Share-based Compensation (Tables)
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12 Months Ended |
Dec. 31, 2020 |
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| Share-based Payment Arrangement [Abstract] |
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| Schedule of Compensation Expense |
Compensation expenses recognized for share-based awards of the Company were as follows: | | | | | | | | | | | | | | | | | | | Year Ended December 31, | | 2018 | | 2019 | | 2020 | | (US$) | | Cost of revenues | $ | 49,893 | | | $ | 79,552 | | | $ | 357,053 | | | Research and development expenses | 919,773 | | | 1,472,528 | | | 5,312,704 | | | Sales and marketing expenses | 975,297 | | | 1,653,717 | | | 2,060,523 | | | General and administrative expenses | 905,389 | | | 1,046,372 | | | 4,244,879 | | | $ | 2,850,352 | | | $ | 4,252,169 | | | $ | 11,975,159 | |
Compensation expenses recognized for different awards were summarized as below: | | | | | | | | | | | | | | | | | | | Year Ended December 31, | | 2018 | | 2019 | | 2020 | | (US$) | | Equity award – share options | $ | 1,250,676 | | | $ | 2,177,975 | | | $ | 7,193,332 | | Equity award – restricted shares(1)(2) | 1,002,674 | | | 980,911 | | | 1,192,946 | | | Equity award – restricted share units | — | | | — | | | 136,175 | | | Liability award – share options | 428,855 | | | 960,177 | | | — | | | Liability award – restricted shares | 168,147 | | | 133,106 | | | — | | | Liability award – Venture Partners Plan | — | | | — | | | 3,452,706 | | | $ | 2,850,352 | | | $ | 4,252,169 | | | $ | 11,975,159 | |
(1)Including restricted shares granted by the Founder for equity classified award of US$843,139, US$790,643 and US$851,665 for the years ended December 31, 2018, 2019 and 2020, respectively. (2)Including restricted shares granted to employees as part of post-combination compensation of nil, nil, and US$264,406 for the years ended December 31, 2018, 2019 and 2020, respectively.
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| Schedule of Share Options Activity |
The following table summarizes activities of the Company’s share options activity for the years ended December 31, 2018, 2019 and 2020: Equity Classified Share Options | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Number
of Options | | Weighted Average Exercise Price | | Weighted Average Remaining Contractual Life | | Aggregate Intrinsic Value | | Weighted Average Grant Date Fair Value | | | | (US$) | | In Years | | (US$) | | (US$) | | Outstanding at January 1, 2018 | 20,412,350 | | $ | 0.10 | | | 7.84 | | $ | 5,087,933 | | | $ | 0.12 | | | Granted | 14,689,473 | | 0.12 | | | | | | | 0.37 | | | Forfeited | (1,440,866) | | 0.10 | | | | | | | | | Outstanding at December 31, 2018 | 33,660,957 | | 0.11 | | | 7.91 | | 19,994,575 | | 0.23 | | | Granted | 5,087,648 | | 0.24 | | | | | | | 0.86 | | | Forfeited | (787,425) | | 0.13 | | | | | | | | | Reclassified from liability award | 50,784 | | 0.10 | | | | | | | | | Outstanding at December 31, 2019 | 38,011,964 | | 0.12 | | | 7.22 | | 51,303,638 | | 0.31 | | | Granted | 9,941,500 | | 0.19 | | | | | | | 3.16 | | | Exercised | (7,632,431) | | | | | | | | | | Forfeited | (706,150) | | 0.16 | | | | | | | | | Outstanding at December 31, 2020 | 39,614,883 | | 0.17 | | | 8.23 | | 466,460,320 | | 1.08 | | | Vested and expected to vest at December 31, 2020 | 34,982,436 | | 0.11 | | | 5.85 | | 339,504,760 | | 1.20 | | | Exercisable at December 31, 2020 | 34,982,436 | | 0.11 | | | 5.85 | | 339,504,760 | | 1.20 | |
Liability Classified Share Options | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Number of Options | | Weighted Average Exercise Price | | Weighted Average Remaining Contractual Life | | Aggregate Intrinsic Value | | Weighted Average Grant Date Fair Value | | | | (US$) | | In Years | | (US$) | | (US$) | | Outstanding at January 1, 2018 | 1,150,784 | | $ | 0.10 | | | 6.97 | | $ | 286,842 | | | $ | 0.07 | | | Granted | — | | — | | — | | — | | — | | Forfeited | — | | — | | — | | — | | — | Outstanding at December 31, 2018 | 1,150,784 | | 0.10 | | | 5.97 | | $ | 689,258 | | | 0.07 | | | Granted | — | | — | | | | | | | | Repurchased | (1,100,000) | | 0.10 | | 5.67 | | 818,845 | | 0.07 | | Forfeited | — | | — | | | | | | | | Vested and expected to vest at Reclassified to equity classified award | (50,784) | | 0.10 | | 6.81 | | 37,804 | | 0.10 | Outstanding at December 31, 2019 and 2020 | — | | — | | | | | | |
