Revenue Performance - Total revenues decreased to US$7.65 million for the three months ended March 31, 2022, down from US$8.40 million for the same period last year, primarily due to a decline in Internet advertising revenues [146]. - Revenues from Internet advertising and related services decreased to US$1.06 million and US$6.59 million, respectively, compared to US$1.40 million and US$6.87 million for the same period in 2021, attributed to regional COVID-19 outbreaks affecting SMEs [147]. - For the three months ended March 31, 2022, total revenues were approximately US$7.65 million, a decrease from US$8.40 million for the same period in 2021 [156]. Cost and Profitability - Cost of revenues decreased to US$7.52 million for the three months ended March 31, 2022, from US$9.11 million for the same period in 2021, reflecting a decrease in costs associated with search engine marketing services [150]. - Gross profit for the three months ended March 31, 2022, was US$134,000, compared to a gross loss of US$717,000 for the same period in 2021 [143]. - The gross margin rate for Internet advertising and related services was 8% for the three months ended March 31, 2022, compared to 9% for the same period in 2021 [151]. - The gross margin rate for the distribution of search engine marketing services improved to 1% for the three months ended March 31, 2022, from -9% in the same period last year [152]. - Gross profit for the three months ended March 31, 2022, was approximately US$0.13 million, compared to a gross loss of approximately US$0.72 million for the same period in 2021, resulting in an overall gross margin improvement to 2% from -9% [154]. Operating Expenses - Operating expenses increased to US$1.69 million for the three months ended March 31, 2022, from US$1.10 million in the same period last year, driven by higher general and administrative expenses [143]. - Total operating expenses increased to approximately US$1.69 million for the three months ended March 31, 2022, from US$1.10 million for the same period in 2021, representing 22.0% of total revenues [156]. Net Income and Loss - Net loss attributable to ZW Data Action Technologies Inc. was US$717,000 for the three months ended March 31, 2022, compared to a net income of US$685,000 for the same period in 2021 [143]. - The company incurred a loss from operations of approximately US$1.55 million for the three months ended March 31, 2022, compared to a loss of US$1.82 million for the same period in 2021 [157]. - The net loss attributable to ZW Data Action Technologies Inc. was approximately US$0.72 million for the three months ended March 31, 2022, compared to a net income of approximately US$0.69 million for the same period in 2021 [165]. Cash Flow and Investments - Net cash used in operating activities was approximately US$0.89 million for the three months ended March 31, 2022, a significant improvement from US$3.71 million for the same period in 2021 [170]. - Net cash used in investing activities resulted in an outflow of approximately US$1.46 million for the three months ended March 31, 2022, compared to US$1.87 million for the same period in 2021 [175]. - The company had cash and cash equivalents of approximately US$4.82 million as of March 31, 2022 [166]. - The company acquired a 9.09% equity interest in Shenzhen Global Best Products for RMB5.0 million (approximately US$0.79 million) and made an initial cash investment of RMB2.0 million (approximately US$0.32 million) in 2021 [184]. - The remaining investment amount of RMB3.0 million (approximately US$0.47 million) in Global Best Products is expected to be paid by December 31, 2022 [184]. Tax and Legal Matters - The company recognized an income tax benefit of approximately US$0.002 million for the three months ended March 31, 2022, compared to US$0.10 million for the same period in 2021 [163]. - The current PRC Enterprise Income Tax Law imposes a 10% withholding income tax on dividends distributed by foreign invested enterprises, which was previously exempted [180]. - The company is currently not a party to any legal or administrative proceedings, indicating a stable legal standing [189]. Internal Controls and Procedures - The company’s disclosure controls and procedures were evaluated as effective as of March 31, 2022, ensuring timely reporting of required information [186]. - There were no changes in internal control over financial reporting that materially affected the company during the first fiscal quarter of 2022 [188]. Future Expectations - The company anticipates maintaining the gross margin rate for Internet advertising services at current levels in the following quarters of fiscal 2022 [151]. - The company expects slight improvement in the gross margin rate for search engine marketing services in the upcoming quarters of fiscal 2022 [152].

