Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document and Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2018 |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | Acorn International, Inc. |
Entity Central Index Key | 0001365742 |
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 | 51,619,218 |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 20,143,783 | $ 21,019,834 |
Restricted cash | 76,243 | 78,051 |
Accounts receivable, net of allowance for doubtful accounts | 3,637,114 | 1,442,750 |
Inventory, net | 1,694,249 | 1,516,283 |
Other prepaid expenses and current assets | 7,342,215 | 4,030,812 |
Advance to related party supplier | 596,575 | 0 |
Current portion of convertible loan receivable | 0 | 3,587,204 |
Loan receivable | 3,597,392 | 0 |
Held-for-sale assets | 2,881,370 | 0 |
Total current assets | 39,968,941 | 31,674,934 |
Property and equipment, net | 1,016,507 | 4,037,294 |
Held-for-sale assets | 0 | 17,022,630 |
Available-for-sale securities | 38,858,216 | 44,479,922 |
Loan to related party | 10,050,054 | 3,628,415 |
Other long-term assets | 243,236 | 64,176 |
Total assets | 90,136,954 | 100,907,371 |
Current liabilities: | ||
Accounts payable | 2,086,958 | 2,100,933 |
Dividend payable | 174,658 | 0 |
Accrued expenses and other current liabilities | 12,874,097 | 8,643,756 |
Deferred revenue | 174,826 | 512,009 |
Income taxes payable | 2,192,540 | 353,635 |
Total current liabilities | 17,503,079 | 11,610,333 |
Deferred tax liability, net | 630,574 | 1,952,990 |
Total liabilities | 18,133,653 | 13,563,323 |
Commitments and contingencies (Note 17) | ||
Acorn International, Inc. shareholders' equity: | ||
Ordinary shares ($0.01 par value; 100,000,000 shares authorized 91,884,402 and 91,884,402 shares issued and 53,602,810 and 51,619,218 shares outstanding as of December 31, 2017 and 2018, respectively) | 918,844 | 918,844 |
Additional paid-in capital | 121,962,650 | 161,962,670 |
Accumulated deficits | (79,399,389) | (110,526,573) |
Accumulated other comprehensive income | 56,507,394 | 60,968,963 |
Treasury stock, at cost (38,281,592 and 40,265,184 shares as of December 31, 2017 and 2018, respectively) | (28,320,324) | (26,335,296) |
Total Acorn International, Inc. shareholders' equity | 71,669,175 | 86,988,608 |
Non-controlling interests | 334,126 | 355,440 |
Total equity | 72,003,301 | 87,344,048 |
Total liabilities and equity | 90,136,954 | 100,907,371 |
Variable Interest Entity, Primary Beneficiary | ||
Current assets: | ||
Cash and cash equivalents | 2,516,248 | 1,425,629 |
Restricted cash | 76,243 | 78,051 |
Accounts receivable, net of allowance for doubtful accounts | 149,853 | 211,272 |
Inventory, net | 326,734 | 41,539 |
Other prepaid expenses and current assets | 2,173,369 | 1,380,911 |
Held-for-sale assets | 159,573 | 0 |
Deferred tax assets, net | 406,129 | 426,577 |
Total current assets | 5,808,149 | 3,563,979 |
Property and equipment, net | 717,672 | 1,058,704 |
Total assets | 6,525,821 | 4,622,683 |
Current liabilities: | ||
Accounts payable | 328,265 | 159,383 |
Accrued expenses and other current liabilities | 592,360 | 947,890 |
Deferred revenue | 174,826 | 293,806 |
Income taxes payable | 435,100 | 439,326 |
Total current liabilities | $ 1,530,551 | $ 1,840,405 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts receivable, allowance for doubtful accounts | $ 4,023,663 | $ 3,978,604 |
Ordinary shares, par value | $ 0.01 | $ 0.01 |
Ordinary shares, shares authorized | 100,000,000 | 100,000,000 |
Ordinary shares, shares issued | 91,884,402 | 91,884,402 |
Ordinary shares, shares outstanding | 51,619,218 | 53,602,810 |
Treasury Stock, Shares | 40,265,184 | 38,281,592 |
Variable Interest Entity, Primary Beneficiary | ||
Accounts receivable, allowance for doubtful accounts | $ 242,767 | $ 255,596 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues: | |||
Direct sales, net | $ 23,644,697 | $ 18,942,436 | $ 13,361,915 |
Distribution sales, net | 4,800,328 | 1,347,851 | 3,116,540 |
Total revenues, net | 28,445,025 | 20,290,287 | 16,478,455 |
Cost of revenues: | |||
Direct sales | 6,648,933 | 5,244,490 | 2,352,556 |
Distribution sales | 1,559,922 | 827,495 | 2,877,620 |
Total cost of revenues | 8,208,855 | 6,071,985 | 5,230,176 |
Gross profit | 20,236,170 | 14,218,302 | 11,248,279 |
Operating (expenses) income | |||
Advertising expenses | 0 | 0 | (23,701) |
Other selling and marketing expenses | (11,913,375) | (10,114,870) | (7,037,783) |
General and administrative expenses | (7,551,677) | (9,759,145) | (14,153,048) |
Other operating income, net | 2,136,263 | 1,473,055 | 7,607,334 |
Total operating expenses | (17,328,789) | (18,400,960) | (13,607,198) |
(Loss) income from continuing operations | 2,907,381 | (4,182,658) | (2,358,919) |
Interest expense | (95) | 0 | 0 |
Interest income | 400,439 | 533,622 | 466,530 |
Other income (expenses), net | 32,564,328 | 11,638,843 | 17,671,023 |
Income from continuing operations before income taxes and equity in losses of affiliates | 35,872,053 | 7,989,807 | 15,778,634 |
Income tax (expense) benefit | (3,187,421) | 7,864,545 | (4,592,783) |
Income from continuing operations before equity in losses of affiliates | 32,684,632 | 15,854,352 | 11,185,851 |
Discontinued operations : | |||
Loss from discontinued operations | (1,236,984) | (3,474,506) | (6,909,067) |
Loss from discontinued operations before equity in losses of affiliates | (1,236,984) | (3,474,506) | (6,909,067) |
Equity in losses of affiliates | (324,900) | 0 | (868,121) |
Net income | 31,122,748 | 12,379,846 | 3,408,663 |
Net loss attributable to non-controlling interests | (4,436) | (4,457) | (29,707) |
Net income attributable to Acorn International, Inc. | $ 31,127,184 | $ 12,384,303 | $ 3,438,370 |
Income (loss) per ordinary share: | |||
Basic and diluted | $ 0.60 | $ 0.19 | $ 0.05 |
—Continuing operations | 0.62 | 0.24 | 0.14 |
—Discontinued operations | $ (0.02) | $ (0.05) | $ (0.09) |
Shares used in calculating income (loss) per ordinary share: | |||
Basic and diluted | 52,546,325 | 65,836,869 | 75,600,700 |
Includes share-based compensation related to: | |||
General and administrative expenses | $ 0 | $ 25,000 | $ 658,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net income | $ 31,122,748 | $ 12,379,846 | $ 3,408,663 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | (988,967) | 11,167,377 | (27,222,102) |
Net unrealized loss of available-for-sale securities, net of tax of $(18,172,231), $(10,347,637) and $(1,163,160) in 2016, 2017 and 2018, respectively | (3,489,480) | (31,042,912) | (54,516,694) |
Comprehensive income (loss) | 26,644,301 | (7,495,689) | (78,330,133) |
Comprehensive income (loss) attributable to non-controlling interest | (21,314) | 16,307 | (53,364) |
Comprehensive income (loss) attributable to Acorn International, Inc. | $ 26,665,615 | $ (7,511,996) | $ (78,276,769) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | $ (1,163,160) | $ (10,347,637) | $ (18,172,231) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated deficits [Member] | Accumulated other comprehensive income [Member] | Treasury stock, at cost [Member] | Parent [Member] | Noncontrolling Interest [Member] |
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 | (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) |
Net unrealized loss 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 | 0 | ||||||
Share-based compensation | 658,000 | 658,000 | 658,000 | |||||
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 | (16,411,643) | ||||||
Net income (loss) | 12,379,846 | $ 0 | 0 | 12,384,303 | 0 | $ 0 | 12,384,303 | (4,457) |
Foreign currency translation adjustments | 11,167,377 | 0 | (1) | 0 | 11,146,614 | 0 | 11,146,613 | 20,764 |
Net unrealized loss of available-for-sale securities | (31,042,912) | 0 | 0 | 0 | (31,042,912) | 0 | (31,042,912) | 0 |
Exercise of restricted share units | 0 | $ 659 | (659) | 0 | 0 | $ 0 | 0 | 0 |
Exercise of restricted share units (in shares) | 65,884 | 0 | ||||||
Share-based compensation | 25,000 | $ 0 | 25,000 | 0 | 0 | $ 0 | 25,000 | 0 |
Share buy-back | (4,694,950) | 0 | 0 | 0 | 0 | $ (4,694,950) | (4,694,950) | 0 |
Share buy-back (in shares) | (21,869,949) | |||||||
Balance at Dec. 31, 2017 | $ 87,344,048 | $ 918,844 | 161,962,670 | (110,526,573) | 60,968,963 | $ (26,335,296) | 86,988,608 | 355,440 |
Balance (in shares) at Dec. 31, 2017 | 91,884,402 | 91,884,402 | (38,281,592) | |||||
Net income (loss) | $ 31,122,748 | $ 0 | 0 | 31,127,184 | 0 | $ 0 | 31,127,184 | (4,436) |
Dividend appropriation | (40,000,020) | 0 | (40,000,020) | 0 | 0 | 0 | (40,000,020) | 0 |
Foreign currency translation adjustments | (988,967) | 0 | 0 | 0 | (972,089) | 0 | (972,089) | (16,878) |
Net unrealized loss of available-for-sale securities | (3,489,480) | 0 | 0 | 0 | (3,489,480) | 0 | (3,489,480) | 0 |
Share buy-back | (1,985,028) | 0 | 0 | 0 | 0 | $ (1,985,028) | (1,985,028) | 0 |
Share buy-back (in shares) | (1,983,592) | |||||||
Balance at Dec. 31, 2018 | $ 72,003,301 | $ 918,844 | $ 121,962,650 | $ (79,399,389) | $ 56,507,394 | $ (28,320,324) | $ 71,669,175 | $ 334,126 |
Balance (in shares) at Dec. 31, 2018 | 91,884,402 | 91,884,402 | (40,265,184) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities: | |||
Net income | $ 31,122,748 | $ 12,379,846 | $ 3,408,663 |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Share-based compensation | 0 | 25,000 | 658,000 |
Equity in losses of affiliates | 324,900 | 0 | 868,121 |
Bad debt expense (recoveries) | 372,272 | 149,858 | (187,193) |
Inventory write-downs (reversals) | 41,929 | (117,585) | 470,069 |
Depreciation and amortization | 933,833 | 1,307,966 | 2,104,597 |
Loss from disposal of equipment and other long-term assets | 82,805 | 151,397 | 672,667 |
Deferred income taxes | (397,477) | (7,842,672) | 423,423 |
Interest on convertible loan receivable | (184,395) | (183,785) | (184,170) |
Interest on loan to related party | (578,896) | 0 | 0 |
Gains on disposal of available-for-sale securities | (960) | (11,845,796) | (18,088,327) |
Gains on disposal of held-for-sales assets and subsidiaries | (32,503,096) | 0 | (5,838,768) |
Changes in operating assets and liabilities: | |||
Accounts receivable | (2,239,423) | (447,631) | 652,386 |
Notes receivable | 0 | 0 | 276,062 |
Inventory | (219,895) | 2,578,638 | (311,781) |
Prepaid advertising expenses | 0 | 10,747 | 460,984 |
Other prepaid expenses and current assets | (1,791,787) | (1,236,651) | 3,257,691 |
Accounts payable | (13,975) | (513,185) | (447,401) |
Accrued expenses and other current liabilities | (587,738) | (488,410) | (4,382,664) |
Income taxes payable | 1,838,905 | (3,312,122) | 1,574,198 |
Deferred revenue | (337,183) | 131,483 | (167,540) |
Net cash used in operating activities | (2,900,449) | (5,778,396) | (7,871,916) |
Investing activities: | |||
Purchase of property and equipment | (103,697) | (346,908) | (483,922) |
Proceeds from disposal of equipment | 1,204 | 11,452 | 80,748 |
Proceeds from disposal of held-for-sale assets and subsidiaries | 47,530,540 | 0 | 11,291,342 |
Interest on loan to related party | 553,938 | 0 | 0 |
Investment in an affiliate | 0 | 0 | (150,000) |
Disbursement of loan to related party | (6,247,432) | (3,628,415) | 0 |
Purchase of other long-term assets | (181,101) | 7,741 | (358,938) |
Proceeds from disposal of available-for-sale securities | 1,038 | 11,845,796 | 18,258,139 |
Proceeds from advance from third party for sale of assets | 5,099,365 | 0 | 0 |
Net cash provided by investing activities | 46,653,855 | 7,889,666 | 28,637,369 |
Financing activities: | |||
Repurchase of ordinary shares | (1,985,028) | (4,694,950) | (1,530,895) |
Disbursement of dividend | (39,825,362) | 0 | 0 |
Net cash used in financing activities | (41,810,390) | (4,694,950) | (1,530,895) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1,583,891) | 1,251,812 | 498,045 |
Cash flows from discontinued operations: | |||
Operating activities | (1,236,984) | (3,148,055) | (6,427,927) |
Investing activities | 0 | 0 | 0 |
Financing activities | 0 | 0 | 0 |
Net cash flows used in discontinued operations | (1,236,984) | (3,148,055) | (6,427,927) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (877,859) | (4,479,923) | 13,304,676 |
Cash, cash equivalents and restricted cash at the beginning of the year | 21,097,885 | 25,577,808 | 12,273,132 |
Cash, cash equivalents and restricted cash at the end of the year | 20,220,026 | 21,097,885 | 25,577,808 |
Supplemental disclosure of cash flow information: | |||
Income taxes paid | 1,745,993 | 3,512,489 | 2,236,119 |
Interest paid | 0 | 0 | 0 |
Supplemental disclosure of non-cash investing and financing activities: | |||
Receivable from sale of non-core assets and subsidiaries | $ 2,443,404 | $ 0 | $ 0 |
Organization and principal acti
Organization and principal activities | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | 1. Organization and principal activities Acorn International, Inc. was incorporated in Cayman Islands on December 20, 2005. Acorn International and its subsidiaries and variable interest entities (“VIEs”) (collectively, “Acorn International” or the “Company”) is an integrated multi-platform marketing company in the People’s Republic of China (“PRC”) which develops, promotes and sells products. The Company’s two primary sales platforms are direct sales and a nationwide distribution network. Direct sales platforms include an outbound marketing platform (which until early 2015 included television (“TV”) direct sales) and an Internet sales platform. Consolidated subsidiaries and changes to consolidated subsidiaries As of December 31, 2018, the consolidated subsidiaries of Acorn International were as follows: Name of subsidiaries Percentage of ownership Date of registration Place of registration China DRTV, Inc. (“China DRTV”) 100 % March 4, 2004 BVI Smooth Profit Limited (“Smooth Profit”) 100 % September 18, 2007 BVI MK AND T Communications Limited (“MK AND T”) 100 % October 27, 1998 Hong Kong Shanghai Acorn Advertising Broadcasting Co., Ltd. (“Shanghai Advertising”) 100 % August 19, 2004 PRC Acorn International Electronic Technology (Shanghai) Co., Ltd. (“Acorn Electronic”) 100 % August 23, 2004 PRC Acorn Information Technology (Shanghai) Co., Ltd. (“Acorn Information”) 100 % August 27, 2004 PRC Beijing Acorn Youngleda Oxygen Generating Co., Ltd. (“Beijing Youngleda”) 100 % October 20, 2004 PRC YiyangYukang Communication Equipment Co., Ltd. (“YiyangYukang”) 100 % November 29, 2005 PRC 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 PRC Beijing HJZX Software Technology Development Co., Ltd. (“Beijing HJZX”) 100 % January 22, 2007 PRC ZhongshanMeijin Digital Technology Co., Ltd. (“ZhongshanMeijin”) 75 % February 13, 2007 PRC Acorn Trade (Shanghai) Co., Ltd. (“Acorn Trade”) 100 % December 13, 2007 PRC Wuxi Acorn Enterprise Management Consulting Co., Ltd. (“Wuxi Acorn”) 100 % January 29, 2010 PRC Acorn Media Group Limited (“Acorn Media”) 100 % June 1, 2018 BVI In February 2017, HJX International Limited, a previously consolidated subsidiary of the Company, was deregistered. In March 2017, Shanghai Acorn HJX Software Technology Development Co., Ltd., a previously consolidated subsidiary of the Company, was deregistered. Acorn has consummated a share sale and purchase agreement with Hong Kong Red Star Macalline Universal Home Furnishings Limited (“Red Star”) on April 27, 2018, in exchange for cash payment of approximately RMB375 million (US$59 million). Renminbi (“RMB”) is the currency of the PRC. Pursuant to the terms of the share sale and purchase agreement, Red Star acquired 100% of the shares in the Company’s wholly-owned Hong Kong subsidiary Bright Rainbow Investments Limited (“Bright Rainbow”), which owns Shanghai HJX Digital Technology Co., Ltd (“Shanghai HJX”), which owns various non-core assets, including the land use rights to a plot of land in the Qingpu district of Shanghai with a total area of 76,799 square meters, along with the warehouse on that land plot. VIE Arrangements As of December 31, 2018, 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”) March 19, 1998 PRC Shanghai Acorn Network Technology Development Co., Ltd. (“Shanghai Network”) November 2, 2004 PRC Beijing HJX Technology Development Co., Ltd. (“Beijing HJX”) September 16, 2013 PRC Due to the complicated and lengthy approval process and uncertain position of the PRC’s Ministry of Commerce towards approving investment in direct sales 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 wholly owned 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 these financial statements. 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 RMB118.0 million (equivalent to US$18.2 million) for capital contributions by the shareholders in these VIEs, (iii) Operation and Management Agreements, under which the parties thereto agreed that Acorn Information directs the day-to-day operational and financial activities of these VIEs, each of the directors, general managers and other senior management personnel of these affiliated entities will be appointed as nominated by Acorn Information, and that these VIEs do not conduct any transactions which might substantially affect their assets, obligations, rights and business operations without the prior written consent of Acorn Information, (iv) Equity Pledge Agreements, under which the shareholders of these VIEs pledged all of their equity interests in these VIEs to Acorn Information as collateral to guarantee the performance of these VIEs under the Operation and Management Agreements and the Technical Services Agreements as described below, as well as their personal obligations under the Loan Agreement, (v) Exclusive Purchase Agreements, under which the shareholders of these VIEs irrevocably granted Acorn Information or its designees an exclusive option to purchase at any time if and when permitted under PRC law, all or any portion of their equity interests in these VIEs for a price that is the minimum amount permitted by PRC law, (vi) Technical Service Agreements, under which Acorn Information became the exclusive provider of technical support and consulting services to these VIEs in exchange for service fees, and (vii) Spouse Consent Letters, pursuant to which the spouse of each of the shareholders of these two affiliated entities acknowledges that she or he is aware of, and consents to, the execution by her or his spouse of irrevocable powers of attorney, equity pledge agreements and the exclusive purchase agreements described above and, with respect to establishment, grant and performance of the above irrevocable powers of attorney, equity pledge and the exclusive purchase, each spouse further agrees that, whether at present or in the future, she or he will not take any actions or raise any claims or objection. 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 affect 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 authority 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 the 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 holds 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 also collectively owned 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 RMB53.0 million (equivalent to US$8.7 million) for capital contributions by the shareholders in these VIEs, (iii) Operation and Management Agreements, under which the parties thereto agreed that Acorn Trade directs the day-to-day operational and financial activities of these VIEs, each of the directors, general managers and other senior management personnel of these affiliated entities will be appointed as nominated by Acorn Trade, and that these VIEs do not conduct any transactions which might substantially affect their assets, obligations, rights and business operations without the prior written consent of Acorn Trade, (iv) Equity Pledge Agreements, under which the shareholders of the VIEs pledged all of their equity interests in these VIEs to Acorn Trade as collateral to guarantee the performance of these VIEs under the Operation and Management Agreements and the Technical Services Agreements as described below, as well as their personal obligations under the Loan Agreement, (v) Exclusive Purchase Agreements, under which the shareholders of these VIEs irrevocably granted Acorn Trade or its designees an exclusive option to purchase at any time if and when permitted under PRC law, all or any portion of their equity interests in these VIEs for a price that is the minimum amount permitted by PRC law, (vi) Technical Service Agreements, under which Acorn Trade became the exclusive provider of technical support and consulting services to these VIEs in exchange for service fees, and (vii) Spouse Consent Letters, pursuant to which the spouse of each of the shareholders of these two affiliated entities acknowledges that she or he is aware of, and consents to, the execution by her or his spouse of irrevocable powers of attorney, equity pledge agreements and the exclusive purchase agreements described above and with respect to establishment, grant and performance of the above irrevocable powers of attorney, equity pledge and the exclusive purchase, each spouse further agrees that, whether at present or in the future, she or he will not take any actions or raise any claims or objection. 