Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2019 |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Trading Symbol | GIGM |
Security Exchange Name | NASDAQ |
Entity Registrant Name | GIGAMEDIA Ltd |
Entity Incorporation, State or Country Code | U0 |
Entity Central Index Key | 0001105101 |
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 Shell Company | false |
Entity Emerging Growth Company | false |
Entity Voluntary Filers | No |
Entity Interactive Data Current | Yes |
Entity Common Stock, Shares Outstanding | 11,052,235 |
Title of 12(b) Security | Ordinary Shares |
Entity File Number | 000-30540 |
Entity Address, Address Line One | 8 TH FLOOR, NO. 22 |
Entity Address, Address Line Two | LANE 407 |
Entity Address, Address Line Three | SECTION 2 TIDING BOULEVARD |
Entity Address, City or Town | TAIPEI |
Entity Address, Country | TW |
Document Accounting Standard | U.S. GAAP |
Business Contact | |
Document Information [Line Items] | |
Entity Address, Address Line One | 8 TH FLOOR, NO. 22 |
Entity Address, Address Line Two | LANE 407 |
Entity Address, Address Line Three | SECTION 2 TIDING BOULEVARD |
Entity Address, City or Town | TAIPEI |
Entity Address, Country | TW |
Contact Personnel Name | CHENG-MING HUANG |
City Area Code | 886 |
Local Phone Number | 2-2656-8000 |
Contact Personnel Fax Number | 2-2656-8003 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
CURRENT ASSETS | ||
Cash and cash equivalents (Note 5) | $ 57,743 | $ 59,308 |
Accounts receivable - net (Note 6) | 368 | 523 |
Prepaid expenses | 112 | 122 |
Restricted cash (Note 5) | 531 | 518 |
Other current assets (Note 7) | 139 | 124 |
Total Current Assets | 58,893 | 60,595 |
PROPERTY, PLANT AND EQUIPMENT, NET | 121 | |
INTANGIBLE ASSETS - NET | 38 | |
OTHER ASSETS | ||
Refundable deposits | 199 | 197 |
Prepaid licensing and royalty fees (Note 3) | 44 | 435 |
Other (Note 11) | 86 | 59 |
TOTAL ASSETS | 59,222 | 61,445 |
CURRENT LIABILITIES | ||
Accounts payable | 64 | 104 |
Accrued expenses (Note 9) | 1,280 | 1,433 |
Deferred revenue (Note 10) | 1,365 | 1,370 |
Other current liabilities (Notes 8 and 16) | 875 | 366 |
Total Current Liabilities | 3,584 | 3,273 |
NONCURRENT LIABILITIES | ||
Lease liabilities (Note 8) | 94 | |
Total Liabilities | 3,678 | 3,273 |
COMMITMENTS AND CONTINGENCIES (Note 16) | ||
SHAREHOLDERS' EQUITY (Note 12) | ||
Common shares, no par value, and additional paid-in capital; issued and outstanding 11,052 thousand shares in 2018 and 2019 | 308,751 | 308,750 |
Accumulated deficit | (230,961) | (228,246) |
Accumulated other comprehensive loss | (22,246) | (22,332) |
Total GigaMedia Shareholders’ Equity | 55,544 | 58,172 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 59,222 | $ 61,445 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
OPERATING REVENUES | |||
Sales Revenue Net | $ 6,645 | $ 7,101 | $ 11,596 |
Type of Revenue [Extensible List] | gigm:DigitalEntertainmentServiceRevenuesMember | gigm:DigitalEntertainmentServiceRevenuesMember | |
COSTS OF REVENUES | |||
Cost of goods and services sold | (3,064) | $ (3,585) | $ (5,098) |
Type of Cost, Good or Service [Extensible List] | gigm:DigitalEntertainmentServiceRevenuesMember | gigm:DigitalEntertainmentServiceRevenuesMember | |
GROSS PROFIT | 3,581 | $ 3,516 | $ 6,498 |
OPERATING EXPENSES | |||
Product development and engineering expenses | (1,186) | (1,091) | (1,072) |
Selling and marketing expenses | (1,995) | (3,297) | (3,993) |
General and administrative expenses | (3,182) | (3,684) | (3,528) |
Impairment loss on property, plant and equipment (Note 4) | (109) | ||
Impairment loss on intangible assets (Note 4) | (15) | ||
Impairment loss on prepaid licensing and royalty fees (Notes 3 and 4) | (85) | (244) | |
Gain on termination of licensing agreement (Note 3) | 1,732 | ||
Bad debt expense (Note 6) | (24) | (23) | (127) |
Operating Expenses | (6,596) | (8,339) | (6,988) |
LOSS FROM OPERATIONS | (3,015) | (4,823) | (490) |
NON-OPERATING INCOME (EXPENSES) | |||
Interest income | 1,483 | 1,302 | 602 |
Interest expense | (34) | ||
Foreign exchange gain (loss), net | (68) | 267 | (551) |
Net loss on equity investments | (24) | ||
Impairment loss on investments | (52) | ||
Other | (59) | 61 | (36) |
Nonoperating Income (Expense), Total | 1,356 | 1,630 | (95) |
LOSS BEFORE INCOME TAXES | (1,659) | (3,193) | (585) |
INCOME TAX BENEFIT (Note 15) | 1,671 | ||
NET INCOME (LOSS) ATTRIBUTABLE TO SHAREHOLDERS OF GIGAMEDIA | $ (1,659) | $ (3,193) | $ 1,086 |
EARNINGS (LOSS) PER SHARE ATTRIBUTABLE TO GIGAMEDIA | |||
Basic and Diluted: | $ (0.15) | $ (0.29) | $ 0.10 |
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 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
NET INCOME (LOSS) | $ (1,659) | $ (3,193) | $ 1,086 |
OTHER COMPREHENSIVE INCOME (LOSS) - NET OF TAX: | |||
Realized gain on marketable securities reclassified into income | (2) | ||
Defined benefit pension plan adjustment | 20 | (17) | (11) |
Foreign currency translation adjustment | 66 | (332) | 641 |
Other comprehensive income (loss) | 86 | (349) | 628 |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO GIGAMEDIA SHAREHOLDERS | $ (1,573) | $ (3,542) | $ 1,714 |
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 |
Balance at Dec. 31, 2016 | $ 59,658 | $ 308,754 | $ (226,485) | $ (22,611) |
Balance (in shares) at Dec. 31, 2016 | 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 | |||
Cumulative effect of initially applying new accounting standards | 346 | 346 | ||
Stock-based compensation | 3 | $ 3 | ||
Net income (loss) | (3,193) | (3,193) | ||
Other comprehensive income (loss) | (349) | (349) | ||
Balance at Dec. 31, 2018 | $ 58,172 | $ 308,750 | (228,246) | (22,332) |
Balance (in shares) at Dec. 31, 2018 | 11,052 | 11,052 | ||
Cumulative effect of initially applying new accounting standards | $ (1,056) | (1,056) | ||
Stock-based compensation | 1 | $ 1 | ||
Net income (loss) | (1,659) | (1,659) | ||
Other comprehensive income (loss) | 86 | 86 | ||
Balance at Dec. 31, 2019 | $ 55,544 | $ 308,751 | $ (230,961) | $ (22,246) |
Balance (in shares) at Dec. 31, 2019 | 11,052 | 11,052 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) | $ (1,659) | $ (3,193) | $ 1,086 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||
Depreciation | 61 | 100 | 43 |
Amortization | 47 | 36 | 12 |
Stock-based compensation | 1 | 3 | (7) |
Impairment loss on property, plant and equipment | 109 | ||
Impairment loss on intangible assets | 15 | ||
Impairment losses on prepaid licensing and royalty fees | 85 | 244 | |
Bad debt expense | 24 | 23 | 127 |
Gains on disposals of property, plant and equipment - net | (1) | ||
Gains on disposal of marketable securities | (2) | ||
Net loss on equity investments | 24 | ||
Impairment losses on marketable securities and investments | 52 | ||
Deferred income tax benefits | (1,672) | ||
Loss of lawsuit contingent liabilities | 96 | ||
Net changes in: | |||
Accounts receivable | 130 | 205 | 14 |
Prepaid expenses | 10 | 267 | 137 |
Other current assets | (15) | 35 | (6) |
Prepaid licensing and royalty fees | 306 | (220) | 561 |
Prepaid pension assets | (29) | 14 | (9) |
Accounts payable | (40) | (210) | 48 |
Accrued expenses | (153) | (1,273) | (1,331) |
Other liabilities | (555) | 55 | (186) |
Net cash used in operating activities | (1,567) | (3,914) | (1,110) |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Proceeds from disposals of marketable securities | 2 | ||
Purchases of property, plant and equipment | (48) | (66) | (192) |
Proceeds from disposals of property, plant and equipment | 1 | ||
Proceeds from disposals of subsidiary and equity investments | 1,058 | ||
Increase in intangible assets | (14) | (61) | (11) |
Decrease (increase) in refundable deposits | (2) | 11 | 37 |
Other | (9) | 26 | 40 |
Net cash provided by (used in) investing activities | (73) | (90) | 935 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from short-term borrowings | 986 | ||
Repayments of short-term borrowings | (3,617) | ||
Net cash used in financing activities | (2,631) | ||
Net foreign currency exchange differences on cash, restricted cash and cash equivalents | 88 | (347) | 772 |
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (1,552) | (4,351) | (2,034) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR | 59,826 | 64,177 | 66,211 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF YEAR | 58,274 | $ 59,826 | 64,177 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||
Interest paid during the year | 35 | ||
Income tax paid (refund) during the year | $ (6) | $ 1 |
Principal Activities, Basis of
Principal Activities, Basis of Presentation, and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
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 a 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. (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 its 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. Items subject to such estimates and assumptions include but not limit to the deferral and breakage 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 management’s judgments and estimates used in the preparation of the consolidated financial statements. Revenue Recognition and Deferral General On January 1, 2018, we adopted Accounting Standards Codification (“ASC”) Topic 606, “ Revenue from Contracts with Customers ”, “Revenue Recognition” Please refer to Note 1 of our consolidated financial statements contained in our previously-filed Annual Report on Form 20-F for the year ended December 31, 2017 for our revenue recognition accounting policy as it relates to revenue transactions prior to January 1, 2018. The revenue recognition accounting policy described below relates to revenue transactions from January 1, 2018 and onward, which are accounted for in accordance with ASC Topic 606. Our recognition of revenue from contracts with customers is in accordance with the five-step revenue recognition model: (1) identify the contract with a customer; (2) identify the performance obligation in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation; and (5) recognize revenue when or as we satisfy a performance obligation. Sales taxes assessed by governmental authorities on our revenue transactions are presented on a net basis of digital entertainment service revenues in our consolidated financial statements. In addition to the aforementioned general policies, the following are the specific revenue recognition policies for revenue from contracts with customers. Digital Entertainment Product and Service Revenues Digital entertainment product and service revenues are mainly generated through sale of virtual points and in-game items, and those virtual goods purchased in our games can only be consumed in our games. Therefore, we regard the sale of a virtual good as a service, where the related performance obligation is satisfied over time, and revenues are recognized by measuring progress toward satisfying the performance obligation in a manner that best depicts the transfer of goods or services to the customer. Accordingly, we recognize revenues from the sale of virtual goods over the period of time using the output method, which is generally the estimated service period. Digital entertainment product and service revenues are generated through the sale of virtual points, prepaid cards and game packs via various third-party storefronts, distributors and payment channels, including but not limited to the “Google Play Store,” the “Apple App Store,” convenience stores, telecom service providers and other payment service providers. 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, or over the estimated useful life of virtual items, when the game is terminated and the period of refund claim for any sold virtual items is ended in accordance with our published policy, or when the likelihood of the customer exercising the remaining rights becomes remote. (Please see “Deferred Revenues and Breakage” below for more discussion of accounting treatments of the unexercised rights.) Estimated Service Period The virtual goods for our games may have different service periods. We use the weighted average number of days of a player’s payment interval as the estimate for the service period of each game. We evaluate the appropriateness of such estimates quarterly to see if they are in line with our observations in the operations. We believe this provides a reasonable depiction of the transfer of services to our customers, as it is the best representation of the time period during which our customers play our games. Determining the estimated service period is subjective and requires management’s judgment. Future usage patterns may differ from historical ones, and therefore the estimated service period may change in the future. The estimated service periods for players of our current games are generally less than 6 months. Principal Agent Considerations For the revenues generated from our digital entertainment offerings which are licensed to us for using, marketing, distributing, selling and publishing, and for the sales of our products and services via third-party storefronts and other channels, we evaluate to determine whether our revenues should be reported on a gross or net basis. Key indicators that we evaluate in determining whether we are the principal in the sale (gross reporting) or an agent (net reporting) include, but are not limited to: • which party is primarily • which party has discretion in establishing the price for the specified good or service. Based on our evaluation of various indicators, we report revenues on a gross basis for games that we publish and operate, as we are, and we present ourselves as, responsible for fulfilling the promise of delivering the virtual goods in the game and maintaining the game environment for customers’ consumption of such virtual goods. We have the discretion in establishing the price for those virtual goods, including the power to decide the range and extent of price discount or quantity discount, while the licensors or the third-party channels charge a fixed percentage of fees for such sales. And any loss on the receivables has to be absorbed by us and not the third-party channels. Deferred Revenues and Breakage Deferred revenues representing contract liabilities 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 that 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 have expired. Pursuant to relevant