Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Apr. 14, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | ChinaNet Online Holdings, Inc. | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | -19 | ||
Entity Common Stock, Shares Outstanding | 29,230,130 | ||
Entity Public Float | $11,885,562 | ||
Amendment Flag | FALSE | ||
Entity Central Index Key | 1376321 | ||
Entity Current Reporting Status | No | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY |
Consolidated_Balance_Sheets
Consolidated Balance Sheets(USD ($)) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Current assets: | ||||
Cash and cash equivalents | $5,037 | $3,442 | ||
Term deposit | 3,465 | 3,467 | ||
Accounts receivable, net | 2,407 | 7,673 | ||
Other receivables, net | 8,392 | 4,299 | ||
Prepayment and deposit to suppliers | 8,092 | 14,692 | ||
Due from related parties | 51 | 502 | ||
Other current assets | 61 | 27 | ||
Deferred tax assets-current | 176 | 153 | ||
Total current assets | 27,681 | 34,255 | ||
Long-term investments | 909 | 845 | ||
Property and equipment, net | 943 | 1,057 | ||
Intangible assets, net | 9,238 | 6,015 | ||
Deposit and prepayment for purchasing of software technology | 850 | 2,453 | ||
Goodwill | 6,772 | 11,450 | ||
Deferred tax assets-non current | 1,037 | 759 | ||
Total Assets | 47,430 | 56,834 | ||
Current liabilities: | ||||
Short-term bank loan * | 817 | [1] | 818 | [1] |
Accounts payable * | 782 | [1] | 421 | [1] |
Advances from customers * | 832 | [1] | 995 | [1] |
Accrued payroll and other accruals * | 585 | [1] | 676 | [1] |
Due to noncontrolling interest of VIE * | 638 | [1] | [1] | |
Payable for purchasing of software technology * | 2,826 | |||
Taxes payable * | 3,332 | [1] | 7,029 | [1] |
Other payables * | 602 | [1] | 288 | [1] |
Total current liabilities | 10,414 | 10,227 | ||
Long-term liabilities: | ||||
Deferred tax liability-non current * | 964 | [1] | 1,439 | [1] |
Long-term borrowing from director | 143 | 143 | ||
Total Liabilities | 11,521 | 11,809 | ||
ChinaNet Online Holdings, Inc.’s stockholders’ equity | ||||
Common stock (US$0.001 par value; authorized 50,000,000 shares; issued and outstanding 29,030,130 shares and 22,376,540 shares at December 31, 2014 and 2013, respectively) | 29 | 22 | ||
Additional paid-in capital | 24,703 | 19,870 | ||
Statutory reserves | 2,607 | 2,602 | ||
Retained earnings | 5,222 | 18,965 | ||
Accumulated other comprehensive income | 3,625 | 3,689 | ||
Total ChinaNet Online Holdings, Inc.’s stockholders’ equity | 36,186 | 45,148 | ||
Noncontrolling interests | -277 | -123 | ||
Total equity | 35,909 | 45,025 | ||
Total Liabilities and Equity | $47,430 | $56,834 | ||
[1] | All of the VIEs' assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEsdo not represent additional claims on the Company's general assets (Note 2). |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Common stock, par value (in Dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 29,030,130 | 22,376,540 |
Common stock, shares outstanding | 29,030,130 | 22,376,540 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Comprehensive (Loss)/Income (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Sales | ||
From unrelated parties | $38,544,000 | $29,932,000 |
From related parties | 353,000 | 361,000 |
38,897,000 | 30,293,000 | |
Cost of sales | 32,275,000 | 16,563,000 |
Gross margin | 6,622,000 | 13,730,000 |
Operating expenses | ||
Sales and marketing expenses | 7,017,000 | 2,574,000 |
General and administrative expenses | 6,207,000 | 7,691,000 |
Research and development expenses | 2,659,000 | 1,995,000 |
Loss on disposal of intangible asset | 315,000 | |
(Gain)/loss on disposal of VIEs | -266,000 | 543,000 |
Goodwill impairment and impairment of intangible assets | 5,639,000 | |
21,256,000 | 13,118,000 | |
(Loss)/income from operations | -14,634,000 | 612,000 |
Other income (expenses) | ||
Interest income | 122,000 | 125,000 |
Interest expense | -52,000 | -26,000 |
Other (expenses)/income | -28,000 | 5,000 |
42,000 | 104,000 | |
(Loss)/income before income tax expense, equity method investments and noncontrolling interests | -14,592,000 | 716,000 |
Income tax benefit/(expense) | 653,000 | -816,000 |
Loss before equity method investments and noncontrolling interests | -13,939,000 | -100,000 |
Share of income/(losses) in equity investment affiliates | 47,000 | -183,000 |
Net loss | -13,892,000 | -283,000 |
Net loss attributable to noncontrolling interests | 154,000 | 49,000 |
Foreign currency translation (loss)/gain | -64,000 | 1,306,000 |
Comprehensive (Loss)/income | -13,956,000 | 1,023,000 |
Comprehensive loss attributable to noncontrolling interests | 154,000 | 39,000 |
Comprehensive (loss)/income attributable to ChinaNet Online Holdings, Inc. | -13,802,000 | 1,062,000 |
Loss per common share | ||
Basic and diluted (in Dollars per share) | ($0.61) | ($0.01) |
Weighted average number of common shares outstanding: | ||
Basic and diluted (in Shares) | 22,414,523 | 22,284,485 |
Net loss attributable to ChinaNet Online Holdings, Inc. | ($13,738,000) | ($234,000) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities | ||
Net loss | ($13,892,000) | ($283,000) |
Adjustments to reconcile net loss to net cash provided by operating activities | ||
Depreciation and amortization | 1,437,000 | 1,617,000 |
Share-based compensation expenses | 4,840,000 | 125,000 |
(Reverse of)/provision for allowances for doubtful accounts | -861,000 | 2,702,000 |
Share of (income)/losses in equity investment affiliates | -47,000 | 183,000 |
Goodwill impairment and impairment of intangible assets | 5,639,000 | |
Loss on disposal of property and equipment | 3,000 | |
(Gain)/loss on disposal of VIEs | -266,000 | 543,000 |
Loss on disposal of intangible asset | 315,000 | |
Deferred taxes | -850,000 | -486,000 |
Changes in operating assets and liabilities | ||
Accounts receivable | 5,226,000 | -3,676,000 |
Other receivables | 1,370,000 | 98,000 |
Prepayment and deposit to suppliers | -1,499,000 | 380,000 |
Due from related parties | 449,000 | -282,000 |
Other current assets | -42,000 | 106,000 |
Accounts payable | 390,000 | 301,000 |
Advances from customers | -118,000 | -104,000 |
Accrued payroll and other accruals | -60,000 | -242,000 |
Other payables | 318,000 | -69,000 |
Taxes payable | -76,000 | 1,525,000 |
Net cash provided by operating activities | 1,958,000 | 2,756,000 |
Cash flows from investing activities | ||
Purchases of vehicles and office equipment | -280,000 | -79,000 |
Deposit and prepayment for purchasing of software technology | -847,000 | -2,420,000 |
Short-term loan to unrelated entities | -790,000 | |
Repayment of short-term loan from unrelated entities | 790,000 | |
Long-term investment in cost/equity method investees | -18,000 | -40,000 |
Collection of receivable on disposal of VIEs | 1,604,000 | |
Payment for acquisition of VIEs | -2,258,000 | |
Cash effect on deconsolidation of VIEs | -358,000 | -146,000 |
Net cash provided by/(used in) investing activities | 891,000 | -5,733,000 |
Cash flows from financing activities | ||
Proceeds from short-term bank loan | 814,000 | 807,000 |
Repayment of short-term bank loan | -814,000 | |
Short-term loan from noncontrolling interest of VIE | 717,000 | |
Repayment of short-term loan to noncontrolling interest of VIE | -81,000 | |
Repayment to former VIE | -1,893,000 | |
Net cash (used in)/provided by financing activities | -1,257,000 | 807,000 |
Effect of exchange rate fluctuation on cash and cash equivalents | 3,000 | 129,000 |
Net increase/(decrease) in cash and cash equivalents | 1,595,000 | -2,041,000 |
Cash and cash equivalents at beginning of the year | 3,442,000 | 5,483,000 |
Cash and cash equivalents at end of the year | 5,037,000 | 3,442,000 |
Supplemental disclosure of cash flow information | ||
Income taxes paid | 204,000 | 39,000 |
Interest expense paid | 52,000 | 25,000 |
Non-cash transactions: | ||
Receivable on disposal of VIEs | 1,611,000 | |
Payable for purchasing of software technologies | 2,826,000 | |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Adjustments to reconcile net loss to net cash provided by operating activities | ||
(Gain)/loss on disposal of VIEs | ($266,000) | $543,000 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Equity (USD $) | Common Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member] | Statutory Reserve [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interest [Member] | Management, Employees and Directors [Member] | Total |
Management, Employees and Directors [Member] | Management, Employees and Directors [Member] | |||||||||
Amount at Dec. 31, 2012 | $22,000 | $20,008,000 | $2,296,000 | $19,505,000 | $2,393,000 | $621,000 | $44,845,000 | |||
Shares (in Shares) at Dec. 31, 2012 | 22,186,540 | |||||||||
Restricted shares issued for services | 125,000 | 125,000 | ||||||||
Restricted shares issued for services (in Shares) | 190,000 | |||||||||
Purchase of noncontrolling interests in a VIE | -263,000 | -705,000 | -968,000 | |||||||
Appropriation of statutory reserves | 306,000 | -306,000 | ||||||||
Net loss | -234,000 | -49,000 | -283,000 | |||||||
Foreign currency translation adjustment | 1,296,000 | 10,000 | 1,306,000 | |||||||
Amount at Dec. 31, 2013 | 22,000 | 19,870,000 | 2,602,000 | 18,965,000 | 3,689,000 | -123,000 | 45,025,000 | |||
Shares (in Shares) at Dec. 31, 2013 | 22,376,540 | |||||||||
Restricted shares issued for services | 4,000 | 4,620,000 | 117,000 | 4,624,000 | 117,000 | |||||
Restricted shares issued for services (in Shares) | 3,952,113 | 190,000 | ||||||||
Unvested restricted shares issued to management | 3,000 | -3,000 | ||||||||
Unvested restricted shares issued to management (in Shares) | 2,666,667 | |||||||||
Share-based compensation expenses related to common stock purchase options issued to directors | 99,000 | 99,000 | ||||||||
Cancellation of restricted shares due to cessation of employment (in Shares) | -155,190 | |||||||||
Appropriation of statutory reserves | 5,000 | -5,000 | ||||||||
Net loss | -13,738,000 | -154,000 | -13,892,000 | |||||||
Foreign currency translation adjustment | -64,000 | -64,000 | ||||||||
Amount at Dec. 31, 2014 | $29,000 | $24,703,000 | $2,607,000 | $5,222,000 | $3,625,000 | ($277,000) | $35,909,000 | |||
Shares (in Shares) at Dec. 31, 2014 | 29,030,130 |
Note_1_Organization_and_Nature
Note 1 - Organization and Nature of Operations | 12 Months Ended | |
Dec. 31, 2014 | ||
Disclosure Text Block [Abstract] | ||
Nature of Operations [Text Block] | 1 | Organization and nature of operations |
ChinaNet Online Holdings, Inc. (formerly known as Emazing Interactive, Inc.) (the “Company”) was incorporated in the State of Texas in April 2006 and re-domiciled to become a Nevada corporation in October 2006. From the date of the Company’s incorporation until June 26, 2009, when the Company consummated the Share Exchange (discussed below), the Company’s activities were primarily concentrated in web server access and company branding in hosting web based e-games. | ||
On June 26, 2009, the Company entered into a Share Exchange Agreement (the “Exchange Agreement”), with (i) China Net Online Media Group Limited, a company organized under the laws of British Virgin Islands (“China Net BVI”), (ii) China Net BVI’s shareholders, Allglad Limited, a British Virgin Islands company (“Allglad”), Growgain Limited, a British Virgin Islands company ("Growgain"), Rise King Investments Limited, a British Virgin Islands company (“Rise King BVI”), Star (China) Holdings Limited, a British Virgin Islands company (“Star”), Surplus Elegant Investment Limited, a British Virgin Islands company (“Surplus”), Clear Jolly Holdings Limited, a British Virgin Islands company (“Clear” and together with Allglad, Growgain, Rise King BVI, Star and Surplus, the “China Net BVI Shareholders”), who together owned shares constituting 100% of the issued and outstanding ordinary shares of China Net BVI (the “China Net BVI Shares”) and (iii) G. Edward Hancock, the principal stockholder of the Company at that time. Pursuant to the terms of the Exchange Agreement, the China Net BVI Shareholders transferred to the Company all of the China Net BVI Shares in exchange for the issuance of 13,790,800 shares (the “Exchange Shares”) in the aggregate of the Company’s common stock (the “Share Exchange”). As a result of the Share Exchange, China Net BVI became a wholly owned subsidiary of the Company and the Company is now a holding company, which, through certain contractual arrangements with operating companies in the People’s Republic of China (the “PRC”), is engaged in providing advertising, marketing, communication and brand management and sales channel building services to small and medium enterprises (“SMEs”) in China. | ||
The Company’s wholly owned subsidiary, China Net BVI was incorporated in the British Virgin Islands on August 13, 2007. On April 11, 2008, China Net BVI became the parent holding company of a group of companies comprised of CNET Online Technology Limited, a Hong Kong company (“China Net HK”), which established and is the parent company of Rise King Century Technology Development (Beijing) Co., Ltd., a wholly foreign-owned enterprise (“WFOE”) established in the PRC (“Rise King WFOE”). The Company refers to the transactions that resulted in China Net BVI becoming an indirect parent company of Rise King WFOE as the “Offshore Restructuring.” | ||
PRC regulations prohibit direct foreign ownership of business entities providing internet content, or ICP services in the PRC, and restrict foreign ownership of business entities engaging in the advertising business. To satisfy PRC laws and regulations, the Company conducts certain business in the PRC through its Variable Interest Entities (“VIEs”). Through a series of contractual agreements (the “Contractual Agreements” or “VIE Agreements”) between Rise King WFOE and Business Opportunity Online (Beijing) Network Technology Co., Ltd. (“Business Opportunity Online”), Beijing CNET Online Advertising Co., Ltd. (“Beijing CNET Online”) and Rise King (Shanghai) Advertisement Media Co., Ltd. (“Shanghai Jing Yang”) (collectively the “PRC Operating Entities” or the “VIEs”) and its common individual owners (the “PRC Shareholders” or the “Control Group”), the Company, through Rise King WFOE, secures significant rights to influence the PRC Operating Entities’ business operations, policies and management, approve all matters requiring shareholder approval, and the right to receive 100% of the income earned by the PRC Operating Entities. In return, Rise King WFOE provides consulting services to the PRC Operating Entities. In addition, to ensure that the PRC Operating Entities and the PRC Shareholders perform their obligations under the Contractual Arrangements, the PRC Shareholders have pledged all of their equity interests in the PRC Operating Entities to Rise King WFOE. They also entered into an option agreement with Rise King WFOE which provides that at such time as when the current restrictions under PRC law on foreign ownership of Chinese companies engaging in the Internet content, information services or advertising business in China are lifted, Rise King WFOE may exercise its option to purchase the equity interests in the PRC Operating Entities, directly. | ||
Pursuant to the Contractual Agreements, all of the equity owners' rights and obligations of the VIEs were assigned to Rise King WFOE, which resulted in the equity owners lacking the ability to make decisions that have a significant effect on the VIEs, Rise King WFOE's ability to extract the profits from the operation of the VIEs and assume the residual benefits of the VIEs. Due to the fact that Rise King WFOE and its indirect parent are the sole interest holders of the VIEs, the Company included the assets, liabilities, revenues and expenses of the VIEs in its consolidated financial statements, which is consistent with the provisions of FASB Accounting Standards Codification ("ASC") Topic 810 “Consolidation”, subtopic 10. | ||
As of December 31, 2014, the Company’s VIE, Beijing CNET Online is a 51% shareholder of Shanghai Borongdingsi Computer Technology Co., Ltd. (“Shanghai Borongdingsi”) and a 10% shareholder of Beijing Saturday Education Technology Co., Ltd. (“Beijing Saturday”). Business Opportunity Online is a 51% shareholder of Beijing Chuang Fu Tian Xia Network Technology Co., Ltd. (“Beijing Chuang Fu Tian Xia”), the sole shareholder of Business Opportunity Online (Hubei) Network Technology Co., Ltd. (“Business Opportunity Online Hubei”), the sole shareholder of Quanzhou City Zhilang Network Technology Co., Ltd. (“Quanzhou Zhi Lang”), the sole shareholder of Beijing Chuang Shi Xin Qi Advertising Media Co., Ltd. (“Beijing Chuang Shi Xin Qi”), the sole shareholder of Beijing Hong Da Shi Xing Network Technology Co., Ltd. (“Beijing Hong Da Shi Xing”), the sole shareholder of Beijing Shi Ji Cheng Yuan Advertising Media Co., Ltd. (“Beijing Shi Ji Cheng Yuan”) and a 23.18% shareholder of Shenzhen City Mingshan Network Technology Co., Ltd. (“Shenzhen Mingshan”). Business Opportunity Online Hubei is the sole shareholder of Hubei CNET Advertising Media Co., Ltd. (“Hubei CNET”), the sole shareholder of Sheng Tian Network Technology (Hubei) Co., Ltd. (“Sheng Tian Hubei”) and a 25.5% shareholder of Zhao Shang Ke Network Technology (Hubei) Co., Ltd. (“Zhao Shang Ke Hubei”). The Company operated its business primarily in China through its PRC subsidiary and PRC operating entities, or VIEs as discussed above. | ||
Note_2_Variable_Interest_Entit
Note 2 - Variable Interest Entities | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Variable Interest Entities Disclosure [Abstract] | |||||||||
Variable Interest Entities Disclosure [Text Block] | 2 | Variable Interest Entities | |||||||
To satisfy PRC laws and regulations, the Company conducts certain business in the PRC through its Variable Interest Entities (“VIEs”). | |||||||||
Risks in Relation to the VIE Structure | |||||||||
The Ministry of Commerce of PRC (“MOFCOM”) published a discussion draft of the proposed Foreign Investment Law (the “Draft”) in January 2015 aiming to, upon its enactment, replace the trio of existing laws regulating foreign investment in China. The Draft embodies an expected PRC regulatory trend to rationalize its foreign investment regulatory regime in line with prevailing international practice and the legislative efforts to unify the corporate legal requirements for both foreign and domestic investments. | |||||||||
The MOFCOM is currently soliciting comments on the Draft and substantial uncertainties exist with respect to its enactment timetable, interpretation and implementation. The Draft, if enacted as proposed, may materially impact the viability of the Company’s current corporate structure, corporate governance and business operations. The Draft expands the definition of foreign investment and introduces the principle of "actual control" in determining whether a company is considered a Foreign Investment Enterprise (“FIE”). | |||||||||
Under the Draft, VIEs that are controlled via contractual arrangement would be deemed as FIEs, if they are ultimately "controlled" by foreign investors. Therefore, for any companies with a VIE structure in an industry category that falls under restricted to foreign investment or prohibited from foreign investment, the VIE structure may be deemed legitimate only if the ultimate controlling person(s) is/are of PRC nationality (either PRC companies or PRC citizens). Conversely, if the actual controlling person(s) is/are of foreign nationalities, then the VIEs will be treated as FIEs and any operation in the industry category falls under restricted to foreign investment or prohibited from foreign investment, without market entry clearance may be considered as illegal. Moreover, for the enterprises which are not incorporated under the laws of China (foreign investors) but are "controlled" by Chinese investors, they may submit documentary evidence to apply for identifying their investment as the investment by Chinese investors when they applying for the market entry clearance to engage in any investment as set out in industries restricted to foreign investment or prohibited from foreign investment in China. The competent authorities of foreign investment will grant the review opinion on whether the said investment is identified as the investment by Chinese investors. | |||||||||
In conclusion, if the Draft enacted as proposed, it is possible that the Company's conduct of certain of its operations and businesses through the VIEs could be found by PRC authorities to be in violation of PRC laws and regulations prohibiting or restricting foreign ownership of companies that engage in such operations and businesses. If such a finding were made, regulatory authorities with jurisdiction over the licensing and operation of such businesses would have broad discretion in dealing with such a violation, including levying fines, confiscating the Company's income, revoking the business or operating licenses of the affected businesses, requiring the Company to restructure its ownership structure or operations, or requiring the Company to discontinue all or any portion of its operations. Any of these actions could cause significant disruption to the Company's business operations, and have a material adverse impact on the Company's cash flows, financial position and operating performance. The Company's management considers the possibility of such a finding by PRC regulatory authorities to be remote. | |||||||||
These contractual arrangements may not be as effective in providing the Company with control over the VIEs as direct ownership. Due to its VIE structure, the Company has to rely on contractual rights to effect control and management of the VIEs, which exposes it to the risk of potential breach of contract by the shareholders of the VIEs for a number of reasons. For example, their interests as shareholders of the VIEs and the interests of the Company may conflict and the Company may fail to resolve such conflicts; the shareholders may believe that breaching the contracts will lead to greater economic benefit for them; or the shareholders may otherwise act in bad faith. If any of the foregoing were to happen, the Company may have to rely on legal or arbitral proceedings to enforce its contractual rights, including specific performance or injunctive relief, and claiming damages. Such arbitral and legal proceedings may cost substantial financial and other resources, and result in a disruption of its business, and the Company cannot assure that the outcome will be in its favor. In addition, as all of these contractual arrangements are governed by PRC law and provide for the resolution of disputes through either arbitration or litigation in the PRC, they would be interpreted in accordance with PRC law and any disputes would be resolved in accordance with PRC legal procedures. The legal environment in the PRC is not as developed as in other jurisdictions, such as the United States. As a result, uncertainties in the PRC legal system could further limit the Company’s ability to enforce these contractual arrangements. Furthermore, these contracts may not be enforceable in China if PRC government authorities or courts take a view that such contracts contravene PRC laws and regulations or are otherwise not enforceable for public policy reasons. In the event that the Company is unable to enforce any of these agreements, the Company would not be able to exert effective control over the affected VIEs and consequently, the results of operations, assets and liabilities of the affected VIEs and their subsidiaries would not be included in the Company's consolidated financial statements. If such were the case, the Company's cash flows, financial position and operating performance would be materially adversely affected. | |||||||||
The Company's agreements with respect to its consolidated VIEs are approved and in place. The Company's management believes that such agreements are enforceable, and considers it a remote possibility that PRC regulatory authorities with jurisdiction over the Company's operations and contractual relationships would find the agreements to be unenforceable under existing laws. | |||||||||
The significant terms of the VIE Agreements are summarized below: | |||||||||
Exclusive Business Cooperation Agreements: Pursuant to the Exclusive Business Cooperation Agreements entered into by and between Rise King WFOE and each of the PRC Operating Entities, Rise King WFOE has the exclusive right to provide to the PRC Operating Entities complete technical support, business support and related consulting services during the term of these agreements, which includes but is not limited to technical services, business consultations, equipment or property leasing, marketing consultancy system integration, product research and development, and system maintenance. In exchange for such services, each PRC Operating Entity has agreed to pay a service fee to Rise King WFOE equal to 100% of the net income of each PRC Operating Entity. Adjustments may be made upon approval by Rise King WFOE based on services rendered by Rise King WFOE and operational needs of the PRC Operating Entities. The payment shall be made on a monthly basis, if at year end, after an audit of the financial statements of any PRC Operating Entities, there is determined to be any shortfall in the payment of 100% of the annual net income, such PRC Operating Entity shall pay such shortfall to Rise King WFOE. Each agreement has a ten-year term. The term of these agreements may be extended if confirmed in writing by Rise King WFOE, prior to the expiration of the term. The extended term shall be determined by Rise King WFOE, and the PRC Operating Entities shall accept such extended term unconditionally. | |||||||||
