Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Document And Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
Trading Symbol | GIGM |
Entity Registrant Name | GIGAMEDIA Ltd |
Entity Central Index Key | 1,105,101 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 11,052,235 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
CURRENT ASSETS | ||
Cash and cash equivalents (Note 8) | $ 63,670 | $ 65,711 |
Marketable securities - current (Note 9) | 3 | |
Accounts receivable - net (Note 10) | 751 | 871 |
Prepaid expenses | 390 | 547 |
Restricted cash (Note 8) | 507 | 500 |
Other current assets (Note 11) | 193 | 1,250 |
Total Current Assets | 65,511 | 68,882 |
EQUITY INVESTMENTS (Note 13) | 72 | |
PROPERTY, PLANT AND EQUIPMENT, NET (Note 14) | 158 | 7 |
INTANGIBLE ASSETS - NET (Note 5) | 3 | |
OTHER ASSETS | ||
Refundable deposits | 208 | 245 |
Prepaid licensing and royalty fees (Note 6) | 459 | 1,020 |
Other (Note 17) | 74 | 101 |
TOTAL ASSETS | 66,413 | 70,327 |
CURRENT LIABILITIES | ||
Short-term borrowings (Note 15) | 2,480 | |
Accounts payable | 314 | 266 |
Accrued compensation | 549 | 210 |
Accrued expenses (Note 16) | 2,158 | 3,828 |
Deferred revenue | 1,863 | 1,868 |
Other current liabilities | 164 | 346 |
Total Current Liabilities | 5,048 | 8,998 |
NONCURRENT LIABILITIES | ||
Deferred tax liabilities (Note 21) | 1,671 | |
Total Liabilities | 5,048 | 10,669 |
COMMITMENTS AND CONTINGENCIES (Note 23) | ||
SHAREHOLDERS' EQUITY (Note 18) | ||
Common shares, no par value, and additional paid-in capital; issued and outstanding 11,052 thousand shares in 2016 and 2017 | 308,747 | 308,754 |
Accumulated deficit | (225,399) | (226,485) |
Accumulated other comprehensive loss | (21,983) | (22,611) |
Total GigaMedia Shareholders’ Equity | 61,365 | 59,658 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 66,413 | $ 70,327 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Statement Of Financial Position [Abstract] | ||
Common shares, no par value | ||
Common shares, issued | 11,052 | 11,052 |
Common shares, outstanding | 11,052 | 11,052 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
OPERATING REVENUES | |||
Sales Revenue Net | $ 11,596 | $ 8,971 | $ 10,251 |
COSTS OF REVENUES | |||
Cost of goods and services sold | (5,098) | (4,138) | (8,889) |
GROSS PROFIT | 6,498 | 4,833 | 1,362 |
OPERATING EXPENSES | |||
Product development and engineering expenses | (1,072) | (1,045) | (688) |
Selling and marketing expenses | (3,993) | (5,513) | (8,655) |
General and administrative expenses | (3,528) | (3,458) | (5,817) |
Impairment loss on property, plant and equipment (Note 7) | (471) | (60) | |
Impairment loss on intangible assets (Note 7) | (57) | (5) | |
Impairment loss on prepaid licensing and royalty fees (Notes 6 and 7) | (1,386) | (4,187) | |
Termination of proposed acquisition (Note 3) | (2,000) | ||
Gain on termination of licensing agreement (Note 6) | 1,732 | ||
Other (Note 10) | (127) | (35) | (3) |
Operating Expenses | (6,988) | (11,965) | (21,415) |
LOSS FROM OPERATIONS | (490) | (7,132) | (20,053) |
NON-OPERATING INCOME (EXPENSES) | |||
Interest income | 602 | 302 | 333 |
Gain on disposal of marketable securities (Note 9) | 2 | 19,939 | |
Gain on disposal of property, plant and equipment - net (Note 14) | 1 | 751 | |
Interest expense | (34) | (81) | (182) |
Foreign exchange loss, net | (551) | (301) | (397) |
Net loss on equity investments (Note 13) | (24) | (1,731) | (600) |
Impairment loss on investments (Note 7) | (52) | (1,290) | |
Gain on disposal of subsidiary and equity investments (Note 4) | 849 | 37 | |
Other (Note 17) | (39) | 128 | (489) |
Nonoperating Income (Expense), Total | (95) | (83) | 17,351 |
LOSS BEFORE INCOME TAXES | (585) | (7,215) | (2,702) |
INCOME TAX BENEFIT (Note 21) | 1,671 | 1,149 | 414 |
NET INCOME (LOSS) | 1,086 | (6,066) | (2,288) |
LESS: NET LOSS ATTRIBUTABLE TO THE NONCONTROLLING INTERESTS | 45 | ||
NET INCOME (LOSS) ATTRIBUTABLE TO SHAREHOLDERS OF GIGAMEDIA | $ 1,086 | $ (6,066) | $ (2,243) |
EARNINGS (LOSS) PER SHARE ATTRIBUTABLE TO GIGAMEDIA | |||
Basic and Diluted: | $ 0.10 | $ (0.55) | $ (0.20) |
WEIGHTED AVERAGE SHARES USED TO COMPUTE EARNINGS (LOSS) PER SHARE ATTRIBUTABLE TO GIGAMEDIA SHAREHOLDERS (Note 2) | |||
Basic | 11,052 | 11,052 | 11,052 |
Diluted | 11,052 | 11,052 | 11,052 |
Digital entertainment service revenues | |||
OPERATING REVENUES | |||
Sales Revenue Net | $ 11,596 | $ 8,971 | $ 8,545 |
COSTS OF REVENUES | |||
Cost of goods and services sold | $ (5,098) | $ (4,138) | (7,018) |
Other Revenues | |||
OPERATING REVENUES | |||
Sales Revenue Net | 1,706 | ||
COSTS OF REVENUES | |||
Cost of goods and services sold | $ (1,871) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
NET INCOME (LOSS) | $ 1,086 | $ (6,066) | $ (2,288) |
OTHER COMPREHENSIVE INCOME (LOSS) - NET OF TAX: | |||
Unrealized gain on marketable securities | (1) | 8,553 | |
Realized gain on marketable securities reclassified into income | (2) | (19,939) | |
Defined benefit pension plan adjustment | (11) | (58) | |
Foreign currency translation adjustment | 641 | (217) | 538 |
Other comprehensive income (loss) | 628 | (276) | (10,848) |
COMPREHENSIVE INCOME (LOSS) | 1,714 | (6,342) | (13,136) |
COMPREHENSIVE LOSS ATTRIBUTABLE TO THE NONCONTROLLING INTERESTS | 45 | ||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO GIGAMEDIA SHAREHOLDERS | $ 1,714 | $ (6,342) | $ (13,091) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common shares and additional paid-in capital | Accumulated deficit | Accumulated other comprehensive loss | Noncontrolling interest |
Balance at Dec. 31, 2014 | $ 79,029 | $ 308,682 | $ (218,176) | $ (11,487) | $ 10 |
Balance (in shares) at Dec. 31, 2014 | 11,052 | ||||
Stock-based compensation | 63 | $ 63 | |||
Deconsolidation of FingerRockz (Note 4) | 35 | 35 | |||
Net income (loss) | (2,288) | (2,243) | $ (45) | ||
Other comprehensive income (loss) | (10,848) | (10,848) | |||
Balance at Dec. 31, 2015 | 65,991 | $ 308,745 | (220,419) | (22,335) | |
Balance (in shares) at Dec. 31, 2015 | 11,052 | ||||
Stock-based compensation | 9 | $ 9 | |||
Net income (loss) | (6,066) | (6,066) | |||
Other comprehensive income (loss) | (276) | (276) | |||
Balance at Dec. 31, 2016 | $ 59,658 | $ 308,754 | (226,485) | (22,611) | |
Balance (in shares) at Dec. 31, 2016 | 11,052 | 11,052 | |||
Stock-based compensation | $ (7) | $ (7) | |||
Net income (loss) | 1,086 | 1,086 | |||
Other comprehensive income (loss) | 628 | 628 | |||
Balance at Dec. 31, 2017 | $ 61,365 | $ 308,747 | $ (225,399) | $ (21,983) | |
Balance (in shares) at Dec. 31, 2017 | 11,052 | 11,052 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) | $ 1,086 | $ (6,066) | $ (2,288) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||
Depreciation | 43 | 162 | 294 |
Amortization | 12 | 111 | 245 |
Stock-based compensation | (7) | 9 | 65 |
Gain on disposal of subsidiary and equity investments | (849) | (37) | |
Impairment loss on property and equipment | 471 | 60 | |
Impairment losses on intangible assets | 57 | 5 | |
Impairment losses on prepaid licensing and royalty fees | 1,386 | 4,187 | |
Bad debt | 127 | 35 | 3 |
Gains on disposals of property, plant and equipment - net | (1) | (751) | |
Gains on disposal of marketable securities | (2) | (19,939) | |
Net loss on equity investments | 24 | 1,731 | 600 |
Impairment losses on marketable securities and investments | 52 | 1,290 | |
Deferred income tax benefits | (1,672) | (41) | (216) |
Other | (11) | ||
Net changes in: | |||
Accounts receivable | 14 | 341 | 47 |
Prepaid expenses | 137 | (12) | 17 |
Other current assets | (6) | 49 | 82 |
Prepaid licensing and royalty fees | 561 | (2,167) | (43) |
Prepaid pension assets | (9) | 46 | (64) |
Accounts payable | 48 | (24) | (451) |
Accrued compensation | 339 | (331) | (28) |
Accrued expenses | (1,670) | 1,071 | (396) |
Other current liabilities | (186) | (916) | (267) |
Net cash used in operating activities | (1,110) | (5,688) | (16,845) |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Cash dividends received from investees | 1,438 | ||
Proceeds from disposals of marketable securities | 2 | 42,583 | |
Carrying amount of cash from divestiture of business | (482) | (78) | |
Purchases of property, plant and equipment | (192) | (496) | (158) |
Proceeds from disposals of property, plant and equipment | 1 | 1,950 | 23 |
Proceeds from disposals of subsidiary and equity investments | 1,058 | 872 | |
Purchase of cost method investments | (1,000) | ||
Increase in intangible assets | (11) | (86) | (112) |
Decrease in refundable deposits | 37 | 27 | 27 |
Other | 40 | 30 | (111) |
Net cash provided by investing activities | 935 | 3,253 | 41,174 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from short-term borrowings | 986 | ||
Repayments of short-term borrowings | (3,617) | (3,722) | (12,281) |
Other | (10) | ||
Net cash used in financing activities | (2,631) | (3,732) | (12,281) |
Net foreign currency exchange differences on cash, restricted cash and cash equivalents | 772 | (54) | 753 |
NET INCREASE (DECREASE) IN CASH, RESTRICTED CASH AND CASH EQUIVALENTS | (2,034) | (6,221) | 12,801 |
CASH, RESTRICTED CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 66,211 | 72,432 | 59,631 |
CASH, RESTRICTED CASH AND CASH EQUIVALENTS AT END OF YEAR | 64,177 | 66,211 | 72,432 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||
Interest paid during the year | 35 | 83 | 190 |
Income tax paid during the year | $ 1 | $ 46 | $ 44 |
Principal Activities, Basis of
Principal Activities, Basis of Presentation, and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Principal Activities, Basis of Presentation, and Summary of Significant Accounting Policies | NOTE 1. Principal Activities, Basis of Presentation, and Summary of Significant Accounting Policies (a) Principal Activities GigaMedia Limited (referred to hereinafter as GigaMedia, our Company, we, us, or our) is a diversified provider of digital entertainment services, with headquarters in Taipei, Taiwan. Our digital entertainment service business operates a suite of play-for-fun digital entertainment services, mainly targeting online and mobile-device users across Asia. Our cloud business aimed at providing an integrated platform of services and tools for medium-to-larger enterprises in Greater China to increase flexibility, efficiency and competitiveness, as well as in bidding for government contracts in Taiwan. After reviewing the business plan for 2016, we decided to redirect our cloud service business resources for internal use, in particular, by moving the servers used in our digital entertainment business to the cloud, including the related maintenance, and to wind down our cloud service activities. On December 16, 2015, the Extraordinary General Meeting of our Company approved to effect a reverse share split of our Ordinary Shares by a ratio of five to one. We executed reverse splits of the issued and outstanding shares including but not limited to common shares, shares granted by employee plans, options, restricted stock awards, and units, warrants and convertible or exchange securities, effective at the open of the market on December 16, 2015. Based upon the Reverse Share Split Scheme, proportionate adjustments are generally required to be made to the per share exercise price and the number of shares issuable upon the exercise or conversion of all outstanding options. These consolidated financial statements reflect retroactive effect to such reverse split and all share and per share amounts have been adjusted accordingly. (b) Basis of Presentation The accompanying consolidated financial statements of our Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). (c) Summary of significant accounting policies Principles of Consolidation The consolidated financial statements include the accounts of GigaMedia and subsidiaries after elimination of all inter-company accounts and transactions. Foreign Currency Translation and Transactions Assets and liabilities denominated in non-U.S. dollars are translated to U.S. dollars at year-end exchange rates. Income and expense items are translated at average rates of exchange prevailing during the year. Cumulative translation adjustments resulting from this process are charged or credited to other comprehensive income. Gains and losses on foreign currency transactions are included in other income and expenses. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Management bases its estimates on historical experience and also on assumptions that it believes are reasonable. Management assesses these estimates on a regular basis; however, actual results could differ from those estimates. Significant items subject to such estimates and assumptions include but not limit to the deferral of revenues; the useful lives of property, plant and equipment; allowances for doubtful accounts; the valuation of deferred tax assets, long-lived assets, investments and share-based compensation; and accrued pension liabilities (prepaid pension assets), income tax uncertainties and other contingencies. We believe the critical accounting policies listed below affect significant judgments and estimates used in the preparation of the financial statements. Revenue Recognition General Revenues are recognized when persuasive evidence of an arrangement exists, delivery occurs and the customer takes ownership and assumes risks or services are rendered, the sales price is fixed or determinable and collectability is reasonably assured. Sales taxes assessed by governmental authorities on our revenue transactions are presented on a net basis and therefore are excluded from revenues in our consolidated financial statements. In addition to the aforementioned general policies, the following are the specific revenue recognition policies for each major category of revenue. Digital Entertainment Product and Service Revenues Digital entertainment product and service revenues are earned through the sale of virtual points, prepaid cards and game packs. Virtual points are sold to distributors or end-users who can make the payments through credit cards, Internet ATMs or telecommunication service operators. Prepaid cards and game packs are sold through distributors and convenience stores. Proceeds from sales of prepaid cards and game packs, net of sales discounts, and virtual points are deferred when received and revenue is recognized upon the actual usage of the playing time or in-game virtual items by the end-users; over the estimated useful life of virtual items; or when the sold points expire and can no longer be used to access the digital services in accordance with our published points expiration policy. Sales of virtual points, prepaid cards and game packs are reported on a gross basis. In the sales of virtual points, we act as principal and we have latitude in establishing price. Fixed percentage fees retained by service providers for payment processing related to our digital entertainment services are recognized as cost of digital entertainment revenues. Cloud Product and Service Revenues Cloud service revenues that we provided prior to 2016 were related to cloud computing services provided by our Company. Revenues are recorded net of discounts. Cloud service revenues are recognized upon acceptance for project services provided, or for the period of time for which we provide services to the customer. Customers of subscriptions have a choice of paying either monthly or in advance for a certain period of time, for which they receive corresponding discounts. Our Company records any such advanced payment receipts as other current liabilities and amortizes such revenues over the subscription period. Revenues from the sales of equipment and other related products are recognized upon acceptance. Deferred Revenues Deferred revenues consist mainly of the advanced income related to our digital entertainment business. Deferred revenue represents proceeds received relating to the sale of virtual points and in-game items which are activated or charged to the respective user account by users, but which have not been consumed by the users or expired. Deferred revenue is credited to profit or loss when the virtual points and in-game items are consumed or expired. Pursuant to relevant new requirements in Taiwan, as of December 31, 2016 and 2017, cash totaling $500 thousand and $507 thousand, respectively, has been deposited in an escrow account in a bank as a performance bond for the users’ virtual points, and is included within restricted cash in the consolidated balance sheets. Prepaid Licensing and Royalty Fees Our Company, through our subsidiaries, routinely enters into agreements with licensors to acquire licenses for using, marketing, distributing, selling and publishing digital entertainment offerings. Prepaid licensing fees paid to licensors are amortized on a straight-line basis over the shorter of the estimated useful economic life of the relevant product and service or license period, which is usually within one to two years. Prepaid royalty fees and related costs are initially deferred when paid to licensors and amortized as operating costs based on certain percentage of revenues generated by the licensee from operating the related digital entertainment product and service in the specific country or region over the contract period. Fair Value Measurements Our Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. We determine fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: • Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. • Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. • Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. Our Company generally determines or calculates the fair value of financial instruments using quoted market prices in active markets when such information is available; otherwise we apply appropriate present value or other valuation techniques, such as discounted cash flow analyses, incorporating adjusted available market discount rate information and our Company’s estimates for non-performance and liquidity risk. These techniques rely extensively on the use of a number of assumptions, including the discount rate, credit spreads, and estimates of future cash flows. (See Note 7, “Fair Value Measurements”, for additional information.) Cash Equivalents, Restricted Cash and Presentation of Statements of Cash Flows Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and so near to their maturity that they present relatively insignificant risk from changes in interest rates. Commercial paper, negotiable certificates of deposit, time deposits and bank acceptances with original maturities of three months or less are considered to be cash equivalents. In accordance with Accounting Standards Update (“ASU”) No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash Marketable Securities Our Company’s investments in marketable securities are classified either as available-for-sale or trading. For the marketable securities classified as available-for-sale, the investments are stated at fair value with any unrealized gains or losses reported in accumulated other comprehensive income (loss) within equity until realized. For the marketable security classified as trading, we recognize the changes of the fair value of the investment in our consolidated statements of operations. Other-than-temporary impairments, if any, are charged to non-operating expense in the period in which the loss occurs. In determining whether an other-than-temporary impairment has occurred, our Company primarily considers, among other factors, the length of the time and the extent to which the fair value of an investment has been at a value less than cost. When an other-than-temporary loss is recognized, the fair value of the investment becomes the new cost basis of the investment and is not adjusted for subsequent recoveries in fair value. Realized gains and losses also are included in non-operating income and expense in the consolidated statements of operations. (See Note 7, “Fair Value Measurements”, for additional information.) Investments Equity investments in non-publicly traded securities of companies over which our Company has no ability to exercise significant influence are accounted for under the cost method. For equity investments accounted for as available-for-sale or trading, cash dividends are recognized as investment income. Stock dividends are recognized as an increase in the number of shares held and do not affect investment income. The cost per share is recalculated based on the new total number of shares. For equity investments accounted under equity method, stock dividends received from investees as a result of appropriation of net earnings and additional paid-in capital are recognized as an increase in the number of shares held and do not affect investment income. The cost per share is recalculated based on the weighted-average method. Cash dividends are accounted for as a reduction to the carrying value of the investment. Equity investments in companies over which our Company has the ability to exercise significant influence but does not hold a controlling financial interest are accounted for under the equity method. We recognize our share of the earnings or losses of the investee. Under the equity method, the difference between the cost of the acquisition and our Company’s share of the fair value of the net identifiable assets is recognized as goodwill and is included in the carrying amount of the investment. When our Company’s carrying value in an equity method investee is reduced to zero, no further losses are recorded in our consolidated financial statements unless our Company guaranteed obligations of the investee or has committed to additional funding. When the investee subsequently reports income, our Company will not record its share of such income until it equals the amount of its share of losses not previously recognized. Unrealized losses that are considered other-than-temporary, if any, are charged to non-operating expenses. Realized gains and losses, measured against carrying amount, are also included in non-operating income and expenses. (See Note 7, “Fair Value Measurements”, for additional information.) Receivables Accounts receivable are recorded at the invoiced amount and do not bear interest. Amounts collected on accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. Our Company maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions and our customers’ financial condition, the amount of receivables in dispute, and the current receivables aging and current payment patterns. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Property, Plant and Equipment Property, plant and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation is recorded on a straight-line basis over useful lives that correspond to categories as follows: Categories Years Buildings 50 Information and communication equipment 2 to 5 Office furniture and equipment 3 to 5 Leasehold improvements 3 to 5 Leasehold improvements are amortized over the shorter of the term of the lease or the economic useful life of the assets. Improvements and replacements are capitalized and depreciated over their estimated useful lives, while ordinary repairs and maintenance are expensed as incurred. We had entered into agreements to lease certain of our Company’s land and buildings to a third party under operating leases, which were renewed in September and October 2013 and expired in 2016. As of December 31, 2015, the carrying amount of the land and buildings under lease was $1.1 million. In January 2016, we entered into disposal agreements to sell these land and buildings. The closing of the disposal occurred in March 2016. (See Note 14, “Property, Plant and Equipment”, for additional information.)The rental income under the operating lease amounted to $69 thousand and $9 thousand for 2015 and 2016, respectively. Business Acquisitions Our Company accounts for its business acquisitions using the acquisition method. Under this method, our Company recognizes and measures the identifiable assets acquired, the liabilities assumed and any noncontrolling interest at their acquisition-date fair values, with limited exceptions. Acquisition-related costs are generally expensed as incurred. Intangible Assets and Goodwill Intangible assets with finite lives are amortized by the straight-line method over their estimated useful lives, typically one to three years. Impairment of Intangible Assets and Long-Lived Assets Long-lived assets other than goodwill and intangible assets not being amortized are reviewed for impairment at least annually or whenever events or changes in circumstances indicate that the carrying value of an asset might not be recoverable from its related future undiscounted cash flows. If such assets are considered to be impaired, the impairment to be recognized is measured by the extent to which the carrying amount of the assets exceeds the fair value of the assets. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. When impairment is identified, the carrying amount of the asset is reduced to its estimated fair value, and is recognized as a loss from operations. (See Note 7, “Fair Value Measurements”, for additional information.) Software Cost We capitalize certain costs incurred to purchase computer software. These capitalized costs are amortized on a straight-line basis over the shorter of the useful economic life of the software or its contractual license period, which is typically one to three years. Product Development and Engineering Product development and engineering expenses primarily consist of research compensation, depreciation and amortization, and are expensed as incurred. Advertising Costs of broadcast advertising are recorded as expenses as advertising airtime is used. Other advertising expenditures are expensed as incurred. Advertising expenses incurred in 2015, 2016 and 2017 totaled $3.1 million, $3.3 million and $1.9 million, respectively. As of December 31, 2016 and 2017, prepaid advertising amounted to $42 thousand and $18 thousand, respectively. Leases Leases for which substantially all of the risks and rewards of ownership remain with the leasing company are accounted for as operating leases. Payments made under operating leases, net of any incentives received by our Company from the leasing company, are charged to the consolidated statements of operations on a straight-line basis over the lease periods. Share-Based Compensation Share-based compensation represents the cost related to share-based awards granted to employees. We measure share-based compensation cost at the grant date, based on the estimated fair value of the award. Share-based compensation is recognized for the portion of the award that is ultimately expected to vest, and the cost is amortized on a straight-line basis (net of estimated forfeitures) over the vesting period. Our Company estimates the fair value of stock options using the Black-Scholes valuation model. The cost is recorded in costs of revenues and operating expenses in the consolidated statements of operations on the date of grant based on the employees’ respective function. For shares and stock options granted to non-employees, we measure the fair value of the equity instruments granted at the earlier of the performance commitment date or when the performance is completed. The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, Compensation Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting Retirement Plan and Net Periodic Pension Cost Under our defined benefit pension plan, net periodic pension cost, which includes service cost, interest cost, expected return on plan assets, amortization of unrecognized net transition obligation and gains or losses on plan assets, is recognized based on an actuarial valuation report. We recognize the funded status of pension plans and non-pension post-retirement benefit plans (retirement-related benefit plans) as an asset or a liability in the consolidated balance sheets. Under our defined contribution pension plans, net periodic pension cost is recognized as incurred. The FASB issued ASU No. 2017-07, Compensation—Retirement Benefits (Topic 715) Income Taxes The asset and liability method is used in accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the differences between financial reporting and tax bases of assets and liabilities. Deferred tax assets and liabilities, classified as noncurrent on the consolidated balance sheets, are measured using the enacted tax rate and laws that will be in effect when the related temporary differences are expected to reverse. A valuation allowance is established when necessary to reduce deferred tax assets to the amount that will more-likely-than-not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences and loss carryforwards become deductible. In addition, we recognize the financial statement impact of a tax position when it is more-likely-than-not that the position will be sustained upon examination. If the tax position meets the more-likely-than-not recognition threshold, the tax effect is measured at the largest amount that is greater than a 50 percent likely of being realized upon settlement. Interest and penalties on an underpayment of income taxes are reflected as income tax expense in the consolidated financial statements. Earnings (Loss) Per Share Basic earnings (loss) per share is computed by dividing the net income (loss) attributable to common shareholders for the period by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share is computed by dividing the net earnings (loss) for the period by the weighted average number of common shares and potential common shares outstanding during the period. Potential common shares, composed of incremental common shares issuable upon the exercise of options in all periods, are included in the computation of diluted earnings (loss) per share to the extent such shares are dilutive. Diluted earnings (loss) per share also takes into consideration the effect of dilutive securities issued by subsidiaries. In a period in which a loss is incurred, only the weighted average number of common shares issued and outstanding is used to compute the diluted loss per share, as the inclusion of potential common shares would be anti-dilutive. Therefore, for the years ended December 31, 2015 and 2016, basic and diluted loss per share were the same. Noncontrolling Interest Noncontrolling interest in the equity of a subsidiary is accounted for and reported as equity. Changes in our Company’s ownership interest in a subsidiary that do not result in deconsolidation are accounted for as equity transactions. Any retained noncontrolling equity investment upon the deconsolidation of a subsidiary is initially measured at fair value. Segment Reporting Our segment reporting is mainly based on lines of business. We use the management approach in determining reportable operating segments. The management approach considers the internal organization and reporting used by our Company’s chief operating decision maker for making operating decisions, allocating resources and assessing performance as the source for determining our operating segments. Our Company’s chief operating decision maker (“CODM”) has been identified as the Chief Executive Officer. Segment profit and loss is determined on a basis that is consistent with how our Company reports operating loss in its consolidated statements of operations. Our Company does not report segment asset information to the CODM. Consequently, no asset information by segment is presented. There are no intersegment transactions. (d) Recent Accounting Pronouncements Not Yet Adopted The FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory an The FASB issued ASU No. 2014-09, Revenue from Contracts with Customers Revenue from Contracts with Customers The FASB issued ASU No. 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net) The FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical The FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing The FASB issued ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers Topic 606 is effective for our fiscal year beginning January 1, 2018. We will adopt the new standard retrospectively, with the cumulative effect recognized at the date of initial application. We do not expect the adoption of this new standard to have a material impact on our Company’s financial position, results or cash flows. We do not anticipate significant changes to our current business processes and systems to support the adoption of the new standard in the year beginning January 1, 2018. Additionally, we are currently in the process of evaluating the required financial statement disclosures to allow users of our consolidated financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with our customers. The FASB issued ASU No. 2017-05, Other Income–Gains and Losses from the Derecognition of Nonfinancial Assets The FASB issued new lease accounting guidance in ASU No. 2016-02, Leases (Topic 842) a lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and (b) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The FASB issued ASU No. 2017-09, Compensation—Stock Compensation |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | NOTE 2. EARNINGS (LOSS) PER SHARE The following table provides a reconciliation of the denominators of the basic and diluted per share computations: (in thousand shares) 2015 2016 2017 Weighted average number of outstanding shares Basic 11,052 11,052 11,052 Effect of dilutive securities Employee share-based compensation — — — Diluted 11,052 11,052 11,052 Certain outstanding options were excluded from the computation of diluted EPS since their effect would have been anti-dilutive. The antidilutive stock options excluded and their associated exercise prices per share were 617 thousand shares at the range of $3.85 to $83.00 as of December 31, 2015, 613 thousand shares at $3.85 to $83.00 as of December 31, 2016, and 308 thousand shares at $2.90 to $80.05 as of December 31, 2017. There were no antidilutive RSUs as of December 31, 2017, 2016, and 2015. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
ACQUISITIONS | NOTE 3. ACQUISITIONS Strawberry Cosmetics On June 26, 2015, we entered into a share purchase agreement to acquire a 70% equity interest in Strawberry Cosmetics Holding Limited (“Strawberry Cosmetics”), a global cosmetics e-commerce company with a total consideration of approximately $93.1 million. The proposed acquisition was then duly approved by the Extraordinary General Meeting of our Company held on August 5, 2015. However, in light of the drastic slowdown in global economy and turmoil in stock markets beginning in late August 2015 that resulted in a change in business development strategy on the part of GigaMedia, our board of directors concluded that the mutual termination of the acquisition was in the best interests of GigaMedia stockholders. Accordingly, in October 2015, our Company entered into a mutual termination agreement with the shareholders of Strawberry Cosmetics to terminate the share purchase agreement, whereby GigaMedia paid US$2.0 million consideration to the shareholders of Strawberry Cosmetics and the parties, in turn, released each other from any claims relating to the proposed acquisition. The payment was reported in operating expenses in our consolidated statements of operations. |
DIVESTITURES
DIVESTITURES | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
DIVESTITURES | NOTE 4. DIVESTITURES PerfectPairs In January 2016, we entered into an agreement to sell our 100% ownership interest in PerfectPairs Gaming Co., Ltd. (“PerfectPairs), a Taiwan-based subsidiary of our digital entertainment service business operations, to two Taiwanese individuals unrelated to our Group for total cash consideration of $760 thousand. Upon the disposal, we deconsolidated the results of PerfectPairs’ operations. The disposal gain was as follows: (In US$ thousand) Amount The fair value of consideration received, net of any transaction costs $ 760 The carrying amount of PerfectPairs Cash 482 Receivables and other current assets 40 Property, plant and equipment 71 Intangible and other noncurrent assets 13 Accounts payable and accrued expenses (528 ) Other payable and other current liabilities (144 ) The carrying amount of PerfectPairs at the date of deconsolidation (66 ) Exchange difference 1 Gain on disposal of PerfectPairs $ 827 East Gate As the term of the East Gate fund expired in August 2017, the fund had stopped entering into new investments and in September 2016, it distributed excess cash to its investors. We received $1,438 thousand from the distribution. In November 2016, we entered into an agreement to sell a 17.65% partnership interest in East Gate to a Korean investor unrelated to our Group. The disposal gain was as follows: (In US$ thousand) Amount The fair value of consideration received, net of any transaction costs $ 112 The fair value of consideration receivable, net of any transaction costs 1,058 1,170 The carrying amount of the investment of East Gate at the date of disposal 1,398 Exchange difference 250 Gain on disposal of investment in East Gate $ 22 The consideration receivable of $1.1 million as of December 31, 2016 was recorded as other receivable (Note 12) and has been fully collected in 2017. FingerRockz In September 2015, we entered into an agreement to sell all the ownership for a consideration of NT$1 we held in FingerRockz to its management. Upon the closing of the agreement, we deconsolidated the results of FingerRockz’ operations. The deconsolidation gain was as follows: (In US$ thousand) Amount The fair value of consideration received and receivable, net of any transaction costs $ — The carrying amount of FingerRockz at the date of deconsolidation (37 ) Gain on disposal of FingerRockz $ 37 |
INTANGIBLE ASSETS - NET
INTANGIBLE ASSETS - NET | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS - NET | NOTE 5. INTANGIBLE ASSETS - NET The following table summarizes our Company’s intangible assets, by major asset class: December 31, 2017 (In US$ thousands) Gross carrying amount Accumulated amortization Net With finite-life intangible assets Purchased software cost $ 11 $ 8 $ 3 For the years ended December 31, 2015, 2016 and 2017, total amortization expense of intangible assets were $236 thousand, $106 thousand and $7 thousand, respectively, which includes amortization of purchased software costs of $217 thousand, $89 thousand and $7 thousand. At the end of 2016, we recognized an impairment loss of $57 thousand on intangible assets as a result of consecutive operating losses in recent years that are expected to continue and therefore the carrying amounts of those intangible assets would not be recoverable based on cash flow projections from current games, which typically have shorter lives. |
PREPAID LICENSING AND ROYALTY F
PREPAID LICENSING AND ROYALTY FEES | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
PREPAID LICENSING AND ROYALTY FEES | NOTE 6. PREPAID LICENSING AND ROYALTY FEES The following table summarizes changes to our Company’s prepaid licensing and royalty fees: (in US$ thousands) 2015 2016 2017 Balance at beginning of year $ 4,383 $ 239 $ 1,020 Addition 1,801 2,581 486 Amortization and usage (1,743 ) (416 ) (1,040 ) Exchange difference (15 ) 2 (7 ) Impairment charges (Note 7) (4,187 ) (1,386 ) — Balance at end of year $ 239 $ 1,020 $ 459 We have entered licensing arrangements for our digital entertainment business and in prior years, prepaid licensing and royalty fees for one of the licensed games had been fully impaired and as a result the cost became nil. In 2017, the licensor of that gaming development company reached an agreement with us to terminate the license by compensating us in the amount of $1.7 million and accordingly, we have recognized a gain of $1.7 million as a reduction of operating expenses in the consolidated statements of operations in 2017. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 7. FAIR VALUE MEASUREMENTS The following table presents the carrying amounts and estimated fair values of our Company’s financial instruments at December 31, 2016 and 2017. (in US$ thousands) 2016 2017 Carrying amount Fair value Carrying amount Fair value Financial assets Cash and cash equivalents $ 65,711 $ 65,711 $ 63,670 $ 63,670 Marketable securities - current 3 3 — — Accounts receivable 871 871 751 751 Restricted cash 500 500 507 507 Refundable deposits 245 245 208 208 Financial liabilities Short-term borrowings 2,480 2,480 — — Accounts payable 266 266 314 314 Accrued compensation 210 210 549 549 Accrued expenses 3,828 3,828 2,158 2,158 The carrying amounts shown in the table are included in the consolidated balance sheets under the indicated captions. The fair values of the financial instruments shown in the above table as of December 31, 2016 and 2017 represent the amounts that would be received to sell those assets or that would be paid to transfer those liabilities in an arm’s length transaction between market participants at that date. Those fair value measurements maximize the use of observable inputs. In situations where there is little market activity for the asset or liability at the measurement date, the fair value measurement reflects our Company’s own judgments about the assumptions that market participants would use in pricing the asset or liability. Those judgments are developed by us based on the best information available in the circumstances, including expected cash flows and appropriately risk-adjusted discount rates, available observable and unobservable inputs. The following methods and assumptions were used to estimate the fair value of each class of financial instruments: • Cash and cash equivalents, accounts receivable, restricted cash, accounts payable, accrued compensation and expenses, and short-term borrowings: The carrying amounts, at face value or cost plus accrued interest, approximate fair value because of the short maturity of these instruments. • Marketable securities: Equity securities are measured using quoted market prices at the reporting date multiplied by the quantity held. Redeemable preferred shares are measured using valuation techniques. • Refundable deposits: Measurement of refundable deposits with no fixed maturities is based on carrying amounts. Assets and Liabilities that are Measured at Fair Value on a Recurring Basis Our Company has segregated all financial assets and liabilities that are measured at fair value on a recurring basis (at least annually) into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date in the table below. Assets and liabilities measured at fair value on a recurring basis are summarized as below: (in US$ thousands) Fair Value Measurement Using Level 1 Level 2 Level 3 At December 31, 2017 Assets Cash equivalents - time deposits $ — $ 6 $ — $ 6 Restricted cash - time deposits — 507 — 507 $ — $ 513 $ — $ 513 (in US$ thousands) Fair Value Measurement Using Level 1 Level 2 Level 3 At December 31, 2016 Assets Cash equivalents - time deposits $ — $ 6 $ — $ 6 Restricted cash - time deposits — 500 — 500 Marketable securities - current Equity securities 3 — — 3 $ 3 $ 506 $ — $ 509 Our Company’s accounting policy is to recognize transfers between levels of the fair value hierarchy on the date of the event or change in circumstances that caused the transfer. There were no transfers into or out of Level 1 for the years ended December 31, 2016 and 2017. Level 1 and 2 measurements: Cash equivalents – time deposits and restricted cash – time deposits are interest-earning deposits in banks, and the cash flows are estimated based on the terms of the contracts and discounted using the market interest rates applicable to the maturity of the contracts, which are adjusted to reflect credit risks on counterparties. As the inputs into the valuation techniques are readily observable, these deposits are classified in Level 2 of the fair value hierarchy. Certain marketable securities are valued using a market approach based on the quoted market prices of identical instruments when available, or other observable inputs such as trading prices of identical instruments in inactive markets. The fair values of the marketable equity securities that have publicly quoted trading prices are valued using those observable prices, unless adjustments are required to available observable inputs. In 2015, 2016 and 2017, we recognized unrealized gains of $4.8 million, $0 thousand and $0 thousand, respectively, on marketable securities valued using market observable inputs, which are included in other comprehensive income. Level 3 measurements: We did not hold assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during 2016 and 2017. Realized and unrealized gains (or losses) included in the consolidated financial statements for 2015 for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) are reported in the consolidated financial statements as follows: (in US$ thousands) Gain on sales of marketable debt securities Impairment loss on marketable securities and investments Total gains (losses) included in earnings for 2015 $ 5,845 $ — Change in unrealized gains (losses) relating to assets still held at the reporting date for 2015 $ — $ — Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis Assets and liabilities measured at fair value on a nonrecurring basis include measuring impairment when required for long-lived assets. For GigaMedia, long-lived assets measured at fair value on a nonrecurring basis include investments accounted for under the equity method and cost method, property, plant, and equipment, intangible assets, and prepaid licensing and royalty fees. Assets and liabilities measured at fair value on a nonrecurring basis that were determined to be impaired as of December 31, 2016 and 2017 are summarized as below: (in US$ thousands) Fair Value measurement Using Assets Level 1 Level 2 Level 3 At December 31, 2017 Total Impairment Losses (a) Investments - Cost-method $ — $ — $ — $ — $ 52 (d) Prepaid licensing and royalty fees — — — — — Total $ — $ — $ — $ — $ 52 (in US$ thousands) Fair Value measurement Using Assets Level 1 Level 2 Level 3 At December 31, 2016 Total Impairment Losses (b) Property, plant and equipment $ — $ — $ — $ — $ 471 (c) Intangible assets — — — — 57 (d) Prepaid licensing and royalty fees — — 820 820 1,386 Total $ — $ — $ 820 $ 820 $ 1,914 (a) Impairment losses on certain cost method investments which were determined to be impaired: (b) Impairment losses on certain property, plant, and equipment which were determined to be impaired: (c) Impairment losses on certain intangible assets which were determined to be impaired: (d) Impairment losses on certain prepaid licensing and royalty fees which were determined to be impaired: |
CASH, RESTRICTED CASH AND CASH
CASH, RESTRICTED CASH AND CASH EQUIVALENTS | 12 Months Ended |
Dec. 31, 2017 | |
Cash And Cash Equivalents [Abstract] | |
CASH, RESTRICTED CASH AND CASH EQUIVALENTS | NOTE 8. CASH, RESTRICTED CASH AND CASH EQUIVALENTS Cash and cash equivalents consist of the following: December 31 (in US$ thousands) 2016 2017 Cash and savings accounts $ 65,705 $ 63,664 Time deposits 6 6 Cash and cash equivalents reported on the consolidated balance sheets 65,711 63,670 Cash restricted as collateral and performance bond 500 507 Total cash, restricted cash and cash equivalents reported on the consolidated statements of cash flows $ 66,211 $ 64,177 As of December 31, 2016 and 2017, cash amounting to $500 thousand and $507 thousand, respectively, has been deposited in an escrow account in a bank as a performance bond for our players’ game points. These deposits are restricted and are included in restricted cash in the consolidated balance sheets. We maintain cash and cash equivalents, as well as restricted cash, in bank accounts with major financial institutions with high credit ratings located in the following jurisdictions: December 31 (in US$ thousands) 2016 2017 Taiwan $ 65,093 $ 62,350 Hong Kong 1,102 1,811 China 16 16 $ 66,211 $ 64,177 |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 12 Months Ended |
Dec. 31, 2017 | |
MARKETABLE SECURITIES | NOTE 9. MARKETABLE SECURITIES – CURRENT Marketable securities – current consist of the following: December 31 (in US$ thousands) 2016 2017 Equity securities, classified as available-for-sale $ 3 $ — As of December 31, 2016 and 2017, the balances of unrealized gains for marketable securities - current were $2 thousand and $0, respectively. During 2015, 2016 and 2017, realized gains from the disposal of marketable securities - current amounted to $14.1 million, $0 thousand, and $2 thousand, respectively. The costs for calculating gains on disposal were based on each security’s average cost. |
Noncurrent Assets | |
MARKETABLE SECURITIES | NOTE 12. MARKETABLE DEBT SECURITIES – NONCURRENT Our Company’s marketable securities - noncurrent were invested in convertible preferred shares and were classified as available-for-sale securities. As of December 31, 2016 and 2017, there was no marketable securities-noncurrent. We had considered and determined whether our investments in preferred shares were in-substance common shares which should be accounted for under the equity method. Given that our convertible preferred shares had substantive redemption rights and thus did not meet the criteria of in-substance common shares, we had accounted for them as debt securities. During 2015, realized gains (losses) from the disposal of marketable securities - non-current amounted to $5.8 million. Gains (losses) on disposal were calculated based on the security’s average cost. |
ACCOUNTS RECEIVABLE - NET
ACCOUNTS RECEIVABLE - NET | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE - NET | NOTE 10. ACCOUNTS RECEIVABLE – NET Accounts receivable consist of the following: December 31 (in US$ thousands) 2016 2017 Accounts receivable $ 903 $ 763 Less: Allowance for doubtful accounts (32 ) (12 ) $ 871 $ 751 The following is a summary of the changes in our Company’s allowance for doubtful accounts during the years ended December 31, 2015, 2016 and 2017: (in US$ thousands) 2015 2016 2017 Balance at beginning of year $ 56 $ 29 $ 32 Additions: Bad debt expense 3 35 127 Less: Write-offs (28 ) (33 ) (149 ) Translation adjustment (2 ) 1 2 Balance at end of year $ 29 $ 32 $ 12 |
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
OTHER CURRENT ASSETS | NOTE 11. OTHER CURRENT ASSETS Other current assets consist of the following: December 31 (in US$ thousands) 2016 2017 Loans receivable - current 65 64 Less: Allowance for loans receivable - current (28 ) (30 ) Other receivables (Note 4) 1,062 34 Other 151 125 $ 1,250 $ 193 The following is a reconciliation of changes in our Company’s allowance for loans receivable - current during the years ended December 31, 2015, 2016 and 2017: (in US$ thousands) 2015 2016 2017 Balance at beginning of year $ 27 $ 28 $ 28 Reversal for collection of bad debt 2 — — Translation adjustment (1 ) — 2 Balance at end of year $ 28 $ 28 $ 30 |
