Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Jun. 26, 2014 | Jun. 30, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'FAB Universal Corp. | ' | ' |
Entity Central Index Key | '0001074909 | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 20,805,860 | ' |
Entity Public Float | ' | ' | $64,382,003 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
CURRENT ASSETS: | ' | ' |
Cash | $99,546,530 | $19,671,937 |
Restricted cash | 1,651,800 | ' |
Accounts receivable, net | 7,554,919 | 6,927,045 |
Advances to suppliers, net | 81,500 | 154,770 |
Inventory | 686,067 | 5,207,008 |
Deferred tax assets, current | 2,830,200 | 1,771,799 |
Other current assets | 591,194 | 979,021 |
Total current assets | 112,942,210 | 34,711,580 |
Property and equipment, net | 16,574,131 | 16,720,637 |
Goodwill | 62,092,932 | 60,652,957 |
Intangible assets, net | 23,903,476 | 27,875,748 |
Deferred tax assets, non-current | 5,227,865 | 3,346,166 |
Long-term deposits | 20,092,845 | 24,488,131 |
Total assets | 240,833,459 | 167,795,219 |
CURRENT LIABILITIES: | ' | ' |
Short-term bank loans | 6,276,842 | 2,072,619 |
Accounts payable | 3,309,610 | 6,471,270 |
Accrued expenses | 4,209,753 | 3,077,785 |
Deferred revenue | 15,457,102 | 8,250,402 |
Taxes payable | 2,608,821 | 1,603,821 |
Notes Payable | 1,651,801 | ' |
Contingent liability | 1,238,850 | ' |
Due to related parties | 122,596 | 41,341 |
Other payable | 1,976,119 | 1,910,378 |
Total current liabilities | 36,851,494 | 23,427,616 |
Long-term deposits from customers | 2,244,797 | 2,474,604 |
Deferred revenue | 25,432,654 | 7,923,450 |
Long-term bond payable | 16,518,005 | ' |
Long-term payables | ' | 39,204 |
Total liabilities | 81,046,950 | 33,864,874 |
COMMITEMENTS AND CONTINGENCIES | ' | ' |
STOCKHOLDERS' EQUITY | ' | ' |
Preferred Stock | ' | ' |
Common stock | 20,806 | 20,469 |
Additional paid-in capital | 207,903,478 | 206,786,139 |
Accumulated other comprehensive income | 5,469,380 | 1,384,365 |
Accumulated deficit | -53,607,155 | -74,260,628 |
Total stockholders' equity | 159,786,509 | 133,930,345 |
Total liabilities and stockholders' equity | $240,833,459 | $167,795,219 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED BALANCE SHEETS [Abstract] | ' | ' |
Allowance for doubtful accounts | $14,000 | $14,000 |
Preferred Stock, par value per share | $0.00 | $0.00 |
Preferred Stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred Stock, shares issued | 290 | 290 |
Preferred Stock, shares outstanding | 290 | 290 |
Common stock, par value per share | $0.00 | $0.00 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 20,805,860 | 20,468,860 |
Common stock, shares outstanding | 20,805,860 | 20,468,860 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | ' | ' |
Revenue | $110,873,419 | $27,458,730 |
Cost of Revenue | 63,459,542 | 16,439,641 |
Gross Profit | 47,413,877 | 11,019,089 |
OPERATING EXPENSES | ' | ' |
Selling expenses | 4,712,444 | 2,217,635 |
General and administrative | 10,963,845 | 8,472,478 |
Consulting fees | 1,555,990 | 2,812,075 |
Research and development | 302,361 | 269,562 |
Total Expenses | 17,534,640 | 13,771,750 |
Income (loss) from continuing operations | 29,879,237 | -2,752,661 |
OTHER INCOME (EXPENSE): | ' | ' |
Loss on disposal of assets | ' | -32,502 |
Interest income | 168,221 | 284 |
Interest expense | -1,423,545 | -23,304 |
Other income (expense) | -1,430,047 | -23,614 |
Total Other Income (Expense) | -2,685,371 | -79,136 |
Income (loss) from continuing operations before income taxes | 27,193,866 | -2,831,797 |
Income tax expense | 6,540,393 | 1,350,704 |
Net income (loss) from continuing operations | 20,653,473 | -4,182,501 |
Net income (loss) from discontinued operations, net of tax | ' | 178,276 |
Net Income (loss) | 20,653,473 | -4,004,225 |
Other comprehensive income | ' | ' |
Foreign Currency translation gain | 4,085,015 | 1,384,365 |
COMPREHENSIVE INCOME (LOSS) | $24,738,488 | ($2,619,860) |
BASIC AND DILUTED INCOME (LOSS) PER COMMON SHARE FROM CONTINUING OPERATIONS | $0.99 | ($0.36) |
BASIC AND DILUTED INCOME (LOSS) PER COMMON SHARE FROM DISCONTINUED OPERATIONS | ' | $0.02 |
BASIC AND DILUTED INCOME (LOSS) PER COMMON SHARE | $0.99 | ($0.34) |
BASIC AND DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | 20,757,353 | 11,779,195 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income [Member] | Accumulated Deficit [Member] |
Balance at Dec. 31, 2011 | ' | ' | $8,126 | $84,024,736 | ' | ($70,256,403) |
Balance, shares at Dec. 31, 2011 | ' | ' | 8,125,530 | ' | ' | ' |
Stock issued for consulting services | ' | ' | 479 | 953,025 | ' | ' |
Stock issued for consulting services, shares | ' | ' | 479,169 | ' | ' | ' |
Stock issued upon exercise of options for services | ' | ' | 1,222 | 4,158,578 | ' | ' |
Stock issued upon exercise of options for services, shares | ' | ' | 1,221,818 | ' | ' | ' |
Stock Issued upon conversion of warrants | ' | ' | 357 | 1,108,566 | ' | ' |
Stock Issued upon conversion of warrants, shares | ' | ' | 356,992 | ' | ' | ' |
Acquisition of Digital Entertainment International | ' | ' | 10,282 | 118,296,017 | ' | ' |
Acquisition of Digital Entertainment International, shares | 10,282,611 | ' | 10,282,611 | ' | ' | ' |
Fractional share adjustment with the 1 for 12 reverse stock split | ' | ' | 3 | -3 | ' | ' |
Fractional share adjustment with the 1 for 12 reverse stock split, shares | 2,739 | ' | 2,740 | ' | ' | ' |
Compensation for vested stock options | ' | ' | ' | 5,086 | ' | ' |
Spin-Off of Future Healthcare of America | ' | ' | ' | -1,759,866 | ' | ' |
Foreign currency translation gain | ' | ' | ' | ' | 1,384,365 | ' |
Net income (loss) | -4,004,225 | ' | ' | ' | ' | -4,004,225 |
Balance at Dec. 31, 2012 | 133,930,345 | ' | 20,469 | 206,786,139 | 1,384,365 | -74,260,628 |
Balance, shares at Dec. 31, 2012 | ' | ' | 20,468,860 | ' | ' | ' |
Stock issued for consulting services | ' | ' | 337 | 693,543 | ' | ' |
Stock issued for consulting services, shares | ' | ' | 337,000 | ' | ' | ' |
Stock issued upon exercise of options for services, shares | ' | ' | ' | ' | ' | ' |
Compensation for vested stock options | ' | ' | ' | 423,796 | ' | ' |
Foreign currency translation gain | ' | ' | ' | ' | 4,085,015 | ' |
Net income (loss) | 20,653,473 | ' | ' | ' | ' | 20,653,473 |
Balance at Dec. 31, 2013 | $159,786,509 | ' | $20,806 | $207,903,478 | $5,469,380 | ($53,607,155) |
Balance, shares at Dec. 31, 2013 | ' | ' | 20,805,860 | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Cash Flows from Operating Activities | ' | ' |
Net income (loss) from continuing operations | $20,653,473 | ($4,182,501) |
Net income from discontinued operations | ' | 178,276 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ' | ' |
Loss on disposal of PPE and leasehold improvements | ' | 435,183 |
Gain on sale of equipment | ' | -6,000 |
Stock issued to employees and consultants | 329,600 | 5,113,304 |
Non-cash compensation - options vested | 423,796 | 5,086 |
Recovery of doubtful accounts | ' | -1,612 |
Deferred tax benefit | -2,747,056 | -609,986 |
Contingent loss | 1,219,691 | ' |
Depreciation and amortization expense | 6,887,986 | 1,972,047 |
Change in assets and liabilities: | ' | ' |
Accounts receivable | -426,976 | -64,441 |
Prepaid expenses | 362,362 | 117,453 |
Inventory | 4,601,158 | -1,305,928 |
Accounts payable | -3,285,173 | 661,935 |
Accrued expense | 1,408,638 | 528,309 |
Taxes payable | 943,213 | -916,504 |
Deferred revenue | 24,032,521 | 6,839,129 |
Net Cash Provided by continuing operations | 54,403,233 | 8,763,750 |
Net Cash Provided by discontinued operations | ' | 100,071 |
Net Cash Provided by Operating Activities | 54,403,233 | 8,863,821 |
Cash Flows from Investing Activities: | ' | ' |
Purchase of property and equipment | -658,374 | -420,881 |
Cash of discontinued operations | ' | 129,445 |
Cash acquired from Acquisition of DEI (FAB) | ' | 13,413,658 |
Proceeds from sale of property and equipment | ' | 6,000 |
Return (payment) of long-term deposits | 5,190,125 | -4,880,390 |
Purchase of copyrights | -895,001 | ' |
Net Cash Provided by Investing Activities | 3,636,750 | 8,247,832 |
Cash Flows from Financing Activities: | ' | ' |
Issuance of common stock | ' | 1,108,923 |
Increase in restricted cash | -1,626,254 | ' |
Proceeds from long-term bond offering | 16,262,542 | ' |
Proceeds from related party | 80,121 | ' |
Proceeds from short term loan | 6,179,766 | ' |
Proceeds from notes payable | 1,626,254 | 593,881 |
Payments of short-term loans | -2,430,988 | -218,766 |
Net Cash Provided by Financing Activities | 20,091,441 | 1,484,038 |
Effect of Exchange Rate Change on Cash | 1,743,169 | 168,926 |
Net Increase in Cash | 79,874,593 | 18,764,617 |
Cash at Beginning of Year | 19,671,937 | 907,320 |
Cash at the end of Year | 99,546,530 | 19,671,937 |
Supplemental Disclosures of Cash Flow Information | ' | ' |
Cash paid for interest expense | 195,411 | 38,582 |
Cash paid for income taxes | $9,240,810 | $1,732,050 |
ORGANIZATION_AND_BASIS_OF_PRES
ORGANIZATION AND BASIS OF PRESENTATION | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
ORGANIZATION AND BASIS OF PRESENTATION [Abstract] | ' | ||||
ORGANIZATION AND BASIS OF PRESENTATION | ' | ||||
NOTE 1 - ORGANIZATION AND BASIS OF PRESENTATION | |||||
FAB Universal Corp. ("Parent", "Company"), a Colorado corporation was organized on July 1, 1998. The Company operates in three segments, Wholesale, Retail and Digital Media Services. The Wholesale segment engages primarily in the sale of audio-visual products as well as books and magazines to retail businesses. The Retail segment conducts its business through our retail stores, selling copyright protected audio and video products, including CDs, VCDs, DVDs, books, magazines and portable electronic devices. The Digital Media Services segment licenses its multi-year programs for our FAB brand. It also includes the revenue share for advertising, and includes the services provided by our podcast hosting, content management tools and advertising services. (See Note 2) On February 27, 2007, the Company organized Wizzard Acquisition Corp., a Pennsylvania corporation, to acquire and dissolve into the operations of Webmayhem, Inc. ("Libsyn", "Libsyn Media"), a Pennsylvania corporation, in a transaction accounted for as a purchase. Libsyn is a wholly owned subsidiary of the Company. | |||||
On September 26, 2012, (the "Closing") Parent purchased all of the issued and outstanding shares of Digital Entertainment International Ltd. ("DEI"), a company incorporated under the law of the Hong Kong Special Administrative Region, in a transaction accounted for as a purchase. The accompanying consolidated financial statements include the financial statements of DEI; its wholly owned subsidiary, Beijing Dingtai Guanqun Culture Co., Ltd. ("DGC"); Beijing FAB Culture Media Co., Ltd. ("FAB Media"), which is a variable interest entity ("VIE"), and Beijing FAB Digital Entertainment Products Co., Ltd. ("FAB Digital"), a wholly owned subsidiary of FAB Media. | |||||
DEI is a holding company and conducts its business through its wholly owned subsidiary, DGC, which is a wholly foreign-owned enterprise ("WFOE") with limited liability incorporated in the PRC in March 2011. DGC has entered into a series of contractual agreements with the owners of FAB Media. . On March 10, 2014, the owners of FAB Media injected additional $653,200 (RMB 4 million) into FAB Media, which will be accounted for as additional paid-in capital in consolidation. | |||||
DEI, through its wholly owned subsidiary and its VIE, is engaged in marketing and distributing various officially licensed digital entertainment products under the "FAB" brand throughout the PRC, including but not limited to audiovisual products such as digital music files, Compact Discs, Video Compact Discs and Digital Video Disks as well as books, magazines, mobile phone accessories and cameras. DEI's products and services are primarily distributed through its flagship stores, wholesale services, proprietary "FAB" kiosks, and online virtual stores. | |||||
FAB Digital is a wholly owned subsidiary of FAB Media and specializes in the distribution of entertainment and audio visual products through its two flagship stores in Beijing as well as its online stores. Beijing Jinglvtong Travel and Science Technology Co., Ltd., which is fully owned by FAB Digital, changed to Beijing FAB Huzhong Times Technology Co., Ltd. in May 2013, and the name was changed again to Beijing FAB Interactive Culture Media Co., Ltd. ("BFICM") in December 2013. | |||||
In November 2013, three subsidiaries of DGC were incorporated in PRC with a registered capital of RMB 1 million each. These three organizations are each 100% owned by DGC and they are: Beijing FAB Vast Cosmos Technology Co. Ltd. ("BFVCT"), Beijing FAB Wide Spread Culture Development Co., Ltd. ("BFCD") and Beijing FAB Prosperous Trading Co., Ltd. ("BFPT"). In December 2013, FAB Entertainment Corp., a California Corporation, which is also fully owned by DGC, was formed. These four companies had no operations in 2013 and were formed for the purpose of developing international business. | |||||
In June 2012, a series of contractual arrangements were entered into between DGC, FAB Media and the individual shareholders of FAB Media. Such arrangements include an Exclusive Service Agreement; an Equity Pledge Agreement; a Call Option Agreement; and a Shareholders' Voting Right Proxy Agreement. | |||||
Pursuant to these agreements, DGC has the exclusive right to provide to FAB Media consulting services related to business operation and management. The key terms of these agreements include: | |||||
1) | |||||
DGC has the sole discretion to make all operating and business decisions for FAB Media on behalf of the equity owners, including business operations, policies and management, approving all matters requiring shareholder approval; | |||||
2) | |||||
FAB Media has agreed to pay all of the operating costs incurred by DGC, and transfers 100% of the income earned to DGC; DGC also has the right to determine the amount of the fees it will receive; | |||||
3) | |||||
During the term of these agreements, DGC will retain the rights to the intellectual properties if they are created by DGC; | |||||
4) | |||||
FAB Media may not enter into any other agreements with any third party to receive consulting service without the prior consent of DGC; | |||||
5) | |||||
The equity owners pledge their respective equity interests in the FAB Media as a guarantee for the payment of technical and consulting services fees under the Exclusive Service Agreement; | |||||
6) | |||||
The shareholders of FAB Media have irrecoverably and unconditionally granted DGC or its designee an exclusive option to purchase, to the extent permitted by PRC laws, all or any portion of equity interest of the FAB Media. | |||||
All these contractual agreements obligate DGC to absorb a majority of the risk of loss from FAB Media's activities and entitle DGC to receive a majority of its residual returns. In essence, DGC has gained effective control over FAB Media. Based on these contractual arrangements, the Company believes that FAB Media should be considered a variable interest entity under the Statement of Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 810, "Consolidation". Accordingly, the accounts of this entity are consolidated with those of DGC, the primary beneficiary. | |||||
DEI is effectively controlled by the majority shareholders of FAB Media. DEI has 100% equity interest in DGC. Accordingly, DGC, and FAB Media are effectively controlled by the same majority shareholders. | |||||
Therefore, DGC and FAB Media are considered under common control. The consolidation of DGC and FAB Media into DEI has been accounted for at historical cost and prepared on the basis as if the aforementioned exclusive contractual agreements between DGC and FAB Media had become effective as of the beginning of the first period presented in the accompanying consolidated financial statements. | |||||
Selected information of the consolidated balance sheet of FAB Media and its wholly-owned subsidiaries as of December 31, 2013 and 2012, and the consolidated results of operations for the year ended are summaries as follows: | |||||
31-Dec-13 | 31-Dec-12 | ||||
Cash and Restricted cash | $ | 99,077,811 | $ | 19,291,600 | |
Accounts receivable, net | 7,227,270 | 6,666,985 | |||
Deferred tax assets, current | 2,830,200 | 1,771,799 | |||
Other current assets | 4,820,393 | 5,779,940 | |||
Total current assets | 113,955,674 | 33,510,324 | |||
Property, plant and equipment, net | 14,989,176 | 15,182,291 | |||
Intangible assets, net | 434,304 | - | |||
Deferred tax assets, non-current | 5,227,865 | 3,346,166 | |||
Long-term deposits | 20,089,263 | 24,484,549 | |||
Total assets(1) | 154,696,282 | 76,523,330 | |||
Short-term bank loans | 6,276,842 | 1,612,826 | |||
Accounts payable | 2,924,374 | 5,856,233 | |||
Accrued expenses | 4,008,363 | 2,637,676 | |||
Deferred revenue, current | 15,294,998 | 8,178,970 | |||
Other current liability | 7,491,885 | 3,534,867 | |||
Total current liabilities | 35,996,462 | 21,820,572 | |||
Long-term deposits from customers | 2,244,797 | 2,474,604 | |||
Deferred revenue, non-current | 25,432,654 | 7,923,450 | |||
Long-term bonds payable | 16,518,005 | - | |||
Total liabilities(1) | 80,191,918 | 32,218,626 | |||
For the year ended December 31, 2013 | Period from September 27, 2012 to December 31, 2012 | ||||
Revenue | $ | 105,932,361 | $ | 23,708,308 | |
Net income | 20,820,847 | 3,136,626 | |||
(1) Total assets and liabilities of the VIE are reported net of intercompany balances that have been eliminated with the VIE consolidation |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2013 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
The accompanying consolidated financial statements presented reflect the accounts of Parent, Libsyn, and DEI. All significant inter-company transactions have been eliminated in consolidation. The operations' of FHA, which includes the Interim subsidiary, was spun-off into its own company effective October 1, 2012. The record date for the spin-off of our Home Healthcare subsidiary into a separate entity was September 5, 2012, and the stock began trading on the OTC BB effective October 1, 2012. The transaction was treated as a special dividend for the shareholders of record as of September 5, 2012. | |
Accounting Estimates - The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Management made assumptions and estimates for determining reserve for accounts receivable, obsolete inventory, the realization of deferred tax assets and in determining the impairment of finite life intangible assets and goodwill and accruals for income tax uncertainties and other contingencies when applicable. Actual results could differ from those estimated by management. | |
Reclassification - The financial statements for the period ended December 31, 2012 have been reclassified to conform to the headings and classifications used in the December 31, 2013 financial statements. | |
Restricted cash-Restricted cash represents deposits not readily available to the Company because they are required to be pledged to secure note payable outstanding as of December 31, 2013 (note 8). | |
Inventory - Inventory includes books and video products and is recorded at the lower of cost or market, using the first-in, first-out ("FIFO") method. The Company estimates net realizable value based on current market value and inventory aging analyses. As of December 31, 2013 no reserve for slow-moving or obsolete inventory is considered necessary. | |
Revenue Recognition - Revenue is recognized when earned. The Company's revenue recognition policies are in compliance with FASB ASC Topic 985-605, Software - Revenue Recognition. The Company's revenue recognition policies are also in compliance with the Securities and Exchange Commission Staff Accounting Bulletin No. 101 and 104. | |
Digital media publishing services are billed on a month to month basis. The Company recognizes revenue from providing digital media publishing services when the services are provided and when collection is probable. The Company recognizes revenue from the insertion of advertisements in digital media, as the digital media with the advertisement is downloaded and collection is probable. The Company recognizes revenue from the sale of apps and premium subscriptions when sold and collection is probable. | |