Exclusive Option Agreements: Under the Exclusive Option Agreements entered into by and among Rise King WFOE, each of the PRC Shareholders irrevocably granted to Rise King WFOE or its designated person an exclusive option to purchase, to the extent permitted by PRC law, a portion or all of their respective equity interest in any PRC Operating Entities for a purchase price of RMB 10, or a purchase price to be adjusted to be in compliance with applicable PRC laws and regulations. Rise King WFOE, or its designated person, has the sole discretion to decide when to exercise the option, whether in part or in full. Each of these agreements has a ten-year term, subject to renewal at the election of Rise King WFOE. | |||||||||
Equity Pledge Agreements: Under the Equity Pledge Agreements entered into by and among Rise King WFOE, the PRC Operating Entities and each of the PRC Shareholders, the PRC Shareholders pledged all of their equity interests in the PRC Operating Entities to guarantee the PRC Operating Entities’ performance of its obligations under the Exclusive Business Cooperation Agreements. If the PRC Operating Entities or any of the PRC Shareholders breaches its/his/her respective contractual obligations under these agreements, or upon the occurrence of one of the events regarded as an event of default under each such agreement, Rise King WFOE, as pledgee, will be entitled to certain rights, including the right to dispose of the pledged equity interests. The PRC Shareholders of the PRC Operating Entities agreed not to dispose of the pledged equity interests or take any actions that would prejudice Rise King WFOE's interest, and to notify Rise King WFOE of any events or upon receipt of any notices which may affect Rise King WFOE's interest in the pledge. Each of the equity pledge agreements will be valid until all the payments related to the services provided by Rise King WFOE to the PRC Operating Entities due under the Exclusive Business Cooperation Agreements have been fulfilled. Therefore, the equity pledge agreements shall only be terminated when the payments related to the ten-year Exclusive Business Cooperation Agreement are paid in full and the WFOE does not intend to extend the term of the Exclusive Business Cooperation Agreement. | |||||||||
Irrevocable Powers of Attorney: The PRC Shareholders have each executed an irrevocable power of attorney to appoint Rise King WFOE as their exclusive attorneys-in-fact to vote on their behalf on all PRC Operating Entities matters requiring shareholder approval. The term of each power of attorney is valid so long as such shareholder is a shareholder of the respective PRC Operating Entity. | |||||||||
As a result of these VIE Agreements, the Company through its wholly-owned subsidiary, Rise King WFOE, was granted with unconstrained decision making rights and power over key strategic and operational functions that would significantly impact the PRC Operating Entities or the VIEs’ economic performance, which includes, but is not limited to, the development and execution of the overall business strategy; important and material decision making; decision making for merger and acquisition targets and execution of merger and acquisition plans; business partnership strategy development and execution; government liaison; operation management and review; and human resources recruitment and compensation and incentive strategy development and execution. Rise King WFOE also provides comprehensive services to the VIEs for their daily operations, such as operational technical support, office automation technical support, accounting support, general administration support and technical support for products and services. As a result of the Exclusive Business Cooperation Agreements, the Equity Pledge Agreements and the Exclusive Option Agreements, the Company will bear all of the VIEs’ operating costs in exchange for 100% of the net income of the VIEs. Under these agreements, the Company has the absolute and exclusive right to enjoy economic benefits similar to equity ownership through the VIE Agreements with our PRC Operating Entities and their shareholders. | |||||||||
Summarized below is the information related to the consolidated VIEs’ assets and liabilities as of December 31, 2014 and 2013, respectively: | |||||||||
As of December 31, | |||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
Assets | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 4,239 | $ | 3,326 | |||||
Term deposit | 3,465 | 3,467 | |||||||
Accounts receivable, net | 2,407 | 7,637 | |||||||
Other receivables, net | 8,349 | 3,416 | |||||||
Prepayment and deposit to suppliers | 8,091 | 14,690 | |||||||
Due from related parties | - | 174 | |||||||
Other current assets | 58 | 27 | |||||||
Deferred tax assets-current | 107 | 118 | |||||||
Total current assets | 26,716 | 32,855 | |||||||
Long-term investments | 865 | 801 | |||||||
Property and equipment, net | 869 | 918 | |||||||
Intangible assets, net | 9,238 | 6,013 | |||||||
Deposit and prepayment for purchasing of software technology | 850 | 2,453 | |||||||
Goodwill | 6,772 | 11,450 | |||||||
Deferred tax assets-non current | 795 | 482 | |||||||
Total Assets | $ | 46,105 | $ | 54,972 | |||||
Liabilities | |||||||||
Current liabilities: | |||||||||
Short-term bank loan | $ | 817 | $ | 818 | |||||
Accounts payable | 782 | 421 | |||||||
Advances from customers | 832 | 995 | |||||||
Accrued payroll and other accruals | 357 | 279 | |||||||
Due to Control Group | 11 | 11 | |||||||
Due to noncontrolling interest of VIE * | 638 | - | |||||||
Payable for purchasing of software technology | 2,826 | ||||||||
Taxes payable | 2,846 | 6,542 | |||||||
Other payables | 580 | 142 | |||||||
Total current liabilities | 9,689 | 9,208 | |||||||
Deferred tax Liabilities-non current | 964 | 1,439 | |||||||
Total Liabilities | $ | 10,653 | $ | 10,647 | |||||
All of the VIEs' assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company’s general assets. | |||||||||
For the year ended December 31, 2014, the financial performance of the VIEs reported in the Company’s consolidated statements of operations and comprehensive loss includes sales of approximately US$38,172,000 cost of sales of approximately US$32,272,000, operating expenses of approximately US$15,425,000 and net loss before allocation to noncontrolling interests of approximately US$8,518,000. | |||||||||
For the year ended December 31, 2013, the financial performance of the VIEs reported in the Company’s consolidated statements of operations and comprehensive income includes sales of approximately US$29,920,000, cost of sales of approximately US$16,561,000, operating expenses of approximately US$9,927,000 and net income before allocation to noncontrolling interests of approximately US$1,516,000. | |||||||||
Note_3_Summary_of_Significant_
Note 3 - Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Significant Accounting Policies [Text Block] | 3 | Summary of significant accounting policies | |||||||||||
a) | Basis of presentation | ||||||||||||
The consolidated financial statements are prepared and presented in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). | |||||||||||||
b) | Principles of consolidation | ||||||||||||
The consolidated financial statements include the financial statements of all the subsidiaries and VIEs of the Company. All transactions and balances between the Company and its subsidiaries and VIEs have been eliminated upon consolidation. According to the agreements between Beijing CNET Online and Shanghai Borongdingsi, although Beijing CNET Online legally owns 51% of Shanghai Borongdingsi’s interests, Beijing CNET Online only controls the assets and liabilities related to the bank kiosks business, which has been included in the financial statements of Beijing CNET Online, but does not control other assets of Shanghai Borongdingsi, thus, Shanghai Borongdingsi’s financial statements were not consolidated by the Company. | |||||||||||||
c) | Use of estimates | ||||||||||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related disclosure of contingent assets and liabilities at the date of these consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. The Company continually evaluates these estimates and assumptions based on the most recently available information, historical experience and various other assumptions that the Company believes to be reasonable under the circumstances. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from those estimates. | |||||||||||||
d) | Reclassification | ||||||||||||
Certain prior year accounts have been regrouped or reclassified to conform to the current year presentation, which did not have any impact on the Company’s prior year consolidated financial position, consolidated results of operations and consolidated cash flows. | |||||||||||||
e) | Foreign currency translation and transactions | ||||||||||||
The functional currency of the Company is United States dollars (“US$”), and the functional currency of China Net HK is Hong Kong dollars (“HK$”). The functional currency of the Company’s PRC operating subsidiary and VIEs is Renminbi (“RMB”), and PRC is the primary economic environment in which the Company operates. | |||||||||||||
For financial reporting purposes, the financial statements of the Company’s PRC operating subsidiary and VIEs, which are prepared using the RMB, are translated into the Company’s reporting currency, the United States Dollar (“U.S. dollar”). Assets and liabilities are translated using the exchange rate at each balance sheet date. Revenue and expenses are translated using average rates prevailing during each reporting period, and stockholders’ equity is translated at historical exchange rates. Adjustments resulting from the translation are recorded as a separate component of accumulated other comprehensive income in stockholders’ equity. | |||||||||||||
Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transactions. The resulting exchange differences are included in the determination of net income of the consolidated statements of income and comprehensive income for the respective periods. | |||||||||||||
The exchange rates used to translate amounts in RMB into US$ for the purposes of preparing the consolidated financial statements are as follows: | |||||||||||||
As of December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Balance sheet items, except for equity accounts | 6.119 | 6.114 | |||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Items in the statements of income and comprehensive income, and statements of cash flows | 6.1428 | 6.1982 | |||||||||||
No representation is made that the RMB amounts could have been, or could be converted into US$ at the above rates. | |||||||||||||
f) | Cash and cash equivalents | ||||||||||||
Cash and cash equivalents consist of cash on hand and bank deposits, which are unrestricted as to withdrawal and use. The Company considers all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents. | |||||||||||||
g) | Term deposits | ||||||||||||
Term deposits consist of bank deposits with an original maturity of between three to twelve months. | |||||||||||||
h) | Accounts and other receivable, net | ||||||||||||
Accounts receivable and other receivables are recorded at net realizable value consisting of the carrying amount less an allowance for uncollectible accounts as needed. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable and other receivables. The Company determines the allowance based on aging data, historical collection experience, customer specific facts and economic conditions. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company did not have any off-balance-sheet credit exposure relating to its customers, suppliers or others. | |||||||||||||
i) | Long-term Investments | ||||||||||||
Equity method investments | |||||||||||||
Investee companies that are not consolidated, but over which the Company exercises significant influence, are accounted for under the equity method of accounting in accordance to ASC Topic 323 “Equity Method and Joint Ventures”. Whether or not the Company exercises significant influence with respect to an investee depends on an evaluation of several factors including, among others, representation on the investee companies’ board of directors and ownership level, which is generally a 20% to 50% interest in the voting securities of the investee companies. Under the equity method of accounting, an investee company’s accounts are not reflected within the Company’s consolidated balance sheets and statements of income and comprehensive income; however, the Company’s share of the income or losses of the investee company is reflected in the caption “Share of income (losses) in equity investment affiliates” in the consolidated statements of operations and comprehensive (loss)/income. The Company’s carrying value (including advance to the investee) in equity method investee companies is recorded in the caption “Long-term investments” in the Company’s consolidated balance sheets. | |||||||||||||
When the Company’s carrying value in an equity method investee company is reduced to zero, no further losses are recorded in the Company’s consolidated financial statements unless the Company guaranteed obligations of the investee company or has committed additional funding. When the investee company subsequently reports income, the Company will not record its share of such income until it equals the amount of its share of losses not previously recognized. | |||||||||||||
Cost method investments | |||||||||||||
Investee companies that are not consolidated, and over which the Company does not exercise significant influence, are accounted for under the cost method of accounting in accordance to ASC Topic 325 subtopic 20: “Investments-Other: Cost Method Investments”. The Company generally owns less than 20% interest in the voting securities of the cost method investee companies. Under the cost method of accounting, the Company records the cost method investments at cost in the caption “Long-term investments” in the Company’s consolidated balance sheets, and only adjusts for other-than-temporary declines in fair value of investee companies and distributions of earnings from investee companies. | |||||||||||||
Impairment for long-term investments | |||||||||||||
The Company assesses its long-term investments for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, operating performance and financial position of the investee companies, including current earnings trends and undiscounted cash flows, and other company-specific information. The fair value determination, particularly for investments in privately-held companies, requires significant judgment to determine appropriate estimates and assumptions. Changes in these estimates and assumptions could affect the calculation of the fair value of the investments and determination of whether any identified impairment is other-than-temporary. The impairment to be recognized is measured by the amount by which the carrying values of the long-term investments exceed the fair value of the long-term investments. | |||||||||||||
For the years ended December 31, 2014 and 2013, the Company did not record any other-than-temporary impairment associated with its long-terms investments. | |||||||||||||
j) | Property and equipment, net | ||||||||||||
Property and equipment are recorded at cost less accumulated depreciation. Depreciation is calculated on the straight-line method after taking into account their respective estimated residual values over the following estimated useful lives: | |||||||||||||
Vehicles (years) | 5 | ||||||||||||
Office equipment (years) | 3 | - | 5 | ||||||||||
Electronic devices (years) | 5 | ||||||||||||
Depreciation expenses are included in selling expenses, general and administrative expenses and research and development expenses. | |||||||||||||
When property and equipment are retired or otherwise disposed of, resulting gain or loss is included in net income or loss in the year of disposition for the difference between the net book value and proceeds received thereon. Maintenance and repairs which do not improve or extend the expected useful lives of the assets are charged to expenses as incurred, whereas the cost of renewals and betterments that extend the useful life of the assets are capitalized as additions to the related assets. | |||||||||||||
k) | Intangible assets, net | ||||||||||||
Purchased software and software platform is initially recorded at cost and amortized on a straight-line basis over the estimated useful economic life. | |||||||||||||
Intangible assets other than goodwill acquired through various acquisitions are amortized on a straight-line basis over their expected useful economic lives. | |||||||||||||
Domain Name | indefinite | ||||||||||||
Contract Backlog (years) | 0.6 | - | 0.7 | ||||||||||
Customer Relationship (years) | 5 | - | 9 | ||||||||||
Non-Compete Agreement (years) | 5 | - | 6 | ||||||||||
Software technologies (years) | 5 | ||||||||||||
If an acquired intangible asset is determined to have an indefinite useful life, it should not be amortized until its useful life is determined to be no longer indefinite. The Company reviews intangible assets' remaining useful lives in each reporting period. If such an asset is later determined to have a finite useful life, the asset will be tested for impairment. That asset will then be amortized prospectively over its estimated remaining useful life and accounted for in the same way as intangible assets subject to amortization. | |||||||||||||
The Company accounted for website development costs in accordance with ASC Topic 350-50, which requires that certain costs related to the development or purchase of internal-use software and systems as well as the costs incurred in the application development stage related to its website be capitalized and amortized over the estimated useful life of the software or system. ASC Topic 350-50 also require that costs related to the preliminary project stage, data conversion and post implementation/operation stage of an internal-use software development project be expensed as incurred. For the years ended December 31, 2014 and 2013, the Company did not capitalize any such cost, as the amount was considered immaterial. | |||||||||||||
l) | Impairment of long-lived assets | ||||||||||||
Long-lived assets, which include tangible long-lived assets and intangible long-lived assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets to be held and used is measured by a comparison of the carrying amount of the asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future undiscounted cash flows, an impairment loss is recognized for the difference between the carrying amount of the asset and its fair value. | |||||||||||||
For the year ended December 31, 2014, the Company provided approximately US$989,000 impairment loss in the aggregate associated with long-lived assets, which was related to intangible assets (non-compete agreement and customer relationship) acquired through various business combination transactions. For the year ended December 31, 2013, the Company did not record any impairment losses associated with long-lived assets. Please refer to Note 3 (r) and Note 11 for detailed disclosures about the impaired intangible assets and the related valuation technique(s) and inputs used in the fair value measurement for these intangible assets. | |||||||||||||
m) | Goodwill | ||||||||||||
Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and liabilities acquired as a result of the Company's acquisitions of interests in its consolidated VIEs. | |||||||||||||
Goodwill is not depreciated or amortized but is tested for impairment at the reporting unit level at least on an annual basis, and between annual tests when an event occurs or circumstances change that could indicate that the asset might be impaired. The test consists of two steps. First, identify potential impairment by comparing the fair value of the reporting unit to its carrying amount, including goodwill. If the fair value of the reporting unit is greater than its carrying amount, goodwill is not considered impaired. Second, if there is impairment identified in the first step, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation, in accordance with ASC Topic 805 “Business Combinations.” | |||||||||||||
Application of a goodwill impairment test requires significant management judgment, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. The judgment in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit. | |||||||||||||
The Company’s respective goodwill is directly attributable to its internet advertising reporting unit and brand management and sales channel building reporting unit. For the years ended December 31, 2014 and 2013, the Company performed its annual test on goodwill impairment for these two reporting units on December 31, 2014 and 2013, respectively. For the year ended December 31, 2014, the Company provided approximately US$4,650,000 impairment loss in the aggregate associated with goodwill. For the year ended December 31, 2013, the Company did not record any impairment losses associated with Goodwill. Please refer to Note 3 (r) and Note 13 for detailed disclosures about the impairment of goodwill and the related valuation technique(s) and inputs used in the fair value measurement for the Company’s goodwill. | |||||||||||||
n) | Transaction between entities under common control | ||||||||||||
In August 2014, the Company integrated and merged all business activities and resources (excluding tangible assets and liabilities incurred) of its former VIE, Sou Yi Lian Mei Network Technology (Beijing) Co., Ltd. (“Sou Yi Lian Mei”) and Sou Yi Lian Mei’s sole wholly-owned subsidiary, Jin Du Ya He (Beijing) Network Technology Co., Ltd. (“Jin Du Ya He”) to the Company’s other internet advertising and marketing companies for continued operation. Sou Yi Lian Mei and its subsidiary Jin Du Ya He were subsequently disposed by the Company. | |||||||||||||
In April 2013, the Company formed Quanzhou Zhi Lang for the reorganization of its brand management and sales channel building business segment. All of the business activities and resources of the Company’s former VIEs, Quanzhou Zhi Yuan Marketing Planning Co., Ltd. (“Quanzhou Zhi Yuan”) and Quanzhou Tian Xi Shun He Advertisement Co., Ltd. (“Quanzhou Tian Xi Shun He”) (excluding tangible assets and liabilities incurred), were transferred and merged into Quanzhou Zhi Lang. After the reorganization, Quanzhou Zhi Yuan and Quanzhou Tian Xi Shun He were subsequently disposed by the Company. | |||||||||||||
The Company considered these transactions as transaction between entities under common control and accounted for these transactions in accordance with ASC 805-50, which provided guidance on measuring assets and liabilities transferred between entities under common control. In accordance with ASC 805-50, transferring assets between entities under common control, the entity that receives the net assets should initially measure the recognized assets and liabilities transferred at their carrying amounts in the accounts of the transferring entity at the date of transfer. | |||||||||||||
o) | Deconsolidation | ||||||||||||
The Company accounts for deconsolidation of subsidiaries in accordance with ASC Topic 810 “Consolidation”. | |||||||||||||
In accordance with ASC Topic 810-10-40-5, the parent shall account for the deconsolidation of a subsidiary by recognizing a gain or loss in net income attributable to the parent, measured as the difference between: | |||||||||||||
a. The aggregate of all of the following: | |||||||||||||
1. The fair value of any consideration received; | |||||||||||||
2. The fair value of any retained noncontrolling investment in the former subsidiary at the date the subsidiary is deconsolidated; | |||||||||||||
3. The carrying amount of any noncontrolling interest in the former subsidiary (including any accumulated other comprehensive income attributable to the noncontrolling interest) at the date the subsidiary is deconsolidated. | |||||||||||||
b. The carrying amount of the former subsidiary’s assets and liabilities. | |||||||||||||
For the years ended December 31, 2014 and 2013, the Company achieved approximately US$0.27 million gain and incurred approximately US$0.54 million loss on disposal of its former VIEs, respectively. | |||||||||||||
p) | Changes in a parent’s ownership interest while the parent retains its controlling financial interest in its subsidiary | ||||||||||||