EQUITY INVESTMENTS
EQUITY INVESTMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Investments Schedule [Abstract] | |
EQUITY INVESTMENTS | NOTE 13. EQUITY INVESTMENTS Equity investments consist of the following: December 31 (in US$ thousands) 2016 2017 Investments accounted for under the equity method $ 72 $ — Our Company’s investments accounted for under the equity method primarily consist of the following: (a) from August 2010 to November 2016, a 17.65 percent equity interest investment in East Gate Media Contents & Technology Fund (“East Gate”), a Korean Fund Limited Partnership that invests in online game businesses and films (See Note 4 “Divestitures”, for additional information); and (b) from May 2014 to February 2017, a 22.86 percent equity interest investment in Double2 Network Technology Co., Ltd. (“Double2”), a Taiwanese company that mainly engaged in development of causal gaming software. In March 2017, our share of equity interest in Double 2 was diluted to 11.43 percent, and as the investment no longer qualified for the equity method, we discontinued accruing the share of the earnings or losses of the investee and began accounted for it under the cost method. In November 2016, we entered into an agreement to sell a 17.65 percent partnership interest in East Gate to a Korean investor unrelated to our Group. (See Note 4, “Divestitures” for additional information.) East Gate Our Company had a 17.65 percent interest in East Gate, a Korean fund partnership. Before the disposal of such interest, we accounted for our investment in this limited partnership under the equity method accounting since we had the ability to exercise significant influence over partnership operating and financial policies based on the terms of the partnership agreement. East Gate was considered an investment company that primarily invests in: (1) Equity securities of small, medium-sized companies or venture companies, mainly Korean game companies, and (2) funding for specific projects, mainly Korean films, of an entrepreneur or venture company in return for the rights to a future revenue stream from the income generated by the entrepreneur or venture company from the film and related products. Summarized U.S. GAAP financial information of East Gate as of November 30, 2016 (right before we disposed of it), and for the years ended December 31, 2015 and the eleven-month period ended November 30, 2016 is presented below (in US$ thousands): 2016 Investments and other related assets $ 7,911 Other assets 332 Total assets $ 8,243 Total liabilities $ 318 Total net assets of the fund $ 7,925 2015 2016 Investment and related income (loss) $ 5,419 $ (1,513 ) Impairment loss — (105 ) Other costs and expenses (8,219 ) (7,513 ) Net loss $ (2,800 ) $ (9,131 ) |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 14. PROPERTY, PLANT AND EQUIPMENT In January 2016, we entered into disposal agreements to sell certain office premises which were not used for our principal business to several counterparties unrelated to our Group, for total cash considerations approximating $1.9 million. The closing of the disposal occurred in March 2016. Upon the closing, we recognized disposal gains of approximately $798 thousand. At the end of 2016, we recognized an impairment loss of $471 thousand on property, plant and equipment as a result of consecutive operating losses in recent years that are expected to continue and therefore the carrying amounts of those long-lived assets would not be recoverable based on cash flow projections from current games, which are typically with shorter lives. For the year ended December 31, 2017, there were no significant changes in our property, plant and equipment. For the year ended December 31, 2016, a reconciliation of the beginning and ending amounts of our property, plant and equipment is as follows: (in US$ thousands) Cost Accumulated depreciation Net Balance at beginning of year $ 5,165 $ 3,774 $ 1,391 Purchase 496 — 496 Depreciation — 162 (162 ) Disposal of office premises (1,120 ) (44 ) (1,076 ) Disposal of other property, plant and equipment (1,092 ) (969 ) (123 ) Deconsolidation (Note 4) (104 ) (33 ) (71 ) Impairment (Note 7) (3,423 ) (2,952 ) (471 ) Exchange differences 85 62 23 Balance at end of year $ 7 $ — $ 7 |
SHORT-TERM BORROWINGS
SHORT-TERM BORROWINGS | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
SHORT-TERM BORROWINGS | NOTE 15. SHORT-TERM BORROWINGS As of December 31, 2016, short-term borrowings amounted to $2.5 million. These amounts were borrowed from certain financial institutions. The annual interest rates on these borrowings ranged from 1.70 percent to 2.13 percent for 2016. The maturity dates fell in January and May 2017. As of December 31, 2016, the weighted-average interest rate on total short-term borrowings was 1.86 percent. As of December 31, 2016 and 2017, the total amount of unused lines of credit available for borrowing under these agreements was approximately $17.0 million and $7.6 million, respectively. |
ACCRUED EXPENSES
ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2017 | |
Payables And Accruals [Abstract] | |
ACCRUED EXPENSES | NOTE 16. ACCRUED EXPENSES Accrued expenses consist of the following: December 31 (in US$ thousands) 2016 2017 Accrued advertising expenses $ 1,961 $ 371 Accrued professional fees 765 580 Accrued royalties 350 502 Accrued director compensation and liability insurance 272 256 Other 480 449 $ 3,828 $ 2,158 |
PENSION BENEFITS
PENSION BENEFITS | 12 Months Ended |
Dec. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
PENSION BENEFITS | NOTE 17. PENSION BENEFITS Our Company and our subsidiaries have defined benefit and defined contribution pension plans that cover substantially all of our employees. Defined Benefit Pension Plan We have a defined benefit pension plan in accordance with the Labor Standards Law of the Republic of China (R.O.C.) for our employees located in Taiwan, covering substantially all full-time employees for services provided prior to July 1, 2005, and employees who have elected to remain in the defined benefit pension plan subsequent to the enactment of the Labor Pension Act on July 1, 2005. Under the defined benefit pension plan, employees are entitled to a lump sum retirement benefit upon retirement equivalent to the aggregate of 2 months’ pensionable salary for each of the first 15 years of service and 1 month’s pensionable salary for each year of service thereafter subject to a maximum of 45 months’ pensionable salary. The pensionable salary is the monthly average salary or wage of the final six months prior to approved retirement. We use December 31 as the measurement date for our defined benefit pension plan. As of December 31, 2016 and 2017, the accumulated benefit obligation amounted to $185 thousand and $211 thousand, respectively, and the funded status of prepaid pension assets amounted to $62 thousand and $70 thousand, respectively. The fair value of plan assets amounted to $325 thousand and $365 thousand as of December 31, 2016 and 2017, respectively. The accumulated other comprehensive income (loss) amounted to ($58) thousand and $(69) thousand as of December 31, 2016 and 2017, respectively. The net periodic benefit cost (income) for 2015, 2016 and 2017 amounted to ($58) thousand, ($2) thousand and $0 thousand, respectively, for each year of 2015, 2016 and 2017.. The following table sets forth the plan’s benefit obligations, fair value of plan assets, and funded status at December 31, 2016 and 2017: December 31 (in US$ thousands) 2016 2017 Benefit Obligation $ 263 $ 295 Fair value of plan assets 325 365 $ (62 ) $ (70 ) Amounts recognized in the balance sheet consist of: Noncurrent liabilities (assets) $ (62 ) $ (70 ) Accumulated other comprehensive income — — Net amount recognized $ (62 ) $ (70 ) Amounts recognized in accumulated comprehensive income (loss) consist of: Unrecognized net gain (loss) $ (58 ) $ (69 ) For the years ended December 31, 2015, 2016 and 2017, the net period pension cost consisted of the following: December 31 (in US$ thousands) 2015 2016 2017 Service cost $ — $ — $ — Interest cost 5 4 4 Expected return on plan assets (6 ) (6 ) (5 ) Amortization of net loss — — 1 Curtailment gain (57 ) — — $ (58 ) $ (2 ) $ — Effective January 1, 2017, our Company applied the amendments in ASU No. 2017-07 retrospectively for the presentation of the service cost component and the other components of net periodic pension cost in the statement of operations, and accordingly, all components other than service cost, amounting to income of $58 thousand and income of $2 thousand, respectively for 2015 and 2016, were reclassified to non-operating income (expense) – other. Weighted average assumptions used to determine benefit obligations for 2016 and 2017 were as follows: December 31 2016 2017 Discount rate 1.375 % 1.625 % Rate of compensation increase 2.00 % 2.00 % Weighted average assumptions used to determine net periodic benefit cost for end of fiscal year were as follows: 2016 2017 Discount rate 1.875 % 1.375 % Rate of return on plan assets 1.875 % 1.375 % Rate of compensation increase 1.50 % 2.00 % Management determines the discount rate and rate of return on plan assets based on the yields of twenty year ROC central government bonds which is in line with the respective employees remaining service period and the historical rate of return on the above mentioned Fund mandated by the ROC Labor Standard Law. We have contributed an amount equal to 2 percent of the salaries and wages paid to all qualified employees located in Taiwan to a pension fund (the “Fund”). The Fund is administered by a pension fund monitoring committee (the “Committee”) and deposited in the Committee’s name in the Bank of Taiwan. Our Company makes pension payments from our account in the Fund unless the Fund is insufficient, in which case we make payments from internal funds as payments become due. We seek to maintain a normal, highly liquid working capital balance to ensure payments are made timely. We expect to make a contribution of $8 thousand to the Fund in 2018. We expect to make benefit payments of $1 thousand from 2018 to 2022 and $12 thousand from 2023 to 2027. Defined Contribution Pension Plans We have provided defined contribution plans for employees located in Taiwan and Hong Kong. Contributions to the plans are expensed as incurred. Taiwan Pursuant to the new “Labor Pension Act” enacted on July 1, 2005, our Company has a defined contribution pension plan for our employees located in Taiwan. For eligible employees who elect to participate in the defined contribution pension plan, we contribute no less than 6 percent of an employee’s monthly salary and wage and up to the maximum amount of NT$9 thousand (approximately $302), to each of the eligible employees’ individual pension accounts at the Bureau of Labor Insurance each month. Pension payments to employees are made either by monthly installments or in a lump sum from the accumulated contributions and earnings in employees’ individual accounts. Hong Kong According to the relevant Hong Kong regulations, we provide a contribution plan for the eligible employees in Hong Kong. We must contribute at least 5 percent of the employees’ total salaries. For this purpose, the monthly relevant contribution to their individual contribution accounts is subject to a cap of HK$1.5 thousand (approximately $192). After the termination of employment, the benefits still belong to the employees in any circumstances. The total amount of defined contribution pension expenses pursuant to our defined contribution plans for the years ended December 31, 2015, 2016, and 2017 were $318 thousand, $183 thousand, and $190 thousand, respectively. |
SHAREHOLDERS_ EQUITY
SHAREHOLDERS’ EQUITY | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
SHAREHOLDERS’ EQUITY | NOTE 18. SHAREHOLDERS’ EQUITY In accordance with Singapore law, the holders of ordinary shares that do not have par value, are entitled to receive dividends as declared from time to time and are entitled to one vote per share at the general meeting of our company. All shares rank equally with regard to our company’s residual assets. In addition, we are not required to have a number of authorized common shares to be issued. A 1-for-5 reverse stock split was approved by our shareholders at a special shareholders meeting held on December 16, 2015. The reverse stock split was effective as of December 16, 2015, which resulted in our common stock trading on a split-adjusted basis at market open on December 16, 2015. Upon completion of the reverse stock split, every five shares of common stock owned by a shareholder were combined into one share of common stock, with a proportionate adjustment made to the per-share value of common stock. In accordance with R.O.C. law, an appropriation for legal reserve amounting to 10 percent of a company’s net profit is required until the reserve equals the aggregate par value of such Taiwan company’s issued capital stock. As of December 31, 2016 and 2017, the legal reserves of Hoshin GigaMedia Center Inc. (“Hoshin GigaMedia”) were $1.5 million and $1.5 million, respectively. The reserve can only be used to offset a deficit or be distributed as a stock dividend of up to 50 percent of the reserve balance when the reserve balance has reached 50 percent of the aggregate paid-in capital of Hoshin GigaMedia. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | NOTE 19. ACCUMULATED OTHER COMPREHENSIVE LOSS The accumulated balances for each component of other comprehensive income (loss) are as follows: (in US$ thousands) Foreign currency items Unrealized gain on securities Pension and post retirement benefit plans Accumulated other comprehensive loss Balance at January 1, 2015 $ (22,876 ) $ 11,389 $ — $ (11,487 ) Net current period change (118 ) 8,553 — 8,435 Reclassification adjustments for gains reclassified into income 656 (19,939 ) — (19,283 ) Balance at December 31, 2015 (22,338 ) 3 — (22,335 ) Net current period change 5 (1 ) (58 ) (54 ) Reclassification adjustments for gains reclassified into income (222 ) — — (222 ) Balance at December 31, 2016 $ (22,555 ) $ 2 $ (58 ) $ (22,611 ) Net current period change 641 — (11 ) 630 Reclassification adjustments for gains reclassified into income — (2 ) — (2 ) Balance at December 31, 2017 $ (21,914 ) $ — $ (69 ) $ (21,983 ) There were no significant tax effects allocated to each component of other comprehensive income for the years ended December 31, 2015, 2016 and 2017. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
SHARE-BASED COMPENSATION | NOTE 20. SHARE-BASED COMPENSATION During 2015, 2016 and 2017, all the stock-based compensation expenses were recognized in the general and administrative expenses in our consolidated statements of operations. The stock-based compensation expense recognized in the general and administrative expenses in our consolidated statements of operations were $65 thousand, $9 thousand and ($7) thousand, respectively. There were no significant capitalized stock-based compensation costs at December 31, 2016 and 2017. There was no recognized stock-based compensation tax benefit for the years ended December 31, 2015, 2016 and 2017, as our Company recognized a full valuation allowance on net deferred tax assets as of December 31, 2016 and 2017. (a) Overview of Stock-Based Compensation Plans 2004 Employee Share Option Plan At the June 2004 annual general meeting of shareholders, the shareholders of our Company approved the GigaMedia Limited 2004 Employee Share Option Plan (the “2004 Plan”) under which up to 1.4 million common shares of our Company have been reserved for issuance. All employees, officers, directors, supervisors, advisors, and consultants of our Company are eligible to participate in the 2004 Plan. The 2004 Plan is administered by a committee designated by the board of directors. The committee as plan administrator has complete discretion to determine the exercise price for the option grants, the eligible individuals who are to receive option grants, the time or times when options grants are to be made, the number of shares subject to grant and the vesting schedule. The maximum contractual term for the options under the 2004 Plan is 10 years. 2006 Equity Incentive Plan At the June 2006 annual general meeting of shareholders, the shareholders of our Company approved the GigaMedia Limited 2006 Equity Incentive Plan (the “2006 Plan”) under which up to 200 thousand common shares of our Company have been reserved for issuance. The 2006 Plan is administered by a committee designated by the board of directors. The committee as plan administrator has complete discretion to determine the grant of awards under the 2006 Plan. The maximum contractual term for the options under the 2006 Plan is 10 years. 2007 Equity Incentive Plan At the June 2007 annual general meeting of shareholders, the shareholders of our Company approved the GigaMedia Limited 2007 Equity Incentive Plan (the “2007 Plan”) under which up to 400 thousand common shares of our Company have been reserved for issuance. The 2007 Plan is administered by a committee designated by the board of directors. The committee as plan administrator has complete discretion to determine the grant of awards under the 2007 Plan. The maximum contractual term for the options under the 2007 Plan is 10 years. 2008 Equity Incentive Plan At the June 2008 annual general meeting of shareholders, the shareholders of our Company approved the GigaMedia Limited 2008 Equity Incentive Plan (the “2008 Plan”) under which up to 200 thousand common shares of our Company have been reserved for issuance. The 2008 Plan is administered by a committee designated by the board of directors. The committee as plan administrator has complete discretion to determine the grant of awards under the 2008 Plan. The maximum contractual term for the options under the 2008 Plan is 10 years. 2008 Employee Share Purchase Plan At the June 2008 annual general meeting of shareholders, the shareholders of our Company approved the GigaMedia Limited 2008 Employee Share Purchase Plan (the “2008 ESPP”) under which up to 40 thousand common shares of our Company were reserved for issuance. Any person who is regularly employed by our Company or our designated subsidiaries shall be eligible to participate in the 2008 ESPP. Pursuant to the 2008 ESPP, our Company would offer the shares to qualified employees on favorable terms. Employees are also subject to certain restrictions on the amount that may be invested to purchase the shares and to other terms and conditions of the 2008 ESPP. The 2008 ESPP is administered by a committee designated by the board of directors. As of December 31, 2017, no shares have been subscribed by qualified employees under the 2008 ESPP. 2009 Equity Incentive Plan At the June 2009 annual general meeting of shareholders, the shareholders of our Company approved the GigaMedia Limited 2009 Equity Incentive Plan (the “2009 Plan”) under which up to 300 thousand common shares of our Company have been reserved for issuance. The 2009 Plan is administered by a committee designated by the board of directors. The committee as plan administrator has complete discretion to determine the grant of awards under the 2009 Plan. The maximum contractual term for the options under the 2009 Plan is 10 years. 2009 Employee Share Purchase Plan At the June 2009 annual general meeting of shareholders, the shareholders of our Company approved the GigaMedia Limited 2009 Employee Share Purchase Plan (the “2009 ESPP”) under which up to 40 thousand common shares of our Company have been reserved for issuance. To be eligible, employees must be regularly employed by us or our designated subsidiaries. Employees are also subject to certain restrictions on the amount that may be invested to purchase the shares and to other terms and conditions of the 2009 ESPP. The 2009 ESPP is administered by a committee designated by the board of directors. As of December 31, 2017, no shares were issued to employees under the 2009 ESPP. 2010 Equity Incentive Plan At the June 2010 annual general meeting of shareholders, the shareholders of our Company approved the GigaMedia Limited 2010 Equity Incentive Plan (the “2010 Plan”) under which up to 200 thousand common shares of our Company have been reserved for issuance. The 2010 Plan is administered by a committee designated by the board of directors. The committee as plan administrator has complete discretion to determine the grant of awards under the 2010 Plan. The maximum contractual term for the options under the 2010 Plan is 10 years. 2010 Employee Share Purchase Plan At the June 2010 annual general meeting of shareholders, the shareholders of our Company approved the GigaMedia Limited 2010 Employee Share Purchase Plan (the “2010 ESPP”) under which up to 40 thousand common shares of our Company have been reserved for issuance. To be eligible, employees must be regularly employed by us or our designated subsidiaries. Employees are also subject to certain restrictions on the amount that may be invested to purchase the shares and to other terms and conditions of the 2010 ESPP. The 2010 ESPP is administered by a committee designated by the board of directors. As of December 31, 2017, no shares were issued to employees under the 2010 ESPP. Summarized below are the general terms of our stock-based compensation plans, for which awards have been granted as of December 31, 2017. Stock-Based compensation plan Granted awards Vesting schedule Options’ exercise price RSUs’ grant date fair value 2004 plan 1,575,037 (1) immediately upon granting to four years $3.95~$12.75 — 2006 Plan 256,716 (2) immediately upon granting to four years $3.85~$83 $14.55~$80.05 2007 Plan 675,057 (3) immediately upon granting to four years $2.90~$90.85 $12.35~$76.75 2008 Plan 200,000 immediately upon granting to six years $12.35~$21.2 — 2009 Plan 500,000 (4) immediately upon granting to four years $4.775~$12.35 — 2010 Plan 440,000 (5) three years $4.0505~$5.7 — (1) The granted awards, net of forfeited or canceled options, were within reserved shares of 1,400 thousand common shares. (2) The granted awards, net of forfeited or canceled options or shares, were within reserved shares of 200 thousand common shares. (3) The granted awards, net of forfeited or canceled options or shares, were within reserved shares of 400 thousand common shares. (4) The granted awards, net of forfeited or canceled options, were within reserved shares of 300 thousand common shares. (5) The granted awards, net of forfeited or canceled options, were within reserved shares of 200 thousand common shares. Options and Restricted Stock Units (“RSUs”) generally vest over the schedule described above. Certain RSUs provide for accelerated vesting if there is a change in control. All options and RSUs are expected to be settled by issuing new shares. (b) Options In 2015, 2016 and 2017, no options were exercised for each year. Our Company uses the Black-Scholes option-pricing model to estimate the fair value of stock options granted to employees on the grant date. No options were granted to employees during 2016. The following table summarizes the assumptions used in the model for options granted during 2015 and 2017: 2015 2017 Option term (years) 5.75 6.01 Volatility 49.239% 48.997% Weighted-average volatility 49.000% 48.997% Risk-free interest rate 1.506% 2.031% Dividend yield 0% 0% Weighted-average fair value of option granted $ 1.80 $ 1.41 Option term. The expected term of the options granted represents the period of time that they are expected to be outstanding. Our Company estimates the expected term of options granted based on historical experience with grants and option exercises. Expected volatility rate. An analysis of historical volatility was used to develop the estimate of expected volatility. Risk-free interest rate. The risk-free interest rate is based on yields of U.S. Treasury bonds for the expected term of the options. Expected dividend yield. The dividend yield is based on our Company’s current dividend yield. Option transactions during the last three years are summarized as follows: 2015 2016 2017 Weighted Avg. Exercise Price No. of Shares (in thousands) Weighted Avg. Exercise Price No. of Shares (in thousands) Weighted Avg. Exercise Price No. of Shares (in thousands) Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) Balance at January 1 $ 20.30 626 $ 20.51 617 $ 20.63 613 Options granted 3.85 12 — — 3 4 Options exercised — — — — — — Options Forfeited / canceled / expired 5.31 (21 ) 3.85 (4 ) 26.24 (309 ) Balance at December 31 $ 20.51 617 $ 20.63 613 $ 14.78 308 2.53 $ 1 Exercisable at December 31 $ 21.28 586 $ 20.57 606 $ 34.29 298 2.34 $ — Vested and expected to vest at December 31 $ 20.51 617 $ 20.63 613 $ 14.78 308 2.53 $ 1 The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between GigaMedia’s closing stock price on the last trading day of 2017 and the exercise price of an option, multiplied by the number of in-the-money options) that would have been received by the option holders had they exercised their options on December 31, 2017. This amount changes based on the fair market value of GigaMedia’s stock. As of December 31, 2017, there was approximately $4 thousand of unrecognized compensation cost related to nonvested options. That cost is expected to be recognized over a period of 0.94 years. The following table sets forth information about stock options outstanding at December 31, 2017: Options outstanding Option currently exercisable Exercise price No. of Shares (in thousands) Weighted average remaining contractual life Exercise price No. of Shares (in thousands) Under $5 16 6.97 years Under $5 8 $5~$50 284 2.35 years $5~$50 282 $50~$100 8 0.08 years $50~$100 8 308 298 (c) RSUs The fair value of RSUs is determined and fixed on the grant date based on our stock price. No RSUs were granted during the years ended December 31, 2015, 2016 and 2017. As of December 31 2016 and 2017, there was no unrecognized compensation cost related to nonvested RSUs. Our Company received no cash from employees as a result of employee stock award vesting and the forfeiture of RSUs during 2015, 2016 and 2017. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 21. INCOME TAXES Income (loss) before income taxes by geographic location is as follows: (in US$ thousands ) 2015 2016 2017 Taiwan operations $ (13,177 ) $ (1,119 ) $ 893 Non-Taiwan operations 10,475 (6,096 ) (1,478 ) $ (2,702 ) $ (7,215 ) $ (585 ) The components of income tax benefit (expense) by taxing jurisdiction are as follows: ( in US$ thousands ) 2015 2016 2017 Taiwan: Current $ 198 $ 1,108 $ — Deferred — — — $ 198 $ 1,108 $ — Non-Taiwan: Current $ — $ — $ (1 ) Deferred 216 41 1,672 $ 216 $ 41 $ 1,671 Total current income tax benefit (expense) $ 198 $ 1,108 $ (1 ) Total deferred income tax benefit (expense) $ 216 $ 41 $ 1,672 Total income tax benefit (expense) $ 414 $ 1,149 $ 1,671 Our ultimate parent company is based in Singapore. A reconciliation of our effective tax rate related to the statutory tax rate in Taiwan, where our major operations are based, is as follows: 2015 2016 2017 Taiwan statutory rate, including taxes on income and retained earnings 23.85 % 23.85 % 23.85 % Foreign tax differential 183.28 % (12.37 )% 1.10 % Reversal of deferred withholding tax liabilities — — 285.84 % Tax-exempt income 2.71 % 3.28 % 0.00 % Non-deductible items - bad debts (57.91 )% (3.08 )% — Other non-deductible expenses (17.47 )% (1.65 )% (44.79 )% Changes in unrecognized tax benefits 6.84 % 1.10 % — Adjustment for prior year payable 0.00 % 0.04 % 0.00 % Change in deferred tax assets and valuation allowance (130.14 )% 6.87 % 13.43 % Other 4.17 % (2.12 )% 6.33 % Effective rate 15.33 % 15.92 % 285.76 % The significant components of our deferred tax assets consist of the following: (in US$ thousands) December 31 2016 2017 Net operating loss carryforwards $ 9,730 $ 9,178 Prepaid licensing and royalty fees 952 5 Investments 501 135 Intangible assets and goodwill 226 183 Share-based compensation 276 299 Other 167 128 11,852 9,928 Less: valuation allowance (11,852 ) (9,928 ) Deferred tax assets - net $ — $ — The significant components of our deferred tax liabilities consist of the following: (in US$ thousands) December 31 2016 2017 Investment in subsidiaries, principally due to undistributed income $ 1,671 $ — In October 2017, a subsidiary of ours in the U.S. resolved to dissolve and liquidate and completed the process and filed a final tax return in February 2018. The gain resulted from such liquidation was treated as capital gain, which is exempt from U.S. withholding tax. As such, there was a reversal of the deferred income tax liabilities of $1,671 thousand as such deferred income tax liabilities were originally accrued for potential withholding obligation upon possible distribution. A reconciliation of the beginning and ending amounts of our valuation allowance on deferred tax assets for the years ended December 31, 2015, 2016 and 2017 are as follows: (in US$ thousands) 2015 2016 2017 Balance at beginning of year $ 7,147 $ 11,025 $ 11,852 Subsequent reversal and utilization of valuation allowance — (753 ) (3,352 ) Additions to valuation allowance 4,185 1,739 745 Divestitures — (312 ) — Exchange differences (307 ) 153 683 Balance at end of year $ 11,025 $ 11,852 $ 9,928 Under ROC Income Tax Act, the tax loss carryforward in the preceding ten years would be deducted from income tax for Taiwan operations. The statutory losses from Taiwan operations would be deducted from undistributed earnings when calculating the tax on the undistributed earnings and were not subject to expiration. As of December 31, 2017, we had net operating loss carryforwards available to offset future taxable income, shown below by major jurisdictions: Jurisdiction Amount Expiring year Hong Kong $ 15,444 indefinite Taiwan 30,952 2020~2027 $ 46,396 As of December 31, 2017, we had accumulated statutory losses from Taiwan operations available to offset future undistributed earnings: Jurisdiction Amount Expiring year Taiwan $ 19,920 indefinite In January 2018, it was announced that the ROC Income Tax Act was amended and, starting from 2018, the corporate income tax rate will be adjusted from 17% to 20%. In addition, the tax rate applicable to the undistributed portion of earnings to be made in 2018 and thereafter will be reduced from 10% to 5%. Unrecognized Tax Benefits A reconciliation of the beginning and ending amount of unrecognized tax benefits (excluding the effects of accrued interest) for the years 2015, 2016 and 2017 are as follows: (in US$ thousands) 2015 2016 2017 Balance at beginning of year $ 8,287 $ 1,203 $ 1,024 Increase related to prior year tax positions — 1,025 — Decrease related to prior year tax positions (185 ) — — Settlement (6,830 ) — — Expiration of statute of limitations — (1,225 ) — Exchange differences (69 ) 21 86 Balance at end of year $ 1,203 $ 1,024 $ 1,110 As of December 31, 2015, 2016 and 2017, there were $1.2 million, $0 and $0 of unrecognized tax benefits that if recognized would affect the effective tax rate. As of December 31, 2015, 2016 and 2017, $0 million, $1.0 million and $1.1 million of the total unrecognized tax benefit were presented as a reduction of a deferred tax asset that, if recognized, would be offset by a valuation allowance. There were no interest and penalties related to income tax liabilities recognized for the years ended December 31, 2015, 2016 and 2017. Our major tax paying components are all located in Taiwan. As of December 31, 2017, the income tax filings in Taiwan have been examined for the years through 2014, but we have filed appeals for the 2014 tax filings. In 2015, our unrecognized tax benefits were related to amortization of goodwill and intangible assets resulting from the acquisition of FunTown in 2006. The income tax authority has made decisions on the amortization for our tax filings through 2014. We had filed appeals against the unfavorable parts of the decision regarding these amortization adjustments, but all were rejected by the tax authority. As court decisions in precedent cases were mostly unfavorable, we decided not to bring the case to the court and considered the tax position settled. In 2016 and 2017, our unrecognized tax benefits were related to intercompany charges in 2014 and 2015. The income tax authority has made decisions on the intercompany charges for our tax filings through 2014. We had filed appeals against the unfavorable parts of the decision regarding these intercompany charge adjustments, pending the tax authority’s re-examination. The amount of unrecognized tax benefits may increase or decrease in the future for various reasons such as current year tax positions, expiration of statutes of limitations, litigation, legislative activity, or other changes in facts regarding realizability. Taiwanese entities are customarily examined by the tax authorities and it is reasonably possible that a future examination may result in positive or negative adjustment to our unrecognized tax benefit within the next 12 months. As for the intercompany charges tax matters, we have taken the reasonably potential changes in these uncertain tax positions into consideration in our tax provision. |
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
RELATED-PARTY TRANSACTIONS | NOTE 22. RELATED-PARTY TRANSACTIONS During 2015, we have outsourced certain development of software to Double2 Network Technology Co., Ltd., an equity-method investee. The costs of revenues amounted to $108 thousand for the year ended December 31, 2015. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 23. COMMITMENTS AND CONTINGENCIES Commitments (a) Operating Leases We rent certain properties which are used as office premises under lease agreements that expire at various dates through 2021. The following table sets forth our future aggregate minimum lease payments required under these operating leases, as of December 31, 2017: (in US$ thousands) Amount 2018 $ 499 2019 456 2020 438 2021 73 $ 1,466 Rental expense for operating leases amounted to $909 thousand, $821 thousand and $577 thousand for the years ended December 31, 2015, 2016 and 2017, respectively. Upon adoption of ASU 2016-02 as of January 1, 2019 using a modified retrospective transition approach, we expect that most of our operating lease commitments will be subject to the new standard and recognized as lease liabilities and right-of-use assets, which will increase the total assets and total liabilities we report. (b) License Agreements We have contractual obligations under various license agreements to pay the licensors license fees and minimum guarantees against future royalties. The following table summarizes the committed license fees and minimum guarantees against future royalties set forth in our significant license agreements as of December 31, 2017. (in US$ thousands) License fees Minimum guarantees against future royalties Total Minimum required payments: In 2018 $ 60 $ 400 $ 460 After 2018 — — — $ 60 $ 400 $ 460 The minimum guarantees against future royalties and license fees are generally not required to be paid until the licensed games are commercially released or until certain milestones are achieved, as stipulated in the individual license agreements. Contingencies We are subject to legal proceedings and claims that arise in the normal course of business. On January 15, 2018, Ennoconn Corporation (“Ennoconn”) filed a complaint against one of our subsidiaries, GigaMedia Cloud Services Co., Ltd. (“GigaMedia Cloud”) in the Taiwan Taipei District Court. The complaint alleged that GigaMedia Cloud is obligated to pay Ennoconn the amount totally NTD 79,477,648 (around $2,697,471) to compensate their loss pursuant to certain documents in connection with purchasing taximeters signed in 2015. GigaMedia Cloud filed an answer to the complaint denying all their allegations in the lack of factual and legal basis on March 1, 2018. The Company believes these claims to be without merit and will defend them vigorously. Due to the early stage in the ligation process, we are unable to assess the likelihood of the claim and the amount of potential damages. However, we believe the ultimate result with respect to this claim will not have a material adverse effect on our financial condition, results of operations or cash flows. |
SEGMENT, PRODUCT, GEOGRAPHIC AN
SEGMENT, PRODUCT, GEOGRAPHIC AND OTHER INFORMATION | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
SEGMENT, PRODUCT, GEOGRAPHIC AND OTHER INFORMATION | NOTE 24. SEGMENT, PRODUCT, GEOGRAPHIC AND OTHER INFORMATION In 2015, we had two operating segments: a digital entertainment business segment, and a cloud service business segment. The Asian digital entertainment business segment mainly derives its revenues from recognizing the usage of game playing time or in-game items by the end-users. The cloud service business segment mainly derived its revenues from providing cloud products and services to medium-to-larger enterprises as well as public sectors. After reviewing the business plan for 2016, we decided to redirect our cloud service business resources for internal use, in particular, by moving the servers used in our digital entertainment business to the cloud, including the related maintenance, and to wind down our cloud service activities. Therefore, the financial result of cloud service was nil and starting from 2016, we only have one segment. Certain corporate activities are not allocated to the segment and therefore are reflected as adjustments in the reconciliation. Financial information for each operating segment was as follows for the years ended December 31, 2015, 2016, and 2017: (in US$ thousands) Digital entertainment Cloud service business Total 2015: Net revenue from external customers $ 8,545 $ 1,706 $ 10,251 Loss from operations $ (12,735 ) $ (1,240 ) $ (13,975 ) Share-based compensation $ 6 $ (23 ) $ (17 ) Impairment loss on property, plant and equipment $ — $ 60 $ 60 Impairment loss on intangible assets $ — $ 5 $ 5 Impairment loss on prepaid licensing and royalty fees $ 4,187 $ — $ 4,187 Interest income $ 12 $ — $ 12 Interest expense $ 128 $ 1 $ 129 Gain on disposal of marketable securities - net $ 19,939 $ — $ 19,939 Foreign exchange gain (loss) $ (145 ) $ — $ (145 ) Net gain (loss) on equity investments $ (600 ) $ — $ (600 ) Impairment loss on marketable securities and investments $ 1,290 $ — $ 1,290 Depreciation $ 233 $ 40 $ 273 Amortization, including intangible assets $ 212 $ 32 $ 244 Income tax expense (benefits) $ (14 ) $ — $ (14 ) (in US$ thousands) Digital entertainment 2016: Net revenue from external customers $ 8,971 Loss from operations $ (3,924 ) Share-based compensation $ 3 Impairment loss on property, plant and equipment $ 288 Impairment loss on intangible assets $ 53 Impairment loss on prepaid licensing and royalty fees $ 1,386 Interest income $ 2 Interest expense $ — Gain on disposal of marketable securities - net $ — Foreign exchange gain (loss) $ (174 ) Net gain (loss) on equity investments $ (1,731 ) Impairment loss on marketable securities and investments $ — Depreciation $ 142 Amortization, including intangible assets $ 93 Income tax expense (benefits) $ — (in US$ thousands) Digital entertainment 2017: Net revenue from external customers $ 11,596 Income from operations $ 1,747 Share-based compensation $ 1 Impairment loss on property, plant and equipment $ — Impairment loss on intangible assets $ — Impairment loss on prepaid licensing and royalty fees $ — Interest income $ 1 Interest expense $ 1 Gain on disposal of marketable securities - net $ 2 Foreign exchange gain (loss) $ (148 ) Net gain (loss) on equity investments $ (24 ) Impairment loss on marketable securities and investments $ 52 Depreciation $ 43 Amortization, including intangible assets $ 12 Income tax expense (benefits) $ — The reconciliations of segment information to GigaMedia’s consolidated totals are as follows: (in US$ thousands) 2015 2016 2017 Loss from operations: Total segments $ (13,975 ) $ (3,924 ) $ 1,747 Adjustment* (6,078 ) (3,208 ) (2,237 ) Total GigaMedia consolidated $ (20,053 ) $ (7,132 ) $ (490 ) Share-based compensation Total segments $ (17 ) $ 3 $ 1 Adjustment ** 82 6 (8 ) Total GigaMedia consolidated $ 65 $ 9 $ (7 ) Impairment loss on property, plant and equipment: Total segments $ 60 $ 288 $ — Adjustment ** — 183 — Total GigaMedia consolidated $ 60 $ 471 $ — Impairment loss on intangible assets: Total segments $ 5 $ 53 $ — Adjustment ** — 4 — Total GigaMedia consolidated $ 5 $ 57 $ — Impairment loss on prepaid licensing and royalty fees: Total segments $ 4,187 $ 1,386 $ — Adjustment ** — — — Total GigaMedia consolidated $ 4,187 $ 1,386 $ — Interest income: Total segments $ 12 $ 2 $ 1 Adjustment ** 321 300 601 Total GigaMedia consolidated $ 333 $ 302 $ 602 Interest expense: Total segments $ 129 $ — $ 1 Adjustment ** 53 81 33 Total GigaMedia consolidated $ 182 $ 81 $ 34 Gain on disposal of marketable securities - net: Total segments $ 19,939 $ — $ 2 Adjustments ** — — — Total GigaMedia consolidated $ 19,939 $ — $ 2 Foreign exchange gain (loss): Total segments $ (145 ) $ (174 ) $ (148 ) Adjustments ** (252 ) (127 ) (403 ) Total GigaMedia consolidated $ (397 ) $ (301 ) $ (551 ) (in US$ thousands) 2015 2016 2017 Net gain (loss) on equity investments: Total segments $ (600 ) $ (1,731 ) $ (24 ) Adjustment ** — — — Total GigaMedia consolidated $ (600 ) $ (1,731 ) $ (24 ) Impairment loss on marketable securities and investments: Total segments $ 1,290 $ — $ 52 Adjustment ** — — — Total GigaMedia consolidated $ 1,290 $ — $ 52 Depreciation: Total segments $ 273 $ 142 $ 43 Adjustments ** 21 20 — Total GigaMedia consolidated $ 294 $ 162 $ 43 Amortization: Total segments $ 244 $ 93 $ 12 Adjustments ** 1 18 — Total GigaMedia consolidated $ 245 $ 111 $ 12 Income tax expense (benefit): Total segments $ (14 ) $ — $ — Adjustments ** (400 ) (1,149 ) (1,671 ) Total GigaMedia consolidated $ (414 ) $ (1,149 ) $ (1,671 ) * Adjustment items include corporate and certain back-office costs and expenses not attributable to any specific segment. For the years ended December 31, 2015, 2016 and 2017, the compensation related items were approximately $1.3 million $1.6 million and $1.3 million, respectively; professional fees were approximately $587 thousand $612 thousand and $365 thousand, respectively; the termination charge of proposed acquisition of $2.0 million in 2015 were also included in the adjustments. * * Adjustment items include corporate and certain back-office costs and expenses not attributable to any specific segment. Major Product Lines Revenues from the Company’s major product lines are summarized as follow: (in US$ thousands) 2015 2016 2017 MahJong and casino casual games $ 3,113 $ 2,459 $ 2,364 PC massively multiplayer online games 1,670 1,560 1,400 Mobile role playing games 2,807 4,674 7,776 Other games and game related revenues 955 278 56 Cloud computing services 1,706 — — $ 10,251 $ 8,971 $ 11,596 Major Customers No single customer represented 10 percent or more of GigaMedia’s consolidated total net revenues in any period presented. Geographic Information Revenues by geographic area are attributed by country of the operating entity location. Revenue from by geographic region is as follows: (in US$ thousands) Geographic region / country 2015 2016 2017 Taiwan $ 6,889 $ 2,664 $ 2,349 Hong Kong 3,362 6,307 9,247 $ 10,251 $ 8,971 $ 11,596 Net tangible long-lived assets by geographic region are as follows: (in US$ thousands) December 31, Geographic region / country 2015 2016 2017 Taiwan $ 1,320 $ 7 $ 62 Hong Kong 71 — 96 $ 1,391 $ 7 $ 158 |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | NOTE 25. SUBSEQUENT EVENT There have been no events that have occurred subsequent to December 31, 2017 and through the date that the consolidated financial statements are issued that would require adjustment to or disclosure except as already disclosed in the consolidated financial statements. |
Principal Activities, Basis o32
Principal Activities, Basis of Presentation, and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions Assets and liabilities denominated in non-U.S. dollars are translated to U.S. dollars at year-end exchange rates. Income and expense items are translated at average rates of exchange prevailing during the year. Cumulative translation adjustments resulting from this process are charged or credited to other comprehensive income. Gains and losses on foreign currency transactions are included in other income and expenses. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Management bases its estimates on historical experience and also on assumptions that it believes are reasonable. Management assesses these estimates on a regular basis; however, actual results could differ from those estimates. Significant items subject to such estimates and assumptions include but not limit to the deferral of revenues; the useful lives of property, plant and equipment; allowances for doubtful accounts; the valuation of deferred tax assets, long-lived assets, investments and share-based compensation; and accrued pension liabilities (prepaid pension assets), income tax uncertainties and other contingencies. We believe the critical accounting policies listed below affect significant judgments and estimates used in the preparation of the financial statements. |
Revenue Recognition | Revenue Recognition General Revenues are recognized when persuasive evidence of an arrangement exists, delivery occurs and the customer takes ownership and assumes risks or services are rendered, the sales price is fixed or determinable and collectability is reasonably assured. Sales taxes assessed by governmental authorities on our revenue transactions are presented on a net basis and therefore are excluded from revenues in our consolidated financial statements. In addition to the aforementioned general policies, the following are the specific revenue recognition policies for each major category of revenue. Digital Entertainment Product and Service Revenues Digital entertainment product and service revenues are earned through the sale of virtual points, prepaid cards and game packs. Virtual points are sold to distributors or end-users who can make the payments through credit cards, Internet ATMs or telecommunication service operators. Prepaid cards and game packs are sold through distributors and convenience stores. Proceeds from sales of prepaid cards and game packs, net of sales discounts, and virtual points are deferred when received and revenue is recognized upon the actual usage of the playing time or in-game virtual items by the end-users; over the estimated useful life of virtual items; or when the sold points expire and can no longer be used to access the digital services in accordance with our published points expiration policy. Sales of virtual points, prepaid cards and game packs are reported on a gross basis. In the sales of virtual points, we act as principal and we have latitude in establishing price. Fixed percentage fees retained by service providers for payment processing related to our digital entertainment services are recognized as cost of digital entertainment revenues. Cloud Product and Service Revenues Cloud service revenues that we provided prior to 2016 were related to cloud computing services provided by our Company. Revenues are recorded net of discounts. Cloud service revenues are recognized upon acceptance for project services provided, or for the period of time for which we provide services to the customer. Customers of subscriptions have a choice of paying either monthly or in advance for a certain period of time, for which they receive corresponding discounts. Our Company records any such advanced payment receipts as other current liabilities and amortizes such revenues over the subscription period. Revenues from the sales of equipment and other related products are recognized upon acceptance. |
Deferred Revenues | Deferred Revenues Deferred revenues consist mainly of the advanced income related to our digital entertainment business. Deferred revenue represents proceeds received relating to the sale of virtual points and in-game items which are activated or charged to the respective user account by users, but which have not been consumed by the users or expired. Deferred revenue is credited to profit or loss when the virtual points and in-game items are consumed or expired. Pursuant to relevant new requirements in Taiwan, as of December 31, 2016 and 2017, cash totaling $500 thousand and $507 thousand, respectively, has been deposited in an escrow account in a bank as a performance bond for the users’ virtual points, and is included within restricted cash in the consolidated balance sheets. |
Prepaid Licensing and Royalty Fees | Prepaid Licensing and Royalty Fees Our Company, through our subsidiaries, routinely enters into agreements with licensors to acquire licenses for using, marketing, distributing, selling and publishing digital entertainment offerings. Prepaid licensing fees paid to licensors are amortized on a straight-line basis over the shorter of the estimated useful economic life of the relevant product and service or license period, which is usually within one to two years. Prepaid royalty fees and related costs are initially deferred when paid to licensors and amortized as operating costs based on certain percentage of revenues generated by the licensee from operating the related digital entertainment product and service in the specific country or region over the contract period. |
Fair Value Measurements | Fair Value Measurements Our Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. We determine fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: • Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. • Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. • Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. Our Company generally determines or calculates the fair value of financial instruments using quoted market prices in active markets when such information is available; otherwise we apply appropriate present value or other valuation techniques, such as discounted cash flow analyses, incorporating adjusted available market discount rate information and our Company’s estimates for non-performance and liquidity risk. These techniques rely extensively on the use of a number of assumptions, including the discount rate, credit spreads, and estimates of future cash flows. (See Note 7, “Fair Value Measurements”, for additional information.) |