requirements in Taiwan, as of December 31, 2018 and 2019, cash totaling $518 thousand and $531 thousand, respectively, had been deposited in an escrow account in a bank as a performance bond for the users’ prepayments and 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 percentages 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. (Please see Note 4, “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. Our consolidated statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Amounts generally described as restricted cash and restricted cash equivalents are included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. Marketable Securities Prior to 2018, our Company’s investments in marketable securities were classified either as available-for-sale or trading. For the marketable securities classified as available-for-sale, the investments were 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 recognized the changes of the fair value of the investment in our consolidated statements of operations. Other-than-temporary impairments, if any, were charged to non-operating expense in the period in which the loss occurs. In determining whether an other-than-temporary impairment had occurred, our Company primarily considered, among other factors, the length of the time and the extent to which the fair value of an investment had been at a value less than cost. When an other-than-temporary loss was recognized, the fair value of the investment became the new cost basis of the investment and was not adjusted for subsequent recoveries in fair value. Realized gains and losses also were included in non-operating income and expense in the consolidated statements of operations. The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU) No. 2016-01, Financial Instruments – Overall • Equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) are to be measured at fair value with changes in fair value recognized in net income; • Public business entities are to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. • An entity are to evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. Our Company adopted this new guidance as of January 1, 2018 on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings or accumulated deficit. As we had disposed of all our marketable securities by the end of 2017, the adoption did not have any impact on our consolidated financial statements. Investments Prior to 2018, equity investments in non-publicly traded securities of companies over which our Company had no ability to exercise significant influence were accounted for under the cost method. Unrealized losses that were considered other-than-temporary, if any, were charged to non-operating expenses. Realized gains and losses, measured against carrying amount, were also included in non-operating income and expenses. (Please see Note 4, “Fair Value Measurements”, for additional information.) For equity investments accounted for as available-for-sale or trading, cash dividends were recognized as investment income. Stock dividends were recognized as an increase in the number of shares held and did not affect investment income. The cost per share was recalculated based on the new total number of shares. For equity investments accounted for under the equity method, stock dividends received from investees as a result of appropriation of net earnings and additional paid-in capital were recognized as an increase in the number of shares held and did not affect investment income. The cost per share was recalculated based on the weighted-average method. Cash dividends were accounted for as a reduction to the carrying value of the investment. Equity investments in companies over which our Company had the ability to exercise significant influence but did not hold a controlling financial interest were accounted for under the equity method. We recognized our share of the earnings or losses of the investee. When our Company’s carrying value in an equity method investee was reduced to zero, no further losses were 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 would not record its share of such income until it equaled the amount of its share of losses not previously recognized. As discussed above, for our equity investments we had adopted ASU No. 2016-01 as of January 1, 2018 on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings or accumulated deficits. Since all of our equity investments in non-publicly traded securities of companies were fully impaired as of December 31, 2017, the adoption did not have any impact on our consolidated financial statements. 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 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 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. 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. Impairment of Long-Lived Assets Long-lived assets other than goodwill 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 estimated 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. (Please see Note 4, “Fair Value Measurements”, for additional information.) 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 2017, 2018 and 2019 totaled $1.9 million, $1.2 million and $0.4 million, respectively. As of December 31, 2018 and 2019, prepaid advertising costs amounted to $1 thousand and $0 thousand, respectively. Leases General On January 1, 2019, we adopted Accounting Standards Codification (“ASC”) Topic 842, “ Leases, ” “Leases” Please refer to (d) for information about the impact of adoption on our consolidated financial statements. Please refer to Note 1 of our consolidated financial statements contained in our previously-filed Annual Report on Form 20-F for the year ended December 31, 2018 for our lease accounting policy as it relates to lease transactions prior to January 1, 2019. The leases accounting policy described below relates to lease transactions from January 1, 2019 and onward, which are accounted for in accordance with ASC Topic 842. We determine if an arrangement is or contains a lease at contract inception. In certain situations, judgment may be required in determining if a contract contains a lease. For these arrangements, there is judgment in evaluating if the arrangement provides us with an asset that is physically distinct, or that represents substantially all of the capacity of the asset, and if we have the right to direct the use of the asset. Lease assets and liabilities are recognized based on the present value of future lease payments over the lease term at the commencement date. Included in the lease liability are future lease payments that are fixed, in-substance fixed, or are payments based on an index or rate known at the commencement date of the lease. Variable lease payments are recognized as lease expenses as incurred, and generally relate to variable payments made based on the level of services provided by the lessor of our leases. The operating lease right-of-use (“ROU”) asset also includes any lease payments made prior to commencement, initial direct costs incurred, and lease incentives received. As most of our leases do not provide an implicit rate, we generally use our incremental borrowing rate in determining the present value of future payments. The incremental borrowing rate represents the rate required to borrow funds over a similar term to purchase the leased asset, and is based on the information available at the commencement date of the lease. For leased assets with similar lease terms and asset type we applied a portfolio approach in determining a single incremental borrowing rate to apply to the leased assets. In determining our lease liability, the lease term includes options to extend or terminate the lease when it is reasonably certain that we will exercise such option. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and we recognize lease expense for these leases on a straight-line basis over the lease term. Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in a lease term, a change in future lease payments resulting from a change in an index or a rate used to Operating lease ROU assets are presented in “Other assets” and operating lease liabilities are presented in “Other current liabilities” and “Other liabilities” on our consolidated balance sheets. 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. 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. 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, which are 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 more-likely-than-not will 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% likelihood 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, 2018 and 2019, basic and diluted loss per share were the same. 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) Recently Adopted Accounting Pronouncements Leases As noted above, we adopted the new leases We recognized the cumulative effect of initially applying the new leases accounting standard as an adjustment to the opening balance of retained earnings (accumulated deficit). The cumulative effect adjustment recorded to our accumulated deficits was $1.1 million (please see our consolidated statements of changes in shareholders’ equity) and included the impact from the following adjustments to our consolidated balance sheet at January 1, 2019: (in US$ thousands) Balance at December 31, 2018 Adjustments due to adoption of new leases accounting standard Balance at January 1, 2019 Consolidated Balance Sheet Liabilities Other noncurrent liabilities $ — $ 1,056 $ 1,056 Shareholders' equity Accumulated deficit (228,246 ) (1,056 ) (229,302 ) The cumulative effect of the new leases accounting standard are mainly with respect to Except for the cumulative effects discussed above, adoption of the new leases accounting standard did not have a significant impact to our consolidated balance sheet, consolidated (e) Recent Accounting Pronouncements Not Yet Adopted Financial Instruments In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Fair Value Measurement In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement Retirement Plan In August 2018, the FASB issued ASU No. 2018-14, Compensation—Retirement Benefits — Defined Benefit Plans — General which is an accounting update to modify the disclosure requirements by removing, modifying and clarifying disclosures related to defined benefit plans. This amendment modified the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. Certain disclosure requirements have been removed while the disclosure requirements of (1) the weighted-average interest crediting rates for cash balance plans and other with promised interest crediting rates; and (2) an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period, have been added. The amendment also clarified the disclosure requirements with respect to the projected obligation and the accumulated benefit obligation. The amendment is effective for fiscal years ending after December 15, 2020. Early adoption is permitted. The amendments should be applied on a retrospective basis to all periods presented. Intangibles—Goodwill and Other In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software Income Taxes In December 2019, the FASB issued ASU 2019-12 Income Taxes |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 12 Months Ended |
Dec. 31, 2019 | |
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) 2017 2018 2019 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 308 thousand shares at the range of $2.9 to $80.05 as of December 31, 2017, 229 thousand shares at $2.90 to $12.35 as of December 31, 2018, and 225 thousand shares at $2.90 to $12.35 as of December 31, 2019. There were no antidilutive Restricted Stock Units (“RSUs”) as of December 31, 2019, 2018, and 2017. |
PREPAID LICENSING AND ROYALTY F
PREPAID LICENSING AND ROYALTY FEES | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
PREPAID LICENSING AND ROYALTY FEES | NOTE 3. PREPAID LICENSING AND ROYALTY FEES The following table summarizes changes to our Company’s prepaid licensing and royalty fees: (in US$ thousands) 2017 2018 2019 Balance at beginning of year $ 1,020 $ 459 $ 435 Addition 486 968 205 Amortization and usage (1,040 ) (747 ) (511 ) Exchange difference (7 ) (1 ) — Impairment charges (Note 4) — (244 ) (85 ) Balance at end of year $ 459 $ 435 $ 44 At the end of 2018 and 2019, we recognized impairment losses of $244 thousand and $85 thousand, respectively, for the prepaid licensing and royalty fees related to certain licensed games 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. We have entered licensing arrangements for our digital entertainment business. During 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 $1.75 million and accordingly, we have recognized a gain of $1.7 million as a reduction of operating expenses in the consolidated statements of operations for the year ended December 31, 2017. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | The following table presents the carrying amounts and estimated fair values of our Company’s financial instruments at December 31, 2018 and 2019. (in US$ thousands) 2018 2019 Carrying amount Fair value Carrying amount Fair value Financial assets Cash and cash equivalents $ 59,308 $ 59,308 $ 57,743 $ 57,743 Accounts receivable 523 523 368 368 Restricted cash 518 518 531 531 Refundable deposits 197 197 199 199 Financial liabilities Accounts payable 104 104 64 64 Accrued expenses 1,433 1,433 1,280 1,280 Lease liabilities - current and noncurrent — — 592 592 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, 2018 and 2019 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 expenses: The carrying amounts, at face value or cost plus accrued interest, approximate fair value because of the short maturity of these instruments. • Refundable deposits: Measurement of refundable deposits with no fixed maturities is based on carrying amounts. • Lease liabilities: Measured at discounted amounts of lease payments. 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, 2019 Assets Cash equivalents - time deposits $ — $ 7 $ — $ 7 Restricted cash - time deposits — 531 — 531 $ — $ 538 $ — $ 538 (in US$ thousands) Fair Value Measurement Using Level 1 Level 2 Level 3 At December 31, 2018 Assets Cash equivalents - time deposits $ — $ 6 $ — $ 6 Restricted cash - time deposits — 518 — 518 $ — $ 524 $ — $ 524 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 3 for the years ended December 31, 2018 and 2019. 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. Level 3 measurements: We did not hold assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during 2018 and 2019. 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, operating lease ROU assets, and prepaid licensing and royalty fees. We recognized t he cumulative effects of impairment on the operating lease ROU assets when initially applying the new leases accounting standard at January 1, 2019, as such impairments occurred before the date of initial application. Please see Note 1, “Principal Activities, Basis of Presentation, and Summary of Significant Accounting Policies”, for addition Asset (in US$ thousands) Fair Value measurement Using Assets Level 1 Level 2 Level 3 At December 31, 2019 Total Impairment Losses (a) Prepaid licensing and royalty fees $ — $ — $ — $ — $ 85 (b) Property, plant and equipment — — — — 109 (c) Intangible assets — — — — 15 Total $ — $ — $ — $ — $ 209 (in US$ thousands) Fair Value measurement Using Assets Level 1 Level 2 Level 3 At December 31, 2018 Total Impairment Losses (a) Prepaid licensing and royalty fees $ — $ — $ 84 $ 84 $ 244 Total $ — $ — $ 84 $ 84 $ 244 (a) Impairment losses on certain prepaid licensing and royalty fees which were determined to be impaired: (b) Impairment losses on certain property, plant, and equipment which were determined to be impaired: In 2019, we recognized an impairment loss of $109 thousand on property, plant and equipment as while the recent years’ operating losses were expected to continue in the short-term, the carrying amounts of those long-lived assets would not be recoverable based on cash flow projections. (c) Impairment losses on certain intangible assets which were determined to be impaired: In 2019, we recognized an impairment loss of $15 thousand on intangible assets as while the recent years’ operating losses were expected to continue in the short-term, the carrying amounts of those intangible assets would not be recoverable based on cash flow projections. |