The Company accounted for changes in a parent’s ownership interest while the parent retains its controlling financial interest in its subsidiary in accordance with ASC Topic 810 “Consolidation”, subtopic 10, which requires the transaction be accounted for as equity transactions (investments by owners and distributions to owners acting in their capacity as owners). Therefore, no gain or loss shall be recognized in consolidated net income or comprehensive income. The carrying amount of the noncontrolling interest shall be adjusted to reflect the change in its ownership interest in the subsidiary. Any difference between the fair value of the consideration received or paid and the amount by which the noncontrolling interest is adjusted shall be recognized in equity attributable to the parent and reallocated the subsidiary’s accumulated comprehensive income, if any, among the parent and the noncontrolling interest through an adjustment to the parent’s equity. | |||||||||||||
The Company acquired the remaining 49% equity interest in Sheng Tian Hubei in September 2013. The difference between the cash consideration paid and the amount by which the noncontrolling interest was adjusted to reflect the change in its ownership interest in the VIE of approximately US$0.26 million was recognized in equity attributable to the Company for the year ended December 31, 2013. | |||||||||||||
q) | Noncontrolling interest | ||||||||||||
The Company accounts for noncontrolling interest in accordance with ASC Topic 810-10-45, which requires the Company to present noncontrolling interests as a separate component of total shareholders’ equity on the consolidated balance sheet and the consolidated net income attributable to the parent and the noncontrolling interest be clearly identified and presented on the face of the consolidated income and comprehensive income statement. ASC Topic 810-10-45 also requires that losses attributable to the parent and the noncontrolling interest in a subsidiary be attributed to those interests even if it results in a deficit noncontrolling interest balance. | |||||||||||||
r) | Fair value | ||||||||||||
The Company’s financial instruments primarily consist of cash and cash equivalents, accounts receivable, other receivables, prepayment and deposits, accounts payable, advances from customers, accruals and other payables. The carrying values of these financial instruments approximate fair values due to their short maturities. | |||||||||||||
ASC Topic 820 "Fair Value Measurement and Disclosures," defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This topic also establishes a fair value hierarchy which requires classification based on observable and unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value: | |||||||||||||
Level 1 - Quoted prices in active markets for identical assets or liabilities. | |||||||||||||
Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||||||||||||
Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |||||||||||||
Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each quarter. | |||||||||||||
The Company measures certain non-financial assets, such as intangible assets and goodwill, at fair value on a nonrecurring basis only if they were determined to be other-than-temporarily impaired. | |||||||||||||
Assets measured at fair value on a nonrecurring basis by level within the fair value hierarchy are summarized as follows: | |||||||||||||
Carrying value | Fair value measurement using inputs | Impairment charge for the year ended December 31, 2014 | |||||||||||
As of December 31, 2014: | Level 3 | ||||||||||||
US$(’000) | US$(’000) | ||||||||||||
Intangible assets | 392 | 392 | 989 | ||||||||||
Goodwill | 6,772 | 6,772 | 4,650 | ||||||||||
Due to intensified market competition and continued rising cost from suppliers, which resulted in the decrease in gross margin, operation performance, and consecutive net losses incurred in 2014, the Company performed impairment analysis on its intangible assets and goodwill as of December 31, 2014. The fair value of intangible assets and goodwill was determined using income approach. The following table summarizes the quantitative information about the Company’s Level 3 fair value measurements, which utilize significant unobservable internally-developed inputs: | |||||||||||||
Fair Value as of | Valuation technique(s) | Unobservable inputs | Ranges | ||||||||||
31-Dec-14 | |||||||||||||
US$(’000) | |||||||||||||
Intangible assets | 392 | Multi-period Excess | Remaining useful life | 1.17 | - | 5.17 | |||||||
Earning | (in years) | ||||||||||||
Discount rate | 24.40% | - | 26.20% | ||||||||||
Decline in EBIT without non-compete agreement | 10% | ||||||||||||
Annual customer attrition rate | 15% | ||||||||||||
Goodwill | 6,772 | Discounted Cash Flow | Projection year | 6 | |||||||||
(in years) | |||||||||||||
Discount rate | 24.40% | - | 26.20% | ||||||||||
Terminal growth rate | 3.50% | ||||||||||||
s) | Revenue recognition | ||||||||||||
The Company's revenue recognition policies are in compliance with ASC Topic 605 “Revenue Recognition”. In accordance with ASC Topic 605, revenues are recognized when the four of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the service has been rendered, (iii) the fees are fixed or determinable, and (iv) collectability is reasonably assured. | |||||||||||||
Sales include revenues from selling advertising time purchased from TV stations, internet advertising space on the Company’s website portals and effective sales lead information collected, providing online advertising, marketing and other related value added technical services. No revenue from advertising-for-advertising barter transactions was recognized because the transactions did not meet the criteria for recognition in ASC Topic 605, subtopic 20. Advertising contracts establish the fixed price and advertising services to be provided. Pursuant to advertising contracts, the Company provides advertisement placements in different formats, including but not limited to banners, links, logos, buttons, rich media and content integration in specified locations on the sites and for agreed periods; and/or places the advertisements onto purchased advertisement time during specific TV programs for agreed periods. Revenue is recognized ratably over the period the advertising is provided and, as such, the Company considers the services to have been delivered. The Company treats all elements of advertising contracts as a single unit of accounting for revenue recognition purposes. Value added technical services are provided based on two types of contracts: (i) fixed price and (ii) fixed price with minimum performance threshold. For contracts with fixed price term, revenue is recognized on a pro-rata basis over the engaged service period. For fixed price contracts with minimum performance threshold, revenue is recognized when the specified performance criteria is met. Revenue from search engine marketing services is recognized on a monthly basis based on the direct cost consumed through search engines for providing such services with a premium. The Company recognizes the revenue on a gross basic, as the Company believes that it acts as the primary obligor of this transaction, which is considered the most important factor for a gross revenue recognition in accordance with ASC Topic 605, subtopic 45. Revenue from selling effective sales lead information is recognized based on fixed price per sales lead when information is delivered and accepted by clients. Based upon the Company’s credit assessments of its clients prior to entering into contracts, the Company determines if collectability is reasonably assured. In situations where collectability is not deemed to be reasonably assured, the Company recognizes revenue upon receipt of cash from clients, only after services have been provided and all other criteria for revenue recognition have been met. | |||||||||||||
t) | Cost of sales | ||||||||||||
Cost of sales primarily includes the cost of media advertising time, internet advertisement related resources and other technical services purchased from third parties, direct labor cost and benefits. | |||||||||||||
u) | Advertising costs | ||||||||||||
Advertising costs for the Company’s own brand building are not includable in cost of sales, they are expensed when incurred or amortized over the estimated beneficial period and are included in “sales and marketing expenses” in the statement of operations and comprehensive (loss)/income. For the years ended December 31, 2014 and 2013, advertising expenses for the Company’s own brand building were approximately US$3,938,000 and US$450,000, respectively. | |||||||||||||
v) | Research and development expenses | ||||||||||||
The Company accounts for the cost of developing and upgrading technologies and platforms and intellectual property that are used in its daily operations in research and development cost. Research and development costs are charged to expense when incurred. Expenses for research and development for the years ended December 31, 2014 and 2013 were approximately US$2,659,000 and US$1,995,000, respectively. | |||||||||||||
w) | Income taxes | ||||||||||||
The Company follows the guidance of ASC Topic 740 “Income taxes” and uses liability method to account for income taxes. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets, if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized in statement of income and comprehensive income in the period that includes the enactment date. | |||||||||||||
x) | Uncertain tax positions | ||||||||||||
The Company follows the guidance of ASC Topic 740 “Income taxes”, which prescribes a more likely than not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. This Interpretation also provides guidance on recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures. | |||||||||||||
The Company recognizes interest on non-payment of income taxes under requirement by tax law and penalties associated with tax positions when a tax position does not meet the minimum statutory threshold to avoid payment of penalties. The tax returns of the Company’s PRC subsidiary and VIEs are subject to examination by the relevant tax authorities. According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitations is extended to five years under special circumstances, where the underpayment of taxes is more than RMB100,000. In the case of transfer pricing issues, the statute of limitation is ten years. There is no statute of limitation in the case of tax evasion. The Company did not have any material interest or penalties associated with tax positions for the years ended December 31, 2014 and 2013 and did not have any significant unrecognized uncertain tax positions as of December 31, 2014 and 2013, respectively. | |||||||||||||
y) | Share-based Compensation | ||||||||||||
The Company accounted for share-based compensation to employees in accordance with ASC Topic 718 “Compensation-Stock Compensation” which requires that share-based payment transactions be measured based on the grant-date fair value of the equity instrument issued and recognized as compensation expense over the requisite service period, or vesting period. | |||||||||||||
z) | Comprehensive income | ||||||||||||
The Company accounts for comprehensive income in accordance with ASC Topic 220 “Comprehensive Income”, which establishes standards for reporting and displaying comprehensive income and its components in the consolidated financial statements. Comprehensive income is defined as the change in equity of a company during a period from transactions and other events and circumstances excluding transactions resulting from investments from owners and distributions to owners. Accumulated other comprehensive income, as presented in the Company’s consolidated balance sheets are the cumulative foreign currency translation adjustments. | |||||||||||||
aa) | Earnings (loss) per share | ||||||||||||
Earnings (loss) per share are calculated in accordance with ASC Topic 260, “Earnings Per Share”. Basic earnings (loss) per share is computed by dividing income (loss) attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. Common shares issuable upon the conversion of the convertible preferred shares are included in the computation of diluted earnings per share on an “if-converted” basis when the impact is dilutive. The dilutive effect of outstanding common stock warrants and options are reflected in the diluted earnings per share by application of the treasury stock method when the impact is dilutive. | |||||||||||||
bb) | Commitments and contingencies | ||||||||||||
The Company has adopted ASC 450 “Contingencies” subtopic 20, in determining its accruals and disclosures with respect to loss contingencies. Accordingly, estimated losses from loss contingencies are accrued by a charge to income when information available prior to issuance of the financial statements indicates that it is probable that a liability have been incurred and the amount of the loss can be reasonably estimated. Legal expenses associated with the contingency are expensed as incurred. If a loss contingency is not probable or reasonably estimable, disclosure of the loss contingency is made in the financial statements when it is at least reasonably possible that a material loss could be incurred. | |||||||||||||
cc) | Recent accounting standards | ||||||||||||
In April 2014, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” This ASU changes the threshold for reporting discontinued operations and adds new disclosures. The new guidance defines a discontinued operation as a disposal that “represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results.” The standard is required to be adopted by public business entities in annual periods beginning on or after December 15, 2014, and interim periods within those annual periods. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued or available for issuance. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position and results of operations. | |||||||||||||
In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”. This ASU supercedes the revenue recognition requirements in ASC Topic 605-Revenue Recognition and most industry-specific guidance throughout the Codification. The standard requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This ASU should be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the ASU recognized at the date of initial application. In accordance with ASU No. 2014-09 issued in May 2014, for a public entity, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. For all other entities (nonpublic entities), the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018. At a meeting of the FASB on April 1, 2015, the FASB tentatively decided to defer for one year the effective date of this new revenue standard for public and nonpublic entities reporting under US GAAP. The Board also tentatively decided to permit entities to early adopt the standard. The tentative decisions will be exposed in an upcoming proposed ASU with a 30-day comment period. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position and results of operations. | |||||||||||||
In June 2014, the FASB issued ASU No. 2014-12, “Compensation-Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved after the Requisite Service Period”. This ASU requires that a performance target that affects vesting and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. For all entities, the amendments in this ASU are effective for annual periods beginning after December 15, 2015, including interim periods within that reporting period. Earlier adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position or results of operations. | |||||||||||||
In January 2015, the FASB issued ASU No. 2015-01, “Income Statement -Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items”. This ASU eliminates from GAAP the concept of extraordinary items. The Board concluded that the amendments in this ASU will not result in a loss of information because although the amendments will eliminate the requirements in Subtopic 225-20 for reporting entities to consider whether an underlying event or transaction is extraordinary, the presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position or results of operations. | |||||||||||||
In February 2015, the FASB issued ASU No. 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis”. The amendment in this ASU changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. Under the amendments in this ASU, all reporting entities are within the scope of Subtopic 810-10, Consolidation—Overall, including limited partnerships and similar legal entities, unless a scope exception applies. The presumption that a general partner controls a limited partnership has been eliminated. In addition, fees paid to decision makers that meet certain conditions no longer cause decision makers to consolidate VIEs in certain instances. The amendments place more emphasis in the consolidation evaluation on variable interests other than fee arrangements such as principal investment risk (for example, debt or equity interests), guarantees of the value of the assets or liabilities of the VIE, written put options on the assets of the VIE, or similar obligations, including some liquidity commitments or agreements (explicit or implicit). Additionally, the amendments in this ASU reduce the extent to which related party arrangements cause an entity to be considered a primary beneficiary. Overall, the amendments in this ASU are an improvement to current GAAP because they simplify the Codification and reduce the number of consolidation models through the elimination of the indefinite deferral of Statement 167 and because they place more emphasis on risk of loss when determining a controlling financial interest. The amendments in this ASU are effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2016, and for interim periods within fiscal years beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. A reporting entity may apply the amendments in this Update using a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption. A reporting entity also may apply the amendments retrospectively. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position or results of operations. | |||||||||||||
Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption. | |||||||||||||
Note_4_Term_Deposit
Note 4 - Term Deposit | 12 Months Ended | |
Dec. 31, 2014 | ||
Term Deposit [Abstract] | ||
Term Deposit [Text Block] | 4. | Term deposit |
Term deposit as of December 31, 2014 and 2013 represented the amount of cash placed as a term deposit by one of the Company’s operating VIEs in a major financial institution in China, which management believes is of high credit quality. The term deposit as of December 31, 2013 matured on July 5, 2014 and was extended to July 7, 2015 with an interest rate of 3.3% per annual. | ||
Note_5_Accounts_Receivable_Net
Note 5 - Accounts Receivable, Net | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accounts Receivable Disclosure [Abstract] | |||||||||
Accounts Receivable Disclosure [Text Block] | 5. | Accounts receivable, net | |||||||
As of December 31, | |||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
Accounts receivable | 5,429 | 13,358 | |||||||
Allowance for doubtful debts | (3,022 | ) | (5,685 | ) | |||||
Accounts receivable, net | 2,407 | 7,673 | |||||||
All of the accounts receivable are non-interest bearing. Based on the assessment of the collectability of the accounts receivable as of December 31, 2014 and 2013, the Company provided approximately US$3,022,000 and US$5,685,000 allowance for doubtful accounts, respectively, which were related to the accounts receivable of the Company’s internet advertising and TV advertising business segment with an aging over six months. For the year ended December 31, 2014, approximately US$1,023,000 allowance for doubtful accounts was reversed. For the year ended December 31, 2013, approximately US$1,910,000 allowance for doubtful accounts was provided. For the year ended December 31, 2014, the decrease in accounts receivable and the related allowance of approximately US$2.7 million and US$1.6 million, respectively, was due to disposal of a VIE during the period. | |||||||||
Note_6_Other_Receivables_Net
Note 6 - Other Receivables, Net | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Receivables [Abstract] | |||||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 6. | Other receivables, net | |||||||
As of December 31, | |||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
Short-term loan made for marketing campaign | 65 | 1,636 | |||||||
Short-term loan to unrelated entities | - | 790 | |||||||
Term deposit interest receivable | 56 | 57 | |||||||
Receivable on disposal of fixed assets | - | 98 | |||||||
Receivables on disposal of VIEs | - | 1,611 | |||||||
Staff advances for normal business purpose | 73 | 107 | |||||||
TV advertisement deposit and prepayment receivable | 8,034 | - | |||||||
Overdue deposits | 1,020 | 968 | |||||||
Allowance for doubtful debts | (856 | ) | (968 | ) | |||||
Other receivables, net | 8,392 | 4,299 | |||||||
Short-term loan made for marketing campaign: for one of the major marketing campaigns, the Company made a marketing-related loan of RMB25,000,000 (approximately US$4.1 million) to a TV series of 36 episodes. By participating in this TV series, the Company’s logo is shown during the credits at the end of each episode and also shown as a separate card during the closing before the credit screen. This loan has been fully collected by the Company during 2015. | |||||||||
Short-term loan to unrelated entities as of December 31, 2013 represented temporary loan advanced to unrelated entities, which had been fully collected by the Company as of December 31, 2014. | |||||||||
Receivables on disposal of VIEs as of December 31, 2013 represented the cash consideration to be received from the successors of shareholders of two of the Company’s former VIEs, which were disposed in November 2013. As of December 31, 2014, these receivables had been fully collected by the Company. | |||||||||
TV advertisement deposit and prepayment receivable was previously recorded in prepayment and deposit to suppliers account, which represented deposit and prepayment made to an agent of one of the provincial satellite TV stations partnered with the Company. The Company had decided to terminate its cooperation with this TV station and its agent upon expiration of the 2014 contact on December 31, 2014. In accordance with the agreement between the Company and the agent, the amount will be refunded to the Company within 2015. As of the date hereof, the Company has received approximately US$0.2 million refund of this amount. | |||||||||
For advertising resources purchase contracts signed by the Company with its resources providers, the Company was required to make deposits, which were either applied to the contract amounts that were needed to be paid with the consent of the counterparty or to be refunded to the Company of the remaining balance upon expiration of the cooperation. Overdue deposits represented the portion of the contractual deposits, which related advertising resources purchase contracts had been completed as of each of the reporting dates with no further cooperation. Based on the assessment of the collectability of these overdue deposits as of December 31, 2014 and 2013, the Company provided approximately US$856,000 and US$968,000 allowance for doubtful accounts, respectively, which was related to the deposits of its internet advertising and TV advertising business segment. For the years ended December 31, 2014 and 2013, approximately US$163,000 and US$793,000 allowance for doubtful accounts was provided, respectively. For the year ended December 31, 2014, balances of overdue deposits and the related allowance carried forward from last year decreased by both approximately US$0.27 million, as a result of disposal of a VIE during the period. | |||||||||
Note_7_Prepayments_and_Deposit
Note 7 - Prepayments and Deposit to Suppliers | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Prepayments And Deposits To Suppliers Disclosure [Abstract] | |||||||||
Prepayments And Deposits To Suppliers Disclosure [Text Block] | 7. | Prepayments and deposit to suppliers | |||||||
As of December 31, | |||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
Deposits to internet resources and TV advertisement providers | 3,575 | 8,907 | |||||||
Prepayments to internet resources and TV advertisement providers | 4,451 | 5,292 | |||||||
Other deposits and prepayments | 66 | 493 | |||||||
8,092 | 14,692 | ||||||||
In order to provide advertising and marketing services, the Company partners with TV stations or its agents to obtain time slots for resale through broadcast advertisements to advertise brands, business information, products and services of its clients. The Company also purchases internet resources from large internet search engines to attract more internet traffic to its advertising portals and provide value-added services to its clients. | |||||||||
Deposits to TV advertisement and internet resources providers are paid as contractual deposits to the Company’s resources and services suppliers. | |||||||||
As of December 31, 2014, deposit to suppliers was primarily the contractual deposits of approximately US$3.1 million to two of the Company’s largest internet resources suppliers. The approximately US$8 million deposit for the purchasing of time slots in a TV station as of December 31, 2013 was transferred to other receivables account upon termination of cooperation with this TV station on December 31, 2014. | |||||||||
