Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2016shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2016 |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | Acorn International, Inc. |
Entity Central Index Key | 1,365,742 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Trading Symbol | ATV |
Entity Common Stock, Shares Outstanding | 75,406,875 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 25,505,731 | $ 12,146,854 |
Restricted cash | 72,077 | 126,278 |
Accounts receivable, net of allowance for doubtful accounts | 1,271,209 | 1,905,499 |
Notes receivable | 0 | 276,062 |
Inventory | 3,977,336 | 4,135,624 |
Held-for-sale assets | 0 | 3,808,471 |
Prepaid advertising expenses | 10,689 | 474,761 |
Other prepaid expenses and current assets | 2,667,930 | 6,314,872 |
Deferred tax assets | 588,493 | 1,076,154 |
Total current assets | 34,093,465 | 30,264,575 |
Prepaid land use right, net | 6,578,765 | 7,195,292 |
Property and equipment, net | 13,885,079 | 16,615,300 |
Acquired intangible assets, net | 575,273 | 876,970 |
Investments in affiliates | 0 | 718,121 |
Available-for-sale securities | 74,666,865 | 181,164,778 |
Convertible loan receivable | 3,218,665 | 3,257,622 |
Other long-term assets | 301,752 | 626,108 |
Total assets | 133,319,864 | 240,718,766 |
Current liabilities: | ||
Accounts payable | 2,614,118 | 3,061,519 |
Accrued expenses and other current liabilities | 9,132,166 | 11,855,695 |
Income taxes payable | 3,665,757 | 2,091,559 |
Deferred revenue | 380,526 | 548,066 |
Total current liabilities | 15,792,567 | 17,556,839 |
Deferred tax liability | 18,017,610 | 44,449,212 |
Total liabilities | 33,810,177 | 62,006,051 |
Commitments and contingencies (Note 18) | ||
Acorn International, Inc. shareholders’ equity: | ||
Ordinary shares ($0.01 par value; 100,000,000 shares authorized 89,018,518 and 91,818,518 shares issued and 76,531,135 and 75,406,875 shares outstanding as of December 31, 2015 and 2016, respectively) | 918,185 | 890,185 |
Additional paid-in capital | 161,938,330 | 161,308,330 |
Accumulated deficits | (122,910,876) | (126,349,246) |
Accumulated other comprehensive income | 80,865,261 | 162,580,400 |
Treasury stock, at cost (12,487,383 and 16,411,643 shares as of December 31, 2015 and 2016, respectively) | (21,640,346) | (20,109,451) |
Total Acorn International, Inc. shareholders’ equity | 99,170,554 | 178,320,218 |
Noncontrolling interests | 339,133 | 392,497 |
Total equity | 99,509,687 | 178,712,715 |
Total liabilities and equity | 133,319,864 | 240,718,766 |
Variable Interest Entity, Primary Beneficiary | ||
Current assets: | ||
Cash and cash equivalents | 1,365,895 | 1,317,685 |
Restricted cash | 72,077 | 126,278 |
Accounts receivable, net of allowance for doubtful accounts | 404,057 | 721,713 |
Inventory | 134,632 | 323,008 |
Held-for-sale assets | 0 | 1,574,543 |
Other prepaid expenses and current assets | 630,111 | 864,070 |
Deferred tax assets | 401,808 | 401,492 |
Total current assets | 3,008,580 | 5,328,789 |
Property and equipment, net | 957,103 | 1,729,560 |
Total assets | 3,965,683 | 7,058,349 |
Current liabilities: | ||
Accounts payable | 179,215 | 158,855 |
Accrued expenses and other current liabilities | 1,061,350 | 1,847,559 |
Income taxes payable | 401,808 | 411,732 |
Deferred revenue | 380,526 | 532,764 |
Total liabilities | $ 2,022,899 | $ 2,950,910 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts receivable, allowance for doubtful accounts | $ 3,702,514 | $ 5,398,166 |
Ordinary shares, par value | $ 0.01 | $ 0.01 |
Ordinary shares, shares authorized | 100,000,000 | 100,000,000 |
Ordinary shares, shares issued | 91,818,518 | 89,018,518 |
Ordinary shares, shares outstanding | 75,406,875 | 76,531,135 |
Treasury Stock, Shares | 16,411,643 | 12,487,383 |
Variable Interest Entity, Primary Beneficiary | ||
Accounts receivable, allowance for doubtful accounts | $ 238,651 | $ 1,874,208 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues: | |||
Direct sales, net | $ 13,833,208 | $ 19,405,793 | $ 45,232,943 |
Distribution sales, net | 10,694,668 | 28,139,818 | 49,521,779 |
Total revenues, net | 24,527,876 | 47,545,611 | 94,754,722 |
Cost of revenues: | |||
Direct sales | 2,728,390 | 13,388,423 | 24,352,882 |
Distribution sales | 9,243,903 | 21,498,735 | 32,570,037 |
Total cost of revenues | 11,972,293 | 34,887,158 | 56,922,919 |
Gross profit | 12,555,583 | 12,658,453 | 37,831,803 |
Operating (expenses) income | |||
Advertising expenses | (23,701) | (2,203,996) | (16,232,840) |
Other selling and marketing expenses | (12,970,090) | (25,185,444) | (40,177,216) |
General and administrative expenses | (16,437,112) | (27,839,081) | (28,417,373) |
Other operating income, net | 7,607,334 | 1,712,774 | 2,121,208 |
Total operating expenses | (21,823,569) | (53,515,747) | (82,706,221) |
Loss from operations | (9,267,986) | (40,857,294) | (44,874,418) |
Interest expense | 0 | (14,183) | (189,863) |
Interest income | 466,530 | 836,211 | 2,590,212 |
Other income (expense), net | 17,671,023 | 195,355 | (446,662) |
Income (Loss) before income taxes and equity in losses of affiliates | 8,869,567 | (39,839,911) | (42,920,731) |
Income tax expenses | (4,592,783) | (183,091) | (1,170,517) |
Equity in losses of affiliates | (868,121) | (226,779) | (235,161) |
Net income (loss) | 3,408,663 | (40,249,781) | (44,326,409) |
Net income (loss) attributable to noncontrolling interests | (29,707) | (91,127) | 2,503 |
Net income (loss) attributable to Acorn International, Inc. shareholders | $ 3,438,370 | $ (40,158,654) | $ (44,328,912) |
Income (Loss) per ordinary share: | |||
Basic and diluted | $ 0.05 | $ (0.51) | $ (0.54) |
Shares used in calculating income (loss) per ordinary share: | |||
Basic and diluted | 75,600,700 | 79,226,404 | 82,690,613 |
Includes share-based compensation related to: | |||
General and administrative expenses | $ 658,000 | $ 71,333 | $ 428,000 |
General and Administrative Expense [Member] | |||
Includes share-based compensation related to: | |||
General and administrative expenses | $ 658,000 | $ 71,333 | $ 428,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net income (loss) | $ 3,408,663 | $ (40,249,781) | $ (44,326,409) |
Other comprehensive income, net of tax | |||
Foreign currency translation adjustments | (27,222,102) | (5,895,181) | (701,895) |
Unrealized gain (loss) of available-for-sales securities, net of tax of $ 44,621,498 and $ (18,172,231) in 2015 and 2016, respectively | (54,516,694) | 133,864,495 | 0 |
Comprehensive income (loss) | (78,330,133) | 87,719,533 | (45,028,304) |
Comprehensive income (loss) attributable to non-controlling interest | (53,364) | (117,409) | 716 |
Comprehensive income (loss) attributable to Acorn International, Inc. | $ (78,276,769) | $ 87,836,942 | $ (45,029,020) |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | $ (18,172,231) | $ 44,621,498 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated other comprehensive income [Member] | Treasury Stock [Member] | Parent [Member] | Noncontrolling Interest [Member] |
Balance at Dec. 31, 2013 | $ 136,272,153 | $ 949,372 | $ 161,499,810 | $ (41,861,680) | $ 35,284,912 | $ (20,109,451) | $ 135,762,963 | $ 509,190 |
Balance (in shares) at Dec. 31, 2013 | 94,937,174 | (12,487,383) | ||||||
Net income (loss) | (44,326,409) | $ 0 | 0 | (44,328,912) | 0 | $ 0 | (44,328,912) | 2,503 |
Foreign currency translation adjustments | (701,895) | 0 | 0 | 0 | (700,108) | 0 | (700,108) | (1,787) |
Unrealized gain of available-for-sales securities | 0 | |||||||
Exercise of restricted share units | 0 | $ 3,000 | (3,000) | 0 | 0 | 0 | 0 | 0 |
Exercise of restricted share units (in shares) | 300,000 | |||||||
Share-based compensation expenses | 428,000 | $ 0 | 428,000 | 0 | 0 | 0 | 428,000 | 0 |
Balance at Dec. 31, 2014 | 91,671,849 | $ 952,372 | 161,924,810 | (86,190,592) | 34,584,804 | $ (20,109,451) | 91,161,943 | 509,906 |
Balance (in shares) at Dec. 31, 2014 | 95,237,174 | (12,487,383) | ||||||
Net income (loss) | (40,249,781) | $ 0 | 0 | (40,158,654) | 0 | $ 0 | (40,158,654) | (91,127) |
Foreign currency translation adjustments | (5,895,181) | 0 | 0 | 0 | (5,868,899) | 0 | (5,868,899) | (26,282) |
Unrealized gain of available-for-sales securities | 133,864,495 | 0 | 0 | 0 | 133,864,495 | 0 | 133,864,495 | 0 |
Exercise of restricted share units | 0 | $ 3,000 | (3,000) | 0 | 0 | 0 | 0 | 0 |
Exercise of restricted share units (in shares) | 300,000 | |||||||
Share-based compensation expenses | 71,333 | $ 0 | 71,333 | 0 | 0 | 0 | 71,333 | 0 |
Repurchase and cancellation of ordinary shares | (750,000) | $ (65,187) | (684,813) | 0 | 0 | 0 | (750,000) | 0 |
Repurchase and cancellation of ordinary shares (in shares) | (6,518,656) | |||||||
Balance at Dec. 31, 2015 | $ 178,712,715 | $ 890,185 | 161,308,330 | (126,349,246) | 162,580,400 | $ (20,109,451) | 178,320,218 | 392,497 |
Balance (in shares) at Dec. 31, 2015 | 89,018,518 | 89,018,518 | (12,487,383) | |||||
Net income (loss) | $ 3,408,663 | $ 0 | 0 | 3,438,370 | 0 | $ 0 | 3,438,370 | (29,707) |
Foreign currency translation adjustments | (27,222,102) | 0 | 0 | 0 | (27,198,445) | 0 | (27,198,445) | (23,657) |
Unrealized gain of available-for-sales securities | (54,516,694) | |||||||
Fair value fluctuation of available-for-sale securities | (54,516,694) | 0 | 0 | 0 | (54,516,694) | 0 | (54,516,694) | 0 |
Exercise of restricted share units | 0 | $ 28,000 | (28,000) | 0 | 0 | 0 | 0 | 0 |
Exercise of restricted share units (in shares) | 2,800,000 | |||||||
Share-based compensation expenses | 658,000 | $ 0 | 658,000 | 0 | 0 | 0 | 658,000 | 0 |
Share buy-back | (1,530,895) | 0 | 0 | $ (1,530,895) | (1,530,895) | 0 | ||
Share buy-back (in shares) | (3,924,260) | |||||||
Balance at Dec. 31, 2016 | $ 99,509,687 | $ 918,185 | $ 161,938,330 | $ (122,910,876) | $ 80,865,261 | $ (21,640,346) | $ 99,170,554 | $ 339,133 |
Balance (in shares) at Dec. 31, 2016 | 91,818,518 | 91,818,518 | (16,411,643) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating activities: | |||
Net income (loss) | $ 3,408,663 | $ (40,249,781) | $ (44,326,409) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Share-based compensation | 658,000 | 71,333 | 428,000 |
Equity in losses of affiliates | 868,121 | 226,779 | 235,161 |
Providing(reversal) of allowance for doubtful accounts | (187,193) | 3,856,777 | (381,972) |
Inventory write-downs | 470,069 | 3,954,771 | 936,126 |
Depreciation and amortization | 2,585,737 | 3,946,859 | 4,053,944 |
Losses(gains) from disposal of equipment and other long-term assets | 672,667 | (787,160) | 1,085,910 |
Deferred income tax expenses (benefits) | 423,423 | (179,990) | (109,664) |
Gains on disposal of available-for-sale securities | (18,088,327) | 0 | 0 |
Gains on disposal of held-for-sales assets | (5,838,768) | 0 | 0 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 652,386 | 2,913,226 | (610,373) |
Notes receivable | 276,062 | (153,610) | (122,452) |
Inventory | (311,781) | 4,691,346 | 2,929,193 |
Prepaid advertising expenses | 460,984 | 4,579,347 | (2,947,031) |
Other prepaid expenses and current assets | 3,257,691 | 2,532,275 | (1,425,279) |
Accounts payable | (447,401) | (7,343,894) | (2,963,364) |
Accrued expenses and other current liabilities | (4,382,664) | (343,890) | (1,468,911) |
Notes payable | 0 | 0 | (1,148,125) |
Income taxes payable | 1,574,198 | 289,717 | 493,226 |
Deferred revenue | (167,540) | (118,673) | (120,534) |
Net cash used in operating activities | (14,299,843) | (22,333,075) | (45,632,724) |
Investing activities: | |||
Purchase of property and equipment | (483,922) | (21,388) | (1,360,682) |
Proceeds from disposal of equipment | 80,748 | 3,288,653 | 2,403 |
Proceeds from disposal of held-for-sale assets | 11,291,342 | 0 | 0 |
Investment in an affiliate | (150,000) | 0 | 0 |
Disbursement for loan receivable | 0 | (3,024,932) | 0 |
Purchase of other long-term assets | (358,938) | (477,220) | (620,985) |
Proceeds from disposal of available-for-sale securities | 18,258,139 | 0 | 0 |
Decrease (increase) in restricted cash | 54,201 | 9,633,487 | 265,002 |
Net cash provided by (used in) investing activities | 28,691,570 | 9,398,600 | (1,714,262) |
Financing activities: | |||
Repurchase of ordinary shares | (1,530,895) | (375,000) | 0 |
Repayment of long-term debt | 0 | (8,520,507) | 0 |
Net cash used in financing activities | (1,530,895) | (8,895,507) | 0 |
Effect of exchange rate changes on cash and cash equivalents | 498,045 | (709,543) | (518,949) |
Net increase (decreased) in cash and cash equivalents | 13,358,877 | (22,539,525) | (47,865,935) |
Cash and cash equivalents at the beginning of the year | 12,146,854 | 34,686,379 | 82,552,314 |
Cash and cash equivalents at the end of the year | 25,505,731 | 12,146,854 | 34,686,379 |
Supplemental disclosure of cash flow information: | |||
Income taxes paid | 2,236,119 | 129,780 | 873,771 |
Interest paid | 0 | 70,507 | 185,737 |
Supplemental disclosure of non-cash investing and financial activities: | |||
Receivable for the sale of property and equipment | 0 | 1,301,227 | 0 |
Convertible Debt [Member] | |||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Accrued interests | (184,170) | (232,690) | 0 |
Long-term Debt [Member] | |||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Accrued interests | 0 | 14,183 | 189,863 |
Restricted Cash [Member] | |||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Accrued interests | $ 0 | $ 0 | $ (360,033) |
Organization and principal acti
Organization and principal activities | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | Acorn International, Inc. (“Acorn International” or the “Company”) was incorporated in Cayman Islands on December 20, 2005. China DRTV, Inc. (“China DRTV”) was incorporated in the British Virgin Islands (“BVI”) on March 4, 2004. Acorn International and its subsidiaries and variable interest entities (“VIEs”) (collectively, the “Group”) is an integrated multi-platform marketing company in China which develops, promotes and sells products. The Group’s two primary sales platforms are integrated direct sales and a nationwide distribution network. Direct sales platforms include outbound marketing platform (which until early 2015 included TV direct sales) and Internet sales platform. Consolidated subsidiaries and changes to consolidated subsidiaries Name of subsidiaries Percentage of ownership Date of incorporation Place of incorporation China DRTV, Inc. (“China DRTV”) 100 % March 4, 2004 Smooth Profit Limited (“Smooth Profit”) 100 % September 18, 2007 BVI MK AND T Communications Limited (“MK AND T”) 100 % October 27, 1998 Bright Rainbow Investments Limited (“Bright Rainbow”) 100 % October 29, 2007 Shanghai Acorn Advertising Broadcasting Co., Ltd. (“Shanghai Advertising”) 100 % August 19, 2004 Shanghai HJX Digital Technology Co., Ltd. (“Shanghai HJX”) 100 % August 23, 2004 Acorn International Electronic Technology (Shanghai) Co., Ltd. (“Acorn Electronic”) 100 % August 23, 2004 Acorn Information Technology (Shanghai) Co., Ltd. (“Acorn Information”) 100 % August 27, 2004 Beijing Acorn Youngleda Oxygen Generating Co., Ltd. (“Beijing Youngleda”) 100 % October 20, 2004 YiyangYukang Communication Equipment Co., Ltd. (“YiyangYukang”) 100 % November 29, 2005 Zhuhai Sunrana Bio-tech Co., Ltd. (“Zhuhai Sunrana”) 51 % June 16, 2006 PRC Zhuhai Acorn Electronic Technology Co., Ltd. (“Zhuhai Acorn”) 100 % September 26, 2006 Beijing HJZX Software Technology Development Co., Ltd. (“Beijing HJZX”) 100 % January 22, 2007 ZhongshanMeijin Digital Technology Co., Ltd. (“ZhongshanMeijin”) 75 % Acorn Trade (Shanghai) Co., Ltd. (“Acorn Trade”) 100 % Shanghai Acorn HJX Software Technology Development Co., Ltd. (“HJX Software”) 100 % May 12, 2009 Wuxi Acorn Enterprise Management Consulting Co., Ltd. (“Wuxi Acorn”) 100 % January 29, 2010 PRC Name of subsidiaries Percentage of ownership Date of incorporation Place of incorporation HJX International Limited 100 % March 5, 2014 In January 2014, we established Star Education & Technology Group Inc. in the Cayman Islands, Star Education & Technology Limited in the British Virgin Islands and HJX International Limited in Hong Kong, respectively, with an aim to further expand our electronic learning product business in the future. Through May 2015 and 2016, continuing business turnaround strategy was led by co-founder and Executive Chairman, Robert Roche, and the new management team installed in May 2015. As a result of our business turnaround strategy, Star Education & Technology Group Inc. and Star Education & Technology Limited were deregistered in December 2016 and August 2016, respectively. VIE Arrangements Name of variable interest entities Date of incorporation Place of incorporation Beijing Acorn Trade Co., Ltd. (“Beijing Acorn”) Shanghai Acorn Network Technology Development Co., Ltd. (“Shanghai Network”) PRC Beijing HJX Technology Development Co., Ltd. (“Beijing HJX”) PRC Due to the complicated and lengthy approval process and uncertain position of the Ministry of Commerce of People’s Republic of China (“PRC”) towards approving investment in direct sale business by foreign investors under the Administrative Measures on Foreign Investment in Commercial Sector, Acorn International conducts its direct sales through two VIEs (Beijing Acorn and Shanghai Network) which hold direct sales licenses. Beijing Acorn and Shanghai Network are owned 100% by two PRC nationals: Mr. Kuan Song and Ms. Pan Zong, who did not hold any share of Acorn International as of the date of the financial statements. Acorn Information Technology (Shanghai) Co., Ltd. (“Acorn Information”), a wholly-owned subsidiary of Acorn International, entered into various agreements with each of Beijing Acorn and Shanghai Network and their shareholders, Mr. Kuan Song and Ms. Pan Zong, including (i) Irrevocable Powers of Attorney, under which each of the two shareholders of the VIEs granted to designees of Acorn Information the power to exercise all voting rights as a shareholder of these VIEs, (ii) Loan Agreement, under which Acorn Information made interest-free loans to the shareholders of these VIEs in an aggregate amount of approximately RMB 118.0 18.2 Through the above arrangements, Acorn Information holds all the variable interests of Beijing Acorn and Shanghai Network and has power to direct the activities that most significantly impact the economic success of Beijing Acorn and Shanghai Network and absorbs the majority of the economic risks and rewards of Beijing Acorn and Shanghai Network through service fees. The nominal shareholders lack the ability to make decisions that have a significant effect on the operations of Beijing Acorn and Shanghai Network and do not absorb the expected losses because the capital of Beijing Acorn and Shanghai Network were funded using loans borrowed from Acorn Information. Therefore, Acorn International is the primary beneficiary of these two VIEs and accordingly, the financial statements of Beijing Acorn and Shanghai Network have been consolidated with Acorn International as its subsidiaries since VIE structure were established. Due to the aforesaid complicated and lengthy approval process and uncertain position of the Ministry of Commerce of PRC towards approving investment in direct sale business by foreign investors as well as certain restrictions or prohibitions on foreign ownership of companies that engage in internet and other related businesses imposed by current PRC laws and regulations, including the provision of internet content, in 2013, Acorn International set up two new VIEs, Beijing HJX and Shanghai HJX Electronic Technology Co., Ltd. (“HJX Electronic”), and began to conduct its internet interactive service through Beijing HJX which hold the service license of telecommunication and information operation, and its Ozing product direct sales through HJX Electronic. Like Beijing Acorn and Shanghai Network, Beijing HJX and HJX Electronic are each also owned 100% by Mr. Kuan Song and Ms. Pan Zong. Acorn Trade (previously Shanghai HJX), a wholly-owned subsidiary of Acorn International, entered into various agreements with each of Beijing HJX and HJX Electronic and their shareholders, Mr. Kuan Song and Ms. Pan Zong, including (i) Irrevocable Powers of Attorney, under which each of the two shareholders of these VIEs granted to designees of Acorn Trade the power to exercise all voting rights as a shareholder of these VIEs, (ii) Loan Agreement, under which Acorn Trade made interest-free loans to the shareholders of these VIEs in an aggregate amount of approximately RMB 53.0 8.7 Through the above arrangements, Acorn Trade holds all the variable interests of Beijing HJX and HJX Electronic and has power to direct the activities that most significantly impact the economic success of Beijing HJX and HJX Electronic and absorbs the majority of the economic risks and rewards of Beijing HJX and HJX Electronic through service fees. The nominal shareholders lack the ability to make decisions that have a significant effect on the operations of Beijing HJX and HJX Electronic and do not absorb the expected losses because the capital of Beijing HJX and HJX Electronic were funded using loans borrowed from Acorn Trade. Therefore, Acorn International is the primary beneficiary of these two VIEs and accordingly, the financial statements of Beijing HJX and HJX Electronic have been consolidated with Acorn International as its subsidiaries since the VIE structure were established. In May 2016, HJX electronic was deregistered as a result of our business turnaround strategy. The Group believes that its current ownership structure, and the contractual arrangements that Acorn Information and Acorn Trade entered into with the consolidated VIEs and their equity owners are in compliance with