0001104659-23-040145 | 20-F | XBRL Viewer

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Convertible preferred shares (Details)	May 03, 2022 shares
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Number of total convertible preferred shares issued and outstanding converted to ordinary shares	7,820,914

PREPAYMENTS AND OTHER CURRENT ASSETS

12 Months Ended

Dec. 31, 2022

PREPAYMENTS AND OTHER CURRENT ASSETS

PREPAYMENTS AND OTHER CURRENT ASSETS

3.PREPAYMENTS AND OTHER CURRENT ASSETS

Prepayments and other current assets consist of the following:


	As of December 31,
	2021		2022
Prepayments
Prepaid insurance premiums	$	14	$	497
Other prepayments		50		202
Deductible value-added tax input		23		17
	$	87	$	716

NET LOSS PER SHARE - Anti-dilutive securities (Details) - shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
NET LOSS PER SHARE
Total	3,576,403	9,803,475	11,216,812
Convertible preferred shares
NET LOSS PER SHARE
Total		7,820,914	7,820,914
Outstanding share options
NET LOSS PER SHARE
Total	3,576,403	1,982,561	3,395,898

Document and Entity Information	12 Months Ended
Document and Entity Information	Dec. 31, 2022 shares
Document and Entity Information
Document Type	20-F
Document Registration Statement	false
Document Annual Report	true
Document Transition Report	false
Document Shell Company Report	false
Document Period End Date	Dec. 31, 2022
Entity File Number	001-41359
Entity Registrant Name	Belite Bio, Inc
Entity Incorporation, State or Country Code	E9
Entity Address, Address Line One	12750 High Bluff Drive Suite 475,
Entity Address, City or Town	San Diego
Entity Address, Country	CA
Entity Address, Postal Zip Code	92130
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
ICFR Auditor Attestation Flag	false
Document Accounting Standard	U.S. GAAP
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	24,898,908
Entity Central Index Key	0001889109
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Amendment Flag	false
Auditor Name	Friedman LLP
Auditor Location	New York, New York
Auditor Firm ID	5395
American depositary shares, each representing one ordinary share
Document and Entity Information
Title of 12(b) Security	American depositary shares, each representing one ordinary share
Trading Symbol	BLTE
Security Exchange Name	NASDAQ
Ordinary shares, par value US$0.0001 per share
Document and Entity Information
Title of 12(b) Security	Ordinary shares, par value US$0.0001 per share*
No Trading Symbol Flag	true
Security Exchange Name	NASDAQ
Business Contact [Member]
Document and Entity Information
Entity Address State Or Province	CA
Entity Address, Address Line One	12750 High Bluff Drive Suite 475,
Entity Address, City or Town	San Diego,
Entity Address, Postal Zip Code	92130
City Area Code	-858
Local Phone Number	246-6240
Contact Personnel Name	Yu-Hsin Lin
Contact Personnel Email Address	tomlin@belitebio.com

CONVERTIBLE PREFERRED SHARES

12 Months Ended

Dec. 31, 2022

CONVERTIBLE PREFERRED SHARES

CONVERTIBLE PREFERRED SHARES

6.CONVERTIBLE PREFERRED SHARES

In January and February 2020, the Company issued 2,377,642 shares of Series A convertible preferred shares (“Series A Preferred Shares”) with a par value $0.0001 per share at $3.7036 per share for a total consideration of (i) cash $6,792 and (ii) notes principal plus unpaid interests $2,014 in convertible promissory notes issued in October, 2019.

In December 2020, the Company issued 5,443,272 shares of Series B convertible preferred shares (“Series B Preferred Shares”) with a par value $0.0001 per share to a group of investors at $4.2254 per share for a cash consideration of $23,000. The shareholder agreement therefore was amended and restated to reflect the issuance of Series B in the liquidation preference. Other than above, the rights and obligations for shareholders of Series A Preferred Shares and Series B Preferred Shares are consistent.

On May 3, 2022 total convertible preferred shares issued and outstanding of 7,820,914 shares were all converted to ordinary shares upon the completion of IPO.

Convertible preferred share consisted of the following as of December 31, 2021 (in thousands, except share):


	December 31, 2021
								Common
		Preferred						Stock
	Preferred	Shares						Issuable
	Shares	Issued and		Carrying		Liquidation		Upon
	Authorized	Outstanding		Value		Value		Conversion
Series A Preferred Shares	2,377,642	$	2,377,642	$	8,806	$	8,806	2,377,642
Series B Preferred Shares	5,443,272		5,443,272		23,000		23,000	5,443,272
Total	7,820,914		7,820,914		31,806		31,806	7,820,914

	December 31, 2022
Series A Preferred Shares	—	$	—	$	—	$	—	—
Series B Preferred Shares	—		—		—		—	—
Total	—		—		—		—	—

Key terms of the Series A Preferred Shares and Series B Preferred Shares (collectively the “Preferred Shares”) are summarized as follows:

Voting rights

Each Preferred Share has voting rights equivalent to the number of ordinary shares to which it is convertible at the record date. The Preferred Shares shall vote separately as a class with respect to certain specified matters. Otherwise, the preferred shareholders and ordinary shareholders shall vote together as a single class.

Dividend rights

Each holder of the Preferred Shares will be entitled to receive non-cumulative dividends when declared by the Board of Directors prior and in preference to ordinary shareholders. The dividend should be paid at the rate of 6% of the original issue price per share per annum on each Preferred Shares. After the preferential dividends relating to the Preferred Shares have been paid in full or declared and set apart in any fiscal year of the Company, any additional dividends out of funds or assets legally available therefore may be declared in that fiscal year for the Shares and, if such additional dividends are declared, the preferred shareholders shall be entitled to participate on an as converted-basis pro-rata in any dividends or distributions paid to the ordinary shareholders.

Conversion rights

Each holder of Preferred Shares shall have the right, at such holder’s sole discretion, to convert all or any portion of the Preferred Shares into ordinary shares based on a one-for-one basis at any time. The initial conversion price is the issuance price of Preferred Shares, subject to adjustment in the event of stock splits, share combinations, share dividends and distribution, reorganization, mergers, consolidations, reclassifications, exchanges, substitutions, or dilutive issuance.

The Preferred Shares will be automatically converted into ordinary shares at the then-effective conversion price upon the earlier of (1) the closing of a Qualified Initial Public Offering, or (2) the date specified by written consent or agreement of majority holders of Preferred Shares.

Liquidation preferences

In the event of any liquidation, dissolution or winding up of the Company, either voluntary or involuntary, or any deemed liquidation event as defined in the Company’s articles of association, the holders of Preferred Shares are entitled to receive, prior to any distribution to the holders of ordinary shares, an amount per share equal to the original issue price, plus accrued but unpaid dividends (the “Preference Amount”).

In the event insufficient funds are available to pay in full the Preference Amount in respect of each preferred shareholders, the sequence of liquidation right of all series of preferred shares was as follows:

(1)

Series B Preferred Shares

(2)

Series A Preferred Shares

After the Preference Amount has been paid, any remaining funds or assets legally available for distribution shall be distributed pro rata among the preferred shareholders together with ordinary shares.

SHARE-BASED COMPENSATION - Plans (Details) - shares			1 Months Ended
SHARE-BASED COMPENSATION - Plans (Details) - shares	Apr. 18, 2022	Mar. 01, 2021	Apr. 30, 2022	Dec. 23, 2020	Dec. 17, 2019
SHARE-BASED COMPENSATION
Number of shares granted to non-employees		41,736
2019 Plan and 2020 Plan
SHARE-BASED COMPENSATION
Vesting period (in years)	3 years
Expiration period (in years)	10 years
2019 Plan
SHARE-BASED COMPENSATION
Maximum aggregate number of shares that may be issued pursuant to all awards granted					1,960,080
2020 Plan
SHARE-BASED COMPENSATION
Maximum aggregate number of shares that may be issued pursuant to all awards granted				4,165,310
2022 performance incentive plan
SHARE-BASED COMPENSATION
Initial aggregate amount of ordinary shares that may be issued			1,748,667
Percentage of shares reserved for issuance on outstanding capital stock			4.00%
Shares granted to the management team, employees, and the independent directors	1,698,667

LEASES

12 Months Ended

Dec. 31, 2022

LEASES

LEASES

8.Leases

On January 1 , 2022, The Company adopted ASC Topic 842, Lease (the “new lease standard”) by applying the modified retrospective approach to all leases. Upon adaptation The Company recognized operating lease right-of-use (“ROU”) assets and corresponding lease liabilities of $941.

Significant assumptions and judgments

Incremental borrowing rate. As most of our leases do not provide an implicit interest rate, the Company use its incremental borrowing rate(“IBR”) 2.48% as of April 20, 2022, and 2.64% as of August 15, 2022 at the commencement of the lease and estimate the IBR for each lease agreement taking into consideration lease contract term, collateral and entity credit ratings, and use sensitivity analyses to evaluate the reasonableness of the rates determined.

Lease balances and costs

All of the lease agreements that we have entered into are classified as operating leases.

Effective April 20, 2022, the Company entered into an agreement to lease usage of our Taiwan office with a third-party entity. The lease was for a 5-year term, early termination of the lease shall be paid twice of the monthly rent as punitive liquidated damages and forfeited security deposits.

Effective August 15, 2022, the Company entered into an agreement to lease usage of our Australia office with a third party entity. The lease was for 3-year term, early termination of the lease may apply the proportion of any incentive which must be repaid to the lessor.

Supplemental balance sheet information related to leases consists of the following:


		As of December 31,
	Classification	2022
Assets
Operating lease – ROU assets	Right-of-use assets	$	806

Liabilities
Operating lease liabilities	Current portion	$	198
Operating lease liabilities	Non-current portion		668
Total lease liabilities		$	866

Depreciation expenses for ROU recognized during the years ended December 31, 2022, were approximately $134.

At December 31, 2022, the weighted average incremental borrowing rate and the weighted average remaining lease term for the operating leases held by the Company were 2.51% and 51 months, respectively.

The following table sets forth the Company’s minimum lease payments in future periods:


	As of December 31,
For the year ending December 31,
2023	$	218
2024		233
2025		216
2026		158
2027		86

Total minimum lease payments	$	911
Less: imputed interest		(45)

Total:	$	866

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Deferred offering costs (Details) - USD ($) $ in Thousands	Apr. 28, 2022	Dec. 31, 2022	Dec. 31, 2021
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Deferred offering costs		$ 0	$ 815
Deferred offering cost reclassed to additional-paid-in-capital upon IPO	$ 1,844

ORGANIZATION AND BASIS OF PRESENTATION

12 Months Ended

Dec. 31, 2022

ORGANIZATION AND BASIS OF PRESENTATION

ORGANIZATION AND BASIS OF PRESENTATION

1.ORGANIZATION AND BASIS OF PRESENTATION

Belite Bio, Inc (“Belite” or the “Company”) was incorporated under the laws of the Cayman Islands on March 27, 2018. The Company and its subsidiaries are engaged in research and development of first-in-class therapeutics targeting significant unmet needs.

In June 2016, the Company’s ultimate controlling shareholder (i.e., the sole shareholder of Belite’s principal shareholder, Lin Bioscience International Ltd.), Lin BioScience, Inc., a public company in Taiwan (stock code: 6696.TW), established Belite Bio Holdings Corp. (formerly known as Lin BioScience Holdings Corporation) and Belite Bio, LLC (formerly known as Lin BioScience, LLC), in Delaware. Belite Bio Holdings Corp. is established as an intermediate holding company and owns 100% equity interests in Belite Bio, LLC, which is mainly engaged in research and development of Tinlarebant (a/k/a LBS-008) and LBS-009.

In March 2018, Lin BioScience, Inc., established the Company in the Cayman Islands, as a subsidiary to its wholly-owned subsidiary Lin Bioscience International Ltd., for reorganization purposes.