According to the contracts signed between the Company and its suppliers, the Company is normally required to pay the contract amounts in advance. These prepayments will be transferred to cost of sales when the related services are provided. | |||||||||
As of December 31, 2014, prepayment to suppliers consisted of approximately US$2.5 million prepayments to the Company’s internet resources suppliers and approximately US$2 million prepayment for the purchasing of TV time slots. This US$2 million advanced payment was carried forward from previous years and was paid to a TV station which had been partnered with the Company for over five years. In response to the restrictions on TV shopping infomercial implemented by the related government authorities, which resulted in the decrease in the Company’s TV advertisement revenue, the Company discussed with the TV station possible alternatives of applying the balance of the advanced payment, as the amount was unlikely to be refunded to the Company, due to internal administrative policies of the TV station. The TV station and the Company agreed that the unconsumed advanced payment balance can be consumed by any third parties designated by the Company and approved by the TV station, who will broadcast advertisements or other similar TV programs using the balance of available time slots, and the Company will directly collect the amounts from the third parties for the time slots they utilized. The Company expects that the remaining advanced payment balance will be fully utilized within the next twelve months or by December 31, 2015. | |||||||||
Note_8_Due_from_Related_Partie
Note 8 - Due from Related Parties | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Due From Related Parties Disclosure [Abstract] | |||||||||
Due From Related Parties Disclosure [Text Block] | 8 | Due from related parties | |||||||
As of December 31, | |||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
Beijing Fengshangyinli Technology Co., Ltd. | - | 36 | |||||||
Beijing Saimeiwei Food Equipment Technology Co., Ltd. | 51 | 295 | |||||||
Beijing Telijie Century Environmental Technology Co., Ltd. | - | 171 | |||||||
51 | 502 | ||||||||
Related parties of the Company represented direct or indirect unconsolidated investees of the Company or entities that are directly or indirectly owned by Mr. Handong Cheng or Mr. Xuanfu Liu, the owners of the Company’s PRC VIEs, Business Opportunities Online and Beijing CNET Online before the Offshore Restructuring. The Company provides advertising and marketing services to these related parties in its normal course of business on the same terms as those provided to its unrelated clients. Due from related parties represented the outstanding receivables for the advertising and marketing services that the Company provided to these related parties as of each reporting date. | |||||||||
Note_9_Longterm_Investments
Note 9 - Long-term Investments | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||
Equity Method Investments and Joint Ventures Disclosure [Text Block] | 9 | Long-term investments | |||||||||||
As of December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
US$(’000) | US$(’000) | ||||||||||||
Equity method investments: | |||||||||||||
Investment in equity method investees | 806 | 760 | |||||||||||
Advance to equity method investees | 85 | 85 | |||||||||||
891 | 845 | ||||||||||||
Cost method investments: | |||||||||||||
Investment in cost method investees | 18 | - | |||||||||||
Total long-term investments | 909 | 845 | |||||||||||
As of December 31, 2014 and 2013, the Company beneficially owned 23.18% and 25.5% equity interest in Shenzhen Mingshan and Zhao Shang Ke Hubei, respectively. The Company accounts for its investments in these companies under equity method of accounting. The following table summarizes the movement of the investments in equity method investees for the two years then ended December 31, 2014: | |||||||||||||
Shenzhen | Zhao Shang | Total | |||||||||||
Mingshan | Ke Hubei | ||||||||||||
US$(’000) | US$(’000) | US$(’000) | |||||||||||
Balance as of December 31, 2012 | 492 | 467 | 959 | ||||||||||
Share of losses in equity method investees | (40 | ) | (143 | ) | (183 | ) | |||||||
Advance to equity method investees | - | 41 | 41 | ||||||||||
Exchange translation adjustment | 14 | 14 | 28 | ||||||||||
Balance as of December 31, 2013 | 466 | 379 | 845 | ||||||||||
Share of (loss)/income in equity method investees | (4 | ) | 51 | 47 | |||||||||
Exchange translation adjustment | (1 | ) | - | (1 | ) | ||||||||
Balance as of December 31, 2014 | 461 | 430 | 891 | ||||||||||
For the years ended December 31, 2014 and 2013, the Company recognized its pro-rata shares of loss in Shenzhen Mingshan of approximately US$4,000 and US$40,000, respectively. | |||||||||||||
For the years ended December 31, 2014 and 2013, the Company recognized its pro-rata share of income in Zhao Shang Ke Hubei of approximately US$51,000 and its pro-rata share of loss in Zhao Shang Ke Hubei of US$143,000, respectively. | |||||||||||||
For the year ended December 31, 2014, the Company invested approximately US$18,000 in Beijing Saturday, a company incorporated in the PRC, which is primarily engaged in children’s playground operation management and franchise business. The Company beneficially owns 10% of Beijing Saturday’s equity interest and accounts for this investment under cost method. For the year ended December 31, 2014, the Company did not receive any distribution of earnings from Beijing Saturday. | |||||||||||||
Note_10_Property_and_Equipment
Note 10 - Property and Equipment, Net | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, Plant and Equipment Disclosure [Text Block] | 10 | Property and equipment, net | |||||||
As of December 31, | |||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
Leasehold improvement | 180 | - | |||||||
Vehicles | 890 | 865 | |||||||
Office equipment | 1,415 | 1,433 | |||||||
Electronic devices | 1,244 | 1,245 | |||||||
Property and equipment, cost | 3,729 | 3,543 | |||||||
Less: accumulated depreciation | (2,786 | ) | (2,486 | ) | |||||
Property and equipment, net | 943 | 1,057 | |||||||
Depreciation expenses in the aggregate for the years ended December 31, 2014 and 2013 were approximately US$385,000 and US$561,000, respectively. | |||||||||
Note_11_Intangible_Assets_Net
Note 11 - Intangible Assets, Net | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Disclosure Text Block [Abstract] | |||||||||
Intangible Assets Disclosure [Text Block] | 11 | Intangible assets, net | |||||||
As of December 31, | |||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
Intangible assets not subject to amortization: | |||||||||
Domain name | 1,579 | 1,580 | |||||||
Intangible assets subject to amortization: | |||||||||
Contract backlog | 202 | 203 | |||||||
Customer relationship | 3,545 | 3,548 | |||||||
Non-compete agreements | 1,402 | 1,403 | |||||||
Software technologies | 335 | 335 | |||||||
SMEs operation management applications | 5,277 | - | |||||||
Cloud-computing based software platforms | 1,517 | 1,518 | |||||||
Other computer software | 78 | 78 | |||||||
Intangible assets, cost | 13,935 | 8,665 | |||||||
Less: accumulated amortization | (3,704 | ) | (2,650 | ) | |||||
Less: accumulated impairment losses | (993 | ) | - | ||||||
Intangible assets, net | 9,238 | 6,015 | |||||||
Amortization expenses in aggregate for the years ended December 31, 2014 and 2013 were approximately US$1,052,000 and US$1,056,000, respectively. | |||||||||
For further development of comprehensive value-added services to its clients, which are mostly SMEs, the Company made deposit for the purchasing of SMEs operation management applications from an unrelated counter party in mid 2013 (See Note 12). Through several rounds of software functional requirements discussion and trial testing, in December 2014, the Company entered into a formal purchase agreement of RMB32.29 million (approximately US$5 million) with the counter party for the purchasing of these software applications. As of December 31, 2014, the Company had completed the internal trail test and the related handover formalities of the software applications. The Company is currently arranging free-trail of these applications by a certain group of its clients and anticipates to formally launching the related services in the second half of 2015. | |||||||||
The Company disposed its trade name upon disposal of two of its former VIEs in 2013 with an approximatelyUS$0.32 million of loss recognized accordingly. | |||||||||
As discussed in Note 3 (r), the Company performed an impairment analysis on its intangible assets as of December 31, 2014 with the assistance of an independent valuation firm and determined impairment exist for customer relationship and non-compete agreements. The fair value of intangible assets was determined using Multi-period Excess Earning Method (the “MPEEM method”). As an application of income approach, the MPEEM method is a widely used valuation method. It determines the fair value of the target asset as the present value of the cash flows attributable to it. As the target asset will generally earn cash flows through interaction with other tangible and intangible assets, the contributions to cash flows of those other assets must be removed. Those assets are referred as contributory assets which are defined as all assets that are utilized in the realization of expected future cash flows for the target asset (See Note 3 (r) for significant unobservable internally-developed inputs used in the fair value measurement). | |||||||||
For the years ended December 31, 2014, the Company provided approximately US$510,000 and US$479,000 impairment losses, which were associated with customer relationship and non-compete agreements, respectively. For the year ended December 31, 2013, no impairment loss was recognized for intangible assets (See Note 26 for segment information of intangible assets impairment losses). | |||||||||
Based on the net carrying value of the finite-lived intangible assets recorded as of December 31, 2014, and assuming no further subsequent impairment of the underlying intangible assets, the estimated future amortization expenses is approximately US$1,297,000 per annual for the years ended December 31, 2015, approximately US$1,291,000 for the year ended December 31, 2016, approximately US$789,000 for the year ended December 31, 2017, approximately US$737,000 for the year ended December 31, 2018 and approximately US$679,000 for the year ended December 31, 2019. | |||||||||
Note_12_Deposit_and_Prepayment
Note 12 - Deposit and Prepayment for Purchasing of Software Technology | 12 Months Ended | |
Dec. 31, 2014 | ||
Deposits For Purchasing Assets [Abstract] | ||
Deposits For Purchasing Assets [Text Block] | 12 | Deposit and prepayment for purchasing of software technology |
The Company made a deposit of RMB15 million (approximately US$2.45 million) in mid 2013 for the purchasing of software technology related to operation management applications for SMEs. As of December 31, 2014, the Company had completed the internal trail test and the related handover formalities of the software applications. Therefore, as part of the purchase price, the deposit amount was transferred to intangible assets account accordingly. | ||
In October 2013, the Company entered into a contract to engage an unrelated third party to develop several software systems related to internet environment monitoring, network security and system optimization to enhance the overall safety and efficiency of the Company’s network system. The total contract amount was RMB13 million (approximately US$2 million). The Company has paid a first installment of RMB5.2 million (approximately US$0.85 million). As of the date hereof, the Company is trial testing these software applications. The transaction as contemplated under the contract is expected to be consummated in the first half of 2015. | ||
Note_13_Goodwill
Note 13 - Goodwill | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Disclosure Text Block Supplement [Abstract] | |||||
Goodwill Disclosure [Text Block] | 13 | Goodwill | |||
Amount | |||||
US$(’000) | |||||
Balance as of December 31, 2012 | 11,083 | ||||
Exchange translation adjustment | 367 | ||||
Balance as of December 31, 2013 | 11,450 | ||||
Goodwill impairment losses | (4,668 | ) | |||
Exchange translation adjustment | (10 | ) | |||
Balance as of December 31, 2014 | 6,772 | ||||
The Company’s goodwill arose as a result of various business combinations consummated in 2011. The Company’s respective goodwill is directly attributable to its internet advertising reporting unit and brand management and sales channel building reporting unit. The Company performed annual impairment test on goodwill in accordance with ASC 350 “Intangibles-Goodwill and Others”, subtopic 20. As previously discussed in Note 3 (r), the Company determined the existence of goodwill impairment through the qualitative test on goodwill impairment. The Company then performed the quantitative test on goodwill impairment as of December 31, 2014 with the assistance of an independent valuation firm and determined goodwill impairment exist for both reporting units. The fair value of reporting units was determined using the income approach by a discounted cash flow analysis. The discounted cash flow method is premised on the concept that the value is based on the present value of all future cash flows by applying an appropriate discount rate. The future benefits generating cash flows consist of current income distributions, appreciation in the asset, or a combination of both. In essence, this valuation method requires a forecast to be made of cash flow, going out far enough into the future until an assumed stabilization occurs for the assets being appraised. This methodology assumes that the forecasted income/cash flow will not necessarily be stable in the near term but will stabilize in the future (See Note 3 (r) for significant unobservable internally-developed inputs used in the fair value measurement). | |||||
For the years ended December 31, 2014 and 2013, the Company recorded US$4,650,000 and US$nil impairment losses associated with goodwill, respectively (See Note 26 for segment information of goodwill impairment losses). | |||||
Note_14_Shortterm_Bank_Loan
Note 14 - Short-term Bank Loan | 12 Months Ended | |
Dec. 31, 2014 | ||
Disclosure Text Block [Abstract] | ||
Short-term Debt [Text Block] | 14 | Short-term bank loan |
Short-term bank loan as of December 31, 2014 and 2013 represented a short-term bank loan of approximately RMB5.0 million (approximately US$0.82 million) borrowed by one of the Company’s VIEs from a major financial institution in China to supplement its short-term working capital needs. The short-term loan as of December 31, 2013 matured on July 31, 2014 and was renewed on September 30, 2014, which will mature on September 29, 2015. The interest rate of the current short-term bank loan is a floating lending rate, which is 40% over the benchmark rate of the People’s Bank of China (the “PBOC”). As of December 31, 2014, the interest rate of the short-term loan was 8.4%. | ||
Note_15_Accrued_Payroll_and_Ot
Note 15 - Accrued Payroll and Other Accruals | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 15 | Accrued payroll and other accruals | |||||||
As of December 31, | |||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
Accrued payroll and staff welfare | 388 | 382 | |||||||
Accrued operating expenses | 197 | 294 | |||||||
585 | 676 | ||||||||
Note_16_Due_to_Noncontrolling_
Note 16 - Due to Noncontrolling Interest of VIE | 12 Months Ended | |
Dec. 31, 2014 | ||
Due To Noncontrolling Interest Of VIE [Abstract] | ||
Due To Noncontrolling Interest Of VIE [Text Block] | 16 | Due to noncontrolling interest of VIE |
As of December 31, 2014, due to noncontrolling interest of VIE represented the outstanding balance of the short-term loan borrowed by one of the Company’s VIEs from its noncontrolling interest to supplement the short-term working capital needs of this VIE. The short-term loan is unsecured, interest free and is payable on demand. The Company expects to repay the balance within fiscal 2015. | ||
Note_17_Payable_for_Purchasing
Note 17 - Payable for Purchasing of Software Technology | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounts Payable And Accrued Liabilities For Software Disclosure [Abstract] | ||
Accounts Payable And Accrued Liabilities For Software Disclosure [Text Block] | 17 | Payable for purchasing of software technology |
Payable for purchasing of software technology as of December 31, 2014 represented the outstanding balance payment of approximately RMB17.29 million (approximately US$2.8 million) for purchasing of software technology, which transaction consummated in December 2014. As of the date hereof, the Company has made additional payment of RMB7,000,000 (approximately US$1.1 million) subsequently to the counter party. In accordance with the agreement signed between the Company and the counter party, the remaining unpaid balance will be paid before July 31, 2015. | ||
Note_18_Taxation
Note 18 - Taxation | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Income Tax Disclosure [Abstract] | |||||||||
Income Tax Disclosure [Text Block] | 18 | Taxation | |||||||
1) | Income tax | ||||||||
The entities within the Company file separate tax returns in the respective tax jurisdictions in which they operate. | |||||||||
i). The Company is incorporated in the state of Nevada. Under the current law of Nevada, the Company is not subject to state corporate income tax. Following the Share Exchange, the Company became a holding company and does not conduct any substantial operations of its own. No provision for federal corporate income tax has been made in the financial statements as the Company has no assessable profits for the year ended December 31, 2014, or any prior periods. The Company does not provide for U.S. taxes or foreign withholding taxes on undistributed earnings from its non-U.S. subsidiaries because such earnings are intended to be reinvested indefinitely. If undistributed earnings were distributed, foreign tax credits could become available under current law to reduce the resulting U.S. income tax liability. | |||||||||
ii). China Net BVI was incorporated in the British Virgin Islands (“BVI”). Under the current law of the BVI, China Net BVI is not subject to tax on income or capital gains. Additionally, upon payments of dividends by China Net BVI to its shareholders, no BVI withholding tax will be imposed. | |||||||||
iii). China Net HK was incorporated in Hong Kong and does not conduct any substantial operations of its own. No provision for Hong Kong profits tax has been made in the financial statements as China Net HK has no assessable profits for the year ended December 31, 2014 or any prior periods. Additionally, upon payments of dividends by China Net HK to its shareholders, no Hong Kong withholding tax will be imposed. | |||||||||
iv). The Company’s PRC operating subsidiary and VIEs, being incorporated in the PRC, are governed by the income tax law of the PRC and is subject to PRC enterprise income tax (“EIT”). The EIT rate of PRC is 25%, which applies to both domestic and foreign invested enterprises. | |||||||||
● | Rise King WFOE was a software company qualified by the related PRC governmental authorities and was approved by the local tax authorities of Beijing, the PRC, to be entitled to a two-year EIT exemption for fiscal 2009 and 2010, and a 50% reduction of its applicable EIT rate, which was 25% to 12.5% of its taxable income for the succeeding three years through fiscal 2013. The applicable income tax rate for Rise King WFOE is 25% after fiscal 2013. Therefore, for the years ended December 31, 2014 and 2013, the applicable income tax rate for Rise King WFOE was 25% and 12.5%, respectively. | ||||||||
● | In July 2012, Business Opportunity Online was approved by the related PRC governmental authorities as a High and New Technology Enterprise under the current EIT law, and was approved by the local tax authorities of Beijing, the PRC, to be entitled to a favorable statutory tax rate of 15% until December 31, 2014. Therefore, the applicable income tax rate of Business Opportunity Online was both 15% for the years ended December 31, 2014 and 2013. After fiscal year 2014, the applicable income tax rate for Business Opportunity Online will be 25% under the current EIT law of PRC unless the entity regains the qualification as a High and New Technology Enterprise in fiscal 2015. The Company believes that more likely than not Business Opportunity Online will be able to regain its qualification as a High and New Technology Enterprise and continue to enjoy the favorable statutory tax rate of 15% after fiscal 2014. | ||||||||
● | Business Opportunity Online Hubei was approved by the related PRC governmental authorities to be qualified as a software company and was approved by the local tax authorities of Xiaogan City, Hubei province, the PRC, to be entitled to a EIT exemption for fiscal 2012 and a 50% reduction of its applicable EIT rate which is 25% to 12.5% of its taxable income for the succeeding three years through fiscal 2015, as its first profitable year was determined as fiscal 2011 instead of fiscal 2012 in August 2013 by the local tax authorities of Xiaogan City, Hubei province. Therefore, the applicable income tax rate for Business Opportunity Online Hubei was both 12.5% for the years ended December 31, 2014 and 2013. After fiscal 2015, the applicable income tax rate for Business Opportunity Online Hubei will be 25% under the current EIT law of PRC. | ||||||||
● | The applicable income tax rate for other PRC operating entities of the Company is 25% for the years ended December 31, 2014 and 2013. | ||||||||
● | The current EIT law also imposed a 10% withholding income tax for dividends distributed by a foreign invested enterprise to its immediate holding company outside China. A lower withholding tax rate will be applied if there is a tax treaty arrangement between mainland China and the jurisdiction of the foreign holding company. Holding companies in Hong Kong, for example, will be subject to a 5% withholding tax rate. Rise King WFOE is invested by immediate holding company in Hong Kong and will be entitled to the 5% preferential withholding tax rate upon distribution of the dividends to its immediate holding company. | ||||||||
For the years ended December 31, 2014 and 2013, all of the preferential income tax treatments enjoyed by the Company’s PRC subsidiary and VIEs were based on the current applicable laws and regulations of the PRC and approved by the related government regulatory authorities and local tax authorities where the Company’s respective PRC subsidiary and VIEs operate in. Rise King WFOE, Business Opportunity Online and Business Opportunity Online Hubei were most affected by these preferential income tax treatments within the structure of the Company. The preferential income tax treatments are subject to change in accordance with the PRC government economic development policies and regulations. These preferential income tax treatments are primarily determined by the regulation and policies of the PRC government in the context of the overall economic policy and strategy. As a result, the uncertainty of theses preferential income tax treatments are subject to, but not limited to, the PRC government policy on supporting any specific industry’s development under the outlook and strategy of overall macroeconomic development. | |||||||||
2) | Turnover taxes and the relevant surcharges | ||||||||
Service revenues provided by the Company’s PRC operating subsidiary and VIEs were subject to Value Added Tax (“VAT”). VAT rate for provision of modern services (other than lease of corporeal movables) is 6% and for small scale taxpayer, 3%. Therefore, for the years ended December 31, 2014 and 2013, the Company’s service revenues are subject to VAT at a rate of 6%, after deducting the VAT paid for the services purchased from suppliers, or at a rate of 3% without any deduction of VAT paid for the services purchased from suppliers. The surcharges of the VAT is 12%-14% of the VAT, depending on which tax jurisdiction the Company’s PRC operating subsidiary and VIE operate in. | |||||||||
As of December 31, 2014 and 2013, taxes payable consists of: | |||||||||
As of December 31, | |||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
Turnover tax and surcharge payable | 1,173 | 2,343 | |||||||
Enterprise income tax payable | 2,159 | 4,686 | |||||||
3,332 | 7,029 | ||||||||
For the year ended December 31, 2014, the decrease in taxes payable was primarily due to disposal of a VIE during the period. | |||||||||
A reconciliation of the income tax benefit/(expense) determined at the U.S. federal corporate income tax rate to the Company’s effective income tax benefit/(expense) is as follows: | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
Pre-tax (loss)/income | (14,592 | ) | 716 | ||||||
U.S. federal rate | 35 | % | 35 | % | |||||
