10Taxation (Continued)
The Group’s judgment regarding future profitability may change due to many factors, including future market conditions and the ability to successfully execute the Group’s business plans and/or tax planning strategies. Should there be a change in the ability to recover deferred tax assets, the Group’s income tax provision would increase or decrease in the period in which the assessment is changed.
Movement of Valuation Allowance
The following table shows the movement of valuation allowance for the periods presented:
| | | | | | |
| | For the year ended December 31, |
| | 2020 | | 2021 | | 2022 |
| | US$ | | US$ | | US$ |
Balance at beginning of the year | | — | | — | | (3,633) |
Provision | | — | | (3,633) | | (1,259) |
Current period reversal | | — | | — | | 531 |
Balance at end of the year | | — | | (3,633) | | (4,361) |
Immediately prior to the completion of the IPO, the Company adopted a dual class share structure. All of the outstanding ordinary shares prior to the completion of the IPO were automatically redesignated or converted into Class B ordinary shares on a one-for-one basis, and all ordinary shares issued in or after the completion of the IPO are Class A ordinary shares. All share-based awards, regardless of grant dates, will entitle holders to the equivalent number of Class A shares once the vesting and exercising conditions on such share-based compensation awards are met. Class A ordinary shares and Class B ordinary shares vote together as a single class on all matters submitted to a vote of the Company’s shareholders, except as may otherwise be required by law.
Each holder of class A ordinary shares is intitled to one vote per share and each holder of class B ordinary shares is entitled to ten votes per share on all matters submitted to them for a vote.
On June 4, 2020, the Company completed its follow-on offering on the New York Stock Exchange. The Company sold 4,907,100 Class A ordinary shares at US$1.27 per share, including the exercise of the over-allotment option. The total gross capital raise was approximately US$6,216.
As of December 31, 2021 and 2022, 1,500,000,000 ordinary shares have been authorized, including (i) 1,000,000,000 Class A ordinary shares of a par value of US$0.0001 each, (ii) 350,000,000 Class B ordinary shares of a par value of US$0.0001 each and (iii) 150,000,000 shares of a par value of US$0.0001 each of such class or classes however designated by the Board of Directors.
As of December 31, 2020, 325,733,064 ordinary shares have been issued, of which 196,045,898 were Class A ordinary shares and 129,687,166 were Class B ordinary shares. 323,640,564 ordinary shares are outstanding, of which 193,953,398 were Class A ordinary shares and 129,687,166 were Class B ordinary shares. The movement of Class A ordinary shares for the year ended 2020 includes exercise of share options of 5,103,015 shares, settlement of RSU by new issuance of 1,865,055 shares, follow-on public offering of 4,907,100 shares, repurchase of class A ordinary shares of 2,094,000 shares, treasury shares used in settlement of restricted shares of 1,808,220 shares and Class B ordinary shares conversion to Class A ordinary shares of 93,426,495 shares. The movement of Class B ordinary shares for the year ended 2020 includes Class B ordinary shares conversion to Class A ordinary shares of 93,426,495 shares.
As of December 31, 2021, 337,489,751 ordinary shares have been issued, of which 233,882,749 were Class A ordinary shares and 103,607,002 were Class B ordinary shares. 333,581,801 ordinary shares are outstanding, of which 229,974,799 were Class A ordinary shares and 103,607,002 were Class B ordinary shares. The movement of Class A ordinary shares for the year ended 2021 includes exercise of share options of 4,287,360 shares, settlement of RSU by new issuance of 4,243,680 shares, issuance for acquisition of subsidiaries of 3,225,647 shares, repurchase of class A ordinary shares of 1,815,450 shares and Class B ordinary shares conversion to Class A ordinary shares of 26,080,164 shares. The movement of Class B ordinary shares for the year ended 2021 includes Class B ordinary shares conversion to Class A ordinary shares of 26,080,164 shares.