existing PRC laws and regulations according to the opinions of the Group’s PRC legal counsel. The contractual arrangements among Acorn Information and each of Beijing Acorn and Shanghai Network and their shareholders, Acorn Trade and Beijing HJX and their shareholders are valid, binding and enforceable. However, there are uncertainties regarding the interpretation and application of current and future PRC laws and regulations. The PRC competent regulatory authorities may take a view in the future that is contrary to the above opinions of the Group’s PRC legal counsel. If the current agreements that establish the structure for conducting the Group’s PRC direct sales business and internet interactive service were found to be in violation of existing or future PRC laws or regulations, the Group may be required to restructure its ownership structure and direct sales and internet interactive service operations in the PRC to comply with PRC laws and regulations, which may affect the Group’s financial position and cash flows related to these VIE structures. In addition, there are uncertainties in the PRC legal system that could limit the Group’s ability to enforce these contractual agreements in the event that the consolidated VIEs or their shareholders fail to meet their contractual obligations. If the legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government could: • revoke the business and operating licenses of the Group’s PRC subsidiaries and VIEs; • discontinue or restrict the operations of any related-party transactions among the Group’s PRC subsidiaries and VIEs; • limit the Group’s business expansion in China by way of entering into contractual arrangements; • impose fines or other requirements with which the Group’s PRC subsidiaries may not be able to comply; • require the Group or the Group’s PRC subsidiaries to restructure the relevant ownership structure or operations; or Restrict or prohibit the Group’s use of the proceeds of the additional public offering to finance the Group’s business and operations in China. The Group’s ability to conduct its business may be negatively affected if the PRC government were to carry out any of the aforementioned actions. As a result, the Group may not be able to consolidate the VIEs in its consolidated financial statements as it may lose the ability to exert effective control over the VIEs and its shareholder, and it may lose the ability to receive economic benefits from the VIEs. The Group, however, does not believe such actions would result in the liquidation or dissolution of the Group or the VIEs. The Group believes that its ability to direct the activities of the four VIEs that most significantly impact the VIEs’ economic performance is not affected by the above uncertainties in the PRC legal system. Accordingly, the four VIEs continue to be consolidated VIEs of the Group. For the years ended December 31, 2014 2015 2016 Net revenues $ 44,907,449 $ 18,469,195 $ 12,251,518 Net income (loss) $ (8,282,712) $ (9,920,207) $ (998,709) The VIEs contributed an aggregate of 47.4 38.8 49.9 11.3 3.0 17.8 6.0 There are no consolidated VIEs’ assets that are collateral for the VIEs’ obligations and can only be used to settle the VIEs’ obligations. There are no creditors (or beneficial interest holders) of the VIEs that have recourse to the general credit of the Group or any of its consolidated subsidiaries. Should the VIEs require financial support, the Group or its subsidiaries may, at its option and subject to statutory limits and restrictions, provide financial support to its VIEs through loans to the shareholders of the VIEs or entrustment loans to the VIEs. Relevant PRC laws and regulations restrict the VIEs from transferring a portion of its net assets, equivalent to the balance of its statutory reserve and its share capital, to the Group in the form of loans and advances or cash dividends. |
Summary of principal accounting
Summary of principal accounting policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 2. Summary of principal accounting policies The consolidated financial statements of the Group have been prepared in accordance with the accounting principles generally accepted in the United States of America (“US GAAP”). The consolidated financial statements include the financial statements of Acorn International, its majority-owned subsidiaries and consolidated VIEs. All intercompany transactions and balances are eliminated upon consolidation. Net income or loss of a subsidiary is attributed to the Group and to the noncontrolling interests even if this results in the noncontrolling interests having a deficit balance. Noncontrolling interests in subsidiaries are presented separately from the Group’s equity therein. The preparation of financial statements in conformity with US GAAP requires the Group to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant accounting estimates reflected in the Group’s financial statements include allowance for doubtful accounts, inventory valuation, impairment of long-lived assets, and valuation allowance on deferred tax assets and provision for uncertain tax positions. Although the Group experienced an operating loss and negative cash flows from operations in the year ended December 31, 2016 and had accumulated deficits as of that date, the Group had improved liquidity position by selling non-core assets and investments. Furthermore, the Group is continually focused on saving cost in all business scope, as well as Group management level, including reducing HC, shifting of service vendor and etc. As a result, the accompanying consolidated financial statements have been prepared assuming the Group will continue as a going concern. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (also referred to as an exit price) and expands disclosure requirements about assets and liabilities measured at fair value. The guidance establishes a hierarchy for inputs used in measuring fair value that gives the highest priority to observable inputs and the lowest priority to unobservable inputs as follows: • Level 1Observable unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2Observable inputs other than quoted prices in active markets for identical assets or liabilities, for which all significant inputs are observable, either directly or indirectly. • Level 3Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. When available, the Group measures the fair value of financial instruments based on quoted market prices in active markets, valuation techniques that use observable market-based inputs or unobservable inputs that are corroborated by market data. The Group uses valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Assets and liabilities measured at fair value are classified in the categories of Level 1, Level 2, and Level 3 based on the lowest level input that is significant to the fair value measurement in its entirety. Pricing information the Group obtains from third parties is internally validated for reasonableness prior to use in the consolidated financial statements. When observable market prices are not readily available, the Group generally estimates the fair value using valuation techniques that rely on alternate market data or inputs that are generally less readily observable from objective sources and are estimated based on pertinent information available at the time of the applicable reporting periods. In certain cases, fair values are not subject to precise quantification or verification and may fluctuate as economic and market factors vary and the Group’s evaluation of those factors changes. Although the Group uses its best judgment in estimating the fair value of these financial instruments, there are inherent limitations in any estimation technique. In these cases, a minor change in an assumption could result in a significant change in its estimate of fair value, thereby increasing or decreasing the amounts of the Group’s consolidated assets, liabilities, equity and net income or loss. The Group’s financial instruments consist of cash and cash equivalents, restricted cash, accounts receivable, notes receivable, convertible loan receivable, available-for-sale securities, accounts payable and long-term debt. For cash and cash equivalents, restricted cash, accounts receivable, notes receivable and accounts payable, the carrying amounts of these financial instruments as of December 31, 2015 and 2016 were considered representative of their fair values due to their short-term nature. The marketable securities are carried at fair values. The carrying values of long-term debt and convertible loan receivable approximate their fair values as the impacts to discount the long-term debt and convertible loan receivable with a market based interest rate are insignificant. 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. At December 31, 2015 and 2016, cash equivalents were comprised of investments in time deposits and money market funds stated at cost plus accrued interests totaling to $6.9 million and $7.5 million, respectively. C ash balances of the Group that are included in the cash and cash equivalents of the consolidated balance sheets, including those denominated in RMB, may be withdrawn and used for the Group’s general operations without prior notice or penalty. The PRC government imposes certain controls on the convertibility of the RMB into foreign currencies, and in certain cases, the remittance of currency out of China. However, the Group does not consider the process for converting RMB into foreign currency in compliance with these controls to be a usage restriction and such process is not expected to result in any penalties provided that the Group complies with all above-mentioned processes as required. The RMB is not a freely convertible currency. The PRC State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB 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 China’s foreign exchange trading system market. The Group’s aggregate amount of cash and cash equivalents and restricted cash denominated in RMB amounted to RMB 65,663,822 10,112,083 133,023,148 19,175,890 Under third-party bank channel sales arrangements, the Group is required to maintain certain cash balances in the banks. These balances related to the third-party bank channel sales arrangements were reflected as restricted cash in the balance sheet and amounted to $ 126,278 72,077 The cost of inventory comprises all costs of purchase, costs of conversion, and other costs incurred to bring inventory to its present location and condition. The cost of inventory is calculated using the weighted-average method. The inventory is stated at the lower of cost or market value. Adjustments are recorded to write down the inventory to the estimated market value. The Group estimates excess and slow-moving inventory based upon assumptions of future demands and market conditions. If actual market conditions are less favorable than projected by management, additional inventory write-downs may be required. The Group invests in marketable equity securities to meet business objectives. These marketable securities are reported at fair value, classified and accounted for as available-for-sale securities in investment securities. The assessment of a decline in the fair value of an individual security is based on whether the decline is other-than-temporary. The Group assesses its available-for-sale securities for other-than-temporary impairment by considering factors including, but not limited to, its ability and intent to hold the individual security, severity of the impairment, expected duration of the impairment and forecasted recovery of fair value. Investments classified as available-for-sale securities are reported at fair value with unrealized gains or losses, if any, recorded in accumulated other comprehensive income in shareholders' equity. If the Group determines a decline in fair value is other-than-temporary, the cost basis of the individual security is written down to fair value as a new cost basis and the amount of the write-down is accounted for as a realized loss charged in the consolidated statement of income and comprehensive income. The fair values of the investments would not be adjusted for subsequent recoveries in fair values. The Group recorded no impairments of available-for-sale securities for the years ended December 31, 2015 and 2016. Prepaid land use right is valued at the cost to obtain the right less accumulated amortization. Amortization is computed on a straight-line basis over 50 Property and equipment are carried at cost less accumulated depreciation and amortization. Estimated useful lives Buildings 20 years Leasehold improvements Lesser of the term of the lease or the estimated useful lives of the assets Machinery 10 years Information Technology equipment 5 years Computers and office equipment 3-5 years Vehicles 3-4 years Acquired intangible assets, which consist primarily of distribution networks and trademarks, are valued at cost less accumulated amortization. Amortization is computed using the straight-line method over their expected useful lives of 5 15 Assets are classified as held-for-sale when management, having the authority to approve the action, commits to a plan to sell the asset, the sale is probable within one year, and the asset is available for immediate sale in its present condition. Consideration is given to whether an active program to locate a buyer has been initiated, whether the asset is marketed actively for sale at a price that is reasonable in relation to its current fair value, and whether actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. When a long-lived asset classified as held-for-sale shall be measured at the lower of its carrying amount or fair value less cost to sell. An impairment test is required and an impairment charge is recognized when the carrying value of the asset exceeds the estimated fair value, less transaction costs. Assets classified as held for sale are no longer depreciated. During 2015, the Group classified certain real estate properties of $ 3,808,471 11.3 The Group evaluates its long-lived assets and finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. When these events occur, the Group measures impairment by comparing the carrying amount of the assets to the future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the future undiscounted cash flow is less than the carrying amount of the assets, the Group would recognize an impairment loss equal to the excess of the carrying amount over the fair value of the assets. Affiliated companies are entities which the Group owes equity interest in common stock or in-substance common stock, over which the Group has significant influence, but which it does not control. The Group generally considers an ownership interest of 20 The affiliated companies in which the Group has non-significant influence are accounted for using cost method of accounting. Dividends received that are distributed from the net accumulated earnings of the investee are recognized in the Group’s consolidated statements of operations. Dividends received in excess of earnings are recorded as reductions of cost of the investment. A series of operating losses of the investee or other factors may indicate that a decrease in value of the investment has occurred which is other-than-temporary and should accordingly be recognized. The affiliated companies in which the Group has significant influence are accounted for using equity method of accounting. The share of earnings or losses of the investee are recognized in the Group’s consolidated statements of operations and adjusts the carrying amount of the investment. Dividends received reduce the carrying amount of the investment. The Group evaluates each equity method investment separately for impairment indicators and whether any decrease in value of the investment has occurred which is other-than-temporary. If the fair value of the investment is less than its cost and the impairment is other-than-temporary, then the Group would recognize an impairment loss equal to the excess of the carrying amount over the fair value of the investment. The amounts shown as convertible loan receivable in the consolidated balance sheet as at December 31, 2015 and 2016 represent a loan receivable from a third party (the “borrower”), net of provision for credit losses, if any. Interest income derived from the loan is recognized as incurred. For the option to convert, all or any part of the outstanding principles and unpaid accrued interest may be converted, in a single tranche, at the option of the Group (the “lender”) at any time prior to the maturity date of the loan, into such amount of equity interest in the borrower that represents a percentage of equity ownership obtained by dividing the aggregate outstanding principal and unpaid accrued interest on the Note on the date of conversion, by RMB 100,000,000 Direct sales, net The Group’s direct sales net revenues primarily represent product sales through our outbound marketing platforms (which until early 2015 included TV direct sales, or informercials) and our Internet sales platform. The Group recognizes net revenues for products sold through its direct sales platforms once the products are delivered to and accepted by the customers (“F.O.B. Destination”). The Group relies on China Express Mail Service Corporation (“EMS”) and local delivery companies to provide the Group data as to their successful deliveries for the Group’s direct sales products through our outbound marketing platforms. The Group relies on Yuantong, a local delivery company to provide the Group data as to their successful deliveries for the Group’s direct sales products through our Internet sales platforms. EMS and local delivery companies regularly report product delivery information. In 2014, 2015 and 2016, direct sales net revenues were adjusted in the current accounting period based on actual unsuccessful product deliveries experience reported by EMS and local delivery companies. For unsuccessful deliveries, EMS and local delivery companies are required to return the undelivered products to the Group. It generally takes two to three weeks for EMS to return the undelivered products to the Group whereas it generally takes approximately seven days for local delivery companies to do so. Distribution sales, net The Group’s distribution sales net revenues represent product sales to the distributors comprising the Group’s nationwide distribution networks. The distributor agreements do not provide discounts, chargeback, price protection or stock rotation rights. The Group recognizes net revenues for products sold through its nationwide distribution networks when the products are delivered to and accepted by the distributors (e.g. “F.O.B. Destination”). In most cases, the distributors are required to pay in advance for the Group’s products. Historically, some distributors are given customary credit terms based on the creditworthiness. Starting from 2016, the Group stopped granting credit terms to distributors. Sales taxes The Group presents revenues net of sales taxes incurred. The sales taxes amounted to $ 199,721 106,962 75,395 45,361,639 19,458,752 13,879,824 49,592,804 28,193,821 10,723,447 The Group records cash advances paid to advertising companies as prepaid advertising expenses in the consolidated balance sheets. The Group then expenses the prepaid advertising expenses as the advertisement is shown. In the first quarter of 2015, the Group decided to stop purchasing TV advertising time. The advertising expenses were $ 16,232,840 2,203,996 23,701 The Group records costs incurred for outbound shipping and handling as part of other selling and marketing expenses in the consolidated statements of operations. Shipping and handling costs were $ 4,902,307 2,059,934 1,158,019 Leases where substantially all the rewards and risks of ownership of assets remain with the leasing company are accounted for as operating leases. Payments made under operating leases are charged to the consolidated statements of operations on a straight-line basis over the lease periods. The Group receives unrestricted government subsidies from local government agencies. The government agencies use their discretion to determine the amount of the subsidies with reference to certain taxes paid by the Group, including value-added and income taxes. The Group records unrestricted government subsidies as other operating income in the consolidated statements of operations. The government subsidies in 2014, 2015 and 2016 were $ 829,238 201,168 66,648 Current income taxes are provided for in accordance with the relevant statutory tax laws and regulations. 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 losses are carried forward and credited by applying enacted statutory tax rates applicable to future years. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more-likely-than-not that some portion or all of the deferred tax assets will not be realized. The components of the deferred tax assets and liabilities are individually classified as current and non-current based on the characteristics of the underlying assets and liabilities, or the expected timing of their use when they do not relate to a specific asset or liability. The Group recognizes the impact of an uncertain income tax position at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant tax authority. The Group classifies interests and penalties related to income tax matters in income tax expense. The functional currency and reporting currency of Acorn International, China DRTV, Smooth Profit, MK AND T, and Bright Rainbow are the United States dollar (“US dollar”). Monetary assets and liabilities denominated in currencies other than the US dollar are translated into the US dollar at the rates of exchange ruling at the balance sheet date. Transactions in currencies other than the US dollar during the year are converted into US dollar at the applicable rates of exchange prevailing on the first day of the month in which the transactions occurred. Transaction gains and losses are recognized in the consolidated statements of operations as general and administrative expenses. The financial records of the Group’s PRC subsidiaries and VIEs are denominated in its local currency, the Renminbi (“RMB”), which is the functional currency. Assets and liabilities are translated at the exchange rates at the balance sheet date. Equity accounts are translated at historical exchange rates. Revenues, expenses, gains and losses are translated using the average rate for the period. Translation adjustments are reported as component of comprehensive income in the consolidated statements of comprehensive income (loss). The aggregated gains (losses) through foreign currency transactions in 2014, 2015 and 2016 were $ (31,847) (687,163) (380,350) Financial instruments that potentially expose the Group to concentration of credit risk consist primarily of cash and cash equivalents, restricted cash, accounts receivable, notes receivable and convertible loan. All of the Group’s cash and cash equivalents and restricted cash are held with large state-owned financial institutions. The Group engages delivery companies, mainly EMS express, to deliver products to customers and to collect cash from the customers for direct sales gross revenues through direct sales platforms. The Group conducts credit evaluations of delivery companies and generally does not require collateral or other security from its delivery companies. The Group establishes an allowance for doubtful accounts primarily based on the age of the receivables and factors surrounding the credit risk of specific customers. The Group evaluated its credit risk with the convertible loan by performing ongoing evaluation on the borrower’s financial condition. The loan agreement has a personal guarantee from Mr. Robert W. Roche, Acorn’s co-founder and current executive chairman and CEO, and pledged with the equity of the borrower. As of December 31, 2015 and 2016, no accounts receivables from a single delivery company were more than 10 Share-based compensation cost is measured at grant date, based on the fair value of the award, and recognized in expense over the requisite service period. For performance-based awards, the Group uses graded vesting when the performance condition is considered probable. The Group has made an estimate of expected forfeitures and is recognizing compensation costs only for those equity awards expected to vest. Basic income (loss) per share is computed by dividing income attributable to the Group’s shareholders by the weighted average number of ordinary shares outstanding during the year. Diluted income (loss) per ordinary share reflects the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised or converted into ordinary shares and is calculated using the treasury stock method for stock options and unvested shares. Common equivalent shares for which the exercise price exceeds the average market price over the period have an anti-dilutive effect on income per share and, accordingly, are excluded from the calculation. Common equivalent shares are also excluded from the calculation in loss periods as their effects would be anti-dilutive. A noncontrolling interest in a subsidiary of the Group represents the portion of the equity (net assets) in the subsidiary not directly or indirectly attributable to the Group. Noncontrolling interests are presented as a separate component of equity in the consolidated balance sheet and earnings and other comprehensive income are attributed to controlling and noncontrolling interests. Revenue from Contracts with Customers. In May 2014, the Financial Accounting Standards Board (FASB) issued an accounting standard update on revenue recognition that will be applied to all contracts with customers. The update requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects what it expects in exchange for the goods or services. It also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB issued ASU No. 2015-14, deferring the effective date for ASU 2014-09 by one year, and thus, the new standard will be effective for fiscal years beginning after December 15, 2017, with early application permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The guidance allows for either a full retrospective or a modified retrospective transition method. The Group continues to evaluate the effect of these accounting pronouncements on its financial statements and will adopt this new guidance on January 1, 2018 using the modified retrospective application method. Financial Instruments. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01), which requires that most equity investments be measured at fair value, with subsequent changes in fair value recognized in net income. The ASU also impacts financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. In addition, the FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. Entities will have to assess the realizability of such deferred tax assets in combination with the entities other deferred tax assets. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017 and for interim periods within that reporting period. The Company is currently evaluating the impact of its pending adoption of ASU 2016-01 on its consolidated financial statements. Leases. In February 2016, the FASB issued ASU No. 2016-02, Leases (ASU 2016-02), which increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early application permitted. Upon adoption, lessees must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is currently evaluating the impact of its pending adoption of ASU 2016-02 on its consolidated financial statements. Investments. In March 2016, the FASB issued ASU No. 2016-07, Investments Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting (ASU 2016-07), which requires the equity method investor to add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment qualifies for equity method accounting. ASU 2016-07 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years with early application permitted. The Company is not expecting any material impact from its adoption of ASU 2016-07 on its consolidated financial statements. Stock Compensation. In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting (ASU 2016-09), which is intended to simplify several aspects of the accounting for share-based payment award transactions. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, including interim periods. The Company will adopt this guidance in the first quarter of 2017 and will elect to continue to estimate forfeitures expected to occur to determine the amount of compensation cost to be recognized in each period. In the first quarter of 2017 the Company will record a $ 95 Financial Instruments. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments (ASU 2016-13). The standard changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. ASU 2016-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. Early adoption is permitted for fiscal years, and interim periods within those years, beginning after December 15, 2018. The Company is currently evaluating the timing of adoption and impact of this new standard on its consolidated financial statements. Statement of Cash Flows. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (ASU 2016-15), which is intended to reduce the existing diversity in practice in how certain cash receipts and cash payments are classified in the statement of cash flows. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years with early adoption permitted, provided that all of the amendments are adopted in the same period. The Company is currently evaluating the impact of its pending adoption of ASU 2016-15 on its consolidated financial statements. Income Taxes. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740), Intra-Entity Transfers of Assets Other Than Inventory (ASU 2016-16), which requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. This amends current GAAP which prohibits recognition of current and deferred income taxes for all types of intra-entity asset transfers until the asset has been sold to an outside party. ASU 2016-16 is effective for fiscal years beginning after December 15, 2017, including interim periods therein with early application permitted. Upon adoption, the Company must apply a modified retrospective transition approach through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. The Company is currently evaluating the impact of this new standard on its consolidated financial statements, as well as its planned adoption date. |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | 3. Inventory Inventory consisted of the following: December 31, 2015 2016 Raw materials and work in progress $ 287,971 $ 114,664 Finished goods and merchandise goods 3,847,653 3,862,672 $ 4,135,624 $ 3,977,336 As of December 31, 2015 and 2016, a portion of finished goods and merchandise goods and certain raw materials and work in process inventory were in excess of the Group’s current requirements based on the recent level of sales. The Group recorded inventory write-downs of $ 3,954,771 470,069 |
Other prepaid expenses and curr
Other prepaid expenses and current assets | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses And Other Current Assets Disclosure [Text Block] | 4. Other prepaid expenses and current assets December 31, 2015 2016 Advances to suppliers $ 1,885,213 $ 638,782 Receivable from sales of property 1,301,227 Value-added tax recoverable 1,231,788 738,221 Prepaid income tax 78,185 7,449 Other prepaid expenses 1,818,459 1,283,478 $ 6,314,872 $ 2,667,930 |
Property and equipment, net
Property and equipment, net | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | 5. Property and equipment, net December 31, 2015 2016 Buildings $ 19,297,436 $ 18,098,589 Computers and office equipment 7,781,700 4,711,617 Leasehold improvements Vehicles 461,609 445,391 Information Technology equipment 299,557 294,549 Machinery 330,447 210,551 $ 28,170,749 $ 23,760,697 Less: accumulated depreciation and amortization (11,555,449) (9,875,618) $ 16,615,300 $ 13,885,079 Depreciation and amortization expenses for property and equipment were $ 3,066,565 2,599,961 1,455,654 In 2015, the Group sold three apartments in Beijing for $ 3,195,454 426,220 192,504 1,739,443 6,076,530 3,808,471 5,778,669 In 2014 and 2015, the Group early terminated leases on some certain of its offices, and wrote-off the related leasehold improvement with the carrying amount of $ 529,187 325,341 529,187 325,341 |
Acquired intangible assets, net
Acquired intangible assets, net | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Disclosure [Text Block] | 6. Acquired intangible assets, net December 31, 2015 2016 Distribution networks $ 2,329,849 $ 2,329,849 Trademarks 2,879,106 2,830,716 $ 5,208,955 $ 5,160,565 Less: accumulated amortization (4,331,985) (4,585,292) $ 876,970 $ 575,273 The Group recorded amortization expenses of $ 301,697 301,697 301,697 221,584 141,470 141,470 70,749 |
Investments in affiliates
Investments in affiliates | 12 Months Ended |
Dec. 31, 2016 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Investments in and Advances to Affiliates, Schedule of Investments [Text Block] | Investments accounted for under the cost method of accounting Shanghai Yimeng Software Technology Co., Ltd. (“Yimeng”) was established with the shareholding of 51 49 6,996,949 On August 10, 2016, the Group acquired 5% of the then fully diluted share capital of ClearCut Corporation, or ClearCut, a Delaware corporation, for cash of US$150,000. The Group exerted no significant influence in Clearcut and accounted for this investment using the cost method of accounting. Our equity in losses of ClearCut in 2016 was $150,000, and were recognized in equity in losses of affiliates in the consolidated statements of operations. Investments accounted for under the equity method of accounting In January 2010, Shanghai An-Nai-Chi, a company which previously was a 51.0 1.5 33.2 1.1 On December 31, 2012, the Group acquired 9.3 1.3 7.6 9.3 8.7 0.6 235,161 226,780 718,121 |
Available-for-sale securities
Available-for-sale securities | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | 8. Available-for-sale securities The Group’s available-for-sale securities represent marketable equity securities investments in Yimeng. On July 29, 2015, Yimeng became listed on NEEQ and quoted prices of the investment in active market became available, the Group's equity interests in Yimeng were diluted to 10.34 181,164,778 74,666,865 178,485,994 44,621,498 18,172,231 |
Convertible loan receivable
Convertible loan receivable | 12 Months Ended |
Dec. 31, 2016 | |
Convertible Loan [Abstract] | |
Convertible Loans Receivables [Text Block] | 9. Convertible loan receivable In October 2014, Ryecor China Investment Limited (“Ryecor”, the original Lender), a company owned by the Mr. Robert W. Roche , entered into an agreement with Shanghai e-Surer Financial Services Co., Ltd. (“E-surer”, the Borrower) on October 2014, whereby Rvecor lent E-surer a RMB 20,000,000 6 August 22, 2018 20.0 100,000,000 51 3,024,933 In September 2015, the Group entered into an assignment with Ryecor, pursuant to which Ryecor assigned to the Group all of its rights and delegated to the Group all of its obligation in exchange of a cash payment of $ 3,024,933 3,257,622 3,218,665 232,690 184,170 |
Accrued expenses and other curr
Accrued expenses and other current liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
Accrued And Other Current Liabilities [Text Block] | 10. Accrued expenses and other current liabilities December 31, 2015 2016 Other taxes payable $ 960,959 $ 901,027 Accrued employee payroll and welfare 2,094,398 3,618,234 Other payable 3,085,960 608,232 Accrued expenses 3,167,689 3,574,243 Advances from customers 1,606,932 430,430 Down payment from sales of property 939,757 $ 11,855,695 $ 9,132,166 Other taxes payable mainly consist of value-added tax and related surcharges and PRC individual income tax of employees withheld by the Group. The Group’s PRC subsidiaries are subject to value-added tax at a rate of 17 The Group received $ 939,757 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | 11. Debt The Group entered into a two-year loan agreement with Bank of Communications of China on March 13, 2013 with a borrowing amount of $ 8.45 1.80 2.2459 February 10, 2015 |
Share-based compensation
Share-based compensation | 12 Months Ended |
Dec. 31, 2016 | |
Share-based Compensation [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 12. Share-based compensation In May 2006, the Group adopted the 2006 Equity Incentive Plan (the “2006 Option Plan”) which allows the Group to offer a variety of incentive awards to employees, officers, directors or individual consultants or advisors who render services to the Group and authorized the issuance of 24,133,000 ten six 25 75 In 2012, the Group granted RSUs to an officer of the Group that requires no exercise price. One-half of the RSUs granted are time-based shares which will vest one-third on the last day of each year during the three years following the grant date. The other half of the RSUs granted are performance-based which will vest upon the satisfaction of certain performance targets. The holders of the RSUs are not entitled to voting but have the right to receive dividend equivalents with respect to any unpaid RSUs they hold as of the applicable record date for any dividend payment if Acorn International declares a cash dividend on its outstanding ordinary shares. The dividend equivalents are subject to the same vesting and other terms as the original RSUs to which they relate. On April 8, 2016, the Group granted 2,800,000 1,800,000 1,000,000 The Group recorded compensation expense of $ 428,000 71,333 658,000 The fair value of each RSU granted in 2012 and 2016 were based on quoted market price of the Group’s ordinary share on the grant date. There is no share option granted, vested and exercised during 2014, 2015 and 2016. Weighted average Number of RSUs grant date fair value Nonvested at January 1, 2016 $ Granted 2,800,000 $ 4.7 Forfeited $ Vested (2,800,000) $ 4.7 Nonvested at December 31, 2016 $ As of December 31, 2016, there was no unrecognized compensation expense related to unvested share-based compensation arrangements granted under the 2006 Option Plan. |
Fair value measurements
Fair value measurements | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Text Block [Abstract] | |
Fair Value, Measurement Inputs, Disclosure [Text Block] | 13. Fair value measurements Assets and Liabilities Measured at Fair Value on a Recurring Basis The Group did not have any financial assets and liabilities or nonfinancial assets and liabilities that were required to be measured at fair value on a recurring basis as at December 31, 2014. The Group's financial assets and liabilities or nonfinancial assets and liabilities that were required to be measured at fair value on a recurring basis as at December 31, 2015 and 2016 include available-for-sale securities investments. Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant As of Identical Observable Unobservable December 31, Assets Inputs Inputs Description 2016 (Level 1) (Level 2) (Level 3) USD USD USD USD Available-for-sale investments- marketable equity securities 74,666,865 74,666,865 As of December 31, 2015, information about inputs into the fair value measurements of the Group's assets and liabilities that are measured at fair value on a recurring basis in periods subsequent to their initial recognition is as follows. Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant As of Identical Observable Unobservable December 31, Assets Inputs Inputs Description 2015 (Level 1) (Level 2) (Level 3) USD USD USD USD Available-for-sale investments- marketable equity securities 181,164,778 181,164,778 Available-for-sale securities investments represent the marketable equity securities invested by the Group. The marketable equity securities are carried at fair values. The Group measures its listed equity securities using quoted prices for the underlying securities in active markets, and accordingly, the Group classifies the valuation techniques that use these inputs as Level 1. As of December 31, 2015 and 2016, gross unrealized gains (losses) of $ 178,485,994 The Group did not have any assets and liabilities that were measured at fair value on a nonrecurring basis |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 14. Taxation Acorn International is incorporated in the Cayman Islands and is not subject to tax in this jurisdiction. China DRTV and Smooth Profit are incorporated in the British Virgin Islands and are not subject to tax in this jurisdiction. The Group’s Hong Kong subsidiaries, MK AND T, Bright Rainbow, and HJX International Limited, are subject to Hong Kong statutory income tax on their Hong Kong sourced income. All of the Group’s PRC subsidiaries are subject to the statutory rate of 25 Under the New EIT Law and implementation regulations issued by the PRC State Council, income tax at the rate of 10 10 A deferred tax liability should be recorded for the VIEs to the extent of their accumulated profit. As the VIEs have accumulated losses, no deferred tax liability has been provided by the Group. The Group has made its assessment of each tax position (including the potential application of interests and penalties) based solely on the technical merits of the position, and has measured the unrecognized benefits associated with the tax positions. As of December 31, 2014, 2015 and 2016, the Group had unrecognized tax benefits of approximately $ 1.8 1.9 1.7 1.1 0.1 0.1 As of December 31, 2014, the amount of interests and penalties related to uncertain tax positions was immaterial. As of December 31, 2015 and 2016, the amount of interests and penalties related to uncertain tax positions was $ 75,383 99,024 According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of income taxes is due to computational errors made by the taxpayer. The statute of limitations will be extended to five years under special circumstances, which are not clearly defined, but an underpayment of income tax liability exceeding RMB 100,000 15,000 2011 2016 2006 2016 For the years ended December 31, 2014 2015 2016 Current income tax expenses $ (1,280,181) $ (363,081) $ (4,169,360) Deferred income tax benefits (expenses) 109,664 179,990 (423,423) (1,170,517) (183,091) (4,592,783) For the years ended December 31, 2014 2015 2016 PRC statutory tax rate 25 % 25 % 25 % Expenses not deductible for tax purposes 1 % (1) % 4 % Effect of different tax rate of subsidiary operations in other jurisdiction (1) % (2) % (15) % Change in valuation allowance (24) % (21) % 36 % Effect of change in tax rate on deferred tax assets/liabilities (1) % (0) % (0) % Expiration of net operating loss (0) % (1) % Utilization (Recognition) of the unrecognized tax benefit (3) % (0) % 2 % Others (0) % (0) % Effective tax rate (3) % 0 % 52 % December 31, 2015 2016 Deferred tax assets: Allowance and reserves $ 3,973,199 $ 2,344,940 Accrued expenses 738,298 969,498 Revenue recognition difference 162,322 145,504 Advertising expenses 1,765,847 650,244 Net operating losses 31,156,628 29,490,696 $ 37,796,294 $ 33,600,882 Less: valuation allowance (36,720,140) (33,012,389) $ 1,076,154 $ 588,493 Deferred tax liabilities: Unrealized gain on available-for-sale securities (44,449,212) (18,017,610) $ (44,449,212) $ (18,017,610) $ (43,373,058) $ (17,429,117) Deferred tax assets were analyzed as: Current $ 1,076,154 $ 588,493 Deferred tax liabilities were analyzed as: Non-current (44,449,212) (18,017,610) $ (44,449,212) $ (18,017,610) $ (43,373,058) $ (17,429,117) As of December 31, 2016, the Group had tax losses carrying forward of $ 118,991,264 2017 2021 The Group considers positive and negative evidence to determine whether some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, the Group believes it is not more-likely-than-not that the Group will realize the benefits of these deductible differences. As of December 31, 2015 and 2016, the Group had valuation allowance at $ 36.7 33.0 |
