Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2021shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2021 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | UCLOUDLINK GROUP INC. |
Entity Central Index Key | 0001775898 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Shell Company | false |
Entity Interactive Data Current | Yes |
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 |
Entity Address, Postal Zip Code | 00000 |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Registration Statement | false |
ICFR Auditor Attestation Flag | false |
Document Accounting Standard | U.S. GAAP |
Entity Bankruptcy Proceedings, Reporting Current | false |
Auditor Firm ID | 1424 |
Auditor Name | PricewaterhouseCoopers Zhong Tian LLP |
Auditor Location | Shenzhen, the People’s Republic of China |
Class A Ordinary Shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 164,975,400 |
Title of 12(b) Security | Class A ordinary shares, par valueUS$0.00005 per share |
Security Exchange Name | NASDAQ |
No Trading Symbol Flag | true |
Class B Ordinary Shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 122,072,980 |
American Depositary Shares | |
Document Information [Line Items] | |
Title of 12(b) Security | American depositary shares (one American depositary share representing ten Class A ordinary shares, par value US$0.00005 per share) |
Trading Symbol | UCL |
Security Exchange Name | NASDAQ |
Business Contact | |
Document Information [Line Items] | |
Entity Address, Address Line One | Unit 2214-Rm1, 22/F, Mira Place Tower A |
Entity Address, Address Line Two | 132 Nathan Road, Tsim Sha Tsui |
Entity Address, City or Town | Kowloon |
Entity Address, Country | HK |
Entity Address, Postal Zip Code | 00000 |
Contact Personnel Name | Yimeng Shi |
City Area Code | +852 |
Local Phone Number | 2180-6111 |
Contact Personnel Email Address | ir@ucloudlink.com |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues | $ 73,824 | $ 89,569 | $ 158,381 |
Cost of revenues | (51,990) | (61,264) | (93,463) |
Gross profit | 21,834 | 28,305 | 64,918 |
Research and development expenses | (13,697) | (26,359) | (15,108) |
Sales and marketing expenses | (13,620) | (29,261) | (24,367) |
General and administrative expenses | (28,551) | (43,221) | (20,224) |
Other income/(expense), net | (11,876) | 7,554 | 290 |
Income/(loss) from operations | (45,910) | (62,982) | 5,509 |
Interest income | 14 | 37 | 193 |
Interest expenses | (188) | (285) | (438) |
Income/(loss) before income tax | (46,084) | (63,230) | 5,264 |
Income tax expenses | (244) | (185) | (57) |
Share of profit in equity method investments, net of tax | 287 | ||
Net income/(loss) | (46,041) | (63,415) | 5,207 |
Accretion of Series A Preferred Shares | (1,293) | (2,540) | |
Income allocation to participating preferred shareholders | (296) | ||
Net income/(loss) attributable to ordinary shareholders of the Company | (46,041) | (64,708) | 2,371 |
Net income/(loss) | (46,041) | (63,415) | 5,207 |
Foreign currency translation adjustment | (17) | (1,135) | 32 |
Total comprehensive income/(loss) | $ (46,058) | $ (64,550) | $ 5,239 |
Net income/(loss) per share attributable to ordinary shareholders of the Company | |||
Basic and diluted | $ (0.16) | $ (0.25) | $ 0.01 |
Weighted average number of ordinary shares used in computing net income/(loss) per share | |||
Basic and diluted | 285,979,036 | 259,852,204 | 232,178,037 |
Revenues from Services | |||
Revenues | $ 37,798 | $ 46,150 | $ 91,110 |
Sale of Products | |||
Revenues | 36,026 | 43,419 | 67,271 |
Cost of Services | |||
Cost of revenues | (21,556) | (26,392) | (35,594) |
Cost of Products Sold | |||
Cost of revenues | $ (30,434) | $ (34,872) | $ (57,869) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 7,868 | $ 21,989 |
Restricted cash | 8,237 | |
Short-term deposit | 196 | 196 |
Accounts receivable, net | 14,923 | 6,745 |
Inventories | 6,133 | 5,847 |
Prepayments and other assets | 6,225 | 7,477 |
Amounts due from related parties | 1,153 | 2,264 |
Other investments | 12,587 | 19,185 |
Total current assets | 49,085 | 71,940 |
Non-current assets: | ||
Long-term investments | 1,867 | 1,306 |
Property and equipment, net | 1,796 | 3,029 |
Intangible assets, net | 1,009 | 1,039 |
Other investments | 12,058 | 17,824 |
Prepayments | 1,310 | 2,116 |
Total non-current assets | 18,040 | 25,314 |
Total assets | 67,125 | 97,254 |
Current liabilities: | ||
Short term borrowings (including nil and US$941 thousands from the consolidated VIEs, without recourse to the Company as of December 31, 2020 and 2021, respectively) | 3,177 | 3,704 |
Accrued expenses and other liabilities (including US$10,733 thousands and US$12,424 thousands from the consolidated VIEs, without recourse to the Company as of December 31, 2020 and 2021, respectively) | 27,580 | 25,742 |
Accounts payable (including US$3,543 thousands and US$4,034 thousands from the consolidated VIEs, without recourse to the Company as of December 31,2020 and 2021, respectively) | 12,986 | 8,701 |
Amounts due to related parties (including nil and US$18 thousands from the consolidated VIEs, without recourse to the Company as of December 31, 2020 and 2021, respectively) | 1,453 | 1,503 |
Contract liabilities (including US$215 thousands and US$89 thousands from the consolidated VIEs, without recourse to the Company as of December 31, 2020 and 2021, respectively) | 1,575 | 889 |
Total current liabilities | 46,771 | 40,539 |
Non-current liabilities: | ||
Other non-current liabilities | 262 | 321 |
Total non-current liabilities | 262 | 321 |
Total liabilities | 47,033 | 40,860 |
Commitments and contingencies | ||
Additional paid-in capital | 230,048 | 220,292 |
Accumulated other comprehensive loss | (446) | (429) |
Accumulated losses | (209,524) | (163,483) |
Total shareholders’ equity | 20,092 | 56,394 |
Total liabilities and shareholders’ equity | 67,125 | 97,254 |
Class A Ordinary Shares | ||
Non-current liabilities: | ||
Ordinary shares | 8 | 8 |
Class B Ordinary Shares | ||
Non-current liabilities: | ||
Ordinary shares | $ 6 | $ 6 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Short term borrowings | $ 3,177 | $ 3,704 |
Accrued Expenses And Other Current Liabilities | 27,580 | 25,742 |
Accounts Payable, Current | 12,986 | 8,701 |
Amounts due to related parties (including nil and US$18 thousands from the consolidated VIEs, without recourse to the Company as of December 31, 2020 and 2021, respectively) | 1,453 | 1,503 |
Contract with Customer, Liability, Current | $ 1,575 | $ 889 |
Class A Ordinary Shares | ||
Common Stock, Par or Stated Value Per Share | $ 0.00005 | $ 0.00005 |
Common Stock, Shares Authorized | 1,700,000,000 | 1,700,000,000 |
Common Stock, Shares, Issued | 164,975,400 | 160,055,640 |
Common Stock, Shares, Outstanding | 164,975,400 | 160,055,640 |
Class B Ordinary Shares | ||
Common Stock, Par or Stated Value Per Share | $ 0.00005 | $ 0.00005 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares, Issued | 122,072,980 | 122,072,980 |
Common Stock, Shares, Outstanding | 122,072,980 | 122,072,980 |
VIEs | ||
Short term borrowings | $ 941 | |
Accrued Expenses And Other Current Liabilities | 12,424 | $ 10,733 |
Accounts Payable, Current | 4,034 | 3,543 |
Amounts due to related parties (including nil and US$18 thousands from the consolidated VIEs, without recourse to the Company as of December 31, 2020 and 2021, respectively) | 18 | |
Contract with Customer, Liability, Current | $ 89 | $ 215 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Class A Ordinary Shares | Senior Management | Ordinary shares | Ordinary sharesClass A Ordinary Shares | Ordinary sharesClass B Ordinary Shares | Ordinary sharesSenior Management | Ordinary sharesOther ConsultantsClass A Ordinary Shares | Additional Paid-in Capital | Additional Paid-in CapitalSenior Management | Cumulative Translation Adjustments | Accumulated Losses |
Beginning Balance at Dec. 31, 2018 | $ 16,599 | $ 11 | $ 121,189 | $ 674 | $ (105,275) | |||||||
Beginning balance, shares at Dec. 31, 2018 | 228,749,678 | |||||||||||
Foreign currency translation adjustment | 32 | 32 | ||||||||||
Net income (loss) for the year | 5,207 | 5,207 | ||||||||||
Conversion of Series A Preferred Shares upon IPO, shares | 29,000,000 | |||||||||||
Issuance of shares upon vesting of Restricted Shares | $ 169 | $ 169 | ||||||||||
Issuance of shares upon vesting of Restricted Shares, shares | 3,702,222 | |||||||||||
Accretion of Series A Preferred Shares | (2,540) | (2,540) | ||||||||||
Ending Balances at Dec. 31, 2019 | 19,467 | $ 11 | 118,818 | 706 | (100,068) | |||||||
Ending balance, shares at Dec. 31, 2019 | 232,451,900 | |||||||||||
Foreign currency translation adjustment | (1,135) | (1,135) | ||||||||||
Net income (loss) for the year | (63,415) | (63,415) | ||||||||||
Share-based compensation | 50,607 | 50,607 | ||||||||||
Redesignation of ordinary shares into Class A ordinary shares | $ (5) | $ 5 | ||||||||||
Redesignation of ordinary shares into Class A ordinary shares, shares | (110,378,920) | 110,378,920 | ||||||||||
Redesignation of ordinary shares into Class B ordinary shares | $ (6) | $ 6 | ||||||||||
Redesignation of ordinary shares into Class A ordinary shares, shares | (122,072,980) | 122,072,980 | ||||||||||
Issuance of ordinary shares upon Initial Public Offering (“IPO”) | 27,605 | $ 1 | 27,604 | |||||||||
Issuance of ordinary shares upon Initial Public Offering (IPO), shares | 20,100,000 | |||||||||||
Conversion of Series A Preferred Shares upon IPO | 24,270 | $ 2 | 24,268 | |||||||||
Conversion of Series A Preferred Shares upon IPO, shares | 29,000,000 | |||||||||||
Shares issued upon exercise of employee share options | 288 | 288 | ||||||||||
Shares issued upon exercise of employee share options, shares | 576,720 | |||||||||||
Accretion of Series A Preferred Shares | (1,293) | (1,293) | ||||||||||
Ending Balances at Dec. 31, 2020 | 56,394 | $ 8 | $ 6 | 220,292 | (429) | (163,483) | ||||||
Ending balance, 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, shares | 1,919,760 | |||||||||||
Issuance of shares upon vesting of Restricted Shares, shares | 3,000,000 | |||||||||||
Ending Balances at Dec. 31, 2021 | $ 20,092 | $ 8 | $ 6 | $ 230,048 | $ (446) | $ (209,524) | ||||||
Ending balance, shares at Dec. 31, 2021 | 164,975,400 | 122,072,980 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | |||
Net income/(loss) | $ (46,041) | $ (63,415) | $ 5,207 |
Adjustments to reconcile net income/(loss) to net cash generated from/(used in) operating activities | |||
Provision for bad debts | 40 | 2,794 | 175 |
Impairment for inventory obsolescence | 16 | 636 | 528 |
Depreciation of property and equipment | 2,022 | 2,174 | 2,954 |
Amortization of intangible assets | 143 | 94 | 90 |
Gains on disposals of property and equipment | (94) | (375) | (353) |
Interest expenses | 188 | 285 | 438 |
Share-based compensation | 8,757 | 50,607 | 169 |
Fair value (gains)/losses on other investments | 12,363 | (4,909) | |
Share of profit in equity method investments | (287) | ||
Foreign currency exchange losses, net | 1,106 | 182 | 607 |
Changes in operating assets and liabilities | |||
Accounts receivable | (8,239) | 16,228 | (9,311) |
Prepayments and other assets | 985 | 690 | 2,595 |
Inventories | (302) | 4,036 | 974 |
Accrued expenses, accounts payable and other liabilities | 5,917 | (9,273) | 6,343 |
Amounts due to related parties | (50) | 481 | (1,948) |
Amounts due from related parties | 1,111 | (1,572) | (692) |
Contract liabilities | 686 | (1,036) | (2,015) |
Other non-current liabilities | (59) | 335 | |
Net cash generated from/(used in) operating activities | (21,738) | (2,038) | 5,761 |
Cash flows from investing activities | |||
Purchase of property and equipment | (787) | (1,252) | (2,750) |
Purchase of intangible assets | (92) | (482) | (84) |
Proceeds from disposal of property and equipment | 193 | 230 | 190 |
Cash paid for equity method investment | (247) | ||
Cash paid for long-term investment | (811) | (430) | |
Increase in short-term deposit | (2) | (3) | (193) |
Purchase of other investments | (33,126) | ||
Net cash used in investing activities | (935) | (35,444) | (3,267) |
Cash flows from financing activities | |||
Repayments of other borrowings | (1,819) | (2,241) | |
Proceeds from bank borrowings | 11,419 | 3,674 | 8,953 |
Repayments of bank borrowings | (11,968) | (5,074) | (5,184) |
Proceeds from initial public offering, net of issuance costs | 29,904 | ||
Proceeds from exercise of share options | 1,284 | ||
Net cash generated from financing activities | 735 | 26,685 | 1,528 |
Increase/(decrease) in cash, cash equivalents and restricted cash | (21,938) | (10,797) | 4,022 |
Cash, cash equivalents and restricted cash at beginning of year | 30,226 | 40,274 | 36,627 |
Effect of exchange rates on cash, cash equivalents and restricted cash | (420) | 749 | (375) |
Cash, cash equivalents and restricted cash at end of year | 7,868 | 30,226 | 40,274 |
Supplemental disclosure of cash flow information | |||
Interest paid | $ (188) | (285) | (438) |
Supplemental disclosure on non-cash investing and financing activities: | |||
Accretion of Series A Preferred Shares | $ (1,293) | $ (2,540) |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Principal Activities | 1. Organization and principal activities (a) History and organization UCLOUDLINK GROUP INC. (the “Company”) was incorporated in the Cayman Islands on 25 August 2014 as an exempted company with limited liability under the Companies Law, Cap. 22 (Law 3 of 1961, as consolidated and revised) of the Cayman Islands. The Company through its consolidated subsidiaries and 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 during the year, the Company conducts its business operations in the PRC through its VIEs. (b) Principal subsidiaries and VIEs As of December 31, 2021, the details of the Company’s principal subsidiaries and VIEs were as follows: Entity Place of incorporation Date of incorporation Relationship % of direct or indirect economic ownership Principal activities UCLOUDLINK (HK) LIMITED Hong Kong 2 September 2014 Subsidiary 100 % Holding company HONG KONG UCLOUDLINK NETWORK TECHNOLOGY LIMITED Hong Kong 25 October 2010 Subsidiary 100 % Holding company, information technology services and sales of terminals and data related products Shenzhen Ucloudlink Technology Limited PRC 9 July 2015 Subsidiary 100 % Technology research and development 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 Consolidated VIE 100 % 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”) PRC 15 November 2014 Consolidated VIE 100 % Information technology services and sales of terminals and data related products 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 Refer to Note 2.3 for the consolidated financial information of the Company’s VIEs as of December 31, 2020 and December 31, 2021. 1. Organization and principal activities (Continued) (c) Variable Interest Entities 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 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 • 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. 1. Organization and principal activities (Continued) (c) Variable Interest Entities (Continued) (i) VIE agreements among Beijing uCloudlink, Shenzhen uCloudlink and its nominee shareholders (Continued) • 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 • 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 1. Organization and principal activities (Continued) (c) Variable Interest Entities (Continued) (ii) VIE agreements among Beijing uCloudlink, Beijing Technology and its nominee shareholders (Continued) • 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, US$3.8 million and US$3.8 million, as of December 31, 2019, 2020 and 2021, 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. 1. Organization and principal activities (Continued) (c) Variable Interest Entities (Continued) (iii) Risks in relation to the VIE structure (Continued) 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. 1. Organization and principal activities (Continued) (c) Variable Interest Entities (Continued) (iii) Risks in relation to the VIE structure (Continued) 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 is in the process of the restructuring to adjust its local business 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. The Company expects the restructuring will be completed in the third quarter of 2022 . Refer to Note 2.3 for the consolidated financial information of the Company’s VIEs as of December 31, 2019, 2020 and 2021. (d) Initial Public Offering On June 10, 2020, the Company completed its IPO on the Nasdaq Global Market. In the offering, 2,010,000 ADSs, representing 20,100,000 Class A ordinary shares, were issued and sold to the public at a price of US$18 per ADS. The net proceeds to the Company from the IPO, after deducting commissions and offering expenses, were approximately US$27.6 million. Immediately prior to the completion of the IPO, the Company completed the redesignation on a one-for-one basis of: (i) 122,072,980 ordinary shares beneficially owned by Mr. Chaohui Chen and Mr. Zhiping Peng into Class B ordinary shares, (ii) all of the remaining ordinary shares into Class A ordinary shares, (iii) the automatic conversion and the redesignation of all of the remaining issued and outstanding preferred shares on a one-for-one basis into Class A ordinary shares. In respect of all matters subject to shareholders’ vote, each holder of Class A ordinary share is entitled to one and each holder of Class B ordinary share is entitled to fifteen votes. (e) Liquidity The Group’s consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and liquidation of liabilities during the normal course of operations. The Group incurred loss from operations of US$63.0 million and US$45.9 million for the years ended December 31, 2020 and 2021 respectively Since the fourth quarter of 2021, the Group has taken actions to improve its liquidity, including implementing certain operational cost-cutting measures and obtaining funding from certain short-term bank borrowings and issuance of convertible debentures. In January 2022, the Group completed an issuance of convertible debentures through private placement with proceeds of US$4.7 million which will mature in twelve months from the issuance date. Management plans to maintain the Group’s operation scale and expects the Group’s international data connectivity services business will gradually recover with the resumption of global travel activities, and will closely monitor and manage the Group’s capital expenditures and operating expenses based on the Group’s working capital needs and cash flow position on an ongoing basis. Based on management’s liquidity assessment, which has considered the Group’s operations at the current business scale, the latest development of COVID-19 pandemic and its continuous impact on the Group’s business operations, the available funding from short-term bank borrowings and short term investments, and the available cash and cash equivalents, the Group will be able to meet its working capital requirements and capital expenditures in the ordinary course of business for the next twelve months from the issuance of these consolidated financial statements. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of significant accounting policies 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 Group 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 Group to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates, and such differences may be material to the consolidated financial statements. Significant accounting estimates reflected in the Company’s consolidated financial statements include legal contingencies, share-based compensation and realization of deferred tax assets. The Group bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. 2.3 Consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries, 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. 2. Summary of significant accounting policies (Continued) 2.3 Consolidation (Continued) The following table sets forth the assets, liabilities, results of operations and changes in cash and cash equivalents of the VIEs taken as a whole, which were included in the Company’s consolidated financial statements with intercompany balances and transactions eliminated between the VIEs: As of December 31, 2020 2021 (in thousands of US$) Cash and cash equivalents 1,734 293 Accounts receivable, net 1,450 1,333 Amounts due from subsidiaries 6,663 8,067 Property and equipment and intangible assets 2,311 1,195 Others 9,399 9,602 Total assets 21,557 20,490 Short term borrowings — 941 Amounts due to parent and subsidiaries 42,442 55,623 Accounts payable, accrued expenses and other liabilities 14,276 16,458 Contract liabilities 215 89 Others — 18 Total liabilities 56,933 73,129 Total shareholders’ deficit (35,376 ) (52,639 ) Years ended December 31, 2019 2020 2021 (in thousands of US$) Revenue (note a) 82,054 55,014 30,979 Net income/(loss) (note a) 3,160 (3,528 ) (16,244 ) Net cash used in operating activities (note b) (170 ) (4,933 ) (6,553 ) Net cash used in investing activities (2,697 ) (1,196 ) (178 ) Net cash generated from financing activities (note b) 3,726 2,988 5,290 Note: (a) Revenue and net income/(loss) incurred by the 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) The condensed financial information of the Group’s VIEs and subsidiaries of VIEs for the year ended December 31, 2019 and 2020 has been revised to reflect a reclassification adjustment on the presentation of cash flows between the Group’s VIEs and its other subsidiaries within the Group. Such cash flows were previously inappropriately presented under the operating activities of the condensed financial information of the Group’s VIEs and subsidiaries of VIEs. The condensed financial information has been revised to properly reflect the cash flows from other subsidiaries to the VIEs as financing activities amounted to US$3.9 million and US$7.7 million in FY19 and FY20, respectively. Management considered the revision is immaterial, the impact of the revision was eliminated in consolidation, and there is no impact on the previously reported consolidated financial position, results of operations or cash flows. (c) 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 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 VIEs. If these expenses had been pushed down to the subsidiaries and VIEs during the periods presented, the Company's non-cash operating expenses would be lower and the VIE's non-cash operating expenses would be higher by the following amounts: FY19: nil, FY20: USD14.8 million, and USD0.4 million while subsidiaries’ non-cash operating expenses would be higher by the following amounts: FY19: USD0.2 million, FY20: USD35.8 million, and FY2021: USD4.7 million. The 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. 2. Summary of significant accounting policies (Continued) 2.3 Consolidation (Continued) Under the contractual arrangements with the VIEs, the Company has the power to direct activities of the VIEs and can have assets transferred out of the VIEs under its control. Therefore, the Company considers that there is no asset in any of the VIEs that can be used only to settle obligations of the VIEs, except for registered capital. As all 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 VIEs. Unrecognized revenue-producing assets held by the 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. 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 Group has only one operating and reportable segment. The Group’s long-lived assets are substantially all 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 income/(loss) during the period in which they occur. 2.6 Mezzanine equity represents the Series A Preferred Shares issued by the Company. The Series A Preferred Shares are redeemable at the holders’ option any time after a certain date and were contingently redeemable upon the occurrence of certain liquidation events outside of the Group’s control. Therefore, the Group classifies the Series A Preferred Shares as mezzanine equity. In accordance with ASC 480-10, the mezzanine equity was initially measured based on its fair value at date of issue. Since the Series A Preferred Shares will be redeemable at the holder’s option after 5 years from issuance if the Series A Preferred Shares are not converted, either voluntarily or automatically upon a qualified initial public offering (“Qualified IPO”), the Group accretes changes in the redemption value over the period from the date of issuance to the earliest redemption date of the instrument using the effective interest method. Increase in carrying amount shall be recorded as charges against retained earnings or, in the absence of retained earnings, by charges against additional paid-in capital. In June 2020, all 29,000,000 issued and outstanding Series A Preferred Shares were converted into Class A ordinary shares upon the completion of the IPO. 2. Summary of significant accounting policies (Continued) 2. 