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GIGAMEDIA Ltd

GIGAMEDIA LtdGIGM财报

Nasdaq · 通信服务 · 计算机编程、数据处理等服务

GIGAMEDIA Ltd is a digital entertainment and technology service provider focused primarily on the Asian market. Its core offerings include multiplayer online games, cloud computing solutions, and digital media content, serving both individual consumer entertainment needs and enterprise digital service demands.

What changed in GIGAMEDIA Ltd's 20-F — 2023 vs 2024

Top changes in GIGAMEDIA Ltd's 2024 20-F

163 paragraphs added · 166 removed · 142 edited across 5 sections

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Although we have developed systems and processes that are designed to protect consumer information and prevent fraudulent credit card transactions and other security breaches and are not aware of any breaches of security on our websites having occurred, failure to mitigate such fraud or breaches may expose us to litigation and possible liability for failing to secure confidential customer information and could harm our reputation and ability to attract and retain customers, consequently adversely affect our operating results.
Although we have developed systems and processes that are designed to protect consumer information and prevent fraudulent credit card transactions and other security breaches and are not aware of any material breaches of security on our websites having occurred, failure to mitigate such fraud or breaches may expose us to litigation and possible liability for failing to secure confidential customer information and could harm our reputation and ability to attract and retain customers, consequently adversely affect our operating results.
Any such instability, volatility or adverse impact in Greater China or in overseas markets could cause our game players to reduce their spending on our games and reduce our revenues. Fluctuations in the exchange rates between the U.S. dollar and other currencies in which we conduct our business could adversely affect our profitability.
Any such instability, volatility or adverse impact in Greater China or in overseas markets could cause our game players to reduce their spending on our games and reduce our revenues. 11 Fluctuations in the exchange rates between the U.S. dollar and other currencies in which we conduct our business could adversely affect our profitability.
Political unrest, war, acts of terrorism and other instability, as well as natural disasters such as earthquakes and typhoons, which are common in Taiwan, can result in disruption to our business. For example, the 2019 civil unrest in Hong Kong caused a few days of disruption to our Hong Kong operations.
In addition, political unrest, war, acts of terrorism and other instability, as well as natural disasters such as earthquakes and typhoons, which are common in Taiwan, can result in disruption to our business. For example, the 2019 civil unrest in Hong Kong caused a few days of disruption to our Hong Kong operations.
Liquidity and Capital Resources.” 6 Risks Related to Our Reliance on Third Parties Dependence on network suppliers may adversely affect our operating results. Our success depends in part upon the capacity, reliability, and performance of our network infrastructure, including the capacity leased from our Internet bandwidth suppliers.
Liquidity and Capital Resources.” Risks Related to Our Reliance on Third Parties Dependence on network suppliers may adversely affect our operating results. Our success depends in part upon the capacity, reliability, and performance of our network infrastructure, including the capacity leased from our Internet bandwidth suppliers.
In light of our significant cash balances and portfolio of investment securities, we believe that it is likely that we were classified as a passive foreign investment company, or PFIC, for the taxable year ended December 31, 2023, and we will likely be a PFIC for our current taxable year ending December 31, 2024, unless our share value increases substantially and/or we invest a substantial amount of the cash and other passive assets we hold in assets that produce or are held for the production of non-passive income.
In light of our significant cash balances and portfolio of investment securities, we believe that it is likely that we were classified as a passive foreign investment company, or PFIC, for the taxable year ended December 31, 2024, and we will likely be a PFIC for our current taxable year ending December 31, 2025, unless our share value increases substantially and/or we invest a substantial amount of the cash and other passive assets we hold in assets that produce or are held for the production of non-passive income.
In addition, sophisticated hardware and operating system software and applications that we procure from third parties may contain defects in design or manufacture, including “bugs,” cybersecurity vulnerabilities and other problems that could unexpectedly interfere with the operation or security of our systems. We have a variety of backup servers at our primary site to deal with possible system failures.
In addition, sophisticated hardware and operating system software and applications that we procure from third parties may contain defects in design or manufacture, including “bugs,” cybersecurity vulnerabilities and other problems that could unexpectedly interfere with the operation or security of our systems. We have a variety of backup servers at our primary site to address possible system failures.
A substantial percentage of our outstanding Shares are beneficially owned by Mr. John-Lee Andre Koo, who accordingly has considerable influence to the outcome of any corporate transaction or other matters submitted to our shareholders for approval, and his interests may differ from yours. As of March 31, 2024, Mr. John-Lee Andre Koo beneficially owned 19.54% of our outstanding Shares.
A substantial percentage of our outstanding Shares are beneficially owned by Mr. John-Lee Andre Koo, who accordingly has considerable influence to the outcome of any corporate transaction or other matters submitted to our shareholders for approval, and his interests may differ from yours. As of March 31, 2025, Mr. John-Lee Andre Koo beneficially owned 19.54% of our outstanding Shares.
If we fail to do so, revenues generated from our existing services will likely decline. 3 As our services are currently accessed primarily through PC and, increasingly, mobile devices, successful development of services for such devices will be imperative if we are to maintain or increase our revenues, and our inability to do so may result in lower growth of or a decline in revenues.
If we fail to do so, revenues generated from our existing services will likely decline. 3 As our services are currently accessed primarily through PCs and, increasingly, mobile devices, successful development of services for such devices will be imperative if we are to maintain or increase our revenues, and our inability to do so may result in lower growth of or a decline in revenues.
However, based on our historical and current business activities, our intentions, the manner in which we hold ourselves out to the public, the primary activities of our officers and directors and an analysis of our non-cash assets and income during 2023, the first quarter of 2024 and in prior periods, we believe that we are not an investment company.
However, based on our historical and current business activities, our intentions, the manner in which we hold ourselves out to the public, the primary activities of our officers and directors and an analysis of our non-cash assets and income during 2024, the first quarter of 2025 and in prior periods, we believe that we are not an investment company.
If a material cybersecurity incident were to occur, our board of directors would be responsible for making a prompt assessment of our countermeasures and mitigation actions. See Item 16K, “Cybersecurity” in this annual report. Our business is also vulnerable to delays or interruptions due to our reliance on infrastructure and related services provided by third parties.
If a material cybersecurity incident were to occur, our board of directors would be responsible for overseeing the prompt assessment of our countermeasures and mitigation actions. See Item 16K, “Cybersecurity” in this annual report. Our business is also vulnerable to delays or interruptions due to our reliance on infrastructure and related services provided by third parties.
We have implemented anti-fraud procedures in order to control losses relating to these practices, but these procedures may not be adequate to effectively limit all of our exposure in the future from fraud.
We have implemented anti-fraud procedures designed to control losses relating to these practices, but these procedures may not be adequate to effectively limit all of our exposure in the future from fraud.
In 2023, 2022 and 2021, we incurred consolidated operating losses of US$3.2 million, US$3.0 million and US$4.0 million as well as net losses of US$3.4 million, US$2.8 million and US$3.4 million, respectively. Our future profitability will depend to a great extent upon the performance of our digital entertainment service business, as well as certain non-operating aspects.
In 2024, 2023 and 2022, we incurred consolidated operating losses of US$3.7 million, US$3.2 million and US$3.0 million as well as net losses of US$2.3 million, US$3.4 million and US$2.8 million, respectively. Our future profitability will depend to a great extent upon the performance of our digital entertainment service business, as well as certain non-operating aspects.
However, a company that is primarily engaged, directly or through wholly owned subsidiaries, in a business or businesses other than that of investing, reinvesting, owning, holding or trading in securities is not an investment company. 13 In the past, we disposed of our online gambling business and made several significant investments in online game developers and operators.
However, a company that is primarily engaged, directly or through wholly owned subsidiaries, in a business or businesses other than that of investing, reinvesting, owning, holding or trading in securities is not an investment company. 13 In the past, we disposed of our online gambling business and made several significant investments in online game developers and operators, as well as in Aeolus, a robotics company.
Our ability to grow through such acquisitions and investments will depend on many factors, including the availability of suitable acquisition candidates at an acceptable cost, our ability to reach agreement with acquisition candidates or investee companies on commercially reasonable terms, the availability of financing to complete transactions and our ability to obtain any required governmental approvals.
Our ability to grow through such acquisitions and investments will depend on many factors, including the availability of suitable acquisition candidates at an acceptable cost, our ability to reach agreement with acquisition candidates or investee companies on commercially reasonable terms, the availability of financing to complete transactions and our ability to obtain any required governmental approvals. 5 We also face challenges in integrating any acquired business.
In 2023, the closing prices of our Shares on The Nasdaq Capital Market ranged from US$1.20 to US$1.57 per share, and the closing price on April 11, 2024 was US$1.2955. Our Share price may fluctuate in response to a number of events and factors.
In 2024, the closing prices of our Shares on The Nasdaq Capital Market ranged from US$1.24 to US$1.58 per share, and the closing price on April 11, 2025 was US$1.54. Our Share price may fluctuate in response to a number of events and factors.
In addition to training and managing our workforce, we will need to continue to develop and improve our financial and management controls and our reporting systems and procedures, including those of acquired businesses.
Anticipated expansion of our operations will place a significant strain on our management, operation systems and resources. In addition to training and managing our workforce, we will need to continue to develop and improve our financial and management controls and our reporting systems and procedures, including those of acquired businesses.
The development of our business may require significant additional capital in the future to: • fund our operations; • enhance and expand the range of products and services we offer; and • respond to competitive pressures and perceived opportunities, such as investment, acquisition and international expansion activities.
The development of our business may require significant additional capital in the future to: • fund our operations; • enhance and expand the range of products and services we offer; and • respond to competitive pressures and perceived opportunities, such as investment, acquisition and international expansion activities. 6 We cannot assure you that additional financing will be available on terms favorable to us, if at all.
We also face challenges in integrating any acquired business. These challenges include eliminating redundant operations, facilities and systems, coordinating management and personnel, retaining key employees, managing different corporate cultures, maintaining the relationship with the suppliers, vendors and/or distributors of acquired businesses, and achieving cost reductions and cross-selling opportunities.
These challenges include eliminating redundant operations, facilities and systems, coordinating management and personnel, retaining key employees, managing different corporate cultures, maintaining the relationship with the suppliers, vendors and/or distributors of acquired businesses, and achieving cost reductions and cross-selling opportunities. There can be no assurance that we will be able to successfully integrate all aspects of acquired businesses.
In addition, the benefits of an acquisition or investment transaction may take considerable time to be fully realized and we cannot assure you that any particular acquisition or investment and the subsequent integration will produce the intended benefits. 5 Further, our business could be adversely impacted by the performance of our investments in other entities.
The process of integrating the acquired business may disrupt our business and divert our resources, including the resources of our management. In addition, the benefits of an acquisition or investment transaction may take considerable time to be fully realized and we cannot assure you that any particular acquisition or investment and the subsequent integration will produce the intended benefits.
We cannot assure you that additional financing will be available on terms favorable to us, if at all. If adequate funds are not available on acceptable terms, we may be forced to curtail or cease our operations.
If adequate funds are not available on acceptable terms, we may be forced to curtail or cease our operations.
Game players’ spending on our games may be adversely affected by slower growth in the Greater China economy and adverse conditions in the global economy. We rely for our revenues on the spending of our game players, which in turn depends on the players’ level of disposable income, perceived future earnings capabilities and willingness to spend.
We rely for our revenues on the spending of our game players, which in turn depends on the players’ level of disposable income, perceived future earnings capabilities and willingness to spend. Economic slowdowns in Greater China, especially Taiwan or Hong Kong, could in turn result in a reduction in spending by our game players.
In recent years, revenues from our PC-based games have been largely flat or declining, reflecting the overall shift in player preferences, and the lack of growth momentum in PC-based games.
In recent years, revenues from our PC-based games have been declining, reflecting the overall shift in player preferences, and the lack of growth momentum in PC-based games. This decline in the popularity of PC-based online games, and declines in the popularity of online games in general, is likely to adversely affect our business, financial condition and results of operations.
With respect to equity method investees, if any, we may be required to share a portion of such investees’ losses in accordance with U.S. GAAP. In each case, our results of operations may be adversely impacted if our investments do not perform. Our business could suffer if we do not successfully achieve and manage current growth and potential future growth.
We may incur impairment charges in respect of our equity investees and investments in debt securities, which may affect our results of operations. With respect to equity method investees, if any, we may be required to share a portion of such investees’ losses in accordance with U.S. GAAP.
Our investments may generate significant losses arising from factors that may be out of our control, such as economic downturns, geopolitical tensions and macroeconomic volatility. We may incur impairment charges in respect of our equity investees and investments in debt securities, which may affect our results of operations.
