,786 469 (448 ) Permanent differences (ii) 1,826 2,100 (174 ) Change in valuation allowance 5,405 1,569 133 Accelerated deductions on research and development expenses (iii) (1,313 ) (827 ) (146 ) Income tax expenses 244 161 70 (i) The PRC statutory income tax rate was used because the majority of the Company’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. The per share effect of the tax holidays are as follows: Years ended December 31, (In thousands) 2021 2022 2023 Effect of tax holiday 1,786 469 (448 ) Per share effect – basic and diluted (0.01 ) (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: Years ended December 31, (In thousands) 2021 2022 2023 Deferred tax assets Net operating loss carryforwards 14,808 19,814 19,187 Accrued expenses and others 427 (3,010 ) (2,250 ) Less: valuation allowance (15,235 ) (16,804 ) (16,937 ) Net deferred tax assets — — — Movement of valuation allowance Years ended December 31, (In thousands) 2021 2022 2023 Balance at beginning of the year 9,830 15,235 16,804 Change of valuation allowance 5,405 1,569 133 Balance at end of the year 15,235 16,804 16,937 Valuation allowance is provided against deferred tax assets when the Company determines that it is more-likely-than-not that the deferred tax assets will not be utilized in the future. The Company 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 Company is using to manage the underlying businesses. Valuation allowances are established for deferred tax assets based on a more likely than not threshold. The Company’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 Company has provided a full valuation allowance for the deferred tax assets as of December 31, 2021, 2022 and 2023, 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, 2022 and 2023, the Company had net operating loss carryforwards of approximately US$100,986 thousand, US$134,896 thousand and US$129,654 thousand respectively, which arose from the subsidiaries established in Hong Kong and PRC. As of December 31, 2021, 2022 and 2023, the Company 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 Company 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, 2023, the net operating loss carry forwards arose from Shenzhen Ucloudlink Technology Limited and Shenzhen uCloudlink will expire during the period from 2024 to 2033, if unused. (c) Uncertain tax position The Company 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, 2022 and 2023, the Company did not have any significant unrecognized uncertain tax positions. The Company 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 | 12 Months Ended |
Dec. 31, 2023 | |
Ordinary shares [Abstract] | |
Ordinary shares | 8. 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, 2019, the Company has 232,451,900 ordinary shares (including 162,897,778 vested restricted shares) outstanding (2020: 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 (Note 9). 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 Company or his employment or service relationship is terminated by any applicable Company 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 Company 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 Company. 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 Company. 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 Company 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 the year ended December 31, 2020, 576,720 shares of Class A Ordinary Shares were issued upon exercise of outstanding stock options under the Company’s share-based incentive plans (Note 10). (xiii) During the 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 Company’s share-based incentive plans (Note 10). (xiv) During the year ended December 31, 2022, 1,000,000 shares of Class A Ordinary Shares were issued for issuance of convertible debenture, an aggregate of 76,943,540 shares of Class A Ordinary Shares were issued for conversion of convertible debenture, and 3,767,180 shares of Class A Ordinary Shares were issued upon vesting of restricted share units under the Company’s share-based incentive plans (Note 10). (xv) During year ended December 31, 2023, 97,200 shares of Class A Ordinary Shares were issued upon exercise of outstanding stock options and 5,629,400 shares of Class A Ordinary Shares were issued upon vesting of restricted share units under the Company’s share-based incentive plans (Note 10). |
Convertible Promissory Notes
Convertible Promissory Notes | 12 Months Ended |
Dec. 31, 2023 | |
Convertible Promissory Notes [Abstract] | |
Convertible promissory notes | 9. Convertible promissory notes 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 promissory 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 year ended December 31, 2022, the Company have recognized Amortization of beneficial conversion feature US$149 thousand to profit. In October 2022, the Company redeemed US$1.0 million principal amount of the convertible debentures, and the Purchaser had from time to time, converted all of the remaining amount for an aggregate of 76,943,540 Class A ordinary shares. |
Share-Based Awards
Share-Based Awards | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Awards [Abstract] | |
Share-based awards | 10. Share-based awards Compensation expense recognized for share-based awards was as follow: Years ended December 31, Share-based compensation expenses (In thousands) 2021 2022 2023 —Restricted Shares (a) 5,573 1,006 1,999 —Share options (b) 3,184 2,092 1,316 Total 8,757 3,098 3,315 (a) Restricted Shares As described in note 8(ii), all ordinary shares of the Company held by certain senior management were subject to a vesting period of 5 years from January 2015 (which was shortened to 4 years on September 22, 2016). 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, February 26, 2021, and July 1, 2021, the Company granted 2,717,500, 3,304,000 and 239,600 restricted share units respectively to its employees, directors, and other consultants, pursuant to the 2019 Plan. On January 1, 2022, January 27, 2022, August 30, 2022, and November 30, 2022, the Company granted 163,520, 172,500, 6,485,990 and 2,000,000 restricted share units respectively to its employees, directors, and other consultants, pursuant to the 2019 Plan. On January 1, 2023, the Company granted 1,125,170 restricted share units to its employees, directors, and other consultants, pursuant to the 2019 Plan. On May 31, 2023, the Company granted 5,530,000 restricted share units to its employees, directors, and other consultants, pursuant to the 2019 Plan. The fair value of each restricted share granted with service conditions is estimated based on the fair market value of the underlying ordinary shares of the Company on the date of grant. A summary of the Restricted Shares activity for the years ended December 31, 2021, 2022 and 2023 is presented below: (Number of shares) Number of Outstanding as of January 1, 2021 — Granted 6,261,100 Forfeited (345,000 ) Vested (3,000,000 ) Outstanding as of December 31, 2021 2,916,100 Granted 8,822,010 Vested (3,767,180 ) Outstanding as of December 31, 2022 7,970,930 Granted 6,655,170 Forfeited (1,000,000 ) Vested (5,629,400 ) Outstanding as of December 31, 2023 7,996,700 (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 Company 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 Company 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 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 other consultant pursuant to the 2019 Plan. On March 1, 2022 the Company granted 100,000 share options to its employee pursuant to the 2019 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). 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 years ended December 31, 2021, 2022 and 2023 is as follows: Number of Weighted Aggregate Outstanding as of January 1, 2021 22,298,757 $ 0.54 $ 57,082,970 Granted 820,000 $ 0.68 $ 171,820 Forfeited (1,973,636 ) $ 0.56 $ (3,388,792 ) Exercised (1,919,760 ) $ 0.52 $ (5,939,067 ) Outstanding as of December 31, 2021 19,225,361 $ 0.54 $ 47,926,931 Exercisable as of December 31, 2021 13,478,069 $ 0.55 $ 38,703,590 Granted 716,420 $ 0.81 $ (458,564 ) Forfeited (1,936,841 ) $ 0.74 $ (2,428,038 ) Outstanding as of December 31, 2022 18,004,940 $ 0.53 $ 45,040,329 Exercisable as of December 31, 2022 14,644,270 $ 0.54 $ 39,789,170 Forfeited (885,560 ) $ 0.56 $ (2,409,012 ) Exercised (97,200 ) $ 0.50 $ (302,604 ) Outstanding as of December 31, 2023 17,022,180 $ 0.53 $ 42,328,713 Exercisable as of December 31, 2023 14,301,480 $ 0.54 $ 38,503,322 The Company 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 years ended December 31, 2021, 2022 and 2023 is summarized in the following table: Years ended December 31, (In thousands) 2021 2022 2023 Risk-free interest rate (i) 1.22%-1.52 % 0.90%-1.67 % N/A Expected dividend yield (ii) 0.00 % 0.00 % N/A Expected volatility (iii) 35.01%-36.00 % 29.44%-34.81 % N/A Grant date fair value 0.06-$0.65 0.00-$0.0044 N/A (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 December 31, 2023, the unrecognized share-based compensation expenses related to share options and restricted share units granted by Company were US$353 thousand and US$1,123 thousand respectively. |
Earnings_(Loss) Per Share
Earnings/(Loss) Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings/(Loss) Per Share [Abstract] | |
Earnings/(loss) per share | 11. Earnings/(loss) per share Basic and diluted net (loss)/earnings per share for each of the year presented were calculated as follows: Years ended December 31, (In thousands of US$ except share data and per share data) 2021 2022 2023 Numerator: Net (loss)/income (46,041 ) (19,853 ) 2,811 Net (loss)/income attributable to ordinary shareholders of the Company for computing basic and diluted net (loss)/earnings per share (46,041 ) (19,853 ) 2,811 Denominator: Weighted average number of ordinary shares outstanding used In calculating basic and diluted net (loss)/earnings per share 285,979,036 312,485,140 371,726,318 Basic and diluted net (loss)/earnings per ordinary share (0.16 ) (0.06 ) 0.01 Diluted earnings per share do not include the following instruments as their inclusion would have been anti-dilutive: Years ended December 31, 2021 2022 2023 Restricted Shares 2,916,100 7,970,930 7,996,700 Share options awards 19,225,361 18,004,940 17,022,180 Total 22,141,461 25,975,870 25,018,880 |
Cash and Cash Equivalents and S
Cash and Cash Equivalents and Short-Term Deposit | 12 Months Ended |
Dec. 31, 2023 | |
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 Company had US$197 thousand of short-term deposit as of December 31, 2022, with an original maturity of 12 months denominated in HKD. As of December 31, 2023, the short-term deposit was nil Cash on hand and cash held at bank balance and short-term deposit as of December 31, 2022 and 2023 primarily consist of the following currencies: December 31, 2022 December 31, 2023 (In thousands) Original US$ Original US$ US$ 6,276 6,276 8,290 8,290 RMB 27,129 3,895 80,717 11,396 JPY 448,139 3,370 241,249 1,710 HKD 5,411 695 2,611 334 Others 882 1,641 Total 15,118 23,371 |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2023 | |
Accounts Receivable, Net [Abstract] | |
Accounts receivable, net | 13. Accounts receivable, net (In thousands) December 31, December 31, Accounts receivable 10,480 10,690 Less: Allowance for doubtful accounts (4,519 ) (4,201 ) Accounts receivable, net 5,961 6,489 The following table presents movement in the allowance for doubtful accounts: (In thousands) December 31, December 31, December 31, Balance at beginning of the year 3,289 3,350 4,519 Additions 67 1,273 668 Reversal (22 ) (26 ) (806 ) Written off — — (142 ) Exchange difference 16 (78 ) (38 ) Balance at end of the year 3,350 4,519 4,201 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2023 | |
Inventories [Abstract] | |
Inventories | 14. Inventories (In thousands) December 31, December 31, Raw materials 1,971 1,655 Finished goods 2,401 1,909 Less: write-down of obsolete inventories (748 ) (1,381 ) Total inventories 3,624 2,183 |
Prepayments and Other Assets
Prepayments and Other Assets | 12 Months Ended |
Dec. 31, 2023 | |
Prepayments and Other Assets [Abstract] | |
Prepayments and other assets | 15. Prepayments and other assets (In thousands) December 31, December 31, Prepayments 2,850 4,057 Deposits 1,215 1,330 VAT recoverable 715 1,061 Others 163 196 Total of prepayments and other assets 4,943 6,644 (In thousands) December 31, December 31, Current 4,255 6,416 Non-current 688 228 Total of prepayments and other assets 4,943 6,644 |
Long-Term Investments
Long-Term Investments | 12 Months Ended |
Dec. 31, 2023 | |
Long-Term Investments [Abstract] | |
Long-term investments | 16. Long-term investments As of December 31, 2022 (In thousands) Original Cumulative Impairment Exchange Carrying Maya 442 (442 ) — — — Huaxiang 1,251 515 — (55 ) 1,711 iQsim S.A. 245 (156 ) (80 ) (9 ) — Total 1,938 (83 ) (80 ) (64 ) 1,711 As of December 31, 2023 (In thousands) Original Cumulative Dividend Impairment Exchange Carrying Maya 442 (442 ) — — — — Huaxiang 1,251 872 (83 ) — (84 ) 1,956 iQsim S.A. 245 (156 ) — (80 ) (9 ) — Total 1,938 274 (83 ) (80 ) (93 ) 1,956 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 thousand. In October 2022, the other shareholder of Maya increased its investment and the Company’s equity interest in Maya was diluted to 19.6%. The Company 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, 2022 and 2023, 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 RMB 8,521 thousand. In March and December 2022, Huaxiang introduced new investors and the Company’s equity interest in Huaxiang was diluted to approximately 9%. 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 USD228 thousand and USD357 thousand during the years ended December 31, 2022 and 2023. 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 thousand. The Company exercises significant influence in iQsim S.A and therefore accounts for this as a long-term investment using equity method. The Company recognized share of loss of USD156 thousand during the year ended December 31, 2022. As iQsim applied for bankruptcy, the Company wrote off the left amount of the investments of USD80 thousand in 2022. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2023 | |
Property and Equipment, Net [Abstract] | |
