| FINANCIAL INFORMATION OF PARENT COMPANY |
22. FINANCIAL INFORMATION OF PARENT COMPANY (a)Balance sheet | | | | | | | | | As of December 31, | | | 2021 | | 2022 | Assets | | | | | | | Current assets | | | | | | | Cash and cash equivalents | | $ | 2 | | $ | 2 | Amount due from subsidiaries | | | 27,298 | | | 49,691 | Other current assets | | | 108 | | | 108 | Total current assets | | | 27,408 | | | 49,801 | TOTAL ASSETS | | $ | 27,408 | | $ | 49,801 | | | | | | | | Liabilities | | | | | | | Current liabilities | | | | | | | Accrued expenses and other current liabilities | | $ | 2,909 | | $ | 4,039 | Total liabilities | | | 2,909 | | | 4,039 | | | | | | | | Equity | | | | | | | Ordinary Shares ($0.04 par value; 22,500,000 shares authorized; 4,499,654 and 8,948,505 shares issued as of December 31, 2021 and 2022, respectively; 4,474,836 and 8,923,687 shares outstanding as of December 31, 2021 and 2022, respectively) | | | 181 | | | 359 | Additional paid-in capital | | | 298,685 | | | 332,746 | Treasury stock (24,818 shares as of December 31, 2021 and 2022) | | | (1,148) | | | (1,148) | Accumulated deficits | | | (304,904) | | | (318,239) | Accumulated other comprehensive income | | | 31,685 | | | 32,044 | Total equity | | | 24,499 | | | 45,762 | TOTAL LIABILITIES AND EQUITY | | $ | 27,408 | | $ | 49,801 |
(b)Statements of operations | | | | | | | | | | | | For the years ended December 31, | | | 2020 | | 2021 | | 2022 | Operating expenses | | | | | | | | | | Selling and marketing | | $ | — | | $ | — | | $ | — | General and administrative | | | (250) | | | (566) | | | (1,231) | Total operating expenses | | | (250) | | | (566) | | | (1,231) | Other (loss) income, net | | | (32) | | | (11) | | | 41 | Investment income (loss) in subsidiaries | | | 7,809 | | | (16,758) | | | (12,145) | Net income (loss) attributable to holders of ordinary shares | | $ | 7,527 | | $ | (17,335) | | $ | (13,335) |
22. FINANCIAL INFORMATION OF PARENT COMPANY- continued (c)Statements of comprehensive income (loss) | | | | | | | | | | | | For the years ended December 31, | | | 2020 | | 2021 | | 2022 | Net income (loss) | | $ | 7,527 | | $ | (17,335) | | $ | (13,335) | Other comprehensive loss, net of tax: | | | | | | | | | | Change in cumulative foreign currency translation adjustment | | | (384) | | | 377 | | | 359 | Comprehensive income (loss) attributable to Parent Company | | $ | 7,143 | | $ | (16,958) | | $ | (12,976) |
(d)Statements of changes in equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Accumulated | | Accumulated | | | | | | Ordinary shares | | Additional | | | | | deficits) | | other | | | | | | | | | | | paid-in | | Treasury | | retained | | comprehensive | | Total | | | Shares | | Amount | | capital | | stock | | earnings | | Income | | equity | Balance as of December 31, 2020 | | 3,738,527 | | | 152 | | | 288,879 | | | (2,351) | | | (286,365) | | | 31,308 | | | 31,623 | Ordinary shares issued for share based compensation | | 25,989 | | | 1 | | | — | | | 1,203 | | | (1,204) | | | — | | | — | Share issued | | 710,320 | | | 28 | | | 8,922 | | | — | | | — | | | — | | | 8,950 | Share-based compensation | | — | | | — | | | 186 | | | — | | | — | | | — | | | 186 | Capital contribution from non-controlling | | — | | | — | | | 698 | | | — | | | — | | | — | | | 698 | Foreign currency translation adjustment | | — | | | — | | | — | | | — | | | — | | | 377 | | | 377 | Net income | | — | | | — | | | — | | | — | | | (17,335) | | | — | | | (17,335) | Balance as of December 31, 2021 | | 4,474,836 | | | 181 | | | 298,685 | | | (1,148) | | | (304,904) | | | 31,685 | | | 24,499 | Shares issued for purchase of equipment | | 4,448,851 | | | 178 | | | 34,001 | | | — | | | — | | | — | | | 34,179 | Share-based compensation | | — | | | — | | | 60 | | | — | | | — | | | — | | | 60 | Foreign currency translation adjustment | | — | | | — | | | — | | | — | | | — | | | 359 | | | 359 | Net loss | | — | | | — | | | — | | | — | | | (13,335) | | | | | | (13,335) | Balance as of December 31, 2022 | | 8,923,687 | | | 359 | | | 332,746 | | | (1,148) | | | (318,239) | | | 32,044 | | | 45,762 |
(e)Statements of cash flow | | | | | | | | | | | | For the years ended December 31, | | | 2020 | | 2021 | | 2022 | CASH FLOWS FROM OPERATING ACTIVITIES | | | | | | | | | | Net income (loss) | | $ | 7,527 | | $ | (17,335) | | $ | (13,335) | Investment income (loss) in subsidiaries | | | (7,809) | | | 16,758 | | | 12,145 | Share-based compensation | | | 186 | | | 186 | | | 60 | | | | | | | | | | | CHANGES IN WORKING CAPITAL ACCOUNTS | | | | | | | | | | Accrued expenses and other current liabilities | | | 96 | | | 391 | | | 1,130 | Net cash used in operating activities | | | — | | | — | | | — | | | | | | | | | | | CASH FLOWS FROM INVESTMENT ACTIVITIES | | | — | | | — | | | — | | | | | | | | | | | CASH FLOWS FROM FINANCING ACTIVITIES | | | — | | | — | | | — | | | | | | | | | | | Net decrease in cash, cash equivalents and restricted cash | | | — | | | — | | | — | Cash, cash equivalents and restricted cash, at beginning of year | | | 2 | | | 2 | | | 2 | Cash, cash equivalents and restricted cash, at end of year | | $ | 2 | | $ | 2 | | $ | 2 | | | | | | | | | | | SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES: | | | | | | | | | | Share issuance for purchase of property and equipment | | $ | 2,531 | | $ | 8,950 | | $ | 34,179 |
22. FINANCIAL INFORMATION OF PARENT COMPANY- continued (f)Notes 1. BASIS FOR PREPARATION The condensed financial information of the parent company, AirNet Technology Inc., only has been prepared using the same accounting policies as set out in the Group’s consolidated financial statements except that the parent company uses the equity method to account for its investment in its subsidiaries. 2. INVESTMENTS IN SUBSIDIARIES AND VARIABLE INTEREST ENTITIES The Company, its subsidiaries, its VIEs and VIEs’ subsidiaries are included in the consolidated financial statements where the inter-company balances and transactions are eliminated upon consolidation. For the purpose of the Company’s stand-alone financial statements, its investments in subsidiaries, VIEs and VIEs’ subsidiaries are reported using the equity method of accounting. The Company’s share of income and losses from its subsidiaries, VIEs and VIEs’ subsidiaries is reported as earnings from subsidiaries, VIEs and VIEs’ subsidiaries in the accompanying condensed financial information of parent company. 3. INCOME TAXES The Company is a tax exempted company incorporated in the Cayman Islands.
|