Document_And_Entity_Informatio
Document And Entity Information | 12 Months Ended |
Dec. 31, 2013 | |
Document and Entity Information [Abstract] | ' |
Entity Registrant Name | 'CHINA FINANCE ONLINE CO. LTD |
Document Type | '20-F |
Current Fiscal Year End Date | '--12-31 |
Entity Common Stock, Shares Outstanding | 111,145,633 |
Amendment Flag | 'false |
Entity Central Index Key | '0001297830 |
Entity Current Reporting Status | 'Yes |
Entity Voluntary Filers | 'No |
Entity Filer Category | 'Non-accelerated Filer |
Entity Well-known Seasoned Issuer | 'No |
Document Period End Date | 31-Dec-13 |
Document Fiscal Year Focus | '2013 |
Document Fiscal Period Focus | 'FY |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Current assets: | ' | ' |
Cash and cash equivalents | $36,370,950 | $40,905,996 |
Restricted cash | 3,946 | 28,874,284 |
Prepaid expenses and other current assets | 3,306,679 | 2,780,347 |
Advances to employees | ' | 1,056,423 |
Trust bank balances held on behalf of customers | 9,999,366 | 8,811,691 |
Consideration receivable | 13,449,458 | ' |
Accounts receivable - margin clients, net of allowance for doubtful accounts of nil and $135,275 in 2012 and 2013, respectively | 5,976,641 | 15,054,331 |
Accounts receivable - others, net of allowance for doubtful accounts of $41,893 and $102,236 in 2012 and 2013, respectively | 15,325,284 | 4,970,427 |
Loan receivable | 10,333,120 | 1,205,604 |
Short-term investments | ' | 2,639,589 |
Deferred tax assets, current | 1,114,438 | 391,625 |
Total current assets | 95,879,882 | 106,690,317 |
Property and equipment, net | 3,868,267 | 4,914,114 |
Acquired intangible assets, net | 7,544,762 | 4,675,237 |
Cost method investment | 1,138,899 | 802,202 |
Rental deposits | 1,115,152 | 751,627 |
Goodwill | 16,974,437 | 3,049,281 |
Guarantee fund deposits | 6,877,073 | 287,443 |
Deferred tax assets, non-current | 94,263 | 200,774 |
Total assets | 133,492,735 | 121,370,995 |
Current liabilities: | ' | ' |
Deferred revenue, current (including deferred revenue, current of the consolidated variable interest entities without recourse to China Finance Online Co. Limited $3,792,852 and $3,807,846 as of December 31, 2012 and December 31, 2013, respectively) | 6,150,118 | 7,551,457 |
Accrued expenses and other current liabilities (including accrued expenses and othe rcurrent liabilities of the consolidated variable interest entities without recourse to China Finance Online Co. Limited $2,731,088 and $7,460,581 as of December 31, 2012 and December 31, 2013, respectively) | 9,696,462 | 5,388,630 |
Amounts due to customers for the trust bank balances held on their behalf (including amounts due to customers for the trust bank balances held on their behalf of the consolidated variable interest entities without recourse to China Finance Online Co. Limited nil and $647,560 as of December 31, 2012 and December 31, 2013, respectively) | 9,999,366 | 8,811,691 |
Short-term loan (including short-term loan of the consolidated variable interest entities without recourse to China Finance Online Co. Limited nil and nil as of December 31, 2012 and December 31, 2013, respectively) | ' | 13,546,115 |
Accounts payable (including accounts payable of the consolidated variable interest entities without recourse to China Finance Online Co. Limited $140,641 and $5,519,554 as of December 31, 2012 and December 31, 2013, respectively) | 12,572,723 | 804,851 |
Income taxes payable (including income taxes payable of the consolidated variable interest entities without recourse to China Finance Online Co. Limited $7,837 and $414,023 as of December 31, 2012 and December 31, 2013, respectively) | 459,209 | 87,709 |
Deferred tax liabilities, current (including deferred tax liabilities, current of the consolidated variable interest entities without recourse to China Finance Online Co. Limited $140,074 and $325,340 as of December 31, 2012 and December 31, 2013, respectively) | 325,340 | 140,074 |
Total current liabilities | 39,203,218 | 36,330,527 |
Deferred revenue, non-current (including deferred revenue, non-current of the consolidated variable interest entities without recourse to China Finance Online Co. Limited $1,062,318 and $632,829 as of December 31, 2012 and December 31, 2013, respectively) | 1,986,078 | 3,155,108 |
Deferred tax liabilities, non-current (including deferred tax liabilities, non-current of the consolidated variable interest entities without recourse to China Finance Online Co. Limited 1,168,809 and $1,886,190 as of December 31, 2012 and December 31, 2013, respectively) | 1,886,190 | 1,168,809 |
Total liabilities | 43,075,486 | 40,654,444 |
Commitments and contingencies (Note 23) | ' | ' |
China Finance Online Co. Limited shareholder's equity: | ' | ' |
Ordinary shares ($0.00013 par value; 500,000,000 shares authorized; 110,955,383 and 111,145,633 shares issued and outstanding as of December 31, 2012 and 2013, respectively) | 14,353 | 14,328 |
Additional paid-in capital | 84,346,266 | 81,163,244 |
Accumulated other comprehensive income | 12,285,615 | 11,089,820 |
Retained deficits | -20,875,337 | -12,302,209 |
Total China Finance Online Co. Limited shareholders' equity | 75,770,897 | 79,965,183 |
Noncontrolling interest | 14,646,352 | 751,368 |
Total equity | 90,417,249 | 80,716,551 |
Total liabilities and equity | $133,492,735 | $121,370,995 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts receivable—margin clients, allowance for doubtful accounts | $135,275 | ' |
Accounts receivable—others, allowance for doubtful accounts | 102,236 | 41,893 |
Deferred revenue, current of the consolidated variable interest entities without recourse to China Finance Online Co. Limited | 3,807,846 | 3,792,852 |
Accrued expenses and other current liabilities of the consolidated variable interest entities without recourse to China Finance Online Co. Limited | 7,460,581 | 2,731,088 |
Amounts due to customers for the trust bank balances held on their behalf of the consolidated variable interest entities without recourse to China Finance Online Co. Limited | 647,560 | ' |
Short-term loan of the consolidated variable interest entities without recourse to China Finance Online Co. Limited | ' | ' |
Accounts payable of the consolidated variable interest entities without recourse to China Finance Online Co. Limited | 5,519,554 | 140,641 |
Income taxes payable of the consolidated variable interest entities without recourse to China Finance Online Co. Limited | 414,023 | 7,837 |
Deferred tax liabilities, current of the consolidated variable interest entities without recourse to China Finance Online Co. Limited | 325,340 | 140,074 |
Deferred revenue, non-current of the consolidated variable interest entities without recourse to China Finance Online Co. Limited | 632,829 | 1,062,318 |
Deferred tax liabilities, non-current of the consolidated variable interest entities without recourse to China Finance Online Co. Limited | $1,886,190 | $1,168,809 |
Ordinary shares, par value (in Dollars per share) | $0.00 | $0.00 |
Ordinary shares, shares authorized (in Shares) | 500,000,000 | 500,000,000 |
Ordinary shares, shares issued (in Shares) | 111,145,633 | 110,955,383 |
Ordinary shares, shares outstanding (in Shares) | 111,145,633 | 110,955,383 |
Consolidated_Statements_Of_Com
Consolidated Statements Of Comprehensive Income (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Net revenues | $52,738,077 | $29,599,486 | $53,008,065 |
Cost of revenues | 10,570,070 | 8,089,394 | 8,770,617 |
Gross profit | 42,168,007 | 21,510,092 | 44,237,448 |
Operating expenses: | ' | ' | ' |
General and administrative (including share-based compensation of $1,326,174, $765,937 and $2,985,112 for 2011, 2012 and 2013, respectively) | 15,210,102 | 11,387,381 | 11,227,632 |
Product development (including share-based compensation of $99,239, $12,017 and $39,574 for 2011, 2012 and 2013, respectively) | 9,032,327 | 10,735,570 | 13,313,635 |
Sales and marketing (including share-based compensation of $113,389,$24,771 and $10,436 for 2011, 2012 and 2013, respectively) | 30,588,236 | 13,072,017 | 21,337,799 |
Loss from impairment of intangible assets | ' | ' | 4,078,084 |
Loss from impairment of goodwill | ' | ' | 13,463,224 |
Total operating expenses | 54,830,665 | 35,194,968 | 63,420,374 |
Government subsidies | 11,187 | 75,883 | 265,016 |
Loss from operations | -12,651,471 | -13,608,993 | -18,917,910 |
Interest income | 1,340,563 | 3,177,544 | 2,744,665 |
Interest expense | -196,458 | -517,620 | -247,818 |
Exchange gain, net | 556,757 | 71,516 | 1,349,924 |
Equity method investment income | 2,773,839 | ' | ' |
Short-term investment income | 132,069 | 435,105 | 1,032,444 |
Other expense, net | -29,131 | -633,981 | -7,256 |
Loss from impairment of cost method investment | ' | ' | -1,479,571 |
Loss before income tax expense | -8,073,832 | -11,076,429 | -15,525,522 |
Income tax expense | -100,058 | -883,718 | -3,938,433 |
Net loss | -8,173,890 | -11,960,147 | -19,463,955 |
Less: net income (loss) attributable to the noncontrolling interest | 399,238 | -104,940 | -137,046 |
Net loss attributable to China Finance Online Co. Limited | -8,573,128 | -11,855,207 | -19,326,909 |
Net loss per share attributable to China Finance Online Co. Limited | ' | ' | ' |
Basic (in Dollars per share) | ($0.08) | ($0.11) | ($0.18) |
Diluted (in Dollars per share) | ($0.08) | ($0.11) | ($0.18) |
Weighted average shares used in calculating net income (loss) per share | ' | ' | ' |
Basic (in Shares) | 109,019,513 | 108,983,249 | 108,961,642 |
Diluted (in Shares) | 109,019,513 | 108,983,249 | 108,961,642 |
Other comprehensive income, net of tax: | ' | ' | ' |
Changes in foreign currency translation adjustment | 1,195,795 | 130,115 | 2,928,723 |
Net unrealized income (loss) on available-for-sale securities, net of tax effects of ($5,728), $5,728 and nil for 2011, 2012 and 2013, respectively | ' | -13,110 | -32,457 |
Reclassification adjustment of available-for-sale securities,net of tax effects of nil, nil and nil for 2011, 2012 and 2013, respectively | ' | 45,567 | ' |
Other comprehensive income, net of tax | 1,195,795 | 162,572 | 2,896,266 |
Comprehensive loss | -6,978,095 | -11,797,575 | -16,567,689 |
Less: net income (loss) attributable to the noncontrolling interest | 399,238 | -104,940 | -137,046 |
Comprehensive loss attributable to China Finance Online Co. Limited | ($7,377,333) | ($11,692,635) | ($16,430,643) |
Consolidated_Statements_Of_Com1
Consolidated Statements Of Comprehensive Income (Parentheticals) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based compensation | $3,035,122 | $802,725 | $1,538,802 |
Net unrealized loss on available-for-sale securities, Net tax effects | ' | 5,728 | -5,728 |
Reclassification adjustment of available-for-sale securities, Net tax effects | ' | ' | ' |
General and Administrative Expense [Member] | ' | ' | ' |
Share-based compensation | 2,985,112 | 765,937 | 1,326,174 |
Research and Development Expense [Member] | ' | ' | ' |
Share-based compensation | 39,574 | 12,017 | 99,239 |
Selling and Marketing Expense [Member] | ' | ' | ' |
Share-based compensation | $10,436 | $24,771 | $113,389 |
Consolidated_Statements_Of_Sha
Consolidated Statements Of Shareholders’ Equity (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | Parent [Member] | Noncontrolling Interest [Member] | Total |
Balance at Dec. 31, 2010 | $14,319 | $78,974,697 | $8,030,982 | $18,879,907 | $105,899,905 | ($56,802) | $105,843,103 |
Balance (in Shares) at Dec. 31, 2010 | 110,887,883 | ' | ' | ' | ' | ' | ' |
Exercise of share options by employees | 6 | 22,019 | ' | ' | 22,025 | ' | 22,025 |
Exercise of share options by employees (in Shares) | 47,500 | ' | ' | ' | ' | ' | 47,500 |
Share-based compensation | ' | 1,449,862 | ' | ' | 1,449,862 | 88,940 | 1,538,802 |
Net unrealized losses on available-for-sale securities, net of tax effects | ' | ' | -32,457 | ' | -32,457 | ' | -32,457 |
Foreign currency translation adjustment | ' | ' | 2,928,723 | ' | 2,928,723 | ' | 2,928,723 |
Net income (loss) | ' | ' | ' | -19,326,909 | -19,326,909 | -137,046 | -19,463,955 |
Balance at Dec. 31, 2011 | 14,325 | 80,446,578 | 10,927,248 | -447,002 | 90,941,149 | -104,908 | 90,836,241 |
Balance (in Shares) at Dec. 31, 2011 | 110,935,383 | ' | ' | ' | ' | ' | ' |
Exercise of share options by employees | 3 | 3,197 | ' | ' | 3,200 | ' | 3,200 |
Exercise of share options by employees (in Shares) | 20,000 | ' | ' | ' | ' | ' | 20,000 |
Share-based compensation | ' | 713,469 | ' | ' | 713,469 | 89,256 | 802,725 |
Acquisition of business combination | ' | ' | ' | ' | ' | 871,960 | 871,960 |
Net unrealized losses on available-for-sale securities, net of tax effects | ' | ' | -13,110 | ' | -13,110 | ' | -13,110 |
Reclassification adjustment of available-for-sale securities, net of tax effects of nil | ' | ' | 45,567 | ' | 45,567 | ' | 45,567 |
Foreign currency translation adjustment | ' | ' | 130,115 | ' | 130,115 | ' | 130,115 |
Net income (loss) | ' | ' | ' | -11,855,207 | -11,855,207 | -104,940 | -11,960,147 |
Balance at Dec. 31, 2012 | 14,328 | 81,163,244 | 11,089,820 | -12,302,209 | 79,965,183 | 751,368 | 80,716,551 |
Balance (in Shares) at Dec. 31, 2012 | 110,955,383 | ' | ' | ' | ' | ' | ' |
Exercise of share options by employees | 25 | 30,415 | ' | ' | 30,440 | ' | 30,440 |
Exercise of share options by employees (in Shares) | 190,250 | ' | ' | ' | ' | ' | 190,250 |
Share-based compensation | ' | 2,960,746 | ' | ' | 2,960,746 | 74,376 | 3,035,122 |
Acquisition of business combination | ' | 191,861 | ' | ' | 191,861 | 13,421,370 | 13,613,231 |
Foreign currency translation adjustment | ' | ' | 1,195,795 | ' | 1,195,795 | ' | 1,195,795 |
Net income (loss) | ' | ' | ' | -8,573,128 | -8,573,128 | 399,238 | -8,173,890 |
Balance at Dec. 31, 2013 | $14,353 | $84,346,266 | $12,285,615 | ($20,875,337) | $75,770,897 | $14,646,352 | $90,417,249 |
Balance (in Shares) at Dec. 31, 2013 | 111,145,633 | ' | ' | ' | ' | ' | ' |
Consolidated_Statements_Of_Sha1
Consolidated Statements Of Shareholders’ Equity (Parentheticals) (USD $) | 12 Months Ended |
Dec. 31, 2012 | |
Net unrealized losses on available-for-sale securities, net tax effects | $5,728 |
Accumulated Other Comprehensive Income (Loss) [Member] | ' |
Net unrealized losses on available-for-sale securities, net tax effects | 5,728 |
Reclassification adjustment of available-for-sale securities, net tax effects | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Operating activities: | ' | ' | ' |
Net loss | ($8,173,890) | ($11,960,147) | ($19,463,955) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' | ' |
Share-based compensation | 3,035,122 | 802,725 | 1,538,802 |
Depreciation and amortization | 2,164,992 | 3,062,461 | 3,481,973 |
Provision of allowance for doubtful accounts | 521,567 | 1,203 | 93,400 |
Gain from equity method investment | -2,773,839 | ' | ' |
Gain from short-term investments | -132,069 | -435,105 | -1,032,444 |
Deferred taxes | -357,014 | 568,521 | 3,276,319 |
Loss on disposal of property and equipment | 163,963 | 237,154 | 30,702 |
Loss from impairment of cost method investment | ' | ' | 1,479,571 |
Loss from impairment of intangible assets | ' | ' | 4,078,084 |
Loss from impairment of goodwill | ' | ' | 13,463,224 |
Changes in assets and liabilities: | ' | ' | ' |
Accounts receivable, others | -8,132,005 | -3,495,881 | 2,156,795 |
Accounts receivable, margin clients | 8,933,007 | -2,129,273 | -4,773,915 |
Prepaid expenses and other current assets | 1,131,750 | 471,699 | 321,279 |
Advances to employees | 1,071,769 | -1,051,971 | ' |
Trust bank balances held on behalf of customers | -1,181,312 | 9,894,410 | -9,009,643 |
Restricted cash | 7,143 | 468,367 | -468,176 |
Rental deposits | -273,402 | -2,796 | 5,326 |
Guarantee deposit funds | -4,881,966 | ' | ' |
Deferred revenue | -2,866,258 | -15,332,999 | -23,245,520 |
Account payable | 11,666,365 | 516,086 | -135,763 |
Accrued expenses and other current liabilities | -1,189,465 | -715,741 | -4,571,482 |
Amounts due to customers for the trust bank balance held on their behalf | 1,181,312 | -9,894,410 | 9,009,643 |
Income taxes payable | 242,886 | -47,235 | -20,662 |
Net cash used in operating activities | 158,656 | -29,042,932 | -23,786,442 |
Investing activities: | ' | ' | ' |
Purchase of property and equipment | -833,921 | -775,437 | -726,468 |
Purchase of intangible assets | -578,624 | -2,063,361 | ' |
Acquisition of businesses (net of cash acquired of nil, $14,073 and $121,044 for the years ended December 31, 2011, 2012 and 2013, respectively) | -3,627,963 | -2,834,434 | ' |
Acquistioin of equity method investment | -21,525,608 | ' | ' |
Proceeds from transfer of equity method investment | 11,445,202 | ' | ' |
Loan given to equity method investee | -20,461,773 | ' | ' |
Repayment of loans given to equity method investee | 995,190 | 8,363,140 | ' |
Purchase of term deposits | ' | ' | -19,712,865 |
Proceeds from maturity of term deposits | ' | ' | 19,903,236 |
Purchase of short-term investments | -83,911,858 | -28,277,746 | -40,732,106 |
Proceeds from sales of short-term investments | 86,716,413 | 36,767,023 | 31,562,160 |
Acquisition of cost method investment | -309,698 | -802,202 | ' |
Restricted cash | 29,282,705 | 542,818 | -13,511,584 |
Loan receivable | 994,459 | 8,379,638 | -9,559,001 |
Proceeds from disposal of fixed assets | 140,942 | 24,556 | 632 |
Net cash (used in) provided by investing activities | 7,577,511 | 10,960,855 | -32,775,996 |
Financing activities: | ' | ' | ' |
Proceeds from stock options exercised by employees | 640 | 3,200 | 22,025 |
Proceeds from capital injection of noncontrolling interest | 1,397,616 | ' | ' |
Proceeds from short-term loan | ' | ' | 12,716,763 |
Repayment of short-term loan | -13,536,161 | -5,672,004 | ' |
Net cash provided by (used in) financing activities | -12,137,905 | -5,668,804 | 12,738,788 |
Effect of exchange rate changes | -133,308 | 15,785 | 1,691,264 |
Net decrease in cash and cash equivalents | -4,535,046 | -23,735,096 | -42,132,386 |
Cash and cash equivalents, beginning of year | 40,905,996 | 64,641,092 | 106,773,478 |
Cash and cash equivalents, end of year | 36,370,950 | 40,905,996 | 64,641,092 |
Supplemental disclosure of cash flow information | ' | ' | ' |
Income taxes paid | 81,188 | 375,107 | 682,776 |
Equity Method Investee [Member] | ' | ' | ' |
Investing activities: | ' | ' | ' |
Repayment of loans given to equity method investee | $10,247,235 | ' | ' |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows (Parentheticals) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Acquisition of businesses, cash acquired | $121,044 | $14,073 |
Note_1_Organization_and_Princi
Note 1 - Organization and Principal Activities | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Disclosure Text Block [Abstract] | ' | ||||||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' | ||||||||||||
1 | ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||||||
China Finance Online Co. Limited ("China Finance Online" or the "Company") was incorporated in Hong Kong on November 2, 1998. China Finance Online, its subsidiaries, its variable interest entities ("VIEs") and its VIEs' subsidiaries (collectively, the "Group") is a technology-driven, user-focused market leader in China in providing vertically integrated financial information and services. | |||||||||||||
The Company's two prominent flagship portal sites, www.jrj.com and www.stockstar.com, have attracted a large population of individual investors. The Company offers basic software, information services and securities investment advisory services to individual investors. Through its subsidiary, CFO Genius, the Company provides financial database and analytics to institutional customers including domestic financial, research, academic and regulatory institutions. The Company is developing comprehensive financial services including securities and futures brokerage services in Hong Kong and precious metals trading services in China. | |||||||||||||
Details of China Finance Online's significant subsidiaries, VIEs and VIEs' subsidiaries as of December 31, 2013 were as follows: | |||||||||||||
Company name | Place of | Date of | legal | Principal | |||||||||
incorporation or | incorporation or | ownership | activity | ||||||||||
establishment | acquisition | interest | |||||||||||
Subsidiaries: | |||||||||||||
Fortune Software (Beijing) Co., Ltd. ("CFO Software") | Beijing, PRC | Dec. 7, 2004 | 100% | N/A | |||||||||
Fortune (Beijing) Success Technology Co., Ltd. ("CFO Success") | Beijing, PRC | Oct. 16, 2007 | 100% | N/A | |||||||||
Jujin Software (Shenzhen) Co., Ltd. ("CFO Jujin") | Shenzhen, PRC | Mar. 9, 2007 | 100% | N/A | |||||||||
Shenzhen Genius Information Technology Co., Ltd. ("CFO Genius") | Shenzhen, PRC | Sep. 21, 2006 | 100% | Subscription service | |||||||||
Stockstar Information Technology (Shanghai) Co., Ltd. ("CFO Stockstar") | Shanghai, PRC | Oct. 1, 2006 | 100% | N/A | |||||||||
Zhengning Information & Technology (Shanghai) Co., Ltd. ("CFO Zhengning") | Shanghai, PRC | Jan. 31, 2007 | 100% | N/A | |||||||||
iSTAR Financial Holdings Limited ("iSTAR Financial Holdings") | BVI | Jul. 16, 2007 | 85% | Investment holdings | |||||||||
iSTAR International Securities Co. Limited ("iSTAR Securities") | Hong Kong, PRC | Nov. 23, 2007 | 85% | Brokerage service | |||||||||
iSTAR International Futures Co. Limited ("iSTAR Futures") | Hong Kong, PRC | Apr. 16, 2008 | 85% | Brokerage service | |||||||||
iSTAR International Wealth Management Co. Limited ("iSTAR Wealth Management") | Hong Kong, PRC | Oct. 8, 2008 | 85% | Securities advising | |||||||||
iSTAR International Credit Co. Limited ("iSTAR Credit") | Hong Kong, PRC | Feb. 10, 2012 | 85% | N/A | |||||||||
Variable interest entities: | |||||||||||||
Beijing Fuhua Innovation Technology Development Co., Ltd. ("CFO Fuhua") | Beijing, PRC | Dec. 31, 2000 | Nil | Web portal and advertising service | |||||||||
Shanghai Chongzhi Co., Ltd. ("CFO Chongzhi") | Shanghai, PRC | Jun. 6, 2008 | Nil | Subscription service | |||||||||
Fortune (Beijing) Qicheng Technology Co., Ltd. ("CFO Qicheng") | Beijing, PRC | Dec. 18, 2009 | Nil | N/A | |||||||||
Shenzhen Newrand Securities Advisory and Investment Co., Ltd. ("CFO Newrand") | Shenzhen, PRC | Oct. 17, 2008 | Nil | Securities investment advising | |||||||||
Subsidiaries of variable interest entities: | |||||||||||||
Shanghai Meining Computer Software Co., Ltd. ("CFO Meining") | Shanghai, PRC | Oct. 1, 2006 | Nil | Web portal, advertising, subscription, | |||||||||
and SMS | |||||||||||||
Shenzhen Newrand Securities Training Center ("CFO Newrand Training") | Shenzhen, PRC | Oct. 17, 2008 | Nil | Securities investment training | |||||||||
Shanghai Stockstar Securities Advisory and Investment Co., Ltd. ("CFO Securities Consulting") | Shanghai, PRC | Nov. 5, 2009 | Nil | Securities investment advising | |||||||||
Shenzhen Tahoe Investment and Development Co., Ltd ("CFO Tahoe") | Shenzhen, PRC | Sep. 30, 2013 | Nil | N/A | |||||||||
Sinoinfo (Dalian) Investment Consulting Co., Ltd. ("CFO Sinoinfo") | Dalian, PRC | Jul. 1, 2013 | Nil | Securities investment advising | |||||||||
Shenzhen Shangtong Software Co., Ltd. ("CFO Shenzhen Shangtong") | Shenzhen, PRC | Sep. 23, 2009 | Nil | N/A | |||||||||
Zhengjin (Fujian) Precious Metals Investment Co., Ltd. ("CFO Zhengjin Fujian") | Fujian, PRC | Jan. 6, 2013 | Nil | Precious metals brokerage | |||||||||
Zhengjin (Shanghai) Precious Metals Investment Co., Ltd. ("CFO Zhengjin Shanghai") | Shanghai, PRC | Dec. 12, 2013 | Nil | Precious metals brokerage | |||||||||
Zhengjin (Tianjin) Precious Metals Investment Co., Ltd. ("CFO Zhengjin Tianjin") | Tianjin, PRC | Jul. 23, 2013 | Nil | Precious metals brokerage | |||||||||
Henghui (Tianjin) Precious Metals Investment Co., Ltd. ("CFO Henghui") | Tianjin, PRC | Sep. 30, 2013 | Nil | Precious metals brokerage | |||||||||
1 | ORGANIZATION AND PRINCIPAL ACTIVITIES - continued | ||||||||||||
The consolidated financial statements of the Group include the financial statements of the Company and its controlled operating entities including the subsidiaries and the variable interest entities for which the Company is the primary beneficiary. A variable interest entity is the entity in which the Company, through contractual arrangements as the primary beneficiary, bears the risks of, and enjoys the rewards normally associated with ownership of the entity. The following discussion excludes any VIEs of the Company for which the Company is not the primary beneficiary. | |||||||||||||
People's Republic of China ("PRC") regulations prohibit or restrict direct foreign ownership of business entities providing certain services in PRC, such as internet content service and securities investment advisory service. In order to comply with these regulations, China Finance Online, through its subsidiaries, entered into contractual arrangements with the Company's VIEs and their equity owners who are PRC citizens as follows: | |||||||||||||
The Group made loans to the shareholders of the VIEs solely for the purposes of capitalizing the VIEs. Pursuant to the loan agreements, these loans can only be repaid by transferring all of their interests in the VIEs to the Group or a third party designated by the Group. | |||||||||||||
To provide the Company effective control over and ability to receive substantially all of the economic benefits of its VIEs, the Company's wholly owned significant subsidiaries including CFO Beijing, CFO Software, CFO Zhengyong and CFO Success (collectively, the "WOFEs" and each a "WOFE") have entered into a series of contractual arrangements with the VIEs, which include CFO Fuhua, CFO Chongzhi, CFO Qicheng and CFO Newrand. | |||||||||||||
Exclusive technology consulting and management service agreement | |||||||||||||
Pursuant to a series of technology support and service agreements, the WOFEs retain exclusive right to provide the VIEs and their subsidiaries technology support and consulting services and exclusive management consulting service. As a result of these services, the WOFEs are entitled to charge the VIEs and their subsidiaries annual service fees. The terms of the strategic consulting services agreement, the technical support services agreement and the operating support services agreement are twenty, ten and ten years, respectively, and these agreements will be automatically renewed on applicable expiration dates, unless the contracting WOFE informs the corresponding VIE its intention to terminate such contract one month prior to the applicable expiration date. Notwithstanding the foregoing, none of the parties has a right to terminate the service contracts. The principal services agreements that the WOFEs have entered into with VIEs include: | |||||||||||||
· | strategic consulting services agreement, pursuant to which the amount of the fee to be charged is 30% of each VIE's income before tax; | ||||||||||||
· | technical support services agreement, pursuant to which the amount of the fee to be charged is 30% of each VIE's income before tax; and | ||||||||||||
· | operating support services agreement, pursuant to which the amount of the fee to be charged is 40% of each VIE's income before tax. | ||||||||||||
Exclusive purchase right agreement on the equity interest of the VIEs | |||||||||||||
Pursuant to the purchase option agreement, the WOFEs have the unconditional right to purchase the entire equity interest in, or all the assets of the VIEs at a price equal to the total principal amount of the loan lent by the WOFEs to the shareholders of the VIEs when and if such purchase is permitted by the PRC law or the current shareholders of the VIEs cease to be directors or employees of the VIEs. The term of the exclusive purchase right agreement is perpetual and can be terminated at the discretion of the WOFEs. | |||||||||||||
Power of attorney | |||||||||||||
Pursuant to the power of attorney, each of the shareholders of the VIEs have executed an irrevocable power of attorney assigning the WOFEs or individuals designated by the WOFEs as their attorney-in-fact to vote on their behalf on all matters of the VIEs requiring shareholder approval under PRC laws and regulations and the articles of association of VIEs. | |||||||||||||
The Articles of Incorporation of the VIE state that the major rights of the shareholders include the right to appoint directors, the general manager and other senior management. Therefore, through the irrevocable power of attorney arrangement, the WOFEs have the ability to exercise effective control over the VIEs through shareholder votes and, through such votes, to also control the composition of the board of directors. In addition, the senior management team of the VIEs is the same as that of the WOFEs. The term of the power of attorney is twenty years and will be automatically renewed on the expiration date. The contract can be terminated at the discretion of the WOFEs. | |||||||||||||
Pledge agreement | |||||||||||||
Pursuant to the equity pledge agreement between the WOFEs and the shareholders of the VIEs, the shareholders of the VIEs pledged all of their equity interests in the VIEs to the WOFEs to guarantee the VIEs' performance of its obligations under the exclusive technology consulting and service agreement. If the VIEs breach their contractual obligations under that agreement, the WOFEs, as the pledge, will be entitled to certain rights, including the rights to sell the pledged equity interests. The shareholders of the VIEs agree that, without prior written consent of the WOFEs, they will not transfer, sell, and dispose of or create any encumbrance on their equity interest in the VIEs. The term of the pledge agreement is twenty years and will be automatically renewed on the expiration date, unless the WOFEs inform the VIEs of their intention to terminate the agreement one month prior to the expiration date. | |||||||||||||
Through these contractual agreements, the WOFEs have the ability to effectively control the VIEs and are also able to receive substantially all the economic benefits of the VIEs. | |||||||||||||
Details of significant VIEs and their counterparts which substantially control the VIEs as of December 31, 2013 were as follows: | |||||||||||||
VIE name | Contractual arrangement | Date counterpart | |||||||||||
CFO Fuhua | 27-May-04 | CFO Beijing | |||||||||||
CFO Chongzhi | 8-Jun-08 | CFO Software | |||||||||||
CFO Newrand | 17-Oct-08 | CFO Zhengyong | |||||||||||
CFO Qicheng | 20-Nov-09 | CFO Chuangying | |||||||||||
Risks in relation to the VIE structure | |||||||||||||
The Company's ability to control the VIEs also depends on the power of attorney the WOFEs have to vote on all matters requiring shareholder approval in the VIEs. As noted above, the Company believes this power of attorney is legally enforceable but may not be as effective as direct equity ownership. | |||||||||||||
In addition, if the legal structure and contractual arrangements were found to be in violation of any existing PRC laws and regulations, the regulatory authorities may exercise their discretion and | |||||||||||||
· | revoke the business and operating licenses of our PRC subsidiaries or VIEs; | ||||||||||||
· | restrict the rights to collect revenues from any of our PRC subsidiaries; | ||||||||||||
· | discontinue or restrict the operations of any related-party transactions among our PRC subsidiaries or VIEs; | ||||||||||||
· | require our PRC subsidiaries or VIEs to restructure the relevant ownership structure or operations; | ||||||||||||
· | take other regulatory or enforcement actions, including levying fines that could be harmful to our business; or | ||||||||||||
· | impose additional conditions or requirements with which we may not be able to comply. | ||||||||||||
The imposition of any of these penalties may result in a material adverse effect on the Company's ability to conduct its business. In addition, if the imposition of any of these penalties causes the Company to lose the rights to direct the activities of the VIEs and their subsidiaries or the right to receive their economic benefits, the Company would no longer be able to consolidate the VIEs. The Company does not believe that any penalties imposed or actions taken by the PRC Government would result in the liquidation of the Company, its subsidiaries, or the VIEs. | |||||||||||||
The Company has consolidated its VIEs because it was the primary beneficiary of those entities. Through the contractual agreements discussed above, the Company, through its wholly owned subsidiaries, has (1) the power to direct the activities of the VIEs that most significantly affect the entities' economic performance and (2) the right to receive benefits from the VIEs, therefore it consolidates the VIEs. | |||||||||||||
The following financial statement amounts and balances of the VIEs for which the Company is the primary beneficiary and their subsidiaries were before intercompany elimination as of and for the years ended: | |||||||||||||
Year ended December 31, | |||||||||||||
2012 | 2013 | ||||||||||||
Total assets | $ | 39,592,530 | $ | 113,091,394 | |||||||||
Total liabilities | $ | 17,141,853 | $ | 71,714,009 | |||||||||
Year ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Net revenue | $ | 27,837,567 | $ | 17,271,563 | $ | 58,549,393 | |||||||
Net Loss | $ | (7,573,823 | ) | $ | (6,948,118 | ) | $ | (5,469,402 | ) | ||||
Year ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Net cash used in operating activities | $ | (11,948,507 | ) | $ | (13,860,354 | ) | $ | (14,469,067 | ) | ||||
Net cash (used in) provided by investing activities | (7,726,567 | ) | 3,449,449 | (9,440,165 | ) | ||||||||
Net cash (used in) provided by financing activities | (37,146,641 | ) | 6,461,007 | 35,830,988 | |||||||||
Effect of exchange rate changes | $ | 895,082 | $ | 52,740 | $ | (46,900 | ) | ||||||
There are no consolidated VIE's assets that are collateral for the VIE's obligations and can only be used to settle the VIE's obligations. | |||||||||||||
Note_2_Summary_of_Significant_
Note 2 - Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Significant Accounting Policies [Text Block] | ' | ||||||||||||||||
2 | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||
Basis of presentation | |||||||||||||||||
The consolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). | |||||||||||||||||
Basis of consolidation | |||||||||||||||||
The consolidated financial statements include the financial statements of China Finance Online, its subsidiaries, VIEs for which the Company is the primary beneficiary and those VIEs' subsidiaries. All inter-company transactions and balances have been eliminated upon consolidation. | |||||||||||||||||
Cash and cash equivalents | |||||||||||||||||
Cash and cash equivalents consist of cash on hand and highly liquid investments which are unrestricted as to withdrawal or use, and which have original maturities of three months or less when purchased. | |||||||||||||||||
Restricted cash | |||||||||||||||||
Restricted cash consist of i) the security deposit for the credit standby letter issued by a bank to provide guarantee for the short-term loan borrowed by Hong Kong Genius Information Technology Co. Limited (renamed to "Mann Ka Development (H.K.) Limited" in August 2013); ii) the deposit in bank accounts for providing guarantee to subscription revenue customers by CFO Securities Consulting in accordance with the requirement of China Securities Regulatory Commission ("CSRC"). The restriction period is one year. | |||||||||||||||||
Fair value | |||||||||||||||||
Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. | |||||||||||||||||
Authoritative literature provides a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows: | |||||||||||||||||
Level 1-inputs are based upon unadjusted quoted prices for identical instruments traded in active markets. | |||||||||||||||||
Level 2-inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||||||||||||||||
Level 3-inputs are generally unobservable and typically reflect management's estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques. | |||||||||||||||||
The Group measures certain assets, including the long-term investments and intangible assets, at fair value on a nonrecurring basis when they are deemed to be impaired. The fair values of these investments and intangible assets are determined based on valuation techniques using the best information available, and may include management judgments, future performance projections, etc. | |||||||||||||||||
Trust bank balances held on behalf of customers | |||||||||||||||||
Trust bank balances held on behalf of customers consist two parts: i) iSTAR Securities and iSTAR Futures receive fund from customers for purpose of buying or selling securities and futures on behalf of its customers and deposits the fund in its interest-bearing bank account; ii) The funds received by CFO Newrand from customers who purchase mutual funds and other wealth management products which are deposited in a trust bank account. The Group launched "Yinglibao", an internet-based financial platform that integrates cash management solutions and mutual fund distribution. Such bank balance represents an asset of the Group for the amounts due to customers for the trust bank balance held on their behalf and payable to customers on demand. The Group also recognizes a corresponding liability. | |||||||||||||||||
Advances to employees | |||||||||||||||||
The Group has made advances to a certain individual to enable him to participate in stock trading in the Stock Exchange Campaign which was launched by the Group for marketing purposes. The balances represent $1,056,423 as of December 31, 2012, which were repaid to the Group on demand in February 2013. | |||||||||||||||||
Use of estimates | |||||||||||||||||
The preparation of 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 revenue and expenses in the financial statements and accompanying notes. Significant accounting estimates reflected in the Group's financial statements include account receivable, cost method investment, impairment of goodwill and long-lived assets, income taxes, sales refund, share-based compensation and purchase price allocation. Actual results could differ from those estimates. | |||||||||||||||||
Loan receivable | |||||||||||||||||
Loans are reported at either their outstanding principal balances. For loans reported at their outstanding principal balances, interest income is accrued on the unpaid principal balance. A loan is considered impaired when, based on current events and the financial condition of the borrower, it is probable that the company will be unable to collect all principal and interest due according to the contractual terms of the loan agreement. Loan collectability is monitored by the Group in connection with the ongoing monitoring of the associated financial guarantee transactions. | |||||||||||||||||
Short-term investments | |||||||||||||||||
Short-term investments comprise marketable debt and equity securities, which are classified as trading, held-to-maturity or available-for-sale. Trading securities are securities that are bought and held principally for the purpose of selling them in the near term and are reported at fair value, with unrealized gains and losses recognized in earnings. Short-term investments are classified as held-to-maturity when the Company has the positive intent and ability to hold the securities to maturity. All of the Company's held-to-maturity securities are classified as short-term investments on the consolidated balance sheets based on their contractual maturity dates which are less than one year and are stated at their amortized costs. Short-term investments classified as available for sale are carried at their fair values and the unrealized gains or losses from the changes in fair values are included in accumulated other comprehensive income. Available for sale securities are classified as current assets on the accompanying consolidated balance sheets because they are available for immediate sale. | |||||||||||||||||