Further, our business could be adversely impacted by the performance of our investments in other entities. Our investments may generate significant losses arising from factors that may be out of our control, such as economic downturns, geopolitical tensions and macroeconomic volatility.
This decline in the popularity of PC-based online games, and declines in the popularity of online games in general, is likely to adversely affect our business, financial condition and results of operations. To maintain competitiveness of our digital entertainment services, we must regularly invest in enhancing, improving, expanding or upgrading our services.
To maintain competitiveness of our digital entertainment services, we must regularly invest in enhancing, improving, expanding or upgrading our services.
We are pursuing a number of growth strategies. Some of these strategies relate to services, products or markets in which we lack experience and expertise. Anticipated expansion of our operations will place a significant strain on our management, operation systems and resources.
In each case, our results of operations may be adversely impacted if our investments do not perform. Our business could suffer if we do not successfully achieve and manage current growth and potential future growth. We are pursuing a number of growth strategies. Some of these strategies relate to services, products or markets in which we lack experience and expertise.
Economic slowdowns in Greater China, especially Taiwan or Hong Kong, could in turn result in a reduction in spending by our game players. 11 In addition, the global economy has experienced significant instability and there has been volatility in global financial and credit markets in recent years.
In addition, the global economy has experienced significant instability and there has been volatility in global financial and credit markets in recent years. Recently, such volatility has been heightened by changing political and geopolitical conditions, including the implementation of wide-ranging blanket, reciprocal and retaliatory tariffs.
Removed
There can be no assurance that we will be able to successfully integrate all aspects of acquired businesses. The process of integrating the acquired business may disrupt our business and divert our resources, including the resources of our management.
Added
We may finance any such acquisition or strategic investment using cash on hand, through the issuance of new debt or equity securities, by exercising existing rights in debt or equity securities that we hold, or through a combination of employing these strategies.
Removed
The defense of such claims and any adverse ruling against us could have an adverse impact on our business, financial condition and results of operations. 10 On January 15, 2018, Ennoconn Corporation (“Ennoconn”) filed a complaint against one of our subsidiaries, GigaMedia Cloud Services Co., Ltd. (“GigaMedia Cloud”), in the Taiwan Taipei District Court.
Added
If we incur debt in connection with an acquisition or strategic investment, in addition to increasing our overall leverage, the terms of such debt may impose operational restrictions on us and/or require us to meet financial covenants. If we issue equity securities to finance such a transaction, this may result in substantial dilution to our existing shareholders.
Removed
The complaint alleged that GigaMedia Cloud is obligated to pay Ennoconn NTD 79,477,648 (approximately $2,697,471) in connection with a transaction to purchase taximeters in 2015. GigaMedia Cloud filed an answer to the complaint denying Ennoconn’s allegations for a lack of factual and legal basis on March 1, 2018.
Added
In addition, the consummation of such an investment transaction may have a material impact on our statement of operations if we are required to recognize in the profit and loss certain accumulated unrealized gain or loss previously accounted for as other comprehensive income as a result of such transaction.
Removed
On November 15, 2018, the Taiwan Taipei District Court determined that all of Ennoconn’s claims were without merit and made a judgment denying the complaint. On January 3, 2019, Ennoconn filed an appeal demanding the judgment entered by the District Court be reversed and amended.
Added
The defense of such claims and any adverse ruling against us could have an adverse impact on our business, financial condition and results of operations. As for recent legal proceedings, please see Note 17 to our consolidated financial statements for additional information. 10 Our transactions with related parties may not benefit us and may harm our Company.
Removed
The civil court of the second instance, the Taiwan High Court, ruled on January 8, 2020, that the decision of the Taiwan Taipei District Court should be partially modified and Ennoconn is entitled to NTD 27,084,180 (approximately $882,077). GigaMedia Cloud filed another appeal with the Taiwan Supreme Court on February 4, 2020.
Added
Changes in economic conditions in regions in which we operate, as well as changing geopolitical conditions, may be difficult to predict and may adversely affect our business and financial results. For example, our business operations and financial performance may be significantly influenced by the regional economic impact of international trade policies, including tariffs, which are subject to uncertainty and change.
Removed
On May 5, 2021, the Taiwan Supreme Court revoked the previous ruling of the Taiwan High Court, and sent the case back to the Taiwan High Court for a retrial. Under the Taiwan Supreme Court’s ruling, the appeal made by Ennoconn should be reviewed by the Taiwan High Court by following the instructions of the Taiwan Supreme Court.
Added
Such regional or global economic effects may be amplified in light of volatile shifts in global trade policies, including the imposition of tariffs and potential retaliatory actions that may occur. Game players’ spending on our games may be adversely affected by slower growth in the Greater China economy and adverse conditions in the global economy.
Removed
On May 18, 2022, the Taiwan High Court found such appeal meritless and made a civil judgment denying the complaint by Ennoconn. On June 15, 2022, Ennoconn filed an appeal and demanded that the Taiwan Supreme Court reverse this civil judgment and remand the case to the Taiwan High Court.
Removed
On February 22, 2023 the Taiwan Supreme Court revoked the previous ruling of the Taiwan High Court, and sent the case back to the Taiwan High Court for a retrial. On October 30, 2023, the Taiwan High Court ruled such appeal meritorious and Ennoconn has the right to claim compensation from GigaMedia Cloud.
Removed
On November 16, 2023, GigaMedia Cloud filed an appeal against the Taiwan High Court’s decision, and the appeal has been transferred to Taiwan Supreme Court on January 2, 2024. On April 17, 2024, the Taiwan Supreme Court, in a written notice, denied GigaMedia’s appeal. Our transactions with related parties may not benefit us and may harm our Company.
Removed
We have also limited, and intend to continue to limit, new strategic investments to those opportunities which would present excellent opportunities to complement or enhance our remaining businesses or would otherwise assist the Company in achieving our current corporate objectives.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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The purpose of the regulation is to ensure that non-government agencies in possession of personal data files shall implement proper security measures to prevent the personal data from being stolen, altered, damaged, destroyed or disclosed. Hong Kong Personal Data (Privacy) Ordinance The Personal Data (Privacy) Ordinance (Cap. 486) came into effect in Hong Kong on December 20, 1996.
The purpose of the regulation is to ensure that non-government agencies in possession of personal data files shall implement proper security measures to prevent the personal data from being stolen, altered, damaged, destroyed or disclosed. 20 Hong Kong Personal Data (Privacy) Ordinance The Personal Data (Privacy) Ordinance (Cap. 486) came into effect in Hong Kong on December 20, 1996.
Examples of in-game events include scheduled challenges or competitions for prizes. In addition, we use in-game events to introduce and market new features of our games to our current users. 17 We advertise our brands and our digital entertainment products across a variety of online media, including traditional online advertisements like YouTube, Google and Meta.
Examples of in-game events include scheduled challenges or competitions for prizes. In addition, we use in-game events to introduce and market new features of our games to our current users. We advertise our brands and our digital entertainment products across a variety of online media, including traditional online advertisements like YouTube, Google and Meta.
Therefore, we are not able to comply with the DRS eligibility provisions of Rule 5210(c). 21 However, as a foreign private issuer, we are allowed under Nasdaq listing rules to follow our home country practice in lieu of the requirements set out in Rule 5210(c).
Therefore, we are not able to comply with the DRS eligibility provisions of Rule 5210(c). However, as a foreign private issuer, we are allowed under Nasdaq listing rules to follow our home country practice in lieu of the requirements set out in Rule 5210(c).
Our Shares are traded on The Nasdaq Capital Market of The Nasdaq Stock Market under the symbol GIGM. In January 2006, we acquired FunTown, a digital entertainment business operated in Taiwan and Hong Kong. 14 Our Singapore company registration number is 199905474H.
Our Shares are traded on The Nasdaq Capital Market of The Nasdaq Stock Market under the symbol GIGM. In January 2006, we acquired FunTown, a digital entertainment business operated in Taiwan and Hong Kong. Our Singapore company registration number is 199905474H.
Our major competitors in Taiwan include Soft-World, IGS, UserJoy and GodGame. In addition, we compete for users against various offline entertainment products, such as console games, arcade games and handheld games, as well as various other forms of traditional or online entertainment.
Our major competitors in Taiwan include Soft-World, IGS, UserJoy and GodGame. 18 In addition, we compete for users against various offline entertainment products, such as console games, arcade games and handheld games, as well as various other forms of traditional or online entertainment.
We also collaborate with new media channels, including micro-blogging services provided with websites and search engine services. Offline Promotions and Advertisements We advertise our brand names and our digital entertainment products across a variety of offline platforms, including television and outdoor advertisements.
We also collaborate with new media channels, including micro-blogging services provided with websites and search engine services. 17 Offline Promotions and Advertisements We advertise our brand names and our digital entertainment products across a variety of offline platforms, including television and outdoor advertisements.
The Ministry of Digital Development, the central government authorities in charge of the digital and economic industry, pursuant to the Article 27 of the Personal Data Protection Act, announced the Security and Maintenance Plan for the Protection of Personal Data Files for Digital and Economic Industry on October 12, 2023.
The Ministry of Digital Development, the central government authorities in charge of the digital and economic industry, pursuant to the Article 27 of the Personal Data Protection Act, announced the Security and Maintenance Regulations for the Protection of Personal Data Files for Digital and Economic Industry on October 12, 2023.
Cayman Islands Wholly owned subsidiary GigaMedia (HK) Limited Hong Kong Wholly owned subsidiary GigaMedia (Cayman) Limited Cayman Islands Wholly owned subsidiary Held by GigaMedia Online Entertainment Corp.
Cayman Islands Wholly owned subsidiary GigaMedia (HK) Limited (1) Hong Kong Wholly owned subsidiary GigaMedia (Cayman) Limited Cayman Islands Wholly owned subsidiary Held by GigaMedia Online Entertainment Corp.
Our Customers In Taiwan and Hong Kong, as of December 31, 2023, we had an aggregate of approximately 9.1 million unique registered customers of our digital entertainment services, most of which were located in Taiwan.
Our Customers In Taiwan and Hong Kong, as of December 31, 2024, we had an aggregate of approximately 9.1 million unique registered customers of our digital entertainment services, most of which were located in Taiwan.
The following organization chart and table set forth our business structure and selected information for each of our principal subsidiaries as of the date of this annual report: * Includes our operating subsidiaries or companies holding material investments or contracts only.
The following organization chart and table set forth our business structure and selected information for each of our principal subsidiaries as of the date of this annual report: 21 * Includes our operating subsidiaries or companies holding material investments or contracts only. All subsidiaries are 100% owned.
All subsidiaries are 100% owned. 22 Entity Place of Incorporation Relationship Held by our Company GigaMedia International Holdings Limited British Virgin Islands Wholly owned subsidiary GIGM Corporation Cayman Islands Wholly owned subsidiary Held by GigaMedia International Holdings Limited GigaMedia Online Entertainment Corp.
Entity Place of Incorporation Relationship Held by our Company GigaMedia International Holdings Limited British Virgin Islands Wholly owned subsidiary GIGM Corporation Cayman Islands Wholly owned subsidiary Held by GigaMedia International Holdings Limited GigaMedia Online Entertainment Corp.
Taiwan Wholly owned subsidiary 23 D. Property, Plant and Equipment As of April 6, 2024, we leased approximately 28,000 square feet as office premises as our corporate head office in Taipei, Taiwan and approximately 4,000 square feet as office premises for FunTown’s office in Hong Kong. ITEM 4A. UNRESOLV ED STAFF COMMENTS None.
Property, Plant and Equipment As of April 6, 2025, we leased approximately 28,000 square feet as office premises as our corporate head office in Taipei, Taiwan and approximately 4,000 square feet as office premises for FunTown’s office in Hong Kong. ITEM 4A. UNRESOLV ED STAFF COMMENTS None.
Tales Runner is a PC-based multiplayer obstacle running game in which players compete by running, jumping, dashing and using items. With its fairy-tale style and constantly changing running tracks, Tales Runner has been a popular game in Hong Kong.
In June 2006, we launched the PC-based online sports game Tales Runner . Tales Runner is a PC-based multiplayer obstacle running game in which players compete by running, jumping, dashing and using items. With its fairy-tale style and constantly changing running tracks, Tales Runner has been a popular game in Hong Kong.
During the year ended December 31, 2023, we recorded approximately 33,000 active paying users, with monthly average revenue per paying user ("ARPPU") ranging from approximately $40 to $100 for different services. 18 Competition Our primary competitors in the digital entertainment business are online game operators based in Taiwan and Hong Kong.
During the year ended December 31, 2024, we recorded approximately 19,000 active paying users, with monthly ARPPU ranging from approximately $30 to $80 for different services. Competition Our primary competitors in the digital entertainment business are online game operators based in Taiwan and Hong Kong.