Income tax benefit/(expense) computed at U.S. federal rate | 5,107 | (251 | ) | ||||||
Reconciling items: | |||||||||
Rate differential for domestic earnings | (927 | ) | 119 | ||||||
Preferential tax treatments and tax holiday effects | (176 | ) | 754 | ||||||
Change in tax rate for loss recognized as deferred tax assets | - | 144 | |||||||
Valuation allowance on deferred tax assets | (2,281 | ) | (1,426 | ) | |||||
Goodwill impairment loss | (1,162 | ) | - | ||||||
Loss not recognized as deferred tax assets | - | (2 | ) | ||||||
Other non-taxable income/(non-deductible expenses) | 92 | (154 | ) | ||||||
Effective income tax benefit/(expense) | 653 | (816 | ) | ||||||
For the years ended December 31, 2014 and 2013, the Company’s income tax benefit/(expense) consisted of: | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
Current-PRC | (197 | ) | (1,302 | ) | |||||
Deferred-PRC | 850 | 486 | |||||||
653 | (816 | ) | |||||||
The Company’s deferred tax liabilities at December 31, 2014 and changes for the two years then ended were as follows: | |||||||||
Amount | |||||||||
US$(’000) | |||||||||
Balance as of December 31, 2012 | 1,689 | ||||||||
Reversal during the period | (306 | ) | |||||||
Exchange translation adjustment | 56 | ||||||||
Balance as of December 31, 2013 | 1,439 | ||||||||
Reversal during the period | (474 | ) | |||||||
Exchange translation adjustment | (1 | ) | |||||||
Balance as of December 31, 2014 | 964 | ||||||||
Deferred tax liabilities arose on the recognition of the identifiable intangible assets acquired from acquisition transactions and deconsolidation of subsidiaries consummated in previous years. Reversal for the years ended December 31, 2014 and 2013 of both approximately US$226,000 were due to amortization of the acquired intangible assets. Additional reversal of approximately US$248,000 and US$80,000 for the years ended December 31, 2014 and 2013, respectively, was due to provision of impairment losses of intangible assets in 2014 and disposal of trade name upon disposal of two of the Company’s former VIEs in 2013, respectively. | |||||||||
The Company’s deferred tax assets at December 31, 2014 and December 31, 2013 were as follows: | |||||||||
As of December 31, | |||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
Tax effect of net operating losses carried forward | 6,655 | 3,899 | |||||||
Bad debts provision | 943 | 1,594 | |||||||
Valuation allowance | (6,385 | ) | (4,581 | ) | |||||
1,213 | 912 | ||||||||
As of December 31, | |||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
Deferred tax assets reclassified as current asset | 176 | 153 | |||||||
Deferred tax assets reclassified as non-current asset | 1,037 | 759 | |||||||
1,213 | 912 | ||||||||
The net operating losses carried forward incurred by the Company (excluding its PRC operating subsidiary and VIEs) were approximately US$12,161,000 and US$6,840,000 at December 31, 2014 and 2013, respectively, which loss carry forwards gradually expire over time, the last of which expires in 2034. A full valuation allowance has been recorded because it is considered more likely than not that the deferred tax assets will not be realized through sufficient future earnings of the entity to which the operating losses relate. | |||||||||
The net operating losses carried forward (excluding bad debts provision and non-deductible expenses) incurred by the Company’s PRC subsidiary and VIEs were approximately US$12,401,000 and US$7,253,000 at December 31, 2014 and 2013, respectively, which loss carry forwards gradually expire over time, the last of which expires in 2019. The related deferred tax assets was calculated based on the respective net operating losses incurred by each of the PRC subsidiary and VIEs and the respective corresponding enacted tax rate that will be in effect in the period in which the losses are expected to be utilized. The Company recorded approximately US$590,000 and US$585,000 net valuation allowance for the years ended December 31, 2014 and 2013, respectively, because it is considered more likely than not that this portion of the deferred tax assets will not be realized through sufficient future earnings of the entities to which the operating losses relate. | |||||||||
Full valuation allowance to bad debts provision related deferred tax assets were recorded because it is considered more likely than not that this portion of deferred tax assets will not be realized through bad debts verification by the local tax authorities where the PRC subsidiary and VIEs operate in. | |||||||||
The Company’s non-current portion of deferred tax assets and deferred tax liabilities were attributable to different tax-paying components of the entity, which were under different tax jurisdictions. Therefore, in accordance with ASC Topic 740 “Income taxes”, the non-current portion of deferred tax assets and deferred tax liabilities were presented separately in the Company’s balance sheets. | |||||||||
The tax authority of the PRC government conducts periodic and ad hoc tax filing reviews on business enterprises operating in the PRC after those enterprises had completed their relevant tax filings, hence the Company’s tax filings may not be finalized. It is therefore uncertain as to whether the PRC tax authority may take different views about the Company’s tax filings which may lead to additional tax liabilities (See Note 3 (x) for the related provisions in accordance with the PRC Tax Administration and Collection Law). | |||||||||
Note_19_Longterm_Borrowing_fro
Note 19 - Long-term Borrowing from Director | 12 Months Ended | |
Dec. 31, 2014 | ||
Long Term Borrowing From Director Disclosure [Abstract] | ||
Long Term Borrowing From Director Disclosure [Text Block] | 19 | Long-term borrowing from director |
Long-term borrowing from director is a non-interest bearing loan from a director of the Company relating to the original paid-in capital contribution in the Company’s wholly-owned subsidiary Rise King WFOE, which is not expected to be repaid within one year. | ||
Note_20_Warrants
Note 20 - Warrants | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Warrants Disclosure [Abstract] | |||||||||||||||||||||||||
Warrants Disclosure [Text Block] | 20 | Warrants | |||||||||||||||||||||||
The Company issued three-year term Series A-1 warrants, five-year term Series A-2 warrants and placement agent warrants in its August 2009 Financing. As of December 31, 2014, all of the warrants issued in August 2009 Financing had expired. | |||||||||||||||||||||||||
Warrants issued and outstanding at December 31, 2014 and changes for the two years then ended are as follows: | |||||||||||||||||||||||||
Warrants Outstanding | Warrants Exercisable | ||||||||||||||||||||||||
Number of | Weighted | Average | Number of | Weighted | Average | ||||||||||||||||||||
underlying | Average | Remaining | underlying | Average | Remaining | ||||||||||||||||||||
shares | Exercise | Contractual | shares | Exercise | Contractual | ||||||||||||||||||||
Price | Life (years) | Price | Life (years) | ||||||||||||||||||||||
Balance, December 31, 2012 | 2,363,456 | $ | 3.52 | 1.63 | 2,363,456 | $ | 3.52 | 1.63 | |||||||||||||||||
Granted / Vested | - | - | |||||||||||||||||||||||
Forfeited | - | - | |||||||||||||||||||||||
Exercised | - | - | |||||||||||||||||||||||
Expired | - | - | |||||||||||||||||||||||
Balance, December 31, 2013 | 2,363,456 | $ | 3.52 | 0.63 | 2,363,456 | $ | 3.52 | 0.63 | |||||||||||||||||
Granted / Vested | - | - | |||||||||||||||||||||||
Forfeited | - | - | |||||||||||||||||||||||
Exercised | - | - | |||||||||||||||||||||||
Expired | (2,363,456 | ) | (2,363,456 | ) | |||||||||||||||||||||
Balance, December 31, 2014 | - | - | |||||||||||||||||||||||
Note_21_Restricted_Net_Assets
Note 21 - Restricted Net Assets | 12 Months Ended | ||
Dec. 31, 2014 | |||
Disclosure Text Block Supplement [Abstract] | |||
Restricted Assets Disclosure [Text Block] | 21 | Restricted Net Assets | |
As most of the Company’s operations are conducted through its PRC subsidiary and VIEs, the Company’s ability to pay dividends is primarily dependent on receiving distributions of funds from its PRC subsidiary and VIEs. Relevant PRC statutory laws and regulations permit payments of dividends by its PRC subsidiary and VIEs only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations and after it has met the PRC requirements for appropriation to statutory reserves. Paid in capital of the PRC subsidiary and VIEs included in the Company’s consolidated net assets are also non-distributable for dividend purposes. | |||
In accordance with the PRC regulations on Enterprises with Foreign Investment, a WFOE established in the PRC is required to provide certain statutory reserves, namely general reserve fund, the enterprise expansion fund and staff welfare and bonus fund which are appropriated from net profit as reported in the enterprise’s PRC statutory accounts. A WFOE is required to allocate at least 10% of its annual after-tax profit to the general reserve until such reserve has reached 50% of its registered capital based on the enterprise’s PRC statutory accounts. Appropriations to the enterprise expansion fund and staff welfare and bonus fund are at the discretion of the board of directors. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. Rise King WFOE is subject to the above mandated restrictions on distributable profits. Additionally, in accordance with the Company Law of the PRC, a domestic enterprise is required to provide a statutory common reserve of at least 10% of its annual after-tax profit until such reserve has reached 50% of its registered capital based on the enterprise’s PRC statutory accounts. A domestic enterprise is also required to provide for a discretionary surplus reserve, at the discretion of the board of directors. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. All of the Company’s PRC VIEs are subject to the above mandated restrictions on distributable profits. | |||
As a result of these PRC laws and regulations, the Company’s PRC subsidiary and VIEs are restricted in their ability to transfer a portion of their net assets to the Company. As of December 31, 2014 and 2013, net assets restricted in the aggregate, which include paid-in capital and statutory reserve funds of the Company’s PRC subsidiary and VIEs that are included in the Company’s consolidated net assets, was both approximately US$7.3 million. | |||
The current PRC Enterprise Income Tax (“EIT”) Law also imposed a 10% withholding income tax for dividends distributed by a foreign invested enterprise to its immediate holding company outside China. A lower withholding tax rate will be applied if there is a tax treaty arrangement between mainland China and the jurisdiction of the foreign holding company. Holding companies in Hong Kong, for example, will be subject to a 5% withholding tax rate. Rise King WFOE is invested by its immediate holding company in Hong Kong and will be entitled to the 5% preferential withholding tax rate upon distribution of the dividends to its immediate holding company. | |||
The ability of the Company’s PRC subsidiary and VIEs to make dividends and other payments to the Company may also be restricted by changes in applicable foreign exchange and other laws and regulations. | |||
Foreign currency exchange regulation in China is primarily governed by the following rules: | |||
● | Foreign Exchange Administration Rules (1996), as amended in August 2008, or the Exchange Rules; | ||
● | Administration Rules of the Settlement, Sale and Payment of Foreign Exchange (1996), or the Administration Rules. | ||
Currently, under the Administration Rules, Renminbi is freely convertible for current account items, including the distribution of dividends, interest payments, trade and service related foreign exchange transactions, but not for capital account items, such as direct investments, loans, repatriation of investments and investments in securities outside of China, unless the prior approval of the State Administration of Foerign Exchange (the “SAFE”) is obtained and prior registration with the SAFE is made. Foreign-invested enterprises like Rise King WFOE that need foreign exchange for the distribution of profits to its shareholders may effect payment from their foreign exchange accounts or purchase and pay foreign exchange rates at the designated foreign exchange banks to their foreign shareholders by producing board resolutions for such profit distribution. Based on their needs, foreign-invested enterprises are permitted to open foreign exchange settlement accounts for current account receipts and payments of foreign exchange along with specialized accounts for capital account receipts and payments of foreign exchange at certain designated foreign exchange banks. | |||
Although the current Exchange Rules allow the convertibility of Chinese Renminbi into foreign currency for current account items, conversion of Chinese Renminbi into foreign exchange for capital items, such as foreign direct investment, loans or securities, requires the approval of SAFE, which is under the authority of the People’s Bank of China. These approvals, however, do not guarantee the availability of foreign currency conversion. The Company cannot be sure that it will be able to obtain all required conversion approvals for its operations or the Chinese regulatory authorities will not impose greater restrictions on the convertibility of Chinese Renminbi in the future. Currently, most of the Company’s retained earnings are generated in Renminbi. Any future restrictions on currency exchanges may limit the Company’s ability to use its retained earnings generated in Renminbi to make dividends or other payments in U.S. dollars or fund possible business activities outside China. | |||
As of December 31, 2014 and 2013, there was approximately US$30.8 million and US$39.3 million retained earnings in the aggregate, respectively, which was generated by the Company’s PRC subsidiary and VIEs in Renminbi included in the Company’s consolidated net assets, aside from US$2.8 million statutory reserve funds as of December 31, 2014 and 2013, that may be affected by increased restrictions on currency exchanges in the future and accordingly may further limit the Company’s PRC subsidiary’s and VIEs’ ability to make dividends or other payments in U.S. dollars to the Company, in addition to the approximately US$7.3 million restricted net assets as of December 31, 2014 and December 31, 2013, as discussed above. | |||
Note_22_Related_Party_Transact
Note 22 - Related Party Transactions | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Related Party Transactions [Abstract] | |||||||||
Related Party Transactions Disclosure [Text Block] | 22 | Related party transactions | |||||||
Revenue from related parties: | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
-Beijing Saturday Education Technology Co., Ltd. | 91 | - | |||||||
-Beijing Saimeiwei Food Equipment Technology Co., Ltd, | 260 | 239 | |||||||
-Beijing Fengshangyinli Technology Co., Ltd. | 2 | 7 | |||||||
-Beijing Telijie Century Environmental Technology Co., Ltd. | - | 115 | |||||||
353 | 361 | ||||||||
Note_23_Employee_Defined_Contr
Note 23 - Employee Defined Contribution Plan | 12 Months Ended | |
Dec. 31, 2014 | ||
Compensation and Retirement Disclosure [Abstract] | ||
Pension and Other Postretirement Benefits Disclosure [Text Block] | 23 | Employee defined contribution plan |
Full time employees of the Company in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require that the PRC subsidiaries of the Company make contributions to the government for these benefits based on certain percentages of the employees’ salaries. The employee benefits were expensed as incurred. The Company has no legal obligation for the benefits beyond the contributions made. The total amounts for such employee benefits were approximately US$574,000 and US$477,000 for the years ended December 31, 2014 and 2013, respectively. | ||
Note_24_Concentration_of_Risk
Note 24 - Concentration of Risk | 12 Months Ended | |
Dec. 31, 2014 | ||
Risks and Uncertainties [Abstract] | ||
Concentration Risk Disclosure [Text Block] | 24 | Concentration of risk |
Credit risk | ||
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents, accounts receivable, other receivables and prepayments and deposits to suppliers. As of December 31, 2014 and 2013, substantially all of the Company’s cash and cash equivalents were held by major financial institutions located in Mainland China and Hong Kong Special Administrative Region of the PRC, which management believes are of high credit quality. | ||
Risk arising from operations in foreign countries | ||
All of the Company’s operations are conducted within the PRC. The Company’s operations in the PRC are subject to various political, economic, and other risks and uncertainties inherent in the PRC. Among other risks, the Company’s operations in the PRC are subject to the risks of restrictions on transfer of funds, changing taxation policies, foreign exchange restrictions; and political conditions and governmental regulations. | ||
Currency convertibility risk | ||
Significant part of the Company’s businesses is transacted in RMB, which is not freely convertible into foreign currencies. All foreign exchange transactions take place either through the People’s Bank of China or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other regulatory institutions requires submitting a payment application form together with suppliers’ invoices and signed contracts. These exchange control measures imposed by the PRC government authorities may restrict the ability of the Company’s PRC subsidiary and VIEs to transfer its net assets, which to the Company through loans, advances or cash dividends. | ||
Concentration of customers | ||
For the year ended December 31, 2014, two customers individually accounted for 27% and 17% of the Company’s sales, respectively. Except for the aforementioned customers, there was no other single customer who accounted for more than 10% of the Company’s sales for the years ended December 31, 2014 or 2013. | ||
As of December 31, 2014, two customers individually accounted for 19% and 18% of the Company’s accounts receivables, respectively. As of December 31, 2013, three customers individually accounted for 13%, 12% and 10% of the Company’s accounts receivables, respectively. Except for the aforementioned, there was no other single customer who accounted for more than 10% of the Company’s accounts receivable as of December 31, 2014 or 2013. | ||
Concentration of suppliers | ||
For the year ended December 31, 2014, two suppliers accounted for 71% and 19% of the Company’s cost of sales, respectively. For the year ended December 31, 2013, three suppliers individually accounted for 35%, 20% and 18% of the Company’s cost of sales, respectively. Except for the afore-mentioned, there was no other single supplier who accounted for more than 10% of the Company’s cost of sales for the years ended December 31, 2014 or 2013. | ||
Note_25_Commitments_and_Contin
Note 25 - Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies Disclosure [Text Block] | 25 | Commitments and contingencies | |||
The following table sets forth the Company’s operating lease commitment as of December 31, 2014: | |||||
Office Rental | |||||
US$(’000) | |||||
Year ending December 31, | |||||
-2015 | 381 | ||||
-2016 | 135 | ||||
Total | 516 | ||||
For the years ended December 31, 2014 and 2013, rental expenses under operating leases were approximately US$500,000 and US$512,000, respectively. | |||||
In December 2014, the Company entered into a purchase agreement of RMB32.29 million (approximately US$5 million) with an unrelated counter party for the purchasing of software applications related to operation management applications for SMEs. As of December 31, 2014 and the date hereof, the Company had paid in the aggregate of RMB15 million (approximately US$2.5 million) and RMB22 million (approximately US$3.6 million), respectively. The remaining unpaid contract amount needs to be paid before July 31, 2015. | |||||
In October 2013, the Company entered into a contract to engage an unrelated third party to develop several software systems related to internet environment monitoring, network security and system optimization to enhance the overall safety and efficiency of the Company’s network system. The total contract amount was RMB13 million (approximately US$2.1 million) and a first installment of RMB5.2 million (approximately US$0.85 million) was paid in 2014. The transaction as contemplated under the contract is expected to be consummated in the first half of 2015 and the remaining unpaid contract amount is expected to be paid in the first half of 2015. | |||||
Legal Proceedings | |||||
Business Opportunity Online, one of the indirect wholly owned VIEs of the Company, Handong Cheng, Chairman and CEO of the Company, and Jinbo Yao, Legal Representative of Beijing 58 Information Technology Co., Ltd. (the “Beijing 58”) have been named as defendants in a civil lawsuit filed in the PRC. The action was filed by Xuanfu Liu, an approximate 34% shareholder of the Company, on October 19, 2013, in the Xiaogan City Xiaonan District People’s Court in Hubei Province, China. The complaint alleges that Mr. Cheng abused operation and management rights and that Mr. Cheng’s disposition of equity interests that Business Opportunity Online held in Beijing 58 (the “Equity Interests”), without the consent of the plaintiff, was an act of infringement and in violation of the articles of association of Business Opportunity Online and Chinese corporate law. The complaint seeks a court order to declare the contract allegedly entered into by and between Mr. Cheng, on behalf of Business Opportunity Online, and Mr. Yao, null and void. The Company denies all of the allegations against the Company and intends to defend vigorously against the lawsuit. During the course of the civil litigation, Jinbo Yao, the defendant, filed an objection to remove this case from the Xiaogan City Xiaonan District People’s Court to a Beijing court. Xiaogan City Xiaonan District People’s Court denied the defendant’s objection to remove the case. Jinbo Yao then filed an appeal of that decision to the Intermediate People’s Court of Xiaogan. On March 10, 2014, the Intermediate People’s Court of Xiaogan rendered a final ruling holding that the dispute shall be transferred and heard by the Haidian District People’s Court of Beijing. On December 9, 2014, the complaint, Xuanfu Liu filed an application to withdraw the lawsuit in the Haidian District People’s Court of Beijing. The Haidian District People’s Court of Beijing rendered a ruling to permit the withdrawal of this lawsuit on the same date. | |||||
Rise King WFOE, the indirectly wholly owned subsidiary of the Company, Handong Cheng, Chairman and CEO of the Company, Zhige Zhang, CFO of the Company and Xuanfu Liu, have been named as defendants in a civil lawsuit filed in the PRC. The action was filed by Shanghai Pan Gu Investment Management Co., Ltd. (the “Shanghai Pan Gu”), on December 17, 2013, in the Haidian District People’s Court of Beijing, China. The complaint alleges that the defendants breached a consulting agreement entered into on April 22, 2011 by and among Shanghai Pan Gu and the defendants. The complaint seeks a court order for liquidated damages in the amount of RMB0.56 million (equal to approximately US$92,100) under the consulting agreement. On November 18, 2014, the Haidian District People’s Court of Beijing rendered a ruling holding that the defendants shall compensate the complaint RMB20,000 (approximately US$3,300) for the consulting services provided by the complaint to the defendants. The Company believes the impact of this lawsuit to the Company is immaterial. | |||||
Business Opportunity Online has been named as a defendant in another civil lawsuit filed in the PRC. The action was filed by Haifeng Wang in the Haidian District People’s Court, Beijing, PRC, on April 29, 2014. The complaint alleges that the plaintiff neither attended any shareholders meeting in respect of the transfer of the plaintiff’s investment in Business Opportunity Online to another party, nor executed any written shareholders resolutions approving such transfer. The complaint seeks a court order to declare such shareholders resolutions null and void. The Company denied all of the allegations against it and defended vigorously against the lawsuit. The Company currently cannot estimate the amount or range of possible losses from this litigation. | |||||
Note_26_Segment_Reporting
Note 26 - Segment Reporting | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||
Segment Reporting Disclosure [Text Block] | 26 | Segment reporting | |||||||||||||||||||||||||||
The Company follows ASC Topic 280 “Segment Reporting”, which requires that companies disclose segment data based on how management makes decisions about allocating resources to segments and evaluating their performance. Reportable operating segments include components of an entity about which separate financial information is available and which operating results are regularly reviewed by the chief operating decision maker (“CODM”), the Company’s Chief Executive Officer, to make decisions about resources to be allocated to the segment and assess each operating segment’s performance. | |||||||||||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||||||||||