The Group reviews its short-term investments for other-than-temporary impairment based on the specific identification method. The Company considers available quantitative and qualitative evidence in evaluating potential impairment of its short-term investments. If the cost of an investment exceeds the investment's fair value, the Group considers, among other factors, general market conditions, government economic plans, the duration and the extent to which the fair value of the investment is less than the cost, and the Group's intent and ability to hold the investment, in determining if impairment is needed. | |||||||||||||||||
Property and equipment, net | |||||||||||||||||
Property and equipment, net are carried at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the following estimated useful lives: | |||||||||||||||||
Technology infrastructure (years) | 5 | ||||||||||||||||
Computer equipment (years) | 5 | ||||||||||||||||
Furniture, fixtures and equipment (years) | 5 | ||||||||||||||||
Motor vehicle (years) | 5 | ||||||||||||||||
Leasehold improvements | Shorter of the lease term or 5 years | ||||||||||||||||
Acquired intangible assets, net | |||||||||||||||||
Acquired intangible assets are estimated by management based on the fair value of assets acquired. Identifiable intangible assets are carried at cost less accumulated amortization. Amortization of definite-lived intangible assets is computed using the straight-line method over the estimated average useful lives, which are as follows: | |||||||||||||||||
License and related trademarks (years) | 15 | ||||||||||||||||
Completed technology (years) | 5 | ||||||||||||||||
Customer relationship (years) | 4 | - | 5 | ||||||||||||||
Value-added service license (years) | 3 | - | 4 | ||||||||||||||
Agreement with mobile operators (years) | 3 | ||||||||||||||||
Intellectual property (years) | 10 | ||||||||||||||||
Certain trademarks resulting from the acquisitions of business and certain trading rights bought by the Company are determined to have indefinite lives. If an intangible asset is determined to have an indefinite life, it is not amortized until its useful life is determined to be no longer indefinite. | |||||||||||||||||
Guarantee fund deposits | |||||||||||||||||
Guarantee fund deposits consist of i) the funds deposited with Hong Kong Exchange and Clearing Limited by iSTAR Futures, to guarantee its customers' settlement obligations; ii) the funds deposited with the precious metals exchanges as a result of its customers' trading. The Group needs to deposit certain percentage of its customers' trading margins with the exchanges. | |||||||||||||||||
Impairment of long-lived assets with definite lives | |||||||||||||||||
The Group reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. When these events occur, the Group compares the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Group would recognize an impairment loss based on the fair value of the assets. There were $3,035,265, nil and nil impairment losses in relation to the long-lived assets with definite lives for the years ended December 31, 2011, 2012 and 2013. | |||||||||||||||||
Business combinations | |||||||||||||||||
Business combinations are recorded using the acquisition method of accounting. The assets acquired, the liabilities assumed, and any noncontrolling interest of the acquiree at the acquisition date, if any, are measured at their fair values as of that date. Goodwill is recognized and measured as the excess of the total consideration transferred plus the fair value of any noncontrolling interest of the acquiree, if any, at the acquisition date over the fair values of the identifiable net assets acquired. Common forms of the consideration made in acquisitions include cash and common equity instruments. Consideration transferred in a business acquisition is measured at the fair value as at the date of acquisition. | |||||||||||||||||
Where the consideration in an acquisition includes contingent consideration the payment of which depends on the achievement of certain specified conditions post-acquisition, the contingent consideration is recognized and measured at its fair value at the acquisition date and if recorded as a liability it is subsequently carried at fair value with changes in fair value reflected in earnings. | |||||||||||||||||
Impairment of goodwill and indefinite-lived intangible assets | |||||||||||||||||
The Group performs a qualitative analysis that includes reviewing the carrying value of intangible assets not subject to amortization, including goodwill, to determine whether impairment may exist, whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable at least annually. | |||||||||||||||||
The excess of the purchase price over the fair value of net assets acquired is recorded on the consolidated balance sheet as goodwill. After a qualitative analysis indicates an impairment test is needed, the Company completes a two-step goodwill impairment test. The first step is to compare the fair values of each reporting unit to its carrying amount, including goodwill. If the fair value of each reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step is to compare the implied fair value of goodwill to the carrying value of a reporting unit's goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. An impairment loss is recognized for any excess in the carrying value of goodwill over the implied fair value of goodwill. Estimating fair value is performed by utilizing various valuation techniques, with the primary technique being a discounted cash flow. | |||||||||||||||||
The impairment test for other intangible assets not subject to amortization consists of a comparison of the fair value of the intangible asset with its carrying value. If the carrying value of the intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. The estimates of fair values of intangible assets not subject to amortization are determined using various discounted cash flow valuation methodologies. Significant assumptions are inherent in this process, including estimates of discount rates. Discount rate assumptions are based on an assessment of the risk inherent in the respective intangible assets. | |||||||||||||||||
The Group performs the annual impairment tests on December 31 of each year. Based on the Group's assessment, the Group recorded $13,463,224, nil and nil goodwill impairment losses during the years ended December 31, 2011, 2012 and 2013, respectively. In addition, the Group recorded $1,042,819, nil and nil impairment losses in relation to intangible assets with indefinite life during the years ended December 31, 2011, 2012 and 2013, respectively. | |||||||||||||||||
Financial Instruments and Derivatives | |||||||||||||||||
Financial instruments owned and sold, not yet purchased, at fair value consist of financial instruments carried at fair value or amounts that approximate fair value, with related unrealized changes in gains or losses recognized in earnings, except for securities classified as available-for-sale. The fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. | |||||||||||||||||
The Group utilizes derivative instruments to manage exposures to commodity price risks for the Group and its customers in its precious metals business. The Group’s objectives for holding derivatives include reducing, eliminating, and efficiently managing the economic impact of these exposures as effectively as possible. Derivative instruments are recognized as either assets or liabilities and are measured at fair value. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation. For a derivative instrument designated as a cash flow hedge, the effective portion of the derivative’s gain or loss is initially recorded in OCI, net of tax, and is subsequently recognized in earnings when the hedged exposure affects earnings. The ineffective portion of the gain or loss is recognized in earnings. Gains and losses from changes in fair values of derivatives that are not designated as cash flow hedges for accounting purposes are recognized in earnings. The Group has no derivatives as of December 31, 2013. | |||||||||||||||||
The Group’s derivative contracts consist of commodity based derivatives. Fair values of exchange-traded derivatives are generally determined from quoted market prices. Where possible, the Group verifies the values produced by pricing models by comparing them to market transactions. Inputs may involve judgment where market prices are not readily available. The Group does not elect hedge accounting under the Derivatives and Hedging Topic of the ASC in accounting for derivatives used as economic hedges on its commodities. | |||||||||||||||||
The Group may also hold proprietary positions in its precious metals line of business. On a limited basis, the Group’s precious metals trade desk will accept a customer transaction and could offset that transaction with a similar but not identical position with counterparty. These unmatched transactions are intended to be short-term in nature and are often conducted to facilitate the most effective transaction for the Group's customer. These spot contracts are accounted for as free-standing derivatives and reported in the consolidated balance sheets at their fair values. The Group does not seek hedge accounting treatment for these derivatives, and accordingly, the changes in fair value during the period are recorded in the consolidated statements of comprehensive income. The Group has no open proprietary positions as of December 31, 2013. | |||||||||||||||||
Revenue recognition | |||||||||||||||||
Precious metals trading | |||||||||||||||||
In 2013, The Group newly launched precious metal trading business and derives commission income, carrying charges and trading revenues from its precious metals trading services. | |||||||||||||||||
Commission income is recognized on a trade basis based on their customers' trading volumes. The commission earned is fixed no matter how the client’s open positions are ultimately settled. Additionally, the Group charges carrying charges to its customers. The commissions and carrying charges are presented in net revenues in the statement of comprehensive income. | |||||||||||||||||
Amounts are settled with the Exchange by both the Group and the customers and the exchange then settles with any counterparty. The exchange offsets the Group’s gains and losses and amounts receivable and amounts payable from the exchange are presented net on the statement of financial position as the Group and the exchange settle net. | |||||||||||||||||
Trading gains, net include brokerage fees and margins generated from derivative trades executed with customers and other counterparties and are recognized when trades are executed. Trading gains, net also include activities where the Group acts as principal in the purchase and sale of commodities derivative instruments with customers. Trading gains, net also include activities where the Group acts as principal in the purchase and sale of individual securities, currencies, commodities or derivative instruments with customers. These transactions may be offset simultaneously with another customer or counterparty, offset with similar but not identical positions on an exchange, made from inventory, or may be aggregated with other purchases to provide liquidity intraday, for a number of days, or in some cases, particularly the precious metals business, even longer periods (during which fair value may fluctuate). Therefore, trading gains, net includes activities from the Group's operations of a proprietary commodity trades (see additional discussion in the Financial Instruments and Derivatives policy note for revenue recognition on proprietary trading activities). Net dealer investment gains are recognized on a trade-date basis and include realized gains or losses and changes in unrealized gains or losses on investments at fair value. | |||||||||||||||||
Unrealized gains/losses on open positions will be marked to market at each period end and may present trading gains and losses which comprise both realized and unrealized gains and losses, on a net basis in the statement of comprehensive income. The open transactions may lead to receivables and/or payables for open transaction which are recorded on the Statement of Financial Position. | |||||||||||||||||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - continued | |||||||||||||||||
Revenue generally is recognized net of any taxes collected from customers and subsequently remitted to governmental authorities. During the year of 2013, the Group totally recognized revenue amount to $30,124,245 from precious metal trading business, consisted of commodity trading gain of $18,537,459, commission income of $10,953,632 and carrying charges of $633,154, respectively. | |||||||||||||||||
Hong Kong Brokerage services | |||||||||||||||||
The Group also derives commission from its brokerage services provided by the subsidiaries, iSTAR Securities and iSTAR Futures which buy or sell securities and futures on their customers' behalf. The Group acts as an agent with their customers for these transactions. The commission income is recognized on a trade date basis as transactions occur. | |||||||||||||||||
Financial information and advisory services | |||||||||||||||||
The Group derives revenue from annual subscription fees from subscribers to their financial data, information services and investment advisory. The Group recognizes revenues when all of the following criteria are met: (1) persuasive evidence of an arrangement exists, (2) delivery has occurred, (3) the fee is fixed or determinable and (4) collectability is probable. Upon receipt of the upfront cash payments from the subscriber, the Group will activate the subscriber's account and provide the subscriber the access code. This will commence a certain subscription period according to the customer demand and the full payment will be deferred and recognized ratably over the subscription period. The Group recognizes revenue ratably over the life of the arrangement. Estimated refund of subscription fees is recorded as deduction of revenue and deferred revenue. The Group estimates the refund of subscription fees based on historical experience as well as the impact of the changes in market condition and regulation, such as the Provisional Regulations on Securities Investment Advisory and Provisional Regulations on Issuance of Securities Research Reports promulgated by CSRC. | |||||||||||||||||
Advertising revenue | |||||||||||||||||
The Group derives its advertising fees from advertising sales on their website for a fixed period of time, generally less than one year. Revenues from advertising arrangements are recognized ratably over the period the advertising is displayed. | |||||||||||||||||
Business taxes and value added taxes | |||||||||||||||||
Effective January 1, 2012, the PRC Ministry of Finance and the State Administration of Taxation launched a Business Tax to value added tax ("VAT") Transformation Pilot Program(the "Pilot Program"), for certain industries in Shanghai. On September 1, 2012, the PRC Ministry of Finance and the State Administration of Taxation extended the Pilot Program to certain industries in other eight regions, including Beijing and Shenzhen. With the adoption of Pilot Program, our advertising-related revenues and certain subscription revenues were subject to VAT tax at a rate of 6%. Our advertising- related revenues, certain subscription revenues and certain precious metals trading revenues were recognized after deducting VAT and other related surcharges. | |||||||||||||||||
Revenue is recorded net of business taxes when incurred. The Group is subject to business taxes of 3%-5% on taxable services provided to its customers. During the years ended December 31, 2011, 2012, and 2013, business taxes and related surcharges totaled $1,478,653, $639,880, and $598,044, respectively. | |||||||||||||||||
The Group's certain PRC subsidiaries, VIEs and VIEs' subsidiaries are subject to VAT at a rate of 17% on subscription-based revenue. VAT payable on subscription-based revenue is computed net of VAT paid on purchases. In respect of subscription-based revenue, however, if the net amount of VAT payable exceeds 3% of subscription-based revenue, the excess portion of value added tax can be refunded immediately. | |||||||||||||||||
The Group therefore is subject to an effective net VAT burden of 3% from subscription-based revenue and records VAT on a net basis. Net amount of value added tax is recorded either in the line item of other current liabilities or prepaid expenses and other current assets on the face of consolidated balance sheet. | |||||||||||||||||
Subscription-based revenue includes the benefit of the rebate of value added taxes on sale of the downloadable software received from the Chinese tax authorities as part of the PRC government policy of encouraging software development in the PRC. In 2011, 2012 and 2013, the Group recognized $3,140,764, $1,348,564 and $639,936, respectively, in VAT refunds. | |||||||||||||||||
Government subsidies | |||||||||||||||||
The Group records government subsidies when granted by local government authority and are not subject to future return. The government subsidies include research & development subsidy, business tax refund, innovation fund and high-tech company subsidy. | |||||||||||||||||
Deferred revenue | |||||||||||||||||
Payments received in advance of for our financial information and advisory service, advertising service are recorded as deferred revenue until earned and when the relevant revenue recognition requirements have been met. | |||||||||||||||||
Cost method investment | |||||||||||||||||
For investments in an investee over which the Group does not have significant influence, the Group carries the investment at cost and recognizes income as any dividends declared from distribution of investee's earnings. The Group reviews the cost method investments for impairment whenever events or changes in circumstances indicate that the carrying value may no longer be recoverable. An impairment loss is recognized in earnings equal to the difference between the investment's cost and its fair value at the balance sheet date of the reporting period for which the assessment is made. The fair value of the investment would then become the new cost basis of the investment. | |||||||||||||||||
Equity method investment | |||||||||||||||||
Under the equity method, the Company initially records its investment at cost. The Company subsequently adjusts the carrying amount of the investment to recognize the Company's proportionate share of each equity investee's net income or loss. The Company will discontinue applying equity method if an investment (and additional financial supports to the investee, if any) has been reduced to zero. When the equity-method investment in ordinary shares is reduced to zero and further investments are made that have a higher liquidation preference than ordinary shares, the Company would recognize the loss based on its percentage of the investment with the same liquidation preference, and the loss would be applied to those investments of a lower liquidation preference first before being further applied to the investments of a higher liquidation preference. An impairment loss on the equity method investments is recognized in the consolidated statements of comprehensive income when the decline in value is determined to be other than-temporary. | |||||||||||||||||
Foreign currency translation | |||||||||||||||||
The functional and reporting currency of the Company is the United States dollar ("U.S. dollar"). The financial records of the Group's subsidiaries, VIEs and VIEs' subsidiaries located in the PRC, Hong Kong and British Virgin Islands are maintained in their local currencies, the Renminbi ("RMB"), Hong Kong Dollars ("HK$"), and U.S. Dollars ("US$"), respectively, which are also the functional currencies of these entities. | |||||||||||||||||
Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency at the rates of exchange ruling at the balance sheet date. Transactions in currencies other than the functional currency during the year are converted into functional currency at the applicable rates of exchange prevailing when the transactions occurred. Transaction gains and losses are recognized in the statements of operations. | |||||||||||||||||
The Group's entities with functional currency of RMB and HK$ translate their operating results and financial position into the US$, the Group's reporting currency. Assets and liabilities are translated using the exchange rates in effect on the balance sheet date. Revenues, expenses, gains and losses are translated using the average rate for the year. Translation adjustments are report as cumulative translation adjustments and are shown as a separate component of other comprehensive income. | |||||||||||||||||
Foreign currency risk | |||||||||||||||||
The RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People's Bank of China, controls the conversion of Renminbi into foreign currencies. The value of the RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. Cash and cash equivalents of the Group included aggregate amounts of $52,146,828, $26,848,249 and $26,974,664 at December 31, 2011, 2012 and 2013 which were denominated in RMB. | |||||||||||||||||
Product development expenses | |||||||||||||||||
Costs of product development, including investment in data capability, are expensed as incurred until technological feasibility has been established, at which time any additional costs would be capitalized. The Group essentially completed its development concurrently with the establishment of technological feasibility, and, accordingly, no costs have been capitalized. | |||||||||||||||||
Advertising costs | |||||||||||||||||
The Group expenses advertising costs as incurred. Total advertising expenses were $3,134,198, $753,107 and $2,391,762 for the years ended December 31, 2011, 2012 and 2013, respectively, and have been included as part of sales and marketing expenses in the accompanying consolidated statements of operations. | |||||||||||||||||
Commissions paid | |||||||||||||||||
Commissions paid are the commission rebates paid to the account executives of our Hong Kong brokerage business and the commissions paid to the sales agents of our precious metals trading business. Total commissions paid were $308,521, $161,035 and $3,125,982 for the years ended December 31, 2011, 2012 and 2013. | |||||||||||||||||
Income taxes | |||||||||||||||||
Current income taxes are provided for in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized for temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, net operating loss carry forwards and credits by applying enacted statutory tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. | |||||||||||||||||
The impact of an uncertain income tax position on the income tax return is recognized at the largest amount that is more-likely-than not to be sustained upon audit by the relevant tax authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Interest and penalties on income taxes will be classified as a component of the provisions for income taxes. | |||||||||||||||||
Comprehensive income (loss) | |||||||||||||||||
Comprehensive income (loss) includes net income (loss), unrealized gain (loss) on short-term investments and foreign currency translation adjustments. Beginning in January 1, 2012, the Group presents the components of net income, the components of other comprehensive income and total comprehensive income a single continuous consolidated statement of comprehensive income. The consolidated financial statements have been adjusted for the retrospective application of the authoritative guidance regarding presentation of comprehensive income (loss). | |||||||||||||||||
Fair value of financial instruments | |||||||||||||||||
Financial instruments include cash and cash equivalents, restricted cash, accounts receivable, short-term investments, cost method investment, loan receivable, accounts payable and short-term loan. | |||||||||||||||||
The carrying values of cash and cash equivalents, restricted cash, accounts receivable, loan receivable, accounts payable and short-term loan approximate their fair value due to their short-term maturities. | |||||||||||||||||
The carrying value of the cost method investment was $802,202 and $1,138,899 as of December 31, 2012 and 2013, which approximate the fair value of the investment based on the valuation performed by the Company. | |||||||||||||||||
The Group does not use derivative instruments to manage risks. | |||||||||||||||||
Share-based compensation | |||||||||||||||||
Share-based compensation with employees is measured based on the grant date fair value of the equity instrument. The Group recognizes the compensation costs net of an estimated forfeiture rate using the straight-line method for performance based awards or graded vesting attribution method for service based awards, over the requisite service period of the award, which is generally the vesting period of the award. The estimate of forfeitures will be adjusted over the requisite service period to the extent that actual forfeitures differ, or are expected to differ, from such estimates. Changes in estimated forfeitures will be recognized through a cumulative catch-up adjustment in the period of change and will also impact the amount of share-based compensation expense to be recognized in future periods. | |||||||||||||||||
Share awards issued to nonemployees are measured at fair value at the earlier of the commitment date or the date the services is completed and recognized over the period the service is provided or as goods is received. | |||||||||||||||||
Net income (loss) per share | |||||||||||||||||
Basic net income (loss) per share attributable to China Finance Online Co. Limited is computed by dividing net income (loss) attributable to China Finance Online Co. Limited by the weighted average number of ordinary shares outstanding during the period. Diluted net income per ordinary share attributable to China Finance Online Co. Limited reflects the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised or converted into ordinary shares. The dilutive effect of the stock options and nonvested shares is computed using treasury stock method. | |||||||||||||||||
Concentrations of credit risk | |||||||||||||||||
Financial instruments that potentially expose the Group to concentrations of credit risk consist principally of cash and cash equivalents, restricted cash, short-term investments, loan receivable and accounts receivable. The Group places its cash and cash equivalents, restricted cash, short-term investments, loan receivable and accounts receivable in major financial institutions located in PRC and Hong Kong, which management considers to be of high credit quality. | |||||||||||||||||
The Group conducts ongoing credit evaluations of its customers and generally does not require collateral or other security from its customers except for the accounts receivable-margin clients which represents the margin loan to customers for securities purchase. The accounts receivable-margin client was collateralized by the securities the margin client purchased. The Group manages its credit risk by collecting up-front fee from its customers and billing at regular intervals during the contract period. The Group assesses the adequacy of allowance for doubtful accounts primarily based upon the age of the receivables and factors surrounding the credit risk of specific customers. | |||||||||||||||||
Details of clients accounting for 10% or more of accounts receivable are as follows: | |||||||||||||||||
Year ended December 31, | |||||||||||||||||
2012 | 2013 | ||||||||||||||||
Amount | % | Amount | % | ||||||||||||||
A | $ | 3,694,584 | 18.5 | * | * | ||||||||||||
B | $ | 2,875,230 | 14.4 | * | * | ||||||||||||
C | $ | 3,165,537 | 15.8 | * | * | ||||||||||||
D | * | * | $ | 3,885,608 | 18.2 | ||||||||||||
* Represented less than 10% of consolidated account receivable balance. | |||||||||||||||||
There were no customers with 10% or more of the Group's revenues during 2011, 2012, or 2013. | |||||||||||||||||
Recently accounting pronouncements | |||||||||||||||||
In March of 2013, the FASB issued ASU 2013-05, "Foreign Currency Matters (Topic 830), Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity." The amendments clarify the applicable guidance for the release of the cumulative translation adjustment when 1) an entity ceases to have a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity; 2) there is a loss of a controlling financial interest in a foreign entity or a step acquisition involving an equity method investment that is a foreign entity; and 3) sales or transfers of a controlling financial interest within a foreign entity is the same irrespective of whether the sale or transfer is of a subsidiary or a group of assets (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) that is a nonprofit activity or business. The amendments are effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013. The amendments should be applied prospectively to derecognition events occurring after the effective date. Prior periods should not be adjusted. If an entity elects to early adopt the amendments, it should apply them as of the beginning of the entity's fiscal year of adoption. The Company does not expect ASU 2013-05 to have a significant impact on the Group's consolidated result of operations and financial condition. | |||||||||||||||||
In March of 2013, the FASB issued ASU 2013-11, "Income Taxes (Topic 740) Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists". The amendment clarifies that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. The amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. The Company does not expect ASU 2013-11 to have a significant impact on the Group's consolidated result of operations and financial condition. | |||||||||||||||||
Note_3_Acquisitions
Note 3 - Acquisitions | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Business Combinations [Abstract] | ' | ||||||||
Business Combination Disclosure [Text Block] | ' | ||||||||
3 | ACQUISITIONS | ||||||||
Acquisition of CFO Tahoe | |||||||||
On September 30, 2013, Shanghai Stockstar Wealth Management Co., Ltd. ("CFO Wealth Management"), an affiliate of the Company, paid $6,506,181 to subscribe the newly issued shares of Shenzhen Tahoe Investment and Development Co., Ltd. ("CFO Tahoe") and acquired 60% of the equity interest. CFO Tahoe held the 55% share equity in Henghui (Tianjin) Precious Metals Investment Co., Ltd., with which the Company expects to develop the precious metals trading business in the future. With the assistance of a third party appraiser, the Company allocated the purchase price to assets acquired and liabilities assumed as of the acquisition date as follows and goodwill was allocated to precious metal business and other related services operating segment. The net revenue and net income of CFO Tahoe in the amount of $5,988,280 and $1,864,234, respectively, have been included in the consolidated statement of comprehensive income for the year ended December 31, 2013. | |||||||||
Useful life | |||||||||
(Years) | |||||||||
Purchase price allocation: | |||||||||
Cash and cash equivalents | $ | 5,279,425 | |||||||
Prepaid expenses and current assets | 1,135,765 | ||||||||
Accounts receivable | 2,143,957 | ||||||||
Property and equipment, net | 47,770 | ||||||||
Rental deposit | 72,431 | ||||||||
Acquired intangible assets: | |||||||||
Precious metal trading right | 699,414 | ||||||||
Customer relationship | 1,250,813 | 4.3 | |||||||
Guarantee fund deposits | 1,626,545 | ||||||||
Total assets acquired | 12,256,120 | ||||||||
Accrued expenses and other current liabilities | (2,810,425 | ) | |||||||
Deferred tax liabilities | (487,557 | ) | |||||||
Total net assets | 8,958,138 | ||||||||
Noncontrolling interest | (9,508,295 | ) | |||||||
Goodwill | 7,056,338 | ||||||||
Total purchase price | $ | 6,506,181 | |||||||
Acquisition of Champion Connection's business | |||||||||
On July 1, 2013, Giant Bright International Holdings Limited ("CFO GB") and Mainfame Group Limited ("CFO MF"), two subsidiaries of the Company, entered into a series of contractual arrangement with Champion Connection Network H.K Limited ("Champion Connection") to acquire the packaged fixed assets, experienced personnel related to its investment advisory and institution subscription services businesses in China, respectively. For the acquisition, the purchase consideration comprised cash consideration was $4,044,980, 30% shares of CFO GB, 30% shares of CFO MF and a contingent consideration of 5% shares of CFO MF. With the assistance of a third party appraiser, the Company allocated the purchase price to assets acquired and liabilities assumed as of the acquisition date as follows and goodwill was allocated to investment advisory services, institution subscription services and other related services operating unit. In addition, the fair value of the shares of CFO GB and CFO MF were determined by using the income approach. | |||||||||
Purchase price allocation: | |||||||||
Property and equipment, net | $ | 199,803 | |||||||
Total assets acquired | 199,803 | ||||||||
Goodwill | 6,544,150 | ||||||||
Cash consideration | 4,044,980 | ||||||||
The fair value of 30% shares of CFO GB | 1,760,861 | ||||||||
The fair value of 30% shares of CFO MF | 804,142 | ||||||||
Contingent consideration of 5% shares of CFO MF | 133,970 | ||||||||
Total purchase price | $ | 6,743,953 | |||||||
Business combination of CFO Netinfo | |||||||||
On July 1, 2013, Zhengyong Information Technology (Shanghai) Co., Ltd. ("CFO Zhengyong"), a subsidiary of the Company, entered into a series of contractual arrangement with Netinfo (Beijing) Technology Co., Ltd. ("CFO Netinfo") to acquire 100% of the equity interest, with which the Company expects to develop the investment advisory services in the future. For the acquisition, the total cash consideration was $808,996. With the assistance of a third party appraiser, the Company allocated the purchase price to assets acquired and liabilities assumed as of the acquisition date as follows and goodwill was allocated to investment advisory services business and other related services operating segment. The net revenue and net loss of CFO Netinfo in the amount of $286,500 and $355,322, respectively, have been included in the consolidated statement of comprehensive income for the year ended December 31, 2013. | |||||||||
Useful life | |||||||||
(Years) | |||||||||
Purchase price allocation: | |||||||||
Cash and cash equivalents | $ | 121,044 | |||||||
Prepaid expenses and current assets | 339,296 | ||||||||
Accounts receivable | 4,912 | ||||||||
Acquired intangible assets: | |||||||||
Security consulting license | 598,657 | 15 | |||||||
Total assets acquired | 1,063,909 | ||||||||
Accrued expenses and other current liabilities | (274,748 | ) | |||||||
Deferred tax liabilities | (149,664 | ) | |||||||
Income tax payable | 612 | ||||||||
Total net assets | 640,109 | ||||||||
Goodwill | 168,887 | ||||||||
Total purchase price | $ | 808,996 | |||||||
Assets acquisition in 2012 | |||||||||
In the first quarter of 2012, CFO Software, a subsidiary of the Company, entered into a series of contractual agreements, to acquire a securities consulting license for a total consideration of $2,063,361. | |||||||||
Useful life | |||||||||
(Years) | |||||||||
Purchase price allocation: | |||||||||
Acquired intangible assets: | |||||||||
Securities consulting license | $ | 2,751,148 | 15 | ||||||
Deferred tax liabilities | (687,787 | ) | |||||||
Total purchase price | $ | 2,063,361 | |||||||
Acquisition of CFO East Win | |||||||||
On June 30, 2012, CFO Software, a subsidiary of the Company, entered into a series of contractual arrangement with East Win Investment Consulting Co., Limited ("CFO East Win") to acquire 70% of the equity interest, with which the Company expects to develop the wealth management services in the future. For the acquisition, the total cash consideration was $2,848,507. With the assistance of a third party appraiser, the Company allocated the purchase price to assets acquired and liabilities assumed as of the acquisition date as follows and goodwill was allocated to subscription services and other related services operating segment. The net revenue and net loss of CFO East Win in the amount of $860,549 and $1,411,495, respectively, have been included in the consolidated statement of comprehensive income for the year ended December 31, 2012. | |||||||||
Useful life | |||||||||
(Years) | |||||||||
Purchase price allocation: | |||||||||
Cash and cash equivalents | $ | 14,073 | |||||||
Prepaid and other current assets | 215,868 | ||||||||
Accounts receivable | 949 | ||||||||
Property and equipment, net | 625,258 | ||||||||
Rental deposit | 8,998 | ||||||||
Acquired intangible assets | |||||||||
Security consulting license | 2,065,168 | 15 | |||||||
Core technology | 66,465 | 5 | |||||||
Total assets acquired | 2,996,779 | ||||||||
Accounts payable | (137,665 | ) | |||||||
Accrued expenses and other current liabilities | (1,608,027 | ) | |||||||
Income tax payable | (30,780 | ) | |||||||
Deferred tax liabilities | (532,908 | ) | |||||||
Total net assets | 687,399 | ||||||||
Noncontrolling interest | (871,960 | ) | |||||||
Goodwill | 3,033,068 | ||||||||
Total purchase price | $ | 2,848,507 | |||||||
On July 1, 2013, CFO GB entered into a series of contractual arrangement with CFO East Win to acquire the remaining 30% equity interest in CFO East Win. The consideration was the 10% shares of CFO GB, whose fair value was $586,954 valued by a third party appraiser. | |||||||||
The following summarized unaudited pro forma results of operations for the years ended December 31, 2012 and 2013 assuming that all significant acquisitions during the year ended December 31, 2012 and 2013 occurred as of January 1, 2012. These pro forma results have been prepared for comparative purposes only and do not purport to be indicative of the results of operations which actually would have resulted, had the significant acquisitions occurred as of January 1, 2012 and 2013, nor is it indicative of future operating results. | |||||||||
For the year ended December 31, | |||||||||
2012 | 2013 | ||||||||
(unaudited) | (unaudited) | ||||||||
Revenues | $ | 36,237,382 | $ | 60,646,859 | |||||
Net loss attributable to China Finance Online Co., Limited | (15,202,149 | ) | (9,978,159 | ) | |||||
Net loss per share attributable to China Finance Online Co. Limited | |||||||||
- basic | $ | (0.14 | ) | $ | (0.09 | ) | |||
- diluted | $ | (0.14 | ) | $ | (0.09 | ) | |||
Fair value of acquired assets | |||||||||
The Group measured the fair value for the assets acquired, with the assistance of American Appraisal, an independent valuation firm, using discounted cash flow techniques, and these assets were valued using Level 3 inputs, because the Group used unobservable inputs to value them, reflecting the Group's assessment of the assumptions market participants would use in valuing these purchased intangible assets. | |||||||||
Note_4_Accounts_Receivable
Note 4 - Accounts Receivable | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounts Receivable [Abstract] | ' | ||||||||