In June 2018, as part of the reorganization, the Company’s principal shareholder, Lin Bioscience International Ltd., acquired the entire equity interest in Belite Bio Holdings Corp. from Lin BioScience, Inc. and then contributed the entire equity interest in Belite Bio Holdings Corp. to the Company in July 2018, together with other considerations in exchange for the Company’s ordinary shares. Lin Bioscience International Ltd. transferred 1) cash of $900, 2) assignment of Lin BioScience, Inc.’s rights, title, interests and obligations under the exclusive license agreement by and between Lin BioScience, Inc. and Columbia University and 3) 1,600 shares of Belite Bio Holdings Corp. to the Company in exchange for its 5,340,221 ordinary shares. After above transaction, Belite Bio Holdings Corp. became Belite’s wholly-owned subsidiary, which in turn owns 100% equity interests in Belite Bio, LLC.

Before and after the reorganization, the Company, together with its subsidiaries, is effectively controlled by the same shareholders, and therefore the reorganization is considered a recapitalization of entities under common control in accordance with Accounting Standards Codification (“ASC”) 805-50-25. The consolidation of the Company and its subsidiaries have been accounted for at historical cost in the accompanying consolidated financial statements in accordance with ASC 805-50-45-5.

In August 2018, Belite Bio Holdings Corp. established RBP4 Pty Ltd in Australia as its wholly-owned subsidiary for carrying out clinical trials in Australia and tax refund purposes.

In January and February 2020, the Company closed two rounds of Series A Preferred Share financing and the relevant investors became shareholders of the Company. In December 2020, the Company closed a round of Series B Preferred Share financing and the relevant investors became shareholders of the Company. After the private placements, Lin Bioscience International Ltd. hold 80.10% of the Company’s equity.

On April 28, 2022, the Company consummated its initial public offering (“IPO”) of 6,000,000 American Depository Shares (“ADSs”) at a public offering price per ADS of $6. Each ADS represents one ordinary share of Belite. The gross proceeds from IPO, before deducting the underwriting discounts and commissions and offering expenses were $36.0 million with net proceeds of $33.7 million. On May 20, 2022, the underwriter exercised in full its over-allotment option to purchase 772,091 ADS, resulting in additional net proceeds of $4.3 million.

In June 2021, the Company established Belite Bio (HK) Limited in Hong Kong as a wholly-owned subsidiary which further established Belite Bio (Shanghai) Limited in Shanghai, China in August 2021 for the purpose of carrying out clinical trials in China. As of December 31, 2022, the Company’s principal subsidiaries are as follows:


Subsidiaries	Date of incorporation	Place of incorporation	Ownership	Principal activities
Belite Bio Holdings Corp. (“Belite Holding”)	June 10, 2016	The United States of America	100% owned by Belite	Investment holding
Belite Bio, LLC (“Belite USA”)	June 10, 2016	The United States of America	100% owned by Belite Holding	Research and development
RBP4 Pty Ltd (“RBP4”)	August 13, 2018	Australia	100% owned by Belite Holding	Clinical trial activities
Belite Bio (HK) Limited (“Belite HK”)	June 10, 2021	Hong Kong	100% owned by Belite	Investment holding
Belite Bio (Shanghai) Limited (“Belite Shanghai”)	August 12, 2021	China	100% owned by Belite HK	Clinical trial activities

Liquidity

The Company has incurred recurring negative cash flows since inception and has funded its operations primarily from private placement of equity and debt securities and public offering of American Depositary Shares. The Company had an accumulated deficit of approximately $17.6 million, $27.2 million and $39.9 million as of December 31, 2020, 2021 and 2022, respectively. The Company had net losses of approximately $5.8 million, $9.7 million and $12.6 million for the years ended December 31, 2020, 2021 and 2022.

As of December 31, 2022, the Company had a total of $42.1 million in cash. The Company believe that current cash balance as of December 31, 2022 is sufficient to fund its operating activities, capital expenditures and other obligations one year after the issuance date of the consolidated financial statements. However, the Company may decide to enhance its liquidity position or increase cash for future expansions through additional capital and/or finance funding.

RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2022

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

13.RELATED PARTY TRANSACTIONS

The table below sets forth the major related parties and their relationships with the Company as of December 31, 2021 and 2022:


Name of related parties		Relationship with the Company
Lin BioScience, Inc.		The ultimate controlling shareholder of the Company
Lin Bioscience International Ltd.		The shareholder of the Company
Lin BioScience Pty Ltd		Controlled by the ultimate controlling shareholder of the Company

The Company and its subsidiaries entered into several research and development services agreements with several related parties, including:

On July 1, 2020, Lin BioScience, Inc. and the Company entered into the LBS-009 R&D services agreement; whereby Lin BioScience, Inc. agreed to provide preclinical studies services for pipeline LBS-009 to the Company. The Company agreed to pay services fees in an amount equal to 110% percent of actual costs for its performance of such development services and to reimburse the actual expenses for transportation, travel and lodging for the performance of such development services. The LBS-009 R&D services agreement terminated on June 30, 2021. For the year ended December 31, 2021 and 2022, the Company did not receive any services connected to above agreement.

Lin BioScience, Inc. and the Company also entered into the Tinlarebant R&D services agreements on July 1, 2020, July 1, 2021 and July 1, 2022, whereby Lin BioScience, Inc. agreed to provide certain new drug development services for pipeline Tinlarebant to the Company. The Company agreed to pay services fees in an amount equal to 110% percent of actual costs for its performance of such development services and to reimburse the actual expenses for transportation, travel and lodging for the performance of such development services. For the year ended December 31, 2021, and 2022, the Company recorded $183 and $140 in research and development expenses, respectively.

On November 1, 2022, Lin Bioscience, Inc and the Company entered into the LBS-007 R&D service agreement whereby the Company agreed to provide new drug development services for pipeline LBS-007 to Lin Bioscience, which is Lin Bioscience’s cancer pipeline. Lin Bioscience agreed to pay service fee in an amount equal to 110% percent of actual costs for its performance of such development service. For the year ended December 31, 2022, the Company has provided related service connected to the above agreement to Lin Bioscience and the expense reimbursed incurred was $32.

In addition to above research and development agreements, the Company and its subsidiaries also entered into certain loan agreements with related parties since 2019, including:

Pursuant to the loan agreements entered into in 2019, Lin Bioscience International Ltd. agreed to provide an interest-free loan on request from time to time for a period of one year from July 2019. In July 2020, Belite Bio, Inc had fully repaid the outstanding amount under the loan agreements with Lin Bioscience International Ltd. For the year ended December 31, 2020, the proceeds received from and repayment made to Lin Bioscience International Ltd. were nil and $1,180, respectively.

In 2019 and 2020, RBP4 entered into several related party loan agreements with Lin BioScience Pty Ltd, whereby Lin BioScience Pty Ltd, agreed to provide interest-free loans on request from time to time for a period of one year commencing from July 2019. In January 2020, RBP4 had fully repaid the outstanding amount under the loan agreements with Lin BioScience Pty Ltd. For the year ended December 31, 2020, the proceeds received from and repayment made to Lin BioScience Pty Ltd. were $131 and $580, respectively.

In 2019 and 2020, Lin BioScience, Inc. entered into a related party funding agreement with RBP4 and the Company. Pursuant to the agreement, Lin BioScience, Inc. agreed to provide loans on request from time to time for a period of one year. In July 2020 the Company and RBP4 had fully repaid the outstanding amount under the loan agreements with Lin BioScience, Inc. For the year ended December 31, 2020, the proceeds received from and repayment made to Lin BioScience, Inc. were nil and $690, respectively.

(a)	Related party balances


	As of December 31,
	2021		2022
Due from related parties
Lin BioScience, Inc.	$	—	$	2
Due to related parties
Lin BioScience, Inc.	$	71	$	—

(b)	Related party transactions

During the years ended December 31, 2020, 2021 and 2022, related party transactions consisted of the following:


	Years ended December 31,
	2020		2021		2022
Lin BioScience, Inc.:
Research and Development Expense	$	—	$	183	$	140
Professional Service Expense	$	21	$	—	$	—
Interest Expense	$	17	$	—	$	—
Reimbursement for Expense	$	—	$	—	$	32

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2022	Dec. 31, 2021
Convertible preferred shares, shares authorized		7,820,914
Convertible preferred shares, shares issued		7,820,914
Convertible preferred shares, shares outstanding		7,820,914
Ordinary shares, par value	$ 0.0001	$ 0.0001
Ordinary shares, shares authorized	492,179,086	492,179,086
Ordinary shares, shares issued	24,898,908	10,274,403
Ordinary shares, shares outstanding	24,898,908	10,274,403
Series A convertible preferred shares
Convertible preferred shares, par value	$ 0.0001	$ 0.0001
Convertible preferred shares, shares authorized	0	2,377,642
Convertible preferred shares, shares issued	0	2,377,642
Convertible preferred shares, shares outstanding	0	2,377,642
Series B convertible preferred shares
Convertible preferred shares, par value	$ 0.0001	$ 0.0001
Convertible preferred shares, shares authorized	0	5,443,272
Convertible preferred shares, shares issued	0	5,443,272
Convertible preferred shares, shares outstanding	0	5,443,272

SHARE-BASED COMPENSATION - Compensation expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
SHARE-BASED COMPENSATION
Total	$ 1,483	$ 1,530	$ 1,363
2019 Plan
SHARE-BASED COMPENSATION
Total unrecognized employee share-based compensation expense	$ 0
Recognized over a weighted-average period	0 years
2020 Plan
SHARE-BASED COMPENSATION
Total unrecognized employee share-based compensation expense	$ 507
Recognized over a weighted-average period	2 years 3 months 29 days
2022 performance incentive plan
SHARE-BASED COMPENSATION
Total unrecognized employee share-based compensation expense	$ 1,131
Recognized over a weighted-average period	1 year 8 months 8 days
Research and development
SHARE-BASED COMPENSATION
Total	$ 818	52	77
General and administrative
SHARE-BASED COMPENSATION
Total	$ 665	$ 1,478	$ 1,286

ORGANIZATION AND BASIS OF PRESENTATION (Details) - USD ($) $ / shares in Units, $ in Thousands			1 Months Ended	2 Months Ended	12 Months Ended
	May 20, 2022	Apr. 28, 2022	Jun. 30, 2018	Feb. 29, 2020	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Jun. 30, 2016
ORGANIZATION AND BASIS OF PRESENTATION
Net proceeds from issuance							$ 500
Accumulated deficit					$ 39,871	$ 27,223	17,600
Net loss					12,648	9,666	$ 5,753
Cash					$ 42,089	$ 17,344
Belite Bio Holdings Corp. ("Belite Holding")
ORGANIZATION AND BASIS OF PRESENTATION
Cash transferred			$ 900
Number of shares transferred			1,600
Number of ordinary shares issued			5,340,221
Series A convertible preferred shares
ORGANIZATION AND BASIS OF PRESENTATION
Number of rounds of financing				2
Number of shares issued				2,377,642
IPO [Member] \| ADS
ORGANIZATION AND BASIS OF PRESENTATION
Number of shares issued		6,000,000
Offering price		$ 6
Gross proceeds from issuance		$ 36,000
Net proceeds from issuance		$ 33,700
Over-Allotment Option [Member] \| ADS
ORGANIZATION AND BASIS OF PRESENTATION
Number of shares issued	772,091
Net proceeds from issuance	$ 4,300
Belite Bio, LLC ("Belite USA") \| Belite Bio Holdings Corp. ("Belite Holding")
ORGANIZATION AND BASIS OF PRESENTATION
Ownership interest (in percent)			100.00%		100.00%			100.00%
Belite Bio, Inc \| Lin Bioscience International Ltd
ORGANIZATION AND BASIS OF PRESENTATION
Ownership interest (in percent)							80.10%
Belite Bio Holdings Corp. ("Belite Holding")
ORGANIZATION AND BASIS OF PRESENTATION
Ownership interest (in percent)					100.00%
RBP4 Pty Ltd ("RBP4") \| Belite Bio Holdings Corp. ("Belite Holding")
ORGANIZATION AND BASIS OF PRESENTATION
Ownership interest (in percent)					100.00%
Belite Bio (HK) Limited ("Belite HK")
ORGANIZATION AND BASIS OF PRESENTATION
Ownership interest (in percent)					100.00%
Belite Bio (Shanghai) Limited ("Belite Shanghai") \| Belite Bio (HK) Limited ("Belite HK")
ORGANIZATION AND BASIS OF PRESENTATION
Ownership interest (in percent)					100.00%

PROPERTY AND EQUIPMENT, NET (Tables)

12 Months Ended

Dec. 31, 2022

PROPERTY AND EQUIPMENT, NET

Schedule of components of property and equipment


	As of December 31,
	2021		2022
Laboratory equipment	$	141	$	368
Transportation equipment		—		54
Office equipment		—		23
Leasehold improvements		—		187
Less: accumulated depreciation		(47)		(91)
Total	$	94	$	541

NET LOSS PER SHARE - Calculation of Basic and diluted net loss per share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Numerator:
Net loss attributable to ordinary shareholders	$ (12,648)	$ (9,666)	$ (5,753)
Denominator:
Weighted average number of ordinary shares outstanding - basic	19,976,596	9,569,932	8,790,397
Weighted average number of ordinary shares outstanding - diluted	19,976,596	9,569,932	8,790,397
Net loss per share - basic	$ (0.63)	$ (1.01)	$ (0.65)
Net loss per share - diluted	$ (0.63)	$ (1.01)	$ (0.65)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
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The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities; of income (loss) available to common shareholders.