The Company sells packaged and custom software products and related voice recognition product development consulting. Software product revenues are recognized upon shipment of the software product only if no significant Company obligations remain, the fee is fixed or determinable, and collection is received or the resulting receivable is deemed probable. | |
In the PRC, Value Added Tax ("VAT") of 17% of the invoice amount is collected in respect of the sales of goods on behalf of tax authorities. The VAT collected is not revenue of the Company; instead, the amount is recorded as a liability on the balance sheet until such VAT is paid to the authorities. | |
Product revenue is recognized when title to the product has transferred to customers in accordance with the terms of the sale; the sales price to the customer is fixed or determinable, and collectability is reasonably assured. Revenues are recorded net of applicable sales taxes. | |
The Company derives revenue from retail sales, sales to retailers, and Digital sales. Revenue from Digital sales includes advertisement revenue, membership card revenue, download revenue and licensing revenue. | |
Revenue from retail sales is recognized at the point-of-sale. Revenue from sales to retailers is recognized at the point of delivery of the product. Download service revenue is recognized when substantially all material services or conditions relating the sales have been performed or satisfied, and the Company has no obligation to refund any payment (cash or otherwise) received. Revenue generated from Membership sales is non-refundable. Membership card revenue is amortized over the life of the membership period, membership cards with par value of RMB 100 have an expiration period of three months, and par value of RMB 200, 300, 400 and 500 have an expiration period of twelve months. Advertisement revenue is recognized over the contract period. Licensing revenue is amortized ratably over the term of the agreement which is generally five years. Deferred revenue represents unearned revenues related primarily to sales of licenses and FAB Membership cards. | |
Revenue from package software products is recorded when the payment has been received and the software has been shipped. Revenue is recognized, net of discount and allowances, at the time of product shipment. Revenue from non-recurring programming, engineering fees, consulting service, support arrangements and training programs is recognized when the services are provided. | |
Accounts Receivable - We evaluate the creditworthiness of our customers based on their financial information, if available, as well as information obtained from suppliers and past experiences with customers. Accounts receivable consist of trade receivables arising in the normal course of business. Any allowance established is subject to judgment and estimates made by management. The Company determines the allowance based on known troubled accounts, historical experience, and other currently available evidence. We established an allowance for doubtful accounts of $14,000 at December 31, 2013 and 2012. | |
Stock-based Compensation - The Company accounts for options in accordance with the provisions of Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") ASC Topic 718, Compensation - Stock Compensation. For the years ended December 31, 2013 and 2012, the Company recorded stock-based employee compensation expense of $423,796 and $5,086 for vesting of stock options, respectively, and stock-based compensation expense to employees and consultants of $329,600 and $4,159,800, respectively, for options that were issued and immediately exercised. | |
Functional Currency / Foreign Currency Translation - The functional currency of FAB Universal Corp is the United States Dollar (USD). The functional currency of DEI is the Renminbi ("RMB") and its reporting currency is U.S. dollars for the purpose of these financial statements. The Company's consolidated balance sheet accounts are translated into U.S. dollars at the period-end exchange rates (6.054 RMB to $1 at December 31, 2013) and all revenue and expenses are translated into U.S. dollars at the average exchange rates prevailing during 2013 (6.1492 RMB to $1) in which these items arise. Translation gains and losses are deferred and accumulated as a component of other comprehensive income in stockholders' equity. Transaction gains and losses that arise from exchange rate fluctuations from transactions denominated in a currency other than the functional currency are included in the statement of operations as incurred. | |
Fair Value of Financial Instruments - The Company accounts for fair value measurements for financial assets and financial liabilities in accordance with FASB ASC Topic 820. The authoritative guidance, which, among other things, defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is defined as the exit price, representing the amount that would either be received to sell an asset or be paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the guidance 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 in active markets for identical assets or liabilities; | |
• | |
Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and | |
• | |
Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. | |
Unless otherwise disclosed, the fair value of the Company's financial instruments including cash, accounts receivable, prepaid expenses, accounts payable, accrued expenses, current deferred revenue and notes payable approximates their recorded values due to their short-term maturities. Long-term deposits represent cash and therefore, their carrying value represents fair value. The fair value of the Company's long-term deposits, non-current deferred revenue, long-term bond payable and other liabilities has no material difference with the book values based on the calculated results. | |
Property and Equipment - Property and equipment are stated at cost less accumulated depreciation. Depreciation and amortization is calculated on the straight-line method over the estimated useful lives of the assets as set out below: | |
Estimated Useful Life | |
Electronic equipment 2-5 years | |
Office furniture and equipment 2-10 years | |
Vehicles 5 years | |
Building 48.5 years | |
Leasehold improvements Shorter of lease terms or estimated useful life | |
Goodwill and other Intangible Assets - The Company accounts for Goodwill and other intangible assets in accordance with provisions of FASB -ASC Topic 350, Intangibles--Goodwill and Other. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but instead are tested for impairment at least annually in accordance with the provisions of Topic 350. Impairment losses arising from this impairment test, if any, are included in operating expenses in the period of impairment. Topic 350 requires that intangible assets with finite lives be amortized over their respective estimated useful lives, and reviewed for impairment in accordance with Topic 360, criteria for recognition of an impairment of Long-Lived Assets. | |
Income Taxes - The Company is subject to the Income Tax Laws of U.S. and the PRC. The Company accounts for income taxes in accordance with ASC 740, "Income Taxes". ASC 740 requires an asset and liability approach for financial accounting and reporting for income taxes and allows recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future deductibility is uncertain. The components of deferred tax assets are individually classified as current and non-current based on their characteristics. | |
ASC 740-10-25 prescribes a more-likely-than-not threshold for consolidated financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. It also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, years open for tax examination, accounting for income taxes in interim periods and income tax disclosures. There is no material uncertain tax positions as of December 31, 2013 and 2012, respectively (See note 13 - Capital Stock and note 16- Contingencies). | |
Recent Accounting Pronouncements - The Company has adopted all recently issued accounting pronouncements that management believes to be applicable to the Company. The adoption of these accounting pronouncements, including those not yet effective, is not anticipated to have a material effect on the Company's financial position or results of operations. |
GOODWILL_AND_OTHER_INTANGIBLE_
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract] | ' | ||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | ' | ||||||||||||||
NOTE 3 - GOODWILL AND OTHER INTANGIBLE ASSETS | |||||||||||||||
The Company completed an analysis of the fair value of the business as it relates to the goodwill associated with Libsyn. The analysis of the business enterprises' fair value was performed as of December 31, 2013. Based on the results of the application of the Fair Value, no impairment of goodwill was recorded in connection with Libsyn. When making these estimates, we were required to make estimates of future operating trends and judgments on discount rates and other variables. Actual future results and other assumed variables could differ from those estimated. | |||||||||||||||
Goodwill consists of: | |||||||||||||||
December 31, | December 31, | ||||||||||||||
2013 | 2012 | ||||||||||||||
Digital Entertainment International - DEI | $ | 50,608,681 | $ | 49,168,706 | |||||||||||
Webmayhem Inc.(Libsyn) | 11,484,251 | 11,484,251 | |||||||||||||
Total Goodwill | $ | 62,092,932 | $ | 60,652,957 | |||||||||||
The following is a summary of goodwill: | |||||||||||||||
For the Year Ended December 31, | For the Year Ended December 31, | ||||||||||||||
2013 | 2012 | ||||||||||||||
Goodwill at beginning of period | $ | 60,652,957 | $ | 12,673,912 | |||||||||||
Foreign currency translation gain | 1,439,975 | - | |||||||||||||
Acquisition of DEI | - | 49,168,706 | |||||||||||||
Goodwill discontinued operations | - | -1,189,661 | |||||||||||||
Goodwill at end of period | $ | 62,092,932 | $ | 60,652,957 | |||||||||||
Other intangible assets - Other intangible assets consist of customer relationships, intellectual property, trade name and non-compete, which were generated through the acquisition of DEI. Management considers these intangible assets to have finite-lives except trade name. These assets are being amortized on a straight-line basis over their estimated useful lives. | |||||||||||||||
As of December 31, 2013, | |||||||||||||||
Preliminary | Weighted Average | Accumulated | Currency Translation Adjustment | Net Carrying | |||||||||||
Fair Value | Useful Life | Amortization | Amount | ||||||||||||
(in Years) | |||||||||||||||
Customer Relationships | $ | 8,900,000 | 3 | $ 3,828,235 | $ 293,749 | $ 5,365,514 | |||||||||
Intellectual Property | 4,300,000 | 3 | 1,849,597 | 141,923 | 2,592,326 | ||||||||||
Trade name | 13,876,000 | (a) | (a) | 572,093 | 14,448,093 | ||||||||||
Copyrights | 902,653 | (b) | 128,436 | 0 | 774,217 | ||||||||||
Non-compete | 1,885,200 | 2 | 1,216,345 | 54,471 | 723,326 | ||||||||||
Total | $ | 29,863,853 | $ 7,022,613 | $ 1,062,236 | $ 23,903,476 | ||||||||||
(a) The FAB trade name has been determined to have an indefinite life. | |||||||||||||||
(b) The copyrights useful lives are from 1 year to 10 years. | |||||||||||||||
The estimated future amortization expenses related to other intangible assets as of December 31, 2013 are as follows: | |||||||||||||||
For twelve months ending December 31, | |||||||||||||||
2014 | $ 5,491,673 | ||||||||||||||
2015 | 3,830,173 | ||||||||||||||
2016 | 87,014 | ||||||||||||||
Thereafter | 46,523 | ||||||||||||||
Total | $ 9,455,383 |
ACCOUNTS_RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended | ||
Dec. 31, 2013 | |||
ACCOUNTS RECEIVABLE [Abstract] | ' | ||
ACCOUNTS RECEIVABLE | ' | ||
NOTE 4 - ACCOUNTS RECEIVABLE | |||
Accounts receivable as of December 31, 2013 and 2012 consist of the following: | |||
December 31, | |||
2013 | 2012 | ||
Accounts receivable | $ 7,568,919 | $ 6,941,045 | |
Allowance for doubtful accounts | -14,000 | -14,000 | |
Accounts receivable, net | $ 7,554,919 | $ 6,927,045 | |
Currently, the Company grants credit to customers with well-established credit history with terms from net 30 days to twelve months while the Company generally requests other customers to pay either in advance or upon delivery. The Company determines the allowance based on known troubled accounts, historical experience, and other currently available evidence. |
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended | |||
Dec. 31, 2013 | ||||
PROPERTY AND EQUIPMENT [Abstract] | ' | |||
PROPERTY AND EQUIPMENT | ' | |||
NOTE 5 - PROPERTY AND EQUIPMENT | ||||
Property and equipment and related accumulated depreciation are as follows: | ||||
31-Dec | 31-Dec | |||
2013 | 2012 | |||
Electronic equipment | $ 1,726,239 | $ 1,436,466 | ||
Office furniture and equipment | 62,248 | 54,077 | ||
Vehicles | 372,996 | 57,471 | ||
Building | 14,072,796 | 14,366,218 | ||
Leasehold improvements | 3,804,395 | 3,607,563 | ||
20,038,674 | 19,521,795 | |||
Less: Accumulated depreciation | -3,464,543 | -2,801,158 | ||
Total property and equipment, net | $ 16,574,131 | $ 16,720,637 | ||
Depreciation expense for the years ended December 31, 2013 and 2012 was $1,283,946 and $554,707, respectively. |
LONGTERM_DEPOSITS
LONG-TERM DEPOSITS | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
LONG-TERM DEPOSITS [Abstract] | ' | ||||
LONG-TERM DEPOSITS | ' | ||||
NOTE 6 - LONG-TERM DEPOSITS | |||||
Long term deposits consist of following: | |||||
December 31, | December 31, | ||||
2013 | 2012 | ||||
Prepayments for setting up flagship stores | $ | 3,303,601 | $ | 20,862,420 | |
Anti-piracy sales guarantee deposits | 3,303,601 | 3,370,083 | |||
Building Deposit | 13,214,404 | - | |||
Rent deposits | 271,239 | 255,628 | |||
Total Long-Term Deposits | $ | 20,092,845 | $ | 24,488,131 | |
Long term deposits include anti-piracy sales guarantee deposits made to product licensors by FAB Media, rent deposits made to landlords, prepayment for real estate purchase and prepaid payment which made to commission agents. The deposits for no-piracy sales guaranties are fully refundable when FAB Media decides to terminate the license agreements with the licensors to sell their products. The rent deposits are also fully refundable at the end of the lease term. The prepaid payments are used for new FAB flagship stores opening in other locations and real estate purchasing. The decrease in prepayments for setting up flagship stores is due to the refund from eleven third-parties in the amount of RMB 110 million (approximately $17.8 million) in 2013. |
SHORTTERM_LOANS
SHORT-TERM LOANS | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
SHORT-TERM LOANS [Abstract] | ' | ||||
SHORT-TERM LOANS | ' | ||||
NOTE 7 - SHORT-TERM LOANS | |||||
Short-term bank loans consist as of December 31, 2013 and 2012: | |||||
December 31, | December 31, | ||||
2013 | 2012 | ||||
Prime Rate Financial | $ | - | $ | 459,793 | |
Bank of Communication | 1,651,800 | 8,024 | |||
China Merchants Bank | - | 1,604,802 | |||
Minsheng Bank | 1,321,440 | - | |||
Nanjing Bank | 1,651,801 | - | |||
China Dalian Bank | 1,651,801 | - | |||
Total Short-Term Loans | $ | 6,276,842 | $ | 2,072,619 | |
Short-term bank loans are primarily used for working capital needs. On April 25, 2012, FAB Digital entered into a loan agreement with China Merchants Bank ("CMB") for a short term loan due April 25, 2013 in the amount of RMB 10,000,000 (Approximately $1.5 million). The interest rate of the loan is around 8.52%, which is a variable interest rate based on the one year benchmark rates of similar loans published by the People's Bank of China plus 35 basis points, adjustable on a monthly basis. In connection with the loan agreement, the Company's Chairman, and major shareholder, entered into a pledge agreement with Beijing Lianhekaiyuan Investment and Guarantee Co. LTD ("LIGC"), the loan was guaranteed and collateralized by the software copyrights owned by the chairman and major shareholder. The loan was fully repaid on May 31, 2013 | |||||
On September 23, 2012, FAB Digital entered into a new loan agreement with Bank of Communications ("BCM") for a one-year term loan due October 10, 2013 in the amount of RMB 50,000 (approximately $0.008 million). The interest rate of the loan is around 6.00%, which is a variable interest rate based on the one year benchmark rates of similar loans published by the People's Bank of China. The loan was fully repaid on October 31, 2013, and was not renewed after Dec 31, 2013. | |||||
On March 25, 2013, FAB Digital entered into a new loan agreement with Bank of Communications ("BCM") for a one-year term loan due March 28, 2014 in amount of RMB 10,000,000 (approximately $1.6 million). The interest of the loan is 7.8%, which is a variable interest rate based on the one year benchmark rate of the actual loan payment day plus 30 basis points. | |||||
On December 12, 2013, FAB Digital entered into a new loan agreement with China Nanjing Bank for a one-year term loan due December 12, 2014 in amount of RMB 10,000,000 (approximately $1.6 million). The loan has a fixed interest rate of 7.80%. Based on the relevant guarantee agreement, the loan was guaranteed and collateralized by the property owned by Company's major shareholder. | |||||
On December 12, 2013, FAB Digital entered into a new loan agreement with China Dalian Bank for a one-year term loan due December 12, 2014 in amount of RMB 10,000,000 (approximately $1.6 million). The loan has a fixed interest rate of 7.80%. Based on the relevant guarantee agreement, the loan was guaranteed by Company's major shareholder. | |||||
On December 26, 2013, FAB Digital entered into a new loan agreement with China Minsheng Bank for a one-year term loan due December 26, 2014 in amount of RMB 8,000,000 (approximately $1.3 million). The loan has a fixed interest rate of 7.80%. Based on the relevant guarantee agreement, the loan was guaranteed by Company's major shareholder. | |||||
On October 1, 2012, FAB Universal entered into a financing agreement with Prime Rate Premium Finance Corp for an 18 month loan due January 1, 2014 in the amount of $573,750. The loan had a 4.25% interest rate and the loan was repaid over 15 equal installments of $39,343. The final payment was made prior to the due date of January 1, 2014. |
NOTES_PAYABLE
NOTES PAYABLE | 12 Months Ended |
Dec. 31, 2013 | |
NOTES PAYABLE [Abstract] | ' |
NOTES PAYABLE | ' |
NOTE 8 - NOTES PAYABLE | |
As of December 31, 2013 and December 31, 2012, the Company had notes payables of approximately $ 1,651,800 and $0, respectively, represents the outstanding and used notes are guaranteed to be paid by bank and mature within a short-term period of three months after balance sheet dates, the company is required to maintain cash deposits at 100% of the total balance of note payables in bank account, note payable will be paid in full at maturity. |
LONG_TERM_BOND_PAYABLE
LONG TERM BOND PAYABLE | 12 Months Ended |
Dec. 31, 2013 | |
LONG TERM BOND PAYABLE [Abstract] | ' |
LONG TERM BOND PAYABLE | ' |
NOTE 9 - LONG TERM BOND PAYABLE | |
On April 25, 2013, FAB Digital received the proceeds from a bond offering in the amount of RMB 97,000,000 (Approximately $15.8 million), net of the underwriter's fee of RMB 3,000,000. The bond matures in three years and bears simple interest at the rate of 11% per annum with an option to adjust the interest rate at the end of the second year. The bonds are puttable by the holders at the end of the second year. The bonds are secured by a pledge of shares in a company that does business with the Company, a certain real estate asset owned by a third party and are guaranteed by the Company's Chairman. Interest is paid annually on the anniversary of the bond. The bond is due in full upon maturity on April 25, 2016. |
STATUTORY_RESERVE
STATUTORY RESERVE | 12 Months Ended |
Dec. 31, 2013 | |
STATUTORY RESERVE [Abstract] | ' |
STATUTORY RESERVE | ' |
NOTE 10 - STATUTORY RESERVE | |
The Company is required to make appropriations to reserve funds, comprising the statutory surplus reserve and discretionary surplus reserve, based on after-tax net income determined in accordance with generally accepted accounting principles of the PRC (the "PRC GAAP"). Appropriation to the statutory surplus reserve should be at least 10% of the after-tax net income. Such appropriation may cease if the balance of the fund is equal to 50% of the entities' registered capital or shareholders' equity. The Company has reserved $131,825 at both December 31, 2013 and 2012 since the amount has reached the statutory limit of 50% of the registered capital. |