CASH, CASH EQUIVALENTS AND REST
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 12 Months Ended |
Dec. 31, 2019 | |
Cash And Cash Equivalents [Abstract] | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | NOTE 5. CASH, CASH EQUIVALENTS AND RESTRICTED CASH The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows as of December 31, 2018 and 2019. December 31 (in US$ thousands) 2018 2019 Cash and savings accounts $ 59,302 $ 57,736 Time deposits 6 7 Cash and cash equivalents reported on the consolidated balance sheets 59,308 57,743 Cash restricted as performance bond 518 531 Total cash, cash equivalents and restricted cash reported on the consolidated statements of cash flows $ 59,826 $ 58,274 As of December 31, 2018 and 2019, cash amounting to $518 thousand and $531 thousand, respectively, has been deposited in an escrow account in a bank as a performance bond for our players’ game points. These deposits are restricted and are included in restricted cash in the consolidated balance sheets. We maintain cash and cash equivalents, as well as restricted cash, in bank accounts with major financial institutions with high credit ratings located in the following jurisdictions: December 31 (in US$ thousands) 2018 2019 Taiwan $ 54,078 $ 52,261 Hong Kong 5,732 5,997 China 16 16 $ 59,826 $ 58,274 |
ACCOUNTS RECEIVABLE - NET
ACCOUNTS RECEIVABLE - NET | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE - NET | NOTE 6. ACCOUNTS RECEIVABLE – NET Accounts receivable consist of the following: December 31 (in US$ thousands) 2018 2019 Accounts receivable $ 528 $ 371 Less: Allowance for doubtful accounts (5 ) (3 ) $ 523 $ 368 The following is a summary of the changes in our Company’s allowance for doubtful accounts during the years ended December 31, 2017, 2018 and 2019: (in US$ thousands) 2017 2018 2019 Balance at beginning of year $ 32 $ 12 $ 5 Additions: Bad debt expense 127 23 24 Less: Write-off (149 ) (29 ) (26 ) Translation adjustment 2 (1 ) — Balance at end of year $ 12 $ 5 $ 3 |
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
OTHER CURRENT ASSETS | NOTE 7. OTHER CURRENT ASSETS Other current assets consist of the following: December 31 (in US$ thousands) 2018 2019 Loans receivable - current $ 29 $ 30 Less: Allowance for loans receivable - current (29 ) (30 ) Other receivable 3 — Other 121 139 $ 124 $ 139 The following is a reconciliation of changes in our Company’s allowance for loans receivable - current during the years ended December 31, 2017, 2018 and 2019: (in US$ thousands) 2017 2018 2019 Balance at beginning of year $ 28 $ 30 $ 29 Reversal for collection of bad debt — — — Translation adjustment 2 (1 ) 1 Balance at end of year $ 30 $ 29 $ 30 |
LEASE ARRANGEMENTS
LEASE ARRANGEMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
LEASE ARRANGEMENTS | NOTE 8. LEASE ARRANGEMENTS a. Right-of-use assets 2019 (in US$ thousands) Cost Accumulated depreciation Net Recognition of right-of-use assets upon adoption of ASC 842 at beginning of year (Note 1) $ 1,056 $ — $ 1,056 Recognition of impairment upon adoption of ASC 842 at beginning of year (Note 1) (1,056 ) — (1,056 ) Balance at end of year $ — $ — $ — b. Lease liabilities (in US$ thousands) December 31, 2019 Carrying amount: Current portion (classified under other current liabilities) $ 498 Noncurrent portion 94 $ 592 Discount rates for the existing lease liabilities ranged from 1.7% to 2.8%. c. Material terms of right-of-use assets We lease office premises, office equipment and automobile for operational use with lease terms of 2 to 5 years. We do not have purchase options to acquire the leasehold office premises at the end of the lease terms. d. Supplemental information Supplemental disclosures of cash flow information consist of the following: (in US$ thousands) For the Year ended December 31, 2019 Cash paid for operating leases $ 510 Right-of-use assets obtained in exchange for operating lease liabilities 1,056 Operating lease expenses The table below reconciles (in US$ thousands) Operating Leases Year 2020 $ 504 2021 92 2022 1 2023 1 2024 1 Total minimum lease payments 599 Less: amount of lease payments representing interest (7 ) Present value of future minimum lease payments 592 Less: current obligation under leases (498 ) Non-current lease obligations $ 94 We have elected the transition option under ASU 2016-02 and continued to apply the prior accounting standard for leases, including the disclosure requirements, in the comparative periods. Future minimum lease p ayments due under those lease agreements as of December 31, 2018 were as follows: (in US$ thousands) December 31, 2018 Not later than 1 year $ 450 Later than 1 year and not later than 5 years 504 Later than 5 years — Balance at end of year $ 954 Rent expense for the years ended December 31, 2018 and 2017 were $493 thousand and $577 thousand, respectively, recognized on a straight-line basis for the Company’s office and car leases which were accounted for as operating leases. |
ACCRUED EXPENSES
ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2019 | |
Payables And Accruals [Abstract] | |
ACCRUED EXPENSES | NOTE 9. ACCRUED EXPENSES Accrued expenses consist of the following: December 31 (in US$ thousands) 2018 2019 Accrued professional fees $ 429 $ 401 Accrued compensation 170 200 Accrued royalties 275 152 Accrued advertising expenses 134 76 Accrued director compensation and liability insurance 70 70 Other 355 381 $ 1,433 $ 1,280 |
DEFERRED REVENUE
DEFERRED REVENUE | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Revenue [Abstract] | |
DEFERRED REVENUE | NOTE 10. DEFERRED REVENUE Deferred revenue consists of the following: December 31 (in US$ thousands) 2018 2019 Unused virtual points $ 1,094 $ 999 Unamortized virtual items 276 366 $ 1,370 $ 1,365 The breakage amounts recognized as revenue during the years ended December 2018 and 2019 were $0 and $63 thousand, respectively. The cumulative amount of breakage for the years during and prior to 2017 was $346 thousand, recorded to our accumulated deficits at January 1, 2018 as a cumulative effect of initially applying the new revenue accounting standard. |
PENSION BENEFITS
PENSION BENEFITS | 12 Months Ended |
Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
PENSION BENEFITS | NOTE 11. 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, 2018 and 2019, the accumulated benefit obligation amounted to $233 thousand and $238 thousand, respectively, and the funded status of prepaid pension assets amounted to $56 thousand and $85 thousand, respectively. The fair value of plan assets amounted to $376 thousand and $411 thousand as of December 31, 2018 and 2019, respectively. The accumulated other comprehensive loss amounted to ($86) thousand and ( The following table sets forth the plan’s benefit obligations, fair value of plan assets, and funded status at December 31, 2018 and 2019: December 31 (in US$ thousands) 2018 2019 Benefit Obligation $ 320 $ 326 Fair value of plan assets 376 411 $ (56 ) $ (85 ) Amounts recognized in the balance sheet consist of: Noncurrent liabilities (assets) $ (56 ) $ (85 ) Accumulated other comprehensive income — — Net amount recognized $ (56 ) $ (85 ) Amounts recognized in accumulated comprehensive income (loss) consist of: Unrecognized net gain (loss) $ (86 ) $ (66 ) For the years ended December 31, 2017, 2018 and 2019, the net period pension cost consisted of the following: December 31 (in US$ thousands) 2017 2018 2019 Service cost $ — $ — $ — Interest cost 4 5 4 Expected return on plan assets (5 ) (6 ) (5 ) Amortization of net loss 1 2 3 Curtailment gain — — — $ — $ 1 $ 2 Weighted average assumptions used to determine benefit obligations for 2018 and 2019 were as follows: December 31 2018 2019 Discount rate 1.375 % 1.125 % 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: 2018 2019 Discount rate 1.625 % 1.375 % Rate of return on plan assets 1.625 % 1.375 % Rate of compensation increase 2.00 % 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% 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 2020. We expect to make future benefit payments of $1 thousand to employees from 2020 to 2024 and $14 thousand from 2025 to 2029. 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% of an employee’s monthly salary and wage and up to the maximum amount of NT$9 thousand (approximately $300), 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% 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 $193). 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, 2017, 2018 and 2019 were $190 thousand, $210 thousand, and $187 thousand, respectively, which are included in operating expenses. |
SHAREHOLDERS_ EQUITY
SHAREHOLDERS’ EQUITY | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
SHAREHOLDERS’ EQUITY | NOTE 12. SHAREHOLDERS’ EQUITY In accordance with Singapore law, the holders of ordinary shares that do not have par value, are entitled to receive dividends as declared from time to time and are entitled to one vote per share at the general meeting of our company. All shares rank equally with regard to our company’s residual assets. In addition, we are not required to have a number of authorized common shares to be issued. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | NOTE 13. ACCUMULATED OTHER COMPREHENSIVE LOSS The accumulated balances for each component of other comprehensive income (loss) are as follows: (in US$ thousands) Foreign currency items Unrealized gain on securities Pension and post retirement benefit plans Accumulated other comprehensive loss Balance at January 1, 2017 $ (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 ) Net current period change (332 ) — (17 ) (349 ) Balance at December 31, 2018 (22,246 ) — (86 ) (22,332 ) Net current period change 66 — 20 86 Balance at December 31, 2019 $ (22,180 ) $ — $ (66 ) $ (22,246 ) There were no significant tax effects allocated to each component of other comprehensive income for the years ended December 31, 2017, 2018 and 2019. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
SHARE-BASED COMPENSATION | NOTE 14. SHARE-BASED COMPENSATION During 2017, 2018 and 2019, 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 ($7) thousand, $3 thousand and $1 thousand, respectively. There were no significant capitalized stock-based compensation costs at December 31, 2018 and 2019. There was no recognized stock-based compensation tax benefit for the years ended December 31, 2017, 2018 and 2019, as our Company recognized a full valuation allowance on net deferred tax assets as of December 31, 2018 and 2019. (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, 2019, 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, 2019, 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, 2019, 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, 2019. 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~$21.20 — 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 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 2017, 2018 and 2019, 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 2018 and 2019. The following table summarizes the assumptions used in the model for options granted during 2017: 2017 Option term (years) 6.01 Volatility 48.997% Weighted-average volatility 48.997% Risk-free interest rate 2.031% Dividend yield 0% Weighted-average fair value of option granted $ 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: 2017 2018 2019 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 $ 20.63 613 $ 14.78 308 $ 10.88 229 Options granted 2.90 4 — — — — Options exercised — — — — — — Options Forfeited / canceled / expired 26.24 (309 ) 26.08 (79 ) 3.85 (4 ) Balance at December 31 $ 14.78 308 $ 10.88 229 $ 11.00 225 1.07 $ — Exercisable at December 31 $ 15.16 298 $ 10.97 227 $ 11.05 224 1.03 $ — Vested and expected to vest at December 31 $ 14.78 308 $ 10.88 229 $ 11.00 225 1.07 $ — 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 2019 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, 2019. This amount changes based on the fair market value of GigaMedia’s stock. As of December 31, 2019, there was approximately $0.3 thousand of unrecognized compensation cost related to nonvested options. That cost is expected to be recognized over a period of 0.35 years. The following table sets forth information about stock options outstanding at December 31, 2019: 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 8 4.68 years Under $5 7 $5~$50 217 0.93 years $5~$50 217 $50~$100 — $50~$100 — 225 224 (c) RSUs The fair value of RSUs is determined and fixed on the grant date based on our stock price. No RSUs were granted during the years ended December 31, 2017, 2018 and 2019. As of December 31 2018 and 2019, there was no unrecognized compensation cost related to nonvested RSUs. Our Company received no cash from employees as a result of employee stock award vesting and the forfeiture of RSUs during 2017, 2018 and 2019. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 15. INCOME TAXES Income (loss) before income taxes by geographic location is as follows: (in US$ thousands ) 2017 2018 2019 Taiwan operations $ 893 $ (3,146 ) $ (2,191 ) Non-Taiwan operations (1,478 ) (47 ) 532 $ (585 ) $ (3,193 ) $ (1,659 ) The components of income tax benefit (expense) by taxing jurisdiction are as follows: ( in US$ thousands ) 2017 2018 2019 Taiwan: Current $ — $ — $ — Deferred — — — $ — $ — $ — Non-Taiwan: Current $ (1 ) $ — $ — Deferred 1,672 — — $ 1,671 $ — $ — Total current income tax benefit (expense) $ (1 ) $ — $ — Total deferred income tax benefit $ 1,672 $ — $ — Total income tax benefit $ 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: 2017 2018 2019 Taiwan statutory rate, including taxes on income and retained earnings 23.85 % 24.00 % 24.00 % Foreign tax differential 1.10 % 3.43 % 10.14 % Reversal of deferred withholding tax liabilities 285.84 % — — Tax-exempt income — — — Non-deductible items - bad debts — (0.22 )% — Other non-deductible expenses (44.79 )% (3.50 )% (7.01 )% Changes in unrecognized tax benefits — 17.17 % — Cumulative effect of initially applying new accounting standards — — 13.13 % Change in deferred tax assets and valuation allowance 13.43 % (42.02 )% (43.38 )% Change in tax rate — 0.15 % — Other 6.33 % 0.99 % 3.12 % Effective rate 285.76 % — — The significant components of our deferred tax assets consist of the following: (in US$ thousands) December 31 2018 2019 Net operating loss carryforwards $ 11,136 $ 12,005 Share-based compensation 292 299 Investments 131 134 Lease right-of-use assets — 122 Intangible assets and goodwill 119 64 Other 87 108 11,765 12,732 Less: valuation allowance (11,765 ) (12,732 ) Deferred tax assets - net $ — $ — In October 2017, a subsidiary of ours in the U.S. dissolved and liquidated, for which it 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 $1,671 thousand as such deferred income tax liabilities were originally accrued for a potential withholding obligation upon possible distribution. A reconciliation of the beginning and ending amounts of our valuation allowance on deferred tax assets for the years ended December 31, 2017, 2018 and 2019 are as follows: (in US$ thousands) 2017 2018 2019 Balance at beginning of year $ 11,852 $ 9,928 $ 11,765 Subsequent reversal and utilization of valuation allowance (3,352 ) — (17 ) Additions to valuation allowance 745 2,107 723 Exchange differences 683 (270 ) 261 Balance at end of year $ 9,928 $ 11,765 $ 12,732 Under ROC Income Tax Act, the tax loss carryforward in the preceding ten years would be deducted from income tax for Taiwan operations. As of December 31, 2019, we had net operating loss carryforwards available to offset future taxable income, shown below by major jurisdictions: Jurisdiction Amount Expiring year Hong Kong $ 15,759 indefinite Taiwan 39,189 2020~2029 $ 54,948 Pursuant to the amendment of the ROC Income Tax Act in February 2018, starting from 2018, the corporate income tax rate was adjusted from 17% to 20%. In addition, the tax rate applicable to the undistributed portion of earnings to be made in 2018 and thereafter was 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 2017, 2018 and 2019 are as follows: (in US$ thousands) 2017 2018 2019 Balance at beginning of year $ 1,024 $ 1,110 $ — Increase related to prior year tax positions — — — Decrease related to prior year tax positions — — — Settlement of intercompany charge adjustments — (1,095 ) — Expiration of statute of limitations — — — Exchange differences 86 (15 ) — Balance at end of year $ 1,110 $ — $ — As of December 31, 2017, 2018 and 2019, there were no unrecognized tax benefits that if recognized would affect the effective tax rate. As of December 31, 2017, 2018 and 2019, $1.1 million, $0 and $0 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, 2017, 2018 and 2019. Our major tax paying components are all located in Taiwan. As of December 31, 2019, the income tax filings in Taiwan have been examined for the years through 2017. In 2017 and 2018, 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 filed appeals against the unfavorable parts of the decision regarding these intercompany charge adjustments, and subsequently reached agreement and settlement in 2018 with the tax authority regarding the tax filings for those years. The settlement did not have significant impact to our financial statements. 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. |
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
RELATED-PARTY TRANSACTIONS | Error extracting Word content |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 16. COMMITMENTS AND CONTINGENCIES Commitments (a) Operating Leases We rent certain office premises, office equipment and automobile for operation use (in US$ thousands) Amount 2020 $ 504 2021 92 2022 1 2023 1 2024 and after 1 $ 599 Please refer to Note 8 for more information of our lease arrangements. (b) License Agreements We have contractual obligations under various license agreements to pay the licensors license fees and minimum guarantees against future royalties. There were no committed license fees and minimum guarantees against future royalties set forth in our significant license agreements as of December 31, 2019. For a specific licensed game, we are committed to paying an incentive fee of $30 thousand to the licensor for every $500 thousand additional revenues generated from the game during the agreement period from January 2018 to January 2020. In January 2020, we entered an extension and amendment agreement to extend the term and modified certain provisions. The extension term commenced on January 27, 2020, and expires on January 26, 2022, and the incentive fee is $30 thousand for every $500 thousand additional revenues generated during the extension term. 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 NTD 79,477,648 (approximately $2,697,471) in connection with a transaction to purchase taximeters in 2015. GigaMedia Cloud filed an answer to the complaint denying Ennoconn’s allegations in the lack of factual and legal basis on March 1, 2018. On November 15, 2018, the Taiwan Taipei District Court determined that all of Ennoconn’s claims were without merit and made a judgment denying the complaint. On January 3, 2019, Ennoconn filed an appeal demanding the judgment which was entered in the District Court, to be reversed and amended. The civil court of the second instance, the Taiwan High Court, has conducted the session of the preparatory proceedings for several times during the past year. As a result, the Taiwan High Court ruled on January 8, 2020, that the decision of the Taiwan Taipei District Court should be partially modified and Ennoconn is entitled to NTD 27,084,180 (approximately $892,763). GigaMedia Cloud has filed another appeal with the Taiwan Supreme Court on February 4, 2020. GigaMedia Cloud accrued its best estimate for the ultimate resolution of this claim. On the other hand, pursuant to Taiwan’s Company Act, the shareholder of GigaMedia Cloud is limitedly liable for GigaMedia Cloud in an amount equal to the total value of shares subscribed. Therefore, we believe that the immediate parent company, the intermediate parent companies, as well as GigaMedia, the ultimate parent company, individually or collectively do not have obligations to absorb GigaMedia Cloud’s loss exceeding its net worth, amounting to approximately $100 thousand before such accrual, as of December 31, 2019, and accordingly, it will not have a material adverse effect on our financial condition, results of operations or cash flows. |
SEGMENT, PRODUCT, GEOGRAPHIC AN
SEGMENT, PRODUCT, GEOGRAPHIC AND OTHER INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT, PRODUCT, GEOGRAPHIC AND OTHER INFORMATION | NOTE 17. SEGMENT, PRODUCT, GEOGRAPHIC AND OTHER INFORMATION We have only one segment, the digital entertainment business segment, which operates a portfolio of digital entertainment products, primarily targeting digital entertainment service users across Asia. Our Company uses the income from operations as the measurement for the basis of performance assessment. The basis for such measurement is the same as that for the preparation of financial statements. Please refer to the consolidated statements of profit or loss and other comprehensive income for the related segment revenue and operating results. Major Product Lines Revenues from our Company’s major product lines are summarized as follow: (in US$ thousands) 2017 2018 2019 MahJong and casino casual games $ 2,364 $ 1,816 $ 1,778 PC-based massive multiplayer online games 1,400 1,272 1,204 Mobile role playing games 7,776 3,998 3,538 Other games and game related revenues 56 15 125 $ 11,596 $ 7,101 $ 6,645 Major Customers No single customer represented 10% 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 2017 2018 2019 Taiwan $ 2,349 $ 2,958 $ 3,074 Hong Kong 9,247 4,143 3,571 $ 11,596 $ 7,101 $ 6,645 Net tangible long-lived assets by geographic region are as follows: (in US$ thousands) December 31 Geographic region / country 2017 2018 2019 Taiwan $ 62 $ 94 $ — Hong Kong 96 27 — $ 158 $ 121 $ — |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | NOTE 18. SUBSEQUENT EVENT There have been no events that have occurred subsequent to December 31, 2019 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 o_2
Principal Activities, Basis of Presentation, and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
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. Items subject to such estimates and assumptions include but not limit to the deferral and breakage 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 management’s judgments and estimates used in the preparation of the consolidated financial statements. |
Revenue Recognition and Deferral | Revenue Recognition and Deferral General On January 1, 2018, we adopted Accounting Standards Codification (“ASC”) Topic 606, “ Revenue from Contracts with Customers ”, “Revenue Recognition” Please refer to Note 1 of our consolidated financial statements contained in our previously-filed Annual Report on Form 20-F for the year ended December 31, 2017 for our revenue recognition accounting policy as it relates to revenue transactions prior to January 1, 2018. The revenue recognition accounting policy described below relates to revenue transactions from January 1, 2018 and onward, which are accounted for in accordance with ASC Topic 606. Our recognition of revenue from contracts with customers is in accordance with the five-step revenue recognition model: (1) identify the contract with a customer; (2) identify the performance obligation in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation; and (5) recognize revenue when or as we satisfy a performance obligation. Sales taxes assessed by governmental authorities on our revenue transactions are presented on a net basis of digital entertainment service revenues in our consolidated financial statements. In addition to the aforementioned general policies, the following are the specific revenue recognition policies for revenue from contracts with customers. Digital Entertainment Product and Service Revenues Digital entertainment product and service revenues are mainly generated through sale of virtual points and in-game items, and those virtual goods purchased in our games can only be consumed in our games. Therefore, we regard the sale of a virtual good as a service, where the related performance obligation is satisfied over time, and revenues are recognized by measuring progress toward satisfying the performance obligation in a manner that best depicts the transfer of goods or services to the customer. Accordingly, we recognize revenues from the sale of virtual goods over the period of time using the output method, which is generally the estimated service period. Digital entertainment product and service revenues are generated through the sale of virtual points, prepaid cards and game packs via various third-party storefronts, distributors and payment channels, including but not limited to the “Google Play Store,” the “Apple App Store,” convenience stores, telecom service providers and other payment service providers. 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, or over the estimated useful life of virtual items, when the game is terminated and the period of refund claim for any sold virtual items is ended in accordance with our published policy, or when the likelihood of the customer exercising the remaining rights becomes remote. (Please see “Deferred Revenues and Breakage” below for more discussion of accounting treatments of the unexercised rights.) Estimated Service Period The virtual goods for our games may have different service periods. We use the weighted average number of days of a player’s payment interval as the estimate for the service period of each game. We evaluate the appropriateness of such estimates quarterly to see if they are in line with our observations in the operations. We believe this provides a reasonable depiction of the transfer of services to our customers, as it is the best representation of the time period during which our customers play our games. Determining the estimated service period is subjective and requires management’s judgment. Future usage patterns may differ from historical ones, and therefore the estimated service period may change in the future. The estimated service periods for players of our current games are generally less than 6 months. Principal Agent Considerations For the revenues generated from our digital entertainment offerings which are licensed to us for using, marketing, distributing, selling and publishing, and for the sales of our products and services via third-party storefronts and other channels, we evaluate to determine whether our revenues should be reported on a gross or net basis. Key indicators that we evaluate in determining whether we are the principal in the sale (gross reporting) or an agent (net reporting) include, but are not limited to: • which party is primarily • which party has discretion in establishing the price for the specified good or service. Based on our evaluation of various indicators, we report revenues on a gross basis for games that we publish and operate, as we are, and we present ourselves as, responsible for fulfilling the promise of delivering the virtual goods in the game and maintaining the game environment for customers’ consumption of such virtual goods. We have the discretion in establishing the price for those virtual goods, including the power to decide the range and extent of price discount or quantity discount, while the licensors or the third-party channels charge a fixed percentage of fees for such sales. And any loss on the receivables has to be absorbed by us and not the third-party channels. Deferred Revenues and Breakage Deferred revenues representing contract liabilities 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 that 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 have expired. Pursuant to relevant requirements in Taiwan, as of December 31, 2018 and 2019, cash totaling $518 thousand and $531 thousand, respectively, had been deposited in an escrow account in a bank as a performance bond for the users’ prepayments and 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 percentages 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. (Please see Note 4, “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. Our consolidated statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Amounts generally described as restricted cash and restricted cash equivalents are included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. |