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+ Details

ORDINARY SHARES (Details)	12 Months Ended
ORDINARY SHARES (Details)	Dec. 31, 2022 USD ($) Vote $ / shares shares	Dec. 31, 2021 $ / shares shares
ORDINARY SHARES
Number of shares authorized \| shares	492,179,086	492,179,086
Par value per share \| $ / shares	$ 0.0001	$ 0.0001
Number of votes per share \| Vote	1
Dividends declared \| $	$ 0

CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' (DEFICIT) EQUITY - USD ($) $ in Thousands	Convertible Preferred Shares Series A convertible preferred shares	Convertible Preferred Shares Series B convertible preferred shares	Convertible Preferred Shares	Ordinary Shares	Additional Paid-in Capital	Accumulated other Comprehensive loss	Accumulated deficit	Series A convertible preferred shares	Series B convertible preferred shares	Total
Balance as of beginning at Dec. 31, 2019			$ 0
Balance as of beginning (in shares) at Dec. 31, 2019			0
Convertible Preferred Shares
Issuance of preferred shares	$ 6,792	$ 23,000
Issuance of preferred shares (in shares)	1,833,892	5,443,272
Issuance of Series A preferred shares upon conversion of convertible promissory notes	$ 2,014
Issuance of Series A preferred shares upon conversion of convertible promissory notes (in shares)	543,750
Balance as of ending at Dec. 31, 2020			$ 31,806
Balance as of ending (in shares) at Dec. 31, 2020			7,820,914
Balance as of beginning at Dec. 31, 2019				$ 1	$ 8,114	$ (50)	$ (11,804)			$ (3,739)
Balance as of beginning (in shares) at Dec. 31, 2019				7,840,321
Ordinary Shares
Issuance of ordinary shares					500					500
Issuance of ordinary shares (in shares)				500,000
Issuance of ordinary shares upon conversion of other payable due to related parties					500					500
Issuance of ordinary shares upon conversion of other payable due to related parties (in shares)				500,000
Exercise of share options					86					86
Exercise of share options (in shares)				727,676
Share-based compensation expense					1,363					1,363
Net loss							(5,753)			(5,753)
Foreign currency translation adjustment						6				6
Balance as of ending at Dec. 31, 2020				$ 1	10,563	(44)	(17,557)			(7,037)
Balance as of ending (in shares) at Dec. 31, 2020				9,567,997
Balance as of ending at Dec. 31, 2021			$ 31,806					$ 8,806	$ 23,000	$ 31,806
Balance as of ending (in shares) at Dec. 31, 2021			7,820,914					2,377,642	5,443,272	7,820,914
Ordinary Shares
Exercise of share options					232					$ 232
Exercise of share options (in shares)				706,406
Share-based compensation expense					1,530					1,530
Net loss							(9,666)			(9,666)
Foreign currency translation adjustment						(152)				(152)
Balance as of ending at Dec. 31, 2021				$ 1	12,325	(196)	(27,223)			(15,093)
Balance as of ending (in shares) at Dec. 31, 2021				10,274,403
Convertible Preferred Shares
Conversion of preferred shares			$ (31,806)	$ 1	31,805					31,806
Conversion of preferred shares (in shares)			(7,820,914)	7,820,914
Balance as of ending at Dec. 31, 2022			$ 0
Balance as of ending (in shares) at Dec. 31, 2022			0					0	0
Ordinary Shares
Issuance of ordinary shares				$ 1	36,145					36,146
Issuance of ordinary shares (in shares)				6,772,091
Conversion of preferred shares			$ (31,806)	$ 1	31,805					31,806
Conversion of preferred shares (in shares)			(7,820,914)	7,820,914
Exercise of share options					3					3
Exercise of share options (in shares)				31,500
Share-based compensation expense					1,483					1,483
Net loss							(12,648)			(12,648)
Foreign currency translation adjustment						(196)				(196)
Balance as of ending at Dec. 31, 2022				$ 3	$ 81,761	$ (392)	$ (39,871)			$ 41,501
Balance as of ending (in shares) at Dec. 31, 2022				24,898,908

INCOME TAX - Income tax expense (Details) $ in Thousands	12 Months Ended
INCOME TAX - Income tax expense (Details) $ in Thousands	Dec. 31, 2020 USD ($)
Income Tax Expense
Current	$ 1
Total Income Tax Expense	$ 1

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

CONVERTIBLE PREFERRED SHARES (Details) $ / shares in Units, $ in Thousands		1 Months Ended	2 Months Ended	12 Months Ended
	May 03, 2022 shares	Dec. 31, 2020 USD ($) $ / shares shares	Feb. 29, 2020 USD ($) $ / shares shares	Dec. 31, 2022 $ / shares	Dec. 31, 2020 USD ($) $ / shares	Dec. 31, 2021 $ / shares
CONVERTIBLE PREFERRED SHARES
Total cash consideration \| $					$ 29,792
Conversion of preferred shares (in shares) \| shares	7,820,914
Dividend rate percentage				6.00%
Conversion ratio				1
Series A convertible preferred shares
CONVERTIBLE PREFERRED SHARES
Number of shares issued \| shares			2,377,642
Par value per share \| $ / shares			$ 0.0001	$ 0.0001		$ 0.0001
Price per share \| $ / shares			$ 3.7036
Total cash consideration \| $			$ 6,792
Debt amount converted to convertible preferred shares \| $			$ 2,014
Series B convertible preferred shares
CONVERTIBLE PREFERRED SHARES
Number of shares issued \| shares		5,443,272
Par value per share \| $ / shares		$ 0.0001		$ 0.0001	$ 0.0001	$ 0.0001
Price per share \| $ / shares		$ 4.2254			$ 4.2254
Total cash consideration \| $		$ 23,000

NET LOSS PER SHARE

12 Months Ended

Dec. 31, 2022

NET LOSS PER SHARE

NET LOSS PER SHARE

12.NET LOSS PER SHARE

Basic and diluted net loss per share for the years ended December 31, 2020, 2021 and 2022 are calculated as follows:


	Years ended December 31,
	2020		2021		2022
Numerator:
Net loss attributable to ordinary shareholders	$	(5,753)	$	(9,666)	$	(12,648)
Denominator:
Weighted average number of ordinary shares outstanding – basic and diluted		8,790,397		9,569,932		19,976,596
Net loss per share – basic and diluted	$	(0.65)	$	(1.01)	$	(0.63)

For the years ended December 31, 2020, 2021, and 2022, the effects of all outstanding convertible preferred shares and share options have been excluded from the computation of diluted loss per share as their effects would be anti-dilutive.

The potentially dilutive securities that have not been included in the calculation of diluted net loss per share as their inclusion would be anti-dilutive are as follows:


	Years ended December 31,
	2020	2021	2022
Convertible preferred shares	7,820,914	7,820,914	—
Outstanding share options	3,395,898	1,982,561	3,576,403
Total	11,216,812	9,803,475	3,576,403

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and equipment (Details)	12 Months Ended
	Dec. 31, 2022
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Estimated useful lives (in years)	5 years

INCOME TAX - Pretax loss (Details) - USD ($) $ in Thousands	12 Months Ended
INCOME TAX - Pretax loss (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
INCOME TAX
United States	$ (1,097)	$ (413)	$ (331)
Other than United States	(11,551)	(9,253)	(5,421)
Total	$ (12,648)	$ (9,666)	$ (5,752)

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

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+ Details

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities
Net loss	$ (12,648)	$ (9,666)	$ (5,753)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	64	30	17
Amortization of operating lease right-of-use asset	134
Share-based compensation expense	1,483	1,530	1,363
Gain on disposal of property and equipment		(8)
Changes in operating assets and liabilities:
Other receivables due from related parties	(32)		4
Prepayments	(641)	(35)	192
Other payables due to related parties	(41)	45	(19)
Accrued expenses and other liabilities	373	632	(254)
Security deposits	(79)	(2)	8
Payment of operating lease liabilities	(71)
Net cash used in operating activities	(11,458)	(7,474)	(4,442)
Cash flows from investing activities
Acquisition of property and equipment	(394)	(74)
Prepayments for property and equipment			(20)
Proceeds from disposal of property and equipment		18
Net cash used in investing activities	(394)	(56)	(20)
Cash flows from financing activities
Payments of deferred offering costs	(1,030)	(815)
Proceeds from related party loan			131
Repayment of related party loan			(2,450)
Proceeds from issuance of ordinary shares			500
Proceed from issuance of convertible preferred shares			29,792
Proceeds from initial public offering, net	37,990
Proceed from exercise of share options	3	232	86
Net cash used in (provided by) financing activities	36,963	(583)	28,059
Effects of exchange rate on cash	(366)	(161)	4
NET (DECREASE) INCREASE IN CASH	24,745	(8,274)	23,601
CASH AT BEGINNING OF THE YEAR	17,344	25,618	2,017
CASH AT END OF THE YEAR	42,089	$ 17,344	25,618
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest paid	16		19
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING
Conversion of convertible promissory notes and accrued interest into convertible preferred shares			2,014
Conversion of other payable due to related parties into ordinary shares			$ 500
Conversion of convertible preferred shares into ordinary shares	31,806
Deferred IPO costs reclassed to Additional paid-in-capital	1,844
Right-of-use assets obtained in exchange of lease liabilities	$ 941

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Expenses
Research and development	$ 8,869	$ 7,419	$ 3,688
General and administrative	3,952	2,378	2,055
Total operating expenses	12,821	9,797	5,743
Loss from operations	(12,821)	(9,797)	(5,743)
Other income (expense):
Interest income	23	5	12
Interest expense	(16)		(21)
Other income	166	126
Total other (expense) income, net	173	131	(9)
Loss before income tax	(12,648)	(9,666)	(5,752)
Income tax expense			(1)
Net loss	(12,648)	(9,666)	(5,753)
Other comprehensive income (loss)
Foreign currency translation adjustments, net of nil tax	(196)	(152)	6
Total comprehensive loss	$ (12,844)	$ (9,818)	$ (5,747)
Weighted average number of ordinary shares used in per share calculation:
Basic	19,976,596	9,569,932	8,790,397
Diluted	19,976,596	9,569,932	8,790,397
Net loss per ordinary share
Basic	$ (0.63)	$ (1.01)	$ (0.65)
Diluted	$ (0.63)	$ (1.01)	$ (0.65)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2022

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”).

Principle of consolidation

The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated on consolidation.

Use of estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in our financial statements and accompanying notes. Significant accounting estimates reflected in the Company’s consolidated financial statements include, but are not limited to, valuation of ordinary shares, share options, valuation allowance for deferred income tax assets, useful lives for property and equipment, right-of-use (“ROU”) assets, operating lease liabilities and share-based compensation. Management bases the estimates on historical experience and various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Accordingly, actual results could differ from those estimates.