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| Schedule of Share Options, Fair Value Assumptions |
The fair value of options granted under the Company’s Plans for the years ended December 31, 2018, 2019 and 2020 used the binomial option pricing model, with the assumptions (or ranges thereof) in the following table: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, | | 2018 | | 2019 | | 2020 | | Exercise price | US$0.10 | - | US$1.00 | | US$0.10 | - | US$0.50 | | US$0.10 | - | US$1.74 | | Fair value of the ordinary shares on the date of option grant | US$0.3493 | - | US$0.6989 | | US$0.6989 | - | US$1.4751 | | US$0.8415 | - | US$8.9816 | Risk-free interest rate(1) | 2.54% | - | 3.18 | % | | 1.80% | - | 2.83% | | 0.28% | - | 1.46% | | Expected term (in years) | 10 | | 10 | | 10 | Expected dividend yield(2) | 0% | | 0% | | 0% | Expected volatility(3) | 49.18% | - | 50.36% | | 47.54% | - | 50.01% | | 42.39% | - | 59.65% | | Expected forfeiture rate (post-vesting) | 3% | | 3% | | 3% |
(1)The risk-free interest rate of periods within the contractual life of the share option is based on the market yield of the U.S. treasury bonds with a maturity life equal to the expected life to expiration. (2)The Company has no history or expectation of paying dividends on its ordinary shares. (3)Expected volatility is estimated based on the average of historical volatilities of the comparable companies in the same industry as at the valuation dates.
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| Schedule of Restricted Share Activity |
Equity Classified Restricted Shares | | | | | | | | | | | | | Numbers of Shares | | Weighted-average Grant Date Fair Value | | | | (US$) | | Outstanding at January 1, 2018 | 16,121,181 | | $ | 0.02 | | | Granted | — | | — | | | Vested | (6,670,833) | | 0.02 | | Outstanding at December 31, 2018 | 9,450,348 | | 0.02 | | Granted | — | | — | | | Reclassified from liability classified restricted shares | 26,042 | | 0.02 | | | Vested | (6,670,833) | | 0.02 | | Outstanding at December 31, 2019 | 2,805,557 | | 0.02 | | Granted(1) | 512,782 | | 10.16 | | | Vested | (2,805,557) | | 0.02 | | Outstanding at December 31, 2020 | 512,782 | | 10.16 | |
(1)During 2020, the Company granted shares to employees that joined the Company following the business combination (Note 3) as well as a related party who was a previous shareholder in Netless (Note 18). Share agreements were signed with the employees contingent on their continuing employment with the Group as well as their ability to meet certain established performance targets. Of the restricted shares to the management employees, 70% of the awards will be released over a period of three years of continuous service, in equal installments starting from the stated vesting commencement date. The remaining 30% portion of the restricted shares are also subject to performance metrics based on an initial target number, and performance is measured over predefined performance periods which is one to three years; depending on the probability of achieving the performance targets, the number of restricted shares could range from 0 to 30% of the target amount.
Liability Classified Restricted Shares | | | | | | | | | | | | | Numbers of Shares | | Weighted-average Grant Date Fair Value | | | | (US$) | | Outstanding at January 1, 2018 | 151,042 | | $ | 0.02 | | | Granted | — | | — | | | Vested | (62,500) | | 0.02 | | Outstanding at December 31, 2018 | 88,542 | | 0.02 | | | Granted | — | | — | | | Vested | (62,500) | | 0.02 | | | Reclassified to equity classified restricted shares | (26,042) | | 0.02 | | Outstanding at December 31, 2019 and 2020 | — | | |
| | | | | | | | | | | | | Numbers of Shares | | Weighted-average Grant Date Fair Value | | | | (US$) | | Outstanding at December 31, 2019 | — | | $ | — | | | Granted | 263,621 | | 10.30 | | Vested | — | | — | | Outstanding at December 31, 2020 | 263,621 | | 10.30 |
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