Other income, net
Other income, net | 12 Months Ended |
Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Other Income and Other Expense Disclosure [Text Block] | 15. Other income, net For the years ended December 31, 2014 2015 2016 Investment gain 18,088,327 Others (446,662) 195,355 (417,304) $ (446,662) $ 195,355 $ 17,671,023 From January 2016, the Group started to sell its shares in Yimeng. In 2016, the Group sold 8.0 126.0 18.1 |
Loss per share
Loss per share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 16. Loss per share 0 0 For the years ended December 31, 2014 2015 2016 Numerator: Net income (loss) attributable to Acorn International, Inc. shareholders from operationsbasic and diluted $ (44,328,912) $ (40,158,654) $ 3,438,370 Denominator: Weighted average ordinary shares outstandingbasic and diluted 82,690,613 79,226,404 75,600,700 Income (Loss) per ordinary share: Basic and diluted $ (0.54) $ (0.51) $ 0.05 The Group had 2,635,482 |
Mainland China contribution pla
Mainland China contribution plan and profit appropriations | 12 Months Ended |
Dec. 31, 2016 | |
Mainland China Contribution Plan and Profit Appropriation [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 17. Mainland China contribution plan and profit appropriation Employees of the Group in the PRC are entitled to retirement benefits calculated with reference to their salary basis upon retirement and their length of service in accordance with a PRC government-managed retirement plan. The PRC government is directly responsible for the payments of the benefits to these retired employees. The Group is required to make contributions to the government-managed retirement plan based on certain percentages of the employees’ monthly salaries. The amounts contributed by the Group were $ 1,952,480 908,355 558,385 In addition, the Group is required by law to contribute medical, unemployment, housing and other statutory benefits based on certain percentages of the employees’ monthly salaries. The PRC government is directly responsible for the payments of the benefits to these employees. The amounts contributed by the Group were $ 1,968,199 963,160 659,855 In accordance with relevant PRC Company Law and regulations and the Group’s Articles of Association, the Group’s PRC subsidiaries were required to appropriate 10 8,291,403 8,351,153 50 |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 18. Commitments and contingencies (A) Leases commitments The Group leases certain office premises and buildings under non-cancelable leases. Rental expenses under operating leases for 2014, 2015 and 2016 were $ 2,908,304 1,553,580 619,262 2017 $ 138,788 2018 39,454 2019 627 2020 and thereafter $ 178,869 (B) Legal matters The Group is a party to legal matters and claims that are normal in the course of its operations. While the Group believes that the ultimate outcome of these matters will not have a material adverse effect on its financial position, results of operations and cash flows, the outcome of these matters is not determinable with certainty and negative outcomes may adversely affect the Group. |
Segment and geographic informat
Segment and geographic information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 19. Segment and geographic information The Group’s two primary sales platforms are integrated direct sales and a nationwide distribution network. Direct sales platforms include outbound marketing platform (which until early 2015 included TV direct sales) and Internet sales platform. The Group’s chief operating decision maker has been identified as the chairman of the Board of Directors and the CEO. The Group uses the management approach to determine operating segments. The management approach considers the internal organization and reporting used by the Group’s chief operating decision makers for making decisions, allocating resources and assessing performance. Based on this assessment, the Group has determined that it has two operating and reportable segments, which are direct sales, net and distribution sales, net. The Group’s chief operating decision maker evaluates segment performance based on revenues, cost of revenues and gross profit. Accordingly, all expenses are considered corporate level activities and are not allocated to segments. Therefore, it is not practical to show profit or loss by reportable segments. Also, the Group’s chief decision maker does not assign assets to these segments. For the years ended December 31, Product 2014 2015 2016 Health products $ 9,876,415 $ 8,101,683 $ 11,776,863 Electronic learning products 44,137,557 24,637,772 8,071,401 Mobile phones 6,000,241 5,032,111 1,722,626 Collectible products 15,413,624 5,646,352 1,573,757 Kitchen and household 9,809,998 1,591,090 397,722 Fitness products 4,554,072 765,679 217,226 Cosmetics products 853,133 220,364 103,330 Consumer electronics products 61,161 88,811 41,437 Auto products 191,314 49,461 1,026 Other products 4,056,928 1,519,250 697,883 Total gross revenues $ 94,954,443 $ 47,652,573 $ 24,603,271 Less: sales taxes (199,721) (106,962) (75,395) Total revenues, net $ 94,754,722 $ 47,545,611 $ 24,527,876 Year ended December 31, 2014 Direct sales Distribution sales Total Revenue, net $ 45,232,943 $ 49,521,779 $ 94,754,722 Cost of revenue 24,352,882 32,570,037 56,922,919 Gross profit $ 20,880,061 $ 16,951,742 $ 37,831,803 Year ended December 31, 2015 Direct sales Distribution sales Total Revenue, net $ 19,405,793 $ 28,139,818 $ 47,545,611 Cost of revenue 13,388,423 21,498,735 34,887,158 Gross profit $ 6,017,370 $ 6,641,083 $ 12,658,453 Year ended December 31, 2016 Direct sales Distribution sales Total Revenue, net $ 13,833,208 $ 10,694,668 $ 24,527,876 Cost of revenue 2,728,390 9,243,903 11,972,293 Gross profit $ 11,104,818 $ 1,450,765 $ 12,555,583 Geographic information The Group operates in the PRC and all of the Group’s long-lived assets are located in the PRC. In 2014, 2015 and 2016, no customer accounted for 10% or more of the Group’s net revenues. |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 20. Related party transactions In 2015 and 2016, the Group entered into a series of business cooperation with certain entities in which Mr. Robert W. Roche, a major shareholder, a director the executive chairman and CEO of Acorn International, owns substantial equity interests. The table below sets forth major related parties and their relationships with the Group: Company Name Relationship with the Group Dreamstart (Hong Kong) Ltd., (“Dreamstart”) Affiliate of CEO of the Group IS Seafood Affiliate of CEO of the Group China Branding Group (“ CBG”) Affiliate of the Group JG Fashion Group LLC (“JG Fashion”) Affiliate of CEO of the Group Ryecor China Investment Limited (“Ryecor”) Affiliate of CEO of the Group Acorn Composite Corporation (“Acorn Composite”) Affiliate of CEO of the Group Lu&co Consultancy Co., Ltd (“Lu&co”) Affiliate of VP of the Group Dragon Law Limited (“Dragon Law”) Affiliate of COO of the Group URBN Hotels & Resorts (“URBN Hotels”) Affiliate of CEO of the Group Jia He Hotel Affiliate of CEO of the Group Cachet hotel group (“Cachet hotel group”) Affiliate of CEO of the Group Details of the transactions for the years ended December 31, 2014, 2015 and 2016 were as follows: For the years ended December 31, 2014 2015 2016 Dreamstart $ 1,187,922 $ 1,611,256 $ 454,845 CBG $ 391,800 $ 208,330 $ JG Fashion $ 309,473 $ 207,461 $ Lu&co $ $ 9,402 $ 10,675 Acorn Composite $ $ $ 924,757 IS Seafood $ $ $ 22,810 Dragon Law $ $ 2,026 $ 2,785 URBN Hotels $ $ $ 2,820 Jia He Hotel $ $ $ 2,513 Cachet hotel $ $ $ 1,307 During 2014, 2015 and 2016, the Group paid $ 1.2 1.6 0.5 In 2014, the Group received advertising production, celebrity endorsement service from CBG and paid $ 0.4 0.2 Lu&co, a company wholly owned by Ms. Jan Jie Lu, Business Operation Vice President of the Group, entered into a consultancy agreement with the Group on September 1, 2015 prior to Ms. Lu joining the Group. Under the agreement, the Group should pay Lu&co the consultancy fees of RMB 15,000 9,402 10,675 In 2014 and 2015, the Group purchased fashion accessories such as shoes and handbags for Internet sales from JG Fashion and paid $ 0.3 0.2 In 2016, the Group purchased seafood such as cod, lobster, halibut and scampi which is originated from Iceland for Internet sales from IS Food and paid $ 0.02 In 2015 and 2016, the Group paid $ 2,026 2,785 In 2016, the Group made $ 2,820 2,513 1,307 Furthermore, the Group leased out vacant premises to CBG and provided administrative and human resources services to CBG in 2014. And the amount was then fully settled with CBG in 2015. For the years ended December 31, Other transactions with CBG 2014 2015 2016 Lease income $ 97,635 $ $ Service income $ 48,818 $ $ As of December 31, 2015 and 2016, the balance due from and due to related parties were as follows: December 31, 2015 2016 Other receivables - CBG $ $ Other receivables - Ryecor $ 77,597 $ Other payables - Mr. Robert W. Roche $ 924,757 $ Account payable - IS seafood $ $ 15,537 Other receivables - URBN Hotels $ $ 3,171 The amount due from CBG as of December 31, 2014 is mainly contributed from the lease income and service income during 2014. Besides, on July 4, 2013, the Group provided a related party loan of $ 21,850 7 The Group’s CEO Mr. Roche has incurred certain costs amounting to $ 924,757 followed (refer to Note 9) For the years ended December 31, Cash payment to the related party (see Note 9) 2015 2016 Acorn Composite $ 1,870,547 $ Ryecor $ 1,154,386 $ On May 27, 2015, to facilitate the settlement among shareholders, the Group entered into a Transitional Services and Separation Agreement ("TSSA") with Mr. Don Dongjie Yang (Ex-CEO) to acquire all of his ordinary shares in the Group ( 6,518,656 750,000 |
Restricted net assets
Restricted net assets | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Restricted Assets Disclosure [Text Block] | 21. Restricted net assets Relevant PRC laws and regulations permit payments of dividends by the Group’s PRC subsidiaries only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. As a result of these PRC laws and regulations, the Group’s PRC subsidiaries are restricted in their abilities to transfer a portion of their net assets either in the form of dividends, loans or advances, which restricted portion amounted to $ 48,187,474 20,336,734 |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 22. Subsequent events In February 2017, HJX International Limited, a previously consolidated subsidiary of the Group, was deregistered. In March 2017, Shanghai Acorn HJX Software Technology Development Co., Ltd., a previously consolidated subsidiary of the Group, was deregistered. Through January 1, 2017 to the date of this annual report, the Group has sold approximately 4.6 64.9 32.7 |
ADDITIONAL INFORMATION-FINANCIA
ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | ADDITIONAL INFORMATIONFINANCIAL STATEMENT SCHEDULE I ACORN INTERNATIONAL, INC. These financial statements have been prepared in conformity with accounting principles generally accepted in the United States. FINANCIAL INFORMATION OF PARENT COMPANY BALANCE SHEETS (In US dollars, except share data) December 31, 2015 2016 Assets Current assets: Cash and cash equivalents $ 2,113,203 $ 6,324,046 Other current assets 112,808 113,826 Amounts due from subsidiaries 5,702,990 722,696 Loan receivable 2,010,838 1,909,741 Total current assets 9,939,839 9,070,309 Investments in subsidiaries 170,889,687 91,603,716 Total assets $ 180,829,526 $ 100,674,025 Liabilities and equity Current liabilities: Other current liabilities $ 1,717,051 $ 1,503,471 Amount due to subsidiaries 792,257 Total current liabilities 2,509,308 1,503,471 Total liabilities 2,509,308 1,503,471 Equity: Ordinary shares ($0.01 par value; 100,000,000 shares authorized, 89,018,518 and 91,818,518 shares issued and 76,531,135 and 75,406,875 shares outstanding as of December 31, 2015 and 2016, respectively) 890,185 918,185 Additional paid-in capital 161,308,330 161,938,330 Accumulated deficits (126,349,246) (122,910,876) Accumulated other comprehensive income 162,580,400 80,865,261 Treasury stock, at cost (12,487,383 and 16,411,643 shares as of December 31, 2015 and 2016, respectively) (20,109,451) (21,640,346) Total equity 178,320,218 99,170,554 Total liabilities and equity $ 180,829,526 $ 100,674,025 FINANCIAL INFORMATION OF PARENT COMPANY STATEMENTS OF OPERATIONS (In US dollars) For the years ended December 31, 2014 2015 2016 Operating expenses: Other selling and marketing expenses $ 357 $ 207,461 $ 270 General and administrative expenses 1,888,954 2,638,398 2,800,959 Total operating expenses 1,889,311 2,845,859 2,801,229 Loss from operations (1,889,311) (2,845,859) (2,801,229) Other expenses (189,653) 112,848 128,188 Loss before income taxes (2,078,964) (2,733,011) (2,673,041) Equity in losses of an affiliate (150,000) Income taxes Equity in gains (losses) of subsidiaries (42,249,948) (37,425,643) 6,261,411 Net income (loss) of Acorn International, Inc. shareholders $ (44,328,912) $ (40,158,654) $ 3,438,370 FINANCIAL INFORMATION OF PARENT COMPANY STATEMENTS OF COMPREHENSIVE LOSS (In US dollars, except share data) For the years ended December 31, 2014 2015 2016 Net income (loss) $ (44,328,912) $ (40,158,654) $ 3,438,370 Other comprehensive income, net of tax Unrealized gain (loss) of available-for-sales securities in the subsidiaries, net of tax of $ 44,621,498 and $ (18,172,231) in 2015 and 2016, respectively. 130,928,599 (53,999,944) Foreign currency translation adjustments (700,108) (2,933,003) (27,715,195) Comprehensive loss of Acorn International, Inc. (45,029,020) 87,836,942 (78,276,769) FINANCIAL INFORMATION OF PARENT COMPANY STATEMENTS OF CASH FLOWS (In US dollars) For the years ended December 31, 2014 2015 2016 Operating activities: Net income (loss) attributable to Acorn International, Inc. shareholders $ (44,328,912) $ (40,158,654) $ 3,438,370 Share-based compensation 428,000 71,333 658,000 Exchange losses of convertible loan 213,330) Equity in losses of affiliates 150,000 Equity in losses (gains) of subsidiaries 42,249,948 37,425,643 (6,261,411) Accrued interests on long-term debt 4,126 Accrued interests on convertible loan (140,291) (112,233) Changes in operating assets and liabilities: Other current assets (19,267 (24,389) (1,019) Other current liabilities (48,564 1,135,638 (213,579) Net cash used in operating activities $ (1,714,669) $ (1,690,720) $ (2,128,542) Investing activities: Cash received from capital deduction of YiyangYukang 3,056,479 Disbursement for loan receivables (1,870,547) Investment in an affiliate (150,000) Investment in an subsidiary (1,567,757) Dividend received 6,506,710 5,400,000 Net cash provided by investing activities $ 3,056,479 $ 4,636,163 $ 3,682,243 Financing activities: Repayment of Long-term debt (8,506,324) Amounts due from subsidiaries 27,643 3,178,570 4,980,294 Amounts due to subsidiaries 849,784 (57,527) (792,257) Repurchase of ordinary shares (375,000) (1,530,895) Net cash provided by (used in) financing activities $ 877,427 $ (5,760,281) $ 2,657,142 Net increase (decrease) in cash and cash equivalents $ 2,219,237 $ (2,814,838) $ 4,210,843 Cash and cash equivalents at the beginning of the year 2,708,804 4,928,041 2,113,203 Cash and cash equivalents at the end of the year $ 4,928,041 $ 2,113,203 $ 6,324,046 Note to Schedule I 1) Schedule I has been provided pursuant to the requirements of Rule 12-04(a) and 5-04(c) of Regulation S-X, which require condensed financial information as to the financial position, changes in financial position and results of operations of a parent company as of the same dates and for the same periods for which audited consolidated financial statements have been presented when the restricted net assets of consolidated subsidiaries exceed 25 2) As disclosed in Note 1 to the consolidated financial statements, the Company was incorporated in the British Virgin Islands (“BVI”) on March 4, 2 0 3) The condensed financial information has been prepared using the same accounting policies as set out in the consolidated financial statements except that the equity method has been used to account for investments in its subsidiaries and VIE. For the parent company, the Company records its investments in subsidiaries and VIE under the equity method of accounting as prescribed in ASC 323, Investments-Equity Method and Joint Ventures . Such investments are presented on the Condensed Balance Sheets as “Investment in subsidiaries and VIE” and the subsidiaries and VIE’ profit or loss as “Equity in income/loss of subsidiaries” on the Condensed Statements of Comprehensive Loss. Ordinarily under the equity, an investor in an equity method investee would cease to recognize its share of the losses of an investee once the carrying value of the investment has been reduced to nil absent an undertaking by the investor to provide continuing support and fund losses. For the purpose of this Schedule I, the parent company has continued to reflect its share, based on its proportionate interest, of the losses of subsidiaries and VIE regardless of the carrying value of the investment even though the parent company is not obligated to provide continuing support or fund losses. 4) As of December 31, 2015 and 2016, there were no material contingencies, significant provisions of long-term obligations, mandatory dividend or redemption requirements of redeemable stocks or guarantees of the Company. Nil, 6,506,710 5,400,000 |
ADDITIONAL INFORMATION-FINANC32
ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE II | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | ADDITIONAL INFORMATIONFINANCIAL STATEMENT SCHEDULE II ACORN INTERNATIONAL, INC. VALUATION AND QUALIFYING ACCOUNTS Charged to/ Balance at (Reducted from) Beginning Costs and Balance at End Description of Year Expenses Write-off of Year Allowance for accounts receivable -2016 $ 5,398,166 $ (18,096) $ (1,677,556) $ 3,702,514 -2015 $ 3,127,348 $ 2,270,818 $ $ 5,398,166 -2014 $ 3,508,859 $ (180,039) $ (201,472) $ 3,127,348 Allowance for prepaid advertising expenses -2016 $ 1,107,706 $ $ (70,802) $ 1,036,904 -2015 $ $ 1,107,706 $ $ 1,107,706 -2014 $ $ $ $ Allowance for prepaid expenses and current assets -2016 $ 605,445 $ (169,097) $ $ 436,348 -2015 $ 127,192 $ 478,253 $ $ 605,445 -2014 $ 127,653 $ (461) $ $ 127,192 Allowance for deferred tax assets -2016 $ 35,657,594 $ (2,645,205) $ $ 33,012,389 -2015 $ 30,287,901 $ 5,369,693 $ $ 35,657,594 -2014 $ 20,170,712 $ 10,117,189 $ $ 30,287,901 |
Summary of principal accounti33
Summary of principal accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | (a) Basis of presentation The consolidated financial statements of the Group have been prepared in accordance with the accounting principles generally accepted in the United States of America (“US GAAP”). |
Consolidation, Policy [Policy Text Block] | (b) Basis of consolidation The consolidated financial statements include the financial statements of Acorn International, its majority-owned subsidiaries and consolidated VIEs. All intercompany transactions and balances are eliminated upon consolidation. Net income or loss of a subsidiary is attributed to the Group and to the noncontrolling interests even if this results in the noncontrolling interests having a deficit balance. Noncontrolling interests in subsidiaries are presented separately from the Group’s equity therein. |
Use of Estimates, Policy [Policy Text Block] | (c) Use of estimates The preparation of financial statements in conformity with US GAAP requires the Group to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant accounting estimates reflected in the Group’s financial statements include allowance for doubtful accounts, inventory valuation, impairment of long-lived assets, and valuation allowance on deferred tax assets and provision for uncertain tax positions. |