Accounts Receivable [Text Block] | ' | ||||||||
4 | ACCOUNTS RECEIVABLE | ||||||||
December 31, | |||||||||
2012 | 2013 | ||||||||
Accounts receivable-margin clients | $ | 15,054,331 | $ | 6,111,916 | |||||
Less: Allowance for doubtful accounts | - | (135,275 | ) | ||||||
Accounts receivable- margin clients, net | $ | 15,054,331 | $ | 5,976,641 | |||||
Accounts receivable-others | 5,012,320 | 15,427,520 | |||||||
Less: Allowance for doubtful accounts | (41,893 | ) | (102,236 | ) | |||||
Accounts receivable-others, net | $ | 4,970,427 | $ | 15,325,284 | |||||
Accounts receivable- margin clients represent the receivables derived in the Hong Kong brokerage service in iSTAR Securities, which is pledged by the customer's purchased securities. | |||||||||
Accounts receivable-others represent the receivables derived in precious metals trading business and other ordinary business without any collateral or other security from its customers. | |||||||||
Note_5_Consideration_Receivabl
Note 5 - Consideration Receivable | 12 Months Ended | |
Dec. 31, 2013 | ||
Consideration Receivable [Abstract] | ' | |
Consideration Receivable [Text Block] | ' | |
5. | CONSIDERATION RECEIVABLE | |
In order to enhance our return on cash during the strategic transition period, in March 2013, the Company made an equity method investment to a real estate developer in Langfang City, Hebei Province (the "Lang Fang Developer"). The Company invested an aggregate $22,142,400 in consideration for 49% of its equity interests. In December 2013, the Company transferred this investment at the consideration of $24,930,702. As of December 31, 2013, the Company has collected $11,481,244 in cash and $13,449,458 will be expected to be collected in 2014. | ||
Note_6_Prepaid_Expenses_and_Ot
Note 6 - Prepaid Expenses and Other Current Assets | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Prepaid Expenses And Other Current Assets Disclosure [Abstract] | ' | ||||||||
Prepaid Expenses And Other Current Assets Disclosure [Text Block] | ' | ||||||||
6 | PREPAID EXPENSES AND OTHER CURRENT ASSETS | ||||||||
Prepaid expenses and other current assets consist of the following: | |||||||||
December 31, | |||||||||
2012 | 2013 | ||||||||
Prepayment of advertising fees | $ | 12,728 | $ | 281,590 | |||||
Advertising deposit | 47,729 | 250,837 | |||||||
Advances to suppliers | 1,037,764 | 1,182,555 | |||||||
VAT refund receivable | 89,843 | 141,292 | |||||||
Interest receivable | 1,019,415 | 419,991 | |||||||
Prepayment of office rental | 47,462 | 185,698 | |||||||
Other current assets | 525,406 | 844,716 | |||||||
$ | 2,780,347 | $ | 3,306,679 | ||||||
Note_7_Loan_Receivable
Note 7 - Loan Receivable | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Receivables [Abstract] | ' | ||||||||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | ' | ||||||||||||
7 | LOAN RECEIVABLE | ||||||||||||
The Group has loan receivable due from third parties, which consisted of the following: | |||||||||||||
As of December 31, | |||||||||||||
2012 | 2013 | Interest rate | Period | ||||||||||
A(i) | 1,205,604 | - | 6% per annum | December 1, 2011 to November 30, 2012 | |||||||||
B(ii) | - | 10,333,120 | 1.5% per month | October 9, 2013 to March 31, 2014 | |||||||||
$ | 1,205,604 | $ | 10,333,120 | ||||||||||
(i) | The principal and its return are guaranteed by a third party individual. There is an interest of 1.25% per month charged on overdue balance. The Company collected $995,190 and wrote off the uncollected balances in 2013. | ||||||||||||
(ii) | The loan was made to the Langfang Developer, in which the Group also made an equity method investment during the year (Note 6). The principal and its return are pledged by the 100% equity interests of Langfang Developer, which was completed in April 2014 (Note 25). | ||||||||||||
The following table presents changes in loan receivable for the twelve-month period ended December 31, 2012 and 2013, respectively: | |||||||||||||
December 31, | |||||||||||||
2012 | 2013 | ||||||||||||
Beginning balance | $ | 9,565,503 | $ | 1,205,604 | |||||||||
Additions | - | 10,333,120 | |||||||||||
Collection | (8,363,140 | ) | (995,190 | ) | |||||||||
Write-offs | - | (209,956 | ) | ||||||||||
Exchange difference | 3,241 | (458 | ) | ||||||||||
Ending balance | $ | 1,205,604 | $ | 10,333,120 | |||||||||
Note_8_ShortTerm_Investments
Note 8 - Short-Term Investments | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Short Term Investments [Abstract] | ' | ||||||||||||||||
Short Term Investments [Text Block] | ' | ||||||||||||||||
8 | SHORT-TERM INVESTMENTS | ||||||||||||||||
The Group measured the held-to-maturity securities at amortized cost. As of December 31, 2012 and 2013, the Group's held-to-maturity securities consisted of trust fund and financial product issued by bank carried at amortized cost of $2,639,589 and nil, respectively. Gains from the held- to-maturity were recognized in the consolidated statement of operations for the year ended December 31, 2012 and 2013 were $367,520 and $4,234, respectively. | |||||||||||||||||
The Group measured the trading securities at fair value based on quoted market prices in an active market. As a result the Group has determined the valuation of its trading securities falls within Level 1of the fair value hierarchy. As of December 31, 2012 and 2013, the fair value of trading securities was nil and nil, respectively. Gains from the trading securities were recognized in the consolidated statement of operations for the years ended December 31, 2011, 2012 and 2013 were $266,705, $113,152 and nil, respectively. | |||||||||||||||||
8 | SHORT-TERM INVESTMENTS - continued | ||||||||||||||||
The Group measured the available-for-sale securities at the fair value shown by the financial institution which the Group believes a Level 3 valuation. | |||||||||||||||||
The following table presents changes in level 3 available-for-sale securities measured on a recurring basis for the twelve-month period ended December 31, 2012 and 2013, respectively: | |||||||||||||||||
December 31, | |||||||||||||||||
2012 | 2013 | ||||||||||||||||
Beginning balance | $ | 923,582 | $ | - | |||||||||||||
Purchases | 81,664,295 | ||||||||||||||||
Redemption | (916,228 | ) | (81,824,078 | ) | |||||||||||||
Realized gain(loss) | (45,567 | ) | 127,835 | ||||||||||||||
Unrealized loss | 38,185 | - | |||||||||||||||
Exchange difference | 28 | 31,948 | |||||||||||||||
Ending balance | $ | - | $ | - | |||||||||||||
The following table provides additional information on the realized gains of the sale of available-for-sale securities as of December 31, 2012 and 2013, respectively. For purposes of determining gross realized gains, the cost of securities sold is based on specific identification. | |||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||
Proceeds | Costs | Gains | Exchange | ||||||||||||||
difference | |||||||||||||||||
Available-for-sale securities | $ | 81,824,078 | $ | 81,664,295 | $ | 127,835 | $ | 31,948 | |||||||||
Total | $ | 81,824,078 | $ | 81,664,295 | $ | 127,835 | $ | 31,948 | |||||||||
Year ended December 31, 2012 | |||||||||||||||||
Proceeds | Costs | Losses | Exchange | ||||||||||||||
difference | |||||||||||||||||
Available-for-sale securities | $ | 916,228 | $ | 952,411 | $ | (45,567 | ) | $ | 9,384 | ||||||||
Total | $ | 916,228 | $ | 952,411 | $ | (45,567 | ) | $ | 9,384 | ||||||||
The fair values of trading securities and available-for-sale securities as measured, and held-to-maturity securities as disclosed are further discussed in Note 8. | |||||||||||||||||
Note_9_Fair_Value_Measurement
Note 9 - Fair Value Measurement | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Disclosures [Text Block] | ' | ||||||||||||||||
9 | FAIR VALUE MEASUREMENT | ||||||||||||||||
Fair value disclosed or measured on a recurring basis | |||||||||||||||||
The fair values of the Group's trading securities and available-for-sale securities as measured, held-to-maturity securities as disclosed are determined based on the discounted cash flow method. | |||||||||||||||||
The Group's financial assets measured or disclosed at fair value on a recurring basis were $2,639,589 and nil as of December 31, 2012 and 2013, respectively. | |||||||||||||||||
Fair value disclosure or measurement at December 31, 2012 | |||||||||||||||||
Fair value at | Quoted price in active | Significant other | Significant | ||||||||||||||
31-Dec-12 | markets for identical | observable inputs | unobservable inputs | ||||||||||||||
asset (Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Fair value disclosure | |||||||||||||||||
Short-term investment: | |||||||||||||||||
Held-to-maturity securities | $ | 2,639,589 | - | $ | 2,639,589 | - | |||||||||||
Fair value measurement | |||||||||||||||||
Trading securities | - | - | - | - | |||||||||||||
Available-for-sale securities | - | - | - | - | |||||||||||||
Total assets measured at fair value | - | - | - | - | |||||||||||||
The Group measured the available-for-sale securities at the fair value shown by the financial institution which the Group believes a Level 3 valuation. | |||||||||||||||||
The following table presents changes in level 3 available-for-sale securities measured on a recurring basis for the twelve-month period ended December 31, 2012 and 2013, respectively: | |||||||||||||||||
December 31, | |||||||||||||||||
2012 | 2013 | ||||||||||||||||
Beginning balance | $ | 923,582 | $ | - | |||||||||||||
Purchases | - | 81,664,295 | |||||||||||||||
Redemption | (916,228 | ) | (81,824,078 | ) | |||||||||||||
Realized gain(loss) | (45,567 | ) | 127,835 | ||||||||||||||
Unrealized loss | 38,185 | - | |||||||||||||||
Exchange difference | 28 | 31,948 | |||||||||||||||
Ending balance | $ | - | $ | - | |||||||||||||
Fair value disclosed or measured on a non-recurring basis | |||||||||||||||||
The Group measured the fair value of acquired intangible assets using the income approach valuation methodology. These acquired intangible assets are considered Level 3 assets because the Group used unobservable inputs, such as forecast financial performance of the acquired business and discount rates, to determine the fair value of these acquired assets. | |||||||||||||||||
Note_10_Cost_Method_Investment
Note 10 - Cost Method Investment | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Disclosure Text Block Supplement [Abstract] | ' | ||||||||
Cost and Equity Method Investments Disclosure [Text Block] | ' | ||||||||
10 | COST METHOD INVESTMENT | ||||||||
In 2012, the Group made a cost method investment. The carrying amount of the cost method investments was $802,202 as of December 31, 2012. As result of an addition investment of $309,698 in 2013, the carrying balance of such investment was $1,138,899 as of December 31, 2013. The investment is still recorded as a cost method investment, as the Company did not have a significant influence to the investee. There was no impairment of the Group's cost method investment for the year ended December 31, 2012 and 2013. | |||||||||
The following table presents changes in cost method investment for the years ended December 31, 2012 and 2013, respectively: | |||||||||
December 31, | |||||||||
2012 | 2013 | ||||||||
Beginning balance | $ | - | $ | 802,202 | |||||
Purchases | 802,202 | 309,698 | |||||||
Exchange difference | - | 26,999 | |||||||
Ending balance | $ | 802,202 | $ | 1,138,899 | |||||
Note_11_Equity_Method_Investme
Note 11 - Equity Method Investment | 12 Months Ended | |
Dec. 31, 2013 | ||
Equity Method Investments and Joint Ventures [Abstract] | ' | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | ' | |
11 | EQUITY METHOD INVESTMENT | |
In March, 2013, the Group's Board of Directors approved and authorized the Group's participation in a real estate project. Pursuant to the investment agreement entered into in connection with the real estate project, the Company owned 49% of the equity interest with a consideration of $21,525,608. In December, 2013, the Group transferred the total 49% of the equity interest to a third party. Gains from the equity method investment recognized in the consolidated statement of comprehensive income for the years ended December 31, 2013 were $2,773,839. | ||
The investee meets the definition of variable interest entity (VIE). The Group consolidates all entities that control by ownership of a majority voting interest as well as variable interest entities for which the Group is the primary beneficiary. The primary beneficiary of a variable interest entity is the party that absorbs a majority of the entity’s expected losses, receives a majority of its expected residual returns, or both, as a result of holding variable interests, which are the ownership, contractual, or other pecuniary interests in an entity that change with changes in the fair value of the entity’s net assets excluding variable interests. | ||
For the 49% equity investment on the VIE, the Group will not absorb a majority of the VIE's expected losses, or receive a majority of the VIE's expected residual returns, therefore the Group is not the primary beneficiary of the VIE. Since the Group has the ability to significantly influence over the operating and financial policies of the VIE, the Group treated the investment using equity method accounting. | ||
Note_12_Property_and_Equipment
Note 12 - Property and Equipment, Net | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | ||||||||
12 | PROPERTY AND EQUIPMENT, NET | ||||||||
Property and equipment, net consisted of: | |||||||||
December 31, | |||||||||
2012 | 2013 | ||||||||
Technology infrastructure | $ | 9,605,535 | $ | 10,299,529 | |||||
Computer equipment | 1,911,447 | 1,840,958 | |||||||
Furniture, fixtures and equipment | 3,200,237 | 3,548,706 | |||||||
Motor vehicle | 731,672 | 609,345 | |||||||
Leasehold improvements | 3,910,370 | 4,173,025 | |||||||
19,359,261 | 20,471,563 | ||||||||
Less: accumulated depreciation | (14,445,147 | ) | (16,603,296 | ) | |||||
$ | 4,914,114 | $ | 3,868,267 | ||||||
Depreciation expense for the years ended December 31, 2011, 2012 and 2013 were $3,037,681, $2,838,031 and $1,732,035, respectively. | |||||||||
Note_13_Acquired_Intangible_As
Note 13 - Acquired Intangible Assets, Net | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Disclosure Text Block [Abstract] | ' | ||||||||||||||||||||||||
Intangible Assets Disclosure [Text Block] | ' | ||||||||||||||||||||||||
13 | ACQUIRED INTANGIBLE ASSETS, NET | ||||||||||||||||||||||||
Intangible assets as of December 31, 2012 and 2013 were as follows: | |||||||||||||||||||||||||
31-Dec | |||||||||||||||||||||||||
2012 | 2013 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
carrying | amortization | carrying | carrying | amortization | carrying | ||||||||||||||||||||
amount | amount | amount | amount | ||||||||||||||||||||||
Intangible assets not subject to amortization: | |||||||||||||||||||||||||
Precious metal trading right | $ | - | $ | - | $ | - | $ | 1,295,740 | $ | - | $ | 1,295,740 | |||||||||||||
Intangible assets subject to amortization: | |||||||||||||||||||||||||
Completed technology | 66,820 | (7,276 | ) | 59,544 | 68,887 | (21,279 | ) | 47,608 | |||||||||||||||||
Customer relationship | 1,261,297 | (72,767 | ) | 1,188,530 | |||||||||||||||||||||
Securities consulting license and related trademarks | 4,833,877 | (218,184 | ) | 4,615,693 | 5,590,273 | (577,389 | ) | 5,012,884 | |||||||||||||||||
$ | 4,900,697 | $ | (225,460 | ) | $ | 4,675,237 | $ | 8,216,197 | $ | (671,435 | ) | $ | 7,544,762 | ||||||||||||
Amortization expenses for the years ended December 31, 2011, 2012 and 2013 were $444,292, $224,430 and $432,957, respectively. Future amortization expenses of acquired intangible assets with determinable lives are $677,532, $677,532, $677,532, $670,031 and $3,546,395 for 2014, 2015, 2016, 2017 and 2018 and thereafter, respectively. | |||||||||||||||||||||||||
For the year ended December 31, 2011, the Group recorded an impairment loss on its intangible assets in the amount of $4,078,084 associated with the acquired trademarks, stock exchange trading right, futures exchange trading right, securities consulting license and related trademarks, and intellectual property due to management's estimation of the expected future cash flows associated with these assets were insufficient to recover their carrying values. There was no impairment on intangible assets for the year ended December 31, 2012 and 2013. | |||||||||||||||||||||||||
Note_14_Goodwill
Note 14 - Goodwill | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Disclosure Text Block Supplement [Abstract] | ' | ||||||||||||||||||||||||||||||||
Goodwill Disclosure [Text Block] | ' | ||||||||||||||||||||||||||||||||
14 | GOODWILL | ||||||||||||||||||||||||||||||||
Changes in goodwill for the years ended December 31, 2011, 2012 and 2013 were as follows: | |||||||||||||||||||||||||||||||||
Precious | Investment | Institutional | Hong Kong | Southern | Eastern | Northern | Total | ||||||||||||||||||||||||||
Metals trading | advisory | subscription | Brokerage service | China | China | China | |||||||||||||||||||||||||||
services | services | ||||||||||||||||||||||||||||||||
Balance as of December 31, 2011 | |||||||||||||||||||||||||||||||||
Goodwill | $ | - | $ | - | $ | - | $ | 1,269,520 | $ | 2,400,576 | $ | 8,892,249 | $ | 387,242 | $ | 12,949,587 | |||||||||||||||||
Accumulated impairment loss | - | - | - | (1,267,826 | ) | (2,507,499 | ) | (9,284,338 | ) | (403,561 | ) | (13,463,224 | ) | ||||||||||||||||||||
Exchange difference | - | - | - | (1,694 | ) | 106,923 | 392,089 | 16,319 | 513,637 | ||||||||||||||||||||||||
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||||
Acquisition (Note 3) | - | 3,033,068 | - | - | - | - | - | 3,033,068 | |||||||||||||||||||||||||
Exchange difference | - | 16,213 | - | - | - | - | - | 16,213 | |||||||||||||||||||||||||
Balance as of December 31, 2012 | $ | - | $ | 3,049,281 | $ | - | $ | - | - | - | - | $ | 3,049,281 | ||||||||||||||||||||
Acquisition of CFO Tahoe (Note 3) | 7,056,338 | - | - | - | - | - | - | 7,056,338 | |||||||||||||||||||||||||
Acquisition of Champion Connection's business (Note3) | - | 4,867,660 | 1,676,490 | - | - | - | - | 6,544,150 | |||||||||||||||||||||||||
Acquisition of CFO Netinfo (Note 3) | - | 168,887 | - | - | - | - | - | 168,887 | |||||||||||||||||||||||||
Exchange difference | 59,141 | 96,640 | - | - | - | - | - | 155,781 | |||||||||||||||||||||||||
Balance as of December 31, 2013 | $ | 7,115,479 | $ | 8,182,468 | $ | 1,676,490 | $ | - | $ | - | $ | - | $ | - | $ | 16,974,437 | |||||||||||||||||
During the third quarter of 2011, the Group determined that due to the significant decline in its stock price for a sustained period, there was an impairment indicator related to goodwill as of September 30, 2011. The Group performed an assessment of the carrying value of goodwill as of September 30, 2011. In the fourth quarter of 2011, the Group realized its operating environment has undergone profound structural changes and decided upon a strategic transition since April, 2012, that the Group will implement a strategic transition of its core business from mainly providing subscription services to individual investors to developing fee-based securities investment advisory services with wealth management services. The Group evaluated the situation as of December 31, 2011 by considering a strategic transition and impact of structural changes. Based on these assessments, the Group concluded that goodwill were fully impaired because the estimated growth rates and profit margins for future periods were expected lower than that of prior years. | |||||||||||||||||||||||||||||||||
During the third quarter of 2013, the Group made a series of business acquisition and restructures. The Company has re-categorized its reporting units to better reflect the evolving nature of its businesses and reallocated its goodwill. The goodwill related to acquisition of CFO Tahoe was allocated to precious metals trading reporting unit; the goodwill related to the acquisition of CFO East Win, CFO Netinfo and Champion Connection’s investment advisory business were allocated to investment advisory services reporting unit and the goodwill related to the acquisition of Champion Connection’s institutional subscription business were allocated to the institutional reporting unit. | |||||||||||||||||||||||||||||||||
In the goodwill impairment test, the Group used the income approach, which it believed to be more reliable than the market approach in determining the fair value of the Group's reporting units. Accordingly, it adopted a discounted cash flow ("DCF") method under the income approach, which considers a number of factors that include expected future cash flows, growth rates, discount rates, and comparable multiples from publicly traded companies in the industry and requires the Group to make certain assumptions and estimates regarding industry economic factors and future profitability of its business unit. The assumptions are inherently uncertain and subjective. | |||||||||||||||||||||||||||||||||
The Company performed goodwill impairment tests to determine if goodwill impairment is indicated in year 2011, 2012 and 2013. Based on the impairment tests performed, the Group recognized an impairment loss of $13,463,224, nil and nil for the years ended December 31, 2011, 2012 and 2013, respectively. | |||||||||||||||||||||||||||||||||
Note_15_Bank_Facilities_and_Sh
Note 15 - Bank Facilities and Short-Term Loans | 12 Months Ended | |
Dec. 31, 2013 | ||
Debt Disclosure [Abstract] | ' | |
Debt Disclosure [Text Block] | ' | |
15 | BANK FACILITIES AND SHORT-TERM LOANS | |
In February 2012, the Group renewed the facility which was matured in February 2013. The facility had a term loan facility amount up to $7,095,584 and a revolving loan facility amount up to $5,676,467. The facilities are guaranteed by a standby letter of credit, which is secured by the Company's restricted cash of $14,398,218 as of December 31, 2012. As December 31, 2012, $7,095,584 of loans was outstanding under such loan facilities. The outstanding term loans and revolving loans have the interest margin, which is 2.4%, plus Hong Kong Interbank Offered Rate ranging from 0.11% to 0.33%. | ||
In June 2012, the Group renewed the facility which will be matured in June 2013. The facility had a term loan facility amount up to $6,450,531 and a revolving loan facility amount up to $6,321,520. The facilities are guaranteed by a standby letter of credit, which is secured by the Company's restricted cash of $14,465,198 as of December 31, 2012. As December 31, 2012, $6,450,531 of loans was outstanding under such loan facilities. The outstanding term loans and revolving loans have the interest margin, which is 2.4%, plus Hong Kong Interbank Offered Rate ranging from 0.11% to 0.33%. | ||
During 2013, the Group did not renew the bank facilities which were matured in February 2013 and June 2013, respectively, and repaid all the short-term loan of $13,546,115. As December 31, 2013, there was no outstanding loan under such loan facilities. | ||
Note_16_Accounts_Payable
Note 16 - Accounts Payable | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | ' | ||||||||
16 | Accounts payable | ||||||||
Accounts payable consist of: | |||||||||
December 31, | |||||||||
2012 | 2013 | ||||||||
Amount due to customers of H.K. brokerage business | $ | 584,607 | $ | 7,039,937 | |||||
Amount due to sales agents | - | 4,202,811 | |||||||
Consulting fees payable | - | 1,175,319 | |||||||
Others | 220,244 | 154,656 | |||||||
$ | 804,851 | $ | 12,572,723 | ||||||
Note_17_Accrued_Expenses_and_O
Note 17 - Accrued Expenses and Other Current Liabilities | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Disclosure Text Block Supplement [Abstract] | ' | ||||||||
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block] | ' | ||||||||
17 | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ||||||||
Accrued expenses and other current liabilities consist of: | |||||||||
December 31, | |||||||||
2012 | 2013 | ||||||||
Accrued bonus | $ | 2,026,268 | $ | 3,687,135 | |||||
Accrued refund of subscription fees | 364,445 | - | |||||||
Accrued professional service fees | 718,863 | 676,758 | |||||||
Withholding individual income tax-option exercise | 61,683 | 61,683 | |||||||
Value added taxes and other taxes payable | 242,861 | 915,601 | |||||||
Accrued raw data cost | 364,889 | 565,747 | |||||||
Accrued welfare benefits | 68,717 | 117,392 | |||||||
Acquisition consideration payable | - | 2,221,680 | |||||||
Accrued sales service fees | 115,369 | 213,314 | |||||||
Others | 1,425,535 | 1,237,152 | |||||||
$ | 5,388,630 | $ | 9,696,462 | ||||||
Note_18_Stock_Options_and_Nonv
Note 18 - Stock Options and Nonvested Shares | 12 Months Ended | |||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | |||||||||||||||||||||||||||||
18 | STOCK OPTIONS AND NONVESTED SHARES | |||||||||||||||||||||||||||||
As of December 31, 2013, the Company and its subsidiary iSTAR Financial Holdings have two share-based compensation plans, which are described below. The compensation cost that has been charged against income for those plans was $1,538,802, $802,725, and $3,035,122 for 2011, 2012, and 2013, respectively. | ||||||||||||||||||||||||||||||
2004 Stock incentive plan | ||||||||||||||||||||||||||||||
In January 2004, the Company adopted the 2004 stock incentive plan (the "2004 Plan") which allows the Company to offer a variety of incentive awards to employees, directors, officers and other eligible persons in the Group, and consultants and advisors outside the Group. We amend the 2004 Plan in September 2004, August 2006, June 2009 and June 2010. The total number of ordinary shares authorized under the 2004 Plan was 30,688,488 as of December 31, 2013. | ||||||||||||||||||||||||||||||
Options to employees | ||||||||||||||||||||||||||||||
During the years of 2011 and 2012, the Company granted 285,000 and nil stock options to employees, respectively, at an exercise price that equaled the trading price of the stock upon the stock option grant. These options vest over 3 years. | ||||||||||||||||||||||||||||||
During 2013, the Company granted totaling 7,740,000 stock options to directors, officers and employees at an exercise price that equaled the trading price of the stock upon the stock option grant. These options vest over 3 years except the 3,300,000 shares granted to the two officers which vest over 2 years. | ||||||||||||||||||||||||||||||
The fair value of employee options was estimated on the basis of the Black-Scholes Option Pricing model with the following assumptions: | ||||||||||||||||||||||||||||||
Years ended December 31, | ||||||||||||||||||||||||||||||
2011 | 2013 | |||||||||||||||||||||||||||||
Weighted average risk free rate of return | 2.02% | - | 2.24% | 1.4 | % | |||||||||||||||||||||||||
Weighted average expected option life (years) | 6.14 | 6.14 | ||||||||||||||||||||||||||||
Expected volatility rate | 72.96% | - | 73.75% | 76.67 | % | |||||||||||||||||||||||||
Dividend yield | - | - | ||||||||||||||||||||||||||||
Options to employees - continued | ||||||||||||||||||||||||||||||
-1 | Expected volatility | |||||||||||||||||||||||||||||
The volatility of the underlying ordinary shares during the life of the options was estimated based on the historical stock price volatility of the Company over the past years. | ||||||||||||||||||||||||||||||
-2 | Risk-free interest rate | |||||||||||||||||||||||||||||
Risk-free interest rate was estimated based on the yield to maturity of treasury bonds of the United States with a maturity period close to the expected term of the options. | ||||||||||||||||||||||||||||||
-3 | Expected option life | |||||||||||||||||||||||||||||
The expected life was estimated based on historical information. | ||||||||||||||||||||||||||||||
-4 | Dividend yield | |||||||||||||||||||||||||||||
The dividend yield was estimated by the Company based on its expected dividend policy over the expected term of the options. | ||||||||||||||||||||||||||||||
-5 | Exercise price | |||||||||||||||||||||||||||||
Options are generally granted at an exercise price equal to the fair market value of the Company's shares at the date of grant. | ||||||||||||||||||||||||||||||
Options to non-employees | ||||||||||||||||||||||||||||||
During 2013, the Company granted 6,260,000 options under the 2004 Plan to consultants and strategic advisers. The fair value of non-employee options is estimated using the Black-Scholes Option Pricing model as such method provided a more accurate estimate of the fair value of services provided by the consultants and strategic advisers. The fair value of the stock options is remeasured as of the end of each reporting period until the services of these non-employees are complete under the service contracts. These options vest over 2 years. | ||||||||||||||||||||||||||||||
Summary of stock options to employees and non-employees | ||||||||||||||||||||||||||||||
A summary of the stock option activity is as follows: | ||||||||||||||||||||||||||||||
2011 | 2012 | 2013 | ||||||||||||||||||||||||||||
Number | Weighted | Number | Weighted | Number | Weighted | |||||||||||||||||||||||||
of options | average | of options | average | of options | average | |||||||||||||||||||||||||
exercise price | exercise price | exercise price | ||||||||||||||||||||||||||||
Outstanding at beginning of year | 13,103,238 | $ | 0.99 | 11,994,698 | $ | 0.96 | 11,144,998 | $ | 0.93 | |||||||||||||||||||||
Granted | 285,000 | 1.08 | - | - | 14,000,000 | 0.25 | ||||||||||||||||||||||||
Exercised | (47,500 | ) | 0.47 | (20,000 | ) | 0.16 | (190,250 | ) | 0.16 | |||||||||||||||||||||
Forfeited | (1,346,040 | ) | 1.28 | (829,700 | ) | 1.35 | (449,400 | ) | 1.25 | |||||||||||||||||||||
Outstanding at end of year | 11,994,698 | $ | 0.96 | 11,144,998 | $ | 0.93 | 24,505,348 | $ | 0.54 | |||||||||||||||||||||
Shares exercisable at end of year | 10,588,058 | $ | 0.91 | 10,856,838 | $ | 0.92 | 10,500,548 | $ | 0.93 | |||||||||||||||||||||
The following table summarizes information with respect to stock options outstanding at December 31, 2013: | ||||||||||||||||||||||||||||||
Options outstanding | Option exercisable | |||||||||||||||||||||||||||||
Stock option | Number | Weighted | Weighted | Aggregate | Number | Weighted | Aggregate | |||||||||||||||||||||||
with exercise | outstanding | average | average | intrinsic | exercisable | average | intrinsic value | |||||||||||||||||||||||
price of: | remaining | exercise | value as of | exercise | as of December 31, | |||||||||||||||||||||||||
contractual life | price | December 31, | price | 2013 | ||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||||
$0.16 | 2,620,488 | 2,620,488 | ||||||||||||||||||||||||||||
$1.04 | 200,000 | 200,000 | ||||||||||||||||||||||||||||
$1.31 | 1,177,700 | 1,177,700 | ||||||||||||||||||||||||||||
$1.32 | 27,000 | 27,000 | ||||||||||||||||||||||||||||
$1.12 | 400,000 | 400,000 | ||||||||||||||||||||||||||||
$1.16 | 200,000 | 200,000 | ||||||||||||||||||||||||||||
$1.07 | 700,000 | 700,000 | ||||||||||||||||||||||||||||
$0.96 | 2,386,000 | 2,386,000 | ||||||||||||||||||||||||||||
$1.32 | 73,600 | 73,600 | ||||||||||||||||||||||||||||
$1.26 | 493,560 | 493,560 | ||||||||||||||||||||||||||||
$1.65 | 10,000 | 10,000 | ||||||||||||||||||||||||||||
$1.43 | 2,137,000 | 2,137,000 | ||||||||||||||||||||||||||||
$1.43 | 50,000 | 50,000 | ||||||||||||||||||||||||||||
$0.87 | 30,000 | 25,200 | ||||||||||||||||||||||||||||
$0.25 | 14,000,000 | - | ||||||||||||||||||||||||||||
24,505,348 | 6.59 | $ | 0.54 | $ | 17,961,444 | 10,500,548 | $ | 0.93 | $ | 3,847,601 | ||||||||||||||||||||
The weighted-average grant-date fair value of options granted during the years 2011, 2012 and 2013 was $0.70, nil and $0.17, respectively. The total intrinsic value of options exercised during the years ended December 31, 2011, 2012 and 2013 was $5,740, $1,360, and $208,895, respectively. The total fair value of shares vested during the year ended December 31, 2011, 2012 and 2013 were $1,705,153, $663,519 and $141,549, respectively. | ||||||||||||||||||||||||||||||
As of December 31, 2013, 1,100,240 ordinary shares were available for future grant of awards. The Company recognized share-based compensation expenses of $945,868, $207,678 and $2,539,274 for stock option in the years ended December 31, 2011, 2012 and 2013, respectively. | ||||||||||||||||||||||||||||||
As of December 31, 2013, there were $4,839,329 unrecognized share-based compensation expenses relating to the stock options, which are expected to be recognized over a weighted average period of three year. | ||||||||||||||||||||||||||||||
2007 Equity incentive plan | ||||||||||||||||||||||||||||||
In July 2007, the Company adopted the 2007 Equity incentive plan (the "2007 Plan") and granted nonvested shares covering 10,558,493 ordinary shares of the Company to the employees who were eligible for the 2007 Plan. The vesting of the nonvested shares are subject to achieving certain operating performance targets and rendering service to the Company for the requisite service period stated in the 2007 Plan. Based on the Company’s operating performance, 8,658,048 shares were vested as of December 31, 2010. | ||||||||||||||||||||||||||||||
2010 Equity incentive plan of iSTAR Financial Holdings | ||||||||||||||||||||||||||||||
In November 2010, iSTAR Financial Holdings, a subsidiary of the Company, implemented the "2010 equity incentive plan" (the "plan") under which the Company transferred 1,500 nonvested shares which representing 15% of total iSTAR Financial Holdings' equity interest to its management group as a share incentive. If the grantees left the Company before the third anniversary of the grant date when the nonvested shares become vested, they should transfer the shares to the Company at no consideration. Therefore, the total share based compensation expenses are recognized ratably over the three years of vesting period. In addition, as the grantees are entitled to all the shareholder's rights, including the dividend rights since the date of grant, the 15% share of the earnings of iSTAR Financial Holdings is recognized as noncontrolling interest on the Company's consolidated financial statements since November 1, 2010, the date of grant. | ||||||||||||||||||||||||||||||
The fair value of the share incentive was determined to be $1,188 per share. The Group recognized $592,934, $595,049 and $495,848 share based compensation cost in 2011, 2012 and 2013, respectively. | ||||||||||||||||||||||||||||||
As of December 31, 2013, all compensation cost relating to nonvested shares was recognized. | ||||||||||||||||||||||||||||||
Note_19_Income_Taxes
Note 19 - Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Tax Disclosure [Text Block] | ' | ||||||||||||
19 | INCOME TAXES | ||||||||||||
Hong Kong | |||||||||||||
China Finance Online, iSTAR Securities, iSTAR Futures, iSTAR Wealth Management, iSTAR Investment Services, iSTAR Credit and other seven subsidiaries were established in Hong Kong. These companies were subject to Hong Kong profit tax at 16.5%. In addition, companies who incorporated outside of Hong Kong and carried on a trade, profession or business in Hong Kong were also subject to Hong Kong profit tax in respect of their profits arising in or derived from Hong Kong. | |||||||||||||
British Virgin Islands | |||||||||||||
Companies that were incorporated in the BVI are not subject to taxation in their country of incorporation. Subsidiaries incorporated in the BVI include iSTAR Financial Holdings and other eleven subsidiaries. | |||||||||||||
PRC | |||||||||||||
The Group's PRC entities are subject to 25% PRC Enterprise Income Tax ("EIT") on the taxable income in accordance with the relevant PRC income tax laws, except for certain entities that enjoy preferential tax rates, which are lower than the statutory rates, as described below. | |||||||||||||
Under the EIT Law and its implementing rules, an enterprise which qualifies as a "high and new technology enterprise" ("the HNTE") is entitled to a tax rate of 15%. | |||||||||||||
Under the EIT law and its implementing rules, enterprises that obtain status of "Software Enterprises" are entitled to be exempted from EIT tax for the first two profit-making years and enjoy a preferential 12.5% tax rate, which is half of the standard EIT rate of 25% for the three years thereafter. | |||||||||||||
A summary of the main PRC entities that subject to tax preferential policies for the year ended December 31, 2013 is as follows: | |||||||||||||
PRC entities | Chinese enterprise income tax rate | Qualification for preferential tax rate | |||||||||||
CFO Success | Preferential tax rate of 12.5% from 2011 to 2012. | Software Enterprises | |||||||||||
CFO Qicheng | Full tax exemption for the year 2011 and preferential tax rate of 12.5% from 2012 to 2014. | Software Enterprises | |||||||||||
CFO Shenzhen Shangtong | Full tax exemption for the year 2011 and preferential tax rate of 12.5% from 2012 to 2014. | Software Enterprises | |||||||||||
CFO Zhengning | Preferential tax rate of 12% for the year 2011. | Software Enterprises | |||||||||||
CFO Stockstar | Transition tax rate 24% for the year 2011 and 25% from 2012 and thereafter. | Transition rules of the EIT Law | |||||||||||
CFO Jujin | Transition tax rate 24% for the year 2011 and 25% from 2012 and thereafter. | Transition rules of the EIT Law | |||||||||||
CFO Newrand | Transition tax rate 24% for the year 2011 and 25% from 2012 and thereafter. | Transition rules of the EIT Law | |||||||||||
CFO Software | Preferential tax rate of 15% from 2011 to 2013. | HNTE | |||||||||||
CFO Meining | Preferential tax rate of 15% from 2011 to 2013. | HNTE | |||||||||||
CFO Genius | Transition tax rate 24% for 2011; And preferential tax rate of 15% from 2012 to 2014. | HNTE; Transition rules of EIT Law | |||||||||||
The HNTE status obtained by CFO Software, CFO Meining and CFO Genius in 2008 under the EIT Law is valid for three years and qualifying entities can then apply to renew for an additional three years provided their business operations continue to qualify for the HNTE status. In 2011, CFO Software and CFO Meining obtained the renewal of HNTE status. In 2012, CFO Genius obtained the HNTE status. | |||||||||||||
In 2011, CFO Chongzhi, CFO Zhongcheng, CFO Securities Consulting and Shanghai Shangtong Co., Ltd. ("CFO-Shangtong") filed their income tax by adopting the "deemed-profit method". In 2012 and 2013, CFO Chongzhi and CFO Shangtong continued to adopt this method. Under this method, the qualifying entities filed their income tax by calculating as 2.5% of the gross revenues. This method is subject to be reevaluated by the local tax authority in the future. | |||||||||||||
The EIT Law includes a provision specifying that legal entities organized outside of the PRC will be considered residents for PRC Income tax purposes if the place of effective management or control is within the PRC. The implementation rules to the EIT Law provide that non-resident legal entities will be considered PRC residents if substantial and overall management and control over the manufacturing and business operations, personnel, accounting, properties, etc., occurs within the PRC. Despite the present uncertainties resulting from the limited PRC tax guidance on the issue, the Group does not believe that currently the legal entities organized outside of the PRC within the Group should be treated as residents for EIT law purposes. If the PRC tax authorities subsequently determine that the Company and its subsidiaries registered outside the PRC should be deemed a resident enterprise, the Company and its subsidiaries registered outside the PRC will be subject to the PRC income tax at a rate of 25%. | |||||||||||||