Risk and uncertainties

The product candidates developed by the Company require approvals from the U.S. Food and Drug Administration (“FDA”) or foreign regulatory agencies prior to commercial sales. There can be no assurance that the Company’s current and future product candidates will receive the necessary approvals or be commercially successful. If the approval is denied or delayed, it will have a material adverse impact on the business and consolidated financial statements of the Company.

Generally, the industry in which the Company operates subjects the Company to a number of other risks and uncertainties that can affect its operating results and financial condition. Such factors include, but are not limited to: the timing, costs and results of clinical trials and other development activities versus expectations; the ability to manufacture products successfully; competition from products sold or being developed by other companies; the price of, and demand for products once approved; the ability to negotiate favorable licensing or other manufacturing and marketing agreements for its products.

The COVID-19 pandemic may have an impact on the Company enrollment. For example, government orders and site policies on account of the COVID-19 pandemic may result some patients unwilling or unable to travel to study sites, enroll in our studies or comply with clinical trial protocols if quarantines impede patient movement or interrupt healthcare services, or impact on the workforce of the third parties and CROs on which the Company rely could adversely impact the ability to conduct preclinical studies, enroll and retain patients in clinical trials and conduct the clinical trials of the product candidates on expected timeframes or to complete such studies, and the ability to ultimately obtain regulatory approval.

Fair value measurements

The Company applies ASC 820, Fair Value Measurements and Disclosures. ASC 820 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements.

ASC 820 requires disclosures to be provided for fair value measurements. ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

Level 1 — Observable inputs such as quoted prices for identical instruments in active markets;

Level 2 — Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly;

Level 3 — Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach; and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities.

The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset.

Financial instruments of the Company primarily include cash, accrued expenses and other liabilities, other payable due to related parties and convertible preferred shares. Convertible preferred shares were initially recorded at issue price net of issuance costs. The fair value of the other financial instruments closely approximates their fair value due to their short maturities.

Cash

Cash deposits placed with banks which are unrestricted as to withdrawal or use.

Deferred offering costs

Deferred offering costs consist of legal, accounting and other costs incurred through the balance sheet date that are directly related to the Company’s initial public offering and that will be charged to shareholder’s deficit upon the completion of the initial public offering. Should the initial public offering prove to be unsuccessful, the deferred offering costs, will be charged to operating expense in the consolidated statement of operations and comprehensive loss. The Company recorded a deferred offering cost of $815 and nil as of December 31, 2021 and 2022, respectively. Total deferred offering cost of $1,844 reclassed to additional-paid-in-capital upon IPO.

Property and equipment

Property and equipment are stated at cost less accumulated depreciation and impairment if applicable. Property and equipment consist of laboratory equipment, transportation equipment, office equipment, and leasehold improvements. Depreciation for laboratory equipment, transportation equipment and office equipment is computed on a straight-line basis over estimated useful lives which are 5 years and leasehold improvement is computed on a shorter of the remaining lease terms or estimated useful lives.

Repair and maintenance costs are charged to expense as incurred, whereas the costs of betterments that extend the useful life of property and equipment are capitalized as additions to the related assets.

Retirements, sale and disposals of assets are recorded by removing the cost and accumulated depreciation with any resulting gain or loss reflected in the consolidated statements of operations and comprehensive loss.

Long-lived asset impairment

The Company evaluates the recoverability of long-lived assets whenever events or changes in circumstances indicate the carrying value may not be fully recoverable. When these events occur, the Company evaluates the recoverability of long-lived assets by comparing the carrying amount of the assets to the future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Company recognizes an impairment loss based on the excess of the carrying amount of the assets over their fair value. Fair value is generally determined by discounting the cash flows expected to be generated by the assets when the market prices are not readily available. The adjusted carrying amount of the assets become new cost basis and are depreciated over the assets’ remaining useful lives. No impairment loss was recorded for the years ended December 31, 2020, 2021 and 2022.

Segment reporting

In accordance with ASC 280, Segment Reporting, the Company’s chief operating decision maker (“CODM”) has been identified as the Chief Executive Officer. The Company’s CODM reviews the consolidated results of operations when making decisions about allocating resources and assessing performance of the Company. The Company operates and manages it business as a single segment. The Company does not distinguish between markets for the purpose of making decisions about resources allocation and performance assessment. Hence, the Company has only one operating segment and one reportable segment.

Research and development expenses

Research and development expenses primarily include (1) payroll, share-based compensation and other related costs of personnel engaged in research and development activities, (2) in-licensed patent rights fee of exclusive development rights of drugs granted to the Company, (3) costs related to preclinical testing of the Company’s technologies and clinical trials such as payments to contract research organizations (“CRO”) and contract manufacturing organizations (“CMO”), investigators and clinical trial sites that conduct the clinical studies; (4) costs to develop the product candidates, including raw materials and supplies, product testing, depreciation, and facility related expenses, (5) other research and development expenses. Research and development expenses are charged to expense as incurred when these expenditures relate to the Company’s research and development services and have no alternative future uses in accordance with ASC 730, Research and Development.

Accrued research and development expenses

The Company is required to estimate its expenses resulting from its obligations under contracts with vendors, consultants and CROs, in connection with conducting research and development activities. The financial terms of these contracts are subject to negotiations, which vary from contract to contract and may result in payment flows that do not match the periods over which the services are provided under such contracts. The Company reflects research and development expenses in the consolidated financial statements by matching those expenses with the period in which services and efforts are expended. The Company account for these expenses according to the progress of the preclinical or clinical study as measured by the timing of various aspects of the study or related activities and determine accrual estimates through review of the underlying contracts along with discussions with research and other key personnel as to the progress of studies, or other services being conducted. During the course of a study, the Company adjusts its rate of expense recognition if actual results differ from its estimates. Estimates for accrued research and development expenses are classified as accrued expenses on the accompanying consolidated balance sheet.

As of December 31, 2022, the Company has several ongoing clinical studies in various clinical trial stages. The contracts with CRO and CMO are generally cancellable, with notice, at the Company’s option. The Company did not record any accrued expenses related to cancellation of CRO or CMO contracts as of December 31, 2021 and 2022 as the Company did not have any plan to cancel the existing CRO or CMO contracts.

Leases

On January 1, 2022, The Company adopted ASC Topic 842, Leases (the “new lease standard”) by applying the modified retrospective approach to all leases. Under this guidance, lessees are required to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases. The Company elected the package of practical expedients upon transition that permits us to not reassess (1) whether any contracts entered into prior to adoption are or contain leases, (2) the lease classification of existing leases and (3) initial direct costs for any leases that existed prior to adoption, (4) identified leases did not contain non-lease components and require no further allocation of the total lease cost.

The Company determines if an arrangement is or contains a lease at inception. The assessment is based on (1) whether the contract involves the use of a distinct identified asset, (2) whether the Company obtains the right to substantially all the economic benefit from the use of the asset throughout the period and (3) whether the Company has the right to direct the use of the asset. A lease is classified as an operating lease if it does not meet any one of these criteria. The lease classification affects the expense recognition in the statement of income. Operating lease costs are recorded entirely in operating expenses.

ROU assets and lease liabilities are recognized at commencement date based on the present value of the future minimum lease payments over the lease term. The implicit rate within the operating leases is generally not determinable, therefore the Company uses the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Certain leases include options to extend or terminate the lease. An option to extend the lease is considered in connection with determining the ROU asset and lease liability when it is reasonably certain that the Company will exercise that option. An option to terminate is considered unless it is reasonably certain that the Company will not exercise the option. The ROU asset includes any lease payments made but excludes lease incentives and initial direct costs incurred, if any. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term.

Income tax

The Company accounts for income taxes under the liability method. Under the liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and income tax bases of assets and liabilities and are measured using the tax income rates that will be in effect when the differences are expected to reverse. A valuation allowance is recorded if it is more likely than not that some portion or all of a deferred income tax assets will not be realized in the foreseeable future.

The Company evaluates its uncertain tax positions using the provisions of ASC 740-10, Income Taxes, which prescribes a recognition threshold that a tax position is required to meet before being recognized in the financial statements. The Company recognizes in the financial statements the benefit of a tax position which is “more likely than not” to be sustained under examination based solely on the technical merits of the position assuming a review by tax authorities having all relevant information. Tax positions that meet the recognition threshold are measured using a cumulative probability approach, at the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement. It is the Company’s policy to recognize interest and penalties related to unrecognized tax benefits, if any, as a component of income tax expense.

Convertible preferred shares

The preferred shares are redeemable by the holders upon a liquidation event, including a deemed liquidation event, which is outside the sole control of the Company, and as such are presented as mezzanine equity. In accordance with ASC 480-10-S99, each issuance of the convertible preferred shares should be recognized at the issuance date fair value, net of issuance costs. The Company did not incur material issuance cost for any preferred shares issued. The non-cumulative undeclared dividends are not recorded in the consolidated balance sheet as the Company does not have the obligation to pay the cumulative dividend before it is declared by the board of directors.

The Company assesses whether an amendment to the terms of its convertible preferred shares is an extinguishment or a modification using the fair value model. When convertible preferred shares are extinguished, the difference between the fair value of the consideration transferred to the convertible preferred shareholders and the carrying amount of the convertible preferred shares (net of issuance costs) is treated as deemed dividends to the preferred shareholders.

On May 3, 2022, total convertible preferred shares issued and outstanding of 7,820,914 shares were all converted to ordinary shares upon the completion of IPO.

Loss per share

Basic loss per ordinary share is computed by dividing net loss attributable to ordinary shareholders by weighted average number of ordinary shares outstanding during the period.

The Company uses the two-class method whereby net loss is allocated between ordinary shares and other participating securities based on dividends declared (or accumulated) and participating rights in undistributed earnings as if all the earnings for the reporting period had been distributed. The Company’s convertible preferred shares are participating securities as the preferred shares are entitled to receive dividends or distributions on an as converted basis. During periods of loss, the Company allocates no loss to participating securities because the holders of convertible preferred shares have no contractual obligation to share in the losses of the Company.

Diluted net loss per share is calculated by dividing net loss attributable to ordinary shareholders, as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Ordinary equivalent shares include ordinary shares issuable upon the conversion of the convertible preferred shares using the if- converted method, and ordinary shares issuable upon the exercise of share options, using the treasury stock method. Ordinary share equivalents are excluded from the computation of diluted earnings per share if their effects are anti-dilutive. For the periods presented herein, the computation of basic net loss per share using the two-class method is not applicable as the Company is in a net loss position and the participating securities do not have contractual rights and obligations to share in the losses of the Company.

Share-based compensation

Awards Granted to Employees

The Company grants share options to eligible employees, management and directors and accounts for these share-based awards in accordance with ASC 718 Compensation-Stock Compensation. Employees’ share- based awards are measured at the grant date fair value of the awards and recognized as expenses a) immediately at grant date if no vesting conditions are required; or b) using graded vesting method over the requisite service period, which is the vesting period, on a straight-line basis; c) for share-based awards granted with performance condition, using graded vesting method over the period based on the expected milestone achievement dates. Share-based compensation expense is recorded in research and development and general and administrative expenses based on the classification of the work performed by the grantees.

The Company’s determination of the fair value of share option on the date of grant utilized the Binomial Option Pricing Model with the assistance of an independent third-party valuation firm. Grant date fair value was impacted by Belite’s ordinary share price as well as changes in assumptions regarding a number of subjective variables which included, but were not limited to, the expected term that options remained outstanding, the expected ordinary share price volatility over the term of the option awards, risk-free interest rates, and expected dividends.

To the extent the required vesting conditions are not met resulting in the forfeiture of the share-based awards, previously recognized compensation expense relating to those awards are reversed.

Awards Granted to Non-Employees

The Company has accounted for equity instruments issued to non-employees in accordance with ASU No. 2018-07, Compensation — Stock Compensation (Topic 718): Improvements to Nonemployee Share- Based Payment Accounting.

The Company recognizes share-based compensation cost for equity awards to non-employees with a performance condition at the fixed fair value on date of grant over the period based on the expected milestone achievement dates as the derived service period (usually the vesting period), on a straight-line basis. The Company considers the probable outcome of that performance condition when determines share-based compensation expenses and will recognize a cumulative true-up adjustment if the probability of the conditions has changed.