Liquidity Disclosure [Policy Text Block] | Although the Group experienced an operating loss and negative cash flows from operations in the year ended December 31, 2016 and had accumulated deficits as of that date, the Group had improved liquidity position by selling non-core assets and investments. Furthermore, the Group is continually focused on saving cost in all business scope, as well as Group management level, including reducing HC, shifting of service vendor and etc. As a result, the accompanying consolidated financial statements have been prepared assuming the Group will continue as a going concern. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (also referred to as an exit price) and expands disclosure requirements about assets and liabilities measured at fair value. The guidance establishes a hierarchy for inputs used in measuring fair value that gives the highest priority to observable inputs and the lowest priority to unobservable inputs as follows: • Level 1Observable unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2Observable inputs other than quoted prices in active markets for identical assets or liabilities, for which all significant inputs are observable, either directly or indirectly. • Level 3Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. When available, the Group measures the fair value of financial instruments based on quoted market prices in active markets, valuation techniques that use observable market-based inputs or unobservable inputs that are corroborated by market data. The Group uses valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Assets and liabilities measured at fair value are classified in the categories of Level 1, Level 2, and Level 3 based on the lowest level input that is significant to the fair value measurement in its entirety. Pricing information the Group obtains from third parties is internally validated for reasonableness prior to use in the consolidated financial statements. When observable market prices are not readily available, the Group generally estimates the fair value using valuation techniques that rely on alternate market data or inputs that are generally less readily observable from objective sources and are estimated based on pertinent information available at the time of the applicable reporting periods. In certain cases, fair values are not subject to precise quantification or verification and may fluctuate as economic and market factors vary and the Group’s evaluation of those factors changes. Although the Group uses its best judgment in estimating the fair value of these financial instruments, there are inherent limitations in any estimation technique. In these cases, a minor change in an assumption could result in a significant change in its estimate of fair value, thereby increasing or decreasing the amounts of the Group’s consolidated assets, liabilities, equity and net income or loss. The Group’s financial instruments consist of cash and cash equivalents, restricted cash, accounts receivable, notes receivable, convertible loan receivable, available-for-sale securities, accounts payable and long-term debt. For cash and cash equivalents, restricted cash, accounts receivable, notes receivable and accounts payable, the carrying amounts of these financial instruments as of December 31, 2015 and 2016 were considered representative of their fair values due to their short-term nature. The marketable securities are carried at fair values. The carrying values of long-term debt and convertible loan receivable approximate their fair values as the impacts to discount the long-term debt and convertible loan receivable with a market based interest rate are insignificant. |
Cash and Cash Equivalents, Policy [Policy Text Block] | 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. At December 31, 2015 and 2016, cash equivalents were comprised of investments in time deposits and money market funds stated at cost plus accrued interests totaling to $6.9 million and $7.5 million, respectively. C ash balances of the Group that are included in the cash and cash equivalents of the consolidated balance sheets, including those denominated in RMB, may be withdrawn and used for the Group’s general operations without prior notice or penalty. The PRC government imposes certain controls on the convertibility of the RMB into foreign currencies, and in certain cases, the remittance of currency out of China. However, the Group does not consider the process for converting RMB into foreign currency in compliance with these controls to be a usage restriction and such process is not expected to result in any penalties provided that the Group complies with all above-mentioned processes as required. The RMB is not a freely convertible currency. The PRC State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB 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 China’s foreign exchange trading system market. The Group’s aggregate amount of cash and cash equivalents and restricted cash denominated in RMB amounted to RMB 65,663,822 10,112,083 133,023,148 19,175,890 |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | (g) Restricted cash Under third-party bank channel sales arrangements, the Group is required to maintain certain cash balances in the banks. These balances related to the third-party bank channel sales arrangements were reflected as restricted cash in the balance sheet and amounted to $ 126,278 72,077 |
Inventory, Policy [Policy Text Block] | (h) Inventory The cost of inventory comprises all costs of purchase, costs of conversion, and other costs incurred to bring inventory to its present location and condition. The cost of inventory is calculated using the weighted-average method. The inventory is stated at the lower of cost or market value. Adjustments are recorded to write down the inventory to the estimated market value. The Group estimates excess and slow-moving inventory based upon assumptions of future demands and market conditions. If actual market conditions are less favorable than projected by management, additional inventory write-downs may be required. |
Marketable Securities, Available-for-sale Securities, Policy [Policy Text Block] | (i) Available for sale securities The Group invests in marketable equity securities to meet business objectives. These marketable securities are reported at fair value, classified and accounted for as available-for-sale securities in investment securities. The assessment of a decline in the fair value of an individual security is based on whether the decline is other-than-temporary. The Group assesses its available-for-sale securities for other-than-temporary impairment by considering factors including, but not limited to, its ability and intent to hold the individual security, severity of the impairment, expected duration of the impairment and forecasted recovery of fair value. Investments classified as available-for-sale securities are reported at fair value with unrealized gains or losses, if any, recorded in accumulated other comprehensive income in shareholders' equity. If the Group determines a decline in fair value is other-than-temporary, the cost basis of the individual security is written down to fair value as a new cost basis and the amount of the write-down is accounted for as a realized loss charged in the consolidated statement of income and comprehensive income. The fair values of the investments would not be adjusted for subsequent recoveries in fair values. The Group recorded no impairments of available-for-sale securities for the years ended December 31, 2015 and 2016. |
Land Use Rights [Policy Text Block] | (j) Prepaid land use right Prepaid land use right is valued at the cost to obtain the right less accumulated amortization. Amortization is computed on a straight-line basis over 50 |
Property, Plant and Equipment, Policy [Policy Text Block] | (k) Property and equipment, net Property and equipment are carried at cost less accumulated depreciation and amortization. Estimated useful lives Buildings 20 Leasehold improvements Machinery 10 Information Technology equipment 5 Computers and office equipment 3 5 Vehicles 3 4 |
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | (l) Acquired intangible assets, net Acquired intangible assets, which consist primarily of distribution networks and trademarks, are valued at cost less accumulated amortization. Amortization is computed using the straight-line method over their expected useful lives of 5 15 |
Long Lived Assets, Held For Sale [Policy Text Block] | (m) Held-for-sale assets Assets are classified as held-for-sale when management, having the authority to approve the action, commits to a plan to sell the asset, the sale is probable within one year, and the asset is available for immediate sale in its present condition. Consideration is given to whether an active program to locate a buyer has been initiated, whether the asset is marketed actively for sale at a price that is reasonable in relation to its current fair value, and whether actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. When a long-lived asset classified as held-for-sale shall be measured at the lower of its carrying amount or fair value less cost to sell. An impairment test is required and an impairment charge is recognized when the carrying value of the asset exceeds the estimated fair value, less transaction costs. Assets classified as held for sale are no longer depreciated. During 2015, the Group classified certain real estate properties of $ 3,808,471 11.3 |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | (n) Impairment of long-lived assets The Group evaluates its long-lived assets and finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. When these events occur, the Group measures impairment by comparing the carrying amount of the assets to the future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the future undiscounted cash flow is less than the carrying amount of the assets, the Group would recognize an impairment loss equal to the excess of the carrying amount over the fair value of the assets. |
Investment In Affiliates [Policy Text Block] | (o) Investment in affiliates Affiliated companies are entities which the Group owes equity interest in common stock or in-substance common stock, over which the Group has significant influence, but which it does not control. The Group generally considers an ownership interest of 20 The affiliated companies in which the Group has non-significant influence are accounted for using cost method of accounting. Dividends received that are distributed from the net accumulated earnings of the investee are recognized in the Group’s consolidated statements of operations. Dividends received in excess of earnings are recorded as reductions of cost of the investment. A series of operating losses of the investee or other factors may indicate that a decrease in value of the investment has occurred which is other-than-temporary and should accordingly be recognized. The affiliated companies in which the Group has significant influence are accounted for using equity method of accounting. The share of earnings or losses of the investee are recognized in the Group’s consolidated statements of operations and adjusts the carrying amount of the investment. Dividends received reduce the carrying amount of the investment. The Group evaluates each equity method investment separately for impairment indicators and whether any decrease in value of the investment has occurred which is other-than-temporary. If the fair value of the investment is less than its cost and the impairment is other-than-temporary, then the Group would recognize an impairment loss equal to the excess of the carrying amount over the fair value of the investment. |
Convertible loan [Policy Text Block] | The amounts shown as convertible loan receivable in the consolidated balance sheet as at December 31, 2015 and 2016 represent a loan receivable from a third party (the “borrower”), net of provision for credit losses, if any. Interest income derived from the loan is recognized as incurred. For the option to convert, all or any part of the outstanding principles and unpaid accrued interest may be converted, in a single tranche, at the option of the Group (the “lender”) at any time prior to the maturity date of the loan, into such amount of equity interest in the borrower that represents a percentage of equity ownership obtained by dividing the aggregate outstanding principal and unpaid accrued interest on the Note on the date of conversion, by RMB 100,000,000 |
Revenue Recognition, Policy [Policy Text Block] | Direct sales, net The Group’s direct sales net revenues primarily represent product sales through our outbound marketing platforms (which until early 2015 included TV direct sales, or informercials) and our Internet sales platform. The Group recognizes net revenues for products sold through its direct sales platforms once the products are delivered to and accepted by the customers (“F.O.B. Destination”). The Group relies on China Express Mail Service Corporation (“EMS”) and local delivery companies to provide the Group data as to their successful deliveries for the Group’s direct sales products through our outbound marketing platforms. The Group relies on Yuantong, a local delivery company to provide the Group data as to their successful deliveries for the Group’s direct sales products through our Internet sales platforms. EMS and local delivery companies regularly report product delivery information. In 2014, 2015 and 2016, direct sales net revenues were adjusted in the current accounting period based on actual unsuccessful product deliveries experience reported by EMS and local delivery companies. For unsuccessful deliveries, EMS and local delivery companies are required to return the undelivered products to the Group. It generally takes two to three weeks for EMS to return the undelivered products to the Group whereas it generally takes approximately seven days for local delivery companies to do so. Distribution sales, net The Group’s distribution sales net revenues represent product sales to the distributors comprising the Group’s nationwide distribution networks. The distributor agreements do not provide discounts, chargeback, price protection or stock rotation rights. The Group recognizes net revenues for products sold through its nationwide distribution networks when the products are delivered to and accepted by the distributors (e.g. “F.O.B. Destination”). In most cases, the distributors are required to pay in advance for the Group’s products. Historically, some distributors are given customary credit terms based on the creditworthiness. Starting from 2016, the Group stopped granting credit terms to distributors. Sales taxes The Group presents revenues net of sales taxes incurred. The sales taxes amounted to $ 199,721 106,962 75,395 45,361,639 19,458,752 13,879,824 49,592,804 28,193,821 10,723,447 |
Advertising Costs, Policy [Policy Text Block] | (r) Advertising expenses The Group records cash advances paid to advertising companies as prepaid advertising expenses in the consolidated balance sheets. The Group then expenses the prepaid advertising expenses as the advertisement is shown. In the first quarter of 2015, the Group decided to stop purchasing TV advertising time. The advertising expenses were $ 16,232,840 2,203,996 23,701 |
Shipping and Handling Cost, Policy [Policy Text Block] | (s) Shipping and handling costs The Group records costs incurred for outbound shipping and handling as part of other selling and marketing expenses in the consolidated statements of operations. Shipping and handling costs were $ 4,902,307 2,059,934 1,158,019 |
Lease, Policy [Policy Text Block] | (t) Operating leases Leases where substantially all the rewards and risks of ownership of assets remain with the leasing company are accounted for as operating leases. Payments made under operating leases are charged to the consolidated statements of operations on a straight-line basis over the lease periods. |
Government Subsidies [Policy Text Block] | (u) Government subsidies The Group receives unrestricted government subsidies from local government agencies. The government agencies use their discretion to determine the amount of the subsidies with reference to certain taxes paid by the Group, including value-added and income taxes. The Group records unrestricted government subsidies as other operating income in the consolidated statements of operations. The government subsidies in 2014, 2015 and 2016 were $ 829,238 201,168 66,648 |
Income Tax, Policy [Policy Text Block] | (v) Income taxes Current income taxes are provided for in accordance with the relevant statutory tax laws and regulations. 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 losses are carried forward and credited by applying enacted statutory tax rates applicable to future years. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more-likely-than-not that some portion or all of the deferred tax assets will not be realized. The components of the deferred tax assets and liabilities are individually classified as current and non-current based on the characteristics of the underlying assets and liabilities, or the expected timing of their use when they do not relate to a specific asset or liability. The Group recognizes the impact of an uncertain income tax position at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant tax authority. The Group classifies interests and penalties related to income tax matters in income tax expense. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | (w) Foreign currency translation The functional currency and reporting currency of Acorn International, China DRTV, Smooth Profit, MK AND T, and Bright Rainbow are the United States dollar (“US dollar”). Monetary assets and liabilities denominated in currencies other than the US dollar are translated into the US dollar at the rates of exchange ruling at the balance sheet date. Transactions in currencies other than the US dollar during the year are converted into US dollar at the applicable rates of exchange prevailing on the first day of the month in which the transactions occurred. Transaction gains and losses are recognized in the consolidated statements of operations as general and administrative expenses. The financial records of the Group’s PRC subsidiaries and VIEs are denominated in its local currency, the Renminbi (“RMB”), which is the functional currency. Assets and liabilities are translated at the exchange rates at the balance sheet date. Equity accounts are translated at historical exchange rates. Revenues, expenses, gains and losses are translated using the average rate for the period. Translation adjustments are reported as component of comprehensive income in the consolidated statements of comprehensive income (loss). The aggregated gains (losses) through foreign currency transactions in 2014, 2015 and 2016 were $ (31,847) (687,163) (380,350) |
Concentration Risk Credit Risk [Policy Text Block] | (x) Concentration of credit risk Financial instruments that potentially expose the Group to concentration of credit risk consist primarily of cash and cash equivalents, restricted cash, accounts receivable, notes receivable and convertible loan. All of the Group’s cash and cash equivalents and restricted cash are held with large state-owned financial institutions. The Group engages delivery companies, mainly EMS express, to deliver products to customers and to collect cash from the customers for direct sales gross revenues through direct sales platforms. The Group conducts credit evaluations of delivery companies and generally does not require collateral or other security from its delivery companies. The Group establishes an allowance for doubtful accounts primarily based on the age of the receivables and factors surrounding the credit risk of specific customers. The Group evaluated its credit risk with the convertible loan by performing ongoing evaluation on the borrower’s financial condition. The loan agreement has a personal guarantee from Mr. Robert W. Roche, Acorn’s co-founder and current executive chairman and CEO, and pledged with the equity of the borrower. As of December 31, 2015 and 2016, no accounts receivables from a single delivery company were more than 10 |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | (y) Share-based compensation Share-based compensation cost is measured at grant date, based on the fair value of the award, and recognized in expense over the requisite service period. For performance-based awards, the Group uses graded vesting when the performance condition is considered probable. The Group has made an estimate of expected forfeitures and is recognizing compensation costs only for those equity awards expected to vest. |
Earnings Per Share, Policy [Policy Text Block] | (z) Income (loss) per share Basic income (loss) per share is computed by dividing income attributable to the Group’s shareholders by the weighted average number of ordinary shares outstanding during the year. Diluted income (loss) per ordinary share reflects the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised or converted into ordinary shares and is calculated using the treasury stock method for stock options and unvested shares. Common equivalent shares for which the exercise price exceeds the average market price over the period have an anti-dilutive effect on income per share and, accordingly, are excluded from the calculation. Common equivalent shares are also excluded from the calculation in loss periods as their effects would be anti-dilutive. |
Noncontrolling Interest [Policy Text Block] | (aa) Noncontrolling interest A noncontrolling interest in a subsidiary of the Group represents the portion of the equity (net assets) in the subsidiary not directly or indirectly attributable to the Group. Noncontrolling interests are presented as a separate component of equity in the consolidated balance sheet and earnings and other comprehensive income are attributed to controlling and noncontrolling interests. |