Cash Equivalents, Restricted Cash and Presentation of Statements of Cash Flows | Cash Equivalents, Restricted Cash and Presentation of Statements of Cash Flows Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and so near to their maturity that they present relatively insignificant risk from changes in interest rates. Commercial paper, negotiable certificates of deposit, time deposits and bank acceptances with original maturities of three months or less are considered to be cash equivalents. In accordance with Accounting Standards Update (“ASU”) No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash |
Marketable Securities | Marketable Securities Our Company’s investments in marketable securities are classified either as available-for-sale or trading. For the marketable securities classified as available-for-sale, the investments are stated at fair value with any unrealized gains or losses reported in accumulated other comprehensive income (loss) within equity until realized. For the marketable security classified as trading, we recognize the changes of the fair value of the investment in our consolidated statements of operations. Other-than-temporary impairments, if any, are charged to non-operating expense in the period in which the loss occurs. In determining whether an other-than-temporary impairment has occurred, our Company primarily considers, among other factors, the length of the time and the extent to which the fair value of an investment has been at a value less than cost. When an other-than-temporary loss is recognized, the fair value of the investment becomes the new cost basis of the investment and is not adjusted for subsequent recoveries in fair value. Realized gains and losses also are included in non-operating income and expense in the consolidated statements of operations. (See Note 7, “Fair Value Measurements”, for additional information.) |
Investments | Investments Equity investments in non-publicly traded securities of companies over which our Company has no ability to exercise significant influence are accounted for under the cost method. For equity investments accounted for as available-for-sale or trading, cash dividends are recognized as investment income. Stock dividends are recognized as an increase in the number of shares held and do not affect investment income. The cost per share is recalculated based on the new total number of shares. For equity investments accounted under equity method, stock dividends received from investees as a result of appropriation of net earnings and additional paid-in capital are recognized as an increase in the number of shares held and do not affect investment income. The cost per share is recalculated based on the weighted-average method. Cash dividends are accounted for as a reduction to the carrying value of the investment. Equity investments in companies over which our Company has the ability to exercise significant influence but does not hold a controlling financial interest are accounted for under the equity method. We recognize our share of the earnings or losses of the investee. Under the equity method, the difference between the cost of the acquisition and our Company’s share of the fair value of the net identifiable assets is recognized as goodwill and is included in the carrying amount of the investment. When our Company’s carrying value in an equity method investee is reduced to zero, no further losses are recorded in our consolidated financial statements unless our Company guaranteed obligations of the investee or has committed to additional funding. When the investee subsequently reports income, our Company will not record its share of such income until it equals the amount of its share of losses not previously recognized. Unrealized losses that are considered other-than-temporary, if any, are charged to non-operating expenses. Realized gains and losses, measured against carrying amount, are also included in non-operating income and expenses. (See Note 7, “Fair Value Measurements”, for additional information.) |
Receivables | Receivables Accounts receivable are recorded at the invoiced amount and do not bear interest. Amounts collected on accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. Our Company maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions and our customers’ financial condition, the amount of receivables in dispute, and the current receivables aging and current payment patterns. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation is recorded on a straight-line basis over useful lives that correspond to categories as follows: Categories Years Buildings 50 Information and communication equipment 2 to 5 Office furniture and equipment 3 to 5 Leasehold improvements 3 to 5 Leasehold improvements are amortized over the shorter of the term of the lease or the economic useful life of the assets. Improvements and replacements are capitalized and depreciated over their estimated useful lives, while ordinary repairs and maintenance are expensed as incurred. We had entered into agreements to lease certain of our Company’s land and buildings to a third party under operating leases, which were renewed in September and October 2013 and expired in 2016. As of December 31, 2015, the carrying amount of the land and buildings under lease was $1.1 million. In January 2016, we entered into disposal agreements to sell these land and buildings. The closing of the disposal occurred in March 2016. (See Note 14, “Property, Plant and Equipment”, for additional information.)The rental income under the operating lease amounted to $69 thousand and $9 thousand for 2015 and 2016, respectively. |
Business Acquisitions | Business Acquisitions Our Company accounts for its business acquisitions using the acquisition method. Under this method, our Company recognizes and measures the identifiable assets acquired, the liabilities assumed and any noncontrolling interest at their acquisition-date fair values, with limited exceptions. Acquisition-related costs are generally expensed as incurred. |
Intangible Assets and Goodwill | Intangible Assets and Goodwill Intangible assets with finite lives are amortized by the straight-line method over their estimated useful lives, typically one to three years. |
Impairment of Intangible Assets, Goodwill and Long-Lived Assets | Impairment of Intangible Assets and Long-Lived Assets Long-lived assets other than goodwill and intangible assets not being amortized are reviewed for impairment at least annually or whenever events or changes in circumstances indicate that the carrying value of an asset might not be recoverable from its related future undiscounted cash flows. If such assets are considered to be impaired, the impairment to be recognized is measured by the extent to which the carrying amount of the assets exceeds the fair value of the assets. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. When impairment is identified, the carrying amount of the asset is reduced to its estimated fair value, and is recognized as a loss from operations. (See Note 7, “Fair Value Measurements”, for additional information.) |
Software Cost | Software Cost We capitalize certain costs incurred to purchase computer software. These capitalized costs are amortized on a straight-line basis over the shorter of the useful economic life of the software or its contractual license period, which is typically one to three years. |
Product Development and Engineering | Product Development and Engineering Product development and engineering expenses primarily consist of research compensation, depreciation and amortization, and are expensed as incurred. |
Advertising | Advertising Costs of broadcast advertising are recorded as expenses as advertising airtime is used. Other advertising expenditures are expensed as incurred. Advertising expenses incurred in 2015, 2016 and 2017 totaled $3.1 million, $3.3 million and $1.9 million, respectively. As of December 31, 2016 and 2017, prepaid advertising amounted to $42 thousand and $18 thousand, respectively. |
Leases | Leases Leases for which substantially all of the risks and rewards of ownership remain with the leasing company are accounted for as operating leases. Payments made under operating leases, net of any incentives received by our Company from the leasing company, are charged to the consolidated statements of operations on a straight-line basis over the lease periods. |
Share-Based Compensation | Share-Based Compensation Share-based compensation represents the cost related to share-based awards granted to employees. We measure share-based compensation cost at the grant date, based on the estimated fair value of the award. Share-based compensation is recognized for the portion of the award that is ultimately expected to vest, and the cost is amortized on a straight-line basis (net of estimated forfeitures) over the vesting period. Our Company estimates the fair value of stock options using the Black-Scholes valuation model. The cost is recorded in costs of revenues and operating expenses in the consolidated statements of operations on the date of grant based on the employees’ respective function. For shares and stock options granted to non-employees, we measure the fair value of the equity instruments granted at the earlier of the performance commitment date or when the performance is completed. The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, Compensation Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting |
Retirement Plan and Net Periodic Pension Cost | Retirement Plan and Net Periodic Pension Cost Under our defined benefit pension plan, net periodic pension cost, which includes service cost, interest cost, expected return on plan assets, amortization of unrecognized net transition obligation and gains or losses on plan assets, is recognized based on an actuarial valuation report. We recognize the funded status of pension plans and non-pension post-retirement benefit plans (retirement-related benefit plans) as an asset or a liability in the consolidated balance sheets. Under our defined contribution pension plans, net periodic pension cost is recognized as incurred. The FASB issued ASU No. 2017-07, Compensation—Retirement Benefits (Topic 715) |
Income Taxes | Income Taxes The asset and liability method is used in accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the differences between financial reporting and tax bases of assets and liabilities. Deferred tax assets and liabilities, classified as noncurrent on the consolidated balance sheets, are measured using the enacted tax rate and laws that will be in effect when the related temporary differences are expected to reverse. A valuation allowance is established when necessary to reduce deferred tax assets to the amount that will more-likely-than-not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences and loss carryforwards become deductible. In addition, we recognize the financial statement impact of a tax position when it is more-likely-than-not that the position will be sustained upon examination. If the tax position meets the more-likely-than-not recognition threshold, the tax effect is measured at the largest amount that is greater than a 50 percent likely of being realized upon settlement. Interest and penalties on an underpayment of income taxes are reflected as income tax expense in the consolidated financial statements. |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Basic earnings (loss) per share is computed by dividing the net income (loss) attributable to common shareholders for the period by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share is computed by dividing the net earnings (loss) for the period by the weighted average number of common shares and potential common shares outstanding during the period. Potential common shares, composed of incremental common shares issuable upon the exercise of options in all periods, are included in the computation of diluted earnings (loss) per share to the extent such shares are dilutive. Diluted earnings (loss) per share also takes into consideration the effect of dilutive securities issued by subsidiaries. In a period in which a loss is incurred, only the weighted average number of common shares issued and outstanding is used to compute the diluted loss per share, as the inclusion of potential common shares would be anti-dilutive. Therefore, for the years ended December 31, 2015 and 2016, basic and diluted loss per share were the same. |
Noncontrolling Interest | Noncontrolling Interest Noncontrolling interest in the equity of a subsidiary is accounted for and reported as equity. Changes in our Company’s ownership interest in a subsidiary that do not result in deconsolidation are accounted for as equity transactions. Any retained noncontrolling equity investment upon the deconsolidation of a subsidiary is initially measured at fair value. |
Segment Reporting | Segment Reporting Our segment reporting is mainly based on lines of business. We use the management approach in determining reportable operating segments. The management approach considers the internal organization and reporting used by our Company’s chief operating decision maker for making operating decisions, allocating resources and assessing performance as the source for determining our operating segments. Our Company’s chief operating decision maker (“CODM”) has been identified as the Chief Executive Officer. Segment profit and loss is determined on a basis that is consistent with how our Company reports operating loss in its consolidated statements of operations. Our Company does not report segment asset information to the CODM. Consequently, no asset information by segment is presented. There are no intersegment transactions. |
Recent Accounting Pronouncements Not Yet Adopted | (d) Recent Accounting Pronouncements Not Yet Adopted The FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory an The FASB issued ASU No. 2014-09, Revenue from Contracts with Customers Revenue from Contracts with Customers The FASB issued ASU No. 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net) The FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical The FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing The FASB issued ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers Topic 606 is effective for our fiscal year beginning January 1, 2018. We will adopt the new standard retrospectively, with the cumulative effect recognized at the date of initial application. We do not expect the adoption of this new standard to have a material impact on our Company’s financial position, results or cash flows. We do not anticipate significant changes to our current business processes and systems to support the adoption of the new standard in the year beginning January 1, 2018. Additionally, we are currently in the process of evaluating the required financial statement disclosures to allow users of our consolidated financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with our customers. The FASB issued ASU No. 2017-05, Other Income–Gains and Losses from the Derecognition of Nonfinancial Assets The FASB issued new lease accounting guidance in ASU No. 2016-02, Leases (Topic 842) a lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and (b) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The FASB issued ASU No. 2017-09, Compensation—Stock Compensation |
Principal Activities, Basis o33
Principal Activities, Basis of Presentation, and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Useful Lives of Property Plant and Equipment | Depreciation is recorded on a straight-line basis over useful lives that correspond to categories as follows: Categories Years Buildings 50 Information and communication equipment 2 to 5 Office furniture and equipment 3 to 5 Leasehold improvements 3 to 5 |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Reconciliation of Denominators of Basic and Diluted Per Share Computations | The following table provides a reconciliation of the denominators of the basic and diluted per share computations: (in thousand shares) 2015 2016 2017 Weighted average number of outstanding shares Basic 11,052 11,052 11,052 Effect of dilutive securities Employee share-based compensation — — — Diluted 11,052 11,052 11,052 |
DIVESTITURES (Tables)
DIVESTITURES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
East Gate Media Contents and Technology Fund | |
Summarized Selected Financial Information for Divested Business | The disposal gain was as follows: (In US$ thousand) Amount The fair value of consideration received, net of any transaction costs $ 112 The fair value of consideration receivable, net of any transaction costs 1,058 1,170 The carrying amount of the investment of East Gate at the date of disposal 1,398 Exchange difference 250 Gain on disposal of investment in East Gate $ 22 |
FingerRockz | |
Summarized Selected Financial Information for Divested Business | The deconsolidation gain was as follows: (In US$ thousand) Amount The fair value of consideration received and receivable, net of any transaction costs $ — The carrying amount of FingerRockz at the date of deconsolidation (37 ) Gain on disposal of FingerRockz $ 37 |
Perfect Pairs | |
Summarized Selected Financial Information for Divested Business | The disposal gain was as follows: (In US$ thousand) Amount The fair value of consideration received, net of any transaction costs $ 760 The carrying amount of PerfectPairs Cash 482 Receivables and other current assets 40 Property, plant and equipment 71 Intangible and other noncurrent assets 13 Accounts payable and accrued expenses (528 ) Other payable and other current liabilities (144 ) The carrying amount of PerfectPairs at the date of deconsolidation (66 ) Exchange difference 1 Gain on disposal of PerfectPairs $ 827 |
INTANGIBLE ASSETS - NET (Tables
INTANGIBLE ASSETS - NET (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets by Major Asset Class | The following table summarizes our Company’s intangible assets, by major asset class: December 31, 2017 (In US$ thousands) Gross carrying amount Accumulated amortization Net With finite-life intangible assets Purchased software cost $ 11 $ 8 $ 3 |
PREPAID LICENSING AND ROYALTY37
PREPAID LICENSING AND ROYALTY FEES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Summary of Changes to Prepaid Licensing and Royalty Fees | The following table summarizes changes to our Company’s prepaid licensing and royalty fees: (in US$ thousands) 2015 2016 2017 Balance at beginning of year $ 4,383 $ 239 $ 1,020 Addition 1,801 2,581 486 Amortization and usage (1,743 ) (416 ) (1,040 ) Exchange difference (15 ) 2 (7 ) Impairment charges (Note 7) (4,187 ) (1,386 ) — Balance at end of year $ 239 $ 1,020 $ 459 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Carrying Amounts and Estimated Fair Values of Financial Instruments | The following table presents the carrying amounts and estimated fair values of our Company’s financial instruments at December 31, 2016 and 2017. (in US$ thousands) 2016 2017 Carrying amount Fair value Carrying amount Fair value Financial assets Cash and cash equivalents $ 65,711 $ 65,711 $ 63,670 $ 63,670 Marketable securities - current 3 3 — — Accounts receivable 871 871 751 751 Restricted cash 500 500 507 507 Refundable deposits 245 245 208 208 Financial liabilities Short-term borrowings 2,480 2,480 — — Accounts payable 266 266 314 314 Accrued compensation 210 210 549 549 Accrued expenses 3,828 3,828 2,158 2,158 |
Realized and Unrealized Gains (or Losses) Included In The Consolidated Financial Statements for Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs Level Three | Realized and unrealized gains (or losses) included in the consolidated financial statements for 2015 for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) are reported in the consolidated financial statements as follows: (in US$ thousands) Gain on sales of marketable debt securities Impairment loss on marketable securities and investments Total gains (losses) included in earnings for 2015 $ 5,845 $ — Change in unrealized gains (losses) relating to assets still held at the reporting date for 2015 $ — $ — |
Fair Value, Measurements, Recurring | |
Summary of Assets and Liabilities Measured at Fair Value | Assets and liabilities measured at fair value on a recurring basis are summarized as below: (in US$ thousands) Fair Value Measurement Using Level 1 Level 2 Level 3 At December 31, 2017 Assets Cash equivalents - time deposits $ — $ 6 $ — $ 6 Restricted cash - time deposits — 507 — 507 $ — $ 513 $ — $ 513 (in US$ thousands) Fair Value Measurement Using Level 1 Level 2 Level 3 At December 31, 2016 Assets Cash equivalents - time deposits $ — $ 6 $ — $ 6 Restricted cash - time deposits — 500 — 500 Marketable securities - current Equity securities 3 — — 3 $ 3 $ 506 $ — $ 509 |
Fair Value, Measurements, Nonrecurring | |
Summary of Assets and Liabilities Measured at Fair Value | Assets and liabilities measured at fair value on a nonrecurring basis that were determined to be impaired as of December 31, 2016 and 2017 are summarized as below: (in US$ thousands) Fair Value measurement Using Assets Level 1 Level 2 Level 3 At December 31, 2017 Total Impairment Losses (a) Investments - Cost-method $ — $ — $ — $ — $ 52 (d) Prepaid licensing and royalty fees — — — — — Total $ — $ — $ — $ — $ 52 (in US$ thousands) Fair Value measurement Using Assets Level 1 Level 2 Level 3 At December 31, 2016 Total Impairment Losses (b) Property, plant and equipment $ — $ — $ — $ — $ 471 (c) Intangible assets — — — — 57 (d) Prepaid licensing and royalty fees — — 820 820 1,386 Total $ — $ — $ 820 $ 820 $ 1,914 (a) Impairment losses on certain cost method investments which were determined to be impaired: (b) Impairment losses on certain property, plant, and equipment which were determined to be impaired: (c) Impairment losses on certain intangible assets which were determined to be impaired: (d) Impairment losses on certain prepaid licensing and royalty fees which were determined to be impaired: |
CASH, RESTRICTED CASH AND CAS39
CASH, RESTRICTED CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Cash And Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | Cash and cash equivalents consist of the following: December 31 (in US$ thousands) 2016 2017 Cash and savings accounts $ 65,705 $ 63,664 Time deposits 6 6 Cash and cash equivalents reported on the consolidated balance sheets 65,711 63,670 Cash restricted as collateral and performance bond 500 507 Total cash, restricted cash and cash equivalents reported on the consolidated statements of cash flows $ 66,211 $ 64,177 We maintain cash and cash equivalents, as well as restricted cash, in bank accounts with major financial institutions with high credit ratings located in the following jurisdictions: December 31 (in US$ thousands) 2016 2017 Taiwan $ 65,093 $ 62,350 Hong Kong 1,102 1,811 China 16 16 $ 66,211 $ 64,177 |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Marketable Securities [Abstract] | |
Marketable Debt Securities | Marketable securities – current consist of the following: December 31 (in US$ thousands) 2016 2017 Equity securities, classified as available-for-sale $ 3 $ — |
ACCOUNTS RECEIVABLE - NET (Tabl
ACCOUNTS RECEIVABLE - NET (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Accounts Receivable Net | Accounts receivable consist of the following: December 31 (in US$ thousands) 2016 2017 Accounts receivable $ 903 $ 763 Less: Allowance for doubtful accounts (32 ) (12 ) $ 871 $ 751 |
Summary of Changes in Allowance for Doubtful Accounts | The following is a summary of the changes in our Company’s allowance for doubtful accounts during the years ended December 31, 2015, 2016 and 2017: (in US$ thousands) 2015 2016 2017 Balance at beginning of year $ 56 $ 29 $ 32 Additions: Bad debt expense 3 35 127 Less: Write-offs (28 ) (33 ) (149 ) Translation adjustment (2 ) 1 2 Balance at end of year $ 29 $ 32 $ 12 |
OTHER CURRENT ASSETS (Tables)
OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other Current Assets | Other current assets consist of the following: December 31 (in US$ thousands) 2016 2017 Loans receivable - current 65 64 Less: Allowance for loans receivable - current (28 ) (30 ) Other receivables (Note 4) 1,062 34 Other 151 125 $ 1,250 $ 193 |
Changes in Allowance for Loans Receivable | The following is a reconciliation of changes in our Company’s allowance for loans receivable - current during the years ended December 31, 2015, 2016 and 2017: (in US$ thousands) 2015 2016 2017 Balance at beginning of year $ 27 $ 28 $ 28 Reversal for collection of bad debt 2 — — Translation adjustment (1 ) — 2 Balance at end of year $ 28 $ 28 $ 30 |
EQUITY INVESTMENTS (Tables)
EQUITY INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments Schedule [Abstract] | |
Equity Investments | Equity investments consist of the following: December 31 (in US$ thousands) 2016 2017 Investments accounted for under the equity method $ 72 $ — |