```markdown [PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Interim Financial Statements](index=3&type=section&id=Item%201.%20Interim%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q1 2021, detailing financial position, performance, cash flows, and significant accounting policies Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | March 31, 2021 (Unaudited) | December 31, 2020 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $15,785 | $4,297 | | **Total Current Assets** | $26,540 | $12,884 | | **Total Assets** | $38,627 | $20,667 | | **Warrant liabilities** | $10,919 | $1,505 | | **Total Liabilities** | $20,267 | $8,188 | | **Total Equity** | $18,360 | $12,479 | - **Total assets nearly doubled**, primarily driven by a significant increase in cash and cash equivalents resulting from financing activities. Warrant liabilities also saw a substantial increase from **$1.5 million** to **$10.9 million**[6](index=6&type=chunk) Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended Mar 31, 2021 | Three Months Ended Mar 31, 2020 | | :--- | :--- | :--- | | **Total Revenues** | $8,396 | $4,384 | | **Gross (Loss)/Profit** | $(717) | $899 | | **Loss from Operations** | $(1,815) | $(2,276) | | **Change in fair value of warrant liabilities** | $2,507 | $46 | | **Net Income/(Loss)** | $687 | $(2,310) | | **Basic and Diluted EPS** | $0.02 | $(0.11) | - The company's **revenue nearly doubled** year-over-year. Despite a **gross loss**, the company achieved **net income** primarily due to a significant non-cash gain of **$2.5 million** from the change in fair value of warrant liabilities[12](index=12&type=chunk) Consolidated Statements of Cash Flows Highlights (in thousands) | Metric | Three Months Ended Mar 31, 2021 | Three Months Ended Mar 31, 2020 | | :--- | :--- | :--- | | **Net cash (used in)/provided by operating activities** | $(3,706) | $1,518 | | **Net cash used in investing activities** | $(1,865) | $(1,117) | | **Net cash provided by/(used in) financing activities** | $17,111 | $(430) | | **Net increase/(decrease) in cash** | $11,488 | $(48) | - The company's **cash position significantly improved** due to **$17.1 million** in net cash from financing activities, which involved the issuance of common stock and warrants. This inflow offset cash used in operating and investing activities[19](index=19&type=chunk) Notes to Condensed Consolidated Financial Statements - The company conducts certain business in the PRC through Variable Interest Entities (VIEs). As of March 31, 2021, these VIEs held total assets of **$10.0 million** and total liabilities of **$7.7 million**[29](index=29&type=chunk)[30](index=30&type=chunk) - In February 2021, the company completed a registered direct offering, raising gross proceeds of approximately **$18.7 million** by issuing **5,212,000 shares** of common stock and warrants. The warrants are accounted for as derivative liabilities measured at fair value[87](index=87&type=chunk)[92](index=92&type=chunk) - The company is developing two blockchain technology-based platform applications, OMG and Bo!News, with capitalized development costs of approximately **$4.40 million** as of March 31, 2021[74](index=74&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2021 revenue growth, a gross loss, and improved net income and liquidity driven by reduced expenses and financing activities Revenue by Service Type (in thousands) | Revenue Type | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Internet advertising and related services | $8,267 | $3,236 | | Ecommerce O2O advertising and marketing services | $129 | $503 | | Technical solution services | $- | $645 | | **Total Revenues** | **$8,396** | **$4,384** | - **Total revenues increased by 91.7%** year-over-year, primarily due to the recovery of the Internet advertising and search engine marketing services business following the containment of COVID-19 in China[159](index=159&type=chunk)[160](index=160&type=chunk) - The company experienced a **gross loss of $0.72 million (-9% margin)** compared to a **gross profit of $0.90 million (21% margin)** in the prior year. The loss was driven by a negative margin in the search engine marketing service segment, as resource costs from suppliers increased while the company did not pass these costs on to clients to maintain its customer base[164](index=164&type=chunk)[166](index=166&type=chunk)[168](index=168&type=chunk) - **Total operating expenses decreased from $3.18 million to $1.10 million**, largely due to a **significant reduction** in share-based compensation expenses compared to Q1 2020[170](index=170&type=chunk)[172](index=172&type=chunk) Net Cash