RELATED_PARTIES
RELATED PARTIES | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
RELATED PARTIES [Abstract] | ' | ||||
RELATED PARTIES | ' | ||||
NOTE 11 - RELATED PARTIES | |||||
The table below sets forth the related parties and their affiliation with the Company: | |||||
Related Parties | Affiliation with the Company | ||||
Guangdong Endless Culture Co., Ltd.(GEC) | Affiliated Company controlled by the chairman and major shareholder | ||||
Zhang Hongcheng | Chairman and major stockholder | ||||
Amounts due to related parties are as follows: | |||||
31-Dec | 31-Dec | ||||
2013 | 2012 | ||||
Guangdong Endless Culture co., Ltd | $ | - | $ | 4,814 | |
Zhang Hongcheng | 122,596 | 36,527 | |||
Total due to related parties | $ | 122,596 | $ | 41,341 | |
Mr. Zhang Hongcheng paid certain professional fees on behalf of FAB Media for the quarter ended September 30, 2012. Mr. Zhang Hongcheng also loaned $85,000 to DEI for investment purposes on March 1, 2013. | |||||
FAB Media has five business locations, one of which is subleased from GEC. In addition, GEC entered into a lease agreement with Xidan Joy City on behalf of FAB Media for a term of eight-years from April 2008 to March 2016. | |||||
Subsequently, FAB Media entered into a sublease agreement with GEC. The average monthly rent expense is $50,414. FAB Media paid the rental and promotion expense to Xidan Joy City directly. | |||||
Future minimum annual rental payments due are as follows: | |||||
Rental | |||||
Twelve months ending December 31, | Commitments | ||||
2014 | $ 1,238,325 | ||||
2015 | 1,214,969 | ||||
2016 | 754,117 | ||||
2017 | 250,208 | ||||
2018 | - | ||||
Thereafter | - | ||||
Total | $ 3,457,619 |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
INCOME TAXES [Abstract] | ' | ||||
INCOME TAXES | ' | ||||
NOTE 12 - INCOME TAXES | |||||
The Company is subject to income taxes on an entity basis on income arising in or derived from U.S. as well as the People's Republic of China ("PRC") in which each entity is domiciled. | |||||
DEI was incorporated in Hong Kong in November 2010, and has not earned any income that was derived in Hong Kong since inception and therefore was not subject to Hong Kong income tax. | |||||
Certain subsidiaries of the Company were organized under the laws of the PRC which are subject to Enterprise Income Tax ("EIT") on the taxable income as reported in their respective statutory financial statements adjusted in accordance with the Enterprise Income Tax Law. Pursuant to the PRC Income Tax Laws, DGC, FAB Digital, BFICM, BFWSCD, BFPT and BFVCT are subject to EIT at a statutory rate of 25%. | |||||
FAB Media was qualified as a High and New Technology Enterprise in Beijing High-Tech Zone in December 24, 2010, and is entitled to a preferential tax rate of 15% through December 2015. | |||||
DEI files income tax returns with both the National Tax Bureau and the Local Tax Bureaus in the PRC. All tax returns of DEI since inception are subject to tax examination by tax authorities. | |||||
DEI recognized deferred tax assets in the amount of $8,058,065 and $5,117,965 as of December 31, 2013 and 2012, respectively. Deferred tax assets represent temporary differences arising primarily from deferred revenue and the allowance for doubtful accounts. The components of deferred tax assets are as follows: | |||||
December 31, | December 31, | ||||
2013 | 2012 | ||||
Current deferred tax assets | |||||
Deferred revenue | $ | 2,830,200 | $ | 1,771,799 | |
Valuation allowance | - | - | |||
Net current deferred tax assets | $ | 2,830,200 | $ | 1,771,799 | |
Non-current deferred assets | |||||
Deferred revenue | $ | 5,227,865 | $ | 3,346,166 | |
Valuation allowance | - | - | |||
Net non-current deferred tax assets | 5,227,865 | 3,346,166 | |||
$ | 8,058,065 | $ | 5,117,965 | ||
Income tax expense (benefit) consists of: | |||||
31-Dec | 31-Dec | ||||
2013 | 2012 | ||||
Current income tax expense | $ | 9,287,453 | $ | 1,908,689 | |
Deferred income tax benefit | -2,747,060 | -609,985 | |||
Total net taxes expense | $ | 6,540,393 | $ | 1,350,704 | |
Taxes payable consist of the following: | |||||
31-Dec | 31-Dec | ||||
2013 | 2012 | ||||
Value added tax payable | $ | 365,558 | $ | -411,352 | |
Income tax payable | 1,988,083 | 1,885,489 | |||
Business tax payable | -6,592 | -6,404 | |||
Other | 261,772 | 136,088 | |||
Total taxes payable | $ | 2,608,821 | $ | 1,603,821 | |
The Company accounts for U.S. income taxes in accordance with FASB ASC Topic 740, Accounting for Income Taxes which requires the Company to provide a net deferred tax asset or liability equal to the expected future tax benefit or expense of temporary reporting differences between book and tax accounting and any available operating loss or tax credit carryforwards. At December 31, 2013 and 2012, the total of all deferred tax assets was $21,016,096 and $21,381,056, respectively, and the total of the deferred tax assets related to good will was $(279,788) and $275,687, respectively. The amount of and ultimate realization of the benefits from the deferred tax assets for income tax purposes is dependent, in part, upon the tax laws in effect, the Company's future earnings, and other future events, the effects of which cannot be determined. Because of the uncertainty surrounding the realization of the deferred tax assets the Company has established a valuation allowance of $21,021,779 and $21,386,739 for the years ended December 31, 2013 and 2012. The change in the valuation allowance for the years ended December 31, 2013 and 2012 was $(364,960) and $3,022,397, respectively. | |||||
The components of U.S. income tax expense (benefit) from continuing operations for the years ended December 31, 2013 and 2012 consist of the following: | |||||
For the years ended December 31 | |||||
2013 | 2012 | ||||
Current tax expense: | |||||
Federal | $ | - | - | ||
State | - | - | |||
Current tax expense | - | - | |||
Deferred tax expense (benefit): | |||||
Allowance for doubtful accounts | - | 414 | |||
Bonus accrual | - | 12,874 | |||
Vacation accrual | - | 340 | |||
Non-cash compensation - Options | -172,033 | - | |||
Goodwill - tax amortization | 555,476 | 555,476 | |||
Net operating loss carryforward | -18,483 | -3,519,099 | |||
Change in effective rate | - | -72,401 | |||
Valuation allowance | -364,960 | 3,022,396 | |||
Deferred Tax Expense | - | - | |||
Income tax expense | $ | - | $ | - | |
Deferred income tax expense/(benefit) results primarily from the reversal of temporary timing differences between tax and financial statement income. | |||||
A reconciliation of income tax expense at the U.S. federal statutory rate to income tax expense at the company's effective rate is as follows: | |||||
December 31, | |||||
2013 | 2012 | ||||
Current deferred tax assets: | |||||
Computed tax at the expected statutory rate | $ | -110,943 | $ | -2,475,330 | |
State and local income taxes, net of federal | -20,893 | -479,154 | |||
Return to accrual adjustment | 493,593 | - | |||
Other non-deductible expenses | 3,203 | 2,760 | |||
Non-cash compensation - options | - | 1,729 | |||
Change in valuation allowance | -364,960 | 3,022,396 | |||
Change in effective rate | - | -72,401 | |||
Income tax expense | $ | - | $ | - | |
The temporary differences, tax credits and carryforwards gave rise to the following deferred tax asset at December 31, 2013 and 2012: | |||||
December 31, | |||||
2013 | 2012 | ||||
Current deferred tax assets (liabilities): | |||||
Allowance for doubtful accounts | $ | 5,683 | $ | 5,683 | |
Bonus accrual | - | - | |||
Vacation accrual | - | - | |||
Valuation allowance | -5,683 | -5,683 | |||
Total current deferred tax assets (liabilities) | - | - | |||
Long-term deferred tax assets (liabilities): | |||||
Excess of goodwill/intangible assets amortization for tax over book | -279,788 | 275,687 | |||
Non-cash compensation - Options | 172,033 | - | |||
Net operating loss carryforward | 21,123,851 | 21,105,369 | |||
Valuation allowance | -21,016,096 | -21,381,056 | |||
Total long-term deferred tax assets (liabilities) | - | - | |||
$ | - | $ | - | ||
The Company has available at December 31, 2013 operating loss carryforwards of approximately $52,000,000 in the U.S. which may be applied against future taxable income and which expires in various years through 2032. Various provisions of the Internal Revenue Code limit the amount of net operating loss or other tax attributes that can be used prospectively following a business combination or merger. The Company has determined that it is not subject to these limitations for the 2013 tax year. The Company will evaluate the applicability of the tax attribute-limiting provisions prospectively. | |||||
We file U.S. federal, and multiple U.S. state returns, and we are generally no longer subject to tax examinations for years prior to 2009 for U.S. federal and U.S. states tax returns. |
CAPITAL_STOCK
CAPITAL STOCK | 12 Months Ended |
Dec. 31, 2013 | |
CAPITAL STOCK [Abstract] | ' |
CAPITAL STOCK | ' |
NOTE 13 - CAPITAL STOCK | |
Preferred Stock - The Company has authorized 10,000,000 shares of preferred stock, $.001 par value. As of December 31, 2012, the Company had 290 Series B Preferred shares issued and outstanding. | |
On September 26, 2012, at the Closing of the DEI acquisition, the Company issued, as additional consideration 290 "unregistered" and "restricted" shares of its Series B Convertible Preferred Stock. | |
The Preferred Stock has no dividend rights or voting rights or the right to receive any assets of the Company upon liquidation, dissolution or winding up. The Preferred Stock will be convertible into shares of the Company's common stock in three tranches upon the occurrence of certain conversion events (see note 16 - Contingencies). | |
Upon the occurrence of each conversion event, the three tranches of Preferred Stock will be convertible into a number of shares of common stock that will bring the overall equity position in the Company of the holders of the Initial Company Shares, the Preferred Stock and the common stock issuable upon conversion of the Preferred Stock, on a fully diluted basis as of the date of Closing, to 70%, 74% and 78%, respectively. Based on a total of 10,702,309 fully-diluted outstanding common shares as of the Closing date, 14,689,444 common shares will be issuable upon conversion of the first tranche of Preferred Stock; 5,488,364 common shares upon conversion of the second tranche; and 7,484,132 common shares upon conversion of the third tranche. | |
1 for 12 Reverse Stock Split - On February 8, 2012, the Company shareholders approved a 1 for 12 reverse stock-split for shareholders of record on February 23, 2012. The company issued 2,739 common shares for the fractional shares resulting from the split. | |
Common Stock - The Company has authorized 200,000,000 shares of common stock, $.001 par value. As of December 31, 2013, the Company had 20,805,860 common shares issued and outstanding. | |
On January 25, 2013, the Company issued 257,000 common shares valued at $529,080 to consultants for services rendered. | |
On May 21, 2013, the Company issued 80,000 common shares valued at $164,800 to consultants for services rendered. | |
During the 2013, the company recorded $423,796 of non-cash compensation expense related to the vesting of certain stock options issued. | |
On February 24, 2012, the Company issued 37,500 common shares upon the exercise of options valued at $63,000 to consultants and employees for services rendered. | |
On March 21, 2012, the Company issued 28,334 common shares upon the exercise of options valued at $47,601 to consultants and employees for services rendered. | |
On March 21, 2012, the Company issued 429,169 common shares valued at $721,004 to consultants and employees for services rendered. | |
On May 29, 2012, the Company issued 70,553 common shares upon the exercise of options valued at $118,529 to management for services rendered. | |
On June 4, 2012, the Company issued 37,254 common shares upon the exercise of options valued at $76,371 to management for services rendered. | |
On August 2, 2012, the Company issued 15,784 common shares upon the cashless exercise of warrants valued at $67,086. | |
On August 14, 2012, the Company entered into a Warrant Amendment Agreement with holders of its Common Stock Purchase Warrants. Under the terms of the Agreement, the parties agreed to reduce the exercise price of the Warrants from $5.16 per share to $3.25. The Warrant Holders exercised 341,208 warrants for 341,207 shares of the Company's Common Stock. The Company received proceeds of $1,108,923. | |
On August 27, 2012, the Company issued 925,177 common shares upon the exercise of options valued at $3,222,079 to consultants, employees, management and board members. | |
On August 29, 2012, the Company issued 50,000 common shares valued at $232,500 to consultant for services rendered. | |
On September 26, 2012, the Company completed the acquisition of all of the issued and outstanding shares of capital stock of DEI, a company incorporated under the law of the Hong Kong Special Administrative Region in exchange for the issuance of a total of 10,282,611 "unregistered" and "restricted" shares of the Company's common stock, representing 49% of the Company's issued and outstanding common shares, on a fully-diluted basis, immediately after the closing. (See note 16 - Contingencies) | |
On September 28, 2012, the Company issued 123,000 common shares upon the exercise of options valued at $632,220 to consultants for services. | |
During the 2012, the company recorded $5,086 of non-cash compensation expense related to the vesting of certain stock options issued. | |
Effective October 1, 2012, FAB Universal Corp spun-off FHA, a wholly owned. Each shareholder of FAB Universal received one share of common stock of FHA for each share of FU held as of the record date of September 5, 2012. FHA is traded on the OTCBB under the ticker symbol "FUTU". |
STOCK_OPTIONS_AND_WARRANTS
STOCK OPTIONS AND WARRANTS | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
STOCK OPTIONS AND WARRANTS [Abstract] | ' | ||||||
STOCK OPTIONS AND WARRANTS | ' | ||||||
NOTE 14 - STOCK OPTIONS AND WARRANTS | |||||||
At December 31, 2013, the Company had 99,060 warrants outstanding to purchase common stock of the Company at $5.16 per share held by Iroquois Master Fund Ltd. | |||||||
Under the terms of the warrant held by Iroquois Master Fund Ltd., if it is deemed that another person acquires more than 50% of the outstanding shares of Common Stock of the Company, a Fundamental Transaction, the holder of the warrant is entitle to receive the shares of stock originally represented by the warrant upon subsequent exercise of the warrant and any additional consideration, the "Alternate Consideration". | |||||||
Alternatively, at the Holder's option, exercisable at any time concurrently with, or within 30 days after, the consummation of the Fundamental Transaction, the Company may purchase this Warrant from the Holder by paying to the Holder an amount of cash equal to the Black Scholes Value of the remaining unexercised portion of this Warrant on the date of the consummation of such Fundamental Transaction. | |||||||
The Company has multiple Stock Options plans. Under the plans, the Board is empowered to grant stock options to employees and officers of the Company. The following table shows the total number of shares of common stock available under each plan, the number of options exercised during 2013 and the options that remain available under each plan. | |||||||
Plan | Total | Options Granted | Options Exercised | Remaining | |||
Name | Available | During 2013 | During 2013 | Available | |||
2013 Plan | 3,000,000 | - | - | 3,000,000 | |||
2012 Plan | 3,000,000 | 250,000 | - | 1,788,667 | |||
2010 Plan | 166,667 | - | - | 0 | |||
2009 Plan | 166,667 | - | - | 0 | |||
2008 Plan | 16,667 | - | - | 28 | |||
2008 Key Employee Plan | 33,334 | - | - | 260 | |||
2007 Plan | 16,667 | - | - | 12 | |||
2007 Key Employee Plan | 16,667 | - | - | 0 | |||
2006 Key Employee Plan | 11,459 | - | - | 0 | |||
Total | 6,428,128 | 250,000 | - | 4,788,967 | |||
The fair value of option grants during 2013 was determined using the Black-Scholes option valuation model. The significant weighted average assumptions relating to the valuation of the Company's Stock Options for 2013 and 2012 were as follows: | |||||||
2013 | 2012 | ||||||
Dividend yield | 0% | 0% | |||||
Expected life | 11 yrs | 0 yrs | |||||
Expected volatility | 82.76% | 0.00% | |||||
Risk-free interest rate | 2.17% | 0.00% | |||||
A summary of the status of options granted at December 31, 2013, and changes during the year then ended are as follows: | |||||||
For the Year Ended December 31, 2013 | |||||||
Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value | ||||
Outstanding at beginning of year | - | $ | 0 | - | $ | - | |
Granted | 250,000 | 3.52 | 10.5 years | - | |||
Exercised | - | 0 | - | - | |||
Forfeited | - | 0 | - | - | |||
Expired | - | 0 | - | - | |||
Outstanding at end of year | 250,000 | 3.52 | 10.5 years | - | |||
Vested and expected to vest in the future | 0 | 0 | 0.0 years | - | |||
Exercisable at end of year | 0 | 0 | 0.0 years | - | |||
Weighted average fair value of options granted | 250,000 | $ | 3.52 | 10.5 years | $ | - | |
The Company had zero non-vested options at the beginning of the year. At December 31, 2013 the Company had 250,000 options granted that remain unexercised. | |||||||
During the years ended December 31, 2013 and 2012, the Company recorded $423,796 and $5,086 of non-cash compensation expense related to the vested stock options issued to employees. | |||||||
For the years December 31, 2013 and 2012, the Company recorded non-cash compensation cost of $329,600 and $4,159,800 for vested and exercised options issued to management, board members, employees and consultants. |
INCOME_LOSS_PER_COMMON_SHARE
INCOME (LOSS) PER COMMON SHARE | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
LOSS PER COMMON SHARE [Abstract] | ' | ||||
LOSS PER COMMON SHARE | ' | ||||
NOTE 15 - INCOME (LOSS) PER COMMON SHARE | |||||
The following data show the amounts used in computing income (loss) per share and the weighted average number of shares of common stock outstanding for the periods presented: | |||||
2013 | 2012 | ||||
Net income (loss) from continuing operations | $ | 20,653,473 | $ | -4,182,501 | |
Net income from discontinued operations | - | 178,276 | |||
Net income (loss) available to common shareholders (numerator) | $ | 20,653,473 | $ | -4,004,225 | |
Weighted average number of common shares outstanding during the period used in basic and diluted income (loss) per share (denominator) | 20,757,353 | 11,779,195 | |||
At December 31, 2013, the Company had 99,060 warrants outstanding to purchase common stock of the Company at $5.16 per share, and the Company had 250,000 options outstanding to purchase common stock of the Company at $3.52 per share. | |||||
At December 31, 2012, the Company had 99,060 warrants outstanding to purchase common stock of the Company at $5.16 per share, which were not included in the loss per share computation because their effect would be anti-dilutive. |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Dec. 31, 2013 | |
CONTINGENCIES [Abstract] | ' |
CONTINGENCIES | ' |
NOTE 16 - CONTINGENCIES | |
Contingent Consideration for the Acquisition of DEI As further discussed in Notes 1 and 12, the Initial Company Shares are subject to the terms of the Voting Agreement, which assigns to the Company's Board of Directors the right to vote all of the Initial Company Shares until the following milestones are achieved for a | |
(i) if DEI and the VIE Entity successfully complete all of the Corporate Governance Objectives for two (2) consecutive and complete reporting quarters after the Closing, the Company's Board of Directors will release the voting rights to 50% of the Initial Company Shares held by the designees at such time. (The voting rights were released on 50% of the Initial Company shares.) | |
(ii) upon successful completion of all of the Corporate Governance Objectives for six (6) consecutive and complete reporting quarters after the Closing, the Company's Board of Directors will release the voting rights to another 25% of the Initial Company Shares and; (The voting rights were not released on 25% of the Initial Company shares.) | |