Property and Equipment, net | 17. Property and equipment, net Property and equipment consist of the following: (In thousands) December 31, December 31, Computers 460 509 Server & switch 1,283 1,268 Office equipment 1,754 1,727 Wi-Fi terminals for data connectivity services 7,762 8,420 Leasehold improvement 536 531 Total original costs 11,795 12,455 Less: accumulated depreciation (10,614 ) (10,022 ) Carrying amount 1,181 2,433 Depreciation expenses recognized for the years ended December 31, 2021, 2022 and 2023 were US$2,022 thousand, US$839 thousand and US$985 thousand, respectively. |
Lease
Lease | 12 Months Ended |
Dec. 31, 2023 | |
Lease [Abstract] | |
Lease | 18. Lease The Company has leased office premises and buildings under non-cancellable operating lease agreements. These leases have different terms and renewal rights. The following table presents balances reported in the consolidated balance sheets related to the Company’s leases: (In thousands) December 31, December 31, Right-of-use assets, net 206 2,321 Current operating lease liabilities 184 1,082 Non-current operating lease liabilities — 1,286 The following table presents operating lease cost reported in the consolidated statements of comprehensive (loss)/income related to the Company’s leases: (In thousands) December 31, December 31, Operating lease cost 238 973 Short-term lease cost 1,191 931 Total 1,429 1,904 For the years ended December 31, 2022 and 2023, the Company incurred rental expenses under operating leases US$1,429 thousand and US$1,904 thousand. The following table reconciles the undiscounted cash flows of the Company’s leases as of December 31, 2023 to the present value of its operating lease payments: For the year ending December 31 (In thousands) 2024 1,147 2025 965 2026 297 2027 64 Total undiscounted operating lease payments 2,473 Less: imputed interest (105 ) Present value of operating lease liabilities 2,368 The following summarizes other supplemental information about the Company's lease as of December 31, 2023. As of Weighted average discount rate 4.76 % Weighted average remaining lease term 2.3 years |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets, Net [Abstract] | |
Intangible assets, net | 19. Intangible assets, net (In thousands) Carrying Accumulated Net December 31, 2022 Software 1,118 (405 ) 713 Trademarks 114 (81 ) 33 Licensed copyrights 171 (115 ) 56 Intangible assets 1,403 (601 ) 802 (In thousands) Carrying Accumulated Net December 31, 2023 Software 1,099 (507 ) 592 Trademarks 112 (91 ) 21 Licensed copyrights 169 (130 ) 39 Intangible assets 1,380 (728 ) 652 Amortization expenses recognized for the years ended December 31, 2021, 2022 and 2023 were US$143 thousand, US$142 thousand and US$136 thousand, respectively. The estimated aggregate amortization expenses for each of the five succeeding fiscal years and thereafter are as follows: Year (In thousands) 2024 138 2025 126 2026 108 2027 103 2028 70 Thereafter 107 Total 652 |
Other Investments
Other Investments | 12 Months Ended |
Dec. 31, 2023 | |
Other Investments [Abstract] | |
Other investments | 20. Other investments (In thousands) December 31, December 31, Current (i) (ii) (iii) 11,690 7,613 Note: (i) In June 2020, the Company made an investment in an investment fund, which was classified as an equity security, for a cash consideration of US$15,000 thousand, for which the underlying assets were mainly comprised of debt securities and equity securities. It is redeemable at the option of the Company with one (ii) In June 2020, the Company made an investment in an investment fund, which was classified as a debt security carried at fair value, for a cash consideration of US$17,100 thousand, for which the underlying assets were mainly comprised of unlisted bonds and subordinated debentures, for a period of 3 years. The debt security was measured and recorded at fair value on a recurring basis based on the quoted price by the asset management company, which was the executable transaction prices and the amounts that redemption and new purchases can be made and classified as level 2 inputs. There was a fair value loss of US$7,415 thousand for the year ended December 31,2022 and a fair value loss of US$3,314 thousand for the year ended December 31, 2023. In December, 2023, the Company fully redeemed the investment with amount of US$1.3 million. (iii) In October 2022, the Company purchased a publicly traded stock of 100 shares for a cash consideration of JPY364,148 on the Japanese stock market. As of December 31, 2023, the fair value of the investment was US$3 thousand (JPY364,148). |
Accounts Payable, Accrued Expen
Accounts Payable, Accrued Expenses and Other Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Accounts Payable, Accrued Expenses and Other Liabilities [Abstract] | |
Accounts payable, accrued expenses and other liabilities | 21. Accounts payable, accrued expenses and other liabilities (In thousands) December 31, December 31, Accounts payable to suppliers 6,832 5,314 Accrued bonus and staff costs 20,256 21,199 Other deposits 1,026 832 Other taxes payable (note) 461 345 Accrued professional fees 1,462 1,166 Accrued marketing expenses 101 177 Others 708 1,036 Total 30,846 30,069 Note: Other taxes payable represents business tax, VAT and related surcharges and PRC individual income tax of employees withheld by the Company. |
Short-Term Borrowings
Short-Term Borrowings | 12 Months Ended |
Dec. 31, 2023 | |
Short-Term Borrowings [Abstract] | |
Short-term borrowings | 22. Short-term borrowings (In thousands) December 31, December 31, Current Bank borrowings (i) 2,842 2,756 Other borrowings (ii) 34 2,541 Total 2,876 5,297 Note: (i) The Company’s short-term bank borrowings are primarily used for working capital and business development purposes and bear interest rate of 3.20% ~ 3.55% (2022: 4.00% ~ 5.55%) per annum, with a weighted average interest rate of 3.38% (2022: 4.86%) per annum. Certain bank borrowings are guaranteed by certain of our directors, certain legal representative, certain subsidiary and other company as of December 31, 2022 and 2023. (ii) In March 2022, the Company entered into an eleven-month financing agreement with an independent third-party finance lease company amounting to US$194 thousand with equivalent equipment of the Company pledged. The interest rate is 5.6% per annum. The Company has fully repaid the amount and the balance is nil In December 2023, the Company entered into two one-year financing agreement with two independent third-party financial institutes amounting to US$2,541 thousand with two patents pledged and certain director and subsidiaries guaranteed. The interest rate ranged from 4.9% to 4.96% per annum. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related party transactions | 23. Related party transactions (a) Related parties As of December 31, 2023, the name and relationship with material related parties are as follows: Related Party 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 years ended December 31, 2021, 2022 and 2023, other than disclosed elsewhere, the Company had the following material related party transactions: Years ended December 31, (In thousands) 2021 2022 2023 Revenue from provision of data connectivity services, PaaS and SaaS services and sales of terminals and data related products: Maya 9,370 6,202 10,770 Beijing Huaxianglianxin Technology Company 984 334 36 Purchase of data connectivity service: Maya 26 4 2 Beijing Huaxianglianxin Technology Company 87 6 — (c) The Company had the following related parties balances as of December 31, 2022 and December 31, 2023: (In thousands) December 31, December 31, Deposits received from related parties: Maya 1,238 1,055 Contract liability: Maya 222 175 Amounts payable to related parties: Maya 1 — Beijing Huaxianglianxin Technology Company 20 20 Amounts receivable from related parties: Maya 684 2,943 Beijing Huaxianglianxin Technology Company 14 2 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies [Abstract] | |
Commitments and contingencies | 24. Commitments and contingencies (a) Purchase commitment for purchase of data As of December 31, 2023, the Company has future minimum purchase commitment related to the purchase of data of US$3,299 thousand, US$1,121 thousand and US$109 thousand within 2024, 2025 and 2026, respectively. (b) Other commitments The Company also has commitments including commitments for lease ancillary services fees. Year (In thousands) 2024 39 2025 16 Total 55 (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 Company 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 October 11, 2022, the Supreme People’s Court issued the judgement upholding Beijing Intellectual Property Court’s invalidation decision. The Company believes the aforementioned allegations are without merit and will defend vigorously. The Company 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 Company as of December 31, 2023 in respect of these proceedings. |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Dec. 31, 2023 | |
Restricted Net Assets [Abstract] | |
Restricted net assets | 25. Restricted net assets The Company’s ability to pay dividends is primarily dependent on the Company receiving distributions of funds from its subsidiaries. Relevant PRC statutory laws and regulations permit payments of dividends by the Company’s PRC subsidiaries only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the consolidated financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the Company’s subsidiaries. In accordance with the PRC Regulations on Enterprises with Foreign Investment and the articles of association of the Company’s PRC subsidiaries, a foreign-invested enterprise established in the PRC is required to provide certain statutory reserves, namely general reserve fund, the enterprise expansion fund and staff welfare and bonus fund which are appropriated from net profit as reported in the enterprise’s PRC statutory accounts. A foreign-invested enterprise is required to allocate at least 10% of its annual after-tax profit to the general reserve fund until such reserve has reached 50% of its respective registered capital based on the enterprise’s PRC statutory accounts. Appropriations to the enterprise expansion fund and staff welfare and bonus fund are at the discretion of the board of directors for all foreign-invested enterprises. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. The WFOE was established as a foreign-invested enterprise and, therefore, is subject to the above mandated restrictions on distributable profits. For the years ended December 31, 2021, 2022 and 2023, WFOE did not have after-tax accumulated profit and therefore no statutory reserves have been allocated. Foreign exchange and other regulations in the PRC may further restrict the Company’s VIEs from transferring funds to the Company in the form of dividends, loans and advances. Amounts restricted include paid-in capital, additional paid-in capital, and the statutory reserves of the Company’s PRC subsidiaries, affiliates and VIEs. As of December 31, 2023, total restricted net assets were US$105,852 thousand. The Company performed a test on the restricted net assets of subsidiaries in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (e) (3), “General Notes to Financial Statements” and concluded that the restricted net assets exceeded 25% of the consolidated net assets of the Company as of December 31, 2023 and the condensed financial information of the Company are required to be presented (See Note 28). |
Impact of COVID-19
Impact of COVID-19 | 12 Months Ended |
Dec. 31, 2023 | |
Impact of COVID-19 [Abstract] | |
Impact of COVID-19 | 26. 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 Company’s Roamingman business. 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 Company’s international data connectivity services. The net cash used in operating activities of the Company was US$21,738 thousand for the year ended December 31, 2021. However, the net cash provided by operating activities of the Company was US$4,404 thousand and US$6,507 thousand for the year ended December 31, 2022 and 2023, respectively. The Company 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. The extent of the impact of the COVID-19 on the Company’s operational and financial performance will be monitored carefully. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 27. Subsequent Events The Company has evaluated events subsequent to the balance sheet date of December 31, 2023 through March 28, 2024, the issuance of the consolidated financial statement and did not identify any other subsequent events with material financial impact on the Company’s consolidated financial statements. |
Additional Information_ Condens
Additional Information: Condensed Financial Statements of the Company | 12 Months Ended |
Dec. 31, 2023 | |
Additional Information: Condensed Financial Statements of the Company [Abstract] | |