Brand | Inter- | ||||||||||||||||||||||||||||
management | segment and | ||||||||||||||||||||||||||||
Internet | TV | Bank | and sales | reconciling | |||||||||||||||||||||||||
Ad. | Ad. | Kiosk | channel | Others | item | Total | |||||||||||||||||||||||
building | |||||||||||||||||||||||||||||
US$ | US$ | US$ | US$ | US$ | US$ | US$ | |||||||||||||||||||||||
(‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | |||||||||||||||||||||||
Revenue | 31,261 | 6,429 | 276 | 931 | - | - | 38,897 | ||||||||||||||||||||||
Cost of sales | 25,645 | 6,014 | 13 | 603 | - | - | 32,275 | ||||||||||||||||||||||
Total operating expenses | 12,575 | 450 | 124 | 1,974 | 6,133 | * | - | 21,256 | |||||||||||||||||||||
Gain on disposal of VIEs included in total operating expenses | (266 | ) | - | - | - | - | - | (266 | ) | ||||||||||||||||||||
Goodwill impairment loss included in total operating expenses | 3,750 | - | - | 900 | - | - | 4,650 | ||||||||||||||||||||||
Intangible assets impairment loss included in total operating expenses | 442 | - | - | 547 | - | - | 989 | ||||||||||||||||||||||
Depreciation and amortization expense included in total operating expenses | 1,005 | 30 | 124 | 201 | 77 | 1,437 | |||||||||||||||||||||||
Operating income (loss) | (6,959 | ) | (35 | ) | 139 | (1,646 | ) | (6,133 | ) | - | (14,634 | ) | |||||||||||||||||
Share of income/(loss) in equity investment affiliates | - | - | - | 51 | (4 | ) | 47 | ||||||||||||||||||||||
Expenditure for long-term assets | 1,113 | - | - | 2 | 12 | - | 1,127 | ||||||||||||||||||||||
Net income (loss) | (6,380 | ) | (92 | ) | 139 | (1,423 | ) | (6,136 | ) | - | (13,892 | ) | |||||||||||||||||
Total assets – December 31, 2014 | 43,851 | 13,228 | 296 | 2,989 | 6,558 | (19,492 | ) | 47,430 | |||||||||||||||||||||
*Including approximately US$4,840,000 share-based compensation expenses. | |||||||||||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||||||||||
Internet | TV | Bank | Brand | Others | Inter- segment and reconciling item | Total | |||||||||||||||||||||||
Ad. | Ad. | kiosk | management | ||||||||||||||||||||||||||
and sales | |||||||||||||||||||||||||||||
channel | |||||||||||||||||||||||||||||
building | |||||||||||||||||||||||||||||
US$ | US$ | US$ | US$ | US$ | US$ | US$ | |||||||||||||||||||||||
(‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | |||||||||||||||||||||||
Revenue | 20,672 | 6,801 | 251 | 2,569 | - | - | 30,293 | ||||||||||||||||||||||
Cost of sales | 8,643 | 6,463 | 1 | 1,456 | - | - | 16,563 | ||||||||||||||||||||||
Total operating expenses | 8,452 | 1,216 | 192 | 1,936 | 1,322 | * | - | 13,118 | |||||||||||||||||||||
Loss on disposal of VIEs included in total operating expenses | - | - | - | 543 | - | - | 543 | ||||||||||||||||||||||
Loss on disposal of intangible asset included in total operating expenses | - | - | - | 315 | - | - | 315 | ||||||||||||||||||||||
Depreciation and amortization expense included in total operating expenses | 1,024 | 42 | 192 | 217 | 142 | - | 1,617 | ||||||||||||||||||||||
Operating income (loss) | 3,577 | (878 | ) | 58 | (823 | ) | (1,322 | ) | - | 612 | |||||||||||||||||||
Share of losses in equity investment affiliates | - | - | - | (143 | ) | (40 | ) | - | (183 | ) | |||||||||||||||||||
Expenditure for long-term assets | 2,486 | - | - | 2 | 11 | - | 2,499 | ||||||||||||||||||||||
Net income (loss) | 2,638 | (881 | ) | 57 | (899 | ) | (1,198 | ) | - | (283 | ) | ||||||||||||||||||
Total assets – December 31, 2013 | 51,324 | 17,022 | 420 | 4,524 | 7,065 | (23,521 | ) | 56,834 | |||||||||||||||||||||
*Including approximately US$125,000 share-based compensation expenses. | |||||||||||||||||||||||||||||
Note_27_Loss_Per_Share
Note 27 - Loss Per Share | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Earnings Per Share [Text Block] | 27 | Loss per share | |||||||
Basic and diluted loss per share for each of the periods presented is calculated as follows (All amounts, except number of shares and per share data, are presented in thousands of U.S. dollars): | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
Net loss attributable to ChinaNet Online Holdings, Inc. (numerator for basic and diluted earnings per share) | $ | (13,738 | ) | $ | (234 | ) | |||
Weighted average number of common shares outstanding – Basic | 22,414,523 | 22,284,485 | |||||||
Effect of diluted securities: | |||||||||
Unvested restricted common stocks | - | - | |||||||
Warrants and options | - | - | |||||||
Weighted average number of common shares outstanding – Diluted | 22,414,523 | 22,284,485 | |||||||
Loss per share-Basic and diluted | $ | (0.61 | ) | $ | (0.01 | ) | |||
For the year ended December 31, 2014, the diluted loss per share calculation did not include the 2,666,667 shares of unvested restricted common stock and a weighted average number of warrants and options to purchase up to 1,172,015 and 928,224 shares of the Company’s common stock, respectively, because their effect was anti-dilutive, as the Company incurred a loss for the year. | |||||||||
For the year ended December 31, 2013, the diluted loss per share calculation did not include the warrants and options to purchase up to 2,363,456 and 939,440 shares of the Company’s common stock, respectively, because their effect was anti-dilutive, as the Company incurred a loss for the year. | |||||||||
Note_28_Sharebased_Compensatio
Note 28 - Share-based Compensation Expenses | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 28 | Share-based compensation expenses | |||||||||||||||||||||||
As additional compensation, the Company granted both 40,000 shares of the Company’s restricted common stock to its investor relations services provider for the years ended December 31, 2014 and 2013. These shares were valued at US$0.84 and US$1.05 per share, the closing bid price of the Company’s common stock on the date of grant, respectively. The related compensation expense recognized for the years ended December 31, 2014 and 2013 was US$33,600 and US$42,000, respectively. | |||||||||||||||||||||||||
The Company granted 300,000 shares of the Company’s restricted common stock to a technical service provider in exchange for its services to the Company for a 12-month period commencing on August 1, 2014, of which 150,000 restricted shares was vested on August 1, 2014, and 150,000 restricted shares will be vested on February 1, 2015. These shares were valued at US$0.67 per share, the closing bid price of the Company’s common stock on the date of grant. Total compensation expense amortized for the year ended December 31, 2014 was US$83,750. For the year ended December 31, 2013, the Company granted 150,000 shares of the Company’s restricted common stock to the same technical services provider in exchange for its services during the year. These shares were valued at US$0.55 per share, the closing bid price of the Company’s common stock on the date of grant. Total compensation expense recognized for the year ended December 31, 2013 was US$82,500. | |||||||||||||||||||||||||
On December 30, 2014, under the Company’s 2011 Omnibus Securities and Incentive Plan, adopted by the stockholders of the Company at its annual meeting held on June 15, 2011, the Company issued its management, employees and directors in the aggregate of 2,418,780 shares of the Company’s restricted common stock for the services they provided to the Company. The restricted stock is subject to a strict lock-up for an initial six-month period. Following the initial six-month period, the restricted stock will continue to be locked up until the earlier of (i) the date upon which the closing price of the Company's common stock equals or exceeds $2.50 for five consecutive trading days, and (ii) December 30, 2016. In addition, the restricted stock is subject to forfeiture upon an employee's cessation of employment at the discretion of the Company. The restricted stock was fully vested upon issuance and was valued at $1.17 per share, the closing bid price of the Company’s common stock on the date of grant. Total compensation cost recognized for the year ended December 31, 2014 was US$2,830,000. | |||||||||||||||||||||||||
On December 30, 2014, the Company granted additional 4,200,000 shares of the Company’s restricted common stock to its executive officers, of which 1,533,333 restricted shares was vested upon issuance, 1,333,333 restricted shares will be vested on December 30, 2015 and the remaining 1,333,334 restricted shares will be vested on December 30, 2016. The restricted stock was valued at $1.17 per share, the closing bid price of the Company’s common stock on the date of grant. Total compensation cost recognized for the year ended December 31, 2014 was US$1,794,000, which related to the restricted shares that had been vested as of December 31, 2014. | |||||||||||||||||||||||||
On December 30, 2014, the Company granted 5-year options to each of its three independent directors, Mr. Douglas MacLellan, Mr. Mototaka Watanabe and Mr. Zhiqing Chen, to purchase in the aggregate 200,000 shares of the Company’s common stock at an exercise price of US$1.23 per share, in consideration of their services to the Company. These options were fully vested and exercisable upon issuance and subject to forfeiture upon the termination of the Optionee’s status as a director for any reason. Total compensation expenses recognized for these options for the year ended December 31, 2014 was US$99,000. | |||||||||||||||||||||||||
The Company estimated the fair value of these options granted on December 30, 2014 using the Binomial option-pricing model based on the following assumptions: | |||||||||||||||||||||||||
Applicable stock price | $ | 0.908 | |||||||||||||||||||||||
Exercise multiple | 2.5 | ||||||||||||||||||||||||
Tenor (years) | 5 | ||||||||||||||||||||||||
Risk-free interest rate | 1.67 | % | |||||||||||||||||||||||
Dividend yield | - | ||||||||||||||||||||||||
Expected volatility | 98.68 | % | |||||||||||||||||||||||
Exercise price of the option | $ | 1.23 | |||||||||||||||||||||||
Value per option | $ | 0.495 | |||||||||||||||||||||||
Applicable stock price is based on the closing bid price of the Company’s common stock on the grant date, after adjustment for the restricted shares granted/cancelled on December 30, 2014. Exercise multiple of 2.5 is used as the estimated ratio of fair value of stock over the exercise price as at the time the option is exercised. Tenor is the contract life of the option. Yield-to-maturities in continuous compounding of the United States Government Bonds with the time-to-maturities same as the expected tenor of the options of 5 year are adopted as the risk-free rate. Annualized historical stock price volatility of the Company from an appropriate index as at the grant date is deemed to be appropriate to serve as the expected volatility of the stock price of the Company and is assumed to be constant and prevailing. The dividend yield is calculated based on management’s estimate of dividends to be paid on the underlying stock. Exercise price of the option is the contractual exercise price of the option. | |||||||||||||||||||||||||
On December 30, 2014, the Company cancelled 155,190 shares of the Company’s restricted common stock and options to purchase up to 190,500 of the Company’s common stock, respectively, which were issued under the Company’s 2011 Omnibus Securities and Incentive Plan due to cessation of employment. | |||||||||||||||||||||||||
Options issued and outstanding at December 31, 2014 and their movements for the two years then ended are as follows: | |||||||||||||||||||||||||
Option Outstanding | Option Exercisable | ||||||||||||||||||||||||
Number of underlying shares | Weighted | Weighted | Weighted | Weighted | |||||||||||||||||||||
Average | Average | Average | Average | ||||||||||||||||||||||
Remaining | Exercise | Number of underlying shares | Remaining | Exercise | |||||||||||||||||||||
Contractual | Price | Contractual | Price | ||||||||||||||||||||||
Life (Years) | Life (Years) | ||||||||||||||||||||||||
Balance, December 31, 2012 | 939,440 | 8.51 | $ | 1.42 | 939,440 | 8.51 | $ | 1.42 | |||||||||||||||||
Granted/Vested | - | - | |||||||||||||||||||||||
Exercised | - | - | |||||||||||||||||||||||
Balance, December 31, 2013 | 939,440 | 7.51 | $ | 1.42 | 939,440 | 7.51 | $ | 1.42 | |||||||||||||||||
Granted/Vested | 200,000 | 5 | $ | 1.23 | 200,000 | 5 | $ | 1.23 | |||||||||||||||||
Cancelled | (190,500 | ) | $ | 1.2 | (190,500 | ) | $ | 1.2 | |||||||||||||||||
Expired | (54,000 | ) | $ | 5 | (54,000 | ) | $ | 5 | |||||||||||||||||
Balance, December 31, 2014 | 894,940 | 6.48 | $ | 1.21 | 894,940 | 6.48 | $ | 1.21 | |||||||||||||||||
The aggregate unrecognized share-based compensation expenses as of December 31, 2014 and 2013 is approximately US$3,237,000 and US$nil, respectively. | |||||||||||||||||||||||||
Note_29_Subsequent_Event
Note 29 - Subsequent Event | 12 Months Ended | |
Dec. 31, 2014 | ||
Subsequent Events [Abstract] | ||
Subsequent Events [Text Block] | 29 | Subsequent event |
On January 12, 2015, the Company through its wholly-owned subsidiary, China Net BVI incorporated a new wholly-owned BVI company named ChinaNet Investment Holding Ltd. (“ChinaNet Investment BVI”). | ||
On January 29, 2015, the Company through one of its VIEs, Beijing CNET Online made an investment of RMB1,000,000 (approximately US$0.16 million) to Chuangshi Meiwei Food and Beverage Investment Management (Beijing) Co., Ltd. (“Chuangshi Meiwei” or “O'Yummy”). The Company beneficially owns 10% of the equity interest in Chuangshi Meiwei. | ||
In January 2015, the Company granted 50,000 shares of the Company’s restricted common stock each year to its investor relations services provider, in exchange for its services to the Company for the years ended December 31, 2015 and 2016, respectively. These shares will be valued at US$1.2 per share, the closing bid price of the Company’s common stock on the date of grant. Total compensation expense of both approximately US$60,000 will be recognized in 2015 and 2016, respectively. The shares attributable to fiscal 2015 were issued in March 2015. | ||
In April 2015, the Company issued 150,000 shares of the Company’s restricted common stock to a technical service provider in exchange for its services to the Company in 2015. These shares will be valued at US$0.67 per share, the closing bid price of the Company’s common stock on the date of grant. Total compensation expense of approximately US$100,500 will be recognized for these shares in 2015. | ||
In February 2015, the Company paid RMB2 million (approximately US$0.33 million) as a deposit for purchasing TV advertising time slots from a TV station with a preliminary contract amount of RMB20.4 million (approximately US$3.33 million). | ||
In March 2015, the Company was required to pay RMB3.2 million (approximately US$0.52 million) as a deposit to continue purchasing resources from one of the Company’s major internet resources suppliers in 2015. As of the date hereof, the Company is finalizing the formal purchase agreement with the counter party, which agreement is expected to be formally signed by the end of April 2015. | ||
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 3 Months Ended | 12 Months Ended | ||||||||||||
Mar. 31, 2014 | Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | ||||||||||||||
Basis of Accounting, Policy [Policy Text Block] | Basis of presentation | |||||||||||||
The consolidated financial statements are prepared and presented in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). | ||||||||||||||
Consolidation, Policy [Policy Text Block] | Principles of consolidation | |||||||||||||
The consolidated financial statements include the financial statements of all the subsidiaries and VIEs of the Company. All transactions and balances between the Company and its subsidiaries and VIEs have been eliminated upon consolidation. According to the agreements between Beijing CNET Online and Shanghai Borongdingsi, although Beijing CNET Online legally owns 51% of Shanghai Borongdingsi’s interests, Beijing CNET Online only controls the assets and liabilities related to the bank kiosks business, which has been included in the financial statements of Beijing CNET Online, but does not control other assets of Shanghai Borongdingsi, thus, Shanghai Borongdingsi’s financial statements were not consolidated by the Company. | ||||||||||||||
Use of Estimates, Policy [Policy Text Block] | Use of estimates | |||||||||||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related disclosure of contingent assets and liabilities at the date of these consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. The Company continually evaluates these estimates and assumptions based on the most recently available information, historical experience and various other assumptions that the Company believes to be reasonable under the circumstances. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from those estimates. | ||||||||||||||
Reclassification, Policy [Policy Text Block] | Reclassification | |||||||||||||
Certain prior year accounts have been regrouped or reclassified to conform to the current year presentation, which did not have any impact on the Company’s prior year consolidated financial position, consolidated results of operations and consolidated cash flows. | ||||||||||||||
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign currency translation and transactions | |||||||||||||
The functional currency of the Company is United States dollars (“US$”), and the functional currency of China Net HK is Hong Kong dollars (“HK$”). The functional currency of the Company’s PRC operating subsidiary and VIEs is Renminbi (“RMB”), and PRC is the primary economic environment in which the Company operates. | ||||||||||||||
For financial reporting purposes, the financial statements of the Company’s PRC operating subsidiary and VIEs, which are prepared using the RMB, are translated into the Company’s reporting currency, the United States Dollar (“U.S. dollar”). Assets and liabilities are translated using the exchange rate at each balance sheet date. Revenue and expenses are translated using average rates prevailing during each reporting period, and stockholders’ equity is translated at historical exchange rates. Adjustments resulting from the translation are recorded as a separate component of accumulated other comprehensive income in stockholders’ equity. | ||||||||||||||
Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transactions. The resulting exchange differences are included in the determination of net income of the consolidated statements of income and comprehensive income for the respective periods. | ||||||||||||||
The exchange rates used to translate amounts in RMB into US$ for the purposes of preparing the consolidated financial statements are as follows: | ||||||||||||||
As of December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Balance sheet items, except for equity accounts | 6.119 | 6.114 | ||||||||||||
Year ended December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Items in the statements of income and comprehensive income, and statements of cash flows | 6.1428 | 6.1982 | ||||||||||||
No representation is made that the RMB amounts could have been, or could be converted into US$ at the above rates. | ||||||||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and cash equivalents | |||||||||||||
Cash and cash equivalents consist of cash on hand and bank deposits, which are unrestricted as to withdrawal and use. The Company considers all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents. | ||||||||||||||
Term Deposit [Policy Text Block] | Term deposits | |||||||||||||
Term deposits consist of bank deposits with an original maturity of between three to twelve months. | ||||||||||||||
Receivables, Policy [Policy Text Block] | Accounts and other receivable, net | |||||||||||||
Accounts receivable and other receivables are recorded at net realizable value consisting of the carrying amount less an allowance for uncollectible accounts as needed. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable and other receivables. The Company determines the allowance based on aging data, historical collection experience, customer specific facts and economic conditions. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company did not have any off-balance-sheet credit exposure relating to its customers, suppliers or others. | ||||||||||||||
Investment, Policy [Policy Text Block] | Long-term Investments | |||||||||||||
Equity method investments | ||||||||||||||
Investee companies that are not consolidated, but over which the Company exercises significant influence, are accounted for under the equity method of accounting in accordance to ASC Topic 323 “Equity Method and Joint Ventures”. Whether or not the Company exercises significant influence with respect to an investee depends on an evaluation of several factors including, among others, representation on the investee companies’ board of directors and ownership level, which is generally a 20% to 50% interest in the voting securities of the investee companies. Under the equity method of accounting, an investee company’s accounts are not reflected within the Company’s consolidated balance sheets and statements of income and comprehensive income; however, the Company’s share of the income or losses of the investee company is reflected in the caption “Share of income (losses) in equity investment affiliates” in the consolidated statements of operations and comprehensive (loss)/income. The Company’s carrying value (including advance to the investee) in equity method investee companies is recorded in the caption “Long-term investments” in the Company’s consolidated balance sheets. | ||||||||||||||
When the Company’s carrying value in an equity method investee company is reduced to zero, no further losses are recorded in the Company’s consolidated financial statements unless the Company guaranteed obligations of the investee company or has committed additional funding. When the investee company subsequently reports income, the Company will not record its share of such income until it equals the amount of its share of losses not previously recognized. | ||||||||||||||
Cost method investments | ||||||||||||||
Investee companies that are not consolidated, and over which the Company does not exercise significant influence, are accounted for under the cost method of accounting in accordance to ASC Topic 325 subtopic 20: “Investments-Other: Cost Method Investments”. The Company generally owns less than 20% interest in the voting securities of the cost method investee companies. Under the cost method of accounting, the Company records the cost method investments at cost in the caption “Long-term investments” in the Company’s consolidated balance sheets, and only adjusts for other-than-temporary declines in fair value of investee companies and distributions of earnings from investee companies. | ||||||||||||||
Impairment for long-term investments | ||||||||||||||
The Company assesses its long-term investments for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, operating performance and financial position of the investee companies, including current earnings trends and undiscounted cash flows, and other company-specific information. The fair value determination, particularly for investments in privately-held companies, requires significant judgment to determine appropriate estimates and assumptions. Changes in these estimates and assumptions could affect the calculation of the fair value of the investments and determination of whether any identified impairment is other-than-temporary. The impairment to be recognized is measured by the amount by which the carrying values of the long-term investments exceed the fair value of the long-term investments. | ||||||||||||||
For the years ended December 31, 2014 and 2013, the Company did not record any other-than-temporary impairment associated with its long-terms investments. | ||||||||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | Property and equipment, net | |||||||||||||
Property and equipment are recorded at cost less accumulated depreciation. Depreciation is calculated on the straight-line method after taking into account their respective estimated residual values over the following estimated useful lives: | ||||||||||||||
Vehicles (years) | 5 | |||||||||||||
Office equipment (years) | 3 | - | 5 | |||||||||||
Electronic devices (years) | 5 | |||||||||||||
Depreciation expenses are included in selling expenses, general and administrative expenses and research and development expenses. | ||||||||||||||
When property and equipment are retired or otherwise disposed of, resulting gain or loss is included in net income or loss in the year of disposition for the difference between the net book value and proceeds received thereon. Maintenance and repairs which do not improve or extend the expected useful lives of the assets are charged to expenses as incurred, whereas the cost of renewals and betterments that extend the useful life of the assets are capitalized as additions to the related assets. | ||||||||||||||