If the Company were to be non-resident for PRC tax purpose, dividends paid to it out of profits earned after January 1, 2008 would be subject to a withholding tax. In the case of dividends paid by PRC subsidiaries the withholding tax would be 10% not considering the arrangements for the Avoidance of Double Taxation on income and Prevention of Fiscal Evasion with respect to Taxes on Income between mainland and Hong Kong. | |||||||||||||
Aggregate deficits of the Company's subsidiaries located in the PRC were approximately $5,372,126 at December 31, 2013. And accordingly, no provision has been made for the Chinese dividend withholding taxes. | |||||||||||||
Aggregate undistributed earnings of the Company's VIEs and its VIEs' subsidiaries located in the PRC that are available for distribution to the Company of approximately $7,748,482 at December 31, 2013. A deferred tax liability should be recorded for taxable temporary differences attributable to the excess of financial reporting amounts over tax basis amounts, including those differences attributable to a more than 50% interest in a domestic subsidiary. However, recognition is not required in situations where the tax law provides a means by which the reported amount of that investment can be recovered tax-free and the enterprise expects that it will ultimately use that means. The Company has not recorded any such deferred tax liability attributable to the undistributed earnings of its financial interest in VIEs because it believes such excess earnings can be distributed in a manner that would not be subject to income tax. | |||||||||||||
Income tax (provision) benefit was as follows: | |||||||||||||
December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Current | $ | (662,114 | ) | $ | (315,197 | ) | $ | (478,966 | ) | ||||
Deferred | (3,276,319 | ) | (568,521 | ) | 378,908 | ||||||||
Total | $ | (3,938,433 | ) | $ | (883,718 | ) | $ | (100,058 | ) | ||||
The principal components of deferred income taxes were as follows: | |||||||||||||
December 31, | |||||||||||||
2012 | 2013 | ||||||||||||
Current deferred tax assets: | |||||||||||||
Deferred revenue - current | $ | 689,596 | $ | 618,648 | |||||||||
Accrued expenses and other liabilities | 313,572 | 583,849 | |||||||||||
Net operating loss carrying forwards | 949,476 | 4,442,678 | |||||||||||
1,952,644 | 5,645,175 | ||||||||||||
Less: valuation allowance | (1,561,019 | ) | (4,530,737 | ) | |||||||||
Total current deferred tax assets | 391,625 | 1,114,438 | |||||||||||
Non-current deferred tax assets: | |||||||||||||
Deferred revenue - non-current | $ | 200,774 | $ | 381,522 | |||||||||
Net operating loss carrying forwards | 8,101,455 | 8,370,153 | |||||||||||
8,302,229 | 8,751,705 | ||||||||||||
Less: valuation allowance | (8,101,455 | ) | (8,657,442 | ) | |||||||||
Total non-current deferred tax assets | $ | 200,774 | $ | 94,263 | |||||||||
Current deferred tax liabilities: | |||||||||||||
Account receivable and other assets | (140,074 | ) | (325,340 | ) | |||||||||
Total current deferred tax liabilities | $ | (140,074 | ) | $ | (325,340 | ) | |||||||
Non-current deferred tax liabilities: | |||||||||||||
Intangible assets | (1,168,809 | ) | (1,886,190 | ) | |||||||||
Total non-current deferred tax liabilities | $ | (1,168,809 | ) | $ | (1,886,190 | ) | |||||||
A valuation allowance of $9,662,474 and $13,188,179 was established as of December 31, 2012 and 2013, respectively, for the entities that have incurred losses because the Group believes that it is more likely than not that the related deferred tax assets will not be realized in the future. At December 31, 2013, operating loss carry forwards includes approximately $42.5 million which will expire by 2018, and $16.4 million which will carry forward indefinitely. | |||||||||||||
Reconciliation between total income tax expense (benefit) and the amount computed by applying the PRC EIT statutory rate to income before income taxes is as follows: | |||||||||||||
Years ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Loss before tax | $ | (15,525,522 | ) | $ | (11,076,429 | ) | $ | (8,073,832 | ) | ||||
Income tax expense calculated at 25% | (3,881,381 | ) | (2,769,107 | ) | (2,018,458 | ) | |||||||
Effect of tax holiday | (2,155,424 | ) | 2,206,739 | (266,396 | ) | ||||||||
Effect of income tax rate difference in other jurisdictions | (203,633 | ) | 250,412 | 305,505 | |||||||||
Non-deductible expenses | 4,950,474 | 851,680 | 267,748 | ||||||||||
Non-taxable income | (40,165 | ) | (2,122 | ) | (439,861 | ) | |||||||
Change in valuation allowance | 5,268,562 | 346,116 | 2,251,520 | ||||||||||
Income tax expense (benefit | $ | 3,938,433 | $ | 883,718 | $ | 100,058 | |||||||
During the years ended December 31, 2011, 2012 and 2013, if the China Finance Online's subsidiaries and VIEs in the PRC were neither in the tax holiday period nor had they been specifically allowed special tax concessions, they would have recorded additional income tax expense of $2,155,424, $39,026 and $31,910, respectively. The impact of the tax holidays on basic net income per ordinary share was an increase of $0.02, $0.00 and $0.00, for the years ended December 31, 2011, 2012 and 2013, respectively. | |||||||||||||
The Group did not identify significant unrecognized tax benefits for the years ended December 31, 2011, 2012 and 2013. The Group did not incur any interest and penalties related to potential underpaid income tax expenses and also believed that the adoption of pronouncement issued by FASB regarding accounting for uncertainty in income taxes did not have a significant impact on the unrecognized tax benefits within 12 months from December 31, 2013. | |||||||||||||
In accordance with relevant PRC tax administration laws, tax years from 2008 to 2013 of the Group's PRC subsidiaries and VIEs remain subject to tax audits as of December 31, 2013, at the tax authority's discretion. | |||||||||||||
Note_20_Net_Income_Loss_Per_Sh
Note 20 - Net Income (Loss) Per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Earnings Per Share [Text Block] | ' | ||||||||||||
20 | NET LOSS PER SHARE | ||||||||||||
The following table sets forth the computation of basic and diluted loss per share for the years indicated: | |||||||||||||
Years ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Net loss attributable to China Finance Online Co. Limited | $ | (19,326,909 | ) | $ | (11,855,207 | ) | $ | (8,573,128 | ) | ||||
Weighted average ordinary shares outstanding used in computing basic net income per share | 108,961,642 | 108,983,249 | 109,019,513 | ||||||||||
Weighted average ordinary shares outstanding used in computing diluted net income per share | 108,961,642 | 108,983,249 | 109,019,513 | ||||||||||
Net loss per share attributable to China Finance Online Co. Limited | |||||||||||||
- basic | $ | (0.18 | ) | $ | (0.11 | ) | $ | (0.08 | ) | ||||
- diluted | $ | (0.18 | ) | $ | (0.11 | ) | $ | (0.08 | ) | ||||
For the years ended December 31, 2011, 2012 and 2013, 11,994,698 options and 1,900,445 nonvested shares, 11,144,998 options and 1,900,445 nonvested shares, and 24,505,348 options and 1,900,445 nonvested shares were anti-dilutive, respectively, because the Group was in the loss position. | |||||||||||||
Note_21_Mainland_China_Contrib
Note 21 - Mainland China Contribution Plan and Profit Appropriation | 12 Months Ended | |
Dec. 31, 2013 | ||
Compensation and Retirement Disclosure [Abstract] | ' | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | ' | |
21 | MAINLAND CHINA CONTRIBUTION PLAN AND PROFIT APPROPRIATION | |
Full time employees of the Group in the PRC participate in a government-mandated defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require the Group to accrue for these benefits based on certain percentages of the employees' salaries. The total provisions for such employee benefits were $4,788,471, $3,340,484 and $2,710,481 for the years ended December 31, 2011, 2012 and 2013, respectively. | ||
Note_22_Noncontrolling_Interes
Note 22 - Noncontrolling Interests | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Noncontrolling Interest [Abstract] | ' | ||||||||||||||||||||
Noncontrolling Interest Disclosure [Text Block] | ' | ||||||||||||||||||||
22 | NONCONTROLLING INTERESTS | ||||||||||||||||||||
Precious | Investment | Institutional | iSTAR Financial | Total | |||||||||||||||||
metal trading | advisory | Subscription | holdings brokerage | ||||||||||||||||||
services | services | Services | services | ||||||||||||||||||
Balance as of January 1, 2011 | $ | - | $ | - | $ | - | $ | (56,802 | ) | $ | (56,802 | ) | |||||||||
Share-based compensation (Note 17) | - | - | - | 88,940 | 88,940 | ||||||||||||||||
Net loss | - | - | - | (137,046 | ) | (137,046 | ) | ||||||||||||||
Balance as of December 31, 2011 | - | - | - | (104,908 | ) | (104,908 | ) | ||||||||||||||
Acquisition of CFO East Win (Note3) | - | 871,960 | - | - | 871,960 | ||||||||||||||||
Share-based compensation (Note 15) | - | - | - | 89,256 | 89,256 | ||||||||||||||||
Net loss | - | (183,898 | ) | - | 78,958 | (104,940 | ) | ||||||||||||||
Balance as of December 31, 2012 | - | 688,062 | - | 63,306 | 751,368 | ||||||||||||||||
Acquisition of CFO Tahoe (Note3) | 9,508,295 | - | 9,508,295 | ||||||||||||||||||
Acquisition of Champion Connection (Note3) | 1,760,861 | 938,112 | - | 2,698,973 | |||||||||||||||||
Acquisition of Nontrolling interests of CFO East Win | - | 586,954 | - | - | 586,954 | ||||||||||||||||
Changes in ownership of subsidiaries | 289,656 | (1,068,471 | ) | - | (778,815 | ) | |||||||||||||||
Capital injection from noncontrolling interests | 1,405,963 | - | - | - | 1,405,963 | ||||||||||||||||
Share-based compensation (Note 15) | - | - | - | 74,376 | 74,376 | ||||||||||||||||
Net income (loss) | 1,056,322 | (419,202 | ) | (64,585 | ) | (173,297 | ) | 399,238 | |||||||||||||
Balance as of December 31, 2013 | $ | 11,970,580 | $ | 2,906,331 | $ | (194,944 | ) | $ | (35,615 | ) | $ | 14,646,352 | |||||||||
Note_23_Commitments_and_Contin
Note 23 - Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Commitments and Contingencies Disclosure [Text Block] | ' | ||||
23 | COMMITMENTS AND CONTINGENCIES | ||||
The Group leases certain office premises and purchases data under non-cancelable leases. Rent expenses under operating leases for 2011, 2012 and 2013 were $3,286,547, $3,941,137 and $4,808,894, respectively. | |||||
Future minimum payments under non-cancelable operating leases and data purchase agreements were as follows: | |||||
Year ending | |||||
2014 | $ | 8,194,130 | |||
2015 | 4,814,136 | ||||
2016 | 1,753,364 | ||||
Total | $ | 14,761,630 | |||
Note_24_Segment_and_Geographic
Note 24 - Segment and Geographic Information | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Reporting Disclosure [Text Block] | ' | ||||||||||||||||
24 | SEGMENT AND GEOGRAPHIC INFORMATION | ||||||||||||||||
The Group has three operating segments (1) precious metals trading services, (2) online financial information and advisory service, and other related services in PRC, (3) Hong Kong brokerage services. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision-makers in deciding how to allocate resources and in assessing performance. The Group's chief executive officer has been identified as the chief operating decision makers. The Group's chief operating decision maker directs the allocation of resources to operating segments based on the profitability and cash flows of each respective segment. | |||||||||||||||||
The Group evaluates performance based on several factors, including net revenue, cost of revenue, operating expenses, income from operation. The following tables show the operations of the Group's operating segments: | |||||||||||||||||
For the year ended December 31, 2013 | |||||||||||||||||
Precious metal | Subscription services and other related services | Brokerage services | Consolidated | ||||||||||||||
trading services | in Hong Kong | ||||||||||||||||
Net revenues | $ | 30,124,245 | $ | 21,656,482 | $ | 3,404,767 | $ | 55,185,494 | |||||||||
Less: intersegment sales | - | (2,447,417 | ) | - | (2,447,417 | ) | |||||||||||
Net revenues from external customer | 30,124,245 | 19,209,065 | 3,404,767 | 52,738,077 | |||||||||||||
Cost of revenues | 2,613,287 | 7,018,379 | 938,404 | 10,570,070 | |||||||||||||
Operating expenses: | |||||||||||||||||
General and administrative | 1,087,048 | 10,831,336 | 3,291,718 | 15,210,102 | |||||||||||||
Product development | 784,083 | 8,248,244 | - | 9,032,327 | |||||||||||||
Sales and marketing | 22,015,190 | 10,429,389 | 591,074 | 33,035,653 | |||||||||||||
Total segments operating expenses | 23,886,321 | 29,508,969 | 3,882,792 | 57,278,082 | |||||||||||||
Less: intersegment operating expenses | (2,447,417 | ) | - | - | (2,447,417 | ) | |||||||||||
Total operating expenses | 21,438,904 | 29,508,969 | 3,882,792 | 54,830,665 | |||||||||||||
Government subsidies | - | 11,187 | - | 11,187 | |||||||||||||
Income (loss) from operations | $ | 6,072,054 | $ | (17,307,096 | ) | $ | (1,416,429 | ) | $ | (12,651,471 | ) | ||||||
Total segments assets | 27,791,654 | 80,844,211 | 31,893,233 | 140,529,098 | |||||||||||||
Less: intersegment balances | - | (7,036,363 | ) | - | (7,036,363 | ) | |||||||||||
Total assets | $ | 27,791,654 | $ | 73,807,848 | $ | 31,893,233 | $ | 133,492,735 | |||||||||
For the year ended December 31, 2012 | |||||||||||||||||
Subscription | Brokerage services | Consolidated | |||||||||||||||
services and other | in Hong Kong | ||||||||||||||||
related services | |||||||||||||||||
Net revenues | $ | 25,781,724 | $ | 3,817,762 | $ | 29,599,486 | |||||||||||
Cost of revenues | 7,297,061 | 792,333 | 8,089,394 | ||||||||||||||
Operating expenses: | |||||||||||||||||
General and administrative | 8,515,833 | 2,871,548 | 11,387,381 | ||||||||||||||
Product development | 10,735,570 | - | 10,735,570 | ||||||||||||||
Sales and marketing | 12,500,788 | 571,229 | 13,072,017 | ||||||||||||||
Total operating expenses | 31,752,191 | 3,442,777 | 35,194,968 | ||||||||||||||
Government subsidies | 75,883 | - | 75,883 | ||||||||||||||
Loss from operations | $ | (13,191,645 | ) | $ | (417,348 | ) | $ | (13,608,993 | ) | ||||||||
Total assets | $ | 72,474,437 | $ | 48,896,558 | $ | 121,370,995 | |||||||||||
For the year ended December 31, 2011 | |||||||||||||||||
Subscription | Brokerage services | Consolidated | |||||||||||||||
services and other | in Hong Kong | ||||||||||||||||
related services | |||||||||||||||||
Net revenues | $ | 49,468,401 | $ | 3,539,664 | $ | 53,008,065 | |||||||||||
Cost of revenues | 8,462,096 | 308,521 | 8,770,617 | ||||||||||||||
Operating expenses: | |||||||||||||||||
General and administrative | 8,319,593 | 2,908,039 | 11,227,632 | ||||||||||||||
Product development | 13,313,635 | - | 13,313,635 | ||||||||||||||
Sales and marketing | 20,714,263 | 623,536 | 21,337,799 | ||||||||||||||
Loss from impairment of intangible assets | 3,949,420 | 128,664 | 4,078,084 | ||||||||||||||
Loss from impairment of goodwill | 12,195,398 | 1,267,826 | 13,463,224 | ||||||||||||||
Total operating expenses | 58,492,309 | 4,928,065 | 63,420,374 | ||||||||||||||
Government subsidies | 265,016 | - | 265,016 | ||||||||||||||
Loss from operations | $ | (17,220,988 | ) | $ | (1,696,922 | ) | $ | (18,917,910 | ) | ||||||||
Total assets | $ | 106,811,438 | $ | 53,165,245 | $ | 159,976,683 | |||||||||||
Enterprise wide disclose | |||||||||||||||||
The Group derives revenue from external customers for each of the following services during the years presented: | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2011 | 2012 | 2013 | |||||||||||||||
Precious metals trading services revenues | $ | - | $ | - | $ | 30,124,245 | |||||||||||
Financial information and advisory services revenues | 43,100,486 | 20,826,995 | 11,122,400 | ||||||||||||||
Advertising revenue | 6,243,748 | 4,848,622 | 6,799,109 | ||||||||||||||
Hong Kong brokerage services revenues | 3,539,664 | 3,817,762 | 3,404,767 | ||||||||||||||
Others | 124,167 | 106,107 | 1,287,556 | ||||||||||||||
Total revenue from external customers | $ | 53,008,065 | $ | 29,599,486 | $ | 52,738,077 | |||||||||||
Substantially all of the Company's revenues for the years ended December 31, 2011, 2012 and 2013 were generated from the PRC and Hong Kong. | |||||||||||||||||
As of December 31, 2011, 2012 and 2013, respectively, substantially all of long-lived assets of the Group are located in the PRC and Hong Kong. | |||||||||||||||||
Note_25_Statutory_Reserves_and
Note 25 - Statutory Reserves and Restricted Net Assets | 12 Months Ended | |
Dec. 31, 2013 | ||
Statutory Reserves And Restricted Net Assets Disclosure [Abstract] | ' | |
Statutory Reserves And Restricted Net Assets Disclosure [Text Block] | ' | |
25 | STATUTORY RESERVES AND RESTRICTED NET ASSETS | |
PRC legal restrictions permit payments of dividends by the Group's PRC entities only out of their retained earnings, if any, determined in accordance with PRC regulations. Prior to payment of dividends, pursuant to the laws applicable to the PRC Domestic Enterprises and PRC Foreign Investment Enterprises, the PRC entities must make appropriations from after-tax profit to non-distributable statutory reserve funds as determined by the Board of Directors of the Group. These reserve funds include the (1) general reserve, (2) enterprise expansion fund and (3) staff bonus and welfare fund. Subject to certain cumulative limits, the general reserve fund requires annual appropriations of not less than 10% of after-tax profit (as determined under accounting principles and financial regulations applicable to PRC enterprises at each year-end); the other two funds are to be made at the discretion of the board of directors of each of the Group's subsidiaries. | ||
These reserve funds can only be used for specific purposes and are not distributable as cash dividends. | ||
The appropriation to these reserves by the Group's PRC subsidiaries was $118,265, $30,658 and $284,114 in 2011, 2012 and 2013. | ||
The balance of the statutory reserves was $5,856,400 and $6,140,514 as of December 31 2012 and 2013. Such reserves have been included in the retained earnings of the Company's consolidated balance sheet. | ||
As a result of these PRC laws and regulations and the requirement that distributions by PRC entities can only be paid out of distributable profits computed in accordance with PRC GAAP, the PRC entities are restricted from transferring a portion of their net assets to the Group. Amounts restricted include paid-in capital and the statutory reserves of the Company's PRC subsidiaries and VIEs. As of December 31, 2013, the aggregate amounts restricted which represented the amount of net assets of the relevant subsidiaries and VIEs in the Group not available for distribution was $90,417,250. As a result of the above restrictions, parent-only financials are presented on financial statement Schedule I. | ||
Note_26_Subsequent_Event
Note 26 - Subsequent Event | 12 Months Ended | ||
Dec. 31, 2013 | |||
Subsequent Events [Abstract] | ' | ||
Subsequent Events [Text Block] | ' | ||
26 | SUBSEQUENT EVENT | ||
i) | On January 2, 2014, the Company granted restricted shares of an aggregate 1,100,240 ordinary shares to selected employees and executives. | ||
ii) | On March 25, 2014, the Company extended the payment date of the consideration receivable and the maturity date of the loan made to the Langfang Developer to September 20, 2014. On April 14, 2014, the Langfang Developer’s 100% shares equity were pledged to the Company. | ||
Schedule_I_Financial_Informati
Schedule I - Financial Information of Parent Company | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | ' | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2012 | 2013 | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 2,941,180 | $ | 721,271 | |||||||||||||||||||||
Amounts due from subsidiaries, VIEs and VIE’s subsidiaries | 3,309,214 | 6,807,051 | |||||||||||||||||||||||
Prepaid expenses and other current assets | 104,116 | 167,562 | |||||||||||||||||||||||
Dividends receivable | 19,463,347 | 18,917,296 | |||||||||||||||||||||||
Total current assets | 25,817,857 | 26,613,180 | |||||||||||||||||||||||
Investments in subsidiaries, VIEs and VIE’s subsidiaries | 63,446,732 | 60,283,341 | |||||||||||||||||||||||
Rental deposits | 66,622 | 66,893 | |||||||||||||||||||||||
Total assets | $ | 89,331,211 | $ | 86,963,414 | |||||||||||||||||||||
Liabilities and shareholders' equity | |||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||
Accrued expenses and other current liabilities | 251,649 | 286,041 | |||||||||||||||||||||||
Amounts due to subsidiaries, VIEs and VIE’s subsidiaries | 9,114,380 | 10,906,476 | |||||||||||||||||||||||
Total current liabilities | $ | 9,366,029 | $ | 11,192,517 | |||||||||||||||||||||
Shareholders' equity | |||||||||||||||||||||||||
Ordinary shares ($0.00013 par value; 500,000,000 shares authorized; 110,955,383 and 111,145,633 shares issued and outstanding as of December 31, 2012 and 2013, respectively) | 14,328 | 14,353 | |||||||||||||||||||||||
Additional paid-in capital | 81,163,243 | 84,346,266 | |||||||||||||||||||||||
Accumulated other comprehensive income | 11,089,820 | 12,285,615 | |||||||||||||||||||||||
Retained deficits | (12,302,209 | ) | (20,875,337 | ) | |||||||||||||||||||||
Total shareholders' equity | 79,965,182 | 75,770,897 | |||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 89,331,211 | $ | 86,963,414 | |||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2011 | 2012 | 2013 | |||||||||||||||||||||||
Cost of revenues | $ | 43,976 | $ | 4,245 | $ | 2,584 | |||||||||||||||||||
Gross loss | (43,976 | ) | (4,245 | ) | (2,584 | ) | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||
General and administrative | 1,428,893 | 1,445,591 | 1,417,843 | ||||||||||||||||||||||
Product development | 75,482 | 68,961 | 62,914 | ||||||||||||||||||||||
Sales and marketing | - | 43,018 | 160,112 | ||||||||||||||||||||||
Stock-based compensation | 945,868 | 207,677 | 2,539,274 | ||||||||||||||||||||||
Loss from impairment of goodwill | 50,534 | - | - | ||||||||||||||||||||||
Total operating expenses | 2,500,777 | 1,765,247 | 4,180,143 | ||||||||||||||||||||||
Interest income | 1,402 | 2,180 | 605 | ||||||||||||||||||||||
Equity in deficits of subsidiaries, VIEs and VIE’s subsidiaries | (16,643,739 | ) | (9,674,955 | ) | (4,985,519 | ) | |||||||||||||||||||
Exchange gain, net | 1,339,752 | (413,004 | ) | 594,513 | |||||||||||||||||||||
Other income | - | 64 | - | ||||||||||||||||||||||
Loss from impairment of cost method investment | (1,479,571 | ) | - | - | |||||||||||||||||||||
Net loss | $ | (19,326,909 | ) | $ | (11,855,207 | ) | $ | (8,573,128 | ) | ||||||||||||||||
Other comprehensive income, net of tax: | |||||||||||||||||||||||||
Changes in foreign currency translation adjustment | 2,928,723 | 130,115 | 1,195,795 | ||||||||||||||||||||||
Net unrealized loss on available-for-sale securities, net of tax effects of ($5,728), $5,728 and nil for 2011, 2012 and 2013, respectively | (32,457 | ) | (13,110 | ) | - | ||||||||||||||||||||
Reclassification adjustment of available-for-sale securities, net of tax effects of nil, nil and nil for 2011, 2012 and 2013, respectively | - | 45,567 | - | ||||||||||||||||||||||
Other comprehensive income, net of tax | 2,896,266 | 162,572 | 1,195,795 | ||||||||||||||||||||||
Comprehensive loss | $ | (16,430,643 | ) | $ | (11,692,635 | ) | $ | (7,377,333 | ) | ||||||||||||||||
Ordinary shares | Additional paid-in | Accumulated other | Retained | Total | |||||||||||||||||||||
comprehensive | earnings | shareholders' | |||||||||||||||||||||||
Shares | Amount | capital | income (loss) | (deficits) | equity | ||||||||||||||||||||
Balance as of January 1, 2011 | 110,887,883 | $ | 14,319 | $ | 78,974,697 | $ | 8,030,982 | $ | 18,879,907 | $ | 105,899,905 | ||||||||||||||
Exercise of share options by employees | 47,500 | 6 | 22,019 | - | - | 22,025 | |||||||||||||||||||
Share-based compensation | - | - | 945,868 | - | - | 945,868 | |||||||||||||||||||
Equity pick up from compensation of a subsidiary | - | - | 503,994 | - | - | 503,994 | |||||||||||||||||||
Net unrealized losses on available-for-sale securities, net of tax effects of $(5,728) | - | - | - | (32,457 | ) | - | (32,457 | ) | |||||||||||||||||
Foreign currency translation adjustment | - | - | - | 2,928,723 | - | 2,928,723 | |||||||||||||||||||
Net loss | - | - | - | - | (19,326,909 | ) | (19,326,909 | ) | |||||||||||||||||
Balance as of December 31, 2011 | 110,935,383 | 14,325 | 80,446,578 | 10,927,248 | (447,002 | ) | 90,941,149 | ||||||||||||||||||
Exercise of share options by employees | 20,000 | 3 | 3,197 | - | - | 3,200 | |||||||||||||||||||
Share-based compensation | - | - | 207,677 | - | - | 207,677 | |||||||||||||||||||
Equity pick up from compensation of a subsidiary | - | - | 505,791 | - | - | 505,792 | |||||||||||||||||||
Net unrealized loss on available-for-sale securities, net of tax effects of $5,728 | - | - | - | (13,110 | ) | - | (13,110 | ) | |||||||||||||||||
Reclassification adjustment of available-for sale securities, net of tax effects of nil | - | - | - | 45,567 | - | 45,567 | |||||||||||||||||||
Foreign currency translation adjustment | - | - | - | 130,115 | - | 130,115 | |||||||||||||||||||
Net loss | - | - | - | - | (11,855,207 | ) | (11,855,207 | ) | |||||||||||||||||
Balance as of December 31, 2012 | 110,955,383 | 14,328 | 81,163,243 | 11,089,820 | (12,302,209 | ) | 79,965,182 | ||||||||||||||||||
Exercise of share options by employees | 190,250 | 25 | 30,415 | - | - | 30,440 | |||||||||||||||||||
Share-based compensation | - | - | 2,539,274 | - | - | 2,539,274 | |||||||||||||||||||
Equity pick up from compensation of a subsidiary | - | - | 421,473 | - | - | 421,473 | |||||||||||||||||||
Acquisition of business combination | - | - | 191,861 | - | - | 191,861 | |||||||||||||||||||
Foreign currency translation adjustment | - | - | - | 1,195,795 | - | 1,195,795 | |||||||||||||||||||
Net loss | - | - | - | - | (8,573,128 | ) | (8,573,128 | ) | |||||||||||||||||
Balance as of December 31, 2013 | 111,145,633 | $ | 14,353 | $ | 84,346,266 | $ | 12,285,615 | $ | (20,875,337 | ) | $ | 75,770,897 | |||||||||||||
December 31, | |||||||||||||||||||||||||
2011 | 2012 | 2013 | |||||||||||||||||||||||
Operating activities: | |||||||||||||||||||||||||
Net loss | $ | (19,326,909 | ) | $ | (11,855,207 | ) | $ | (8,573,128 | ) | ||||||||||||||||
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||||||||||||||||||||||||
Stock-based compensation | 945,868 | 207,677 | 2,539,274 | ||||||||||||||||||||||
Loss from impairment of cost method investment | 1,479,571 | - | - | ||||||||||||||||||||||
Loss from impairment of goodwill | 50,534 | - | - | ||||||||||||||||||||||
Equity in earnings of subsidiaries, VIEs and VIE’s subsidiaries | 16,643,739 | 9,674,955 | 4,985,519 | ||||||||||||||||||||||
Changes in assets and liabilities: | |||||||||||||||||||||||||
Prepaid expenses and other current assets | (31,865 | ) | 26,907 | (63,446 | ) | ||||||||||||||||||||
Amounts due from subsidiaries, VIEs and VIE’s subsidiaries | (902,476 | ) | 317,359 | (4,092,500 | ) | ||||||||||||||||||||
Rental deposits | - | (66,622 | ) | (271 | ) | ||||||||||||||||||||
Accrued expenses and other current liabilities | (52,029 | ) | (10,225 | ) | 34,392 | ||||||||||||||||||||
Amounts due to subsidiaries, VIEs and VIE’s subsidiaries | 307,870 | 8,095,649 | 1,779,098 | ||||||||||||||||||||||
Net cash (used in) provided by operating activities | (885,697 | ) | 6,390,493 | (3,391,062 | ) | ||||||||||||||||||||
Investing activities: | |||||||||||||||||||||||||
Dividend receivable | 759,301 | 4,171,269 | 1,140,713 | ||||||||||||||||||||||
Capital injection to subsidiaries | - | (10,327,422 | ) | ||||||||||||||||||||||
Net cash provided by (used in) investing activities | 759,301 | (6,156,153 | ) | 1,140,713 | |||||||||||||||||||||
Financing activities: | |||||||||||||||||||||||||
Proceeds from stock options exercised by employees | 22,025 | 3,200 | 30,440 | ||||||||||||||||||||||
Net cash provided by financing activities | 22,025 | 3,200 | 30,440 | ||||||||||||||||||||||
Effect of exchange rate changes | - | 1 | - | ||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | (104,371 | ) | 237,541 | (2,219,909 | ) | ||||||||||||||||||||
Cash and cash equivalents, beginning of year | 2,808,010 | 2,703,639 | 2,941,180 | ||||||||||||||||||||||
Cash and cash equivalents, end of year | $ | 2,703,639 | $ | 2,941,180 | $ | 721,271 | |||||||||||||||||||
Note: | |||||||||||||||||||||||||
Basis for preparation | |||||||||||||||||||||||||
The parent-company Financial Information of China Finance Online has been prepared using the same accounting policies as set out in the Group's consolidated financial statements except that China Finance Online has used equity method to account for its investments in its subsidiaries and variable interest entities. | |||||||||||||||||||||||||
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Business Description and Basis of Presentation [Text Block] | ' | ||||||||||||||||
Basis of presentation | |||||||||||||||||
The consolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). | |||||||||||||||||
Consolidation, Policy [Policy Text Block] | ' | ||||||||||||||||
Basis of consolidation | |||||||||||||||||
The consolidated financial statements include the financial statements of China Finance Online, its subsidiaries, VIEs for which the Company is the primary beneficiary and those VIEs' subsidiaries. All inter-company transactions and balances have been eliminated upon consolidation. | |||||||||||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | ' | ||||||||||||||||
Cash and cash equivalents | |||||||||||||||||
Cash and cash equivalents consist of cash on hand and highly liquid investments which are unrestricted as to withdrawal or use, and which have original maturities of three months or less when purchased. | |||||||||||||||||
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | ' | ||||||||||||||||
Restricted cash | |||||||||||||||||
Restricted cash consist of i) the security deposit for the credit standby letter issued by a bank to provide guarantee for the short-term loan borrowed by Hong Kong Genius Information Technology Co. Limited (renamed to "Mann Ka Development (H.K.) Limited" in August 2013); ii) the deposit in bank accounts for providing guarantee to subscription revenue customers by CFO Securities Consulting in accordance with the requirement of China Securities Regulatory Commission ("CSRC"). The restriction period is one year. | |||||||||||||||||
Fair Value Measurement, Policy [Policy Text Block] | ' | ||||||||||||||||
Fair value | |||||||||||||||||
Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. | |||||||||||||||||
Authoritative literature provides a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows: | |||||||||||||||||
Level 1-inputs are based upon unadjusted quoted prices for identical instruments traded in active markets. | |||||||||||||||||
Level 2-inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||||||||||||||||
Level 3-inputs are generally unobservable and typically reflect management's estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques. | |||||||||||||||||
The Group measures certain assets, including the long-term investments and intangible assets, at fair value on a nonrecurring basis when they are deemed to be impaired. The fair values of these investments and intangible assets are determined based on valuation techniques using the best information available, and may include management judgments, future performance projections, etc. | |||||||||||||||||
Trust Bank Balances Held On Behalf Of Customers [Policy Text Block] | ' | ||||||||||||||||
Trust bank balances held on behalf of customers | |||||||||||||||||
Trust bank balances held on behalf of customers consist two parts: i) iSTAR Securities and iSTAR Futures receive fund from customers for purpose of buying or selling securities and futures on behalf of its customers and deposits the fund in its interest-bearing bank account; ii) The funds received by CFO Newrand from customers who purchase mutual funds and other wealth management products which are deposited in a trust bank account. The Group launched "Yinglibao", an internet-based financial platform that integrates cash management solutions and mutual fund distribution. Such bank balance represents an asset of the Group for the amounts due to customers for the trust bank balance held on their behalf and payable to customers on demand. The Group also recognizes a corresponding liability. | |||||||||||||||||
Advances To Employees [Policy Text Block] | ' | ||||||||||||||||
Advances to employees | |||||||||||||||||
The Group has made advances to a certain individual to enable him to participate in stock trading in the Stock Exchange Campaign which was launched by the Group for marketing purposes. The balances represent $1,056,423 as of December 31, 2012, which were repaid to the Group on demand in February 2013. | |||||||||||||||||
Use of Estimates, Policy [Policy Text Block] | ' | ||||||||||||||||
Use of estimates | |||||||||||||||||
The preparation of 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 revenue and expenses in the financial statements and accompanying notes. Significant accounting estimates reflected in the Group's financial statements include account receivable, cost method investment, impairment of goodwill and long-lived assets, income taxes, sales refund, share-based compensation and purchase price allocation. Actual results could differ from those estimates. | |||||||||||||||||
Finance, Loans and Leases Receivable, Policy [Policy Text Block] | ' | ||||||||||||||||
Loan receivable | |||||||||||||||||
Loans are reported at either their outstanding principal balances. For loans reported at their outstanding principal balances, interest income is accrued on the unpaid principal balance. A loan is considered impaired when, based on current events and the financial condition of the borrower, it is probable that the company will be unable to collect all principal and interest due according to the contractual terms of the loan agreement. Loan collectability is monitored by the Group in connection with the ongoing monitoring of the associated financial guarantee transactions. | |||||||||||||||||
Marketable Securities, Policy [Policy Text Block] | ' | ||||||||||||||||
Short-term investments | |||||||||||||||||
Short-term investments comprise marketable debt and equity securities, which are classified as trading, held-to-maturity or available-for-sale. Trading securities are securities that are bought and held principally for the purpose of selling them in the near term and are reported at fair value, with unrealized gains and losses recognized in earnings. Short-term investments are classified as held-to-maturity when the Company has the positive intent and ability to hold the securities to maturity. All of the Company's held-to-maturity securities are classified as short-term investments on the consolidated balance sheets based on their contractual maturity dates which are less than one year and are stated at their amortized costs. Short-term investments classified as available for sale are carried at their fair values and the unrealized gains or losses from the changes in fair values are included in accumulated other comprehensive income. Available for sale securities are classified as current assets on the accompanying consolidated balance sheets because they are available for immediate sale. | |||||||||||||||||
The Group reviews its short-term investments for other-than-temporary impairment based on the specific identification method. The Company considers available quantitative and qualitative evidence in evaluating potential impairment of its short-term investments. If the cost of an investment exceeds the investment's fair value, the Group considers, among other factors, general market conditions, government economic plans, the duration and the extent to which the fair value of the investment is less than the cost, and the Group's intent and ability to hold the investment, in determining if impairment is needed. | |||||||||||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | ' | ||||||||||||||||
Property and equipment, net | |||||||||||||||||
Property and equipment, net are carried at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the following estimated useful lives: | |||||||||||||||||
Technology infrastructure (years) | 5 | ||||||||||||||||
Computer equipment (years) | 5 | ||||||||||||||||
Furniture, fixtures and equipment (years) | 5 | ||||||||||||||||
Motor vehicle (years) | 5 | ||||||||||||||||
Leasehold improvements | Shorter of the lease term or 5 years | ||||||||||||||||
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | ' | ||||||||||||||||
Acquired intangible assets, net | |||||||||||||||||
Acquired intangible assets are estimated by management based on the fair value of assets acquired. Identifiable intangible assets are carried at cost less accumulated amortization. Amortization of definite-lived intangible assets is computed using the straight-line method over the estimated average useful lives, which are as follows: | |||||||||||||||||
License and related trademarks (years) | 15 | ||||||||||||||||
Completed technology (years) | 5 | ||||||||||||||||
Customer relationship (years) | 4 | - | 5 | ||||||||||||||
Value-added service license (years) | 3 | - | 4 | ||||||||||||||
Agreement with mobile operators (years) | 3 | ||||||||||||||||
Intellectual property (years) | 10 | ||||||||||||||||
Certain trademarks resulting from the acquisitions of business and certain trading rights bought by the Company are determined to have indefinite lives. If an intangible asset is determined to have an indefinite life, it is not amortized until its useful life is determined to be no longer indefinite. | |||||||||||||||||
Guarantee Fund Deposits [Policy Text Block] | ' | ||||||||||||||||
Guarantee fund deposits | |||||||||||||||||
Guarantee fund deposits consist of i) the funds deposited with Hong Kong Exchange and Clearing Limited by iSTAR Futures, to guarantee its customers' settlement obligations; ii) the funds deposited with the precious metals exchanges as a result of its customers' trading. The Group needs to deposit certain percentage of its customers' trading margins with the exchanges. | |||||||||||||||||
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | ' | ||||||||||||||||
Impairment of long-lived assets with definite lives | |||||||||||||||||
The Group reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. When these events occur, the Group compares the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Group would recognize an impairment loss based on the fair value of the assets. There were $3,035,265, nil and nil impairment losses in relation to the long-lived assets with definite lives for the years ended December 31, 2011, 2012 and 2013. | |||||||||||||||||
Business Combinations Policy [Policy Text Block] | ' | ||||||||||||||||
Business combinations | |||||||||||||||||
Business combinations are recorded using the acquisition method of accounting. The assets acquired, the liabilities assumed, and any noncontrolling interest of the acquiree at the acquisition date, if any, are measured at their fair values as of that date. Goodwill is recognized and measured as the excess of the total consideration transferred plus the fair value of any noncontrolling interest of the acquiree, if any, at the acquisition date over the fair values of the identifiable net assets acquired. Common forms of the consideration made in acquisitions include cash and common equity instruments. Consideration transferred in a business acquisition is measured at the fair value as at the date of acquisition. | |||||||||||||||||