7 Revenue is principally generated by the provision of data connectivity services and the sales of terminals and sales of data related products. Revenue represents the fair value of the consideration received or receivable for the sales of goods and the provision of services in the ordinary course of the Group’s activities and is recorded net of value-added tax (“VAT”). The Group recognizes revenue in accordance with ASC 606 “Revenue from Contracts with Customers” for all years presented with full retrospective method. The Group conducts its business through various contracts with customers, including: (i) Data connectivity services The Group generates international data connectivity services revenues from (i) data service fees from the use of portable Wi-Fi terminals (under its brand of “Roamingman”), (ii) data service fees generated from sales of data connectivity services to enterprise customers, and (iii) retail sales of data connectivity services. The Group also generates local data connectivity services revenues from (i) data service fees generated from sales of data connectivity services to enterprise customers, and (ii) retail sales of data connectivity services. For data connectivity services from the use of portable Wi-Fi terminals, the Group determines that the arrangement involves the leasing of portable Wi-Fi terminals with data connectivity services embedded. The Group determines that it is the lessor in the arrangement which contains an equipment lease component and a service non-lease component. The Group further determines that lease component is an operating lease under ASC 840, and that the operating lease component and service component are delivered over the same time and pattern. Therefore, the lease income and service income are recognized as data connectivity services revenue evenly over the service period. The Group evaluates and determines that it is the principal. For data connectivity services from the use of portable Wi-Fi terminals and retail sales of data connectivity services, the Group views users as its customers. For data connectivity services generated from sales of data connectivity services to enterprise customers, the Group views enterprise customers as its customers. The Group reports data connectivity services revenues on gross basis. Accordingly, the amounts paid for data connectivity services by customers are recorded as revenues and the related commission fees paid to its agents (mainly travel agents and other online distributors) are recorded as cost of revenues. Where the Group is the principal, it controls the data before the data connectivity service is provided to customers. Its control is evidenced by the inventory risk borne by the Group and the Group’s ability to direct the use of the data, and is further supported by the Group being primarily responsible to customers and having the discretion in establishing pricing. Data connectivity services offered to customers typically provide unlimited data usage during a fixed period of time (“contract period”), where revenue is recognized ratably on a straight-line basis over the contract period. The Group does not have further performance obligations to the customers after the contract period. The Group also offers data connectivity services where customers are charged service fee based on actual data usage, where revenue is recognized as the services are provided to customers. In providing data connectivity services to its customers, the Group procures SIM cards and data plans from various suppliers. Those SIM cards are activated and hosted on the Group’s cloud SIM platform. The Group’s cloud SIM platform manages terminal information and customer accounts and intelligently allocates the SIM cards and data plans and makes them available to customers who purchase the Group’s data connectivity services. Accordingly, the Group takes inventory risk and obtains control of the SIM cards and data plans procured and direct the use of the data on its cloud SIM platform depending on customers’ demand. The Group accounts for the SIM cards and data plans procured as costs of revenue as data is being made available and consumed on its cloud SIM platform. As the Group’s data connectivity services are provided without right of return and the Group does not provide any other credit and incentive to its customers, therefore, the Group’s provision of data connectivity services does not involve variable consideration. 2. Summary of significant accounting policies (Continued) 2. 7 (ii) Sales of terminals and data related products The Group generates revenues from selling tangible products, including GlocalMe portable Wi-Fi terminals, GlocalMe World Phone series and smartphones with GlocalMe Inside (“GMI”) implemented, as well as SIM cards, to enterprise and retail customers and business partners. Sales of terminals and data related products are recognized when control of promised goods is transferred to the customers, which generally occurs upon the acceptance of the goods by the customers. For sales of Wi-Fi terminals, one gigabyte of free data connectivity service is normally included as a bundle package for the first time purchase of the terminals. There are two separate performance obligations in such bundle sales as the Wi-Fi terminal is a distinct good while the data connectivity service is a distinct service. The Group allocates the transaction price to each distinct performance obligation based on their relative standalone selling prices. The Group then recognizes revenue for each of the distinct performance obligations identified in accordance with the applicable revenue recognition method relevant for that obligation. For revenue related to the Wi-Fi terminals, revenue is recognized when the control of the Wi-Fi terminals is transferred. For revenue related to the data connectivity service, it is recognized ratably on a straight-line basis over the relevant contract period. (iii) Provision of PaaS or SaaS services Platform-as-a-Service (PaaS) or Software-as-a-Service (SaaS) mainly consist of fees generated from providing cloud SIM platform as a service to business partners. The Group provides its cloud SIM platform as a service to business partners enabling them to manage their data resources. Business partners using the platform are charged service fees for the use of the cloud SIM platform services. The Group has continuous obligation to ensure the performance of the platform over the service period. Revenue is recognized ratably over the contract period as business partners simultaneously consume and receive benefits from the service. The Group does not provide any other credit and incentive related to the cloud SIM platform services, therefore there is no variable consideration in the arrangement. (iv) Contract balance Contract liabilities represent the cash collected upfront from the customers for purchase of data connectivity services or purchase of Wi-Fi terminals, while the underlying data connectivity services have not yet been rendered or the Wi-Fi terminals have not been delivered to the customers by the Group, which is included in the presentation of contract liabilities. Due to the generally short-term duration of the relevant contracts, all performance obligations are satisfied within one year. Where transaction prices for data connectivity services and Wi-Fi terminals are received upfront from the customers, such receipts are recorded as contract liabilities and recognized as revenues over the contract period. The opening balance of contract liabilities from several customers as of January 1, 2019 was US$3,940 thousands. For the year ended December 31, 2019, 2020 and 2021, revenue amounting to US$3,940 thousands, US$1,925 thousands and US$889 thousands were included in the contract liabilities balance at the beginning of the respective period. 2. 8 Cost of revenue Cost of revenue consists primarily of data connectivity service costs, cost of inventory, logistics costs, depreciation and maintenance costs for equipment, payment processing fees and other related incidental expenses that are directly attributable to the Group’s principal operations. 2. 9 Research and development expenses Research and development expenses primarily consist of salaries and benefits for research and development personnel, share-based compensation, materials, general expenses and depreciation expenses associated with research and development activities. 2. Summary of significant accounting policies (Continued) 2.1 0 Sales and marketing expenses Sales and marketing expenses consist primarily of online and offline advertising expenses, promotion expenses, share-based compensation, staff costs, sales commissions and other related incidental expenses that are incurred to conduct the Group’s sales and marketing activities. Advertising and promotional expenses were US$5,991 thousands, US$2,695 thousands and US$2,846 thousands during the years ended December 31, 2019, 2020 and 2021, respectively. 2.1 1 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 .1 2 Share-based compensation Share-based compensation expenses arise from share-based awards, mainly including Restricted Shares held by certain senior management (namely, Mr. Chaohui Chen, Mr. Zhiping Peng and Mr. Wen Gao), and share options and Restricted Shares awarded to employees, directors and other consultants in accordance with ASC 718 Stock Compensation. The Group follows ASC 718 to determine whether share option or Restricted Shares should be classified and accounted for as a liability award or equity award. All grants of share-based awards to employees, certain senior management and directors classified as equity awards are recognized in the financial statements based on their grant date fair values which are calculated using an option pricing model. The Group classifies the share-based awards granted to employees, certain senior management, directors and other consultants as equity award, and has elected to recognize compensation expense on share-based awards with service condition on a graded vesting basis over the requisite service period, which is generally the vesting period. The Group entered into a share restriction agreement with certain senior management and their respective wholly owned companies, which directly hold the equity interest in the Group. Pursuant to the share restriction agreement, all ordinary shares (“Restricted Shares”) of the Group held by certain senior management shall be subject to vesting conditions until the Restricted Shares become vested. The Restricted Shares were classified as equity awards under ASC 718 and are accounted for as share-based compensation based on the grant date fair value over the vesting period using graded vesting method. For share options awarded to employees, directors and other consultants, the Group applies the Binominal option pricing model in determining the fair value of options granted under ASC 718. The Group has elected to account for forfeitures when they occur. On each measurement date, the Group reviews internal and external sources of information to assist in the estimation of various attributes to determine the fair value of the share-based awards granted by the Group, including the fair value of the underlying shares, expected life and expected volatility. The Group is required to consider many factors and makes certain assumptions during this assessment. If any of the assumptions used to determine the fair value of the share-based awards change significantly in the future, share-based compensation expense may differ materially. 2.1 3 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, 2019, 2020 and 2021, contributions to such plan amounting to US$3,836 thousands, US$2,077 thousands and US$3,074 thousands respectively, were charged to the consolidated statements of comprehensive income/(loss). The Group also makes payments to other defined contribution plans for the benefit of employees employed by subsidiaries outside of the PRC. 2. Summary of significant accounting policies (Continued) 2.1 4 Income taxes The Group accounts for income taxes using the liability method, under which deferred income taxes are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized as income or expense in the period that includes the enactment date. Valuation allowance is provided on deferred tax assets to the extent that it is more likely than not that the asset will not be realizable in the foreseeable future. Deferred taxes are also recognized on the undistributed earnings of subsidiaries, which are presumed to be transferred to the parent company and are subject to withholding taxes, unless there is sufficient evidence to show that the subsidiary has invested or will invest the undistributed earnings indefinitely or that the earnings will be remitted in a tax-free manner. The Group adopts ASC 740 “Income Taxes” which prescribes a more likely than not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. It also provides guidance on derecognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods and income tax disclosures. The Group did not have significant unrecognized uncertain tax positions or any unrecognized liabilities, interest or penalties associated with unrecognized tax benefit as of and for the years ended December 31, 2019, 2020 and 2021. 2.1 5 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. 2.1 6 Leases Leases are classified as either capital or operating leases. Leases that transfer substantially all the benefits and risks incidental to the ownership of assets are accounted for as capital 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 wherein rental payments (net of any incentives received from the lessor) are recognized in the consolidated statements of comprehensive income/(loss) on a straight-line basis over the lease terms. 2.1 7 Comprehensive income/(loss) Comprehensive income/(loss) is defined to include all changes in equity of the Group during a period arising from transactions and other event and circumstances except those resulting from investments by shareholders and distributions to shareholders. For the years presented, the Group’s comprehensive 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). 2.1 8 Income/(loss) per share Basic income/(loss) per share is computed by dividing net income/(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 income/(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 Group’s convertible redeemable preferred shares, redeemable ordinary shares and convertible bonds using the if-converted method and shares issuable upon the exercise of share options using the treasury stock method. Ordinary equivalent shares are not included in the denominator of the diluted loss per share calculation when inclusion of such shares would be anti-dilutive. 2. Summary of significant accounting policies (Continued) 2. 19 Cash, cash equivalents and restricted cash 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. The Group adopted ASU No. 2016-18, Statement of Cash Flows: Restricted Cash (Topic 230) for all years presented. Restricted cash represents cash reserved in an escrow account for legal proceedings purpose (Note 23(c)), which is reported separately on the face of the consolidated balance sheets. Cash, cash equivalents and restricted cash as reported in the consolidated statement of cash flows are presented separately on the consolidated balance sheet as follows: December 31, December 31, (In thousands) 2020 2021 Cash and cash equivalents 21,989 7,868 Restricted cash 8,237 — Total 30,226 7,868 2.2 0 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$230 thousands, US$948 thousands and US$12 thousands were recorded in cost of revenues in the consolidated statements of comprehensive income/(loss) for the years ended December 31, 2019, 2020 and 2021 respectively. 2.2 1 Accounts receivable, net Accounts receivable are presented net of allowance for doubtful accounts. The Group evaluates the creditworthiness of each customer at the time when services are rendered or products are sold and continuously monitor the recoverability of the accounts receivable. The Group uses specific identification method in providing for bad debts when facts and circumstances indicate that collection is doubtful and a loss is probable and estimable. If the financial conditions of its customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances might be required. The allowance for doubtful accounts is based on the best facts available and is re-evaluated and adjusted on a regular basis as additional information is received. Some of the factors that the Group considers in determining whether a bad debt allowance is recorded on an individual customer are: (i) the customer’s past payment history and whether it fails to comply with its payment schedule; (ii) whether the customer is in financial difficulty due to economic or legal factors; (iii) a significant dispute with the customer has occurred; (iv) the objective evidence which indicates non-collectability of the accounts receivable. 2. Summary of significant accounting policies (Continued) 2.2 2 Investment in equity method investees The equity investment represents the Group’s investment in three entities. The Group accounts for its equity investment over which it has significant influence but does not own a majority equity interest or otherwise control using the equity method. The Group adjusts the carrying amount of the investment and recognizes investment income or loss for share of the earnings or loss of the investee after the date of investment. When the Group’s share of loss in the equity investee equals or exceeds its interest in the equity investee, the Group does not recognize further losses, unless the Group has incurred obligations or made payments or guarantees on behalf of the equity investee. The Group assesses its equity investments for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, operating performance of the entities, including current earnings trends and undiscounted cash flows, and other entity-specific information. The fair value determination, particularly for investment in privately-held entities, requires judgment to determine appropriate estima |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2021 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | 3. Recent accounting pronouncements In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”, which increases lease transparency and comparability among organizations. Under the new standard, lessees will be required to recognize all assets and liabilities arising from leases on the balance sheet, with the exception of leases with a term of 12 months or less, which permits a lessee to make an accounting policy election by class of underlying asset not to recognize lease assets and liabilities. If a leasee makes this election, it should recognize lease expenses for such lease generally on a straight-line basis over the lease term. The ASU is effective for reporting periods beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. In March 2018, the FASB approved an alternative transition method to the modified retrospective approach, which eliminates the requirement to restate prior period financial statements and allows the cumulative effect of the retrospective allocation to be recorded as an adjustment to the opening balance of retained earnings at the date of adoption. In June 2020, the FASB issued ASU No. 2020-05, “Leases (Topic 842): Effective Dates for Certain Entities”, to update the effective date delays for private companies, not-for-profits, and smaller reporting companies applying the leases standards. The ASU is effective for reporting periods beginning after December 15, 2021 and interim periods within fiscal years beginning after December 15, 2022. Early adoption is permitted. The Group will adopt the new standard effective January 1, 2022 on a modified retrospective basis and will not restate comparative periods. The Group estimate approximately USD1.6 million would be recognized as total right-of-use assets and total lease liabilities on its consolidated balance sheet as of January 1, 2022 In June 2016, the FASB issued ASU No. 2016-13 “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. The new guidance amended guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For available for sale debt securities, credit losses will be presented as an allowance rather than as a write-down. This standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for all entities. In November 2019, the FASB issued ASU No. 2019-10, “Financial Instruments-Credit Losses (Topic 326): Effective Dates”, to finalize the effective date delays for private companies, not-for-profits, and smaller reporting companies applying the CECL standards. The ASU is effective for reporting periods beginning after December 15, 2022 and interim periods within those fiscal years. Early adoption is permitted. The Group is currently assessing the impact of adopting this standard on its consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes” to remove specific exceptions to the general principles in Topic 740 and to simplify accounting for income taxes. The ASU is effective for fiscal years, beginning after December 15,2021 and interim periods within fiscal years, beginning after December 15, 2022. Early adoption is permitted. The Company has finalized its analysis and does not expect this ASU to have a material impact on the consolidated financial statements. In January 2020, the FASB issued ASU 2020-01, “Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815”, which clarifies the interaction of the accounting for equity investments under Topic 321 and investments accounted for under the equity method of accounting in Topic 323 and the accounting for certain forward contracts and purchased options accounted for under Topic 815. The standard is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021. Early adoption is permitted. The Company is currently evaluating the impact of this accounting standard and does not expect this ASU to have a material impact on the consolidated financial statements. 3. Recent accounting pronouncements (Continued) In May 2021, the FASB issued ASU No. 2021-04, Earnings Per Share (Topic 260), Debt — Modifications and Extinguishments (Subtopic 470-50), Compensation — Stock Compensation (Topic 718), and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40) to clarify and reduce diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options (for example, warrants) that remain equity classified after modification or exchange. The amendments in this update are effective for all entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. An entity should apply the amendments prospectively to modifications or exchanges occurring on or after the effective date of the amendments. The Group is currently evaluating the impact of the new guidance on the consolidated financial statements. In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (ASU 2021-08), which clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. The new amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The amendments should be applied prospectively to business combinations occurring on or after the effective date of the amendments, with early adoption permitted. The Group is currently evaluating the impact of the new guidance on the consolidated financial statements. |
Concentration and Risks
Concentration and Risks | 12 Months Ended |
Dec. 31, 2021 | |
Risks And Uncertainties [Abstract] | |
Concentration and Risks | 4. Concentration and Risks (a) Foreign exchange risk The revenues and expenses of the Group’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 Group to credit risk consist primarily of cash and cash equivalents, short-term deposit and accounts receivable. The Group places its cash and cash equivalents and short-term deposit with financial institutions with high credit ratings and quality. The Group 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 Group 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, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenues | 5 . Revenues Years ended December 31, (In thousands) 2019 2020 2021 Revenues from services —Data connectivity services 80,537 39,956 26,430 International data connectivity services 77,974 30,798 21,672 Local data connectivity services 2,563 9,158 4,758 —PaaS and SaaS services 9,135 5,717 10,770 —Others 1,438 477 598 91,110 46,150 37,798 Sales of products —Sales of terminals 54,880 32,597 27,408 —Sales of data related products 11,955 10,194 5,843 —Others 436 628 2,775 67,271 43,419 36,026 Total 158,381 89,569 73,824 In the following table, revenue is geographically disaggregated according to the locations of the customers. Years ended December 31, (In thousands) 2019 2020 2021 Japan 57,695 47,565 35,883 North America 15,254 23,513 24,183 Southeast Asia 8,442 2,495 4,173 Mainland China 50,862 9,631 3,842 Hong Kong SAR 14,664 2,771 2,199 Europe 3,972 1,706 1,845 Others 2,339 1,253 1,457 Taiwan 5,153 635 242 Total 158,381 89,569 73,824 |
Other Income_(Expense), Net
Other Income/(Expense), Net | 12 Months Ended |
Dec. 31, 2021 | |
Other Income And Expenses [Abstract] | |