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 authority 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 was established. In May 2016, HJX Electronic was deregistered. The Company believes that the 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. 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 Company’s PRC legal counsel. If the current agreements that establish the structure for conducting the Company’s PRC direct sales business and internet interactive service were found to be in violation of existing or future PRC laws or regulations, the Company 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 Company’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 Company’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 Company’s PRC subsidiaries and VIEs; • discontinue or restrict the operations of any related-party transactions among the Company’s PRC subsidiaries and VIEs; • limit the Company’s business expansion in the PRC by way of entering into contractual arrangements; • impose fines or other requirements with which the Company’s PRC subsidiaries may not be able to comply; • require the Company or the Company’s PRC subsidiaries to restructure the relevant ownership structure or operations; or • restrict or prohibit the Company’s use of the proceeds of the additional public offering to finance the Company’s business and operations in the PRC. The Company’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 Company 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 their shareholders, and it may lose the ability to receive economic benefits from the VIEs. The Company, however, believes that alternative solutions could be found if these actions were to happen in the future. The Company believes that its ability to direct the activities of the three VIEs that most significantly impact the VIEs’ economic performance is not affected by the above uncertainties in the PRC legal system. Accordingly, the three VIEs continue to be consolidated VIEs of the Company. Summary financial information of the Company’s three VIEs included in the accompanying consolidated financial statements is included on page F-4 and as follows: For the years ended December 31, 2016 2017 2018 Net revenues $ 12,251,518 $ 7,156,742 $ 4,928,261 Net loss $ (998,709 ) $ (579,948 ) $ (1,025,151 ) The VIEs contributed an aggregate of 74.3%, 35.3 % and 17.3% of the consolidated net revenues for the years ended December 31, 2016, 2017 and 2018 respectively. The Company’s operations not conducted through contractual arrangements with the VIE primarily consist of its distribution sales business. As of the fiscal years ended December 31, 2017 and 2018, the VIEs accounted for an aggregate of 4.2% and 7.2 %, respectively, of the consolidated total assets, and 8.3% and 8.4%, respectively, of the consolidated total liabilities. The assets not associated with the VIEs primarily consist of cash and cash equivalents, accounts receivables, net, inventory, net, current portion of convertible loan receivable, property and equipment, net, held-for-sale assets, available-for-sale securities, loan to related party and other long-term assets. The consolidated VIEs’ assets are not used as 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 Company or any of its consolidated subsidiaries. Should the VIEs require financial support, the Company 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 their net assets, equivalent to the balance of its statutory reserve and its share capital, to the Company in the form of loans and advances or cash dividends. |
Summary of principal accounting
Summary of principal accounting policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 2. Summary of principal accounting policies (a) Basis of presentation The consolidated financial statements of the Company have been prepared in accordance with the accounting principles generally accepted in the United States of America (“US GAAP”). (b) Basis of consolidation The consolidated financial statements include the financial statements of Acorn International, its subsidiaries and consolidated VIEs. All intercompany transactions and balances are eliminated upon consolidation. Net income or loss of a subsidiary is attributed to the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance. Non-controlling interests in subsidiaries are presented separately from the Company’s equity therein. (c) Use of estimates The preparation of financial statements in conformity with US GAAP requires the Company 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 Company’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. (d) Going concern Although the Company incurred a negative cash flows from operations for the year ended December 31, 2018 and had accumulated deficits as of that date, the Company improved its liquidity position by selling non-core assets and investments. Furthermore, the Company continually focused on reducing operating costs, including at the Company management level by reducing headcount, changing to lower cost vendors and reducing travel expenses. As a result, the accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern. (e) Fair value of financial instruments 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 1—Observable unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2—Observable 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 3—Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. When available, the Company 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 Company 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 Company 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 Company 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 Company’s evaluation of those factors change. Although the Company 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 Company’s consolidated assets, liabilities, equity and net income or loss. The Company’s financial instruments consist of cash and cash equivalents, restricted cash, accounts receivable, convertible loan receivable, loan to related party, available-for-sale securities and accounts payable. For cash and cash equivalents, restricted cash, accounts receivable, and accounts payable, the carrying amounts of these financial instruments as of December 31, 2017 and 2018 were considered representative of their fair values due to their short-term nature. The carrying values of convertible loan receivable and loan to related party approximate their fair values as the impact of discounting the convertible loan receivable and loan to related party with a market based interest rate is insignificant. The marketable securities are carried at fair values based on an independent valuation report. (f) Cash and cash equivalents Cash and cash equivalents consist of cash on hand and highly liquid investments which are unrestricted as to withdrawal or use, and which have maturities of three months or less when purchased. Cash balances of the Company that are included in the cash and cash equivalents of the consolidated balance sheets, including those denominated in RMB. 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 Company 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 Company complies with all entioned below as required. 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 Company’s aggregate amount of cash and cash equivalents and restricted cash denominated in RMB amounted to RMB 123,510,697 ($18,902,191) and RMB 120,159,160 ($17,507,746) as of December 31, 2017 and 2018, respectively. PRC state-owned banks, such as Bank of China, are subject to a series of risk control regulatory standards, and PRC bank regulatory authorities are empowered to take over the operation and management when any of those banks faces a material credit crisis. The Company does not foresee substantial credit risk with respect to cash and cash equivalents, restricted cash and short-term investments held at the PRC state-owned banks. Meanwhile, China does not have an official deposit insurance program, nor does it have an agency similar to the Federal Deposit Insurance Corporation (FDIC) in the U.S. In the event of bankruptcy of one of the financial institutions in which the Company has deposits or investments, it may be unlikely to claim its deposits or investments back in full. The Company selected reputable international financial institutions with high rating rates to place its foreign currencies. The Company regularly monitors the rating of the international financial institutions to avoid any potential defaults. There has been no recent history of default in relation to these financial institutions. (g) Restricted cash Under third-party bank channel sales arrangements, the Company is required to maintain certain cash balances in the banks. Such balances are classified as restricted cash in the balance sheet and amounted to $78,051 and $76,243 as of December 31, 2017 and 2018, respectively. (h) Inventory, net 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 Company estimates excess and slow-moving inventory based upon assumptions of future demand and market conditions. If actual market conditions are less favorable than projected by management, additional inventory write-downs may be required. (i) Available for sale securities The Company 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 Company 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 are reported at fair value with unrealized gains or losses, if any, recorded in accumulated other comprehensive income in shareholders' equity. If the Company 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 operations and comprehensive income (loss). The new cost basis of the investments would not be adjusted for subsequent recoveries in fair values. The Company recorded no impairments of available-for-sale securities for the years ended December 31, 2016, 2017 and 2018. (j) Property and equipment, net Property and equipment are carried at cost less accumulated depreciation. Depreciation is calculated on a straight-line method over the following estimated useful lives: Estimated useful lives Buildings 20 years Machinery 10 years Information technology equipment 5 years Computers and office equipment 3-5 years Vehicles 3-4 years (k) 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 to 15 years. (l) 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. 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 Company classified certain real estate properties of $3,808,471 as held-for-sale at the time management committed to a plan to sell these properties to third parties. The Company entered into sale agreements for total cash consideration of approximately $11.3 million. The sales were subsequently completed in early 2016. During 2017, the Company classified HJX product related assets, intangible assets and prepaid copyright expense, of $475,936 as held-for-sale as the Company reached an agreement in June 2017 to sell a majority stake in its HJX related business to a third-party investor and operator. Specifically, the agreement includes the establishment of a joint venture that will be controlled and operated by such third party. During 2017, the Company also classified land use rights and related building with carrying amount $16,546,694 as held-for-sale at the time management committed to a plan to sell the shares of Bright Rainbow to a third-party. Bright Rainbow owns the entire share capital of Shanghai HJX, which owns the land use rights to the land plot located in the Qingpu district of Shanghai and all the buildings, fixtures and related facilities. The sale was subsequently completed in early 2018. During 2018, the Company classified buildings with carrying amount $2,411,294 as held-for-sale as the Company reached an agreement on December 10, 2018 to sell its prior principal office to a third-party. (m) Impairment of long-lived assets The Company 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 Company 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 Company would recognize an impairment loss equal to the excess of the carrying amount over the fair value of the assets. (n) Investment in affiliates Affiliated companies are entities which the Company owes equity interest in common stock or in-substance common stock. The affiliated companies are classified by the companies in which the Company has significant influence or non-significant influence. The Company generally considers an ownership interest of 20% or higher to represent significant influence. The affiliated companies in which the Company has non-significant influence are accounted for using the cost method of accounting. Dividends received that are distributed from the net accumulated earnings of the investee are recognized in the Company’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 is recognized. Affiliated companies in which the Company has significant influence are accounted for using equity method of accounting. The share of earnings or losses of the investee are recognized in the Company’s consolidated statements of operations and adjusts the carrying amount of the investment. Dividends received reduce the carrying amount of the investment. The Company 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 Company would recognize an impairment loss equal to the excess of the carrying amount over the fair value of the investment. (o) Convertible loan receivable The convertible loan receivable in the consolidated balance sheets as of December 31, 2017 and 2018 represents a loan receivable (the “Note”) from a third party (the “Borrower”), net of provision for credit losses, if any. Interest income derived from the loan is recognized as earned. The Company has the option to convert, all or any part of the outstanding principal and unpaid accrued interest in a single tranche 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. The Company has evaluated the conversion feature and believes it is not considered an embedded derivative instrument subject to bifurcation as the conversion option does not provide the Company with means to net settle the contracts in accordance with ASC 815, Accounting for Derivative Instruments and Hedging Activities . At each balance sheet date, amounts due under the Note are assessed for purposes of determining the appropriate provision for credit losses. In order to estimate the allowance for credit losses, the Company assesses at each period end the ability of the Borrower to meet its obligations under the loan agreement by taking into consideration existing economic conditions, the current financial condition of the Borrower and historical losses, if any, and any other risks/factors that may affect its future financial condition and its ability to meet its obligations. The Note was personally guaranteed by Mr. Robert W. Roche (“Mr. Roche”), Acorn International’s co-founder and current executive chairman. Mr. Roche unconditionally and irrevocably guarantees to Acorn the due and prompt payment by the Borrower of any unpaid principal and interest. See Note 9. (p) Revenue recognition On January 1, 2018, the Company adopted ASU 2014-09 on revenue from contracts with customers using the modified retrospective method. The adoption did not have a material impact on the Company’s consolidated financial statements. The Company recognizes revenue on product sales in the period in which the Company satisfies its performance obligation and control of the product is transferred to the customer. Direct sales The Company’s direct sales revenues consist primarily of product sales through its outbound marketing platforms and Internet sales platforms. The Company’s sales arrangements with customers are predominately short term in nature and generally provide for transfer of control at the time when the products are delivered to and accepted by the customers (e.g. “F.O.B. Destination”) as this is the point at which title and risk of loss of the product transfers to the customer. At the end of each period, the Company adjusts revenues and cost of sales for the unsuccessful product deliveries, data of which was provided by the delivery companies the Company relies on. The amount of revenue recorded reflects the consideration to which the Company expects to be entitled in exchange for goods. Distribution sales The Company’s distribution sales consist of product sales to distributors across the country. The Company’s sales arrangements with distributors are predominately short term in nature and generally provide for transfer of control at the time when the products are delivered to and accepted by the distributors (e.g. “F.O.B. Destination”) as this is the point at which title and risk of loss of the product transfers to the distributors. The amount of revenue recorded reflects the consideration to which the Company expects to be entitled in exchange for goods and may include adjustments for customer allowance and rebates. The distributor agreements do not provide discounts, chargebacks, price protection or stock rotation rights. Revenue and billing The Company generally accepts orders from customers through receipt of orders from e-commerce platforms, purchase orders and purchasing contracts. The pricing and selling terms are based on market factors, costs, and competition. The customer through e-commerce platforms are billed at the time they put the order, while the distributors are billed when the Company’s products are delivered to and accepted by them in accordance with the terms of the sales agreement. As the Company’s standard payment terms are less than one year, the Company has elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component. The Company also elected the practical expedient provided in ASC 606-10-25-18B to treat all product shipping and handling activities as fulfillment activities, and therefore recognize the gross revenue associated with the contract, inclusive of any shipping and handling revenue. This approach is similar to the Company’s prior practice and therefore the effect of the new guidance is immaterial. Inventory returns Generally, the customers may return products to the Company within thirty days after delivery if there is a quality defect or if a product fails to meet its specifications, subject to shorter periods provided in policies of the platforms on which the goods are sold. The Company’s warranties generally provide for repair of product defects within one year following the purchase date at the Company’s cost. To the extent that the manufacturer of the defective product is a third party, the manufacturer is contractually obligated to either repair the defective product or reimburse the Company for any related expenses. The distributors are allowed to return any defective products they receive from the Company. The Company establishes an estimated allowance for these returns based on past experience. Sales revenue and cost of sales are presented net of anticipate estimated returns. Sales taxes The Company presents revenues net of sales taxes incurred. Sales taxes amounted to $53,415, $250,291 and $365,849 for the years ended December 31, 2016, 2017 and 2018, respectively. Before subtracting sales taxes, gross direct sales revenues were $13,406,943, $19,135,633 and $23,883,508 and gross distribution sales revenues were $3,124,927, $1,404,945 and $4,927,366 for the years ended December 31, 2016, 2017 and 2018, respectively. (q) Advertising expenses The Company records cash advances paid to advertising companies as prepaid advertising expenses and then expenses the prepaid advertising expenses at the time of the first advertisement is shown. Advertising expenses were $23,701, nil and nil for the years ended December 31, 2016, 2017 and 