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | Intangible assets, net | |||||||||||||
Purchased software and software platform is initially recorded at cost and amortized on a straight-line basis over the estimated useful economic life. | ||||||||||||||
Intangible assets other than goodwill acquired through various acquisitions are amortized on a straight-line basis over their expected useful economic lives. | ||||||||||||||
Domain Name | indefinite | |||||||||||||
Contract Backlog (years) | 0.6 | - | 0.7 | |||||||||||
Customer Relationship (years) | 5 | - | 9 | |||||||||||
Non-Compete Agreement (years) | 5 | - | 6 | |||||||||||
Software technologies (years) | 5 | |||||||||||||
If an acquired intangible asset is determined to have an indefinite useful life, it should not be amortized until its useful life is determined to be no longer indefinite. The Company reviews intangible assets' remaining useful lives in each reporting period. If such an asset is later determined to have a finite useful life, the asset will be tested for impairment. That asset will then be amortized prospectively over its estimated remaining useful life and accounted for in the same way as intangible assets subject to amortization. | ||||||||||||||
The Company accounted for website development costs in accordance with ASC Topic 350-50, which requires that certain costs related to the development or purchase of internal-use software and systems as well as the costs incurred in the application development stage related to its website be capitalized and amortized over the estimated useful life of the software or system. ASC Topic 350-50 also require that costs related to the preliminary project stage, data conversion and post implementation/operation stage of an internal-use software development project be expensed as incurred. For the years ended December 31, 2014 and 2013, the Company did not capitalize any such cost, as the amount was considered immaterial. | ||||||||||||||
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block] | Impairment of long-lived assets | |||||||||||||
Long-lived assets, which include tangible long-lived assets and intangible long-lived assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets to be held and used is measured by a comparison of the carrying amount of the asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future undiscounted cash flows, an impairment loss is recognized for the difference between the carrying amount of the asset and its fair value. | ||||||||||||||
For the year ended December 31, 2014, the Company provided approximately US$989,000 impairment loss in the aggregate associated with long-lived assets, which was related to intangible assets (non-compete agreement and customer relationship) acquired through various business combination transactions. For the year ended December 31, 2013, the Company did not record any impairment losses associated with long-lived assets. Please refer to Note 3 (r) and Note 11 for detailed disclosures about the impaired intangible assets and the related valuation technique(s) and inputs used in the fair value measurement for these intangible assets. | ||||||||||||||
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill | |||||||||||||
Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and liabilities acquired as a result of the Company's acquisitions of interests in its consolidated VIEs. | ||||||||||||||
Goodwill is not depreciated or amortized but is tested for impairment at the reporting unit level at least on an annual basis, and between annual tests when an event occurs or circumstances change that could indicate that the asset might be impaired. The test consists of two steps. First, identify potential impairment by comparing the fair value of the reporting unit to its carrying amount, including goodwill. If the fair value of the reporting unit is greater than its carrying amount, goodwill is not considered impaired. Second, if there is impairment identified in the first step, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation, in accordance with ASC Topic 805 “Business Combinations.” | ||||||||||||||
Application of a goodwill impairment test requires significant management judgment, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. The judgment in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit. | ||||||||||||||
The Company’s respective goodwill is directly attributable to its internet advertising reporting unit and brand management and sales channel building reporting unit. For the years ended December 31, 2014 and 2013, the Company performed its annual test on goodwill impairment for these two reporting units on December 31, 2014 and 2013, respectively. For the year ended December 31, 2014, the Company provided approximately US$4,650,000 impairment loss in the aggregate associated with goodwill. For the year ended December 31, 2013, the Company did not record any impairment losses associated with Goodwill. Please refer to Note 3 (r) and Note 13 for detailed disclosures about the impairment of goodwill and the related valuation technique(s) and inputs used in the fair value measurement for the Company’s goodwill. | ||||||||||||||
Business Combinations Policy [Policy Text Block] | Transaction between entities under common control | |||||||||||||
In August 2014, the Company integrated and merged all business activities and resources (excluding tangible assets and liabilities incurred) of its former VIE, Sou Yi Lian Mei Network Technology (Beijing) Co., Ltd. (“Sou Yi Lian Mei”) and Sou Yi Lian Mei’s sole wholly-owned subsidiary, Jin Du Ya He (Beijing) Network Technology Co., Ltd. (“Jin Du Ya He”) to the Company’s other internet advertising and marketing companies for continued operation. Sou Yi Lian Mei and its subsidiary Jin Du Ya He were subsequently disposed by the Company. | ||||||||||||||
In April 2013, the Company formed Quanzhou Zhi Lang for the reorganization of its brand management and sales channel building business segment. All of the business activities and resources of the Company’s former VIEs, Quanzhou Zhi Yuan Marketing Planning Co., Ltd. (“Quanzhou Zhi Yuan”) and Quanzhou Tian Xi Shun He Advertisement Co., Ltd. (“Quanzhou Tian Xi Shun He”) (excluding tangible assets and liabilities incurred), were transferred and merged into Quanzhou Zhi Lang. After the reorganization, Quanzhou Zhi Yuan and Quanzhou Tian Xi Shun He were subsequently disposed by the Company. | ||||||||||||||
The Company considered these transactions as transaction between entities under common control and accounted for these transactions in accordance with ASC 805-50, which provided guidance on measuring assets and liabilities transferred between entities under common control. In accordance with ASC 805-50, transferring assets between entities under common control, the entity that receives the net assets should initially measure the recognized assets and liabilities transferred at their carrying amounts in the accounts of the transferring entity at the date of transfer. | ||||||||||||||
Deconsolidation [Policy Text Block] | Deconsolidation | |||||||||||||
The Company accounts for deconsolidation of subsidiaries in accordance with ASC Topic 810 “Consolidation”. | ||||||||||||||
In accordance with ASC Topic 810-10-40-5, the parent shall account for the deconsolidation of a subsidiary by recognizing a gain or loss in net income attributable to the parent, measured as the difference between: | ||||||||||||||
a. The aggregate of all of the following: | ||||||||||||||
1. The fair value of any consideration received; | ||||||||||||||
2. The fair value of any retained noncontrolling investment in the former subsidiary at the date the subsidiary is deconsolidated; | ||||||||||||||
3. The carrying amount of any noncontrolling interest in the former subsidiary (including any accumulated other comprehensive income attributable to the noncontrolling interest) at the date the subsidiary is deconsolidated. | ||||||||||||||
b. The carrying amount of the former subsidiary’s assets and liabilities. | ||||||||||||||
For the years ended December 31, 2014 and 2013, the Company achieved approximately US$0.27 million gain and incurred approximately US$0.54 million loss on disposal of its former VIEs, respectively. | ||||||||||||||
Changes In A Parent’s Ownership Interest While The Parent Retains Its Controlling Financial Interest In Its Subsidiary [Policy Text Block] | Changes in a parent’s ownership interest while the parent retains its controlling financial interest in its subsidiary | |||||||||||||
The Company accounted for changes in a parent’s ownership interest while the parent retains its controlling financial interest in its subsidiary in accordance with ASC Topic 810 “Consolidation”, subtopic 10, which requires the transaction be accounted for as equity transactions (investments by owners and distributions to owners acting in their capacity as owners). Therefore, no gain or loss shall be recognized in consolidated net income or comprehensive income. The carrying amount of the noncontrolling interest shall be adjusted to reflect the change in its ownership interest in the subsidiary. Any difference between the fair value of the consideration received or paid and the amount by which the noncontrolling interest is adjusted shall be recognized in equity attributable to the parent and reallocated the subsidiary’s accumulated comprehensive income, if any, among the parent and the noncontrolling interest through an adjustment to the parent’s equity. | ||||||||||||||
The Company acquired the remaining 49% equity interest in Sheng Tian Hubei in September 2013. The difference between the cash consideration paid and the amount by which the noncontrolling interest was adjusted to reflect the change in its ownership interest in the VIE of approximately US$0.26 million was recognized in equity attributable to the Company for the year ended December 31, 2013. | ||||||||||||||
Non-Controlling Interest [Policy Text Block] | Noncontrolling interest | |||||||||||||
The Company accounts for noncontrolling interest in accordance with ASC Topic 810-10-45, which requires the Company to present noncontrolling interests as a separate component of total shareholders’ equity on the consolidated balance sheet and the consolidated net income attributable to the parent and the noncontrolling interest be clearly identified and presented on the face of the consolidated income and comprehensive income statement. ASC Topic 810-10-45 also requires that losses attributable to the parent and the noncontrolling interest in a subsidiary be attributed to those interests even if it results in a deficit noncontrolling interest balance. | ||||||||||||||
Fair Value Measurement, Policy [Policy Text Block] | Fair value | |||||||||||||
The Company’s financial instruments primarily consist of cash and cash equivalents, accounts receivable, other receivables, prepayment and deposits, accounts payable, advances from customers, accruals and other payables. The carrying values of these financial instruments approximate fair values due to their short maturities. | ||||||||||||||
ASC Topic 820 "Fair Value Measurement and Disclosures," defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This topic also establishes a fair value hierarchy which requires classification based on observable and unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value: | ||||||||||||||
Level 1 - Quoted prices in active markets for identical assets or liabilities. | ||||||||||||||
Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||||||||||||
Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | ||||||||||||||
Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each quarter. | ||||||||||||||
The Company measures certain non-financial assets, such as intangible assets and goodwill, at fair value on a nonrecurring basis only if they were determined to be other-than-temporarily impaired. | ||||||||||||||
Assets measured at fair value on a nonrecurring basis by level within the fair value hierarchy are summarized as follows: | ||||||||||||||
Carrying value | Fair value measurement using inputs | Impairment charge for the year ended December 31, 2014 | ||||||||||||
As of December 31, 2014: | Level 3 | |||||||||||||
US$(’000) | US$(’000) | |||||||||||||
Intangible assets | 392 | 392 | 989 | |||||||||||
Goodwill | 6,772 | 6,772 | 4,650 | |||||||||||
Due to intensified market competition and continued rising cost from suppliers, which resulted in the decrease in gross margin, operation performance, and consecutive net losses incurred in 2014, the Company performed impairment analysis on its intangible assets and goodwill as of December 31, 2014. The fair value of intangible assets and goodwill was determined using income approach. The following table summarizes the quantitative information about the Company’s Level 3 fair value measurements, which utilize significant unobservable internally-developed inputs: | ||||||||||||||
Fair Value as of | Valuation technique(s) | Unobservable inputs | Ranges | |||||||||||
31-Dec-14 | ||||||||||||||
US$(’000) | ||||||||||||||
Intangible assets | 392 | Multi-period Excess | Remaining useful life | 1.17 | - | 5.17 | ||||||||
Earning | (in years) | |||||||||||||
Discount rate | 24.40% | - | 26.20% | |||||||||||
Decline in EBIT without non-compete agreement | 10% | |||||||||||||
Annual customer attrition rate | 15% | |||||||||||||
Goodwill | 6,772 | Discounted Cash Flow | Projection year | 6 | ||||||||||
(in years) | ||||||||||||||
Discount rate | 24.40% | - | 26.20% | |||||||||||
Terminal growth rate | 3.50% | |||||||||||||
Revenue Recognition, Policy [Policy Text Block] | Revenue recognition | |||||||||||||
The Company's revenue recognition policies are in compliance with ASC Topic 605 “Revenue Recognition”. In accordance with ASC Topic 605, revenues are recognized when the four of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the service has been rendered, (iii) the fees are fixed or determinable, and (iv) collectability is reasonably assured. | ||||||||||||||
Sales include revenues from selling advertising time purchased from TV stations, internet advertising space on the Company’s website portals and effective sales lead information collected, providing online advertising, marketing and other related value added technical services. No revenue from advertising-for-advertising barter transactions was recognized because the transactions did not meet the criteria for recognition in ASC Topic 605, subtopic 20. Advertising contracts establish the fixed price and advertising services to be provided. Pursuant to advertising contracts, the Company provides advertisement placements in different formats, including but not limited to banners, links, logos, buttons, rich media and content integration in specified locations on the sites and for agreed periods; and/or places the advertisements onto purchased advertisement time during specific TV programs for agreed periods. Revenue is recognized ratably over the period the advertising is provided and, as such, the Company considers the services to have been delivered. The Company treats all elements of advertising contracts as a single unit of accounting for revenue recognition purposes. Value added technical services are provided based on two types of contracts: (i) fixed price and (ii) fixed price with minimum performance threshold. For contracts with fixed price term, revenue is recognized on a pro-rata basis over the engaged service period. For fixed price contracts with minimum performance threshold, revenue is recognized when the specified performance criteria is met. Revenue from search engine marketing services is recognized on a monthly basis based on the direct cost consumed through search engines for providing such services with a premium. The Company recognizes the revenue on a gross basic, as the Company believes that it acts as the primary obligor of this transaction, which is considered the most important factor for a gross revenue recognition in accordance with ASC Topic 605, subtopic 45. Revenue from selling effective sales lead information is recognized based on fixed price per sales lead when information is delivered and accepted by clients. Based upon the Company’s credit assessments of its clients prior to entering into contracts, the Company determines if collectability is reasonably assured. In situations where collectability is not deemed to be reasonably assured, the Company recognizes revenue upon receipt of cash from clients, only after services have been provided and all other criteria for revenue recognition have been met. | ||||||||||||||
Cost of Sales, Policy [Policy Text Block] | Cost of sales | |||||||||||||
Cost of sales primarily includes the cost of media advertising time, internet advertisement related resources and other technical services purchased from third parties, direct labor cost and benefits. | ||||||||||||||
Advertising Costs, Policy [Policy Text Block] | Advertising costs | |||||||||||||
Advertising costs for the Company’s own brand building are not includable in cost of sales, they are expensed when incurred or amortized over the estimated beneficial period and are included in “sales and marketing expenses” in the statement of operations and comprehensive (loss)/income. For the years ended December 31, 2014 and 2013, advertising expenses for the Company’s own brand building were approximately US$3,938,000 and US$450,000, respectively. | ||||||||||||||
Research and Development Expense, Policy [Policy Text Block] | Research and development expenses | |||||||||||||
The Company accounts for the cost of developing and upgrading technologies and platforms and intellectual property that are used in its daily operations in research and development cost. Research and development costs are charged to expense when incurred. Expenses for research and development for the years ended December 31, 2014 and 2013 were approximately US$2,659,000 and US$1,995,000, respectively. | ||||||||||||||
Income Tax, Policy [Policy Text Block] | Income taxes | |||||||||||||
The Company follows the guidance of ASC Topic 740 “Income taxes” and uses liability method to account for income taxes. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets, if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized in statement of income and comprehensive income in the period that includes the enactment date. | ||||||||||||||
Income Tax Uncertainties, Policy [Policy Text Block] | Uncertain tax positions | |||||||||||||
The Company follows the guidance of ASC Topic 740 “Income taxes”, which prescribes a more likely than not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. This Interpretation also provides guidance on recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures. | ||||||||||||||
The Company recognizes interest on non-payment of income taxes under requirement by tax law and penalties associated with tax positions when a tax position does not meet the minimum statutory threshold to avoid payment of penalties. The tax returns of the Company’s PRC subsidiary and VIEs are subject to examination by the relevant tax authorities. According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitations is extended to five years under special circumstances, where the underpayment of taxes is more than RMB100,000. In the case of transfer pricing issues, the statute of limitation is ten years. There is no statute of limitation in the case of tax evasion. The Company did not have any material interest or penalties associated with tax positions for the years ended December 31, 2014 and 2013 and did not have any significant unrecognized uncertain tax positions as of December 31, 2014 and 2013, respectively. | ||||||||||||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Share-based Compensation | |||||||||||||
The Company accounted for share-based compensation to employees in accordance with ASC Topic 718 “Compensation-Stock Compensation” which requires that share-based payment transactions be measured based on the grant-date fair value of the equity instrument issued and recognized as compensation expense over the requisite service period, or vesting period. | ||||||||||||||
Comprehensive Income, Policy [Policy Text Block] | Comprehensive income | |||||||||||||
The Company accounts for comprehensive income in accordance with ASC Topic 220 “Comprehensive Income”, which establishes standards for reporting and displaying comprehensive income and its components in the consolidated financial statements. Comprehensive income is defined as the change in equity of a company during a period from transactions and other events and circumstances excluding transactions resulting from investments from owners and distributions to owners. Accumulated other comprehensive income, as presented in the Company’s consolidated balance sheets are the cumulative foreign currency translation adjustments. | ||||||||||||||
Earnings Per Share, Policy [Policy Text Block] | Earnings (loss) per share | |||||||||||||
Earnings (loss) per share are calculated in accordance with ASC Topic 260, “Earnings Per Share”. Basic earnings (loss) per share is computed by dividing income (loss) attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. Common shares issuable upon the conversion of the convertible preferred shares are included in the computation of diluted earnings per share on an “if-converted” basis when the impact is dilutive. The dilutive effect of outstanding common stock warrants and options are reflected in the diluted earnings per share by application of the treasury stock method when the impact is dilutive. | ||||||||||||||
Commitments and Contingencies, Policy [Policy Text Block] | Commitments and contingencies | |||||||||||||
The Company has adopted ASC 450 “Contingencies” subtopic 20, in determining its accruals and disclosures with respect to loss contingencies. Accordingly, estimated losses from loss contingencies are accrued by a charge to income when information available prior to issuance of the financial statements indicates that it is probable that a liability have been incurred and the amount of the loss can be reasonably estimated. Legal expenses associated with the contingency are expensed as incurred. If a loss contingency is not probable or reasonably estimable, disclosure of the loss contingency is made in the financial statements when it is at least reasonably possible that a material loss could be incurred. | ||||||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | Recent accounting standards | |||||||||||||
In April 2014, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” This ASU changes the threshold for reporting discontinued operations and adds new disclosures. The new guidance defines a discontinued operation as a disposal that “represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results.” The standard is required to be adopted by public business entities in annual periods beginning on or after December 15, 2014, and interim periods within those annual periods. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued or available for issuance. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position and results of operations. | ||||||||||||||
In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”. This ASU supercedes the revenue recognition requirements in ASC Topic 605-Revenue Recognition and most industry-specific guidance throughout the Codification. The standard requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This ASU should be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the ASU recognized at the date of initial application. In accordance with ASU No. 2014-09 issued in May 2014, for a public entity, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. For all other entities (nonpublic entities), the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018. At a meeting of the FASB on April 1, 2015, the FASB tentatively decided to defer for one year the effective date of this new revenue standard for public and nonpublic entities reporting under US GAAP. The Board also tentatively decided to permit entities to early adopt the standard. The tentative decisions will be exposed in an upcoming proposed ASU with a 30-day comment period. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position and results of operations. | ||||||||||||||
In June 2014, the FASB issued ASU No. 2014-12, “Compensation-Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved after the Requisite Service Period”. This ASU requires that a performance target that affects vesting and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. For all entities, the amendments in this ASU are effective for annual periods beginning after December 15, 2015, including interim periods within that reporting period. Earlier adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position or results of operations. | ||||||||||||||
In January 2015, the FASB issued ASU No. 2015-01, “Income Statement -Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items”. This ASU eliminates from GAAP the concept of extraordinary items. The Board concluded that the amendments in this ASU will not result in a loss of information because although the amendments will eliminate the requirements in Subtopic 225-20 for reporting entities to consider whether an underlying event or transaction is extraordinary, the presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position or results of operations. | ||||||||||||||