We also offer various other casual card and table games through our FunTown-branded platform. These online games are Internet-based and developed through computer simulation and adaptation of non-computer games, which are traditionally played offline. The FunTown platform targets players in different regions, particularly Taiwan and Hong Kong.
These online games are Internet-based and developed through computer simulation and adaptation of non-computer games, which are traditionally played offline. The FunTown platform targets players in different regions, particularly Taiwan and Hong Kong. Our offerings include many different online card games which are popular in various regions in Asia.
FunTown is focused on the high-growth mobile and browser-based casual games market in Asia. Digital Entertainment Service Business Overview Our digital entertainment service business, FunTown, has a strong track record of developing and monetizing PC-based casual games in Asia.
Digital Entertainment Service Business Overview Our digital entertainment service business, FunTown, has a strong track record of developing and monetizing PC-based casual games in Asia.
Our revenues generated from Tales Runner were approximately US$2.7 million in 2023, decreased from US$3.4 million in 2022, but higher than US$2.4 million in 2021.
Our revenues generated from Tales Runner were approximately US$1.5 million in 2024, decreased from US$2.7 million in 2023 and US$3.4 million in 2022.
Our principal executive office is located at 8F, No. 22, Lane 407, Section 2, Tiding Boulevard, Taipei 114-740, Taiwan R.O.C., and our telephone number is 886-2-2656-8000. Our agent in the U.S. is Computershare Limited and its office address is 480 Washington Blvd., Jersey City, New Jersey.
Our principal executive office is located at 8F, No. 22, Lane 407, Section 2, Tiding Boulevard, Taipei 114-740, Taiwan R.O.C., and our telephone number is 886-2-2656-8000.
Online Game Regulations and Standard Contract Template The Ministry of Economic Affairs and the Consumer Protection Commission, pursuant to the Consumer Protection Act, announced the Regulations Mandatory and Prohibitory Provisions of Standard Contracts to Be Used for the Online Game Services, and also published a standard contract template that sets out permitted terms and limitations with respect to online game services offered in Taiwan.
If the purchase of game points (cards), virtual game currencies or virtual treasures are used as payment methods, the content and amount of payment, content or services that require additional payment, or other similar warnings shall be also provided. 19 Online Game Regulations and Standard Contract Template The Ministry of Economic Affairs and the Consumer Protection Commission, pursuant to the Consumer Protection Act, announced the Regulations Mandatory and Prohibitory Provisions of Standard Contracts to Be Used for the Online Game Services, and also published a standard contract template that sets out permitted terms and limitations with respect to online game services offered in Taiwan.
Our online games are offered free-of-charge to all players. Players may purchase virtual items that enhance their characters’ performance and game playing experience, or personalize their characters. We have launched eleven mobile role-playing online games in past years. In particular, Yume100 , which was launched at the end of September 2015, outperformed other mobile role-playing games.
Traditionally, for our PC-based online games, players download and install client software from our websites. Our online games are offered free-of-charge to all players. Players may purchase virtual items that enhance their characters’ performance and game playing experience, or personalize their characters. We have launched eleven mobile role-playing online games in past years.
Moreover, if an online game operator fails to take corrective actions within the time limit prescribed by the competent authorities, it shall be punished for each violation by an administrative fine of NT$50,000 to NT$500,000. 20 Personal Data Protection Act On April 27, 2010, the Legislative Yuan passed a bill to amend the Computer-processed Personal Data Protection Act, which was renamed as the Personal Data Protection Act.
Moreover, if an online game operator fails to take corrective actions within the time limit prescribed by the competent authorities, it shall be punished for each violation by an administrative fine of NT$50,000 to NT$500,000.
In order to support product development capabilities and develop our proprietary digital entertainment offerings, we intend to expand our browser/mobile-based development capabilities.
In order to support product development capabilities and develop our proprietary digital entertainment offerings, we intend to expand our browser/mobile-based development capabilities. We made a direct investment of approximately $0.7 million during 2024 in developing our own offerings.
An internet platform provider is required to restrict children and youths from having access to internet content upon the relevant authority’s notification that such internet content may be harmful or that such internet platform provider failed to implement “clear and practicable” protection measures. 19 Computer Software Ratings In July 2006, the Ministry of Economic Affairs announced the Computer Software Ratings pursuant to the Protection of Children and Youths Welfare and Rights Act, which took effect in January 2007.
An internet platform provider is required to restrict children and youths from having access to internet content upon the relevant authority’s notification that such internet content may be harmful or that such internet platform provider failed to implement “clear and practicable” protection measures.
We made a direct investment of more than $0.7 million during 2023 in developing our own offerings. 16 Sources of Role-playing and Sports Games Historically, we have sourced role-playing and sports games through licensing from developers in various regions where game development is well established.
Sources of Role-playing and Sports Games Historically, we have sourced role-playing and sports games through licensing from developers in various regions where game development is well established.
As part of our long-term planning, we monitor markets in the United States, South Korea, the PRC, Japan, Southeast Asia and Europe, and maintain communications with a number of leading game development studios to identify and source new online games.
As part of our long-term planning, we monitor markets in the United States, South Korea, the PRC, Japan, Southeast Asia and Europe, and maintain communications with a number of leading game development studios to identify and source new online games. 16 The cost of licensing games from developers generally consists of an upfront licensing fee, which we typically pay in several installments, and ongoing licensing fees, or royalties, which are equal to a percentage of revenues generated from operation of the game.
These regulations were amended on May 29, 2012 and renamed the Game Software Rating Management Regulations, and were last amended on May 23, 2019. Matters related to game software rating have been changed to the jurisdiction of the Ministry of Digital Development after August 27, 2022, they are originally under the jurisdiction of the Ministry of Economic Affairs.
Matters related to game software rating have been changed to the jurisdiction of the Ministry of Digital Development after August 27, 2022, they are originally under the jurisdiction of the Ministry of Economic Affairs. The definition of “game software” and the rating system have been significantly modified in the 2012 amendment.
Virtual currencies may be used to play all games on the FunTown game site or to purchase virtual items, but cannot be redeemed for cash. Our revenues generated from MahJong and other casual games were approximately US$1.1 million in 2023, decreased from US$1.3 million in 2022 and US$1.5 million in 2021.
The virtual currency may be used to play MahJong and other games on the FunTown game site or to purchase in-game virtual items, but cannot be redeemed for cash.
We responded by launching our MahJong game application which uses a web or browser-based technology with no download required. This simplified user sign-in procedures and enabled tighter integration with social networking platforms by allowing users to log into our game directly via their accounts at a given social networking platform.
This simplified user sign-in procedures and enabled tighter integration with social networking platforms by allowing users to log into our game directly via their accounts at a given social networking platform. 15 We also offer various other casual card and table games through our FunTown-branded platform.
Role-Playing and Sports Games In Taiwan and Hong Kong, we offer through our FunTown platform online games of various sub-genres besides MahJong and other card or table games. In June 2006, we launched the PC-based online sports game Tales Runner .
Our revenues generated from MahJong and other casual games were approximately US$1.1 million in each of 2024 and 2023, decreased from US$1.3 million in 2022. Role-Playing and Sports Games In Taiwan and Hong Kong, we offer through our FunTown platform online games of various sub-genres besides MahJong and other card or table games.
Yume100 is a story-based game that primarily targets female players in the age range of 15 to 35 years old. In the game, which has certain romantic elements, players assume game characters and complete challenges. As of December 31, 2023, the accumulated sales revenues of Yume100 since its launch were approximately US$12.8 million.
In particular, Yume100 , which was launched at the end of September 2015, outperformed other mobile role-playing games. Yume100 is a story-based game that primarily targets female players in the age range of 15 to 35 years old. In the game, which has certain romantic elements, players assume game characters and complete challenges.
Business Overview We are a diversified provider of digital entertainment services in Taiwan, Hong Kong and Macau. We do not utilize variable-interest entities in our operations. We currently operate in the digital entertainment services, where we own 100% of and operate FunTown, a leading digital entertainment portal in Taiwan and Hong Kong.
Information contained on our website is not incorporated herein by reference and does not constitute part of this annual report. B. Business Overview We are a diversified provider of digital entertainment services in Taiwan, Hong Kong and Macau. We do not utilize variable-interest entities in our operations.
The virtual currency may be used to play MahJong and other games on the FunTown game site or to purchase in-game virtual items, but cannot be redeemed for cash. 15 Our PC-based MahJong offering has faced strong competition in recent years from the growth of mobile and browser-based online games, driven by the popularity of social networks and high mobile device usage in our markets.
Our PC-based MahJong offering has faced strong competition in recent years from the growth of mobile and browser-based online games, driven by the popularity of social networks and high mobile device usage in our markets. We responded by launching our MahJong game application which uses a web or browser-based technology with no download required.
The SEC maintains an Internet site that contains reports and other information we filed electronically with the SEC. The address of the SEC’s website is http:// www.sec.gov. Our website address is: http://www.gigamedia.com . Information contained on our website is not incorporated herein by reference and does not constitute part of this annual report. B.
Our agent in the U.S. is Computershare Limited and its office address is 480 Washington Blvd., Jersey City, New Jersey. 14 The SEC maintains an Internet site that contains reports and other information we filed electronically with the SEC. The address of the SEC’s website is http:// www.sec.gov. Our website address is: http://www.gigamedia.com .
Our offerings include many different online card games which are popular in various regions in Asia. Players can select their desired table based on the level of skill or stakes. These games are designed with online multiplayer features that allow players to compete against one another.
Players can select their desired table based on the level of skill or stakes. These games are designed with online multiplayer features that allow players to compete against one another. We also offer chance-based games, including bingo, lotto, horse racing, Sic-Bo, slots and other simple casual games. Like online MahJong, players may play our other casual games for free.
The Personal Data Protection Act was last amended on May 31, 2023.
Personal Data Protection Act On April 27, 2010, the Legislative Yuan passed a bill to amend the Computer-processed Personal Data Protection Act, which was renamed as the Personal Data Protection Act. The Personal Data Protection Act was last amended on May 31, 2023.
Removed
We also offer chance-based games, including bingo, lotto, horse racing, Sic-Bo, slots and other simple casual games. Like online MahJong, players may play our other casual games for free. They may choose to purchase virtual currency to play on a continuous and regular basis.
Added
We currently operate in the digital entertainment services, where we own 100% of and operate FunTown, a leading digital entertainment portal in Taiwan and Hong Kong. FunTown is focused on the high-growth mobile and browser-based casual games market in Asia.
Removed
The falling back in revenues was mainly due to the lift of travel and social restrictions that had been imposed during the COVID-19 pandemic, and the resultant effect that fewer people spent as much time online than previously. Traditionally, for our PC-based online games, players download and install client software from our websites.
Added
They may choose to purchase virtual currency to play on a continuous and regular basis. Virtual currencies may be used to play all games on the FunTown game site or to purchase virtual items, but cannot be redeemed for cash.
Removed
Leveraging the operating experience of Yume100 , in mid-December 2017, we launched Akaseka , a similarly female-oriented game. Furthermore, we launched Shinobi Master New Link, a male-oriented game, in April 2019.
Added
The decrease of revenues was mainly due to a decline in gamer participation in our offerings, which we attribute to a lack of satisfactorily exciting new content, resulting to a declined monthly average revenue per paying user ("ARPPU") from approximately $100 in 2023 to $80 in 2024.
Removed
The cost of licensing games from developers generally consists of an upfront licensing fee, which we typically pay in several installments, and ongoing licensing fees, or royalties, which are equal to a percentage of revenues generated from operation of the game.
Added
As of December 31, 2024, the accumulated sales revenues of Yume100 since its launch were approximately US$13.0 million.
Removed
The definition of “game software” and the rating system have been significantly modified in the 2012 amendment.
Added
Computer Software Ratings In July 2006, the Ministry of Economic Affairs announced the Computer Software Ratings pursuant to the Protection of Children and Youths Welfare and Rights Act, which took effect in January 2007. These regulations were amended on May 29, 2012 and renamed the Game Software Rating Management Regulations, and were last amended on May 23, 2019.
Removed
If the purchase of game points (cards), virtual game currencies or virtual treasures are used as payment methods, the content and amount of payment, content or services that require additional payment, or other similar warnings shall be also provided.
Added
(2) Taiwan Wholly owned subsidiary (1) GigaMedia (HK) Limited has been deregistered and is accordingly dissolved from February 21, 2025. (2) GigaMedia Cloud Services Co., Ltd. has been dissolved from March 5, 2025. 22 D.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

50 edited+5 added−7 removed45 unchanged
The US$1,480,000 payment by Aeolus was made on September 6, 2023 Pursuant to the amendment to the Note, the remaining principal amount of US$7,000,000 due thereunder will bear interest at a rate of 4% per annum, shall be due on February 28, 2025 (such date to be extended, at Aeolus’s option, to February 28, 2026), and all or a portion of the principal amount due thereunder may be converted upon maturity, upon prepayment or upon the occurrence of certain specified events, upon Aeolus’s next round of equity financing, or upon Aeolus’s initial public offering, at the lower of US$1.25 per share or 80% of the applicable offering price.
