ZW Data Action Technologies Inc. Stock Compensation Disclosure
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23. |
Share-based compensation expenses |
In August and September of 2024, under its 2023 Omnibus Securities and Incentive Plan, the Company granted and issued an aggregate of approximately 0.19 million fully-vested shares of the Company’s restricted common stock to employees of the Company in exchange for their services to the Company. These shares were valued at the closing bid price of the Company’s common stock on the respective date of grant. Total compensation expenses recognized was approximately US$0.45 million for the year ended December 31, 2024.
In August 2024, the Company granted and issued approximately 0.18 million fully-vested and non-forfeitable shares of the Company restricted common stock to business and financial consultants in exchange for their service for a 12-month period until August 2025. Total compensation expenses amortized was approximately US$0.23 million and US$0.35 million for the years ended December 31, 2024 and 2025, respectively.
The table below summarized share-based compensation expenses recorded for the years ended December 31, 2025 and 2024, respectively:
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Year Ended December 31, |
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2025 |
2024 |
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US$(’000) |
US$(’000) |
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Sales and marketing expenses |
- | - | ||||||
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General and administrative expenses |
345 | 684 | ||||||
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Research and development expenses |
- | - | ||||||
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Total |
345 | 684 | ||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 31, 2026 | Showing above |
| 2024 | Apr 15, 2025 | |
| 2023 | Jun 28, 2024 | |
| 2022 | Apr 17, 2023 | |
| 2021 | Apr 15, 2022 | |
| 2020 | Apr 13, 2021 | |
| 2019 | May 27, 2020 | |
| 2018 | Apr 15, 2019 | |
About Stock Compensation Disclosures
Stock-based compensation disclosures detail the equity awards granted to employees and executives — including stock options, restricted stock units (RSUs), and performance shares — along with the valuation methods and assumptions used to expense them. This section reveals the true cost of talent retention and the alignment between management incentives and shareholder interests.
Key signals: total unrecognized compensation expense and its expected recognition period signal future earnings headwinds from already-granted awards. For stock options, examine Black-Scholes assumptions — expected volatility, risk-free rate, and expected term — as understating any of these reduces reported compensation expense. Compare stock compensation expense as a percentage of revenue against peers to assess dilution cost. Watch vesting schedules for acceleration clauses tied to change-of-control events. Performance-based awards with undemanding targets may indicate weak governance. Add back stock compensation to operating cash flow to calculate a more conservative free cash flow figure.