Flow Summary (in thousands) - As of March 31, 2021, the company had cash and cash equivalents of approximately **$15.8 million**[179](index=179&type=chunk) | Cash Flow Activity | Three Months Ended Mar 31, 2021 | Three Months Ended Mar 31, 2020 | | :--- | :--- | :--- | | Operating Activities | $(3,706) | $1,518 | | Investing Activities | $(1,865) | $(1,117) | | Financing Activities | $17,111 | $(430) | - The company's **liquidity was significantly enhanced** by a financing activity in Q1 2021, which generated net proceeds of approximately **$17.1 million**[190](index=190&type=chunk) - As of March 31, 2021, net assets of the company's PRC subsidiaries and VIEs restricted from transfer to the parent company amounted to approximately **$13.2 million**[193](index=193&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section is omitted as the company qualifies as a smaller reporting company - The company has **omitted** this information as it is a smaller reporting company[198](index=198&type=chunk) [Item 4. Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2021, with no material changes to internal control over financial reporting - Based on an evaluation, the principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were **effective** as of March 31, 2021[198](index=198&type=chunk) - There were **no changes** in internal control over financial reporting during the first fiscal quarter of 2021 that materially affected, or are reasonably likely to materially affect, internal controls[199](index=199&type=chunk) [PART II. OTHER INFORMATION](index=44&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently a party to any material legal or administrative proceedings - The company is **not currently a party** to any material legal or administrative proceedings[200](index=200&type=chunk) [Item 1A. Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) This information is omitted as the company is a smaller reporting company - This information has been **omitted** based on the Company's status as a smaller reporting company[201](index=201&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities or use of proceeds were reported for the period - **None reported** for the period[201](index=201&type=chunk) [Item 6. Exhibits](index=45&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed, including officer certifications and Interactive Data Files - The exhibits filed with this report include officer certifications pursuant to Sarbanes-Oxley Act Sections 302 and 906, and Interactive Data Files[202](index=202&type=chunk) ```

Financial Performance - Total revenues for the year ended December 31, 2020, were US$38.4 million, a decrease of 34% from US$58.1 million in 2019[11]. - Net loss attributable to stockholders was US$5.22 million for 2020, compared to a net loss of US$1.26 million in 2019[11]. - The company's Internet advertising, precision marketing, and related data services generated revenues of US$35.6 million for the year ended December 31, 2020, a decrease from US$56.9 million in 2019, representing 92.7% of total revenues in 2020[65]. - The overall gross profit margin for the Internet advertising segment decreased significantly to -0.2% in 2020 from 8% in 2019, primarily due to the impact of COVID-19[65]. - For the year ended December 31, 2020, the company had approximately 660 clients using its services, down from 1,100 clients in 2019[65]. - The company derived 92.7% of total net revenues from Internet advertising and related services in 2020, compared to 97.9% in 2019[67]. Business Development and Strategy - The company plans to complete the integration of BO!News and OMG onto the Blockchain Integrated Framework (BIF) for commercial release by the first half of 2021[23]. - The company anticipates generating service revenues from participating merchants using the OMG application, along with additional recurring internet advertising service revenues[20]. - The BO!News App aims to facilitate social interaction and entrepreneurial activities, rewarding users with points for content contributions, which are not associated with cryptocurrency[16]. - The OMG App will allow users to consolidate loyalty points from various merchants, enhancing customer experience and providing a marketing platform for merchants[17]. - The company has established a new subsidiary, ChinaNet Online (Guangdong) Technology Co., Ltd., to expand its business and technology headquarters in Guangzhou, China[24]. - The company has initiated partnerships to enhance technology in blockchain development and data analytics, aiming to improve online branding and marketing services[26]. Market and Industry