New Accounting Pronouncements, Policy [Policy Text Block] | Revenue from Contracts with Customers. In May 2014, the Financial Accounting Standards Board (FASB) issued an accounting standard update on revenue recognition that will be applied to all contracts with customers. The update requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects what it expects in exchange for the goods or services. It also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB issued ASU No. 2015-14, deferring the effective date for ASU 2014-09 by one year, and thus, the new standard will be effective for fiscal years beginning after December 15, 2017, with early application permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The guidance allows for either a full retrospective or a modified retrospective transition method. The Group continues to evaluate the effect of these accounting pronouncements on its financial statements and will adopt this new guidance on January 1, 2018 using the modified retrospective application method. Financial Instruments. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01), which requires that most equity investments be measured at fair value, with subsequent changes in fair value recognized in net income. The ASU also impacts financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. In addition, the FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. Entities will have to assess the realizability of such deferred tax assets in combination with the entities other deferred tax assets. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017 and for interim periods within that reporting period. The Company is currently evaluating the impact of its pending adoption of ASU 2016-01 on its consolidated financial statements. Leases. In February 2016, the FASB issued ASU No. 2016-02, Leases (ASU 2016-02), which increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early application permitted. Upon adoption, lessees must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is currently evaluating the impact of its pending adoption of ASU 2016-02 on its consolidated financial statements. Investments. In March 2016, the FASB issued ASU No. 2016-07, Investments Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting (ASU 2016-07), which requires the equity method investor to add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment qualifies for equity method accounting. ASU 2016-07 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years with early application permitted. The Company is not expecting any material impact from its adoption of ASU 2016-07 on its consolidated financial statements. Stock Compensation. In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting (ASU 2016-09), which is intended to simplify several aspects of the accounting for share-based payment award transactions. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, including interim periods. The Company will adopt this guidance in the first quarter of 2017 and will elect to continue to estimate forfeitures expected to occur to determine the amount of compensation cost to be recognized in each period. In the first quarter of 2017 the Company will record a $ 95 Financial Instruments. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments (ASU 2016-13). The standard changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. ASU 2016-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. Early adoption is permitted for fiscal years, and interim periods within those years, beginning after December 15, 2018. The Company is currently evaluating the timing of adoption and impact of this new standard on its consolidated financial statements. Statement of Cash Flows. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (ASU 2016-15), which is intended to reduce the existing diversity in practice in how certain cash receipts and cash payments are classified in the statement of cash flows. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years with early adoption permitted, provided that all of the amendments are adopted in the same period. The Company is currently evaluating the impact of its pending adoption of ASU 2016-15 on its consolidated financial statements. Income Taxes. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740), Intra-Entity Transfers of Assets Other Than Inventory (ASU 2016-16), which requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. This amends current GAAP which prohibits recognition of current and deferred income taxes for all types of intra-entity asset transfers until the asset has been sold to an outside party. ASU 2016-16 is effective for fiscal years beginning after December 15, 2017, including interim periods therein with early application permitted. Upon adoption, the Company must apply a modified retrospective transition approach through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. The Company is currently evaluating the impact of this new standard on its consolidated financial statements, as well as its planned adoption date. |
Organization and principal ac34
Organization and principal activities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Variable Interest Entities [Table Text Block] | Summary financial information of the Group’s four VIEs included in the accompanying consolidated financial statements is included on page F-4 and as follows: For the years ended December 31, 2014 2015 2016 Net revenues $ 44,907,449 $ 18,469,195 $ 12,251,518 Net income (loss) $ (8,282,712) $ (9,920,207) $ (998,709) |
Schedule Of Subsidiaries And Variable Interest Entities [Table Text Block] | As of December 31, 2016, the subsidiaries of Acorn International were as follows: Name of subsidiaries Percentage of ownership Date of incorporation Place of incorporation China DRTV, Inc. (“China DRTV”) 100 % March 4, 2004 Smooth Profit Limited (“Smooth Profit”) 100 % September 18, 2007 BVI MK AND T Communications Limited (“MK AND T”) 100 % October 27, 1998 Bright Rainbow Investments Limited (“Bright Rainbow”) 100 % October 29, 2007 Shanghai Acorn Advertising Broadcasting Co., Ltd. (“Shanghai Advertising”) 100 % August 19, 2004 Shanghai HJX Digital Technology Co., Ltd. (“Shanghai HJX”) 100 % August 23, 2004 Acorn International Electronic Technology (Shanghai) Co., Ltd. (“Acorn Electronic”) 100 % August 23, 2004 Acorn Information Technology (Shanghai) Co., Ltd. (“Acorn Information”) 100 % August 27, 2004 Beijing Acorn Youngleda Oxygen Generating Co., Ltd. (“Beijing Youngleda”) 100 % October 20, 2004 YiyangYukang Communication Equipment Co., Ltd. (“YiyangYukang”) 100 % November 29, 2005 Zhuhai Sunrana Bio-tech Co., Ltd. (“Zhuhai Sunrana”) 51 % June 16, 2006 PRC Zhuhai Acorn Electronic Technology Co., Ltd. (“Zhuhai Acorn”) 100 % September 26, 2006 Beijing HJZX Software Technology Development Co., Ltd. (“Beijing HJZX”) 100 % January 22, 2007 ZhongshanMeijin Digital Technology Co., Ltd. (“ZhongshanMeijin”) 75 % Acorn Trade (Shanghai) Co., Ltd. (“Acorn Trade”) 100 % Shanghai Acorn HJX Software Technology Development Co., Ltd. (“HJX Software”) 100 % May 12, 2009 Wuxi Acorn Enterprise Management Consulting Co., Ltd. (“Wuxi Acorn”) 100 % January 29, 2010 PRC Name of subsidiaries Percentage of ownership Date of incorporation Place of incorporation HJX International Limited 100 % March 5, 2014 |
Variable Interest Entity, Primary Beneficiary [Member] | |
Schedule Of Subsidiaries And Variable Interest Entities [Table Text Block] | As of December 31, 2016, the variable interest entities of Acorn International were as follows: Name of variable interest entities Date of incorporation Place of incorporation Beijing Acorn Trade Co., Ltd. (“Beijing Acorn”) Shanghai Acorn Network Technology Development Co., Ltd. (“Shanghai Network”) PRC Beijing HJX Technology Development Co., Ltd. (“Beijing HJX”) PRC |
Summary of principal accounti35
Summary of principal accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Property Plant And Equipment Estimated Useful Lives [Table Text Block] | Depreciation and amortization are calculated on a straight-line method over the following estimated useful lives: Estimated useful lives Buildings 20 Leasehold improvements Machinery 10 Information Technology equipment 5 Computers and office equipment 3 5 Vehicles 3 4 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventory consisted of the following: December 31, 2015 2016 Raw materials and work in progress $ 287,971 $ 114,664 Finished goods and merchandise goods 3,847,653 3,862,672 $ 4,135,624 $ 3,977,336 |
Other prepaid expenses and cu37
Other prepaid expenses and current assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule Of Prepaid Expenses And Other Current Assets [Table Text Block] | Other prepaid expenses and current assets consisted of the following: December 31, 2015 2016 Advances to suppliers $ 1,885,213 $ 638,782 Receivable from sales of property 1,301,227 Value-added tax recoverable 1,231,788 738,221 Prepaid income tax 78,185 7,449 Other prepaid expenses 1,818,459 1,283,478 $ 6,314,872 $ 2,667,930 |
Property and equipment, net (Ta
Property and equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment, net consisted of the following: December 31, 2015 2016 Buildings $ 19,297,436 $ 18,098,589 Computers and office equipment 7,781,700 4,711,617 Leasehold improvements Vehicles 461,609 445,391 Information Technology equipment 299,557 294,549 Machinery 330,447 210,551 $ 28,170,749 $ 23,760,697 Less: accumulated depreciation and amortization (11,555,449) (9,875,618) $ 16,615,300 $ 13,885,079 |
Acquired intangible assets, n39
Acquired intangible assets, net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] | Acquired intangible assets, net consisted of the following: December 31, 2015 2016 Distribution networks $ 2,329,849 $ 2,329,849 Trademarks 2,879,106 2,830,716 $ 5,208,955 $ 5,160,565 Less: accumulated amortization (4,331,985) (4,585,292) $ 876,970 $ 575,273 |
Accrued expenses and other cu40
Accrued expenses and other current liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
Components Of Accrued Expenses And Other Liabilities [Table Text Block] | Accrued expenses and other current liabilities consisted of the following: December 31, 2015 2016 Other taxes payable $ 960,959 $ 901,027 Accrued employee payroll and welfare 2,094,398 3,618,234 Other payable 3,085,960 608,232 Accrued expenses 3,167,689 3,574,243 Advances from customers 1,606,932 430,430 Down payment from sales of property 939,757 $ 11,855,695 $ 9,132,166 |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Share-based Compensation [Abstract] | |
Schedule of Nonvested Share Activity [Table Text Block] | A summary of the RSUs activities for the year ended December 31, 2016 was as follows: Weighted average Number of RSUs grant date fair value Nonvested at January 1, 2016 $ Granted 2,800,000 $ 4.7 Forfeited $ Vested (2,800,000) $ 4.7 Nonvested at December 31, 2016 $ |
Fair value measurements (Tables
Fair value measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Text Block [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | As of December 31, 2016, information about inputs into the fair value measurements of the Group's assets and liabilities that are measured at fair value on a recurring basis in periods subsequent to their initial recognition is as follows. Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant As of Identical Observable Unobservable December 31, Assets Inputs Inputs Description 2016 (Level 1) (Level 2) (Level 3) USD USD USD USD Available-for-sale investments- marketable equity securities 74,666,865 74,666,865 As of December 31, 2015, information about inputs into the fair value measurements of the Group's assets and liabilities that are measured at fair value on a recurring basis in periods subsequent to their initial recognition is as follows. Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant As of Identical Observable Unobservable December 31, Assets Inputs Inputs Description 2015 (Level 1) (Level 2) (Level 3) USD USD USD USD Available-for-sale investments- marketable equity securities 181,164,778 181,164,778 |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The current and deferred portion of income tax (expenses) benefits included in the consolidated statements of operations were as follows: For the years ended December 31, 2014 2015 2016 Current income tax expenses $ (1,280,181) $ (363,081) $ (4,169,360) Deferred income tax benefits (expenses) 109,664 179,990 (423,423) (1,170,517) (183,091) (4,592,783) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | For the years ended December 31, 2014 2015 2016 PRC statutory tax rate 25 % 25 % 25 % Expenses not deductible for tax purposes 1 % (1) % 4 % Effect of different tax rate of subsidiary operations in other jurisdiction (1) % (2) % (15) % Change in valuation allowance (24) % (21) % 36 % Effect of change in tax rate on deferred tax assets/liabilities (1) % (0) % (0) % Expiration of net operating loss (0) % (1) % Utilization (Recognition) of the unrecognized tax benefit (3) % (0) % 2 % Others (0) % (0) % Effective tax rate (3) % 0 % 52 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The principal components of the Group’s deferred income tax assets and liabilities as of December 31, 2015 and 2016 were as follows: December 31, 2015 2016 Deferred tax assets: Allowance and reserves $ 3,973,199 $ 2,344,940 Accrued expenses 738,298 969,498 Revenue recognition difference 162,322 145,504 Advertising expenses 1,765,847 650,244 Net operating losses 31,156,628 29,490,696 $ 37,796,294 $ 33,600,882 Less: valuation allowance (36,720,140) (33,012,389) $ 1,076,154 $ 588,493 Deferred tax liabilities: Unrealized gain on available-for-sale securities (44,449,212) (18,017,610) $ (44,449,212) $ (18,017,610) $ (43,373,058) $ (17,429,117) Deferred tax assets were analyzed as: Current $ 1,076,154 $ 588,493 Deferred tax liabilities were analyzed as: Non-current (44,449,212) (18,017,610) $ (44,449,212) $ (18,017,610) $ (43,373,058) $ (17,429,117) |
Other income, net (Tables)
Other income, net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating Income (Expense) [Table Text Block] | Other income (expenses) consisted of the following: For the years ended December 31, 2014 2015 2016 Investment gain 18,088,327 Others (446,662) 195,355 (417,304) $ (446,662) $ 195,355 $ 17,671,023 |
Loss per share (Tables)
Loss per share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The computation of basic and diluted loss per ordinary share from operations for the years ended December 31, 2014, 2 0 0 For the years ended December 31, 2014 2015 2016 Numerator: Net income (loss) attributable to Acorn International, Inc. shareholders from operationsbasic and diluted $ (44,328,912) $ (40,158,654) $ 3,438,370 Denominator: Weighted average ordinary shares outstandingbasic and diluted 82,690,613 79,226,404 75,600,700 Income (Loss) per ordinary share: Basic and diluted $ (0.54) $ (0.51) $ 0.05 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | As of December 31, 2016, future minimum lease payments under non-cancelable operating leases agreements were as follows: 2017 $ 138,788 2018 39,454 2019 627 2020 and thereafter $ 178,869 |
Segment and geographic inform47
Segment and geographic information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule Of Revenue By Product Category [Table Text Block] | The Group’s revenues are all generated from direct sales platform and nationwide distribution networks in the PRC. The revenues by each group of similar products are as follows: For the years ended December 31, Product 2014 2015 2016 Health products $ 9,876,415 $ 8,101,683 $ 11,776,863 Electronic learning products 44,137,557 24,637,772 8,071,401 Mobile phones 6,000,241 5,032,111 1,722,626 Collectible products 15,413,624 5,646,352 1,573,757 Kitchen and household 9,809,998 1,591,090 397,722 Fitness products 4,554,072 765,679 217,226 Cosmetics products 853,133 220,364 103,330 Consumer electronics products 61,161 88,811 41,437 Auto products 191,314 49,461 1,026 Other products 4,056,928 1,519,250 697,883 Total gross revenues $ 94,954,443 $ 47,652,573 $ 24,603,271 Less: sales taxes (199,721) (106,962) (75,395) Total revenues, net $ 94,754,722 $ 47,545,611 $ 24,527,876 |
Reconciliation Of Gross Profit From Segments To Consolidated [Table Text Block] | The gross profit by segments is as follows: Year ended December 31, 2014 Direct sales Distribution sales Total Revenue, net $ 45,232,943 $ 49,521,779 $ 94,754,722 Cost of revenue 24,352,882 32,570,037 56,922,919 Gross profit $ 20,880,061 $ 16,951,742 $ 37,831,803 Year ended December 31, 2015 Direct sales Distribution sales Total Revenue, net $ 19,405,793 $ 28,139,818 $ 47,545,611 Cost of revenue 13,388,423 21,498,735 34,887,158 Gross profit $ 6,017,370 $ 6,641,083 $ 12,658,453 Year ended December 31, 2016 Direct sales Distribution sales Total Revenue, net $ 13,833,208 $ 10,694,668 $ 24,527,876 Cost of revenue 2,728,390 9,243,903 11,972,293 Gross profit $ 11,104,818 $ 1,450,765 $ 12,555,583 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |
Schedule of Related Party Transactions [Table Text Block] | Details of the transactions for the years ended December 31, 2014, 2015 and 2016 were as follows: For the years ended December 31, 2014 2015 2016 Dreamstart $ 1,187,922 $ 1,611,256 $ 454,845 CBG $ 391,800 $ 208,330 $ JG Fashion $ 309,473 $ 207,461 $ Lu&co $ $ 9,402 $ 10,675 Acorn Composite $ $ $ 924,757 IS Seafood $ $ $ 22,810 Dragon Law $ $ 2,026 $ 2,785 URBN Hotels $ $ $ 2,820 Jia He Hotel $ $ $ 2,513 Cachet hotel $ $ $ 1,307 |
Schedule Of Payments Made By Related Parties [Table Text Block] | During 2015 and 2016, other cash payment to related parties regarding the convertible loan is as followed (refer to Note 9) For the years ended December 31, Cash payment to the related party (see Note 9) 2015 2016 Acorn Composite $ 1,870,547 $ Ryecor $ 1,154,386 $ |
China Branding Company Limited [Member] | |
Related Party Transaction [Line Items] | |
Schedule of Related Party Transactions [Table Text Block] | Details of the transactions and balances for the years ended December 31, 2014, 2015 and 2016 were as follows: For the years ended December 31, Other transactions with CBG 2014 2015 2016 Lease income $ 97,635 $ $ Service income $ 48,818 $ $ As of December 31, 2015 and 2016, the balance due from and due to related parties were as follows: December 31, 2015 2016 Other receivables - CBG $ $ Other receivables - Ryecor $ 77,597 $ Other payables - Mr. Robert W. Roche $ 924,757 $ Account payable - IS seafood $ $ 15,537 Other receivables - URBN Hotels $ $ 3,171 |
Organization and principal ac49
Organization and principal activities (Details) | 12 Months Ended |
Dec. 31, 2016 | |
China DRTV, Inc. (“China DRTV”) | |
Organization And Principal Activities [Line Items] | |
Percentage of ownership | 100.00% |
Date of incorporation | Mar. 4, 2004 |
Place of incorporation | BVI |
Smooth Profit Limited (“Smooth Profit”) | |
Organization And Principal Activities [Line Items] | |
Percentage of ownership | 100.00% |
Date of incorporation | Sep. 18, 2007 |
Place of incorporation | BVI |
MK AND T Communications Limited (“MK AND T”) | |
Organization And Principal Activities [Line Items] | |
Percentage of ownership | 100.00% |
Date of incorporation | Oct. 27, 1998 |
Place of incorporation | HongKong |
Bright Rainbow Investments Limited (“Bright Rainbow”) | |
Organization And Principal Activities [Line Items] | |
Percentage of ownership | 100.00% |
Date of incorporation | Oct. 29, 2007 |
Place of incorporation | Hong Kong |
Shanghai Acorn Advertising Broadcasting Co., Ltd. (“Shanghai Advertising”) | |
Organization And Principal Activities [Line Items] | |
Percentage of ownership | 100.00% |
Date of incorporation | Aug. 19, 2004 |
Place of incorporation | PRC |
Shanghai HJX Digital Technology Co., Ltd. (“Shanghai HJX”) | |
Organization And Principal Activities [Line Items] | |
Percentage of ownership | 100.00% |
Date of incorporation | Aug. 23, 2004 |
Place of incorporation | PRC |
Acorn International Electronic Technology (Shanghai) Co., Ltd. (“Acorn Electronic”) | |
Organization And Principal Activities [Line Items] | |
Percentage of ownership | 100.00% |
Date of incorporation | Aug. 23, 2004 |
Place of incorporation | PRC |
Acorn Information Technology (Shanghai) Co., Ltd. (“Acorn Information”) | |
Organization And Principal Activities [Line Items] | |
Percentage of ownership | 100.00% |
Date of incorporation | Aug. 27, 2004 |
Place of incorporation | PRC |
Beijing Acorn Youngleda Oxygen Generating Co., Ltd. (“Beijing Youngleda”) | |
Organization And Principal Activities [Line Items] | |
Percentage of ownership | 100.00% |
Date of incorporation | Oct. 20, 2004 |
Place of incorporation | PRC |
YiyangYukang Communication Equipment Co., Ltd. (“YiyangYukang”) | |
Organization And Principal Activities [Line Items] | |
Percentage of ownership | 100.00% |
Date of incorporation | Nov. 29, 2005 |
Place of incorporation | PRC |
Zhuhai Sunrana Bio-tech Co., Ltd. (“Zhuhai Sunrana”) | |
Organization And Principal Activities [Line Items] | |
Percentage of ownership | 51.00% |
Date of incorporation | Jun. 16, 2006 |
Zhuhai Acorn Electronic Technology Co., Ltd. (“Zhuhai Acorn”) | |
Organization And Principal Activities [Line Items] | |
Percentage of ownership | 100.00% |
Date of incorporation | Sep. 26, 2006 |
Place of incorporation | PRC |
Beijing HJZX Software Technology Development Co., Ltd. (“Beijing HJZX”) | |
Organization And Principal Activities [Line Items] | |
Percentage of ownership | 100.00% |
Date of incorporation | Jan. 22, 2007 |
Place of incorporation | PRC |
ZhongshanMeijin Digital Technology Co., Ltd. (“ZhongshanMeijin”) | |
Organization And Principal Activities [Line Items] | |
Percentage of ownership | 75.00% |
Date of incorporation | Feb. 13, 2007 |
Place of incorporation | PRC |
Acorn Trade (Shanghai) Co., Ltd. (“Acorn Trade”) | |
Organization And Principal Activities [Line Items] | |
Percentage of ownership | 100.00% |
Date of incorporation | Dec. 13, 2007 |
Place of incorporation | PRC |
Shanghai Acorn HJX Software Technology Development Co., Ltd. (“HJX Software”) | |
Organization And Principal Activities [Line Items] | |
Percentage of ownership | 100.00% |
Date of incorporation | May 12, 2009 |
Place of incorporation | PRC |
Wuxi Acorn Enterprise Management Consulting Co., Ltd. (“Wuxi Acorn”) | |