Where the consideration in an acquisition includes contingent consideration the payment of which depends on the achievement of certain specified conditions post-acquisition, the contingent consideration is recognized and measured at its fair value at the acquisition date and if recorded as a liability it is subsequently carried at fair value with changes in fair value reflected in earnings. | |||||||||||||||||
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | ' | ||||||||||||||||
Impairment of goodwill and indefinite-lived intangible assets | |||||||||||||||||
The Group performs a qualitative analysis that includes reviewing the carrying value of intangible assets not subject to amortization, including goodwill, to determine whether impairment may exist, whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable at least annually. | |||||||||||||||||
The excess of the purchase price over the fair value of net assets acquired is recorded on the consolidated balance sheet as goodwill. After a qualitative analysis indicates an impairment test is needed, the Company completes a two-step goodwill impairment test. The first step is to compare the fair values of each reporting unit to its carrying amount, including goodwill. If the fair value of each reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step is to compare the implied fair value of goodwill to the carrying value of a reporting unit's goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. An impairment loss is recognized for any excess in the carrying value of goodwill over the implied fair value of goodwill. Estimating fair value is performed by utilizing various valuation techniques, with the primary technique being a discounted cash flow. | |||||||||||||||||
The impairment test for other intangible assets not subject to amortization consists of a comparison of the fair value of the intangible asset with its carrying value. If the carrying value of the intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. The estimates of fair values of intangible assets not subject to amortization are determined using various discounted cash flow valuation methodologies. Significant assumptions are inherent in this process, including estimates of discount rates. Discount rate assumptions are based on an assessment of the risk inherent in the respective intangible assets. | |||||||||||||||||
The Group performs the annual impairment tests on December 31 of each year. Based on the Group's assessment, the Group recorded $13,463,224, nil and nil goodwill impairment losses during the years ended December 31, 2011, 2012 and 2013, respectively. In addition, the Group recorded $1,042,819, nil and nil impairment losses in relation to intangible assets with indefinite life during the years ended December 31, 2011, 2012 and 2013, respectively. | |||||||||||||||||
Derivatives, Policy [Policy Text Block] | ' | ||||||||||||||||
Financial Instruments and Derivatives | |||||||||||||||||
Financial instruments owned and sold, not yet purchased, at fair value consist of financial instruments carried at fair value or amounts that approximate fair value, with related unrealized changes in gains or losses recognized in earnings, except for securities classified as available-for-sale. The fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. | |||||||||||||||||
The Group utilizes derivative instruments to manage exposures to commodity price risks for the Group and its customers in its precious metals business. The Group’s objectives for holding derivatives include reducing, eliminating, and efficiently managing the economic impact of these exposures as effectively as possible. Derivative instruments are recognized as either assets or liabilities and are measured at fair value. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation. For a derivative instrument designated as a cash flow hedge, the effective portion of the derivative’s gain or loss is initially recorded in OCI, net of tax, and is subsequently recognized in earnings when the hedged exposure affects earnings. The ineffective portion of the gain or loss is recognized in earnings. Gains and losses from changes in fair values of derivatives that are not designated as cash flow hedges for accounting purposes are recognized in earnings. The Group has no derivatives as of December 31, 2013. | |||||||||||||||||
The Group’s derivative contracts consist of commodity based derivatives. Fair values of exchange-traded derivatives are generally determined from quoted market prices. Where possible, the Group verifies the values produced by pricing models by comparing them to market transactions. Inputs may involve judgment where market prices are not readily available. The Group does not elect hedge accounting under the Derivatives and Hedging Topic of the ASC in accounting for derivatives used as economic hedges on its commodities. | |||||||||||||||||
The Group may also hold proprietary positions in its precious metals line of business. On a limited basis, the Group’s precious metals trade desk will accept a customer transaction and could offset that transaction with a similar but not identical position with counterparty. These unmatched transactions are intended to be short-term in nature and are often conducted to facilitate the most effective transaction for the Group's customer. These spot contracts are accounted for as free-standing derivatives and reported in the consolidated balance sheets at their fair values. The Group does not seek hedge accounting treatment for these derivatives, and accordingly, the changes in fair value during the period are recorded in the consolidated statements of comprehensive income. | |||||||||||||||||
Revenue Recognition, Policy [Policy Text Block] | ' | ||||||||||||||||
Revenue recognition | |||||||||||||||||
Precious metals trading | |||||||||||||||||
In 2013, The Group newly launched precious metal trading business and derives commission income, carrying charges and trading revenues from its precious metals trading services. | |||||||||||||||||
Commission income is recognized on a trade basis based on their customers' trading volumes. The commission earned is fixed no matter how the client’s open positions are ultimately settled. Additionally, the Group charges carrying charges to its customers. The commissions and carrying charges are presented in net revenues in the statement of comprehensive income. | |||||||||||||||||
Amounts are settled with the Exchange by both the Group and the customers and the exchange then settles with any counterparty. The exchange offsets the Group’s gains and losses and amounts receivable and amounts payable from the exchange are presented net on the statement of financial position as the Group and the exchange settle net. | |||||||||||||||||
Trading gains, net include brokerage fees and margins generated from derivative trades executed with customers and other counterparties and are recognized when trades are executed. Trading gains, net also include activities where the Group acts as principal in the purchase and sale of commodities derivative instruments with customers. Trading gains, net also include activities where the Group acts as principal in the purchase and sale of individual securities, currencies, commodities or derivative instruments with customers. These transactions may be offset simultaneously with another customer or counterparty, offset with similar but not identical positions on an exchange, made from inventory, or may be aggregated with other purchases to provide liquidity intraday, for a number of days, or in some cases, particularly the precious metals business, even longer periods (during which fair value may fluctuate). Therefore, trading gains, net includes activities from the Group's operations of a proprietary commodity trades (see additional discussion in the Financial Instruments and Derivatives policy note for revenue recognition on proprietary trading activities). Net dealer investment gains are recognized on a trade-date basis and include realized gains or losses and changes in unrealized gains or losses on investments at fair value. | |||||||||||||||||
Unrealized gains/losses on open positions will be marked to market at each period end and may present trading gains and losses which comprise both realized and unrealized gains and losses, on a net basis in the statement of comprehensive income. The open transactions may lead to receivables and/or payables for open transaction which are recorded on the Statement of Financial Position. | |||||||||||||||||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - continued | |||||||||||||||||
Revenue generally is recognized net of any taxes collected from customers and subsequently remitted to governmental authorities. During the year of 2013, the Group totally recognized revenue amount to $30,124,245 from precious metal trading business, consisted of commodity trading gain of $18,537,459, commission income of $10,953,632 and carrying charges of $633,154, respectively. | |||||||||||||||||
Hong Kong Brokerage services | |||||||||||||||||
The Group also derives commission from its brokerage services provided by the subsidiaries, iSTAR Securities and iSTAR Futures which buy or sell securities and futures on their customers' behalf. The Group acts as an agent with their customers for these transactions. The commission income is recognized on a trade date basis as transactions occur. | |||||||||||||||||
Financial information and advisory services | |||||||||||||||||
The Group derives revenue from annual subscription fees from subscribers to their financial data, information services and investment advisory. The Group recognizes revenues when all of the following criteria are met: (1) persuasive evidence of an arrangement exists, (2) delivery has occurred, (3) the fee is fixed or determinable and (4) collectability is probable. Upon receipt of the upfront cash payments from the subscriber, the Group will activate the subscriber's account and provide the subscriber the access code. This will commence a certain subscription period according to the customer demand and the full payment will be deferred and recognized ratably over the subscription period. The Group recognizes revenue ratably over the life of the arrangement. Estimated refund of subscription fees is recorded as deduction of revenue and deferred revenue. The Group estimates the refund of subscription fees based on historical experience as well as the impact of the changes in market condition and regulation, such as the Provisional Regulations on Securities Investment Advisory and Provisional Regulations on Issuance of Securities Research Reports promulgated by CSRC. | |||||||||||||||||
Advertising revenue | |||||||||||||||||
The Group derives its advertising fees from advertising sales on their website for a fixed period of time, generally less than one year. Revenues from advertising arrangements are recognized ratably over the period the advertising is displayed. | |||||||||||||||||
Business taxes and value added taxes | |||||||||||||||||
Effective January 1, 2012, the PRC Ministry of Finance and the State Administration of Taxation launched a Business Tax to value added tax ("VAT") Transformation Pilot Program(the "Pilot Program"), for certain industries in Shanghai. On September 1, 2012, the PRC Ministry of Finance and the State Administration of Taxation extended the Pilot Program to certain industries in other eight regions, including Beijing and Shenzhen. With the adoption of Pilot Program, our advertising-related revenues and certain subscription revenues were subject to VAT tax at a rate of 6%. Our advertising- related revenues, certain subscription revenues and certain precious metals trading revenues were recognized after deducting VAT and other related surcharges. | |||||||||||||||||
Revenue is recorded net of business taxes when incurred. The Group is subject to business taxes of 3%-5% on taxable services provided to its customers. During the years ended December 31, 2011, 2012, and 2013, business taxes and related surcharges totaled $1,478,653, $639,880, and $598,044, respectively. | |||||||||||||||||
The Group's certain PRC subsidiaries, VIEs and VIEs' subsidiaries are subject to VAT at a rate of 17% on subscription-based revenue. VAT payable on subscription-based revenue is computed net of VAT paid on purchases. In respect of subscription-based revenue, however, if the net amount of VAT payable exceeds 3% of subscription-based revenue, the excess portion of value added tax can be refunded immediately. | |||||||||||||||||
The Group therefore is subject to an effective net VAT burden of 3% from subscription-based revenue and records VAT on a net basis. Net amount of value added tax is recorded either in the line item of other current liabilities or prepaid expenses and other current assets on the face of consolidated balance sheet. | |||||||||||||||||
Subscription-based revenue includes the benefit of the rebate of value added taxes on sale of the downloadable software received from the Chinese tax authorities as part of the PRC government policy of encouraging software development in the PRC. In 2011, 2012 and 2013, the Group recognized $3,140,764, $1,348,564 and $639,936, respectively, in VAT refunds. | |||||||||||||||||
Government subsidies | |||||||||||||||||
The Group records government subsidies when granted by local government authority and are not subject to future return. The government subsidies include research & development subsidy, business tax refund, innovation fund and high-tech company subsidy. | |||||||||||||||||
Deferred revenue | |||||||||||||||||
Payments received in advance of for our financial information and advisory service, advertising service are recorded as deferred revenue until earned and when the relevant revenue recognition requirements have been met. | |||||||||||||||||
Business Taxes And Value Added Taxes [Policy Text Block] | ' | ||||||||||||||||
Business taxes and value added taxes | |||||||||||||||||
Effective January 1, 2012, the PRC Ministry of Finance and the State Administration of Taxation launched a Business Tax to value added tax ("VAT") Transformation Pilot Program(the "Pilot Program"), for certain industries in Shanghai. On September 1, 2012, the PRC Ministry of Finance and the State Administration of Taxation extended the Pilot Program to certain industries in other eight regions, including Beijing and Shenzhen. With the adoption of Pilot Program, our advertising-related revenues and certain subscription revenues were subject to VAT tax at a rate of 6%. Our advertising- related revenues, certain subscription revenues and certain precious metals trading revenues were recognized after deducting VAT and other related surcharges. | |||||||||||||||||
Revenue is recorded net of business taxes when incurred. The Group is subject to business taxes of 3%-5% on taxable services provided to its customers. During the years ended December 31, 2011, 2012, and 2013, business taxes and related surcharges totaled $1,478,653, $639,880, and $598,044, respectively. | |||||||||||||||||
The Group's certain PRC subsidiaries, VIEs and VIEs' subsidiaries are subject to VAT at a rate of 17% on subscription-based revenue. VAT payable on subscription-based revenue is computed net of VAT paid on purchases. In respect of subscription-based revenue, however, if the net amount of VAT payable exceeds 3% of subscription-based revenue, the excess portion of value added tax can be refunded immediately. | |||||||||||||||||
The Group therefore is subject to an effective net VAT burden of 3% from subscription-based revenue and records VAT on a net basis. Net amount of value added tax is recorded either in the line item of other current liabilities or prepaid expenses and other current assets on the face of consolidated balance sheet. | |||||||||||||||||
Subscription-based revenue includes the benefit of the rebate of value added taxes on sale of the downloadable software received from the Chinese tax authorities as part of the PRC government policy of encouraging software development in the PRC. In 2011, 2012 and 2013, the Group recognized $3,140,764, $1,348,564 and $639,936, respectively, in VAT refunds. | |||||||||||||||||
Government Subsidies [Policy Text Block] | ' | ||||||||||||||||
Government subsidies | |||||||||||||||||
The Group records government subsidies when granted by local government authority and are not subject to future return. The government subsidies include research & development subsidy, business tax refund, innovation fund and high-tech company subsidy. | |||||||||||||||||
Revenue Recognition, Deferred Revenue [Policy Text Block] | ' | ||||||||||||||||
Deferred revenue | |||||||||||||||||
Cost Method Investments, Policy [Policy Text Block] | ' | ||||||||||||||||
Cost method investment | |||||||||||||||||
For investments in an investee over which the Group does not have significant influence, the Group carries the investment at cost and recognizes income as any dividends declared from distribution of investee's earnings. The Group reviews the cost method investments for impairment whenever events or changes in circumstances indicate that the carrying value may no longer be recoverable. An impairment loss is recognized in earnings equal to the difference between the investment's cost and its fair value at the balance sheet date of the reporting period for which the assessment is made. The fair value of the investment would then become the new cost basis of the investment. | |||||||||||||||||
Equity Method Investments, Policy [Policy Text Block] | ' | ||||||||||||||||
Equity method investment | |||||||||||||||||
Under the equity method, the Company initially records its investment at cost. The Company subsequently adjusts the carrying amount of the investment to recognize the Company's proportionate share of each equity investee's net income or loss. The Company will discontinue applying equity method if an investment (and additional financial supports to the investee, if any) has been reduced to zero. When the equity-method investment in ordinary shares is reduced to zero and further investments are made that have a higher liquidation preference than ordinary shares, the Company would recognize the loss based on its percentage of the investment with the same liquidation preference, and the loss would be applied to those investments of a lower liquidation preference first before being further applied to the investments of a higher liquidation preference. An impairment loss on the equity method investments is recognized in the consolidated statements of comprehensive income when the decline in value is determined to be other than-temporary | |||||||||||||||||
Foreign Currency Transactions and Translations Policy [Policy Text Block] | 'Foreign currency translation | ||||||||||||||||
The functional and reporting currency of the Company is the United States dollar ("U.S. dollar"). The financial records of the Group's subsidiaries, VIEs and VIEs' subsidiaries located in the PRC, Hong Kong and British Virgin Islands are maintained in their local currencies, the Renminbi ("RMB"), Hong Kong Dollars ("HK$"), and U.S. Dollars ("US$"), respectively, which are also the functional currencies of these entities. | |||||||||||||||||
Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency at the rates of exchange ruling at the balance sheet date. Transactions in currencies other than the functional currency during the year are converted into functional currency at the applicable rates of exchange prevailing when the transactions occurred. Transaction gains and losses are recognized in the statements of operations. | |||||||||||||||||
The Group's entities with functional currency of RMB and HK$ translate their operating results and financial position into the US$, the Group's reporting currency. Assets and liabilities are translated using the exchange rates in effect on the balance sheet date. Revenues, expenses, gains and losses are translated using the average rate for the year. Translation adjustments are report as cumulative translation adjustments and are shown as a separate component of other comprehensive income. | |||||||||||||||||
Foregin Currency Risk [Policy Text Block] | ' | ||||||||||||||||
Foreign currency risk | |||||||||||||||||
The RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People's Bank of China, controls the conversion of Renminbi into foreign currencies. The value of the RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. Cash and cash equivalents of the Group included aggregate amounts of $52,146,828, $26,848,249 and $26,974,664 at December 31, 2011, 2012 and 2013 which were denominated in RMB. | |||||||||||||||||
Research, Development, and Computer Software, Policy [Policy Text Block] | ' | ||||||||||||||||
Product development expenses | |||||||||||||||||
Costs of product development, including investment in data capability, are expensed as incurred until technological feasibility has been established, at which time any additional costs would be capitalized. The Group essentially completed its development concurrently with the establishment of technological feasibility, and, accordingly, no costs have been capitalized. | |||||||||||||||||
Advertising Costs, Policy [Policy Text Block] | ' | ||||||||||||||||
Advertising costs | |||||||||||||||||
The Group expenses advertising costs as incurred. Total advertising expenses were $3,134,198, $753,107 and $2,391,762 for the years ended December 31, 2011, 2012 and 2013, respectively, and have been included as part of sales and marketing expenses in the accompanying consolidated statements of operations. | |||||||||||||||||
Commissions Expense, Policy [Policy Text Block] | ' | ||||||||||||||||
Commissions paid | |||||||||||||||||
Commissions paid are the commission rebates paid to the account executives of our Hong Kong brokerage business and the commissions paid to the sales agents of our precious metals trading business. Total commissions paid were $308,521, $161,035 and $3,125,982 for the years ended December 31, 2011, 2012 and 2013 | |||||||||||||||||
Income Tax, Policy [Policy Text Block] | ' | ||||||||||||||||
Income taxes | |||||||||||||||||
Current income taxes are provided for in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized for temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, net operating loss carry forwards and credits by applying enacted statutory tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. | |||||||||||||||||
The impact of an uncertain income tax position on the income tax return is recognized at the largest amount that is more-likely-than not to be sustained upon audit by the relevant tax authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Interest and penalties on income taxes will be classified as a component of the provisions for income taxes. | |||||||||||||||||
Comprehensive Income, Policy [Policy Text Block] | ' | ||||||||||||||||
Comprehensive income (loss) | |||||||||||||||||
Comprehensive income (loss) includes net income (loss), unrealized gain (loss) on short-term investments and foreign currency translation adjustments. Beginning in January 1, 2012, the Group presents the components of net income, the components of other comprehensive income and total comprehensive income a single continuous consolidated statement of comprehensive income. The consolidated financial statements have been adjusted for the retrospective application of the authoritative guidance regarding presentation of comprehensive income (loss). | |||||||||||||||||
Fair Value of Financial Instruments, Policy [Policy Text Block] | ' | ||||||||||||||||
Fair value of financial instruments | |||||||||||||||||
Financial instruments include cash and cash equivalents, restricted cash, accounts receivable, short-term investments, cost method investment, loan receivable, accounts payable and short-term loan. | |||||||||||||||||
The carrying values of cash and cash equivalents, restricted cash, accounts receivable, loan receivable, accounts payable and short-term loan approximate their fair value due to their short-term maturities. | |||||||||||||||||
The carrying value of the cost method investment was $802,202 and $1,138,899 as of December 31, 2012 and 2013, which approximate the fair value of the investment based on the valuation performed by the Company. | |||||||||||||||||
The Group does not use derivative instruments to manage risks. | |||||||||||||||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' | ||||||||||||||||
Share-based compensation | |||||||||||||||||
Share-based compensation with employees is measured based on the grant date fair value of the equity instrument. The Group recognizes the compensation costs net of an estimated forfeiture rate using the straight-line method for performance based awards or graded vesting attribution method for service based awards, over the requisite service period of the award, which is generally the vesting period of the award. The estimate of forfeitures will be adjusted over the requisite service period to the extent that actual forfeitures differ, or are expected to differ, from such estimates. Changes in estimated forfeitures will be recognized through a cumulative catch-up adjustment in the period of change and will also impact the amount of share-based compensation expense to be recognized in future periods. | |||||||||||||||||
Share awards issued to nonemployees are measured at fair value at the earlier of the commitment date or the date the services is completed and recognized over the period the service is provided or as goods is received. | |||||||||||||||||
Earnings Per Share, Policy [Policy Text Block] | ' | ||||||||||||||||
Net income (loss) per share | |||||||||||||||||
Basic net income (loss) per share attributable to China Finance Online Co. Limited is computed by dividing net income (loss) attributable to China Finance Online Co. Limited by the weighted average number of ordinary shares outstanding during the period. Diluted net income per ordinary share attributable to China Finance Online Co. Limited reflects the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised or converted into ordinary shares. The dilutive effect of the stock options and nonvested shares is computed using treasury stock method. | |||||||||||||||||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | ' | ||||||||||||||||
Concentrations of credit risk | |||||||||||||||||
Financial instruments that potentially expose the Group to concentrations of credit risk consist principally of cash and cash equivalents, restricted cash, short-term investments, loan receivable and accounts receivable. The Group places its cash and cash equivalents, restricted cash, short-term investments, loan receivable and accounts receivable in major financial institutions located in PRC and Hong Kong, which management considers to be of high credit quality. | |||||||||||||||||
The Group conducts ongoing credit evaluations of its customers and generally does not require collateral or other security from its customers except for the accounts receivable-margin clients which represents the margin loan to customers for securities purchase. The accounts receivable-margin client was collateralized by the securities the margin client purchased. The Group manages its credit risk by collecting up-front fee from its customers and billing at regular intervals during the contract period. The Group assesses the adequacy of allowance for doubtful accounts primarily based upon the age of the receivables and factors surrounding the credit risk of specific customers. | |||||||||||||||||
Details of clients accounting for 10% or more of accounts receivable are as follows: | |||||||||||||||||
Year ended December 31, | |||||||||||||||||
2012 | 2013 | ||||||||||||||||
Amount | % | Amount | % | ||||||||||||||
A | $ | 3,694,584 | 18.5 | * | * | ||||||||||||
B | $ | 2,875,230 | 14.4 | * | * | ||||||||||||
C | $ | 3,165,537 | 15.8 | * | * | ||||||||||||
D | * | * | $ | 3,885,608 | 18.2 | ||||||||||||
* Represented less than 10% of consolidated account receivable balance. | |||||||||||||||||
There were no customers with 10% or more of the Group's revenues during 2011, 2012, or 2013. | |||||||||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | ||||||||||||||||
Recently accounting pronouncements | |||||||||||||||||
In March of 2013, the FASB issued ASU 2013-05, "Foreign Currency Matters (Topic 830), Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity." The amendments clarify the applicable guidance for the release of the cumulative translation adjustment when 1) an entity ceases to have a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity; 2) there is a loss of a controlling financial interest in a foreign entity or a step acquisition involving an equity method investment that is a foreign entity; and 3) sales or transfers of a controlling financial interest within a foreign entity is the same irrespective of whether the sale or transfer is of a subsidiary or a group of assets (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) that is a nonprofit activity or business. The amendments are effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013. The amendments should be applied prospectively to derecognition events occurring after the effective date. Prior periods should not be adjusted. If an entity elects to early adopt the amendments, it should apply them as of the beginning of the entity's fiscal year of adoption. The Company does not expect ASU 2013-05 to have a significant impact on the Group's consolidated result of operations and financial condition. | |||||||||||||||||
In March of 2013, the FASB issued ASU 2013-11, "Income Taxes (Topic 740) Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists". The amendment clarifies that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. The amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. The Company does not expect ASU 2013-11 to have a significant impact on the Group's consolidated result of operations and financial condition. |
Note_1_Organization_and_Princi1
Note 1 - Organization and Principal Activities (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Note 1 - Organization and Principal Activities (Tables) [Line Items] | ' | ||||||||||||
Schedule of Variable Interest Entities [Table Text Block] | ' | ||||||||||||
Company name | Place of | Date of | legal | Principal | |||||||||
incorporation or | incorporation or | ownership | activity | ||||||||||
establishment | acquisition | interest | |||||||||||
Subsidiaries: | |||||||||||||
Fortune Software (Beijing) Co., Ltd. ("CFO Software") | Beijing, PRC | Dec. 7, 2004 | 100% | N/A | |||||||||
Fortune (Beijing) Success Technology Co., Ltd. ("CFO Success") | Beijing, PRC | Oct. 16, 2007 | 100% | N/A | |||||||||
Jujin Software (Shenzhen) Co., Ltd. ("CFO Jujin") | Shenzhen, PRC | Mar. 9, 2007 | 100% | N/A | |||||||||
Shenzhen Genius Information Technology Co., Ltd. ("CFO Genius") | Shenzhen, PRC | Sep. 21, 2006 | 100% | Subscription service | |||||||||
Stockstar Information Technology (Shanghai) Co., Ltd. ("CFO Stockstar") | Shanghai, PRC | Oct. 1, 2006 | 100% | N/A | |||||||||
Zhengning Information & Technology (Shanghai) Co., Ltd. ("CFO Zhengning") | Shanghai, PRC | Jan. 31, 2007 | 100% | N/A | |||||||||
iSTAR Financial Holdings Limited ("iSTAR Financial Holdings") | BVI | Jul. 16, 2007 | 85% | Investment holdings | |||||||||
iSTAR International Securities Co. Limited ("iSTAR Securities") | Hong Kong, PRC | Nov. 23, 2007 | 85% | Brokerage service | |||||||||
iSTAR International Futures Co. Limited ("iSTAR Futures") | Hong Kong, PRC | Apr. 16, 2008 | 85% | Brokerage service | |||||||||
iSTAR International Wealth Management Co. Limited ("iSTAR Wealth Management") | Hong Kong, PRC | Oct. 8, 2008 | 85% | Securities advising | |||||||||
iSTAR International Credit Co. Limited ("iSTAR Credit") | Hong Kong, PRC | Feb. 10, 2012 | 85% | N/A | |||||||||
Variable interest entities: | |||||||||||||
Beijing Fuhua Innovation Technology Development Co., Ltd. ("CFO Fuhua") | Beijing, PRC | Dec. 31, 2000 | Nil | Web portal and advertising service | |||||||||
Shanghai Chongzhi Co., Ltd. ("CFO Chongzhi") | Shanghai, PRC | Jun. 6, 2008 | Nil | Subscription service | |||||||||
Fortune (Beijing) Qicheng Technology Co., Ltd. ("CFO Qicheng") | Beijing, PRC | Dec. 18, 2009 | Nil | N/A | |||||||||
Shenzhen Newrand Securities Advisory and Investment Co., Ltd. ("CFO Newrand") | Shenzhen, PRC | Oct. 17, 2008 | Nil | Securities investment advising | |||||||||
Subsidiaries of variable interest entities: | |||||||||||||
Shanghai Meining Computer Software Co., Ltd. ("CFO Meining") | Shanghai, PRC | Oct. 1, 2006 | Nil | Web portal, advertising, subscription, | |||||||||
and SMS | |||||||||||||
Shenzhen Newrand Securities Training Center ("CFO Newrand Training") | Shenzhen, PRC | Oct. 17, 2008 | Nil | Securities investment training | |||||||||
Shanghai Stockstar Securities Advisory and Investment Co., Ltd. ("CFO Securities Consulting") | Shanghai, PRC | Nov. 5, 2009 | Nil | Securities investment advising | |||||||||
Shenzhen Tahoe Investment and Development Co., Ltd ("CFO Tahoe") | Shenzhen, PRC | Sep. 30, 2013 | Nil | N/A | |||||||||
Sinoinfo (Dalian) Investment Consulting Co., Ltd. ("CFO Sinoinfo") | Dalian, PRC | Jul. 1, 2013 | Nil | Securities investment advising | |||||||||
Shenzhen Shangtong Software Co., Ltd. ("CFO Shenzhen Shangtong") | Shenzhen, PRC | Sep. 23, 2009 | Nil | N/A | |||||||||
Zhengjin (Fujian) Precious Metals Investment Co., Ltd. ("CFO Zhengjin Fujian") | Fujian, PRC | Jan. 6, 2013 | Nil | Precious metals brokerage | |||||||||
Zhengjin (Shanghai) Precious Metals Investment Co., Ltd. ("CFO Zhengjin Shanghai") | Shanghai, PRC | Dec. 12, 2013 | Nil | Precious metals brokerage | |||||||||
Zhengjin (Tianjin) Precious Metals Investment Co., Ltd. ("CFO Zhengjin Tianjin") | Tianjin, PRC | Jul. 23, 2013 | Nil | Precious metals brokerage | |||||||||
Henghui (Tianjin) Precious Metals Investment Co., Ltd. ("CFO Henghui") | Tianjin, PRC | Sep. 30, 2013 | Nil | Precious metals brokerage | |||||||||
Variable Interest Entity, Primary Beneficiary, Aggregated Disclosure [Member] | ' | ||||||||||||
Note 1 - Organization and Principal Activities (Tables) [Line Items] | ' | ||||||||||||
Condensed Balance Sheet [Table Text Block] | ' | ||||||||||||
Year ended December 31, | |||||||||||||
2012 | 2013 | ||||||||||||
Total assets | $ | 39,592,530 | $ | 113,091,394 | |||||||||
Total liabilities | $ | 17,141,853 | $ | 71,714,009 | |||||||||
Condensed Income Statement [Table Text Block] | ' | ||||||||||||
Year ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Net revenue | $ | 27,837,567 | $ | 17,271,563 | $ | 58,549,393 | |||||||
Net Loss | $ | (7,573,823 | ) | $ | (6,948,118 | ) | $ | (5,469,402 | ) | ||||
Condensed Cash Flow Statement [Table Text Block] | ' | ||||||||||||
Year ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Net cash used in operating activities | $ | (11,948,507 | ) | $ | (13,860,354 | ) | $ | (14,469,067 | ) | ||||
Net cash (used in) provided by investing activities | (7,726,567 | ) | 3,449,449 | (9,440,165 | ) | ||||||||
Net cash (used in) provided by financing activities | (37,146,641 | ) | 6,461,007 | 35,830,988 | |||||||||
Effect of exchange rate changes | $ | 895,082 | $ | 52,740 | $ | (46,900 | ) |
Note_2_Summary_of_Significant_1
Note 2 - Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Property, Plant and Equipment, Estimated Useful Lives | ' | ||||||||||||||||
Technology infrastructure (years) | 5 | ||||||||||||||||
Computer equipment (years) | 5 | ||||||||||||||||
Furniture, fixtures and equipment (years) | 5 | ||||||||||||||||
Motor vehicle (years) | 5 | ||||||||||||||||
Leasehold improvements | Shorter of the lease term or 5 years | ||||||||||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | ' | ||||||||||||||||
License and related trademarks (years) | 15 | ||||||||||||||||
Completed technology (years) | 5 | ||||||||||||||||
Customer relationship (years) | 4 | - | 5 | ||||||||||||||
Value-added service license (years) | 3 | - | 4 | ||||||||||||||
Agreement with mobile operators (years) | 3 | ||||||||||||||||
Intellectual property (years) | 10 | ||||||||||||||||
Schedule of Accounts Receivable by Major Customers by Reporting Segments [Table Text Block] | ' | ||||||||||||||||
Year ended December 31, | |||||||||||||||||
2012 | 2013 | ||||||||||||||||
Amount | % | Amount | % | ||||||||||||||
A | $ | 3,694,584 | 18.5 | * | * | ||||||||||||
B | $ | 2,875,230 | 14.4 | * | * | ||||||||||||
C | $ | 3,165,537 | 15.8 | * | * | ||||||||||||
D | * | * | $ | 3,885,608 | 18.2 |
Note_3_Acquisitions_Tables
Note 3 - Acquisitions (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Business Combinations [Abstract] | ' | ||||||||
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | ' | ||||||||
Useful life | |||||||||
(Years) | |||||||||
Purchase price allocation: | |||||||||
Cash and cash equivalents | $ | 5,279,425 | |||||||
Prepaid expenses and current assets | 1,135,765 | ||||||||
Accounts receivable | 2,143,957 | ||||||||
Property and equipment, net | 47,770 | ||||||||
Rental deposit | 72,431 | ||||||||
Acquired intangible assets: | |||||||||
Precious metal trading right | 699,414 | ||||||||
Customer relationship | 1,250,813 | 4.3 | |||||||
Guarantee fund deposits | 1,626,545 | ||||||||
Total assets acquired | 12,256,120 | ||||||||
Accrued expenses and other current liabilities | (2,810,425 | ) | |||||||
Deferred tax liabilities | (487,557 | ) | |||||||
Total net assets | 8,958,138 | ||||||||
Noncontrolling interest | (9,508,295 | ) | |||||||
Goodwill | 7,056,338 | ||||||||
Total purchase price | $ | 6,506,181 | |||||||
Useful life | |||||||||
(Years) | |||||||||
Purchase price allocation: | |||||||||
Cash and cash equivalents | $ | 121,044 | |||||||
Prepaid expenses and current assets | 339,296 | ||||||||
Accounts receivable | 4,912 | ||||||||
Acquired intangible assets: | |||||||||
Security consulting license | 598,657 | 15 | |||||||
Total assets acquired | 1,063,909 | ||||||||
Accrued expenses and other current liabilities | (274,748 | ) | |||||||
Deferred tax liabilities | (149,664 | ) | |||||||
Income tax payable | 612 | ||||||||
Total net assets | 640,109 | ||||||||
Goodwill | 168,887 | ||||||||
Total purchase price | $ | 808,996 | |||||||
Useful life | |||||||||
(Years) | |||||||||
Purchase price allocation: | |||||||||
Acquired intangible assets: | |||||||||
Securities consulting license | $ | 2,751,148 | 15 | ||||||
Deferred tax liabilities | (687,787 | ) | |||||||
Total purchase price | $ | 2,063,361 | |||||||
Useful life | |||||||||
(Years) | |||||||||
Purchase price allocation: | |||||||||
Cash and cash equivalents | $ | 14,073 | |||||||
Prepaid and other current assets | 215,868 | ||||||||
Accounts receivable | 949 | ||||||||
Property and equipment, net | 625,258 | ||||||||
Rental deposit | 8,998 | ||||||||
Acquired intangible assets | |||||||||
Security consulting license | 2,065,168 | 15 | |||||||
Core technology | 66,465 | 5 | |||||||
Total assets acquired | 2,996,779 | ||||||||
Accounts payable | (137,665 | ) | |||||||
Accrued expenses and other current liabilities | (1,608,027 | ) | |||||||
Income tax payable | (30,780 | ) | |||||||
Deferred tax liabilities | (532,908 | ) | |||||||
Total net assets | 687,399 | ||||||||
Noncontrolling interest | (871,960 | ) | |||||||
Goodwill | 3,033,068 | ||||||||
Total purchase price | $ | 2,848,507 | |||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | ' | ||||||||