Translation of foreign currency financial statements

The functional currency is the local currency of the respective entities. The United States dollar (“$”) is the functional currency of the Company’s entities incorporated in the Cayman Islands, the United States and Hong Kong; the functional currency of the Company’s Australia subsidiary and Shanghai subsidiary are Australian dollar (“AU$”) and Renminbi (“RMB”), respectively.

The reporting currency of the Company is the United States dollar. Accordingly, the financial statements of the foreign subsidiaries are translated at the following exchange rates: assets and liabilities — current rate on balance sheet date; shareholders’ equity — historical rate; income and expenses — weighted average rate during the year. The resulting translation adjustment is reflected in the accumulated other comprehensive loss.

Transactions denominated in other than the functional currencies are recorded at the rate of exchange in effect when the transaction occurs. Gains or losses, resulting from the application of different foreign exchange rates when cash in foreign currency is converted into the entities’ functional currency, or when foreign currency receivable and payable are settled, are credited or charged to income in the period of conversion or settlement. At year-end, the balances of foreign currency monetary assets and liabilities are recorded based on prevailing exchange rates and any resulting gains or losses are included in the consolidated statements of comprehensive loss.

Comprehensive loss

Comprehensive loss represents net loss plus the results of certain changes in shareholders’ deficit during a period from non-owner sources.

Comprehensive loss is defined as the changes in equity of the Company during a period from transactions and other events and circumstances excluding transactions resulting from investments by owners and distributions to owners. Among other disclosures, ASC 220, Comprehensive Income, requires that all items that are required to be recognized under current accounting standards as components of comprehensive loss be reported in a financial statement that is displayed with the same prominence as other financial statements. For each of the periods presented, the Company’s comprehensive loss includes net loss and foreign currency translation adjustments, which are presented in the consolidated statements of comprehensive loss.

Concentration of risks

Concentration of suppliers

The following suppliers accounted for 10% or more of research and development expenses for the years ended December 31, 2020, 2021 and 2022:


Supplier	2020		2021		2022
A		*	$	2,385	$	4,559
B		*		1,213		*
C		776		765		*
D		1,187		*		*
E		448		*		*
F		442		*		*
G		423		*		*

*	Represents less than 10% of research and development expenses for the years ended December 31, 2020, 2021 and 2022.

Concentration of credit risk

As of December 31, 2021 and 2022, the aggregate amount of cash of US$5,889 and US$36,736 respectively, were held at major financial institutions located in the United States, and US$11,455 and US$5,353, respectively, were deposited with major financial institutions located outside the United States. The Company’s cash is maintained in bank deposit accounts that regularly exceed federally insured limits. The Company is exposed to credit risk on its cash in the event of default by the financial institutions to the extent account balances exceed the amount insured by the Federal Deposit Insurance Corporation (“FDIC”). The Company believes that it is not exposed to significant credit risk as its deposits are generally held in financial institutions that management believes to be of high credit quality.

As of December 31, 2022, the Company held cash deposits at Silicon Valley bank in excess of FDIC insured limits and had a substantial majority of its cash and cash equivalents balance held at SVB. On March 10, 2023, SVB was closed by the California Department of Financial Protection and Innovation, and the Federal Deposit Insurance Corporation, or FDIC, was appointed as receiver. No losses were incurred by the Company on deposits that were held at SVB. Management believes that the Company is not currently exposed to significant credit risk as the Company has transferred substantially all of such deposits previously held at SVB to its bank accounts with other larger national banks in the U.S. and other banks outside of the U.S. As of March 29, 2023, the Company has approximately $0.8 million on deposit with SVB and is currently evaluating opening more bank accounts in light of recent events.

Recent Accounting Pronouncements

In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. ASU 2016-13 was subsequently amended by ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, ASU 2019-04 Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, and ASU 2019-05, Targeted Transition Relief. For public entities, ASU 2016-13 and its amendments is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. For all other entities, this guidance and its amendments will be effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is currently evaluating the impact of its pending adoption of ASU 2016-13 on the consolidated financial statements but do not expect this guidance will have a material impact on our consolidated financial statements.

Except as mentioned above, the Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company’s consolidated balance sheets, statements of operations and comprehensive loss and statements of cash flows.

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Current Assets
Cash	$ 42,089	$ 17,344
Prepayments and other current assets.	716	87
Other receivables due from related parties	2
Total current assets	42,807	17,431
Property and equipment, net	541	94
Prepayment for property and equipment	31
Deferred offering costs	0	815
Security deposits	88	8
Operating lease right-of-use asset, net	806
TOTAL ASSETS	44,273	18,348
Current liabilities
Other payable due to related parties		71
Accrued expenses and other liabilities	1,906	1,564
Operating lease liabilities - current	198
Total current liabilities	2,104	1,635
Non-current liabilities
Operating lease liabilities -non - current	668
TOTAL LIABILITIES	2,772	1,635
Commitments and contingencies
Convertible preferred shares
Total convertible preferred shares		31,806
Shareholders' (deficit) equity
Ordinary shares, par value of US$0.0001 per share; 492,179,086 shares authorized; 10,274,403 and 24,898,908 shares issued and outstanding as of December 31, 2021 and 2022, respectively	3	1
Additional paid-in capital	81,761	12,325
Accumulated other comprehensive loss	(392)	(196)
Accumulated deficit	(39,871)	(27,223)
Total shareholders' (deficit) equity	41,501	(15,093)
TOTAL LIABILITIES, CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' (DEFICIT) EQUITY	$ 44,273	18,348
Series A convertible preferred shares
Convertible preferred shares
Total convertible preferred shares		8,806
Series B convertible preferred shares
Convertible preferred shares
Total convertible preferred shares		$ 23,000

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2022

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

Principle of consolidation

The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated on consolidation.

Use of estimates

Risk and uncertainties

Fair value measurements

ASC 820 requires disclosures to be provided for fair value measurements. ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

Level 1 — Observable inputs such as quoted prices for identical instruments in active markets;

Level 2 — Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly;

Level 3 — Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

Cash

Cash deposits placed with banks which are unrestricted as to withdrawal or use.

Deferred offering costs

Property and equipment

Long-lived asset impairment

Segment reporting

Research and development expenses

Accrued research and development expenses

Leases

Income tax

Convertible preferred shares

On May 3, 2022, total convertible preferred shares issued and outstanding of 7,820,914 shares were all converted to ordinary shares upon the completion of IPO.

Loss per share

Basic loss per ordinary share is computed by dividing net loss attributable to ordinary shareholders by weighted average number of ordinary shares outstanding during the period.

Share-based compensation

Awards Granted to Employees

To the extent the required vesting conditions are not met resulting in the forfeiture of the share-based awards, previously recognized compensation expense relating to those awards are reversed.

Awards Granted to Non-Employees

Translation of foreign currency financial statements

Comprehensive loss

Comprehensive loss represents net loss plus the results of certain changes in shareholders’ deficit during a period from non-owner sources.

Concentration of risks

Concentration of suppliers

The following suppliers accounted for 10% or more of research and development expenses for the years ended December 31, 2020, 2021 and 2022:


Supplier	2020		2021		2022
A		*	$	2,385	$	4,559
B		*		1,213		*
C		776		765		*
D		1,187		*		*
E		448		*		*
F		442		*		*
G		423		*		*

*	Represents less than 10% of research and development expenses for the years ended December 31, 2020, 2021 and 2022.

Concentration of credit risk

Recent Accounting Pronouncements

COMMITMENTS AND CONTINGENCIES (Details) $ in Millions		12 Months Ended
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	Feb. 04, 2022 item	Dec. 31, 2022 USD ($)
Columbia License Agreement
COMMITMENTS AND CONTINGENCIES
Number of times license agreement has been amended \| item	5
Extension period		6 months
Aggregate amount obligated to pay on achieving specified development and regulatory approval milestones		$ 20.0
Aggregate amount obligated to pay on achieving on achieving a specified cumulative sales milestone		25.0
Payments made		1.0
Clinical Research Organization (CRO)
COMMITMENTS AND CONTINGENCIES
Remaining contractual costs expected to be incurred in future periods from clinical trials in STGD1		$ 19.1

ORGANIZATION AND BASIS OF PRESENTATION (Tables)

12 Months Ended

Dec. 31, 2022

ORGANIZATION AND BASIS OF PRESENTATION

Schedule of principal subsidiaries


Subsidiaries	Date of incorporation	Place of incorporation	Ownership	Principal activities
Belite Bio Holdings Corp. (“Belite Holding”)	June 10, 2016	The United States of America	100% owned by Belite	Investment holding
Belite Bio, LLC (“Belite USA”)	June 10, 2016	The United States of America	100% owned by Belite Holding	Research and development
RBP4 Pty Ltd (“RBP4”)	August 13, 2018	Australia	100% owned by Belite Holding	Clinical trial activities
Belite Bio (HK) Limited (“Belite HK”)	June 10, 2021	Hong Kong	100% owned by Belite	Investment holding
Belite Bio (Shanghai) Limited (“Belite Shanghai”)	August 12, 2021	China	100% owned by Belite HK	Clinical trial activities

RELATED PARTY TRANSACTIONS - Transactions (Details) - Lin BioScience, Inc - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Research and Development Expense
RELATED PARTY TRANSACTIONS
Amount of transactions	$ 140	$ 183
Professional Service Expense
RELATED PARTY TRANSACTIONS
Amount of transactions			$ 21
Interest Expense
RELATED PARTY TRANSACTIONS
Amount of transactions			$ 17
Reimbursement for Expense
RELATED PARTY TRANSACTIONS
Amount of transactions	$ 32

AUSTRALIA RESEARCH AND DEVELOPMENT TAX INCENTIVE

12 Months Ended

Dec. 31, 2022

AUSTRALIA RESEARCH AND DEVELOPMENT TAX INCENTIVE

AUSTRALIA RESEARCH AND DEVELOPMENT TAX INCENTIVE

10.AUSTRALIA RESEARCH AND DEVELOPMENT TAX INCENTIVE

The Company’s wholly owned subsidiary, RBP4 Pty Ltd, which conducts clinical development activities on behalf of the Company, is eligible under the Australian Research and Development Tax Incentive Program to receive a 43.5% refundable tax incentive from the Australian Taxation Office for qualified research and development expenditures. To be eligible, RBP4 Pty Ltd must have revenue of less than AU$20 million during the reimbursable period and cannot be controlled by income tax exempt entities. The tax incentive is recognized as a reduction to research and development expense when there is reasonable assurance that the tax incentive will be received, the relevant expenditure has been incurred, and the amount can be reliably measured. For the years ended December 31, 2020, 2021 and 2022, $779, $339 and $618, respectively, were recorded in the consolidated statements of operations and comprehensive loss.