The US$1,480,000 payment by Aeolus was made on September 6, 2023 Pursuant to the amendment to the Note, the remaining principal amount of US$7,000,000 due thereunder will bear interest at a rate of 4% per annum, shall be due on February 28, 2025 (such date to be extended, at Aeolus’s option, to February 28, 2026), and all or a portion of the principal amount due thereunder may be converted upon maturity, upon prepayment or upon the 24 occurrence of certain specified events, upon Aeolus’s next round of equity financing, or upon Aeolus’s initial public offering, at the lower of US$1.25 per share or 80% of the applicable offering price.
In 2023, our net cash used in operating activities was approximately US$1.2 million. We collected US$4.0 million in cash from our customers, paid US$1.3 million for license fees, royalties and channel costs, and paid approximately US$5.9 million to employees, suppliers and vendors. In 2022, our net cash used in operating activities was approximately US$2.5 million.
We collected US$4.0 million in cash from our customers, paid US$1.3 million for license fees, royalties and channel costs, and paid approximately US$5.9 million to employees, suppliers and vendors. In 2022, our net cash used in operating activities was approximately US$2.5 million.
Certain Significant Events Affecting Our Results of Operations for 2023, 2022 and 2021 Purchase, Partial Conversion and Partial Extension of Convertible Note of Aeolus Robotics Corporation On August 31, 2020, we entered into a convertible note purchase agreement to purchase a US$10,000,000 principal amount convertible promissory note (the “Note”) issued by Aeolus Robotics Corporation (“Aeolus”), a global company primarily engaged in designing, manufacturing, processing and sales of intellectual robotics.
Certain Significant Events Affecting Our Results of Operations for 2024, 2023 and 2022 Purchase, Partial Conversion and Partial Extension of Convertible Note of Aeolus Robotics Corporation On August 31, 2020, we entered into a convertible note purchase agreement to purchase a US$10,000,000 principal amount convertible promissory note (the “Note”) issued by Aeolus Robotics Corporation (“Aeolus”), a global company primarily engaged in designing, manufacturing, processing and sales of intellectual robotics.
These techniques rely extensively on the use of a number of assumptions, including the discount rate, credit spreads, and estimates of future cash flows. Please see note 4 to our consolidated financial statements for additional information. We have not made any material changes in the accounting methodology used to evaluate investment in securities as of December 31, 2023 and 2022.
These techniques rely extensively on the use of a number of assumptions, including the discount rate, credit spreads, and estimates of future cash flows. Please see note 4 to our consolidated financial statements for additional information. We have not made any material changes in the accounting methodology used to evaluate investment in securities as of December 31, 2024 and 2023.
In 2023, 2022 and 2021, the foreign exchange gain or loss were mainly arising from inter-company accounts between our wholly-owned entities using different functional currencies. While the balances of the inter-company accounts were fully eliminated in the consolidation, the foreign exchange gain or loss resulted remained in our consolidated statements of operations.
In 2024, 2023 and 2022, the foreign exchange gain or loss were mainly arising from inter-company accounts between our wholly-owned entities using different functional currencies. While the balances of the inter-company accounts were fully eliminated in the consolidation, the foreign exchange gain or loss resulted remained in our consolidated statements of operations.
Operating Results The following selected consolidated balance sheet data as of December 31, 2023 and 2022 and the selected consolidated statement of operations data for the years ended December 31, 2023, 2022 and 2021 have been derived from our audited consolidated financial statements included in Item 18 in this annual report.
Operating Results The following selected consolidated balance sheet data as of December 31, 2024 and 2023 and the selected consolidated statement of operations data for the years ended December 31, 2024, 2023 and 2022 have been derived from our audited consolidated financial statements included in Item 18 in this annual report.
In addition, we have contractual obligations under various license agreements to pay the licensors license fees and minimum guarantees against future royalties. There were no committed license fees and minimum guarantees against future royalties set forth in our significant license agreements as of December 31, 2023.
In addition, we have contractual obligations under various license agreements to pay the licensors license fees and minimum guarantees against future royalties. There were no committed license fees and minimum guarantees against future royalties set forth in our significant license agreements as of December 31, 2024.
While we have zero bank borrowing as of December 31, 2023 and 2022, we have established strong relationships with financial institutions and expect to be able to secure lines of credit to fulfill operating and strategic needs.
While we have zero bank borrowing as of December 31, 2024 and 2023, we have established strong relationships with financial institutions and expect to be able to secure lines of credit to fulfill operating and strategic needs.
Accordingly, we recognize revenues from the sale of virtual goods over the period of time using the output method, which is generally the estimated service period. 32 The virtual goods for our games may have different service periods.
Accordingly, we recognize revenues from the sale of virtual goods over the period of time using the output method, which is generally the estimated service period. 31 The virtual goods for our games may have different service periods.
Our capital expenditure plans for 2024, which we expect to be primarily in software and computer hardware equipment, will aim to support our lean growth initiatives in our digital entertainment service business.
Our capital expenditure plans for 2025, which we expect to be primarily in software and computer hardware equipment, will aim to support our lean growth initiatives in our digital entertainment service business.
We believe our working capital is sufficient for our 2024 needs but we may adjust the amount of our capital expenditures upward or downward based on cash flow from operations, the progress of our expansion plans, and market conditions. 31 Dividends from Our Subsidiaries Under Singapore tax regulations, foreign-sourced dividend income used for capital expenditures, including investments, and repayment of borrowings, is not deemed as remitted to Singapore and is therefore not taxable.
We believe our working capital is sufficient for our 2025 needs but we may adjust the amount of our capital expenditures upward or downward based on cash flow from operations, the progress of our expansion plans, and market conditions. 30 Dividends from Our Subsidiaries Under Singapore tax regulations, foreign-sourced dividend income used for capital expenditures, including investments, and repayment of borrowings, is not deemed as remitted to Singapore and is therefore not taxable.
Revenues are collected in accordance with contracts and through monthly payment or in advance payments with discounts, and are recognized when (or as) we satisfy the related performance obligation. 26 COSTS OF REVENUES.
Revenues are collected in accordance with contracts and through monthly payment or in advance payments with discounts, and are recognized when (or as) we satisfy the related performance obligation. 25 COSTS OF REVENUES.
We have not made any material changes in the accounting methodology used to estimate the service period of the virtual goods and the breakage amount as of December 31, 2023 and 2022.
We have not made any material changes in the accounting methodology used to estimate the service period of the virtual goods and the breakage amount as of December 31, 2024 and 2023.
We make investments in research and development to keep pace and remain competitive with technology advancements and product development relating to our digital entertainment service business. For the years 2023, 2022 and 2021, we incurred US$0.7 million, US$1.1 million and US$1.4 million, respectively, in research and development activities. D.
We make investments in research and development to keep pace and remain competitive with technology advancements and product development relating to our digital entertainment service business. For the years 2024, 2023 and 2022, we incurred US$0.7 million, US$0.7 million and US$1.1 million, respectively, in research and development activities. D.
Taxes are measured using the tax rates and laws that have been enacted or subsequently enacted as of the date of the financial statements. 27 Year to Year Comparisons Please refer to the Item 5 in our previously filed Annual Report on Form 20-F for the year ended December 31, 2022 for the comparisons of our results of operations in fiscal years 2022 and 2021.
Taxes are measured using the tax rates and laws that have been enacted or subsequently enacted as of the date of the financial statements. 26 Year to Year Comparisons Please refer to the Item 5 in our previously filed Annual Report on Form 20-F for the year ended December 31, 2023 for the comparisons of our results of operations in fiscal years 2023 and 2022.
As a result, these games are often slow in responding to a fad, a market trend or even a permanent change in customers’ preference. Accordingly, in recent years we have been implementing a strategy of optimizing our product portfolio by trimming off or terminating products or services that were below requirements, and selectively introducing licensed games.
As a result, these games are often slow in responding to a fad, a market trend or even a permanent change in customers’ preference. Accordingly, in recent years we have been implementing a strategy of optimizing our product portfolio by trimming off or terminating products or services that were below requirements.
As of December 31, 2023, 2022 and 2021, the legal reserves of Hoshin GigaMedia were approximately US$0, US$1.5 million and US$1.5 million, respectively.
As of December 31, 2024, 2023 and 2022, the legal reserves of Hoshin GigaMedia were US$0, US$0 and approximately US$1.5 million, respectively.
At the same time, we continued consolidating substantial resources for developing our own offerings, into which direct investment was US$0.7 million, US$1.1 million and US$1.4 million during 2023, 2022 and 2021, respectively.
At the same time, we continued consolidating substantial resources for developing our own offerings, into which direct investment was US$0.7 million, US$0.7 million and US$1.1 million during 2024, 2023 and 2022, respectively.
Our gross capital expenditures in continuing operations for equipment, furniture and fixtures, intangible assets and other deferred assets were US$58 thousand, US$70 thousand and US$93 thousand for 2023, 2022 and 2021, respectively. Capital expenditures during 2023 were primarily for software and computer hardware equipment for our digital entertainment business and for general corporate use.
Our gross capital expenditures in continuing operations for equipment, furniture and fixtures, intangible assets and other deferred assets were US$50 thousand, US$58 thousand and US$70 thousand for 2024, 2023 and 2022, respectively. Capital expenditures during 2024 were primarily for software and computer hardware equipment for our digital entertainment business and for general corporate use.
This amount was reduced from the amounts in 2022 and 2021 as we streamlined the workforce of our development team. With a slimmer team in place for 2024, we plan to continue our exploration of digital entertainment to further develop our own products and services.
This amount was reduced from the amount in 2022 as we streamlined the workforce of our development team. With a slimmer team in place for 2025, we plan to continue our exploration of digital entertainment to further develop our own products and services.
Income Tax Benefit For the Year Ended December 31, 2023 2022 2021 Amount in US$ thousands % Change from 2022 Amount in US$ thousands % Change from 2021 Amount in US$ thousands Loss before income taxes $ (3,399 ) 23.5 % $ (2,752 ) (19.6 )% $ (3,425 ) Income tax benefit — N/A — N/A — Net loss attributable to shareholders of GigaMedia $ (3,399 ) 23.5 % $ (2,752 ) (19.6 )% $ (3,425 ) In 2023 and 2022, no significant income tax benefits or expenses were incurred in our operations in respective tax jurisdictions, and full allowance was provided against all deferred tax assets.
Income Tax Benefit For the Year Ended December 31, 2024 2023 2022 Amount in US$ thousands % Change from 2023 Amount in US$ thousands % Change from 2022 Amount in US$ thousands Loss before income taxes $ (2,296 ) (32.5 )% $ (3,399 ) 23.5 % $ (2,752 ) Income tax benefit — N/A — N/A — Net loss attributable to shareholders of GigaMedia $ (2,296 ) (32.5 )% $ (3,399 ) 23.5 % $ (2,752 ) In 2024 and 2023, no significant income tax benefits or expenses were incurred in our operations in respective tax jurisdictions, and full allowance was provided against all deferred tax assets.
Furthermore, our gross margins are negatively impacted in the year when upfront fees or initial costs are amortized for a newly introduced licensed game. Our gross profit was US$2.4 million in 2023 as compared to US$3.3 million in 2022.
Furthermore, our gross margins are negatively impacted in the year when upfront fees or initial costs are amortized for a newly introduced licensed game. Our gross profit was US$1.5 million in 2024 as compared to US$2.4 million in 2023.
We collected US$6.5 million in cash from our customers, paid US$2.6 million for license fees, royalties and channel costs, and paid approximately US$6.3 million to employees, suppliers and vendors. In 2021, our net cash used in operating activities was approximately US$4.1 million.
In 2024, our net cash used in operating activities was approximately US$2.3 million. We collected US$3.1 million in cash from our customers, paid US$1.1 million for license fees, royalties and channel costs, and paid approximately US$6.1 million to employees, suppliers and vendors. In 2023, our net cash used in operating activities was approximately US$1.2 million.
Non-operating loss, net in 2023 primarily included (1) changes in the fair value of investments in the preferred shares of Aeolus, (2) interest income of US$1.8 million generated from bank deposits and accrued from the convertible note of Aeolus, (3) foreign exchange loss of US$34 thousand, and (4) realized foreign currency exchange gain of US$76 thousand arising from the partial repayment of the convertible note of Aeolus.