Summary of Financial Information of East Gate | Summarized U.S. GAAP financial information of East Gate as of November 30, 2016 (right before we disposed of it), and for the years ended December 31, 2015 and the eleven-month period ended November 30, 2016 is presented below (in US$ thousands): 2016 Investments and other related assets $ 7,911 Other assets 332 Total assets $ 8,243 Total liabilities $ 318 Total net assets of the fund $ 7,925 2015 2016 Investment and related income (loss) $ 5,419 $ (1,513 ) Impairment loss — (105 ) Other costs and expenses (8,219 ) (7,513 ) Net loss $ (2,800 ) $ (9,131 ) |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Reconciliation of Beginning and Ending Amounts of Property, Plant and Equipment | For the year ended December 31, 2017, there were no significant changes in our property, plant and equipment. For the year ended December 31, 2016, a reconciliation of the beginning and ending amounts of our property, plant and equipment is as follows: (in US$ thousands) Cost Accumulated depreciation Net Balance at beginning of year $ 5,165 $ 3,774 $ 1,391 Purchase 496 — 496 Depreciation — 162 (162 ) Disposal of office premises (1,120 ) (44 ) (1,076 ) Disposal of other property, plant and equipment (1,092 ) (969 ) (123 ) Deconsolidation (Note 4) (104 ) (33 ) (71 ) Impairment (Note 7) (3,423 ) (2,952 ) (471 ) Exchange differences 85 62 23 Balance at end of year $ 7 $ — $ 7 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | Accrued expenses consist of the following: December 31 (in US$ thousands) 2016 2017 Accrued advertising expenses $ 1,961 $ 371 Accrued professional fees 765 580 Accrued royalties 350 502 Accrued director compensation and liability insurance 272 256 Other 480 449 $ 3,828 $ 2,158 |
PENSION BENEFITS (Tables)
PENSION BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Benefit Obligations, Fair Value of Plan Assets, and Funded Status | The following table sets forth the plan’s benefit obligations, fair value of plan assets, and funded status at December 31, 2016 and 2017: December 31 (in US$ thousands) 2016 2017 Benefit Obligation $ 263 $ 295 Fair value of plan assets 325 365 $ (62 ) $ (70 ) Amounts recognized in the balance sheet consist of: Noncurrent liabilities (assets) $ (62 ) $ (70 ) Accumulated other comprehensive income — — Net amount recognized $ (62 ) $ (70 ) Amounts recognized in accumulated comprehensive income (loss) consist of: Unrecognized net gain (loss) $ (58 ) $ (69 ) |
Pension Cost | For the years ended December 31, 2015, 2016 and 2017, the net period pension cost consisted of the following: December 31 (in US$ thousands) 2015 2016 2017 Service cost $ — $ — $ — Interest cost 5 4 4 Expected return on plan assets (6 ) (6 ) (5 ) Amortization of net loss — — 1 Curtailment gain (57 ) — — $ (58 ) $ (2 ) $ — |
Weighted Average Assumptions Used to Determine Benefit Obligations | Weighted average assumptions used to determine benefit obligations for 2016 and 2017 were as follows: December 31 2016 2017 Discount rate 1.375 % 1.625 % Rate of compensation increase 2.00 % 2.00 % |
Schedule of Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost | Weighted average assumptions used to determine net periodic benefit cost for end of fiscal year were as follows: 2016 2017 Discount rate 1.875 % 1.375 % Rate of return on plan assets 1.875 % 1.375 % Rate of compensation increase 1.50 % 2.00 % |
ACCUMULATED OTHER COMPREHENSI47
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Accumulated Balances of Other Comprehensive Income (Loss) | The accumulated balances for each component of other comprehensive income (loss) are as follows: (in US$ thousands) Foreign currency items Unrealized gain on securities Pension and post retirement benefit plans Accumulated other comprehensive loss Balance at January 1, 2015 $ (22,876 ) $ 11,389 $ — $ (11,487 ) Net current period change (118 ) 8,553 — 8,435 Reclassification adjustments for gains reclassified into income 656 (19,939 ) — (19,283 ) Balance at December 31, 2015 (22,338 ) 3 — (22,335 ) Net current period change 5 (1 ) (58 ) (54 ) Reclassification adjustments for gains reclassified into income (222 ) — — (222 ) Balance at December 31, 2016 $ (22,555 ) $ 2 $ (58 ) $ (22,611 ) Net current period change 641 — (11 ) 630 Reclassification adjustments for gains reclassified into income — (2 ) — (2 ) Balance at December 31, 2017 $ (21,914 ) $ — $ (69 ) $ (21,983 ) |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of General Terms of Stock-Based Compensation Plans for Awards Granted | Summarized below are the general terms of our stock-based compensation plans, for which awards have been granted as of December 31, 2017. Stock-Based compensation plan Granted awards Vesting schedule Options’ exercise price RSUs’ grant date fair value 2004 plan 1,575,037 (1) immediately upon granting to four years $3.95~$12.75 — 2006 Plan 256,716 (2) immediately upon granting to four years $3.85~$83 $14.55~$80.05 2007 Plan 675,057 (3) immediately upon granting to four years $2.90~$90.85 $12.35~$76.75 2008 Plan 200,000 immediately upon granting to six years $12.35~$21.2 — 2009 Plan 500,000 (4) immediately upon granting to four years $4.775~$12.35 — 2010 Plan 440,000 (5) three years $4.0505~$5.7 — (1) The granted awards, net of forfeited or canceled options, were within reserved shares of 1,400 thousand common shares. (2) The granted awards, net of forfeited or canceled options or shares, were within reserved shares of 200 thousand common shares. (3) The granted awards, net of forfeited or canceled options or shares, were within reserved shares of 400 thousand common shares. (4) The granted awards, net of forfeited or canceled options, were within reserved shares of 300 thousand common shares. (5) The granted awards, net of forfeited or canceled options, were within reserved shares of 200 thousand common shares. |
Summary of Assumptions Used in Black-Scholes Option-Pricing Model to Estimate Fair Value of Stock Options Granted | No options were granted to employees during 2016. The following table summarizes the assumptions used in the model for options granted during 2015 and 2017: 2015 2017 Option term (years) 5.75 6.01 Volatility 49.239% 48.997% Weighted-average volatility 49.000% 48.997% Risk-free interest rate 1.506% 2.031% Dividend yield 0% 0% Weighted-average fair value of option granted $ 1.80 $ 1.41 |
Summary of Option Transactions | Option transactions during the last three years are summarized as follows: 2015 2016 2017 Weighted Avg. Exercise Price No. of Shares (in thousands) Weighted Avg. Exercise Price No. of Shares (in thousands) Weighted Avg. Exercise Price No. of Shares (in thousands) Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) Balance at January 1 $ 20.30 626 $ 20.51 617 $ 20.63 613 Options granted 3.85 12 — — 3 4 Options exercised — — — — — — Options Forfeited / canceled / expired 5.31 (21 ) 3.85 (4 ) 26.24 (309 ) Balance at December 31 $ 20.51 617 $ 20.63 613 $ 14.78 308 2.53 $ 1 Exercisable at December 31 $ 21.28 586 $ 20.57 606 $ 34.29 298 2.34 $ — Vested and expected to vest at December 31 $ 20.51 617 $ 20.63 613 $ 14.78 308 2.53 $ 1 |
Information about Stock Options Outstanding | The following table sets forth information about stock options outstanding at December 31, 2017: Options outstanding Option currently exercisable Exercise price No. of Shares (in thousands) Weighted average remaining contractual life Exercise price No. of Shares (in thousands) Under $5 16 6.97 years Under $5 8 $5~$50 284 2.35 years $5~$50 282 $50~$100 8 0.08 years $50~$100 8 308 298 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income (Loss) Before Income Taxes by Geographic Location | Income (loss) before income taxes by geographic location is as follows: (in US$ thousands ) 2015 2016 2017 Taiwan operations $ (13,177 ) $ (1,119 ) $ 893 Non-Taiwan operations 10,475 (6,096 ) (1,478 ) $ (2,702 ) $ (7,215 ) $ (585 ) |
Components of Income Tax Benefit Expense by Taxing Jurisdiction | The components of income tax benefit (expense) by taxing jurisdiction are as follows: ( in US$ thousands ) 2015 2016 2017 Taiwan: Current $ 198 $ 1,108 $ — Deferred — — — $ 198 $ 1,108 $ — Non-Taiwan: Current $ — $ — $ (1 ) Deferred 216 41 1,672 $ 216 $ 41 $ 1,671 Total current income tax benefit (expense) $ 198 $ 1,108 $ (1 ) Total deferred income tax benefit (expense) $ 216 $ 41 $ 1,672 Total income tax benefit (expense) $ 414 $ 1,149 $ 1,671 |
Reconciliation of Effective Tax Rate Related to Statutory Taiwan Federal Tax Rate | A reconciliation of our effective tax rate related to the statutory tax rate in Taiwan, where our major operations are based, is as follows: 2015 2016 2017 Taiwan statutory rate, including taxes on income and retained earnings 23.85 % 23.85 % 23.85 % Foreign tax differential 183.28 % (12.37 )% 1.10 % Reversal of deferred withholding tax liabilities — — 285.84 % Tax-exempt income 2.71 % 3.28 % 0.00 % Non-deductible items - bad debts (57.91 )% (3.08 )% — Other non-deductible expenses (17.47 )% (1.65 )% (44.79 )% Changes in unrecognized tax benefits 6.84 % 1.10 % — Adjustment for prior year payable 0.00 % 0.04 % 0.00 % Change in deferred tax assets and valuation allowance (130.14 )% 6.87 % 13.43 % Other 4.17 % (2.12 )% 6.33 % Effective rate 15.33 % 15.92 % 285.76 % |
Reconciliation of Beginning and Ending Amounts of Valuation Allowance on Deferred Tax Assets | A reconciliation of the beginning and ending amounts of our valuation allowance on deferred tax assets for the years ended December 31, 2015, 2016 and 2017 are as follows: (in US$ thousands) 2015 2016 2017 Balance at beginning of year $ 7,147 $ 11,025 $ 11,852 Subsequent reversal and utilization of valuation allowance — (753 ) (3,352 ) Additions to valuation allowance 4,185 1,739 745 Divestitures — (312 ) — Exchange differences (307 ) 153 683 Balance at end of year $ 11,025 $ 11,852 $ 9,928 |
Net Operating Loss Carryforwards Available to Offset Future Income | As of December 31, 2017, we had net operating loss carryforwards available to offset future taxable income, shown below by major jurisdictions: Jurisdiction Amount Expiring year Hong Kong $ 15,444 indefinite Taiwan 30,952 2020~2027 $ 46,396 |
Accumulated Statutory Losses available to Offset Future Undistributed Earnings | As of December 31, 2017, we had accumulated statutory losses from Taiwan operations available to offset future undistributed earnings: Jurisdiction Amount Expiring year Taiwan $ 19,920 indefinite |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits Excluding Effects of Accrued Interest | A reconciliation of the beginning and ending amount of unrecognized tax benefits (excluding the effects of accrued interest) for the years 2015, 2016 and 2017 are as follows: (in US$ thousands) 2015 2016 2017 Balance at beginning of year $ 8,287 $ 1,203 $ 1,024 Increase related to prior year tax positions — 1,025 — Decrease related to prior year tax positions (185 ) — — Settlement (6,830 ) — — Expiration of statute of limitations — (1,225 ) — Exchange differences (69 ) 21 86 Balance at end of year $ 1,203 $ 1,024 $ 1,110 |
Deferred Tax Assets | |
Significant Components of Deferred Tax Assets and Liabilities | The significant components of our deferred tax assets consist of the following: (in US$ thousands) December 31 2016 2017 Net operating loss carryforwards $ 9,730 $ 9,178 Prepaid licensing and royalty fees 952 5 Investments 501 135 Intangible assets and goodwill 226 183 Share-based compensation 276 299 Other 167 128 11,852 9,928 Less: valuation allowance (11,852 ) (9,928 ) Deferred tax assets - net $ — $ — |
Deferred Tax Liability | |
Significant Components of Deferred Tax Assets and Liabilities | The significant components of our deferred tax liabilities consist of the following: (in US$ thousands) December 31 2016 2017 Investment in subsidiaries, principally due to undistributed income $ 1,671 $ — |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Aggregate Minimum Lease Payments Required Under Operating Lease | The following table sets forth our future aggregate minimum lease payments required under these operating leases, as of December 31, 2017: (in US$ thousands) Amount 2018 $ 499 2019 456 2020 438 2021 73 $ 1,466 |
Committed License Fees and Minimum Guarantees Against Future Royalties Set Forth in Significant License Agreements | The following table summarizes the committed license fees and minimum guarantees against future royalties set forth in our significant license agreements as of December 31, 2017. (in US$ thousands) License fees Minimum guarantees against future royalties Total Minimum required payments: In 2018 $ 60 $ 400 $ 460 After 2018 — — — $ 60 $ 400 $ 460 |
SEGMENT, PRODUCT, GEOGRAPHIC 51
SEGMENT, PRODUCT, GEOGRAPHIC AND OTHER INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Reconciliation of Segment Information to Consolidated Information | Financial information for each operating segment was as follows for the years ended December 31, 2015, 2016, and 2017: (in US$ thousands) Digital entertainment Cloud service business Total 2015: Net revenue from external customers $ 8,545 $ 1,706 $ 10,251 Loss from operations $ (12,735 ) $ (1,240 ) $ (13,975 ) Share-based compensation $ 6 $ (23 ) $ (17 ) Impairment loss on property, plant and equipment $ — $ 60 $ 60 Impairment loss on intangible assets $ — $ 5 $ 5 Impairment loss on prepaid licensing and royalty fees $ 4,187 $ — $ 4,187 Interest income $ 12 $ — $ 12 Interest expense $ 128 $ 1 $ 129 Gain on disposal of marketable securities - net $ 19,939 $ — $ 19,939 Foreign exchange gain (loss) $ (145 ) $ — $ (145 ) Net gain (loss) on equity investments $ (600 ) $ — $ (600 ) Impairment loss on marketable securities and investments $ 1,290 $ — $ 1,290 Depreciation $ 233 $ 40 $ 273 Amortization, including intangible assets $ 212 $ 32 $ 244 Income tax expense (benefits) $ (14 ) $ — $ (14 ) (in US$ thousands) Digital entertainment 2016: Net revenue from external customers $ 8,971 Loss from operations $ (3,924 ) Share-based compensation $ 3 Impairment loss on property, plant and equipment $ 288 Impairment loss on intangible assets $ 53 Impairment loss on prepaid licensing and royalty fees $ 1,386 Interest income $ 2 Interest expense $ — Gain on disposal of marketable securities - net $ — Foreign exchange gain (loss) $ (174 ) Net gain (loss) on equity investments $ (1,731 ) Impairment loss on marketable securities and investments $ — Depreciation $ 142 Amortization, including intangible assets $ 93 Income tax expense (benefits) $ — (in US$ thousands) Digital entertainment 2017: Net revenue from external customers $ 11,596 Income from operations $ 1,747 Share-based compensation $ 1 Impairment loss on property, plant and equipment $ — Impairment loss on intangible assets $ — Impairment loss on prepaid licensing and royalty fees $ — Interest income $ 1 Interest expense $ 1 Gain on disposal of marketable securities - net $ 2 Foreign exchange gain (loss) $ (148 ) Net gain (loss) on equity investments $ (24 ) Impairment loss on marketable securities and investments $ 52 Depreciation $ 43 Amortization, including intangible assets $ 12 Income tax expense (benefits) $ — The reconciliations of segment information to GigaMedia’s consolidated totals are as follows: (in US$ thousands) 2015 2016 2017 Loss from operations: Total segments $ (13,975 ) $ (3,924 ) $ 1,747 Adjustment* (6,078 ) (3,208 ) (2,237 ) Total GigaMedia consolidated $ (20,053 ) $ (7,132 ) $ (490 ) Share-based compensation Total segments $ (17 ) $ 3 $ 1 Adjustment ** 82 6 (8 ) Total GigaMedia consolidated $ 65 $ 9 $ (7 ) Impairment loss on property, plant and equipment: Total segments $ 60 $ 288 $ — Adjustment ** — 183 — Total GigaMedia consolidated $ 60 $ 471 $ — Impairment loss on intangible assets: Total segments $ 5 $ 53 $ — Adjustment ** — 4 — Total GigaMedia consolidated $ 5 $ 57 $ — Impairment loss on prepaid licensing and royalty fees: Total segments $ 4,187 $ 1,386 $ — Adjustment ** — — — Total GigaMedia consolidated $ 4,187 $ 1,386 $ — Interest income: Total segments $ 12 $ 2 $ 1 Adjustment ** 321 300 601 Total GigaMedia consolidated $ 333 $ 302 $ 602 Interest expense: Total segments $ 129 $ — $ 1 Adjustment ** 53 81 33 Total GigaMedia consolidated $ 182 $ 81 $ 34 Gain on disposal of marketable securities - net: Total segments $ 19,939 $ — $ 2 Adjustments ** — — — Total GigaMedia consolidated $ 19,939 $ — $ 2 Foreign exchange gain (loss): Total segments $ (145 ) $ (174 ) $ (148 ) Adjustments ** (252 ) (127 ) (403 ) Total GigaMedia consolidated $ (397 ) $ (301 ) $ (551 ) (in US$ thousands) 2015 2016 2017 Net gain (loss) on equity investments: Total segments $ (600 ) $ (1,731 ) $ (24 ) Adjustment ** — — — Total GigaMedia consolidated $ (600 ) $ (1,731 ) $ (24 ) Impairment loss on marketable securities and investments: Total segments $ 1,290 $ — $ 52 Adjustment ** — — — Total GigaMedia consolidated $ 1,290 $ — $ 52 Depreciation: Total segments $ 273 $ 142 $ 43 Adjustments ** 21 20 — Total GigaMedia consolidated $ 294 $ 162 $ 43 Amortization: Total segments $ 244 $ 93 $ 12 Adjustments ** 1 18 — Total GigaMedia consolidated $ 245 $ 111 $ 12 Income tax expense (benefit): Total segments $ (14 ) $ — $ — Adjustments ** (400 ) (1,149 ) (1,671 ) Total GigaMedia consolidated $ (414 ) $ (1,149 ) $ (1,671 ) * Adjustment items include corporate and certain back-office costs and expenses not attributable to any specific segment. For the years ended December 31, 2015, 2016 and 2017, the compensation related items were approximately $1.3 million $1.6 million and $1.3 million, respectively; professional fees were approximately $587 thousand $612 thousand and $365 thousand, respectively; the termination charge of proposed acquisition of $2.0 million in 2015 were also included in the adjustments. * * Adjustment items include corporate and certain back-office costs and expenses not attributable to any specific segment. |
Summary of Revenues From Major Products Line | Revenues from the Company’s major product lines are summarized as follow: (in US$ thousands) 2015 2016 2017 MahJong and casino casual games $ 3,113 $ 2,459 $ 2,364 PC massively multiplayer online games 1,670 1,560 1,400 Mobile role playing games 2,807 4,674 7,776 Other games and game related revenues 955 278 56 Cloud computing services 1,706 — — $ 10,251 $ 8,971 $ 11,596 |
Revenue by Geographic Region | Revenues by geographic area are attributed by country of the operating entity location. Revenue from by geographic region is as follows: (in US$ thousands) Geographic region / country 2015 2016 2017 Taiwan $ 6,889 $ 2,664 $ 2,349 Hong Kong 3,362 6,307 9,247 $ 10,251 $ 8,971 $ 11,596 |
Net Tangible Long-Lived Assets by Geographic Region | Net tangible long-lived assets by geographic region are as follows: (in US$ thousands) December 31, Geographic region / country 2015 2016 2017 Taiwan $ 1,320 $ 7 $ 62 Hong Kong 71 — 96 $ 1,391 $ 7 $ 158 |
Principal Activities, Basis o52
Principal Activities, Basis of Presentation, and Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | Dec. 16, 2015 | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Description Of Business Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Reverse stock split conversion ratio | 0.2 | |||
Net cash provided by investing activities | $ 935 | $ 3,253 | $ 41,174 | |
Operating lease, carrying amount of land and buildings | 158 | 7 | 1,391 | |
Operating lease, rental income | 9 | 69 | ||
Advertising expenses | 1,900 | 3,300 | 3,100 | |
Prepaid advertising | $ 18 | 42 | ||
Property Available for Operating Lease | ||||
Description Of Business Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Operating lease, carrying amount of land and buildings | 1,100 | |||
Accounting Standards Update 2016-18 | ||||
Description Of Business Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Net cash provided by investing activities | 41,200 | |||
Previously Reported | Accounting Standards Update 2016-18 | ||||
Description Of Business Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Net cash provided by investing activities | $ 49,200 | |||
Minimum | ||||
Description Of Business Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Finite lived intangible assets, useful life | 1 year | |||
Minimum | Capitalized software development cost | ||||
Description Of Business Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Finite lived intangible assets, useful life | 1 year | |||
Maximum | ||||
Description Of Business Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Finite lived intangible assets, useful life | 3 years | |||
Maximum | Capitalized software development cost | ||||
Description Of Business Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Finite lived intangible assets, useful life | 3 years | |||
Prepaid Licensing and Royalty Fees | Minimum | ||||
Description Of Business Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Finite lived intangible assets, useful life | 1 year | |||
Prepaid Licensing and Royalty Fees | Maximum | ||||
Description Of Business Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Finite lived intangible assets, useful life | 2 years | |||
Performance Bonds | Restricted Cash | ||||
Description Of Business Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Escrow account | $ 507 | $ 500 |
Useful Lives of Property Plant
Useful Lives of Property Plant and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Building | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 50 years |
Property, plant and equipment - Information and communication equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 2 years |
Property, plant and equipment - Information and communication equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 5 years |
Office Furniture And Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Office Furniture And Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 5 years |
Leasehold Improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Leasehold Improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 5 years |
Reconciliation of Denominators
Reconciliation of Denominators of Basic and Diluted Per Share Computations (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Weighted average number of outstanding shares | |||
Basic | 11,052 | 11,052 | 11,052 |
Effect of dilutive securities | |||
Employee share-based compensation | 0 | 0 | 0 |
Diluted | 11,052 | 11,052 | 11,052 |
Earnings (Loss) Per Share - Add
Earnings (Loss) Per Share - Additional Information (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Options | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive shares excluded from computation of earnings per-share | 308,000 | 613,000 | 617,000 |
Options | Minimum | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive stock options excluded and their associated expercise price per share range | $ 2.90 | $ 3.85 | $ 3.85 |
Options | Maximum | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive stock options excluded and their associated expercise price per share range | $ 80.05 | $ 83 | $ 83 |
RSUs | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive shares excluded from computation of earnings per-share | 0 | 0 | 0 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - Strawberry Cosmetics - USD ($) $ in Millions | Jun. 26, 2015 | Oct. 31, 2015 |
Business Acquisition [Line Items] | ||
Equity ownership percentage acquired | 70.00% | |
Business acquisition, total consideration transferred | $ 93.1 | |
Cash paid to terminate share purchase agreement | $ 2 |
Divestitures - Additional Infor
Divestitures - Additional Information (Detail) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Nov. 30, 2016 | Sep. 30, 2016USD ($) | Jan. 31, 2016USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2015TWD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Distribution received from investees | $ 1,438 | |||||
Divestiture transaction consideration recorded as other receivable | $ 34 | 1,062 | ||||
East Gate | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Distribution received from investees | $ 1,438 | |||||
Investments fund expiration date | 2017-08 | |||||
Divestiture transaction consideration recorded as other receivable | $ 1,100 | |||||
East Gate | Korean Investor | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Sale of ownership under agreement | 17.65% | |||||
FingerRockz | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Aggregate selling price relative to the divestiture transaction | $ 1 | |||||
Perfect Pairs | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Sale of ownership under agreement | 100.00% | |||||
Proceeds from disposal of subsidiary | $ 760 |
Summarized Selected Financial I
Summarized Selected Financial Information for Divested Business (Detail) - USD ($) $ in Thousands | 1 Months Ended | ||
Nov. 30, 2016 | Jan. 31, 2016 | Sep. 30, 2015 | |
East Gate | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Exchange difference | $ 250 | ||
The fair value of consideration received, net of any transaction costs | 112 | ||
The fair value of consideration receivable, net of any transaction costs | 1,058 | ||
Aggregate of consideration received and receivable net of any transaction costs | 1,170 | ||
The carrying amount of the investment of East Gate at the date of disposal | 1,398 | ||
Gain on disposal of investment in East Gate | $ 22 | ||
FingerRockz | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
The carrying amount at the date of deconsolidation | $ (37) | ||
Gain on disposal | 37 | ||
The fair value of consideration received and receivable, net of any transaction costs | $ 0 | ||
Perfect Pairs | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from disposal of subsidiary | $ 760 | ||
Disposed of by Sale | Perfect Pairs | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from disposal of subsidiary | 760 | ||
Cash | 482 | ||
Receivables and other current assets | 40 | ||
Property, plant and equipment | 71 | ||
Intangible and other noncurrent assets | 13 | ||
Accounts payable and accrued expenses | (528) | ||
Other payable and other current liabilities | (144) | ||
The carrying amount at the date of deconsolidation | (66) | ||
Exchange difference | 1 | ||
Gain on disposal | $ 827 |
Summary of Intangible Assets by