Organization And Principal Activities [Line Items] | |
Percentage of ownership | 100.00% |
Date of incorporation | Jan. 29, 2010 |
HJX International Limited | |
Organization And Principal Activities [Line Items] | |
Percentage of ownership | 100.00% |
Date of incorporation | Mar. 5, 2014 |
Place of incorporation | Hong Kong |
Organization and principal ac50
Organization and principal activities (Details 1) | 12 Months Ended |
Dec. 31, 2016 | |
Beijing Acorn Trade Co., Ltd. (“Beijing Acorn”) | |
Variable Interest Entity [Line Items] | |
Date of incorporation | Mar. 19, 1998 |
Place of incorporation | PRC |
Shanghai Acorn Network Technology Development Co., Ltd. (“Shanghai Network”) | |
Variable Interest Entity [Line Items] | |
Date of incorporation | Nov. 2, 2004 |
Beijing HJX Technology Development Co., Ltd. (“Beijing HJX”) | |
Variable Interest Entity [Line Items] | |
Date of incorporation | Sep. 16, 2004 |
Organization and principal ac51
Organization and principal activities (Details 2) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Variable Interest Entity [Line Items] | |||
Net revenues | $ 24,527,876 | $ 47,545,611 | $ 94,754,722 |
Net income (loss) | 3,438,370 | (40,158,654) | (44,328,912) |
Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Net revenues | 12,251,518 | 18,469,195 | 44,907,449 |
Net income (loss) | $ (998,709) | $ (9,920,207) | $ (8,282,712) |
Organization and principal ac52
Organization and principal activities (Details Textual) ¥ in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2016USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016CNY (¥) | Dec. 31, 2013CNY (¥) | |
Acorn Information Technology (Shanghai) Co., Ltd. (“Acorn Information”) [Member] | |||||
Organization And Principal Activities [Line Items] | |||||
Approximate Interest Free Loans Provided By Subsidiary Of Entity To Shareholders Of Its Variable Interest Entities | ¥ | ¥ 118 | ||||
Approximate Additional Interest Free Loans Provided By Subsidiary Of Entity To Shareholders Of Its Variable Interest Entities | $ | $ 18.2 | ||||
Beijing Acorn Trade Co., Ltd. ("Beijing Acorn") and Shanghai Acorn Network Technology Development Co., Ltd. ("Shanghai Network") Entity Shareholder [Member] | |||||
Organization And Principal Activities [Line Items] | |||||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 100.00% | ||||
Beijing HJX Technology Development Co., Ltd. ("Beijing HJX") and Shanghai HJX Electronic Technology Co., Ltd. ("HJX Electronic") Entity Shareholder [Member] | |||||
Organization And Principal Activities [Line Items] | |||||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 100.00% | ||||
Shanghai HJX Digital Technology Co., Ltd. (“Shanghai HJX”) [Member] | |||||
Organization And Principal Activities [Line Items] | |||||
Approximate Interest Free Loans Provided By Subsidiary Of Entity To Shareholders Of Its Variable Interest Entities | $ 8.7 | ¥ 53 | |||
Variable Interest Entity, Primary Beneficiary [Member] | |||||
Organization And Principal Activities [Line Items] | |||||
Percentage Of Net Revenue | 49.90% | 38.80% | 47.40% | ||
Percentage Of Assets | 3.00% | 11.30% | 3.00% | ||
Percentage Of Liabilities | 6.00% | 17.80% | 6.00% |
Summary of principal accounti53
Summary of principal accounting policies (Details Textual) | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | |
Summary Of Significant Accounting Policies [Line Items] | |||||||
Advertising Expense | $ 23,701 | $ 2,203,996 | $ 16,232,840 | ||||
Cash And Cash Equivalents And Restricted Cash | 19,175,890 | 10,112,083 | ¥ 133,023,148 | ¥ 65,663,822 | |||
Restricted Cash and Cash Equivalents, Current | 72,077 | 126,278 | |||||
Sales Taxes | 75,395 | 106,962 | 199,721 | ||||
Direct Sales Revenue Goods Gross | 13,879,824 | 19,458,752 | 45,361,639 | ||||
Distribution Sales Revenue Goods Gross | 10,723,447 | 28,193,821 | 49,592,804 | ||||
Shipping, Handling and Transportation Costs | 1,158,019 | 2,059,934 | 4,902,307 | ||||
Government Subsidies | 66,648 | 201,168 | 829,238 | ||||
Foreign Currency Transaction Gain (Loss), before Tax | (380,350) | (687,163) | (31,847) | ||||
Proceeds from Sale of Property Held-for-sale | $ 11,291,342 | 0 | $ 0 | ||||
Debt Instrument Conversion Principal And Accrued Interest Conversion Base | ¥ | ¥ 100,000,000 | ||||||
Percentage Of Ownership Interests | 20.00% | 20.00% | |||||
Assets Held-for-sale, Not Part of Disposal Group, Current, Total | $ 0 | 3,808,471 | |||||
Cash, Cash Equivalents, and Short-term Investments | $ 7,500,000 | $ 6,900,000 | |||||
Scenario, Forecast [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 95,000,000 | ||||||
Land Use Rights [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Finite-Lived Intangible Asset, Useful Life | 50 years | 50 years | |||||
EMS [Member] | Accounts Receivable [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Concentration Risk, Percentage | 10.00% | 10.00% | |||||
Minimum [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Finite-Lived Intangible Asset, Useful Life | 5 years | 5 years | |||||
Maximum [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Finite-Lived Intangible Asset, Useful Life | 15 years | 15 years | |||||
Variable Interest Entity, Primary Beneficiary [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Restricted Cash and Cash Equivalents, Current | $ 72,077 |
Inventory (Details)
Inventory (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Inventory [Line Items] | ||
Raw materials and work in progress | $ 114,664 | $ 287,971 |
Finished goods and merchandise goods | 3,862,672 | 3,847,653 |
Inventory | $ 3,977,336 | $ 4,135,624 |
Inventory (Details Textual)
Inventory (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Inventory [Line Items] | |||
Inventory Write-down | $ 470,069 | $ 3,954,771 | $ 936,126 |
Other prepaid expenses and cu56
Other prepaid expenses and current assets (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Line Items] | ||
Advances to suppliers | $ 638,782 | $ 1,885,213 |
Value-added tax recoverable | 738,221 | 1,231,788 |
Prepaid income tax | 7,449 | 78,185 |
Other prepaid expenses | 1,283,478 | 1,818,459 |
Prepaid Expense and Other Assets, Current | 2,667,930 | 6,314,872 |
Receivable from sales of property [Member] | ||
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Line Items] | ||
Prepaid Expense and Other Assets, Current | $ 0 | $ 1,301,227 |
Property and equipment, net (De
Property and equipment, net (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | $ 23,760,697 | $ 28,170,749 |
Less: accumulated depreciation and amortization | (9,875,618) | (11,555,449) |
Property and equipment, net | 13,885,079 | 16,615,300 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 18,098,589 | 19,297,436 |
Computers and office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 4,711,617 | 7,781,700 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 0 | 0 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 445,391 | 461,609 |
Information Technology equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 294,549 | 299,557 |
Machinery [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | $ 210,551 | $ 330,447 |
Property and equipment, net (58
Property and equipment, net (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expenses for property and equipment | $ 1,455,654 | $ 2,599,961 | $ 3,066,565 |
Leasehold improvement disposals | 325,341 | 529,187 | |
Property, Plant and Equipment, Gross, Total | 23,760,697 | 28,170,749 | |
Property, Plant and Equipment, Net, Total | 13,885,079 | 16,615,300 | |
Gain (Loss) on Disposition of Property Plant Equipment, Total | (672,667) | 787,160 | (1,085,910) |
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | 325,341 | $ 529,187 | |
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross, Total | 6,076,530 | ||
Property, Plant and Equipment, Net, Total | 3,808,471 | ||
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | Other Income [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gain (Loss) on Disposition of Property Plant Equipment, Total | $ 5,778,669 | ||
Apartment Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross, Total | 426,220 | ||
Property, Plant and Equipment, Net, Total | 192,504 | ||
Proceeds from Sale of Buildings | 3,195,454 | ||
Apartment Building [Member] | Other Income [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gain (Loss) on Disposition of Property Plant Equipment, Total | $ 1,739,443 |
Acquired intangible assets, n59
Acquired intangible assets, net (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, gross | $ 5,160,565 | $ 5,208,955 |
Less: accumulated amortization | (4,585,292) | (4,331,985) |
Acquired intangible assets, net | 575,273 | 876,970 |
Trademarks [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, gross | 2,830,716 | 2,879,106 |
Distribution networks [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, gross | $ 2,329,849 | $ 2,329,849 |
Acquired intangible assets, n60
Acquired intangible assets, net (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset amortization expense | $ 301,697 | $ 301,697 | $ 301,697 |
Estimated amortization expense, 2017 | 221,584 | ||
Estimated amortization expense, 2018 | 141,470 | ||
Estimated amortization expense, 2019 | 141,470 | ||
Estimated amortization expense, 2020 | 70,749 | ||
Estimated amortization expense, 2021 | $ 0 |
Investments in affiliates (Deta
Investments in affiliates (Details Textual) - USD ($) | Aug. 10, 2016 | Jan. 31, 2010 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2012 | Feb. 28, 2013 | Dec. 28, 2005 |
Investments in and Advances to Affiliates [Line Items] | ||||||||
Percentage Of Ownership Interests | 20.00% | |||||||
Equity in losses of affiliates | $ 150,000 | $ (868,121) | $ (226,779) | $ (235,161) | ||||
Income (Loss) from Equity Method Investments | $ 150,000 | (868,121) | (226,779) | (235,161) | ||||
China Drtv [Member] | Shanghai Yimeng Software Technology Co Ltd [Member] | ||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||
Percentage Of Ownership Interests | 51.00% | |||||||
Shanghai Yimeng Digital Technology Co.,Ltd [Member] | Shanghai Yimeng Software Technology Co Ltd [Member] | ||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||
Percentage Of Ownership Interests | 49.00% | |||||||
ClearCut Corporation [Member] | ||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||
Cost Method Investment, Ownerships Percentage | 5.00% | |||||||
Payments to Acquire Cost Method Investments | $ 150,000 | |||||||
Shanghai An-Nai-Chi Automobile Maintenance Products Co, Ltd [Member] | ||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||
Percentage Of Ownership Interests | 51.00% | |||||||
Cash injection to one of Group's subsidiary | $ 1,500,000 | |||||||
Equity method percentage of ownership interest | 33.20% | |||||||
Fair value of equity method ownership interest | $ 1,100,000 | |||||||
China Branding Company Limited [Member] | ||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||
Equity method percentage of ownership interest | 9.30% | |||||||
Equity in losses of affiliates | 718,121 | 226,780 | 235,161 | |||||
Payments to Acquire Equity Method Investments | $ 1,300,000 | |||||||
Income (Loss) from Equity Method Investments | $ 718,121 | $ 226,780 | 235,161 | |||||
China Branding Company Limited [Member] | Maximum [Member] | ||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||
Cost method percentage of ownership interest | 9.30% | |||||||
China Branding Company Limited [Member] | Minimum [Member] | ||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||
Cost method percentage of ownership interest | 8.70% | |||||||
China Branding Company Limited [Member] | Board of Directors Chairman [Member] | ||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||
Equity method percentage of ownership interest | 7.60% | |||||||
Percentage of ownership interest sold | 0.60% | |||||||
Shanghai Yimeng [Member] | Cost-method Investments [Member] | ||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||
Equity Method Investments | $ 6,996,949 |
Available-for-sale securities (
Available-for-sale securities (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Jul. 29, 2015 | |
Available-for-sale Securities | $ 74,666,865 | $ 181,164,778 | |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | (18,172,231) | 44,621,498 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | $ 178,485,994 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | $ (72,688,925) | ||
Nationa Equities Exchange And Quotations [Member] | Shanghai Yimeng [Member] | |||
Percentage Of Ownership Interest | 10.34% |
Convertible loan receivable (De
Convertible loan receivable (Details Textual) | 1 Months Ended | 12 Months Ended | ||||
Sep. 30, 2015USD ($) | Oct. 31, 2014USD ($) | Oct. 31, 2014CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Debt Instrument Conversion Principal And Accrued Interest Conversion Base | ¥ | ¥ 100,000,000 | |||||
Percentage Of Ownership Interests | 20.00% | |||||
Ryecor China Investment Limited [Member] | ||||||
Debt Instrument Conversion Principal And Accrued Interest Conversion Base | ¥ | ¥ 100,000,000 | |||||
Percentage Of Ownership Interests | 51.00% | |||||
Debt Instrument, Face Amount | ¥ | ¥ 20,000,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | |||||
Line of Credit Facility, Maximum Borrowing Capacity | ¥ | ¥ 20,000,000 | |||||
Proceeds from Lines of Credit | $ | $ 3,024,933 | |||||
Debt Instrument, Maturity Date | Aug. 22, 2018 | Aug. 22, 2018 | ||||
Payments For Loan Guarantee Obligations | $ | $ 3,024,933 | |||||
Long-term Line of Credit | $ | $ 3,218,665 | $ 3,257,622 | ||||
Interest Payable | $ | $ 184,170 | $ 232,690 |
Accrued expenses and other cu64
Accrued expenses and other current liabilities (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Accrued Expenses and Other Current Liabilities [Line Items] | ||
Other taxes payable | $ 901,027 | $ 960,959 |
Accrued employee payroll and welfare | 3,618,234 | 2,094,398 |
Other payable | 608,232 | 3,085,960 |
Accrued expenses | 3,574,243 | 3,167,689 |
Advances from customers | 430,430 | 1,606,932 |
Down payment from sales of property | 0 | 939,757 |
Accrued expenses and other current liabilities | $ 9,132,166 | $ 11,855,695 |
Accrued expenses and other cu65
Accrued expenses and other current liabilities (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Accrued Expenses and Other Current Liabilities [Line Items] | ||
Value-added tax rate | 17.00% | |
Downpayment From Sale Of Property | $ 0 | $ 939,757 |
Debt (Details Textual)
Debt (Details Textual) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Loans Payable [Member] | |
Debt Instrument [Line Items] | |
Long term borrowing agreement, maximum borrowing credit amount | $ 8,450 |
Long term borrowing agreement,effective interest rate | 2.2459% |
Long term borrowing agreement, maturity date | Feb. 10, 2015 |
London Interbank Offered Rate (LIBOR) [Member] | |
Debt Instrument [Line Items] | |
Long term borrowing agreement, percentage added to the reference rate | 1.80% |
Share-based compensation (Detai
Share-based compensation (Details) - Restricted Stock Units (RSUs) | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Number of RSUs | |
Nonvested at January 1, 2016 | shares | 0 |
Granted | shares | 2,800,000 |
Forfeited | shares | 0 |
Vested | shares | (2,800,000) |
Nonvested at December 31, 2016 | shares | 0 |
Weighted average grant date fair value | |
Nonvested at January 1, 2016 | $ / shares | $ 0 |
Granted | $ / shares | 4.7 |
Forfeited | $ / shares | 0 |
Vested | $ / shares | 4.7 |
Nonvested at December 31, 2016 | $ / shares | $ 0 |
Share-based compensation (Det68
Share-based compensation (Details Textual) - USD ($) | Apr. 08, 2016 | May 31, 2006 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation arrangements, authorized ordinary shares for issuance | 24,133,000 | ||||
Share-based compensation | $ 658,000 | $ 71,333 | $ 428,000 | ||
Stock Appreciation Rights (SARs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation arrangements, awards expiration period | 6 years | ||||
Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation arrangements, awards expiration period | 10 years | ||||
Stock Options And Stock Appreciation Rights [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation arrangements, percentage of awards vesting upon grant | 25.00% | ||||
Stock Options And Stock Appreciation Rights [Member] | Share-based Compensation Award, Tranche Two [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation arrangements, awards to vest on the last day of each year | 75.00% | ||||
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 2,800,000 | ||||
Performance Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,800,000 | ||||
Time Based Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,000,000 |
Fair value measurements (Detail
Fair value measurements (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Available-for-sale Securities, Equity Securities | $ 74,666,865 | $ 181,164,778 |
Fair Value, Inputs, Level 1 [Member] | ||
Available-for-sale Securities, Equity Securities | 74,666,865 | 181,164,778 |
Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale Securities, Equity Securities | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Available-for-sale Securities, Equity Securities | $ 0 | $ 0 |
Fair value measurements (Deta70
Fair value measurements (Details Textual) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | $ 178,485,994 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | $ (72,688,925) |
Taxation (Details)
Taxation (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Components Of Income Tax Expense Benefit [Line Items] | |||
Current income tax expenses | $ (4,169,360) | $ (363,081) | $ (1,280,181) |
Deferred income tax benefits (expenses) | (423,423) | 179,990 | 109,664 |
Income tax expenses | $ (4,592,783) | $ (183,091) | $ (1,170,517) |
Taxation (Details 1)
Taxation (Details 1) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule Of Effective Tax Rates [Line Items] | |||
PRC statutory tax rate | 25.00% | 25.00% | 25.00% |
Expenses not deductible for tax purposes | 4.00% | (1.00%) | 1.00% |
Effect of different tax rate of subsidiary operations in other jurisdiction | (15.00%) | (2.00%) | (1.00%) |
Change in valuation allowance | 36.00% | (21.00%) | (24.00%) |
Effect of change in tax rate on deferred tax assets/liabilities | (0.00%) | (0.00%) | (1.00%) |
Expiration of net operating loss | 0.00% | (1.00%) | (0.00%) |
Utilization (Recognition) of the unrecognized tax benefit | 2.00% | (0.00%) | (3.00%) |
Others | 0.00% | (0.00%) | (0.00%) |
Effective tax rate | 52.00% | 0.00% | (3.00%) |
Taxation (Details 2)
Taxation (Details 2) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Allowance and reserves | $ 2,344,940 | $ 3,973,199 |
Accrued expenses | 969,498 | 738,298 |
Revenue recognition difference | 145,504 | 162,322 |
Advertising expenses | 650,244 | 1,765,847 |
Net operating losses | 29,490,696 | 31,156,628 |
Deferred Tax Assets, Gross, Total | 33,600,882 | 37,796,294 |
Less: valuation allowance | (33,012,389) | (36,720,140) |
Deferred Tax Assets, Net of Valuation Allowance, Total | 588,493 | 1,076,154 |
Deferred tax liabilities: | ||
Unrealized gain on available-for-sale securities | (18,017,610) | (44,449,212) |
Deferred Tax Liabilities, Net | (18,017,610) | (44,449,212) |
Deferred Tax Assets, Net, Total | (17,429,117) | (43,373,058) |
Deferred tax assets were analyzed as: | ||
Current | 588,493 | 1,076,154 |
Deferred tax liabilities were analyzed as: | ||
Non-current | (18,017,610) | (44,449,212) |
Deferred Tax Liabilities, Net | (18,017,610) | (44,449,212) |
Deferred Tax Assets, Net, Total | $ (17,429,117) | $ (43,373,058) |
Taxation (Details Textual)
Taxation (Details Textual) | 12 Months Ended | |||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2016CNY (¥) | |
Income Taxes [Line Items] | ||||
Effective Income Tax Rate Reconciliation At Statutory Income Tax Rate | 25.00% | 25.00% | 25.00% | |
Unrecognized Tax Benefits, Beginning Balance | $ 1,700,000 | $ 1,900,000 | $ 1,800,000 | |
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | 100,000 | 100,000 | $ 1,100,000 | |
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | 118,991,264 | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense, Total | 99,024 | 75,383 | ||
Deferred Tax Assets, Valuation Allowance | $ 33,012,389 | $ 36,720,140 | ||
Minimum [Member] | ||||
Income Taxes [Line Items] | ||||
Deferred Tax Operating Loss Carryforwards Expiration Year | 2,017 | |||
Maximum [Member] | ||||
Income Taxes [Line Items] | ||||
Deferred Tax Operating Loss Carryforwards Expiration Year | 2,021 | |||
Non resident Enterprises [Member] | CHINA | ||||
Income Taxes [Line Items] | ||||
Effective Income Tax Rate | 10.00% | |||
Subsidiaries [Member] | Underpayment of income tax liability exceeding RMB100,000 (approximately $15,000) | CHINA | ||||
Income Taxes [Line Items] | ||||
Accrued Income Taxes | $ 15,000 | ¥ 100,000 | ||
Subsidiaries [Member] | Minimum [Member] | Non-Transfer Pricing Matters [Member] | CHINA | ||||
Income Taxes [Line Items] | ||||
Income Tax Examination, Year under Examination | 2,011 | |||
Subsidiaries [Member] | Minimum [Member] | Transfer Pricing Matters [Member] | CHINA | ||||
Income Taxes [Line Items] | ||||
Income Tax Examination, Year under Examination | 2,006 | |||
Subsidiaries [Member] | Maximum [Member] | CHINA | ||||
Income Taxes [Line Items] | ||||
Dividend Withholding Tax Rate | 10.00% | |||
Subsidiaries [Member] | Maximum [Member] | Non-Transfer Pricing Matters [Member] | CHINA | ||||
Income Taxes [Line Items] | ||||
Income Tax Examination, Year under Examination | 2,016 | |||
Subsidiaries [Member] | Maximum [Member] | Transfer Pricing Matters [Member] | CHINA | ||||