Non-operating expenses, net in 2023 primarily included (1) interest income generated from bank deposits and accrued from the convertible note of Aeolus, (2) changes in the fair value of investments in the preferred shares of Aeolus, (3) foreign exchange loss, and (4) realized foreign currency exchange gain of US$76 thousand arising from the receipt of partial principal repayment from investment in convertible note of Aeolus.
A hypothetical 10% increase in the estimated service period of the virtual goods would result in a decrease of earnings by $3 thousand, $5 thousand and $4 thousand for 2023, 2022 and 2021, respectively, while a hypothetical 10% decrease would result in an increase of earnings by approximately $6 thousand, $11 thousand and $10 thousand for 2023, 2022 and 2021, respectively.
A hypothetical 10% increase in the estimated service period of the virtual goods would result in a decrease of earnings by $7 thousand, $3 thousand and $5 thousand for 2024, 2023 and 2022, respectively, while a hypothetical 10% decrease would result in an increase of earnings by approximately $9 thousand, $6 thousand and $11 thousand for 2024, 2023 and 2022, respectively.
Please see note 4 to our consolidated financial statements for additional information. 33
Please see note 4 to our consolidated financial statements for additional information. 32
Operating Results — Certain Significant Events Affecting Our Results of Operations for 2023, 2022 and 2021” for a discussion of the most recent trends in our operating costs and revenues since the end of 2022.
Operating Results — Certain Significant Events Affecting Our Results of Operations for 2024, 2023 and 2022” for a discussion of the most recent trends in our operating costs and revenues since the end of 2023.
Our future cash requirements will depend on a number of factors including: • the rate at which we enter into strategic transactions; • the rate at which we expand our operations and employee base; • the timing of entry into new markets and new services offered; • changes in revenues and cost splits with our business partners; • the rate at which we invest in developing and licensing our products and upgrading and maintaining our network and future technologies; and • the rate at which we grow and monetize our customer bases. 30 The following table set forth the summary of our cash flows for the years indicated: For the Year Ended December, 31 (in US$ thousands) 2023 2022 2021 Net cash used in operating activities $ (1,193 ) $ (2,509 ) $ (4,135 ) Net cash provided by (used in) investing activities 837 (70 ) (17 ) Net cash used in financing activities — — — Exchange difference 32 (75 ) (89 ) Net decrease in cash, cash equivalents and restricted cash (324 ) (2,654 ) (4,241 ) Cash, cash equivalents and restricted cash at beginning of year 39,107 41,761 46,002 Cash, cash equivalents and restricted cash at end of year $ 38,783 $ 39,107 $ 41,761 OPERATING ACTIVITIES.
Our future cash requirements will depend on a number of factors including: • the rate at which we enter into strategic transactions; • the rate at which we expand our operations and employee base; • the timing of entry into new markets and new services offered; • changes in revenues and cost splits with our business partners; • the rate at which we invest in developing and licensing our products and upgrading and maintaining our network and future technologies; and • the rate at which we grow and monetize our customer bases. 29 The following table set forth the summary of our cash flows for the years indicated: For the Year Ended December, 31 (in US$ thousands) 2024 2023 2022 Net cash used in operating activities $ (2,333 ) $ (1,193 ) $ (2,509 ) Net cash provided by (used in) investing activities (1,113 ) 837 (70 ) Net cash used in financing activities — — — Exchange difference (243 ) 32 (75 ) Net decrease in cash, cash equivalents and restricted cash (3,689 ) (324 ) (2,654 ) Cash, cash equivalents and restricted cash at beginning of year 38,783 39,107 41,761 Cash, cash equivalents and restricted cash at end of year $ 35,094 $ 38,783 $ 39,107 OPERATING ACTIVITIES.
In 2023, our efforts to curb expenditure growth in the current inflationary environment resulted in the decrease in overall operating expenses, except for bad debts. Product Development and Engineering Expenses Our product development and engineering expenses amounted to US$0.7 million in 2023, which comprised mainly personnel related expenses.
In 2024, our efforts to curb expenditure growth in the current inflationary environment resulted in the decrease in overall operating expenses. Product Development and Engineering Expenses Our product development and engineering expenses amounted to US$0.7 million in each of 2024 and 2023, which comprised mainly personnel related expenses.
Our only segment and principal business is our digital entertainment service business, which operates a portfolio of digital entertainment products, primarily targeting digital entertainment service users across Asia. We operate our digital entertainment business in Taiwan, Hong Kong and Macau through FunTown.
Our only segment and principal business is our digital entertainment service business, which operates a portfolio of digital entertainment products, primarily targeting digital entertainment service users across Asia. We operate our digital entertainment business in Taiwan, Hong Kong and Macau through FunTown. Online game operators in Taiwan and Hong Kong are currently our primary competitors.
Revenues from our legacy MahJong and casino games were US$1.1 million in 2023, down from US$1.3 million in 2022. Gross Margin Our gross margin fluctuates with players paying through different channels, changes in price and product mix, cost improvement, and exchange rate, among other factors.
Revenues from our legacy MahJong and casino games were US$1.1 million in 2024, approximately the same as US$1.1 million in 2023. Gross Margin Our gross margin fluctuates with players paying through different channels, changes in price and product mix, cost improvement, and exchange rate, among other factors.
Operating expenses include product development and engineering expenses, selling and marketing expenses, general and administrative expenses, bad debt expenses and impairment losses on long-lived assets and prepaid licensing and royalty fees. NON-OPERATING INCOME (EXPENSES), NET.
Operating expenses include product development and engineering expenses, selling and marketing expenses, general and administrative expenses, provision for expected credit losses and impairment losses on long-lived assets and prepaid licensing and royalty fees. NON-OPERATING INCOME (EXPENSES), NET.
Obligations and Capital Expenditures As of December 31, 2023, we had the following contractual obligations: As of December 31,2023 Payment Due by Period (in US$ thousands) Within 1 year 1-3 years 3-5 years >5 years Total Operating leases $ 486 $ 499 $ — $ — $ 985 Royalty fees — — — — — Total contractual cash obligations $ 486 $ 499 $ — $ — $ 985 Operating leases represent obligations under lease agreements with respect to certain office premises that we rent for operation.
Obligations and Capital Expenditures As of December 31, 2024, we had the following contractual obligations: As of December 31,2024 Payment Due by Period (in US$ thousands) Within 1 year 1-3 years 3-5 years >5 years Total Operating leases $ 421 $ 84 $ — $ — $ 505 Operating leases represent obligations under lease agreements with respect to certain office premises that we rent for operation.
General and Administrative Expenses General and administrative expenses amounted to US$3.2 million in 2023, slightly decreased from US$3.5 million in 2022, primarily due to our efforts in reducing expenditures in the current inflationary environment. 29 Non-Operating Income and Expenses For the Year Ended December 31, 2023 2022 2021 Amount in US$ thousands % Change from 2022 Amount in US$ thousands % Change from 2021 Amount in US$ thousands Interest income from financial institutions $ 1,609 187.8 % $ 559 507.6 % $ 92 Interest income on securities 202 27.0 % 159 (0.6 )% 160 Gain on sales or repayment of investment - debt securities 76 N/A — (100.0 )% 125 Foreign exchange gain (loss), net (34 ) (96.4 )% (941 ) (871.3 )% 122 Changes in the fair value of investment in equity securities recognized at fair value (2,110 ) (615.9 )% 409 N/A — Other non-operating income (expenses), net 13 (84.3 )% 83 66.0 % 50 Non-operating income (expenses), net $ (244 ) (190.7 )% $ 269 (51.0 )% $ 549 Non-operating loss, net was US$0.2 million in 2023 as compared to income of US$0.3 million in 2022 and income of US$0.5 million in 2021.
General and Administrative Expenses General and administrative expenses amounted to US$3.0 million in 2024, slightly decreased from US$3.2 million in 2023, primarily due to our efforts in reducing expenditures in the current inflationary environment. 28 Non-Operating Income and Expenses For the Year Ended December 31, 2024 2023 2022 Amount in US$ thousands % Change from 2023 Amount in US$ thousands % Change from 2022 Amount in US$ thousands Interest income from financial institutions $ 1,667 3.6 % $ 1,609 187.8 % $ 559 Interest income on securities 296 46.5 % 202 27.0 % 159 Gain on disposal or receipt of principal repayment from investment in securities — (100.0 )% 76 N/A — Foreign exchange loss, net (426 ) 1152.9 % (34 ) (96.4 )% (941 ) Changes in the fair value of investment in equity securities recognized at fair value (161 ) (92.4 )% (2,110 ) (615.9 )% 409 Other non-operating income, net 29 123.1 % 13 (84.3 )% 83 Non-operating income (expenses), net $ 1,405 675.8 % $ (244 ) (190.7 )% $ 269 Non-operating income, net was US$1.4 million in 2024 as compared to non-operating expenses of US$0.2 million in 2023 and income of US$0.3 million in 2022.
B. Liquidity and Capital Resources Our principal source of liquidity in the year ended December 31, 2023, was our cash on hand. Our cash and cash equivalents are held primarily in U.S. dollars and NT dollars.
B. Liquidity and Capital Resources Our principal source of liquidity in the year ended December 31, 2024, was our cash on deposit at a financial institution. Our cash and cash equivalents are held primarily in U.S. dollars and NT dollars.
We believe that our existing cash, cash equivalents and restricted cash, and our ability to obtain short-term borrowings will be sufficient to meet our capital expenditure, debt, and operating cash obligations through 2024. We believe our working capital is sufficient for our present requirements.
Our net cash flow in financing activities in 2024, 2023 and 2022 was nil. We believe that our existing cash, cash equivalents and restricted cash, and our ability to obtain short-term borrowings will be sufficient to meet our capital expenditure, debt, and operating cash obligations through 2025. We believe our working capital is sufficient for our present requirements.
Operating Revenues and Gross Margin For the Year Ended December 31, 2023 2022 2021 Amount in US$ thousands % Change from 2022 Amount in US$ thousands % Change from 2021 Amount in US$ thousands Operating revenues $ 4,292 (23.2 )% $ 5,585 1.7 % $ 5,492 Cost of revenues (1,846 ) (20.9 )% (2,335 ) (9.6 )% (2,584 ) Gross profit $ 2,446 (24.7 )% $ 3,250 11.8 % $ 2,908 Gross margin 57.0 % 58.2 % 52.9 % Operating Revenues Our operating revenue in 2023 decreased by 23.2% from 2022.
Operating Revenues and Gross Margin For the Year Ended December 31, 2024 2023 2022 Amount in US$ thousands % Change from 2023 Amount in US$ thousands % Change from 2022 Amount in US$ thousands Operating revenues $ 2,969 (30.8 )% $ 4,292 (23.2 )% $ 5,585 Cost of revenues (1,494 ) (19.1 )% (1,846 ) (20.9 )% (2,335 ) Gross profit $ 1,475 (39.7 )% $ 2,446 (24.7 )% $ 3,250 Gross margin 49.7 % 57.0 % 58.2 % Operating Revenues Our operating revenue in 2024 decreased by 30.8% from 2023.
Non-operating income, net in 2022 primarily included (1) interest income of US$718 thousand generated from bank deposits and accrued from the convertible note of Aeolus, (2) gain of US$409 thousand on changes in the fair value of the preferred shares of Aeolus, and (3) foreign exchange loss of US$941 thousand.
Non-operating income, net in 2024 primarily included (1) changes in the fair value of investments in the preferred shares of Aeolus, (2) interest income generated from bank deposits and accrued from the convertible note of Aeolus, and (3) foreign exchange loss.
Selling and Marketing Expenses Selling and marketing expenses were US$1.6 million in 2023, largely comparable to that in 2022. While prices and wage rates increased, we scaled back to control the expenditures.
Selling and Marketing Expenses Selling and marketing expenses were US$1.5 million in 2024, reduced from US$1.6 million in 2023. While prices and wage rates increased, we scaled back to control the expenditures.
For the Year Ended December 31, 2023 2022 2021 Amount in US$ thousands % of total revenues Amount in US$ thousands % of total revenues Amount in US$ thousands % of total revenues OPERATING REVENUES Digital entertainment service revenues $ 4,292 100.0 $ 5,585 100.0 $ 5,492 100.0 COSTS OF REVENUES Cost of digital entertainment service revenues (1,846 ) (43.0 ) (2,335 ) (41.8 ) (2,584 ) (47.1 ) Gross profit 2,446 57.0 3,250 58.2 2,908 52.9 OPERATING EXPENSES Product development and engineering expenses (729 ) (17.0 ) (1,110 ) (19.9 ) (1,449 ) (26.4 ) Selling and marketing expenses (1,623 ) (37.8 ) (1,644 ) (29.4 ) (1,729 ) (31.5 ) General and administrative expenses (3,242 ) (75.5 ) (3,515 ) (63.0 ) (3,697 ) (67.3 ) Other (7 ) (0.2 ) (2 ) 0.0 (7 ) 0.0 Total operating expenses (5,601 ) (130.5 ) (6,271 ) (112.3 ) (6,882 ) (125.3 ) Loss from operations (3,155 ) (73.5 ) (3,021 ) (54.1 ) (3,974 ) (72.4 ) NON-OPERATING INCOME (EXPENSES), NET (244 ) (5.7 ) 269 4.8 549 10.0 LOSS BEFORE INCOME TAXES (3,399 ) (79.2 ) (2,752 ) (49.3 ) (3,425 ) (62.4 ) INCOME TAX BENEFIT — 0.0 — 0.0 — 0.0 NET LOSS ATTRIBUTABLE TO SHAREHOLDERS OF GIGAMEDIA $ (3,399 ) (79.2 ) $ (2,752 ) (49.3 ) $ (3,425 ) (62.4 ) The key items included in our consolidated statements of operations are: OPERATING REVENUES.