Other Income/(Expense), Net | 6. Other income/(expense), net Years ended December 31, (In thousands) 2019 2020 2021 Foreign exchange losses, net (1,893 ) (153 ) (1,106 ) Government grants (note) 1,662 2,283 1,012 Gains on disposal of property and equipment, net 339 375 94 Fair value gains/(losses) on other investments — 4,909 (12,363 ) Others 182 140 487 Total 290 7,554 (11,876 ) Note: Government grants mainly represent amounts received from central and local governments in connection with the Group’s investments in local business districts and contributions to technology development. |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [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 7. Taxation (Continued) (a) Income taxes (Continued) (ii) PRC (Continued) The Group’s income/(loss) before income taxes consisted of: Years (In thousands) 2019 2020 2021 Non-PRC (416 ) (54,627 ) (28,212 ) PRC 5,680 (8,603 ) (17,872 ) Total 5,264 (63,230 ) (46,084 ) (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, 2019, 2020 and 2021 were as follows: Years ended December 31, (In thousands) 2019 2020 2021 Income/(loss) before income tax 5,264 (63,230 ) (46,084 ) Income tax computed at statutory PRC income tax rate (25%) (i) 1,316 (15,808 ) (11,521 ) Differential income tax rates applicable to certain entities comprising the Group 120 13,121 4,061 Effect of tax holiday (569 ) 824 1,786 Permanent differences (ii) 136 451 1,826 Change in valuation allowance 322 2,735 5,405 Accelerated deductions on research and development expenses (iii) (1,268 ) (1,138 ) (1,313 ) Income tax expenses 57 185 244 (i) The PRC statutory income tax rate was used because the majority of the Group’s operations are based in the PRC. (ii) Permanent differences primarily represent non-deductible expenses. (iii) This amount represents tax incentives relating to the research and development expenses of certain major operating subsidiaries in the PRC. This tax incentive enables those subsidiaries to claim an additional tax deduction amounting to 75% of the qualified research and development expenses incurred. The per share effect of the tax holidays are as follows: Years ended December 31, (In thousands) 2019 2020 2021 Effect of tax holiday (569 ) 824 1,786 Per share effect – basic and diluted 0.00 (0.00 ) (0.01 ) ( 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: 7. Taxation (Continued) ( b ) Deferred tax assets (Continued) Years ended December 31, (In thousands) 2019 2020 2021 Deferred tax assets Net operating loss carryforwards 6,991 9,416 14,808 Accrued expenses and others 104 414 427 Less: valuation allowance (7,095 ) (9,830 ) (15,235 ) Net deferred tax assets — — — Movement of valuation allowance Years ended December 31, (In thousands) 2019 2020 2021 Balance at beginning of the year 6,773 7,095 9,830 Change of valuation allowance 322 2,735 5,405 Balance at end of the year 7,095 9,830 15,235 Valuation allowance is provided against deferred tax assets when the Group determines that it is more-likely-than-not that the deferred tax assets will not be utilized in the future. The Group considers positive and negative evidence to determine whether some portion or all of the deferred tax assets will be more-likely-than-not realized. This assessment considers, among other matters, the nature, frequency and severity of recent losses and forecasts of future profitability. These assumptions require significant judgment and the forecasts of future taxable income are consistent with the plans and estimates the Group is using to manage the underlying businesses. Valuation allowances are established for deferred tax assets based on a more likely than not threshold. The Group’s ability to realize deferred tax assets depends on its ability to generate sufficient taxable income within the carry forward periods provided for in the tax law. The Group has provided a full valuation allowance for the deferred tax assets as of December 31, 2019, 2020 and 2021, 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, 2019, 2020 and 2021, the Group had net operating loss carryforwards of approximately US$45,712 thousands and US$61,257 thousands and US$100,986 thousands respectively, which arose from the subsidiaries and VIE established in Hong Kong and PRC. As of December 31, 2019, 2020 and 2021, the Group does not believe that sufficient positive evidence exists to conclude that the recoverability of deferred tax assets is more likely than not to be realized. Consequently, the Group has provided full valuation allowance on the related deferred tax assets. According to the Circular of relevant governmental regulatory authorities of Taxation on Extending the Loss Carry-over Period of High-tech Enterprises and High-tech SMEs (Cai Shui [2018] No. 76), from January 1, 2018, the enterprises that have the qualifications of high-tech enterprises or high-tech SMEs will be able to make up for the losses that have not been completed in the previous five years before the qualification year. The longest carry-over period is extended from 5 years to 10 years. As of December 31, 2021, the net operating loss carry forwards arose from Shenzhen Ucloudlink Technology Limited and Shenzhen uCloudlink will expire during the period from 2026 to 2030, if unused. (c) Uncertain tax position The Group evaluates the level of authority for each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measures the unrecognized benefits associated with the tax positions. As of December 31, 2019, 2020 and 2021, the Group did not have any significant unrecognized uncertain tax positions. The Group does not anticipate any significant increase to our liability for unrecognized tax benefit within the next 12 months. Interest and penalties related to income tax matters, if any, is included in income tax expense. |
Ordinary Shares
Ordinary Shares | 12 Months Ended |
Dec. 31, 2021 | |
Equity [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; 2021: 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 Group or his employment or service relationship is terminated by any applicable Group entities for cause as stated in the Series A SPA, the related senior management shall sell to the Company, and the Company shall repurchase from certain senior management, all of the unvested shares at a price of US$0.00005 per share. Such restricted shares were treated as deemed contribution by those senior management to the Company and the fair value of which were recognized as share-based compensation expense over the vesting period. Ordinary shares of 44,426,667 and 44,426,667 were vested and presented as an increase of the numbers of issued ordinary shares during the year ended December 31, 2017 and December 31, 2018, respectively. At any time prior to a qualified IPO, the shares held by certain senior management shall not be transferred directly or indirectly without the prior written consent of the Series A Preferred Shares holders, except for those to be transferred to the employees of the Company pursuant to an Stock Option Plan approved by the board. (iii) On November 25, 2015, the Company entered into a share purchase agreement (“A-1 SPA”) with certain investors under which the Company issued 26,575,220 ordinary shares at a total consideration of US$21,555,470. There were liquidation preference and a redemption right attached to certain of these ordinary shares with 10% annual compounded interest based on original purchase price which expired on December 31, 2016. (iv) On January 1, 2016, 4,000,000 ordinary shares of certain senior management were transferred to Series A Preferred Shares at the then fair value of US$0.88 per share. (v) On September 22, 2016, the Company entered into a share purchase agreement (“A-2 SPA”) with certain investors under which the Company issued 8,502,600 ordinary shares at a total consideration of US$10,000,000. There is a redemption right attached to the ordinary shares with 12% annual compounded interest based on original purchase price. Such redemption right expired on December 31, 2017. (vi) On June 19, 2017, the Company repurchased 8,630,140 of its ordinary shares from an investor at a price of US$0.96 per share amounting to US$8,297,880. The repurchased ordinary shares were cancelled immediately and the additional paid in capital of the Company was reduced by US$8,298,236. (vii) On August 28, 2018, upon the occurrence of the event of automatic conversion of convertible bonds, in which that the Group attained cumulative revenue over RMB500 million during the year ended December 31, 2017, all the convertible bonds were converted into 35,004,220 ordinary shares of the Company. 8. Ordinary shares (Continued) (viii) On November 25, 2015, June 19, 2017 and March 22, 2018, the Company issued 20,000,000, 4,315,080 and 31,665,280 ordinary shares, respectively, and had them held by a limited liability company owned by one of certain senior management. These ordinary shares were held on behalf of the Company and are to be awarded to employees under future equity incentive plan based on the discretion of the board of directors of the Company. The ordinary shares issued above were accounted for as treasury shares of the Group. None of these shares has been exercised nor issued from treasury shares as of December 31, 2017 and December 31, 2018, respectively. On December 31, 2018, all of the treasury shares were cancelled under the decision of the board of directors of the Company. (ix) On December 31, 2018, the board of directors of the Company adopted the 2018 Stock Option Scheme under which the Company may grant options to purchase its ordinary shares to selected employees of the Group. The board of directors of the Company reserved 55,980,360 shares on December 31, 2018 of the Company’s ordinary shares for future issuance under the plan. (x) In July 2019, two written resolutions were passed and approved by the board of directors of the Company and its shareholders: (a) The Group will adopt a dual-class share structure, consisting of Class A ordinary shares and Class B ordinary shares, which will become effective immediately prior to the completion of the Company’s IPO. Immediately prior to the completion of the IPO, (i) the conversion and re-designation of all of the then currently issued and outstanding preferred shares into ordinary shares on a one-to-one basis; (ii) 122,072,980 of ordinary shares beneficially owned by Mr. Chaohui Chen and Mr. Zhiping Peng will be redesignated into Class B ordinary shares on a one-for-one basis (iii) all of the remaining ordinary shares (including ordinary shares resulting from the conversion and re-designation of preferred shares) will be re-designated into Class A ordinary shares on a one-to-one basis. In respect of matters requiring the votes of shareholders, holders of Class A ordinary shares will be entitled to one vote per share, while holders of Class B ordinary shares will be entitled to fifteen votes per share. (b) (xi) On June 10, 2020, the Company completed its IPO on the Nasdaq Global Market. The outstanding shares consist of 159,478,920 Class A ordinary shares and 122,072,980 Class B ordinary shares, of which (i) 61,346,560 Class B ordinary shares ultimately held by the Company’s founder, director and chief executive officer Chaohui Chen; (ii) 60,726,420 Class B ordinary shares ultimately held by the Company’s founder and chairman of board of directors Zhiping Peng and (iii) 110,378,920 ordinary shares were converted into Class A ordinary shares. In the offering, 2,010,000 ADSs, representing 20,100,000 Class A ordinary shares, were issued and sold to the public at a price of US$18 per ADS. Upon the completion of the IPO, all 29,000,000 issued and outstanding preferred shares were converted into Class A ordinary shares immediately as of the same date. (xii) During year ended December 31, 2020, 576,720 shares of Class A Ordinary Shares were issued upon exercise of outstanding stock options under the Group’s share-based incentive plans (Note 10). (xiii) During year ended December 31, 2021, 1,919,760 shares of Class A Ordinary Shares were issued upon exercise of outstanding stock options and 3,000,000 shares of Class A Ordinary Shares were issued upon vesting of restricted share units under the Group’s share-based incentive plans (Note 10). |
Redeemable and Convertible Shar
Redeemable and Convertible Shares | 12 Months Ended |
Dec. 31, 2021 | |
Temporary Equity Disclosure [Abstract] | |
Redeemable and Convertible Shares | 9. Redeemable and convertible shares As of December 31, 2019, the Company had 29,000,000 Series A Preferred Shares outstanding 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. The significant terms of the Series A Preferred Shares issued by the Company are as follows: (I) Liquidation preference In a liquidation event, all proceeds resulted from the liquidation event will be first distributed to the Series A Preferred Shares holder based on 100% of the preferred shares purchase price, plus an annual compounded return of 10%, plus any declared but unpaid dividend. Any remaining proceeds will be paid to all shareholders ratably. (II) Dividend rights The Series A Preferred Shares are entitled to dividends. (III) Voting rights The Series A Preferred Shares are entitled to voting rights on an as-if converted basis. (IV) Conversion feature Each Series A Preferred Share is convertible at the option of the holder at any time after the date of issuance, into one ordinary share. In addition, each Series A Preferred Share shall automatically be converted into one ordinary share at the time immediately prior to the closing of the qualified IPO. In the event the Company shall at any time after the issuance of Series A Preferred Shares issue new shares, without consideration or for a consideration per share less than the share purchase prior to such issue, then the conversion price shall be reduced, concurrently with such issue, to as of the date of such issue an amount equal to the per-share price of such new shares. (V) Redemption feature The Series A Preferred Shares will become redeemable at the option of the holder at any time after the fifth anniversary of the date of issuance, if the Series A Preferred Shares have not been converted into ordinary shares yet. The redemption price per preferred share shall be equal to the higher of: (a) 100% of the preferred share purchase price plus any declared but unpaid dividends, or (b) 100% of the preferred share purchase price plus 15% annual compounded return. The Group determined that the conversion feature and redemption feature do not meet the criteria for bifurcation. Further, there were no beneficial conversion feature identified. 9. Redeemable and convertible shares (Continued) The activities of Series A Preferred Shares included in mezzanine equity for the years ended December 31, 2020 and 2021 are as follows: (In thousands) Series A Preferred Shares Balance as of December 31, 2019 22,977 Accretion 1,293 Conversion and redesignation of Preferred Shares (24,270 ) Balance as of December 31,2020 and 2021 — |
Share-based Awards
Share-based Awards | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [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) 2019 2020 2021 —Restricted Shares (a) 169 — 5,573 —Share options (b) — 50,607 3,184 Total 169 50,607 8,757 (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. 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, 2019, 2020 and 2021 is presented below: (Number of shares) Number of Restricted Shares Outstanding as of January 1, 2019 3,702,222 Vested (3,702,222 ) Outstanding as of December 31, 2019, 2020 — Granted 6,261,100 Forfeited (345,000 ) Vested (3,000,000 ) Outstanding as of December 31, 2021 2,916,100 10. Share-based awards (Continued) (b) Share options In December 2018, the Company adopted a share incentive plan, which is referred to as the 2018 Stock Option Scheme (“the 2018 Plan”). The purpose of the plan is to attract and retain the best available personnel by linking the personal interests of the members of the board, employees, and consultants to the success of the Company’s business and by providing such individuals with an incentive to reward their performance. Under the 2018 Plan, the maximum number of shares in respect of which options, restricted shares, or restricted share units may be granted is 55,980,360 shares. In July 2019, the Group adopted the Amended and Restated 2018 Stock Option Scheme (“Revised 2018 Plan”), which amends the previously adopted 2018 Stock Option Scheme, pursuant to which the Group may grant awards to directors, officers and employees. The maximum aggregate number of ordinary shares that may be issued under Revised 2018 Plan was 40,147,720 ordinary shares. In July 2019, the shareholders and board of directors of the Company also approved the 2019 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. 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. 10. Share-based awards (Continued) (b) Share options (Continued) A summary of the changes in the share options granted by the Company during the year ended December 31, 2019, 2020 and 2021 is as follows: Number of share options Weighted average exercise price Aggregate intrinsic value Outstanding as of January 1, 2019 12,187,420 $ 0.51 $ 37,604,315 Granted 5,414,300 $ 0.54 $ 15,919,687 Forfeited (205,980 ) $ 0.50 $ (572,154 ) Outstanding as of December 31, 2019 17,395,740 $ 0.52 $ 52,951,848 Exercisable as of December 31, 2019 — — — Granted 6,163,017 $ 0.55 $ 7,668,544 Forfeited (683,280 ) $ 0.67 $ (1,733,224 ) Exercised (576,720 ) $ 0.50 $ (1,804,198 ) Outstanding as of December 31, 2020 22,298,757 $ 0.54 $ 57,082,970 Exercisable as of December 31, 2020 — $ — $ — 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 The Group calculated the estimated fair value of an options on the grant date using the binomial option pricing model with assistance from an independent valuation firm. Assumptions used to determine the fair value of share options granted during the year ended December 31, 2019, 2020 and 2021 is summarized in the following table: Years ended December 31, (In thousands) 2019 2020 2021 Risk-free interest rate (i) 1.53 % 0.33%-0.88% 1.22%-1.52% Expected dividend yield (ii) 0.00 % 0.00% 0.00% Expected volatility (iii) 36.88 % 37.94%-40.07% 35.01%-36.00% Grant date fair value $3.48 $0.98-$1.93 $0.06-$0.65 (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, 2021, the unrecognized share-based compensation expenses related to share options and restricted share units granted by Company were US$3,932 thousands and US$1,130 thousands respectively. |
Income_(loss) Per Share
Income/(loss) Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Income/(loss) Per Share | 11. Income/(loss) per share Basic and diluted net income/(loss) per share for each of the year presented were calculated as follows: Years ended December 31, (In thousands of US$ except share data and per share data) 2019 2020 2021 Numerator: Net income/(loss) 5,207 (63,415 ) (46,041 ) Add: Accretion of Series A Preferred Shares (2,540 ) (1,293 ) — Income allocation to participating preferred shareholders (296 ) — — Net income/(loss) attributable to ordinary shareholders of the Company for computing basic and diluted net income/(loss) per share 2,371 (64,708 ) (46,041 ) Denominator: Weighted average number of ordinary shares outstanding used in calculating basic and diluted net income/(loss) per share 232,178,037 259,852,204 285,979,036 Basic and diluted net income/(loss) per ordinary share 0.01 (0.25 ) (0.16 ) Diluted earnings per share do not include the following instruments as their inclusion would have been anti-dilutive: Years ended December 31, 2019 2020 2021 Convertible Redeemable Preferred Shares 29,000,000 — — Restricted Shares — — 2,916,100 Share options awards 17,395,740 22,298,757 19,225,361 Total 46,395,740 22,298,757 22,141,461 |
Cash and Cash Equivalents and S
Cash and Cash Equivalents and Short-term Deposit | 12 Months Ended |
Dec. 31, 2021 | |
Investments Debt And Equity Securities [Abstract] | |
Cash and Cash Equivalents and Short-term Deposit | 1 2 . Cash and cash equivalents and short-term deposit Cash and cash equivalents represent cash on hand, cash held at bank, and term deposits placed with banks or other financial institutions, which have original maturities of three months or less. Short-term deposit represents term deposit placed with bank with original maturity more than three months but less than one year. The Group had US$196 thousands of short-term deposit as of December 31, 2021, with an original maturity of 12 months denominated in HKD. Cash on hand and cash held at bank balance and short-term deposit as of December 31, 2020 and 2021 primarily consist of the following currencies: December 31, 2020 December 31, 2021 (In thousands) Original currency US$ equivalent Original currency US$ equivalent US$ 4,259 4,259 3,195 3,195 RMB 59,912 9,182 13,433 2,107 HKD 8,236 1,062 5,791 743 Others 7,682 2,019 Total 22,185 8,064 |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2021 | |
Accounts Receivable Net Current [Abstract] | |
Accounts Receivable, Net | 1 3 . Accounts receivable, net (In thousands) December 31, 2020 December 31, 2021 Accounts receivable 10,034 18,273 Less: Allowance for doubtful accounts (3,289 ) (3,350 ) Accounts receivable, net 6,745 14,923 The following table presents movement in the allowance for doubtful accounts: (In thousands) December 31, 2019 December 31, 2020 December 31, 2021 Balance at beginning of the year 473 495 3,289 Additions 74 2,785 67 Reversal (30 ) — (22 ) Write-off (20 ) — — Exchange difference (2 ) 9 16 Balance at end of the year 495 3,289 3,350 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | 1 4 . Inventories (In thousands) December 31, 2020 December 31, 2021 Raw materials 4,342 4,395 Finished goods 2,141 2,390 Less: write-down of obsolete inventories (636 ) (652 ) Total inventories 5,847 6,133 |
Prepayments and Other Assets
Prepayments and Other Assets | 12 Months Ended |
Dec. 31, 2021 | |
Prepaid Expense And Other Assets [Abstract] | |
Prepayments and Other Assets | 1 5 . (In thousands) December 31, 2020 December 31, 2021 Prepayments 5,119 3,859 Deposits 2,344 1,389 Export tax receivable 507 744 VAT recoverable 118 729 Others 1,505 814 Total of prepayments and other assets 9,593 7,535 (In thousands) December 31, 2020 December 31, 2021 Current 7,477 6,225 Non-current 2,116 1,310 Total of prepayments and other assets 9,593 7,535 |
Long-term investments
Long-term investments | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Long-term investments | 1 6 . Long-term investments In October 2018, the Company made an equity investment in a privately-held company, Maya System, Inc. (the “Maya”), which provides cloud SIM related services in Japan, including sale of products and maintenance. The Company acquired 49.00% equity interest of Maya with total consideration of JPY49,000 thousands. The Group classified Maya as an equity method investment as it has significant influence over Maya. The consideration was mainly attributed to trademark, customer relationship and goodwill. As of December 2020 and 2021, 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. 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 nil and USD 287 thousands during the year ended December 31, 2020 and 2021. In January 2021, the Company acquired 31.25% of the equity interests of iQsim S.A., which is a provider of open virtual SIM (“VSIM”) platform and VSIM-enabled mobile devices based in France, with total consideration of EUR200 thousands. The Company exercises significant influence in iQsim S.A and therefore accounts for this as a long-term investment using equity method. The Company recognized the share of profit of USD 0.2 thousand during the year ended December 31, 2021. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | 1 7 . Property and equipment consist of the following: (In thousands) December 31, 2020 December 31, 2021 Computers 850 672 Server & switch 1,276 1,382 Office equipment 1,442 1,685 Wi-Fi terminals for data connectivity services 11,863 9,632 Leasehold improvement 555 589 Total original costs 15,986 13,960 Less: accumulated depreciation (12,957 ) (12,164 ) Net book value 3,029 1,796 Depreciation expenses recognized for the years ended December 31, 2019, 2020 and 2021 were US$2,954 thousands, US$2,174 thousands and US$2,022 thousands, respectively. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | 1 8 . (In thousands) Carrying amount Accumulated amortization Net carrying amount December 31, 2020 Purchased software 1,089 (203 ) 886 Trademarks 121 (62 ) 59 Licensed copyrights 179 (85 ) 94 Intangible assets 1,389 (350 ) 1,039 1 8 . (In thousands) Carrying amount Accumulated amortization Net carrying amount December 31, 2021 Purchased software 1,206 (322 ) 884 Trademarks 124 (76 ) 48 Licensed copyrights 181 (104 ) 77 Intangible assets 1,511 (502 ) 1,009 Amortization expenses recognized for the years ended December 31, 2019, 2020 and 2021 were US$90 thousands, US$94 thousands and US$143 thousands, respectively. The estimated aggregate amortization expenses for each of the five succeeding fiscal years and thereafter are as follows: Year (In thousands) 2022 151 2023 151 2024 151 2025 151 2026 151 Thereafter 254 Total 1,009 |