Marketable Securities | Marketable Securities Prior to 2018, our Company’s investments in marketable securities were classified either as available-for-sale or trading. For the marketable securities classified as available-for-sale, the investments were 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 recognized the changes of the fair value of the investment in our consolidated statements of operations. Other-than-temporary impairments, if any, were charged to non-operating expense in the period in which the loss occurs. In determining whether an other-than-temporary impairment had occurred, our Company primarily considered, among other factors, the length of the time and the extent to which the fair value of an investment had been at a value less than cost. When an other-than-temporary loss was recognized, the fair value of the investment became the new cost basis of the investment and was not adjusted for subsequent recoveries in fair value. Realized gains and losses also were included in non-operating income and expense in the consolidated statements of operations. The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU) No. 2016-01, Financial Instruments – Overall • Equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) are to be measured at fair value with changes in fair value recognized in net income; • Public business entities are to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. • An entity are to evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. Our Company adopted this new guidance as of January 1, 2018 on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings or accumulated deficit. As we had disposed of all our marketable securities by the end of 2017, the adoption did not have any impact on our consolidated financial statements. |
Investments | Investments Prior to 2018, equity investments in non-publicly traded securities of companies over which our Company had no ability to exercise significant influence were accounted for under the cost method. Unrealized losses that were considered other-than-temporary, if any, were charged to non-operating expenses. Realized gains and losses, measured against carrying amount, were also included in non-operating income and expenses. (Please see Note 4, “Fair Value Measurements”, for additional information.) For equity investments accounted for as available-for-sale or trading, cash dividends were recognized as investment income. Stock dividends were recognized as an increase in the number of shares held and did not affect investment income. The cost per share was recalculated based on the new total number of shares. For equity investments accounted for under the equity method, stock dividends received from investees as a result of appropriation of net earnings and additional paid-in capital were recognized as an increase in the number of shares held and did not affect investment income. The cost per share was recalculated based on the weighted-average method. Cash dividends were accounted for as a reduction to the carrying value of the investment. Equity investments in companies over which our Company had the ability to exercise significant influence but did not hold a controlling financial interest were accounted for under the equity method. We recognized our share of the earnings or losses of the investee. When our Company’s carrying value in an equity method investee was reduced to zero, no further losses were 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 would not record its share of such income until it equaled the amount of its share of losses not previously recognized. As discussed above, for our equity investments we had adopted ASU No. 2016-01 as of January 1, 2018 on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings or accumulated deficits. Since all of our equity investments in non-publicly traded securities of companies were fully impaired as of December 31, 2017, the adoption did not have any impact on our consolidated financial statements. |
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 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 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. |
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. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets other than goodwill 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 estimated 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. (Please see Note 4, “Fair Value Measurements”, for additional information.) |
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 2017, 2018 and 2019 totaled $1.9 million, $1.2 million and $0.4 million, respectively. As of December 31, 2018 and 2019, prepaid advertising costs amounted to $1 thousand and $0 thousand, respectively. |
Leases | Leases General On January 1, 2019, we adopted Accounting Standards Codification (“ASC”) Topic 842, “ Leases, ” “Leases” Please refer to (d) for information about the impact of adoption on our consolidated financial statements. Please refer to Note 1 of our consolidated financial statements contained in our previously-filed Annual Report on Form 20-F for the year ended December 31, 2018 for our lease accounting policy as it relates to lease transactions prior to January 1, 2019. The leases accounting policy described below relates to lease transactions from January 1, 2019 and onward, which are accounted for in accordance with ASC Topic 842. We determine if an arrangement is or contains a lease at contract inception. In certain situations, judgment may be required in determining if a contract contains a lease. For these arrangements, there is judgment in evaluating if the arrangement provides us with an asset that is physically distinct, or that represents substantially all of the capacity of the asset, and if we have the right to direct the use of the asset. Lease assets and liabilities are recognized based on the present value of future lease payments over the lease term at the commencement date. Included in the lease liability are future lease payments that are fixed, in-substance fixed, or are payments based on an index or rate known at the commencement date of the lease. Variable lease payments are recognized as lease expenses as incurred, and generally relate to variable payments made based on the level of services provided by the lessor of our leases. The operating lease right-of-use (“ROU”) asset also includes any lease payments made prior to commencement, initial direct costs incurred, and lease incentives received. As most of our leases do not provide an implicit rate, we generally use our incremental borrowing rate in determining the present value of future payments. The incremental borrowing rate represents the rate required to borrow funds over a similar term to purchase the leased asset, and is based on the information available at the commencement date of the lease. For leased assets with similar lease terms and asset type we applied a portfolio approach in determining a single incremental borrowing rate to apply to the leased assets. In determining our lease liability, the lease term includes options to extend or terminate the lease when it is reasonably certain that we will exercise such option. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and we recognize lease expense for these leases on a straight-line basis over the lease term. Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in a lease term, a change in future lease payments resulting from a change in an index or a rate used to Operating lease ROU assets are presented in “Other assets” and operating lease liabilities are presented in “Other current liabilities” and “Other liabilities” on our consolidated balance sheets. |
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. |
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. |
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, which are 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 more-likely-than-not will 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% likelihood 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, 2018 and 2019, basic and diluted loss per share were the same. |
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. |
Recently Adopted Accounting Pronouncements | (d) Recently Adopted Accounting Pronouncements Leases As noted above, we adopted the new leases We recognized the cumulative effect of initially applying the new leases accounting standard as an adjustment to the opening balance of retained earnings (accumulated deficit). The cumulative effect adjustment recorded to our accumulated deficits was $1.1 million (please see our consolidated statements of changes in shareholders’ equity) and included the impact from the following adjustments to our consolidated balance sheet at January 1, 2019: (in US$ thousands) Balance at December 31, 2018 Adjustments due to adoption of new leases accounting standard Balance at January 1, 2019 Consolidated Balance Sheet Liabilities Other noncurrent liabilities $ — $ 1,056 $ 1,056 Shareholders' equity Accumulated deficit (228,246 ) (1,056 ) (229,302 ) The cumulative effect of the new leases accounting standard are mainly with respect to Except for the cumulative effects discussed above, adoption of the new leases accounting standard did not have a significant impact to our consolidated balance sheet, consolidated |
Recent Accounting Pronouncements Not Yet Adopted | (e) Recent Accounting Pronouncements Not Yet Adopted Financial Instruments In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Fair Value Measurement In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement Retirement Plan In August 2018, the FASB issued ASU No. 2018-14, Compensation—Retirement Benefits — Defined Benefit Plans — General which is an accounting update to modify the disclosure requirements by removing, modifying and clarifying disclosures related to defined benefit plans. This amendment modified the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. Certain disclosure requirements have been removed while the disclosure requirements of (1) the weighted-average interest crediting rates for cash balance plans and other with promised interest crediting rates; and (2) an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period, have been added. The amendment also clarified the disclosure requirements with respect to the projected obligation and the accumulated benefit obligation. The amendment is effective for fiscal years ending after December 15, 2020. Early adoption is permitted. The amendments should be applied on a retrospective basis to all periods presented. Intangibles—Goodwill and Other In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software Income Taxes In December 2019, the FASB issued ASU 2019-12 Income Taxes |
Principal Activities, Basis o_3
Principal Activities, Basis of Presentation, and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 Information and communication equipment 2 to 5 Office furniture and equipment 3 to 5 Leasehold improvements 3 to 5 |
Summary of Adjustment to Our Consolidated Balance Sheets | The cumulative effect adjustment recorded to our accumulated deficits was $1.1 million (please see our consolidated statements of changes in shareholders’ equity) and included the impact from the following adjustments to our consolidated balance sheet at January 1, 2019: (in US$ thousands) Balance at December 31, 2018 Adjustments due to adoption of new leases accounting standard Balance at January 1, 2019 Consolidated Balance Sheet Liabilities Other noncurrent liabilities $ — $ 1,056 $ 1,056 Shareholders' equity Accumulated deficit (228,246 ) (1,056 ) (229,302 ) |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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) 2017 2018 2019 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 |
PREPAID LICENSING AND ROYALTY_2
PREPAID LICENSING AND ROYALTY FEES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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) 2017 2018 2019 Balance at beginning of year $ 1,020 $ 459 $ 435 Addition 486 968 205 Amortization and usage (1,040 ) (747 ) (511 ) Exchange difference (7 ) (1 ) — Impairment charges (Note 4) — (244 ) (85 ) Balance at end of year $ 459 $ 435 $ 44 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2018 and 2019. (in US$ thousands) 2018 2019 Carrying amount Fair value Carrying amount Fair value Financial assets Cash and cash equivalents $ 59,308 $ 59,308 $ 57,743 $ 57,743 Accounts receivable 523 523 368 368 Restricted cash 518 518 531 531 Refundable deposits 197 197 199 199 Financial liabilities Accounts payable 104 104 64 64 Accrued expenses 1,433 1,433 1,280 1,280 Lease liabilities - current and noncurrent — — 592 592 |