(iii) upon the successful completion of all of the Corporate Governance Objectives for eight (8) consecutive and complete reporting quarters after the Closing, the Company's Board of Directors will release the voting rights to the remaining Initial Company Shares. (The voting rights were not released on the remaining Initial Company shares.) | |
Fifty percent of the Initial Company Shares (the "Lock-up Shares") are also subject to the terms of a Lock-up Agreement by which UEG's designees have agreed not to transfer, sell, hypothecate or gift such Lock-up Shares for a period of 12 months following the Closing date. | |
In addition, during the first 24 months after the Closing, DEI and each of its permitted transferees or designees will have piggyback registration rights with respect to all Initial Company Shares that are not then subject to the restrictions of the Lock-up Agreement or the Voting Agreement, and all Company shares that have been issued upon conversion of Preferred Stock to cause such shares to be included in (i) any registration statement that the Company files with the Securities and Exchange Commission to register under the Securities Act of 1933, as amended, common shares held by any person who was a stockholder of the Company at the time of Closing (or any transferee thereof); or (ii) any other registration statement filed by the Company so long as a majority of the Company's Board of Directors has made a good faith determination that such piggyback registration will not significantly prejudice the Company's ability to raise capital. | |
As additional consideration for the acquisition, the Company issued 290 share of Series B Convertible Preferred Stock. The Company further agreed to convert these shares of Preferred Stock into additional shares of common stock upon DEI achieving corporate government requirement and financial results. | |
The Preferred Stock will be convertible into shares of the Company's common stock in three (3) tranches upon the occurrence of the following conversion events: | |
(i) upon the successful completion of certain Corporate Governance Objectives for the four (4) consecutive and complete reporting quarters of the Company immediately following the Closing, the designees shall have the right to convert the first tranche of 210 shares of Preferred Stock into shares of the Company's common stock; | |
(ii) upon the successful completion of: (a) all of the Corporate Governance Objectives for the four (4) consecutive and complete reporting quarters of the Company immediately following the Closing; and (b) a Revenue Objective requiring DEI to attain sales revenues of at least US$60,000,000 and net income of US$12,000,000 for fiscal year 2011, UEG's designees shall have the right to convert the second tranche of 40 shares of Preferred Stock into shares of the Company's common stock. Only the revenue and net income objectives were met. | |
(iii) upon the successful completion of (a) all of the Corporate Governance Objectives for the six (6) consecutive and complete reporting quarters of the Company immediately following the Closing; and (b) a Revenue Objective requiring that DEI attain sales revenues of at least US$70,000,000 and net income of US$14,000,000 for fiscal year 2012, UEG's designees shall have the right to convert the third tranche of 40 shares of Preferred Stock into shares of the Company's common stock. Only the revenue and net income objectives were met. | |
Pending lawsuit | |
In November and December 2013, three putative class action lawsuits were filed in the federal court for the Southern District of New York against FAB Universal Corp., its CEO and its CFO. The actions are: Simmons v. Spencer et al. (1:13-cv-08216-RWS. filed 11/18/13), Stubblefield v. Fab Universal Corp. et al. (1:13-cv-08499-RWS, filed 11/27/13), and Cox v. Fab Universal Corp. et al. (1:13-cv-08716-RWS, filed 12/09/13). According to the complaints, defendants made false and/or misleading statements and failed to disclose material adverse facts about FAB's business, operations, prospects and performance. Plaintiffs allege that defendants overstated the number of kiosks that FAB had deployed. FAB's kiosks are "inundated with pirated digital entertainment content," and the company's Chinese subsidiary issued RMB 100 million ($16.4 million) worth of bonds to Chinese investors that are not reflected in the Company's publicly disclosed financial statements. Based on the foregoing, plaintiffs assert causes of action for violation of Sections 10(b) and 20(a) of the securities Exchange Act of 1934. Plaintiffs seek unspecified compensatory damages, recessionary damages, fees and costs. | |
In February 2014, two derivative actions were filed in the federal court for the Southern District of New York against its CEO, CFO and board of directors. The suits are Thorbjonsen v. Spencer et al. (1:14-cv-00687-UA, filed 02/03/14) and Rowekamp v. Spencer et al. (1:14-cv-01114-RWS, filed 02/21/14). Plaintiffs in the derivative action claim, on behalf of FAB Universal that Defendants breached their fiduciary duties of loyalty, due care, good faith, independence, candor and full disclosure to shareholders; misappropriated material, non-public information of FAB Universal, and violated of Section 14(a) of the Securities Exchange Act of 1934 and Rule 14a-9 promulgated there under. | |
In 2009, West Chang'an Avenue Development Co., Ltd ("landlord") filed a lawsuit against FAB Media for unpaid rent and other payments due the landlord. The court ruled in favor of the plaintiff, and with this ruling the two parties reached a settlement, which included the implementation of the Lease Agreement commencing January 1, 2010. The ruling was that FAB pay rent in arrears, penalty and property fees totaling RMB 2 million ($0.32million USD). The landlord then filed a claim against the Company for rent in arrears. | |
The Company appealed the decision, and the result was the court overturned the decision and remanded the case. However, after a retrial, the court ruled in favor of the plaintiff, and the company had to vacate the leased space, pay off the rent, property fees and penalty, totaling about RMB 5.9 million ($0.95 million USD). | |
The case went through second trial, and the retrial procedure did not change the verdict. Payment plus interest on the debt of period, the amount payable rose to RMB 7 million ($1.1 million USD). On May 23, 2014, the court ruled in favor of the plaintiff and the judgment for rent in arrears and penalty is RMB $7.5 million ($1.2 million USD). The judgment has been in force, and has entered into the implementation procedure. The Company has to fulfill the payment in an amount of approximately RMB $7.5 million ($1.2 million USD). |
RESTATEMENT_OF_PREVIOUSLY_ISSU
RESTATEMENT OF PREVIOUSLY ISSUED UNAUDITED QUARTERLY FINANCIAL INFORMATION | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
RESTATEMENT OF PREVIOUSLY ISSUED UNAUDITED QUARTERLY FINANCIAL INFORMATION [Abstract] | ' | |||||||||||
RESTATEMENT OF PREVIOUSLY ISSUED UNAUDITED QUARTERLY FINANCIAL INFORMATION | ' | |||||||||||
NOTE 17 - RESTATEMENT OF PREVIOUSLY ISSUED UNAUDITED QUARTERLY FINANCIAL INFORMATION | ||||||||||||
Subsequent to the issuance of our interim financial statements for the second and third quarter 2013, management became aware of several financial statement errors due to an unreported bond offering (see Note 8). The Company has restated certain line items in the unaudited consolidated financial statements. The restatement impact on the unaudited condensed consolidated statements consist of the following items: | ||||||||||||
Consolidated balance sheet | ||||||||||||
· | ||||||||||||
reflect the net proceeds on the bond offering in cash totaling $15.8 million; | ||||||||||||
· | ||||||||||||
reflect the deferred financing costs as a prepaid expense of $459,000 and $419,000 as of June 30, 2013 and September 30, 2013, respectively. The amount represents the underwriter's fee which is amortized on a straight-lined basis over the life of the bond (3 Years); | ||||||||||||
· | ||||||||||||
reflect the accrual of interest expense $324,000 and $778,000 on the bond as accrued expense. The amounts represent interest due to the holders of the bond through June 30, 2013 and September 30, 2013, respectively. Interest on the bond is paid on an annual basis. | ||||||||||||
· | ||||||||||||
reflect the long-term bond payable of $16.3 million as of June 30, 2013 and September 30, 2013. | ||||||||||||
Consolidated statement of operations and comprehensive income (loss) | ||||||||||||
· | ||||||||||||
The net impact of interest expense, deferred financing costs and interest income reflect a $476,000 and $820,000 decrease of net income for the three and nine month periods ended September 30, 2013, respectively. | ||||||||||||
· | ||||||||||||
The net impact of interest expense, deferred financing costs and interest income reflect a $344,000 decrease of net income for the three and six month periods ended June 30, 2013. | ||||||||||||
Consolidated statement of cash flows | ||||||||||||
· | ||||||||||||
As a result of above and restatement, the corresponding line items on the consolidated statements of cash flows have been restated. | ||||||||||||
The effect of restatement and the impact on the quarterly unaudited condensed consolidated balance sheet as of June 30, 2013 and September 30, 2013, the unaudited consolidated statement of operation and comprehensive income (loss) for the three and six month periods ended June 30, 2013, and the three and nine month periods ended September 30, 2013, and the unaudited condensed consolidated statement of cash flows for the six months ended June 30, 2013 and nine months ended September 30, 2013, are presented below. | ||||||||||||
FAB UNIVERSAL CORP AND SUBSIDIARIES | ||||||||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET | ||||||||||||
(includes only the restated accounts) | ||||||||||||
As of June 30, 2013 | ||||||||||||
As restated | As previously reported | Changes Inc(dec) | ||||||||||
Cash | $ 43,488,954 | $ 27,675,214 | $ 15,813,740 | |||||||||
Other current assets | 847,174 | 387,815 | 459,359 | |||||||||
Total current assets | 63,160,794 | 46,887,695 | 16,273,099 | |||||||||
Total assets | 210,889,142 | 194,616,043 | 16,273,099 | |||||||||
Accrued expenses | 3,069,905 | 2,745,809 | 324,096 | |||||||||
Total current liabilities | 28,073,327 | 27,749,231 | 324,096 | |||||||||
Long-term bond payable | 16,294,075 | - | 16,294,075 | |||||||||
Total liabilities | 65,792,912 | 49,174,741 | 16,618,171 | |||||||||
Accumulated other comprehensive income | 3,417,376 | 3,418,424 | -1,048 | |||||||||
Accumulated deficit | -65,871,492 | -65,527,468 | -344,024 | |||||||||
Total stockholders' equity | 145,096,230 | 145,441,302 | -345,072 | |||||||||
Total liabilities and stockholders' equity | $210,889,142 | $194,616,043 | $ 16,273,099 | |||||||||
FAB UNIVERSAL CORP AND SUBSIDIARIES | ||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF | ||||||||||||
OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | ||||||||||||
(includes only the restated accounts) | ||||||||||||
For the Three Months Ended June 30, 2013 | For the Six Months Ended June 30, 2013 | |||||||||||
As restated | As previously reported | Change Inc(dec) | As restated | As previously reported | Change Inc(dec) | |||||||
Interest income | $ 8,461 | $ - | $ 8,461 | $ 7,020 | $ 28,559 | $ 8,461 | ||||||
Interest (expense) | -327,115 | -4,004 | 323,111 | -366,265 | -43,154 | 323,111 | ||||||
Other income (expense) | -85,147 | -55,773 | 29,374 | -84,344 | -54,970 | 29,374 | ||||||
Total Other Income (Expense) | -403,801 | -59,777 | 344,024 | -413,589 | -69,565 | 344,024 | ||||||
Income (loss) from continuing operations before income taxes | 7,043,981 | 7,388,005 | -344,024 | 11,290,820 | 11,634,844 | -344,024 | ||||||
Net income (loss) from continuing operations | 5,385,139 | 5,729,163 | -344,024 | 8,389,136 | 8,733,160 | -344,024 | ||||||
Net Income (loss) | 5,385,139 | 5,729,163 | -344,024 | 8,389,136 | 8,733,160 | -344,024 | ||||||
Foreign currency translation gain | 1,542,802 | 1,543,850 | -1,048 | 2,033,011 | 2,034,059 | -1,048 | ||||||
COMPREHENSIVE INCOME (LOSS) | $6,927,941 | $7,273,013 | ($345,072) | $10,422,147 | $10,767,219 | ($345,072) | ||||||
BASIC AND DILUTED INCOME PER COMMON SHARE FROM CONTINUING OPERATIONS | $ 0.26 | $ 0.28 | $ (0.02) | $ 0.41 | $ 0.42 | $ (0.01) | ||||||
BASIC AND DILUTED INCOME PER COMMON SHARE | $ 0.26 | $ 0.28 | $ (0.02) | $ 0.41 | $ 0.42 | $ (0.01) | ||||||
FAB UNIVERSAL CORP AND SUBSIDIARIES | ||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
(includes only the restated accounts) | ||||||||||||
For the Six Months Ended June 30, 2013 | ||||||||||||
As restated | As previously reported | Change Inc/(dec) | ||||||||||
Cash Flows from Operating Activities | ||||||||||||
Net income (loss) from continuing operations | $ 8,389,136 | $ 8,733,160 | $ (344,024) | |||||||||
Change in assets and liabilities: | ||||||||||||
Prepaid expenses | 144,161 | 603,520 | (459,359) | |||||||||
Accrued expense | 327,527 | 3,431 | 324,096 | |||||||||
Net Cash Provided by (Used in) continuing operations | 22,049,025 | 22,528,312 | -479,287 | |||||||||
Net Cash Provided by (Used in) Operating Activities | 22,049,025 | 22,528,312 | -479,287 | |||||||||
Cash Flows from Financing Activities: | ||||||||||||
Proceeds from long-term bond offering | 16,294,075 | - | 16,294,075 | |||||||||
Net Cash Used in Financing Activities | 16,146,771 | -147,304 | 16,294,075 | |||||||||
Effect of Exchange Rate Fluctuation on Cash | 340,544 | 341,592 | (1,048) | |||||||||
Net Increase (decrease) in Cash | 23,817,017 | 8,003,277 | 15,813,740 | |||||||||
Cash at Beginning of Period | 19,671,937 | 19,671,937 | - | |||||||||
Cash at the end of Period | $43,488,954 | $27,675,214 | $15,813,740 | |||||||||
FAB UNIVERSAL CORP AND SUBSIDIARIES | ||||||||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET | ||||||||||||
(includes only restated accounts) | ||||||||||||
As of September 30, 2013 | ||||||||||||
As restated | As previously reported | Changes Inc(dec) | ||||||||||
Cash | $ 59,444,652 | $ 43,575,330 | $ 15,869,322 | |||||||||
Other current assets | 713,113 | 293,724 | 419,389 | |||||||||
Total current assets | 79,593,866 | 63,305,155 | 16,288,711 | |||||||||
Total assets | 227,060,169 | 210,771,458 | 16,288,711 | |||||||||
Accrued expenses | 3,710,012 | 2,932,105 | 777,907 | |||||||||
Total current liabilities | 30,937,368 | 30,159,461 | 777,907 | |||||||||
Long-term bond payable | 16,336,933 | - | 16,336,933 | |||||||||
Total liabilities | 74,612,311 | 57,497,471 | 17,114,840 | |||||||||
Accumulated other comprehensive income | 3,766,299 | 3,772,701 | -6,402 | |||||||||
Accumulated deficit | -59,055,756 | -58,236,029 | -819,727 | |||||||||
Total stockholders' equity | 152,447,858 | 153,273,987 | -826,129 | |||||||||
Total liabilities and stockholders' equity | $227,060,169 | $210,771,458 | $16,288,711 | |||||||||
FAB UNIVERSAL CORP AND SUBSIDIARIES | ||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF | ||||||||||||
OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | ||||||||||||
(Includes only restated accounts) | ||||||||||||
For the Three Months Ended Sept. 30, 2013 | For the Nine Months Ended Sept. 30, 2013 | |||||||||||
As restated | As previously reported | Change Inc(dec) | As restated | As previously reported | Change Inc(dec) | |||||||
Interest income | $ 40,941 | $ 27,079 | $ 13,862 | $ 77,961 | $ 55,638 | $ 22,323 | ||||||
Interest (expense) | -515,291 | -66,523 | 448,768 | -881,556 | -109,677 | 771,879 | ||||||
Other income (expense) | -48,255 | -7,458 | 40,797 | -132,599 | -62,428 | 70,171 | ||||||
Total Other Income (Expense) | -522,605 | -46,902 | 475,703 | -936,194 | -116,467 | 819,727 | ||||||
Income (loss) from continuing operations before income taxes | 8,680,283 | 9,155,986 | -475,703 | 19,971,103 | 20,790,830 | -819,727 | ||||||
Net income (loss) from continuing operations | 6,815,736 | 7,291,439 | -475,703 | 15,204,872 | 16,024,599 | -819,727 | ||||||
Net Income (loss) | 6,815,736 | 7,291,439 | -475,703 | 15,204,872 | 16,024,599 | -819,727 | ||||||
Foreign currency translation gain | 348,923 | 354,277 | -5,354 | 2,381,934 | 2,388,336 | -6,402 | ||||||
COMPREHENSIVE INCOME (LOSS) | $7,164,659 | $ 7,645,716 | ($481,057) | $17,586,806 | $18,412,935 | ($826,129) | ||||||
BASIC AND DILUTED INCOME PER COMMON SHARE FROM CONTINUING OPERATIONS | $ 0.33 | $ 0.35 | $ (0.02) | $ 0.73 | $ 0.77 | $ (0.04) | ||||||
BASIC AND DILUTED INCOME PER COMMON SHARE | $ 0.33 | $ 0.35 | $ (0.02) | $ 0.73 | $ 0.77 | $ (0.04) | ||||||
FAB UNIVERSAL CORP AND SUBSIDIARIES | ||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
(includes only restated accounts) | ||||||||||||
For the Nine Months Ended September 30, 2013 | ||||||||||||
As restated | As previously reported | Change Inc(dec) | ||||||||||
Cash Flows from Operating Activities | ||||||||||||
Net income (loss) from continuing operations | $15,204,872 | $16,024,599 | $ (819,727) | |||||||||
Change in assets and liabilities: | ||||||||||||
Prepaid expenses | 285,139 | 704,528 | (419,389) | |||||||||
Accrued expense | 960,545 | 182,638 | 777,907 | |||||||||
Net Cash Provided by continuing operations | 38,576,554 | 39,037,763 | -461,209 | |||||||||
Net Cash Provided by Operating Activities | 38,576,554 | 39,037,763 | -461,209 | |||||||||
Cash Flows from Financing Activities: | ||||||||||||
Proceeds from long-term bond offering | 16,336,933 | - | 16,336,933 | |||||||||
Net Cash Provided by (Used in) Financing Activities | 15,915,199 | -421,734 | 16,336,933 | |||||||||
Effect of Exchange Rate Fluctuation on Cash | 476,752 | 483,154 | (6,402) | |||||||||
Net Increase (decrease) in Cash | 39,772,715 | 23,903,393 | 15,869,322 | |||||||||
Cash at Beginning of Period | 19,671,937 | 19,671,937 | - | |||||||||
Cash at the end of Period | $59,444,652 | $43,575,330 | $15,869,322 |
CONCENTRATIONS
CONCENTRATIONS | 12 Months Ended |
Dec. 31, 2013 | |
CONCENTRATIONS [Abstract] | ' |
CONCENTRATIONS | ' |
NOTE 18 - CONCENTRATIONS | |
For the years ended December 31, 2013 and 2012, no individual customer accounted for more than 10% of the total revenues. As of December 31, 2013, three customers accounted for 16%, 11%, and 10% and as of December 31, 2012, no single customer accounted for more than 10% of total outstanding accounts receivable, respectively. | |
For the years ended December 31, 2013, no individual suppliers accounted for more than 10% of the Company's purchases, no single vendor accounted for more than 10% of total outstanding accounts payable. For the year ended December 31, 2012, four vendors provided 16%, 13%, 13% and 10% of the Company's purchases, respectively, one vendor accounted for 14% of the total outstanding accounts payable. |
SEGMENT_REPORTING
SEGMENT REPORTING | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
SEGMENT REPORTING [Abstract] | ' | ||||||||||||||||
SEGMENT REPORTING | ' | ||||||||||||||||
NOTE 19 - SEGMENT REPORTING | |||||||||||||||||
ASC 280, "Segment Reporting", establishes standards for reporting information about operating segments on a basis consistent with the Company's internal organizational structure as well as information about geographical areas, business segments and major customers in financial statements for details on the Company's business segments. | |||||||||||||||||
The Company is engaged in distribution of digital entertainment products and services. The Company's chief operating decision maker ("CODM") has been identified as the CEO who reviews the financial information of separate operating segments when making decisions about allocating resources and assessing performance of the group. Based on management's assessment, the Company has determined that it has three operating segments as of December 31, 2013 which are wholesale, retail and FAB brand licensing. | |||||||||||||||||
The following table presents summary information by segment for the years ended December 31, 2013 and 2012, respectively: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Wholesale | Retail | Digital | Total | Wholesale | Retail | Digital | Total | ||||||||||
Revenue | $ | 60,404 | $ | 9,010 | $ | 41,459 | $ | 110,873 | $ | 16,409 | $ | 2,000 | $ | 9,050 | $ | 27,459 | |
Cost of revenue | $ | 48,537 | $ | 6,543 | $ | 8,379 | $ | 63,459 | $ | 12,902 | $ | 1,449 | $ | 2,089 | $ | 16,440 | |
Gross Profit | $ | 11,867 | $ | 2,467 | $ | 33,080 | $ | 47,414 | $ | 3,507 | $ | 552 | $ | 6,960 | $ | 11,019 | |
Total assets | $ | 74,705 | $ | 49,741 | $ | 116,387 | $ | 240,833 | $ | 37,061 | $ | 24,719 | $ | 106,015 | $ | 167,795 | |
