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Warrants
 12 Months Ended
Dec. 31, 2023
Warrants [Abstract]  
Warrants
13.Warrants

 

On April 28, 2016, LLIT signed a Share Purchase Agreement (“SPA”) with Hangzhou Lianluo. In this SPA, Hangzhou Lianluo was entitled with 125,000 warrants to acquire from the Company 125,000 common shares at a purchase price of $17.60 per share. The warrants are exercisable at any time. The Company recognized the warrants as a derivative liability because warrants can be settled in cash. Warrants are remeasured at fair value with changes in fair value recorded in earnings in each reporting period.

 

There was a total of 125,000 warrants issued and outstanding as of December 31, 2023.

 

The fair value of the outstanding warrants was calculated using the Black-Scholes model with the following assumptions:

 

   As of December 31,
2023		   As of December 31,
2022		 
Market price per share (USD/share)  $1.26   $1.31 
Exercise price (USD/share)   17.60    17.60 
Risk free rate   4.16%   4.18%
Dividend yield   0%   0%
Expected term/Contractual life (years)   2.32    3.32 
Expected volatility   105.55%   96.90%

 

The following is a reconciliation of the beginning and ending balances of warrants liability measured at fair value on a recurring basis using Level 3 inputs (in thousands):

 

Beginning balance, January 1, 2022  $1,091 
Fair value change of the issued warrants included in earnings   (1,063)
Ending balance, December 31, 2022  $28 

 

Beginning balance, January 1, 2023  $28 
Fair value change of the issued warrants included in earnings   (11)
Ending balance, December 31, 2023  $17