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, 2019 Assets Cash equivalents - time deposits $ — $ 7 $ — $ 7 Restricted cash - time deposits — 531 — 531 $ — $ 538 $ — $ 538 (in US$ thousands) Fair Value Measurement Using Level 1 Level 2 Level 3 At December 31, 2018 Assets Cash equivalents - time deposits $ — $ 6 $ — $ 6 Restricted cash - time deposits — 518 — 518 $ — $ 524 $ — $ 524 |
Fair Value, Measurements, Nonrecurring | |
Summary of Assets and Liabilities Measured at Fair Value | We recognized t he cumulative effects of impairment on the operating lease ROU assets when initially applying the new leases accounting standard at January 1, 2019, as such impairments occurred before the date of initial application. Please see Note 1, “Principal Activities, Basis of Presentation, and Summary of Significant Accounting Policies”, for addition Asset (in US$ thousands) Fair Value measurement Using Assets Level 1 Level 2 Level 3 At December 31, 2019 Total Impairment Losses (a) Prepaid licensing and royalty fees $ — $ — $ — $ — $ 85 (b) Property, plant and equipment — — — — 109 (c) Intangible assets — — — — 15 Total $ — $ — $ — $ — $ 209 (in US$ thousands) Fair Value measurement Using Assets Level 1 Level 2 Level 3 At December 31, 2018 Total Impairment Losses (a) Prepaid licensing and royalty fees $ — $ — $ 84 $ 84 $ 244 Total $ — $ — $ 84 $ 84 $ 244 (a) Impairment losses on certain prepaid licensing and royalty fees which were determined to be impaired: (b) Impairment losses on certain property, plant, and equipment which were determined to be impaired: In 2019, we recognized an impairment loss of $109 thousand on property, plant and equipment as while the recent years’ operating losses were expected to continue in the short-term, the carrying amounts of those long-lived assets would not be recoverable based on cash flow projections. (c) Impairment losses on certain intangible assets which were determined to be impaired: In 2019, we recognized an impairment loss of $15 thousand on intangible assets as while the recent years’ operating losses were expected to continue in the short-term, the carrying amounts of those intangible assets would not be recoverable based on cash flow projections. |
CASH, CASH EQUIVALENTS AND RE_2
CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Cash And Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows as of December 31, 2018 and 2019. December 31 (in US$ thousands) 2018 2019 Cash and savings accounts $ 59,302 $ 57,736 Time deposits 6 7 Cash and cash equivalents reported on the consolidated balance sheets 59,308 57,743 Cash restricted as performance bond 518 531 Total cash, cash equivalents and restricted cash reported on the consolidated statements of cash flows $ 59,826 $ 58,274 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) 2018 2019 Taiwan $ 54,078 $ 52,261 Hong Kong 5,732 5,997 China 16 16 $ 59,826 $ 58,274 |
ACCOUNTS RECEIVABLE - NET (Tabl
ACCOUNTS RECEIVABLE - NET (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Accounts Receivable Net | Accounts receivable consist of the following: December 31 (in US$ thousands) 2018 2019 Accounts receivable $ 528 $ 371 Less: Allowance for doubtful accounts (5 ) (3 ) $ 523 $ 368 |
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, 2017, 2018 and 2019: (in US$ thousands) 2017 2018 2019 Balance at beginning of year $ 32 $ 12 $ 5 Additions: Bad debt expense 127 23 24 Less: Write-off (149 ) (29 ) (26 ) Translation adjustment 2 (1 ) — Balance at end of year $ 12 $ 5 $ 3 |
OTHER CURRENT ASSETS (Tables)
OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other Current Assets | Other current assets consist of the following: December 31 (in US$ thousands) 2018 2019 Loans receivable - current $ 29 $ 30 Less: Allowance for loans receivable - current (29 ) (30 ) Other receivable 3 — Other 121 139 $ 124 $ 139 |
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, 2017, 2018 and 2019: (in US$ thousands) 2017 2018 2019 Balance at beginning of year $ 28 $ 30 $ 29 Reversal for collection of bad debt — — — Translation adjustment 2 (1 ) 1 Balance at end of year $ 30 $ 29 $ 30 |
LEASE ARRANGEMENTS (Tables)
LEASE ARRANGEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Summary of Right of Use Asset | a. Right-of-use assets 2019 (in US$ thousands) Cost Accumulated depreciation Net Recognition of right-of-use assets upon adoption of ASC 842 at beginning of year (Note 1) $ 1,056 $ — $ 1,056 Recognition of impairment upon adoption of ASC 842 at beginning of year (Note 1) (1,056 ) — (1,056 ) Balance at end of year $ — $ — $ — |
Summary of Lease Liabilities | b. Lease liabilities (in US$ thousands) December 31, 2019 Carrying amount: Current portion (classified under other current liabilities) $ 498 Noncurrent portion 94 $ 592 |
Supplemental Disclosures of Cash Flow Information Related to Leases | Supplemental disclosures of cash flow information consist of the following: (in US$ thousands) For the Year ended December 31, 2019 Cash paid for operating leases $ 510 Right-of-use assets obtained in exchange for operating lease liabilities 1,056 |
Reconciliation of Undiscounted Cash Flows to Operating Lease Liabilities | The table below reconciles (in US$ thousands) Operating Leases Year 2020 $ 504 2021 92 2022 1 2023 1 2024 1 Total minimum lease payments 599 Less: amount of lease payments representing interest (7 ) Present value of future minimum lease payments 592 Less: current obligation under leases (498 ) Non-current lease obligations $ 94 (in US$ thousands) Amount 2020 $ 504 2021 92 2022 1 2023 1 2024 and after 1 $ 599 |
Schedule of Future Minimum Lease Payments Under Lease Agreements | We have elected the transition option under ASU 2016-02 and continued to apply the prior accounting standard for leases, including the disclosure requirements, in the comparative periods. Future minimum lease p ayments due under those lease agreements as of December 31, 2018 were as follows: (in US$ thousands) December 31, 2018 Not later than 1 year $ 450 Later than 1 year and not later than 5 years 504 Later than 5 years — Balance at end of year $ 954 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | Accrued expenses consist of the following: December 31 (in US$ thousands) 2018 2019 Accrued professional fees $ 429 $ 401 Accrued compensation 170 200 Accrued royalties 275 152 Accrued advertising expenses 134 76 Accrued director compensation and liability insurance 70 70 Other 355 381 $ 1,433 $ 1,280 |
DEFERRED REVENUE (Tables)
DEFERRED REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Revenue [Abstract] | |
Summary of Deferred Revenue | Deferred revenue consists of the following: December 31 (in US$ thousands) 2018 2019 Unused virtual points $ 1,094 $ 999 Unamortized virtual items 276 366 $ 1,370 $ 1,365 |
PENSION BENEFITS (Tables)
PENSION BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2018 and 2019: December 31 (in US$ thousands) 2018 2019 Benefit Obligation $ 320 $ 326 Fair value of plan assets 376 411 $ (56 ) $ (85 ) Amounts recognized in the balance sheet consist of: Noncurrent liabilities (assets) $ (56 ) $ (85 ) Accumulated other comprehensive income — — Net amount recognized $ (56 ) $ (85 ) Amounts recognized in accumulated comprehensive income (loss) consist of: Unrecognized net gain (loss) $ (86 ) $ (66 ) |
Pension Cost | For the years ended December 31, 2017, 2018 and 2019, the net period pension cost consisted of the following: December 31 (in US$ thousands) 2017 2018 2019 Service cost $ — $ — $ — Interest cost 4 5 4 Expected return on plan assets (5 ) (6 ) (5 ) Amortization of net loss 1 2 3 Curtailment gain — — — $ — $ 1 $ 2 |
Weighted Average Assumptions Used to Determine Benefit Obligations | Weighted average assumptions used to determine benefit obligations for 2018 and 2019 were as follows: December 31 2018 2019 Discount rate 1.375 % 1.125 % 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: 2018 2019 Discount rate 1.625 % 1.375 % Rate of return on plan assets 1.625 % 1.375 % Rate of compensation increase 2.00 % 2.00 % |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2017 $ (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 ) Net current period change (332 ) — (17 ) (349 ) Balance at December 31, 2018 (22,246 ) — (86 ) (22,332 ) Net current period change 66 — 20 86 Balance at December 31, 2019 $ (22,180 ) $ — $ (66 ) $ (22,246 ) |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019. 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~$21.20 — 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 2018 and 2019. The following table summarizes the assumptions used in the model for options granted during 2017: 2017 Option term (years) 6.01 Volatility 48.997% Weighted-average volatility 48.997% Risk-free interest rate 2.031% Dividend yield 0% Weighted-average fair value of option granted $ 1.41 |
Summary of Option Transactions | Option transactions during the last three years are summarized as follows: 2017 2018 2019 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 $ 20.63 613 $ 14.78 308 $ 10.88 229 Options granted 2.90 4 — — — — Options exercised — — — — — — Options Forfeited / canceled / expired 26.24 (309 ) 26.08 (79 ) 3.85 (4 ) Balance at December 31 $ 14.78 308 $ 10.88 229 $ 11.00 225 1.07 $ — Exercisable at December 31 $ 15.16 298 $ 10.97 227 $ 11.05 224 1.03 $ — Vested and expected to vest at December 31 $ 14.78 308 $ 10.88 229 $ 11.00 225 1.07 $ — |
Information about Stock Options Outstanding | The following table sets forth information about stock options outstanding at December 31, 2019: 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 8 4.68 years Under $5 7 $5~$50 217 0.93 years $5~$50 217 $50~$100 — $50~$100 — 225 224 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income (Loss) Before Income Taxes by Geographic Location | Income (loss) before income taxes by geographic location is as follows: (in US$ thousands ) 2017 2018 2019 Taiwan operations $ 893 $ (3,146 ) $ (2,191 ) Non-Taiwan operations (1,478 ) (47 ) 532 $ (585 ) $ (3,193 ) $ (1,659 ) |
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 ) 2017 2018 2019 Taiwan: Current $ — $ — $ — Deferred — — — $ — $ — $ — Non-Taiwan: Current $ (1 ) $ — $ — Deferred 1,672 — — $ 1,671 $ — $ — Total current income tax benefit (expense) $ (1 ) $ — $ — Total deferred income tax benefit $ 1,672 $ — $ — Total income tax benefit $ 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: 2017 2018 2019 Taiwan statutory rate, including taxes on income and retained earnings 23.85 % 24.00 % 24.00 % Foreign tax differential 1.10 % 3.43 % 10.14 % Reversal of deferred withholding tax liabilities 285.84 % — — Tax-exempt income — — — Non-deductible items - bad debts — (0.22 )% — Other non-deductible expenses (44.79 )% (3.50 )% (7.01 )% Changes in unrecognized tax benefits — 17.17 % — Cumulative effect of initially applying new accounting standards — — 13.13 % Change in deferred tax assets and valuation allowance 13.43 % (42.02 )% (43.38 )% Change in tax rate — 0.15 % — Other 6.33 % 0.99 % 3.12 % Effective rate 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, 2017, 2018 and 2019 are as follows: (in US$ thousands) 2017 2018 2019 Balance at beginning of year $ 11,852 $ 9,928 $ 11,765 Subsequent reversal and utilization of valuation allowance (3,352 ) — (17 ) Additions to valuation allowance 745 2,107 723 Exchange differences 683 (270 ) 261 Balance at end of year $ 9,928 $ 11,765 $ 12,732 |
Net Operating Loss Carryforwards Available to Offset Future Income | As of December 31, 2019, we had net operating loss carryforwards available to offset future taxable income, shown below by major jurisdictions: Jurisdiction Amount Expiring year Hong Kong $ 15,759 indefinite Taiwan 39,189 2020~2029 $ 54,948 |
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 2017, 2018 and 2019 are as follows: (in US$ thousands) 2017 2018 2019 Balance at beginning of year $ 1,024 $ 1,110 $ — Increase related to prior year tax positions — — — Decrease related to prior year tax positions — — — Settlement of intercompany charge adjustments — (1,095 ) — Expiration of statute of limitations — — — Exchange differences 86 (15 ) — Balance at end of year $ 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 2018 2019 Net operating loss carryforwards $ 11,136 $ 12,005 Share-based compensation 292 299 Investments 131 134 Lease right-of-use assets — 122 Intangible assets and goodwill 119 64 Other 87 108 11,765 12,732 Less: valuation allowance (11,765 ) (12,732 ) Deferred tax assets - net $ — $ — |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Reconciliation of Undiscounted Cash Flows to Operating Lease Liabilities | The table below reconciles (in US$ thousands) Operating Leases Year 2020 $ 504 2021 92 2022 1 2023 1 2024 1 Total minimum lease payments 599 Less: amount of lease payments representing interest (7 ) Present value of future minimum lease payments 592 Less: current obligation under leases (498 ) Non-current lease obligations $ 94 (in US$ thousands) Amount 2020 $ 504 2021 92 2022 1 2023 1 2024 and after 1 $ 599 |
SEGMENT, PRODUCT, GEOGRAPHIC _2
SEGMENT, PRODUCT, GEOGRAPHIC AND OTHER INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Summary of Revenues From Major Products Line | Revenues from our Company’s major product lines are summarized as follow: (in US$ thousands) 2017 2018 2019 MahJong and casino casual games $ 2,364 $ 1,816 $ 1,778 PC-based massive multiplayer online games 1,400 1,272 1,204 Mobile role playing games 7,776 3,998 3,538 Other games and game related revenues 56 15 125 $ 11,596 $ 7,101 $ 6,645 |
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 2017 2018 2019 Taiwan $ 2,349 $ 2,958 $ 3,074 Hong Kong 9,247 4,143 3,571 $ 11,596 $ 7,101 $ 6,645 |
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 2017 2018 2019 Taiwan $ 62 $ 94 $ — Hong Kong 96 27 — $ 158 $ 121 $ — |
Principal Activities, Basis o_4
Principal Activities, Basis of Presentation, and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Description Of Business Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Maximum estimated service period for players | 6 months | ||
Advertising expenses | $ 400 | $ 1,200 | $ 1,900 |
Prepaid advertising costs | 0 | 1 | |
Cumulative effect adjustment recorded to accumulated deficit | (1,056) | 346 | |