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Research and development	$ 891	$ 741
Legal and consulting	287	525
License royalties	272	147
Payroll and Reimbursement	382	56
Other	74	95
Total	$ 1,906	$ 1,564

LEASES - Balance sheet information related to leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022
Assets
Operating lease - ROU assets	$ 806	$ 941
Liabilities
Operating lease liabilities	198
Operating lease liabilities	668
Total	866	$ 941
Depreciation expenses for ROU recognized	$ 134
Weighted average incremental borrowing rate	2.51%
Weighted average remaining lease term	51 months

INCOME TAX - Rates (Details) - USD ($) $ in Thousands	12 Months Ended
INCOME TAX - Rates (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
INCOME TAX
Corporate income tax rate (in percent)	21.00%	21.00%	21.00%
State income tax rate	0.60%	0.30%	0.40%
United States
INCOME TAX
Corporate income tax rate (in percent)	21.00%
California
INCOME TAX
State income tax rate	8.84%
Hong Kong
INCOME TAX
Net operating loss carryforwards	$ 3,111
Hong Kong \| Any assessable profits in excess
INCOME TAX
State income tax rate	16.50%
Australia
INCOME TAX
Corporate income tax rate (in percent)	30.00%
Net operating loss carryforwards	$ 3,491
PRC
INCOME TAX
State income tax rate	25.00%	25.00%	25.00%
Net operating loss carryforwards	$ 39
Cayman Islands
INCOME TAX
Corporate income tax rate (in percent)	0.00%	0.00%	0.00%

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2022

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

14.COMMITMENTS AND CONTINGENCIES

License Agreement with Columbia University

The Company is party to an exclusive license agreement with Columbia University (the “Columbia License Agreement”), which has been amended five times, most recently as of February 4, 2022, under which the Company licenses specified intellectual property from Columbia University. The patent rights licensed to the Company by Columbia University include issued patents with claims that recite a class of compounds directed to covering the Company’s lead compound, Tinlarebant, and specifically recite Tinlarebant. The license agreement requires the Company to make minimum annual royalty payments to Columbia University of specified amounts on each anniversary of the first commercial sale of a licensed product, commencing on the second anniversary of such sale. The Company will also be obligated to pay single-digit earned royalties to Columbia University based on net sales of each licensed product by the Company and its affiliates and sublicensees. The minimum royalty payments will be creditable against the earned royalties accrued during the same calendar year. The license agreement obligates the Company to use commercially reasonable efforts to research, discover, develop and market licensed products for commercial sale and distribution and achieve certain development and regulatory approval milestones within certain timeframes, if certain milestones are achieved. The Company is also obligated to periodically inform Columbia University of its progress in meeting such milestones. The failure to achieve any such milestone would constitute a breach of the Columbia License Agreement. If the Company pays Columbia University the required fee, it will be granted a 6-month extension. In the event that, after completion of Phase I Trials, there are unforeseen changes in clinical or regulatory development that the Company believes would affect the timely achievement of any milestone, it may request an extension from Columbia University for such milestone, which will not be unreasonably withheld or delayed. In the event that Columbia University does not agree to extend the deadlines to meet the milestones, and the Company is in breach for failure to timely meet the milestones or to make milestone or royalty payments, Columbia University may elect to convert the license to a nonexclusive license without the right to sublicense or initiate legal proceedings against third party patent infringers or terminate the license. The Company is also obligated to make payments to Columbia University in an aggregate amount of up to $20 million based on achieving specified development and regulatory approval milestones and in an amount of up to $25 million based on achieving a specified cumulative sales milestone with respect to the first licensed product. In addition, the Company is obligated to pay Columbia University a specified portion of revenue it receives from sublicensees, and a specified portion of revenue received from any sale of a priority review voucher by us or a sublicensee. The Company cannot reasonably estimate whether, when and in what amount any of such payments shall be made, but believe it is in compliance with the terms of the license. From inception through December 31, 2022, the Company has made a payment of $1 million to Columbia University resulting from this license agreement, which was triggered by the completion of its Phase 1 clinical trial.

Clinical Research Organization (CRO)

In the course of normal business operations, the Company has agreements with contract service providers to assist in the performance of clinical trial activities. Such agreements are generally cancellable upon reasonable notice and payment of costs incurred. As of the issuance date of the consolidated financial statements, the remaining contractual costs expected to be incurred in future periods for the Company’s clinical trials in STGD1 is approximately $19.1 million.

Litigation

From time to time, the Company may have certain contingent liabilities that arise in the ordinary course of business activities. The Company accrues a liability for such matters when it is probable that future expenditures will be made, and such expenditures can be reasonably estimated. The Company is not aware of any current pending legal matters or claims.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Long-lived asset impairment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Impairment loss	$ 0	$ 0	$ 0

LEASES - (Details) - USD ($) $ in Thousands	Aug. 15, 2022	Apr. 20, 2022	Dec. 31, 2022	Jan. 01, 2022
Leases
Incremental borrowing rate.	2.64%	2.48%
Operating lease - ROU assets			$ 806	$ 941
Operating lease liabilities			$ 866	$ 941
Taiwan office lease agreement
Leases
Lease term		5 years
Australia office lease agreement
Leases
Lease term	3 years

INCOME TAX

12 Months Ended

Dec. 31, 2022

INCOME TAX

INCOME TAX

9.INCOME TAX

The Company is not subject to income or other taxes in the Cayman Islands. However, subsidiaries are subject to taxes of the jurisdiction where they are located.

Cayman Islands

The Company is incorporated in the Cayman Islands. Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain. Additionally, the Cayman Islands does not impose a withholding tax on payments of dividends to shareholders.

United States

Belite Bio Holdings Corp. and Belite Bio, LLC are subject to U.S. federal corporate income tax at a rate of 21% and state income tax in California at a rate of 8.84%.

Hong Kong

Belite Bio (HK) Limited is subject to Hong Kong profits tax on the taxable income as reported in the respective statutory financial statements adjusted in accordance with the relevant Hong Kong tax laws. The applicable tax rate in Hong Kong is 16.5%.

Australia

RBP4 Pty Ltd is subject to Australia profits tax on the taxable income as reported in their respective statutory financial statements adjusted in accordance with the relevant Australia tax laws. The applicable tax rate in Australia is 30%.

PRC

Provision for PRC corporate income tax is calculated based on the statutory income tax rate of 25% on the assessable income of Belite Shanghai during the years ended December 31, 2020, 2021 and 2022 in accordance with relevant PRC enterprise income tax legislation, interpretations and practices.

No provision for PRC corporate income tax has been made for the years ended December 31,2020, 2021 and 2022 as Belite Shanghai had no such assessable profit for the year then ended.

The Company and its subsidiaries file separate income tax returns. As of December 31, 2022, the tax returns of Belite Bio Holdings Corp. and Belite Bio, LLC for the tax year 2019 to 2021 are subject to examination by United States and states authorities. The tax returns of Belite Bio (HK) Limited for the tax year 2021 is subject to examination by Hong Kong tax authorities. The tax returns of RBP4 Pty Ltd for the tax year 2018 to 2021 are subject to examination by Australia authorities. The tax returns of Belite Shanghai for tax year 2021 is subject to examination by tax authorities. There are currently no pending examinations.

The applicable statutory income tax rate in the Cayman Islands was zero for the Company for the years being reported. Reconciliation between the income tax expense computed by applying the statutory tax rate to loss before income tax and the actual provision for income tax is as follows:

The provision for income taxes is based on the following pretax loss:


	For the years ended December 31,
	2020		2021		2022
United States	$	(331)	$	(413)	$	(1,097)
Other than United States		(5,421)		(9,253)		(11,551)
Total	$	(5,752)	$	(9,666)	$	(12,648)


	For the years ended December 31,
Income Tax Expense	2020		2021		2022
Current	$	1	$	—	$	—
Deferred		—		—		—
Total Income Tax Expense	$	1	$	—	$	—


	For the
	years ended December 31,
	2020			2021			2022
Federal statutory tax rate		21.00	%		21.00	%		21.00	%
Effect of tax rates in foreign jurisdiction		(18.32)	%		(15.85)	%		(9.56)	%
State taxes		0.40	%		0.30	%		0.60	%
Research and development credit		(0.03)	%		(0.33)	%		(3.13)	%
Non-deductible expenses		0.26	%		0.20	%		0.44	%
Changes in valuation allowances		(3.33)	%		(5.32)	%		(9.35)	%
Effective tax rate	$	(0.02)	%	$	0.00	%	$	0.00	%

No reserve for uncertain tax positions was recorded for the years ended December 31, 2020, 2021 and 2022. The Company does not expect that the assessment regarding unrecognized tax positions will materially change over the next 12 months. The Company is not currently under examination by an income tax authority, nor has been notified that an examination is contemplated.

The deferred income tax assets of December 31, 2021 and 2022 consisted of the following:


	As of December 31,
	2021		2022
Deferred income tax assets
Research and development credits	$	86	$	169
Net operating loss carryforwards		1,266		2,398
		1,352		2,567
Valuation allowance		(1,352)		(2,567)
Total net deferred income tax assets	$	—	$	—

Realization of the net deferred tax assets is dependent on factors including future reversals of existing taxable temporary differences and adequate future taxable income, exclusive of reversing deductible temporary differences and tax loss carry forwards. The Company evaluates the potential realization of deferred tax assets on an entity-by-entity basis. As of December 31, 2021 and 2022, the Company and all of its subsidiaries were in cumulative loss position, valuation allowances were provided against deferred tax assets in entities where it was determined it was more likely than not that the benefits of the deferred tax assets will not be realized.

As of December 31, 2021 and 2022, Belite Bio, LLC had U.S. federal and state research and development credit carryforwards of approximately $86 and $169, respectively. The U.S. federal research and development credit will expire from 2039 if not utilized, while the state research and development credit will never expire. Utilization of the research and development credits may be subject to significant annual limitation due to the ownership change limitations provided by the U.S. Internal Revenue Code of 1986 and similar provisions in the State of California’s tax regulations. The annual limitation may result in the expiration of federal research and development credits before utilization.

As of December 31, 2021 and 2022, the Company’s subsidiaries had U.S. net operating loss carryforwards for federal and state tax purpose of $4,512 and $6,670, respectively. If not utilized, the federal and state net operating loss carryforwards incurred before January 1, 2018 will begin to expire in 2036, and the remaining can be carried forward indefinitely but utilization is limited to 80% of the Company’s taxable income in any given tax year based on current federal tax laws. As of December 31, 2022, the Company’s subsidiary had Australia net operating loss carryforwards for tax purpose of $3,491 that do not expire. As of December 31, 2022, the Company’s subsidiaries had Hong Kong net operating loss carryforwards for tax purpose of $3,111 that do not expire. As of December 31, 2022, the Company’s subsidiaries had China net operating loss carryforwards for tax purpose of $39 which will begin to expire starting in 2026.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI https://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

SHARE-BASED COMPENSATION

12 Months Ended

Dec. 31, 2022

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION

7.SHARE-BASED COMPENSATION

On December 17, 2019, the Company adopted a share incentive plan (“2019 Plan”). Under the 2019 Plan, the Company’s Board of Directors has approved that a maximum aggregate number of shares that may be issued pursuant to all awards granted shall be 1,960,080. On December 23, 2020, the Company replaced 2019 Plan with the amended and restated share incentive plan (“2020 Plan”) and increased the maximum number of shares issuable to 4,165,310. The terms of the 2019 Plan and 2020 Plan are substantially the same other than the maximum aggregate number of shares the Company may issue under the respective plan. On March 1, 2021, the Company grant 41,736 shares to non-employees and accounted for equity instruments issued to non-employees in accordance with Accounting Standards Update, or ASU, No. 2018-07, Compensation — Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting.

The Company recognize share-based compensation cost for equity awards to non-employees with a performance condition at the fixed fair value on date of grant over the period based on the expected milestone achievement dates as the derived service period (usually the vesting period), on a straight-line basis. The Company consider the probable outcome of that performance condition when determining share-based compensation expenses and will recognize a cumulative true-up adjustment if the probability of the conditions has changed.

In April 2022, the Company further adopted 2022 Performance Incentive Plan (“2022 Plan”), which is conditional on and effective upon completion of IPO. The initial aggregate amount of ordinary shares that may be issued under the 2022 Plan is 1,748,667, provided that the shares reserved under the 2022 Plan shall automatically increase on the first trading day in January of each calendar year during the term of the 2022 Plan, commencing in January 2023, by an amount equal to (i) four percent (4%) of the total number of ordinary shares issued and outstanding on December 31 of the immediately preceding calendar year or (ii) such lesser number of ordinary shares as may be established by our board of directors.

On April 18, 2022 the Board granted 1,698,667 shares to the management team, employees, and the independent directors. Share options containing only service conditions granted to each grantee under the 2019 Plan, 2020 Plan and 2022 Plan will generally be exercisable upon the grantee renders service to the Company in accordance with a stipulated vesting schedule. Grantees are generally subject to a vesting schedule of no longer than three years, under which the grantee earns an entitlement to vest a certain percentage of his option grants at the end of each month or year of completed service. The share option awards shall expire no more than ten years from their grant dates.

Share options containing both service conditions and performance conditions granted to each grantee under the 2019 Plan, 2020 Plan, and 2022 Plan shall become eligible for vesting upon the occurrence of their applicable performance conditions (including but not limited to the completion of business and operational goals, etc.).