Additional information: condensed financial statements of the Company | 28. Additional information: condensed financial statements of the Company Regulation S-X require condensed financial information as to financial position, statement of cash flows and results of operations of a parent company as of the same dates and for the same periods for which audited consolidated financial statements have been presented when the restricted net assets of consolidated and unconsolidated subsidiaries together exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. The Company records its investment in its subsidiaries, former VIEs and former VIEs’ subsidiaries under the equity method of accounting. Such investments are presented on the separate condensed balance sheets of the Company as “Long-term investments”. The subsidiaries did not pay any dividends to the Company for the periods presented. Certain information and footnote disclosures generally included in financial statements prepared in accordance with U.S. GAAP have been condensed and omitted. The footnote disclosures represent supplemental information relating to the operations of the Company, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Company. The Company did not have significant other commitments, long-term obligations, or guarantees as of December 31, 2023. Condensed statements of comprehensive loss of the parent company Years ended December 31, (Amounts expressed in thousands of US$ except for number of shares and per share data) 2021 2022 2023 Operating expenses (10,399 ) (4,289 ) (3,919 ) Loss before income tax (10,266 ) (4,472 ) (3,284 ) (Loss)/income from subsidiaries and former VIEs (35,775 ) (15,381 ) 6,095 Net (loss)/income (46,041 ) (19,853 ) 2,811 Condensed balance sheets of the parent company As of December 31, (Amounts expressed in thousands of US$ except for number of shares and per share data) 2022 2023 Cash and cash equivalents 463 107 Amounts due from subsidiaries 127,308 127,282 Others — 15 Total assets 127,771 127,404 Accounts payable, accrued expenses and other liabilities 397 58 Deficit in subsidiaries 113,938 106,746 Others 204 146 Amounts due to subsidiaries 3,683 3,633 Total liabilities 118,222 110,583 Total shareholders’ equity 9,549 16,821 Condensed statement of cash flows of the parent company Years ended December 31, (Amounts expressed in thousands of US$ except for number of shares and per share data) 2021 2022 2023 Cash flows from operating activities Net cash used in operating activities (1,483 ) (3,355 ) (605 ) Cash flows from investing activities Intercompany fund transfers (3,000 ) — 200 Net cash (used in)/generated from investing activities (3,000 ) — 200 Cash flows from financing activities Proceeds from exercise of share options 1,284 — 49 Proceeds from issuance of convertible bonds — 4,735 — Redemption of convertible bonds — (1,050 ) — Net cash generated from financing activities 1,284 3,685 49 (Decrease)/increase in cash, cash equivalents and restricted cash (3,199 ) 330 (356 ) Cash, cash equivalents and restricted cash at beginning of year 3,332 133 463 Cash, cash equivalents and restricted cash at end of year 133 463 107 |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies [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 Company 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 Company 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 Company 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 income/(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 (in thousands of US$) Cash and cash equivalents 1,951 Accounts receivable, net 474 Amounts due from subsidiaries 12,766 Property and equipment and intangible assets 775 Others 5,536 Total assets 21,502 Short term borrowings 574 Amounts due to parent and subsidiaries 60,029 Accounts payable, accrued expenses and other liabilities 12,690 Contract liabilities 62 Others 80 Total liabilities 73,435 Total shareholders’ deficit (51,933 ) Years ended December 31, 2021 2022 (in thousands of US$) Revenue (note a) 30,979 30,371 Net loss (note a) (16,244 ) (4,349 ) Net cash (used in)/generated from operating activities (6,553 ) 858 Net cash used in investing activities (178 ) (430 ) Net cash generated from financing activities 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: FY21: USD 0.4 million and FY22: USD 0.5 million, while subsidiaries’ non-cash operating expenses would be higher by the following amounts: FY2021: USD 4.7 million and FY22: USD 2.5 million. The former VIEs did not have any material related party transactions except for the related party transactions which are disclosed in Note 22 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 Company has only one operating and reportable segment. The Company’s long-lived assets are substantially 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)/income during the period in which they occur. |
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 Company’s activities and is recorded net of value-added tax (“VAT”). The Company recognizes revenue in accordance with ASC 606 “Revenue from Contracts with Customers” for all years presented with full retrospective method. The Company conducts its business through various contracts with customers, including: (i) Data connectivity services The Company 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 Company 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 Company determines that the arrangement involves the leasing of portable Wi-Fi terminals with data connectivity services embedded. The Company determines that it is the lessor in the arrangement which contains an equipment lease component and a service non-lease component. The Company 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 Company 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 Company views users as its customers. For data connectivity services generated from sales of data connectivity services to enterprise customers, the Company views enterprise customers as its customers. The Company 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 Company 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 Company and the Company’s ability to direct the use of the data, and is further supported by the Company 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 Company does not have further performance obligations to the customers after the contract period. The Company 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 Company procures SIM cards and data plans from various suppliers. Those SIM cards are activated and hosted on the Company’s cloud SIM platform. The Company’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 Company’s data connectivity services. Accordingly, the Company 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 Company 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 Company’s data connectivity services are provided without right of return and the Company does not provide any other credit and incentive to its customers, therefore, the Company’s provision of data connectivity services does not involve variable consideration. (ii) Sales of terminals and data related products The Company 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 Company allocates the transaction price to each distinct performance obligation based on their relative standalone selling prices. The Company 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 Company 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 Company 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 Company 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 liabilities 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 Company, 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 thousand. For the years ended December 31, 2021, 2022 and 2023, revenue amounting to US$889 thousand, US$1,575 thousand and US$1,052 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 Company’s principal operations. |
Research and development expenses | 2.8 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 Company’s sales and marketing activities. Advertising and promotional expenses were US$2,846 thousand, US$2,217 thousand and US$3,923 thousand during the years ended December 31, 2021, 2022 and 2023, respectively. |
General and administrative expenses | 2.10 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 Company 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 Company 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 Company entered into a share restriction agreement with certain senior management and their respective wholly owned companies, which directly hold the equity interest in 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 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 Company applies the Binominal option pricing model in determining the fair value of options granted under ASC 718. The Company has elected to account for forfeitures when they occur. On each measurement date, the Company 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 Company, including the fair value of the underlying shares, expected life and expected volatility. The Company 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, 2021, 2022 and 2023, contributions to such plan amounting to US$3,074 thousand, US$1,909 thousand and US$708 thousand respectively, were charged to the consolidated statements of comprehensive (loss)/income. The Company 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 Company 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 Company 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 Company 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, 2021, 2022 and 2023. |
Government grants | 2.14 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 income/(loss) | Comprehensive income/(loss) Comprehensive income/(loss) is defined to include all changes in equity of the Company 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 Company’s comprehensive income/(loss) includes net income/(loss) and other comprehensive income/(loss), which mainly consists of the foreign currency translation adjustment that have been excluded from the determination of net income/(loss). |
Leases | 2.16 Leases The Company 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 Company has no significant finance leases. The Company 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 assets 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. |
Earnings/(loss) per share | Earnings/(loss) per share Basic earnings/(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 income/(loss) is allocated between different classes of ordinary shares based on their participating rights. Diluted earnings/(loss) per share is calculated by dividing net income/(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 Company’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) 2022 2023 Cash and cash equivalents 14,921 23,371 |
Inventories | 2.19 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$12 thousand, US$138 thousand and US$657 thousand were recorded in cost of revenues in the consolidated statements of comprehensive (loss)/income for the years ended December 31, 2021, 2022 and 2023 respectively. |
Accounts receivable, net | Accounts receivable, net Accounts receivable are presented net of allowance for doubtful accounts. The Company 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 Company 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 Company’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 Company assesses collectibility 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$4,519 thousand and US$4,201 thousand as of December 31, 2022 and 2023, respectively. |
Investment in equity method investees | Investment in equity method investees The equity investment represents the Company’s investment in three entities. The Company 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 Company 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 Company’s share of loss in the equity investee equals or exceeds its interest in the equity investee, the Company does not recognize further losses, unless the Company has incurred obligations or made payments or guarantees on behalf of the equity investee. The Company 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 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 income/(loss). |
Intangible assets | Intangible assets Intangible assets mainly consist of trademarks, 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 Company 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: Trademarks 10 years Software 10 years Licensed copyrights 10 years |
Equity securities without readily determinable fair values | 2.24 Equity securities without readily determinable fair values The Company measures the long-term investment over which the Company 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 Company 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 Company evaluates for impairment whenever events or changes indicate that the carrying amount of an asset may no longer be recoverable. The Company 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 Company 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, 2021 and 2023. For the year ended December 31, 2022, US$80 thousand of impairment was charged to a long-term investment to iQsim S.A. due to its bankruptcy. |
Software development costs | 2.26 Software development costs The Company 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 Company 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 Company 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 Company’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, 2021, 2022 and 2023, 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 investments | Other investments The Company’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)/income. |
Convertible promissory notes | 2.29 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) | 12 Months Ended |
Dec. 31, 2023 | |
Organization and principal activities [Abstract] | |
Schedule of Principal Subsidiaries | As of December 31, 2023, the details of the Company’s principal subsidiaries and former VIEs were as follows: Entity Place of Date of Relationship % of Principal activities UCLOUDLINK (HK) LIMITED Hong Kong 2 September 2014 Subsidiary 100 % Holding company HONG KONG UCLOUDLINK NETWORK TECHNOLOGY LIMITED Hong Kong 25 October 2010 Subsidiary 100 % Holding company, Shenzhen Ucloudlink Technology Limited PRC 9 July 2015 Subsidiary 100 % Technology research Shenzhen uCloudlink Co., Ltd. PRC 7 June 2018 Subsidiary 100 % Hardware exportation Beijing uCloudlink Technology Co., Ltd. (“Beijing uCloudlink”) PRC 29 January 2015 Subsidiary 100 % Holding company UCLOUDLINK (SINGAPORE) PTE.LTD 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 Technology Co., Ltd. (“Shenzhen uCloudlink”) PRC 14 August 2014 Subsidiary and Consolidated former VIE 100 % Holder of value-added Beijing uCloudlink New Technology Co., Ltd. (“Beijing Technology”) PRC 15 November 2014 Subsidiary and Consolidated former VIE 100 % Information technology PT UCLOUDLINK TECHNOLOGIES PMA 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., Ltd. PRC 22 February 2022 Subsidiary 100 % Sales and marketing |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of Assets, Liabilities, Results of Operations and Changes in Cash and Cash Equivalents of the Former VIEs | 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 (in thousands of US$) Cash and cash equivalents 1,951 Accounts receivable, net 474 Amounts due from subsidiaries 12,766 Property and equipment and intangible assets 775 Others 5,536 Total assets 21,502 Short term borrowings 574 Amounts due to parent and subsidiaries 60,029 Accounts payable, accrued expenses and other liabilities 12,690 Contract liabilities 62 Others 80 Total liabilities 73,435 Total shareholders’ deficit (51,933 ) Years ended December 31, 2021 2022 (in thousands of US$) Revenue (note a) 30,979 30,371 Net loss (note a) (16,244 ) (4,349 ) Net cash (used in)/generated from operating activities (6,553 ) 858 Net cash used in investing activities (178 ) (430 ) Net cash generated from financing activities 5,290 1,230 |
Schedule of Cash and Cash Equivalents | December 31, December 31, (In thousands) 2022 2023 Cash and cash equivalents 14,921 23,371 |