2018, respectively. (r) Shipping and handling costs The Company 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 $1,158,019, $982,175 and $645,976 for the years ended December 31, 2016, 2017 and 2018, respectively. (s) 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. (t) Government subsidies The Company 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 Company, including value-added and income taxes. The Company records unrestricted government subsidies as other operating income in the consolidated statements of operations when these subsidies from the government agencies are received. The government subsidies in 2016, 2017 and 2018 were $66,648, nil and $53,965, respectively. (u) 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 Company 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 Company classifies interests and penalties related to income tax matters in income tax expense. (v) Foreign currency translation The functional currency and reporting currency of Acorn International, China DRTV, Smooth Profit, MK AND T, and Bright Rainbow are the 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 Company’s PRC subsidiaries and VIEs are denominated in 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 (loss) in the consolidated statements of comprehensive income (loss). The aggregated losses through foreign currency transactions in 2016, 2017 and 2018 were $(380,350), $(241,771) and $(126,582), respectively. (w) Concentration of credit risk Financial instruments that potentially expose the Company to concentration of credit risk consist primarily of cash and cash equivalents, restricted cash, accounts receivable and convertible loans. All of the Company’s cash and cash equivalents and restricted cash are held with large PRC state-owned financial institutions. The Company engages delivery companies, mainly EMS, to deliver products to customers and to collect cash from the customers using direct sales platforms. The Company conducts credit evaluations of delivery companies and generally does not require collateral or other security from its delivery companies. The Company establishes an allowance for doubtful accounts primarily based on the age of the receivables and factors surrounding the credit risk of specific customers. The Company evaluated its credit risk with the convertible loan and loan to related party by performing ongoing evaluation on the borrower’s financial condition. The loan agreements have a personal guarantee from Mr. Roche, and is pledged with the equity of the borrower. (x) Share-based compensation Share-based compensation cost is measured at grant date, based on fair value of the award, and recognized in expense over the requisite service period. For performance-based awards, the Company uses graded vesting when the performance condition is considered probable. The Company has made an estimate of expected forfeitures and recognizes compensation costs only for those equity awards expected to vest. (y) Income (loss) per share Basic income (loss) per share is computed by dividing income attributable to the Company’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. (z) Non-controlling interest A non-controlling interest in a subsidiary of the Company represents the portion of the equity (net assets) in the subsidiary not directly or indirectly attributable to the Company. Non-controlling interests are presented as a separate component of equity in the consolidated balance sheet and earnings and other comprehensive income (loss) are attributed to controlling and non-controlling interests. (aa) Recently issued accounting pronouncements ASU 2014-09 - Revenue from Contracts with Customers (“ASU 2014-09”). In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09 that will be applied to all contracts with customers. ASU 2014-09 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 is 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. ASU 2016-01 - Financial Instruments. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), requires that most equity investments be measured at fair value, with subsequent changes in fair value recognized in net income. ASU 2016-01 also affects 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 evaluated the effect of ASU 2016-01 on its financial statements and concluded that adoption did not have a material impact on its consolidated financial statements. The Company adopted this new guidance on January 1, 2018. ASU 2016-02 - Leases. In February 2016, the FASB issued ASU 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. While the Company is continuing to assess the potential impacts of ASU 2016-02, the Company estimates that the adoption of ASU 2016-02 will result in the recognition of right-of-use assets of approximately $2 million and related lease liabilities for operating leases on its consolidated balance sheets, with no material impact to its consolidated statements of operations. ASU 2016-13 - 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 pe |
Inventory, net
Inventory, net | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | 3. Inventory, net Inventory consisted of the following: December 31, 2017 2018 Raw materials $ 129,970 $ 63,830 Finished goods and merchandise goods 1,386,313 1,630,419 $ 1,516,283 $ 1,694,249 As of December 31, 2017 and 2018, a portion of finished goods, and merchandise goods, and certain raw materials were in excess of the Company’s current requirements based on the recent level of sales. The Company recorded inventory write-downs (reversals) of $470,069, $(117,585) and $41,929 for the 2017 and 2018, respectively. Reversals in 2017 resulted from sales and disposal of previously impaired goods. |
Other prepaid expenses and curr
Other prepaid expenses and current assets | 12 Months Ended |
Dec. 31, 2018 | |
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 Other prepaid expenses and current assets consisted of the following: December 31, 2017 2018 Advances to suppliers $ 54,594 $ 307,774 Value-added tax recoverable 947,408 942,710 Deposits 361,747 416,609 Prepaid media expenses 1,135,043 809,389 Prepaid service fees 294,350 146,539 Receivable from third party for sale of non-core assets and subsidiaries (Refer to Note 5) — 2,443,404 Other prepaid expenses 1,237,670 2,275,790 $ 4,030,812 $ 7,342,215 |
Property and equipment, net
Property and equipment, net | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | 5. Property and equipment, net Property and equipment, net consisted of the following: December 31, 2017 2018 Buildings $ 4,764,519 $ — Computers and office equipment 4,498,081 4,198,086 Vehicles 344,788 294,712 Information technology equipment 263,007 250,400 Machinery 83,175 44,574 $ 9,953,570 $ 4,787,772 Less: accumulated depreciation (5,916,276 ) (3,771,265 ) $ 4,037,294 $ 1,016,507 Depreciation expense for property and equipment was $1,455,654, $1,126,590 and $933,833 for the years ended December 31, 2016, 2017 and 2018, respectively. In early 2016, the Company sold certain of its properties located in Beijing and Shanghai with cost of $6,076,530 and carrying amount $3,808,471. The Company recognized a gain of $5,778,669 in other operating income in connection with these sales. In 2017, the Company committed to a plan to sell the shares of Bright Rainbow to a third-party. Bright Rainbow owns the entire share capital of Shanghai HJX, which owns the land use rights to the land plot located in the Qingpu district of Shanghai and all the related buildings, fixtures and related facilities with carrying amount $16,546,694. The land use rights and related building were reclassified to held-for-sale assets as of December 31, 2017. The sale was subsequently completed in 2018. The Company recognized a gain of $32,503,096 in other income in connection with this sale during 2018. As of December 31 2018, the Company had received net proceeds of $47.5 million from the sale and recorded a remaining receivable of $2.4 million, net of withholding taxes, from the buyer in the consolidated balance sheets. In 2018, the Company paid a one-time cash dividend on the Company’s ordinary shares of $0.75 per ordinary share. This cash dividend was paid on June 22, 2018 to shareholders of record on June 4, 2018. The aggregate amount of cash dividends paid was approximately $40 million, comprising of the Proceeds and an amount of share premium. As of December 31, 2018, the Company classified buildings with carrying amount $2,411,294 as held-for-sale as the Company reached an agreement on December 10, 2018 to sell its prior principal office to a third-party. The Company received an advance of $5,099,365 from the buyer as of December 31, 2018. |
Acquired intangible assets, net
Acquired intangible assets, net | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Disclosure [Text Block] | 6. Acquired intangible assets, net Acquired intangible assets, net consisted of the following: December 31, 2017 2018 Distribution networks $ — $ — Trademarks 614,624 614,624 $ 614,624 $ 614,624 Less: accumulated amortization (614,624 ) (614,624 ) $ — $ — In 2017, the Company reached an agreement to sell a majority interest in its HJX business to a third-party investor and operator. The Company reclassified HJX related distribution networks and trademarks with carrying amount $353,691 to held-for-sale assets as of December 31, 2017. The Company recorded amortization expense of $301,697, $221,582 and nil for the years ended December 31, 2016, 2017 and 2018, respectively. |
Investments in affiliates
Investments in affiliates | 12 Months Ended |
Dec. 31, 2018 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Investments in and Advances to Affiliates, Schedule of Investments [Text Block] | 7. Investments in affiliates Investments accounted for under the cost method of accounting On August 10, 2016, the Company acquired 5% of the then fully diluted share capital of ClearCut Corporation (“ClearCut”), a Delaware corporation, for cash of $150,000. The Company exerts no significant influence in Clearcut and accounted for this investment using the cost method of accounting. The Company’s 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 On December 31, 2012, the Company acquired a 9.3% equity interest in China Branding Company Limited (“CBG”) for cash of $1.3 million. Mr. Roche individually holds an additional 7.6% equity interests in CBG and holds one out of five Board of Directors seats of CBG. Accordingly, Mr. Roche is able to exercise significant influence through his participation on the Board of Directors. As such, management believes that it can exercise significant influence over CBG through the Company’s direct equity investment, the Company’s indirect investment through Mr. Roche’s equity interest, and Mr. Roche’s significant influence over CBG. Therefore, the Company accounts for this investment using the equity method of accounting. In February 2013, the Company’s investment in CBG decreased from 9.3% to 8.7% as a result of dilution due to issuance of additional shares by CBG to a new investor, which was accounted for as if the Company sold 0.6% equity interests in CBG, and the gains from this dilution were immaterial. Starting from incorporation, CBG suffered operational losses and the Company recognized equity in losses of $226,780 in 2015. In 2016, a law firm filed a winding up petition seeking to wind up CBG with the Grand Court of the Cayman Islands and then CBG was deregistered. The Company’s investment in CBG amounted to $718,121 was recognized as equity in losses of affiliates in the 2016 consolidated statements of operation. |
Available-for-sale securities
Available-for-sale securities | 12 Months Ended |
Dec. 31, 2018 | |
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 Company’s available-for-sale securities represent marketable equity securities investments in Shanghai Yimeng Software Technology Co., Ltd. (“Yimeng”). As of December 31, 2017 and 2018, the carrying amount and fair value of the Company’s available-for-sale securities investment were $44,479,922 and $38,858,216, respectively. The Company recognized net unrealized losses of $ (72,688,925 (41,390,549 (4,652,640 |
Convertible loan receivable
Convertible loan receivable | 12 Months Ended |
Dec. 31, 2018 | |
Convertible Loan [Abstract] | |
Convertible Loans Receivables [Text Block] | 9. Convertible loan receivable In October 2014, Ryecor China Investment Limited (“Ryecor”), a company owned by the Mr. Roche, entered into an agreement with Shanghai e-Surer Financial Services Co., Ltd. (“E-surer”), whereby E-surer borrowed from Ryecor a RMB 20,000,000 convertible line of credit at 6% annual interest payable at maturity on August 22, 2018. Under the loan agreement, the line of credit up to RMB20.0 million is available to E-surer at any time until the maturity date. All or part of outstanding principle and interest may be converted into such amount of equity interest of E-surer that represents a percentage of equity ownership obtained by dividing the aggregate outstanding principal and unpaid accrued interest on the date of conversion, by RMB 100,000,000. The loan was secured by the 51% of E-surer’s equity interest in its wholly-owned subsidiary. In September 2015, the Company entered into an assignment with Ryecor, pursuant to which Ryecor assigned to the Company all of its rights and delegated to the Company all of its obligation in exchange of a cash payment of $3,024,933 to Ryecor and Acorn Composite Corporation, Inc., which is also a company owned by Mr. Roche. The Assigned Contracts were personally guaranteed by Mr. Roche. The loan matured on August 22, 2018 and management is negotiating with the borrower on a repayment plan. The loan continues to be personally guaranteed by Mr. Roche until fully repaid or converted and the management believes the loan to be fully collectable. As of the date of these financial statements, E-surer has not repaid the loan assigned to Acorn International. The Company continued to accrue interest on unpaid loan. As of December 31, 2017 and 2018, the Company classified the loan advance of $3,587,204 and $3,597,392 respectively, which includes an accrued interest of $183,785 and $184,395 in 2017 and 2018, |
Accrued expenses and other curr
Accrued expenses and other current liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
Accrued And Other Current Liabilities [Text Block] | 10. Accrued expenses and other current liabilities Accrued expenses and other current liabilities consisted of the following: December 31, 2017 2018 Other taxes payable $ 1,344,814 $ 506,465 Accrued employee payroll and welfare 1,685,492 1,734,528 Other payable 832,548 514,031 Accrued expenses 4,717,604 4,672,641 Advances from customers 63,298 19,421 Advances from third party for sale of non-core assets (Refer to Note 5) — 5,099,365 Provision for equity of losses in affiliates — 327,646 $ 8,643,756 $ 12,874,097 Other taxes payable mainly consist of value-added tax and related surcharges and PRC individual income tax of employees that was withheld by the Company. The Company’s PRC subsidiaries are subject to value-added tax at a rate of % before and % thereafter on product purchases and sales. Value-added tax payable on sales is computed net of value-added tax paid on purchases. |
Share-based compensation
Share-based compensation | 12 Months Ended |
Dec. 31, 2018 | |
Share-based Compensation [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 11. Share-based compensation In May 2006, the Company adopted the 2006 Equity Incentive Plan (the “2006 Option Plan”) which allows the Company to offer a variety of incentive awards to employees, officers, directors or individual consultants or advisors who render services to the Company and authorized the issuance of 24,133,000 ordinary shares. Under the 2006 Option Plan, the share options and stock appreciation rights (“SARs”) are generally granted with an exercise price equal to the fair market value of the underlying shares, as determined by the Company’s Board of Directors at the date of grant and expire after ten years and six years, respectively, with vesting occurring 25% upon grant and the remaining 75% vesting ratably over three years. Certain share options and SARs granted vest immediately upon grant, and certain share options and SARs granted vest upon the satisfaction of certain performance targets. The proceeds from the exercise of the SARs by the grantee will be equity settled by delivery of equivalent fair value of ordinary shares of the Company. On April 8, 2016, the Company granted 2,800,000 restricted share units (“RSUs”) under the 2006 Plan to Jacob Alexander Fisch, President of the Company. The grant includes time-based shares of 1,800,000 shares and performance-based shares of 1,000,000 shares which shall vest upon certain performance targets being met. All the RSUs granted were subsequently fully vested in 2016. On March 6, 2017, the Company granted 65,884 ordinary shares. The Company recorded compensation expense of $658,000, $25,000 and nil for the years ended December 31, 2016, 2017 and 2018, respectively, which were all associated with the RSUs granted by the Company. The fair value of each RSU granted from 2012 to 2018 were based on quoted market price of the Company’s ordinary shares on the grant date. A summary of the RSUs activity for the year ended December 31, 2016 was as follows: Number of RSUs Weighted average 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 — $ — In 2017 and 2018, the Company granted no RSUs. As of December 31, 2017 and 2018, there were 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, 2018 | |
Disclosure Text Block [Abstract] | |