Purchase price allocation: | |||||||||
Property and equipment, net | $ | 199,803 | |||||||
Total assets acquired | 199,803 | ||||||||
Goodwill | 6,544,150 | ||||||||
Cash consideration | 4,044,980 | ||||||||
The fair value of 30% shares of CFO GB | 1,760,861 | ||||||||
The fair value of 30% shares of CFO MF | 804,142 | ||||||||
Contingent consideration of 5% shares of CFO MF | 133,970 | ||||||||
Total purchase price | $ | 6,743,953 | |||||||
Business Acquisition, Pro Forma Information [Table Text Block] | ' | ||||||||
For the year ended December 31, | |||||||||
2012 | 2013 | ||||||||
(unaudited) | (unaudited) | ||||||||
Revenues | $ | 36,237,382 | $ | 60,646,859 | |||||
Net loss attributable to China Finance Online Co., Limited | (15,202,149 | ) | (9,978,159 | ) | |||||
Net loss per share attributable to China Finance Online Co. Limited | |||||||||
- basic | $ | (0.14 | ) | $ | (0.09 | ) | |||
- diluted | $ | (0.14 | ) | $ | (0.09 | ) |
Note_4_Accounts_Receivable_Tab
Note 4 - Accounts Receivable (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounts Receivable [Abstract] | ' | ||||||||
Accounts Receivable [Table Text Block] | ' | ||||||||
December 31, | |||||||||
2012 | 2013 | ||||||||
Accounts receivable-margin clients | $ | 15,054,331 | $ | 6,111,916 | |||||
Less: Allowance for doubtful accounts | - | (135,275 | ) | ||||||
Accounts receivable- margin clients, net | $ | 15,054,331 | $ | 5,976,641 | |||||
Accounts receivable-others | 5,012,320 | 15,427,520 | |||||||
Less: Allowance for doubtful accounts | (41,893 | ) | (102,236 | ) | |||||
Accounts receivable-others, net | $ | 4,970,427 | $ | 15,325,284 |
Note_6_Prepaid_Expenses_and_Ot1
Note 6 - Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Prepaid Expenses And Other Current Assets Disclosure [Abstract] | ' | ||||||||
Schedule of Other Assets [Table Text Block] | ' | ||||||||
December 31, | |||||||||
2012 | 2013 | ||||||||
Prepayment of advertising fees | $ | 12,728 | $ | 281,590 | |||||
Advertising deposit | 47,729 | 250,837 | |||||||
Advances to suppliers | 1,037,764 | 1,182,555 | |||||||
VAT refund receivable | 89,843 | 141,292 | |||||||
Interest receivable | 1,019,415 | 419,991 | |||||||
Prepayment of office rental | 47,462 | 185,698 | |||||||
Other current assets | 525,406 | 844,716 | |||||||
$ | 2,780,347 | $ | 3,306,679 |
Note_7_Loan_Receivable_Tables
Note 7 - Loan Receivable (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Receivables [Abstract] | ' | ||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | ' | ||||||||||||
As of December 31, | |||||||||||||
2012 | 2013 | Interest rate | Period | ||||||||||
A(i) | 1,205,604 | - | 6% per annum | December 1, 2011 to November 30, 2012 | |||||||||
B(ii) | - | 10,333,120 | 1.5% per month | October 9, 2013 to March 31, 2014 | |||||||||
$ | 1,205,604 | $ | 10,333,120 | ||||||||||
Allowance for Credit Losses on Financing Receivables [Table Text Block] | ' | ||||||||||||
December 31, | |||||||||||||
2012 | 2013 | ||||||||||||
Beginning balance | $ | 9,565,503 | $ | 1,205,604 | |||||||||
Additions | - | 10,333,120 | |||||||||||
Collection | (8,363,140 | ) | (995,190 | ) | |||||||||
Write-offs | - | (209,956 | ) | ||||||||||
Exchange difference | 3,241 | (458 | ) | ||||||||||
Ending balance | $ | 1,205,604 | $ | 10,333,120 |
Note_8_ShortTerm_Investments_T
Note 8 - Short-Term Investments (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Short Term Investments [Abstract] | ' | ||||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | ' | ||||||||||||||||
December 31, | |||||||||||||||||
2012 | 2013 | ||||||||||||||||
Beginning balance | $ | 923,582 | $ | - | |||||||||||||
Purchases | 81,664,295 | ||||||||||||||||
Redemption | (916,228 | ) | (81,824,078 | ) | |||||||||||||
Realized gain(loss) | (45,567 | ) | 127,835 | ||||||||||||||
Unrealized loss | 38,185 | - | |||||||||||||||
Exchange difference | 28 | 31,948 | |||||||||||||||
Ending balance | $ | - | $ | - | |||||||||||||
Available-for-sale Securities [Table Text Block] | ' | ||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||
Proceeds | Costs | Gains | Exchange | ||||||||||||||
difference | |||||||||||||||||
Available-for-sale securities | $ | 81,824,078 | $ | 81,664,295 | $ | 127,835 | $ | 31,948 | |||||||||
Total | $ | 81,824,078 | $ | 81,664,295 | $ | 127,835 | $ | 31,948 | |||||||||
Year ended December 31, 2012 | |||||||||||||||||
Proceeds | Costs | Losses | Exchange | ||||||||||||||
difference | |||||||||||||||||
Available-for-sale securities | $ | 916,228 | $ | 952,411 | $ | (45,567 | ) | $ | 9,384 | ||||||||
Total | $ | 916,228 | $ | 952,411 | $ | (45,567 | ) | $ | 9,384 |
Note_9_Fair_Value_Measurement_
Note 9 - Fair Value Measurement (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Note 9 - Fair Value Measurement (Tables) [Line Items] | ' | ||||||||||||||||
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | ' | ||||||||||||||||
Fair value disclosure or measurement at December 31, 2012 | |||||||||||||||||
Fair value at | Quoted price in active | Significant other | Significant | ||||||||||||||
31-Dec-12 | markets for identical | observable inputs | unobservable inputs | ||||||||||||||
asset (Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Fair value disclosure | |||||||||||||||||
Short-term investment: | |||||||||||||||||
Held-to-maturity securities | $ | 2,639,589 | - | $ | 2,639,589 | - | |||||||||||
Fair value measurement | |||||||||||||||||
Trading securities | - | - | - | - | |||||||||||||
Available-for-sale securities | - | - | - | - | |||||||||||||
Total assets measured at fair value | - | - | - | - | |||||||||||||
Available-for-sale Securities [Member] | ' | ||||||||||||||||
Note 9 - Fair Value Measurement (Tables) [Line Items] | ' | ||||||||||||||||
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | ' | ||||||||||||||||
December 31, | |||||||||||||||||
2012 | 2013 | ||||||||||||||||
Beginning balance | $ | 923,582 | $ | - | |||||||||||||
Purchases | - | 81,664,295 | |||||||||||||||
Redemption | (916,228 | ) | (81,824,078 | ) | |||||||||||||
Realized gain(loss) | (45,567 | ) | 127,835 | ||||||||||||||
Unrealized loss | 38,185 | - | |||||||||||||||
Exchange difference | 28 | 31,948 | |||||||||||||||
Ending balance | $ | - | $ | - |
Note_10_Cost_Method_Investment1
Note 10 - Cost Method Investment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Disclosure Text Block Supplement [Abstract] | ' | ||||||||
Schedule of Cost Method Investments [Table Text Block] | ' | ||||||||
December 31, | |||||||||
2012 | 2013 | ||||||||
Beginning balance | $ | - | $ | 802,202 | |||||
Purchases | 802,202 | 309,698 | |||||||
Exchange difference | - | 26,999 | |||||||
Ending balance | $ | 802,202 | $ | 1,138,899 |
Note_12_Property_and_Equipment1
Note 12 - Property and Equipment, Net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment [Table Text Block] | ' | ||||||||
December 31, | |||||||||
2012 | 2013 | ||||||||
Technology infrastructure | $ | 9,605,535 | $ | 10,299,529 | |||||
Computer equipment | 1,911,447 | 1,840,958 | |||||||
Furniture, fixtures and equipment | 3,200,237 | 3,548,706 | |||||||
Motor vehicle | 731,672 | 609,345 | |||||||
Leasehold improvements | 3,910,370 | 4,173,025 | |||||||
19,359,261 | 20,471,563 | ||||||||
Less: accumulated depreciation | (14,445,147 | ) | (16,603,296 | ) | |||||
$ | 4,914,114 | $ | 3,868,267 |
Note_13_Acquired_Intangible_As1
Note 13 - Acquired Intangible Assets, Net (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Disclosure Text Block [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] | ' | ||||||||||||||||||||||||
31-Dec | |||||||||||||||||||||||||
2012 | 2013 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
carrying | amortization | carrying | carrying | amortization | carrying | ||||||||||||||||||||
amount | amount | amount | amount | ||||||||||||||||||||||
Intangible assets not subject to amortization: | |||||||||||||||||||||||||
Precious metal trading right | $ | - | $ | - | $ | - | $ | 1,295,740 | $ | - | $ | 1,295,740 | |||||||||||||
Intangible assets subject to amortization: | |||||||||||||||||||||||||
Completed technology | 66,820 | (7,276 | ) | 59,544 | 68,887 | (21,279 | ) | 47,608 | |||||||||||||||||
Customer relationship | 1,261,297 | (72,767 | ) | 1,188,530 | |||||||||||||||||||||
Securities consulting license and related trademarks | 4,833,877 | (218,184 | ) | 4,615,693 | 5,590,273 | (577,389 | ) | 5,012,884 | |||||||||||||||||
$ | 4,900,697 | $ | (225,460 | ) | $ | 4,675,237 | $ | 8,216,197 | $ | (671,435 | ) | $ | 7,544,762 |
Note_14_Goodwill_Tables
Note 14 - Goodwill (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Disclosure Text Block Supplement [Abstract] | ' | ||||||||||||||||||||||||||||||||
Schedule of Goodwill [Table Text Block] | ' | ||||||||||||||||||||||||||||||||
Precious | Investment | Institutional | Hong Kong | Southern | Eastern | Northern | Total | ||||||||||||||||||||||||||
Metals trading | advisory | subscription | Brokerage service | China | China | China | |||||||||||||||||||||||||||
services | services | ||||||||||||||||||||||||||||||||
Balance as of December 31, 2011 | |||||||||||||||||||||||||||||||||
Goodwill | $ | - | $ | - | $ | - | $ | 1,269,520 | $ | 2,400,576 | $ | 8,892,249 | $ | 387,242 | $ | 12,949,587 | |||||||||||||||||
Accumulated impairment loss | - | - | - | (1,267,826 | ) | (2,507,499 | ) | (9,284,338 | ) | (403,561 | ) | (13,463,224 | ) | ||||||||||||||||||||
Exchange difference | - | - | - | (1,694 | ) | 106,923 | 392,089 | 16,319 | 513,637 | ||||||||||||||||||||||||
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||||
Acquisition (Note 3) | - | 3,033,068 | - | - | - | - | - | 3,033,068 | |||||||||||||||||||||||||
Exchange difference | - | 16,213 | - | - | - | - | - | 16,213 | |||||||||||||||||||||||||
Balance as of December 31, 2012 | $ | - | $ | 3,049,281 | $ | - | $ | - | - | - | - | $ | 3,049,281 | ||||||||||||||||||||
Acquisition of CFO Tahoe (Note 3) | 7,056,338 | - | - | - | - | - | - | 7,056,338 | |||||||||||||||||||||||||
Acquisition of Champion Connection's business (Note3) | - | 4,867,660 | 1,676,490 | - | - | - | - | 6,544,150 | |||||||||||||||||||||||||
Acquisition of CFO Netinfo (Note 3) | - | 168,887 | - | - | - | - | - | 168,887 | |||||||||||||||||||||||||
Exchange difference | 59,141 | 96,640 | - | - | - | - | - | 155,781 | |||||||||||||||||||||||||
Balance as of December 31, 2013 | $ | 7,115,479 | $ | 8,182,468 | $ | 1,676,490 | $ | - | $ | - | $ | - | $ | - | $ | 16,974,437 |
Note_16_Accounts_Payable_Table
Note 16 - Accounts Payable (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Note 16 - Accounts Payable (Tables) [Line Items] | ' | ||||||||
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | ' | ||||||||
December 31, | |||||||||
2012 | 2013 | ||||||||
Accrued bonus | $ | 2,026,268 | $ | 3,687,135 | |||||
Accrued refund of subscription fees | 364,445 | - | |||||||
Accrued professional service fees | 718,863 | 676,758 | |||||||
Withholding individual income tax-option exercise | 61,683 | 61,683 | |||||||
Value added taxes and other taxes payable | 242,861 | 915,601 | |||||||
Accrued raw data cost | 364,889 | 565,747 | |||||||
Accrued welfare benefits | 68,717 | 117,392 | |||||||
Acquisition consideration payable | - | 2,221,680 | |||||||
Accrued sales service fees | 115,369 | 213,314 | |||||||
Others | 1,425,535 | 1,237,152 | |||||||
$ | 5,388,630 | $ | 9,696,462 | ||||||
Accounts Payable [Member] | ' | ||||||||
Note 16 - Accounts Payable (Tables) [Line Items] | ' | ||||||||
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | ' | ||||||||
December 31, | |||||||||
2012 | 2013 | ||||||||
Amount due to customers of H.K. brokerage business | $ | 584,607 | $ | 7,039,937 | |||||
Amount due to sales agents | - | 4,202,811 | |||||||
Consulting fees payable | - | 1,175,319 | |||||||
Others | 220,244 | 154,656 | |||||||
$ | 804,851 | $ | 12,572,723 |
Note_17_Accrued_Expenses_and_O1
Note 17 - Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Disclosure Text Block Supplement [Abstract] | ' | ||||||||
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | ' | ||||||||
December 31, | |||||||||
2012 | 2013 | ||||||||
Accrued bonus | $ | 2,026,268 | $ | 3,687,135 | |||||
Accrued refund of subscription fees | 364,445 | - | |||||||
Accrued professional service fees | 718,863 | 676,758 | |||||||
Withholding individual income tax-option exercise | 61,683 | 61,683 | |||||||
Value added taxes and other taxes payable | 242,861 | 915,601 | |||||||
Accrued raw data cost | 364,889 | 565,747 | |||||||
Accrued welfare benefits | 68,717 | 117,392 | |||||||
Acquisition consideration payable | - | 2,221,680 | |||||||
Accrued sales service fees | 115,369 | 213,314 | |||||||
Others | 1,425,535 | 1,237,152 | |||||||
$ | 5,388,630 | $ | 9,696,462 |
Note_18_Stock_Options_and_Nonv1
Note 18 - Stock Options and Nonvested Shares (Tables) (2004 Stock Incentive Plan [Member]) | 12 Months Ended | |||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||
2004 Stock Incentive Plan [Member] | ' | |||||||||||||||||||||||||||||
Note 18 - Stock Options and Nonvested Shares (Tables) [Line Items] | ' | |||||||||||||||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | |||||||||||||||||||||||||||||
Years ended December 31, | ||||||||||||||||||||||||||||||
2011 | 2013 | |||||||||||||||||||||||||||||
Weighted average risk free rate of return | 2.02% | - | 2.24% | 1.4 | % | |||||||||||||||||||||||||
Weighted average expected option life (years) | 6.14 | 6.14 | ||||||||||||||||||||||||||||
Expected volatility rate | 72.96% | - | 73.75% | 76.67 | % | |||||||||||||||||||||||||
Dividend yield | - | - | ||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | |||||||||||||||||||||||||||||
2011 | 2012 | 2013 | ||||||||||||||||||||||||||||
Number | Weighted | Number | Weighted | Number | Weighted | |||||||||||||||||||||||||
of options | average | of options | average | of options | average | |||||||||||||||||||||||||
exercise price | exercise price | exercise price | ||||||||||||||||||||||||||||
Outstanding at beginning of year | 13,103,238 | $ | 0.99 | 11,994,698 | $ | 0.96 | 11,144,998 | $ | 0.93 | |||||||||||||||||||||
Granted | 285,000 | 1.08 | - | - | 14,000,000 | 0.25 | ||||||||||||||||||||||||
Exercised | (47,500 | ) | 0.47 | (20,000 | ) | 0.16 | (190,250 | ) | 0.16 | |||||||||||||||||||||
Forfeited | (1,346,040 | ) | 1.28 | (829,700 | ) | 1.35 | (449,400 | ) | 1.25 | |||||||||||||||||||||
Outstanding at end of year | 11,994,698 | $ | 0.96 | 11,144,998 | $ | 0.93 | 24,505,348 | $ | 0.54 | |||||||||||||||||||||
Shares exercisable at end of year | 10,588,058 | $ | 0.91 | 10,856,838 | $ | 0.92 | 10,500,548 | $ | 0.93 | |||||||||||||||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | ' | |||||||||||||||||||||||||||||
Options outstanding | Option exercisable | |||||||||||||||||||||||||||||
Stock option | Number | Weighted | Weighted | Aggregate | Number | Weighted | Aggregate | |||||||||||||||||||||||
with exercise | outstanding | average | average | intrinsic | exercisable | average | intrinsic value | |||||||||||||||||||||||
price of: | remaining | exercise | value as of | exercise | as of December 31, | |||||||||||||||||||||||||
contractual life | price | December 31, | price | 2013 | ||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||||
$0.16 | 2,620,488 | 2,620,488 | ||||||||||||||||||||||||||||
$1.04 | 200,000 | 200,000 | ||||||||||||||||||||||||||||
$1.31 | 1,177,700 | 1,177,700 | ||||||||||||||||||||||||||||
$1.32 | 27,000 | 27,000 | ||||||||||||||||||||||||||||
$1.12 | 400,000 | 400,000 | ||||||||||||||||||||||||||||
$1.16 | 200,000 | 200,000 | ||||||||||||||||||||||||||||
$1.07 | 700,000 | 700,000 | ||||||||||||||||||||||||||||
$0.96 | 2,386,000 | 2,386,000 | ||||||||||||||||||||||||||||
$1.32 | 73,600 | 73,600 | ||||||||||||||||||||||||||||
$1.26 | 493,560 | 493,560 | ||||||||||||||||||||||||||||
$1.65 | 10,000 | 10,000 | ||||||||||||||||||||||||||||
$1.43 | 2,137,000 | 2,137,000 | ||||||||||||||||||||||||||||
$1.43 | 50,000 | 50,000 | ||||||||||||||||||||||||||||
$0.87 | 30,000 | 25,200 | ||||||||||||||||||||||||||||
$0.25 | 14,000,000 | - | ||||||||||||||||||||||||||||
24,505,348 | 6.59 | $ | 0.54 | $ | 17,961,444 | 10,500,548 | $ | 0.93 | $ | 3,847,601 |
Note_19_Income_Taxes_Tables
Note 19 - Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | ' | ||||||||||||
December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Current | $ | (662,114 | ) | $ | (315,197 | ) | $ | (478,966 | ) | ||||
Deferred | (3,276,319 | ) | (568,521 | ) | 378,908 | ||||||||
Total | $ | (3,938,433 | ) | $ | (883,718 | ) | $ | (100,058 | ) | ||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | ||||||||||||
December 31, | |||||||||||||
2012 | 2013 | ||||||||||||
Current deferred tax assets: | |||||||||||||
Deferred revenue - current | $ | 689,596 | $ | 618,648 | |||||||||
Accrued expenses and other liabilities | 313,572 | 583,849 | |||||||||||
Net operating loss carrying forwards | 949,476 | 4,442,678 | |||||||||||
1,952,644 | 5,645,175 | ||||||||||||
Less: valuation allowance | (1,561,019 | ) | (4,530,737 | ) | |||||||||
Total current deferred tax assets | 391,625 | 1,114,438 | |||||||||||
Non-current deferred tax assets: | |||||||||||||
Deferred revenue - non-current | $ | 200,774 | $ | 381,522 | |||||||||
Net operating loss carrying forwards | 8,101,455 | 8,370,153 | |||||||||||
8,302,229 | 8,751,705 | ||||||||||||
Less: valuation allowance | (8,101,455 | ) | (8,657,442 | ) | |||||||||
Total non-current deferred tax assets | $ | 200,774 | $ | 94,263 | |||||||||
Current deferred tax liabilities: | |||||||||||||
Account receivable and other assets | (140,074 | ) | (325,340 | ) | |||||||||
Total current deferred tax liabilities | $ | (140,074 | ) | $ | (325,340 | ) | |||||||
Non-current deferred tax liabilities: | |||||||||||||
Intangible assets | (1,168,809 | ) | (1,886,190 | ) | |||||||||
Total non-current deferred tax liabilities | $ | (1,168,809 | ) | $ | (1,886,190 | ) | |||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | ||||||||||||
Years ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Loss before tax | $ | (15,525,522 | ) | $ | (11,076,429 | ) | $ | (8,073,832 | ) | ||||
Income tax expense calculated at 25% | (3,881,381 | ) | (2,769,107 | ) | (2,018,458 | ) | |||||||
Effect of tax holiday | (2,155,424 | ) | 2,206,739 | (266,396 | ) | ||||||||
Effect of income tax rate difference in other jurisdictions | (203,633 | ) | 250,412 | 305,505 | |||||||||
Non-deductible expenses | 4,950,474 | 851,680 | 267,748 | ||||||||||
Non-taxable income | (40,165 | ) | (2,122 | ) | (439,861 | ) | |||||||
Change in valuation allowance | 5,268,562 | 346,116 | 2,251,520 | ||||||||||
Income tax expense (benefit | $ | 3,938,433 | $ | 883,718 | $ | 100,058 |
Note_20_Net_Income_Loss_Per_Sh1
Note 20 - Net Income (Loss) Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||||||
Years ended December 31, | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Net loss attributable to China Finance Online Co. Limited | $ | (19,326,909 | ) | $ | (11,855,207 | ) | $ | (8,573,128 | ) | ||||
Weighted average ordinary shares outstanding used in computing basic net income per share | 108,961,642 | 108,983,249 | 109,019,513 | ||||||||||
Weighted average ordinary shares outstanding used in computing diluted net income per share | 108,961,642 | 108,983,249 | 109,019,513 | ||||||||||
Net loss per share attributable to China Finance Online Co. Limited | |||||||||||||
- basic | $ | (0.18 | ) | $ | (0.11 | ) | $ | (0.08 | ) | ||||
- diluted | $ | (0.18 | ) | $ | (0.11 | ) | $ | (0.08 | ) |
Note_22_Noncontrolling_Interes1
Note 22 - Noncontrolling Interests (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Noncontrolling Interest [Abstract] | ' | ||||||||||||||||||||
Redeemable Noncontrolling Interest [Table Text Block] | ' | ||||||||||||||||||||
Precious | Investment | Institutional | iSTAR Financial | Total | |||||||||||||||||
metal trading | advisory | Subscription | holdings brokerage | ||||||||||||||||||
services | services | Services | services | ||||||||||||||||||
Balance as of January 1, 2011 | $ | - | $ | - | $ | - | $ | (56,802 | ) | $ | (56,802 | ) | |||||||||
Share-based compensation (Note 17) | - | - | - | 88,940 | 88,940 | ||||||||||||||||
Net loss | - | - | - | (137,046 | ) | (137,046 | ) | ||||||||||||||
Balance as of December 31, 2011 | - | - | - | (104,908 | ) | (104,908 | ) | ||||||||||||||
Acquisition of CFO East Win (Note3) | - | 871,960 | - | - | 871,960 | ||||||||||||||||
Share-based compensation (Note 15) | - | - | - | 89,256 | 89,256 | ||||||||||||||||
Net loss | - | (183,898 | ) | - | 78,958 | (104,940 | ) | ||||||||||||||
Balance as of December 31, 2012 | - | 688,062 | - | 63,306 | 751,368 | ||||||||||||||||
Acquisition of CFO Tahoe (Note3) | 9,508,295 | - | 9,508,295 | ||||||||||||||||||
Acquisition of Champion Connection (Note3) | 1,760,861 | 938,112 | - | 2,698,973 | |||||||||||||||||
Acquisition of Nontrolling interests of CFO East Win | - | 586,954 | - | - | 586,954 | ||||||||||||||||
Changes in ownership of subsidiaries | 289,656 | (1,068,471 | ) | - | (778,815 | ) | |||||||||||||||
Capital injection from noncontrolling interests | 1,405,963 | - | - | - | 1,405,963 | ||||||||||||||||
Share-based compensation (Note 15) | - | - | - | 74,376 | 74,376 | ||||||||||||||||
Net income (loss) | 1,056,322 | (419,202 | ) | (64,585 | ) | (173,297 | ) | 399,238 | |||||||||||||
Balance as of December 31, 2013 | $ | 11,970,580 | $ | 2,906,331 | $ | (194,944 | ) | $ | (35,615 | ) | $ | 14,646,352 |
Note_23_Commitments_and_Contin1
Note 23 - Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | ' | ||||
Year ending | |||||
2014 | $ | 8,194,130 | |||
2015 | 4,814,136 | ||||
2016 | 1,753,364 | ||||
Total | $ | 14,761,630 |
Note_24_Segment_and_Geographic1
Note 24 - Segment and Geographic Information (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Note 24 - Segment and Geographic Information (Tables) [Line Items] | ' | ||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | ||||||||||||||||
Subscription | Brokerage services | Consolidated | |||||||||||||||
services and other | in Hong Kong | ||||||||||||||||
related services | |||||||||||||||||
Net revenues | $ | 25,781,724 | $ | 3,817,762 | $ | 29,599,486 | |||||||||||
Cost of revenues | 7,297,061 | 792,333 | 8,089,394 | ||||||||||||||
Operating expenses: | |||||||||||||||||
General and administrative | 8,515,833 | 2,871,548 | 11,387,381 | ||||||||||||||
Product development | 10,735,570 | - | 10,735,570 | ||||||||||||||
Sales and marketing | 12,500,788 | 571,229 | 13,072,017 | ||||||||||||||
Total operating expenses | 31,752,191 | 3,442,777 | 35,194,968 | ||||||||||||||
Government subsidies | 75,883 | - | 75,883 | ||||||||||||||
Loss from operations | $ | (13,191,645 | ) | $ | (417,348 | ) | $ | (13,608,993 | ) | ||||||||
Total assets | $ | 72,474,437 | $ | 48,896,558 | $ | 121,370,995 | |||||||||||
Subscription | Brokerage services | Consolidated | |||||||||||||||
services and other | in Hong Kong | ||||||||||||||||
related services | |||||||||||||||||
Net revenues | $ | 49,468,401 | $ | 3,539,664 | $ | 53,008,065 | |||||||||||
Cost of revenues | 8,462,096 | 308,521 | 8,770,617 | ||||||||||||||
Operating expenses: | |||||||||||||||||
General and administrative | 8,319,593 | 2,908,039 | 11,227,632 | ||||||||||||||
Product development | 13,313,635 | - | 13,313,635 | ||||||||||||||
Sales and marketing | 20,714,263 | 623,536 | 21,337,799 | ||||||||||||||
Loss from impairment of intangible assets | 3,949,420 | 128,664 | 4,078,084 | ||||||||||||||
Loss from impairment of goodwill | 12,195,398 | 1,267,826 | 13,463,224 | ||||||||||||||
Total operating expenses | 58,492,309 | 4,928,065 | 63,420,374 | ||||||||||||||
Government subsidies | 265,016 | - | 265,016 | ||||||||||||||
Loss from operations | $ | (17,220,988 | ) | $ | (1,696,922 | ) | $ | (18,917,910 | ) | ||||||||
Total assets | $ | 106,811,438 | $ | 53,165,245 | $ | 159,976,683 | |||||||||||
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | ' | ||||||||||||||||
Years ended December 31, | |||||||||||||||||
2011 | 2012 | 2013 | |||||||||||||||
Precious metals trading services revenues | $ | - | $ | - | $ | 30,124,245 | |||||||||||
Financial information and advisory services revenues | 43,100,486 | 20,826,995 | 11,122,400 | ||||||||||||||
Advertising revenue | 6,243,748 | 4,848,622 | 6,799,109 | ||||||||||||||
Hong Kong brokerage services revenues | 3,539,664 | 3,817,762 | 3,404,767 | ||||||||||||||
Others | 124,167 | 106,107 | 1,287,556 | ||||||||||||||
Total revenue from external customers | $ | 53,008,065 | $ | 29,599,486 | $ | 52,738,077 | |||||||||||
Three Operating Segments [Member] | ' | ||||||||||||||||
Note 24 - Segment and Geographic Information (Tables) [Line Items] | ' | ||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | ||||||||||||||||
Precious metal | Subscription services and other related services | Brokerage services | Consolidated | ||||||||||||||
trading services | in Hong Kong | ||||||||||||||||
Net revenues | $ | 30,124,245 | $ | 21,656,482 | $ | 3,404,767 | $ | 55,185,494 | |||||||||
Less: intersegment sales | - | (2,447,417 | ) | - | (2,447,417 | ) | |||||||||||
Net revenues from external customer | 30,124,245 | 19,209,065 | 3,404,767 | 52,738,077 | |||||||||||||
Cost of revenues | 2,613,287 | 7,018,379 | 938,404 | 10,570,070 | |||||||||||||
Operating expenses: | |||||||||||||||||
General and administrative | 1,087,048 | 10,831,336 | 3,291,718 | 15,210,102 | |||||||||||||
Product development | 784,083 | 8,248,244 | - | 9,032,327 | |||||||||||||
Sales and marketing | 22,015,190 | 10,429,389 | 591,074 | 33,035,653 | |||||||||||||
Total segments operating expenses | 23,886,321 | 29,508,969 | 3,882,792 | 57,278,082 | |||||||||||||
Less: intersegment operating expenses | (2,447,417 | ) | - | - | (2,447,417 | ) | |||||||||||
Total operating expenses | 21,438,904 | 29,508,969 | 3,882,792 | 54,830,665 | |||||||||||||
Government subsidies | - | 11,187 | - | 11,187 | |||||||||||||
Income (loss) from operations | $ | 6,072,054 | $ | (17,307,096 | ) | $ | (1,416,429 | ) | $ | (12,651,471 | ) | ||||||
Total segments assets | 27,791,654 | 80,844,211 | 31,893,233 | 140,529,098 | |||||||||||||
Less: intersegment balances | - | (7,036,363 | ) | - | (7,036,363 | ) | |||||||||||
Total assets | $ | 27,791,654 | $ | 73,807,848 | $ | 31,893,233 | $ | 133,492,735 |
Schedule_I_Financial_Informati1
Schedule I - Financial Information of Parent Company (Tables) (Parent Company [Member]) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Parent Company [Member] | ' | ||||||||||||||||||||||||
Schedule I - Financial Information of Parent Company (Tables) [Line Items] | ' | ||||||||||||||||||||||||
Condensed Balance Sheet [Table Text Block] | ' | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2012 | 2013 | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 2,941,180 | $ | 721,271 | |||||||||||||||||||||
Amounts due from subsidiaries, VIEs and VIE’s subsidiaries | 3,309,214 | 6,807,051 | |||||||||||||||||||||||
Prepaid expenses and other current assets | 104,116 | 167,562 | |||||||||||||||||||||||
Dividends receivable | 19,463,347 | 18,917,296 | |||||||||||||||||||||||
Total current assets | 25,817,857 | 26,613,180 | |||||||||||||||||||||||
Investments in subsidiaries, VIEs and VIE’s subsidiaries | 63,446,732 | 60,283,341 | |||||||||||||||||||||||
Rental deposits | 66,622 | 66,893 | |||||||||||||||||||||||
Total assets | $ | 89,331,211 | $ | 86,963,414 | |||||||||||||||||||||
Liabilities and shareholders' equity | |||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||
Accrued expenses and other current liabilities | 251,649 | 286,041 | |||||||||||||||||||||||
Amounts due to subsidiaries, VIEs and VIE’s subsidiaries | 9,114,380 | 10,906,476 | |||||||||||||||||||||||
Total current liabilities | $ | 9,366,029 | $ | 11,192,517 | |||||||||||||||||||||
Shareholders' equity | |||||||||||||||||||||||||
Ordinary shares ($0.00013 par value; 500,000,000 shares authorized; 110,955,383 and 111,145,633 shares issued and outstanding as of December 31, 2012 and 2013, respectively) | 14,328 | 14,353 | |||||||||||||||||||||||
Additional paid-in capital | 81,163,243 | 84,346,266 | |||||||||||||||||||||||
Accumulated other comprehensive income | 11,089,820 | 12,285,615 | |||||||||||||||||||||||
Retained deficits | (12,302,209 | ) | (20,875,337 | ) | |||||||||||||||||||||
Total shareholders' equity | 79,965,182 | 75,770,897 | |||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 89,331,211 | $ | 86,963,414 | |||||||||||||||||||||
Condensed Income Statement [Table Text Block] | ' | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2011 | 2012 | 2013 | |||||||||||||||||||||||
Cost of revenues | $ | 43,976 | $ | 4,245 | $ | 2,584 | |||||||||||||||||||
Gross loss | (43,976 | ) | (4,245 | ) | (2,584 | ) | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||
General and administrative | 1,428,893 | 1,445,591 | 1,417,843 | ||||||||||||||||||||||
Product development | 75,482 | 68,961 | 62,914 | ||||||||||||||||||||||
Sales and marketing | - | 43,018 | 160,112 | ||||||||||||||||||||||
Stock-based compensation | 945,868 | 207,677 | 2,539,274 | ||||||||||||||||||||||
Loss from impairment of goodwill | 50,534 | - | - | ||||||||||||||||||||||
Total operating expenses | 2,500,777 | 1,765,247 | 4,180,143 | ||||||||||||||||||||||
Interest income | 1,402 | 2,180 | 605 | ||||||||||||||||||||||
Equity in deficits of subsidiaries, VIEs and VIE’s subsidiaries | (16,643,739 | ) | (9,674,955 | ) | (4,985,519 | ) | |||||||||||||||||||
Exchange gain, net | 1,339,752 | (413,004 | ) | 594,513 | |||||||||||||||||||||
Other income | - | 64 | - | ||||||||||||||||||||||
Loss from impairment of cost method investment | (1,479,571 | ) | - | - | |||||||||||||||||||||
Net loss | $ | (19,326,909 | ) | $ | (11,855,207 | ) | $ | (8,573,128 | ) | ||||||||||||||||
Other comprehensive income, net of tax: | |||||||||||||||||||||||||
Changes in foreign currency translation adjustment | 2,928,723 | 130,115 | 1,195,795 | ||||||||||||||||||||||
Net unrealized loss on available-for-sale securities, net of tax effects of ($5,728), $5,728 and nil for 2011, 2012 and 2013, respectively | (32,457 | ) | (13,110 | ) | - | ||||||||||||||||||||
Reclassification adjustment of available-for-sale securities, net of tax effects of nil, nil and nil for 2011, 2012 and 2013, respectively | - | 45,567 | - | ||||||||||||||||||||||
Other comprehensive income, net of tax | 2,896,266 | 162,572 | 1,195,795 | ||||||||||||||||||||||
Comprehensive loss | $ | (16,430,643 | ) | $ | (11,692,635 | ) | $ | (7,377,333 | ) | ||||||||||||||||
Schedule of Stockholders Equity [Table Text Block] | ' | ||||||||||||||||||||||||
Ordinary shares | Additional paid-in | Accumulated other | Retained | Total | |||||||||||||||||||||
comprehensive | earnings | shareholders' | |||||||||||||||||||||||
Shares | Amount | capital | income (loss) | (deficits) | equity | ||||||||||||||||||||
Balance as of January 1, 2011 | 110,887,883 | $ | 14,319 | $ | 78,974,697 | $ | 8,030,982 | $ | 18,879,907 | $ | 105,899,905 | ||||||||||||||
Exercise of share options by employees | 47,500 | 6 | 22,019 | - | - | 22,025 | |||||||||||||||||||
Share-based compensation | - | - | 945,868 | - | - | 945,868 | |||||||||||||||||||
Equity pick up from compensation of a subsidiary | - | - | 503,994 | - | - | 503,994 | |||||||||||||||||||
Net unrealized losses on available-for-sale securities, net of tax effects of $(5,728) | - | - | - | (32,457 | ) | - | (32,457 | ) | |||||||||||||||||
Foreign currency translation adjustment | - | - | - | 2,928,723 | - | 2,928,723 | |||||||||||||||||||
Net loss | - | - | - | - | (19,326,909 | ) | (19,326,909 | ) | |||||||||||||||||
Balance as of December 31, 2011 | 110,935,383 | 14,325 | 80,446,578 | 10,927,248 | (447,002 | ) | 90,941,149 | ||||||||||||||||||
Exercise of share options by employees | 20,000 | 3 | 3,197 | - | - | 3,200 | |||||||||||||||||||
Share-based compensation | - | - | 207,677 | - | - | 207,677 | |||||||||||||||||||
Equity pick up from compensation of a subsidiary | - | - | 505,791 | - | - | 505,792 | |||||||||||||||||||
Net unrealized loss on available-for-sale securities, net of tax effects of $5,728 | - | - | - | (13,110 | ) | - | (13,110 | ) | |||||||||||||||||
Reclassification adjustment of available-for sale securities, net of tax effects of nil | - | - | - | 45,567 | - | 45,567 | |||||||||||||||||||
Foreign currency translation adjustment | - | - | - | 130,115 | - | 130,115 | |||||||||||||||||||
Net loss | - | - | - | - | (11,855,207 | ) | (11,855,207 | ) | |||||||||||||||||
Balance as of December 31, 2012 | 110,955,383 | 14,328 | 81,163,243 | 11,089,820 | (12,302,209 | ) | 79,965,182 | ||||||||||||||||||
Exercise of share options by employees | 190,250 | 25 | 30,415 | - | - | 30,440 | |||||||||||||||||||
Share-based compensation | - | - | 2,539,274 | - | - | 2,539,274 | |||||||||||||||||||
Equity pick up from compensation of a subsidiary | - | - | 421,473 | - | - | 421,473 | |||||||||||||||||||
Acquisition of business combination | - | - | 191,861 | - | - | 191,861 | |||||||||||||||||||
Foreign currency translation adjustment | - | - | - | 1,195,795 | - | 1,195,795 | |||||||||||||||||||
Net loss | - | - | - | - | (8,573,128 | ) | (8,573,128 | ) | |||||||||||||||||
Balance as of December 31, 2013 | 111,145,633 | $ | 14,353 | $ | 84,346,266 | $ | 12,285,615 | $ | (20,875,337 | ) | $ | 75,770,897 | |||||||||||||
Condensed Cash Flow Statement [Table Text Block] | ' | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2011 | 2012 | 2013 | |||||||||||||||||||||||
Operating activities: | |||||||||||||||||||||||||
Net loss | $ | (19,326,909 | ) | $ | (11,855,207 | ) | $ | (8,573,128 | ) | ||||||||||||||||
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||||||||||||||||||||||||
Stock-based compensation | 945,868 | 207,677 | 2,539,274 | ||||||||||||||||||||||
Loss from impairment of cost method investment | 1,479,571 | - | - | ||||||||||||||||||||||
Loss from impairment of goodwill | 50,534 | - | - | ||||||||||||||||||||||
Equity in earnings of subsidiaries, VIEs and VIE’s subsidiaries | 16,643,739 | 9,674,955 | 4,985,519 | ||||||||||||||||||||||
Changes in assets and liabilities: | |||||||||||||||||||||||||
Prepaid expenses and other current assets | (31,865 | ) | 26,907 | (63,446 | ) | ||||||||||||||||||||
Amounts due from subsidiaries, VIEs and VIE’s subsidiaries | (902,476 | ) | 317,359 | (4,092,500 | ) | ||||||||||||||||||||
Rental deposits | - | (66,622 | ) | (271 | ) | ||||||||||||||||||||
Accrued expenses and other current liabilities | (52,029 | ) | (10,225 | ) | 34,392 | ||||||||||||||||||||
Amounts due to subsidiaries, VIEs and VIE’s subsidiaries | 307,870 | 8,095,649 | 1,779,098 | ||||||||||||||||||||||
Net cash (used in) provided by operating activities | (885,697 | ) | 6,390,493 | (3,391,062 | ) | ||||||||||||||||||||
Investing activities: | |||||||||||||||||||||||||
Dividend receivable | 759,301 | 4,171,269 | 1,140,713 | ||||||||||||||||||||||
Capital injection to subsidiaries | - | (10,327,422 | ) | ||||||||||||||||||||||
Net cash provided by (used in) investing activities | 759,301 | (6,156,153 | ) | 1,140,713 | |||||||||||||||||||||
Financing activities: | |||||||||||||||||||||||||
Proceeds from stock options exercised by employees | 22,025 | 3,200 | 30,440 | ||||||||||||||||||||||
Net cash provided by financing activities | 22,025 | 3,200 | 30,440 | ||||||||||||||||||||||
Effect of exchange rate changes | - | 1 | - | ||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | (104,371 | ) | 237,541 | (2,219,909 | ) | ||||||||||||||||||||
Cash and cash equivalents, beginning of year | 2,808,010 | 2,703,639 | 2,941,180 | ||||||||||||||||||||||
Cash and cash equivalents, end of year | $ | 2,703,639 | $ | 2,941,180 | $ | 721,271 |
Note_1_Organization_and_Princi2
Note 1 - Organization and Principal Activities (Details) | Dec. 31, 2013 |
Strategic Consulting Services Agreement [Member] | ' |
Note 1 - Organization and Principal Activities (Details) [Line Items] | ' |
Term of Agreement | '20 years |
Technical Support Services Agreement [Member] | ' |
Note 1 - Organization and Principal Activities (Details) [Line Items] | ' |
Term of Agreement | '10 years |
Operating Support Services Agreement [Member] | ' |
Note 1 - Organization and Principal Activities (Details) [Line Items] | ' |
Term of Agreement | '10 years |
Strategic Consulting Services Agreement [Member] | ' |
Note 1 - Organization and Principal Activities (Details) [Line Items] | ' |
Agreement Fee, As A Percentage of VIE's Income Before Tax | 30.00% |
Technical Support Services Agreement [Member] | ' |
Note 1 - Organization and Principal Activities (Details) [Line Items] | ' |
Agreement Fee, As A Percentage of VIE's Income Before Tax | 30.00% |
Operating Support Services Agreement [Member] | ' |
Note 1 - Organization and Principal Activities (Details) [Line Items] | ' |
Agreement Fee, As A Percentage of VIE's Income Before Tax | 40.00% |
Note_1_Organization_and_Princi3
Note 1 - Organization and Principal Activities (Details) - Significant Subsidiaries, VIEs and VIEs' Subsidiaries | 12 Months Ended |
Dec. 31, 2013 | |
"CFO Software" [Member] | ' |
Subsidiaries: | ' |
Subsidiary, date of incorporation or acquisition | 7-Dec-04 |
Subsidiary, legal ownership interest | 100.00% |
bCFO Successb [Member] | ' |
Subsidiaries: | ' |
Subsidiary, date of incorporation or acquisition | 16-Oct-07 |
Subsidiary, legal ownership interest | 100.00% |
"CFO Jujin" [Member] | ' |
Subsidiaries: | ' |
Subsidiary, date of incorporation or acquisition | 9-Mar-07 |
Subsidiary, legal ownership interest | 100.00% |
"CFO Genius" [Member] | ' |
Subsidiaries: | ' |
Subsidiary, date of incorporation or acquisition | 21-Sep-06 |
Subsidiary, legal ownership interest | 100.00% |
"CFO Stockstar" [Member] | ' |
Subsidiaries: | ' |
Subsidiary, date of incorporation or acquisition | 1-Oct-06 |
Subsidiary, legal ownership interest | 100.00% |
bCFO Zhengning" [Member] | ' |
Subsidiaries: | ' |
Subsidiary, date of incorporation or acquisition | 31-Jan-07 |
Subsidiary, legal ownership interest | 100.00% |
iSTAR Financial Holdings [Member] | ' |
Subsidiaries: | ' |
Subsidiary, date of incorporation or acquisition | 16-Jul-07 |
Subsidiary, legal ownership interest | 85.00% |
iSTAR Securities [Member] | ' |
Subsidiaries: | ' |
Subsidiary, date of incorporation or acquisition | 23-Nov-07 |
Subsidiary, legal ownership interest | 85.00% |
"iSTAR Futures" [Member] | ' |
Subsidiaries: | ' |
Subsidiary, date of incorporation or acquisition | 16-Apr-08 |
Subsidiary, legal ownership interest | 85.00% |
"iSTAR Wealth Management" [Member] | ' |
Subsidiaries: | ' |
Subsidiary, date of incorporation or acquisition | 8-Oct-08 |
Subsidiary, legal ownership interest | 85.00% |
"iSTAR Credit" [Member] | ' |
Subsidiaries: | ' |
Subsidiary, date of incorporation or acquisition | 10-Feb-12 |
Subsidiary, legal ownership interest | 85.00% |
"CFO Meining" [Member] | ' |
Subsidiaries: | ' |
Subsidiary, date of incorporation or acquisition | 1-Oct-06 |
Subsidiary, legal ownership interest | ' |
"CFO Newrand Training" [Member] | ' |
Subsidiaries: | ' |
Subsidiary, date of incorporation or acquisition | 17-Oct-08 |
Subsidiary, legal ownership interest | ' |
"CFO Securities Consulting" [Member] | ' |
Subsidiaries: | ' |
Subsidiary, date of incorporation or acquisition | 5-Nov-09 |
Subsidiary, legal ownership interest | ' |
CFO Tahoe [Member] | ' |
Subsidiaries: | ' |
Subsidiary, date of incorporation or acquisition | 30-Sep-13 |
CFO Sinoinfo [Member] | ' |
Subsidiaries: | ' |
Subsidiary, date of incorporation or acquisition | 1-Jul-13 |
Subsidiary, legal ownership interest | ' |
"CFO Shenzhen Shangtong" [Member] | ' |