Schedule of Estimated Useful Lives | 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 |
Schedule of Amortization of 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: Trademarks 10 years Software 10 years Licensed copyrights 10 years |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenues [Abstract] | |
Schedule of Revenues | Years ended December 31, (In thousands) 2021 2022 2023 Revenues from services —Data connectivity services 26,430 35,483 46,745 International data connectivity services 21,672 28,085 37,928 Local data connectivity services 4,758 7,398 8,817 —PaaS and SaaS services 10,770 9,819 10,425 —Others 598 926 1,400 37,798 46,228 58,570 Sales of products —Sales of terminals 27,408 21,748 24,369 —Sales of data related products 5,843 3,230 2,150 —Others 2,775 255 487 36,026 25,233 27,006 Total 73,824 71,461 85,576 |
Schedule of Disaggregation of Revenue | In the following table, revenue is geographically disaggregated according to the locations of the customers. Years ended December 31, (In thousands) 2021 2022 2023 Japan 35,883 28,088 37,122 North America 24,183 27,183 24,074 Southeast Asia 4,173 4,912 4,605 Mainland China 3,842 1,883 11,156 Hong Kong SAR 2,199 4,166 1,660 Europe 1,845 3,361 4,207 Others 1,457 1,264 1,884 Taiwan 242 604 868 Total 73,824 71,461 85,576 |
Other Expenses, Net (Tables)
Other Expenses, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Expenses, Net [Abstract] | |
Schedule of Other Expense, Net | Years ended December 31, (In thousands) 2021 2022 2023 Foreign exchange losses, net (1,106 ) (2,519 ) (514 ) Government grants (note) 1,012 935 1,120 Gains on disposal of property and equipment, net 94 215 203 Fair value losses on other investments (12,363 ) (12,958 ) (2,748 ) Others 487 62 439 Total (11,876 ) (14,265 ) (1,500 ) |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Taxation [Abstract] | |
Schedule of (Loss)/income before Income Taxes | The Company’s (loss)/income before income taxes consisted of: Years ended December 31, (In thousands) 2021 2022 2023 Non-PRC (28,212 ) (15,397 ) (2,149 ) PRC (17,872 ) (4,367 ) 4,673 Total (46,084 ) (19,764 ) 2,524 |
Schedule of Reconciliations of the Income Tax Expenses | The reconciliations of the income tax expenses for the years ended December 31, 2021, 2022 and 2023 were as follows: Years ended December 31, (In thousands) 2021 2022 2023 (Loss)/income before income tax (46,084 ) (19,764 ) 2,524 Income tax computed at statutory PRC income tax rate (25%) (i) (11,521 ) (4,941 ) 631 Differential income tax rates applicable to certain entities comprising the Company 4,061 1,791 74 Effect of tax holiday 1,786 469 (448 ) Permanent differences (ii) 1,826 2,100 (174 ) Change in valuation allowance 5,405 1,569 133 Accelerated deductions on research and development expenses (iii) (1,313 ) (827 ) (146 ) Income tax expenses 244 161 70 (i) The PRC statutory income tax rate was used because the majority of the Company’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. |
Schedule of Per Share Effect of the Tax Holidays | The per share effect of the tax holidays are as follows: Years ended December 31, (In thousands) 2021 2022 2023 Effect of tax holiday 1,786 469 (448 ) Per share effect – basic and diluted (0.01 ) (0.00 ) (0.00 ) |
Schedule of Components of the Deferred Tax Assets | The components of the deferred tax assets are as follows: Years ended December 31, (In thousands) 2021 2022 2023 Deferred tax assets Net operating loss carryforwards 14,808 19,814 19,187 Accrued expenses and others 427 (3,010 ) (2,250 ) Less: valuation allowance (15,235 ) (16,804 ) (16,937 ) Net deferred tax assets — — — |
Schedule of Movement of Valuation Allowance | Movement of valuation allowance Years ended December 31, (In thousands) 2021 2022 2023 Balance at beginning of the year 9,830 15,235 16,804 Change of valuation allowance 5,405 1,569 133 Balance at end of the year 15,235 16,804 16,937 |
Share-Based Awards (Tables)
Share-Based Awards (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Awards [Abstract] | |
Schedule of Compensation Expense Recognized for Share-Based Awards | Compensation expense recognized for share-based awards was as follow: Years ended December 31, Share-based compensation expenses (In thousands) 2021 2022 2023 —Restricted Shares (a) 5,573 1,006 1,999 —Share options (b) 3,184 2,092 1,316 Total 8,757 3,098 3,315 (a) Restricted Shares (b) Share options |
Schedule of Restricted Shares Activity | A summary of the Restricted Shares activity for the years ended December 31, 2021, 2022 and 2023 is presented below: (Number of shares) Number of Outstanding as of January 1, 2021 — Granted 6,261,100 Forfeited (345,000 ) Vested (3,000,000 ) Outstanding as of December 31, 2021 2,916,100 Granted 8,822,010 Vested (3,767,180 ) Outstanding as of December 31, 2022 7,970,930 Granted 6,655,170 Forfeited (1,000,000 ) Vested (5,629,400 ) Outstanding as of December 31, 2023 7,996,700 |
Schedule of Changes in the Share Options Granted | A summary of the changes in the share options granted by the Company during the years ended December 31, 2021, 2022 and 2023 is as follows: Number of Weighted Aggregate Outstanding as of January 1, 2021 22,298,757 $ 0.54 $ 57,082,970 Granted 820,000 $ 0.68 $ 171,820 Forfeited (1,973,636 ) $ 0.56 $ (3,388,792 ) Exercised (1,919,760 ) $ 0.52 $ (5,939,067 ) Outstanding as of December 31, 2021 19,225,361 $ 0.54 $ 47,926,931 Exercisable as of December 31, 2021 13,478,069 $ 0.55 $ 38,703,590 Granted 716,420 $ 0.81 $ (458,564 ) Forfeited (1,936,841 ) $ 0.74 $ (2,428,038 ) Outstanding as of December 31, 2022 18,004,940 $ 0.53 $ 45,040,329 Exercisable as of December 31, 2022 14,644,270 $ 0.54 $ 39,789,170 Forfeited (885,560 ) $ 0.56 $ (2,409,012 ) Exercised (97,200 ) $ 0.50 $ (302,604 ) Outstanding as of December 31, 2023 17,022,180 $ 0.53 $ 42,328,713 Exercisable as of December 31, 2023 14,301,480 $ 0.54 $ 38,503,322 |
Schedule of Fair Value of Share Options Granted | Assumptions used to determine the fair value of share options granted during the years ended December 31, 2021, 2022 and 2023 is summarized in the following table: Years ended December 31, (In thousands) 2021 2022 2023 Risk-free interest rate (i) 1.22%-1.52 % 0.90%-1.67 % N/A Expected dividend yield (ii) 0.00 % 0.00 % N/A Expected volatility (iii) 35.01%-36.00 % 29.44%-34.81 % N/A Grant date fair value 0.06-$0.65 0.00-$0.0044 N/A (i) Risk-free interest rate is based on the yields of United States Treasury securities with maturities similar to the expected life of the share options in effect at the time of grant. (ii) Expected dividend yield is assumed to be 0% as the Company has no history or expectation of paying dividend on its ordinary shares. (iii) Expected volatility is assumed based on the historical volatility of the Company’s comparable companies in the period equal to the expected life of each grant. |
Earnings_(Loss) Per Share (Tabl
Earnings/(Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings/(Loss) Per Share [Abstract] | |
Schedule of Basic and Diluted Net (Loss)/Earnings Per Share | Basic and diluted net (loss)/earnings per share for each of the year presented were calculated as follows: Years ended December 31, (In thousands of US$ except share data and per share data) 2021 2022 2023 Numerator: Net (loss)/income (46,041 ) (19,853 ) 2,811 Net (loss)/income attributable to ordinary shareholders of the Company for computing basic and diluted net (loss)/earnings per share (46,041 ) (19,853 ) 2,811 Denominator: Weighted average number of ordinary shares outstanding used In calculating basic and diluted net (loss)/earnings per share 285,979,036 312,485,140 371,726,318 Basic and diluted net (loss)/earnings per ordinary share (0.16 ) (0.06 ) 0.01 |
Schedule of Diluted Earnings Per Share | Diluted earnings per share do not include the following instruments as their inclusion would have been anti-dilutive: Years ended December 31, 2021 2022 2023 Restricted Shares 2,916,100 7,970,930 7,996,700 Share options awards 19,225,361 18,004,940 17,022,180 Total 22,141,461 25,975,870 25,018,880 |
Cash and Cash Equivalents and_2
Cash and Cash Equivalents and Short-Term Deposit (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Cash and Cash Equivalents and Short-Term Deposit [Abstract] | |
Schedule of Cash on Hand and Cash Held at Bank Balance And Short-Term Deposit | Cash on hand and cash held at bank balance and short-term deposit as of December 31, 2022 and 2023 primarily consist of the following currencies: December 31, 2022 December 31, 2023 (In thousands) Original US$ Original US$ US$ 6,276 6,276 8,290 8,290 RMB 27,129 3,895 80,717 11,396 JPY 448,139 3,370 241,249 1,710 HKD 5,411 695 2,611 334 Others 882 1,641 Total 15,118 23,371 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounts Receivable, Net [Abstract] | |
Schedule of Accounts Receivable, Net | Accounts receivable, net (In thousands) December 31, December 31, Accounts receivable 10,480 10,690 Less: Allowance for doubtful accounts (4,519 ) (4,201 ) Accounts receivable, net 5,961 6,489 |
Schedule of Presents Movement in the Allowance for Doubtful Accounts | The following table presents movement in the allowance for doubtful accounts: (In thousands) December 31, December 31, December 31, Balance at beginning of the year 3,289 3,350 4,519 Additions 67 1,273 668 Reversal (22 ) (26 ) (806 ) Written off — — (142 ) Exchange difference 16 (78 ) (38 ) Balance at end of the year 3,350 4,519 4,201 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventories [Abstract] | |
Schedule of Inventories | (In thousands) December 31, December 31, Raw materials 1,971 1,655 Finished goods 2,401 1,909 Less: write-down of obsolete inventories (748 ) (1,381 ) Total inventories 3,624 2,183 |
Prepayments and Other Assets (T
Prepayments and Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Prepayments and Other Assets [Abstract] | |
Schedule of Prepayments and Other Assets | (In thousands) December 31, December 31, Prepayments 2,850 4,057 Deposits 1,215 1,330 VAT recoverable 715 1,061 Others 163 196 Total of prepayments and other assets 4,943 6,644 |
Schedule of Current and Non Current Prepayments and Other Assets | (In thousands) December 31, December 31, Current 4,255 6,416 Non-current 688 228 Total of prepayments and other assets 4,943 6,644 |
Long-Term Investments (Tables)
Long-Term Investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Long-Term Investments [Abstract] | |
Schedule of Long-Term Investments | As of December 31, 2022 (In thousands) Original Cumulative Impairment Exchange Carrying Maya 442 (442 ) — — — Huaxiang 1,251 515 — (55 ) 1,711 iQsim S.A. 245 (156 ) (80 ) (9 ) — Total 1,938 (83 ) (80 ) (64 ) 1,711 As of December 31, 2023 (In thousands) Original Cumulative Dividend Impairment Exchange Carrying Maya 442 (442 ) — — — — Huaxiang 1,251 872 (83 ) — (84 ) 1,956 iQsim S.A. 245 (156 ) — (80 ) (9 ) — Total 1,938 274 (83 ) (80 ) (93 ) 1,956 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property and Equipment, Net [Abstract] | |
Schedule of Property and Equipment | Property and equipment consist of the following: (In thousands) December 31, December 31, Computers 460 509 Server & switch 1,283 1,268 Office equipment 1,754 1,727 Wi-Fi terminals for data connectivity services 7,762 8,420 Leasehold improvement 536 531 Total original costs 11,795 12,455 Less: accumulated depreciation (10,614 ) (10,022 ) Carrying amount 1,181 2,433 |
Lease (Tables)
Lease (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Lease [Abstract] | |
Schedule of Right-of-Use Asset, Net and Current Lease Liabilities | The following table presents balances reported in the consolidated balance sheets related to the Company’s leases: (In thousands) December 31, December 31, Right-of-use assets, net 206 2,321 Current operating lease liabilities 184 1,082 Non-current operating lease liabilities — 1,286 |
Schedule of Lease Cost | The following table presents operating lease cost reported in the consolidated statements of comprehensive (loss)/income related to the Company’s leases: (In thousands) December 31, December 31, Operating lease cost 238 973 Short-term lease cost 1,191 931 Total 1,429 1,904 |
Schedule of Reconciles the Undiscounted Cash Flows | The following table reconciles the undiscounted cash flows of the Company’s leases as of December 31, 2023 to the present value of its operating lease payments: For the year ending December 31 (In thousands) 2024 1,147 2025 965 2026 297 2027 64 Total undiscounted operating lease payments 2,473 Less: imputed interest (105 ) Present value of operating lease liabilities 2,368 |
Schedule of Other Supplemental Information | The following summarizes other supplemental information about the Company's lease as of December 31, 2023. As of Weighted average discount rate 4.76 % Weighted average remaining lease term 2.3 years |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets, Net [Abstract] | |
Schedule of Intangible Asset, Net | (In thousands) Carrying Accumulated Net December 31, 2022 Software 1,118 (405 ) 713 Trademarks 114 (81 ) 33 Licensed copyrights 171 (115 ) 56 Intangible assets 1,403 (601 ) 802 (In thousands) Carrying Accumulated Net December 31, 2023 Software 1,099 (507 ) 592 Trademarks 112 (91 ) 21 Licensed copyrights 169 (130 ) 39 Intangible assets 1,380 (728 ) 652 |
Schedule of Estimated Aggregate Amortization Expenses | The estimated aggregate amortization expenses for each of the five succeeding fiscal years and thereafter are as follows: Year (In thousands) 2024 138 2025 126 2026 108 2027 103 2028 70 Thereafter 107 Total 652 |
Other Investments (Tables)
Other Investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Investments [Abstract] | |
Schedule of Other Investments | (In thousands) December 31, December 31, Current (i) (ii) (iii) 11,690 7,613 (i) In June 2020, the Company made an investment in an investment fund, which was classified as an equity security, for a cash consideration of US$15,000 thousand, for which the underlying assets were mainly comprised of debt securities and equity securities. It is redeemable at the option of the Company with one (ii) In June 2020, the Company made an investment in an investment fund, which was classified as a debt security carried at fair value, for a cash consideration of US$17,100 thousand, for which the underlying assets were mainly comprised of unlisted bonds and subordinated debentures, for a period of 3 years. The debt security was measured and recorded at fair value on a recurring basis based on the quoted price by the asset management company, which was the executable transaction prices and the amounts that redemption and new purchases can be made and classified as level 2 inputs. There was a fair value loss of US$7,415 thousand for the year ended December 31,2022 and a fair value loss of US$3,314 thousand for the year ended December 31, 2023. In December, 2023, the Company fully redeemed the investment with amount of US$1.3 million. (iii) In October 2022, the Company purchased a publicly traded stock of 100 shares for a cash consideration of JPY364,148 on the Japanese stock market. As of December 31, 2023, the fair value of the investment was US$3 thousand (JPY364,148). |