For the Year Ended December 31, 2024 2023 2022 Amount in US$ thousands % of total revenues Amount in US$ thousands % of total revenues Amount in US$ thousands % of total revenues OPERATING REVENUES Digital entertainment service revenues $ 2,969 100.0 $ 4,292 100.0 $ 5,585 100.0 COSTS OF REVENUES Cost of digital entertainment service revenues (1,494 ) (50.3 ) (1,846 ) (43.0 ) (2,335 ) (41.8 ) Gross profit 1,475 49.7 2,446 57.0 3,250 58.2 OPERATING EXPENSES Product development and engineering expenses (694 ) (23.4 ) (729 ) (19.9 ) (1,110 ) (19.9 ) Selling and marketing expenses (1,451 ) (48.9 ) (1,623 ) (29.4 ) (1,644 ) (29.4 ) General and administrative expenses (3,030 ) (102.1 ) (3,242 ) (63.0 ) (3,515 ) (62.9 ) Other (1 ) 0.0 (7 ) 0.0 (2 ) 0.0 Total operating expenses (5,176 ) (174.3 ) (5,601 ) (130.5 ) (6,271 ) (112.3 ) Loss from operations (3,701 ) (124.6 ) (3,155 ) (73.5 ) (3,021 ) (54.1 ) NON-OPERATING INCOME (EXPENSES), NET 1,405 47.3 (244 ) (5.7 ) 269 4.8 LOSS BEFORE INCOME TAXES (2,296 ) (77.3 ) (3,399 ) (79.2 ) (2,752 ) (49.3 ) INCOME TAX BENEFIT — 0.0 — 0.0 — 0.0 NET LOSS ATTRIBUTABLE TO SHAREHOLDERS OF GIGAMEDIA $ (2,296 ) (77.3 ) $ (3,399 ) (79.2 ) $ (2,752 ) (49.3 ) The key items included in our consolidated statements of operations are: OPERATING REVENUES.
Revenues from mobile games declined to US$0.4 million in 2023 from US$0.8 million in 2022, while revenues from a certain licensed sports game decreased by US$0.7 million, or 20.6%, to US$2.7 million in 2023 from US$3.4 million in 2022.
Revenues from mobile games declined to US$0.3 million in 2024 from US$0.4 million in 2023, while revenues from a certain licensed sports game decreased by US$1.2 million, or 42.9%, to US$1.5 million in 2024 from US$2.7 million in 2023.
We are now leveraging that expertise to transition our game portfolio from social casino games designed for PC usage to other genres of digital entertainment for casual leisure and mobile play. Please see Item 3, “Key Information — D. Risk Factors” and Item 5, “Operating and Financial Review and Prospects — A.
We are now leveraging that expertise to transition our game portfolio from social casino games designed for PC usage to other genres of digital entertainment for casual leisure and mobile play.
Effective December 30, 2021, we received 735,835 shares of the Series B preferred shares issued by Aeolus by converting 20% of the US$10,000,000 principal amount of the Note.
Effective December 30, 2021, we received 735,835 shares of the Series B preferred shares issued by Aeolus by converting 20% of the US$10,000,000 principal amount of the Note. The conversion was exercised in accordance with the right under the Note at the conversion price of US$2.718 per share.
We collected US$5.4 million in cash from our customers, paid US$1.9 million for license fees, royalties and channel costs, and paid approximately US$7.8 million to employees, suppliers and vendors. INVESTING ACTIVITIES. Our net cash provided by investing activities in 2023 was US$837 thousand, which was primarily from partial repayment of the convertible note of Aeolus.
We collected US$6.5 million in cash from our customers, paid US$2.6 million for license fees, royalties and channel costs, and paid approximately US$6.3 million to employees, suppliers and vendors. INVESTING ACTIVITIES. Our net cash used in investing activities in 2024 was US$1.1 million, while net cash provided by investing activities in 2023 was US$837 thousand.
Gross profit margin was 57.0 % in 2023, generally consistent with gross profit margin of 58.2% in 2022. 28 Operating Expenses For the Year Ended December 31, 2023 2022 2021 Amount in US$ thousands % Change from 2022 Amount in US$ thousands % Change from 2021 Amount in US$ thousands Product development and engineering expenses $ (729 ) (34.3 )% $ (1,110 ) (23.4 )% $ (1,449 ) Selling and marketing expenses (1,623 ) (1.3 )% (1,644 ) (4.9 )% (1,729 ) General and administrative expenses (3,242 ) (7.8 )% (3,515 ) (4.9 )% (3,697 ) Bad debt expense (7 ) 250.0 % (2 ) (71.4 )% (7 ) Total operating expenses $ (5,601 ) (10.7 )% $ (6,271 ) (8.9 )% $ (6,882 ) Percentage of operating revenues (130.5 )% (112.3 )% (125.3 )% Loss from operations $ (3,155 ) 4.4 % $ (3,021 ) (24.0 )% $ (3,974 ) Operating margin (73.5 )% (54.1 )% (72.4 )% Operating expenses decreased by US$0.7 million, or 10.7%, to US$5.6 million in 2023.
Gross profit margin was 49.7 % in 2024, decreased from gross profit margin of 57.0% in 2023, mainly due to decrease in revenues with certain comparatively fixed operating costs. 27 Operating Expenses For the Year Ended December 31, 2024 2023 2022 Amount in US$ thousands % Change from 2023 Amount in US$ thousands % Change from 2022 Amount in US$ thousands Product development and engineering expenses $ (694 ) (4.8 )% $ (729 ) (34.3 )% $ (1,110 ) Selling and marketing expenses (1,451 ) (10.6 )% (1,623 ) (1.3 )% (1,644 ) General and administrative expenses (3,030 ) (6.5 )% (3,242 ) (7.8 )% (3,515 ) Provision for expected credit losses (1 ) (85.7 )% (7 ) 250.0 % (2 ) Total operating expenses $ (5,176 ) (7.6 )% $ (5,601 ) (10.7 )% $ (6,271 ) Percentage of operating revenues (174.3 )% (130.5 )% (112.3 )% Loss from operations $ (3,701 ) 17.3 % $ (3,155 ) 4.4 % $ (3,021 ) Operating margin (124.7 )% (73.5 )% (54.1 )% Operating expenses decreased by US$0.4 million, or 7.6%, to US$5.2 million in 2024.
For the Years Ended December 31, (in thousands US$, except for per share data) 2023 2022 2021 2020 2019 CONSOLIDATED STATEMENTS OF OPERATIONS DATA: OPERATING REVENUES Digital entertainment service revenues $ 4,292 $ 5,585 $ 5,492 $ 6,875 $ 6,645 COSTS OF REVENUES Cost of digital entertainment service revenues (1,846 ) (2,335 ) (2,584 ) (2,956 ) (3,064 ) GROSS PROFIT 2,446 3,250 2,908 3,919 3,581 OPERATING EXPENSES Product development and engineering expenses (729 ) (1,110 ) (1,449 ) (1,327 ) (1,186 ) Selling and marketing expenses (1,623 ) (1,644 ) (1,729 ) (1,618 ) (1,995 ) General and administrative expenses (3,242 ) (3,515 ) (3,697 ) (3,121 ) (3,182 ) Impairment loss on property, plant, and equipment — — — — (109 ) Impairment loss on intangible assets — — — — (15 ) Impairment loss on prepaid licensing and royalty fees — — — — (85 ) Other (7 ) (2 ) (7 ) (5 ) (24 ) Total operating expense (5,601 ) (6,271 ) (6,882 ) (6,071 ) (6,596 ) Loss from operations (3,155 ) (3,021 ) (3,974 ) (2,152 ) (3,015 ) Income tax benefit — — — — — Net income (loss) attributable to shareholders of GigaMedia $ (3,399 ) $ (2,752 ) $ (3,425 ) $ (1,293 ) $ (1,659 ) Earnings (loss) per share (in dollars): Basic and diluted $ (0.31 ) $ (0.25 ) $ (0.31 ) $ (0.12 ) $ (0.15 ) There were no dividends declared in 2023, 2022, 2021, 2020 and 2019. 24 As of December 31, (in thousands US$, except for number of issued shares) 2023 2022 2021 2020 2019 CONSOLIDATED BALANCE SHEET DATA: Total current assets $ 39,207 $ 47,826 $ 42,582 $ 46,525 $ 58,893 Investment in securities - noncurrent 5,777 2,371 10,322 10,000 — Property, plant and equipment-net 111 103 88 22 — Intangible assets-net 13 19 12 4 — Total assets 46,497 52,136 55,518 57,023 59,222 Total current liabilities 2,464 2,637 3,216 2,923 3,584 Total GigaMedia’s shareholders’ equity 43,538 48,606 50,852 54,097 55,544 Ordinary shares, no par value, and additional paid-in capital 308,752 308,752 308,752 308,752 308,751 Number of issued shares (in thousands) 11,052 11,052 11,052 11,052 11,052 Overview We are a diversified provider of digital entertainment services.
For the Years Ended December 31, (in thousands US$, except for per share data) 2024 2023 2022 CONSOLIDATED STATEMENTS OF OPERATIONS DATA: OPERATING REVENUES Digital entertainment service revenues $ 2,969 $ 4,292 $ 5,585 COSTS OF REVENUES Cost of digital entertainment service revenues (1,494 ) (1,846 ) (2,335 ) GROSS PROFIT 1,475 2,446 3,250 OPERATING EXPENSES Product development and engineering expenses (694 ) (729 ) (1,110 ) Selling and marketing expenses (1,451 ) (1,623 ) (1,644 ) General and administrative expenses (3,030 ) (3,242 ) (3,515 ) Impairment loss on property, plant, and equipment — — — Impairment loss on intangible assets — — — Impairment loss on prepaid licensing and royalty fees — — — Other (1 ) (7 ) (2 ) Total operating expense (5,176 ) (5,601 ) (6,271 ) Loss from operations (3,701 ) (3,155 ) (3,021 ) Income tax benefit — — — Net loss attributable to shareholders of GigaMedia $ (2,296 ) $ (3,399 ) $ (2,752 ) Loss per share (in dollars): Basic and diluted $ (0.21 ) $ (0.31 ) $ (0.25 ) There were no dividends declared in 2024, 2023, and 2022. 23 As of December 31, (in thousands US$, except for number of issued shares) 2024 2023 CONSOLIDATED BALANCE SHEET DATA: Total current assets $ 35,433 $ 39,207 Investment in securities - noncurrent 5,441 5,777 Property, plant and equipment-net 101 111 Intangible assets-net 7 13 Total assets 42,358 46,497 Total current liabilities 1,931 2,464 Total GigaMedia’s shareholders’ equity 40,343 43,538 Ordinary shares, no par value, and additional paid-in capital 308,752 308,752 Number of issued shares (in thousands) 11,052 11,052 Overview We are a diversified provider of digital entertainment services.
On August 15, 2023, we entered into an agreement to purchase a convertible promissory note, with principal amount of US$105,346, issued by Aeolus, and on March 15, 2024, we entered into an agreement to purchase a convertible promissory note, with principal amount of US$63,208, issued by Aeolus.
GigaMedia and Aeolus entered into three agreements to purchase convertible promissory notes on August 15, 2023, March 15, 2024 and September 24, 2024, with principal amount of US$105,346, US$63,208 and US$1,000,000, respectively.
The conversion was exercised in accordance with the right under the Note at the conversion price of US$2.718 per share. 25 On July 29, 2022, Aeolus notified GigaMedia that it had decided to exercise its right of extension under the Note to extend the original August 30, 2022 maturity date to August 30, 2023.
On July 29, 2022, Aeolus notified GigaMedia that it had decided to exercise its right of extension under the Note to extend the original August 30, 2022 maturity date to August 30, 2023. On August 31, 2023, we and Aeolus entered into an agreement to amend the Note.