Subsidiaries: | ' |
Subsidiary, date of incorporation or acquisition | 23-Sep-09 |
Subsidiary, legal ownership interest | ' |
CFO Zhengjin Fujian [Member] | ' |
Subsidiaries: | ' |
Subsidiary, date of incorporation or acquisition | 6-Jan-13 |
Subsidiary, legal ownership interest | ' |
CFO Zhengjin Shanghai [Member] | ' |
Subsidiaries: | ' |
Subsidiary, date of incorporation or acquisition | 12-Dec-13 |
Subsidiary, legal ownership interest | ' |
CFO Zhengjin Tianjin [Member] | ' |
Subsidiaries: | ' |
Subsidiary, date of incorporation or acquisition | 23-Jul-13 |
Subsidiary, legal ownership interest | ' |
CFO Henghui [Member] | ' |
Subsidiaries: | ' |
Subsidiary, date of incorporation or acquisition | 30-Sep-13 |
Subsidiary, legal ownership interest | ' |
"CFO Fuhua" [Member] | ' |
Subsidiaries: | ' |
Subsidiary, date of incorporation or acquisition | 31-Dec-00 |
Subsidiary, legal ownership interest | ' |
"CFO Chongzhi" [Member] | ' |
Subsidiaries: | ' |
Subsidiary, date of incorporation or acquisition | 6-Jun-08 |
Subsidiary, legal ownership interest | ' |
"CFO Qicheng" [Member] | ' |
Subsidiaries: | ' |
Subsidiary, date of incorporation or acquisition | 18-Dec-09 |
Subsidiary, legal ownership interest | ' |
"CFO Newrand" [Member] | ' |
Subsidiaries: | ' |
Subsidiary, date of incorporation or acquisition | 17-Oct-08 |
Subsidiary, legal ownership interest | ' |
Note_1_Organization_and_Princi4
Note 1 - Organization and Principal Activities (Details) - Assets and Liabilities of the VIEs and Their Subsidiaries, Before Intercompany Elimination (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Condensed Balance Sheet Statements, Captions [Line Items] | ' | ' | ' |
Total assets | $133,492,735 | $121,370,995 | $159,976,683 |
Total liabilities | 43,075,486 | 40,654,444 | ' |
VIEs And Their Subsidiaries, Before Intercompany Elimination [Member] | ' | ' | ' |
Condensed Balance Sheet Statements, Captions [Line Items] | ' | ' | ' |
Total assets | 113,091,394 | 39,592,530 | ' |
Total liabilities | $71,714,009 | $17,141,853 | ' |
Note_1_Organization_and_Princi5
Note 1 - Organization and Principal Activities (Details) - Net Revenue and Net Income (Loss) of the VIEs and Their Subsidiaries, Before Intercompany Elimination (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Condensed Income Statements, Captions [Line Items] | ' | ' | ' |
Net revenue | $52,738,077 | $29,599,486 | $53,008,065 |
Net Loss | -8,573,128 | -11,855,207 | -19,326,909 |
VIEs And Their Subsidiaries, Before Intercompany Elimination [Member] | ' | ' | ' |
Condensed Income Statements, Captions [Line Items] | ' | ' | ' |
Net revenue | 58,549,393 | 17,271,563 | 27,837,567 |
Net Loss | ($5,469,402) | ($6,948,118) | ($7,573,823) |
Note_1_Organization_and_Princi6
Note 1 - Organization and Principal Activities (Details) - Net Cash Provided By (Used In) of the VIEs and Their Subsidiaries, Before Intercompany Elimination (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Condensed Cash Flow Statements, Captions [Line Items] | ' | ' | ' |
Net cash used in operating activities | $158,656 | ($29,042,932) | ($23,786,442) |
Net cash (used in) provided by investing activities | 7,577,511 | 10,960,855 | -32,775,996 |
Net cash (used in) provided by financing activities | -12,137,905 | -5,668,804 | 12,738,788 |
Effect of exchange rate changes | -133,308 | 15,785 | 1,691,264 |
VIEs And Their Subsidiaries, Before Intercompany Elimination [Member] | ' | ' | ' |
Condensed Cash Flow Statements, Captions [Line Items] | ' | ' | ' |
Net cash used in operating activities | -14,469,067 | -13,860,354 | -11,948,507 |
Net cash (used in) provided by investing activities | -9,440,165 | 3,449,449 | -7,726,567 |
Net cash (used in) provided by financing activities | 35,830,988 | 6,461,007 | -37,146,641 |
Effect of exchange rate changes | ($46,900) | $52,740 | $895,082 |
Note_2_Summary_of_Significant_2
Note 2 - Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Due from Employees | $0 | $1,056,423 | ' |
Impairment of Long-Lived Assets Held-for-use | ' | ' | 3,035,265 |
Goodwill, Impairment Loss | ' | ' | 13,463,224 |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | ' | ' | 1,042,819 |
Gain (Loss) on Sale of Commodity Contracts | 18,537,459 | ' | ' |
Other Income | 10,953,632 | ' | ' |
Other Deductions and Charges | 633,154 | ' | ' |
Value Added Tax, Rate | 6.00% | ' | ' |
Business Tax On Services Provided, Expense | 598,044 | 639,880 | 1,478,653 |
Value Added Tax Payable, As A Percentage of Subscription-Based Revenue, Threshold For Refund Of Excess Value Added Tax | 3.00% | ' | ' |
Value Added Tax Receivable | 639,936 | 1,348,564 | 3,140,764 |
Advertising Expense | 2,391,762 | 753,107 | 3,134,198 |
Payments for Commissions | 3,125,982 | 161,035 | 308,521 |
Cost Method Investments | 1,138,899 | 802,202 | ' |
Precious Metal Trading [Member] | ' | ' | ' |
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Revenues | 30,124,245 | ' | ' |
Value Added Tax On Subscription-Based Revenue [Member] | The Group's PRC Subsidiaries, VIEs and VIEs' Subsidiaries [Member] | ' | ' | ' |
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Value Added Tax, Rate | 17.00% | ' | ' |
Denominated in RMB [Member] | ' | ' | ' |
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Cash Equivalents, at Carrying Value | $26,974,664 | $26,848,249 | $52,146,828 |
Minimum [Member] | ' | ' | ' |
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' | ' |
Business Tax On Services Provided | 3.00% | ' | ' |
Note_2_Summary_of_Significant_3
Note 2 - Summary of Significant Accounting Policies (Details) - Property and Equipment, Estimated Useful Lives | 12 Months Ended | |
Dec. 31, 2013 | ||
Note 2 - Summary of Significant Accounting Policies (Details) - Property and Equipment, Estimated Useful Lives [Line Items] | ' | |
Leasehold improvements | ' | |
Technology infrastructure (years) | 5 | |
Computer equipment (years) | 5 | |
Furniture, fixtures and equipment (years) | 5 | |
Motor vehicle (years) | 5 | |
Leasehold improvements | Shorter of the lease term or 5 years | |
Technology Infrastructure [Member] | ' | |
Note 2 - Summary of Significant Accounting Policies (Details) - Property and Equipment, Estimated Useful Lives [Line Items] | ' | |
Property and equipment, estimated useful life | '5 years | |
Computer Equipment [Member] | ' | |
Note 2 - Summary of Significant Accounting Policies (Details) - Property and Equipment, Estimated Useful Lives [Line Items] | ' | |
Property and equipment, estimated useful life | '5 years | |
Furniture, Fixtures And Equipment [Member] | ' | |
Note 2 - Summary of Significant Accounting Policies (Details) - Property and Equipment, Estimated Useful Lives [Line Items] | ' | |
Property and equipment, estimated useful life | '5 years | |
Vehicles [Member] | ' | |
Note 2 - Summary of Significant Accounting Policies (Details) - Property and Equipment, Estimated Useful Lives [Line Items] | ' | |
Property and equipment, estimated useful life | '5 years | |
Leasehold Improvements [Member] | ' | |
Note 2 - Summary of Significant Accounting Policies (Details) - Property and Equipment, Estimated Useful Lives [Line Items] | ' | |
Leasehold improvements | 'Shorter of the lease term or 5 years |
Note_2_Summary_of_Significant_4
Note 2 - Summary of Significant Accounting Policies (Details) - Amortization of Definite-Lived Intangible Assets | 12 Months Ended |
Dec. 31, 2013 | |
Securities Consulting License And Related Trademarks [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Acquired intangible assets | '15 years |
Completed Technology [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Acquired intangible assets | '5 years |
Agreement With Mobile Operators [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Acquired intangible assets | '3 years |
Intellectual Property [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Acquired intangible assets | '10 years |
Minimum [Member] | Customer Relationships [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Acquired intangible assets | '4 years |
Minimum [Member] | Value-Added Service License [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Acquired intangible assets | '3 years |
Maximum [Member] | Customer Relationships [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Acquired intangible assets | '5 years |
Maximum [Member] | Value-Added Service License [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Acquired intangible assets | '4 years |
Note_2_Summary_of_Significant_5
Note 2 - Summary of Significant Accounting Policies (Details) - Clients Accounting For 10% or More of Accounts Receivable (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
Client A [Member] | ' | ' | ||
Note 2 - Summary of Significant Accounting Policies (Details) - Clients Accounting For 10% or More of Accounts Receivable [Line Items] | ' | ' | ||
Amount | ' | [1] | $3,694,584 | |
Percentage | ' | [1] | 18.50% | |
Client B [Member] | ' | ' | ||
Note 2 - Summary of Significant Accounting Policies (Details) - Clients Accounting For 10% or More of Accounts Receivable [Line Items] | ' | ' | ||
Amount | ' | [1] | 2,875,230 | |
Percentage | ' | [1] | 14.40% | |
Client C [Member] | ' | ' | ||
Note 2 - Summary of Significant Accounting Policies (Details) - Clients Accounting For 10% or More of Accounts Receivable [Line Items] | ' | ' | ||
Amount | ' | [1] | 3,165,537 | |
Percentage | ' | [1] | 15.80% | |
Client D [Member] | ' | ' | ||
Note 2 - Summary of Significant Accounting Policies (Details) - Clients Accounting For 10% or More of Accounts Receivable [Line Items] | ' | ' | ||
Amount | $3,885,608 | ' | [1] | |
Percentage | 18.20% | ' | [1] | |
[1] | Represented less than 10% of consolidated account receivable balance. |
Note_3_Acquisitions_Details
Note 3 - Acquisitions (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 6 Months Ended | 1 Months Ended | ||||||
Mar. 31, 2013 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 31, 2013 | Jul. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Jul. 31, 2013 | Jul. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2012 | Jul. 31, 2013 | |
CFO GB [Member] | Contingent Consideration [Member] | CFO Tahoe [Member] | CFO Tahoe [Member] | Henghui (Tianjin) Precious Metals Investment Co., Ltd [Member] | CFO GB [Member] | CFO Netinfo [Member] | CFO Netinfo [Member] | CFO East Win [Member] | CFO East Win [Member] | ||||||
CFO East Win [Member] | CFO MF [Member] | ||||||||||||||
Note 3 - Acquisitions (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments to Acquire Businesses, Gross | ' | $2,848,507 | ' | ' | ' | ' | ' | $6,506,181 | ' | ' | $4,044,980 | $808,996 | ' | $2,848,507 | ' |
Business Acquisition, Percentage of Voting Interests Acquired | ' | ' | ' | ' | ' | ' | ' | 60.00% | ' | ' | ' | 100.00% | ' | 70.00% | 30.00% |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | ' | ' | ' | ' | ' | ' | ' | ' | ' | 55.00% | ' | ' | ' | ' | ' |
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | ' | ' | ' | ' | ' | ' | ' | ' | 5,988,280 | ' | ' | ' | 286,500 | 860,549 | ' |
Business Acquisition, Pro Forma Net Income (Loss) | ' | ' | ' | -9,978,159 | -15,202,149 | ' | ' | ' | -1,864,234 | ' | ' | ' | -355,322 | -1,411,495 | ' |
Business Acquisition Percentage Of Voting Interests Transferred | ' | ' | ' | ' | ' | 10.00% | 5.00% | ' | ' | ' | 30.00% | ' | ' | ' | ' |
Payments to Acquire Intangible Assets | ' | ' | 2,063,361 | 578,624 | 2,063,361 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Consideration Transferred | $21,525,608 | ' | ' | ' | ' | $586,954 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note_3_Acquisitions_Details_Bu
Note 3 - Acquisitions (Details) - Business Acquisitions Purchase Price Allocation (USD $) | 1 Months Ended | 1 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | |||||||||||
Jun. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Jun. 30, 2012 | Jun. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2012 | |
Precious Metal Trading Right [Member] | CFO Tahoe [Member] | CFO Tahoe [Member] | CFO Tahoe [Member] | CFO Netinfo [Member] | CFO Netinfo [Member] | Securities Consulting License [Member] | Securities Consulting License [Member] | CFO East Win [Member] | CFO East Win [Member] | CFO East Win [Member] | CFO East Win [Member] | |||||
CFO Tahoe [Member] | Customer Relationships [Member] | Securities Consulting License [Member] | Securities Consulting License [Member] | Technology-Based Intangible Assets [Member] | ||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | ' | ' | ' | ' | ' | ' | $5,279,425 | ' | ' | $121,044 | ' | ' | ' | ' | $14,073 | ' |
Prepaid expenses and current assets | ' | ' | ' | ' | ' | ' | 1,135,765 | ' | ' | 339,296 | ' | ' | ' | ' | 215,868 | ' |
Accounts receivable | ' | ' | ' | ' | ' | ' | 2,143,957 | ' | ' | 4,912 | ' | ' | ' | ' | 949 | ' |
Property and equipment, net | ' | ' | ' | ' | ' | ' | 47,770 | ' | ' | ' | ' | ' | ' | ' | 625,258 | ' |
Rental deposit | ' | ' | ' | ' | ' | ' | 72,431 | ' | ' | ' | ' | ' | ' | ' | 8,998 | ' |
Precious metal trading right | ' | ' | ' | ' | 699,414 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finite lived intangible assets | ' | ' | ' | ' | ' | 1,250,813 | ' | ' | 598,657 | ' | 2,751,148 | ' | 2,065,168 | 66,465 | ' | ' |
Finite lived Intangible assets, useful life | ' | ' | ' | ' | ' | '4 years 109 days | ' | ' | '15 years | ' | '15 years | ' | '15 years | '5 years | ' | ' |
Guarantee fund deposits | ' | ' | ' | ' | ' | ' | 1,626,545 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total assets acquired | ' | ' | ' | ' | ' | ' | 12,256,120 | ' | ' | 1,063,909 | ' | ' | ' | ' | 2,996,779 | ' |
Accounts payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -137,665 | ' |
Accrued expenses and other current liabilities | ' | ' | ' | ' | ' | ' | -2,810,425 | ' | ' | -274,748 | ' | ' | ' | ' | -1,608,027 | ' |
Deferred tax liabilities | ' | ' | ' | ' | ' | ' | -487,557 | ' | ' | -149,664 | ' | -687,787 | ' | ' | -532,908 | ' |
Income tax payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | 612 | ' | ' | ' | ' | -30,780 | ' |
Total net assets | ' | ' | ' | ' | ' | ' | 8,958,138 | ' | ' | 640,109 | ' | ' | ' | ' | 687,399 | ' |
Noncontrolling interest | ' | ' | ' | ' | ' | ' | -9,508,295 | 9,508,295 | ' | ' | ' | ' | ' | ' | -871,960 | 871,960 |
Goodwill | ' | 16,974,437 | 3,049,281 | 12,949,587 | ' | ' | 7,056,338 | ' | ' | 168,887 | ' | ' | ' | ' | 3,033,068 | ' |
Total purchase price | $2,848,507 | ' | ' | ' | ' | ' | $6,506,181 | ' | ' | $808,996 | ' | $2,063,361 | ' | ' | $2,848,507 | ' |
Note_3_Acquisitions_Details_Ac
Note 3 - Acquisitions (Details) - Acquisition of Champion Connection Purchase Price Allocation (USD $) | 1 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2013 | Jun. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jul. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2013 | |
CFO GB [Member] | CFO MF [Member] | Champion Connection [Member] | ||||||
Champion Connection [Member] | Champion Connection [Member] | |||||||
Purchase price allocation: | ' | ' | ' | ' | ' | ' | ' | ' |
Property and equipment, net | ' | ' | ' | ' | ' | ' | ' | $199,803 |
Total assets acquired | ' | ' | ' | ' | ' | ' | ' | 199,803 |
Goodwill | ' | ' | 16,974,437 | 3,049,281 | 12,949,587 | ' | ' | 6,544,150 |
Cash consideration | ' | 2,848,507 | ' | ' | ' | ' | ' | 4,044,980 |
The fair value of shares | ' | ' | ' | ' | ' | 1,760,861 | 804,142 | ' |
Contingent consideration of 5% shares of CFO MF | ' | ' | ' | ' | ' | ' | 133,970 | ' |
Total purchase price | $21,525,608 | ' | ' | ' | ' | ' | ' | $6,743,953 |
Note_3_Acquisitions_Details_Ac1
Note 3 - Acquisitions (Details) - Acquisition of Champion Connection Purchase Price Allocation (Parentheticals) (Champion Connection [Member], USD $) | 12 Months Ended |
Jul. 31, 2013 | |
CFO GB [Member] | ' |
Note 3 - Acquisitions (Details) - Acquisition of Champion Connection Purchase Price Allocation (Parentheticals) [Line Items] | ' |
% shares | $0.30 |
CFO MF [Member] | ' |
Note 3 - Acquisitions (Details) - Acquisition of Champion Connection Purchase Price Allocation (Parentheticals) [Line Items] | ' |
% shares | $0.30 |
Contingent consideration of % shares of CFO MF (in Shares) | 0.05 |
Note_3_Acquisitions_Details_Su
Note 3 - Acquisitions (Details) - Summarized Unaudited Pro Forma Results of Operations (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Summarized Unaudited Pro Forma Results of Operations [Abstract] | ' | ' |
Revenues | $60,646,859 | $36,237,382 |
Net loss attributable to China Finance Online Co., Limited | ($9,978,159) | ($15,202,149) |
Net loss per share attributable to China Finance Online Co. Limited | ' | ' |
- basic | ($0.09) | ($0.14) |
- diluted | ($0.09) | ($0.14) |
Note_4_Accounts_Receivable_Det
Note 4 - Accounts Receivable (Details) - Accounts Receivable (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
AccountsReceivableAbstract | ' | ' |
Accounts receivable-margin clients | $6,111,916 | $15,054,331 |
Less: Allowance for doubtful accounts | -135,275 | ' |
Accounts receivable- margin clients, net | 5,976,641 | 15,054,331 |
Accounts receivable-others | 15,427,520 | 5,012,320 |
Less: Allowance for doubtful accounts | -102,236 | -41,893 |
Accounts receivable-others, net | $15,325,284 | $4,970,427 |
Note_5_Consideration_Receivabl1
Note 5 - Consideration Receivable (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Mar. 31, 2013 | |
Note 5 - Consideration Receivable (Details) [Line Items] | ' | ' |
Equity Method Investment, Ownership Percentage | ' | 49.00% |
Proceeds from Sale of Equity Method Investments | $11,445,202 | ' |
Consideration Receivable | 13,449,458 | ' |
Lang Fang Developer [Member] | ' | ' |
Note 5 - Consideration Receivable (Details) [Line Items] | ' | ' |
Equity Method Investment, Aggregate Cost | ' | 22,142,400 |
Equity Method Investment, Ownership Percentage | ' | 49.00% |
Equity Method Investment, Amount Sold | 24,930,702 | ' |
Proceeds from Sale of Equity Method Investments | 11,481,244 | ' |
Consideration Receivable | $13,449,458 | ' |
Note_6_Prepaid_Expenses_and_Ot2
Note 6 - Prepaid Expenses and Other Current Assets (Details) - Prepaid Expenses and Other Current Assets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Prepaid Expenses and Other Current Assets [Abstract] | ' | ' |
Prepayment of advertising fees | $281,590 | $12,728 |
Advertising deposit | 250,837 | 47,729 |
Advances to suppliers | 1,182,555 | 1,037,764 |
VAT refund receivable | 141,292 | 89,843 |
Interest receivable | 419,991 | 1,019,415 |
Prepayment of office rental | 185,698 | 47,462 |
Other current assets | 844,716 | 525,406 |
$3,306,679 | $2,780,347 |
Note_7_Loan_Receivable_Details
Note 7 - Loan Receivable (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Note 7 - Loan Receivable (Details) [Line Items] | ' | ' |
Proceeds from Collection of Notes Receivable (in Dollars) | $995,190 | $8,363,140 |
Equity Interest Pledged as Collateral, Percentage | 100.00% | ' |
Overdue Balance [Member] | ' | ' |
Note 7 - Loan Receivable (Details) [Line Items] | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | 1.25% | ' |
Note_7_Loan_Receivable_Details1
Note 7 - Loan Receivable (Details) - iSTAR Investment Services Loan Receivable Due From Third Parties (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ||
Amount | $10,333,120 | $1,205,604 | $9,565,503 | ||
A [Member] | ' | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ||
Amount | ' | 1,205,604 | [1] | ' | |
Interest Rate | 6.00% | ' | ' | ||
B [Member] | ' | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ||
Amount | $10,333,120 | [2] | ' | [2] | ' |
Interest Rate | 1.50% | ' | ' | ||
[1] | The principal and its return are guaranteed by a third party individual. There is an interest of 1.25% per month charged on overdue balance. The Company collected $995,190 and wrote off the uncollected balances in 2013. | ||||
[2] | The loan was made to the Langfang Developer, in which the Group also made an equity method investment during the year (Note 6). The principal and its return are pledged by the 100% equity interests of Langfang Developer, which was completed in April 2014 (Note 25). |
Note_7_Loan_Receivable_Details2
Note 7 - Loan Receivable (Details) - Changes in Loan Receivable (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Changes in Loan Receivable [Abstract] | ' | ' |
Beginning balance | $1,205,604 | $9,565,503 |
Additions | 10,333,120 | ' |
Collection | -995,190 | -8,363,140 |
Write-offs | -209,956 | ' |
Exchange difference | -458 | 3,241 |
Ending balance | $10,333,120 | $1,205,604 |
Note_8_ShortTerm_Investments_D
Note 8 - Short-Term Investments (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Short Term Investments [Abstract] | ' | ' | ' |
Held-to-maturity Securities | ' | $2,639,589 | ' |
Held-to-maturity Securities, Sold Security, Realized Gain (Loss) | 4,234 | 367,520 | ' |
Trading Securities, Realized Gain (Loss) | ' | $113,152 | $266,705 |
Note_8_ShortTerm_Investments_D1
Note 8 - Short-Term Investments (Details) - Changes in Level 3 Available-For-Sale Securities Measured On a Recurring Basis (Available-for-sale Securities [Member], Fair Value, Inputs, Level 3 [Member], USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Balance | ' | $923,582 |
Purchases | 81,664,295 | ' |
Redemption | -81,824,078 | -916,228 |
Realized gain(loss) | 127,835 | -45,567 |
Unrealized loss | ' | 38,185 |
Exchange difference | $31,948 | $28 |
Note_8_ShortTerm_Investments_D2
Note 8 - Short-Term Investments (Details) - Realized Gains of the Sale of Available-For-Sale Securities (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Realized Gains of the Sale of Available-For-Sale Securities [Abstract] | ' | ' |
Proceeds | $81,824,078 | $916,228 |
Costs | 81,664,295 | 952,411 |
Losses | 127,835 | -45,567 |
Exchange difference | $31,948 | $9,384 |
Note_9_Fair_Value_Measurement_1
Note 9 - Fair Value Measurement (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value Disclosures [Abstract] | ' | ' |
Assets, Fair Value Disclosure, Recurring | $2,639,589 | $2,639,589 |
Note_9_Fair_Value_Measurement_2
Note 9 - Fair Value Measurement (Details) - Financial Assets Measured or Disclosed at Fair Value on a Rrecurring Basis (USD $) | Dec. 31, 2012 |
Note 9 - Fair Value Measurement (Details) - Financial Assets Measured or Disclosed at Fair Value on a Rrecurring Basis [Line Items] | ' |
Held-to-maturity securities | $2,639,589 |
Held-to-maturity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ' |
Note 9 - Fair Value Measurement (Details) - Financial Assets Measured or Disclosed at Fair Value on a Rrecurring Basis [Line Items] | ' |
Held-to-maturity securities | 2,639,589 |
Held-to-maturity Securities [Member] | ' |
Note 9 - Fair Value Measurement (Details) - Financial Assets Measured or Disclosed at Fair Value on a Rrecurring Basis [Line Items] | ' |
Held-to-maturity securities | $2,639,589 |
Note_9_Fair_Value_Measurement_3
Note 9 - Fair Value Measurement (Details) - Changes in Level 3 Available-for-Sale Securities Measured on a Recurrin (Available-for-sale Securities [Member], Fair Value, Inputs, Level 3 [Member], USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Note 9 - Fair Value Measurement (Details) - Changes in Level 3 Available-for-Sale Securities Measured on a Recurrin [Line Items] | ' | ' |
Balance | ' | $923,582 |
Purchases | 81,664,295 | ' |
Redemption | -81,824,078 | -916,228 |
Realized gain(loss) | 127,835 | -45,567 |
Unrealized loss | ' | 38,185 |
Exchange difference | $31,948 | $28 |
Note_10_Cost_Method_Investment2
Note 10 - Cost Method Investment (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure Text Block Supplement [Abstract] | ' | ' |
Cost Method Investments | $1,138,899 | $802,202 |
Increase (Decrease) in Cost Method Investments | $309,698 | ' |
Note_10_Cost_Method_Investment3
Note 10 - Cost Method Investment (Details) - Cost Method Investment (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Cost Method Investment [Abstract] | ' | ' |
Cost method investment | $802,202 | ' |
Purchases | 309,698 | 802,202 |
Exchange difference | 26,999 | ' |
Cost method investment | $1,138,899 | $802,202 |
Note_11_Equity_Method_Investme1
Note 11 - Equity Method Investment (Details) (USD $) | 1 Months Ended | 12 Months Ended |
Mar. 31, 2013 | Dec. 31, 2013 | |
Equity Method Investments and Joint Ventures [Abstract] | ' | ' |
Equity Method Investment, Ownership Percentage | 49.00% | ' |
Business Combination, Consideration Transferred | $21,525,608 | ' |
Equity Method Investment Ownership Transferred Percentage | ' | 49.00% |
Income (Loss) from Equity Method Investments | ' | $2,773,839 |
Note_12_Property_and_Equipment2
Note 12 - Property and Equipment, Net (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Property, Plant and Equipment [Abstract] | ' | ' | ' |
Depreciation | $1,732,035 | $2,838,031 | $3,037,681 |
Note_12_Property_and_Equipment3
Note 12 - Property and Equipment, Net (Details) - Property and Equipment (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and Equipment, Gross | $20,471,563 | $19,359,261 |
Less: accumulated depreciation | -16,603,296 | -14,445,147 |
3,868,267 | 4,914,114 | |
Technology Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and Equipment, Gross | 10,299,529 | 9,605,535 |
Computer Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and Equipment, Gross | 1,840,958 | 1,911,447 |
Furniture and Fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and Equipment, Gross | 3,548,706 | 3,200,237 |
Vehicles [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and Equipment, Gross | 609,345 | 731,672 |
Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and Equipment, Gross | $4,173,025 | $3,910,370 |
Note_13_Acquired_Intangible_As2
Note 13 - Acquired Intangible Assets, Net (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Disclosure Text Block [Abstract] | ' | ' | ' |
Amortization of Intangible Assets | $432,957 | $224,430 | $444,292 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 677,532 | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 677,532 | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 677,532 | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 670,031 | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 3,546,395 | ' | ' |
Impairment of Intangible Assets (Excluding Goodwill) | ' | ' | $4,078,084 |
Note_13_Acquired_Intangible_As3
Note 13 - Acquired Intangible Assets, Net (Details) - Acquired Intangible Assets (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Intangible assets not subject to amortization: | ' | ' | ' |
Precious metal trading right | ' | ' | ($1,042,819) |
Intangible assets subject to amortization: | ' | ' | ' |
Gross Carrying Amount of Intangible Assets Subject to Amortization | 8,216,197 | 4,900,697 | ' |
Accumulated Amortization of Intangible Assets Subject to Amortization | -671,435 | -225,460 | ' |
Impairment of Intangible Assets Subject to Amortization | 7,544,762 | 4,675,237 | ' |
Precious Metal Trading Right [Member] | ' | ' | ' |
Intangible assets not subject to amortization: | ' | ' | ' |
Precious metal trading right | 1,295,740 | ' | ' |
Precious metal trading right | 1,295,740 | ' | ' |
Completed Technology [Member] | ' | ' | ' |
Intangible assets subject to amortization: | ' | ' | ' |
Gross Carrying Amount of Intangible Assets Subject to Amortization | 68,887 | 66,820 | ' |
Accumulated Amortization of Intangible Assets Subject to Amortization | -21,279 | -7,276 | ' |
Impairment of Intangible Assets Subject to Amortization | 47,608 | 59,544 | ' |
Customer Relationships [Member] | ' | ' | ' |
Intangible assets subject to amortization: | ' | ' | ' |
Gross Carrying Amount of Intangible Assets Subject to Amortization | 1,261,297 | ' | ' |
Accumulated Amortization of Intangible Assets Subject to Amortization | -72,767 | ' | ' |
Impairment of Intangible Assets Subject to Amortization | 1,188,530 | ' | ' |
Securities Consulting License And Related Trademarks [Member] | ' | ' | ' |
Intangible assets subject to amortization: | ' | ' | ' |
Gross Carrying Amount of Intangible Assets Subject to Amortization | 5,590,273 | 4,833,877 | ' |
Accumulated Amortization of Intangible Assets Subject to Amortization | -577,389 | -218,184 | ' |
Impairment of Intangible Assets Subject to Amortization | $5,012,884 | $4,615,693 | ' |
Note_14_Goodwill_Details
Note 14 - Goodwill (Details) (USD $) | 12 Months Ended |
Dec. 31, 2011 | |
Disclosure Text Block Supplement [Abstract] | ' |
Goodwill, Impairment Loss | $13,463,224 |
Note_14_Goodwill_Details_Chang
Note 14 - Goodwill (Details) - Changes in Goodwill (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Jul. 31, 2013 | Dec. 31, 2013 | Jul. 31, 2013 | |
Precious Metal Trading [Member] | Precious Metal Trading [Member] | Investment Advisory Services [Member] | Investment Advisory Services [Member] | Investment Advisory Services [Member] | Investment Advisory Services [Member] | Investment Advisory Services [Member] | Institutional Subscription Service [Member] | Institutional Subscription Service [Member] | Hong Kong [Member] | Southern China [Member] | Eastern China [Member] | Northern China [Member] | Exchange Difference [Member] | CFO Tahoe [Member] | CFO Tahoe [Member] | Champion Connection [Member] | Champion Connection [Member] | CFO Netinfo [Member] | CFO Netinfo [Member] | |||
CFO Tahoe [Member] | Exchange Difference [Member] | Champion Connection [Member] | CFO Netinfo [Member] | Champion Connection [Member] | ||||||||||||||||||
Goodwill [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | $3,049,281 | $12,949,587 | ' | ' | ' | ' | ' | $3,049,281 | ' | ' | $1,676,490 | $1,269,520 | $2,400,576 | $8,892,249 | $387,242 | ' | ' | $7,056,338 | ' | $6,544,150 | ' | $168,887 |
Accumulated impairment loss | ' | -13,463,224 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,267,826 | -2,507,499 | -9,284,338 | -403,561 | ' | ' | ' | ' | ' | ' | ' |
Exchange difference | 155,781 | 513,637 | ' | 59,141 | 16,213 | ' | ' | 96,640 | ' | ' | ' | -1,694 | 106,923 | 392,089 | 16,319 | 16,213 | ' | ' | ' | ' | ' | ' |
Balance | 16,974,437 | 3,049,281 | ' | 7,115,479 | ' | ' | ' | 8,182,468 | 3,049,281 | ' | 1,676,490 | ' | ' | ' | ' | ' | ' | 7,056,338 | ' | 6,544,150 | ' | 168,887 |
Acquisition | ' | $3,033,068 | $7,056,338 | ' | ' | $4,867,660 | $168,887 | ' | $3,033,068 | $1,676,490 | ' | ' | ' | ' | ' | ' | $7,056,338 | ' | $6,544,150 | ' | $168,887 | ' |
Note_15_Bank_Facilities_and_Sh1
Note 15 - Bank Facilities and Short-Term Loans (Details) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2013 | Jun. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2012 | Jun. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | |
Term Loan [Member] | Revolving Loan [Member] | Term and Revolving Loan [Member] | Second Term Loan [Member] | Second Revolving Loan [Member] | Second Term And Revolving Loans [Member] | Used to Secure Standy Letter of Credit to Guarantee Credit Facility [Member] | Used to Secure Standy Letter of Credit To Guarantee Second Credit Facility [Member] | ||
Note 15 - Bank Facilities and Short-Term Loans (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | ' | $7,095,584 | $5,676,467 | ' | $6,450,531 | $6,321,520 | ' | ' | ' |
Restricted Cash and Cash Equivalents | ' | ' | ' | ' | ' | ' | ' | 14,398,218 | 14,465,198 |
Line of Credit Facility, Amount Outstanding | ' | ' | ' | 7,095,584 | ' | ' | 6,450,531 | ' | ' |
Debt Instrument, Basis Spread on Variable Rate | ' | ' | ' | 2.40% | ' | ' | 2.40% | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | ' | ' | ' | 0.11% | ' | ' | 0.11% | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | ' | ' | ' | 0.33% | ' | ' | 0.33% | ' | ' |
Repayments of Debt | $13,546,115 | ' | ' | ' | ' | ' | ' | ' | ' |
Note_16_Accounts_Payable_Detai
Note 16 - Accounts Payable (Details) - Accounts Payable (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Note 16 - Accounts Payable (Details) - Accounts Payable [Line Items] | ' | ' |
Accounts payable | $12,572,723 | $804,851 |
Others | 154,656 | 220,244 |
Amount Due to Customers of H.K. Brokerage Business [Member] | ' | ' |
Note 16 - Accounts Payable (Details) - Accounts Payable [Line Items] | ' | ' |
Accounts payable | 7,039,937 | 584,607 |
Amount Due to Sales Agents [Member] | ' | ' |
Note 16 - Accounts Payable (Details) - Accounts Payable [Line Items] | ' | ' |
Accounts payable | 4,202,811 | ' |
Consulting Fees [Member] | ' | ' |
Note 16 - Accounts Payable (Details) - Accounts Payable [Line Items] | ' | ' |
Accounts payable | $1,175,319 | ' |
Note_17_Accrued_Expenses_and_O2
Note 17 - Accrued Expenses and Other Current Liabilities (Details) - Accrued Expenses and Other Current Liabilities (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Accrued Expenses and Other Current Liabilities [Abstract] | ' | ' |
Accrued bonus | $3,687,135 | $2,026,268 |
Accrued refund of subscription fees | ' | 364,445 |
Accrued professional service fees | 676,758 | 718,863 |
Withholding individual income tax-option exercise | 61,683 | 61,683 |
Value added taxes and other taxes payable | 915,601 | 242,861 |
Accrued raw data cost | 565,747 | 364,889 |
Accrued welfare benefits | 117,392 | 68,717 |
Acquisition consideration payable | 2,221,680 | ' |
Accrued sales service fees | 213,314 | 115,369 |
Others | 1,237,152 | 1,425,535 |
$9,696,462 | $5,388,630 |
Note_18_Stock_Options_and_Nonv2
Note 18 - Stock Options and Nonvested Shares (Details) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Jul. 31, 2007 | Dec. 31, 2010 | Nov. 30, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Employee Stock Option [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Stock Options to Non-Employees [Member] | Nonvested Ordinary Shares [Member] | Nonvested Ordinary Shares [Member] | Nonvested Shares - iSTAR Financial Holdings' Equity Interest [Member] | Nonvested Shares - iSTAR Financial Holdings' Equity Interest [Member] | Nonvested Shares - iSTAR Financial Holdings' Equity Interest [Member] | Nonvested Shares - iSTAR Financial Holdings' Equity Interest [Member] | 2004 Stock Incentive Plan [Member] | 2004 Stock Incentive Plan [Member] | 2004 Stock Incentive Plan [Member] | 2004 Stock Incentive Plan [Member] | 2004 Stock Incentive Plan [Member] | ||||
2004 Stock Incentive Plan [Member] | 2004 Stock Incentive Plan [Member] | 2004 Stock Incentive Plan [Member] | 2004 Stock Incentive Plan [Member] | 2004 Stock Incentive Plan [Member] | 2007 Equity Incentive Plan [Member] | 2007 Equity Incentive Plan [Member] | 2010 Equity Incentive Plan of iSTAR Financial Holdings [Member] | 2010 Equity Incentive Plan of iSTAR Financial Holdings [Member] | 2010 Equity Incentive Plan of iSTAR Financial Holdings [Member] | 2010 Equity Incentive Plan of iSTAR Financial Holdings [Member] | Two Officers [Member] | Consultants and Strategic Advisers [Member] | |||||||
Two Officers [Member] | Consultants and Strategic Advisers [Member] | ||||||||||||||||||
Note 18 - Stock Options and Nonvested Shares (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | $3,035,122 | $802,725 | $1,538,802 | ' | $2,539,274 | $207,678 | $945,868 | ' | ' | ' | ' | $495,848 | $595,049 | $592,934 | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,688,488 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 14,000,000 | ' | 285,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,300,000 | 6,260,000 | 7,740,000 | ' | 285,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | ' | '2 years | '3 years | ' | '3 years | '2 years | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.17 | ' | $0.70 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 208,895 | 1,360 | 5,740 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 141,549 | 663,519 | 1,705,153 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,240 | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4,839,329 | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | 10,558,493 | ' | 1,500 | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,658,048 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Nonvested Shares Granted, Percentage of Total Equity Interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Nonvested Shares Granted, Percentage of Earnings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,188 | ' | ' | ' | ' | ' | ' | ' | ' |
Note_18_Stock_Options_and_Nonv3
Note 18 - Stock Options and Nonvested Shares (Details) - Black-Scholes Option Pricing Model Fair Value of Employee Options Assumptions | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2011 | |
Note 18 - Stock Options and Nonvested Shares (Details) - Black-Scholes Option Pricing Model Fair Value of Employee Options Assumptions [Line Items] | ' | ' |
Weighted average expected option life (years) | ' | '6 years 51 days |
Minimum [Member] | ' | ' |
Note 18 - Stock Options and Nonvested Shares (Details) - Black-Scholes Option Pricing Model Fair Value of Employee Options Assumptions [Line Items] | ' | ' |
Weighted average risk free rate of return | 1.40% | 2.02% |
Weighted average expected option life (years) | '6 years 51 days | ' |
Expected volatility rate | 76.67% | 72.96% |
Maximum [Member] | ' | ' |
Note 18 - Stock Options and Nonvested Shares (Details) - Black-Scholes Option Pricing Model Fair Value of Employee Options Assumptions [Line Items] | ' | ' |
Weighted average risk free rate of return | ' | 2.24% |
Expected volatility rate | ' | 73.75% |
Note_18_Stock_Options_and_Nonv4
Note 18 - Stock Options and Nonvested Shares (Details) - Summary of the Stock Option Activity (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Summary of the Stock Option Activity [Abstract] | ' | ' | ' |
Outstanding at beginning of year | 11,144,998 | 11,994,698 | 13,103,238 |
Outstanding at beginning of year | $0.93 | $0.96 | $0.99 |
Granted | 14,000,000 | ' | 285,000 |
Granted | $0.25 | ' | $1.08 |
Exercised | -190,250 | -20,000 | -47,500 |
Exercised | $0.16 | $0.16 | $0.47 |
Forfeited | -449,400 | -829,700 | -1,346,040 |
Forfeited | $1.25 | $1.35 | $1.28 |
Outstanding at end of year | 24,505,348 | 11,144,998 | 11,994,698 |
Outstanding at end of year | $0.54 | $0.93 | $0.96 |
Shares exercisable at end of year | 10,500,548 | 10,856,838 | 10,588,058 |
Shares exercisable at end of year | $0.93 | $0.92 | $0.91 |
Note_18_Stock_Options_and_Nonv5
Note 18 - Stock Options and Nonvested Shares (Details) - Summary of Information With Respect to Stock Options Outstanding (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Number outstanding | 24,505,348 | 11,144,998 | 11,994,698 | 13,103,238 |
Weighted average remaining contractual life, outstanding | '6 years 215 days | ' | ' | ' |
Weighted average exercise price, outstanding (in Dollars per share) | $0.54 | $0.93 | $0.96 | $0.99 |
Aggregate intrinsic value, outstanding (in Dollars) | $17,961,444 | ' | ' | ' |
Number exercisable | 10,500,548 | 10,856,838 | 10,588,058 | ' |
Weighted average exercise price, exercisable (in Dollars per share) | $0.93 | $0.92 | $0.91 | ' |
Aggregate intrinsic value, exercisable (in Dollars) | $3,847,601 | ' | ' | ' |
$0.16 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Stock option exercise price (in Dollars per share) | $0.16 | ' | ' | ' |
Number outstanding | 2,620,488 | ' | ' | ' |
Number exercisable | 2,620,488 | ' | ' | ' |
$1.04 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Stock option exercise price (in Dollars per share) | $1.04 | ' | ' | ' |
Number outstanding | 200,000 | ' | ' | ' |
Number exercisable | 200,000 | ' | ' | ' |
$1.31 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Stock option exercise price (in Dollars per share) | $1.31 | ' | ' | ' |
Number outstanding | 1,177,700 | ' | ' | ' |
Number exercisable | 1,177,700 | ' | ' | ' |
$1.32 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Stock option exercise price (in Dollars per share) | $1.32 | ' | ' | ' |