Depreciation and amortization | $ | 252 | $ | 888 | $ | 5,748 | $ | 6,888 | $ | 156 | $ | 305 | $ | 1,511 | $ | 1,972 |
QUARTERLY_FINANCIAL_INFORMATIO
QUARTERLY FINANCIAL INFORMATION | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
QUARTERLY FINANCIAL INFORMATION [Abstract] | ' | ||||||||||
QUARTERLY FINANCIAL INFORMATION | ' | ||||||||||
NOTE 20 - QUARTERLY FINANCIAL INFORMATION (Unaudited) | |||||||||||
The following table set forth unaudited financial information on a quarterly basis for each of the last two years: | |||||||||||
(in thousands) | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Total | ||||||
2013 | restated | restated | |||||||||
Revenues | $ | 22,636 | $ | 25,857 | $ | 29,751 | $ | 32,629 | $ | 110,873 | |
Gross profit | 8,375 | 11,495 | 14,090 | 13,454 | 47,414 | ||||||
Operating income (loss) - continuing operations | 4,247 | 7,043 | 8,680 | 7,224 | 27,194 | ||||||
Net income (loss) - continuing operations | 3,004 | 5,385 | 6,816 | 5,448 | 20,653 | ||||||
Net income (loss) available to common stockholders | 3,004 | 5,385 | 6,816 | 5,448 | 20,653 | ||||||
Basic and diluted income (loss) per share - continuing operations | 0.15 | 0.26 | 0.33 | 0.25 | 0.99 | ||||||
Basic and diluted income (loss) per share | 0.15 | 0.26 | 0.33 | 0.25 | 0.99 | ||||||
2012 | |||||||||||
Revenues | $ | 847 | $ | 870 | $ | 1,745 | $ | 23,997 | $ | 27,459 | |
Gross profit | 548 | 507 | 961 | 9,003 | 11,019 | ||||||
Operating loss - continuing operations | -1,103 | -517 | -4,784 | 3,572 | -2,832 | ||||||
Net loss - continuing operations | -1,103 | -517 | -4,836 | 2,274 | -4,182 | ||||||
Net loss | -997 | -330 | -4,950 | 2,273 | -4,004 | ||||||
Basic and diluted loss per share - continuing operations | -0.13 | -0.06 | (0.50) | 0.33 | -0.36 | ||||||
Basic and diluted loss per share | -0.12 | -0.04 | (0.51) | 0.33 | -0.34 |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2013 | |
SUBSEQUENT EVENTS [Abstract] | ' |
SUBSEQUENT EVENTS | ' |
NOTE 21 - SUBSEQUENT EVENTS | |
On January 7, 2014, the Board of Directors decided not to purchase the Longyuan building, and the Company started the process for the return of the deposit. The deposit has not been returned and we are currently in negotiations with the owner of the building as to the amount of the compensation to be paid per the terms of the agreement of Intent for Property Transfer. | |
On January 23, 2014, FAB Entertainment Corporation, a subsidiary of DGC, entered into a 63 month agreement to lease office space located at 10100 Santa Monica Boulevard, Los Angeles, California. The company paid a security deposit of $309,312, and the monthly rent will be $25,776. The lease is guaranteed by FAB Universal Corp. | |
Management has evaluated subsequent events through June 25, 2014, the date which the consolidated financial statements were available to be issued. All subsequent events requiring recognition as of December 31, 2013 have been incorporated into these consolidated financial statements, and besides the disclosures herein, there are no additional subsequent events that require disclosure in accordance with FASB ASC Topic 855, "Subsequent Events". |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' |
Accounting Estimates | ' |
Accounting Estimates - The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Management made assumptions and estimates for determining reserve for accounts receivable, obsolete inventory, the realization of deferred tax assets and in determining the impairment of finite life intangible assets and goodwill and accruals for income tax uncertainties and other contingencies when applicable. Actual results could differ from those estimated by management. | |
Reclassification | ' |
Reclassification - The financial statements for the period ended December 31, 2012 have been reclassified to conform to the headings and classifications used in the December 31, 2013 financial statements. | |
Restricted cash | ' |
Restricted cash-Restricted cash represents deposits not readily available to the Company because they are required to be pledged to secure note payable outstanding as of December 31, 2013 (note 8). | |
Inventory | ' |
Inventory - Inventory includes books and video products and is recorded at the lower of cost or market, using the first-in, first-out ("FIFO") method. The Company estimates net realizable value based on current market value and inventory aging analyses. As of December 31, 2013 no reserve for slow-moving or obsolete inventory is considered necessary. | |
Revenue Recognition | ' |
Revenue Recognition - Revenue is recognized when earned. The Company's revenue recognition policies are in compliance with FASB ASC Topic 985-605, Software - Revenue Recognition. The Company's revenue recognition policies are also in compliance with the Securities and Exchange Commission Staff Accounting Bulletin No. 101 and 104. | |
Digital media publishing services are billed on a month to month basis. The Company recognizes revenue from providing digital media publishing services when the services are provided and when collection is probable. The Company recognizes revenue from the insertion of advertisements in digital media, as the digital media with the advertisement is downloaded and collection is probable. The Company recognizes revenue from the sale of apps and premium subscriptions when sold and collection is probable. | |
The Company sells packaged and custom software products and related voice recognition product development consulting. Software product revenues are recognized upon shipment of the software product only if no significant Company obligations remain, the fee is fixed or determinable, and collection is received or the resulting receivable is deemed probable. | |
In the PRC, Value Added Tax ("VAT") of 17% of the invoice amount is collected in respect of the sales of goods on behalf of tax authorities. The VAT collected is not revenue of the Company; instead, the amount is recorded as a liability on the balance sheet until such VAT is paid to the authorities. | |
Product revenue is recognized when title to the product has transferred to customers in accordance with the terms of the sale; the sales price to the customer is fixed or determinable, and collectability is reasonably assured. Revenues are recorded net of applicable sales taxes. | |
The Company derives revenue from retail sales, sales to retailers, and Digital sales. Revenue from Digital sales includes advertisement revenue, membership card revenue, download revenue and licensing revenue. | |
Revenue from retail sales is recognized at the point-of-sale. Revenue from sales to retailers is recognized at the point of delivery of the product. Download service revenue is recognized when substantially all material services or conditions relating the sales have been performed or satisfied, and the Company has no obligation to refund any payment (cash or otherwise) received. Revenue generated from Membership sales is non-refundable. Membership card revenue is amortized over the life of the membership period, membership cards with par value of RMB 100 have an expiration period of three months, and par value of RMB 200, 300, 400 and 500 have an expiration period of twelve months. Advertisement revenue is recognized over the contract period. Licensing revenue is amortized ratably over the term of the agreement which is generally five years. Deferred revenue represents unearned revenues related primarily to sales of licenses and FAB Membership cards. | |
Revenue from package software products is recorded when the payment has been received and the software has been shipped. Revenue is recognized, net of discount and allowances, at the time of product shipment. Revenue from non-recurring programming, engineering fees, consulting service, support arrangements and training programs is recognized when the services are provided. | |
Accounts Receivable | ' |
Accounts Receivable - We evaluate the creditworthiness of our customers based on their financial information, if available, as well as information obtained from suppliers and past experiences with customers. Accounts receivable consist of trade receivables arising in the normal course of business. Any allowance established is subject to judgment and estimates made by management. The Company determines the allowance based on known troubled accounts, historical experience, and other currently available evidence. We established an allowance for doubtful accounts of $14,000 at December 31, 2013 and 2012. | |
Stock-based Compensation | ' |
Stock-based Compensation - The Company accounts for options in accordance with the provisions of Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") ASC Topic 718, Compensation - Stock Compensation. For the years ended December 31, 2013 and 2012, the Company recorded stock-based employee compensation expense of $423,796 and $5,086 for vesting of stock options, respectively, and stock-based compensation expense to employees and consultants of $329,600 and $4,159,800, respectively, for options that were issued and immediately exercised. | |
Functional Currency / Foreign Currency Translation | ' |
Functional Currency / Foreign Currency Translation - The functional currency of FAB Universal Corp is the United States Dollar (USD). The functional currency of DEI is the Renminbi ("RMB") and its reporting currency is U.S. dollars for the purpose of these financial statements. The Company's consolidated balance sheet accounts are translated into U.S. dollars at the period-end exchange rates (6.054 RMB to $1 at December 31, 2013) and all revenue and expenses are translated into U.S. dollars at the average exchange rates prevailing during 2013 (6.1492 RMB to $1) in which these items arise. Translation gains and losses are deferred and accumulated as a component of other comprehensive income in stockholders' equity. Transaction gains and losses that arise from exchange rate fluctuations from transactions denominated in a currency other than the functional currency are included in the statement of operations as incurred. | |
Fair Value of Financial Instruments | ' |
Fair Value of Financial Instruments - The Company accounts for fair value measurements for financial assets and financial liabilities in accordance with FASB ASC Topic 820. The authoritative guidance, which, among other things, defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is defined as the exit price, representing the amount that would either be received to sell an asset or be paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the guidance 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 in active markets for identical assets or liabilities; | |
• | |
Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and | |
• | |
Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. | |
Unless otherwise disclosed, the fair value of the Company's financial instruments including cash, accounts receivable, prepaid expenses, accounts payable, accrued expenses, current deferred revenue and notes payable approximates their recorded values due to their short-term maturities. Long-term deposits represent cash and therefore, their carrying value represents fair value. The fair value of the Company's long-term deposits, non-current deferred revenue, long-term bond payable and other liabilities has no material difference with the book values based on the calculated results. | |
Property and Equipment | ' |
Property and Equipment - Property and equipment are stated at cost less accumulated depreciation. Depreciation and amortization is calculated on the straight-line method over the estimated useful lives of the assets as set out below: | |
Estimated Useful Life | |
Electronic equipment 2-5 years | |
Office furniture and equipment 2-10 years | |
Vehicles 5 years | |
Building 48.5 years | |
Leasehold improvements Shorter of lease terms or estimated useful life | |
Goodwill and Other Intangible Assets | ' |
Goodwill and other Intangible Assets - The Company accounts for Goodwill and other intangible assets in accordance with provisions of FASB -ASC Topic 350, Intangibles--Goodwill and Other. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but instead are tested for impairment at least annually in accordance with the provisions of Topic 350. Impairment losses arising from this impairment test, if any, are included in operating expenses in the period of impairment. Topic 350 requires that intangible assets with finite lives be amortized over their respective estimated useful lives, and reviewed for impairment in accordance with Topic 360, criteria for recognition of an impairment of Long-Lived Assets. | |
Income Taxes | ' |
Income Taxes - The Company is subject to the Income Tax Laws of U.S. and the PRC. The Company accounts for income taxes in accordance with ASC 740, "Income Taxes". ASC 740 requires an asset and liability approach for financial accounting and reporting for income taxes and allows recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future deductibility is uncertain. The components of deferred tax assets are individually classified as current and non-current based on their characteristics. | |
ASC 740-10-25 prescribes a more-likely-than-not threshold for consolidated financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return. It also provides guidance on the recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, years open for tax examination, accounting for income taxes in interim periods and income tax disclosures. There is no material uncertain tax positions as of December 31, 2013 and 2012, respectively (See note 13 - Capital Stock and note 16- Contingencies). | |
Recently Accounting Pronouncements | ' |
Recent Accounting Pronouncements - The Company has adopted all recently issued accounting pronouncements that management believes to be applicable to the Company. The adoption of these accounting pronouncements, including those not yet effective, is not anticipated to have a material effect on the Company's financial position or results of operations. | |
ORGANIZATION_AND_BASIS_OF_PRES1
ORGANIZATION AND BASIS OF PRESENTATION (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
ORGANIZATION AND BASIS OF PRESENTATION [Abstract] | ' | ||||
Condensed Consolidated Balance Sheet | ' | ||||
31-Dec-13 | 31-Dec-12 | ||||
Cash and Restricted cash | $ | 99,077,811 | $ | 19,291,600 | |
Accounts receivable, net | 7,227,270 | 6,666,985 | |||
Deferred tax assets, current | 2,830,200 | 1,771,799 | |||
Other current assets | 4,820,393 | 5,779,940 | |||
Total current assets | 113,955,674 | 33,510,324 | |||
Property, plant and equipment, net | 14,989,176 | 15,182,291 | |||
Intangible assets, net | 434,304 | - | |||
Deferred tax assets, non-current | 5,227,865 | 3,346,166 | |||
Long-term deposits | 20,089,263 | 24,484,549 | |||
Total assets(1) | 154,696,282 | 76,523,330 | |||
Short-term bank loans | 6,276,842 | 1,612,826 | |||
Accounts payable | 2,924,374 | 5,856,233 | |||
Accrued expenses | 4,008,363 | 2,637,676 | |||
Deferred revenue, current | 15,294,998 | 8,178,970 | |||
Other current liability | 7,491,885 | 3,534,867 | |||
Total current liabilities | 35,996,462 | 21,820,572 | |||
Long-term deposits from customers | 2,244,797 | 2,474,604 | |||
Deferred revenue, non-current | 25,432,654 | 7,923,450 | |||
Long-term bonds payable | 16,518,005 | - | |||
Total liabilities(1) | 80,191,918 | 32,218,626 | |||
(1) Total assets and liabilities of the VIE are reported net of intercompany balances that have been eliminated with the VIE consolidation | |||||
Condensed Consolidated Results of Operations | ' | ||||
For the year ended December 31, 2013 | Period from September 27, 2012 to December 31, 2012 | ||||
Revenue | $ | 105,932,361 | $ | 23,708,308 | |
Net income | 20,820,847 | 3,136,626 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2013 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' |
Schedule of Estimated Useful Lives of Property And Equipment | ' |
Estimated Useful Life | |
Electronic equipment 2-5 years | |
Office furniture and equipment 2-10 years | |
Vehicles 5 years | |
Building 48.5 years | |
Leasehold improvements Shorter of lease terms or estimated useful life |
GOODWILL_AND_OTHER_INTANGIBLE_1
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract] | ' | ||||||||||||||
Schedule of Goodwill by Entity | ' | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2013 | 2012 | ||||||||||||||
Digital Entertainment International - DEI | $ | 50,608,681 | $ | 49,168,706 | |||||||||||
Webmayhem Inc.(Libsyn) | 11,484,251 | 11,484,251 | |||||||||||||
Total Goodwill | $ | 62,092,932 | $ | 60,652,957 | |||||||||||
Summary of Goodwill | ' | ||||||||||||||
For the Year Ended December 31, | For the Year Ended December 31, | ||||||||||||||
2013 | 2012 | ||||||||||||||
Goodwill at beginning of period | $ | 60,652,957 | $ | 12,673,912 | |||||||||||
Foreign currency translation gain | 1,439,975 | - | |||||||||||||
Acquisition of DEI | - | 49,168,706 | |||||||||||||
Goodwill discontinued operations | - | -1,189,661 | |||||||||||||
Goodwill at end of period | $ | 62,092,932 | $ | 60,652,957 | |||||||||||
Summary of Intangible Assets | ' | ||||||||||||||
Preliminary | Weighted Average | Accumulated | Currency Translation Adjustment | Net Carrying | |||||||||||
Fair Value | Useful Life | Amortization | Amount | ||||||||||||
(in Years) | |||||||||||||||
Customer Relationships | $ | 8,900,000 | 3 | $ 3,828,235 | $ 293,749 | $ 5,365,514 | |||||||||
Intellectual Property | 4,300,000 | 3 | 1,849,597 | 141,923 | 2,592,326 | ||||||||||
Trade name | 13,876,000 | (a) | (a) | 572,093 | 14,448,093 | ||||||||||
Copyrights | 902,653 | (b) | 128,436 | 0 | 774,217 | ||||||||||
Non-compete | 1,885,200 | 2 | 1,216,345 | 54,471 | 723,326 | ||||||||||
Total | $ | 29,863,853 | $ 7,022,613 | $ 1,062,236 | $ 23,903,476 | ||||||||||
(a) The FAB trade name has been determined to have an indefinite life. | |||||||||||||||
(b) The copyrights useful lives are from 1 year to 10 years. | |||||||||||||||
Schedule of Future Amortization Expenses Related to Other Intangible Assets | ' | ||||||||||||||
For twelve months ending December 31, | |||||||||||||||
2014 | $ 5,491,673 | ||||||||||||||
2015 | 3,830,173 | ||||||||||||||
2016 | 87,014 | ||||||||||||||
Thereafter | 46,523 | ||||||||||||||
Total | $ 9,455,383 |
ACCOUNTS_RECEIVABLE_Tables
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
ACCOUNTS RECEIVABLE [Abstract] | ' | ||
Schedule of Accounts Receivable | ' | ||
December 31, | |||
2013 | 2012 | ||
Accounts receivable | $ 7,568,919 | $ 6,941,045 | |
Allowance for doubtful accounts | -14,000 | -14,000 | |
Accounts receivable, net | $ 7,554,919 | $ 6,927,045 |
PROPERTY_AND_EQUIPMENT_Tables
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
PROPERTY AND EQUIPMENT [Abstract] | ' | |||
Schedule of Property and Equipment | ' | |||
31-Dec | 31-Dec | |||
2013 | 2012 | |||
Electronic equipment | $ 1,726,239 | $ 1,436,466 | ||
Office furniture and equipment | 62,248 | 54,077 | ||
Vehicles | 372,996 | 57,471 | ||
Building | 14,072,796 | 14,366,218 | ||
Leasehold improvements | 3,804,395 | 3,607,563 | ||
20,038,674 | 19,521,795 | |||
Less: Accumulated depreciation | -3,464,543 | -2,801,158 | ||
Total property and equipment, net | $ 16,574,131 | $ 16,720,637 |
LONGTERM_DEPOSITS_Tables
LONG-TERM DEPOSITS (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
LONG-TERM DEPOSITS [Abstract] | ' | ||||
Schedule of Long-Term Deposits | ' | ||||
December 31, | December 31, | ||||
2013 | 2012 | ||||
Prepayments for setting up flagship stores | $ | 3,303,601 | $ | 20,862,420 | |
Anti-piracy sales guarantee deposits | 3,303,601 | 3,370,083 | |||
Building Deposit | 13,214,404 | - | |||
Rent deposits | 271,239 | 255,628 | |||
Total Long-Term Deposits | $ | 20,092,845 | $ | 24,488,131 |
SHORTTERM_LOANS_Tables
SHORT-TERM LOANS (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
SHORT-TERM LOANS [Abstract] | ' | ||||
Schedule of Short-term Loans | ' | ||||
December 31, | December 31, | ||||
2013 | 2012 | ||||
Prime Rate Financial | $ | - | $ | 459,793 | |
Bank of Communication | 1,651,800 | 8,024 | |||
China Merchants Bank | - | 1,604,802 | |||
Minsheng Bank | 1,321,440 | - | |||
Nanjing Bank | 1,651,801 | - | |||
China Dalian Bank | 1,651,801 | - | |||
Total Short-Term Loans | $ | 6,276,842 | $ | 2,072,619 |
RELATED_PARTIES_Tables
RELATED PARTIES (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
RELATED PARTIES [Abstract] | ' | ||||
Schedule of Related Party Transactions | ' | ||||
