Ucommune(US:UK)2023-04-24 16:00Financial Position - As of December 31, 2022, the company had cash and cash equivalents of RMB53.2 million (US$7.7 million), down from RMB348.1 million in 2020 and RMB165.8 million in 2021[713]. - The company had a working capital deficit of RMB419.1 million (US$60.8 million) as of December 31, 2022[714]. - The accumulated deficit as of December 31, 2022, was RMB4,529.5 million (US$656.7 million)[714]. Operating Performance - The company reported operating losses of RMB353.9 million (US$51.3 million) in 2022, following losses of RMB2,126.8 million in 2021 and RMB494.7 million in 2020[714]. - The net cash used in operating activities was RMB175.9 million (US$25.5 million) in 2022, compared to RMB199.1 million in 2021 and RMB27.6 million in 2020[725]. - In 2022, the company recorded impairment losses on right-of-use assets totaling RMB13.0 million (US$1.9 million) and on other non-current assets totaling RMB88.6 million (US$12.8 million)[748]. - Goodwill impairment losses were recorded as RMB43.0 million (US$6.2 million) in 2022, with the goodwill fully impaired as of December 31, 2022[765]. Investment and Financing Activities - The company reported net cash provided by investing activities of RMB28.6 million (US$4.2 million) in 2022, a significant increase from net cash used in investing activities of RMB59.1 million in 2021[728]. - The company’s financing activities resulted in a net cash outflow of RMB14.9 million (US$2.2 million) in 2022, compared to a net inflow of RMB78.9 million in 2021[731]. - In January 2022, the company closed a private placement that generated net proceeds of approximately US$2.6 million[716]. Revenue Recognition - Workspace membership revenue is recognized ratably on a monthly basis over the lease term, with most memberships being less than one year[756]. - The company follows a five-step approach for revenue recognition under Topic 606, ensuring control of goods or services is transferred to customers[758]. Lease Accounting - The company adopted ASC Topic 842 for leases, recognizing lease liabilities and right-of-use assets at the commencement of each lease[749]. Share-Based Compensation - Share-based compensation expense arises from share-based awards granted to employees and consultants[766]. - A binomial option pricing model is applied to determine the fair value of share options granted[766]. - Share-based compensation expense for share options is recognized on a tranche-by-tranche method over the requisite service period[766]. - The company does not estimate the forfeiture rate but accounts for forfeitures when they occur[766]. - Any change in terms or conditions of share awards is accounted for as a modification[767]. - Incremental compensation cost of modification is calculated as the excess of the fair value of modified awards over original awards[767]. - The sum of incremental compensation cost and remaining unrecognized compensation cost is recognized over the remaining requisite service period of modified awards[767]. Corporate Structure and Distributions - The company has not made any capital contributions to the VIEs due to the holding company structure[738]. - The company has not distributed earnings or settled amounts owed under contractual arrangements as of the date of the annual report[739]. - Since January 1, 2018, no dividends or distributions have been made between the Parent, its subsidiaries, and the consolidated VIEs[739]. - The company has three reporting units for goodwill monitoring, with qualitative assessments performed annually[763].