Number outstanding | 27,000 | ' | ' | ' |
Number exercisable | 27,000 | ' | ' | ' |
$1.12 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Stock option exercise price (in Dollars per share) | $1.12 | ' | ' | ' |
Number outstanding | 400,000 | ' | ' | ' |
Number exercisable | 400,000 | ' | ' | ' |
$1.16 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Stock option exercise price (in Dollars per share) | $1.16 | ' | ' | ' |
Number outstanding | 200,000 | ' | ' | ' |
Number exercisable | 200,000 | ' | ' | ' |
$1.07 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Stock option exercise price (in Dollars per share) | $1.07 | ' | ' | ' |
Number outstanding | 700,000 | ' | ' | ' |
Number exercisable | 700,000 | ' | ' | ' |
$0.96 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Stock option exercise price (in Dollars per share) | $0.96 | ' | ' | ' |
Number outstanding | 2,386,000 | ' | ' | ' |
Number exercisable | 2,386,000 | ' | ' | ' |
$1.32 - Second Group [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Stock option exercise price (in Dollars per share) | $1.32 | ' | ' | ' |
Number outstanding | 73,600 | ' | ' | ' |
Number exercisable | 73,600 | ' | ' | ' |
$1.26 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Stock option exercise price (in Dollars per share) | $1.26 | ' | ' | ' |
Number outstanding | 493,560 | ' | ' | ' |
Number exercisable | 493,560 | ' | ' | ' |
$1.65 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Stock option exercise price (in Dollars per share) | $1.65 | ' | ' | ' |
Number outstanding | 10,000 | ' | ' | ' |
Number exercisable | 10,000 | ' | ' | ' |
$1.426 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Stock option exercise price (in Dollars per share) | $1.43 | ' | ' | ' |
Number outstanding | 2,137,000 | ' | ' | ' |
Number exercisable | 2,137,000 | ' | ' | ' |
$1.43 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Stock option exercise price (in Dollars per share) | $1.43 | ' | ' | ' |
Number outstanding | 50,000 | ' | ' | ' |
Number exercisable | 50,000 | ' | ' | ' |
$1.14 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Stock option exercise price (in Dollars per share) | $0.87 | ' | ' | ' |
Number outstanding | 30,000 | ' | ' | ' |
Number exercisable | 25,200 | ' | ' | ' |
$0.87 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Stock option exercise price (in Dollars per share) | $0.25 | ' | ' | ' |
Number outstanding | 14,000,000 | ' | ' | ' |
Note_19_Income_Taxes_Details
Note 19 - Income Taxes (Details) (USD $) | 12 Months Ended | 24 Months Ended | 12 Months Ended | 36 Months Ended | 12 Months Ended | 24 Months Ended | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | |
Enterprise Qualifying As A "High and New Technology Enterprise" ("the HNTE") [Member] | "Software Enterprises" - Preferential Rate For Three Years [Member] | Standard EIT Rate [Member] | Preferential Tax Rate - Software Enterprises [Member] | Preferential Tax Rate - Software Enterprises [Member] | Preferential Tax Rate - Software Enterprises [Member] | Preferential Tax Rate - Software Enterprises [Member] | Transition Tax Rate - Transition Rules of The EIT Law [Member] | Transition Tax Rate - Transition Rules of The EIT Law [Member] | Transition Tax Rate - Transition Rules of The EIT Law [Member] | Transition Tax Rate - Transition Rules of The EIT Law [Member] | Transition Tax Rate - Transition Rules of The EIT Law [Member] | Transition Tax Rate - Transition Rules of The EIT Law [Member] | Preferential Tax Rate - HNTE [Member] | Preferential Tax Rate - HNTE [Member] | Transition Tax Rate - HNTE; Transition Rules of EIT Law [Member] | Preferential Tax Rate - HNTE; Transition Rules of EIT Law [Member] | Company and Its Subsidiaries Registered Outside the PRC, But Deemed a Resident Enterprise [Member] | Hong Kong [Member] | PRC [Member] | Dividends Paid By PRC Subsidiaries [Member] | Amount Avoided Due to Tax Holiday and Special Tax Concessions [Member] | Amount Avoided Due to Tax Holiday and Special Tax Concessions [Member] | Amount Avoided Due to Tax Holiday and Special Tax Concessions [Member] | Company's Subsidiary Located in the PRC [Member] | Company's VIEs and Its VIEs' Subsidiaries Located in The PRC [Member] | ||||
PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | PRC [Member] | ||||||||||||
bCFO Successb [Member] | "CFO Qicheng" [Member] | "CFO Shenzhen Shangtong" [Member] | bCFO Zhengning" [Member] | "CFO Stockstar" [Member] | "CFO Stockstar" [Member] | "CFO Jujin" [Member] | "CFO Jujin" [Member] | "CFO Newrand" [Member] | "CFO Newrand" [Member] | "CFO Software" [Member] | "CFO Meining" [Member] | "CFO Genius" [Member] | "CFO Genius" [Member] | ||||||||||||||||
Note 19 - Income Taxes (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Profit Tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16.50% | ' | ' | ' | ' | ' | ' | ' |
Enterprise Income Tax ("EIT") | ' | ' | ' | 15.00% | 12.50% | 25.00% | 12.50% | 12.50% | 12.50% | 12.00% | 25.00% | 24.00% | 25.00% | 24.00% | 25.00% | 24.00% | 15.00% | 15.00% | 24.00% | 15.00% | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' |
Income Tax Calculation, "Deemed-Profit Method," Percentage of Gross Revenues | 2.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Tax Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends, Withholding Tax, Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' |
Retained Earnings (Accumulated Deficit) (in Dollars) | ($20,875,337) | ($12,302,209) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($5,372,126) | ' |
Retained Earnings, Unappropriated (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,748,482 |
Deferred Tax Assets, Valuation Allowance (in Dollars) | 13,188,179 | 9,662,474 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration (in Dollars) | 42,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration (in Dollars) | 16,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Tax Expense, Amount Avoided (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $31,910 | $39,026 | $2,155,424 | ' | ' |
Impact Of The Tax Holidays On Basic Net Income Per Ordinary Share (in Dollars per share) | $0 | $0 | $0.02 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note_19_Income_Taxes_Details_I
Note 19 - Income Taxes (Details) - Income Tax (Provision) Benefit (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Note 19 - Income Taxes (Details) - Income Tax (Provision) Benefit [Line Items] | ' | ' | ' |
Current | ($478,966) | ($315,197) | ($662,114) |
Deferred | 357,014 | -568,521 | -3,276,319 |
Total | -100,058 | -883,718 | -3,938,433 |
Exchange Difference [Member] | ' | ' | ' |
Note 19 - Income Taxes (Details) - Income Tax (Provision) Benefit [Line Items] | ' | ' | ' |
Deferred | $378,908 | ($568,521) | ($3,276,319) |
Note_19_Income_Taxes_Details_T
Note 19 - Income Taxes (Details) - The Principal Components of Deferred Income Taxes Were As Follows (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Current deferred tax assets: | ' | ' |
Accrued expenses and other liabilities | $583,849 | $313,572 |
8,751,705 | 8,302,229 | |
5,645,175 | 1,952,644 | |
Less: valuation allowance | -8,657,442 | -8,101,455 |
Total non-current deferred tax assets | 94,263 | 200,774 |
Current deferred tax liabilities: | ' | ' |
Account receivable and other assets | -325,340 | -140,074 |
Total current deferred tax liabilities | -325,340 | -140,074 |
Non-current deferred tax liabilities: | ' | ' |
Intangible assets | -1,886,190 | -1,168,809 |
Total non-current deferred tax liabilities | -1,886,190 | -1,168,809 |
Less: valuation allowance | -4,530,737 | -1,561,019 |
Total current deferred tax assets | 1,114,438 | 391,625 |
Current [Member] | ' | ' |
Current deferred tax assets: | ' | ' |
Deferred revenue | 618,648 | 689,596 |
Net operating loss carrying forwards | 4,442,678 | 949,476 |
Non-Current [Member] | ' | ' |
Current deferred tax assets: | ' | ' |
Deferred revenue | 381,522 | 200,774 |
Net operating loss carrying forwards | $8,370,153 | $8,101,455 |
Note_19_Income_Taxes_Details_R
Note 19 - Income Taxes (Details) - Reconciliation Between Total Income Tax Expense (Benefit) and The Amount Computed By Applying The PRC EIT Statutory Rate To Income Before Income Taxes (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Reconciliation Between Total Income Tax Expense (Benefit) and The Amount Computed By Applying The PRC EIT Statutory Rate To Income Before Income Taxes [Abstract] | ' | ' | ' |
Loss before tax | ($8,073,832) | ($11,076,429) | ($15,525,522) |
Income tax expense calculated at 25% | -2,018,458 | -2,769,107 | -3,881,381 |
Effect of tax holiday | -266,396 | 2,206,739 | -2,155,424 |
Effect of income tax rate difference in other jurisdictions | 305,505 | 250,412 | -203,633 |
Non-deductible expenses | 267,748 | 851,680 | 4,950,474 |
Non-taxable income | -439,861 | -2,122 | -40,165 |
Change in valuation allowance | 2,251,520 | 346,116 | 5,268,562 |
Income tax expense (benefit | $100,058 | $883,718 | $3,938,433 |
Note_19_Income_Taxes_Details_R1
Note 19 - Income Taxes (Details) - Reconciliation Between Total Income Tax Expense (Benefit) and The Amount Computed By Applying The PRC EIT Statutory Rate To Income Before Income Taxes (Parentheticals) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Reconciliation Between Total Income Tax Expense (Benefit) and The Amount Computed By Applying The PRC EIT Statutory Rate To Income Before Income Taxes [Abstract] | ' | ' | ' |
Income tax expense calculated, percentage | 25.00% | 25.00% | 25.00% |
Note_20_Net_Income_Loss_Per_Sh2
Note 20 - Net Income (Loss) Per Share (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Employee Stock Option [Member] | ' | ' | ' |
Note 20 - Net Income (Loss) Per Share (Details) [Line Items] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 11,144,998 | 24,505,348 | 11,994,698 |
Nonvested [Member] | ' | ' | ' |
Note 20 - Net Income (Loss) Per Share (Details) [Line Items] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,900,445 | 1,900,445 | 1,900,445 |
Note_20_Net_Income_Loss_Per_Sh3
Note 20 - Net Income (Loss) Per Share (Details) - Computation of Basic and Diluted Income (Loss) Per Share (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Computation of Basic and Diluted Income (Loss) Per Share [Abstract] | ' | ' | ' |
Net loss attributable to China Finance Online Co. Limited | ($8,573,128) | ($11,855,207) | ($19,326,909) |
Weighted average ordinary shares outstanding used in computing basic net income per share | 109,019,513 | 108,983,249 | 108,961,642 |
Weighted average ordinary shares outstanding used in computing diluted net income per share | 109,019,513 | 108,983,249 | 108,961,642 |
Net loss per share attributable to China Finance Online Co. Limited | ' | ' | ' |
- basic | ($0.08) | ($0.11) | ($0.18) |
- diluted | ($0.08) | ($0.11) | ($0.18) |
Note_21_Mainland_China_Contrib1
Note 21 - Mainland China Contribution Plan and Profit Appropriation (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' |
Defined Contribution Plan, Cost Recognized | $2,710,481 | $3,340,484 | $4,788,471 |
Note_22_Noncontrolling_Interes2
Note 22 - Noncontrolling Interests (Details) - Noncontrolling Interests (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Precious Metal Trading Services [Member] | Precious Metal Trading Services [Member] | Precious Metal Trading Services [Member] | Investment Advisory Services [Member] | Investment Advisory Services [Member] | Investment Advisory Services [Member] | Investment Advisory Services [Member] | Investment Advisory Services [Member] | Institutional Subscription Services [Member] | Institutional Subscription Services [Member] | iSTAR Financial Holdings Brokerage Services [Member] | iSTAR Financial Holdings Brokerage Services [Member] | iSTAR Financial Holdings Brokerage Services [Member] | Noncontrolling Interest Not Including Additional Paid In Capital [Member] | CFO East Win [Member] | CFO East Win [Member] | CFO Tahoe [Member] | CFO Tahoe [Member] | Champion Connection [Member] | Noncontrolling Interest Not Including Additional Paid In Capital [Member] | ||||
CFO Tahoe [Member] | Noncontrolling Interest Not Including Additional Paid In Capital [Member] | CFO East Win [Member] | CFO East Win [Member] | Champion Connection [Member] | Champion Connection [Member] | CFO East Win [Member] | |||||||||||||||||
Redeemable Noncontrolling Interest [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance | $751,368 | ($104,908) | ($56,802) | ' | ' | ' | ' | ' | ' | $688,062 | ' | ' | ' | $63,306 | ($104,908) | ($56,802) | ' | ' | ' | ' | ' | ' | ' |
Acquisitions | ' | ' | ' | 9,508,295 | ' | ' | 586,954 | 871,960 | 1,760,861 | ' | ' | 938,112 | ' | ' | ' | ' | 586,954 | 871,960 | -871,960 | 9,508,295 | -9,508,295 | 2,698,973 | ' |
Changes in ownership of subsidiaries | -778,815 | ' | ' | ' | ' | ' | ' | ' | ' | 289,656 | ' | ' | -1,068,471 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital injection from noncontrolling interests | 1,397,616 | ' | ' | ' | 1,405,963 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,405,963 |
Share-based compensation | 74,376 | 89,256 | 88,940 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 74,376 | 89,256 | 88,940 | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 399,238 | -104,940 | -137,046 | ' | ' | 1,056,322 | ' | ' | ' | -419,202 | -183,898 | ' | -64,585 | -173,297 | 78,958 | -137,046 | ' | ' | ' | ' | ' | ' | ' |
Balance | $14,646,352 | $751,368 | ($104,908) | ' | ' | $11,970,580 | ' | ' | ' | $2,906,331 | $688,062 | ' | ($194,944) | ($35,615) | $63,306 | ($104,908) | ' | ' | ' | ' | ' | ' | ' |
Note_23_Commitments_and_Contin2
Note 23 - Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' |
Operating Leases, Rent Expense | $4,808,894 | $3,941,137 | $3,286,547 |
Note_23_Commitments_and_Contin3
Note 23 - Commitments and Contingencies (Details) - Future Minimum Payments Under Non-Cancelable Operating Leases and Data Purchase Agreements (Non-Cancelable Operating Leases and Data Purchase Agreements [Member], USD $) | Dec. 31, 2013 |
Non-Cancelable Operating Leases and Data Purchase Agreements [Member] | ' |
Note 23 - Commitments and Contingencies (Details) - Future Minimum Payments Under Non-Cancelable Operating Leases and Data Purchase Agreements [Line Items] | ' |
2014 | $8,194,130 |
2015 | 4,814,136 |
2016 | 1,753,364 |
Total | $14,761,630 |
Note_24_Segment_and_Geographic2
Note 24 - Segment and Geographic Information (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Segment Reporting [Abstract] | ' |
Number of Operating Segments | 3 |
Note_24_Segment_and_Geographic3
Note 24 - Segment and Geographic Information (Details) - Operations of the Group's Operating Segments (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net revenues | $52,738,077 | $29,599,486 | $53,008,065 |
Cost of revenues | 10,570,070 | 8,089,394 | 8,770,617 |
General and administrative | 15,210,102 | 11,387,381 | 11,227,632 |
Product development | 9,032,327 | 10,735,570 | 13,313,635 |
Sales and marketing | 30,588,236 | 13,072,017 | 21,337,799 |
Operating expenses | 54,830,665 | 35,194,968 | 63,420,374 |
Government subsidies | 11,187 | 75,883 | 265,016 |
Income (loss) from operations | -12,651,471 | -13,608,993 | -18,917,910 |
Assets | 133,492,735 | 121,370,995 | 159,976,683 |
Operating Segments [Member] | Precious Metal Trading Services [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net revenues | 30,124,245 | ' | ' |
Sales and marketing | 22,015,190 | ' | ' |
Operating expenses | 23,886,321 | ' | ' |
Assets | 27,791,654 | ' | ' |
Operating Segments [Member] | Subscription Services And Other Related Services [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net revenues | 21,656,482 | ' | ' |
Sales and marketing | 10,429,389 | ' | ' |
Operating expenses | 29,508,969 | ' | ' |
Assets | 80,844,211 | ' | ' |
Operating Segments [Member] | Brokerage Services in Hong Kong [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net revenues | 3,404,767 | ' | ' |
Sales and marketing | 591,074 | ' | ' |
Operating expenses | 3,882,792 | ' | ' |
Assets | 31,893,233 | ' | ' |
Operating Segments [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net revenues | 55,185,494 | ' | ' |
Sales and marketing | 33,035,653 | ' | ' |
Operating expenses | 57,278,082 | ' | ' |
Assets | 140,529,098 | ' | ' |
Intersubsegment Eliminations [Member] | Precious Metal Trading Services [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Operating expenses | -2,447,417 | ' | ' |
Intersubsegment Eliminations [Member] | Subscription Services And Other Related Services [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net revenues | -2,447,417 | ' | ' |
Assets | -7,036,363 | ' | ' |
Intersubsegment Eliminations [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net revenues | -2,447,417 | ' | ' |
Operating expenses | -2,447,417 | ' | ' |
Assets | -7,036,363 | ' | ' |
Precious Metal Trading Services [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net revenues | 30,124,245 | ' | ' |
Cost of revenues | 2,613,287 | ' | ' |
General and administrative | 1,087,048 | ' | ' |
Product development | 784,083 | ' | ' |
Operating expenses | 21,438,904 | ' | ' |
Income (loss) from operations | 6,072,054 | ' | ' |
Assets | 27,791,654 | ' | ' |
Subscription Services And Other Related Services [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net revenues | 19,209,065 | 25,781,724 | 49,468,401 |
Cost of revenues | 7,018,379 | 7,297,061 | 8,462,096 |
General and administrative | 10,831,336 | 8,515,833 | 8,319,593 |
Product development | 8,248,244 | 10,735,570 | 13,313,635 |
Sales and marketing | ' | 12,500,788 | 20,714,263 |
Operating expenses | 29,508,969 | 31,752,191 | 58,492,309 |
Government subsidies | 11,187 | 75,883 | 265,016 |
Income (loss) from operations | -17,307,096 | -13,191,645 | -17,220,988 |
Assets | 73,807,848 | 72,474,437 | 106,811,438 |
Brokerage Services in Hong Kong [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net revenues | 3,404,767 | 3,817,762 | 3,539,664 |
Cost of revenues | 938,404 | 792,333 | 308,521 |
General and administrative | 3,291,718 | 2,871,548 | 2,908,039 |
Sales and marketing | ' | 571,229 | 623,536 |
Operating expenses | 3,882,792 | 3,442,777 | 4,928,065 |
Income (loss) from operations | -1,416,429 | -417,348 | -1,696,922 |
Assets | $31,893,233 | $48,896,558 | $53,165,245 |
Note_24_Segment_and_Geographic4
Note 24 - Segment and Geographic Information (Details) - Operations of the Group's Operating Segments, Years 2011 and 2012 (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net revenues | $52,738,077 | $29,599,486 | $53,008,065 |
Cost of revenues | 10,570,070 | 8,089,394 | 8,770,617 |
General and administrative | 15,210,102 | 11,387,381 | 11,227,632 |
Product development | 9,032,327 | 10,735,570 | 13,313,635 |
Sales and marketing | 30,588,236 | 13,072,017 | 21,337,799 |
Loss from impairment of intangible assets | ' | ' | 4,078,084 |
Loss from impairment of goodwill | ' | ' | 13,463,224 |
Total operating expenses | 54,830,665 | 35,194,968 | 63,420,374 |
Government subsidies | 11,187 | 75,883 | 265,016 |
Loss from operations | -12,651,471 | -13,608,993 | -18,917,910 |
Total assets | 133,492,735 | 121,370,995 | 159,976,683 |
Subscription Services And Other Related Services [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net revenues | 19,209,065 | 25,781,724 | 49,468,401 |
Cost of revenues | 7,018,379 | 7,297,061 | 8,462,096 |
General and administrative | 10,831,336 | 8,515,833 | 8,319,593 |
Product development | 8,248,244 | 10,735,570 | 13,313,635 |
Sales and marketing | ' | 12,500,788 | 20,714,263 |
Loss from impairment of intangible assets | ' | ' | 3,949,420 |
Loss from impairment of goodwill | ' | ' | 12,195,398 |
Total operating expenses | 29,508,969 | 31,752,191 | 58,492,309 |
Government subsidies | 11,187 | 75,883 | 265,016 |
Loss from operations | -17,307,096 | -13,191,645 | -17,220,988 |
Total assets | 73,807,848 | 72,474,437 | 106,811,438 |
Brokerage Services in Hong Kong [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net revenues | 3,404,767 | 3,817,762 | 3,539,664 |
Cost of revenues | 938,404 | 792,333 | 308,521 |
General and administrative | 3,291,718 | 2,871,548 | 2,908,039 |
Sales and marketing | ' | 571,229 | 623,536 |
Loss from impairment of intangible assets | ' | ' | 128,664 |
Loss from impairment of goodwill | ' | ' | 1,267,826 |
Total operating expenses | 3,882,792 | 3,442,777 | 4,928,065 |
Loss from operations | -1,416,429 | -417,348 | -1,696,922 |
Total assets | $31,893,233 | $48,896,558 | $53,165,245 |
Note_24_Segment_and_Geographic5
Note 24 - Segment and Geographic Information (Details) - The Group Derives Revenue from External Customers for Each of the Following Services (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' |
Total revenue from external customers | $52,738,077 | $29,599,486 | $53,008,065 |
Precious Metals Trading Services [Member] | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' |
Total revenue from external customers | 30,124,245 | ' | ' |
Financial Service Revenue [Member] | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' |
Total revenue from external customers | 11,122,400 | 20,826,995 | 43,100,486 |
Brokerage Services in Hong Kong [Member] | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' |
Total revenue from external customers | 3,404,767 | 3,817,762 | 3,539,664 |
Advertising Revenue [Member] | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' |
Total revenue from external customers | 6,799,109 | 4,848,622 | 6,243,748 |
Others [Member] | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' |
Total revenue from external customers | $1,287,556 | $106,107 | $124,167 |
Note_25_Statutory_Reserves_and1
Note 25 - Statutory Reserves and Restricted Net Assets (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Note 25 - Statutory Reserves and Restricted Net Assets (Details) [Line Items] | ' | ' | ' |
Annual Appropriations, General Reserve Fund, Percent of After-Tax Profit, Minimum | 10.00% | ' | ' |
Reserve Funds, Appropriations | $284,114 | $30,658 | $118,265 |
Net Assets, Not Available For Distribution | 90,417,250 | ' | ' |
Statutory Reserves [Member] | ' | ' | ' |
Note 25 - Statutory Reserves and Restricted Net Assets (Details) [Line Items] | ' | ' | ' |
Retained Earnings, Appropriated | $6,140,514 | $5,856,400 | ' |
Schedule_I_Financial_Informati2
Schedule I - Financial Information of Parent Company (Details) - Financial Information of Parent Company - Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | $36,370,950 | $40,905,996 | $64,641,092 | $106,773,478 |
Prepaid expenses and other current assets | 3,306,679 | 2,780,347 | ' | ' |
Total current assets | 95,879,882 | 106,690,317 | ' | ' |
Rental deposits | 1,115,152 | 751,627 | ' | ' |
Total assets | 133,492,735 | 121,370,995 | 159,976,683 | ' |
Current liabilities: | ' | ' | ' | ' |
Accrued expenses and other current liabilities | 9,696,462 | 5,388,630 | ' | ' |
Total current liabilities | 39,203,218 | 36,330,527 | ' | ' |
Shareholders' equity | ' | ' | ' | ' |
Ordinary shares ($0.00013 par value; 500,000,000 shares authorized; 110,955,383 and 111,145,633 shares issued and outstanding as of December 31, 2012 and 2013, respectively) | 14,353 | 14,328 | ' | ' |
Additional paid-in capital | 84,346,266 | 81,163,244 | ' | ' |
Accumulated other comprehensive income | 12,285,615 | 11,089,820 | ' | ' |
Retained deficits | -20,875,337 | -12,302,209 | ' | ' |
Total shareholders' equity | 75,770,897 | 79,965,183 | ' | ' |
Total liabilities and shareholders' equity | 133,492,735 | 121,370,995 | ' | ' |
Parent Company [Member] | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 721,271 | 2,941,180 | 2,703,639 | 2,808,010 |
Amounts due from subsidiaries, VIEs and VIEbs subsidiaries | 6,807,051 | 3,309,214 | ' | ' |
Prepaid expenses and other current assets | 167,562 | 104,116 | ' | ' |
Dividends receivable | 18,917,296 | 19,463,347 | ' | ' |
Total current assets | 26,613,180 | 25,817,857 | ' | ' |
Investments in subsidiaries, VIEs and VIEbs subsidiaries | 60,283,341 | 63,446,732 | ' | ' |
Rental deposits | 66,893 | 66,622 | ' | ' |
Total assets | 86,963,414 | 89,331,211 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Accrued expenses and other current liabilities | 286,041 | 251,649 | ' | ' |
Amounts due to subsidiaries, VIEs and VIEbs subsidiaries | 10,906,476 | 9,114,380 | ' | ' |
Total current liabilities | 11,192,517 | 9,366,029 | ' | ' |
Shareholders' equity | ' | ' | ' | ' |
Ordinary shares ($0.00013 par value; 500,000,000 shares authorized; 110,955,383 and 111,145,633 shares issued and outstanding as of December 31, 2012 and 2013, respectively) | 14,353 | 14,328 | ' | ' |
Additional paid-in capital | 84,346,266 | 81,163,243 | ' | ' |
Accumulated other comprehensive income | 12,285,615 | 11,089,820 | ' | ' |
Retained deficits | -20,875,337 | -12,302,209 | ' | ' |
Total shareholders' equity | 75,770,897 | 79,965,182 | 90,941,149 | 105,899,905 |
Total liabilities and shareholders' equity | $86,963,414 | $89,331,211 | ' | ' |
Schedule_I_Financial_Informati3
Schedule I - Financial Information of Parent Company (Details) - Financial Information of Parent Company - Balance Sheets (Parentheticals) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Balance Sheet Statements, Captions [Line Items] | ' | ' |
Ordinary shares, par value (in Dollars per share) | $0.00 | $0.00 |
Ordinary shares, shares authorized | 500,000,000 | 500,000,000 |
Ordinary shares, shares issued | 111,145,633 | 110,955,383 |
Ordinary shares, shares outstanding | 111,145,633 | 110,955,383 |
Parent Company [Member] | ' | ' |
Condensed Balance Sheet Statements, Captions [Line Items] | ' | ' |
Ordinary shares, par value (in Dollars per share) | $0.00 | $0.00 |
Ordinary shares, shares authorized | 500,000,000 | 500,000,000 |
Ordinary shares, shares issued | 111,145,633 | 110,955,383 |
Ordinary shares, shares outstanding | 111,145,633 | 110,955,383 |
Schedule_I_Financial_Informati4
Schedule I - Financial Information of Parent Company (Details) - Financial Information of Parent Company - Comprehensive Income (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Condensed Income Statements, Captions [Line Items] | ' | ' | ' |
Cost of revenues | $10,570,070 | $8,089,394 | $8,770,617 |
Gross loss | 42,168,007 | 21,510,092 | 44,237,448 |
General and administrative | 15,210,102 | 11,387,381 | 11,227,632 |
Product development | 9,032,327 | 10,735,570 | 13,313,635 |
Sales and marketing | 30,588,236 | 13,072,017 | 21,337,799 |
Stock-based compensation | 3,035,122 | 802,725 | 1,538,802 |
Loss from impairment of goodwill | ' | ' | 13,463,224 |
Total operating expenses | 54,830,665 | 35,194,968 | 63,420,374 |
Interest income | 1,340,563 | 3,177,544 | 2,744,665 |
Equity in deficits of subsidiaries, VIEs and VIEbs subsidiaries | 2,773,839 | ' | ' |
Exchange gain, net | 556,757 | 71,516 | 1,349,924 |
Other income | -29,131 | -633,981 | -7,256 |
Loss from impairment of cost method investment | ' | ' | -1,479,571 |
Net loss | -8,173,890 | -11,960,147 | -19,463,955 |
Other comprehensive income, net of tax: | ' | ' | ' |
Reclassification adjustment of available-for-sale securities, net of tax effects of nil, nil and nil for 2011, 2012 and 2013, respectively | ' | -45,567 | ' |
Comprehensive loss | -7,377,333 | -11,692,635 | -16,430,643 |
Parent Company [Member] | ' | ' | ' |
Condensed Income Statements, Captions [Line Items] | ' | ' | ' |
Cost of revenues | 2,584 | 4,245 | 43,976 |
Gross loss | -2,584 | -4,245 | -43,976 |
General and administrative | 1,417,843 | 1,445,591 | 1,428,893 |
Product development | 62,914 | 68,961 | 75,482 |
Sales and marketing | 160,112 | 43,018 | ' |
Stock-based compensation | 2,539,274 | 207,677 | 945,868 |
Loss from impairment of goodwill | ' | ' | 50,534 |
Total operating expenses | 4,180,143 | 1,765,247 | 2,500,777 |
Interest income | 605 | 2,180 | 1,402 |
Equity in deficits of subsidiaries, VIEs and VIEbs subsidiaries | -4,985,519 | -9,674,955 | -16,643,739 |
Exchange gain, net | 594,513 | -413,004 | 1,339,752 |
Other income | ' | 64 | ' |
Loss from impairment of cost method investment | ' | ' | -1,479,571 |
Net loss | -8,573,128 | -11,855,207 | -19,326,909 |
Other comprehensive income, net of tax: | ' | ' | ' |
Changes in foreign currency translation adjustment | 1,195,795 | 130,115 | 2,928,723 |
Net unrealized loss on available-for-sale securities, net of tax effects of ($5,728), $5,728 and nil for 2011, 2012 and 2013, respectively | ' | -13,110 | -32,457 |
Reclassification adjustment of available-for-sale securities, net of tax effects of nil, nil and nil for 2011, 2012 and 2013, respectively | ' | 45,567 | ' |
Other comprehensive income, net of tax | 1,195,795 | 162,572 | 2,896,266 |
Comprehensive loss | ($7,377,333) | ($11,692,635) | ($16,430,643) |
Schedule_I_Financial_Informati5
Schedule I - Financial Information of Parent Company (Details) - Financial Information of Parent Company - Comprehensive Income (Parentheticals) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Condensed Income Statements, Captions [Line Items] | ' | ' | ' |
Net unrealized loss on available-for-sale securities, tax effects | ' | $5,728 | ($5,728) |
Reclassification adjustment of available-for-sale securities, tax effects | ' | ' | ' |
Parent Company [Member] | ' | ' | ' |
Condensed Income Statements, Captions [Line Items] | ' | ' | ' |
Net unrealized loss on available-for-sale securities, tax effects | ' | 5,728 | -5,728 |
Reclassification adjustment of available-for-sale securities, tax effects | ' | ' | ' |
Schedule_I_Financial_Informati6
Schedule I - Financial Information of Parent Company (Details) - Financial Information of Parent Company - Shareholders' Equity (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Schedule I - Financial Information of Parent Company (Details) - Financial Information of Parent Company - Shareholders' Equity [Line Items] | ' | ' | ' |
Balance | $79,965,183 | ' | ' |
Exercise of share options by employees (in Shares) | 190,250 | 20,000 | 47,500 |
Exercise of share options by employees | 30,440 | 3,200 | 22,025 |
Share-based compensation | 3,035,122 | 802,725 | 1,538,802 |
Net unrealized losses on available-for-sale securities, net of tax effects | ' | -13,110 | -32,457 |
Reclassification adjustment of available-for sale securities, net of tax effects of nil | ' | -45,567 | ' |
Foreign currency translation adjustment | 1,195,795 | 130,115 | 2,928,723 |
Net income (loss) | -8,573,128 | -11,855,207 | -19,326,909 |
Balance | 75,770,897 | 79,965,183 | ' |
Common Stock [Member] | Parent Company [Member] | ' | ' | ' |
Schedule I - Financial Information of Parent Company (Details) - Financial Information of Parent Company - Shareholders' Equity [Line Items] | ' | ' | ' |
Balance (in Shares) | 110,955,383 | 110,935,383 | 110,887,883 |
Balance | 14,328 | 14,325 | 14,319 |
Exercise of share options by employees (in Shares) | 190,250 | 20,000 | 47,500 |
Exercise of share options by employees | 25 | 3 | 6 |
Balance (in Shares) | 111,145,633 | 110,955,383 | 110,935,383 |
Balance | 14,353 | 14,328 | 14,325 |
Common Stock [Member] | ' | ' | ' |
Schedule I - Financial Information of Parent Company (Details) - Financial Information of Parent Company - Shareholders' Equity [Line Items] | ' | ' | ' |
Balance (in Shares) | 110,955,383 | 110,935,383 | 110,887,883 |
Exercise of share options by employees (in Shares) | 190,250 | 20,000 | 47,500 |
Exercise of share options by employees | 25 | 3 | 6 |
Balance (in Shares) | 111,145,633 | 110,955,383 | 110,935,383 |
Additional Paid-in Capital [Member] | Parent Company [Member] | ' | ' | ' |
Schedule I - Financial Information of Parent Company (Details) - Financial Information of Parent Company - Shareholders' Equity [Line Items] | ' | ' | ' |
Balance | 81,163,243 | 80,446,578 | 78,974,697 |
Exercise of share options by employees | 30,415 | 3,197 | 22,019 |
Share-based compensation | 2,539,274 | 207,677 | 945,868 |
Equity pick up from compensation of a subsidiary | 421,473 | 505,791 | 503,994 |
Acquisition of business combination | 191,861 | ' | ' |
Balance | 84,346,266 | 81,163,243 | 80,446,578 |
Additional Paid-in Capital [Member] | ' | ' | ' |
Schedule I - Financial Information of Parent Company (Details) - Financial Information of Parent Company - Shareholders' Equity [Line Items] | ' | ' | ' |
Exercise of share options by employees | 30,415 | 3,197 | 22,019 |
Share-based compensation | 2,960,746 | 713,469 | 1,449,862 |
Accumulated Other Comprehensive Income (Loss) [Member] | Parent Company [Member] | ' | ' | ' |
Schedule I - Financial Information of Parent Company (Details) - Financial Information of Parent Company - Shareholders' Equity [Line Items] | ' | ' | ' |
Balance | 11,089,820 | 10,927,248 | 8,030,982 |
Net unrealized losses on available-for-sale securities, net of tax effects | ' | -13,110 | -32,457 |
Reclassification adjustment of available-for sale securities, net of tax effects of nil | ' | 45,567 | ' |
Foreign currency translation adjustment | 1,195,795 | 130,115 | 2,928,723 |
Balance | 12,285,615 | 11,089,820 | 10,927,248 |
Accumulated Other Comprehensive Income (Loss) [Member] | ' | ' | ' |
Schedule I - Financial Information of Parent Company (Details) - Financial Information of Parent Company - Shareholders' Equity [Line Items] | ' | ' | ' |
Net unrealized losses on available-for-sale securities, net of tax effects | ' | -13,110 | -32,457 |
Foreign currency translation adjustment | 1,195,795 | 130,115 | 2,928,723 |
Retained Earnings [Member] | Parent Company [Member] | ' | ' | ' |
Schedule I - Financial Information of Parent Company (Details) - Financial Information of Parent Company - Shareholders' Equity [Line Items] | ' | ' | ' |
Balance | -12,302,209 | -447,002 | 18,879,907 |
Net income (loss) | -8,573,128 | -11,855,207 | -19,326,909 |
Balance | -20,875,337 | -12,302,209 | -447,002 |
Parent Company [Member] | ' | ' | ' |
Schedule I - Financial Information of Parent Company (Details) - Financial Information of Parent Company - Shareholders' Equity [Line Items] | ' | ' | ' |
Balance | 79,965,182 | 90,941,149 | 105,899,905 |
Exercise of share options by employees | 30,440 | 3,200 | 22,025 |
Share-based compensation | 2,539,274 | 207,677 | 945,868 |
Equity pick up from compensation of a subsidiary | 421,473 | 505,792 | 503,994 |
Acquisition of business combination | 191,861 | ' | ' |
Net unrealized losses on available-for-sale securities, net of tax effects | ' | -13,110 | -32,457 |
Reclassification adjustment of available-for sale securities, net of tax effects of nil | ' | 45,567 | ' |
Foreign currency translation adjustment | 1,195,795 | 130,115 | 2,928,723 |
Net income (loss) | -8,573,128 | -11,855,207 | -19,326,909 |
Balance | $75,770,897 | $79,965,182 | $90,941,149 |
Schedule_I_Financial_Informati7
Schedule I - Financial Information of Parent Company (Details) - Financial Information of Parent Company - Shareholders' Equity (Parentheticals) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Schedule I - Financial Information of Parent Company (Details) - Financial Information of Parent Company - Shareholders' Equity (Parentheticals) [Line Items] | ' | ' | ' |
Net unrealized losses on available-for-sale securities, tax effects | ' | $5,728 | ($5,728) |
Reclassification adjustment of available-for-sale securities, tax effects | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Member] | Parent Company [Member] | ' | ' | ' |
Schedule I - Financial Information of Parent Company (Details) - Financial Information of Parent Company - Shareholders' Equity (Parentheticals) [Line Items] | ' | ' | ' |
Net unrealized losses on available-for-sale securities, tax effects | ' | 5,728 | -5,728 |
Reclassification adjustment of available-for-sale securities, tax effects | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Member] | ' | ' | ' |
Schedule I - Financial Information of Parent Company (Details) - Financial Information of Parent Company - Shareholders' Equity (Parentheticals) [Line Items] | ' | ' | ' |
Net unrealized losses on available-for-sale securities, tax effects | ' | 5,728 | -5,728 |
Parent Company [Member] | ' | ' | ' |
Schedule I - Financial Information of Parent Company (Details) - Financial Information of Parent Company - Shareholders' Equity (Parentheticals) [Line Items] | ' | ' | ' |
Net unrealized losses on available-for-sale securities, tax effects | ' | 5,728 | -5,728 |
Reclassification adjustment of available-for-sale securities, tax effects | ' | ' | ' |
Schedule_I_Financial_Informati8
Schedule I - Financial Information of Parent Company (Details) - Financial Information of Parent Company - Statement of Cash Flows (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Operating activities: | ' | ' | ' |
Net loss | ($8,573,128) | ($11,855,207) | ($19,326,909) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ' | ' | ' |
Stock-based compensation | 3,035,122 | 802,725 | 1,538,802 |
Loss from impairment of cost method investment | ' | ' | 1,479,571 |
Loss from impairment of goodwill | ' | ' | 13,463,224 |
Equity in earnings of subsidiaries, VIEs and VIEbs subsidiaries | -2,773,839 | ' | ' |
Changes in assets and liabilities: | ' | ' | ' |
Prepaid expenses and other current assets | 1,131,750 | 471,699 | 321,279 |
Accrued expenses and other current liabilities | -1,189,465 | -715,741 | -4,571,482 |
Net cash (used in) provided by operating activities | 158,656 | -29,042,932 | -23,786,442 |
Investing activities: | ' | ' | ' |
Net cash provided by (used in) investing activities | 7,577,511 | 10,960,855 | -32,775,996 |
Financing activities: | ' | ' | ' |
Proceeds from stock options exercised by employees | 640 | 3,200 | 22,025 |
Net cash provided by financing activities | -12,137,905 | -5,668,804 | 12,738,788 |
Effect of exchange rate changes | -133,308 | 15,785 | 1,691,264 |
Net increase (decrease) in cash and cash equivalents | -4,535,046 | -23,735,096 | -42,132,386 |
Cash and cash equivalents, beginning of year | 40,905,996 | 64,641,092 | 106,773,478 |
Cash and cash equivalents, end of year | 36,370,950 | 40,905,996 | 64,641,092 |
Parent Company [Member] | ' | ' | ' |
Operating activities: | ' | ' | ' |
Net loss | -8,573,128 | -11,855,207 | -19,326,909 |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ' | ' | ' |
Stock-based compensation | 2,539,274 | 207,677 | 945,868 |
Loss from impairment of cost method investment | ' | ' | 1,479,571 |
Loss from impairment of goodwill | ' | ' | 50,534 |
Equity in earnings of subsidiaries, VIEs and VIEbs subsidiaries | 4,985,519 | 9,674,955 | 16,643,739 |
Changes in assets and liabilities: | ' | ' | ' |
Prepaid expenses and other current assets | -63,446 | 26,907 | -31,865 |
Amounts due from subsidiaries, VIEs and VIEbs subsidiaries | -4,092,500 | 317,359 | -902,476 |
Rental deposits | -271 | -66,622 | ' |
Accrued expenses and other current liabilities | 34,392 | -10,225 | -52,029 |
Amounts due to subsidiaries, VIEs and VIEbs subsidiaries | 1,779,098 | 8,095,649 | 307,870 |
Net cash (used in) provided by operating activities | -3,391,062 | 6,390,493 | -885,697 |
Investing activities: | ' | ' | ' |
Dividend receivable | 1,140,713 | 4,171,269 | 759,301 |
Capital injection to subsidiaries | ' | -10,327,422 | ' |
Net cash provided by (used in) investing activities | 1,140,713 | -6,156,153 | 759,301 |
Financing activities: | ' | ' | ' |
Proceeds from stock options exercised by employees | 30,440 | 3,200 | 22,025 |
Net cash provided by financing activities | 30,440 | 3,200 | 22,025 |
Effect of exchange rate changes | ' | 1 | ' |
Net increase (decrease) in cash and cash equivalents | -2,219,909 | 237,541 | -104,371 |
Cash and cash equivalents, beginning of year | 2,941,180 | 2,703,639 | 2,808,010 |
Cash and cash equivalents, end of year | $721,271 | $2,941,180 | $2,703,639 |