Income Taxes [Line Items] | ||||
Income Tax Examination, Year under Examination | 2,016 |
Other income, net (Details)
Other income, net (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Income And Other Expense Disclosure [Line Items] | |||
Investment gain | $ 18,088,327 | $ 0 | $ 0 |
Others | (417,304) | 195,355 | (446,662) |
Other income | $ 17,671,023 | $ 195,355 | $ (446,662) |
Other income, net (Details Text
Other income, net (Details Textual) ¥ in Millions, shares in Millions | 12 Months Ended | |
Dec. 31, 2016USD ($)shares | Dec. 31, 2016CNY (¥)shares | |
Nonoperating Income (Expense), Total | $ | $ 17,671,023 | |
Yimeng [Member] | ||
Stock Issued During Period, Shares, New Issues | shares | 8 | 8 |
Proceeds from Issuance of Common Stock | ¥ | ¥ 126 |
Loss per share (Details)
Loss per share (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Numerator: | |||
Net income (loss) attributable to Acorn International, Inc. shareholders from operations-basic and diluted | $ 3,438,370 | $ (40,158,654) | $ (44,328,912) |
Denominator: | |||
Weighted average ordinary shares outstanding-basic and diluted | 75,600,700 | 79,226,404 | 82,690,613 |
Income (Loss) per ordinary share: | |||
Basic and diluted | $ 0.05 | $ (0.51) | $ (0.54) |
Loss per share (Details Textual
Loss per share (Details Textual) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of diluted income (loss) per share | 0 | 0 | 2,635,482 |
Mainland China contribution p79
Mainland China contribution plan and profit appropriation (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Statutory Reserves | $ 8,351,153 | $ 8,291,403 | |
Required percentage of statutory surplus reserve fund to registered capital, maximum | 50.00% | ||
Percentage of profit after tax transferred to statutory surplus reserve | 10.00% | ||
Employer contribution towards retirement plan | $ 558,385 | 908,355 | $ 1,952,480 |
Employer contribution towards benefit plan | $ 659,855 | $ 963,160 | $ 1,968,199 |
Commitments and contingencies80
Commitments and contingencies (Details) | Dec. 31, 2016USD ($) |
Operating Leased Assets [Line Items] | |
2,017 | $ 138,788 |
2,018 | 39,454 |
2,019 | 627 |
2020 and thereafter | 0 |
Operating Leases, Future Minimum Payments Due, Total | $ 178,869 |
Commitments and Contingencies81
Commitments and Contingencies (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments And Contingencies [Line Items] | |||
Rental expenses under operating leases | $ 619,262 | $ 1,553,580 | $ 2,908,304 |
Segment and geographic inform82
Segment and geographic information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Total gross revenues | $ 24,603,271 | $ 47,652,573 | $ 94,954,443 |
Less: sales taxes | (75,395) | (106,962) | (199,721) |
Total revenues, net | 24,527,876 | 47,545,611 | 94,754,722 |
Health Products [Member] | |||
Segment Reporting Information [Line Items] | |||
Total gross revenues | 11,776,863 | 8,101,683 | 9,876,415 |
Electronic Learning Products [Member] | |||
Segment Reporting Information [Line Items] | |||
Total gross revenues | 8,071,401 | 24,637,772 | 44,137,557 |
Mobile Phones [Member] | |||
Segment Reporting Information [Line Items] | |||
Total gross revenues | 1,722,626 | 5,032,111 | 6,000,241 |
Collectible Products [Member] | |||
Segment Reporting Information [Line Items] | |||
Total gross revenues | 1,573,757 | 5,646,352 | 15,413,624 |
Kitchen and Household [Member] | |||
Segment Reporting Information [Line Items] | |||
Total gross revenues | 397,722 | 1,591,090 | 9,809,998 |
Fitness Products [Member] | |||
Segment Reporting Information [Line Items] | |||
Total gross revenues | 217,226 | 765,679 | 4,554,072 |
Cosmetic Products [Member] | |||
Segment Reporting Information [Line Items] | |||
Total gross revenues | 103,330 | 220,364 | 853,133 |
Consumer Electronics Products [Member] | |||
Segment Reporting Information [Line Items] | |||
Total gross revenues | 41,437 | 88,811 | 61,161 |
Auto Products [Member] | |||
Segment Reporting Information [Line Items] | |||
Total gross revenues | 1,026 | 49,461 | 191,314 |
Other Products [Member] | |||
Segment Reporting Information [Line Items] | |||
Total gross revenues | $ 697,883 | $ 1,519,250 | $ 4,056,928 |
Segment and geographic inform83
Segment and geographic information (Details 1) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Revenue, net | $ 24,527,876 | $ 47,545,611 | $ 94,754,722 |
Cost of revenue | 11,972,293 | 34,887,158 | 56,922,919 |
Gross profit | 12,555,583 | 12,658,453 | 37,831,803 |
Direct Sales [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue, net | 13,833,208 | 19,405,793 | 45,232,943 |
Cost of revenue | 2,728,390 | 13,388,423 | 24,352,882 |
Gross profit | 11,104,818 | 6,017,370 | 20,880,061 |
Distribution sales [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue, net | 10,694,668 | 28,139,818 | 49,521,779 |
Cost of revenue | 9,243,903 | 21,498,735 | 32,570,037 |
Gross profit | $ 1,450,765 | $ 6,641,083 | $ 16,951,742 |
Segment and geographic inform84
Segment and geographic information (Details Textual) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Customer [Member] | |||
Segment Reporting Information [Line Items] | |||
customer accounted for 10% or more of the Group’s net revenues | 0 | 0 | 0 |
Customer Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of Reportable Segments | 2 |
Related party transactions (Det
Related party transactions (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Dreamstart [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | $ 454,845 | $ 1,611,256 | $ 1,187,922 |
CBG [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | 0 | 208,330 | 391,800 |
JG Fashion [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | 0 | 207,461 | 309,473 |
Lu&co [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | 10,675 | 9,402 | 0 |
Acorn Composite [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | 924,757 | 0 | 0 |
IS Seafood [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | 22,810 | 0 | 0 |
Dragon Law [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | 2,785 | 2,026 | 0 |
URBN Hotels [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | 2,820 | 0 | 0 |
Jia He Hotel [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | 2,513 | 0 | 0 |
Cachet Hotel [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | $ 1,307 | $ 0 | $ 0 |
Related party transactions (D86
Related party transactions (Details 1) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Lease income [Member] | |||
Related Party Transaction [Line Items] | |||
Related party transaction | $ 0 | $ 0 | $ 97,635 |
Service income [Member] | |||
Related Party Transaction [Line Items] | |||
Related party transaction | 0 | 0 | $ 48,818 |
Other receivables - CBG [Member] | |||
Balance Due from and Due to Related Parties | |||
Due from Related Parties | 0 | 0 | |
Other receivables - Ryecor [Member] | |||
Balance Due from and Due to Related Parties | |||
Due from Related Parties | 0 | 77,597 | |
Other payables - Mr. Robert W. Roche [Member] | |||
Balance Due from and Due to Related Parties | |||
Due to Related Parties | 0 | 924,757 | |
Account payable - IS seafood [Member] | |||
Balance Due from and Due to Related Parties | |||
Due to Related Parties | 15,537 | 0 | |
Other receivables - URBN Hotels [Member] | |||
Balance Due from and Due to Related Parties | |||
Due from Related Parties | $ 3,171 | $ 0 |
Related party transactions (D87
Related party transactions (Details 2) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Acorn Composite [Member] | ||
Related Party Transaction [Line Items] | ||
Payments For Securing Commercial And Business Interest | $ 0 | $ 1,870,547 |
Ryecor [Member] | ||
Related Party Transaction [Line Items] | ||
Payments For Securing Commercial And Business Interest | $ 0 | $ 1,154,386 |
Related party transactions (D88
Related party transactions (Details Textual) | 1 Months Ended | 12 Months Ended | ||||
Sep. 30, 2015CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | May 31, 2015USD ($)shares | Jul. 04, 2013USD ($) | |
Related Party Transaction [Line Items] | ||||||
Payment of Related party | $ 500,000 | $ 1,600,000 | $ 1,200,000 | |||
Payments for Legal Settlements | 200,000 | |||||
Transitional Services and Separation Agreement [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | shares | 6,518,656 | |||||
Stock Repurchase Program, Authorized Amount | $ 750,000 | |||||
Chief Executive Officer [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Related Party Transaction, Amounts of Transaction | 924,757 | |||||
CBG [Member] | Advertising Production [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Related Party Transaction, Amounts of Transaction | 400,000 | |||||
JG Fashion [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Related Party Transaction, Purchases from Related Party | 200,000 | $ 300,000 | ||||
LU And Co [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Technology Services Costs | ¥ | ¥ 15,000 | |||||
Payments for Fees | 10,675 | 9,402 | ||||
IS Seafood [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Related Party Transaction, Purchases from Related Party | 20,000 | |||||
Dragon Law [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Repayments of Related Party Debt | 2,785 | $ 2,026 | ||||
URBN Hotels [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Revenue from Related Parties | 2,820 | |||||
Jia He Hotel [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Revenue from Related Parties | 2,513 | |||||
Cachet Hotel [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Revenue from Related Parties | $ 1,307 | |||||
China Branding Company Limited [Member] | Related Party [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Debt Instrument, Face Amount | $ 21,850 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% |
Restricted net assets (Details
Restricted net assets (Details Textual) - Subsidiaries [Member] | Dec. 31, 2016USD ($) |
Restricted Net Asset Total | $ 48,187,474 |
Retained Earnings Restricted For Distribution | $ 20,336,734 |
Subsequent events (Details Text
Subsequent events (Details Textual) - Scenario, Forecast [Member] - Yimeng Software Technology Co., Ltd. [Member] ¥ in Millions, shares in Millions | 4 Months Ended |
Apr. 25, 2017CNY (¥)shares | |
Subsequent Event [Line Items] | |
Sale of Stock, Number of Shares Issued in Transaction | 4.6 |
Sale of Stock, Consideration Received on Transaction | ¥ | ¥ 64.9 |
Sale OF Stock Transactions, Shares Outstanding | 32.7 |
Financial Information of Parent
Financial Information of Parent Company Balance Sheets (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Current assets: | ||||
Cash and cash equivalents | $ 25,505,731 | $ 12,146,854 | $ 34,686,379 | $ 82,552,314 |
Loan receivable | 0 | 276,062 | ||
Total current assets | 34,093,465 | 30,264,575 | ||
Total assets | 133,319,864 | 240,718,766 | ||
Current liabilities: | ||||
Total current liabilities | 15,792,567 | 17,556,839 | ||
Total liabilities | 33,810,177 | 62,006,051 | ||
Equity: | ||||
Ordinary shares ($0.01 par value; 100,000,000 shares authorized, 89,018,518 and 91,818,518 shares issued and 76,531,135 and 75,406,875 shares outstanding as of December 31, 2015 and 2016, respectively) | 918,185 | 890,185 | ||
Additional paid-in capital | 161,938,330 | 161,308,330 | ||
Accumulated deficits | (122,910,876) | (126,349,246) | ||
Accumulated other comprehensive income | 80,865,261 | 162,580,400 | ||
Treasury stock, at cost (12,487,383 and 16,411,643 shares as of December 31, 2015 and 2016, respectively) | (21,640,346) | (20,109,451) | ||
Total equity | 99,170,554 | 178,320,218 | ||
Total liabilities and equity | 133,319,864 | 240,718,766 | ||
Parent Company [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 6,324,046 | 2,113,203 | $ 4,928,041 | $ 2,708,804 |
Other current assets | 113,826 | 112,808 | ||
Amounts due from subsidiaries | 722,696 | 5,702,990 | ||
Loan receivable | 1,909,741 | 2,010,838 | ||
Total current assets | 9,070,309 | 9,939,839 | ||
Investments in subsidiaries | 91,603,716 | 170,889,687 | ||
Total assets | 100,674,025 | 180,829,526 | ||
Current liabilities: | ||||
Other current liabilities | 1,503,471 | 1,717,051 | ||
Amount due to subsidiaries | 0 | 792,257 | ||
Total current liabilities | 1,503,471 | 2,509,308 | ||
Total liabilities | 1,503,471 | 2,509,308 | ||
Equity: | ||||
Ordinary shares ($0.01 par value; 100,000,000 shares authorized, 89,018,518 and 91,818,518 shares issued and 76,531,135 and 75,406,875 shares outstanding as of December 31, 2015 and 2016, respectively) | 918,185 | 890,185 | ||
Additional paid-in capital | 161,938,330 | 161,308,330 | ||
Accumulated deficits | (122,910,876) | (126,349,246) | ||
Accumulated other comprehensive income | 80,865,261 | 162,580,400 | ||
Treasury stock, at cost (12,487,383 and 16,411,643 shares as of December 31, 2015 and 2016, respectively) | (21,640,346) | (20,109,451) | ||
Total equity | 99,170,554 | 178,320,218 | ||
Total liabilities and equity | $ 100,674,025 | $ 180,829,526 |
Financial Information of Pare92
Financial Information of Parent Company Balance Sheets (Parenthetical) (Details) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Condensed Financial Statements, Captions [Line Items] | ||
Ordinary shares, par value | $ 0.01 | $ 0.01 |
Ordinary shares, shares authorized | 100,000,000 | 100,000,000 |
Ordinary shares, shares issued | 91,818,518 | 89,018,518 |
Ordinary shares, shares outstanding | 75,406,875 | 76,531,135 |
Treasury stock, shares | 16,411,643 | 12,487,383 |
Parent Company [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Ordinary shares, par value | $ 0.01 | $ 0.01 |
Ordinary shares, shares authorized | 100,000,000 | 100,000,000 |
Ordinary shares, shares issued | 91,818,518 | 89,018,518 |
Ordinary shares, shares outstanding | 75,406,875 | 76,531,135 |
Treasury stock, shares | 16,411,643 | 12,487,383 |
Financial Information of Pare93
Financial Information of Parent Company Statements of Operations (Details) - USD ($) | Aug. 10, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Operating expenses: | ||||
Other selling and marketing expenses | $ 12,970,090 | $ 25,185,444 | $ 40,177,216 | |
General and administrative expenses | 16,437,112 | 27,839,081 | 28,417,373 | |
Total operating expenses | 21,823,569 | 53,515,747 | 82,706,221 | |
Loss from operations | 9,267,986 | 40,857,294 | 44,874,418 | |
Other expenses | (17,671,023) | (195,355) | 446,662 | |
Loss before income taxes | (8,869,567) | 39,839,911 | 42,920,731 | |
Equity in losses of affiliates | $ (150,000) | 868,121 | 226,779 | 235,161 |
Income taxes | 4,592,783 | 183,091 | 1,170,517 | |
Net income (loss) of Acorn International, Inc. shareholders | 3,438,370 | (40,158,654) | (44,328,912) | |
Parent Company [Member] | ||||
Operating expenses: | ||||
Other selling and marketing expenses | 270 | 207,461 | 357 | |
General and administrative expenses | 2,800,959 | 2,638,398 | 1,888,954 | |
Total operating expenses | 2,801,229 | 2,845,859 | 1,889,311 | |
Loss from operations | (2,801,229) | (2,845,859) | (1,889,311) | |
Other expenses | 128,188 | 112,848 | (189,653) | |
Loss before income taxes | (2,673,041) | (2,733,011) | (2,078,964) | |
Equity in losses of affiliates | (150,000) | 0 | 0 | |
Income taxes | 0 | 0 | 0 | |
Equity in gains (losses) of subsidiaries | 6,261,411 | (37,425,643) | (42,249,948) | |
Net income (loss) of Acorn International, Inc. shareholders | $ 3,438,370 | $ (40,158,654) | $ (44,328,912) |
Financial Information of Pare94
Financial Information of Parent Company Statements of Comprehensive Loss (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Financial Statements, Captions [Line Items] | |||
Net income (loss) | $ 3,438,370 | $ (40,158,654) | $ (44,328,912) |
Other comprehensive income, net of tax | |||
Unrealized gain of available-for-sales securities | (54,516,694) | 133,864,495 | 0 |
Foreign currency translation adjustments | (27,222,102) | (5,895,181) | (701,895) |
Comprehensive loss of Acorn International, Inc. | (78,330,133) | 87,719,533 | (45,028,304) |
Parent Company [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net income (loss) | 3,438,370 | (40,158,654) | (44,328,912) |
Other comprehensive income, net of tax | |||
Unrealized gain of available-for-sales securities | (53,999,944) | 130,928,599 | 0 |
Foreign currency translation adjustments | (27,715,195) | (2,933,003) | (700,108) |
Comprehensive loss of Acorn International, Inc. | $ (78,276,769) | $ 87,836,942 | $ (45,029,020) |
Financial Information of Pare95
Financial Information of Parent Company Statements of Comprehensive Loss (Parenthetical) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | $ (18,172,231) | $ 44,621,498 |
Parent Company [Member] | ||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | $ (18,172,231) | $ 44,621,498 |
Financial Information of Pare96
Financial Information of Parent Company Statements of Cash Flows (Details) - USD ($) | Aug. 10, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Operating activities: | ||||
Net income (loss) attributable to Acorn International, Inc. shareholders | $ 3,438,370 | $ (40,158,654) | $ (44,328,912) | |
Share-based compensation | 658,000 | 71,333 | 428,000 | |
Equity in losses of affiliates | $ 150,000 | (868,121) | (226,779) | (235,161) |
Changes in operating assets and liabilities: | ||||
Net cash used in operating activities | (14,299,843) | (22,333,075) | (45,632,724) | |
Investing activities: | ||||
Investment in an affiliate | (150,000) | 0 | 0 | |
Net cash provided by investing activities | 28,691,570 | 9,398,600 | (1,714,262) | |
Financing activities: | ||||
Repayment of long-term debt | 0 | (8,520,507) | 0 | |
Repurchase of ordinary shares | (1,530,895) | (375,000) | 0 | |
Net cash provided by (used in) financing activities | (1,530,895) | (8,895,507) | 0 | |
Net increase (decrease) in cash and cash equivalents | 13,358,877 | (22,539,525) | (47,865,935) | |
Cash and cash equivalents at the beginning of the year | 12,146,854 | 34,686,379 | 82,552,314 | |
Cash and cash equivalents at the end of the year | 25,505,731 | 12,146,854 | 34,686,379 | |
Parent Company [Member] | ||||
Operating activities: | ||||
Net income (loss) attributable to Acorn International, Inc. shareholders | 3,438,370 | (40,158,654) | (44,328,912) | |
Share-based compensation | 658,000 | 71,333 | 428,000 | |
Exchange losses of convertible loan | 213,330 | 0 | 0 | |
Equity in losses of affiliates | 150,000 | 0 | 0 | |
Equity in losses (gains) of subsidiaries | 6,261,411 | (37,425,643) | (42,249,948) | |
Changes in operating assets and liabilities: | ||||
Other current assets | (1,019) | (24,389) | (19,267) | |
Other current liabilities | (213,579) | 1,135,638 | (48,564) | |
Net cash used in operating activities | (2,128,542) | (1,690,720) | (1,714,669) | |
Investing activities: | ||||
Cash received from capital deduction of YiyangYukang | 0 | 0 | 3,056,479 | |
Disbursement for loan receivables | 0 | (1,870,547) | 0 | |
Investment in an affiliate | (150,000) | 0 | 0 | |
Investment in an subsidiary | (1,567,757) | 0 | 0 | |
Dividend received | 5,400,000 | 6,506,710 | 0 | |
Net cash provided by investing activities | 3,682,243 | 4,636,163 | 3,056,479 | |
Financing activities: | ||||
Repayment of long-term debt | 0 | (8,506,324) | 0 | |
Amounts due from subsidiaries | 4,980,294 | 3,178,570 | 27,643 | |
Amounts due to subsidiaries | (792,257) | (57,527) | 849,784 | |
Repurchase of ordinary shares | (1,530,895) | (375,000) | 0 | |
Net cash provided by (used in) financing activities | 2,657,142 | (5,760,281) | 877,427 | |
Net increase (decrease) in cash and cash equivalents | 4,210,843 | (2,814,838) | 2,219,237 | |
Cash and cash equivalents at the beginning of the year | 2,113,203 | 4,928,041 | 2,708,804 | |
Cash and cash equivalents at the end of the year | 6,324,046 | 2,113,203 | 4,928,041 | |
Parent Company [Member] | Long-term Debt [Member] | ||||
Operating activities: | ||||
Accrued interest | 0 | 0 | 4,126 | |
Parent Company [Member] | Convertible Debt [Member] | ||||
Operating activities: | ||||
Accrued interest | $ (112,233) | $ (140,291) | $ 0 |
Note to Schedule I (Details Tex
Note to Schedule I (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Financial Statements, Captions [Line Items] | |||
Restricted net assets of consolidated subsidiaries as percentage of consolidated net assets | 25.00% | ||
Investment Income, Dividend | $ 5,400,000 | $ 6,506,710 | $ 0 |
Additional Information - Financ
Additional Information - Financial Statement Schedule- II (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for accounts receivable [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | $ 5,398,166 | $ 3,127,348 | $ 3,508,859 |
Charged to/ (Reducted from) Costs and Expenses | (18,096) | 2,270,818 | (180,039) |
Write-off | (1,677,556) | 0 | (201,472) |
Balance at End of Year | 3,702,514 | 5,398,166 | 3,127,348 |
Allowance for prepaid advertising expenses [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | 1,107,706 | 0 | 0 |
Charged to/ (Reducted from) Costs and Expenses | 0 | 1,107,706 | 0 |
Write-off | (70,802) | 0 | 0 |
Balance at End of Year | 1,036,904 | 1,107,706 | 0 |
Allowance for prepaid expenses and current assets [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | 605,445 | 127,192 | 127,653 |
Charged to/ (Reducted from) Costs and Expenses | (169,097) | 478,253 | (461) |
Write-off | 0 | 0 | 0 |
Balance at End of Year | 436,348 | 605,445 | 127,192 |
Allowance for deferred tax assets [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | 35,657,594 | 30,287,901 | 20,170,712 |
Charged to/ (Reducted from) Costs and Expenses | (2,645,205) | 5,369,693 | 10,117,189 |
Write-off | 0 | 0 | 0 |
Balance at End of Year | $ 33,012,389 | $ 35,657,594 | $ 30,287,901 |