The fair value of options was determined using the Binomial Option Pricing Model, with the assistance from an independent third-party appraiser. The binomial model requires the input of highly subjective assumptions, including the expected volatility, the exercise multiple, the risk-free interest rate and the expected dividend yield. For expected volatility, the Company has made reference to historical volatility of several comparable companies in the same industry. The exercise multiple was estimated as the average ratio of the stock price to the exercise price of when employees would decide to voluntarily exercise their vested share options. As the Company did not have sufficient information of past employee exercise history, the exercise multiple was based on management’s estimation. The risk-free rate for periods within the contractual life of the options is based on the market yield of U.S. Government Notes with a maturity life equal to the remaining maturity life of the options as of the valuation date. The expected dividend yield is based on our expected dividend policy over the contractual life of the options.

The assumptions used to estimate the fair value of the share options on the date of grant are as follows:


	As of December 23,		As of March 1,		As of April 18,
	2020		2021		2022
Risk-free interest rate	0.51	%	0.87	%	2.85	%
Expected volatility range	36.59	%	36.75	%	34.79	%
Exercise multiple	2.8		2.8		2.8
Expected dividend yield	—		—		—

A summary of the Company’s stock option activity under the plans for the years ended December 31, 2020, 2021 and 2022 is presented as follows:


		Weighted		Weighted		Weighted
		Average		Average		Average	Aggregate
	Number of	Exercise		Grant Date		Remaining	Intrinsic
	Options	Price		Fair Value		Term (Years)	Value
Outstanding as of January 1, 2020	1,335,794	$	0.1191	$	2.4720	9.96		3,301
Granted	2,807,381	$	0.4386	$	2.2574	—		—
Exercised	(727,676)	$	0.1191	$	2.4720	—		—
Forfeited or expired	(19,601)	$	0.1191	$	2.4733	—		—
Outstanding as of December 31, 2020	3,395,898	$	0.3832	$	2.2946	9.80		7,834
Granted	41,736	$	4.2254	$	0.4626	—		—
Exercised	(706,406)	$	0.3289	$	2.3311	—		—
Forfeited or expired	(748,667)	$	0.4386	$	2.2574	—		—
Outstanding as of December 31, 2021	1,982,561	$	0.4626	$	2.2571	8.82	$	4,480
Granted	1,698,667	$	6.0	$	2.1191	—		—
Exercised	(31,500)	$	0.1191	$	2.4720	—		—
Forfeited or expired	(73,325)	$	2.6508	$	2.1867	—		—
Outstanding Options, December 31, 2022	3,576,403	$	3.0508	$	2.2782	8.43	$	10,473
Vested and Expected to Vest Options as of December 31, 2022	979,740	$	2.6764	$	2.2713	8.40	$	3,256
Exercisable Options as of December 31, 2022	597,068	$	2.7988	$	2.2703	8.37	$	1,874


	Years ended December 31,
	2020		2021		2022
Research and development	$	77	$	52	$	818
General and administrative		1,286		1,478		665
Total.	$	1,363	$	1,530	$	1,483

As of December 31, 2022, total unrecognized employee share-based compensation, may be adjusted for actual forfeitures occurring in the future for 2019 Plan were $0, 2020 Plan $507 and 2022 Plan $1,131 which are expected to be recognized over a weighted-average period of 0 years, 2.33 years and 1.69 years, respectively.

PREPAYMENTS AND OTHER CURRENT ASSETS (Tables)

12 Months Ended

Dec. 31, 2022

PREPAYMENTS AND OTHER CURRENT ASSETS

Schedule of prepayments and other current assets


	As of December 31,
	2021		2022
Prepayments
Prepaid insurance premiums	$	14	$	497
Other prepayments		50		202
Deductible value-added tax input		23		17
	$	87	$	716

LEASES (Tables)

12 Months Ended

Dec. 31, 2022

LEASES

Schedule of supplemental balance sheet information related to leases


		As of December 31,
	Classification	2022
Assets
Operating lease – ROU assets	Right-of-use assets	$	806

Liabilities
Operating lease liabilities	Current portion	$	198
Operating lease liabilities	Non-current portion		668
Total lease liabilities		$	866

Schedule of minimum lease payments in future periods


	As of December 31,
For the year ending December 31,
2023	$	218
2024		233
2025		216
2026		158
2027		86

Total minimum lease payments	$	911
Less: imputed interest		(45)

Total:	$	866

RELATED PARTY TRANSACTIONS (Tables)

12 Months Ended

Dec. 31, 2022

RELATED PARTY TRANSACTIONS

Schedule of major related parties and their relationships with the Company

The table below sets forth the major related parties and their relationships with the Company as of December 31, 2021 and 2022:


Name of related parties		Relationship with the Company
Lin BioScience, Inc.		The ultimate controlling shareholder of the Company
Lin Bioscience International Ltd.		The shareholder of the Company
Lin BioScience Pty Ltd		Controlled by the ultimate controlling shareholder of the Company

Schedule of related party balances


	As of December 31,
	2021		2022
Due from related parties
Lin BioScience, Inc.	$	—	$	2
Due to related parties
Lin BioScience, Inc.	$	71	$	—

Schedule of related party transactions


	Years ended December 31,
	2020		2021		2022
Lin BioScience, Inc.:
Research and Development Expense	$	—	$	183	$	140
Professional Service Expense	$	21	$	—	$	—
Interest Expense	$	17	$	—	$	—
Reimbursement for Expense	$	—	$	—	$	32

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

12 Months Ended

Dec. 31, 2022

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

5.ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accrued expenses and other current liabilities consist of the following:


	As of December 31,
	2021		2022
Research and development	$	741	$	891
Legal and consulting		525		287
License royalties		147		272
Payroll and Reimbursement		56		382
Other		95		74
	$	1,564	$	1,906

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Segment reporting (Details)	12 Months Ended
	Dec. 31, 2022 segment
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Number of operating segments	1
Number of reportable segments	1

INCOME TAX - Deferred income tax (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Deferred income tax assets
Research and development credits	$ 169	$ 86
Net operating loss carryforwards	2,398	1,266
Total	2,567	1,352
Valuation allowance	(2,567)	(1,352)
Research and development credit carryforwards
Deferred income tax assets
U.S. federal and state credit carryforwards	169	86
U.S. net operating loss carryforwards for federal and state tax purposes	$ 6,670	$ 4,512
Utilization percentage of taxable income for operating loss carried forward indefinitely	80.00%

SUBSEQUENT EVENTS

12 Months Ended

Dec. 31, 2022

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

15.SUBSEQUENT EVENTS

The Company evaluated subsequent events and transactions that occurred after the balance sheet date up to March 31, 2023, the date that the financial statements were issued.

On March 10, 2023, the California Department of Financial Protection and Innovation closed Silicon Valley Bank (“SVB”) and appointed Federal Deposit Insurance Corporation (the “FDIC”) as receiver. On March 12, 2023, the Department of the Treasury, the Federal Reserve, and the FDIC jointly released a statement that depositors at SVB would have access to their funds, even those in excess of the standard FDIC insurance limits, under a systemic risk exception. As of March 10, 2023, the Company had a substantial majority of its cash and cash equivalents balance held at SVB. The Company regained access to its deposits at SVB on March 13, 2023, and under the instruction of its board of directors, the Company has transferred substantially all of such deposits previously held at SVB to its bank accounts with other larger national banks in the U.S. and other banks outside of the U.S., and do not anticipate any material impact on its financial condition or operations as a result of SVB’s circumstances.

CONVERTIBLE PREFERRED SHARES - Components (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
CONVERTIBLE PREFERRED SHARES
Preferred Shares Authorized		7,820,914
Preferred Shares Issued		7,820,914
Preferred Shares Outstanding		7,820,914
Carrying Value		$ 31,806
Liquidation Value		$ 31,806
Common Stock Issuable Upon Conversion		7,820,914
Series A convertible preferred shares
CONVERTIBLE PREFERRED SHARES
Preferred Shares Authorized	0	2,377,642
Preferred Shares Issued	0	2,377,642
Preferred Shares Outstanding	0	2,377,642
Carrying Value		$ 8,806
Liquidation Value		$ 8,806
Common Stock Issuable Upon Conversion		2,377,642
Series B convertible preferred shares
CONVERTIBLE PREFERRED SHARES
Preferred Shares Authorized	0	5,443,272
Preferred Shares Issued	0	5,443,272
Preferred Shares Outstanding	0	5,443,272
Carrying Value		$ 23,000
Liquidation Value		$ 23,000
Common Stock Issuable Upon Conversion		5,443,272

- Definition

Carrying amount, attributable to parent, of an entity's issued and outstanding stock which is not included within permanent equity. Temporary equity is a security with redemption features that are outside the control of the issuer, is not classified as an asset or liability in conformity with GAAP, and is not mandatorily redeemable. Includes any type of security that is redeemable at a fixed or determinable price or on a fixed or determinable date or dates, is redeemable at the option of the holder, or has conditions for redemption which are not solely within the control of the issuer. Includes stock with a put option held by an ESOP and stock redeemable by a holder only in the event of a change in control of the issuer.

+ References + Details

AUSTRALIA RESEARCH AND DEVELOPMENT TAX INCENTIVE (Details) - RBP4 Pty Ltd $ in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2022 USD ($)	Dec. 31, 2022 AUD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
AUSTRALIA RESEARCH AND DEVELOPMENT TAX INCENTIVE
Refundable tax incentive (in percent)	43.50%	43.50%
Maximum revenue during reimbursable period		$ 20
Tax incentive	$ 618		$ 339	$ 779

RELATED PARTY TRANSACTIONS - Balances (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
RELATED PARTY TRANSACTIONS
Due from related parties	$ 2
Due to related parties		$ 71
Lin BioScience, Inc
RELATED PARTY TRANSACTIONS
Due from related parties	$ 2
Due to related parties		$ 71

- Definition

The aggregate amount of receivables to be collected from related parties where one party can exercise control or significant influence over another party; including affiliates, owners or officers and their immediate families, pension trusts, and so forth, at the financial statement date. which are usually due within one year (or one business cycle).

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(C))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section 45
-Paragraph 1
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=124098289&loc=d3e6676-107765

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

- Definition

Carrying amount as of the balance sheet date of obligations due all related parties. For classified balance sheets, represents the current portion of such liabilities (due within one year or within the normal operating cycle if longer).

+ References

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-Name Accounting Standards Codification
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+ Details

INCOME TAX (Tables)

12 Months Ended

Dec. 31, 2022

INCOME TAX

Schedule of reconciliation between the income tax expense computed by applying the statutory tax rate to loss before income tax


	For the
	years ended December 31,
	2020			2021			2022
Federal statutory tax rate		21.00	%		21.00	%		21.00	%
Effect of tax rates in foreign jurisdiction		(18.32)	%		(15.85)	%		(9.56)	%
State taxes		0.40	%		0.30	%		0.60	%
Research and development credit		(0.03)	%		(0.33)	%		(3.13)	%
Non-deductible expenses		0.26	%		0.20	%		0.44	%
Changes in valuation allowances		(3.33)	%		(5.32)	%		(9.35)	%
Effective tax rate	$	(0.02)	%	$	0.00	%	$	0.00	%

Schedule of deferred income tax assets


	As of December 31,
	2021		2022
Deferred income tax assets
Research and development credits	$	86	$	169
Net operating loss carryforwards		1,266		2,398
		1,352		2,567
Valuation allowance		(1,352)		(2,567)
Total net deferred income tax assets	$	—	$	—

PROPERTY AND EQUIPMENT, NET

12 Months Ended

Dec. 31, 2022

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET

4.PROPERTY AND EQUIPMENT, NET

Property and equipment consist of the following:


	As of December 31,
	2021		2022
Laboratory equipment	$	141	$	368
Transportation equipment		—		54
Office equipment		—		23
Leasehold improvements		—		187
Less: accumulated depreciation		(47)		(91)
Total	$	94	$	541

Depreciation expenses recognized during the years ended December 31, 2020, 2021 and 2022, were approximately $17, $30 and $64 respectively.