Accounts Payable, Accrued Exp_2
Accounts Payable, Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounts Payable, Accrued Expenses and Other Liabilities [Abstract] | |
Schedule of Accounts Payable, Accrued Expenses and Other Liabilities | (In thousands) December 31, December 31, Accounts payable to suppliers 6,832 5,314 Accrued bonus and staff costs 20,256 21,199 Other deposits 1,026 832 Other taxes payable (note) 461 345 Accrued professional fees 1,462 1,166 Accrued marketing expenses 101 177 Others 708 1,036 Total 30,846 30,069 |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Short-Term Borrowings [Abstract] | |
Schedule of Short-Term Borrowings | Short-term borrowings (In thousands) December 31, December 31, Current Bank borrowings (i) 2,842 2,756 Other borrowings (ii) 34 2,541 Total 2,876 5,297 (i) The Company’s short-term bank borrowings are primarily used for working capital and business development purposes and bear interest rate of 3.20% ~ 3.55% (2022: 4.00% ~ 5.55%) per annum, with a weighted average interest rate of 3.38% (2022: 4.86%) per annum. Certain bank borrowings are guaranteed by certain of our directors, certain legal representative, certain subsidiary and other company as of December 31, 2022 and 2023. (ii) In March 2022, the Company entered into an eleven-month financing agreement with an independent third-party finance lease company amounting to US$194 thousand with equivalent equipment of the Company pledged. The interest rate is 5.6% per annum. The Company has fully repaid the amount and the balance is nil In December 2023, the Company entered into two one-year financing agreement with two independent third-party financial institutes amounting to US$2,541 thousand with two patents pledged and certain director and subsidiaries guaranteed. The interest rate ranged from 4.9% to 4.96% per annum. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Relationship with Material Related Parties | As of December 31, 2023, the name and relationship with material related parties are as follows: Related Party 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 | During the years ended December 31, 2021, 2022 and 2023, other than disclosed elsewhere, the Company had the following material related party transactions: Years ended December 31, (In thousands) 2021 2022 2023 Revenue from provision of data connectivity services, PaaS and SaaS services and sales of terminals and data related products: Maya 9,370 6,202 10,770 Beijing Huaxianglianxin Technology Company 984 334 36 Purchase of data connectivity service: Maya 26 4 2 Beijing Huaxianglianxin Technology Company 87 6 — |
Schedule of Related Parties Balances | The Company had the following related parties balances as of December 31, 2022 and December 31, 2023: (In thousands) December 31, December 31, Deposits received from related parties: Maya 1,238 1,055 Contract liability: Maya 222 175 Amounts payable to related parties: Maya 1 — Beijing Huaxianglianxin Technology Company 20 20 Amounts receivable from related parties: Maya 684 2,943 Beijing Huaxianglianxin Technology Company 14 2 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies [Abstract] | |
Schedule of Commitments for Lease Ancillary Services Fees | The Company also has commitments including commitments for lease ancillary services fees. Year (In thousands) 2024 39 2025 16 Total 55 |
Additional Information_ Conde_2
Additional Information: Condensed Financial Statements of the Company (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Additional Information: Condensed Financial Statements of the Company [Abstract] | |
Schedule of Condensed Statements of Comprehensive Loss of the Parent Company | Condensed statements of comprehensive loss of the parent company Years ended December 31, (Amounts expressed in thousands of US$ except for number of shares and per share data) 2021 2022 2023 Operating expenses (10,399 ) (4,289 ) (3,919 ) Loss before income tax (10,266 ) (4,472 ) (3,284 ) (Loss)/income from subsidiaries and former VIEs (35,775 ) (15,381 ) 6,095 Net (loss)/income (46,041 ) (19,853 ) 2,811 |
Schedule of Condensed Balance Sheets of the Parent Company | Condensed balance sheets of the parent company As of December 31, (Amounts expressed in thousands of US$ except for number of shares and per share data) 2022 2023 Cash and cash equivalents 463 107 Amounts due from subsidiaries 127,308 127,282 Others — 15 Total assets 127,771 127,404 Accounts payable, accrued expenses and other liabilities 397 58 Deficit in subsidiaries 113,938 106,746 Others 204 146 Amounts due to subsidiaries 3,683 3,633 Total liabilities 118,222 110,583 Total shareholders’ equity 9,549 16,821 |
Schedule of Condensed Statement of Cash Flows of the Parent Company | Condensed statement of cash flows of the parent company Years ended December 31, (Amounts expressed in thousands of US$ except for number of shares and per share data) 2021 2022 2023 Cash flows from operating activities Net cash used in operating activities (1,483 ) (3,355 ) (605 ) Cash flows from investing activities Intercompany fund transfers (3,000 ) — 200 Net cash (used in)/generated from investing activities (3,000 ) — 200 Cash flows from financing activities Proceeds from exercise of share options 1,284 — 49 Proceeds from issuance of convertible bonds — 4,735 — Redemption of convertible bonds — (1,050 ) — Net cash generated from financing activities 1,284 3,685 49 (Decrease)/increase in cash, cash equivalents and restricted cash (3,199 ) 330 (356 ) Cash, cash equivalents and restricted cash at beginning of year 3,332 133 463 Cash, cash equivalents and restricted cash at end of year 133 463 107 |
Organization and Principal Ac_3
Organization and Principal Activities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Organization and principal activities [Abstract] | ||
Settle obligations Of VIEs amounting | $ 3.8 | $ 3.8 |
Organization and Principal Ac_4
Organization and Principal Activities (Details) - Schedule of Principal Subsidiaries | 12 Months Ended |
Dec. 31, 2023 | |
UCLOUDLINK (HK) LIMITED [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [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] | |
Subsidiary of Limited Liability Company or Limited Partnership [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] | |
Subsidiary of Limited Liability Company or Limited Partnership [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] | |
Subsidiary of Limited Liability Company or Limited Partnership [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] | |
Subsidiary of Limited Liability Company or Limited Partnership [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] | |
Subsidiary of Limited Liability Company or Limited Partnership [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] | |
Subsidiary of Limited Liability Company or Limited Partnership [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] | |
Subsidiary of Limited Liability Company or Limited Partnership [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] | |
Subsidiary of Limited Liability Company or Limited Partnership [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] | |
Subsidiary of Limited Liability Company or Limited Partnership [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] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Place of incorporation | PRC |
Date of incorporation | Aug. 14, 2014 |
Relationship | Subsidiary and Consolidated former VIE |
% of direct or indirect economic ownership | 100% |
Principal activities | Holder of value-added telecommunications services license, information technology services and sales of terminals and data related products |
Beijing uCloudlink New Technology Co., Ltd. (“Beijing Technology”) [Member] | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Place of incorporation | PRC |
Date of incorporation | Nov. 15, 2014 |
Relationship | Subsidiary and Consolidated former VIE |
% 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] | |
Subsidiary of Limited Liability Company or Limited Partnership [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] | |
Subsidiary of Limited Liability Company or Limited Partnership [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] | |
Subsidiary of Limited Liability Company or Limited Partnership [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_3
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | |
Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Percentage of voting power | 50% | ||||
Number of operating segments | 1 | ||||
Contract liabilities | $ 889 | ||||
Revenue included in contract liability | $ 1,052 | $ 1,575 | $ 889 | ||
Advertising and promotional expenses | 3,923 | 2,217 | 2,846 | ||
Contributions by employer to plan | 708 | 1,909 | 3,074 | ||
Inventory write-downs | 657 | 138 | 12 | ||
Allowance for doubtful accounts | 4,201 | 4,519 | 3,350 | $ 3,289 | |
Asset impairment | 80 | ||||
Minimum [Member] | |||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||
VIEs’ non-cash operating expenses | 500 | 400 | |||
Maximum [Member] | |||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||
VIEs’ non-cash operating expenses | $ 2,500 | $ 4,700 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of Assets, Liabilities, Results of Operations and Changes in Cash and Cash Equivalents of the Former VIEs - VIEs [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Condensed Financial Statements, Captions [Line Items] | ||
Cash and cash equivalents | $ 1,951 | |
Accounts receivable, net | 474 | |
Amounts due from subsidiaries | 12,766 | |
Property and equipment and intangible assets | 775 | |
Others | 5,536 | |
Total assets | 21,502 | |
Short term borrowings | 574 | |
Amounts due to parent and subsidiaries | 60,029 | |
Accounts payable, accrued expenses and other liabilities | 12,690 | |
Contract liabilities | 62 | |
Others | 80 | |
Total liabilities | 73,435 | |
Total shareholders’ deficit | (51,933) | |
Revenue (note a) | 30,371 | $ 30,979 |
Net (loss)/income | (4,349) | (16,244) |
Net cash (used in)/generated from operating activities | 858 | (6,553) |
Net cash used in investing activities | (430) | (178) |
Net cash generated from financing activities | $ 1,230 | $ 5,290 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of Cash and Cash Equivalents - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Cash and Cash Equivalents [Abstract] | ||
Cash and cash equivalents | $ 23,371 | $ 14,921 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of Estimated Useful Lives | 12 Months Ended |
Dec. 31, 2023 | |
Computers, server & switch and office equipment [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property and equipment | 5 years |
Wi-Fi terminals for data connectivity services [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property and equipment | 2 years |
Leasehold Improvements [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | Over the shorter of lease term or 3 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Details) - Schedule of Amortization of Finite-Lived Intangible Assets | Dec. 31, 2023 |
Trademarks [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of Amortization of Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, estimated useful lives | 10 years |
Software [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of Amortization of Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, estimated useful lives | 10 years |
Licensed copyrights [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of Amortization of Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, estimated useful lives | 10 years |
Revenues (Details) - Schedule o
Revenues (Details) - Schedule of Revenues - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues from services | |||
Total revenues | $ 85,576 | $ 71,461 | $ 73,824 |
Data connectivity services [Member] | |||
Revenues from services | |||
Total revenues | 46,745 | 35,483 | 26,430 |
International data connectivity services [Member] | |||
Revenues from services | |||
Total revenues | 37,928 | 28,085 | 21,672 |
Local data connectivity services [Member] | |||
Revenues from services | |||
Total revenues | 8,817 | 7,398 | 4,758 |
PaaS and SaaS services [Member] | |||
Revenues from services | |||
Total revenues | 10,425 | 9,819 | 10,770 |
Others [Member] | |||
Revenues from services | |||
Total revenues | 1,400 | 926 | 598 |
Revenues from services [Member] | |||
Revenues from services | |||
Total revenues | 58,570 | 46,228 | 37,798 |
Sales of terminals [Member] | |||
Revenues from services | |||
Total revenues | 24,369 | 21,748 | 27,408 |
Sales of data related products [Member] | |||
Revenues from services | |||
Total revenues | 2,150 | 3,230 | 5,843 |
Other One [Member] | |||
Revenues from services | |||
Total revenues | 487 | 255 | 2,775 |
Sales of products [Member] | |||
Revenues from services | |||
Total revenues | $ 27,006 | $ 25,233 | $ 36,026 |
Revenues (Details) - Schedule_2
Revenues (Details) - Schedule of Disaggregation of Revenue - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 85,576 | $ 71,461 | $ 73,824 |
Japan [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 37,122 | 28,088 | 35,883 |
North America [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 24,074 | 27,183 | 24,183 |
Southeast Asia [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 4,605 | 4,912 | 4,173 |
Mainland China [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 11,156 | 1,883 | 3,842 |
Hong Kong SAR [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,660 | 4,166 | 2,199 |
Europe [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 4,207 | 3,361 | 1,845 |
Others [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,884 | 1,264 | 1,457 |
Taiwan [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 868 | $ 604 | $ 242 |