Our net cash used in investing activities in 2022 and 2021 was US$70 thousand and US$17 thousand, respectively, primarily used for the purchase of property, plant and equipment. FINANCING ACTIVITIES. Our net cash flow in financing activities in 2023, 2022 and 2021 was nil.
These primarily reflected the purchase and the receipt of partial principal repayment from investment in convertible note of Aeolus. See Item 10, “Additional Information — C. Material Contracts” in this annual report for additional information. Our net cash used in investing activities in 2022 was US$70 thousand, primarily used for the purchase of property, plant and equipment. FINANCING ACTIVITIES.
These notes bear interest at a rate of 4.5% per annum and are convertible at US$0.1 per share, while other terms and conditions are similar to the original Note. Results of Operations Factors Affecting Our Performance We believe that competition is the principal factor affecting our results of operations. Our digital entertainment service business operates in an extremely competitive industry.
These notes bear interest at a rate of 4.5% per annum and are convertible at US$0.02 per share, while other terms and conditions are similar to the original Note. The purchase and sale of the convertible promissory notes exhibits GigaMedia and Aeolus’s mutual commitment to a longer-term strategic relationship.
Removed
The selected consolidated balance sheet data as of December 31, 2021, 2020 and 2019, and the selected consolidated statement of operations data for the years ended December 31, 2020 and 2019 have been derived from our audited consolidated financial statements for the years ended December 31, 2020 and 2019, which are not included in this annual report.
Added
On January 21, 2025, Aeolus notified GigaMedia that it had decided to exercise its right of extension under the amendment to the Note to extend the original February 28, 2025 maturity date to February 28, 2026.
Removed
In 2023, we had total operating revenues of approximately US$4.3 million, which represents a decrease of approximately US$1.3 million year-over-year. Our total costs and expenses also decreased by approximately US$1.2 million year-over-year to US$7.4 million, largely in line with the decrease of the revenues, and primarily due to our efforts in curbing growth of expenditures in the current inflationary environment.
Added
These notes bear interest at a rate of 4.5% per annum and are convertible at US$0.1 per share, while other terms and conditions are similar to the original Note. On January 20, 2025 and March 5, 2025, we entered into two agreements to purchase two convertible promissory notes, with principal amounts of US$52,674 and US$2,600,000, respectively, issued by Aeolus.
Removed
We incurred an operating loss of approximately US$3.2 million, which represents a slight increase of loss of approximately US$0.1 million year-over-year.
Added
GigaMedia continually reviews its investment alternatives and may enter into additional transactions of Aeolus’s securities in accordance with applicable laws. Results of Operations Factors Affecting Our Performance We believe that competition is the principal factor affecting our results of operations. Our digital entertainment service business operates in an extremely competitive industry.
Removed
We recognized a non-operating loss of approximately US$0.2 million, compared to income of approximately US$0.3 million in the prior year, primarily because of the loss on changes in the fair value of a financial instrument, partly offset by increase in interest income and less loss on foreign exchange.
Added
Our monthly ARPPU for different services generally decreased from a range of approximately $40 to $100 in 2023 to a range of approximately $30 to $80 in 2024. The decrease was mainly due to a decline in gamer participation in our offerings, which we attribute to a lack of satisfactorily exciting new content.
Removed
We did not recognize any significant income tax benefits or expenses in 2023 or 2022. We recognized a net loss of approximately US$3.4 million, which represents an increase of loss of US$0.6 million year-over-year, primarily resulting from the aforementioned factors. Online game operators in Taiwan and Hong Kong are currently our primary competitors.
Added
However, during 2024, we experienced a decline in gamer participation in our offerings, which we attribute to a lack of satisfactorily exciting new content, resulting to a declined monthly ARPPU from approximately $100 in 2023 to $80 in 2024. Please see Item 3, “Key Information — D. Risk Factors” and Item 5, “Operating and Financial Review and Prospects — A.
Removed
On August 31, 2023, we and Aeolus entered into an agreement to amend the Note.
Removed
While our monthly ARPPU remained constant in 2022 and 2023 in each year ranging from approximately $40 to $100 for different services, the decrease was mainly due to the lift of travel and social restrictions that had been imposed during the COVID-19 pandemic, and the resultant effect that fewer people spent as much time online than previously.

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

24 edited+4 added−1 removed21 unchanged
The principal duties and responsibilities of our audit committee include: (1) overseeing and reporting on various auditing and accounting matters to our board of directors, including the selection of our independent accountants, the scope of our annual audits, fees to be paid to the independent accountants, the performance of our independent accountants and our accounting practices; (2) overseeing and reporting on various risk management matters (including in respect of cybersecurity) to our board of directors; (3) considering and approving or disapproving all related-party transactions; (4) reviewing the financial statements and reports and discussing the statements and reports with our independent registered public accounting firm and management; (5) reviewing and pre-approving the engagement of our independent registered public accounting firm to perform audit services and any permissible non-audit services; (6) evaluating the performance of our independent registered public accounting firm and deciding whether to retain their services; and (7) establishing procedures for the receipt, retention and treatment of complaints received by us regarding financial controls, accounting or auditing matters.
The principal duties and responsibilities of our audit committee include: (1) overseeing and reporting on various auditing and accounting matters to our board of directors, including the selection of our independent accountants, the scope of our annual audits, fees to be paid to the independent accountants, the performance of our independent accountants and our accounting practices; (2) overseeing and reporting on various risk management matters (including in respect of cybersecurity) to our board of directors; (3) considering and approving or disapproving all related-party transactions; (4) reviewing the financial statements and reports and discussing the statements and reports with our independent registered public accounting firm and management; (5) reviewing and pre-approving the engagement of our independent registered public accounting firm to perform audit services and any permissible assurance and non-assurance services; (6) evaluating the performance of our independent registered public accounting firm and deciding whether to retain their services; and (7) establishing procedures for the receipt, retention and treatment of complaints received by us regarding financial controls, accounting or auditing matters.
In accordance with Nasdaq Rule 5605(e), director nominees are recommended for the board's selection by the independent directors constituting a majority of the board's independent directors in a vote in which only independent directors participate. D.
In accordance with Nasdaq Rule 5605(e), director nominees are recommended for the board's selection by the independent directors constituting a majority of the board's independent directors in a vote in which only independent directors participate. 35 D.
In accordance with our Constitution and our audit committee charter, all of the members of our audit committee must be persons who qualify as independent directors under the standards set forth in Nasdaq Rules 5605(c)(2)(A)(i) and (ii) and each of them is able to read and understand fundamental financial statements. During fiscal 2023, our audit committee met five times.
In accordance with our Constitution and our audit committee charter, all of the members of our audit committee must be persons who qualify as independent directors under the standards set forth in Nasdaq Rules 5605(c)(2)(A)(i) and (ii) and each of them is able to read and understand fundamental financial statements. During fiscal 2024, our audit committee met five times.
Huang has more than 30 years of experience in hospitality management and investment. He is the consultant of Global Hospitality Group Inc. Mr. Huang holds a Bachelor of Arts degree from Soochow University and a degree of EMBA Program at National Taiwan University in Taiwan. NICK CHIA-EN LIU is an independent non-executive director of our Company.
Huang has more than 30 years of experience in hospitality management and investment. He serves as the consultant of Global Hospitality Group Inc. Mr. Huang holds a Bachelor of Arts degree from Soochow University and a degree of EMBA Program at National Taiwan University in Taiwan. NICK CHIA-EN LIU is an independent non-executive director of our Company.
Her areas of expertise are in IFRS accounting and internal controls structure for global companies, as well as full experience of assisting companies in becoming public companies in R.O.C. and serving as a consultant for companies pursuing initial public offerings, or IPOs. She 34 had served many well-known listed companies and been involved with many diverse industries.
Her areas of expertise are in IFRS accounting and internal controls 33 structure for global companies, as well as full experience of assisting companies in becoming public companies in R.O.C. and serving as a consultant for companies pursuing initial public offerings, or IPOs. She had served many well-known listed companies and been involved with many diverse industries.
In accordance with our compensation committee charter, all of the members of the compensation committee are qualified independent directors under the standards set forth in Nasdaq Rules 5605(c)(2)(A)(i) and (ii). During fiscal 2023, our compensation committee met two times. We do not have a separate nominations committee of the board of directors.
In accordance with our compensation committee charter, all of the members of the compensation committee are qualified independent directors under the standards set forth in Nasdaq Rules 5605(c)(2)(A)(i) and (ii). During fiscal 2024, our compensation committee met two times. We do not have a separate nominations committee of the board of directors.
Share Ownership Share Ownership of Directors and Executive Officers The table below sets forth information as to our directors’ and executive officers’ share ownership in our Company as of March 31, 2024: Person Number of Common Shares Number of Shares Issuable upon exercise of options HUANG, James Cheng-Ming 1,073,566 * HUANG, John Ping Chang — * LIU, Nick Chia-En — * LIN, Charlotte Wan-Wan. — * TSAI, John Chih-Hong — * HONG, Chin Fock — * Directors and executive officers as a group of 6 individuals 1,073,566 4,000 * Less than 1% F.
Share Ownership Share Ownership of Directors and Executive Officers The table below sets forth information as to our directors’ and executive officers’ share ownership in our Company as of March 31, 2025: Person Number of Common Shares Number of Shares Issuable upon exercise of options HUANG, James Cheng-Ming 1,073,566 4,000 HUANG, John Ping Chang — — LIU, Nick Chia-En — — LIN, Charlotte Wan-Wan. — — TSAI, John Chih-Hong — — HONG, Chin Fock — — Directors and executive officers as a group of 6 individuals 1,073,566 4,000 F.
Each of these standing committees operates under a written charter adopted by our board of directors. During fiscal 2023, our directors attended all meetings held by each committee on which such director was a member. 36 Our audit committee currently consists of Wan-Wan LIN, Nick Chia-En LIU and Chih-Hong TSAI.
Each of these standing committees operates under a written charter adopted by our board of directors. During fiscal 2024, our directors attended all meetings held by each committee on which such director was a member. Our audit committee currently consists of Wan-Wan LIN, Nick Chia-En LIU and Chih-Hong TSAI.
The following table summarizes, as of March 31, 2024, the outstanding options granted under our employee share option plans and equity incentive plans to our directors and executive officers as a group.
The following table summarizes, as of March 31, 2025, the outstanding options granted under our employee share option plans and equity incentive plans to our directors and executive officers as a group.
B. Compensation Compensation of Directors and Executive Officers For the year ended December 31, 2023, the aggregate cash compensation paid by us to our directors and executive officers was approximately US$0.5 million. For information regarding pension and retirement benefits, see note 12 to our consolidated financial statements.
Compensation Compensation of Directors and Executive Officers For the year ended December 31, 2024, the aggregate cash compensation paid by us to our directors and executive officers was approximately US$0.5 million. For information regarding pension and retirement benefits, see note 12 to our consolidated financial statements.
During fiscal 2023, our board of directors met five times, and all members of the board of directors participated in the meetings of the board of directors. No director is entitled to any severance benefits on termination of his or her service. Our board of directors currently has a standing audit committee and compensation committee.
During fiscal 2024, our board of directors met three times, and all members of the board of directors participated in the meetings of the board of directors. No director is entitled to any severance benefits on termination of his or her service. Our board of directors currently has a standing audit committee and compensation committee.
Directors and Senior Management The following table sets forth information with respect to our directors and executive officers as of the date of this annual report: Name Age Position Year Appointed to Current Position HUANG, James Cheng-Ming 69 Chairman of the Board, Chief Executive Officer, Chief Financial Officer and Director 2017 (1) HUANG, John Ping Chang 72 Chairman of the Compensation Committee of the Board and Independent Non-Executive Director 2012/2011 (2) LIU, Nick Chia-En 62 Independent Non-Executive Director 2011 (3) HONG, Chin Fock (Damian) 76 Independent Non-Executive Director 2013 (4) LIN, Wan-Wan 61 Chairman of the Audit Committee of the Board and Independent Non-Executive Director 2023 (5) TSAI, Chih-Hong 69 Independent Non-Executive Director 2023 (6) (1) Mr.
Directors and Senior Management The following table sets forth information with respect to our directors and executive officers as of the date of this annual report: Name Age Position Year Appointed to Current Position HUANG, James Cheng-Ming 70 Chairman of the Board, Chief Executive Officer, Chief Financial Officer and Director 2017 (1) HUANG, John Ping Chang 73 Chairman of the Compensation Committee of the Board and Independent Non-Executive Director 2012/2011 (2) LIU, Nick Chia-En 63 Independent Non-Executive Director 2011 (3) HONG, Chin Fock (Damian) 77 Independent Non-Executive Director 2013 (4) LIN, Wan-Wan 62 Chairman of the Audit Committee of the Board and Independent Non-Executive Director 2023 (5) TSAI, Chih-Hong 70 Independent Non-Executive Director 2023 (6) (1) Mr.