Other Investments
Other Investments | 12 Months Ended |
Dec. 31, 2021 | |
Investments All Other Investments [Abstract] | |
Other Investments | 19 . (In thousands) December 31, 2020 December 31, 2021 Current (i) 19,185 12,587 Non-current (ii) 17,824 12,058 Total 37,009 24,645 Note: (i) In June 2020, the Group made an investment in an investment fund for a cash consideration of US$15,000 thousands, for which the underlying assets were mainly comprised of debt securities and equity securities. It is redeemable at the option of the Group with one-month (ii) In June 2020, the Group made an investment in an investment fund for a cash consideration of US$17,100 thousands, for which the underlying assets were mainly comprised of unlisted bonds and subordinated debentures, for a period of 3 years. There was a fair value gain of US$724 thousands for the year ended December 31,2020 and a fair value loss of US$5,766 thousands for the year ended December 31, 2021. |
Accounts Payable, Accrued Expen
Accounts Payable, Accrued Expenses and Other Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Payables And Accruals [Abstract] | |
Accounts Payable, Accrued Expenses and Other Liabilities | 2 0 . (In thousands) December 31, 2020 December 31, 2021 Accounts payable to suppliers 8,701 12,986 Accrued bonus and staff costs 18,272 20,742 Other deposits 1,788 1,793 Other taxes payable (note) 934 881 Accrued professional fees 3,169 3,007 Accrued marketing expenses 342 75 Others 1,237 1,082 Total 34,443 40,566 Note: Other taxes payable represents business tax, VAT and related surcharges and PRC individual income tax of employees withheld by the Group. |
Short-term Borrowings
Short-term Borrowings | 12 Months Ended |
Dec. 31, 2021 | |
Short Term Borrowings [Abstract] | |
Short-term Borrowings | 2 1 . (In thousands) December 31, 2020 December 31, 2021 Current Bank borrowings (i) 3,704 3,177 Note: (i) The Group’s short-term bank borrowings are primarily used for working capital and business development purposes and bear interest rate of 1.60% ~ 5.22% (2020: 1.90% ~ 5.22%) per annum, with a weighted average interest rate of 3.67% (2020: 4.58%) per annum. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 2 2 . Related party transactions (a) Related parties As of December 31, 2021, 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, 2019, 2020 and 2021, other than disclosed elsewhere, the Company had the following material related party transactions: Years ended December 31, (In thousands) 2019 2020 2021 Revenue from provision of data connectivity services, PaaS and SaaS services and sales of terminals and data related products: Maya 4,419 8,010 9,370 Beijing Huaxianglianxin Technology Company — — 984 Purchase of data connectivity service: Maya — 47 26 Beijing Huaxianglianxin Technology Company — — 87 (c) The Company had the following related parties balances as December 31, 2020 and December 31, 2021: (In thousands) December 31, 2020 December 31, 2021 Deposits received from related parties: Maya 1,498 1,417 Contract liability : Maya — 18 Amounts payable to related parties: Maya 5 — Beijing Huaxianglianxin Technology Company — 18 Amounts receivable from related parties: Maya 2,264 1,108 Beijing Huaxianglianxin Technology Company — 45 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 2 3 . (a) Operating lease commitments The Group has leased office premises and buildings under non-cancellable operating lease agreements. These leases have different terms and renewal rights. Year (In thousands) 2022 1,080 2023 243 2024 21 2025 — 2026 — Total 1,344 For the years ended December 31, 2019, 2020 and 2021, the Group incurred rental expenses under operating leases US$3,276 thousands, US$1,687 thousands and US$1,539 thousands, respectively. ( b ) Purchase commitment for purchase of data As of December 31, 2021, the Group has future minimum purchase commitment related to the purchase of data of US$1,456 thousands and US$118 thousands within the remainder of 2022 and 2023, respectively. ( c ) Contingencies In June 2018, HONG KONG UCLOUDLINK NETWORK TECHNOLOGY LIMITED and Ucloudlink (America), Ltd., two wholly-owned subsidiaries of the Company, were named as defendants in a complaint filed by SIMO Holding Inc. (“SIMO”) in the United States District Court for the Southern District of New York (the “New York Court”), alleging patent infringements. The trial judge of the New York Court delivered a judgement in June 2019 approving total compensatory and enhanced damages of US$2.8 million. Subsequently, the plaintiff and the Company filed post-trial motions in connection with which the plaintiff filed motions for supplemental damages to increase the damages to US$8.5 million. On August 28, 2019, the New York Court resolved in an order which denied the Company’s motions for judgment as a matter of law and for a new trial as well as plaintiff’s motion for request for attorney’s fees. The New York Court granted plaintiff’s motion for permanent injunction, effective on September 1, 2019, to enjoin the Company from selling, offering to sell, importing, or enabling the use of three models of portable Wi-Fi terminals and one model of GlocalMe World Phone that the New York Court believes infringed upon SIMO’s patent in the United States. In October 2019, the New York Court amended the total damages to US$8.2 million to include pre-judgment interest on the awards and supplemental damages for certain sales occurring between January 1, 2019 and August 1, 2019, and certain sales occurring overseas for devices that had previously been sold within the United States between August 13, 2018 and August 31, 2019. The Group upgraded the allegedly infringing products by pushing a redesigned software update to the devices, which the New York Court concluded that the upgraded devices are no longer infringing. On December 9, 2019, the New York Court lifted the injunction against the upgraded devices and concluded that they were not infringing. In the meantime, the Group has appealed against the New York Court’s original ruling in the United States Court of Appeals for the Federal Circuit (“Federal Circuit”) and has put a sum equal to the above-mentioned damages amount in an escrow account (Note 2.19) in January 2020. On May 1, 2020, the Group filed a declaratory judgment lawsuit in the New York Court against SIMO to obtain a declaration that its redesigned products are no longer infringing and SIMO filed counterclaims. The purpose of the new case is to have the New York Court re-issue the previous conclusion as a declaratory judgment so that it is enforceable to block SIMO from accusing its redesigned products of infringing in the future. On January 5, 2021, the Federal Circuit reversed the decision by the New York Court and held that the Group were entitled to summary judgement of noninfringement. On 4 February 2021, SIMO filed a petition for panel rehearing and it was denied by the Federal Circuit on March 11, 2021. On March 29, 2021, the escrowed funds of US$8.2 million have been fully released and refunded to the Company. On April 8, 2021, the above-mentioned permanent injunction against the Group’s products was dissolved by the New York Court. 2 3 . ( c ) Contingencies (Continued) In January 2020, the Group became aware that SIMO is alleging patent infringement and trade secret misappropriation against the Group in the United States District Court for the Eastern District of Texas (“Texas Court”). The patent infringement claim was based on patent No. 9,736,689, which was the same patent the Federal Circuit addressed in its decision reversing a judgment of infringement from the New York Court. The trade secret allegations were the same as allegations SIMO previously made in a case between the parties in the United States District Court for the Northern District of California. Those allegations were dismissed from case in California with prejudice. The Group moved to transfer the patent infringement claim to the New York Court and to dismiss or transfer the claims for trade secret misappropriation to the United States for the Norther District of California. On November 24, 2020, the Texas Court denied both motions. Subsequently, SIMO dropped their patent infringement claim at the Texas Court on April 6, 2021. In response to the Texas Court’s ruling denying transfer of trade secret claims, the Group appealed to the United States Court of Appeals for the Fifth Circuit on April 16, 2021, which was denied by the Court on May 31, 2021. On July 15, 2021, the Texas Court held a scheduling conference for evidence exchanges. On July 27, 2021, SIMO and the Group participated in a settlement conference, with further settlement discussion held on July 30, 2021. On August 30, 2021, the Group and SIMO and their respective affiliates entered into a settlement agreement and had filed joint motion to the Texas Court for the dismissal of the case. On September 3, 2021, the Texas Court dismissed the trade secret case initiated by SIMO. In August 2018, two affiliates of SIMO, namely Shenzhen Sibowei’ersi Technology Co., Ltd. and Shenzhen Skyroam Technology Co., Ltd., jointly filed a complaint against Shenzhen uCloudlink Network Technology Co., Ltd. in Guangzhou Intellectual Property Court in the PRC alleging patent infringements and claimed damages up to RMB10.5 million (equivalent to US$1.6 million). The Group has filed an invalidation petition against their alleged patent in Patent Reexamination Board of National Intellectual Property Administration in the PRC. On July 16, 2019, the Patent Reexamination Board of National Intellectual Property Administration issued a reexamination decision which invalidated the plaintiffs’ alleged patent in its entirety with respect to the patent infringement allegation. The first hearing of this lawsuit was held on May 13, 2019. The plaintiffs applied to withdraw the lawsuit, which has been approved on August 14, 2019. In October 2019, Shenzhen Sibowei’ersi Technology Co., Ltd. filed a complaint against the National Intellectual Property Administration in Beijing Intellectual Property Court in PRC petitioning the withdrawal of the foregoing reexamination decision of invalidity and reach of a new reexamination decision. In December 2020, the Beijing Intellectual Property Court entered its judgment which upheld National Intellectual Property Administration’s invalidation decision. Sibowei’ersi Technology Co., Ltd. has appealed against such judgment. On November 2, 2021, the Supreme People's Court held an online hearing of the case, and the Group is awaiting for the ruling of the second instance as well as the court’s further notice. In June 2019, Shenzhen Skyroam Technology Co., Ltd. filed a complaint against one of the Group’s employees, one of the Group’s officers, Shenzhen Ucloudlink Technology Limited and Shenzhen uCloudlink Network Technology Co., Ltd. in the Intermediate People’s Court of Shenzhen alleging trade secret misappropriation and claimed damage of approximately US$14 million and cessation of misappropriation. The Court denied the Group’s motion to transfer the lawsuit from the Intermediate People’s Court of Shenzhen to the Higher People’s Court of Guangdong and the Group has appealed for jurisdiction objection on September 17, 2019. On May 8, 2020, the Supreme People’s Court ruled against the Group’s appeal and such lawsuit was heard by the Intermediate People’s Court of Shenzhen. The Intermediate People’s Court of Shenzhen has organized three pre-trial conferences in October 2020, December 2020, and January 2021 for exchanging evidence and confirming judicial appraisal results. Further conference for evidence exchange has been held on March 31, 2021 at China Industrial Cyber Security Development and Research Centre. On September 3, 2021, Shenzhen Skyroam Technology Co., Ltd. applied to withdraw the trade secret misappropriation claim in the Intermediate People’s Court of Shenzhen. On September 6, 2021, the Intermediate People’s Court of Shenzhen dismissed the trade secret misappropriation claim. 2 3 . Commitments and contingencies (Continued) ( c ) Contingencies (Continued) Also, in June 2019, Shenzhen Skyroam Technology Co., Ltd. filed a complaint against the Shenzhen Ucloudlink Technology Limited in the Intermediate People’s Court of Shenzhen regarding a patent ownership dispute. The plaintiff claimed damages of approximately US$21,000. The exchange of evidence was held in August 2019 and the Group has applied to suspend the lawsuit on October 15, 2019. The Group further received the court’s summons on November 7, 2019 and the evidentiary hearing of this lawsuit was held on January 6, 2020. In September 2021, Shenzhen Skyroam Technology Co,. Ltd. applied to withdraw the patent ownership claim in the Intermediate People’s Court of Shenzhen. On September 6, 2021, the Intermediate People’s Court of Shenzhen dismissed the patent ownership dispute case initiated by Skyroam. In July 2019, Shenzhen Skyroam Technology Co., Ltd. filed another complaint in the Intermediate People’s Court of Shenzhen against the Shenzhen Ucloudlink Technology Limited relating to patent ownership and the plaintiff claimed damages of approximately US$21,000. The Group objected on jurisdictional ground in October 2019 and the court ruled against the Group. The Group’s appeal for jurisdiction objection has been denied. On 31 March 2021, the first hearing was held by Intermediate People’s Court of Shenzhen. In September 2021, Shenzhen Skyroam Technology Co., Ltd. applied to withdraw the patent ownership claim in the Intermediate People’s Court of Shenzhen. On September 26, 2021, the Intermediate People’s Court of Shenzhen dismissed the patent ownership claim. The Group believes the aforementioned allegations are without merit and will defend vigorously. The Group considers that the likelihood of an unfavorable outcome is not probable or is unable to estimate the amount or the range of the possible loss. Therefore, no accrual has been recorded by the Group as of December 31, 2021 in respect of these proceedings. |
Restricted Net Assets
Restricted Net Assets | 12 Months Ended |
Dec. 31, 2021 | |
Restricted Net Assets [Abstract] | |
Restricted Net Assets | 2 4 . Restricted net assets The Company’s ability to pay dividends is primarily dependent on the Company receiving distributions of funds from its subsidiaries and the VIEs. Relevant PRC statutory laws and regulations permit payments of dividends by the Company’s PRC subsidiaries and the VIEs 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 and the VIEs. 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, 2019, 2020 and 2021, WFOE did not have after-tax 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, 2021, total restricted net assets were US$49,219 thousands. The Company performed a test on the restricted net assets of subsidiaries and VIEs 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, 2021 and the condensed financial information of the Company are required to be presented (See Note 27). |
Impact of COVID-19
Impact of COVID-19 | 12 Months Ended |
Dec. 31, 2021 | |
Extraordinary And Unusual Items [Abstract] | |
Impact of COVID-19 | 2 5 . Following the COVID-19 outbreak since early 2020, a series of precautionary and control measures have been implemented by the Chinese government, including but not limited to extending the Chinese New Year holiday, quarantine measures and travel restrictions. These measures have resulted in drop in outbound travelers from China and mainly impacted the Group’s Roamingman business. The COVID-19 pandemic has led governments and other authorities around the world to impose measures intended to control its spread, including restrictions on freedom of movement, gatherings of large numbers of people, and business operations such as travel bans, border closings, business closures, quarantines, shelter-in-place orders and social distancing measures. These measures have caused a severe decline in the level of business and leisure travel around the globe. This has resulted in the reduction in demands for the Group’s international data connectivity services. The net cash used in operating activities of the Group was US$21,738 thousands for the year ended December 31, 2021. The Group anticipates that a reduction in revenue will result in reduction in cash flow generated from operations. The Group will evaluate its financial and cash flow positions from time to time and intend to mitigate liquidity risk by implementing operational measures such as costs cutting and reducing investment in capital expenditures. The extent of the impact of the COVID-19 on the Group’s operational and financial performance in the longer term will depend on future developments, including the duration of the outbreak and related travel advisories and restrictions and the impact of the COVID-19 on overall demand for travel, all of which are highly uncertain and beyond the control of the Group. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 2 6 . ( a ) Issuance of convertible debentures On January 2022, the Company entered into definitive agreements with YA II PN, Ltd., an independent third party who is a limited partnership managed by Yorkville Advisor Global (the “Purchaser”), pursuant to which the Company issued and sold convertible debentures in a principal amount of US$5.0 million to the Purchaser at a purchase price equal to 95% of the principal amount through private placement. 2 6 . ( a ) Issuance of convertible debentures (Continued) The convertible debentures issued to the Purchaser bear interest at a rate of 5% per annum. The convertible debentures will be matured upon one-year anniversary of the issuance date unless redeemed or converted in accordance with their terms prior to such date. Subject to and upon compliance with the terms of the convertible debentures, 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 which may be represented by 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. ( b ) Change in corporate structure 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 is in the process of the restructuring to adjust its local business in the PRC. The Company terminated the contractual arrangements with its VIEs o n , In February 2022, the Company established Shenzhen Yulian Cloud Technology Co., Ltd. under Shenzhen uCloudlink to facilitate its business development in the PRC . |
Additional Information_ Condens
Additional Information: Condensed Financial Statements of the Company | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Additional Information: Condensed Financial Statements of the Company | 2 7 . 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, VIE and VIE’s 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, 2021. 27. Additional information: condensed financial statements of the Company (Continued) Condensed statements of comprehensive income/(loss) of the parent company Years ended December 31, (Amounts expressed in thousands of US$ except for number of shares and per share data) 2019 2020 2021 Operating expenses (1,299 ) (50,638 ) (10,399 ) Loss before income tax (1,495 ) (50,925 ) (10,266 ) Income/(loss) from subsidiaries and former VIEs 6,702 (12,490 ) (35,775 ) Net income/(loss) 5,207 (63,415 ) (46,041 ) Condensed balance sheets of the parent company Years ended December 31, (Amounts expressed in thousands of US$ except for number of shares and per share data) 2020 2021 Cash and cash equivalents 3,332 133 Amounts due from subsidiaries and former VIEs (note a) 123,337 126,536 Others 358 8 Total assets 127,027 126,677 Accounts payable, accrued expenses and other liabilities 1,078 1,188 Deficit in subsidiaries and former VIEs 65,346 101,138 Others 321 262 Amounts due to subsidiaries and former VIEs (note a) 3,888 3,997 Total liabilities 70,633 106,585 Total shareholders’ (deficit)/equity 56,394 20,092 27. 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) 2019 2020 2021 Cash flows from operating activities Net cash used in operating activities (note a) (572 ) (1,514 ) (1,483 ) Cash flows from investing activities Intercompany fund transfers (4,712 ) (38,598 ) (3,000 ) Net cash used in investing activities (note a) (4,712 ) (38,598 ) (3,000 ) Cash flows from financing activities Proceeds from initial public offering, net of issuance costs — 29,904 — Proceeds from exercise of share options — — 1,284 Net cash generated from financing activities — 29,904 1,284 Decrease in cash, cash equivalents and restricted cash (5,284 ) (10,208 ) (3,199 ) Cash, cash equivalents and restricted cash at beginning of year 18,824 13,540 3,332 Cash, cash equivalents and restricted cash at end of year 13,540 3,332 133 Note (a): The condensed financial information of the Company for the year ended December 31, 2019 and 2020 has been revised to (i) reflect a reclassification adjustment on the presentation of cash flows between the Company and its subsidiaries within the Group. Such cash flows were previously inappropriately presented under the operating activities of the condensed financial information of the Company. The condensed financial information has been revised to properly reflect the cash flows from the Company to its subsidiaries as the investing activities amounted to US$4.7 million and US$38.6 million in FY19 and FY20, respectively; and (ii) reflect a reclassification adjustment on the presentation of the amount due from entities within the Group from current to non-current in nature amounted to US$123.3 million in FY20 and the amount due to entities within the Group from current to non-current in nature amounted to US$3.9 million in FY20. Management considered the revision is immaterial, the impact of the revision was eliminated in consolidation, and there is no impact on the previously reported consolidated financial position, results of operations or cash flows. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of presentation | 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 Group in the preparation of the accompanying consolidated financial statements are summarized below. |
Use of estimates | 2.2 Use of estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires the Group to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates, and such differences may be material to the consolidated financial statements. Significant accounting estimates reflected in the Company’s consolidated financial statements include legal contingencies, share-based compensation and realization of deferred tax assets. The Group bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. |
Consolidation | 2.3 Consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries, 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. 2. Summary of significant accounting policies (Continued) 2.3 Consolidation (Continued) The following table sets forth the assets, liabilities, results of operations and changes in cash and cash equivalents of the VIEs taken as a whole, which were included in the Company’s consolidated financial statements with intercompany balances and transactions eliminated between the VIEs: As of December 31, 2020 2021 (in thousands of US$) Cash and cash equivalents 1,734 293 Accounts receivable, net 1,450 1,333 Amounts due from subsidiaries 6,663 8,067 Property and equipment and intangible assets 2,311 1,195 Others 9,399 9,602 Total assets 21,557 20,490 Short term borrowings — 941 Amounts due to parent and subsidiaries 42,442 55,623 Accounts payable, accrued expenses and other liabilities 14,276 16,458 Contract liabilities 215 89 Others — 18 Total liabilities 56,933 73,129 Total shareholders’ deficit (35,376 ) (52,639 ) Years ended December 31, 2019 2020 2021 (in thousands of US$) Revenue (note a) 82,054 55,014 30,979 Net income/(loss) (note a) 3,160 (3,528 ) (16,244 ) Net cash used in operating activities (note b) (170 ) (4,933 ) (6,553 ) Net cash used in investing activities (2,697 ) (1,196 ) (178 ) Net cash generated from financing activities (note b) 3,726 2,988 5,290 Note: (a) Revenue and net income/(loss) incurred by the 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) The condensed financial information of the Group’s VIEs and subsidiaries of VIEs for the year ended December 31, 2019 and 2020 has been revised to reflect a reclassification adjustment on the presentation of cash flows between the Group’s VIEs and its other subsidiaries within the Group. Such cash flows were previously inappropriately presented under the operating activities of the condensed financial information of the Group’s VIEs and subsidiaries of VIEs. The condensed financial information has been revised to properly reflect the cash flows from other subsidiaries to the VIEs as financing activities amounted to US$3.9 million and US$7.7 million in FY19 and FY20, respectively. Management considered the revision is immaterial, the impact of the revision was eliminated in consolidation, and there is no impact on the previously reported consolidated financial position, results of operations or cash flows. (c) 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 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 VIEs. If these expenses had been pushed down to the subsidiaries and VIEs during the periods presented, the Company's non-cash operating expenses would be lower and the VIE's non-cash operating expenses would be higher by the following amounts: FY19: nil, FY20: USD14.8 million, and USD0.4 million while subsidiaries’ non-cash operating expenses would be higher by the following amounts: FY19: USD0.2 million, FY20: USD35.8 million, and FY2021: USD4.7 million. The 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. 2. Summary of significant accounting policies (Continued) 2.3 Consolidation (Continued) Under the contractual arrangements with the VIEs, the Company has the power to direct activities of the VIEs and can have assets transferred out of the VIEs under its control. Therefore, the Company considers that there is no asset in any of the VIEs that can be used only to settle obligations of the VIEs, except for registered capital. As all 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 VIEs. Unrecognized revenue-producing assets held by the 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. |