Summary of Intangible Assets by Major Asset Class (Detail) - Purchased Software Cost $ in Thousands | Dec. 31, 2017USD ($) |
Finite Lived Intangible Assets [Line Items] | |
Gross carrying amount | $ 11 |
Accumulated amortization | 8 |
Net | $ 3 |
Intangible Assets - Net - Addit
Intangible Assets - Net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Intangible Assets [Line Items] | |||
Amortization expense of intangible assets | $ 7 | $ 106 | $ 236 |
Impairment losses on intangible assets | 57 | 5 | |
Purchased Software Cost | |||
Intangible Assets [Line Items] | |||
Amortization expense of intangible assets | $ 7 | $ 89 | $ 217 |
Summary of Changes to Prepaid L
Summary of Changes to Prepaid Licensing and Royalty Fees (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Prepaid Expenses [Line Items] | |||
Balance at beginning of year | $ 1,020 | ||
Addition | (137) | $ 12 | $ (17) |
Amortization and usage | (12) | (111) | (245) |
Impairment charges (Note 7) | (1,386) | (4,187) | |
Balance at end of year | 459 | 1,020 | |
Prepaid Licensing and Royalty Fees | |||
Prepaid Expenses [Line Items] | |||
Balance at beginning of year | 1,020 | 239 | 4,383 |
Addition | 486 | 2,581 | 1,801 |
Amortization and usage | (1,040) | (416) | (1,743) |
Exchange difference | (7) | 2 | (15) |
Impairment charges (Note 7) | (1,386) | (4,187) | |
Balance at end of year | $ 459 | $ 1,020 | $ 239 |
Prepaid Licensing and Royalty62
Prepaid Licensing and Royalty Fees - Additional Information (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Prepaid Expenses [Line Items] | |
Proceeds from return of prepaid licensing and royalty fees of terminated license | $ 1,700 |
Gain recognized upon termination of licensing and royalty agreement | 1,732 |
Operating Expenses | |
Prepaid Expenses [Line Items] | |
Gain recognized upon termination of licensing and royalty agreement | $ 1,700 |
Carrying Amounts and Estimated
Carrying Amounts and Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financial assets | ||
Cash and cash equivalents | $ 63,670 | $ 65,711 |
Marketable securities - current | 3 | |
Accounts receivable | 751 | 871 |
Restricted cash | 507 | 500 |
Refundable deposits | 208 | 245 |
Financial liabilities | ||
Short-term borrowings | 2,480 | |
Accounts payable | 314 | 266 |
Accrued compensation | 549 | 210 |
Accrued expenses | 2,158 | 3,828 |
Carrying Amount | ||
Financial assets | ||
Cash and cash equivalents | 63,670 | 65,711 |
Marketable securities - current | 3 | |
Accounts receivable | 751 | 871 |
Restricted cash | 507 | 500 |
Refundable deposits | 208 | 245 |
Financial liabilities | ||
Short-term borrowings | 2,480 | |
Accounts payable | 314 | 266 |
Accrued compensation | 549 | 210 |
Accrued expenses | 2,158 | 3,828 |
Estimated Fair Value | ||
Financial assets | ||
Cash and cash equivalents | 63,670 | 65,711 |
Marketable securities - current | 3 | |
Accounts receivable | 751 | 871 |
Restricted cash | 507 | 500 |
Refundable deposits | 208 | 245 |
Financial liabilities | ||
Short-term borrowings | 2,480 | |
Accounts payable | 314 | 266 |
Accrued compensation | 549 | 210 |
Accrued expenses | $ 2,158 | $ 3,828 |
Assets and Liabilities Measured
Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 513 | $ 509 |
Bank Time Deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents-time deposits | 6 | 6 |
Restricted cash-time deposits | 507 | 500 |
Equity Securities | Current Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 3 | |
Fair Value Measurements Using Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 3 | |
Fair Value Measurements Using Level 1 | Equity Securities | Current Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 3 | |
Fair Value Measurements Using Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 513 | 506 |
Fair Value Measurements Using Level 2 | Bank Time Deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents-time deposits | 6 | 6 |
Restricted cash-time deposits | $ 507 | $ 500 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |||
Unrealized gains on marketable securities | $ 0 | $ 0 | $ 4,800 |
Realized and Unrealized Gains (
Realized and Unrealized Gains (Or Losses) Included In Income for Assets and Liabilities Measured At Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Fair Value, Measurements, Recurring | Gain on Sales of Marketable Securities | |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Unrealized Gains (Losses) [Line Items] | |
Total gains (losses) included in earnings | $ 5,845 |
Summary of Assets and Liabiliti
Summary of Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Detail) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Property, plant and equipment, impairment loss | $ 471,000 | $ 60,000 | |||
Intangible assets, total impairment losses | 57,000 | 5,000 | |||
Prepaid licensing and royalty, total impairment losses | 1,386,000 | 4,187,000 | |||
Fair Value, Measurements, Nonrecurring | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Investments-Cost-method | $ 0 | ||||
Total | 820,000 | ||||
Investments-Cost-method - total impairment losses | 52,000 | [1] | $ 52,000 | ||
Property, plant and equipment, impairment loss | [2] | 471,000 | |||
Intangible assets, total impairment losses | [3] | 57,000 | |||
Prepaid licensing and royalty, total impairment losses | [4] | 1,386,000 | |||
Total | $ 52,000 | 1,914,000 | |||
Fair Value, Measurements, Nonrecurring | Prepaid Licensing and Royalty Fees | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Prepaid licensing and royalty fees | [4] | 820,000 | |||
Fair Value, Measurements, Nonrecurring | Fair Value Measurements Using Level 3 | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Total | 820,000 | ||||
Fair Value, Measurements, Nonrecurring | Fair Value Measurements Using Level 3 | Prepaid Licensing and Royalty Fees | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Prepaid licensing and royalty fees | [4] | $ 820,000 | |||
[1] | Impairment losses on certain cost method investments which were determined to be impaired: In 2017, certain cost method investment with carrying amounts of $52 thousand was considered fully impaired as it has incurred consecutive losses but unable to reduce cash burn, and thus its cash was expected to be depleted within months. Therefore it was fully written down to zero, resulting in an impairment charge of $52 thousand. The impairment charges are included in non-operating expenses within “impairment loss on marketable securities and investments” in the consolidated statements of operations. | ||||
[2] | Impairment losses on certain property, plant, and equipment which were determined to be impaired: In 2016, we recognized an impairment loss of $471 thousand on property, plant and equipment as a result of consecutive operating losses in recent years that are expected to continue and therefore the carrying amounts of those long-lived assets would not be recoverable based on cash flow projections from current games, which are typically with shorter lives. | ||||
[3] | Impairment losses on certain intangible assets which were determined to be impaired: In 2016, we recognized an impairment loss of $57 thousand on intangible assets as a result of consecutive operating losses in recent years that are expected to continue and therefore the carrying amounts of those intangibles assets would not be recoverable based on cash flow projections from current games, which are typically with shorter lives. | ||||
[4] | Impairment losses on certain prepaid licensing and royalty fees which were determined to be impaired: In 2016, certain prepaid licensing and royalty fees were written down to $0, resulting in an impairment charge of $1.4 million. This impairment is included in operating expenses in the consolidated statements of operations. The impairment charges for the prepaid licensing and royalty fees related to certain licensed games within our Asian digital entertainment business that we stopped operating or for which the carrying amounts of the related assets were determined not to be recoverable from their expected future undiscounted cash flows. The licensing fee games and related royalties are re-valued on when impairment exists, using unobservable inputs such as discounted cash flows, incorporating adjusted available market discount rate information and our Company’s estimates for liquidity risk, along with other cash flow model related assumptions. |
Summary of Assets and Liabili68
Summary of Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Parenthetical) (Detail) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Property, plant and equipment, impairment loss | $ 471,000 | $ 60,000 | |||
Intangible assets, total impairment losses | 57,000 | 5,000 | |||
Prepaid licensing and royalty, total impairment losses | 1,386,000 | 4,187,000 | |||
Fair Value, Measurements, Nonrecurring | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Cost method investment, carrying amount | $ 52,000 | ||||
Cost method investment, written down | 0 | ||||
Cost method investment, impairment charges | $ 52,000 | [1] | $ 52,000 | ||
Property, plant and equipment, impairment loss | [2] | 471,000 | |||
Intangible assets, total impairment losses | [3] | 57,000 | |||
Prepaid licensing and royalty, written down | 0 | ||||
Prepaid licensing and royalty, total impairment losses | $ 1,400,000 | ||||
[1] | Impairment losses on certain cost method investments which were determined to be impaired: In 2017, certain cost method investment with carrying amounts of $52 thousand was considered fully impaired as it has incurred consecutive losses but unable to reduce cash burn, and thus its cash was expected to be depleted within months. Therefore it was fully written down to zero, resulting in an impairment charge of $52 thousand. The impairment charges are included in non-operating expenses within “impairment loss on marketable securities and investments” in the consolidated statements of operations. | ||||
[2] | Impairment losses on certain property, plant, and equipment which were determined to be impaired: In 2016, we recognized an impairment loss of $471 thousand on property, plant and equipment as a result of consecutive operating losses in recent years that are expected to continue and therefore the carrying amounts of those long-lived assets would not be recoverable based on cash flow projections from current games, which are typically with shorter lives. | ||||
[3] | Impairment losses on certain intangible assets which were determined to be impaired: In 2016, we recognized an impairment loss of $57 thousand on intangible assets as a result of consecutive operating losses in recent years that are expected to continue and therefore the carrying amounts of those intangibles assets would not be recoverable based on cash flow projections from current games, which are typically with shorter lives. |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Cash And Cash Equivalents [Abstract] | ||||
Cash and savings accounts | $ 63,664 | $ 65,705 | ||
Time deposits | 6 | 6 | ||
Cash and cash equivalents reported on the consolidated balance sheets | 63,670 | 65,711 | ||
Restricted cash | 507 | 500 | ||
Total cash, restricted cash and cash equivalents reported on the consolidated statements of cash flows | $ 64,177 | $ 66,211 | $ 72,432 | $ 59,631 |
Cash, Restricted Cash and Cas70
Cash, Restricted Cash and Cash Equivalents - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Performance Bonds | Restricted Cash | ||
Cash and Cash Equivalents [Line Items] | ||
Escrow Deposit | $ 507 | $ 500 |
Cash and Cash Equivalents, As w
Cash and Cash Equivalents, As well As Restricted, Cash in Bank Accounts Jurisdictions of Major Financial Institutions (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents and Restricted cash | $ 64,177 | $ 66,211 | $ 72,432 | $ 59,631 |
Taiwan | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents and Restricted cash | 62,350 | 65,093 | ||
Hong Kong | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents and Restricted cash | 1,811 | 1,102 | ||
China | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents and Restricted cash | $ 16 | $ 16 |
Marketable Securities Current (
Marketable Securities Current (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Investments Debt And Equity Securities [Abstract] | |
Equity securities, classified as available-for-sale | $ 3 |
Marketable Securities - Current
Marketable Securities - Current - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule Of Available For Sale Securities [Line Items] | |||
Realized gains from disposal of marketable securities | $ 2,000 | $ 19,939,000 | |
Available for sale Securities Current | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Unrealized gains for marketable securities | 0 | $ 2,000 | |
Realized gains from disposal of marketable securities | $ 2,000 | $ 0 | $ 14,100,000 |
Accounts Receivable (Detail)
Accounts Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | ||
Accounts receivable | $ 763 | $ 903 |
Less: Allowance for doubtful accounts | (12) | (32) |
Accounts receivable - net | $ 751 | $ 871 |
Summary of the Changes in Allow
Summary of the Changes in Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Receivables [Abstract] | |||
Balance at beginning of year | $ 32 | $ 29 | $ 56 |
Additions: Bad debt expense | 127 | 35 | 3 |
Less: Write-offs | (149) | (33) | (28) |
Translation adjustment | 2 | 1 | (2) |
Balance at end of year | $ 12 | $ 32 | $ 29 |
Other Current Assets (Detail)
Other Current Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Other Assets [Abstract] | ||||
Loans receivable - current | $ 64 | $ 65 | ||
Less: Allowance for loans receivable - current | (30) | (28) | $ (28) | $ (27) |
Other receivables (Note 4) | 34 | 1,062 | ||
Other | 125 | 151 | ||
Other current assets | $ 193 | $ 1,250 |
Reconciliation of Changes in Al
Reconciliation of Changes in Allowance for Loans Receivable Current (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Receivables [Abstract] | |||
Balance at beginning of year | $ 28 | $ 28 | $ 27 |
Reversal for collection of bad debt | 2 | ||
Translation adjustment | 2 | 0 | (1) |
Balance at end of year | $ 30 | $ 28 | $ 28 |
Marketable Debt Securities - No
Marketable Debt Securities - Noncurrent - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2015 | Dec. 31, 2016 | |
Schedule Of Available For Sale Securities [Line Items] | |||
Marketable securities-noncurrent | $ 0 | $ 0 | |
Realized gains (losses) from disposal of marketable securities | $ 2,000 | $ 19,939,000 | |
Available for sale Securities Non Current | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Realized gains (losses) from disposal of marketable securities | $ 5,800,000 |
Equity Investments (Detail)
Equity Investments (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Schedule Of Investments [Abstract] | |
Investments accounted for under the equity method | $ 72 |
Equity Investments - Additional
Equity Investments - Additional Information (Detail) | 1 Months Ended | ||
Nov. 30, 2016 | Mar. 31, 2017 | Feb. 28, 2017 | |
East Gate Media Contents and Technology Fund | |||
Schedule of Investments [Line Items] | |||
Investments percentages accounted under equity method accounting | 17.65% | ||
Sale of ownership under agreement | 17.65% | ||
Double2 Network Technology Company Limited | |||
Schedule of Investments [Line Items] | |||
Investments percentages accounted under equity method accounting | 22.86% | ||
Percentage of equity interest diluted | 11.43% |
Summary of Financial Informatio
Summary of Financial Information of East Gate (Detail) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended |
Nov. 30, 2016 | Dec. 31, 2015 | |
Equity Method Investments And Joint Ventures [Abstract] | ||
Investments and other related assets | $ 7,911 | |
Other assets | 332 | |
Total assets | 8,243 | |
Total liabilities | 318 | |
Total net assets of the fund | 7,925 | |
Investment and related income (loss) | (1,513) | $ 5,419 |
Impairment loss | (105) | |
Other costs and expenses | (7,513) | (8,219) |
Net loss | $ (9,131) | $ (2,800) |
Property, Plant and Equipment -
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Jan. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property Plant And Equipment [Abstract] | ||||
Proceeds from disposals of office premises | $ 1,900 | |||
Gain on disposal of office premises | $ 798 | |||
Impairment loss on property and equipment | $ 471 | $ 60 |
Reconciliation of Beginning and
Reconciliation of Beginning and Ending Amounts of Property, Plant and Equipment (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Property, Plant and Equipment [Line Items] | |
Balance at beginning of year, Cost | $ 5,165 |
Purchase, Cost | 496 |
Deconsolidation (Note 4), Cost | (104) |
Impairment (Note 6), Cost | (3,423) |
Exchange differences, Cost | 85 |
Balance at end of year, Cost | 7 |
Balance at beginning of the year, Accumulated depreciation | 3,774 |
Depreciation, Accumulated depreciation | 162 |
Deconsolidation (Note 4), Accumulated depreciation | (33) |
Impairment (Note 6), Accumulated depreciation | (2,952) |
Exchange differences, Accumulated depreciation | 62 |
Balance at beginning of year, Net | 1,391 |
Purchase, Net | 496 |
Depreciation, Net | (162) |
Disposal of office premises, Net | (1,076) |
Disposal of other property, plant and equipment, Net | (123) |
Deconsolidation (Note 4), Net | (71) |
Impairment (Note 6), Net | (471) |
Exchange differences, Net | 23 |
Balance at end of year, Net | 7 |
Office Premises | |
Property, Plant and Equipment [Line Items] | |
Disposal of office premises, Cost | (1,120) |
Disposal of office premises, Accumulated depreciation | (44) |
Other Property, Plant and Equipment | |
Property, Plant and Equipment [Line Items] | |
Disposal of office premises, Cost | (1,092) |
Disposal of office premises, Accumulated depreciation | $ (969) |
Short-Term Borrowings - Additio
Short-Term Borrowings - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Short Term Debt [Line Items] | ||
Short-term borrowings | $ 2,480 | |
Short-term borrowings, weighted-average interest rate | 1.86% | |
Unused lines of credit available for borrowing | $ 7,600 | $ 17,000 |
Maximum | ||
Short Term Debt [Line Items] | ||
Short-term borrowings, annual interest rate | 2.13% | |
Minimum | ||
Short Term Debt [Line Items] | ||
Short-term borrowings, annual interest rate | 1.70% | |
Maturity Date One | ||
Short Term Debt [Line Items] | ||
Short-term borrowings, maturity date | 2017-01 | |
Maturity Date Two | ||
Short Term Debt [Line Items] | ||
Short-term borrowings, maturity date | 2017-05 |
Accrued Expenses (Detail)
Accrued Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Payables And Accruals [Abstract] | ||
Accrued advertising expenses | $ 371 | $ 1,961 |
Accrued professional fees | 580 | 765 |
Accrued royalties | 502 | 350 |
Accrued director compensation and liability insurance | 256 | 272 |
Other | 449 | 480 |
Accrued expenses | $ 2,158 | $ 3,828 |
Pension Benefits - Additional I
Pension Benefits - Additional Information (Detail) | 12 Months Ended | ||||
Dec. 31, 2017USD ($) | Dec. 31, 2017TWD ($) | Dec. 31, 2017HKD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Accumulated benefit obligation | $ 211,000 | $ 185,000 | |||
Prepaid pension | 70,000 | 62,000 | |||
Fair value of plan assets | 365,000 | 325,000 | |||
Accumulated other comprehensive income (loss) | (69,000) | (58,000) | |||
Net periodic benefit cost (income) | 0 | (2,000) | $ (58,000) | ||
Defined benefit plan, expected contribution in 2018 | 8,000 | ||||
Benefit payments from 2018 to 2022 | 1,000 | ||||
Benefit payments from 2023 to 2027 | 12,000 | ||||
Pension Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total amount of defined contribution pension expenses | $ 190,000 | 183,000 | 318,000 | ||
Taiwan | Pension Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Percentage of salaries and wages contributed | 2.00% | 2.00% | 2.00% | ||
Hong Kong | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Percentage of salaries and wages contributed | 5.00% | 5.00% | 5.00% | ||
Accounting Standards Update 2017-07 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic benefit cost (income) | $ 2,000 | $ 58,000 | |||
Maximum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Lump sum retirement benefit, equivalent months of pensionable salary | 45 months | 45 months | 45 months | ||
Maximum | Taiwan | Monthly Payment | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Maximum monthly contribution for each employee | $ 302 | $ 9,000 | |||
Maximum | Hong Kong | Monthly Payment | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Maximum monthly contribution for each employee | $ 192 | $ 1,500 | |||
Minimum | Taiwan | Pension Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Percentage of salaries and wages contributed | 6.00% | 6.00% | 6.00% | ||
For each of first 15 years of service | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Lump sum retirement benefit, equivalent months of pensionable salary | 2 months | 2 months | 2 months | ||
For each year of service thereafter | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Lump sum retirement benefit, equivalent months of pensionable salary | 1 month | 1 month | 1 month |
Plan's Benefit Obligations, Fai
Plan's Benefit Obligations, Fair Value of Plan Assets, and Funded Status (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Compensation And Retirement Disclosure [Abstract] | ||
Benefit Obligation | $ 295 | $ 263 |
Fair value of plan assets | 365 | 325 |
Defined Benefit Plan, Funded Status of Plan | (70) | (62) |
Noncurrent liabilities (assets) | (70) | (62) |
Net amount recognized | (70) | (62) |
Amounts recognized in accumulated comprehensive income (loss) consist of: | ||
Unrecognized net gain (loss) | $ (69) | $ (58) |
Pension Cost (Detail)
Pension Cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Compensation And Retirement Disclosure [Abstract] | |||
Interest cost | $ 4 | $ 4 | $ 5 |
Expected return on plan assets | (5) | (6) | (6) |
Amortization of net loss | 1 | ||
Curtailment gain | (57) | ||
Net periodic benefit cost (income) | $ 0 | $ (2) | $ (58) |
Weighted Average Assumptions Us
Weighted Average Assumptions Used to Determine Benefit Obligations (Detail) | Dec. 31, 2017 | Dec. 31, 2016 |
Compensation And Retirement Disclosure [Abstract] | ||
Discount rate | 1.625% | 1.375% |
Rate of compensation increase | 2.00% | 2.00% |
Schedule of Weighted-Average As
Schedule of Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost (Detail) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | ||
Discount rate | 1.375% | 1.875% |
Rate of return on plan assets | 1.375% | 1.875% |
Rate of compensation increase | 2.00% | 1.50% |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) $ in Millions | Dec. 16, 2015 | Dec. 31, 2017USD ($)Vote | Dec. 31, 2016USD ($) |
Class of Stock [Line Items] | |||
Number of votes per share | Vote | 1 | ||
Reverse stock split | 1-for-5 | ||
Effective date of stock split | Dec. 16, 2015 | ||
Reverse stock split conversion ratio | 0.2 | ||
Hoshin GigaMedia Center Inc. | |||
Class of Stock [Line Items] | |||
Appropriation percentage of net profit for statutory surplus reserve | 10.00% | ||
Legal reserves | $ | $ 1.5 | $ 1.5 | |
Hoshin GigaMedia Center Inc. | Maximum | |||
Class of Stock [Line Items] | |||
Statutory Surplus Reserve Fund percentage of aggregate paid-in capital | 50.00% | ||
Hoshin GigaMedia Center Inc. | when the reserve balance has reached 50 percent of the aggregate paid-in capital of Hoshin GigaMedia | Maximum | |||
Class of Stock [Line Items] | |||
Percentage of statutory surplus reserve available to offset a deficit or be distributed as a stock dividend | 50.00% |
Accumulated Balances of Other C
Accumulated Balances of Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | $ (22,611) | $ (22,335) | $ (11,487) |
Net current period change | 630 | (54) | 8,435 |
Reclassification adjustments for gains reclassified into income | (2) | (222) | (19,283) |
Ending balance | (21,983) | (22,611) | (22,335) |
Foreign currency items | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (22,555) | (22,338) | (22,876) |
Net current period change | 641 | 5 | (118) |
Reclassification adjustments for gains reclassified into income | (222) | 656 | |
Ending balance | (21,914) | (22,555) | (22,338) |
Unrealized gain on securities | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | 2 | 3 | 11,389 |
Net current period change | (1) | 8,553 | |
Reclassification adjustments for gains reclassified into income | (2) | (19,939) | |
Ending balance | 2 | $ 3 | |
Pension and post retirement benefit plans | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (58) | ||
Net current period change | (11) | (58) | |
Ending balance | $ (69) | $ (58) |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ (7,000) | $ 9,000 | $ 65,000 |
Stock-based compensation tax benefit recognized | $ 299,000 | $ 276,000 | |
Share-based compensation, number of shares reserved for issuance, contractual terms | 6 years 3 days | 5 years 9 months | |
Share-based compensation, number of options exercised | 0 | 0 | 0 |
Options granted to employees on grant date | 0 | ||
Unrecognized compensation cost related to nonvested options | $ 4,000 | ||
Unrecognized compensation cost related to nonvested options, expected recognition period | 11 months 8 days | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of RSUs granted | $ 0 | $ 0 | $ 0 |
Unrecognized compensation cost related to nonvested RSUs | 0 | 0 | |