Fair Value, Measurement Inputs, Disclosure [Text Block] | 12. Fair value measurements Assets and Liabilities Measured at Fair Value on a Recurring Basis The Company'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, 2017 and 2018 include available-for-sale securities investments. Available-for-sale securities investments represent the marketable equity securities invested by the Company. The marketable equity securities are carried at fair values. As of December 31, 2017 and 2018, information about inputs into the fair value measurements of the Company's assets and liabilities that are measured at fair value based on independent valuation report as described below. The Company uses a combination of valuation methodologies, including market and income approaches based on the Company’s best estimate, which is determined by using information including but not limited to the quoted price, liquidity factors and selection of the comparable companies. The Company classifies the valuation techniques that use these inputs as Level 2. Fair Value Measurements at Reporting Date Using Description As of December 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Available-for-sale investments- marketable equity securities $ 38,858,216 — $ 38,858,216 — Fair Value Measurements at Reporting Date Using Description As of December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Available-for-sale investments- marketable equity securities $ 44,479,922 — $ 44,479,922 — The Company did not have any assets and liabilities that were measured at fair value on a nonrecurring basis. |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 13. Taxation Acorn International is incorporated in the Cayman Islands and is not subject to tax in that jurisdiction. China DRTV and Smooth Profit are incorporated in the British Virgin Islands and are not subject to tax in that jurisdiction. The Company’s Hong Kong subsidiary, MK AND T, is subject to Hong Kong statutory income tax on its Hong Kong sourced income. All of the Company’s PRC subsidiaries are subject to the statutory rate of 25% in 2016, 2017 and 2018 in accordance with the PRC government promulgated Law of the People’s Republic of China on the Enterprise Income Tax (“New EIT Law”). Under the New EIT Law and implementation regulations issued by the PRC State Council, income tax at the rate of 10% is applicable to interest and dividends payable to investors that are “non-resident enterprises” which do not have an establishment or place of business in the PRC, or which have such establishment or place of business but the relevant income is not effectively connected with the establishment or place of business, to the extent such interest or dividends have their sources within the PRC. Undistributed earnings of the Company’s PRC subsidiaries are considered to be indefinitely reinvested and, accordingly, no provision for PRC dividend withholding tax has been provided thereon. Upon distribution of these earnings in the form of dividends or otherwise in the future, the Company would be subject to PRC withholding tax at 10% or a lower treaty rate. 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 Company. The Company has made its assessment of each tax position (including the potential application of interest 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, 2017 and 2018, the Company had unrecognized tax benefits of approximately $2.2 million and $1.2 million, respectively. During 2016, 2017 and 2018, the Company recorded uncertain tax benefits of $0.1 million, $0.2 million and nil, respectively, associated with intercompany transfer pricing results falling below the median of the inter-quartile range of comparable companies. The unrecognized tax benefits would impact the effective income tax if recognized. As of December 31, 2017 and 2018, the amount of recorded interest and penalties related to uncertain tax positions was $160,057 and $204,156, respectively. 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 RMB100,000 (approximately $15,000) is specifically listed as a special circumstance. In the case of a transfer pricing related adjustment, the statute of limitations is ten years. There is no statute of limitations in the case of tax evasion. The Company’s PRC subsidiaries are therefore subject to examination by the PRC tax authorities from 2011 through 2018 on non-transfer pricing matters, and from 2006 through 2018 on transfer pricing matters. The current and deferred portion of income tax benefit (expense) included in the consolidated statements of operations were as follows: For the years ended December 31, 2016 2017 2018 Current income tax expenses $ (4,169,360 ) $ 21,873 $ (3,584,898 ) Deferred income tax benefit (expense) (423,423 ) 7,842,672 397,477 Total income tax benefit (expense) $ (4,592,783 ) $ 7,864,545 $ (3,187,421 ) Reconciliation between the effective income tax rate and the PRC statutory income tax rate was as follows: For the years ended December 31, 2016 2017 2018 PRC statutory tax rate 25 % 25 % 25 % Expenses not deductible (income not taxable) for tax purposes 4 % (1 )% 1 % Effect of different tax rate of subsidiary operations in other jurisdiction (15 )% 22 % (22 )% Change in valuation allowance 36 % (217 )% 6 % Utilization (recognition) of the unrecognized tax benefit 2 % (0 )% (0 )% Others — (3 )% (1 )% Effective tax rate 52 % (174 )% 9 % The principal components of the Company’s deferred income tax assets and liabilities as of December 31, 2017 and 2018 were as follows: December 31, 2017 2018 Deferred tax assets: Allowance and reserves for inventory and accounts receivable $ 1,648,979 $ 1,777,103 Accrued expenses 915,809 1,023,275 Revenue recognition difference 97,153 89,567 Advertising expenses 363,155 — Net operating losses 28,469,713 16,443,637 $ 31,494,809 $ 19,333,582 Less: valuation allowance (22,932,999 ) (10,825,754 ) $ 8,561,810 $ 8,507,828 Deferred tax liabilities: Unrealized gain on available-for-sale securities (10,514,800 ) (9,138,402 ) $ (10,514,800 ) $ (9,138,402 ) Total deferred tax liabilities, net $ (1,952,990 ) $ (630,574 ) As of December 31, 2018, the Company had tax losses carrying forward of $65,774,548. The tax losses will expire between 2019 and 2023 if not utilized. The Company 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 Company believes it is not more-likely-than-not that the Company will realize the benefits of all these deductible differences. As of December 31, 2017 and 2018, the Company had a valuation allowance of $23.0 million and $11.0 million, respectively. The remainder amount of the deferred tax assets considered realizable, however, could be reduced if estimates of future taxable income during the carry forward periods are reduced. |
Other income (expense), net
Other income (expense), net | 12 Months Ended |
Dec. 31, 2018 | |
Other Income and Expenses [Abstract] | |
Other Income and Other Expense Disclosure [Text Block] | 14. Other income (expense), net Other income (expense) consisted of the following: For the years ended December 31, 2016 2017 2018 Gains on disposal of available-for-sale securities $ 18,088,327 $ 11,845,796 $ 960 Gain on disposal of held-for-sale assets and subsidiaries (Refer to Note 5) — — 32,503,096 Other (417,304 ) (206,953 ) 60,272 $ 17,671,023 $ 11,638,843 $ 32,564,328 From January 2016, the Company started to sell its shares in Yimeng. In 2016, the Company sold 8.0 million shares, for cash consideration of RMB 126.0 million, and recognized a gain of $18.1 million in other income. In 2017, the Company sold 4.6 million shares, for cash consideration of RMB 64.3 million, and recognized a gain of $9.1 million and a $2.7 million dividend in other income. |
Earnings (loss) per share
Earnings (loss) per share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 15. Earnings (loss) per share The computation of basic and diluted earnings (loss) per ordinary share from operations for the years ended December 31 , 2016, 2017 and 2018 was as follows: For the years ended December 31, 2016 2017 2018 Numerator: Net income attributable to Acorn International, Inc. from operations—basic and diluted $ 3,438,370 $ 12,384,303 31,127,184 —Continuing operations 10,347,437 15,858,809 32,364,168 —Discontinued operations (6,909,067 ) (3,474,506 ) (1,236,984 ) Denominator: Weighted average ordinary shares outstanding—basic and diluted 75,600,700 65,836,869 52,546,325 Income (Loss) per ordinary share: Basic and diluted $ 0.05 $ 0.19 $ 0.60 —Continuing operations 0.14 0.24 0.62 —Discontinued operations (0.09 ) (0.05 ) (0.02 ) The Company did not have outstanding stock options, SARs and RSUs outstanding in 2016, 2017 and 2018. On December 8, 2017, the Board approved a new share buyback plan (the “New Plan”) on the following terms: (i) the Company may repurchase up to US$2 million worth of ADSs for a per ADS purchase price not exceeding US$22.00, with a daily limit not to exceed the 10b-18 daily max, until the earlier of (i) December 31, 2018; and (ii) the date the aggregate repurchases under the New Plan reach a total of US$2 million worth of ADSs. The New Plan has terminated on November 1, 2018 when the aggregate repurchases thereunder reached a total of US$2 million worth of ADSs. Under the New Plan, the Company had repurchased an aggregate of 100,342 ADSs, representing 2,006,840 underlying ordinary shares, on the open market for total cash consideration of approximately $2 million. The repurchased ADSs are currently held by China DRTV as treasury stock. |
Mainland China contribution pla
Mainland China contribution plan and profit appropriation | 12 Months Ended |
Dec. 31, 2018 | |
Mainland China Contribution Plan and Profit Appropriation [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 16. Mainland China contribution plan and profit appropriation Employees of the Company 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 Company 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 Company were $558,385, $418,045 and $400,219 for the years ended December 31, 2016, 2017 and 2018, respectively. In addition, the Company 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 Company were $659,855, $443,305 and $419,750 for the years ended December 31, 2016, 2017 and 2018, respectively. In accordance with relevant PRC Company Law and regulations and the Company’s Articles of Association, the Company’s PRC subsidiaries were required to appropriate 10% of their respective profit after taxation reported in their statutory financial statements prepared under the Accounting Standards for Business Enterprises (“PRC GAAP”) to the statutory surplus reserve. The Company has a statutory reserve balance of $8,350,141 and $8,350,141 as of December 31, 2017 and 2018, respectively. The appropriation of statutory surplus reserve will cease upon the balance of the statutory surplus reserve reaching 50% of the Company’s PRC subsidiaries’ registered capital. The statutory surplus reserves may be used to make up losses or for conversion into the shareholders’ equity. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 17. Commitments and contingencies (A) Leases commitments The Company leases certain office premises and buildings under non-cancelable leases. Rental expenses under operating leases for 2016, 2017 and 2018 were $619,262, $585,375, and $672,601, respectively. As of December 31, 2018, future minimum lease payments under non-cancelable operating leases agreements were as follows: 2019 $ 709,029 2020 715,253 2021 647,190 $ 2,071,472 (B) Legal matters The Company is a party to legal matters and claims that are normal in the course of its operations. While the Company 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 Company. |
Segment and geographic informat
Segment and geographic information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 18. Segment and geographic information The Company’s two primary sales platforms are direct sales and a nationwide distribution network. Direct sales platforms include an outbound marketing platform (which until early 2015 included TV direct sales) and an Internet sales platform. The Company’s chief operating decision maker has been identified as the chairman of the Board of Directors and the CEO. The Company uses the management approach to determine operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision makers for making decisions, allocating resources and assessing performance. Based on this assessment, the Company has determined that it has two operating and reportable segments, which are direct sales and distribution sales. The Company’s chief operating decision maker evaluates segment performance based on revenues, cost of revenues and gross profit. Accordingly, all other 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 Company’s chief decision maker does not assign assets to these segments. The Company’s revenues are all generated from direct sales platform and nationwide distribution networks in the PRC. Segment and geographic information below has been adjusted by excluding discontinued operations, which is disclosed in Note 21. The revenues by each Company of similar products are as follows: For the years ended December 31, Product 2016 2017 2018 Health products $ 11,776,863 $ 17,032,191 $ 24,853,660 Collectible products 1,573,757 1,534,151 1,739,317 Mobile phones 1,722,626 1,117,158 779,428 Kitchen and household 397,722 223,497 134,588 Fitness products 217,226 25,085 34,355 Cosmetics products 103,330 14,192 65,414 Seafood products — — 432,756 Auto products 1,026 9,532 169 Consumer electronics products 41,437 — 1,853 Other products 697,883 584,772 769,334 Total gross revenues $ 16,531,870 $ 20,540,578 28,810,874 Less: sales taxes (53,415 ) (250,291 ) (365,849 ) Total revenues, net $ 16,478,455 $ 20,290,287 $ 28,445,025 The gross profit by segments is as follows: Year ended December 31, 2016 Direct sales Distribution sales Total Revenue, net $ 13,361,915 $ 3,116,540 $ 16,478,455 Cost of revenue (2,352,556 ) (2,877,620 ) (5,230,176 ) Gross profit $ 11,009,359 $ 238,920 $ 11,248,279 Year ended December 31, 2017 Direct sales Distribution sales Total Revenue, net $ 18,942,436 $ 1,347,851 $ 20,290,287 Cost of revenue (5,244,490 ) (827,495 ) (6,071,985 ) Gross profit $ 13,697,946 $ 520,356 $ 14,218,302 Year ended December 31, 2018 Direct sales Distribution sales Total Revenue, net $ 23,644,697 $ 4,800,328 $ 28,445,025 Cost of revenue (6,648,933 ) (1,559,922 ) (8,208,855 ) Gross profit $ 16,995,764 $ 3,240,406 $ 20,236,170 Geographic information The Company operates in the PRC and all of the Company’s long-lived assets are located in the PRC. In 2016, 2017, no customer accounted for 10% or more of the Company’s net revenues. 11.7 |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 19. Related party transactions In 2017 and 2018, the Company entered into a series of business arrangements with certain entities in which Mr. Roche owns substantial equity interests. The table below sets forth major related parties and their relationships with the Company: Company Name Relationship with the Company Dreamstart (Hong Kong) Ltd., (“Dreamstart”) Affiliate of Mr. Roche IS Seafood Affiliate of Mr. Roche Ryecor China Investment Limited (“Ryecor”) Affiliate of Mr. Roche Acorn Composite Corporation (“Acorn Composite”) Affiliate of Mr. Roche Lu&co Consultancy Co., Ltd. (“Lu&co”) Affiliate of VP of the Company Dragon Law Limited (“Dragon Law”) Affiliate of CEO of the Company URBN Hotels & Resorts (“URBN Hotels”) Affiliate of Mr. Roche Jia He Hotel Affiliate of Mr. Roche Cachet Hotel Group (“Cachet Hotel”) Affiliate of Mr. Roche Details of the transactions for the years ended December 31, 2016, 2017 and 2018 were as follows: For the years ended December 31, 2016 2017 2018 Purchase of goods and services Dreamstart $ 454,845 $ — $ — Lu&co $ 10,675 $ — $ — Acorn Composite $ 924,757 $ — $ — IS Seafood $ 22,810 $ 2,656 $ 495,276 Dragon Law $ 2,785 $ — $ — Sale of goods URBN Hotels $ 2,820 $ 3,949 $ 2,577 Jia He Hotel $ 2,513 $ 4,874 $ 7,937 Cachet Hotel $ 1,307 $ 619 $ — In 2016, the Company paid $454,845 to Dreamstart for the use of the call center management system. During 2016, 2017 and 2018, the Company made $2,820, $3,949 and $2,577 respectively sales to URBN hotels, made $2,513, $4,874 and $7,937 respectively sales to Jia He Hotel and made $1,307, $619 and nil respectively sales to Cachet Hotel for hotel uniforms. Lu&co, a company wholly owned by Ms. Jan Jie Lu, Business Operation Vice President of the Company, entered into a consultancy agreement with the Company on September 1, 2015, prior to Ms. Lu joining the Company. Under the agreement, the Company should pay Lu&co consultancy fees of RMB15,000 per month for a term of 12 months. The agreement remained in effective after Ms. Lu became an employee of the Company. In 2016, the Company paid $10,675 to Lu&co. The agreement was terminated in 2017. During 2016, 2017 and 2018, the Company purchased Iceland sourced seafood such as cod, lobster, halibut and scampi from IS Seafood amounting to $22,810, $2,656 and $495,276, respectively, to sell to consumers via the Internet. Mr. Roche has incurred certain costs amounting to $924,757 on behalf and for the benefit of the Company for the purpose of securing the commercial and business interests of the Company during 2015 when Mr. Roche and Mr. Don Dongjie Yang (Ex-CEO), as well as various other shareholders, were involved in an ongoing dispute with each other for control of the Company’s strategic direction and the Company’s board of directors. The nature of the costs included the payroll and travelling expenses. Upon settlement of the dispute, the Company’s board of directors approved to reimburse these costs and the Company accrued the liability due to Mr. Roche. The Company paid the amount in full in 2016. As of December 31, 2017 and 2018, the balance due from and due to related parties were as follows: December 31, 2017 2018 Account receivables-Jia He Hotel $ — $ 5,560 Account receivables-URBN Hotel $ — $ 2,605 Other receivables - Mr. Roche $ 13,862 $ 40,196 Other receivables - IS Seafood $ 6,042 $ — Loan receivables - Cachet Hotel $ 3,628,415 $ 10,050,054 Advance to suppliers - IS Seafood $ — $ 596,575 As of December 31, 2018, the Company has made an advance of $596,575 to IS Seafood for purchases of Iceland sourced seafood such as cod, lobster, halibut and scampi, to sell to consumers via the Internet. In November 2017, the Company entered into a Strategic Cooperation Framework Agreement (the “Framework Agreement”) with Cachet Hotel, which is part of the Roche Enterprises Limited of companies. Roche Enterprises Limited is owned by Mr. Roche and Mr. Roche is also the Executive Chairman and the majority shareholder of Cachet. The Framework Agreement was personally guaranteed by Mr. Roche. Under the Strategic Framework Agreement, Acorn will become Cachet Hotel’s preferred supplier for sourcing of all amenities, textiles, other hotel goods as well as various furniture, fixtures and equipment for the hotels, restaurants, clubs and other types of properties managed by Cachet, subject to Acorn’s ability to procure the products satisfying Cachet’s requirements on commercially reasonable terms. Best efforts will be used to ensure that the owners of these properties purchase their products from Acorn. The Framework Agreement also provides a credit facility for the Company to loan to Cachet up to $10.0 million at an interest rate of 8% per annum for amounts borrowed in USD and 10% for amounts borrowed in RMB, with each drawdown subject to the Company’s consent in its sole and absolute discretion. The facility has a three-year term with two one-year renewal options. As of December 31, 2017 and 2018, the Company provided loan advances of $3.6 million and $10.0 million, . In September 2015, the Company entered into an assignment with Ryecor, pursuant to which Ryecor assigned to the Company all of its rights on the loan agreement with E-surer signed in October 2014, and delegated to the Company all of its obligation in exchange of a cash payment of $ 3,024,933 |
Restricted net assets
Restricted net assets | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Restricted Assets Disclosure [Text Block] | 20. Restricted net assets Relevant PRC laws and regulations permit payments of dividends by the Company’s PRC subsidiaries only out of their retained earnings, if any, as determined in accordance with PRC accounting standards. As a result of these PRC laws and regulations, the Company’s PRC subsidiaries are restricted in their ability to transfer a portion of their net assets either in the form of dividends, loans or advances, which restricted portion amounted to $7,409,535 as of December 31, 2018. This amount is comprised of the registered equity of the Company’s PRC subsidiaries and the statutory reserves. In addition, as a result of the Company’s restructuring effective January 1, 2005, retained earnings of $20,336,734 related to the pre-restructuring companies was unavailable for distribution as a normal dividend to Acorn International in accordance with relevant PRC laws and regulations, unless and until the PRC subsidiaries are dissolved and the net assets are returned to the investors. |
Discontinued operation of HJX b
Discontinued operation of HJX business | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 21. Discontinued operation of HJX business In June 2017, the Company reached an agreement to sell a majority interest in its HJX business to a third-party investor and operator. Specifically, the agreement includes the establishment of a joint venture that will be controlled and operated by such third party, and the Company will hold 37.5% equity interest in this joint venture. The Company’s management concluded that HJX business related assets met the standard and should be reclassified as Held for Sale in the consolidated balance sheet as of December 31, 2017. The following tables present the aggregate carrying amounts of assets classified as held for sale in the consolidated balance sheet: December 31, 2017 2018 Carrying amount of assets held for sale: Intangible assets, net- trademark $ 353,691 $ 353,691 Intangible assets, net- distribution network — — Prepaid expense-copyright 122,245 116,385 Total assets held for sale $ 475,936 $ 470,076 The results of operations associated with discontinued operations are presented in the following table: For the years ended December 31, 2016 2017 2018 Net revenues: Direct sales $ 471,293 $ 195,589 $ 639 Distribution sales 7,578,128 1,771,829 55,807 Total net revenues 8,049,421 1,967,418 56,446 Cost of revenues: Direct sales (375,834 ) (185,664 ) (3,939 ) Distribution sales (6,366,283 ) (2,187,001 ) (326,097 ) Total cost of revenues (6,742,117 ) (2,372,665 ) (330,036 ) Gross profit (loss) 1,307,304 (405,247 ) (273,590 ) Operating expenses: Other selling and marketing expenses (5,932,307 ) (1,922,342 ) (189,269 ) General and administrative expenses (2,284,064 ) (1,146,917 ) (774,125 ) Total operating expenses (8,216,371 ) (3,069,259 ) (963,394 ) Income from discontinued operations before income taxes $ (6,909,067 ) $ (3,474,506 ) (1,236,984 ) Income tax expense — — — Income from discontinued operations $ (6,909,067 ) $ (3,474,506 ) $ (1,236,984 ) Under the agreement, the Company agreed to sell the HJX Business at the price of RMB6.0 million ($918,246). The joint venture was set up in January 2018. During 2018, the Company recorded $324,900 as equity in losses of affiliates as a result of the minority stake in this joint venture. |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 22. Subsequent events As of April 30, 2019, Acorn has received the full amount of RMB46 million for the sale of its prior principal office (Refer to Note 5). The ownership transfer was completed on March 28, 2019. The Company has evaluated subsequent events through the date of these consolidated financial statements and is not aware of any other significant subsequent events that would require recognition or disclosure. |