Adjustments Due to Adoption of New Leases Accounting Standard | |||
Description Of Business Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||
Cumulative effect adjustment recorded to accumulated deficit | $ 1,100 | ||
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 | 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 | $ 531 | $ 518 |
Useful Lives of Property Plant
Useful Lives of Property Plant and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
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 |
Summary of Adjustment to Our Co
Summary of Adjustment to Our Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Shareholders' equity | |||
Accumulated deficit | $ (230,961) | $ (228,246) | |
Accounting Standards Update 2016 02 | |||
Liabilities | |||
Other noncurrent liabilities | $ 1,056 | ||
Shareholders' equity | |||
Accumulated deficit | (229,302) | ||
Adjustments Due to Adoption of New Leases Accounting Standard | Accounting Standards Update 2016 02 | |||
Liabilities | |||
Other noncurrent liabilities | 1,056 | ||
Shareholders' equity | |||
Accumulated deficit | $ (1,056) |
Reconciliation of Denominators
Reconciliation of Denominators of Basic and Diluted Per Share Computations (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Options | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive shares excluded from computation of earnings per-share | 225,000 | 229,000 | 308,000 |
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 | $ 2.90 | $ 2.9 |
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 | $ 12.35 | $ 12.35 | $ 80.05 |
Restricted Stock Units (RSUs) | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive shares excluded from computation of earnings per-share | 0 | 0 | 0 |
Summary of Changes to Prepaid L
Summary of Changes to Prepaid Licensing and Royalty Fees (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Prepaid Expenses [Line Items] | |||
Balance at beginning of year | $ 435 | ||
Addition | (10) | $ (267) | $ (137) |
Amortization and usage | (47) | (36) | (12) |
Impairment charges (Note 4) | (85) | (244) | |
Balance at end of year | 44 | 435 | |
Prepaid Licensing and Royalty Fees | |||
Prepaid Expenses [Line Items] | |||
Balance at beginning of year | 435 | 459 | 1,020 |
Addition | 205 | 968 | 486 |
Amortization and usage | (511) | (747) | (1,040) |
Exchange difference | (1) | (7) | |
Impairment charges (Note 4) | (85) | (244) | |
Balance at end of year | $ 44 | $ 435 | $ 459 |
Prepaid Licensing and Royalty_3
Prepaid Licensing and Royalty Fees - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Prepaid Expenses [Line Items] | |||
Impairment losses on prepaid licensing and royalty fees | $ 85 | $ 244 | |
Proceeds from return of prepaid licensing and royalty fees of terminated license | $ 1,750 | ||
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, 2019 | Dec. 31, 2018 |
Financial assets | ||
Cash and cash equivalents | $ 57,743 | $ 59,308 |
Accounts receivable | 368 | 523 |
Refundable deposits | 199 | 197 |
Financial liabilities | ||
Accounts payable | 64 | 104 |
Accrued expenses | 1,280 | 1,433 |
Lease liabilities - current and noncurrent | 592 | |
Carrying Amount | ||
Financial assets | ||
Cash and cash equivalents | 57,743 | 59,308 |
Accounts receivable | 368 | 523 |
Restricted cash | 531 | 518 |
Refundable deposits | 199 | 197 |
Financial liabilities | ||
Accounts payable | 64 | 104 |
Accrued expenses | 1,280 | 1,433 |
Lease liabilities - current and noncurrent | 592 | |
Estimated Fair Value | ||
Financial assets | ||
Cash and cash equivalents | 57,743 | 59,308 |
Accounts receivable | 368 | 523 |
Restricted cash | 531 | 518 |
Refundable deposits | 199 | 197 |
Financial liabilities | ||
Accounts payable | 64 | 104 |
Accrued expenses | 1,280 | $ 1,433 |
Lease liabilities - current and noncurrent | $ 592 |
Assets and Liabilities Measured
Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 538 | $ 524 |
Bank Time Deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents - time deposits | 7 | 6 |
Restricted cash - time deposits | 531 | 518 |
Fair Value Measurements Using Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 538 | 524 |
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 | 7 | 6 |
Restricted cash - time deposits | $ 531 | $ 518 |
Summary of Assets and Liabiliti
Summary of Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Property, plant and equipment, total impairment loss | $ 109 | ||
Intangible assets, total impairment losses | 15 | ||
Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Total | $ 84 | ||
Prepaid licensing and royalty fees, total impairment losses | [1] | 85 | 244 |
Property, plant and equipment, total impairment loss | [2] | 109 | |
Intangible assets, total impairment losses | [3] | 15 | |
Total | $ 209 | 244 | |
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 | [1] | 84 | |
Fair Value, Measurements, Nonrecurring | Fair Value Measurements Using Level 3 | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Total | 84 | ||
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 | [1] | $ 84 | |
[1] | Impairment losses on certain prepaid licensing and royalty fees which were determined to be impaired: In 2018 and 2019, certain prepaid licensing and royalty fees were written down to $84 thousand and zero, resulting in an impairment charge of $244 thousand and $85 thousand, respectively. 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 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 and related royalties are re-valued 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. | ||
[2] | Impairment losses on certain property, plant, and equipment which were determined to be impaired: In 2019, we recognized an impairment loss of $109 thousand on property, plant and equipment as while the recent years’ operating losses were expected to continue in the short-term, the carrying amounts of those long-lived assets would not be recoverable based on cash flow projections. | ||
[3] | Impairment losses on certain intangible assets which were determined to be impaired: In 2019, we recognized an impairment loss of $15 thousand on intangible assets as while the recent years’ operating losses were expected to continue in the short-term, the carrying amounts of those intangible assets would not be recoverable based on cash flow projections. |
Summary of Assets and Liabili_2
Summary of Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Prepaid licensing and royalty, total impairment losses | $ 85 | $ 244 | |
Property, plant and equipment, total impairment loss | 109 | ||
Intangible assets, total impairment losses | 15 | ||
Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Prepaid licensing and royalty, written down | 0 | 84 | |
Prepaid licensing and royalty, total impairment losses | 85 | $ 244 | |
Property, plant and equipment, total impairment loss | [1] | 109 | |
Intangible assets, total impairment losses | [2] | $ 15 | |
[1] | Impairment losses on certain property, plant, and equipment which were determined to be impaired: In 2019, we recognized an impairment loss of $109 thousand on property, plant and equipment as while the recent years’ operating losses were expected to continue in the short-term, the carrying amounts of those long-lived assets would not be recoverable based on cash flow projections. | ||
[2] | Impairment losses on certain intangible assets which were determined to be impaired: In 2019, we recognized an impairment loss of $15 thousand on intangible assets as while the recent years’ operating losses were expected to continue in the short-term, the carrying amounts of those intangible assets would not be recoverable based on cash flow projections. |
Cash, Cash Equivalents and Re_3
Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Cash And Cash Equivalents [Abstract] | ||||
Cash and savings accounts | $ 57,736 | $ 59,302 | ||
Time deposits | 7 | 6 | ||
Cash and cash equivalents reported on the consolidated balance sheets | 57,743 | 59,308 | ||
Cash restricted as performance bond | 531 | 518 | ||
Total cash, cash equivalents and restricted cash reported on the consolidated statements of cash flows | $ 58,274 | $ 59,826 | $ 64,177 | $ 66,211 |
Cash, Cash Equivalents and Re_4
Cash, Cash Equivalents and Restricted Cash - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Performance Bonds | Restricted Cash | ||
Cash and Cash Equivalents [Line Items] | ||
Escrow Deposit | $ 531 | $ 518 |
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, 2019 | Dec. 31, 2018 |
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents and Restricted cash | $ 58,274 | $ 59,826 |
Taiwan | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents and Restricted cash | 52,261 | 54,078 |
Hong Kong | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents and Restricted cash | 5,997 | 5,732 |
China | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents and Restricted cash | $ 16 | $ 16 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Accounts receivable | $ 371 | $ 528 |
Less: Allowance for doubtful accounts | (3) | (5) |
Accounts receivable - net | $ 368 | $ 523 |
Summary of the Changes in Allow
Summary of the Changes in Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Receivables [Abstract] | |||
Balance at beginning of year | $ 5 | $ 12 | $ 32 |
Additions: Bad debt expense | 24 | 23 | 127 |
Less: Write-off | (26) | (29) | (149) |
Translation adjustment | (1) | 2 | |
Balance at end of year | $ 3 | $ 5 | $ 12 |
Other Current Assets (Detail)
Other Current Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Other Assets [Abstract] | ||||
Loans receivable - current | $ 30 | $ 29 | ||
Less: Allowance for loans receivable - current | (30) | (29) | $ (30) | $ (28) |
Other receivable | 3 | |||
Other | 139 | 121 | ||
Other current assets | $ 139 | $ 124 |
Reconciliation of Changes in Al
Reconciliation of Changes in Allowance for Loans Receivable Current (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Receivables [Abstract] | |||
Balance at beginning of year | $ 29 | $ 30 | $ 28 |
Translation adjustment | 1 | (1) | 2 |
Balance at end of year | $ 30 | $ 29 | $ 30 |
Lease Arrangements - Summary of
Lease Arrangements - Summary of Right of Use Assets (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Recognition of Right-of-Use Assets | |
Lessee Lease Description [Line Items] | |
Cost | $ 1,056 |
Net | 1,056 |
Recognition of Impairment | |
Lessee Lease Description [Line Items] | |
Cost | (1,056) |
Net | $ (1,056) |
Lease Arrangements - Summary _2
Lease Arrangements - Summary of Lease Liabilities (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
Current portion (classified under other current liabilities) | $ 498 |
Noncurrent portion | 94 |
Lease liabilities | $ 592 |
Lease Arrangements - Additional
Lease Arrangements - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Lessee Lease Description [Line Items] | |||
Operating lease expense | $ 15 | ||
Rent expense | $ 493 | $ 577 | |
Minimum | |||
Lessee Lease Description [Line Items] | |||
Discount rates for lease liabilities | 1.70% | ||
Minimum | Office Premises, Office Equipment and Automobile | |||
Lessee Lease Description [Line Items] | |||
Lease term | 2 years | ||
Maximum | |||
Lessee Lease Description [Line Items] | |||
Discount rates for lease liabilities | 2.80% | ||
Maximum | Office Premises, Office Equipment and Automobile | |||
Lessee Lease Description [Line Items] | |||
Lease term | 5 years |
Lease Arrangements - Supplement
Lease Arrangements - Supplemental Disclosures of Cash Flow Information Related to Leases (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Cash paid for operating leases | $ 510 |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 1,056 |
Lease Arrangements - Reconcilia
Lease Arrangements - Reconciliation of Undiscounted Cash Flows to Operating Lease Liabilities (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Operating Lease Liabilities Payments Due [Abstract] | |
2020 | $ 504 |
2021 | 92 |
2022 | 1 |
2023 | 1 |
2024 | 1 |
Total minimum lease payments | 599 |
Less: amount of lease payments representing interest | (7) |
Lease liabilities | 592 |
Less: current obligation under leases | (498) |
Non-current lease obligations | $ 94 |
Lease Arrangements - Schedule o
Lease Arrangements - Schedule of Future Minimum Lease Payments Under Lease Agreements (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
Not later than 1 year | $ 450 |
Later than 1 year and not later than 5 years | 504 |
Balance at end of year | $ 954 |
Accrued Expenses (Detail)
Accrued Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Payables And Accruals [Abstract] | ||
Accrued professional fees | $ 401 | $ 429 |
Accrued compensation | 200 | 170 |
Accrued royalties | 152 | 275 |
Accrued advertising expenses | 76 | 134 |
Accrued director compensation and liability insurance | 70 | 70 |
Other | 381 | 355 |
Accrued expenses | $ 1,280 | $ 1,433 |
Summary of Deferred Revenue (De
Summary of Deferred Revenue (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | $ 1,365 | $ 1,370 |
Unused Virtual Point | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 999 | 1,094 |
Unamortized Virtual Items | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | $ 366 | $ 276 |
Deferred Revenue - Additional I
Deferred Revenue - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2017 | |
Deferred Revenue [Abstract] | ||
Breakage amount recognized as revenue | $ 63 | |
Cumulative breakage amount recognized as revenue | $ 346 |
Pension Benefits - Additional I
Pension Benefits - Additional Information (Detail) | 12 Months Ended | ||||
Dec. 31, 2019USD ($) | Dec. 31, 2019TWD ($) | Dec. 31, 2019HKD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Accumulated benefit obligation | $ 238,000 | $ 233,000 | |||
Prepaid pension | 85,000 | 56,000 | |||
Fair value of plan assets | 411,000 | 376,000 | |||
Accumulated other comprehensive loss | (66,000) | (86,000) | |||
Net periodic benefit cost | 2,000 | 1,000 | $ 0 | ||
Defined benefit plan, expected contribution in 2020 | 8,000 | ||||
Expected future benefit payments from 2020 to 2024 | 1,000 | ||||
Expected future benefit payments from 2025 to 2029 | $ 14,000 | ||||
Hong Kong | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Percentage of salaries and wages contributed | 5.00% | 5.00% | 5.00% | ||