Other Expenses, Net (Details) -
Other Expenses, Net (Details) - Schedule of Other Expense, Net - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Other Expense, Net [Abstract] | |||
Foreign exchange losses, net | $ (514) | $ (2,519) | $ (1,106) |
Government grants (note) | 1,120 | 935 | 1,012 |
Gains on disposal of property and equipment, net | 203 | 215 | 94 |
Fair value losses on other investments | (2,748) | (12,958) | (12,363) |
Others | 439 | 62 | 487 |
Total | $ (1,500) | $ (14,265) | $ (11,876) |
Taxation (Details)
Taxation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jan. 01, 2008 | Dec. 31, 2023 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |
Taxation [Line Items] | |||||
Unified corporate income tax rate | 25% | ||||
Preferential tax rate | 15% | 15% | |||
Preferential tax rate extension period | 3 years | 3 years | |||
Net operating loss carryforwards (in Dollars) | $ 129,654 | $ 134,896 | $ 100,986 | ||
Minimum [Member] | |||||
Taxation [Line Items] | |||||
Statutory income tax rate | 15% | ||||
Carry-over period | 5 years | ||||
Maximum [Member] | |||||
Taxation [Line Items] | |||||
Statutory income tax rate | 25% | ||||
Carry-over period | 10 years | ||||
Hong Kong [Memner] | |||||
Taxation [Line Items] | |||||
Statutory income tax rate | 16.50% | ||||
Shenzhen Ucloudlink Technology Limited [Member] | |||||
Taxation [Line Items] | |||||
Preferential tax rate | 15% | 15% | |||
Preferential tax rate extension period | 3 years |
Taxation (Details) - Schedule o
Taxation (Details) - Schedule of (Loss)/income before Income Taxes - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of (Loss)/income before Income Taxes [Abstract] | |||
Non-PRC | $ (2,149) | $ (15,397) | $ (28,212) |
PRC | 4,673 | (4,367) | (17,872) |
Total | $ 2,524 | $ (19,764) | $ (46,084) |
Taxation (Details) - Schedule_2
Taxation (Details) - Schedule of Reconciliations of the Income Tax Expenses - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Schedule of Reconciliations of the Income Tax Expenses [Abstract] | ||||
(Loss)/income before income tax | $ 2,524 | $ (19,764) | $ (46,084) | |
Income tax computed at statutory PRC income tax rate (25%) | [1] | 631 | (4,941) | (11,521) |
Differential income tax rates applicable to certain entities comprising the Company | 74 | 1,791 | 4,061 | |
Effect of tax holiday | (448) | 469 | 1,786 | |
Permanent differences | [2] | (174) | 2,100 | 1,826 |
Change in valuation allowance | 133 | 1,569 | 5,405 | |
Accelerated deductions on research and development expenses | [3] | (146) | (827) | (1,313) |
Income tax expenses | $ 70 | $ 161 | $ 244 | |
[1] The PRC statutory income tax rate was used because the majority of the Company’s operations are based in the PRC. Permanent differences primarily represent non-deductible expenses. This amount represents tax incentives relating to the research and development expenses of certain major operating subsidiaries in the PRC. |
Taxation (Details) - Schedule_3
Taxation (Details) - Schedule of Reconciliations of the Income Tax Expenses (Parentheticals) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Reconciliations of the Income Tax Expenses [Abstract] | |||
Statutory PRC income tax rate | 25% | 25% | 25% |
Taxation (Details) - Schedule_4
Taxation (Details) - Schedule of Per Share Effect of the Tax Holidays - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Per Share Effect of the Tax Holidays [Abstract] | |||
Effect of tax holiday | $ (448) | $ 469 | $ 1,786 |
Per share effect – basic | $ 0 | $ 0 | $ (0.01) |
Taxation (Details) - Schedule_5
Taxation (Details) - Schedule of Per Share Effect of the Tax Holidays (Parentheticals) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Per Share Effect of the Tax Holidays [Abstract] | |||
Per share effect – diluted | $ 0 | $ 0 | $ (0.01) |
Taxation (Details) - Schedule_6
Taxation (Details) - Schedule of Components of the Deferred Tax Assets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets | ||||
Net operating loss carryforwards | $ 19,187 | $ 19,814 | $ 14,808 | |
Accrued expenses and others | (2,250) | (3,010) | 427 | |
Less: valuation allowance | (16,937) | (16,804) | (15,235) | $ (9,830) |
Net deferred tax assets |
Taxation (Details) - Schedule_7
Taxation (Details) - Schedule of Movement of Valuation Allowance - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Movement of Valuation Allowance [Abstract] | |||
Balance at beginning of the year | $ 16,804 | $ 15,235 | $ 9,830 |
Change of valuation allowance | 133 | 1,569 | 5,405 |
Balance at end of the year | $ 16,937 | $ 16,804 | $ 15,235 |
Ordinary shares (Details)
Ordinary shares (Details) $ / shares in Units, ¥ in Millions | 1 Months Ended | 12 Months Ended | |||||||||||||||||
Jun. 10, 2020 $ / shares shares | May 19, 2019 USD ($) $ / shares shares | Aug. 28, 2018 shares | Dec. 31, 2017 | Jun. 19, 2017 USD ($) $ / shares shares | Dec. 31, 2016 | Sep. 22, 2016 USD ($) shares | Nov. 25, 2015 USD ($) shares | Jan. 28, 2015 USD ($) $ / shares shares | Jan. 31, 2015 | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 $ / shares shares | Dec. 31, 2021 shares | Dec. 31, 2020 shares | Dec. 31, 2018 shares | Dec. 31, 2017 CNY (¥) shares | Dec. 31, 2019 shares | Mar. 22, 2018 shares | Jan. 01, 2016 $ / shares shares | |
Ordinary shares [Line Items] | |||||||||||||||||||
Prior to the completion of the IPO (in Dollars) | $ | $ 50,000 | ||||||||||||||||||
Common stock, shares authorized | 50,000,000 | ||||||||||||||||||
Common Stock, par or stated value per Share (in Dollars per share) | $ / shares | $ 0.001 | ||||||||||||||||||
Ordinary shares issued | 4,315,080 | 20,000,000 | 232,451,900 | 31,665,280 | |||||||||||||||
Common stock, shares, outstanding | |||||||||||||||||||
Total consideration (in Dollars) | $ | $ 9,788,652 | ||||||||||||||||||
Vesting period | 4 years | 5 years | |||||||||||||||||
Ordinary shares, vested | 5,629,400 | 3,767,180 | 3,000,000 | ||||||||||||||||
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 | ||||||||||||||||||
2018 Stock Option Scheme [Member] | |||||||||||||||||||
Ordinary shares [Line Items] | |||||||||||||||||||
Conversion of shares, basis | 55,980,360 | ||||||||||||||||||
Ordinary and Preferred Shares [Member] | |||||||||||||||||||
Ordinary shares [Line Items] | |||||||||||||||||||
Recast of shares par value (in Dollars per share) | $ / shares | 0.00005 | ||||||||||||||||||
Ordinary Shares [Member] | |||||||||||||||||||
Ordinary shares [Line Items] | |||||||||||||||||||
Converted shares | 35,004,220 | ||||||||||||||||||
Prior to the Completion of the IPO [Member] | |||||||||||||||||||
Ordinary shares [Line Items] | |||||||||||||||||||
Number of shares issued upon conversion | 122,072,980 | ||||||||||||||||||
IPO [Member] | Minimum [Member] | |||||||||||||||||||
Ordinary shares [Line Items] | |||||||||||||||||||
Dividend (in Dollars) | $ | $ 50,000 | ||||||||||||||||||
Shares issued | 1,000,000,000 | ||||||||||||||||||
(in Dollars per share) | $ / shares | $ 0.00005 | ||||||||||||||||||
IPO [Member] | Maximum [Member] | |||||||||||||||||||
Ordinary shares [Line Items] | |||||||||||||||||||
Dividend (in Dollars) | $ | $ 100,000 | ||||||||||||||||||
Shares issued | 2,000,000,000 | ||||||||||||||||||
(in Dollars per share) | $ / shares | $ 0.00005 | ||||||||||||||||||
Series A Preferred Stock [Member] | |||||||||||||||||||
Ordinary shares [Line Items] | |||||||||||||||||||
Ordinary shares issued | 4,000,000 | ||||||||||||||||||
Ordinary shares transferred fair value per share (in Dollars per share) | $ / shares | $ 0.88 | ||||||||||||||||||
Class A Ordinary Shares [Member] | |||||||||||||||||||
Ordinary shares [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 | |||||||||||||||||
Ordinary shares issued | 252,412,720 | 246,686,120 | |||||||||||||||||
Common stock, shares, outstanding | 252,412,720 | 246,686,120 | |||||||||||||||||
Shares were issued upon exercise of outstanding stock options | 576,720 | ||||||||||||||||||
Shares were issued upon vesting of restricted share | 5,629,400 | 3,767,180 | 3,000,000 | ||||||||||||||||
Ordinary Shares were issued for convertible debenture | 97,200 | 1,000,000 | |||||||||||||||||
Shares were issued for conversion of convertible debenture | 76,943,540 | ||||||||||||||||||
Class A Ordinary Shares [Member] | Ordinary Shares [Member] | |||||||||||||||||||
Ordinary shares [Line Items] | |||||||||||||||||||
Number of shares issued upon conversion | 76,943,540 | ||||||||||||||||||
Class A Ordinary Shares [Member] | Prior to the Completion of the IPO [Member] | |||||||||||||||||||
Ordinary shares [Line Items] | |||||||||||||||||||
Number of votes per ordinary share | 1 | ||||||||||||||||||
Class A Ordinary Shares [Member] | IPO [Member] | |||||||||||||||||||
Ordinary shares [Line Items] | |||||||||||||||||||
Common stock, shares, outstanding | 159,478,920 | ||||||||||||||||||
Converted shares | 110,378,920 | ||||||||||||||||||
Ordinary shares issued | 20,100,000 | ||||||||||||||||||
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 [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 | |||||||||||||||||
Ordinary shares issued | 122,072,980 | 122,072,980 | |||||||||||||||||
Common stock, shares, outstanding | 122,072,980 | 122,072,980 | |||||||||||||||||
Class B Ordinary Shares [Member] | Ordinary Shares [Member] | |||||||||||||||||||
Ordinary shares [Line Items] | |||||||||||||||||||
Number of shares issued upon conversion | |||||||||||||||||||
Class B Ordinary Shares [Member] | Prior to the Completion of the IPO [Member] | |||||||||||||||||||
Ordinary shares [Line Items] | |||||||||||||||||||
Number of votes per ordinary share | 15 | ||||||||||||||||||
Class B Ordinary Shares [Member] | IPO [Member] | |||||||||||||||||||
Ordinary shares [Line Items] | |||||||||||||||||||
Common stock, shares, outstanding | 122,072,980 | ||||||||||||||||||
ADS [Member] | IPO [Member] | |||||||||||||||||||
Ordinary shares [Line Items] | |||||||||||||||||||
Ordinary shares issued | 2,010,000 | ||||||||||||||||||
Stock options [Member] | Class A Ordinary Shares [Member] | |||||||||||||||||||
Ordinary shares [Line Items] | |||||||||||||||||||
Shares were issued upon exercise of outstanding stock options | 1,919,760 | ||||||||||||||||||
Board of Directors Chairman [Member] | Ordinary and Preferred Shares [Member] | |||||||||||||||||||
Ordinary shares [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 [Line Items] | |||||||||||||||||||
Ordinary shares issued | 8,400,000 | ||||||||||||||||||
Series A Share Purchase Agreement [Member] | Ordinary Shares [Member] | |||||||||||||||||||
Ordinary shares [Line Items] | |||||||||||||||||||
Total consideration (in Dollars) | $ | $ 4,056,206 | ||||||||||||||||||
Series A Share Purchase Agreement [Member] | Series A Preferred Stock [Member] | |||||||||||||||||||
Ordinary shares [Line Items] | |||||||||||||||||||
Total consideration (in Dollars) | $ | $ 25,000,000 | ||||||||||||||||||
A-1 SPA [Member] | |||||||||||||||||||
Ordinary shares [Line Items] | |||||||||||||||||||
Ordinary shares issued | 26,575,220 | ||||||||||||||||||
Total consideration (in Dollars) | $ | $ 21,555,470 | ||||||||||||||||||
Ordinary shares redemption price compounded annual interest rate | 10% | ||||||||||||||||||
A-2 SPA [Member] | |||||||||||||||||||
Ordinary shares [Line Items] | |||||||||||||||||||
Ordinary shares issued | 8,502,600 | ||||||||||||||||||
Total consideration (in Dollars) | $ | $ 10,000,000 | ||||||||||||||||||
Ordinary shares redemption price compounded annual interest rate | 12% | ||||||||||||||||||
Chaohui Chen [Member] | Class B Ordinary Shares [Member] | |||||||||||||||||||
Ordinary shares [Line Items] | |||||||||||||||||||
Common stock, shares, outstanding | 61,346,560 | ||||||||||||||||||
Zhiping Peng [Member] | Class B Ordinary Shares [Member] | |||||||||||||||||||
Ordinary shares [Line Items] | |||||||||||||||||||
Common stock, shares, outstanding | 60,726,420 | ||||||||||||||||||
Restricted Shares [Member] | |||||||||||||||||||
Ordinary shares [Line Items] | |||||||||||||||||||
Common Stock, par or stated value per Share (in Dollars per share) | $ / shares | $ 0.00005 | ||||||||||||||||||
Common stock, shares, outstanding | 162,897,778 | ||||||||||||||||||
Vesting period | 4 years | 5 years | |||||||||||||||||
Ordinary shares, vested | 44,426,667 | 44,426,667 |
Convertible Promissory Notes (D
Convertible Promissory Notes (Details) | 1 Months Ended | 12 Months Ended | ||||
Jan. 06, 2022 USD ($) | Oct. 31, 2022 USD ($) | Dec. 31, 2023 $ / shares shares | Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2023 $ / shares shares | May 19, 2019 $ / shares | |
Convertible Promissory Notes (Details) [Line Items] | ||||||
Ordinary shares, par value (in Dollars per share) | $ / shares | $ 0.001 | |||||
Ordinary shares issued (in Shares) | shares | 1,000,000 | 1,000,000 | ||||
Amortization | $ 149,000 | |||||
Convertible debenture principal redeemable amount | $ 1,000,000 | |||||
Convertible Promissory Notes [Member] | ||||||
Convertible Promissory Notes (Details) [Line Items] | ||||||
Principal amount | $ 5,000,000 | |||||
Debt purchase price percentage | 95% | |||||
Maturity date | 12 months | |||||
Interest rate | 5% | |||||
Conversion price per share (in Dollars per share) | $ / shares | $ 3.5 | |||||
Debt conversion rate | 85% | |||||
Beneficial conversion features | $ 939,376 | |||||
Class A Ordinary Shares [Member] | ||||||
Convertible Promissory Notes (Details) [Line Items] | ||||||
Ordinary shares, par value (in Dollars per share) | $ / shares | $ 0.00005 | $ 0.00005 | ||||
Class A Ordinary Shares [Member] | Convertible Promissory Notes [Member] | ||||||
Convertible Promissory Notes (Details) [Line Items] | ||||||
Conversion of ordinary shares (in Shares) | shares | 76,943,540 |
Share-Based Awards (Details)
Share-Based Awards (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||||||||||||||||||
May 31, 2023 | Jan. 01, 2023 | Nov. 30, 2022 | Aug. 30, 2022 | Mar. 01, 2022 | Feb. 11, 2022 | Jan. 27, 2022 | Jan. 01, 2022 | Jul. 01, 2021 | Feb. 26, 2021 | Jan. 27, 2021 | Aug. 03, 2020 | Aug. 12, 2019 | Sep. 22, 2016 | Jan. 28, 2015 | Oct. 31, 2021 | Nov. 27, 2020 | Apr. 27, 2020 | Jul. 31, 2019 | Dec. 31, 2018 | Jan. 31, 2015 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Share-Based Awards (Details) [Line Items] | |||||||||||||||||||||||||
Ordinary shares vesting period | 4 years | 5 years | |||||||||||||||||||||||
Number of granted share | 6,655,170 | 8,822,010 | 6,261,100 | ||||||||||||||||||||||