Cash received from employee stock award vesting and the forfeiture of RSUs | $ 0 | 0 | 0 |
2004 Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, number of shares reserved for issuance | 1,400,000 | ||
Share-based compensation, number of shares reserved for issuance, contractual terms | 10 years | ||
2006 Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, number of shares reserved for issuance | 200,000 | ||
Share-based compensation, number of shares reserved for issuance, contractual terms | 10 years | ||
2007 Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, number of shares reserved for issuance | 400,000 | ||
Share-based compensation, number of shares reserved for issuance, contractual terms | 10 years | ||
2008 Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, number of shares reserved for issuance | 200,000 | ||
Share-based compensation, number of shares reserved for issuance, contractual terms | 10 years | ||
2008 Employee Share Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares subscribed by qualified employees | 0 | ||
2008 Employee Share Purchase Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, number of shares reserved for issuance | 40,000 | ||
2009 Equity Incentive Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, number of shares reserved for issuance | 300,000 | ||
Share-based compensation, number of shares reserved for issuance, contractual terms | 10 years | ||
2009 Employee Share Purchase Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, number of shares reserved for issuance | 40,000 | ||
Share-based compensation, number of shares issued | 0 | ||
2010 Equity Incentive Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, number of shares reserved for issuance | 200,000 | ||
Share-based compensation, number of shares reserved for issuance, contractual terms | 10 years | ||
2010 Employee Share Purchase Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, number of shares reserved for issuance | 40,000 | ||
Share-based compensation, number of shares issued | 0 | ||
Capitalized stock-based compensation | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 0 | 0 | |
Stock-based compensation tax benefit recognized | 0 | 0 | 0 |
General and Administrative Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ (7,000) | $ 9,000 | $ 65,000 |
Summary of General Terms of Sto
Summary of General Terms of Stock-Based Compensation Plans for Awards Granted (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2015 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted awards | 4,000 | 12,000 | |
Options' exercise price | $ 3 | $ 3.85 | |
2004 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted awards | [1] | 1,575,037 | |
Vesting schedule | immediately upon granting to four years | ||
2004 Plan | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options' exercise price | $ 3.95 | ||
2004 Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options' exercise price | $ 12.75 | ||
2006 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted awards | [2] | 256,716 | |
Vesting schedule | immediately upon granting to four years | ||
2006 Plan | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options' exercise price | $ 3.85 | ||
2006 Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options' exercise price | 83 | ||
2006 Plan | Restricted Stock Units (RSUs) | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
RSUs' grant date fair value | 14.55 | ||
2006 Plan | Restricted Stock Units (RSUs) | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
RSUs' grant date fair value | $ 80.05 | ||
2007 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted awards | [3] | 675,057 | |
Vesting schedule | immediately upon granting to four years | ||
2007 Plan | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options' exercise price | $ 2.90 | ||
2007 Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options' exercise price | 90.85 | ||
2007 Plan | Restricted Stock Units (RSUs) | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
RSUs' grant date fair value | 12.35 | ||
2007 Plan | Restricted Stock Units (RSUs) | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
RSUs' grant date fair value | $ 76.75 | ||
2008 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted awards | 200,000 | ||
Vesting schedule | immediately upon granting to six years | ||
2008 Plan | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options' exercise price | $ 12.35 | ||
2008 Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options' exercise price | $ 21.2 | ||
2009 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted awards | [4] | 500,000 | |
Vesting schedule | immediately upon granting to four years | ||
2009 Plan | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options' exercise price | $ 4.775 | ||
2009 Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options' exercise price | $ 12.35 | ||
2010 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted awards | [5] | 440,000 | |
Vesting schedule | three years | ||
2010 Plan | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options' exercise price | $ 4.0505 | ||
2010 Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options' exercise price | $ 5.7 | ||
[1] | The granted awards, net of forfeited or canceled options, were within reserved shares of 1,400 thousand common shares. | ||
[2] | The granted awards, net of forfeited or canceled options or shares, were within reserved shares of 200 thousand common shares. | ||
[3] | The granted awards, net of forfeited or canceled options or shares, were within reserved shares of 400 thousand common shares. | ||
[4] | The granted awards, net of forfeited or canceled options, were within reserved shares of 300 thousand common shares. | ||
[5] | The granted awards, net of forfeited or canceled options, were within reserved shares of 200 thousand common shares. |
Summary of General Terms of S95
Summary of General Terms of Stock-Based Compensation Plans for Awards Granted (Parenthetical) (Detail) - Maximum | Dec. 31, 2017shares |
2004 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share based compensation, common stock shares reserved | 1,400,000 |
2006 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share based compensation, common stock shares reserved | 200,000 |
2007 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share based compensation, common stock shares reserved | 400,000 |
2009 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share based compensation, common stock shares reserved | 300,000 |
2010 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share based compensation, common stock shares reserved | 200,000 |
Summary of Assumptions Used in
Summary of Assumptions Used in Black-Scholes Option-Pricing Model to Estimate Fair Value of Stock Options Granted (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Option term (years) | 6 years 3 days | 5 years 9 months |
Volatility | 48.997% | 49.239% |
Weighted-average volatility | 48.997% | 49.00% |
Risk-free interest rate | 2.031% | 1.506% |
Dividend yield | 0.00% | 0.00% |
Weighted-average fair value of option granted | $ 1.41 | $ 1.80 |
Summary of Option Transactions
Summary of Option Transactions (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Weighted Average Exercise Price | |||
Beginning Balance | $ 20.63 | $ 20.51 | $ 20.30 |
Options granted | 3 | 3.85 | |
Options Forfeited / canceled / expired | 26.24 | 3.85 | 5.31 |
Ending Balance | 14.78 | 20.63 | 20.51 |
Exercisable at December 31 | 34.29 | 20.57 | 21.28 |
Ending Balance | $ 14.78 | $ 20.63 | $ 20.51 |
No. of Shares | |||
Beginning Balance | 613,000 | 617,000 | 626,000 |
Options granted | 4,000 | 12,000 | |
Options exercised | 0 | 0 | 0 |
Options Forfeited / canceled / expired | (309,000) | (4,000) | (21,000) |
Ending Balance | 308,000 | 613,000 | 617,000 |
Exercisable at December 31 | 298,000 | 606,000 | 586,000 |
Vested and expected to vest at December 31 | 308,000 | 613,000 | 617,000 |
Weighted- Average Remaining Contractual Term | |||
Balance at December 31 | 2 years 6 months 10 days | ||
Exercisable at December 31 | 2 years 4 months 2 days | ||
Vested and expected to vest at December 31 | 2 years 6 months 10 days | ||
Aggregate Intrinsic Value | |||
Balance at December 31 | $ 1 | ||
Exercisable at December 31 | 0 | ||
Vested and expected to vest at December 31 | $ 1 |
Information about Stock Options
Information about Stock Options Outstanding (Detail) - $ / shares shares in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding, Exercise price | $ 14.78 | $ 20.63 | $ 20.51 | $ 20.30 |
Options outstanding, No. of Shares | 308 | |||
Option currently exercisable, Exercise price | $ 34.29 | $ 20.57 | $ 21.28 | |
Option currently exercisable, No. of Shares | 298 | |||
Range One | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding, No. of Shares | 16 | |||
Options outstanding, Weighted average remaining contractual life | 6 years 11 months 19 days | |||
Option currently exercisable, No. of Shares | 8 | |||
Range One | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding, Exercise price | $ 5 | |||
Option currently exercisable, Exercise price | $ 5 | |||
Range Two | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding, No. of Shares | 284 | |||
Options outstanding, Weighted average remaining contractual life | 2 years 4 months 6 days | |||
Option currently exercisable, No. of Shares | 282 | |||
Range Two | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding, Exercise price | $ 5 | |||
Option currently exercisable, Exercise price | 5 | |||
Range Two | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding, Exercise price | 50 | |||
Option currently exercisable, Exercise price | $ 50 | |||
Range Three | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding, No. of Shares | 8 | |||
Options outstanding, Weighted average remaining contractual life | 29 days | |||
Option currently exercisable, No. of Shares | 8 | |||
Range Three | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding, Exercise price | $ 50 | |||
Option currently exercisable, Exercise price | 50 | |||
Range Three | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding, Exercise price | 100 | |||
Option currently exercisable, Exercise price | $ 100 |
Income (Loss) Before Income Tax
Income (Loss) Before Income Taxes by Geographic Location (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting [Abstract] | |||
Taiwan operations | $ 893 | $ (1,119) | $ (13,177) |
Non-Taiwan operations | (1,478) | (6,096) | 10,475 |
LOSS BEFORE INCOME TAXES | $ (585) | $ (7,215) | $ (2,702) |
Components of Income Tax Benefi
Components of Income Tax Benefit (Expense) by Taxing Jurisdiction (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Components Of Income Tax Expense Benefit [Line Items] | |||
Current | $ (1) | $ 1,108 | $ 198 |
Deferred | 1,672 | 41 | 216 |
Total income tax benefit (expense) | 1,671 | 1,149 | 414 |
Taiwan | |||
Components Of Income Tax Expense Benefit [Line Items] | |||
Current | 1,108 | 198 | |
Total income tax benefit (expense) | 1,108 | 198 | |
Foreign Tax Authority | |||
Components Of Income Tax Expense Benefit [Line Items] | |||
Current | (1) | ||
Deferred | 1,672 | 41 | 216 |
Total income tax benefit (expense) | $ 1,671 | $ 41 | $ 216 |
Reconciliation of Effective Tax
Reconciliation of Effective Tax Rate Related to Statutory United States Federal Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Taiwan statutory rate, including taxes on income and retained earnings | 23.85% | 23.85% | 23.85% |
Foreign tax differential | 1.10% | (12.37%) | 183.28% |
Reversal of deferred withholding tax liabilities | 285.84% | ||
Tax-exempt income | (0.00%) | 3.28% | 2.71% |
Non-deductible items - bad debts | (3.08%) | (57.91%) | |
Other non-deductible expenses | (44.79%) | (1.65%) | (17.47%) |
Changes in unrecognized tax benefits | 1.10% | 6.84% | |
Adjustment for prior year payable | 0.00% | 0.04% | 0.00% |
Change in deferred tax assets and valuation allowance | 13.43% | 6.87% | (130.14%) |
Other | 6.33% | (2.12%) | 4.17% |
Effective rate | 285.76% | 15.92% | 15.33% |
Significant Components of Defer
Significant Components of Deferred Tax Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | ||||
Net operating loss carryforwards | $ 9,178 | $ 9,730 | ||
Prepaid licensing and royalty fees | 5 | 952 | ||
Investments | 135 | 501 | ||
Intangible assets and goodwill | 183 | 226 | ||
Share-based compensation | 299 | 276 | ||
Other | 128 | 167 | ||
Deferred Tax Assets, Gross, Total | 9,928 | 11,852 | ||
Less: valuation allowance | (9,928) | (11,852) | $ (11,025) | $ (7,147) |
Deferred tax assets - net | $ 0 | $ 0 |
Significant Components of De103
Significant Components of Deferred Tax Liabilities (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Income Tax Disclosure [Abstract] | |
Investment in subsidiaries, principally due to undistributed income | $ 1,671 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Oct. 31, 2017 | |
Income Tax Contingency [Line Items] | |||||
Reversal of deferred income tax liabilities potential withholding tax | $ 1,671,000 | ||||
Corporate income tax rate | 17.00% | ||||
Change in tax rate for undistributed portion of earnings | 10.00% | ||||
Unrecognized tax benefits that if recognized would affect the effective tax rate | $ 0 | $ 0 | $ 1,200,000 | ||
Unrecognized tax benefits that if recognized would be offset by a valuation allowance | 1,100,000 | 0 | 0 | ||
Unrecognized tax benefits, income tax penalties and interest expense | $ 0 | $ 0 | $ 0 | ||
Scenario Plan | |||||
Income Tax Contingency [Line Items] | |||||
Corporate income tax rate | 20.00% | ||||
Change in tax rate for undistributed portion of earnings | 5.00% | ||||
Taiwan | Undistributed Foreign Earnings | |||||
Income Tax Contingency [Line Items] | |||||
Tax loss carryforward period | 10 years |
Reconciliation of Beginning 105
Reconciliation of Beginning and Ending Amounts of Valuation Allowance on Deferred Tax Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Valuation Allowance [Line Items] | |||
Balance at beginning of year | $ 11,852 | $ 11,025 | $ 7,147 |
Subsequent reversal and utilization of valuation allowance | (3,352) | (753) | |
Additions to valuation allowance | 745 | 1,739 | 4,185 |
Exchange differences | 683 | 153 | (307) |
Balance at end of year | $ 9,928 | 11,852 | $ 11,025 |
Divestiture | |||
Valuation Allowance [Line Items] | |||
Divestitures | $ (312) |
Net Operating Loss Carryforward
Net Operating Loss Carryforwards available to Offset Future Taxable Income (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Operating Loss Carryforwards [Line Items] | |
Amount | $ 46,396 |
Hong Kong | |
Operating Loss Carryforwards [Line Items] | |
Amount | $ 15,444 |
Expiring year | Indefinite |
Taiwan | |
Operating Loss Carryforwards [Line Items] | |
Amount | $ 30,952 |
Taiwan | Earliest Tax Year | |
Operating Loss Carryforwards [Line Items] | |
Expiring year | 2,020 |
Taiwan | Latest Tax Year | |
Operating Loss Carryforwards [Line Items] | |
Expiring year | 2,027 |
Accumulated Statutory Losses av
Accumulated Statutory Losses available to Offset Future Undistributed Earnings (Detail) - Taiwan $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Accumulated Statutory Losses [Line Items] | |
Amount | $ 19,920 |
Expiring year | indefinite |
Reconciliation of Beginning 108
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits Excluding Effects of Accrued Interest (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $ 1,024 | $ 1,203 | $ 8,287 |
Increase related to prior year tax positions | 1,025 | ||
Decrease related to prior year tax positions | (185) | ||
Settlement | (6,830) | ||
Expiration of statute of limitations | (1,225) | ||
Exchange differences | 86 | 21 | (69) |
Balance at end of year | $ 1,110 | $ 1,024 | $ 1,203 |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Double2 Network Technology Co., Ltd. | |
Related Party Transaction [Line Items] | |
Software development cost | $ 108 |
Future Aggregate Minimum Lease
Future Aggregate Minimum Lease Payments Required Under Operating Lease (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Leases [Abstract] | |
2,018 | $ 499 |
2,019 | 456 |
2,020 | 438 |
2,021 | 73 |
Operating Leases, Future Minimum Payments Due, Total | $ 1,466 |
Commitment and Contingencies -
Commitment and Contingencies - Additional Information (Detail) $ in Thousands, $ in Thousands | Jan. 15, 2018USD ($) | Jan. 15, 2018TWD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Operating Leased Assets [Line Items] | |||||
Operating leases, Rental expenses | $ 577 | $ 821 | $ 909 | ||
Subsequent Event | |||||
Operating Leased Assets [Line Items] | |||||
Loss contingency, Obligated payment | $ 2,697,471 | $ 79,477,648 |
Committed License Fees and Mini
Committed License Fees and Minimum Guarantees Against Future Royalties Set Forth in Significant License Agreements (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Guarantee Obligations [Line Items] | |
In 2,018 | $ 460 |
Contractual Obligation, Total | 460 |
License Fees | |
Guarantee Obligations [Line Items] | |
In 2,018 | 60 |
Contractual Obligation, Total | 60 |
Royalty Payments | |
Guarantee Obligations [Line Items] | |
In 2,018 | 400 |
Contractual Obligation, Total | $ 400 |
Segment, Product, Geographic113
Segment, Product, Geographic and Other Information - Additional Information (Detail) - Segment | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting [Abstract] | |||
Number of operating segments | 1 | 1 | 2 |
Reconciliation of Segment Infor
Reconciliation of Segment Information to Consolidated Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Net revenue from external customers | $ 11,596 | $ 8,971 | $ 10,251 |
Loss from operations | (490) | (7,132) | (20,053) |
Share-based compensation | (7) | 9 | 65 |
Impairment loss on property and equipment | 471 | 60 | |
Impairment loss on intangible assets | 57 | 5 | |
Impairment loss on prepaid licensing and royalty fees | 1,386 | 4,187 | |
Interest income | 602 | 302 | 333 |
Interest expense | 34 | 81 | 182 |
Gain on disposal of marketable securities - net | 2 | 19,939 | |
Foreign exchange gain (loss) | (551) | (301) | (397) |
Net gain (loss) on equity investments | (24) | (1,731) | (600) |
Impairment loss on marketable securities and investments | 52 | 1,290 | |
Depreciation | 43 | 162 | 294 |
Amortization, including intangible assets | 12 | 111 | 245 |
Income tax expense (benefits) | (1,671) | (1,149) | (414) |
Digital entertainment | |||
Segment Reporting Information [Line Items] | |||
Net revenue from external customers | 11,596 | 8,971 | 8,545 |
Loss from operations | 1,747 | (3,924) | (12,735) |
Share-based compensation | 1 | 3 | 6 |
Impairment loss on property and equipment | 288 | ||
Impairment loss on intangible assets | 53 | ||
Impairment loss on prepaid licensing and royalty fees | 1,386 | 4,187 | |
Interest income | 1 | 2 | 12 |
Interest expense | 1 | 128 | |
Gain on disposal of marketable securities - net | 2 | 19,939 | |
Foreign exchange gain (loss) | (148) | (174) | (145) |
Net gain (loss) on equity investments | (24) | (1,731) | (600) |
Impairment loss on marketable securities and investments | 52 | 1,290 | |
Depreciation | 43 | 142 | 233 |
Amortization, including intangible assets | 12 | 93 | 212 |
Income tax expense (benefits) | (14) | ||
Cloud service | |||
Segment Reporting Information [Line Items] | |||
Net revenue from external customers | 1,706 | ||
Loss from operations | (1,240) | ||
Share-based compensation | (23) | ||
Impairment loss on property and equipment | 60 | ||
Impairment loss on intangible assets | 5 | ||
Interest expense | 1 | ||
Depreciation | 40 | ||
Amortization, including intangible assets | 32 | ||
Income tax expense (benefits) | 0 | ||
Reportable Segment | |||
Segment Reporting Information [Line Items] | |||
Net revenue from external customers | 10,251 | ||
Loss from operations | 1,747 | (3,924) | (13,975) |
Share-based compensation | 1 | 3 | (17) |
Impairment loss on property and equipment | 288 | 60 | |
Impairment loss on intangible assets | 53 | 5 | |
Impairment loss on prepaid licensing and royalty fees | 1,386 | 4,187 | |
Interest income | 1 | 2 | 12 |
Interest expense | 1 | 129 | |
Gain on disposal of marketable securities - net | 2 | 19,939 | |
Foreign exchange gain (loss) | (148) | (174) | (145) |
Net gain (loss) on equity investments | (24) | (1,731) | (600) |
Impairment loss on marketable securities and investments | 52 | 1,290 | |
Depreciation | 43 | 142 | 273 |
Amortization, including intangible assets | $ 12 | $ 93 | 244 |
Income tax expense (benefits) | $ (14) |
Reconciliations of Segment Info
Reconciliations of Segment Information to Consolidated Totals (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Segment Reporting Information [Line Items] | ||||
Loss from operations | $ (490) | $ (7,132) | $ (20,053) | |
Share-based compensation | (7) | 9 | 65 | |
Impairment loss on property and equipment | 471 | 60 | ||
Impairment loss on intangible assets | 57 | 5 | ||
Impairment loss on prepaid licensing and royalty fees | 1,386 | 4,187 | ||
Interest income | 602 | 302 | 333 | |
Interest expense | 34 | 81 | 182 | |
Gain on disposal of marketable securities - net | 2 | 19,939 | ||
Foreign exchange gain (loss) | (551) | (301) | (397) | |
Net gain (loss) on equity investments | (24) | (1,731) | (600) | |
Impairment loss on marketable securities and investments | 52 | 1,290 | ||
Depreciation | 43 | 162 | 294 | |
Amortization | 12 | 111 | 245 | |
Income tax expense (benefit) | (1,671) | (1,149) | (414) | |
Reportable Segment | ||||
Segment Reporting Information [Line Items] | ||||
Loss from operations | 1,747 | (3,924) | (13,975) | |
Share-based compensation | 1 | 3 | (17) | |
Impairment loss on property and equipment | 288 | 60 | ||
Impairment loss on intangible assets | 53 | 5 | ||
Impairment loss on prepaid licensing and royalty fees | 1,386 | 4,187 | ||
Interest income | 1 | 2 | 12 | |
Interest expense | 1 | 129 | ||
Gain on disposal of marketable securities - net | 2 | 19,939 | ||
Foreign exchange gain (loss) | (148) | (174) | (145) | |
Net gain (loss) on equity investments | (24) | (1,731) | (600) | |
Impairment loss on marketable securities and investments | 52 | 1,290 | ||
Depreciation | 43 | 142 | 273 | |
Amortization | 12 | 93 | 244 | |
Income tax expense (benefit) | (14) | |||
Adjustment | ||||
Segment Reporting Information [Line Items] | ||||
Loss from operations | [1] | (2,237) | (3,208) | (6,078) |
Share-based compensation | [2] | (8) | 6 | 82 |
Impairment loss on property and equipment | [2] | 183 | ||
Impairment loss on intangible assets | [2] | 4 | ||
Interest income | [2] | 601 | 300 | 321 |
Interest expense | [2] | 33 | 81 | 53 |
Foreign exchange gain (loss) | [2] | (403) | (127) | (252) |
Depreciation | [2] | 20 | 21 | |
Amortization | [2] | 18 | 1 | |
Income tax expense (benefit) | [2] | $ (1,671) | $ (1,149) | $ (400) |
[1] | Adjustment items include corporate and certain back-office costs and expenses not attributable to any specific segment. For the years ended December 31, 2015, 2016 and 2017, the compensation related items were approximately $1.3 million $1.6 million and $1.3 million, respectively; professional fees were approximately $587 thousand $612 thousand and $365 thousand, respectively; the termination charge of proposed acquisition of $2.0 million in 2015 were also included in the adjustments. | |||
[2] | Adjustment items include corporate and certain back-office costs and expenses not attributable to any specific segment. |
Reconciliations of Segment I116
Reconciliations of Segment Information to Consolidated Totals (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Termination of proposed acquisition | $ (2,000) | ||
Adjustment | |||
Segment Reporting Information [Line Items] | |||
Compensation expense | $ 1,300 | $ 1,600 | 1,300 |
Professional fees | $ 365 | $ 612 | 587 |
Termination of proposed acquisition | $ (2,000) |
Revenues From Major Product Lin
Revenues From Major Product Lines (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue from External Customer [Line Items] | |||
Revenue | $ 11,596 | $ 8,971 | $ 10,251 |
MahJong and Casino Casual Games | |||
Revenue from External Customer [Line Items] | |||
Revenue | 2,364 | 2,459 | 3,113 |
PC Massively Multiplayer Online Games | |||
Revenue from External Customer [Line Items] | |||
Revenue | 1,400 | 1,560 | 1,670 |
Mobile Role Playing Games | |||
Revenue from External Customer [Line Items] | |||
Revenue | 7,776 | 4,674 | 2,807 |
Other games and game related revenues | |||
Revenue from External Customer [Line Items] | |||
Revenue | $ 56 | $ 278 | 955 |
Cloud Computing Services | |||
Revenue from External Customer [Line Items] | |||
Revenue | $ 1,706 |
Revenue from Unaffiliated Custo
Revenue from Unaffiliated Customers by Geographic Region (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 11,596 | $ 8,971 | $ 10,251 |
Taiwan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 2,349 | 2,664 | 6,889 |
Hong Kong | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 9,247 | $ 6,307 | $ 3,362 |
Net Long-Lived Assets by Geogra
Net Long-Lived Assets by Geographic Region (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net long-lived assets | $ 158 | $ 7 | $ 1,391 |
Taiwan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net long-lived assets | 62 | $ 7 | 1,320 |
Hong Kong | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net long-lived assets | $ 96 | $ 71 |