Pension Plan | Operating Expenses | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total amount of defined contribution pension expenses | $ 187,000 | $ 210,000 | $ 190,000 | ||
Pension Plan | Taiwan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Percentage of salaries and wages contributed | 2.00% | 2.00% | 2.00% | ||
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 | $ 300 | $ 9,000 | |||
Maximum | Hong Kong | Monthly Payment | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Maximum monthly contribution for each employee | $ 193 | $ 1,500 | |||
Minimum | Pension Plan | Taiwan | |||||
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, 2019 | Dec. 31, 2018 |
Compensation And Retirement Disclosure [Abstract] | ||
Benefit Obligation | $ 326 | $ 320 |
Fair value of plan assets | 411 | 376 |
Defined Benefit Plan, Funded Status of Plan | (85) | (56) |
Noncurrent liabilities (assets) | (85) | (56) |
Net amount recognized | (85) | (56) |
Amounts recognized in accumulated comprehensive income (loss) consist of: | ||
Unrecognized net gain (loss) | $ (66) | $ (86) |
Pension Cost (Detail)
Pension Cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |||
Interest cost | $ 4 | $ 5 | $ 4 |
Expected return on plan assets | (5) | (6) | (5) |
Amortization of net loss | 3 | 2 | 1 |
Net periodic benefit cost | $ 2 | $ 1 | $ 0 |
Weighted Average Assumptions Us
Weighted Average Assumptions Used to Determine Benefit Obligations (Detail) | Dec. 31, 2019 | Dec. 31, 2018 |
Compensation And Retirement Disclosure [Abstract] | ||
Discount rate | 1.125% | 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, 2019 | Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | ||
Discount rate | 1.375% | 1.625% |
Rate of return on plan assets | 1.375% | 1.625% |
Rate of compensation increase | 2.00% | 2.00% |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019Vote | |
Equity [Abstract] | |
Number of votes per share | 1 |
Accumulated Balances of Other C
Accumulated Balances of Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | $ (22,332) | $ (21,983) | $ (22,611) |
Net current period change | 86 | (349) | 630 |
Reclassification adjustments for gains reclassified into income | (2) | ||
Ending balance | (22,246) | (22,332) | (21,983) |
Foreign currency items | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (22,246) | (21,914) | (22,555) |
Net current period change | 66 | (332) | 641 |
Ending balance | (22,180) | (22,246) | (21,914) |
Unrealized gain on securities | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | 2 | ||
Reclassification adjustments for gains reclassified into income | (2) | ||
Pension and post retirement benefit plans | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (86) | (69) | (58) |
Net current period change | 20 | (17) | (11) |
Ending balance | $ (66) | $ (86) | $ (69) |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 1,000 | $ 3,000 | $ (7,000) |
Stock-based compensation tax benefit recognized | $ 299,000 | $ 292,000 | |
Share-based compensation, number of shares reserved for issuance, contractual terms | 6 years 3 days | ||
Share-based compensation, number of options exercised | 0 | 0 | 0 |
Options granted to employees on grant date | 0 | 0 | |
Unrecognized compensation cost related to nonvested options | $ 300 | ||
Unrecognized compensation cost related to nonvested options, expected recognition period | 4 months 6 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 | $ 1,000 | $ 3,000 | $ (7,000) |
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, 2019 | Dec. 31, 2017 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted awards | 4,000 | ||
Options' exercise price | $ 2.90 | ||
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 | $ 21.20 | ||
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 1,400Â thousand common shares. | ||
[2] | The granted awards, net of forfeited or canceled options or shares, were within reserved shares of 200Â thousand common shares. | ||
[3] | The granted awards, net of forfeited or canceled options or shares, were within reserved shares of 400Â thousand common shares. | ||
[4] | The granted awards, net of forfeited or canceled options, were within reserved shares of 300Â thousand common shares. | ||
[5] | The granted awards, net of forfeited or canceled options, were within reserved shares of 200Â thousand common shares. |
Summary of General Terms of S_2
Summary of General Terms of Stock-Based Compensation Plans for Awards Granted (Parenthetical) (Detail) - Maximum | Dec. 31, 2019shares |
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) | 12 Months Ended |
Dec. 31, 2017$ / shares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Option term (years) | 6 years 3 days |
Volatility | 48.997% |
Weighted-average volatility | 48.997% |
Risk-free interest rate | 2.031% |
Dividend yield | 0.00% |
Weighted-average fair value of option granted | $ 1.41 |
Summary of Option Transactions
Summary of Option Transactions (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Weighted Average Exercise Price | |||
Beginning Balance | $ 10.88 | $ 14.78 | $ 20.63 |
Options granted | 2.90 | ||
Options Forfeited / canceled / expired | 3.85 | 26.08 | 26.24 |
Ending Balance | 11 | 10.88 | 14.78 |
Exercisable at December 31 | 11.05 | 10.97 | 15.16 |
Ending Balance | $ 11 | $ 10.88 | $ 14.78 |
No. of Shares | |||
Beginning Balance | 229,000 | 308,000 | 613,000 |
Options granted | 4,000 | ||
Options exercised | 0 | 0 | 0 |
Options Forfeited / canceled / expired | (4,000) | (79,000) | (309,000) |
Ending Balance | 225,000 | 229,000 | 308,000 |
Exercisable at December 31 | 224,000 | 227,000 | 298,000 |
Vested and expected to vest at December 31 | 225,000 | 229,000 | 308,000 |
Weighted- Average Remaining Contractual Term | |||
Balance at December 31 | 1 year 25 days | ||
Exercisable at December 31 | 1 year 10 days | ||
Vested and expected to vest at December 31 | 1 year 25 days | ||
Aggregate Intrinsic Value | |||
Balance at December 31 | $ 0 | ||
Exercisable at December 31 | 0 | ||
Vested and expected to vest at December 31 | $ 0 |
Information about Stock Options
Information about Stock Options Outstanding (Detail) - $ / shares shares in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding, Exercise price | $ 11 | $ 10.88 | $ 14.78 | $ 20.63 |
Options outstanding, No. of Shares | 225 | |||
Option currently exercisable, Exercise price | $ 11.05 | $ 10.97 | $ 15.16 | |
Option currently exercisable, No. of Shares | 224 | |||
Range One | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding, No. of Shares | 8 | |||
Options outstanding, Weighted average remaining contractual life | 4 years 8 months 4 days | |||
Option currently exercisable, No. of Shares | 7 | |||
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 | 217 | |||
Options outstanding, Weighted average remaining contractual life | 11 months 4 days | |||
Option currently exercisable, No. of Shares | 217 | |||
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 | 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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting [Abstract] | |||
Taiwan operations | $ (2,191) | $ (3,146) | $ 893 |
Non-Taiwan operations | 532 | (47) | (1,478) |
LOSS BEFORE INCOME TAXES | $ (1,659) | $ (3,193) | $ (585) |
Components of Income Tax Benefi
Components of Income Tax Benefit (Expense) by Taxing Jurisdiction (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Components Of Income Tax Expense Benefit [Line Items] | |
Current | $ (1) |
Deferred | 1,672 |
Total income tax benefit (expense) | 1,671 |
Foreign Tax Authority | |
Components Of Income Tax Expense Benefit [Line Items] | |
Current | (1) |
Deferred | 1,672 |
Total income tax benefit (expense) | $ 1,671 |
Reconciliation of Effective Tax
Reconciliation of Effective Tax Rate Related to Statutory United States Federal Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Taiwan statutory rate, including taxes on income and retained earnings | 24.00% | 24.00% | 23.85% |
Foreign tax differential | 10.14% | 3.43% | 1.10% |
Reversal of deferred withholding tax liabilities | 285.84% | ||
Non-deductible items - bad debts | (0.22%) | ||
Other non-deductible expenses | (7.01%) | (3.50%) | (44.79%) |
Changes in unrecognized tax benefits | 17.17% | ||
Cumulative effect of initially applying new accounting standards | 13.13% | ||
Change in deferred tax assets and valuation allowance | (43.38%) | (42.02%) | 13.43% |
Change in tax rate | 0.15% | ||
Other | 3.12% | 0.99% | 6.33% |
Effective rate | 285.76% |
Significant Components of Defer
Significant Components of Deferred Tax Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Income Tax Disclosure [Abstract] | ||||
Net operating loss carryforwards | $ 12,005 | $ 11,136 | ||
Share-based compensation | 299 | 292 | ||
Investments | 134 | 131 | ||
Lease right-of-use assets | 122 | |||
Intangible assets and goodwill | 64 | 119 | ||
Other | 108 | 87 | ||
Deferred Tax Assets, Gross, Total | 12,732 | 11,765 | ||
Less: valuation allowance | $ (12,732) | (11,765) | $ (9,928) | $ (11,852) |
Deferred tax assets - net | $ 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Oct. 31, 2017 | |
Income Tax Contingency [Line Items] | ||||
Reversal of deferred income tax liabilities potential withholding tax | $ 1,671,000 | |||
Corporate income tax rate | 20.00% | 20.00% | 17.00% | |
Change in tax rate for undistributed portion of earnings | 5.00% | 5.00% | 10.00% | |
Unrecognized tax benefits that if recognized would affect the effective tax rate | $ 0 | $ 0 | $ 0 | |
Unrecognized tax benefits that if recognized would be offset by a valuation allowance | 0 | 0 | 1,100,000 | |
Unrecognized tax benefits, income tax penalties and interest expense | $ 0 | $ 0 | $ 0 | |
Taiwan | Undistributed Foreign Earnings | ||||
Income Tax Contingency [Line Items] | ||||
Tax loss carryforward period | 10 years |
Reconciliation of Beginning and
Reconciliation of Beginning and Ending Amounts of Valuation Allowance on Deferred Tax Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Valuation Allowance [Abstract] | |||
Balance at beginning of year | $ 11,765 | $ 9,928 | $ 11,852 |
Subsequent reversal and utilization of valuation allowance | (17) | (3,352) | |
Additions to valuation allowance | 723 | 2,107 | 745 |
Exchange differences | 261 | (270) | 683 |
Balance at end of year | $ 12,732 | $ 11,765 | $ 9,928 |
Net Operating Loss Carryforward
Net Operating Loss Carryforwards available to Offset Future Taxable Income (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Operating Loss Carryforwards [Line Items] | |
Amount | $ 54,948 |
Hong Kong | |
Operating Loss Carryforwards [Line Items] | |
Amount | $ 15,759 |
Expiring year | Indefinite |
Taiwan | |
Operating Loss Carryforwards [Line Items] | |
Amount | $ 39,189 |
Taiwan | Earliest Tax Year | |
Operating Loss Carryforwards [Line Items] | |
Expiring year | 2020 |
Taiwan | Latest Tax Year | |
Operating Loss Carryforwards [Line Items] | |
Expiring year | 2029 |
Reconciliation of Beginning a_2
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits Excluding Effects of Accrued Interest (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Balance at beginning of year | $ 1,110 | $ 1,024 |
Settlement of intercompany charge adjustments | (1,095) | |
Exchange differences | $ (15) | 86 |
Balance at end of year | $ 1,110 |
Future Aggregate Minimum Lease
Future Aggregate Minimum Lease Payments Required Under Operating Leases (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 504 |
2021 | 92 |
2022 | 1 |
2023 | 1 |
2024 and after | 1 |
Total minimum lease payments | $ 599 |
Commitment and Contingencies -
Commitment and Contingencies - Additional Information (Detail) | Jan. 08, 2020USD ($) | Jan. 08, 2020TWD ($) | Jan. 15, 2018USD ($) | Jan. 15, 2018TWD ($) | Jan. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Operating Leased Assets [Line Items] | ||||||||
Contractual obligation | $ 0 | |||||||
Revenue | 6,645,000 | $ 7,101,000 | $ 11,596,000 | |||||
Loss contingency, Obligated payment | $ 2,697,471 | $ 79,477,648 | ||||||
Loss exceeding net worth | 100,000 | |||||||
Subsequent Event | ||||||||
Operating Leased Assets [Line Items] | ||||||||
Litigation settlement, amount | $ 892,763 | $ 27,084,180 | ||||||
License | ||||||||
Operating Leased Assets [Line Items] | ||||||||
Expected payment for incentive fee | 30,000 | |||||||
Revenue | $ 500,000 | |||||||
License agreement extended commencement period | 2020-01 | |||||||
License agreement extended expiration period | 2022-01 | |||||||
License | Extended and Amended License Agreement | Subsequent Event | ||||||||
Operating Leased Assets [Line Items] | ||||||||
Expected payment for incentive fee | $ 30,000 | |||||||
Revenue | $ 500,000 | |||||||
License | Minimum | ||||||||
Operating Leased Assets [Line Items] | ||||||||
License agreement period | 2018-01 | |||||||
License | Maximum | ||||||||
Operating Leased Assets [Line Items] | ||||||||
License agreement period | 2020-01 |
Segment, Product, Geographic _3
Segment, Product, Geographic and Other Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Revenues From Major Product Lin
Revenues From Major Product Lines (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue from External Customer [Line Items] | |||
Revenue | $ 6,645 | $ 7,101 | $ 11,596 |
MahJong and Casino Casual Games | |||
Revenue from External Customer [Line Items] | |||
Revenue | 1,778 | 1,816 | 2,364 |
PC-Based Multiplayer Online Games | |||
Revenue from External Customer [Line Items] | |||
Revenue | 1,204 | 1,272 | 1,400 |
Mobile Role Playing Games | |||
Revenue from External Customer [Line Items] | |||
Revenue | 3,538 | 3,998 | 7,776 |
Other games and game related revenues | |||
Revenue from External Customer [Line Items] | |||
Revenue | $ 125 | $ 15 | $ 56 |
Revenue from Unaffiliated Custo
Revenue from Unaffiliated Customers by Geographic Region (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 6,645 | $ 7,101 | $ 11,596 |
Taiwan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 3,074 | 2,958 | 2,349 |
Hong Kong | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 3,571 | $ 4,143 | $ 9,247 |
Net Long-Lived Assets by Geogra
Net Long-Lived Assets by Geographic Region (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net long-lived assets | $ 121 | $ 158 |
Taiwan | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net long-lived assets | 94 | 62 |
Hong Kong | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net long-lived assets | $ 27 | $ 96 |