Granted shares | 716,420 | 820,000 | |||||||||||||||||||||||
Dividend rate | [1] | 0% | 0% | ||||||||||||||||||||||
Unrecognized share-based compensation expenses (in Dollars) | $ 353 | ||||||||||||||||||||||||
Common Stock [Member] | |||||||||||||||||||||||||
Share-Based Awards (Details) [Line Items] | |||||||||||||||||||||||||
Dividend rate | 0% | ||||||||||||||||||||||||
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] | |||||||||||||||||||||||||
Maximum aggregate number of ordinary shares can be issued | 55,980,360 | ||||||||||||||||||||||||
Granted shares | 1,000,000 | 5,414,300 | 200,000 | 4,963,017 | 12,187,420 | ||||||||||||||||||||
Revised 2018 [Member] | |||||||||||||||||||||||||
Share-Based Awards (Details) [Line Items] | |||||||||||||||||||||||||
Maximum aggregate number of ordinary shares can be issued | 40,147,720 | ||||||||||||||||||||||||
Granted shares | 100,000 | 680,000 | |||||||||||||||||||||||
Restricted Stock [Member] | |||||||||||||||||||||||||
Share-Based Awards (Details) [Line Items] | |||||||||||||||||||||||||
Ordinary shares vesting period | 4 years | 5 years | |||||||||||||||||||||||
Unrecognized share-based compensation expenses (in Dollars) | $ 1,123 | ||||||||||||||||||||||||
Restricted Stock [Member] | 2019 Plan [Member] | |||||||||||||||||||||||||
Share-Based Awards (Details) [Line Items] | |||||||||||||||||||||||||
Number of granted share | 5,530,000 | 1,125,170 | 2,000,000 | 6,485,990 | 172,500 | 163,520 | 239,600 | 3,304,000 | 2,717,500 | ||||||||||||||||
Total number of shares issued and outstanding rate | 1% | ||||||||||||||||||||||||
[1] Expected dividend yield is assumed to be 0% as the Company has no history or expectation of paying dividend on its ordinary shares. |
Share-Based Awards (Details) -
Share-Based Awards (Details) - Schedule of Compensation Expense Recognized for Share-Based Awards - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total compensation expense recognized | $ 3,315 | $ 3,098 | $ 8,757 | |
Restricted Shares [Member] | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total compensation expense recognized | [1] | 1,999 | 1,006 | 5,573 |
Share Options [Member] | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total compensation expense recognized | [2] | $ 1,316 | $ 2,092 | $ 3,184 |
[1] Restricted Shares Share options |
Share-Based Awards (Details) _2
Share-Based Awards (Details) - Schedule of Restricted Shares Activity - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Restricted Shares Activity [Abstract] | |||
Outstanding, Beginning balance | 7,970,930 | 2,916,100 | |
Granted | 6,655,170 | 8,822,010 | 6,261,100 |
Forfeited | (1,000,000) | (345,000) | |
Vested | (5,629,400) | (3,767,180) | (3,000,000) |
Outstanding, Ending balance | 7,996,700 | 7,970,930 | 2,916,100 |
Share-Based Awards (Details) _3
Share-Based Awards (Details) - Schedule of Changes in the Share Options Granted - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Changes in the Share Options Granted [Abstract] | |||
Number of share options outstanding, beginning balance | 18,004,940 | 19,225,361 | 22,298,757 |
Weighted average exercise price, outstanding, beginning balance | $ 0.53 | $ 0.54 | $ 0.54 |
Aggregate intrinsic value, beginning balance | $ 45,040,329 | $ 47,926,931 | $ 57,082,970 |
Number of share options, Granted | 716,420 | 820,000 | |
Weighted average exercise price, Granted | $ 0.81 | $ 0.68 | |
Aggregate intrinsic value, Granted | $ (458,564) | $ 171,820 | |
Number of share options, Forfeited | (885,560) | (1,936,841) | (1,973,636) |
Weighted average exercise price, Forfeited | $ 0.56 | $ 0.74 | $ 0.56 |
Aggregate intrinsic value, Forfeited | $ (2,409,012) | $ (2,428,038) | $ (3,388,792) |
Number of share options, Exercised | (97,200) | (1,919,760) | |
Weighted average exercise price, Exercised | $ 0.5 | $ 0.52 | |
Aggregate intrinsic value, Exercised | $ (302,604) | $ (5,939,067) | |
Number of share options, outstanding, ending balance | 17,022,180 | 18,004,940 | 19,225,361 |
Weighted average exercise price, outstanding, ending balance | $ 0.53 | $ 0.53 | $ 0.54 |
Aggregate intrinsic value, outstanding, ending balance | $ 42,328,713 | $ 45,040,329 | $ 47,926,931 |
Number of share options, Exercisable | 14,301,480 | 14,644,270 | 13,478,069 |
Weighted average exercise price, Exercisable | $ 0.54 | $ 0.54 | $ 0.55 |
Aggregate intrinsic value, Exercisable | $ 38,503,322 | $ 39,789,170 | $ 38,703,590 |
Share-Based Awards (Details) _4
Share-Based Awards (Details) - Schedule of Fair Value of Share Options Granted - $ / shares | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Share-Based Awards (Details) - Schedule of Fair Value of Share Options Granted [Line Items] | ||||
Expected dividend yield | [1] | 0% | 0% | |
Minimum [Member] | ||||
Share-Based Awards (Details) - Schedule of Fair Value of Share Options Granted [Line Items] | ||||
Risk-free interest rate | [2] | 0.90% | 1.22% | |
Expected dividend yield | ||||
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 Fair Value of Share Options Granted [Line Items] | ||||
Risk-free interest rate | [2] | 1.67% | 1.52% | |
Expected volatility | [3] | 34.81% | 36% | |
Grant date fair value (in Dollars per share) | $ 0.0044 | $ 0.65 | ||
[1] Expected dividend yield is assumed to be 0% as the Company has no history or expectation of paying dividend on its ordinary shares. 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. 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. |
Earnings_(Loss) Per Share (Deta
Earnings/(Loss) Per Share (Details) - Schedule of Basic and Diluted Net (Loss)/Earnings Per Share - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator: | |||
Net (loss)/income | $ 2,811 | $ (19,853) | $ (46,041) |
Net (loss)/income attributable to ordinary shareholders of the Company for computing basic net (loss)/earnings per share | $ 2,811 | $ (19,853) | $ (46,041) |
Denominator: | |||
Weighted average number of ordinary shares outstanding used In calculating basic net (loss)/earnings per share (in Shares) | 371,726,318 | 312,485,140 | 285,979,036 |
Basic net (loss)/earnings per ordinary share (in Dollars per share) | $ 0.01 | $ (0.06) | $ (0.16) |
Earnings_(Loss) Per Share (De_2
Earnings/(Loss) Per Share (Details) - Schedule of Basic and Diluted Net (Loss)/Earnings Per Share (Parentheticals) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of basic and diluted net loss per share [Abstract] | |||
Net (loss)/income attributable to ordinary shareholders of the Company for computing diluted net (loss)/earnings per share | $ 2,811 | $ (19,853) | $ (46,041) |
Weighted average number of ordinary shares outstanding used In calculating diluted net (loss)/earnings per share | 371,726,318 | 312,485,140 | 285,979,036 |
Diluted net loss per ordinary share | $ 0.01 | $ (0.06) | $ (0.16) |
Earnings_(Loss) Per Share (De_3
Earnings/(Loss) Per Share (Details) - Schedule of Diluted Earnings Per Share - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of basic and diluted net loss per share [Abstract] | |||
Total | 25,018,880 | 25,975,870 | 22,141,461 |
Restricted Shares [Member] | |||
Schedule of basic and diluted net loss per share [Abstract] | |||
Total | 7,996,700 | 7,970,930 | 2,916,100 |
Share Options Awards [Member] | |||
Schedule of basic and diluted net loss per share [Abstract] | |||
Total | 17,022,180 | 18,004,940 | 19,225,361 |
Cash and Cash Equivalents and_3
Cash and Cash Equivalents and Short-Term Deposit (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Cash and Cash Equivalents and Short-Term Deposit [Abstract] | ||
Short-term deposit | $ 197 |
Cash and Cash Equivalents and_4
Cash and Cash Equivalents and Short-Term Deposit (Details) - Schedule of Cash on Hand and Cash Held at Bank Balance And Short-Term Deposit - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Original currency [Member] | US$ [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Cash on hand and cash held at bank balance and short-term deposit | $ 8,290 | $ 6,276 |
Original currency [Member] | RMB [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Cash on hand and cash held at bank balance and short-term deposit | 80,717 | 27,129 |
Original currency [Member] | JPY [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Cash on hand and cash held at bank balance and short-term deposit | 241,249 | 448,139 |
Original currency [Member] | HKD [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Cash on hand and cash held at bank balance and short-term deposit | 2,611 | 5,411 |
US$ equivalent [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Cash on hand and cash held at bank balance and short-term deposit | 23,371 | 15,118 |
US$ equivalent [Member] | US$ [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Cash on hand and cash held at bank balance and short-term deposit | 8,290 | 6,276 |
US$ equivalent [Member] | RMB [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Cash on hand and cash held at bank balance and short-term deposit | 11,396 | 3,895 |
US$ equivalent [Member] | JPY [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Cash on hand and cash held at bank balance and short-term deposit | 1,710 | 3,370 |
US$ equivalent [Member] | HKD [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Cash on hand and cash held at bank balance and short-term deposit | 334 | 695 |
US$ equivalent [Member] | Others [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Cash on hand and cash held at bank balance and short-term deposit | $ 1,641 | $ 882 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - Schedule of Accounts Receivable, Net - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Accounts Receivable, Net [Abstract] | ||
Accounts receivable | $ 10,690 | $ 10,480 |
Less: Allowance for doubtful accounts | (4,201) | (4,519) |
Accounts receivable, net | $ 6,489 | $ 5,961 |
Accounts Receivable, Net (Det_2
Accounts Receivable, Net (Details) - Schedule of Presents Movement in the Allowance for Doubtful Accounts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Presents Movement in the Allowance for Doubtful Accounts [Abstract] | |||
Balance at beginning of the year | $ 4,519 | $ 3,350 | $ 3,289 |
Additions | 668 | 1,273 | 67 |
Reversal | (806) | (26) | (22) |
Written off | (142) | ||
Exchange difference | (38) | (78) | 16 |
Balance at end of the year | $ 4,201 | $ 4,519 | $ 3,350 |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of Inventories - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule Of Inventories Abstract | ||
Raw materials | $ 1,655 | $ 1,971 |
Finished goods | 1,909 | 2,401 |
Less: write-down of obsolete inventories | (1,381) | (748) |
Total inventories | $ 2,183 | $ 3,624 |
Prepayments and Other Assets (D
Prepayments and Other Assets (Details) - Schedule of Prepayments and Other Assets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of prepayments and other assets [Abstract] | ||
Prepayments | $ 4,057 | $ 2,850 |
Deposits | 1,330 | 1,215 |
VAT recoverable | 1,061 | 715 |
Others | 196 | 163 |
Total of prepayments and other assets | $ 6,644 | $ 4,943 |
Prepayments and Other Assets _2
Prepayments and Other Assets (Details) - Schedule of Current and Non Current Prepayments and Other Assets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Current and Non Current Prepayments and Other Assets [Abstract] | ||
Current | $ 6,416 | $ 4,255 |
Non-current | 228 | 688 |
Total of prepayments and other assets | $ 6,644 | $ 4,943 |
Long-Term Investments (Details)
Long-Term Investments (Details) € in Thousands, ¥ in Thousands, ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Sep. 30, 2020 CNY (¥) | Jan. 31, 2021 EUR (€) | Oct. 31, 2018 JPY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Oct. 31, 2022 | Mar. 31, 2022 | |
Long-Term Investments (Details) [Line Items] | |||||||
Interest percentage | 19.60% | ||||||
Consideration to acquire equity interest | € | € 200 | ||||||
Recognized the share of profit (in Dollars) | $ 357 | $ 228 | |||||
Recognized the share of loss (in Dollars) | 156 | ||||||
Impairment (in Dollars) | $ 80 | ||||||
Maya System Inc [Member] | |||||||
Long-Term Investments (Details) [Line Items] | |||||||
Interest percentage | 49% | ||||||
Consideration to acquire equity interest | ¥ | ¥ 49,000 | ||||||
Beijing Huaxianglianxin Technology Company [Member] | |||||||
Long-Term Investments (Details) [Line Items] | |||||||
Consideration to acquire equity interest | ¥ | ¥ 8,521 | ||||||
Equity interest | 10% | 9% | 9% | ||||
iQsim S.A. [Member] | |||||||
Long-Term Investments (Details) [Line Items] | |||||||
Equity interest | 31.25% |
Long-Term Investments (Detail_2
Long-Term Investments (Details) - Schedule of Long-Term Investments - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Equity Method Investments [Line Items] | ||
Original Cost | $ 1,938 | $ 1,938 |
Cumulative net gains /(losses) | 274 | (83) |
Impairment | (80) | (80) |
Exchange Difference | (93) | (64) |
Carrying value | 1,956 | 1,711 |
Dividend received | (83) | |
Maya [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Original Cost | 442 | 442 |
Cumulative net gains /(losses) | (442) | (442) |
Impairment | ||
Exchange Difference | ||
Carrying value | ||
Dividend received | ||
Huaxiang [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Original Cost | 1,251 | 1,251 |
Cumulative net gains /(losses) | 872 | 515 |
Impairment | ||
Exchange Difference | (84) | (55) |
Carrying value | 1,956 | 1,711 |
Dividend received | (83) | |
iQsim S.A [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Original Cost | 245 | 245 |
Cumulative net gains /(losses) | (156) | (156) |
Impairment | (80) | (80) |
Exchange Difference | (9) | $ (9) |
Carrying value | ||
Dividend received |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property and Equipment, Net [Abstract] | |||
Depreciation expenses | $ 985 | $ 839 | $ 2,022 |
Property and Equipment, Net (_2
Property and Equipment, Net (Details) - Schedule of Property and Equipment - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Property and Equipment [Line Items] | ||
Total original costs | $ 12,455 | $ 11,795 |
Less: accumulated depreciation | (10,022) | (10,614) |
Carrying amount | 2,433 | 1,181 |
Computers [Member] | ||
Schedule of Property and Equipment [Line Items] | ||
Total original costs | 509 | 460 |
Server & switch [Member] | ||
Schedule of Property and Equipment [Line Items] | ||
Total original costs | 1,268 | 1,283 |
Office equipment [Member] | ||
Schedule of Property and Equipment [Line Items] | ||
Total original costs | 1,727 | 1,754 |