Trends - The online advertising revenue in China was estimated to reach RMB793.24 billion (approximately US$115.0 billion) in 2020, reflecting a year-over-year increase of 22.7%[55]. - The advertising market in China is projected to grow by 5.3% in 2021 and 5.0% in 2022, despite the slowdown due to COVID-19[51]. - The Internet penetration rate in China reached 70.4% by the end of December 2020, with total internet users increasing to approximately 989 million[54]. - The mobile internet user base reached 986 million by December 2020, accounting for 99.7% of total internet users[54]. - The growth of the Internet advertising market is driven by the rapid development of SMEs and O2O businesses in China[58]. Regulatory Environment - The Foreign Investment Law, effective January 1, 2020, replaced previous laws and aims to unify corporate legal requirements for foreign and domestic investments, but uncertainties remain regarding its interpretation and implementation[82]. - The company is subject to foreign currency exchange regulations, which require compliance for all business operations involving currency conversion and remittance[96]. - Under PRC regulations, dividends can only be paid from accumulated profits, with a requirement to set aside at least 10% of after-tax profits to a statutory capital reserve until it reaches 50% of registered capital[98]. - The Enterprise Income Tax Law imposes a uniform tax rate of 25% on all enterprises, including foreign-invested enterprises, effective since January 1, 2008[99][100]. - The company’s contractual arrangements with its VIEs are currently valid and enforceable, but future regulatory changes could impact these arrangements[80]. COVID-19 Impact - The impact of COVID-19 has led to a decrease in revenue in 2020, with potential ongoing effects on operations and customer behavior due to pandemic-related restrictions[29]. - The company experienced a decrease in revenue in 2020 due to the impact of the COVID-19 pandemic, which affected workforce operations and customer behavior[29]. Technology and Innovation - The blockchain platform is being developed on the Ethereum platform and is integrating with hyperledger solutions to minimize risks associated with security and infrastructure[21]. - The company plans to enhance its research and development efforts, focusing on mobile-based application systems and blockchain technology for future growth[70]. - The company intends to enhance its software systems for tracking advertiser demands and data analysis, with a focus on blockchain technology for its new Business Opportunity Social Ecosystem[70]. Corporate Structure and Operations - As of December 31, 2020, the company has a corporate structure that includes multiple subsidiaries and variable interest entities (VIEs) engaged in internet advertising and precision marketing[30]. - The company operates its ICP and advertising businesses through local entities, relying on Business Opportunity Online and Beijing CNET Online, without holding equity interests in these PRC Operating Entities[79]. - The company is dependent on its PRC operating entities to conduct its ICP and advertising business due to restrictions on foreign investments in these sectors[79].

Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, par value $0.001 CNET Nasdaq Capital Market UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ to _____ Commission Fi ...

Revenue Performance - Total revenues decreased to US$14.80 million and US$10.42 million for the six and three months ended June 30, 2020, from US$24.02 million and US$15.45 million for the same periods in 2019, primarily due to declines in Internet advertising and search engine marketing services as a result of COVID-19 [118]. - Internet advertising revenues for the six and three months ended June 30, 2020, were approximately US$3.25 million and US$2.30 million, respectively, compared to US$5.44 million and US$3.60 million for the same periods in 2019, reflecting a 40% decrease year-over-year [119]. - Revenue from distribution of the right to use search engine marketing services was approximately US$9.30 million and US$7.31 million for the six and three months ended June 30, 2020, down from US$18.58 million and US$11.86 million in 2019, indicating a 50% decrease year-over-year [120]. - Ecommerce O2O advertising and marketing service revenues were approximately US$1.01 million and US$0.50 million for the six and three months ended June 30, 2020, respectively [121]. - Total revenue for the six months ended June 30, 2020, was approximately US$14.80 million, a decrease from US$24.02 million for the same period in 2019 [131]. Profit and Loss - The net loss attributable to ChinaNet Online Holdings, Inc. was US$3.28 million for the six months ended June 30, 2020, compared to a net loss of US$1.52 million for the same period in 2019 [115]. - The company incurred a loss from operations of approximately US$3.30 million for the six months ended June 30, 2020, compared to a loss of US$1.96 million in 2019 [136]. - For the six months ended June 30, 2020, the company incurred a total net loss of approximately US$3.28 million, compared to a net loss of US$1.52 million for the same period in 2019 [141]. - The loss before income tax for the six months ended June 30, 2020, was approximately US$3.21 million, compared to a loss of US$1.52 million for the same period in 2019 [138]. - The company recognized an income tax expense of approximately US$0.06 million for the six months ended June 30, 2020, related to net income generated by one of its operating subsidiaries [139]. Operating Expenses - Operating expenses increased to US$4.49 million for the six months ended June 30, 2020, compared to US$2.77 million in 2019, with significant increases in general and administrative expenses [114]. - General and administrative expenses increased to US$3.93 million for the six months ended June 30, 2020, from US$2.06 million in 2019 [134]. - Research and development expenses rose to approximately US$0.33 million for the six months ended June 30, 2020, compared to US$0.12 million in 2019 [135]. - Sales and marketing expenses decreased to US$0.24 million for the six months ended June 30, 2020, from US$0.35 million in 2019 [133]. Cash Flow and Investments - The net cash provided by operating activities for the six months ended June 30, 2020, was approximately US$1.17 million, a significant improvement from a net cash used of US$2.33 million in the same period of 2019 [147]. - The company recorded a net cash outflow from investing activities of approximately US$1.27 million for the six months ended June 30, 2020, primarily due to investments in technology and loans to third parties [155]. - The net cash used in financing activities for the six months ended June 30, 2020, was approximately US$0.43 million, primarily for the repayment of a short-term bank loan [157]. Assets and Liabilities - As of June 30, 2020, the company had cash and cash equivalents of approximately US$1.06 million [144]. - As of June 30, 2020, net assets restricted in the aggregate were approximately US$6.34 million, which includes paid-in capital and statutory reserve funds of the company's PRC subsidiaries and VIEs [160]. - There are no off-balance sheet arrangements reported by the company [165]. Strategic Initiatives - The company incorporated a new wholly-owned subsidiary, ChinaNet Online Guangdong, in May 2020 to enhance blockchain services and optimize client proximity, officially commencing operations in July 2020 [111]. - The company made an investment of RMB0.19 million (approximately US$0.03 million) in Business Opportunity Chain Guangzhou, acquiring a 19% equity interest to integrate resources for social media-based business promotion [112]. - The company plans to gradually transfer core business activities to the new subsidiary in Guangdong and seek local partners for high-technology related business development [111]. - The company intends to improve cash flow status by enhancing gross profit margins and strengthening receivables collection management [146]. Cost of Revenues - The company reported a gross profit of US$13.60 million for the six months ended June 30, 2020, down from US$23.21 million in 2019, reflecting the impact of reduced revenues [114]. - Total cost of revenues decreased to US$13.60 million for the six months ended June 30, 2020, down from US$23.22 million for the same period in 2019 [123]. - Internet advertising and related data service costs decreased to approximately US$2.91 million for the six months ended June 30, 2020, from US$5.22 million in 2019 [124]. - The gross margin for internet advertising and data service improved to 11% for the six months ended June 30, 2020, compared to 4% in the same period last year [124]. - Gross profit for the six months ended June 30, 2020, was approximately US$1.20 million, with a gross margin of 8%, compared to US$0.81 million and 3% for the same period in 2019 [129]. Currency and Dividend Considerations - The current Exchange Rules allow conversion of Renminbi into foreign currency for current account items, but capital items require SAFE approval [164]. - Most of the company's retained earnings are generated in Renminbi, which may limit future dividend payments in U.S. dollars [164].