31-Dec | 31-Dec | ||||
2013 | 2012 | ||||
Guangdong Endless Culture co., Ltd | $ | - | $ | 4,814 | |
Zhang Hongcheng | 122,596 | 36,527 | |||
Total due to related parties | $ | 122,596 | $ | 41,341 | |
Schedule of Future Minimum Rental Payments | ' | ||||
Rental | |||||
Twelve months ending December 31, | Commitments | ||||
2014 | $ 1,238,325 | ||||
2015 | 1,214,969 | ||||
2016 | 754,117 | ||||
2017 | 250,208 | ||||
2018 | - | ||||
Thereafter | - | ||||
Total | $ 3,457,619 |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
DEI [Member] | ' | ||||
Income Taxes [Line Items] | ' | ||||
Schedule of Deferred Tax Assets and Liabilities | ' | ||||
December 31, | December 31, | ||||
2013 | 2012 | ||||
Current deferred tax assets | |||||
Deferred revenue | $ | 2,830,200 | $ | 1,771,799 | |
Valuation allowance | - | - | |||
Net current deferred tax assets | $ | 2,830,200 | $ | 1,771,799 | |
Non-current deferred assets | |||||
Deferred revenue | $ | 5,227,865 | $ | 3,346,166 | |
Valuation allowance | - | - | |||
Net non-current deferred tax assets | 5,227,865 | 3,346,166 | |||
$ | 8,058,065 | $ | 5,117,965 | ||
Schedule of Taxes Payable | ' | ||||
31-Dec | 31-Dec | ||||
2013 | 2012 | ||||
Value added tax payable | $ | 365,558 | $ | -411,352 | |
Income tax payable | 1,988,083 | 1,885,489 | |||
Business tax payable | -6,592 | -6,404 | |||
Other | 261,772 | 136,088 | |||
Total taxes payable | $ | 2,608,821 | $ | 1,603,821 | |
Schedule of Income Tax Expense | ' | ||||
31-Dec | 31-Dec | ||||
2013 | 2012 | ||||
Current income tax expense | $ | 9,287,453 | $ | 1,908,689 | |
Deferred income tax benefit | -2,747,060 | -609,985 | |||
Total net taxes expense | $ | 6,540,393 | $ | 1,350,704 | |
U.S. Operations [Member] | ' | ||||
Income Taxes [Line Items] | ' | ||||
Schedule of Deferred Tax Assets and Liabilities | ' | ||||
December 31, | |||||
2013 | 2012 | ||||
Current deferred tax assets (liabilities): | |||||
Allowance for doubtful accounts | $ | 5,683 | $ | 5,683 | |
Bonus accrual | - | - | |||
Vacation accrual | - | - | |||
Valuation allowance | -5,683 | -5,683 | |||
Total current deferred tax assets (liabilities) | - | - | |||
Long-term deferred tax assets (liabilities): | |||||
Excess of goodwill/intangible assets amortization for tax over book | -279,788 | 275,687 | |||
Non-cash compensation - Options | 172,033 | - | |||
Net operating loss carryforward | 21,123,851 | 21,105,369 | |||
Valuation allowance | -21,016,096 | -21,381,056 | |||
Total long-term deferred tax assets (liabilities) | - | - | |||
$ | - | $ | - | ||
Schedule of Income Tax Expense | ' | ||||
For the years ended December 31 | |||||
2013 | 2012 | ||||
Current tax expense: | |||||
Federal | $ | - | - | ||
State | - | - | |||
Current tax expense | - | - | |||
Deferred tax expense (benefit): | |||||
Allowance for doubtful accounts | - | 414 | |||
Bonus accrual | - | 12,874 | |||
Vacation accrual | - | 340 | |||
Non-cash compensation - Options | -172,033 | - | |||
Goodwill - tax amortization | 555,476 | 555,476 | |||
Net operating loss carryforward | -18,483 | -3,519,099 | |||
Change in effective rate | - | -72,401 | |||
Valuation allowance | -364,960 | 3,022,396 | |||
Deferred Tax Expense | - | - | |||
Income tax expense | $ | - | $ | - | |
Schedule of Effective Income Tax Rate Reconciliation | ' | ||||
December 31, | |||||
2013 | 2012 | ||||
Current deferred tax assets: | |||||
Computed tax at the expected statutory rate | $ | -110,943 | $ | -2,475,330 | |
State and local income taxes, net of federal | -20,893 | -479,154 | |||
Return to accrual adjustment | 493,593 | - | |||
Other non-deductible expenses | 3,203 | 2,760 | |||
Non-cash compensation - options | - | 1,729 | |||
Change in valuation allowance | -364,960 | 3,022,396 | |||
Change in effective rate | - | -72,401 | |||
Income tax expense | $ | - | $ | - |
STOCK_OPTIONS_AND_WARRANTS_Tab
STOCK OPTIONS AND WARRANTS (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
STOCK OPTIONS AND WARRANTS [Abstract] | ' | ||||||
Schedule of Weighted Average Assumptins for the Valuation of Stock Options | ' | ||||||
2013 | 2012 | ||||||
Dividend yield | 0% | 0% | |||||
Expected life | 11 yrs | 0 yrs | |||||
Expected volatility | 82.76% | 0.00% | |||||
Risk-free interest rate | 2.17% | 0.00% | |||||
Schedule of Stock Option Plans | ' | ||||||
Plan | Total | Options Granted | Options Exercised | Remaining | |||
Name | Available | During 2013 | During 2013 | Available | |||
2013 Plan | 3,000,000 | - | - | 3,000,000 | |||
2012 Plan | 3,000,000 | 250,000 | - | 1,788,667 | |||
2010 Plan | 166,667 | - | - | 0 | |||
2009 Plan | 166,667 | - | - | 0 | |||
2008 Plan | 16,667 | - | - | 28 | |||
2008 Key Employee Plan | 33,334 | - | - | 260 | |||
2007 Plan | 16,667 | - | - | 12 | |||
2007 Key Employee Plan | 16,667 | - | - | 0 | |||
2006 Key Employee Plan | 11,459 | - | - | 0 | |||
Total | 6,428,128 | 250,000 | - | 4,788,967 | |||
Schedule of Stock Option Activity | ' | ||||||
For the Year Ended December 31, 2013 | |||||||
Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value | ||||
Outstanding at beginning of year | - | $ | 0 | - | $ | - | |
Granted | 250,000 | 3.52 | 10.5 years | - | |||
Exercised | - | 0 | - | - | |||
Forfeited | - | 0 | - | - | |||
Expired | - | 0 | - | - | |||
Outstanding at end of year | 250,000 | 3.52 | 10.5 years | - | |||
Vested and expected to vest in the future | 0 | 0 | 0.0 years | - | |||
Exercisable at end of year | 0 | 0 | 0.0 years | - | |||
Weighted average fair value of options granted | 250,000 | $ | 3.52 | 10.5 years | $ | - |
INCOME_LOSS_PER_COMMON_SHARE_T
INCOME (LOSS) PER COMMON SHARE (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
LOSS PER COMMON SHARE [Abstract] | ' | ||||
Schedule of Earnings Per Share | ' | ||||
2013 | 2012 | ||||
Net income (loss) from continuing operations | $ | 20,653,473 | $ | -4,182,501 | |
Net income from discontinued operations | - | 178,276 | |||
Net income (loss) available to common shareholders (numerator) | $ | 20,653,473 | $ | -4,004,225 | |
Weighted average number of common shares outstanding during the period used in basic and diluted income (loss) per share (denominator) | 20,757,353 | 11,779,195 |
RESTATEMENT_OF_PREVIOUSLY_ISSU1
RESTATEMENT OF PREVIOUSLY ISSUED UNAUDITED QUARTERLY FINANCIAL INFORMATION (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
RESTATEMENT OF PREVIOUSLY ISSUED UNAUDITED QUARTERLY FINANCIAL INFORMATION [Abstract] | ' | |||||||||||
Schedule of Restated Financial Statements | ' | |||||||||||
FAB UNIVERSAL CORP AND SUBSIDIARIES | ||||||||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET | ||||||||||||
(includes only the restated accounts) | ||||||||||||
As of June 30, 2013 | ||||||||||||
As restated | As previously reported | Changes Inc(dec) | ||||||||||
Cash | $ 43,488,954 | $ 27,675,214 | $ 15,813,740 | |||||||||
Other current assets | 847,174 | 387,815 | 459,359 | |||||||||
Total current assets | 63,160,794 | 46,887,695 | 16,273,099 | |||||||||
Total assets | 210,889,142 | 194,616,043 | 16,273,099 | |||||||||
Accrued expenses | 3,069,905 | 2,745,809 | 324,096 | |||||||||
Total current liabilities | 28,073,327 | 27,749,231 | 324,096 | |||||||||
Long-term bond payable | 16,294,075 | - | 16,294,075 | |||||||||
Total liabilities | 65,792,912 | 49,174,741 | 16,618,171 | |||||||||
Accumulated other comprehensive income | 3,417,376 | 3,418,424 | -1,048 | |||||||||
Accumulated deficit | -65,871,492 | -65,527,468 | -344,024 | |||||||||
Total stockholders' equity | 145,096,230 | 145,441,302 | -345,072 | |||||||||
Total liabilities and stockholders' equity | $210,889,142 | $194,616,043 | $ 16,273,099 | |||||||||
FAB UNIVERSAL CORP AND SUBSIDIARIES | ||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF | ||||||||||||
OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | ||||||||||||
(includes only the restated accounts) | ||||||||||||
For the Three Months Ended June 30, 2013 | For the Six Months Ended June 30, 2013 | |||||||||||
As restated | As previously reported | Change Inc(dec) | As restated | As previously reported | Change Inc(dec) | |||||||
Interest income | $ 8,461 | $ - | $ 8,461 | $ 7,020 | $ 28,559 | $ 8,461 | ||||||
Interest (expense) | -327,115 | -4,004 | 323,111 | -366,265 | -43,154 | 323,111 | ||||||
Other income (expense) | -85,147 | -55,773 | 29,374 | -84,344 | -54,970 | 29,374 | ||||||
Total Other Income (Expense) | -403,801 | -59,777 | 344,024 | -413,589 | -69,565 | 344,024 | ||||||
Income (loss) from continuing operations before income taxes | 7,043,981 | 7,388,005 | -344,024 | 11,290,820 | 11,634,844 | -344,024 | ||||||
Net income (loss) from continuing operations | 5,385,139 | 5,729,163 | -344,024 | 8,389,136 | 8,733,160 | -344,024 | ||||||
Net Income (loss) | 5,385,139 | 5,729,163 | -344,024 | 8,389,136 | 8,733,160 | -344,024 | ||||||
Foreign currency translation gain | 1,542,802 | 1,543,850 | -1,048 | 2,033,011 | 2,034,059 | -1,048 | ||||||
COMPREHENSIVE INCOME (LOSS) | $6,927,941 | $7,273,013 | ($345,072) | $10,422,147 | $10,767,219 | ($345,072) | ||||||
BASIC AND DILUTED INCOME PER COMMON SHARE FROM CONTINUING OPERATIONS | $ 0.26 | $ 0.28 | $ (0.02) | $ 0.41 | $ 0.42 | $ (0.01) | ||||||
BASIC AND DILUTED INCOME PER COMMON SHARE | $ 0.26 | $ 0.28 | $ (0.02) | $ 0.41 | $ 0.42 | $ (0.01) | ||||||
FAB UNIVERSAL CORP AND SUBSIDIARIES | ||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
(includes only the restated accounts) | ||||||||||||
For the Six Months Ended June 30, 2013 | ||||||||||||
As restated | As previously reported | Change Inc/(dec) | ||||||||||
Cash Flows from Operating Activities | ||||||||||||
Net income (loss) from continuing operations | $ 8,389,136 | $ 8,733,160 | $ (344,024) | |||||||||
Change in assets and liabilities: | ||||||||||||
Prepaid expenses | 144,161 | 603,520 | (459,359) | |||||||||
Accrued expense | 327,527 | 3,431 | 324,096 | |||||||||
Net Cash Provided by (Used in) continuing operations | 22,049,025 | 22,528,312 | -479,287 | |||||||||
Net Cash Provided by (Used in) Operating Activities | 22,049,025 | 22,528,312 | -479,287 | |||||||||
Cash Flows from Financing Activities: | ||||||||||||
Proceeds from long-term bond offering | 16,294,075 | - | 16,294,075 | |||||||||
Net Cash Used in Financing Activities | 16,146,771 | -147,304 | 16,294,075 | |||||||||
Effect of Exchange Rate Fluctuation on Cash | 340,544 | 341,592 | (1,048) | |||||||||
Net Increase (decrease) in Cash | 23,817,017 | 8,003,277 | 15,813,740 | |||||||||
Cash at Beginning of Period | 19,671,937 | 19,671,937 | - | |||||||||
Cash at the end of Period | $43,488,954 | $27,675,214 | $15,813,740 | |||||||||
FAB UNIVERSAL CORP AND SUBSIDIARIES | ||||||||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET | ||||||||||||
(includes only restated accounts) | ||||||||||||
As of September 30, 2013 | ||||||||||||
As restated | As previously reported | Changes Inc(dec) | ||||||||||
Cash | $ 59,444,652 | $ 43,575,330 | $ 15,869,322 | |||||||||
Other current assets | 713,113 | 293,724 | 419,389 | |||||||||
Total current assets | 79,593,866 | 63,305,155 | 16,288,711 | |||||||||
Total assets | 227,060,169 | 210,771,458 | 16,288,711 | |||||||||
Accrued expenses | 3,710,012 | 2,932,105 | 777,907 | |||||||||
Total current liabilities | 30,937,368 | 30,159,461 | 777,907 | |||||||||
Long-term bond payable | 16,336,933 | - | 16,336,933 | |||||||||
Total liabilities | 74,612,311 | 57,497,471 | 17,114,840 | |||||||||
Accumulated other comprehensive income | 3,766,299 | 3,772,701 | -6,402 | |||||||||
Accumulated deficit | -59,055,756 | -58,236,029 | -819,727 | |||||||||
Total stockholders' equity | 152,447,858 | 153,273,987 | -826,129 | |||||||||
Total liabilities and stockholders' equity | $227,060,169 | $210,771,458 | $16,288,711 | |||||||||
FAB UNIVERSAL CORP AND SUBSIDIARIES | ||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF | ||||||||||||
OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | ||||||||||||
(Includes only restated accounts) | ||||||||||||
For the Three Months Ended Sept. 30, 2013 | For the Nine Months Ended Sept. 30, 2013 | |||||||||||
As restated | As previously reported | Change Inc(dec) | As restated | As previously reported | Change Inc(dec) | |||||||
Interest income | $ 40,941 | $ 27,079 | $ 13,862 | $ 77,961 | $ 55,638 | $ 22,323 | ||||||
Interest (expense) | -515,291 | -66,523 | 448,768 | -881,556 | -109,677 | 771,879 | ||||||
Other income (expense) | -48,255 | -7,458 | 40,797 | -132,599 | -62,428 | 70,171 | ||||||
Total Other Income (Expense) | -522,605 | -46,902 | 475,703 | -936,194 | -116,467 | 819,727 | ||||||
Income (loss) from continuing operations before income taxes | 8,680,283 | 9,155,986 | -475,703 | 19,971,103 | 20,790,830 | -819,727 | ||||||
Net income (loss) from continuing operations | 6,815,736 | 7,291,439 | -475,703 | 15,204,872 | 16,024,599 | -819,727 | ||||||
Net Income (loss) | 6,815,736 | 7,291,439 | -475,703 | 15,204,872 | 16,024,599 | -819,727 | ||||||
Foreign currency translation gain | 348,923 | 354,277 | -5,354 | 2,381,934 | 2,388,336 | -6,402 | ||||||
COMPREHENSIVE INCOME (LOSS) | $7,164,659 | $ 7,645,716 | ($481,057) | $17,586,806 | $18,412,935 | ($826,129) | ||||||
BASIC AND DILUTED INCOME PER COMMON SHARE FROM CONTINUING OPERATIONS | $ 0.33 | $ 0.35 | $ (0.02) | $ 0.73 | $ 0.77 | $ (0.04) | ||||||
BASIC AND DILUTED INCOME PER COMMON SHARE | $ 0.33 | $ 0.35 | $ (0.02) | $ 0.73 | $ 0.77 | $ (0.04) | ||||||
FAB UNIVERSAL CORP AND SUBSIDIARIES | ||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
(includes only restated accounts) | ||||||||||||
For the Nine Months Ended September 30, 2013 | ||||||||||||
As restated | As previously reported | Change Inc(dec) | ||||||||||
Cash Flows from Operating Activities | ||||||||||||
Net income (loss) from continuing operations | $15,204,872 | $16,024,599 | $ (819,727) | |||||||||
Change in assets and liabilities: | ||||||||||||
Prepaid expenses | 285,139 | 704,528 | (419,389) | |||||||||
Accrued expense | 960,545 | 182,638 | 777,907 | |||||||||
Net Cash Provided by continuing operations | 38,576,554 | 39,037,763 | -461,209 | |||||||||
Net Cash Provided by Operating Activities | 38,576,554 | 39,037,763 | -461,209 | |||||||||
Cash Flows from Financing Activities: | ||||||||||||
Proceeds from long-term bond offering | 16,336,933 | - | 16,336,933 | |||||||||
Net Cash Provided by (Used in) Financing Activities | 15,915,199 | -421,734 | 16,336,933 | |||||||||
Effect of Exchange Rate Fluctuation on Cash | 476,752 | 483,154 | (6,402) | |||||||||
Net Increase (decrease) in Cash | 39,772,715 | 23,903,393 | 15,869,322 | |||||||||
Cash at Beginning of Period | 19,671,937 | 19,671,937 | - | |||||||||
Cash at the end of Period | $59,444,652 | $43,575,330 | $15,869,322 |
SEGMENT_REPORTING_Tables
SEGMENT REPORTING (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
SEGMENT REPORTING [Abstract] | ' | ||||||||||||||||
Schedule of Operations by Reporting Segment | ' | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Wholesale | Retail | Digital | Total | Wholesale | Retail | Digital | Total | ||||||||||
Revenue | $ | 60,404 | $ | 9,010 | $ | 41,459 | $ | 110,873 | $ | 16,409 | $ | 2,000 | $ | 9,050 | $ | 27,459 | |
Cost of revenue | $ | 48,537 | $ | 6,543 | $ | 8,379 | $ | 63,459 | $ | 12,902 | $ | 1,449 | $ | 2,089 | $ | 16,440 | |
Gross Profit | $ | 11,867 | $ | 2,467 | $ | 33,080 | $ | 47,414 | $ | 3,507 | $ | 552 | $ | 6,960 | $ | 11,019 | |
Total assets | $ | 74,705 | $ | 49,741 | $ | 116,387 | $ | 240,833 | $ | 37,061 | $ | 24,719 | $ | 106,015 | $ | 167,795 | |
Depreciation and amortization | $ | 252 | $ | 888 | $ | 5,748 | $ | 6,888 | $ | 156 | $ | 305 | $ | 1,511 | $ | 1,972 |
QUARTERLY_FINANCIAL_INFORMATIO1
QUARTERLY FINANCIAL INFORMATION (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
QUARTERLY FINANCIAL INFORMATION [Abstract] | ' | ||||||||||
Schedule of Selected Quarterly Financial Information | ' | ||||||||||
NOTE 20 - QUARTERLY FINANCIAL INFORMATION (Unaudited) | |||||||||||
The following table set forth unaudited financial information on a quarterly basis for each of the last two years: | |||||||||||
(in thousands) | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Total | ||||||
2013 | restated | restated | |||||||||
Revenues | $ | 22,636 | $ | 25,857 | $ | 29,751 | $ | 32,629 | $ | 110,873 | |
Gross profit | 8,375 | 11,495 | 14,090 | 13,454 | 47,414 | ||||||
Operating income (loss) - continuing operations | 4,247 | 7,043 | 8,680 | 7,224 | 27,194 | ||||||
Net income (loss) - continuing operations | 3,004 | 5,385 | 6,816 | 5,448 | 20,653 | ||||||
Net income (loss) available to common stockholders | 3,004 | 5,385 | 6,816 | 5,448 | 20,653 | ||||||
Basic and diluted income (loss) per share - continuing operations | 0.15 | 0.26 | 0.33 | 0.25 | 0.99 | ||||||
Basic and diluted income (loss) per share | 0.15 | 0.26 | 0.33 | 0.25 | 0.99 | ||||||
2012 | |||||||||||
Revenues | $ | 847 | $ | 870 | $ | 1,745 | $ | 23,997 | $ | 27,459 | |
Gross profit | 548 | 507 | 961 | 9,003 | 11,019 | ||||||
Operating loss - continuing operations | -1,103 | -517 | -4,784 | 3,572 | -2,832 | ||||||
Net loss - continuing operations | -1,103 | -517 | -4,836 | 2,274 | -4,182 | ||||||
Net loss | -997 | -330 | -4,950 | 2,273 | -4,004 | ||||||
Basic and diluted loss per share - continuing operations | -0.13 | -0.06 | (0.50) | 0.33 | -0.36 | ||||||
Basic and diluted loss per share | -0.12 | -0.04 | (0.51) | 0.33 | -0.34 |
ORGANIZATION_AND_BASIS_OF_PRES2
ORGANIZATION AND BASIS OF PRESENTATION (Consolidated Balance Sheet of FAB Media) (Details) (USD $) | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Variable Interest Entity [Line Items] | ' | ' | ' | ' | ' | ||
Cash and Restricted cash | $99,546,530 | ' | ' | $19,671,937 | $907,320 | ||
Accounts receivable, net | 7,554,919 | ' | ' | 6,927,045 | ' | ||
Deferred tax assets, current | 2,830,200 | ' | ' | 1,771,799 | ' | ||
Other current assets | 591,194 | 713,113 | 847,174 | 979,021 | ' | ||
Total current assets | 112,942,210 | 79,593,866 | 63,160,794 | 34,711,580 | ' | ||
Property and equipment, net | 16,574,131 | ' | ' | 16,720,637 | ' | ||
Intangible assets, net | 23,903,476 | ' | ' | 27,875,748 | ' | ||
Deferred tax assets, non-current | 5,227,865 | ' | ' | 3,346,166 | ' | ||
Long-term deposits | 20,092,845 | ' | ' | 24,488,131 | ' | ||
Total assets | 240,833,459 | 227,060,169 | 210,889,142 | 167,795,219 | ' | ||
Short-term bank loans | 6,276,842 | ' | ' | 2,072,619 | ' | ||
Accounts payable | 3,309,610 | ' | ' | 6,471,270 | ' | ||
Accrued expenses | 4,209,753 | 3,710,012 | 3,069,905 | 3,077,785 | ' | ||
Deferred revenue, current | 15,457,102 | ' | ' | 8,250,402 | ' | ||
Total current liabilities | 36,851,494 | 30,937,368 | 28,073,327 | 23,427,616 | ' | ||
Long-term deposits from customers | 2,244,797 | ' | ' | 2,474,604 | ' | ||
Deferred revenue, non-current | 25,432,654 | ' | ' | 7,923,450 | ' | ||
Long-term bond payable | 16,518,005 | 16,336,933 | 16,294,075 | ' | ' | ||
Total liabilities | 81,046,950 | 74,612,311 | 65,792,912 | 33,864,874 | ' | ||
FAB Media [Member] | ' | ' | ' | ' | ' | ||
Variable Interest Entity [Line Items] | ' | ' | ' | ' | ' | ||
Cash and Restricted cash | 99,077,811 | ' | ' | 19,291,600 | ' | ||
Accounts receivable, net | 7,227,270 | ' | ' | 6,666,985 | ' | ||
Deferred tax assets, current | 2,830,200 | ' | ' | 1,771,799 | ' | ||
Other current assets | 4,820,393 | ' | ' | 5,779,940 | ' | ||
Total current assets | 113,955,674 | ' | ' | 33,510,324 | ' | ||
Property and equipment, net | 14,989,176 | ' | ' | 15,182,291 | ' | ||
Intangible assets, net | 434,304 | ' | ' | ' | ' | ||
Deferred tax assets, non-current | 5,227,865 | ' | ' | 3,346,166 | ' | ||
Long-term deposits | 20,089,263 | ' | ' | 24,484,549 | ' | ||
Total assets | 154,696,282 | [1] | ' | ' | 76,523,330 | [1] | ' |
Short-term bank loans | 6,276,842 | ' | ' | 1,612,826 | ' | ||
Accounts payable | 2,924,374 | ' | ' | 5,856,233 | ' | ||
Accrued expenses | 4,008,363 | ' | ' | 2,637,676 | ' | ||
Deferred revenue, current | 15,294,998 | ' | ' | 8,178,970 | ' | ||
Other current liability | 7,491,885 | ' | ' | 3,534,867 | ' | ||
Total current liabilities | 35,996,462 | ' | ' | 21,820,572 | ' | ||
Long-term deposits from customers | 2,244,797 | ' | ' | 2,474,604 | ' | ||
Deferred revenue, non-current | 25,432,654 | ' | ' | 7,923,450 | ' | ||
Long-term bond payable | 16,518,005 | ' | ' | ' | ' | ||
Total liabilities | $80,191,918 | [1] | ' | ' | $32,218,626 | [1] | ' |
[1] | Total assets and liabilities of the VIE are reported net of intercompany balances that have been eliminated with the VIE consolidation |
ORGANIZATION_AND_BASIS_OF_PRES3