Segment reporting | 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 Group has only one operating and reportable segment. The Group’s long-lived assets are substantially all located in the PRC. |
Foreign currency translation | 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 income/(loss) during the period in which they occur. |
Mezzanine equity | 2.6 Mezzanine equity represents the Series A Preferred Shares issued by the Company. The Series A Preferred Shares are redeemable at the holders’ option any time after a certain date and were contingently redeemable upon the occurrence of certain liquidation events outside of the Group’s control. Therefore, the Group classifies the Series A Preferred Shares as mezzanine equity. In accordance with ASC 480-10, the mezzanine equity was initially measured based on its fair value at date of issue. Since the Series A Preferred Shares will be redeemable at the holder’s option after 5 years from issuance if the Series A Preferred Shares are not converted, either voluntarily or automatically upon a qualified initial public offering (“Qualified IPO”), the Group accretes changes in the redemption value over the period from the date of issuance to the earliest redemption date of the instrument using the effective interest method. Increase in carrying amount shall be recorded as charges against retained earnings or, in the absence of retained earnings, by charges against additional paid-in capital. In June 2020, all 29,000,000 issued and outstanding Series A Preferred Shares were converted into Class A ordinary shares upon the completion of the IPO. |
Revenue recognition | 2. Summary of significant accounting policies (Continued) 2. 7 Revenue is principally generated by the provision of data connectivity services and the sales of terminals and sales of data related products. Revenue represents the fair value of the consideration received or receivable for the sales of goods and the provision of services in the ordinary course of the Group’s activities and is recorded net of value-added tax (“VAT”). The Group recognizes revenue in accordance with ASC 606 “Revenue from Contracts with Customers” for all years presented with full retrospective method. The Group conducts its business through various contracts with customers, including: (i) Data connectivity services The Group generates international data connectivity services revenues from (i) data service fees from the use of portable Wi-Fi terminals (under its brand of “Roamingman”), (ii) data service fees generated from sales of data connectivity services to enterprise customers, and (iii) retail sales of data connectivity services. The Group also generates local data connectivity services revenues from (i) data service fees generated from sales of data connectivity services to enterprise customers, and (ii) retail sales of data connectivity services. For data connectivity services from the use of portable Wi-Fi terminals, the Group determines that the arrangement involves the leasing of portable Wi-Fi terminals with data connectivity services embedded. The Group determines that it is the lessor in the arrangement which contains an equipment lease component and a service non-lease component. The Group further determines that lease component is an operating lease under ASC 840, and that the operating lease component and service component are delivered over the same time and pattern. Therefore, the lease income and service income are recognized as data connectivity services revenue evenly over the service period. The Group evaluates and determines that it is the principal. For data connectivity services from the use of portable Wi-Fi terminals and retail sales of data connectivity services, the Group views users as its customers. For data connectivity services generated from sales of data connectivity services to enterprise customers, the Group views enterprise customers as its customers. The Group reports data connectivity services revenues on gross basis. Accordingly, the amounts paid for data connectivity services by customers are recorded as revenues and the related commission fees paid to its agents (mainly travel agents and other online distributors) are recorded as cost of revenues. Where the Group is the principal, it controls the data before the data connectivity service is provided to customers. Its control is evidenced by the inventory risk borne by the Group and the Group’s ability to direct the use of the data, and is further supported by the Group being primarily responsible to customers and having the discretion in establishing pricing. Data connectivity services offered to customers typically provide unlimited data usage during a fixed period of time (“contract period”), where revenue is recognized ratably on a straight-line basis over the contract period. The Group does not have further performance obligations to the customers after the contract period. The Group also offers data connectivity services where customers are charged service fee based on actual data usage, where revenue is recognized as the services are provided to customers. In providing data connectivity services to its customers, the Group procures SIM cards and data plans from various suppliers. Those SIM cards are activated and hosted on the Group’s cloud SIM platform. The Group’s cloud SIM platform manages terminal information and customer accounts and intelligently allocates the SIM cards and data plans and makes them available to customers who purchase the Group’s data connectivity services. Accordingly, the Group takes inventory risk and obtains control of the SIM cards and data plans procured and direct the use of the data on its cloud SIM platform depending on customers’ demand. The Group accounts for the SIM cards and data plans procured as costs of revenue as data is being made available and consumed on its cloud SIM platform. As the Group’s data connectivity services are provided without right of return and the Group does not provide any other credit and incentive to its customers, therefore, the Group’s provision of data connectivity services does not involve variable consideration. 2. Summary of significant accounting policies (Continued) 2. 7 (ii) Sales of terminals and data related products The Group generates revenues from selling tangible products, including GlocalMe portable Wi-Fi terminals, GlocalMe World Phone series and smartphones with GlocalMe Inside (“GMI”) implemented, as well as SIM cards, to enterprise and retail customers and business partners. Sales of terminals and data related products are recognized when control of promised goods is transferred to the customers, which generally occurs upon the acceptance of the goods by the customers. For sales of Wi-Fi terminals, one gigabyte of free data connectivity service is normally included as a bundle package for the first time purchase of the terminals. There are two separate performance obligations in such bundle sales as the Wi-Fi terminal is a distinct good while the data connectivity service is a distinct service. The Group allocates the transaction price to each distinct performance obligation based on their relative standalone selling prices. The Group then recognizes revenue for each of the distinct performance obligations identified in accordance with the applicable revenue recognition method relevant for that obligation. For revenue related to the Wi-Fi terminals, revenue is recognized when the control of the Wi-Fi terminals is transferred. For revenue related to the data connectivity service, it is recognized ratably on a straight-line basis over the relevant contract period. (iii) Provision of PaaS or SaaS services Platform-as-a-Service (PaaS) or Software-as-a-Service (SaaS) mainly consist of fees generated from providing cloud SIM platform as a service to business partners. The Group provides its cloud SIM platform as a service to business partners enabling them to manage their data resources. Business partners using the platform are charged service fees for the use of the cloud SIM platform services. The Group has continuous obligation to ensure the performance of the platform over the service period. Revenue is recognized ratably over the contract period as business partners simultaneously consume and receive benefits from the service. The Group does not provide any other credit and incentive related to the cloud SIM platform services, therefore there is no variable consideration in the arrangement. (iv) Contract balance Contract liabilities represent the cash collected upfront from the customers for purchase of data connectivity services or purchase of Wi-Fi terminals, while the underlying data connectivity services have not yet been rendered or the Wi-Fi terminals have not been delivered to the customers by the Group, which is included in the presentation of contract liabilities. Due to the generally short-term duration of the relevant contracts, all performance obligations are satisfied within one year. Where transaction prices for data connectivity services and Wi-Fi terminals are received upfront from the customers, such receipts are recorded as contract liabilities and recognized as revenues over the contract period. The opening balance of contract liabilities from several customers as of January 1, 2019 was US$3,940 thousands. For the year ended December 31, 2019, 2020 and 2021, revenue amounting to US$3,940 thousands, US$1,925 thousands and US$889 thousands were included in the contract liabilities balance at the beginning of the respective period. |
Cost of revenue | 2. 8 Cost of revenue Cost of revenue consists primarily of data connectivity service costs, cost of inventory, logistics costs, depreciation and maintenance costs for equipment, payment processing fees and other related incidental expenses that are directly attributable to the Group’s principal operations. |
Research and development expenses | 2. 9 Research and development expenses Research and development expenses primarily consist of salaries and benefits for research and development personnel, share-based compensation, materials, general expenses and depreciation expenses associated with research and development activities. |
Sales and marketing expenses | 2. Summary of significant accounting policies (Continued) 2.1 0 Sales and marketing expenses Sales and marketing expenses consist primarily of online and offline advertising expenses, promotion expenses, share-based compensation, staff costs, sales commissions and other related incidental expenses that are incurred to conduct the Group’s sales and marketing activities. Advertising and promotional expenses were US$5,991 thousands, US$2,695 thousands and US$2,846 thousands during the years ended December 31, 2019, 2020 and 2021, respectively. |
General and administrative expenses | 2.1 1 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 | 2 .1 2 Share-based compensation Share-based compensation expenses arise from share-based awards, mainly including Restricted Shares held by certain senior management (namely, Mr. Chaohui Chen, Mr. Zhiping Peng and Mr. Wen Gao), and share options and Restricted Shares awarded to employees, directors and other consultants in accordance with ASC 718 Stock Compensation. The Group follows ASC 718 to determine whether share option or Restricted Shares should be classified and accounted for as a liability award or equity award. All grants of share-based awards to employees, certain senior management and directors classified as equity awards are recognized in the financial statements based on their grant date fair values which are calculated using an option pricing model. The Group classifies the share-based awards granted to employees, certain senior management, directors and other consultants as equity award, and has elected to recognize compensation expense on share-based awards with service condition on a graded vesting basis over the requisite service period, which is generally the vesting period. The Group entered into a share restriction agreement with certain senior management and their respective wholly owned companies, which directly hold the equity interest in the Group. Pursuant to the share restriction agreement, all ordinary shares (“Restricted Shares”) of the Group held by certain senior management shall be subject to vesting conditions until the Restricted Shares become vested. The Restricted Shares were classified as equity awards under ASC 718 and are accounted for as share-based compensation based on the grant date fair value over the vesting period using graded vesting method. For share options awarded to employees, directors and other consultants, the Group applies the Binominal option pricing model in determining the fair value of options granted under ASC 718. The Group has elected to account for forfeitures when they occur. On each measurement date, the Group reviews internal and external sources of information to assist in the estimation of various attributes to determine the fair value of the share-based awards granted by the Group, including the fair value of the underlying shares, expected life and expected volatility. The Group is required to consider many factors and makes certain assumptions during this assessment. If any of the assumptions used to determine the fair value of the share-based awards change significantly in the future, share-based compensation expense may differ materially. |
Other employee benefits | 2.1 3 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, 2019, 2020 and 2021, contributions to such plan amounting to US$3,836 thousands, US$2,077 thousands and US$3,074 thousands respectively, were charged to the consolidated statements of comprehensive income/(loss). The Group also makes payments to other defined contribution plans for the benefit of employees employed by subsidiaries outside of the PRC. |
Income taxes | 2. Summary of significant accounting policies (Continued) 2.1 4 Income taxes The Group accounts for income taxes using the liability method, under which deferred income taxes are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized as income or expense in the period that includes the enactment date. Valuation allowance is provided on deferred tax assets to the extent that it is more likely than not that the asset will not be realizable in the foreseeable future. Deferred taxes are also recognized on the undistributed earnings of subsidiaries, which are presumed to be transferred to the parent company and are subject to withholding taxes, unless there is sufficient evidence to show that the subsidiary has invested or will invest the undistributed earnings indefinitely or that the earnings will be remitted in a tax-free manner. The Group adopts ASC 740 “Income Taxes” which prescribes a more likely than not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. It also provides guidance on derecognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods and income tax disclosures. The Group did not have significant unrecognized uncertain tax positions or any unrecognized liabilities, interest or penalties associated with unrecognized tax benefit as of and for the years ended December 31, 2019, 2020 and 2021. |
Government grants | 2.1 5 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. |
Leases | 2.1 6 Leases Leases are classified as either capital or operating leases. Leases that transfer substantially all the benefits and risks incidental to the ownership of assets are accounted for as capital 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 wherein rental payments (net of any incentives received from the lessor) are recognized in the consolidated statements of comprehensive income/(loss) on a straight-line basis over the lease terms. |
Comprehensive income/(loss) | 2.1 7 Comprehensive income/(loss) Comprehensive income/(loss) is defined to include all changes in equity of the Group during a period arising from transactions and other event and circumstances except those resulting from investments by shareholders and distributions to shareholders. For the years presented, the Group’s comprehensive 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). |
Income/(loss) per share | 2.1 8 Income/(loss) per share Basic income/(loss) per share is computed by dividing net income/(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 income/(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 Group’s convertible redeemable preferred shares, redeemable ordinary shares and convertible bonds using the if-converted method and shares issuable upon the exercise of share options using the treasury stock method. Ordinary equivalent shares are not included in the denominator of the diluted loss per share calculation when inclusion of such shares would be anti-dilutive. |
Cash, cash equivalents and restricted cash | 2. 19 Cash, cash equivalents and restricted cash 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. The Group adopted ASU No. 2016-18, Statement of Cash Flows: Restricted Cash (Topic 230) for all years presented. Restricted cash represents cash reserved in an escrow account for legal proceedings purpose (Note 23(c)), which is reported separately on the face of the consolidated balance sheets. Cash, cash equivalents and restricted cash as reported in the consolidated statement of cash flows are presented separately on the consolidated balance sheet as follows: December 31, December 31, (In thousands) 2020 2021 Cash and cash equivalents 21,989 7,868 Restricted cash 8,237 — Total 30,226 7,868 |
Inventories | 2.2 0 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$230 thousands, US$948 thousands and US$12 thousands were recorded in cost of revenues in the consolidated statements of comprehensive income/(loss) for the years ended December 31, 2019, 2020 and 2021 respectively. |
Accounts receivable, net | 2.2 1 Accounts receivable, net Accounts receivable are presented net of allowance for doubtful accounts. The Group evaluates the creditworthiness of each customer at the time when services are rendered or products are sold and continuously monitor the recoverability of the accounts receivable. The Group uses specific identification method in providing for bad debts when facts and circumstances indicate that collection is doubtful and a loss is probable and estimable. If the financial conditions of its customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances might be required. The allowance for doubtful accounts is based on the best facts available and is re-evaluated and adjusted on a regular basis as additional information is received. Some of the factors that the Group considers in determining whether a bad debt allowance is recorded on an individual customer are: (i) the customer’s past payment history and whether it fails to comply with its payment schedule; (ii) whether the customer is in financial difficulty due to economic or legal factors; (iii) a significant dispute with the customer has occurred; (iv) the objective evidence which indicates non-collectability of the accounts receivable. |
Investment in equity method investees | 2.2 2 Investment in equity method investees |
Property and equipment | 2.2 3 Property and equipment Property and equipment are stated at historical cost less accumulated depreciation and impairment loss, if any. Depreciation is calculated using the straight-line method over their estimated useful lives. Residual rate is determined based on the economic value of the property and equipment at the end of the estimated useful lives as a percentage of the original cost. Depreciation is calculated using the straight-line method to allocate their cost to their residual values over their estimated useful lives, as follows: Computers, server & switch and office equipment 5 years Wi-Fi terminals for data connectivity services 2 years Leasehold improvement Over the shorter of lease term or 3 years Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statements of comprehensive income/(loss). |
Intangible assets | 2.2 4 Intangible assets Intangible assets mainly consist of trademark, software and licensed copyrights. Identifiable intangible assets are carried at acquisition cost less accumulated amortization and impairment loss, if any. Finite-lived intangible assets are tested for impairment if impairment indicators arise. All intangible assets of the Group are finite-lived intangible assets. Amortization of finite-lived intangible assets is computed using the straight-line method over their estimated useful lives, which are as follows: Trademark 10 years Software 10 years Licensed copyrights 10 years |
Equity securities without readily determinable fair values | 2.2 5 Equity securities without readily determinable fair values The Group measures the long-term investment over which the Group does not have significant influence or that do not have readily determinable fair value at cost less impairment prior to January 1, 2018. Effective from January 1, 2018 with the adoption of ASU 2016-01, the Group has elected to use the measurement alternative to account for the equity investment, and therefore carries this investment at cost adjusted for changes from observable transactions for identical or similar investments of the same investee, less impairment. |
Impairment of long-lived assets | 2. Summary of significant accounting policies (Continued) 2. 2 6 Impairment of long-lived assets For long-lived assets the Group evaluates for impairment whenever events or changes indicate that the carrying amount of an asset may no longer be recoverable. The Group assesses the recoverability of the long-lived assets by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to receive from use of the assets and their eventual disposition. Such assets are considered to be impaired if the sum of the expected undiscounted cash flows is less than the carrying amount of the assets. The impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. The Group tests impairment of long-lived assets at the reporting unit level when impairment indicator appeared and recognizes impairment in the event at the carrying value exceeds the fair value of each reporting unit. No impairment charge of long-lived assets was recorded for the years ended December 31, 2019, 2020 and 2021. |
Software development costs | 2.2 7 Software development costs The Group incurred costs to research and develop relevant software that is used in its cloud SIM architecture. Costs incurred during the research phase are expensed as incurred. Costs incurred for the development of software prior to the establishment of technological feasibility, which is when a working model is available, are expensed when incurred. |