As of December 31, 2023, the total outstanding number of share options granted to our directors and officers was 8,000. As of December 31 2023, the total number of restricted stock units granted to our directors and officers was zero.
As of December 31, 2024, the total outstanding number of share options granted to our directors and officers was 4,000. As of December 31 2024, the total number of restricted stock units granted to our directors and officers was zero.
Employees The following table sets out a breakdown of the number of our full-time employees by function as of December 31, 2023, 2022 and 2021, respectively: December 31 Function 2023 2022 2021 Development 27 27 41 Operation 33 37 41 Customer Service 13 13 16 Administrative Support 23 24 25 96 101 123 The following table sets out, as of the dates indicated, a breakdown of the number of our full-time employees by geographic location: December 31 Location 2023 2022 2021 Taipei City, Taiwan 83 87 108 Hong Kong 13 14 15 96 101 123 37 E.
Employees The following table sets out a breakdown of the number of our full-time employees by function as of December 31, 2024, 2023 and 2022, respectively: December 31 Function 2024 2023 2022 Development 23 27 27 Operation 30 33 37 Customer Service 13 13 13 Administrative Support 21 23 24 87 96 101 The following table sets out, as of the dates indicated, a breakdown of the number of our full-time employees by geographic location: December 31 Location 2024 2023 2022 Taipei City, Taiwan 74 83 87 Hong Kong 13 13 14 87 96 101 E.
He is a non-executive director of Prima Limited. Mr. Hong lectured on a part-time basis at the Singapore Management University. He earned a Bachelor’s degree in Social Science at the University of Singapore and attended an international tax program at Harvard Law School. WAN-WAN LIN is a Certified Public Accountant both in the U.S.A. and in R.O.C.
He is a non-executive director of Prima Limited. Mr. Hong lectured on a part-time basis at the Singapore Management University. He earned a Bachelor’s degree in Social Science at the University of Singapore and attended an international tax program at Harvard Law School. WAN-WAN LIN is an independent non-executive director of our Company. Ms.
He also serves as a director of SinoPac Leasing Corp. Mr. Tsai had served as the senior executive in a number of well-known leasing companies. He specializes in risk control management and has tremendous management experiences.
Tsai is currently an adjunct professor at the Department of Finance, School of Management, National Taiwan University. He also serves as a director of SinoPac Leasing Corp. Mr. Tsai had served as the senior executive in a number of well-known leasing companies. He specializes in risk control management and has tremendous management experiences.
She served as the CEO at the accounting firm KPMG in Taiwan, and has been teaching in the Accounting Departments of several public and private universities such as National Taiwan University, National Chengchi University, Tunghai University and Tamkang University.
Lin is a Certified Public Accountant both in the U.S.A. and in R.O.C. She served as the CEO at the accounting firm KPMG in Taiwan, and has been teaching in the Accounting Departments of several public and private universities such as National Taiwan University, National Chengchi University, Tunghai University and Tamkang University. Ms.
She holds a degree of EMBA Program at National Taiwan University, a Master degree in Accounting from University of Illinois at Urbana Champaign, and a Bachelor degree in Accounting from National Taiwan University. CHIH-HONG TSAI is currently an adjunct professor at the Department of Finance, School of Management, National Taiwan University.
She holds a degree of EMBA Program at National Taiwan University, a Master degree in Accounting from University of Illinois at Urbana Champaign, and a Bachelor degree in Accounting from National Taiwan University. CHIH-HONG TSAI is an independent non-executive director of our Company. Mr.
Options will be forfeited upon termination of employment, unless the relevant award agreement extends the exercisability of the outstanding options. 2006 Equity Incentive Plan At the June 2006 Annual General Meeting, our shareholders approved the GigaMedia Limited 2006 Equity Incentive Plan (the “2006 Plan”) under which up to 1,000,000 ordinary shares (200,000 shares after the 2015 reverse share split) of our Company were reserved for issuance.
The Company is no longer issuing securities pursuant to, and no awards remain outstanding under this plan. 2006 Equity Incentive Plan At the June 2006 Annual General Meeting, our shareholders approved the GigaMedia Limited 2006 Equity Incentive Plan (the “2006 Plan”) under which up to 1,000,000 ordinary shares (200,000 shares after the 2015 reverse share split) of our Company were reserved for issuance.
Date of Grant Ordinary Shares Underlying Outstanding Options Exercise Price ($/Share) Date of Expiration May 5, 2017 4,000 2.90 May 5, 2027 Total 4,000 All options granted to our directors and executive officers were granted pursuant to the option plans and the equity incentive plans as described under “— Employee Share Option Plans and Equity Incentive Plans” below. 35 Employee Share Option Plans and Equity Incentive Plans 2004 Employee Share Option Plan At the June 2004 Annual General Meeting, our shareholders approved the GigaMedia Limited 2004 Employee Share Option Plan (the “2004 Plan”) under which up to 7,000,000 ordinary shares (1,400,000 shares after the 2015 reverse share split) of our Company were reserved for issuance.
Date of Grant Ordinary Shares Underlying Outstanding Options Exercise Price ($/Share) Date of Expiration May 5, 2017 4,000 2.90 May 5, 2027 Total 4,000 All options granted to our directors and executive officers were granted pursuant to the option plans and the equity incentive plans as described under “— Employee Share Option Plans and Equity Incentive Plans” below.
On October 30, 2023, our Board of Directors adopted a written compensation recovery policy, or the Compensation Recovery Policy. That policy is now in force with respect to the Chief Executive Officer and other executive officers, subject to compliance with applicable local laws and is included as Exhibit 97.1 to this report for the year ended December 31, 2023. C.
That policy is now in force with respect to the Chief Executive Officer and other executive officers, subject to compliance with applicable local laws and is incorporated by reference to Exhibit 97.1 to our annual report for the year ended December 31, 2023 on Form 20-F filed with the SEC on April 29, 2024. C.
He holds Ph.D. in Finances, College of Management at National Taiwan University, and a Master Degree of Science in Management from MIT Sloan School of Management, U.S. Board Diversity The table below provides certain information regarding the diversity of our board of directors.
He holds Ph.D. in Finances, College of Management at National Taiwan University, and a Master Degree of Science in Management from MIT Sloan School of Management, U.S. Family Relationships There are no family relationships among any of our executive officers or directors. B.
In the event that the employee’s employment with or service to our Company is terminated prior to the lapsing of restrictions with respect to any portion of the RSUs, such portion of the RSUs shall become forfeited. 2007 Equity Incentive Plan At the June 2007 Annual General Meeting, our shareholders approved the GigaMedia Limited 2007 Equity Incentive Plan (the “2007 Plan”) under which up to 2,000,000 ordinary shares (400,000 shares after the 2015 reverse share split) of our Company were reserved for issuance.
The Company is no longer issuing securities pursuant to, and no awards remain outstanding under this plan. 34 2007 Equity Incentive Plan At the June 2007 Annual General Meeting, our shareholders approved the GigaMedia Limited 2007 Equity Incentive Plan (the “2007 Plan”) under which up to 2,000,000 ordinary shares (400,000 shares after the 2015 reverse share split) of our Company were reserved for issuance.
Disclosure of Action to Recover Erroneously Awarded Compensation Not applicable. The full text of our compensation recovery policy is filed as Exhibit 97.1 to this annual report. 38
Disclosure of Action to Recover Erroneously Awarded Compensation Not applicable. The full text of our compensation recovery policy is incorporated by reference to Exhibit 97.1 to our annual report for the year 2023 on Form 20-F filed with the SEC on April 29, 2024. 36
Removed
Board Diversity Matrix (As of April 20, 2024) Country of Principal Executive Offices: Taiwan Foreign Private Issuer Yes Disclosure Prohibited under Home Country Law No Total Number of Directors 6 Female Male Non- Binary Did Not Disclose Gender Part I: Gender Identity Directors 1 5 0 0 Part II: Demographic Background Underrepresented Individual in Home Country Jurisdiction 0 LGBTQ + 0 Did Not Disclose Demographic Background 0 Family Relationships There are no family relationships among any of our executive officers or directors.
Added
Lin also serves as an independent director of uPI Semiconductor Corp., and a director of Feng Tay Enterprises Co., Ltd.
Added
Employee Share Option Plans and Equity Incentive Plans 2004 Employee Share Option Plan At the June 2004 Annual General Meeting, our shareholders approved the GigaMedia Limited 2004 Employee Share Option Plan (the “2004 Plan”) under which up to 7,000,000 ordinary shares (1,400,000 shares after the 2015 reverse share split) of our Company were reserved for issuance.
Added
Options will be forfeited upon termination of employment, unless the relevant award agreement extends the exercisability of the outstanding options. In the event that the employee’s employment with or service to our Company is terminated prior to the lapsing of restrictions with respect to any portion of the RSUs, such portion of the RSUs shall become forfeited.
Added
On October 30, 2023, our Board of Directors adopted a written compensation recovery policy, or the Compensation Recovery Policy.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

6 edited+0 added−0 removed8 unchanged
Major Shareholders The following table sets forth information known to us with respect to the ownership of our shares as of March 31, 2024 by each shareholder known by us to own more than 5% of our shares: Name of Owner Shares Owned Percentage of Shares Owned John-Lee Andre Koo (1) 2,159,999 19.54 % James Cheng-Ming Huang (2) 1,073,566 9.71 % Collin Hwang (3) 696,435 6.30 % Jonathan Honig (4) 1,105,145 9.99 % (1) Based on a Schedule 13G/A filed with the SEC on August 14, 2017, John-Lee Andre Koo has beneficial ownership of 2,159,999 shares of our Company.
Major Shareholders The following table sets forth information known to us with respect to the ownership of our shares as of March 31, 2025 by each shareholder known by us to own more than 5% of our shares: Name of Owner Shares Owned Percentage of Shares Owned John-Lee Andre Koo (1) 2,159,999 19.54 % James Cheng-Ming Huang (2) 1,073,566 9.71 % Collin Hwang (3) 696,435 6.30 % Jonathan Honig (4) 1,105,145 9.99 % (1) Based on a Schedule 13G/A filed with the SEC on August 14, 2017, John-Lee Andre Koo has beneficial ownership of 2,159,999 shares of our Company.
None of our major shareholders have voting rights different from those of our other shareholders. B. Related Party Transactions Since January 1, 2023 through March 31, 2024, we were not a party to any transaction with any related party that did not arise in the ordinary course of business or that was material to us.
None of our major shareholders have voting rights different from those of our other shareholders. B. Related Party Transactions Since January 1, 2024 through March 31, 2025, we were not a party to any transaction with any related party that did not arise in the ordinary course of business or that was material to us.
Elizabeth Honig and Mr. Honig are married, and Mr. Honig has voting and dipositive power of the securities held by the foregoing. As of March 31, 2024, we had 11,052,235 Shares outstanding, of which 6,017,090 Shares representing 54.44% of our total outstanding Shares were not held by our major shareholders as disclosed above.
Elizabeth Honig and Mr. Honig are married, and Mr. Honig has voting and dipositive power of the securities held by the foregoing. As of March 31, 2025, we had 11,052,235 Shares outstanding, of which 6,017,090 Shares representing 54.44% of our total outstanding Shares were not held by our major shareholders as disclosed above.
(2) James Cheng-Ming Huang has beneficial ownership of 1,073,566 ordinary shares of our Company as of March 31, 2024. (3) Based on the Schedule 13G filed with the SEC on June 19, 2017, Collin Hwang has beneficial ownership of 696,435 shares of our Company.
(2) James Cheng-Ming Huang has beneficial ownership of 1,073,566 ordinary shares of our Company as of March 31, 2025. (3) Based on the Schedule 13G filed with the SEC on June 19, 2017, Collin Hwang has beneficial ownership of 696,435 shares of our Company.
Stock Option Grants and Employee Share Purchase See Item 6, “Directors, Senior Management and Employees — E. Share Ownership.” C. Interests of Experts and Counsel Not applicable. 39
Stock Option Grants and Employee Share Purchase See Item 6, “Directors, Senior Management and Employees — E. Share Ownership.” C. Interests of Experts and Counsel Not applicable. 37
As of March 31, 2024, one shareholder of record with a registered address in the United States, Cede & Co., nominee of The Depository Trust Company, held 8,733,747 shares. The amounts and percentages of ordinary shares beneficially owned are reported on the basis of regulations of the SEC, governing the determination of beneficial ownership of securities.
As of March 31, 2025, one shareholder of record with a registered address in the United States, Cede & Co., nominee of The Depository Trust Company, held 8,732,727 shares. The amounts and percentages of ordinary shares beneficially owned are reported on the basis of regulations of the SEC, governing the determination of beneficial ownership of securities.

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