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Note 20 - Fair Value Measurements

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Fair Value Disclosures [Text Block]

20.

Fair value measurements

Assets and liabilities measured at fair value on a recurring basis as of December 31, 2021 and 2022 are summarized below:

						Fair value measurement
Recurring fair value measurement		Total fair value				Quoted prices in active markets for identical assets (Level 1)				Significant other observable inputs (Level 2)				Significant unobservable inputs (Level 3)
			$				$				$				$

As of December 31, 2021
Assets:
Available-for-sale debt securities
Financial products issued by commercial banks			1,574				-				1,574				-
Trading debt securities
Financial products issued by commercial banks			13,169				-				13,169				-
Forward contract (Note 16)			166				-				-				166
Total assets measured at fair value			14,909				-				14,743				166
As of December 31, 2022
Assets:
Trading debt securities
Financial products issued by commercial banks			2,872				-				2,872				-
Total assets measured at fair value			2,872				-				2,872				-

The fair value of the forward contract is estimated using a formulaic valuation approach which combines the discounted cash flow to first estimate the fair value of the entity’s share price and probability-based valuation approach to estimate the fair value of the forward contract. Significant unobservable inputs include the probability of achieving a contingent target, discount for lack of marketability, volatility and weighted average cost of capital at the end of 2021 and the settlement date.

The following table represents the significant unobservable inputs used to estimate the fair value of the Forward contract at December 31, 2021 and at settlement date June 13, 2022:

		Valuation technique		Unobservable inputs		Range as of
						December 31, 2021		June 13, 2022
Forward contract		Discounted cash flow		Discount for lack of marketability		10%		10%
				Volatility		85%		85%
				Weighted average cost of capital		14.50%		17.10%
		Probability-based valuation approach		Probability of achieving contingent target		90%		100%

The following table presents a reconciliation of the forward contract measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years presented:

		Forward contract
			$

Balance as of December 31, 2019			-
Recognized during the year			(278	)
Gains or losses from changes in fair value			-

Balance as of December 31, 2020 (liability)			(278	)
Gains from changes in fair value			444

Balance as of December 31, 2021 (asset)			166
Gains from changes in fair value			1,071
Settlement during the year			(1,237	)

Balance as of December 31, 2022			-

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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