Fair value of financial instruments | 2.2 8 Fair value of financial instruments Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. The established fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs that may be used to measure fair value include: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Observable, market-based inputs, other than quoted prices, in active markets for identical assets or liabilities. Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Accounting guidance also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. The Group does not have any non-financial assets or liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. The Group’s financial instruments consist principally of other investments, cash and cash equivalents, short-term deposit, accounts receivable, accounts payable, contract liabilities and other liabilities. As of December 31, 2019, 2020 and 2021, 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 | 2. 29 Other investments The Group’s other investments consist of investment funds of which underlying assets are debt securities and equity securities. These investment funds are measured and recorded at fair value on a recurring basis with changes in fair value, whether realized or unrealized, recorded through the consolidated statements of comprehensive income/(loss). |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Subsidiaries and Variable Interest Entities | As of December 31, 2021, the details of the Company’s principal subsidiaries and VIEs were as follows: Entity Place of incorporation Date of incorporation Relationship % of direct or indirect economic ownership Principal activities UCLOUDLINK (HK) LIMITED Hong Kong 2 September 2014 Subsidiary 100 % Holding company HONG KONG UCLOUDLINK NETWORK TECHNOLOGY LIMITED Hong Kong 25 October 2010 Subsidiary 100 % Holding company, information technology services and sales of terminals and data related products Shenzhen Ucloudlink Technology Limited PRC 9 July 2015 Subsidiary 100 % Technology research and development 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 Consolidated VIE 100 % 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”) PRC 15 November 2014 Consolidated VIE 100 % Information technology services and sales of terminals and data related products 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 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Assets, Liabilities, Results of Operations and Changes in Cash and Cash Equivalents | The following table sets forth the assets, liabilities, results of operations and changes in cash and cash equivalents of the VIEs taken as a whole, which were included in the Company’s consolidated financial statements with intercompany balances and transactions eliminated between the VIEs: As of December 31, 2020 2021 (in thousands of US$) Cash and cash equivalents 1,734 293 Accounts receivable, net 1,450 1,333 Amounts due from subsidiaries 6,663 8,067 Property and equipment and intangible assets 2,311 1,195 Others 9,399 9,602 Total assets 21,557 20,490 Short term borrowings — 941 Amounts due to parent and subsidiaries 42,442 55,623 Accounts payable, accrued expenses and other liabilities 14,276 16,458 Contract liabilities 215 89 Others — 18 Total liabilities 56,933 73,129 Total shareholders’ deficit (35,376 ) (52,639 ) Years ended December 31, 2019 2020 2021 (in thousands of US$) Revenue (note a) 82,054 55,014 30,979 Net income/(loss) (note a) 3,160 (3,528 ) (16,244 ) Net cash used in operating activities (note b) (170 ) (4,933 ) (6,553 ) Net cash used in investing activities (2,697 ) (1,196 ) (178 ) Net cash generated from financing activities (note b) 3,726 2,988 5,290 Note: (a) Revenue and net income/(loss) incurred by the 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) The condensed financial information of the Group’s VIEs and subsidiaries of VIEs for the year ended December 31, 2019 and 2020 has been revised to reflect a reclassification adjustment on the presentation of cash flows between the Group’s VIEs and its other subsidiaries within the Group. Such cash flows were previously inappropriately presented under the operating activities of the condensed financial information of the Group’s VIEs and subsidiaries of VIEs. The condensed financial information has been revised to properly reflect the cash flows from other subsidiaries to the VIEs as financing activities amounted to US$3.9 million and US$7.7 million in FY19 and FY20, respectively. Management considered the revision is immaterial, the impact of the revision was eliminated in consolidation, and there is no impact on the previously reported consolidated financial position, results of operations or cash flows. (c) 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 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 VIEs. If these expenses had been pushed down to the subsidiaries and VIEs during the periods presented, the Company's non-cash operating expenses would be lower and the VIE's non-cash operating expenses would be higher by the following amounts: FY19: nil, FY20: USD14.8 million, and USD0.4 million while subsidiaries’ non-cash operating expenses would be higher by the following amounts: FY19: USD0.2 million, FY20: USD35.8 million, and FY2021: USD4.7 million. |
Schedule of Cash, Cash Equivalents and Restricted Cash | Cash, cash equivalents and restricted cash as reported in the consolidated statement of cash flows are presented separately on the consolidated balance sheet as follows: December 31, December 31, (In thousands) 2020 2021 Cash and cash equivalents 21,989 7,868 Restricted cash 8,237 — Total 30,226 7,868 |
Schedule of Depreciation Using Straight-Line Method to Allocate Their Cost to Their Residual Values Over Their 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 of lease term or 3 years |
Schedule of Amortization of Finite-Lived Intangible Assets Estimated Useful Lives | Amortization of finite-lived intangible assets is computed using the straight-line method over their estimated useful lives, which are as follows: Trademark 10 years Software 10 years Licensed copyrights 10 years |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Disaggregation of Revenue | Years ended December 31, (In thousands) 2019 2020 2021 Revenues from services —Data connectivity services 80,537 39,956 26,430 International data connectivity services 77,974 30,798 21,672 Local data connectivity services 2,563 9,158 4,758 —PaaS and SaaS services 9,135 5,717 10,770 —Others 1,438 477 598 91,110 46,150 37,798 Sales of products —Sales of terminals 54,880 32,597 27,408 —Sales of data related products 11,955 10,194 5,843 —Others 436 628 2,775 67,271 43,419 36,026 Total 158,381 89,569 73,824 In the following table, revenue is geographically disaggregated according to the locations of the customers. Years ended December 31, (In thousands) 2019 2020 2021 Japan 57,695 47,565 35,883 North America 15,254 23,513 24,183 Southeast Asia 8,442 2,495 4,173 Mainland China 50,862 9,631 3,842 Hong Kong SAR 14,664 2,771 2,199 Europe 3,972 1,706 1,845 Others 2,339 1,253 1,457 Taiwan 5,153 635 242 Total 158,381 89,569 73,824 |
Other Income_(Expense), Net (Ta
Other Income/(Expense), Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Income And Expenses [Abstract] | |
Schedule of Other Income/(Expense), Net | Years ended December 31, (In thousands) 2019 2020 2021 Foreign exchange losses, net (1,893 ) (153 ) (1,106 ) Government grants (note) 1,662 2,283 1,012 Gains on disposal of property and equipment, net 339 375 94 Fair value gains/(losses) on other investments — 4,909 (12,363 ) Others 182 140 487 Total 290 7,554 (11,876 ) Note: Government grants mainly represent amounts received from central and local governments in connection with the Group’s investments in local business districts and contributions to technology development. |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Summary of Income/(Loss) Before Income Taxes | The Group’s income/(loss) before income taxes consisted of: Years (In thousands) 2019 2020 2021 Non-PRC (416 ) (54,627 ) (28,212 ) PRC 5,680 (8,603 ) (17,872 ) Total 5,264 (63,230 ) (46,084 ) |
Schedule of Reconciliation of Income Tax Expenses | The reconciliations of the income tax expenses for the years ended December 31, 2019, 2020 and 2021 were as follows: Years ended December 31, (In thousands) 2019 2020 2021 Income/(loss) before income tax 5,264 (63,230 ) (46,084 ) Income tax computed at statutory PRC income tax rate (25%) (i) 1,316 (15,808 ) (11,521 ) Differential income tax rates applicable to certain entities comprising the Group 120 13,121 4,061 Effect of tax holiday (569 ) 824 1,786 Permanent differences (ii) 136 451 1,826 Change in valuation allowance 322 2,735 5,405 Accelerated deductions on research and development expenses (iii) (1,268 ) (1,138 ) (1,313 ) Income tax expenses 57 185 244 (i) The PRC statutory income tax rate was used because the majority of the Group’s operations are based in the PRC. (ii) Permanent differences primarily represent non-deductible expenses. (iii) This amount represents tax incentives relating to the research and development expenses of certain major operating subsidiaries in the PRC. This tax incentive enables those subsidiaries to claim an additional tax deduction amounting to 75% of the qualified research and development expenses incurred. |
Summary of Per Share Effect of Tax Holidays | The per share effect of the tax holidays are as follows: Years ended December 31, (In thousands) 2019 2020 2021 Effect of tax holiday (569 ) 824 1,786 Per share effect – basic and diluted 0.00 (0.00 ) (0.01 ) |
Schedule of Components of Deferred Tax Assets | The components of the deferred tax assets are as follows: Years ended December 31, (In thousands) 2019 2020 2021 Deferred tax assets Net operating loss carryforwards 6,991 9,416 14,808 Accrued expenses and others 104 414 427 Less: valuation allowance (7,095 ) (9,830 ) (15,235 ) Net deferred tax assets — — — |
Summary of Movement of Valuation Allowance | Movement of valuation allowance Years ended December 31, (In thousands) 2019 2020 2021 Balance at beginning of the year 6,773 7,095 9,830 Change of valuation allowance 322 2,735 5,405 Balance at end of the year 7,095 9,830 15,235 |
Redeemable and Convertible Sh_2
Redeemable and Convertible Shares (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Temporary Equity Disclosure [Abstract] | |
Schedule of Mezzanine Equity Activities | The activities of Series A Preferred Shares included in mezzanine equity for the years ended December 31, 2020 and 2021 are as follows: (In thousands) Series A Preferred Shares Balance as of December 31, 2019 22,977 Accretion 1,293 Conversion and redesignation of Preferred Shares (24,270 ) Balance as of December 31,2020 and 2021 — |
Share-based Awards (Tables)
Share-based Awards (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
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) 2019 2020 2021 —Restricted Shares (a) 169 — 5,573 —Share options (b) — 50,607 3,184 Total 169 50,607 8,757 |
Summary of Restricted Shares Activity | A summary of the Restricted Shares activity for the years ended December 31, 2019, 2020 and 2021 is presented below: (Number of shares) Number of Restricted Shares Outstanding as of January 1, 2019 3,702,222 Vested (3,702,222 ) Outstanding as of December 31, 2019, 2020 — Granted 6,261,100 Forfeited (345,000 ) Vested (3,000,000 ) Outstanding as of December 31, 2021 2,916,100 |
Summary of Changes in Share Options Granted by the Company | A summary of the changes in the share options granted by the Company during the year ended December 31, 2019, 2020 and 2021 is as follows: Number of share options Weighted average exercise price Aggregate intrinsic value Outstanding as of January 1, 2019 12,187,420 $ 0.51 $ 37,604,315 Granted 5,414,300 $ 0.54 $ 15,919,687 Forfeited (205,980 ) $ 0.50 $ (572,154 ) Outstanding as of December 31, 2019 17,395,740 $ 0.52 $ 52,951,848 Exercisable as of December 31, 2019 — — — Granted 6,163,017 $ 0.55 $ 7,668,544 Forfeited (683,280 ) $ 0.67 $ (1,733,224 ) Exercised (576,720 ) $ 0.50 $ (1,804,198 ) Outstanding as of December 31, 2020 22,298,757 $ 0.54 $ 57,082,970 Exercisable as of December 31, 2020 — $ — $ — 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 |
Assumptions used to Determine Fair Value of Share Options Granted | The Group calculated the estimated fair value of an options on the grant date using the binomial option pricing model with assistance from an independent valuation firm. Assumptions used to determine the fair value of share options granted during the year ended December 31, 2019, 2020 and 2021 is summarized in the following table: Years ended December 31, (In thousands) 2019 2020 2021 Risk-free interest rate (i) 1.53 % 0.33%-0.88% 1.22%-1.52% Expected dividend yield (ii) 0.00 % 0.00% 0.00% Expected volatility (iii) 36.88 % 37.94%-40.07% 35.01%-36.00% Grant date fair value $3.48 $0.98-$1.93 $0.06-$0.65 (i) Risk-free interest rate is based on the yields of United States Treasury securities with maturities similar to the expected life of the share options in effect at the time of grant. (ii) Expected dividend yield is assumed to be 0% as the Company has no history or expectation of paying dividend on its ordinary shares. (iii) Expected volatility is assumed based on the historical volatility of the Company’s comparable companies in the period equal to the expected life of each grant. |
Income_(loss) Per Share (Tables
Income/(loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Income/(Loss) Per Share | Basic and diluted net income/(loss) per share for each of the year presented were calculated as follows: Years ended December 31, (In thousands of US$ except share data and per share data) 2019 2020 2021 Numerator: Net income/(loss) 5,207 (63,415 ) (46,041 ) Add: Accretion of Series A Preferred Shares (2,540 ) (1,293 ) — Income allocation to participating preferred shareholders (296 ) — — Net income/(loss) attributable to ordinary shareholders of the Company for computing basic and diluted net income/(loss) per share 2,371 (64,708 ) (46,041 ) Denominator: Weighted average number of ordinary shares outstanding used in calculating basic and diluted net income/(loss) per share 232,178,037 259,852,204 285,979,036 Basic and diluted net income/(loss) per ordinary share 0.01 (0.25 ) (0.16 ) |
Schedule of Antidilutive Securities Excluded from Inclusion in Calculation 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, 2019 2020 2021 Convertible Redeemable Preferred Shares 29,000,000 — — Restricted Shares — — 2,916,100 Share options awards 17,395,740 22,298,757 19,225,361 Total 46,395,740 22,298,757 22,141,461 |
Cash and Cash Equivalents and_2
Cash and Cash Equivalents and Short-term Deposit (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments Debt And Equity Securities [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, 2020 and 2021 primarily consist of the following currencies: December 31, 2020 December 31, 2021 (In thousands) Original currency US$ equivalent Original currency US$ equivalent US$ 4,259 4,259 3,195 3,195 RMB 59,912 9,182 13,433 2,107 HKD 8,236 1,062 5,791 743 Others 7,682 2,019 Total 22,185 8,064 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounts Receivable Net Current [Abstract] | |
Schedule of Accounts Receivable Net | (In thousands) December 31, 2020 December 31, 2021 Accounts receivable 10,034 18,273 Less: Allowance for doubtful accounts (3,289 ) (3,350 ) Accounts receivable, net 6,745 14,923 |
Schedule of Movement in Allowance for Doubtful Accounts | The following table presents movement in the allowance for doubtful accounts: (In thousands) December 31, 2019 December 31, 2020 December 31, 2021 Balance at beginning of the year 473 495 3,289 Additions 74 2,785 67 Reversal (30 ) — (22 ) Write-off (20 ) — — Exchange difference (2 ) 9 16 Balance at end of the year 495 3,289 3,350 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | (In thousands) December 31, 2020 December 31, 2021 Raw materials 4,342 4,395 Finished goods 2,141 2,390 Less: write-down of obsolete inventories (636 ) (652 ) Total inventories 5,847 6,133 |
Prepayments and Other Assets (T
Prepayments and Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Prepaid Expense And Other Assets [Abstract] | |
Schedule of Prepayments and Other Current Assets | (In thousands) December 31, 2020 December 31, 2021 Prepayments 5,119 3,859 Deposits 2,344 1,389 Export tax receivable 507 744 VAT recoverable 118 729 Others 1,505 814 Total of prepayments and other assets 9,593 7,535 |
Schedule of Prepayments and Other Assets | (In thousands) December 31, 2020 December 31, 2021 Current 7,477 6,225 Non-current 2,116 1,310 Total of prepayments and other assets 9,593 7,535 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment consist of the following: (In thousands) December 31, 2020 December 31, 2021 Computers 850 672 Server & switch 1,276 1,382 Office equipment 1,442 1,685 Wi-Fi terminals for data connectivity services 11,863 9,632 Leasehold improvement 555 589 Total original costs 15,986 13,960 Less: accumulated depreciation (12,957 ) (12,164 ) Net book value 3,029 1,796 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Asset, Net | (In thousands) Carrying amount Accumulated amortization Net carrying amount December 31, 2020 Purchased software 1,089 (203 ) 886 Trademarks 121 (62 ) 59 Licensed copyrights 179 (85 ) 94 Intangible assets 1,389 (350 ) 1,039 1 8 . (In thousands) Carrying amount Accumulated amortization Net carrying amount December 31, 2021 Purchased software 1,206 (322 ) 884 Trademarks 124 (76 ) 48 Licensed copyrights 181 (104 ) 77 Intangible assets 1,511 (502 ) 1,009 |
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) 2022 151 2023 151 2024 151 2025 151 2026 151 Thereafter 254 Total 1,009 |
Other Investments (Tables)
Other Investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments All Other Investments [Abstract] | |
Schedule of Other Investments | (In thousands) December 31, 2020 December 31, 2021 Current (i) 19,185 12,587 Non-current (ii) 17,824 12,058 Total 37,009 24,645 Note: (i) In June 2020, the Group made an investment in an investment fund for a cash consideration of US$15,000 thousands, for which the underlying assets were mainly comprised of debt securities and equity securities. It is redeemable at the option of the Group with one-month (ii) In June 2020, the Group made an investment in an investment fund for a cash consideration of US$17,100 thousands, for which the underlying assets were mainly comprised of unlisted bonds and subordinated debentures, for a period of 3 years. There was a fair value gain of US$724 thousands for the year ended December 31,2020 and a fair value loss of US$5,766 thousands for the year ended December 31, 2021. |
Accounts Payable, Accrued Exp_2
Accounts Payable, Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables And Accruals [Abstract] | |
Schedule of Accounts Payable, Accrued Expenses and Other Liabilities | (In thousands) December 31, 2020 December 31, 2021 Accounts payable to suppliers 8,701 12,986 Accrued bonus and staff costs 18,272 20,742 Other deposits 1,788 1,793 Other taxes payable (note) 934 881 Accrued professional fees 3,169 3,007 Accrued marketing expenses 342 75 Others 1,237 1,082 Total 34,443 40,566 Note: Other taxes payable represents business tax, VAT and related surcharges and PRC individual income tax of employees withheld by the Group. |
Short-term Borrowings (Tables)
Short-term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Short Term Borrowings [Abstract] | |
Schedule of Short-term Borrowings | (In thousands) December 31, 2020 December 31, 2021 Current Bank borrowings (i) 3,704 3,177 Note: (i) The Group’s short-term bank borrowings are primarily used for working capital and business development purposes and bear interest rate of 1.60% ~ 5.22% (2020: 1.90% ~ 5.22%) per annum, with a weighted average interest rate of 3.67% (2020: 4.58%) per annum. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | (b) During the years ended December 31, 2019, 2020 and 2021, other than disclosed elsewhere, the Company had the following material related party transactions: Years ended December 31, (In thousands) 2019 2020 2021 Revenue from provision of data connectivity services, PaaS and SaaS services and sales of terminals and data related products: Maya 4,419 8,010 9,370 Beijing Huaxianglianxin Technology Company — — 984 Purchase of data connectivity service: Maya — 47 26 Beijing Huaxianglianxin Technology Company — — 87 (c) The Company had the following related parties balances as December 31, 2020 and December 31, 2021: (In thousands) December 31, 2020 December 31, 2021 Deposits received from related parties: Maya 1,498 1,417 Contract liability : Maya — 18 Amounts payable to related parties: Maya 5 — Beijing Huaxianglianxin Technology Company — 18 Amounts receivable from related parties: Maya 2,264 1,108 Beijing Huaxianglianxin Technology Company — 45 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Non Cancellable Operating Lease Agreements | The Group has leased office premises and buildings under non-cancellable operating lease agreements. These leases have different terms and renewal rights. Year (In thousands) 2022 1,080 2023 243 2024 21 2025 — 2026 — Total 1,344 |
Additional Information_ Conde_2
Additional Information: Condensed Financial Statements of the Company (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Statements of Comprehensive Income/(Loss) of the Parent Company | Condensed statements of comprehensive income/(loss) of the parent company Years ended December 31, (Amounts expressed in thousands of US$ except for number of shares and per share data) 2019 2020 2021 Operating expenses (1,299 ) (50,638 ) (10,399 ) Loss before income tax (1,495 ) (50,925 ) (10,266 ) Income/(loss) from subsidiaries and former VIEs 6,702 (12,490 ) (35,775 ) Net income/(loss) 5,207 (63,415 ) (46,041 ) |
Condensed Balance Sheets of the Parent Company | Condensed balance sheets of the parent company Years ended December 31, (Amounts expressed in thousands of US$ except for number of shares and per share data) 2020 2021 Cash and cash equivalents 3,332 133 Amounts due from subsidiaries and former VIEs (note a) 123,337 126,536 Others 358 8 Total assets 127,027 126,677 Accounts payable, accrued expenses and other liabilities 1,078 1,188 Deficit in subsidiaries and former VIEs 65,346 101,138 Others 321 262 Amounts due to subsidiaries and former VIEs (note a) 3,888 3,997 Total liabilities 70,633 106,585 Total shareholders’ (deficit)/equity 56,394 20,092 |
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) 2019 2020 2021 Cash flows from operating activities Net cash used in operating activities (note a) (572 ) (1,514 ) (1,483 ) Cash flows from investing activities Intercompany fund transfers (4,712 ) (38,598 ) (3,000 ) Net cash used in investing activities (note a) (4,712 ) (38,598 ) (3,000 ) Cash flows from financing activities Proceeds from initial public offering, net of issuance costs — 29,904 — Proceeds from exercise of share options — — 1,284 Net cash generated from financing activities — 29,904 1,284 Decrease in cash, cash equivalents and restricted cash (5,284 ) (10,208 ) (3,199 ) Cash, cash equivalents and restricted cash at beginning of year 18,824 13,540 3,332 Cash, cash equivalents and restricted cash at end of year 13,540 3,332 133 Note (a): The condensed financial information of the Company for the year ended December 31, 2019 and 2020 has been revised to (i) reflect a reclassification adjustment on the presentation of cash flows between the Company and its subsidiaries within the Group. Such cash flows were previously inappropriately presented under the operating activities of the condensed financial information of the Company. The condensed financial information has been revised to properly reflect the cash flows from the Company to its subsidiaries as the investing activities amounted to US$4.7 million and US$38.6 million in FY19 and FY20, respectively; and (ii) reflect a reclassification adjustment on the presentation of the amount due from entities within the Group from current to non-current in nature amounted to US$123.3 million in FY20 and the amount due to entities within the Group from current to non-current in nature amounted to US$3.9 million in FY20. Management considered the revision is immaterial, the impact of the revision was eliminated in consolidation, and there is no impact on the previously reported consolidated financial position, results of operations or cash flows. |
Organization and Principal Ac_3
Organization and Principal Activities - Schedule of Principal Subsidiaries and VIEs (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Organization And Principal Activities [Line Items] | |
% of direct or indirect economic ownership | 50.00% |
UCLOUDLINK (HK) LIMITED | |
Organization And Principal Activities [Line Items] | |
Place of incorporation | Hong Kong |
Date of incorporation | Sep. 2, 2014 |
Relationship | Subsidiary |
% of direct or indirect economic ownership | 100.00% |
Principal activities | Holding company |
HONG KONG UCLOUDLINK NETWORK TECHNOLOGY LIMITED | |
Organization And Principal Activities [Line Items] | |
Place of incorporation | Hong Kong |
Date of incorporation | Oct. 25, 2010 |
Relationship | Subsidiary |
% of direct or indirect economic ownership | 100.00% |
Principal activities | Holding company, information technology services and sales of terminals and data related products |
Shenzhen Ucloudlink Technology Limited | |
Organization And Principal Activities [Line Items] | |
Place of incorporation | PRC |
Date of incorporation | Jul. 9, 2015 |
Relationship | Subsidiary |
% of direct or indirect economic ownership | 100.00% |
Principal activities | Technology research and development |
Shenzhen uCloudlink Co.,Ltd. | |
Organization And Principal Activities [Line Items] | |
Place of incorporation | PRC |
Date of incorporation | Jun. 7, 2018 |
Relationship | Subsidiary |
% of direct or indirect economic ownership | 100.00% |
Principal activities | Hardware exportation |
Beijing uCloudlink Technology Co., Ltd. | |
Organization And Principal Activities [Line Items] | |
Place of incorporation | PRC |
Date of incorporation | Jan. 29, 2015 |
Relationship | Subsidiary |
% of direct or indirect economic ownership | 100.00% |
Principal activities | Holding company |
UCLOUDLINK (SINGAPORE) PTE.LTD | |
Organization And Principal Activities [Line Items] | |
Place of incorporation | Singapore |