Financial Performance - Total revenues for the three months ended March 31, 2020, were $4.384 million, a decrease of 48.8% from $8.567 million in the same period of 2019[13]. - Gross profit for the same period was $899 thousand, compared to $442 thousand in the prior year, indicating an increase in gross profit margin[13]. - The net loss for the three months ended March 31, 2020, was $2.310 million, compared to a net loss of $1.140 million in the same period of 2019, reflecting a worsening financial performance[15]. - The company reported a net loss of $2.310 million for the three months ended March 31, 2020, compared to a net loss of $1.138 million for the same period in 2019, resulting in a basic and diluted loss per share of $0.11[103][115]. - The company incurred a loss from operations of approximately $2.28 million for the three months ended March 31, 2020, compared to a loss of $0.74 million in 2019[139]. - The comprehensive loss attributable to ChinaNet Online Holdings, Inc. for the same period was $2,239,000, compared to $1,173,000 in the prior year, indicating an increase of 90.9%[15]. Cash Flow and Liquidity - Cash and cash equivalents at the end of the period were $1.555 million, a slight decrease from $1.603 million at the beginning of the period[18]. - The company reported a net cash provided by operating activities of $1.518 million for the three months ended March 31, 2020, compared to a net cash used of $2.270 million in the same period of 2019[16]. - Cash flows from operating activities showed a net cash provided of $1,518,000 for the three months ended March 31, 2020, compared to a net cash used of $2,270,000 in the same period of 2019, indicating a significant turnaround[16]. - There is substantial doubt about the company's ability to continue as a going concern within one year after the issuance of the financial statements, with plans to improve cash flow through various strategies[149]. Operating Expenses - Operating expenses increased significantly to $3.175 million from $1.180 million year-over-year, primarily due to higher general and administrative expenses[13]. - Total operating expenses for the three months ended March 31, 2020, were $3.175 million, with significant expenses in corporate operations amounting to $2.148 million[99]. - The company incurred share-based compensation expenses of approximately $1.919 million for the three months ended March 31, 2020, compared to $101,000 in the same period of 2019[110]. - General and administrative expenses rose to US$2.80 million for the three months ended March 31, 2020, from US$0.81 million in 2019, largely due to a US$1.55 million increase in share-based compensation[137]. Assets and Liabilities - Total current assets as of March 31, 2020, were approximately $6.05 million, down from $7.66 million as of December 31, 2019, indicating a decline of 21%[23]. - Total liabilities as of March 31, 2020, were approximately $4.63 million, a decrease from $5.65 million as of December 31, 2019, representing a reduction of 18%[23]. - The company reported total taxes payable of US$3.26 million as of March 31, 2020, slightly increasing from US$3.21 million as of December 31, 2019[66]. - The company has incurred aggregate net operating losses (NOLs) of approximately US$22.3 million as of March 31, 2020, with carryforwards expiring over time[68]. Revenue Breakdown - Revenue from internet advertising and related services was $3,236,000, accounting for 73.8% of total revenues, down from $8,562,000 in the prior year[37]. - The company recognized revenue of $3.74 million over time and $0.65 million at a point in time for the three months ended March 31, 2020[37]. - Revenues from Internet advertising and related services decreased significantly to $0.95 million and $1.99 million for the three months ended March 31, 2020, compared to $1.84 million and $6.73 million for the same period in 2019[124]. Strategic Initiatives - The company is in the process of developing blockchain-powered platform applications as part of its business expansion strategy[22]. - The company plans to optimize its internet resources cost investment strategy to improve gross profit margins and strengthen accounts receivable collection management[29]. - The company expects to officially open its new Guangzhou headquarters in July 2020 to enhance blockchain services and optimize client proximity[118]. Market and Operational Risks - The COVID-19 outbreak has adversely affected the company's business operations and cash flows, raising substantial doubt about its ability to continue as a going concern[29]. - The company’s operations were significantly impacted by the COVID-19 pandemic, leading to decreased advertising spending and delays in revenue growth[114]. - The company reported a significant concentration of supplier risk, with Supplier A accounting for 71% of the cost of revenues for the three months ended March 31, 2020[93].