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2022

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Schedule of components of accrued expenses and other current liabilities

Accrued expenses and other current liabilities consist of the following:


	As of December 31,
	2021		2022
Research and development	$	741	$	891
Legal and consulting		525		287
License royalties		147		272
Payroll and Reimbursement		56		382
Other		95		74
	$	1,564	$	1,906

SHARE-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2022

SHARE-BASED COMPENSATION

Schedule of assumptions used to estimate the fair value of the share options on the date of grant


	As of December 23,		As of March 1,		As of April 18,
	2020		2021		2022
Risk-free interest rate	0.51	%	0.87	%	2.85	%
Expected volatility range	36.59	%	36.75	%	34.79	%
Exercise multiple	2.8		2.8		2.8
Expected dividend yield	—		—		—

Summary of stock option activity under the plans


		Weighted		Weighted		Weighted
		Average		Average		Average	Aggregate
	Number of	Exercise		Grant Date		Remaining	Intrinsic
	Options	Price		Fair Value		Term (Years)	Value
Outstanding as of January 1, 2020	1,335,794	$	0.1191	$	2.4720	9.96		3,301
Granted	2,807,381	$	0.4386	$	2.2574	—		—
Exercised	(727,676)	$	0.1191	$	2.4720	—		—
Forfeited or expired	(19,601)	$	0.1191	$	2.4733	—		—
Outstanding as of December 31, 2020	3,395,898	$	0.3832	$	2.2946	9.80		7,834
Granted	41,736	$	4.2254	$	0.4626	—		—
Exercised	(706,406)	$	0.3289	$	2.3311	—		—
Forfeited or expired	(748,667)	$	0.4386	$	2.2574	—		—
Outstanding as of December 31, 2021	1,982,561	$	0.4626	$	2.2571	8.82	$	4,480
Granted	1,698,667	$	6.0	$	2.1191	—		—
Exercised	(31,500)	$	0.1191	$	2.4720	—		—
Forfeited or expired	(73,325)	$	2.6508	$	2.1867	—		—
Outstanding Options, December 31, 2022	3,576,403	$	3.0508	$	2.2782	8.43	$	10,473
Vested and Expected to Vest Options as of December 31, 2022	979,740	$	2.6764	$	2.2713	8.40	$	3,256
Exercisable Options as of December 31, 2022	597,068	$	2.7988	$	2.2703	8.37	$	1,874

Schedule of share-based compensation expense


	Years ended December 31,
	2020		2021		2022
Research and development	$	77	$	52	$	818
General and administrative		1,286		1,478		665
Total.	$	1,363	$	1,530	$	1,483

ORDINARY SHARES

12 Months Ended

Dec. 31, 2022

ORDINARY SHARES

ORDINARY SHARES

11.ORDINARY SHARES

As of December 31, 2021 and 2022 the Company was authorized to issue 492,179,086 shares of $0.0001 par value ordinary shares. Holders of the Company’s ordinary shares are entitled to dividends, if and when, declared by the board of directors of the Company and after any convertible preferred share dividends are fully paid. The holder of each share of common stock is entitled to one vote. As of December 31, 2022, no dividends were declared.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-URI https://asc.fasb.org/topic&trid=2208762

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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+ Details

CONVERTIBLE PREFERRED SHARES (Tables)

12 Months Ended

Dec. 31, 2022

CONVERTIBLE PREFERRED SHARES

Schedule of components of convertible preferred share

Convertible preferred share consisted of the following as of December 31, 2021 (in thousands, except share):


	December 31, 2021
								Common
		Preferred						Stock
	Preferred	Shares						Issuable
	Shares	Issued and		Carrying		Liquidation		Upon
	Authorized	Outstanding		Value		Value		Conversion
Series A Preferred Shares	2,377,642	$	2,377,642	$	8,806	$	8,806	2,377,642
Series B Preferred Shares	5,443,272		5,443,272		23,000		23,000	5,443,272
Total	7,820,914		7,820,914		31,806		31,806	7,820,914

	December 31, 2022
Series A Preferred Shares	—	$	—	$	—	$	—	—
Series B Preferred Shares	—		—		—		—	—
Total	—		—		—		—	—

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
Foreign currency translation adjustments tax	$ 0	$ 0	$ 0

RELATED PARTY TRANSACTIONS (Details) - USD ($)				1 Months Ended	12 Months Ended
RELATED PARTY TRANSACTIONS (Details) - USD ($)	Nov. 01, 2022	Jul. 01, 2021	Jul. 01, 2020	Jul. 31, 2019	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
RELATED PARTY TRANSACTIONS
Proceeds received							$ 131,000
Repayments made							2,450,000
Lin BioScience, Inc
RELATED PARTY TRANSACTIONS
Proceeds received							0
Repayments made							690,000
Lin BioScience, Inc \| LBS-009 R&D services agreement
RELATED PARTY TRANSACTIONS
Percentage of service fee on actual costs			110.00%
Lin BioScience, Inc \| LBS-008 R&D services agreement
RELATED PARTY TRANSACTIONS
Percentage of service fee on actual costs		110.00%	110.00%
Lin BioScience, Inc \| LBS-007 R&D service agreement
RELATED PARTY TRANSACTIONS
Percentage of service fee on actual costs	110.00%
Amount of transactions					$ 32,000
Lin BioScience, Inc \| Research and Development Expense
RELATED PARTY TRANSACTIONS
Amount of transactions					$ 140,000	$ 183,000
Lin Bioscience International Ltd
RELATED PARTY TRANSACTIONS
Interest free loan period				1 year
Proceeds received							0
Repayments made							1,180,000
Lin BioScience Pty Ltd
RELATED PARTY TRANSACTIONS
Proceeds received							131,000
Repayments made							$ 580,000

SHARE-BASED COMPENSATION - Stock option activity (Details) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
	Mar. 01, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Number of Options
Granted	41,736
Share options
Number of Options
Outstanding as of beginning		1,982,561	3,395,898	1,335,794
Granted		1,698,667	41,736	2,807,381
Exercised		(31,500)	(706,406)	(727,676)
Forfeited or expired		(73,325)	(748,667)	(19,601)
Outstanding Options, ending		3,576,403	1,982,561	3,395,898	1,335,794
Vested and Expected to Vest Options as of December 31, 2022		979,740
Exercisable Options as of December 31, 2022		597,068
Weighted Average Exercise Price
Outstanding as of beginning		$ 0.4626	$ 0.3832	$ 0.1191
Granted		6.0	4.2254	0.4386
Exercised		0.1191	0.3289	0.1191
Forfeited or expired		2.6508	0.4386	0.1191
Outstanding Options, ending		3.0508	0.4626	0.3832	$ 0.1191
Vested and Expected to Vest Options as of December 31, 2022		2.6764
Exercisable Options as of December 31, 2022		2.7988
Weighted Average Grant Date Fair Value
Outstanding as of beginning		2.2571	2.2946	2.4720
Granted		2.1191	0.4626	2.2574
Exercised		2.4720	2.3311	2.4720
Forfeited or expired		2.1867	2.2574	2.4733
Outstanding Options, ending		2.2782	$ 2.2571	$ 2.2946	$ 2.4720
Vested and Expected to Vest Options as of December 31, 2022		2.2713
Exercisable Options as of December 31, 2022		$ 2.2703
Weighted Average Remaining Term (Years)
Outstanding Options		8 years 5 months 4 days	8 years 9 months 25 days	9 years 9 months 18 days	9 years 11 months 15 days
Vested and Expected to Vest Options as of December 31, 2022		8 years 4 months 24 days
Exercisable Options as of December 31, 2022		8 years 4 months 13 days
Aggregate Intrinsic Value
Outstanding Options		$ 10,473	$ 4,480	$ 7,834	$ 3,301
Vested and Expected to Vest Options as of December 31, 2022		3,256
Exercisable Options as of December 31, 2022		$ 1,874

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration of risks (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Mar. 29, 2023
Concentration of risks
Research and development	$ 8,869	$ 7,419	$ 3,688
Cash	42,089	17,344
Silicon Valley Bank \| Subsequent Event
Concentration of risks
Cash deposit				$ 800
UNITED STATES
Concentration of risks
Cash	36,736	5,889
Non-US
Concentration of risks
Cash	5,353	11,455
Research and Development Expense \| Supplier concentration risk \| A
Concentration of risks
Research and development	$ 4,559	2,385
Research and Development Expense \| Supplier concentration risk \| B
Concentration of risks
Research and development		1,213
Research and Development Expense \| Supplier concentration risk \| C
Concentration of risks
Research and development		$ 765	776
Research and Development Expense \| Supplier concentration risk \| D
Concentration of risks
Research and development			1,187
Research and Development Expense \| Supplier concentration risk \| E
Concentration of risks
Research and development			448
Research and Development Expense \| Supplier concentration risk \| F
Concentration of risks
Research and development			442
Research and Development Expense \| Supplier concentration risk \| G
Concentration of risks
Research and development			$ 423

NET LOSS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2022

NET LOSS PER SHARE

Schedule of calculation of basic and diluted net loss per share


	Years ended December 31,
	2020		2021		2022
Numerator:
Net loss attributable to ordinary shareholders	$	(5,753)	$	(9,666)	$	(12,648)
Denominator:
Weighted average number of ordinary shares outstanding – basic and diluted		8,790,397		9,569,932		19,976,596
Net loss per share – basic and diluted	$	(0.65)	$	(1.01)	$	(0.63)

Schedule of potentially dilutive securities that have not been included in the calculation of diluted net loss per share as their inclusion would be anti-dilutive


	Years ended December 31,
	2020	2021	2022
Convertible preferred shares	7,820,914	7,820,914	—
Outstanding share options	3,395,898	1,982,561	3,576,403
Total	11,216,812	9,803,475	3,576,403

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2022

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Schedule of suppliers accounted for 10% or more of research and development expenses


Supplier	2020		2021		2022
A		*	$	2,385	$	4,559
B		*		1,213		*
C		776		765		*
D		1,187		*		*
E		448		*		*
F		442		*		*
G		423		*		*

*	Represents less than 10% of research and development expenses for the years ended December 31, 2020, 2021 and 2022.

SHARE-BASED COMPENSATION - Fair value assumptions (Details) - Share options - $ / shares	Apr. 18, 2022	Mar. 01, 2021	Dec. 23, 2020
SHARE-BASED COMPENSATION
Risk-free interest rate	2.85%	0.87%	0.51%
Expected volatility range	34.79%	36.75%	36.59%
Exercise multiple	$ 2.8	$ 2.8	$ 2.8

INCOME TAX - Tax rate to provision reconciliation (Details)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Reconciliation between the income tax expense computed by applying the statutory tax rate to loss before income tax and the actual provision for income tax
Federal statutory tax rate	21.00%	21.00%	21.00%
Effect of tax rates in foreign jurisdiction	(9.56%)	(15.85%)	(18.32%)
State taxes	0.60%	0.30%	0.40%
Research and development credit	(3.13%)	(0.33%)	(0.03%)
Non-deductible expenses	0.44%	0.20%	0.26%
Changes in valuation allowances	(9.35%)	(5.32%)	(3.33%)
Effective tax rate	0.00%	0.00%	(0.02%)

LEASES - Minimum lease payments in future periods (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Jan. 01, 2022
Minimum lease payments in future periods
2023	$ 218
2024	233
2025	216
2026	158
2027	86
Total minimum lease payments	911
Less: imputed interest	(45)
Total:	$ 866	$ 941

PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Property Plant and Equipment
Less: accumulated depreciation	$ (91)	$ (47)
Total	541	94
Depreciation expenses	64	30	$ 17
Laboratory equipment
Property Plant and Equipment
Property and equipment	368	$ 141
Transportation equipment
Property Plant and Equipment
Property and equipment	54
Office equipment
Property Plant and Equipment
Property and equipment	23
Leasehold improvements
Property Plant and Equipment
Property and equipment	$ 187

PREPAYMENTS AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Prepayments
Prepaid insurance premiums	$ 497	$ 14
Other prepayments	202	50
Deductible value-added tax input	17	23
Total	$ 716	$ 87