ADDITIONAL INFORMATION-FINANCIA
ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE I | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | ADDITIONAL INFORMATION—FINANCIAL STATEMENT SCHEDULE I ACORN INTERNATIONAL, INC. These parent company financial statements have been prepared in conformity with accounting principles generally accepted in the United States. During 2018, the Company identified a prior period error in the presentation of the parent company financial statements. The error resulted in an overstatement of $8.5 million in total assets of the parent company as at December 31, 2017, and an understatement of $2.1 million and $4.5 million in net cash used in operating activities of the parent company for the years ended December 31, 2016 and 2017, respectively. Based on a qualitative and quantitative analysis of the error, the Company concluded that the impact of this error is immaterial to the parent company financial statements for the years ended December 31, 2016 and 2017. As such, the Company has corrected the presentation error in the parent company financial statements for the years ended December 31, 2016 and 2017. FINANCIAL INFORMATION OF PARENT COMPANY BALANCE SHEETS (In US dollars, except share data) December 31, 2017 2018 Assets Current assets: Cash and cash equivalents $ — $ 174,658 Total current assets — 174,658 Investments in subsidiaries and VIEs 86,988,609 71,669,176 Total assets $ 86,988,609 $ 75,698,274 Liabilities and equity Current liabilities: Dividend payable $ — $ 174,658 Total current liabilities — 174,658 Total liabilities — 174,658 Equity: Ordinary shares ($0.01 par value; 100,000,000 shares authorized 91,884,402 and 91,884,402 shares issued and 53,602,810 and 51,619,218 shares outstanding as of December 31, 2017 and 2018, respectively) 918,844 918,844 Additional paid-in capital 161,962,671 121,962,651 Accumulated deficits (110,526,573 ) (79,399,389 ) Accumulated other comprehensive income 60,968,963 56,507,394 Treasury stock, at cost (38,281,592 and 40,265,184 shares as of December 31, 2017 and 2018, respectively) (26,335,296 ) (28,320,324 ) Total equity 86,988,609 71,669,176 Total liabilities and equity $ 86,988,609 $ 75,698,274 FINANCIAL INFORMATION OF PARENT COMPANY STATEMENTS OF OPERATIONS (In US dollars) For the years ended December 31, 2016 2017 2018 Income from operations $ — $ — $ — Income before income taxes — — — Income taxes — — — Equity in gains of subsidiaries and VIEs 3,438,370 12,384,303 31,127,184 Net income of Acorn International, Inc. $ 3,438,370 $ 12,384,303 $ 31,127,184 FINANCIAL INFORMATION OF PARENT COMPANY STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (In US dollars, except share data) For the years ended December 31, 2016 2017 2018 Net income $ 3,438,370 $ 12,384,303 $ 31,127,184 Other comprehensive income, net of tax Net unrealized losses of available-for-sales securities in the subsidiaries, net of tax of $ (10,490,287) and $ (1,163,160) in 2017 and 2018, respectively. (53,999,944 ) (34,823,436 ) (3,489,480 ) Foreign currency translation adjustments (27,715,195 ) 14,927,138 (972,089 ) Comprehensive Income (loss) of Acorn International, Inc. $ (78,276,769 ) $ (7,511,995 ) $ 26,665,615 FINANCIAL INFORMATION OF PARENT COMPANY STATEMENTS OF CASH FLOWS (In US dollars) For the years ended December 31, 2016 2017 2018 Operating activities: Net income of Acorn International, Inc. $ 3,438,370 $ 12,384,303 $ 31,127,184 Equity in gains of subsidiaries and VIEs (3,438,370 ) (12,384,303 ) (31,127,184 ) Net cash provided by operating activities $ — $ — $ — Investing activities: Dividend received — — 40,000,020 Net cash provided by investing activities $ — $ — $ 40,000,020 Financing activities: Dividend paid — — (39,825,362 ) Net cash used in financing activities $ — $ — $ (39,825,362 ) Net increase in cash and cash equivalents $ — $ — $ 174,658 Cash and cash equivalents at the beginning of the year — — — Cash and cash equivalents at the end of the year $ — $ — $ 174,658 FINANCIAL INFORMATION OF PARENT COMPANY 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 percent of consolidated net assets as of the end of the most recently completed fiscal year. 2) As disclosed in Note 1 to the consolidated financial statements, the Company was incorporated in the British Virgin Islands (“BVI”) on March 4, 2004 to be the holding company of the Company. The Company is an integrated multi-platform marketing company in China which develops, promotes and sells products. The Company’s two primary sales platforms are 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. 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 VIEs. For the parent company, the Company records its investments in subsidiaries and VIEs 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 VIEs” and the subsidiaries and VIEs’ profit or loss as “Equity in income/loss of subsidiaries” on the Condensed Statements of Comprehensive Loss. Ordinarily under the equity method, 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 VIEs 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, 2017 and 2018, there were no material contingencies, significant provisions of long-term obligations, mandatory dividend or redemption requirements of redeemable stocks or guarantees of the Company. $5,400,000, nil and $2,455,675 dividend was paid by the Company's subsidiaries to the Company in 2016, 2017 and 2018. |
ADDITIONAL INFORMATION-FINANC_2
ADDITIONAL INFORMATION-FINANCIAL STATEMENT SCHEDULE II | 12 Months Ended |
Dec. 31, 2018 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | ADDITIONAL INFORMATION—FINANCIAL STATEMENT SCHEDULE II ACORN INTERNATIONAL, INC. VALUATION AND QUALIFYING ACCOUNTS Description Balance at Beginning of Year Charged to/ (Reversed from) Costs and Expenses Write-off Balance at End of Year Allowance for accounts receivable -2018 $ 3,978,604 45,059 — 4,023,663 -2017 $ 3,702,514 $ 276,090 $ — $ 3,978,604 -2016 $ 5,398,166 $ (18,096 ) $ (1,677,556 ) $ 3,702,514 Allowance for prepaid advertising expenses -2018 $ 897,397 (578,979 ) — 318,418 -2017 $ 1,036,904 $ (139,507 ) $ — $ 897,397 -2016 $ 1,107,706 $ — $ (70,802 ) $ 1,036,904 Allowance for prepaid expenses and current assets -2018 $ 310,117 327,213 — 637,330 -2017 $ 436,348 $ (126,231 ) $ — $ 310,117 -2016 $ 605,445 $ (169,097 ) $ — $ 436,348 Allowance for deferred tax assets -2018 $ 22,932,999 (14,769,183 ) — 8,163,816 -2017 $ 33,012,389 $ (10,079,390 ) $ — $ 22,932,999 -2016 $ 35,657,594 $ (2,645,205 ) $ — $ 33,012,389 |
Summary of principal accounti_2
Summary of principal accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | (a) Basis of presentation The consolidated financial statements of the Company 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 subsidiaries and consolidated VIEs. All intercompany transactions and balances are eliminated upon consolidation. Net income or loss of a subsidiary is attributed to the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance. Non-controlling interests in subsidiaries are presented separately from the Company’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 Company 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 Company’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] | (d) Going concern Although the Company incurred a negative cash flows from operations for the year ended December 31, 2018 and had accumulated deficits as of that date, the Company improved its liquidity position by selling non-core assets and investments. Furthermore, the Company continually focused on reducing operating costs, including at the Company management level by reducing headcount, changing to lower cost vendors and reducing travel expenses. As a result, the accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | (e) Fair value of financial instruments 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 1—Observable unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2—Observable 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 3—Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. When available, the Company 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 Company 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 Company 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 Company 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 Company’s evaluation of those factors change. Although the Company 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 Company’s consolidated assets, liabilities, equity and net income or loss. The Company’s financial instruments consist of cash and cash equivalents, restricted cash, accounts receivable, convertible loan receivable, loan to related party, available-for-sale securities and accounts payable. For cash and cash equivalents, restricted cash, accounts receivable, and accounts payable, the carrying amounts of these financial instruments as of December 31, 2017 and 2018 were considered representative of their fair values due to their short-term nature. The carrying values of convertible loan receivable and loan to related party approximate their fair values as the impact of discounting the convertible loan receivable and loan to related party with a market based interest rate is insignificant. The marketable securities are carried at fair values based on an independent valuation report. |
Cash and Cash Equivalents, Policy [Policy Text Block] | (f) Cash and cash equivalents Cash and cash equivalents consist of cash on hand and highly liquid investments which are unrestricted as to withdrawal or use, and which have maturities of three months or less when purchased. Cash balances of the Company that are included in the cash and cash equivalents of the consolidated balance sheets, including those denominated in RMB. 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 Company 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 Company complies with all entioned below as required. 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 Company’s aggregate amount of cash and cash equivalents and restricted cash denominated in RMB amounted to RMB 123,510,697 ($18,902,191) and RMB 120,159,160 ($17,507,746) as of December 31, 2017 and 2018, respectively. PRC state-owned banks, such as Bank of China, are subject to a series of risk control regulatory standards, and PRC bank regulatory authorities are empowered to take over the operation and management when any of those banks faces a material credit crisis. The Company does not foresee substantial credit risk with respect to cash and cash equivalents, restricted cash and short-term investments held at the PRC state-owned banks. Meanwhile, China does not have an official deposit insurance program, nor does it have an agency similar to the Federal Deposit Insurance Corporation (FDIC) in the U.S. In the event of bankruptcy of one of the financial institutions in which the Company has deposits or investments, it may be unlikely to claim its deposits or investments back in full. The Company selected reputable international financial institutions with high rating rates to place its foreign currencies. The Company regularly monitors the rating of the international financial institutions to avoid any potential defaults. There has been no recent history of default in relation to these financial institutions. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | (g) Restricted cash Under third-party bank channel sales arrangements, the Company is required to maintain certain cash balances in the banks. Such balances are classified as restricted cash in the balance sheet and amounted to $78,051 and $76,243 as of December 31, 2017 and 2018, respectively. |
Inventory, Policy [Policy Text Block] | (h) Inventory, net 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 Company estimates excess and slow-moving inventory based upon assumptions of future demand and market conditions. If actual market conditions are less favorable than projected by management, additional inventory write-downs may be required. |
Marketable Securities, Policy [Policy Text Block] | (i) Available for sale securities The Company 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 Company 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 are reported at fair value with unrealized gains or losses, if any, recorded in accumulated other comprehensive income in shareholders' equity. If the Company 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 operations and comprehensive income (loss). The new cost basis of the investments would not be adjusted for subsequent recoveries in fair values. The Company recorded no impairments of available-for-sale securities for the years ended December 31, 2016, 2017 and 2018. |
Property, Plant and Equipment, Policy [Policy Text Block] | (j) Property and equipment, net Property and equipment are carried at cost less accumulated depreciation. Depreciation is calculated on a straight-line method over the following estimated useful lives: Estimated useful lives Buildings 20 years Machinery 10 years Information technology equipment 5 years Computers and office equipment 3-5 years Vehicles 3-4 years |
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | (k) 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 to 15 years. |
Long Lived Assets, Held For Sale [Policy Text Block] | (l) 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. 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 Company classified certain real estate properties of $3,808,471 as held-for-sale at the time management committed to a plan to sell these properties to third parties. The Company entered into sale agreements for total cash consideration of approximately $11.3 million. The sales were subsequently completed in early 2016. During 2017, the Company classified HJX product related assets, intangible assets and prepaid copyright expense, of $475,936 as held-for-sale as the Company reached an agreement in June 2017 to sell a majority stake in its HJX related business to a third-party investor and operator. Specifically, the agreement includes the establishment of a joint venture that will be controlled and operated by such third party. During 2017, the Company also classified land use rights and related building with carrying amount $16,546,694 as held-for-sale at the time management committed to a plan to sell the shares of Bright Rainbow to a third-party. Bright Rainbow owns the entire share capital of Shanghai HJX, which owns the land use rights to the land plot located in the Qingpu district of Shanghai and all the buildings, fixtures and related facilities. The sale was subsequently completed in early 2018. During 2018, the Company classified buildings with carrying amount $2,411,294 as held-for-sale as the Company reached an agreement on December 10, 2018 to sell its prior principal office to a third-party. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | (m) Impairment of long-lived assets The Company 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 Company 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 Company 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] | (n) Investment in affiliates Affiliated companies are entities which the Company owes equity interest in common stock or in-substance common stock. The affiliated companies are classified by the companies in which the Company has significant influence or non-significant influence. The Company generally considers an ownership interest of 20% or higher to represent significant influence. The affiliated companies in which the Company has non-significant influence are accounted for using the cost method of accounting. Dividends received that are distributed from the net accumulated earnings of the investee are recognized in the Company’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 is recognized. Affiliated companies in which the Company has significant influence are accounted for using equity method of accounting. The share of earnings or losses of the investee are recognized in the Company’s consolidated statements of operations and adjusts the carrying amount of the investment. Dividends received reduce the carrying amount of the investment. The Company 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 Company 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] | (o) Convertible loan receivable The convertible loan receivable in the consolidated balance sheets as of December 31, 2017 and 2018 represents a loan receivable (the “Note”) from a third party (the “Borrower”), net of provision for credit losses, if any. Interest income derived from the loan is recognized as earned. The Company has the option to convert, all or any part of the outstanding principal and unpaid accrued interest in a single tranche 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. The Company has evaluated the conversion feature and believes it is not considered an embedded derivative instrument subject to bifurcation as the conversion option does not provide the Company with means to net settle the contracts in accordance with ASC 815, Accounting for Derivative Instruments and Hedging Activities . At each balance sheet date, amounts due under the Note are assessed for purposes of determining the appropriate provision for credit losses. In order to estimate the allowance for credit losses, the Company assesses at each period end the ability of the Borrower to meet its obligations under the loan agreement by taking into consideration existing economic conditions, the current financial condition of the Borrower and historical losses, if any, and any other risks/factors that may affect its future financial condition and its ability to meet its obligations. The Note was personally guaranteed by Mr. Robert W. Roche (“Mr. Roche”), Acorn International’s co-founder and current executive chairman. Mr. Roche unconditionally and irrevocably guarantees to Acorn the due and prompt payment by the Borrower of any unpaid principal and interest. See Note 9. |