ORGANIZATION AND BASIS OF PRESENTATION (Consolidated Results of Operations for FAB Media) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | |
FAB Media [Member] | FAB Media [Member] | |||||||||||||
Variable Interest Entity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | $32,629,000 | $29,751,000 | $25,857,000 | $22,636,000 | $23,997,000 | $1,745,000 | $870,000 | $847,000 | ' | ' | $110,873,419 | $27,458,730 | $23,708,308 | $105,932,361 |
Net income (loss) | $5,448,000 | $6,815,736 | $5,385,139 | $3,004,000 | $2,273,000 | ($4,950,000) | ($330,000) | ($997,000) | $8,389,136 | $15,204,872 | $20,653,473 | ($4,004,225) | $3,136,626 | $20,820,847 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
CNY | USD ($) | USD ($) | Employees [Member] | Employees [Member] | Management, Board Members, Employees and Consultants [Member] | Management, Board Members, Employees and Consultants [Member] | Electronic equipment [Member] | Electronic equipment [Member] | Office furniture and equipment [Member] | Office furniture and equipment [Member] | Vehicles [Member] | Building [Member] | Leasehold improvements [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Inventory reserve | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Value added tax rate, PRC invoices | 17.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for doubtful accounts | ' | 14,000 | 14,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
RMB exchange rate to USD | 6.054 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
RMB exchange rate to USD, average | 6.1492 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated useful life | ' | ' | ' | ' | ' | ' | ' | '2 years | '5 years | '2 years | '10 years | '5 years | '48 years 6 months | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | ' | ' | ' | $423,796 | $5,086 | $329,600 | $4,159,800 | ' | ' | ' | ' | ' | ' | ' |
GOODWILL_AND_OTHER_INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Schedule of Goodwill) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Goodwill [Line Items] | ' | ' | ' |
Goodwill | $62,092,932 | $60,652,957 | $12,673,912 |
DEI [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Goodwill | 50,608,681 | 49,168,706 | ' |
Webmayhem Inc. [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Goodwill | $11,484,251 | $11,484,251 | ' |
GOODWILL_AND_OTHER_INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Summary of Goodwill) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract] | ' | ' |
Goodwill at beginning of period | $60,652,957 | $12,673,912 |
Foreign currency translation gain | 1,439,975 | ' |
Acquisition of DEI | ' | 49,168,706 |
Goodwill discontinued operations | ' | -1,189,661 |
Goodwill at end of period | $62,092,932 | $60,652,957 |
GOODWILL_AND_OTHER_INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS (Summary of Intangible Assets) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract] | ' | ' |
Preliminary fair value | $29,863,853 | ' |
Accumulated amortization | 7,022,613 | ' |
Currency translation adjustment | 1,062,236 | ' |
Net carrying amount | 23,903,476 | 27,875,748 |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Accumulated amortization | 7,022,613 | ' |
Net carrying amount | 9,455,383 | ' |
Trade name [Member] | ' | ' |
Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Preliminary fair value | 13,876,000 | ' |
Currency translation adjustment | 572,093 | ' |
Preliminary fair value | 14,448,093 | ' |
Customer Relationships [Member] | ' | ' |
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract] | ' | ' |
Accumulated amortization | 3,828,235 | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Preliminary fair value | 8,900,000 | ' |
Accumulated amortization | 3,828,235 | ' |
Currency translation adjustment | 239,749 | ' |
Net carrying amount | 5,365,514 | ' |
Weighted average useful life | '3 years | ' |
Intellectual Property [Member] | ' | ' |
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract] | ' | ' |
Accumulated amortization | 1,849,597 | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Preliminary fair value | 4,300,000 | ' |
Accumulated amortization | 1,849,597 | ' |
Currency translation adjustment | 141,923 | ' |
Net carrying amount | 2,592,326 | ' |
Weighted average useful life | '3 years | ' |
Copyrights [Member] | ' | ' |
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract] | ' | ' |
Accumulated amortization | 128,436 | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Preliminary fair value | 902,653 | ' |
Accumulated amortization | 128,436 | ' |
Currency translation adjustment | 0 | ' |
Net carrying amount | 774,217 | ' |
Copyrights [Member] | Minimum [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Weighted average useful life | '1 year | ' |
Copyrights [Member] | Maximum [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Weighted average useful life | '10 years | ' |
Non-compete [Member] | ' | ' |
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract] | ' | ' |
Accumulated amortization | 1,216,345 | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Preliminary fair value | 1,885,200 | ' |
Accumulated amortization | 1,216,345 | ' |
Currency translation adjustment | 54,471 | ' |
Net carrying amount | $723,326 | ' |
Weighted average useful life | '2 years | ' |
GOODWILL_AND_OTHER_INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS (Schedule of Future Amortization Expenses) (Details) (USD $) | Dec. 31, 2013 |
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract] | ' |
2014 | $5,491,673 |
2015 | 3,830,173 |
2016 | 87,014 |
Thereafter | 46,523 |
Total | $9,455,383 |
ACCOUNTS_RECEIVABLE_Details
ACCOUNTS RECEIVABLE (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
ACCOUNTS RECEIVABLE [Abstract] | ' | ' |
Accounts receivable | $7,568,919 | $6,941,045 |
Allowance for doubtful accounts | -14,000 | -14,000 |
Accounts receivable, net | $7,554,919 | $6,927,045 |
PROPERY_AND_EQUIPMENT_Details
PROPERY AND EQUIPMENT (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
PROPERTY AND EQUIPMENT [Abstract] | ' | ' |
Depreciation expense | $1,283,946 | $554,707 |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment | 20,038,674 | 19,521,795 |
Less: Accumulated depreciation | -3,464,543 | -2,801,158 |
Total property and equipment, net | 16,574,131 | 16,720,637 |
Electronic equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment | 1,726,239 | 1,436,466 |
Office furniture and equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment | 62,248 | 54,077 |
Vehicles [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment | 372,996 | 57,471 |
Building [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment | 14,072,796 | 14,366,218 |
Leasehold improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment | $3,804,395 | $3,607,563 |
LONGTERM_DEPOSITS_Details
LONG-TERM DEPOSITS (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
USD ($) | CNY | USD ($) | |
LONG-TERM DEPOSITS [Abstract] | ' | ' | ' |
Prepayments for setting up flagship stores | $3,303,601 | ' | $20,862,420 |
Anti-piracy sales guarantee deposits | 3,303,601 | ' | 3,370,083 |
Building deposit | 13,214,404 | ' | ' |
Rent deposits | 271,239 | ' | 255,628 |
Total long-term deposits | 20,092,845 | ' | 24,488,131 |
Refund from flagship stores | $17,800,000 | 110,000,000 | ' |
SHORTTERM_LOANS_Details
SHORT-TERM LOANS (Details) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
USD ($) | USD ($) | Prime Rate Financial [Member] | Prime Rate Financial [Member] | Bank of Communications [Member] | Bank of Communications [Member] | Bank of Communications [Member] | Bank of Communications [Member] | China Merchants Bank [Member] | China Merchants Bank [Member] | China Merchants Bank [Member] | Minsheng Bank [Member] | Minsheng Bank [Member] | Minsheng Bank [Member] | Nanjing Bank [Member] | Nanjing Bank [Member] | Nanjing Bank [Member] | China Dalian Bank [Member] | China Dalian Bank [Member] | China Dalian Bank [Member] | |
USD ($) | USD ($) | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | USD ($) | CNY | USD ($) | USD ($) | CNY | USD ($) | USD ($) | CNY | USD ($) | |||
Short-term Debt [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Short-term loans | $6,276,842 | $2,072,619 | ' | $459,793 | $1,651,800 | ' | $8,024 | ' | $1,604,802 | ' | ' | $1,321,440 | ' | ' | $1,651,801 | ' | ' | $1,651,801 | ' | ' |
Issuance date | ' | ' | 1-Oct-12 | ' | 25-Mar-13 | 25-Mar-13 | 23-Sep-12 | 23-Sep-12 | 25-Apr-12 | 25-Apr-12 | ' | 26-Dec-13 | 26-Dec-13 | ' | 12-Dec-13 | 12-Dec-13 | ' | 12-Dec-13 | 12-Dec-13 | ' |
Face amount | ' | ' | 573,750 | ' | 1,600,000 | 10,000,000 | 8,000 | 50,000 | 1,500,000 | 10,000,000 | ' | 1,300,000 | 8,000,000 | ' | 1,600,000 | 10,000,000 | ' | 1,600,000 | 10,000,000 | ' |
Term | '3 years | ' | '18 months | ' | '1 year | '1 year | '1 year | '1 year | ' | ' | ' | '1 year | '1 year | ' | '1 year | '1 year | ' | '1 year | '1 year | ' |
Maturity date | ' | ' | 1-Jan-14 | ' | 28-Mar-14 | 28-Mar-14 | 10-Oct-13 | 10-Oct-13 | 25-Apr-13 | 25-Apr-13 | ' | 26-Dec-14 | 26-Dec-14 | ' | 12-Dec-14 | 12-Dec-14 | ' | 12-Dec-14 | 12-Dec-14 | ' |
Basis spread | ' | ' | ' | ' | 0.30% | 0.30% | ' | ' | 0.35% | 0.35% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable interest rate | ' | ' | ' | ' | 7.80% | 7.80% | 6.00% | 6.00% | 8.52% | 8.52% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | ' | 4.25% | ' | ' | ' | ' | ' | ' | ' | ' | 7.80% | 7.80% | ' | 7.80% | 7.80% | ' | 7.80% | 7.80% | ' |
Number of installment payments | ' | ' | 15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Periodic installments, amount | ' | ' | $39,343 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
NOTES_PAYABLE_Details
NOTES PAYABLE (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
NOTES PAYABLE [Abstract] | ' | ' |
Notes Payable | $1,651,801 | ' |
Required cash deposits | 100.00% | ' |
LONG_TERM_BOND_PAYABLE_Details
LONG TERM BOND PAYABLE (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
USD ($) | Bond payable [Member] | Bond payable [Member] | |
USD ($) | CNY | ||
Debt Instrument [Line Items] | ' | ' | ' |
Issuance date | ' | 25-Apr-13 | 25-Apr-13 |
Net proceeds from long-term bond offering | $15,800,000 | $15,800,000 | 97,000,000 |
Debt issuance costs | ' | ' | 3,000,000 |
Term | '3 years | '3 years | '3 years |
Maturity date | ' | 25-Apr-16 | 25-Apr-16 |
Interest rate | ' | 11.00% | 11.00% |
STATUTORY_RESERVE_Details
STATUTORY RESERVE (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
STATUTORY RESERVE [Abstract] | ' | ' |
Statutory surplus reserve | $131,825 | $131,825 |
RELATED_PARTIES_Narrative_Deta
RELATED PARTIES (Narrative) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Zhang Hongcheng [Member] | ' |
Related Party Transaction [Line Items] | ' |
Amount of transaction | $85,000 |
Guangdong Endless Culture Co., Ltd. [Member] | ' |
Related Party Transaction [Line Items] | ' |
Lease term | '8 years |
Monthly rent expense | $50,414 |
RELATED_PARTIES_Schedule_of_Am
RELATED PARTIES (Schedule of Amounts Due to Related Parties) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Related Party Transaction [Line Items] | ' | ' |
Due to related parties | $122,596 | $41,341 |
Guangdong Endless Culture Co., Ltd. [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Due to related parties | ' | 4,814 |
Zhang Hongcheng [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Due to related parties | $122,596 | $36,527 |
RELATED_PARTIES_Schedule_of_Fu
RELATED PARTIES (Schedule of Future Minimum Annual Rental Payments) (Details) (USD $) | Dec. 31, 2013 |
RELATED PARTIES [Abstract] | ' |
2014 | $1,238,325 |
2015 | 1,214,969 |
2016 | 754,117 |
2017 | 250,208 |
2018 | ' |
Thereafter | ' |
Total | $3,457,619 |
INCOME_TAXES_Narrative_Details
INCOME TAXES (Narrative) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
INCOME TAXES [Abstract] | ' |
Open tax year | '2009 |
U.S. Operations [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Operating loss carryforwards | 52,000,000 |
Expiration | 31-Dec-32 |
INCOME_TAXES_Schedule_of_Defer
INCOME TAXES (Schedule of Deferred Tax Assets) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes [Line Items] | ' | ' |
Total current deferred tax assets (liabilities) | $2,830,200 | $1,771,799 |
Total long-term deferred tax assets (liabilities) | 5,227,865 | 3,346,166 |
DEI [Member] | ' | ' |
Income Taxes [Line Items] | ' | ' |
Current deferred tax assets | 2,830,200 | 1,771,799 |
Valuation allowance | ' | ' |
Total current deferred tax assets (liabilities) | 2,830,200 | 1,771,799 |
Non-current deferred assets | 5,227,865 | 3,346,166 |
Valuation allowance | ' | ' |
Total long-term deferred tax assets (liabilities) | 5,227,865 | 3,346,166 |
Total deferred tax assets | 8,058,065 | 5,117,965 |
U.S. Operations [Member] | ' | ' |
Income Taxes [Line Items] | ' | ' |
Allowance for doubtful accounts | 5,683 | 5,683 |
Bonus accrual | ' | ' |
Vacation accrual | ' | ' |
Valuation allowance | -5,683 | -5,683 |
Total current deferred tax assets (liabilities) | ' | ' |
Excess of goodwill/intangible assets amortization for tax over book | -279,788 | 275,687 |
Non-cash compensation - Options | 172,033 | ' |
Net operating loss carryforward | 21,123,851 | 21,105,369 |
Valuation allowance | -21,016,096 | -21,381,056 |
Total long-term deferred tax assets (liabilities) | ' | ' |
Total deferred tax assets | ' | ' |
Deferred tax assets | 21,016,096 | 21,381,056 |
Valuation allowance | $21,021,779 | $21,386,739 |
INCOME_TAXES_Schedule_of_Taxes
INCOME TAXES (Schedule of Taxes Payable) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes [Line Items] | ' | ' |
Total taxes payable | $2,608,821 | $1,603,821 |
DEI [Member] | ' | ' |
Income Taxes [Line Items] | ' | ' |
Value added tax payable | 365,558 | -411,352 |
Income tax payable | 1,988,083 | 1,885,489 |
Business tax payable | -6,592 | -6,404 |
Other | 261,772 | 136,088 |
Total taxes payable | $2,608,821 | $1,603,821 |
INCOME_TAXES_Schedule_of_Incom
INCOME TAXES (Schedule of Income Tax Expense (Benefit)) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Deferred tax expense (benefit): | ' | ' |
Deferred tax expense (benefit) | ($2,747,056) | ($609,986) |
Income tax expense | 6,540,393 | 1,350,704 |
DEI [Member] | ' | ' |
Current tax expense: | ' | ' |
Current tax expense | 9,287,453 | 1,908,689 |
Deferred tax expense (benefit): | ' | ' |
Deferred tax expense (benefit) | -2,747,060 | -609,985 |
Income tax expense | 6,540,393 | 1,350,704 |
U.S. Operations [Member] | ' | ' |
Current tax expense: | ' | ' |
Federal | ' | ' |
State | ' | ' |
Current tax expense | ' | ' |
Deferred tax expense (benefit): | ' | ' |
Allowance for doubtful accounts | ' | 414 |
Bonus accrual | ' | 12,874 |
Vacation accrual | ' | 340 |
Non-cash compensation - Options | -172,033 | ' |
Goodwill - tax amortization | 555,476 | 555,476 |
Net operating loss carryforward | -18,483 | -3,519,099 |
Change in effective rate | ' | -72,401 |
Valuation allowance | -364,960 | 3,022,396 |
Deferred tax expense (benefit) | ' | ' |
Income tax expense | ' | ' |
INCOME_TAXES_Reconciliation_of
INCOME TAXES (Reconciliation of Income Tax Expense) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes [Line Items] | ' | ' |
Income tax expense | $6,540,393 | $1,350,704 |
U.S. Operations [Member] | ' | ' |
Income Taxes [Line Items] | ' | ' |
Computed tax at the expected statutory rate | -110,943 | -2,475,330 |
State and local income taxes, net of federal | -20,893 | -479,154 |
Return to accrual adjustment | 493,593 | ' |
Other non-deductible expenses | 3,203 | 2,760 |
Non-cash compensation - options | ' | 1,729 |
Change in valuation allowance | -364,960 | 3,022,396 |
Change in effective rate | ' | -72,401 |
Income tax expense | ' | ' |
CAPITAL_STOCK_Details
CAPITAL STOCK (Details) (USD $) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | 21-May-13 | Jan. 25, 2013 | Sep. 28, 2012 | Aug. 29, 2012 | Aug. 27, 2012 | Aug. 14, 2012 | Aug. 02, 2012 | Jun. 04, 2012 | 29-May-12 | Mar. 21, 2012 | Feb. 24, 2012 | Feb. 08, 2012 | |
CAPITAL STOCK [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock, shares authorized | 10,000,000 | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock, par value per share | $0.00 | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock, shares issued | 290 | 290 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock, shares outstanding | 290 | 290 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reverse stock split ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12 |
Reverse stock split, shares issued | ' | 2,739 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares authorized | 200,000,000 | 200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, par value per share | $0.00 | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares outstanding | 20,805,860 | 20,468,860 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares issued | 20,805,860 | 20,468,860 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition of Digital Entertainment International, shares | ' | 10,282,611 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants, exercise price | ' | ' | ' | ' | ' | ' | ' | 3.25 | ' | ' | ' | ' | ' | ' |
Warrants exercised | ' | ' | ' | ' | ' | ' | ' | 341,208 | ' | ' | ' | ' | ' | ' |
Awards exercised, shares issued | ' | ' | ' | ' | ' | ' | 925,177 | 341,207 | 15,784 | 37,254 | 70,553 | 28,334 | 37,500 | ' |
Awards exercised, value | ' | ' | ' | ' | ' | ' | $3,222,079 | $1,108,923 | $67,086 | $76,371 | $118,529 | $47,601 | $63,000 | ' |
Services rendered, shares issued | ' | ' | 80,000 | 257,000 | 123,000 | 50,000 | ' | ' | ' | ' | ' | 429,169 | ' | ' |
Services rendered, value | ' | ' | 164,800 | 529,080 | 632,220 | 232,500 | ' | ' | ' | ' | ' | 721,004 | ' | ' |
Stock based compensation expense | $423,796 | $5,086 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting Schedule [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares issued for business acquisition | ' | 290 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
First Tranche [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting Schedule [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares issued for business acquisition | 210 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage | 70.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion of preferred stock, shares | 14,689,444 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Second Tranche [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting Schedule [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares issued for business acquisition | 40 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage | 74.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion of preferred stock, shares | 5,488,364 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Third Tranche [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting Schedule [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares issued for business acquisition | 40 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage | 78.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion of preferred stock, shares | 7,484,132 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
STOCK_OPTIONS_AND_WARRANTS_Nar
STOCK OPTIONS AND WARRANTS (Narrative) (Details) (USD $) | Aug. 14, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Iroquois Master Fund [Member] | Employees [Member] | Employees [Member] | Management, Board Members, Employees and Consultants [Member] | Management, Board Members, Employees and Consultants [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Warrants outstanding | ' | 99,060 | ' | ' | ' | ' |
Warrants, exercise price | 3.25 | 5.16 | ' | ' | ' | ' |
Non-cash compensation expense | ' | ' | $423,796 | $5,086 | $329,600 | $4,159,800 |
STOCK_OPTIONS_AND_WARRANTS_Sum
STOCK OPTIONS AND WARRANTS (Summary of Stock Option Plans) (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Total Available | 6,428,128 |
Options Granted | 250,000 |
Options Exercised | ' |
Remaining Available | 4,788,967 |
2013 Plan [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Total Available | 3,000,000 |
Options Granted | ' |
Options Exercised | ' |
Remaining Available | 3,000,000 |
2012 Plan [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Total Available | 3,000,000 |
Options Granted | 250,000 |
Options Exercised | ' |
Remaining Available | 1,788,667 |
2010 Plan [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Total Available | 166,667 |
Options Granted | ' |
Options Exercised | ' |
Remaining Available | 0 |
2009 Plan [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Total Available | 166,667 |