Date of incorporation | May 15, 2017 |
Relationship | Subsidiary |
% of direct or indirect economic ownership | 100.00% |
Principal activities | Sales and marketing |
UCLOUDLINK (UK) CO. LTD | |
Organization And Principal Activities [Line Items] | |
Place of incorporation | UK |
Date of incorporation | Oct. 13, 2014 |
Relationship | Subsidiary |
% of direct or indirect economic ownership | 100.00% |
Principal activities | Sales and marketing |
Ucloudlink (America), Limited | |
Organization And Principal Activities [Line Items] | |
Place of incorporation | USA |
Date of incorporation | Aug. 1, 2016 |
Relationship | Subsidiary |
% of direct or indirect economic ownership | 100.00% |
Principal activities | Sales and marketing |
UCLOUDLINK SDN.BHD | |
Organization And Principal Activities [Line Items] | |
Place of incorporation | Malaysia |
Date of incorporation | Aug. 24, 2017 |
Relationship | Subsidiary |
% of direct or indirect economic ownership | 100.00% |
Principal activities | Sales and marketing |
uCloudlink Japan Co.,Limited | |
Organization And Principal Activities [Line Items] | |
Place of incorporation | Japan |
Date of incorporation | Mar. 7, 2018 |
Relationship | Subsidiary |
% of direct or indirect economic ownership | 100.00% |
Principal activities | Sales and marketing |
Shenzhen uCloudlink Network Technology Co., Ltd. | |
Organization And Principal Activities [Line Items] | |
Place of incorporation | PRC |
Date of incorporation | Aug. 14, 2014 |
Relationship | Consolidated VIE |
% of direct or indirect economic ownership | 100.00% |
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.,Limited | |
Organization And Principal Activities [Line Items] | |
Place of incorporation | PRC |
Date of incorporation | Nov. 15, 2014 |
Relationship | Consolidated VIE |
% of direct or indirect economic ownership | 100.00% |
Principal activities | Information technology services and sales of terminals and data related products |
PT UCLOUDLINK TECHNOLOGIES PMA | |
Organization And Principal Activities [Line Items] | |
Place of incorporation | Indonesia |
Date of incorporation | Sep. 27, 2018 |
Relationship | Subsidiary |
% of direct or indirect economic ownership | 100.00% |
Principal activities | Sales and marketing |
UCLOUDLINK UK LIMITED | |
Organization And Principal Activities [Line Items] | |
Place of incorporation | UK |
Date of incorporation | Feb. 24, 2021 |
Relationship | Subsidiary |
% of direct or indirect economic ownership | 100.00% |
Principal activities | Sales and marketing |
Organization and Principal Ac_4
Organization and Principal Activities - Additional Information (Details) $ / shares in Units, $ in Thousands | Jun. 10, 2020USD ($)$ / sharesshares | Jun. 09, 2020shares | Jan. 31, 2022USD ($) | Dec. 31, 2021USD ($)$ / shares | Dec. 31, 2021USD ($)¥ / shares | Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2019USD ($) |
Organization And Principal Activities [Line Items] | |||||||
Option exercise price | $ / shares | $ 0.52 | $ 0.50 | |||||
Registered capital | $ 3,800 | $ 3,800 | $ 3,800 | $ 3,800 | |||
Proceeds from initial public offering, net of issuance costs | 29,904 | ||||||
Income (loss) from operations | (45,910) | (62,982) | 5,509 | ||||
Net cash used in operating activities | (21,738) | $ (2,038) | $ 5,761 | ||||
Cash and cash equivalents and short-term deposit | 8,100 | 8,100 | |||||
Short-term investments | $ 12,600 | $ 12,600 | |||||
Mr. Chaohui Chen and Mr. Zhiping Peng | |||||||
Organization And Principal Activities [Line Items] | |||||||
Redesignation of ordinary shares into class B ordinary shares | shares | 122,072,980 | ||||||
Class A Ordinary Shares | |||||||
Organization And Principal Activities [Line Items] | |||||||
Ordinary shares voting rights per shares | one | ||||||
Class B Ordinary Shares | |||||||
Organization And Principal Activities [Line Items] | |||||||
Ordinary shares voting rights per shares | fifteen | ||||||
IPO | ADS | |||||||
Organization And Principal Activities [Line Items] | |||||||
Sale of stock, shares issued | shares | 2,010,000 | ||||||
Ordinary shares issued | shares | 2,010,000 | ||||||
Sale of stock, price per share | $ / shares | $ 18 | ||||||
IPO | Class A Ordinary Shares | |||||||
Organization And Principal Activities [Line Items] | |||||||
Ordinary shares issued | shares | 20,100,000 | ||||||
Sale of stock, price per share | $ / shares | $ 18 | ||||||
Proceeds from initial public offering, net of issuance costs | $ 27,600 | ||||||
Private Placement | Subsequent Event | |||||||
Organization And Principal Activities [Line Items] | |||||||
Proceeds from issuance of convertible debentures | $ 4,700 | ||||||
Beijing uCloudlink | |||||||
Organization And Principal Activities [Line Items] | |||||||
Option exercise price | ¥ / shares | $ 1 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2020shares | Dec. 31, 2021USD ($)Segment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||||
Percentage of voting power | 50.00% | ||||
Assets | $ 67,125,000 | $ 97,254,000 | |||
Number of operating segments | Segment | 1 | ||||
Number of reportable segments | Segment | 1 | ||||
Redeemable preferred shares, conversion conditions, term | 5 years | ||||
Contract liability | $ 3,940,000 | ||||
Revenue included in contract liability | $ 889,000 | 1,925,000 | $ 3,940,000 | ||
Advertising and promotional expenses | 2,846,000 | 2,695,000 | 5,991,000 | ||
Contributions by employer to plan | 3,074,000 | 2,077,000 | 3,836,000 | ||
Inventory write-downs | 12,000 | 948,000 | 230,000 | ||
Impairment charge of long-lived assets | 0 | 0 | $ 0 | ||
Class A Ordinary Shares | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Conversion of series A preferred shares into class A ordinary shares upon completion of IPO | shares | 29,000,000 | ||||
VIEs | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Assets | 20,490,000 | $ 21,557,000 | |||
VIEs | Contractual Arrangements | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Assets | $ 0 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Assets, and Liabilities,of VIEs (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | $ 7,868 | $ 21,989 | ||
Accounts receivable, net | 14,923 | 6,745 | ||
Total assets | 67,125 | 97,254 | ||
Short term borrowings | 3,177 | 3,704 | ||
Contract liabilities | 1,575 | 889 | ||
Other non-current liabilities | 262 | 321 | ||
Total liabilities | 47,033 | 40,860 | ||
Total shareholders’ deficit | 20,092 | 56,394 | $ 19,467 | $ 16,599 |
VIEs | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | 293 | 1,734 | ||
Accounts receivable, net | 1,333 | 1,450 | ||
Amounts due from subsidiaries | 8,067 | 6,663 | ||
Property and equipment and intangible assets | 1,195 | 2,311 | ||
Others | 9,602 | 9,399 | ||
Total assets | 20,490 | 21,557 | ||
Short term borrowings | 941 | |||
Amounts due to parent and subsidiaries | 55,623 | 42,442 | ||
Accounts payable, accrued expenses and other liabilities | 16,458 | 14,276 | ||
Contract liabilities | 89 | 215 | ||
Other non-current liabilities | 18 | |||
Total liabilities | 73,129 | 56,933 | ||
Total shareholders’ deficit | $ (52,639) | $ (35,376) |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Results of Operations and Changes in Cash and Cash Equivalents of VIEs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Variable Interest Entity [Line Items] | |||
Revenues | $ 73,824 | $ 89,569 | $ 158,381 |
Net income/(loss) | (46,041) | (63,415) | 5,207 |
Net cash used in operating activities | (21,738) | (2,038) | 5,761 |
Net cash used in investing activities | (935) | (35,444) | (3,267) |
Net cash generated from financing activities | 735 | 26,685 | 1,528 |
VIEs | |||
Variable Interest Entity [Line Items] | |||
Revenues | 30,979 | 55,014 | 82,054 |
Net income/(loss) | (16,244) | (3,528) | 3,160 |
Net cash used in operating activities | (6,553) | (4,933) | (170) |
Net cash used in investing activities | (178) | (1,196) | (2,697) |
Net cash generated from financing activities | $ 5,290 | $ 2,988 | $ 3,726 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Results of Operations and Changes in Cash and Cash Equivalents of VIEs (Parenthetical) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Variable Interest Entity [Line Items] | |||
Cash flows from financing activities | $ 735 | $ 26,685 | $ 1,528 |
Share-based compensation | 8,757 | 50,607 | 169 |
VIEs | |||
Variable Interest Entity [Line Items] | |||
Cash flows from financing activities | 5,290 | 2,988 | 3,726 |
Reclassification Adjustment | Other Subsidiaries | |||
Variable Interest Entity [Line Items] | |||
Cash flows from financing activities | (7,700) | (3,900) | |
Reclassification Adjustment | VIEs | |||
Variable Interest Entity [Line Items] | |||
Cash flows from financing activities | 7,700 | 3,900 | |
Reclassification Adjustment | Parent | |||
Variable Interest Entity [Line Items] | |||
Share-based compensation | 400 | 14,800 | |
Reclassification Adjustment | VIEs and Subsidiaries of VIEs | |||
Variable Interest Entity [Line Items] | |||
Share-based compensation | $ 4,700 | $ 35,800 | $ 200 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Additional Information (Details 1) | Dec. 31, 2021 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Summary Of Significant Accounting Policies [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 7,868 | $ 21,989 | ||
Restricted cash | 8,237 | |||
Total | $ 7,868 | $ 30,226 | $ 40,274 | $ 36,627 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Schedule of Depreciation Using Straight-Line Method to Allocate Their Cost to Their Residual Values Over Their Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Computers, Server & Switch and Office Equipment | |
Summary Of Significant Accounting Policies [Line Items] | |
Property and equipment | 5 years |
Wi-Fi Terminals for Data Connectivity Services | |
Summary Of Significant Accounting Policies [Line Items] | |
Property and equipment | 2 years |
Leasehold Improvement | |
Summary Of Significant Accounting Policies [Line Items] | |
Property and equipment, estimated useful lives | Over the shorter of lease term or 3 years |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Schedule of Amortization of Finite-Lived Intangible Assets Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Trademark | |
Summary Of Significant Accounting Policies [Line Items] | |
Finite-lived intangible assets, estimated useful lives | 10 years |
Software | |
Summary Of Significant Accounting Policies [Line Items] | |
Finite-lived intangible assets, estimated useful lives | 10 years |
Licensed Copyrights | |
Summary Of Significant Accounting Policies [Line Items] | |
Finite-lived intangible assets, estimated useful lives | 10 years |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements - Additional Information (Details) $ in Millions | Jan. 01, 2022USD ($) |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property and equipment, net |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other non-current liabilities |
ASU No. 2016-02 | Subsequent Event | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Right-of-use asset | $ 1.6 |
Lease liabilities | $ 1.6 |
Revenues - Schedule of Revenue
Revenues - Schedule of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation Of Revenue [Line Items] | |||
Total Revenue | $ 73,824 | $ 89,569 | $ 158,381 |
Revenues from Services | |||
Disaggregation Of Revenue [Line Items] | |||
Total Revenue | 37,798 | 46,150 | 91,110 |
Revenues from Services | Data Connectivity Services | |||
Disaggregation Of Revenue [Line Items] | |||
Total Revenue | 26,430 | 39,956 | 80,537 |
Revenues from Services | International Data Connectivity Services | |||
Disaggregation Of Revenue [Line Items] | |||
Total Revenue | 21,672 | 30,798 | 77,974 |
Revenues from Services | Local Data Connectivity Services | |||
Disaggregation Of Revenue [Line Items] | |||
Total Revenue | 4,758 | 9,158 | 2,563 |
Revenues from Services | PaaS and SaaS Services | |||
Disaggregation Of Revenue [Line Items] | |||
Total Revenue | 10,770 | 5,717 | 9,135 |
Revenues from Services | Others | |||
Disaggregation Of Revenue [Line Items] | |||
Total Revenue | 598 | 477 | 1,438 |
Sale of Products | |||
Disaggregation Of Revenue [Line Items] | |||
Total Revenue | 36,026 | 43,419 | 67,271 |
Sale of Products | Terminals | |||
Disaggregation Of Revenue [Line Items] | |||
Total Revenue | 27,408 | 32,597 | 54,880 |
Sale of Products | Data Related Products | |||
Disaggregation Of Revenue [Line Items] | |||
Total Revenue | 5,843 | 10,194 | 11,955 |
Sale of Products | Others | |||
Disaggregation Of Revenue [Line Items] | |||
Total Revenue | $ 2,775 | $ 628 | $ 436 |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation Of Revenue [Line Items] | |||
Total Revenue | $ 73,824 | $ 89,569 | $ 158,381 |
Japan | |||
Disaggregation Of Revenue [Line Items] | |||
Total Revenue | 35,883 | 47,565 | 57,695 |
North America | |||
Disaggregation Of Revenue [Line Items] | |||
Total Revenue | 24,183 | 23,513 | 15,254 |
Southeast Asia | |||
Disaggregation Of Revenue [Line Items] | |||
Total Revenue | 4,173 | 2,495 | 8,442 |
Mainland China | |||
Disaggregation Of Revenue [Line Items] | |||
Total Revenue | 3,842 | 9,631 | 50,862 |
Hong Kong | |||
Disaggregation Of Revenue [Line Items] | |||
Total Revenue | 2,199 | 2,771 | 14,664 |
Europe | |||
Disaggregation Of Revenue [Line Items] | |||
Total Revenue | 1,845 | 1,706 | 3,972 |
Others | |||
Disaggregation Of Revenue [Line Items] | |||
Total Revenue | 1,457 | 1,253 | 2,339 |
Taiwan | |||
Disaggregation Of Revenue [Line Items] | |||
Total Revenue | $ 242 | $ 635 | $ 5,153 |
Other Income_(Expense), Net - S
Other Income/(Expense), Net - Schedule of Other Income/(Expense), Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Income And Expenses [Abstract] | |||
Foreign exchange losses, net | $ (1,106) | $ (153) | $ (1,893) |
Government grants | 1,012 | 2,283 | 1,662 |
Gains on disposal of property and equipment, net | 94 | 375 | 339 |
Fair value gains/(losses) on other investments | (12,363) | 4,909 | |
Others | 487 | 140 | 182 |
Total | $ (11,876) | $ 7,554 | $ 290 |
Taxation - Additional Informati
Taxation - Additional Information (Details) - USD ($) $ in Thousands | Jan. 01, 2008 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax [Line Items] | ||||
Unified corporate income tax rate | 25.00% | |||
Preferential tax rate | 15.00% | |||
Preferential tax rate extension period | 3 years | |||
Statutory income tax rate | 25.00% | 25.00% | 25.00% | |
Net operating loss carryforwards | $ 100,986 | $ 61,257 | $ 45,712 | |
Minimum | ||||
Income Tax [Line Items] | ||||
Statutory income tax rate | 15.00% | |||
Net operating loss carryforwards expiration year | 2026 | |||
Maximum | ||||
Income Tax [Line Items] | ||||
Statutory income tax rate | 25.00% | |||
Net operating loss carryforwards expiration year | 2030 | |||
Hong Kong | ||||
Income Tax [Line Items] | ||||
Statutory income tax rate | 16.50% | |||
Shenzhen Ucloudlink Technology Limited | ||||
Income Tax [Line Items] | ||||
Preferential tax rate | 15.00% | 15.00% | ||
Preferential tax rate extension period | 3 years | 3 years |
Taxation - Summary of Income_(L
Taxation - Summary of Income/(Loss) Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income/(loss) before income taxes - Non-PRC | $ (28,212) | $ (54,627) | $ (416) |
Income/(Loss) before income taxes - PRC | (17,872) | (8,603) | 5,680 |
Income/(loss) before income tax | $ (46,084) | $ (63,230) | $ 5,264 |
Taxation - Schedule of Reconcil
Taxation - Schedule of Reconciliation of Income Tax Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income/(loss) before income tax | $ (46,084) | $ (63,230) | $ 5,264 |
Income tax computed at statutory PRC income tax rate (25%) | (11,521) | (15,808) | 1,316 |
Differential income tax rates applicable to certain entities comprising the Group | 4,061 | 13,121 | 120 |
Effect of tax holiday | 1,786 | 824 | (569) |
Permanent differences | 1,826 | 451 | 136 |
Change in valuation allowance | 5,405 | 2,735 | 322 |
Accelerated deductions on research and development expenses | (1,313) | (1,138) | (1,268) |
Income tax expenses | $ 244 | $ 185 | $ 57 |
Taxation - Schedule of Reconc_2
Taxation - Schedule of Reconciliation of Income Tax Expenses (Parenthetical) (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Statutory income tax rate | 25.00% | 25.00% | 25.00% |
Tax incentive subsidiaries to claim tax deduction | 75.00% |
Taxation - Summary of Per Share
Taxation - Summary of Per Share Effect of Tax Holidays (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Effect of tax holiday | $ 1,786 | $ 824 | $ (569) |
Per share effect – basic and diluted | $ (0.01) | $ 0 | $ 0 |
Taxation - Schedule of Componen
Taxation - Schedule of Components of Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets | ||||
Net operating loss carryforwards | $ 14,808 | $ 9,416 | $ 6,991 | |
Accrued expenses and others | 427 | 414 | 104 | |
Less: valuation allowance | $ (15,235) | $ (9,830) | $ (7,095) | $ (6,773) |
Taxation - Summary of Movement
Taxation - Summary of Movement of Valuation Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of the year | $ 9,830 | $ 7,095 | $ 6,773 |
Change in valuation allowance | 5,405 | 2,735 | 322 |
Balance at end of the year | $ 15,235 | $ 9,830 | $ 7,095 |
Ordinary Shares - Additional In
Ordinary Shares - Additional Information (Details) $ / shares in Units, ¥ in Millions | Jun. 10, 2020USD ($)$ / sharesshares | Jun. 09, 2020USD ($)Vote$ / sharesshares | May 19, 2019$ / sharesshares | Aug. 28, 2018shares | Mar. 22, 2018shares | Jun. 19, 2017USD ($)$ / sharesshares | Sep. 22, 2016USD ($)shares | Jan. 01, 2016$ / sharesshares | Nov. 25, 2015USD ($)shares | Jan. 28, 2015USD ($)$ / sharesshares | Dec. 31, 2021$ / sharesshares | Dec. 31, 2020$ / sharesshares | Dec. 31, 2019shares | Dec. 31, 2018shares | Dec. 31, 2017CNY (¥)shares | May 18, 2020USD ($)$ / sharesshares |
Class Of Stock [Line Items] | ||||||||||||||||
Ordinary shares, authorized amount | $ | $ 100,000 | $ 50,000 | $ 50,000 | |||||||||||||
Common Stock, Shares Authorized | 2,000,000,000 | 1,000,000,000 | 50,000,000 | |||||||||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.00005 | $ 0.00005 | $ 0.00005 | $ 0.001 | ||||||||||||
Shares subdivided, number of shares | 20 | |||||||||||||||
Common Stock, Shares, Outstanding | 232,451,900 | |||||||||||||||
Vesting period | 4 years | 5 years | ||||||||||||||
Ordinary shares repurchased price per share | $ / shares | $ 0.96 | |||||||||||||||
Ordinary shares repurchased | 8,630,140 | |||||||||||||||
Ordinary shares repurchased, amount | $ | $ 8,297,880 | |||||||||||||||
Reduction of additional paid in capital for cancellation of repurchased ordinary shares | $ | $ 8,298,236 | |||||||||||||||
Cumulative revenue | ¥ | ¥ 500 | |||||||||||||||
Number of shares issued upon conversion | 35,004,220 | |||||||||||||||
Treasury shares exercised | 0 | 0 | ||||||||||||||
Treasury shares issued | 0 | 0 | ||||||||||||||
Conversion of shares, basis | 1 | |||||||||||||||
Number of shares issued upon conversion | 122,072,980 | |||||||||||||||
Number of shares issued upon exercise of outstanding stock options | 1,919,760 | 576,720 | ||||||||||||||
2018 Stock Option Scheme | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Conversion of shares, basis | 55,980,360 | |||||||||||||||
Treasury Shares | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Ordinary shares issued | 31,665,280 | 4,315,080 | 20,000,000 | |||||||||||||
Series A Preferred Stock | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Ordinary shares transferred | 4,000,000 | |||||||||||||||
Ordinary shares transferred fair value per share | $ / shares | $ 0.88 | |||||||||||||||
Class B Ordinary Shares | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 | ||||||||||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.00005 | $ 0.00005 | ||||||||||||||
Common Stock, Shares, Outstanding | 122,072,980 | 122,072,980 | ||||||||||||||
Conversion of shares, basis | 1 | |||||||||||||||
Number of votes per ordinary share | Vote | 15 | |||||||||||||||
Class B Ordinary Shares | IPO | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Common Stock, Shares, Outstanding | 122,072,980 | |||||||||||||||
Class B Ordinary Shares | IPO | Chaohui Chen | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Common Stock, Shares, Outstanding | 61,346,560 | |||||||||||||||
Class B Ordinary Shares | IPO | Zhiping Peng | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Common Stock, Shares, Outstanding | 60,726,420 | |||||||||||||||
Class A Ordinary Shares | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Common Stock, Shares Authorized | 1,700,000,000 | 1,700,000,000 | ||||||||||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.00005 | $ 0.00005 | ||||||||||||||
Common Stock, Shares, Outstanding | 164,975,400 | 160,055,640 | ||||||||||||||
Conversion of shares, basis | 1 | |||||||||||||||
Number of votes per ordinary share | Vote | 1 | |||||||||||||||
Number of shares issued upon exercise of outstanding stock options | 1,919,760 | 576,720 | ||||||||||||||
Class A Ordinary Shares | IPO | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Common Stock, Shares, Outstanding | 159,478,920 | |||||||||||||||
Ordinary shares issued | 20,100,000 | |||||||||||||||
Ordinary shares converted into Class A ordinary share | 110,378,920 | |||||||||||||||
Ordinary shares issued and sold price per ADS | $ / shares | $ 18 | |||||||||||||||
Preferred shares converted into ordinary shares | 29,000,000 | |||||||||||||||
ADS | IPO | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Ordinary shares issued | 2,010,000 | |||||||||||||||
Ordinary shares issued and sold price per ADS | $ / shares | $ 18 | |||||||||||||||
Series A SPA | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Ordinary shares issued | 8,400,000 | |||||||||||||||
Ordinary shares issued, total consideration | $ | $ 4,056,206 | |||||||||||||||
Series A SPA | Series A Preferred Stock | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Ordinary shares issued | 25,000,000 | |||||||||||||||
Ordinary shares issued, total consideration | $ | $ 9,788,652 | |||||||||||||||
A-1 SPA | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Ordinary shares issued | 26,575,220 | |||||||||||||||
Ordinary shares issued, total consideration | $ | $ 21,555,470 | |||||||||||||||
Ordinary shares redemption price compounded annual interest rate | 1000.00% | |||||||||||||||
A-2 SPA | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Ordinary shares issued | 8,502,600 | |||||||||||||||
Ordinary shares issued, total consideration | $ | $ 10,000,000 | |||||||||||||||
Ordinary shares redemption price compounded annual interest rate | 1200.00% | |||||||||||||||
Restricted Shares | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Common Stock, Shares, Outstanding | 162,897,778 | |||||||||||||||
Vesting period | 4 years | 5 years | ||||||||||||||
Ordinary shares repurchased price per share | $ / shares | $ 0.00005 | |||||||||||||||
Ordinary shares, vested | 3,000,000 | 3,702,222 | 44,426,667 | 44,426,667 |
Redeemable and Convertible Sh_3
Redeemable and Convertible Shares - Additional Information (Details) - shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2019 | |
Series A Preferred Shares | ||
Temporary Equity [Line Items] | ||
Preferred shares outstanding | 29,000,000 | |
Liquidation preference | In a liquidation event, all proceeds resulted from the liquidation event will be first distributed to the Series A Preferred Shares holder based on 100% of the preferred shares purchase price, plus an annual compounded return of 10%, plus any declared but unpaid dividend. | |
Liquidation preference percentage for temporary equity | 100.00% | |
Eligible annual compound interest in liquidation event | 10.00% | |
Number of ordinary shares issued upon conversion of convertible securities | 1 | |
Number of additional ordinary shares issued for each convertible securities before closing of IPO | 1 | |
Maximum redemption percentage on purchase price of preferred shares | 100.00% | |
Maximum redemption percentage of annual compound return on purchase price of preferred shares | 15.00% | |
Class A Ordinary Shares | ||
Temporary Equity [Line Items] | ||
Conversion of Series A Preferred Shares upon IPO | 29,000,000 |
Redeemable and Convertible Sh_4
Redeemable and Convertible Shares - Schedule of Mezzanine Equity Activities (Details) - Series A Preferred Shares $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Temporary Equity [Line Items] | |
Balance | $ 22,977 |
Accretion | 1,293 |
Conversion and redesignation of Preferred Shares | $ (24,270) |
Share-based Awards - Compensati
Share-based Awards - Compensation Expense Recognized for Share-based Awards (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total compensation expense recognized | $ 8,757 | $ 50,607 | $ 169 |
Restricted Shares | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total compensation expense recognized | 5,573 | $ 169 | |
Share Options | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total compensation expense recognized | $ 3,184 | $ 50,607 |
Share-based Awards - Additional
