| CONDENSED FINANCIAL INFORMATION OF REGISTRANT |
22. CONDENSED FINANCIAL INFORMATION OF REGISTRANT a) Condensed Balance Sheets (In thousands) | | | | | | | | | December 31, 2025 | | December 31, 2024 | ASSETS | | | | | | | Current assets: | | | | | | | Cash and cash equivalents | | $ | 1,482 | | $ | 9,162 | Investment in equity securities, at fair value | | | — | | | 2,623 | Accounts receivable, net | | | 2,844 | | | 15,234 | Inventories | | | — | | | 5,231 | Prepaid expenses and other | | | 446 | | | 1,065 | Total current assets | | | 4,772 | | | 33,315 | | | | | | | | Intercompany receivables | | | 779 | | | 779 | Property, plant and equipment, net | | | 12 | | | 16 | Long-term investments | | | 1,716 | | | 1,716 | Investment in subsidiaries | | | — | | | 635 | Total assets | | $ | 7,279 | | $ | 36,461 | | | | | | | | LIABILITIES AND SHAREHOLDERS’ (DEFICIT) EQUITY | | | | | | | Current liabilities: | | | | | | | Accounts payable | | $ | 1,065 | | $ | 2,650 | Accrued and other current liabilities | | | 8,326 | | | 4,183 | Convertible notes due to a related party | | | 4,243 | | | — | Intercompany payables | | | 4,615 | | | 15,956 | Total current liabilities | | | 18,249 | | | 22,789 | | | | | | | | Other liabilities | | | 11,821 | | | 11,821 | Provision of excess loss in subsidiaries | | | 14,491 | | | — | Total liabilities | | | 44,561 | | | 34,610 | | | | | | | | Shareholders’ (deficit) equity: | | | | | | | Ordinary shares | | | 2 | | | 2 | Additional paid-in capital | | | 722,238 | | | 713,302 | Treasury shares | | | (9,604) | | | (9,604) | Accumulated other comprehensive loss | | | (1,785) | | | (1,774) | Accumulated deficit | | | (748,133) | | | (700,075) | Total shareholders’ (deficit) equity | | | (37,282) | | | 1,851 | Total liabilities and shareholders' (deficit) equity | | $ | 7,279 | | $ | 36,461 |
b) Condensed Statements of Operations and Comprehensive Loss (In thousands) | | | | | | | | | | | | Years ended December 31, | | | 2025 | | 2024 | | 2023 | Revenues | | | 18,718 | | | 28,537 | | | 33,879 | | | | | | | | | | | Costs of revenues | | | (8,734) | | | (17,391) | | | (13,827) | | | | | | | | | | | Gross Profit | | | 9,984 | | | 11,146 | | | 20,052 | | | | | | | | | | | Operating expenses: | | | | | | | | | | Intercompany expenses | | | (13,454) | | | (27,837) | | | (4,869) | Other operating expenses | | | (24,153) | | | (18,413) | | | (17,328) | Total operating expenses | | | (37,607) | | | (46,250) | | | (22,197) | | | | | | | | | | | Loss from operations | | | (27,623) | | | (35,104) | | | (2,145) | | | | | | | | | | | Non-operating income (expense): | | | | | | | | | | Share of loss of subsidiaries | | | (20,364) | | | (6,487) | | | (23,801) | Other non-operating income (expenses) | | | (71) | | | 2,333 | | | 2,289 | Loss before income tax expense | | | (48,058) | | | (39,258) | | | (23,657) | Income tax expense | | | — | | | — | | | — | Net loss | | | (48,058) | | | (39,258) | | | (23,657) |
c) Condensed Statements of Cash Flows (In thousands) | | | | | | | | | | | Years Ended December 31, | | | 2025 | | 2024 | | 2023 | CASH FLOWS FROM OPERATING ACTIVITIES | | | | | | | | | Net cash provided by (used in) operating activities | $ | (20,537) | | $ | (23,437) | | $ | 5,574 | | | | | | | | | | CASH FLOWS FROM INVESTING ACTIVITIES | | | | | | | | | Proceeds from sales of equity securities | | 2,604 | | | 467 | | | — | Proceeds from sale of intangible assets | | — | | | 500 | | | — | Proceeds from extinguishment of investment in a convertible loan | | — | | | — | | | 1,000 | Purchases of property, plant and equipment | | — | | | — | | | (13) | Purchases of intangible asset | | — | | | — | | | (2,000) | Investment in subsidiaries | | — | | | — | | | (1,000) | Net cash provided by (used in) investing activities | | 2,604 | | | 967 | | | (2,013) | | | | | | | | | | CASH FLOWS FROM FINANCING ACTIVITIES | | | | | | | | | Repurchase of ordinary share | | — | | | — | | | (278) | Payment of share issuance costs | | (681) | | | (960) | | | — | Proceeds from issuance of convertible notes | | 5,000 | | | — | | | — | Proceeds from issuance of ordinary shares | | 5,878 | | | 15,000 | | | — | Proceeds from exercise of share options | | 56 | | | 2,112 | | | 109 | Net cash provided by (used in) provided by financing activities | | 10,253 | | | 16,152 | | | (169) | | | | | | | | | | Net increase (decrease) in cash and cash equivalents | | (7,680) | | | (6,318) | | | 3,392 | Cash and cash equivalents at beginning of year | | 9,162 | | | 15,480 | | | 12,088 | Cash and cash equivalents at end of year | $ | 1,482 | | $ | 9,162 | | $ | 15,480 |
Note: For the presentation of the condensed financial information, the Company records its investment in subsidiaries under the equity method of accounting as prescribed in ASC 323, “Investments-Equity Method and Joint Ventures”. Such investments are presented on the condensed balance sheets as “Investment in subsidiaries” and the subsidiaries loss as “Share of loss of subsidiaries” on the condensed statements of operations and comprehensive loss. The condensed financial information should be read in conjunction with the Company’s consolidated financial statements. As of December 31, 2025 and 2024, there were no material contingencies, significant provisions of long-term obligations, mandatory dividend or redemption requirements of redeemable shares or guarantees of the Company, except for those, which have been separately disclosed in the consolidated financial statements.
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