Options Granted | ' |
Options Exercised | ' |
Remaining Available | 0 |
2008 Plan [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Total Available | 16,667 |
Options Granted | ' |
Options Exercised | ' |
Remaining Available | 28 |
2008 Key Employee Plan [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Total Available | 33,334 |
Options Granted | ' |
Options Exercised | ' |
Remaining Available | 260 |
2007 Plan [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Total Available | 16,667 |
Options Granted | ' |
Options Exercised | ' |
Remaining Available | 12 |
2007 Key Employee Plan [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Total Available | 16,667 |
Options Granted | ' |
Options Exercised | ' |
Remaining Available | 0 |
2006 Key Employee Plan [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Total Available | 11,459 |
Options Granted | ' |
Options Exercised | ' |
Remaining Available | 0 |
STOCK_OPTIONS_AND_WARRANTS_Sch
STOCK OPTIONS AND WARRANTS (Schedule of Valuation Assumptions for Stock Options) (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
STOCK OPTIONS AND WARRANTS [Abstract] | ' | ' |
Dividend yield | 0.00% | 0.00% |
Expected life | '11 years | '0 years |
Expected volatility | 82.76% | 0.00% |
Risk-free interest rate | 2.17% | 0.00% |
STOCK_OPTIONS_AND_WARRANTS_Sum1
STOCK OPTIONS AND WARRANTS (Summary of Stock Options Activity) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Shares | ' |
Outstanding at beginning of year | ' |
Options Granted | 250,000 |
Exercised | ' |
Forfeited | ' |
Expired | ' |
Outstanding at end of year | 250,000 |
Vested and expected to vest in the future | 0 |
Exercisable at end of period | 0 |
Weighted Average Exercise Price | ' |
Outstanding at beginning of year | $0 |
Granted | $3.52 |
Exercised | $0 |
Forfeited | $0 |
Expired | $0 |
Outstanding at end of year | $3.52 |
Vested and expected to vest in the future | $0 |
Exercisable at end of period | $0 |
Weighted Average Remaining Contractual Term | ' |
Outstanding | '10 years 6 months |
Vested and expected to vest in the future | '10 years 6 months |
Exercisable at end of period | '10 years 6 months |
Aggregate Intrinsic Value | ' |
Outstanding at beginning of year | ' |
Exercised | ' |
Outstanding at end of year | ' |
Vested and expected to vest in the future | ' |
Exercisable at end of period | ' |
INCOME_LOSS_PER_COMMON_SHARE_N
INCOME (LOSS) PER COMMON SHARE (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Warrants [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Anti-dilutive shares | 99,060 | 99,060 |
Purchase price per share | $5.16 | $5.16 |
Options [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Anti-dilutive shares | 250,000 | ' |
Purchase price per share | $3.52 | ' |
INCOME_LOSS_PER_COMMON_SHARE_S
INCOME (LOSS) PER COMMON SHARE (Schedule of Earnings Per Share) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
LOSS PER COMMON SHARE [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net loss from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $20,653,473 | ($4,182,501) |
Net income (loss) from discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 178,276 |
Net income (loss) available to common stockholders | $5,448,000 | $6,815,736 | $5,385,139 | $3,004,000 | $2,273,000 | ($4,950,000) | ($330,000) | ($997,000) | $8,389,136 | $15,204,872 | $20,653,473 | ($4,004,225) |
Weighted average number of common shares outstanding during the period used in basic and diluted loss per share (denominator) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,757,353 | 11,779,195 |
CONTINGENCIES_Details
CONTINGENCIES (Details) | 12 Months Ended | 5 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2009 | Dec. 31, 2009 | 23-May-14 | 23-May-14 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
USD ($) | CNY | Landlord [Member] | Landlord [Member] | Landlord [Member] | Landlord [Member] | Landlord [Member] | Landlord [Member] | Landlord [Member] | Landlord [Member] | First Tranche [Member] | Second Tranche [Member] | Third Tranche [Member] | ||
USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | Subsequent Event [Member] | Subsequent Event [Member] | USD ($) | USD ($) | |||||
USD ($) | CNY | |||||||||||||
CONTINGENCIES [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Damages sought | $281,942 | 1,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Bond issuance | 16,400,000 | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting Schedule [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares issued for business acquisition | ' | ' | 290 | ' | ' | ' | ' | ' | ' | ' | ' | 210 | 40 | 40 |
Revenue objective | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60,000,000 | 70,000,000 |
Net Income Objective | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,000,000 | 14,000,000 |
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Litigation amount | ' | ' | ' | $1,100,000 | 7,000,000 | $950,000 | 5,900,000 | $320,000 | 2,000,000 | $1,200,000 | 7,500,000 | ' | ' | ' |
RESTATEMENT_OF_PREVIOUSLY_ISSU2
RESTATEMENT OF PREVIOUSLY ISSUED UNAUDITED QUARTERLY FINANCIAL INFORMATION (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
RESTATEMENT OF PREVIOUSLY ISSUED UNAUDITED QUARTERLY FINANCIAL INFORMATION [Abstract] | ' | ' | ' | ' | ' | ' |
Net proceeds from long-term bond offering | ' | ' | ' | ' | $15,800,000 | ' |
Deferred financing costs | 459,000 | 419,000 | 419,000 | 459,000 | ' | ' |
Term | ' | ' | ' | ' | '3 years | ' |
Accrued interest expense | 324,000 | 778,000 | 778,000 | 324,000 | ' | ' |
Long-term bond payable | 16,336,933 | 16,294,075 | 16,294,075 | 16,336,933 | 16,518,005 | ' |
Net effect of deferred financing costs and interest | $476,000 | $344,000 | $344,000 | $820,000 | ' | ' |
RESTATEMENT_OF_PREVIOUSLY_ISSU3
RESTATEMENT OF PREVIOUSLY ISSUED UNAUDITED QUARTERLY FINANCIAL INFORMATION (BALANCE SHEET) (Details) (USD $) | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 |
CURRENT ASSETS: | ' | ' | ' | ' |
Cash | $99,546,530 | $59,444,652 | $43,488,954 | $19,671,937 |
Other current assets | 591,194 | 713,113 | 847,174 | 979,021 |
Total current assets | 112,942,210 | 79,593,866 | 63,160,794 | 34,711,580 |
Total assets | 240,833,459 | 227,060,169 | 210,889,142 | 167,795,219 |
CURRENT LIABILITIES: | ' | ' | ' | ' |
Accrued expenses | 4,209,753 | 3,710,012 | 3,069,905 | 3,077,785 |
Total current liabilities | 36,851,494 | 30,937,368 | 28,073,327 | 23,427,616 |
Long-term bond payable | 16,518,005 | 16,336,933 | 16,294,075 | ' |
Total liabilities | 81,046,950 | 74,612,311 | 65,792,912 | 33,864,874 |
STOCKHOLDERS' EQUITY | ' | ' | ' | ' |
Accumulated other comprehensive income | 5,469,380 | 3,766,299 | 3,417,376 | 1,384,365 |
Accumulated deficit | -53,607,155 | -59,055,756 | -65,871,492 | -74,260,628 |
Total stockholders' equity | 159,786,509 | 152,447,858 | 145,096,230 | 133,930,345 |
Total liabilities and stockholders' equity | 240,833,459 | 227,060,169 | 210,889,142 | 167,795,219 |
Scenario, Previously Reported [Member] | ' | ' | ' | ' |
CURRENT ASSETS: | ' | ' | ' | ' |
Cash | ' | 43,575,330 | 27,675,214 | 19,671,937 |
Other current assets | ' | 293,724 | 387,815 | ' |
Total current assets | ' | 63,305,155 | 46,887,695 | ' |
Total assets | ' | 210,771,458 | 194,616,043 | ' |
CURRENT LIABILITIES: | ' | ' | ' | ' |
Accrued expenses | ' | 2,932,105 | 2,745,809 | ' |
Total current liabilities | ' | 30,159,461 | 27,749,231 | ' |
Long-term bond payable | ' | ' | ' | ' |
Total liabilities | ' | 57,497,471 | 49,174,741 | ' |
STOCKHOLDERS' EQUITY | ' | ' | ' | ' |
Accumulated other comprehensive income | ' | 3,772,701 | 3,418,424 | ' |
Accumulated deficit | ' | -58,236,029 | -65,527,468 | ' |
Total stockholders' equity | ' | 153,273,987 | 145,441,302 | ' |
Total liabilities and stockholders' equity | ' | 210,771,458 | 194,616,043 | ' |
Restatement Adjustment [Member] | ' | ' | ' | ' |
CURRENT ASSETS: | ' | ' | ' | ' |
Cash | ' | 15,869,322 | 15,813,740 | ' |
Other current assets | ' | 419,389 | 459,359 | ' |
Total current assets | ' | 16,288,711 | 16,273,099 | ' |
Total assets | ' | 16,288,711 | 16,273,099 | ' |
CURRENT LIABILITIES: | ' | ' | ' | ' |
Accrued expenses | ' | 777,907 | 324,096 | ' |
Total current liabilities | ' | 777,907 | 324,096 | ' |
Long-term bond payable | ' | 16,336,933 | 16,294,075 | ' |
Total liabilities | ' | 17,114,840 | 16,618,171 | ' |
STOCKHOLDERS' EQUITY | ' | ' | ' | ' |
Accumulated other comprehensive income | ' | -6,402 | -1,048 | ' |
Accumulated deficit | ' | -819,727 | -344,024 | ' |
Total stockholders' equity | ' | -826,129 | -345,072 | ' |
Total liabilities and stockholders' equity | ' | $16,288,711 | $16,273,099 | ' |
RESTATEMENT_OF_PREVIOUSLY_ISSU4
RESTATEMENT OF PREVIOUSLY ISSUED UNAUDITED QUARTERLY FINANCIAL INFORMATION (OPERATIONS AND COMPREHENSIVE INCOME (LOSS)) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Interest income | ' | $40,941 | $8,461 | ' | ' | ' | ' | ' | $37,020 | $77,961 | $168,221 | $284 |
Interest (expense) | ' | -515,291 | -327,115 | ' | ' | ' | ' | ' | -366,265 | -881,556 | -1,423,545 | -23,304 |
Other income (expense) | ' | -48,255 | -85,147 | ' | ' | ' | ' | ' | -84,344 | -132,599 | -1,430,047 | -23,614 |
Total Other Income (Expense) | ' | -522,605 | -403,801 | ' | ' | ' | ' | ' | -413,589 | -936,194 | -2,685,371 | -79,136 |
Income (loss) from continuing operations before income taxes | 7,224,000 | 8,680,283 | 7,043,981 | 4,247,000 | 3,572,000 | -4,784,000 | -517,000 | -1,103,000 | 11,290,820 | 19,971,103 | 27,193,866 | -2,831,797 |
Net income (loss) from continuing operations | 5,448,000 | 6,815,736 | 5,385,139 | 3,004,000 | 2,274,000 | -4,836,000 | -517,000 | -1,103,000 | 8,389,136 | 15,204,872 | 20,653,473 | -4,182,501 |
Net Income (loss) | 5,448,000 | 6,815,736 | 5,385,139 | 3,004,000 | 2,273,000 | -4,950,000 | -330,000 | -997,000 | 8,389,136 | 15,204,872 | 20,653,473 | -4,004,225 |
Foreign Currency translation gain | ' | 348,923 | 1,542,802 | ' | ' | ' | ' | ' | 2,033,011 | 2,381,934 | 4,085,015 | 1,384,365 |
COMPREHENSIVE INCOME (LOSS) | ' | 7,164,659 | 6,927,941 | ' | ' | ' | ' | ' | 10,422,147 | 17,586,806 | 24,738,488 | -2,619,860 |
BASIC AND DILUTED INCOME (LOSS) PER COMMON SHARE FROM CONTINUING OPERATIONS | $0.25 | $0.33 | $0.26 | $0.15 | $0.33 | ($0.50) | ($0.06) | ($0.13) | $0.41 | $0.73 | $0.99 | ($0.36) |
BASIC AND DILUTED INCOME (LOSS) PER COMMON SHARE | $0.25 | $0.33 | $0.26 | $0.15 | $0.33 | ($0.51) | ($0.04) | ($0.12) | $0.41 | $0.73 | $0.99 | ($0.34) |
Scenario, Previously Reported [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest income | ' | 27,079 | ' | ' | ' | ' | ' | ' | 28,559 | 55,638 | ' | ' |
Interest (expense) | ' | -66,523 | -4,004 | ' | ' | ' | ' | ' | -43,154 | -109,677 | ' | ' |
Other income (expense) | ' | -7,458 | -55,773 | ' | ' | ' | ' | ' | -54,970 | -62,428 | ' | ' |
Total Other Income (Expense) | ' | -46,902 | -59,777 | ' | ' | ' | ' | ' | -69,565 | -116,467 | ' | ' |
Income (loss) from continuing operations before income taxes | ' | 9,155,986 | 7,388,005 | ' | ' | ' | ' | ' | 11,634,844 | 20,790,830 | ' | ' |
Net income (loss) from continuing operations | ' | 7,291,439 | 5,729,163 | ' | ' | ' | ' | ' | 8,733,160 | 16,024,599 | ' | ' |
Net Income (loss) | ' | 7,291,439 | 5,729,163 | ' | ' | ' | ' | ' | 8,733,160 | 16,024,599 | ' | ' |
Foreign Currency translation gain | ' | 354,277 | 1,543,850 | ' | ' | ' | ' | ' | 2,034,059 | 2,388,336 | ' | ' |
COMPREHENSIVE INCOME (LOSS) | ' | 7,645,716 | 7,273,013 | ' | ' | ' | ' | ' | 10,767,219 | 18,412,935 | ' | ' |
BASIC AND DILUTED INCOME (LOSS) PER COMMON SHARE FROM CONTINUING OPERATIONS | ' | $0.35 | $0.28 | ' | ' | ' | ' | ' | $0.42 | $0.77 | ' | ' |
BASIC AND DILUTED INCOME (LOSS) PER COMMON SHARE | ' | $0.35 | $0.28 | ' | ' | ' | ' | ' | $0.42 | $0.77 | ' | ' |
Restatement Adjustment [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest income | ' | 13,862 | 8,461 | ' | ' | ' | ' | ' | 8,461 | 22,323 | ' | ' |
Interest (expense) | ' | 448,768 | 323,111 | ' | ' | ' | ' | ' | 323,111 | 771,879 | ' | ' |
Other income (expense) | ' | 40,797 | 29,374 | ' | ' | ' | ' | ' | 29,374 | 70,171 | ' | ' |
Total Other Income (Expense) | ' | 475,703 | 344,024 | ' | ' | ' | ' | ' | 344,024 | 819,727 | ' | ' |
Income (loss) from continuing operations before income taxes | ' | -475,703 | -344,024 | ' | ' | ' | ' | ' | -344,024 | -819,727 | ' | ' |
Net income (loss) from continuing operations | ' | -475,703 | -344,024 | ' | ' | ' | ' | ' | -344,024 | -819,727 | ' | ' |
Net Income (loss) | ' | -475,703 | -344,024 | ' | ' | ' | ' | ' | -344,024 | -819,727 | ' | ' |
Foreign Currency translation gain | ' | -5,354 | -1,048 | ' | ' | ' | ' | ' | -1,048 | -6,402 | ' | ' |
COMPREHENSIVE INCOME (LOSS) | ' | ($481,057) | ($345,072) | ' | ' | ' | ' | ' | ($345,072) | ($826,129) | ' | ' |
BASIC AND DILUTED INCOME (LOSS) PER COMMON SHARE FROM CONTINUING OPERATIONS | ' | ($0.02) | ($0.02) | ' | ' | ' | ' | ' | ($0.01) | ($0.04) | ' | ' |
BASIC AND DILUTED INCOME (LOSS) PER COMMON SHARE | ' | ($0.02) | ($0.02) | ' | ' | ' | ' | ' | ($0.01) | ($0.04) | ' | ' |
RESTATEMENT_OF_PREVIOUSLY_ISSU5
RESTATEMENT OF PREVIOUSLY ISSUED UNAUDITED QUARTERLY FINANCIAL INFORMATION (CASH FLOWS) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Cash Flows from Operating Activities | ' | ' | ' | ' | ' |
Net income (loss) from continuing operations | $6,815,736 | $8,389,136 | $15,204,872 | $20,653,473 | ($4,182,501) |
Change in assets and liabilities: | ' | ' | ' | ' | ' |
Prepaid expenses | ' | -144,161 | -285,139 | -362,362 | -117,453 |
Accrued liabilities | ' | 327,527 | 960,545 | 1,408,638 | 528,309 |
Net Cash Provided by continuing operations | ' | 22,049,025 | 38,576,554 | 54,403,233 | 8,763,750 |
Net Cash Provided by (Used in) Operating Activities | ' | 22,049,025 | 38,576,554 | 54,403,233 | 8,863,821 |
Cash Flows from Financing Activities: | ' | ' | ' | ' | ' |
Proceeds from long-term bond offering | ' | 16,294,075 | 16,336,933 | 16,262,542 | ' |
Net Cash Provided by Financing Activities | ' | 16,146,771 | 15,915,199 | 20,091,441 | 1,484,038 |
Effect of Exchange Rate Change on Cash | ' | 340,544 | 476,752 | 1,743,169 | 168,926 |
Net Increase in Cash | ' | 23,817,017 | 39,772,715 | 79,874,593 | 18,764,617 |
Cash at Beginning of Year | 43,488,954 | 19,671,937 | 19,671,937 | 19,671,937 | ' |
Cash at End of Year | 59,444,652 | 43,488,954 | 59,444,652 | 99,546,530 | 19,671,937 |
Scenario, Previously Reported [Member] | ' | ' | ' | ' | ' |
Cash Flows from Operating Activities | ' | ' | ' | ' | ' |
Net income (loss) from continuing operations | 7,291,439 | 8,733,160 | 16,024,599 | ' | ' |
Change in assets and liabilities: | ' | ' | ' | ' | ' |
Prepaid expenses | ' | 603,520 | -704,528 | ' | ' |
Accrued liabilities | ' | 3,431 | 182,638 | ' | ' |
Net Cash Provided by continuing operations | ' | 22,528,312 | 39,037,763 | ' | ' |
Net Cash Provided by (Used in) Operating Activities | ' | 22,528,312 | 39,037,763 | ' | ' |
Cash Flows from Financing Activities: | ' | ' | ' | ' | ' |
Proceeds from long-term bond offering | ' | ' | ' | ' | ' |
Net Cash Provided by Financing Activities | ' | -147,304 | -421,734 | ' | ' |
Effect of Exchange Rate Change on Cash | ' | 34,152 | 483,154 | ' | ' |
Net Increase in Cash | ' | 8,003,277 | 23,903,393 | ' | ' |
Cash at Beginning of Year | 27,675,214 | 19,671,937 | 19,671,937 | 19,671,937 | ' |
Cash at End of Year | 43,575,330 | 27,675,214 | 43,575,330 | ' | ' |
Restatement Adjustment [Member] | ' | ' | ' | ' | ' |
Cash Flows from Operating Activities | ' | ' | ' | ' | ' |
Net income (loss) from continuing operations | -475,703 | -344,024 | -819,727 | ' | ' |
Change in assets and liabilities: | ' | ' | ' | ' | ' |
Prepaid expenses | ' | -459,359 | 419,389 | ' | ' |
Accrued liabilities | ' | 324,096 | 777,907 | ' | ' |
Net Cash Provided by continuing operations | ' | -479,287 | -461,209 | ' | ' |
Net Cash Provided by (Used in) Operating Activities | ' | -479,287 | -461,209 | ' | ' |
Cash Flows from Financing Activities: | ' | ' | ' | ' | ' |
Proceeds from long-term bond offering | ' | 16,294,075 | 16,336,933 | ' | ' |
Net Cash Provided by Financing Activities | ' | 16,294,075 | 16,336,933 | ' | ' |
Effect of Exchange Rate Change on Cash | ' | -1,048 | -6,402 | ' | ' |
Net Increase in Cash | ' | 15,813,740 | 15,869,322 | ' | ' |
Cash at Beginning of Year | 15,813,740 | ' | ' | ' | ' |
Cash at End of Year | $15,869,322 | $15,813,740 | $15,869,322 | ' | ' |
CONCENTRATIONS_Details
CONCENTRATIONS (Details) | 12 Months Ended | ||||||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | |
Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Payable [Member] | Accounts Payable [Member] | Accounts Payable [Member] | Accounts Payable [Member] | |
Customer One [Member] | Customer Two [Member] | Customer Three [Member] | Vendor One [Member] | Vendor Two [Member] | Vendor Three [Member] | Vendor Four [Member] | |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Percentage | 16.00% | 11.00% | 10.00% | 16.00% | 13.00% | 13.00% | 10.00% |
SEGMENT_REPORTNG_Details
SEGMENT REPORTNG (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $32,629,000 | $29,751,000 | $25,857,000 | $22,636,000 | $23,997,000 | $1,745,000 | $870,000 | $847,000 | $110,873,419 | $27,458,730 |
Cost of revenues | ' | ' | ' | ' | ' | ' | ' | ' | 63,459,542 | 16,439,641 |
Gross profit | 13,454,000 | 14,090,000 | 11,495,000 | 8,375,000 | 9,003,000 | 961,000 | 507,000 | 548,000 | 47,413,877 | 11,019,089 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 6,887,986 | 1,972,047 |
Total assets | 240,833,459 | 227,060,169 | 210,889,142 | ' | 167,795,219 | ' | ' | ' | 240,833,459 | 167,795,219 |
Wholesale [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 60,404,000 | 16,409,000 |
Cost of revenues | ' | ' | ' | ' | ' | ' | ' | ' | 48,537,000 | 12,902,000 |
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | 11,867,000 | 3,507,000 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 252,000 | 156,000 |
Total assets | 74,705,000 | ' | ' | ' | 37,061,000 | ' | ' | ' | 74,705,000 | 37,061,000 |
Retail [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 9,010,000 | 2,000,000 |
Cost of revenues | ' | ' | ' | ' | ' | ' | ' | ' | 6,543,000 | 1,449,000 |
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | 2,467,000 | 552,000 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 888,000 | 305,000 |
Total assets | 49,741,000 | ' | ' | ' | 24,719,000 | ' | ' | ' | 49,741,000 | 24,719,000 |
Kiosks/ Podcasting [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 41,459,000 | 9,050,000 |
Cost of revenues | ' | ' | ' | ' | ' | ' | ' | ' | 8,379,000 | 2,089,000 |
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | 33,080,000 | 6,960,000 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 5,748,000 | 1,511,000 |
Total assets | $116,387,000 | ' | ' | ' | $106,015,000 | ' | ' | ' | $116,387,000 | $106,015,000 |
QUARTERLY_FINANCIAL_INFORMATIO2
QUARTERLY FINANCIAL INFORMATION (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
QUARTERLY FINANCIAL INFORMATION [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $32,629,000 | $29,751,000 | $25,857,000 | $22,636,000 | $23,997,000 | $1,745,000 | $870,000 | $847,000 | ' | ' | $110,873,419 | $27,458,730 |
Gross profit | 13,454,000 | 14,090,000 | 11,495,000 | 8,375,000 | 9,003,000 | 961,000 | 507,000 | 548,000 | ' | ' | 47,413,877 | 11,019,089 |
Operating income (loss) - continuing operations | 7,224,000 | 8,680,283 | 7,043,981 | 4,247,000 | 3,572,000 | -4,784,000 | -517,000 | -1,103,000 | 11,290,820 | 19,971,103 | 27,193,866 | -2,831,797 |
Net income (loss) from continuing operations | 5,448,000 | 6,815,736 | 5,385,139 | 3,004,000 | 2,274,000 | -4,836,000 | -517,000 | -1,103,000 | 8,389,136 | 15,204,872 | 20,653,473 | -4,182,501 |
Net income (loss) available to common stockholders | $5,448,000 | $6,815,736 | $5,385,139 | $3,004,000 | $2,273,000 | ($4,950,000) | ($330,000) | ($997,000) | $8,389,136 | $15,204,872 | $20,653,473 | ($4,004,225) |
Basic and diluted income (loss) per share - continuing operations | $0.25 | $0.33 | $0.26 | $0.15 | $0.33 | ($0.50) | ($0.06) | ($0.13) | $0.41 | $0.73 | $0.99 | ($0.36) |
Basic and diluted income (loss) per share | $0.25 | $0.33 | $0.26 | $0.15 | $0.33 | ($0.51) | ($0.04) | ($0.12) | $0.41 | $0.73 | $0.99 | ($0.34) |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 23, 2014 |
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | ' | ' | ' |
Lease term | ' | ' | '63 months |
Security deposit | $271,239 | $255,628 | $309,312 |
Monthly rent expense | ' | ' | $25,776 |