Wi-Fi terminals for data connectivity services [Member] | ||
Schedule of Property and Equipment [Line Items] | ||
Total original costs | 8,420 | 7,762 |
Leasehold improvement [Member] | ||
Schedule of Property and Equipment [Line Items] | ||
Total original costs | $ 531 | $ 536 |
Lease (Details)
Lease (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Lease [Abstract] | ||
Rental expense | $ 1,904 | $ 1,429 |
Lease (Details) - Schedule of R
Lease (Details) - Schedule of Right-of-Use Asset, Net and Current Lease Liabilities - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule Of Right Of Use Asset Net And Current Lease Liabilities Abstract | ||
Right-of-use assets, net | $ 2,321 | $ 206 |
Current operating lease liabilities | 1,082 | 184 |
Non-current operating lease liabilities | $ 1,286 |
Lease (Details) - Schedule of L
Lease (Details) - Schedule of Lease Cost - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of consolidated statements of comprehensive loss related [Abstract] | ||
Operating lease cost | $ 973 | $ 238 |
Short-term lease cost | 931 | 1,191 |
Total | $ 1,904 | $ 1,429 |
Lease (Details) - Schedule of_2
Lease (Details) - Schedule of Reconciles the Undiscounted Cash Flows $ in Thousands | Dec. 31, 2023 USD ($) |
Schedule of Reconciles the Undiscounted Cash Flows [Abstract] | |
2024 | $ 1,147 |
2025 | 965 |
2026 | 297 |
2027 | 64 |
Total undiscounted operating lease payments | 2,473 |
Less: imputed interest | (105) |
Present value of operating lease liabilities | $ 2,368 |
Lease (Details) - Schedule of O
Lease (Details) - Schedule of Other Supplemental Information | Dec. 31, 2023 |
Schedule Of Other Supplemental Information Abstract | |
Weighted average discount rate | 4.76% |
Weighted average remaining lease term | 2 years 3 months 18 days |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Intangible Assets, Net [Abstract] | |||
Amortization of intangible assets | $ 136 | $ 142 | $ 143 |
Intangible Assets, Net (Detai_2
Intangible Assets, Net (Details) - Schedule of Intangible Asset, Net - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Carrying amount | $ 1,380 | $ 1,403 |
Accumulated amortization | (728) | (601) |
Net carrying amount | 652 | 802 |
Software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Carrying amount | 1,099 | 1,118 |
Accumulated amortization | (507) | (405) |
Net carrying amount | 592 | 713 |
Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Carrying amount | 112 | 114 |
Accumulated amortization | (91) | (81) |
Net carrying amount | 21 | 33 |
Licensed copyrights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Carrying amount | 169 | 171 |
Accumulated amortization | (130) | (115) |
Net carrying amount | $ 39 | $ 56 |
Intangible Assets, Net (Detai_3
Intangible Assets, Net (Details) - Schedule of Estimated Aggregate Amortization Expenses - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Estimated Aggregate Amortization Expenses [Abstract] | ||
2024 | $ 138 | |
2025 | 126 | |
2026 | 108 | |
2027 | 103 | |
2028 | 70 | |
Thereafter | 107 | |
Total | $ 652 | $ 802 |
Other Investments (Details)
Other Investments (Details) $ in Thousands | 12 Months Ended | ||||||
Jun. 30, 2020 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2023 JPY (¥) | Oct. 31, 2022 JPY (¥) | Oct. 22, 2022 shares | |
Other Investments (Details) [Line Items] | |||||||
Fair value of the investment | $ 3 | ||||||
Purchased traded stock (in Shares) | shares | 100 | ||||||
Cash consideration (in Yen) | ¥ | ¥ 364,148 | ||||||
Fair value investment | 3 | ¥ 364,148 | |||||
Investment Fund One [Member] | |||||||
Other Investments (Details) [Line Items] | |||||||
Fair value of the investment | $ 15,000 | 7,610 | |||||
Investment fund redemption notice period | 1 month | ||||||
Fair value loss | 5,543 | ||||||
Fair value gain | 566 | ||||||
Investment Fund Two [Member] | |||||||
Other Investments (Details) [Line Items] | |||||||
Fair value of the investment | $ 17,100 | ||||||
Fair value loss | 3,314 | $ 7,415 | |||||
Investment fund redemption period | 3 years | ||||||
Redeemed investment | $ 1,300 |
Other Investments (Details) - S
Other Investments (Details) - Schedule of Other Investments - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Other Investments [Abstract] | |||
Current | [1],[2],[3] | $ 7,613 | $ 11,690 |
[1] In June 2020, the Company made an investment in an investment fund, which was classified as a debt security carried at fair value, for a cash consideration of US$17,100 thousand, for which the underlying assets were mainly comprised of unlisted bonds and subordinated debentures, for a period of 3 years. The debt security was measured and recorded at fair value on a recurring basis based on the quoted price by the asset management company, which was the executable transaction prices and the amounts that redemption and new purchases can be made and classified as level 2 inputs. There was a fair value loss of US$7,415 thousand for the year ended December 31,2022 and a fair value loss of US$3,314 thousand for the year ended December 31, 2023. In December, 2023, the Company fully redeemed the investment with amount of US$1.3 million. In June 2020, the Company made an investment in an investment fund, which was classified as an equity security, for a cash consideration of US$15,000 thousand, for which the underlying assets were mainly comprised of debt securities and equity securities. It is redeemable at the option of the Company with one In October 2022, the Company purchased a publicly traded stock of 100 shares for a cash consideration of JPY364,148 on the Japanese stock market. As of December 31, 2023, the fair value of the investment was US$3 thousand (JPY364,148). |
Accounts Payable, Accrued Exp_3
Accounts Payable, Accrued Expenses and Other Liabilities (Details) - Schedule of Accounts Payable, Accrued Expenses and Other Liabilities - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Accounts Payable, Accrued Expenses and Other Liabilities [Abstract] | ||
Accounts payable to suppliers | $ 5,314 | $ 6,832 |
Accrued bonus and staff costs | 21,199 | 20,256 |
Other deposits | 832 | 1,026 |
Other taxes payable (note) | 345 | 461 |
Accrued professional fees | 1,166 | 1,462 |
Accrued marketing expenses | 177 | 101 |
Others | 1,036 | 708 |
Total | $ 30,069 | $ 30,846 |
Short-Term Borrowings (Details)
Short-Term Borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Short-Term Borrowings [Line Items] | ||||
Weighted average interest rate | 3.38% | 4.86% | ||
Finance lease (in Dollars) | $ 194 | |||
Interest rate | 5.60% | |||
Repaid short term debt (in Dollars) | $ 34 | $ 163 | ||
Other short term borrowings (in Dollars) | $ 2,541 | $ 212 | ||
Minimum [Member] | ||||
Short-Term Borrowings [Line Items] | ||||
Interest rate percentage | 3.20% | 4% | ||
Interest rate | 4.90% | |||
Maximum [Member] | ||||
Short-Term Borrowings [Line Items] | ||||
Interest rate percentage | 3.55% | 5.55% | ||
Interest rate | 4.96% | |||
Short-Term Debt [Member] | ||||
Short-Term Borrowings [Line Items] | ||||
Repaid short term debt (in Dollars) |
Short-Term Borrowings (Detail_2
Short-Term Borrowings (Details) - Schedule of Short-Term Borrowings - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Current | |||
Bank borrowings | [1] | $ 2,756 | $ 2,842 |
Other borrowings | [2] | 2,541 | 34 |
Total | $ 5,297 | $ 2,876 | |
[1]The Company’s short-term bank borrowings are primarily used for working capital and business development purposes and bear interest rate of 3.20% ~ 3.55% (2022: 4.00% ~ 5.55%) per annum, with a weighted average interest rate of 3.38% (2022: 4.86%) per annum.Certain bank borrowings are guaranteed by certain of our directors, certain legal representative, certain subsidiary and other company as of December 31, 2022 and 2023.[2]In March 2022, the Company entered into an eleven-month financing agreement with an independent third-party finance lease company amounting to US$194 thousand with equivalent equipment of the Company pledged. The interest rate is 5.6% per annum. The Company has fully repaid the amount and the balance is nil as of December 31, 2023.In December 2023, the Company entered into two one-year financing agreement with two independent third-party financial institutes amounting to US$2,541 thousand with two patents pledged and certain director and subsidiaries guaranteed. The interest rate ranged from 4.9% to 4.96% per annum. |
Related Party Transactions (Det
Related Party Transactions (Details) - Schedule of Relationship with Material Related Parties | 12 Months Ended |
Dec. 31, 2023 | |
Maya [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the Company | Equity method investee of the Company |
Beijing Huaxianglianxin Technology Company [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the Company | Equity method investee of the Company |
iQsim S.A. [Member] | |
Related Party Transaction [Line Items] | |
Relationship with the Company | Equity method investee of the Company |
Related Party Transactions (D_2
Related Party Transactions (Details) - Schedule of Related Party Transactions - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Maya [Member] | |||
Revenue from provision of data connectivity services, PaaS and SaaS services and sales of terminals and data related products: | |||
Revenue from provision of data connectivity services | $ 10,770 | $ 6,202 | $ 9,370 |
Purchase of data connectivity service: | |||
Purchase of data connectivity service | 2 | 4 | 26 |
Beijing Huaxianglianxin Technology Company [Member] | |||
Revenue from provision of data connectivity services, PaaS and SaaS services and sales of terminals and data related products: | |||
Revenue from provision of data connectivity services | 36 | 334 | 984 |
Purchase of data connectivity service: | |||
Purchase of data connectivity service | $ 6 | $ 87 |
Related Party Transactions (D_3
Related Party Transactions (Details) - Schedule of Related Parties Balances - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Maya [Member] | ||
Related Party Transactions (Details) - Schedule of Related Parties Balances [Line Items] | ||
Deposits received from related parties | $ 1,055 | $ 1,238 |
Contract liability | 175 | 222 |
Amounts payable to related parties | 1 | |
Amounts receivable from related parties | 2,943 | 684 |
Beijing Huaxianglianxin Technology Company [Member] | ||
Related Party Transactions (Details) - Schedule of Related Parties Balances [Line Items] | ||
Amounts payable to related parties | 20 | 20 |
Amounts receivable from related parties | $ 2 | $ 14 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands, ¥ in Millions | Aug. 31, 2018 USD ($) | Aug. 31, 2018 CNY (¥) | Dec. 31, 2023 USD ($) |
Commitments and Contingencies [Abstract] | |||
Future minimum purchase commitment, 2024 | $ 3,299 | ||
Future minimum purchase commitment, 2025 | 1,121 | ||
Future minimum purchase commitment, 2026 | $ 109 | ||
Claimed damage | $ 1,600 | ¥ 10.5 |
Commitments and Contingencies_3
Commitments and Contingencies (Details) - Schedule of Commitments for Lease Ancillary Services Fees - Ancillary Services Fees [Member] $ in Thousands | Dec. 31, 2023 USD ($) |
Commitments and Contingencies (Details) - Schedule of Commitments for Lease Ancillary Services Fees [Line Items] | |
2024 | $ 39 |
2025 | 16 |
Total | $ 55 |
Restricted Net Assets (Details)
Restricted Net Assets (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Restricted Net Assets (Details) [Line Items] | |
Percentage of general reserve fund of registered capital | 50% |
Restricted net assets (in Dollars) | $ 105,852 |
Restricted net assets exceeded percentage | 25% |
PRC [Member] | |
Restricted Net Assets (Details) [Line Items] | |
Percentage of income after tax to reserve | 10% |
Impact of COVID-19 (Details)
Impact of COVID-19 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Impact of COVID-19 [Abstract] | |||
Net cash provided by operating activities | $ 6,507 | $ 4,404 | $ (21,738) |
Additional Information_ Conde_3
Additional Information: Condensed Financial Statements of the Company (Details) | Dec. 31, 2023 |
Additional Information: Condensed Financial Statements of the Company [Abstract] | |
Net assets | 25% |
Additional Information_ Conde_4
Additional Information: Condensed Financial Statements of the Company (Details) - Schedule of Condensed Statements of Comprehensive Loss of the Parent Company - Parent [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Condensed Statements of Comprehensive Loss of the Parent Company [Line Items] | |||
Operating expenses | $ (3,919) | $ (4,289) | $ (10,399) |
Loss before income tax | (3,284) | (4,472) | (10,266) |
(Loss)/income from subsidiaries and former VIEs | 6,095 | (15,381) | (35,775) |
Net (loss)/income | $ 2,811 | $ (19,853) | $ (46,041) |
Additional Information_ Conde_5
Additional Information: Condensed Financial Statements of the Company (Details) - Schedule of Condensed Balance Sheets of the Parent Company - Parent [Member] - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Condensed Balance Sheets of the Parent Company [Line Items] | ||
Cash and cash equivalents | $ 107 | $ 463 |
Amounts due from subsidiaries | 127,282 | 127,308 |
Others | 15 | |
Total assets | 127,404 | 127,771 |
Accounts payable, accrued expenses and other liabilities | 58 | 397 |
Deficit in subsidiaries | 106,746 | 113,938 |
Others | 146 | 204 |
Amounts due to subsidiaries | 3,633 | 3,683 |
Total liabilities | 110,583 | 118,222 |
Total shareholders’ equity | $ 16,821 | $ 9,549 |
Additional Information_ Conde_6
Additional Information: Condensed Financial Statements of the Company (Details) - Schedule of Condensed Statement of Cash Flows of the Parent Company - Parent [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities | |||
Net cash used in operating activities | $ (605) | $ (3,355) | $ (1,483) |
Cash flows from investing activities | |||
Intercompany fund transfers | 200 | (3,000) | |
Net cash (used in)/generated from investing activities | 200 | (3,000) | |
Cash flows from financing activities | |||
Proceeds from exercise of share options | 49 | 1,284 | |
Proceeds from issuance of convertible bonds | 4,735 | ||
Redemption of convertible bonds | (1,050) | ||
Net cash generated from financing activities | 49 | 3,685 | 1,284 |
(Decrease)/increase in cash, cash equivalents and restricted cash | (356) | 330 | (3,199) |
Cash, cash equivalents and restricted cash at beginning of year | 463 | 133 | 3,332 |
Cash, cash equivalents and restricted cash at end of year | $ 107 | $ 463 | $ 133 |