Revenue Recognition, Policy [Policy Text Block] | (p) Revenue recognition On January 1, 2018, the Company adopted ASU 2014-09 on revenue from contracts with customers using the modified retrospective method. The adoption did not have a material impact on the Company’s consolidated financial statements. The Company recognizes revenue on product sales in the period in which the Company satisfies its performance obligation and control of the product is transferred to the customer. Direct sales The Company’s direct sales revenues consist primarily of product sales through its outbound marketing platforms and Internet sales platforms. The Company’s sales arrangements with customers are predominately short term in nature and generally provide for transfer of control at the time when the products are delivered to and accepted by the customers (e.g. “F.O.B. Destination”) as this is the point at which title and risk of loss of the product transfers to the customer. At the end of each period, the Company adjusts revenues and cost of sales for the unsuccessful product deliveries, data of which was provided by the delivery companies the Company relies on. The amount of revenue recorded reflects the consideration to which the Company expects to be entitled in exchange for goods. Distribution sales The Company’s distribution sales consist of product sales to distributors across the country. The Company’s sales arrangements with distributors are predominately short term in nature and generally provide for transfer of control at the time when the products are delivered to and accepted by the distributors (e.g. “F.O.B. Destination”) as this is the point at which title and risk of loss of the product transfers to the distributors. The amount of revenue recorded reflects the consideration to which the Company expects to be entitled in exchange for goods and may include adjustments for customer allowance and rebates. The distributor agreements do not provide discounts, chargebacks, price protection or stock rotation rights. Revenue and billing The Company generally accepts orders from customers through receipt of orders from e-commerce platforms, purchase orders and purchasing contracts. The pricing and selling terms are based on market factors, costs, and competition. The customer through e-commerce platforms are billed at the time they put the order, while the distributors are billed when the Company’s products are delivered to and accepted by them in accordance with the terms of the sales agreement. As the Company’s standard payment terms are less than one year, the Company has elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component. The Company also elected the practical expedient provided in ASC 606-10-25-18B to treat all product shipping and handling activities as fulfillment activities, and therefore recognize the gross revenue associated with the contract, inclusive of any shipping and handling revenue. This approach is similar to the Company’s prior practice and therefore the effect of the new guidance is immaterial. Inventory returns Generally, the customers may return products to the Company within thirty days after delivery if there is a quality defect or if a product fails to meet its specifications, subject to shorter periods provided in policies of the platforms on which the goods are sold. The Company’s warranties generally provide for repair of product defects within one year following the purchase date at the Company’s cost. To the extent that the manufacturer of the defective product is a third party, the manufacturer is contractually obligated to either repair the defective product or reimburse the Company for any related expenses. The distributors are allowed to return any defective products they receive from the Company. The Company establishes an estimated allowance for these returns based on past experience. Sales revenue and cost of sales are presented net of anticipate estimated returns. Sales taxes The Company presents revenues net of sales taxes incurred. Sales taxes amounted to $53,415, $250,291 and $365,849 for the years ended December 31, 2016, 2017 and 2018, respectively. Before subtracting sales taxes, gross direct sales revenues were $13,406,943, $19,135,633 and $23,883,508 and gross distribution sales revenues were $3,124,927, $1,404,945 and $4,927,366 for the years ended December 31, 2016, 2017 and 2018, respectively. |
Advertising Costs, Policy [Policy Text Block] | (q) Advertising expenses The Company records cash advances paid to advertising companies as prepaid advertising expenses and then expenses the prepaid advertising expenses at the time of the first advertisement is shown. Advertising expenses were $23,701, nil and nil for the years ended December 31, 2016, 2017 and 2018, respectively. |
Shipping Costs Policy [Policy Text Block] | (r) Shipping and handling costs The Company 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 $1,158,019, $982,175 and $645,976 for the years ended December 31, 2016, 2017 and 2018, respectively. |
Lessee, Leases [Policy Text Block] | (s) 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] | (t) Government subsidies The Company 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 Company, including value-added and income taxes. The Company records unrestricted government subsidies as other operating income in the consolidated statements of operations when these subsidies from the government agencies are received. The government subsidies in 2016, 2017 and 2018 were $66,648, nil and $53,965, respectively. |
Income Tax, Policy [Policy Text Block] | (u) 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 Company 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 Company classifies interests and penalties related to income tax matters in income tax expense. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | (v) Foreign currency translation The functional currency and reporting currency of Acorn International, China DRTV, Smooth Profit, MK AND T, and Bright Rainbow are the 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 Company’s PRC subsidiaries and VIEs are denominated in 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 (loss) in the consolidated statements of comprehensive income (loss). The aggregated losses through foreign currency transactions in 2016, 2017 and 2018 were $(380,350), $(241,771) and $(126,582), respectively. |
Concentration Risk Credit Risk [Policy Text Block] | (w) Concentration of credit risk Financial instruments that potentially expose the Company to concentration of credit risk consist primarily of cash and cash equivalents, restricted cash, accounts receivable and convertible loans. All of the Company’s cash and cash equivalents and restricted cash are held with large PRC state-owned financial institutions. The Company engages delivery companies, mainly EMS, to deliver products to customers and to collect cash from the customers using direct sales platforms. The Company conducts credit evaluations of delivery companies and generally does not require collateral or other security from its delivery companies. The Company establishes an allowance for doubtful accounts primarily based on the age of the receivables and factors surrounding the credit risk of specific customers. The Company evaluated its credit risk with the convertible loan and loan to related party by performing ongoing evaluation on the borrower’s financial condition. The loan agreements have a personal guarantee from Mr. Roche, and is pledged with the equity of the borrower. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | (x) Share-based compensation Share-based compensation cost is measured at grant date, based on fair value of the award, and recognized in expense over the requisite service period. For performance-based awards, the Company uses graded vesting when the performance condition is considered probable. The Company has made an estimate of expected forfeitures and recognizes compensation costs only for those equity awards expected to vest. |
Earnings Per Share, Policy [Policy Text Block] | (y) Income (loss) per share Basic income (loss) per share is computed by dividing income attributable to the Company’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. |
Non-controlling Interest [Policy Text Block] | (z) Non-controlling interest A non-controlling interest in a subsidiary of the Company represents the portion of the equity (net assets) in the subsidiary not directly or indirectly attributable to the Company. Non-controlling interests are presented as a separate component of equity in the consolidated balance sheet and earnings and other comprehensive income (loss) are attributed to controlling and non-controlling interests. |
New Accounting Pronouncements, Policy [Policy Text Block] | (aa) Recently issued accounting pronouncements ASU 2014-09 - Revenue from Contracts with Customers (“ASU 2014-09”). In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09 that will be applied to all contracts with customers. ASU 2014-09 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 is 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. ASU 2016-01 - Financial Instruments. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), requires that most equity investments be measured at fair value, with subsequent changes in fair value recognized in net income. ASU 2016-01 also affects 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 evaluated the effect of ASU 2016-01 on its financial statements and concluded that adoption did not have a material impact on its consolidated financial statements. The Company adopted this new guidance on January 1, 2018. ASU 2016-02 - Leases. In February 2016, the FASB issued ASU 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. While the Company is continuing to assess the potential impacts of ASU 2016-02, the Company estimates that the adoption of ASU 2016-02 will result in the recognition of right-of-use assets of approximately $2 million and related lease liabilities for operating leases on its consolidated balance sheets, with no material impact to its consolidated statements of operations. ASU 2016-13 - 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. ASU 2016-15 - Statement of Cash Flows. In August 2016, the FASB issued ASU 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 evaluated the effect of ASU 2016-15 and concluded that adoption did not have a material impact on its consolidated financial statements. The Company adopted this new guidance on January 1, 2018. ASU 2016-16 - Income Taxes. In October 2016, the FASB issued ASU 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 evaluated the effect of ASU 2016-16 and concluded that adoption did not have a material impact on its consolidated financial statements. The Company adopted this new guidance on January 1, 2018. ASU 2016-18 - Restricted Cash. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows-Restricted Cash (a consensus of the FASB Emerging Issues Task Force), which is effective for fiscal years beginning after December 15, 2017, and interim periods within that fiscal year. The standard addresses whether restricted cash and cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2018-02 - Tax Effects from Accumulated Other Comprehensive Income. In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which is effective for the annual report period beginning after the December 15, 2018 including the interim reporting period within that period. This update allows companies to reclassify from Accumulated Other Comprehensive Income to Retained Earnings standard tax effects resulting from the enactment of the Tax Cuts and Jobs Act (the "Tax Act"). |
Organization and principal ac_2
Organization and principal activities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Schedule of Variable Interest Entities [Table Text Block] | As of December 31, 2018, the consolidated subsidiaries of Acorn International were as follows: Name of subsidiaries Percentage of ownership Date of registration Place of registration China DRTV, Inc. (“China DRTV”) 100 % March 4, 2004 BVI Smooth Profit Limited (“Smooth Profit”) 100 % September 18, 2007 BVI MK AND T Communications Limited (“MK AND T”) 100 % October 27, 1998 Hong Kong Shanghai Acorn Advertising Broadcasting Co., Ltd. (“Shanghai Advertising”) 100 % August 19, 2004 PRC Acorn International Electronic Technology (Shanghai) Co., Ltd. (“Acorn Electronic”) 100 % August 23, 2004 PRC Acorn Information Technology (Shanghai) Co., Ltd. (“Acorn Information”) 100 % August 27, 2004 PRC Beijing Acorn Youngleda Oxygen Generating Co., Ltd. (“Beijing Youngleda”) 100 % October 20, 2004 PRC YiyangYukang Communication Equipment Co., Ltd. (“YiyangYukang”) 100 % November 29, 2005 PRC 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 PRC Beijing HJZX Software Technology Development Co., Ltd. (“Beijing HJZX”) 100 % January 22, 2007 PRC ZhongshanMeijin Digital Technology Co., Ltd. (“ZhongshanMeijin”) 75 % February 13, 2007 PRC Acorn Trade (Shanghai) Co., Ltd. (“Acorn Trade”) 100 % December 13, 2007 PRC Wuxi Acorn Enterprise Management Consulting Co., Ltd. (“Wuxi Acorn”) 100 % January 29, 2010 PRC Acorn Media Group Limited (“Acorn Media”) 100 % June 1, 2018 BVI |
Schedule Of Subsidiaries And Variable Interest Entities [Table Text Block] | Summary financial information of the Company’s three VIEs included in the accompanying consolidated financial statements is included on page F-4 and as follows: For the years ended December 31, 2016 2017 2018 Net revenues $ 12,251,518 $ 7,156,742 $ 4,928,261 Net loss $ (998,709 ) $ (579,948 ) $ (1,025,151 ) |
Variable Interest Entity, Primary Beneficiary [Member] | |
Schedule Of Subsidiaries And Variable Interest Entities [Table Text Block] | As of December 31, 2018, 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”) March 19, 1998 PRC Shanghai Acorn Network Technology Development Co., Ltd. (“Shanghai Network”) November 2, 2004 PRC Beijing HJX Technology Development Co., Ltd. (“Beijing HJX”) September 16, 2013 PRC |
Inventory, net (Tables)
Inventory, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventory consisted of the following: December 31, 2017 2018 Raw materials $ 129,970 $ 63,830 Finished goods and merchandise goods 1,386,313 1,630,419 $ 1,516,283 $ 1,694,249 |
Other prepaid expenses and cu_2
Other prepaid expenses and current assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2017 2018 Advances to suppliers $ 54,594 $ 307,774 Value-added tax recoverable 947,408 942,710 Deposits 361,747 416,609 Prepaid media expenses 1,135,043 809,389 Prepaid service fees 294,350 146,539 Receivable from third party for sale of non-core assets and subsidiaries (Refer to Note 5) — 2,443,404 Other prepaid expenses 1,237,670 2,275,790 $ 4,030,812 $ 7,342,215 |
Property and equipment, net (Ta
Property and equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment, net consisted of the following: December 31, 2017 2018 Buildings $ 4,764,519 $ — Computers and office equipment 4,498,081 4,198,086 Vehicles 344,788 294,712 Information technology equipment 263,007 250,400 Machinery 83,175 44,574 $ 9,953,570 $ 4,787,772 Less: accumulated depreciation (5,916,276 ) (3,771,265 ) $ 4,037,294 $ 1,016,507 |
Acquired intangible assets, n_2
Acquired intangible assets, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2017 2018 Distribution networks $ — $ — Trademarks 614,624 614,624 $ 614,624 $ 614,624 Less: accumulated amortization (614,624 ) (614,624 ) $ — $ — |
Accrued expenses and other cu_2
Accrued expenses and other current liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2017 2018 Other taxes payable $ 1,344,814 $ 506,465 Accrued employee payroll and welfare 1,685,492 1,734,528 Other payable 832,548 514,031 Accrued expenses 4,717,604 4,672,641 Advances from customers 63,298 19,421 Advances from third party for sale of non-core assets (Refer to Note 5) — 5,099,365 Provision for equity of losses in affiliates — 327,646 $ 8,643,756 $ 12,874,097 |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Share-based Compensation [Abstract] | |
Schedule of Nonvested Share Activity [Table Text Block] | A summary of the RSUs activity for the year ended December 31, 2016 was as follows: Number of RSUs Weighted average 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, 2018 | |
Disclosure Text Block [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | As of December 31, 2017 and 2018, information about inputs into the fair value measurements of the Company's assets and liabilities that are measured at fair value based on independent valuation report as described below. Fair Value Measurements at Reporting Date Using Description As of December 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Available-for-sale investments- marketable equity securities $ 38,858,216 — $ 38,858,216 — Fair Value Measurements at Reporting Date Using Description As of December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Available-for-sale investments- marketable equity securities $ 44,479,922 — $ 44,479,922 — |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The current and deferred portion of income tax benefit (expense) included in the consolidated statements of operations were as follows: For the years ended December 31, 2016 2017 2018 Current income tax expenses $ (4,169,360 ) $ 21,873 $ (3,584,898 ) Deferred income tax benefit (expense) (423,423 ) 7,842,672 397,477 Total income tax benefit (expense) $ (4,592,783 ) $ 7,864,545 $ (3,187,421 ) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Reconciliation between the effective income tax rate and the PRC statutory income tax rate was as follows: For the years ended December 31, 2016 2017 2018 PRC statutory tax rate 25 % 25 % 25 % Expenses not deductible (income not taxable) for tax purposes 4 % (1 )% 1 % Effect of different tax rate of subsidiary operations in other jurisdiction (15 )% 22 % (22 )% Change in valuation allowance 36 % (217 )% 6 % Utilization (recognition) of the unrecognized tax benefit 2 % (0 )% (0 )% Others — (3 )% (1 )% Effective tax rate 52 % (174 )% 9 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The principal components of the Company’s deferred income tax assets and liabilities as of December 31, 2017 and 2018 were as follows: December 31, 2017 2018 Deferred tax assets: Allowance and reserves for inventory and accounts receivable $ 1,648,979 $ 1,777,103 Accrued expenses 915,809 1,023,275 Revenue recognition difference 97,153 89,567 Advertising expenses 363,155 — Net operating losses 28,469,713 16,443,637 $ 31,494,809 $ 19,333,582 Less: valuation allowance (22,932,999 ) (10,825,754 ) $ 8,561,810 $ 8,507,828 Deferred tax liabilities: Unrealized gain on available-for-sale securities (10,514,800 ) (9,138,402 ) $ (10,514,800 ) $ (9,138,402 ) Total deferred tax liabilities, net $ (1,952,990 ) $ (630,574 ) |
Other income (expense), net (Ta
Other income (expense), net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating Income (Expense) [Table Text Block] | Other income (expense) consisted of the following: For the years ended December 31, 2016 2017 2018 Gains on disposal of available-for-sale securities $ 18,088,327 $ 11,845,796 $ 960 Gain on disposal of held-for-sale assets and subsidiaries (Refer to Note 5) — — 32,503,096 Other (417,304 ) (206,953 ) 60,272 $ 17,671,023 $ 11,638,843 $ 32,564,328 |
Earnings (loss) per share (Tabl
Earnings (loss) per share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The computation of basic and diluted earnings (loss) per ordinary share from operations for the years ended December 31 , 2016, 2017 and 2018 was as follows: For the years ended December 31, 2016 2017 2018 Numerator: Net income attributable to Acorn International, Inc. from operations—basic and diluted $ 3,438,370 $ 12,384,303 31,127,184 —Continuing operations 10,347,437 15,858,809 32,364,168 —Discontinued operations (6,909,067 ) (3,474,506 ) (1,236,984 ) Denominator: Weighted average ordinary shares outstanding—basic and diluted 75,600,700 65,836,869 52,546,325 Income (Loss) per ordinary share: Basic and diluted $ 0.05 $ 0.19 $ 0.60 —Continuing operations 0.14 0.24 0.62 —Discontinued operations (0.09 ) (0.05 ) (0.02 ) |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | As of December 31, 2018, future minimum lease payments under non-cancelable operating leases agreements were as follows: 2019 $ 709,029 2020 715,253 2021 647,190 $ 2,071,472 |
Segment and geographic inform_2
Segment and geographic information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule Of Revenue By Product Category [Table Text Block] | The revenues by each Company of similar products are as follows: For the years ended December 31, Product 2016 2017 2018 Health products $ 11,776,863 $ 17,032,191 $ 24,853,660 Collectible products 1,573,757 1,534,151 1,739,317 Mobile phones 1,722,626 1,117,158 779,428 Kitchen and household 397,722 223,497 134,588 Fitness products 217,226 25,085 34,355 Cosmetics products 103,330 14,192 65,414 Seafood products — — 432,756 Auto products 1,026 9,532 169 Consumer electronics products 41,437 — 1,853 Other products 697,883 584,772 769,334 Total gross revenues $ 16,531,870 $ 20,540,578 28,810,874 Less: sales taxes (53,415 ) (250,291 ) (365,849 ) Total revenues, net $ 16,478,455 $ 20,290,287 $ 28,445,025 |
Reconciliation Of Gross Profit From Segments To Consolidated [Table Text Block] | The gross profit by segments is as follows: Year ended December 31, 2016 Direct sales Distribution sales Total Revenue, net $ 13,361,915 $ 3,116,540 $ 16,478,455 Cost of revenue (2,352,556 ) (2,877,620 ) (5,230,176 ) Gross profit $ 11,009,359 $ 238,920 $ 11,248,279 Year ended December 31, 2017 Direct sales Distribution sales Total Revenue, net $ 18,942,436 $ 1,347,851 $ 20,290,287 Cost of revenue (5,244,490 ) (827,495 ) (6,071,985 ) Gross profit $ 13,697,946 $ 520,356 $ 14,218,302 Year ended December 31, 2018 Direct sales Distribution sales Total Revenue, net $ 23,644,697 $ 4,800,328 $ 28,445,025 Cost of revenue (6,648,933 ) (1,559,922 ) (8,208,855 ) Gross profit $ 16,995,764 $ 3,240,406 $ 20,236,170 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |
Schedule of Related Party Transactions [Table Text Block] | Details of the transactions for the years ended December 31, 2016, 2017 and 2018 were as follows: For the years ended December 31, 2016 2017 2018 Purchase of goods and services Dreamstart $ 454,845 $ — $ — Lu&co $ 10,675 $ — $ — Acorn Composite $ 924,757 $ — $ — IS Seafood $ 22,810 $ 2,656 $ 495,276 Dragon Law $ 2,785 $ — $ — Sale of goods URBN Hotels $ 2,820 $ 3,949 $ 2,577 Jia He Hotel $ 2,513 $ 4,874 $ 7,937 Cachet Hotel $ 1,307 $ 619 $ — |
China Branding Company Limited [Member] | |
Related Party Transaction [Line Items] | |
Schedule of Related Party Transactions [Table Text Block] | As of December 31, 2017 and 2018, the balance due from and due to related parties were as follows: December 31, 2017 2018 Account receivables-Jia He Hotel $ — $ 5,560 Account receivables-URBN Hotel $ — $ 2,605 Other receivables - Mr. Roche $ 13,862 $ 40,196 Other receivables - IS Seafood $ 6,042 $ — Loan receivables - Cachet Hotel $ 3,628,415 $ 10,050,054 Advance to suppliers - IS Seafood $ — $ 596,575 |
Discontinued operation of HJX_2
Discontinued operation of HJX business (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets Available for Sale [Table Text Block] | The following tables present the aggregate carrying amounts of assets classified as held for sale in the consolidated balance sheet: December 31, 2017 2018 Carrying amount of assets held for sale: Intangible assets, net- trademark $ 353,691 $ 353,691 Intangible assets, net- distribution network — — Prepaid expense-copyright 122,245 116,385 Total assets held for sale $ 475,936 $ 470,076 |
Disposal Groups, Including Discontinued Operations [Table Text Block] | The results of operations associated with discontinued operations are presented in the following table: For the years ended December 31, 2016 2017 2018 Net revenues: Direct sales $ 471,293 $ 195,589 $ 639 Distribution sales 7,578,128 1,771,829 55,807 Total net revenues 8,049,421 1,967,418 56,446 Cost of revenues: Direct sales (375,834 ) (185,664 ) (3,939 ) Distribution sales (6,366,283 ) (2,187,001 ) (326,097 ) Total cost of revenues (6,742,117 ) (2,372,665 ) (330,036 ) Gross profit (loss) 1,307,304 (405,247 ) (273,590 ) Operating expenses: Other selling and marketing expenses (5,932,307 ) (1,922,342 ) (189,269 ) General and administrative expenses (2,284,064 ) (1,146,917 ) (774,125 ) Total operating expenses (8,216,371 ) (3,069,259 ) (963,394 ) Income from discontinued operations before income taxes $ (6,909,067 ) $ (3,474,506 ) (1,236,984 ) Income tax expense — — — Income from discontinued operations $ (6,909,067 ) $ (3,474,506 ) $ (1,236,984 ) |
Organization and principal ac_3
Organization and principal activities (Details) | 12 Months Ended |
Dec. 31, 2018 | |
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 | 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 |
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 |
Place of incorporation | PRC |
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 |
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 |
Place of incorporation | PRC |
Acorn Media Group Limited ("Acorn Media") | |
Organization And Principal Activities [Line Items] | |
Percentage of ownership | 100.00% |
Date of incorporation | Jun. 1, 2018 |
Place of incorporation | BVI |
Organization and principal ac_4
Organization and principal activities (Details 1) | 12 Months Ended |
Dec. 31, 2018 | |
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 |
Place of incorporation | PRC |
Beijing HJX Technology Development Co., Ltd. ("Beijing HJX") | |
Variable Interest Entity [Line Items] | |
Date of incorporation | Sep. 16, 2013 |
Place of incorporation | PRC |
Organization and principal ac_5
Organization and principal activities (Details 2) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Variable Interest Entity [Line Items] | ||||
Net revenues | $ 28,445,025 | $ 20,290,287 | $ 16,478,455 | $ 16,478,455 |
Net loss | 31,127,184 | 12,384,303 | 3,438,370 | |
Variable Interest Entity, Primary Beneficiary | ||||
Variable Interest Entity [Line Items] | ||||
Net revenues | 4,928,261 | 7,156,742 | 12,251,518 | |
Net loss | $ (1,025,151) | $ (579,948) | $ (998,709) |
Organization and principal ac_6
Organization and principal activities (Details Textual) ¥ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Apr. 27, 2018USD ($)m² | Apr. 27, 2018CNY (¥)m² | Dec. 31, 2018USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018CNY (¥) | |
Organization And Principal Activities [Line Items] | ||||||
Area of Land | m² | 76,799 | 76,799 | ||||
Red star [Member] | ||||||
Organization And Principal Activities [Line Items] | ||||||
Payments to Acquire Businesses, Gross | $ 59 | ¥ 375 | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | 100.00% | ||||
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 | |||||
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 | 17.30% | 35.30% | 74.30% | |||
Percentage Of Assets | 7.20% | 4.20% | 7.20% | |||
Percentage Of Liabilities | 8.40% | 8.30% | 8.40% | |||
Variable Interest Entity, Primary Beneficiary [Member] | Acorn Information Technology (Shanghai) Co., Ltd. ("Acorn Information") [Member] | ||||||
Organization And Principal Activities [Line Items] | ||||||
Approximate Additional Interest Free Loans Provided By Subsidiary Of Entity To Shareholders Of Its Variable Interest Entities | $ | $ 18.2 |
Summary of principal accounti_3
Summary of principal accounting policies (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 20 years |
Machinery [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 10 years |
Information Technology equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 5 years |
Computers and office equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 3 years |
Computers and office equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 5 years |
Vehicles [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 3 years |
Vehicles [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 4 years |
Summary of principal accounti_4
Summary of principal accounting policies (Details Textual) | 12 Months Ended | ||||||
Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2015USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||||||
Advertising Expense | $ 0 | $ 0 | $ 23,701 | ||||
Cash And Cash Equivalents And Restricted Cash | 17,507,746 | 18,902,191 | ¥ 120,159,160 | ¥ 123,510,697 | |||
Restricted Cash and Cash Equivalents, Current | 76,243 | 78,051 | |||||
Sales Taxes | 365,849 | 250,291 | 53,415 | ||||
Direct Sales Revenue Goods Gross | 23,883,508 | 19,135,633 | 13,406,943 | ||||
Distribution Sales Revenue Goods Gross | 4,927,366 | 1,404,945 | 3,124,927 | ||||
Government Subsidies | 53,965 | 66,648 | 0 | ||||
Foreign Currency Transaction Gain (Loss), before Tax | (126,582) | (241,771) | (380,350) | ||||
Proceeds from Sale of Property Held-for-sale | $ 47,530,540 | 0 | 11,291,342 | ||||
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 | $ 3,808,471 | ||||||
Disposal Group, Including Discontinued Operation, Intangible Assets, Noncurrent | $ 470,076 | 475,936 | |||||
Operating Lease, Right-of-Use Asset | 2,000,000 | ||||||
Shipping and Handling [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Cost of Goods and Services Sold | 645,976 | 982,175 | $ 1,158,019 | ||||
Hjx [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Disposal Group, Including Discontinued Operation, Intangible Assets, Noncurrent | 475,936 | ||||||
Land use rights and related building [Member] | Hjx [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Disposal Group, Including Discontinued Operation, Intangible Assets, Noncurrent | $ 16,546,694 | ||||||
Building [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Disposal Group, Including Discontinued Operation, Intangible Assets, Noncurrent | $ 2,411,294 | ||||||
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 |
Inventory, net (Details)
Inventory, net (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory [Line Items] | ||
Raw materials | $ 63,830 | $ 129,970 |
Finished goods and merchandise goods | 1,630,419 | 1,386,313 |
Inventory | $ 1,694,249 | $ 1,516,283 |
Inventory, net (Details Textual
Inventory, net (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Inventory [Line Items] | |||
Inventory Write-down | $ 41,929 | $ (117,585) | $ 470,069 |
Other prepaid expenses and cu_3
Other prepaid expenses and current assets (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Line Items] | ||
Advances to suppliers | $ 307,774 | $ 54,594 |
Value-added tax recoverable | 942,710 | 947,408 |
Deposits | 416,609 | 361,747 |
Prepaid media expenses | 809,389 | 1,135,043 |
Prepaid service fees | 146,539 | 294,350 |
Receivable from third party for sale of non-core assets and subsidiaries (Refer to Note 5) | 2,443,404 | 0 |
Other prepaid expenses | 2,275,790 | 1,237,670 |
Prepaid Expense and Other Assets, Current | $ 7,342,215 | $ 4,030,812 |
Property and equipment, net (De
Property and equipment, net (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | $ 4,787,772 | $ 9,953,570 |
Less: accumulated depreciation and amortization | (3,771,265) | (5,916,276) |
Property and equipment, net | 1,016,507 | 4,037,294 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 0 | 4,764,519 |
Computers and office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 4,198,086 | 4,498,081 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 294,712 | 344,788 |
Information Technology equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 250,400 | 263,007 |
Machinery [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | $ 44,574 | $ 83,175 |
Property and equipment, net (_2
Property and equipment, net (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Jun. 22, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 10, 2018 | |
Property, Plant and Equipment [Line Items] | |||||
Depreciation and amortization expenses for property and equipment | $ 933,833 | $ 1,126,590 | $ 1,455,654 | ||
Property, Plant and Equipment, Gross, Total | 4,787,772 | 9,953,570 | |||
Property, Plant and Equipment, Net | 1,016,507 | 4,037,294 | |||
Gain (Loss) on Disposition of Property Plant Equipment, Total | (82,805) | (151,397) | (672,667) | ||
Proceeds from Sale of Property, Plant, and Equipment | 1,204 | 11,452 | 80,748 | ||
Accounts Receivable, Net, Current | 3,637,114 | 1,442,750 | |||
Security Deposit Liability | 5,099,365 | 0 | |||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.75 | ||||
Payments of Ordinary Dividends, Common Stock | $ 40,000,000 | ||||
Land and Building [Member] | Hjx [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | 32,503,096 | ||||
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment, Noncurrent | 16,546,694 | ||||
Proceeds from Sale of Property, Plant, and Equipment | 47,500,000 | ||||
Accounts Receivable, Net, Current | 2,400,000 | ||||
Building [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Gross, Total | 0 | $ 4,764,519 | |||
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment, Noncurrent | $ 2,411,294 | ||||
Security Deposit Liability | $ 5,099,365 | ||||
Other Income [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Gain (Loss) on Disposition of Property Plant Equipment, Total | 5,778,669 | ||||
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 | $ 3,808,471 |
Acquired intangible assets, n_3
Acquired intangible assets, net (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, gross | $ 614,624 | $ 614,624 |
Less: accumulated amortization | (614,624) | (614,624) |
Acquired intangible assets, net | 0 | 0 |
Trademarks [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, gross | 614,624 | 614,624 |
Distribution networks [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, gross | $ 0 | $ 0 |
Acquired intangible assets, n_4
Acquired intangible assets, net (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset amortization expense | $ 0 | $ 221,582 | $ 301,697 |
Trademarks [Member] | Hjx [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Disposal Group, Including Discontinued Operation, Intangible Assets, Current | $ 353,691 |
Investments in affiliates (Deta
Investments in affiliates (Details Textual) - USD ($) | Aug. 10, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2012 | Feb. 28, 2013 |
Investments in and Advances to Affiliates [Line Items] | |||||||
Equity method percentage of ownership interest | 37.50% | ||||||
Equity in losses of affiliates | $ 150,000 | $ (324,900) | $ 0 | $ (868,121) | |||
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 | ||||||
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 | |||||
Payments to Acquire Equity Method Investments | $ 1,300,000 | ||||||
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% |
Available-for-sale securities (
Available-for-sale securities (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Available-for-sale Securities | $ 38,858,216 | $ 44,479,922 | |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | (1,163,160) | (10,347,637) | $ (18,172,231) |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | $ (4,652,640) | $ (41,390,549) | $ (72,688,925) |
Convertible loan receivable (De
Convertible loan receivable (Details Textual) | 1 Months Ended | 12 Months Ended | |||
Sep. 30, 2015USD ($) | Oct. 31, 2014CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
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 | ||||
Debt Instrument, Maturity Date | Aug. 22, 2018 | ||||
Payments For Loan Guarantee Obligations | $ | $ 3,024,933 | ||||
Long-term Line of Credit | $ | $ 3,597,392 | $ 3,587,204 | |||
Interest Payable | $ | $ 184,395 | $ 183,785 |
Accrued expenses and other cu_3
Accrued expenses and other current liabilities (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Accrued Expenses and Other Current Liabilities [Line Items] | ||
Other taxes payable | $ 506,465 | $ 1,344,814 |
Accrued employee payroll and welfare | 1,734,528 | 1,685,492 |
Other payable | 514,031 | 832,548 |
Accrued expenses | 4,672,641 | 4,717,604 |
Advances from customers | 19,421 | 63,298 |
Advances from third party for sale of non-core assets | 5,099,365 | 0 |
Provision for equity of losses in affiliates | 327,646 | 0 |
Accrued expenses and other current liabilities | $ 12,874,097 | $ 8,643,756 |
Accrued expenses and other cu_4
Accrued expenses and other current liabilities (Details Textual) | May 01, 2018 | Dec. 31, 2018 |
Accrued Expenses and Other Current Liabilities [Line Items] | ||
Value-added tax rate | 17.00% | 16.00% |
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 (Det_2
Share-based compensation (Details Textual) - USD ($) | Mar. 06, 2017 | Apr. 08, 2016 | May 31, 2006 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
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 | $ 0 | $ 25,000 | $ 658,000 | |||
General and Administrative Expense [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation | $ 0 | $ 25,000 | $ 658,000 | |||
Director [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 | 65,884 | |||||
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 | 1,000,000 | |||||
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 | 1,800,000 |
Fair value measurements (Detail
Fair value measurements (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Available-for-sale investments- marketable equity securities | $ 38,858,216 | $ 44,479,922 |
Fair Value, Inputs, Level 1 [Member] | ||
Available-for-sale investments- marketable equity securities | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale investments- marketable equity securities | 38,858,216 | 44,479,922 |
Fair Value, Inputs, Level 3 [Member] | ||
Available-for-sale investments- marketable equity securities | $ 0 | $ 0 |
Taxation (Details)
Taxation (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Current income tax expenses | $ (3,584,898) | $ 21,873 | $ (4,169,360) |
Deferred income tax benefit (expense) | 397,477 | 7,842,672 | (423,423) |
Total income tax benefit (expense) | $ (3,187,421) | $ 7,864,545 | $ (4,592,783) |
Taxation (Details 1)
Taxation (Details 1) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
PRC statutory tax rate | 25.00% | 25.00% | 25.00% |
Expenses not deductible(Income not taxable) for tax purposes | 1.00% | (1.00%) | 4.00% |
Effect of different tax rate of subsidiary operations in other jurisdiction | (22.00%) | 22.00% | (15.00%) |
Change in valuation allowance | 6.00% | (217.00%) | 36.00% |
Utilization (recognition) of the unrecognized tax benefit | (0.00%) | (0.00%) | 2.00% |
Others | (1.00%) | (3.00%) | 0.00% |
Effective tax rate | 9.00% | (174.00%) | 52.00% |
Taxation (Details 2)
Taxation (Details 2) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Allowance and reserves for inventory and accounts receivable | $ 1,777,103 | $ 1,648,979 |
Accrued expenses | 1,023,275 | 915,809 |
Revenue recognition difference | 89,567 | 97,153 |
Advertising expenses | 0 | 363,155 |
Net operating losses | 16,443,637 | 28,469,713 |
Deferred Tax Assets, Gross, Total | 19,333,582 | 31,494,809 |
Less: valuation allowance | (10,825,754) | (22,932,999) |
Deferred Tax Assets, Net of Valuation Allowance, Total | 8,507,828 | 8,561,810 |
Deferred tax liabilities: | ||
Unrealized gain on available-for-sale securities | (9,138,402) | (10,514,800) |
Deferred Tax Liabilities, Net | (9,138,402) | (10,514,800) |
Total deferred tax liabilities, net | $ (630,574) | $ (1,952,990) |
Taxation (Details Textual)
Taxation (Details Textual) | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2018CNY (¥) | |
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 | $ 1,200,000 | $ 2,200,000 | ||
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | 0 | 200,000 | $ 100,000 | |
Accrued Income Taxes | 15,000 | ¥ 100,000 | ||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | 65,774,548 | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense, Total | 204,156 | 160,057 | ||
Deferred Tax Assets, Valuation Allowance | $ 10,825,754 | $ 22,932,999 | ||
Minimum [Member] | ||||
Income Taxes [Line Items] | ||||
Deferred Tax Operating Loss Carryforwards Expiration Year | 2019 | |||
Maximum [Member] | ||||
Income Taxes [Line Items] | ||||
Deferred Tax Operating Loss Carryforwards Expiration Year | 2023 | |||
Non resident Enterprises [Member] | CHINA | ||||
Income Taxes [Line Items] | ||||
Effective Income Tax Rate | 10.00% | |||
Subsidiaries [Member] | Minimum [Member] | Non-Transfer Pricing Matters [Member] | CHINA | ||||
Income Taxes [Line Items] | ||||
Income Tax Examination, Year under Examination | 2011 | |||
Subsidiaries [Member] | Minimum [Member] | Transfer Pricing Matters [Member] | CHINA | ||||
Income Taxes [Line Items] | ||||
Income Tax Examination, Year under Examination | 2006 | |||
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 | 2018 |
Other income (expense), net (De
Other income (expense), net (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |||
Gains on disposal of available-for-sale securities | $ 960 | $ 11,845,796 | $ 18,088,327 |
Gain on disposal of held-for-sale assets and subsidiaries | 32,503,096 | 0 | 5,838,768 |
Others | 60,272 | (206,953) | (417,304) |
Other income (expenses), net | $ 32,564,328 | $ 11,638,843 | $ 17,671,023 |
Other income (expense), net (_2
Other income (expense), net (Details Textual) ¥ in Millions, shares in Millions | 12 Months Ended | ||||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)shares | Dec. 31, 2017CNY (¥)shares | Dec. 31, 2016USD ($)shares | Dec. 31, 2016CNY (¥)shares | |
Nonoperating Income (Expense), Total | $ 32,564,328 | $ 11,638,843 | $ 17,671,023 | ||
Dividend Income, Operating | $ 2,700,000 | ||||
Yimeng [Member] | |||||
Stock Issued During Period, Shares, New Issues | shares | 4.6 | 4.6 | 8 | 8 | |
Proceeds from Issuance of Common Stock | ¥ | ¥ 64.3 | ¥ 126 |
Earnings (loss) per share (Deta
Earnings (loss) per share (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Numerator: | |||
Net income attributable to Acorn International, Inc. from operations—basic and diluted | $ 31,127,184 | $ 12,384,303 | $ 3,438,370 |
Continuing operations | 32,364,168 | 15,858,809 | 10,347,437 |
Discontinued operations | $ (1,236,984) | $ (3,474,506) | $ (6,909,067) |
Denominator: | |||
Weighted average ordinary shares outstanding—basic and diluted | 52,546,325 | 65,836,869 | 75,600,700 |
Income (Loss) per ordinary share: | |||
Basic and diluted | $ 0.60 | $ 0.19 | $ 0.05 |
Continuing operations | 0.62 | 0.24 | 0.14 |
Discontinued operations | $ (0.02) | $ (0.05) | $ (0.09) |
Earnings (loss) per share (De_2
Earnings (loss) per share (Details Textual) - American Depository Shares [Member] - USD ($) $ in Millions | Dec. 08, 2017 | Nov. 01, 2018 |