Share-based Awards - Additional Information (Details) - USD ($) $ in Thousands | Nov. 27, 2021 | Jul. 01, 2021 | Feb. 26, 2021 | Nov. 27, 2020 | Aug. 03, 2020 | Apr. 27, 2020 | Aug. 12, 2019 | Sep. 22, 2016 | Jan. 28, 2015 | Oct. 31, 2021 | Jul. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||
Ordinary shares vesting period | 4 years | 5 years | |||||||||||||
Number of shares granted | 820,000 | 6,163,017 | 5,414,300 | ||||||||||||
Vesting period to exercise option after commencement date | 6 years | ||||||||||||||
Restricted Shares | |||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||
Ordinary shares vesting period | 4 years | 5 years | |||||||||||||
Unrecognized share-based compensation expense | $ 1,130 | ||||||||||||||
Share Options | |||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||
Unrecognized share-based compensation expense | $ 3,932 | ||||||||||||||
2019 Plan | |||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||
Number of shares granted | 140,000 | ||||||||||||||
Percentage increase in number of shares issued and outstanding | 1.00% | ||||||||||||||
2019 Plan | Restricted Shares | |||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||
Number of shares granted | 2,717,500 | 239,600 | 3,304,000 | ||||||||||||
2018 Stock Option Scheme | |||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||
Number of shares granted | 680,000 | 12,187,420 | |||||||||||||
2018 Stock Option Scheme | Maximum | |||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||
Number of shares granted | 55,980,360 | ||||||||||||||
Revised 2018 Plan | |||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||
Number of shares granted | 200,000 | 1,000,000 | 4,963,017 | 5,414,300 | |||||||||||
Revised 2018 Plan | Maximum | Directors, Officers and Employees | |||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||||||||
Aggregate number of ordinary shares issued | 40,147,720 |
Share-based Awards - Summary of
Share-based Awards - Summary of Restricted Shares Activity (Details) - Restricted Shares - shares | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Outstanding, Beginning balance | 3,702,222 | |||
Granted | 6,261,100 | |||
Forfeited | (345,000) | |||
Vested | (3,000,000) | (3,702,222) | (44,426,667) | (44,426,667) |
Outstanding, Ending balance | 2,916,100 | 3,702,222 |
Share-based Awards - Summary _2
Share-based Awards - Summary of Changes in Share Options Granted by the Company (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of share options | |||
Outstanding, Beginning balance | 22,298,757 | 17,395,740 | 12,187,420 |
Granted | 820,000 | 6,163,017 | 5,414,300 |
Forfeited | (1,973,636) | (683,280) | (205,980) |
Exercised | (1,919,760) | (576,720) | |
Outstanding, Ending Balance | 19,225,361 | 22,298,757 | 17,395,740 |
Exercisable | 13,478,069 | ||
Weighted average exercise price | |||
Outstanding, Beginning balance | $ 0.54 | $ 0.52 | $ 0.51 |
Granted | 0.68 | 0.55 | 0.54 |
Forfeited | 0.56 | 0.67 | 0.50 |
Option exercise price | 0.52 | 0.50 | |
Outstanding, Ending balance | 0.54 | $ 0.54 | $ 0.52 |
Exercisable | $ 0.55 | ||
Aggregate intrinsic value | |||
Outstanding, Beginning balance | $ 57,082,970 | $ 52,951,848 | $ 37,604,315 |
Granted | 171,820 | 7,668,544 | 15,919,687 |
Forfeited | (3,388,792) | (1,733,224) | (572,154) |
Exercised | (5,939,067) | (1,804,198) | |
Outstanding, Ending balance | 47,926,931 | $ 57,082,970 | $ 52,951,848 |
Exercisable | $ 38,703,590 |
Share-based Awards - Assumption
Share-based Awards - Assumptions used to Determine Fair Value of Share Options Granted (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Risk-free interest rate | 1.53% | ||
Risk-free interest rate, minimum | 1.22% | 0.33% | |
Risk-free interest rate, maximum | 1.52% | 0.88% | |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility | 36.88% | ||
Expected volatility, minimum | 35.01% | 37.94% | |
Expected volatility, maximum | 36.00% | 40.07% | |
Grant date fair value | $ 3.48 | ||
Grant date fair value, minimum | $ 0.06 | $ 0.98 | |
Grant date fair value, maximum | $ 0.65 | $ 1.93 |
Income_(Loss) Per Share - Sched
Income/(Loss) Per Share - Schedule of Basic and Diluted Net Income/(Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator: | |||
Net income (loss) for the year | $ (46,041) | $ (63,415) | $ 5,207 |
Add: Accretion of Series A Preferred Shares | (1,293) | (2,540) | |
Income allocation to participating preferred shareholders | (296) | ||
Net income/(loss) attributable to ordinary shareholders of the Company | $ (46,041) | $ (64,708) | $ 2,371 |
Denominator: | |||
Weighted average number of ordinary shares outstanding used in calculating basic and diluted net income/(loss) per share | 285,979,036 | 259,852,204 | 232,178,037 |
Basic and diluted net income/(loss) per ordinary share | $ (0.16) | $ (0.25) | $ 0.01 |
Income_(Loss) Per Share - Sch_2
Income/(Loss) Per Share - Schedule of Antidilutive Securities Excluded from Inclusion in Calculation of Diluted Earnings Per Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from inclusion in calculation of diluted earnings per share | 22,141,461 | 22,298,757 | 46,395,740 |
Convertible Redeemable Preferred Shares | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from inclusion in calculation of diluted earnings per share | 29,000,000 | ||
Restricted Shares | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from inclusion in calculation of diluted earnings per share | 2,916,100 | ||
Share Options Awards | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from inclusion in calculation of diluted earnings per share | 19,225,361 | 22,298,757 | 17,395,740 |
Cash and Cash Equivalents and_3
Cash and Cash Equivalents and Short-term Deposit - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Investments Debt And Equity Securities [Abstract] | ||
Short-term deposit | $ 196 | $ 196 |
Cash and Cash Equivalents and_4
Cash and Cash Equivalents and Short-term Deposit - Schedule of Cash on Hand and Cash Held at Bank Balance and Short-term Deposit (Details) ¥ in Thousands, $ in Thousands, $ in Thousands | Dec. 31, 2021USD ($) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021HKD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020HKD ($) |
US$ equivalent | ||||||
Schedule Of Investment Income Reported Amounts By Category [Line Items] | ||||||
Cash on hand and cash held at bank balance and short-term deposit | $ 8,064 | $ 22,185 | ||||
US$ | Original currency | ||||||
Schedule Of Investment Income Reported Amounts By Category [Line Items] | ||||||
Cash on hand and cash held at bank balance and short-term deposit | 3,195 | 4,259 | ||||
US$ | US$ equivalent | ||||||
Schedule Of Investment Income Reported Amounts By Category [Line Items] | ||||||
Cash on hand and cash held at bank balance and short-term deposit | 3,195 | 4,259 | ||||
RMB | Original currency | ||||||
Schedule Of Investment Income Reported Amounts By Category [Line Items] | ||||||
Cash on hand and cash held at bank balance and short-term deposit | ¥ | ¥ 13,433 | ¥ 59,912 | ||||
RMB | US$ equivalent | ||||||
Schedule Of Investment Income Reported Amounts By Category [Line Items] | ||||||
Cash on hand and cash held at bank balance and short-term deposit | 2,107 | 9,182 | ||||
HKD | Original currency | ||||||
Schedule Of Investment Income Reported Amounts By Category [Line Items] | ||||||
Cash on hand and cash held at bank balance and short-term deposit | $ 5,791 | $ 8,236 | ||||
HKD | US$ equivalent | ||||||
Schedule Of Investment Income Reported Amounts By Category [Line Items] | ||||||
Cash on hand and cash held at bank balance and short-term deposit | 743 | 1,062 | ||||
Others | US$ equivalent | ||||||
Schedule Of Investment Income Reported Amounts By Category [Line Items] | ||||||
Cash on hand and cash held at bank balance and short-term deposit | $ 2,019 | $ 7,682 |
Accounts Receivable, Net - Sche
Accounts Receivable, Net - Schedule of Accounts receivable, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts Receivable Net Current [Abstract] | ||||
Accounts receivable | $ 18,273 | $ 10,034 | ||
Less: Allowance for doubtful accounts | (3,350) | (3,289) | $ (495) | $ (473) |
Accounts receivable, net | $ 14,923 | $ 6,745 |
Accounts Receivable, Net - Sc_2
Accounts Receivable, Net - Schedule of Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts Receivable Net Current [Abstract] | |||
Balance at beginning of the year | $ 3,289 | $ 495 | $ 473 |
Additions | 67 | 2,785 | 74 |
Reversal | (22) | (30) | |
Write-off | (20) | ||
Exchange difference | 16 | 9 | (2) |
Balance at end of the year | $ 3,350 | $ 3,289 | $ 495 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 4,395 | $ 4,342 |
Finished goods | 2,390 | 2,141 |
Less: write-down of obsolete inventories | (652) | (636) |
Total inventories | $ 6,133 | $ 5,847 |
Prepayments and Other Assets -
Prepayments and Other Assets - Schedule of Prepayments and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Prepaid Expense And Other Assets Current [Abstract] | ||
Prepayments | $ 3,859 | $ 5,119 |
Deposits | 1,389 | 2,344 |
Export tax receivable | 744 | 507 |
VAT recoverable | 729 | 118 |
Others | 814 | 1,505 |
Total of prepayments and other assets | $ 7,535 | $ 9,593 |
Prepayments and Other Assets _2
Prepayments and Other Assets - Schedule of Prepayments and Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Prepaid Expense And Other Assets [Abstract] | ||
Current | $ 6,225 | $ 7,477 |
Non-current | 1,310 | 2,116 |
Total of prepayments and other assets | $ 7,535 | $ 9,593 |
Long-term Investments - Additio
Long-term Investments - Additional Information (Details) € in Thousands, ¥ in Thousands, ¥ in Thousands | 1 Months Ended | 12 Months Ended | 18 Months Ended | ||
Jan. 31, 2021EUR (€) | Oct. 31, 2018JPY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020CNY (¥) | |
Schedule Of Equity Method Investments [Line Items] | |||||
Share of profit in equity method investments, net of tax | $ 287,000 | ||||
Maya System, Inc. | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Equity method investment, ownership percentage | 49.00% | ||||
Consideration to acquire equity interest | ¥ | ¥ 49,000 | ||||
Equity method investment written down value | 0 | $ 0 | |||
Beijing Huaxianglianxin Technology Company | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Equity method investment, ownership percentage | 10.00% | ||||
Consideration to acquire equity interest | ¥ | ¥ 8,521 | ||||
Share of profit in equity method investments, net of tax | 287,000 | $ 0 | |||
iQsim S.A. | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Equity method investment, ownership percentage | 31.25% | ||||
Consideration to acquire equity interest | € | € 200 | ||||
Share of profit in equity method investments, net of tax | $ 200 |
Property and Equipment, Net - S
Property and Equipment, Net - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property Plant And Equipment [Line Items] | ||
Total original costs | $ 13,960 | $ 15,986 |
Less: accumulated depreciation | (12,164) | (12,957) |
Net book value | 1,796 | 3,029 |
Computers | ||
Property Plant And Equipment [Line Items] | ||
Total original costs | 672 | 850 |
Server & Switch | ||
Property Plant And Equipment [Line Items] | ||
Total original costs | 1,382 | 1,276 |
Office Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total original costs | 1,685 | 1,442 |
Wi-Fi Terminals for Data Connectivity Services | ||
Property Plant And Equipment [Line Items] | ||
Total original costs | 9,632 | 11,863 |
Leasehold Improvement | ||
Property Plant And Equipment [Line Items] | ||
Total original costs | $ 589 | $ 555 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |||
Depreciation of property and equipment | $ 2,022 | $ 2,174 | $ 2,954 |
Intangible Assets, Net - Schedu
Intangible Assets, Net - Schedule of Intangible Asset, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Finite Lived Intangible Assets [Line Items] | ||
Carrying amount | $ 1,511 | $ 1,389 |
Accumulated amortization | (502) | (350) |
Net carrying amount | 1,009 | 1,039 |
Purchased Software | ||
Finite Lived Intangible Assets [Line Items] | ||
Carrying amount | 1,206 | 1,089 |
Accumulated amortization | (322) | (203) |
Net carrying amount | 884 | 886 |
Trademark | ||
Finite Lived Intangible Assets [Line Items] | ||
Carrying amount | 124 | 121 |
Accumulated amortization | (76) | (62) |
Net carrying amount | 48 | 59 |
Licensed Copyrights | ||
Finite Lived Intangible Assets [Line Items] | ||
Carrying amount | 181 | 179 |
Accumulated amortization | (104) | (85) |
Net carrying amount | $ 77 | $ 94 |
Intangible Assets, Net - Additi
Intangible Assets, Net - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets | $ 143 | $ 94 | $ 90 |
Intangible Assets, Net - Sche_2
Intangible Assets, Net - Schedule of Estimated Aggregate Amortization Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2022 | $ 151 | |
2023 | 151 | |
2024 | 151 | |
2025 | 151 | |
2026 | 151 | |
Thereafter | 254 | |
Net carrying amount | $ 1,009 | $ 1,039 |
Other Investments - Schedule of
Other Investments - Schedule of Other Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Investments All Other Investments [Abstract] | ||
Current | $ 12,587 | $ 19,185 |
Non-current | 12,058 | 17,824 |
Total | $ 24,645 | $ 37,009 |
Other Investments - Schedule _2
Other Investments - Schedule of Other Investments (Parenthetical) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Equity Method Investments [Line Items] | |||
Investment cash consideration | $ 33,126 | ||
Fair value gain from investment | $ (12,363) | 4,909 | |
Investment Fund One | |||
Schedule Of Equity Method Investments [Line Items] | |||
Investment cash consideration | $ 15,000 | ||
Fair value gain from investment | 6,598 | 4,185 | |
Investment fund redemption notice period | 1 month | ||
Investment Fund Two | |||
Schedule Of Equity Method Investments [Line Items] | |||
Investment cash consideration | $ 17,100 | ||
Fair value gain from investment | $ 5,766 | $ 724 | |
Investment fund redemption period | 3 years |
Accounts Payable, Accrued Exp_3
Accounts Payable, Accrued Expenses and Other Liabilities - Schedule of Accounts Payable, Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Payables And Accruals [Abstract] | ||
Accounts Payable, Current | $ 12,986 | $ 8,701 |
Accrued bonus and staff costs | 20,742 | 18,272 |
Other deposits | 1,793 | 1,788 |
Other taxes payable (note) | 881 | 934 |
Accrued professional fees | 3,007 | 3,169 |
Accrued marketing expenses | 75 | 342 |
Others | 1,082 | 1,237 |
Total | $ 40,566 | $ 34,443 |
Short-term Borrowings - Schedul
Short-term Borrowings - Schedule of Short-term Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Short Term Borrowings [Abstract] | ||
Bank borrowings | $ 3,177 | $ 3,704 |
Short-term Borrowings - Additio
Short-term Borrowings - Additional Information (Details) - Bank Borrowings | Dec. 31, 2021 | Dec. 31, 2020 |
Minimum | ||
Short Term Debt [Line Items] | ||
Short-term borrowings bearing interest rate | 1.60% | 1.90% |
Maximum | ||
Short Term Debt [Line Items] | ||
Short-term borrowings bearing interest rate | 5.22% | 5.22% |
Weighted Average | ||
Short Term Debt [Line Items] | ||
Short-term borrowings bearing interest rate | 3.67% | 4.58% |
Related Party Transactions - Su
Related Party Transactions - Summary of Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||
Total Revenue | $ 73,824 | $ 89,569 | $ 158,381 |
Purchase of data connectivity service | 51,990 | 61,264 | 93,463 |
Maya | |||
Related Party Transaction [Line Items] | |||
Total Revenue | 9,370 | 8,010 | $ 4,419 |
Purchase of data connectivity service | 26 | $ 47 | |
Beijing Huaxianglianxin Technology Company | |||
Related Party Transaction [Line Items] | |||
Total Revenue | 984 | ||
Purchase of data connectivity service | $ 87 |
Related Party Transactions - _2
Related Party Transactions - Summary of Related Parties Balances (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | ||
Contract liabilities (including US$215 thousands and US$89 thousands from the consolidated VIEs, without recourse to the Company as of December 31, 2020 and 2021, respectively) | $ 1,575 | $ 889 |
Amounts payable to related party | 1,453 | 1,503 |
Amounts receivable from related party | 1,153 | 2,264 |
Maya | ||
Related Party Transaction [Line Items] | ||
Deposits received from related party | 1,417 | 1,498 |
Contract liabilities (including US$215 thousands and US$89 thousands from the consolidated VIEs, without recourse to the Company as of December 31, 2020 and 2021, respectively) | 18 | |
Amounts payable to related party | 5 | |
Amounts receivable from related party | 1,108 | $ 2,264 |
Beijing Huaxianglianxin Technology Company | ||
Related Party Transaction [Line Items] | ||
Amounts payable to related party | 18 | |
Amounts receivable from related party | $ 45 |
Commitments and contingencies -
Commitments and contingencies - Summary of Non Cancellable Operating Lease Agreements (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2022 | $ 1,080 |
2023 | 243 |
2024 | 21 |
Total | $ 1,344 |
Commitments and contingencies_2
Commitments and contingencies - Additional Information (Details) | Jul. 02, 2019USD ($) | Oct. 31, 2019USD ($) | Jul. 31, 2019USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2021CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Mar. 29, 2021USD ($) |
Loss Contingencies [Line Items] | |||||||||
Operating leases rental expense | $ 1,539,000 | $ 1,687,000 | $ 3,276,000 | ||||||
Future minimum purchase commitment ,2022 | 1,456,000 | ||||||||
Future minimum purchase commitment ,2023 | 118,000 | ||||||||
Total compensatory and enhanced damages | $ 8,200,000 | $ 2,800,000 | |||||||
Increase in claimed damage by plaintiff | $ 8,500,000 | ||||||||
Escrowed funds released and refunded | $ 8,200,000 | ||||||||
Claimed damage | $ 21,000 | $ 21,000 | |||||||
Group's Employees [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Claimed damage | $ 14,000,000 | ||||||||
Maximum | |||||||||
Loss Contingencies [Line Items] | |||||||||
Claimed damage | $ 1,600,000 | ¥ 10,500,000 |
Restricted Net Assets - Additio
Restricted Net Assets - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restricted Net Assets [Line Items] | |||
Percentage of general reserve fund of registered capital | 50.00% | ||
After tax profit | $ (46,041,000) | $ (63,415,000) | $ 5,207,000 |
Restricted net assets | $ 49,219,000 | ||
Restricted net assets exceeded percentage | 25.00% | ||
WFOE | |||
Restricted Net Assets [Line Items] | |||
After tax profit | $ 0 | 0 | 0 |
Statutory reserves | $ 0 | $ 0 | $ 0 |
Minimum | |||
Restricted Net Assets [Line Items] | |||
Percentage of income after tax to reserve | 10.00% |
Impact of COVID-19 - Additional
Impact of COVID-19 - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Extraordinary And Unusual Items [Abstract] | |||
Net cash used in operating activities | $ 21,738 | $ 2,038 | $ (5,761) |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||||
Jan. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 10, 2020 | Jun. 09, 2020 | May 18, 2020 | May 19, 2019 | |
Subsequent Event [Line Items] | |||||||
Common stock, par value per share | $ 0.00005 | $ 0.00005 | $ 0.001 | $ 0.00005 | |||
Contractual arrangements with VIEs, termination period | Mar. 17, 2022 | ||||||
Class A Ordinary Shares | |||||||
Subsequent Event [Line Items] | |||||||
Common stock, par value per share | $ 0.00005 | $ 0.00005 | |||||
Subsequent Event | Purchaser | |||||||
Subsequent Event [Line Items] | |||||||
Proceeds from issuance of convertible debentures | $ 5 | ||||||
Percentage of principal amount paid through private placement | 95.00% | ||||||
Convertible debentures interest rate | 5.00% | ||||||
Issuance of ordinary shares as commitment fee | 1,000,000 | ||||||
Subsequent Event | Purchaser | Class A Ordinary Shares | |||||||
Subsequent Event [Line Items] | |||||||
Common stock, par value per share | $ 0.00005 | ||||||
Subsequent Event | Purchaser | ADS | |||||||
Subsequent Event [Line Items] | |||||||
Percentage of reference price benchmarked against trading price | 85.00% | ||||||
Subsequent Event | Purchaser | Maximum | ADS | |||||||
Subsequent Event [Line Items] | |||||||
Sale of stock, price per share | $ 3.50 |
Additional Information_ Conde_3
Additional Information: Condensed Financial Statements of the Company - Condensed Statements of Comprehensive Income/(Loss) of the Parent Company (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Statement Of Income Captions [Line Items] | |||
Net income/(loss) | $ (46,041) | $ (63,415) | $ 5,207 |
Parent | |||
Condensed Statement Of Income Captions [Line Items] | |||
Operating expenses | (10,399) | (50,638) | (1,299) |
Loss before income tax | (10,266) | (50,925) | (1,495) |
Income/(loss) from subsidiaries and former VIEs | 35,775 | 12,490 | (6,702) |
Net income/(loss) | $ (46,041) | $ (63,415) | $ 5,207 |
Additional Information_ Conde_4
Additional Information: Condensed Financial Statements of the Company - Condensed Balance Sheets of the Parent Company (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Condensed Balance Sheet Statements Captions [Line Items] | ||||
Cash and cash equivalents | $ 7,868 | $ 21,989 | ||
Total assets | 67,125 | 97,254 | ||
Other non-current liabilities | 262 | 321 | ||
Total liabilities | 47,033 | 40,860 | ||
Total shareholders’ deficit | 20,092 | 56,394 | $ 19,467 | $ 16,599 |
Parent | ||||
Condensed Balance Sheet Statements Captions [Line Items] | ||||
Cash and cash equivalents | 133 | 3,332 | ||
Amounts due from subsidiaries and former VIEs (note a) | 126,536 | 123,337 | ||
Others | 8 | 358 | ||
Total assets | 126,677 | 127,027 | ||
Accounts payable, accrued expenses and other liabilities | 1,188 | 1,078 | ||
Deficit in subsidiaries and former VIEs | 101,138 | 65,346 | ||
Other non-current liabilities | 262 | 321 | ||
Amounts due to subsidiaries and former VIEs (note a) | 3,997 | 3,888 | ||
Total liabilities | 106,585 | 70,633 | ||
Total shareholders’ deficit | $ 20,092 | $ 56,394 |
Additional Information_ Conde_5
Additional Information: Condensed Financial Statements of the Company - Condensed Statement of Cash Flows of the Parent Company (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | |||
Net cash used in operating activities (note a) | $ (21,738) | $ (2,038) | $ 5,761 |
Cash flows from investing activities | |||
Net cash used in investing activities | (935) | (35,444) | (3,267) |
Cash flows from financing activities | |||
Net cash generated from financing activities | 735 | 26,685 | 1,528 |
Proceeds from initial public offering, net of issuance costs | 29,904 | ||
Proceeds from exercise of share options | 1,284 | ||
Increase/(decrease) in cash, cash equivalents and restricted cash | (21,938) | (10,797) | 4,022 |
Cash, cash equivalents and restricted cash at beginning of year | 30,226 | 40,274 | 36,627 |
Cash, cash equivalents and restricted cash at end of year | 7,868 | 30,226 | 40,274 |
Parent | |||
Cash flows from operating activities | |||
Net cash used in operating activities (note a) | (1,483) | (1,514) | (572) |
Cash flows from investing activities | |||
Intercompany fund transfers | (3,000) | (38,598) | (4,712) |
Net cash used in investing activities | (3,000) | (38,598) | (4,712) |
Cash flows from financing activities | |||
Net cash generated from financing activities | 1,284 | 29,904 | |
Proceeds from initial public offering, net of issuance costs | 29,904 | ||
Proceeds from exercise of share options | 1,284 | ||
Increase/(decrease) in cash, cash equivalents and restricted cash | (3,199) | (10,208) | (5,284) |
Cash, cash equivalents and restricted cash at beginning of year | 3,332 | 13,540 | 18,824 |
Cash, cash equivalents and restricted cash at end of year | $ 133 | $ 3,332 | $ 13,540 |
Additional Information_ Conde_6
Additional Information: Condensed Financial Statements of the Company - Condensed Statement of Cash Flows of the Parent Company (Parenthetical) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Cash Flow Statements Captions [Line Items] | |||
Cash flows from investing activities | $ (935) | $ (35,444) | $ (3,267) |
Amount due from entities within the Group, current | 1,153 | 2,264 | |
Amount due to entities within the Group, current | 1,453 | 1,503 | |
Parent | |||
Condensed Cash Flow Statements Captions [Line Items] | |||
Cash flows from investing activities | (3,000) | (38,598) | (4,712) |
Amount due from entities within the Group, non-current | 126,536 | 123,337 | |
Amount due to entities within the Group, non-current | $ 3,997 | 3,888 | |
Reclassification Adjustment | |||
Condensed Cash Flow Statements Captions [Line Items] | |||
Cash flows from investing activities | (38,600) | (4,700) | |
Reclassification Adjustment | Subsidiaries | |||
Condensed Cash Flow Statements Captions [Line Items] | |||
Cash flows from investing activities | 38,600 | $ 4,700 | |
Reclassification Adjustment | Parent | |||
Condensed Cash Flow Statements Captions [Line Items] | |||
Amount due from entities within the Group, current | 123,300 | ||
Amount due from entities within the Group, non-current | 123,300 | ||
Amount due to entities within the Group, current | 3,900 | ||
Amount due to entities within the Group, non-current | $ 3,900 |