Common Stock Repurchase Terms | (i) the Company may repurchase up to US$2 million worth of ADSs for a per ADS purchase price not exceeding US$22.00, with a daily limit not to exceed the 10b-18 daily max, until the earlier of (i) December 31, 2018; and (ii) the date the aggregate repurchases under the New Plan reach a total of US$2 million worth of ADSs. | |
Common Stock Repurchased Value | $ 2 | |
Common Stock Shares Repurchased | 100,342 | |
Common Stock Shares Underlying | 2,006,840 | |
Payments For Common Stock Shares Repurchased | $ 2 |
Mainland China contribution p_2
Mainland China contribution plan and profit appropriation (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Statutory Reserves | $ 8,350,141 | $ 8,350,141 | |
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 | $ 400,219 | 418,045 | $ 558,385 |
Employer contribution towards benefit plan | $ 419,750 | $ 443,305 | $ 659,855 |
Commitments and contingencies_2
Commitments and contingencies (Details) | Dec. 31, 2018USD ($) |
Operating Leased Assets [Line Items] | |
2019 | $ 709,029 |
2020 | 715,253 |
2021 | 647,190 |
Operating Leases, Future Minimum Payments Due, Total | $ 2,071,472 |
Commitments and Contingencies_3
Commitments and Contingencies (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments And Contingencies [Line Items] | |||
Rental expenses under operating leases | $ 672,601 | $ 585,375 | $ 619,262 |
Segment and geographic inform_3
Segment and geographic information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | ||||
Total gross revenues | $ 28,810,874 | $ 20,540,578 | $ 16,531,870 | |
Less: sales taxes | (365,849) | (250,291) | (53,415) | |
Total revenues, net | 28,445,025 | 20,290,287 | 16,478,455 | $ 16,478,455 |
Health Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total gross revenues | 24,853,660 | 17,032,191 | 11,776,863 | |
Mobile Phones [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total gross revenues | 779,428 | 1,117,158 | 1,722,626 | |
Collectible Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total gross revenues | 1,739,317 | 1,534,151 | 1,573,757 | |
Kitchen and Household [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total gross revenues | 134,588 | 223,497 | 397,722 | |
Fitness Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total gross revenues | 34,355 | 25,085 | 217,226 | |
Cosmetic Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total gross revenues | 65,414 | 14,192 | 103,330 | |
Consumer Electronics Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total gross revenues | 1,853 | 0 | 41,437 | |
Seafood products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total gross revenues | 432,756 | 0 | 0 | |
Auto Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total gross revenues | 169 | 9,532 | 1,026 | |
Other Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total gross revenues | $ 769,334 | $ 584,772 | $ 697,883 |
Segment and geographic inform_4
Segment and geographic information (Details 1) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | ||||
Revenue, net | $ 28,445,025 | $ 20,290,287 | $ 16,478,455 | $ 16,478,455 |
Cost of revenue | (8,208,855) | (6,071,985) | (5,230,176) | (5,230,176) |
Gross profit | 20,236,170 | 14,218,302 | $ 11,248,279 | 11,248,279 |
Direct Sales [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, net | 23,644,697 | 18,942,436 | 13,361,915 | |
Cost of revenue | (6,648,933) | (5,244,490) | (2,352,556) | |
Gross profit | 16,995,764 | 13,697,946 | 11,009,359 | |
Distribution sales [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, net | 4,800,328 | 1,347,851 | 3,116,540 | |
Cost of revenue | (1,559,922) | (827,495) | (2,877,620) | |
Gross profit | $ 3,240,406 | $ 520,356 | $ 238,920 |
Segment and geographic inform_5
Segment and geographic information (Details Textual) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Number of Reportable Segments | 2 | ||
customer accounted for 10% or more of the Group's net revenues | 0 | 0 | 0 |
Customer [Member] | |||
Segment Reporting Information [Line Items] | |||
customer accounted for 11.7% of the Company's net revenues | 1 |
Related party transactions (Det
Related party transactions (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Dreamstart [Member] | Purchase Of Goods And Services [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | $ 0 | $ 0 | $ 454,845 |
Lu&co [Member] | Purchase Of Goods And Services [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | 0 | 0 | 10,675 |
Acorn Composite [Member] | Purchase Of Goods And Services [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | 0 | 0 | 924,757 |
Account payable - IS seafood [Member] | Purchase Of Goods And Services [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | 495,276 | 2,656 | 22,810 |
Dragon Law [Member] | Purchase Of Goods And Services [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | 0 | 0 | 2,785 |
URBN Hotels [Member] | Sale Of Goods [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | 2,577 | 3,949 | 2,820 |
Jia He Hotel [Member] | Sale Of Goods [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | 7,937 | 4,874 | 2,513 |
Cachet Hotel [Member] | Sale Of Goods [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | $ 0 | $ 619 | $ 1,307 |
Related party transactions (D_2
Related party transactions (Details 1) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Balance Due from and Due to Related Parties | ||
Due from Related Parties | $ 596,575 | $ 0 |
Account receivables-Jia He Hotel [Member] | ||
Balance Due from and Due to Related Parties | ||
Due from Related Parties | 5,560 | 0 |
Account receivables-URBN Hotel [Member] | ||
Balance Due from and Due to Related Parties | ||
Due from Related Parties | 2,605 | 0 |
Other receivables - Mr. Roche [Member] | ||
Balance Due from and Due to Related Parties | ||
Due from Related Parties | 40,196 | 13,862 |
Other receivables - IS seafood [Member] | ||
Balance Due from and Due to Related Parties | ||
Due to Related Parties | 0 | 6,042 |
Loan receivables - Cachet Hotel [Member] | ||
Balance Due from and Due to Related Parties | ||
Due from Related Parties | 10,050,054 | 3,628,415 |
Advance to suppliers - IS Seafood [Member] | ||
Balance Due from and Due to Related Parties | ||
Due from Related Parties | $ 596,575 | $ 0 |
Related party transactions (D_3
Related party transactions (Details Textual) | 1 Months Ended | 12 Months Ended | |||||
Sep. 30, 2015USD ($) | Sep. 30, 2015CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Oct. 31, 2014 | |
Related Party Transaction [Line Items] | |||||||
Payment of Related party | $ 454,845 | ||||||
Receivable with Imputed Interest, Face Amount | $ 10,000,000 | ||||||
Disbursement of loan to related party | (6,247,432) | $ (3,628,415) | 0 | ||||
Due from Related Parties | $ 596,575 | 0 | |||||
USD [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | ||||||
RMB [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | ||||||
Chief Executive Officer [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Related Party Transaction, Amounts of Transaction | $ 924,757 | ||||||
LU And Co [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Payments for Fees | 10,675 | ||||||
LU And Co [Member] | Technology Service [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Cost of Goods and Services Sold | ¥ | ¥ 15,000 | ||||||
Account payable - IS seafood [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Related Party Transaction, Purchases from Related Party | $ 495,276 | 2,656 | 22,810 | ||||
URBN Hotels [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Due from Related Parties | 2,605 | 0 | |||||
URBN Hotels [Member] | Sale Of Goods [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Related Party Transaction, Amounts of Transaction | 2,577 | 3,949 | 2,820 | ||||
Jia He Hotel [Member] | Sale Of Goods [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Related Party Transaction, Amounts of Transaction | 7,937 | 4,874 | 2,513 | ||||
Cachet Hotel [Member] | Sale Of Goods [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Related Party Transaction, Amounts of Transaction | 0 | $ 619 | $ 1,307 | ||||
Seafood [Member] | Purchase Of Goods And Services [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Due from Related Parties | $ 596,575 | ||||||
Ryecor China Investment Limited [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | ||||||
Payments For Loan Guarantee Obligations | $ 3,024,933 |
Restricted net assets (Details
Restricted net assets (Details Textual) - Subsidiaries [Member] | Dec. 31, 2018USD ($) |
Restricted Net Asset Total | $ 7,409,535 |
Retained Earnings Restricted For Distribution | $ 20,336,734 |
Discontinued operation of HJX_3
Discontinued operation of HJX business (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Total assets held for sale | $ 470,076 | $ 475,936 |
Intangible assets, net- trademark | ||
Total assets held for sale | 353,691 | 353,691 |
Intangible assets, net- distribution network [Member] | ||
Total assets held for sale | 0 | 0 |
Prepaid expense-copyright | ||
Total assets held for sale | $ 116,385 | $ 122,245 |
Discontinued operation of HJX_4
Discontinued operation of HJX business (Details 1) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net revenues: | ||||
Direct sales | $ 23,644,697 | $ 18,942,436 | $ 13,361,915 | |
Distribution sales | 4,800,328 | 1,347,851 | 3,116,540 | |
Cost of revenues: | ||||
Direct sales | (6,648,933) | (5,244,490) | (2,352,556) | |
Distribution sales | (1,559,922) | (827,495) | (2,877,620) | |
Gross profit | 20,236,170 | 14,218,302 | 11,248,279 | $ 11,248,279 |
Operating expenses: | ||||
Other selling and marketing expenses | (11,913,375) | (10,114,870) | (7,037,783) | |
General and administrative expenses | (7,551,677) | (9,759,145) | (14,153,048) | |
Total operating expenses | (17,328,789) | (18,400,960) | (13,607,198) | |
Income from discontinued operations before income taxes | (1,236,984) | (3,474,506) | (6,909,067) | |
Income from discontinued operations | (1,236,984) | (3,474,506) | (6,909,067) | |
HJX business [Member] | ||||
Net revenues: | ||||
Direct sales | 639 | 195,589 | 471,293 | |
Distribution sales | 55,807 | 1,771,829 | 7,578,128 | |
Total net revenues | 56,446 | 1,967,418 | 8,049,421 | |
Cost of revenues: | ||||
Direct sales | (3,939) | (185,664) | (375,834) | |
Distribution sales | (326,097) | (2,187,001) | (6,366,283) | |
Total cost of revenues | (330,036) | (2,372,665) | (6,742,117) | |
Gross profit | (273,590) | (405,247) | 1,307,304 | |
Operating expenses: | ||||
Other selling and marketing expenses | (189,269) | (1,922,342) | (5,932,307) | |
General and administrative expenses | (774,125) | (1,146,917) | (2,284,064) | |
Total operating expenses | (963,394) | (3,069,259) | (8,216,371) | |
Income from discontinued operations before income taxes | (1,236,984) | (3,474,506) | (6,909,067) | |
Income tax expense | 0 | 0 | 0 | |
Income from discontinued operations | $ (1,236,984) | $ (3,474,506) | $ (6,909,067) |
Discontinued operation of HJX_5
Discontinued operation of HJX business (Details Textual) ¥ in Millions | Aug. 10, 2016USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2018CNY (¥) |
Equity Method Investment, Ownership Percentage | 37.50% | 37.50% | |||
Income (Loss) from Equity Method Investments | $ 150,000 | $ (324,900) | $ 0 | $ (868,121) | |
Hjx [Member] | |||||
Disposal Group, Including Discontinued Operation, Consideration | $ 918,246 | ¥ 6 |
Subsequent events (Details Text
Subsequent events (Details Textual) ¥ in Millions | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2019CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Subsequent Event [Line Items] | ||||
Proceeds from Sale of Property, Plant, and Equipment | $ | $ 1,204 | $ 11,452 | $ 80,748 | |
Scenario, Forecast [Member] | Principal Office [Member] | ||||
Subsequent Event [Line Items] | ||||
Proceeds from Sale of Property, Plant, and Equipment | ¥ | ¥ 46 |
Financial Information of Parent
Financial Information of Parent Company Balance Sheets (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||||
Cash and cash equivalents | $ 20,143,783 | $ 21,019,834 | ||
Total current assets | 39,968,941 | 31,674,934 | ||
Total assets | 90,136,954 | 100,907,371 | ||
Current liabilities: | ||||
Dividend payable | 174,658 | 0 | ||
Total current liabilities | 17,503,079 | 11,610,333 | ||
Total liabilities | 18,133,653 | 13,563,323 | ||
Equity: | ||||
Ordinary shares ($0.01 par value; 100,000,000 shares authorized 91,884,402 and 91,884,402 shares issued and 53,602,810 and 51,619,218 shares outstanding as of December 31, 2017 and 2018, respectively) | 918,844 | 918,844 | ||
Additional paid-in capital | 121,962,650 | 161,962,670 | ||
Accumulated deficits | (79,399,389) | (110,526,573) | ||
Accumulated other comprehensive income | 56,507,394 | 60,968,963 | ||
Treasury stock, at cost (38,281,592 and 40,265,184 shares as of December 31, 2017 and 2018, respectively) | (28,320,324) | (26,335,296) | ||
Total equity | 71,669,175 | 86,988,608 | ||
Total liabilities and equity | 90,136,954 | 100,907,371 | ||
Parent Company [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 174,658 | 0 | $ 0 | $ 0 |
Total current assets | 174,658 | 0 | ||
Investments in subsidiaries and VIEs | 71,669,176 | 86,988,609 | ||
Total assets | 75,698,274 | 86,988,609 | ||
Current liabilities: | ||||
Dividend payable | 174,658 | 0 | ||
Total current liabilities | 174,658 | 0 | ||
Total liabilities | 174,658 | 0 | ||
Equity: | ||||
Ordinary shares ($0.01 par value; 100,000,000 shares authorized 91,884,402 and 91,884,402 shares issued and 53,602,810 and 51,619,218 shares outstanding as of December 31, 2017 and 2018, respectively) | 918,844 | 918,844 | ||
Additional paid-in capital | 121,962,651 | 161,962,671 | ||
Accumulated deficits | (79,399,389) | (110,526,573) | ||
Accumulated other comprehensive income | 56,507,394 | 60,968,963 | ||
Treasury stock, at cost (38,281,592 and 40,265,184 shares as of December 31, 2017 and 2018, respectively) | (28,320,324) | (26,335,296) | ||
Total equity | 71,669,176 | 86,988,609 | ||
Total liabilities and equity | $ 75,698,274 | $ 86,988,609 |
Financial Information of Pare_2
Financial Information of Parent Company Balance Sheets (Parenthetical) (Details) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
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 | 91,884,402 | 91,884,402 |
Ordinary shares, shares outstanding | 51,619,218 | 53,602,810 |
Treasury stock, shares | 40,265,184 | 38,281,592 |
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 | 91,884,402 | 91,884,402 |
Ordinary shares, shares outstanding | 51,619,218 | 53,602,810 |
Treasury stock, shares | 40,265,184 | 38,281,592 |
Financial Information of Pare_3
Financial Information of Parent Company Statements of Operations (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income from operations | $ (2,907,381) | $ 4,182,658 | $ 2,358,919 |
Income taxes | 3,187,421 | (7,864,545) | 4,592,783 |
Net income of Acorn International, Inc. | 31,127,184 | 12,384,303 | 3,438,370 |
Parent Company [Member] | |||
Income from operations | 0 | 0 | 0 |
Income before income taxes | 0 | 0 | 0 |
Income taxes | 0 | 0 | 0 |
Equity in gains of subsidiaries and VIEs | 31,127,184 | 12,384,303 | 3,438,370 |
Net income of Acorn International, Inc. | $ 31,127,184 | $ 12,384,303 | $ 3,438,370 |
Financial Information of Pare_4
Financial Information of Parent Company Statements of Comprehensive Loss (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Financial Statements, Captions [Line Items] | |||
Net income | $ 31,127,184 | $ 12,384,303 | $ 3,438,370 |
Other comprehensive income, net of tax | |||
Net unrealized losses of available-for-sales securities in the subsidiaries, net of tax of $ (10,490,287) and $ (1,163,160) in 2017 and 2018, respectively. | (3,489,480) | (31,042,912) | (54,516,694) |
Foreign currency translation adjustments | (988,967) | 11,167,377 | (27,222,102) |
Comprehensive Income (loss) of Acorn International, Inc. | 26,644,301 | (7,495,689) | (78,330,133) |
Parent Company [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net income | 31,127,184 | 12,384,303 | 3,438,370 |
Other comprehensive income, net of tax | |||
Net unrealized losses of available-for-sales securities in the subsidiaries, net of tax of $ (10,490,287) and $ (1,163,160) in 2017 and 2018, respectively. | (3,489,480) | (34,823,436) | (53,999,944) |
Foreign currency translation adjustments | (972,089) | 14,927,138 | (27,715,195) |
Comprehensive Income (loss) of Acorn International, Inc. | $ 26,665,615 | $ (7,511,995) | $ (78,276,769) |
Financial Information of Pare_5
Financial Information of Parent Company Statements of Comprehensive Loss (Parenthetical) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | $ (1,163,160) | $ (10,347,637) | $ (18,172,231) |
Parent Company [Member] | |||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | $ 1,163,160 | $ 10,490,287 |
Financial Information of Pare_6
Financial Information of Parent Company Statements of Cash Flows (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities: | |||
Net income of Acorn International, Inc. | $ 31,127,184 | $ 12,384,303 | $ 3,438,370 |
Financing activities: | |||
Dividend paid | (39,825,362) | 0 | 0 |
Net increase in cash and cash equivalents | (877,859) | (4,479,923) | 13,304,676 |
Cash, cash equivalents and restricted cash at the beginning of the year | 21,019,834 | ||
Cash, cash equivalents and restricted cash at the end of the year | 20,143,783 | 21,019,834 | |
Parent Company [Member] | |||
Operating activities: | |||
Net income of Acorn International, Inc. | 31,127,184 | 12,384,303 | 3,438,370 |
Equity in gains of subsidiaries and VIEs | (31,127,184) | (12,384,303) | (3,438,370) |
Net cash provided by operating activities | 0 | 0 | 0 |
Investing activities: | |||
Dividend received | 40,000,020 | 0 | 0 |
Net cash provided by investing activities | 40,000,020 | 0 | 0 |
Financing activities: | |||
Dividend paid | (39,825,362) | 0 | 0 |
Net cash used in financing activities | (39,825,362) | 0 | 0 |
Net increase in cash and cash equivalents | 174,658 | 0 | 0 |
Cash, cash equivalents and restricted cash at the beginning of the year | 0 | 0 | 0 |
Cash, cash equivalents and restricted cash at the end of the year | $ 174,658 | $ 0 | $ 0 |
Additional Information - Financ
Additional Information - Financial Statement Schedule- I (Details Textual) - Parent Company [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Cash [Member] | 2017 Year | |
Quantifying Misstatement in Current Year Financial Statements, Amount | $ 4.5 |
Cash [Member] | 2016 Year | |
Quantifying Misstatement in Current Year Financial Statements, Amount | 2.1 |
Assets, Total [Member] | 2017 Year | |
Quantifying Misstatement in Current Year Financial Statements, Amount | $ 8.5 |
Note to Schedule I (Details Tex
Note to Schedule I (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Financial Statements, Captions [Line Items] | |||
Restricted net assets of consolidated subsidiaries as percentage of consolidated net assets | 25.00% | ||
Investment Income, Dividend | $ 2,455,675 | $ 0 | $ 5,400,000 |
Additional Information - Fina_2
Additional Information - Financial Statement Schedule- II (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for accounts receivable [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | $ 3,978,604 | $ 3,702,514 | $ 5,398,166 |
Charged to/ (Reversed from) Costs and Expenses | 45,059 | 276,090 | (18,096) |
Write-off | 0 | 0 | (1,677,556) |
Balance at End of Year | 4,023,663 | 3,978,604 | 3,702,514 |
Allowance for prepaid advertising expenses [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | 897,397 | 1,036,904 | 1,107,706 |
Charged to/ (Reversed from) Costs and Expenses | (578,979) | (139,507) | 0 |
Write-off | 0 | 0 | (70,802) |
Balance at End of Year | 318,418 | 897,397 | 1,036,904 |
Allowance for prepaid expenses and current assets [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | 310,117 | 436,348 | 605,445 |
Charged to/ (Reversed from) Costs and Expenses | 327,213 | (126,231) | (169,097) |
Write-off | 0 | 0 | 0 |
Balance at End of Year | 637,330 | 310,117 | 436,348 |
Allowance for deferred tax assets [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | 22,932,999 | 33,012,389 | 35,657,594 |
Charged to/ (Reversed from) Costs and Expenses | (14,769,183) | (10,079,390) | (2,645,205) |
Write-off | 0 | 0 | 0 |
Balance at End of Year | $ 8,163,816 | $ 22,932,999 | $ 33,012,389 |