In February 2015, the FASB issued ASU No. 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis”. The amendment in this ASU changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. Under the amendments in this ASU, all reporting entities are within the scope of Subtopic 810-10, Consolidation—Overall, including limited partnerships and similar legal entities, unless a scope exception applies. The presumption that a general partner controls a limited partnership has been eliminated. In addition, fees paid to decision makers that meet certain conditions no longer cause decision makers to consolidate VIEs in certain instances. The amendments place more emphasis in the consolidation evaluation on variable interests other than fee arrangements such as principal investment risk (for example, debt or equity interests), guarantees of the value of the assets or liabilities of the VIE, written put options on the assets of the VIE, or similar obligations, including some liquidity commitments or agreements (explicit or implicit). Additionally, the amendments in this ASU reduce the extent to which related party arrangements cause an entity to be considered a primary beneficiary. Overall, the amendments in this ASU are an improvement to current GAAP because they simplify the Codification and reduce the number of consolidation models through the elimination of the indefinite deferral of Statement 167 and because they place more emphasis on risk of loss when determining a controlling financial interest. The amendments in this ASU are effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2016, and for interim periods within fiscal years beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. A reporting entity may apply the amendments in this Update using a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption. A reporting entity also may apply the amendments retrospectively. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position or results of operations. | ||||||||||||||
Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption. |
Note_2_Variable_Interest_Entit1
Note 2 - Variable Interest Entities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Variable Interest Entities Disclosure [Abstract] | |||||||||
Schedule of Variable Interest Entities [Table Text Block] | As of December 31, | ||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
Assets | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 4,239 | $ | 3,326 | |||||
Term deposit | 3,465 | 3,467 | |||||||
Accounts receivable, net | 2,407 | 7,637 | |||||||
Other receivables, net | 8,349 | 3,416 | |||||||
Prepayment and deposit to suppliers | 8,091 | 14,690 | |||||||
Due from related parties | - | 174 | |||||||
Other current assets | 58 | 27 | |||||||
Deferred tax assets-current | 107 | 118 | |||||||
Total current assets | 26,716 | 32,855 | |||||||
Long-term investments | 865 | 801 | |||||||
Property and equipment, net | 869 | 918 | |||||||
Intangible assets, net | 9,238 | 6,013 | |||||||
Deposit and prepayment for purchasing of software technology | 850 | 2,453 | |||||||
Goodwill | 6,772 | 11,450 | |||||||
Deferred tax assets-non current | 795 | 482 | |||||||
Total Assets | $ | 46,105 | $ | 54,972 | |||||
Liabilities | |||||||||
Current liabilities: | |||||||||
Short-term bank loan | $ | 817 | $ | 818 | |||||
Accounts payable | 782 | 421 | |||||||
Advances from customers | 832 | 995 | |||||||
Accrued payroll and other accruals | 357 | 279 | |||||||
Due to Control Group | 11 | 11 | |||||||
Due to noncontrolling interest of VIE * | 638 | - | |||||||
Payable for purchasing of software technology | 2,826 | ||||||||
Taxes payable | 2,846 | 6,542 | |||||||
Other payables | 580 | 142 | |||||||
Total current liabilities | 9,689 | 9,208 | |||||||
Deferred tax Liabilities-non current | 964 | 1,439 | |||||||
Total Liabilities | $ | 10,653 | $ | 10,647 |
Note_3_Summary_of_Significant_1
Note 3 - Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Note 3 - Summary of Significant Accounting Policies (Tables) [Line Items] | |||||||||||||
Foreign Currency Exchange Rates [Table Text Block] | As of December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
Balance sheet items, except for equity accounts | 6.119 | 6.114 | |||||||||||
Property, Plant and Equipment Useful Life [Table Text Block] | Vehicles (years) | 5 | |||||||||||
Office equipment (years) | 3 | - | 5 | ||||||||||
Electronic devices (years) | 5 | ||||||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Domain Name | indefinite | |||||||||||
Contract Backlog (years) | 0.6 | - | 0.7 | ||||||||||
Customer Relationship (years) | 5 | - | 9 | ||||||||||
Non-Compete Agreement (years) | 5 | - | 6 | ||||||||||
Software technologies (years) | 5 | ||||||||||||
Fair Value Measurements, Nonrecurring [Table Text Block] | Carrying value | Fair value measurement using inputs | Impairment charge for the year ended December 31, 2014 | ||||||||||
As of December 31, 2014: | Level 3 | ||||||||||||
US$(’000) | US$(’000) | ||||||||||||
Intangible assets | 392 | 392 | 989 | ||||||||||
Goodwill | 6,772 | 6,772 | 4,650 | ||||||||||
Fair Value Inputs, Assets, Quantitative Information [Table Text Block] | Fair Value as of | Valuation technique(s) | Unobservable inputs | Ranges | |||||||||
31-Dec-14 | |||||||||||||
US$(’000) | |||||||||||||
Intangible assets | 392 | Multi-period Excess | Remaining useful life | 1.17 | - | 5.17 | |||||||
Earning | (in years) | ||||||||||||
Discount rate | 24.40% | - | 26.20% | ||||||||||
Decline in EBIT without non-compete agreement | 10% | ||||||||||||
Annual customer attrition rate | 15% | ||||||||||||
Goodwill | 6,772 | Discounted Cash Flow | Projection year | 6 | |||||||||
(in years) | |||||||||||||
Discount rate | 24.40% | - | 26.20% | ||||||||||
Terminal growth rate | 3.50% | ||||||||||||
Items in Income Statements and Comprehensive Income and Statements of Cash Flows Twelve Months Ended [Member] | |||||||||||||
Note 3 - Summary of Significant Accounting Policies (Tables) [Line Items] | |||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Year ended December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
Items in the statements of income and comprehensive income, and statements of cash flows | 6.1428 | 6.1982 |
Note_5_Accounts_Receivable_Net1
Note 5 - Accounts Receivable, Net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accounts Receivable Disclosure [Abstract] | |||||||||
Schedule Of Accounts Receivable [Table Text Block] | As of December 31, | ||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
Accounts receivable | 5,429 | 13,358 | |||||||
Allowance for doubtful debts | (3,022 | ) | (5,685 | ) | |||||
Accounts receivable, net | 2,407 | 7,673 |
Note_6_Other_Receivables_Net_T
Note 6 - Other Receivables, Net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Receivables [Abstract] | |||||||||
Schedule of Other Receivables [Table Text Block] | As of December 31, | ||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
Short-term loan made for marketing campaign | 65 | 1,636 | |||||||
Short-term loan to unrelated entities | - | 790 | |||||||
Term deposit interest receivable | 56 | 57 | |||||||
Receivable on disposal of fixed assets | - | 98 | |||||||
Receivables on disposal of VIEs | - | 1,611 | |||||||
Staff advances for normal business purpose | 73 | 107 | |||||||
TV advertisement deposit and prepayment receivable | 8,034 | - | |||||||
Overdue deposits | 1,020 | 968 | |||||||
Allowance for doubtful debts | (856 | ) | (968 | ) | |||||
Other receivables, net | 8,392 | 4,299 |
Note_7_Prepayments_and_Deposit1
Note 7 - Prepayments and Deposit to Suppliers (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Prepayments And Deposits To Suppliers Disclosure [Abstract] | |||||||||
Schedule Of Prepayments And Deposit To Suppliers [Table Text Block] | As of December 31, | ||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
Deposits to internet resources and TV advertisement providers | 3,575 | 8,907 | |||||||
Prepayments to internet resources and TV advertisement providers | 4,451 | 5,292 | |||||||
Other deposits and prepayments | 66 | 493 | |||||||
8,092 | 14,692 |
Note_8_Due_from_Related_Partie1
Note 8 - Due from Related Parties (Tables) (Due From Related Parties [Member]) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Due From Related Parties [Member] | |||||||||
Note 8 - Due from Related Parties (Tables) [Line Items] | |||||||||
Schedule of Related Party Transactions [Table Text Block] | As of December 31, | ||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
Beijing Fengshangyinli Technology Co., Ltd. | - | 36 | |||||||
Beijing Saimeiwei Food Equipment Technology Co., Ltd. | 51 | 295 | |||||||
Beijing Telijie Century Environmental Technology Co., Ltd. | - | 171 | |||||||
51 | 502 |
Note_9_Longterm_Investments_Ta
Note 9 - Long-term Investments (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||
Schedule of Investment in and Advance to Equity Investment Affiliates [Table Text Block] | As of December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
US$(’000) | US$(’000) | ||||||||||||
Equity method investments: | |||||||||||||
Investment in equity method investees | 806 | 760 | |||||||||||
Advance to equity method investees | 85 | 85 | |||||||||||
891 | 845 | ||||||||||||
Cost method investments: | |||||||||||||
Investment in cost method investees | 18 | - | |||||||||||
Total long-term investments | 909 | 845 | |||||||||||
Equity Method Investments [Table Text Block] | Shenzhen | Zhao Shang | Total | ||||||||||
Mingshan | Ke Hubei | ||||||||||||
US$(’000) | US$(’000) | US$(’000) | |||||||||||
Balance as of December 31, 2012 | 492 | 467 | 959 | ||||||||||
Share of losses in equity method investees | (40 | ) | (143 | ) | (183 | ) | |||||||
Advance to equity method investees | - | 41 | 41 | ||||||||||
Exchange translation adjustment | 14 | 14 | 28 | ||||||||||
Balance as of December 31, 2013 | 466 | 379 | 845 | ||||||||||
Share of (loss)/income in equity method investees | (4 | ) | 51 | 47 | |||||||||
Exchange translation adjustment | (1 | ) | - | (1 | ) | ||||||||
Balance as of December 31, 2014 | 461 | 430 | 891 |
Note_10_Property_and_Equipment1
Note 10 - Property and Equipment, Net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Schedule of Property and Equipment [Table Text Block] | As of December 31, | ||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
Leasehold improvement | 180 | - | |||||||
Vehicles | 890 | 865 | |||||||
Office equipment | 1,415 | 1,433 | |||||||
Electronic devices | 1,244 | 1,245 | |||||||
Property and equipment, cost | 3,729 | 3,543 | |||||||
Less: accumulated depreciation | (2,786 | ) | (2,486 | ) | |||||
Property and equipment, net | 943 | 1,057 |
Note_11_Intangible_Assets_Net_
Note 11 - Intangible Assets, Net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Disclosure Text Block [Abstract] | |||||||||
Schedule of Finite and Indefinite Lived Intangible Assets [Table Text Block] | As of December 31, | ||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
Intangible assets not subject to amortization: | |||||||||
Domain name | 1,579 | 1,580 | |||||||
Intangible assets subject to amortization: | |||||||||
Contract backlog | 202 | 203 | |||||||
Customer relationship | 3,545 | 3,548 | |||||||
Non-compete agreements | 1,402 | 1,403 | |||||||
Software technologies | 335 | 335 | |||||||
SMEs operation management applications | 5,277 | - | |||||||
Cloud-computing based software platforms | 1,517 | 1,518 | |||||||
Other computer software | 78 | 78 | |||||||
Intangible assets, cost | 13,935 | 8,665 | |||||||
Less: accumulated amortization | (3,704 | ) | (2,650 | ) | |||||
Less: accumulated impairment losses | (993 | ) | - | ||||||
Intangible assets, net | 9,238 | 6,015 |
Note_13_Goodwill_Tables
Note 13 - Goodwill (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Disclosure Text Block Supplement [Abstract] | |||||
Schedule of Goodwill [Table Text Block] | Amount | ||||
US$(’000) | |||||
Balance as of December 31, 2012 | 11,083 | ||||
Exchange translation adjustment | 367 | ||||
Balance as of December 31, 2013 | 11,450 | ||||
Goodwill impairment losses | (4,668 | ) | |||
Exchange translation adjustment | (10 | ) | |||
Balance as of December 31, 2014 | 6,772 |
Note_15_Accrued_Payroll_and_Ot1
Note 15 - Accrued Payroll and Other Accruals (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Schedule of Accrued Liabilities [Table Text Block] | As of December 31, | ||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
Accrued payroll and staff welfare | 388 | 382 | |||||||
Accrued operating expenses | 197 | 294 | |||||||
585 | 676 |
Note_18_Taxation_Tables
Note 18 - Taxation (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Income Tax Disclosure [Abstract] | |||||||||
Schedule of Taxes Payable [Table Text Block] | As of December 31, | ||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
Turnover tax and surcharge payable | 1,173 | 2,343 | |||||||
Enterprise income tax payable | 2,159 | 4,686 | |||||||
3,332 | 7,029 | ||||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Year Ended December 31, | ||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
Pre-tax (loss)/income | (14,592 | ) | 716 | ||||||
U.S. federal rate | 35 | % | 35 | % | |||||
Income tax benefit/(expense) computed at U.S. federal rate | 5,107 | (251 | ) | ||||||
Reconciling items: | |||||||||
Rate differential for domestic earnings | (927 | ) | 119 | ||||||
Preferential tax treatments and tax holiday effects | (176 | ) | 754 | ||||||
Change in tax rate for loss recognized as deferred tax assets | - | 144 | |||||||
Valuation allowance on deferred tax assets | (2,281 | ) | (1,426 | ) | |||||
Goodwill impairment loss | (1,162 | ) | - | ||||||
Loss not recognized as deferred tax assets | - | (2 | ) | ||||||
Other non-taxable income/(non-deductible expenses) | 92 | (154 | ) | ||||||
Effective income tax benefit/(expense) | 653 | (816 | ) | ||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Year Ended December 31, | ||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
Current-PRC | (197 | ) | (1,302 | ) | |||||
Deferred-PRC | 850 | 486 | |||||||
653 | (816 | ) | |||||||
Schedule of Deferred Tax Liabilities [Table Text Block] | Amount | ||||||||
US$(’000) | |||||||||
Balance as of December 31, 2012 | 1,689 | ||||||||
Reversal during the period | (306 | ) | |||||||
Exchange translation adjustment | 56 | ||||||||
Balance as of December 31, 2013 | 1,439 | ||||||||
Reversal during the period | (474 | ) | |||||||
Exchange translation adjustment | (1 | ) | |||||||
Balance as of December 31, 2014 | 964 | ||||||||
Schedule of Deferred Tax Assets [Table Text Block] | As of December 31, | ||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
Tax effect of net operating losses carried forward | 6,655 | 3,899 | |||||||
Bad debts provision | 943 | 1,594 | |||||||
Valuation allowance | (6,385 | ) | (4,581 | ) | |||||
1,213 | 912 | ||||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | As of December 31, | ||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
Deferred tax assets reclassified as current asset | 176 | 153 | |||||||
Deferred tax assets reclassified as non-current asset | 1,037 | 759 | |||||||
1,213 | 912 |
Note_20_Warrants_Tables
Note 20 - Warrants (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Warrants Disclosure [Abstract] | |||||||||||||||||||||||||
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | Warrants Outstanding | Warrants Exercisable | |||||||||||||||||||||||
Number of | Weighted | Average | Number of | Weighted | Average | ||||||||||||||||||||
underlying | Average | Remaining | underlying | Average | Remaining | ||||||||||||||||||||
shares | Exercise | Contractual | shares | Exercise | Contractual | ||||||||||||||||||||
Price | Life (years) | Price | Life (years) | ||||||||||||||||||||||
Balance, December 31, 2012 | 2,363,456 | $ | 3.52 | 1.63 | 2,363,456 | $ | 3.52 | 1.63 | |||||||||||||||||
Granted / Vested | - | - | |||||||||||||||||||||||
Forfeited | - | - | |||||||||||||||||||||||
Exercised | - | - | |||||||||||||||||||||||
Expired | - | - | |||||||||||||||||||||||
Balance, December 31, 2013 | 2,363,456 | $ | 3.52 | 0.63 | 2,363,456 | $ | 3.52 | 0.63 | |||||||||||||||||
Granted / Vested | - | - | |||||||||||||||||||||||
Forfeited | - | - | |||||||||||||||||||||||
Exercised | - | - | |||||||||||||||||||||||
Expired | (2,363,456 | ) | (2,363,456 | ) | |||||||||||||||||||||
Balance, December 31, 2014 | - | - |
Note_22_Related_Party_Transact1
Note 22 - Related Party Transactions (Tables) (Revenue from Related Parties [Member]) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Revenue from Related Parties [Member] | |||||||||
Note 22 - Related Party Transactions (Tables) [Line Items] | |||||||||
Schedule of Related Party Transactions [Table Text Block] | Year Ended December 31, | ||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
-Beijing Saturday Education Technology Co., Ltd. | 91 | - | |||||||
-Beijing Saimeiwei Food Equipment Technology Co., Ltd, | 260 | 239 | |||||||
-Beijing Fengshangyinli Technology Co., Ltd. | 2 | 7 | |||||||
-Beijing Telijie Century Environmental Technology Co., Ltd. | - | 115 | |||||||
353 | 361 |
Note_25_Commitments_and_Contin1
Note 25 - Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Office Rental | ||||
US$(’000) | |||||
Year ending December 31, | |||||
-2015 | 381 | ||||
-2016 | 135 | ||||
Total | 516 |
Note_26_Segment_Reporting_Tabl
Note 26 - Segment Reporting (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Brand | Inter- | |||||||||||||||||||||||||||
management | segment and | ||||||||||||||||||||||||||||
Internet | TV | Bank | and sales | reconciling | |||||||||||||||||||||||||
Ad. | Ad. | Kiosk | channel | Others | item | Total | |||||||||||||||||||||||
building | |||||||||||||||||||||||||||||
US$ | US$ | US$ | US$ | US$ | US$ | US$ | |||||||||||||||||||||||
(‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | |||||||||||||||||||||||
Revenue | 31,261 | 6,429 | 276 | 931 | - | - | 38,897 | ||||||||||||||||||||||
Cost of sales | 25,645 | 6,014 | 13 | 603 | - | - | 32,275 | ||||||||||||||||||||||
Total operating expenses | 12,575 | 450 | 124 | 1,974 | 6,133 | * | - | 21,256 | |||||||||||||||||||||
Gain on disposal of VIEs included in total operating expenses | (266 | ) | - | - | - | - | - | (266 | ) | ||||||||||||||||||||
Goodwill impairment loss included in total operating expenses | 3,750 | - | - | 900 | - | - | 4,650 | ||||||||||||||||||||||
Intangible assets impairment loss included in total operating expenses | 442 | - | - | 547 | - | - | 989 | ||||||||||||||||||||||
Depreciation and amortization expense included in total operating expenses | 1,005 | 30 | 124 | 201 | 77 | 1,437 | |||||||||||||||||||||||
Operating income (loss) | (6,959 | ) | (35 | ) | 139 | (1,646 | ) | (6,133 | ) | - | (14,634 | ) | |||||||||||||||||
Share of income/(loss) in equity investment affiliates | - | - | - | 51 | (4 | ) | 47 | ||||||||||||||||||||||
Expenditure for long-term assets | 1,113 | - | - | 2 | 12 | - | 1,127 | ||||||||||||||||||||||
Net income (loss) | (6,380 | ) | (92 | ) | 139 | (1,423 | ) | (6,136 | ) | - | (13,892 | ) | |||||||||||||||||
Total assets – December 31, 2014 | 43,851 | 13,228 | 296 | 2,989 | 6,558 | (19,492 | ) | 47,430 | |||||||||||||||||||||
Internet | TV | Bank | Brand | Others | Inter- segment and reconciling item | Total | |||||||||||||||||||||||
Ad. | Ad. | kiosk | management | ||||||||||||||||||||||||||
and sales | |||||||||||||||||||||||||||||
channel | |||||||||||||||||||||||||||||
building | |||||||||||||||||||||||||||||
US$ | US$ | US$ | US$ | US$ | US$ | US$ | |||||||||||||||||||||||
(‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | (‘000) | |||||||||||||||||||||||
Revenue | 20,672 | 6,801 | 251 | 2,569 | - | - | 30,293 | ||||||||||||||||||||||
Cost of sales | 8,643 | 6,463 | 1 | 1,456 | - | - | 16,563 | ||||||||||||||||||||||
Total operating expenses | 8,452 | 1,216 | 192 | 1,936 | 1,322 | * | - | 13,118 | |||||||||||||||||||||
Loss on disposal of VIEs included in total operating expenses | - | - | - | 543 | - | - | 543 | ||||||||||||||||||||||
Loss on disposal of intangible asset included in total operating expenses | - | - | - | 315 | - | - | 315 | ||||||||||||||||||||||
Depreciation and amortization expense included in total operating expenses | 1,024 | 42 | 192 | 217 | 142 | - | 1,617 | ||||||||||||||||||||||
Operating income (loss) | 3,577 | (878 | ) | 58 | (823 | ) | (1,322 | ) | - | 612 | |||||||||||||||||||
Share of losses in equity investment affiliates | - | - | - | (143 | ) | (40 | ) | - | (183 | ) | |||||||||||||||||||
Expenditure for long-term assets | 2,486 | - | - | 2 | 11 | - | 2,499 | ||||||||||||||||||||||
Net income (loss) | 2,638 | (881 | ) | 57 | (899 | ) | (1,198 | ) | - | (283 | ) | ||||||||||||||||||
Total assets – December 31, 2013 | 51,324 | 17,022 | 420 | 4,524 | 7,065 | (23,521 | ) | 56,834 |
Note_27_Loss_Per_Share_Tables
Note 27 - Loss Per Share (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Year Ended December 31, | ||||||||
2014 | 2013 | ||||||||
US$(’000) | US$(’000) | ||||||||
Net loss attributable to ChinaNet Online Holdings, Inc. (numerator for basic and diluted earnings per share) | $ | (13,738 | ) | $ | (234 | ) | |||
Weighted average number of common shares outstanding – Basic | 22,414,523 | 22,284,485 | |||||||
Effect of diluted securities: | |||||||||
Unvested restricted common stocks | - | - | |||||||
Warrants and options | - | - | |||||||
Weighted average number of common shares outstanding – Diluted | 22,414,523 | 22,284,485 | |||||||
Loss per share-Basic and diluted | $ | (0.61 | ) | $ | (0.01 | ) |
Note_28_Sharebased_Compensatio1
Note 28 - Share-based Compensation Expenses (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Applicable stock price | $ | 0.908 | ||||||||||||||||||||||
Exercise multiple | 2.5 | ||||||||||||||||||||||||
Tenor (years) | 5 | ||||||||||||||||||||||||
Risk-free interest rate | 1.67 | % | |||||||||||||||||||||||
Dividend yield | - | ||||||||||||||||||||||||
Expected volatility | 98.68 | % | |||||||||||||||||||||||
Exercise price of the option | $ | 1.23 | |||||||||||||||||||||||
Value per option | $ | 0.495 | |||||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Option Outstanding | Option Exercisable | |||||||||||||||||||||||
Number of underlying shares | Weighted | Weighted | Weighted | Weighted | |||||||||||||||||||||
Average | Average | Average | Average | ||||||||||||||||||||||
Remaining | Exercise | Number of underlying shares | Remaining | Exercise | |||||||||||||||||||||
Contractual | Price | Contractual | Price | ||||||||||||||||||||||
Life (Years) | Life (Years) | ||||||||||||||||||||||||
Balance, December 31, 2012 | 939,440 | 8.51 | $ | 1.42 | 939,440 | 8.51 | $ | 1.42 | |||||||||||||||||
Granted/Vested | - | - | |||||||||||||||||||||||
Exercised | - | - | |||||||||||||||||||||||
Balance, December 31, 2013 | 939,440 | 7.51 | $ | 1.42 | 939,440 | 7.51 | $ | 1.42 | |||||||||||||||||
Granted/Vested | 200,000 | 5 | $ | 1.23 | 200,000 | 5 | $ | 1.23 | |||||||||||||||||
Cancelled | (190,500 | ) | $ | 1.2 | (190,500 | ) | $ | 1.2 | |||||||||||||||||
Expired | (54,000 | ) | $ | 5 | (54,000 | ) | $ | 5 | |||||||||||||||||
Balance, December 31, 2014 | 894,940 | 6.48 | $ | 1.21 | 894,940 | 6.48 | $ | 1.21 |
Note_1_Organization_and_Nature1
Note 1 - Organization and Nature of Operations (Details) | 0 Months Ended | 12 Months Ended | |
Jun. 26, 2009 | Dec. 31, 2014 | Dec. 31, 2013 | |
Note 1 - Organization and Nature of Operations (Details) [Line Items] | |||
Cost Method Investment, Ownership Percentage | 10.00% | ||
China Net BVI [Member] | |||
Note 1 - Organization and Nature of Operations (Details) [Line Items] | |||
Consolidated Subsidiary Ownership Percentage | 100.00% | ||
Shares Issued Pursuant to Share Exchange Agreement (in Shares) | 13,790,800 | ||
Income Earned Percentage | 100.00% | ||
Shanghai Borongdingsi [Member] | |||
Note 1 - Organization and Nature of Operations (Details) [Line Items] | |||
Consolidated Subsidiary Ownership Percentage | 51.00% | ||
Beijing Chuang Fu Tian Xia [Member] | |||
Note 1 - Organization and Nature of Operations (Details) [Line Items] | |||
Consolidated Subsidiary Ownership Percentage | 51.00% | ||
Shenzhen Mingshan [Member] | |||
Note 1 - Organization and Nature of Operations (Details) [Line Items] | |||
Equity Method Investment, Ownership Percentage | 23.18% | 25.50% | |
Zhao Shang Ke Hubei [Member] | |||
Note 1 - Organization and Nature of Operations (Details) [Line Items] | |||
Equity Method Investment, Ownership Percentage | 25.50% |
Note_2_Variable_Interest_Entit2
Note 2 - Variable Interest Entities (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Note 2 - Variable Interest Entities (Details) [Line Items] | ||
Sales Revenue, Services, Net | $38,897,000 | $30,293,000 |
Cost of Services | 32,275,000 | 16,563,000 |
Operating Expenses | 21,256,000 | 13,118,000 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | -13,892,000 | -283,000 |
VIEs [Member] | ||
Note 2 - Variable Interest Entities (Details) [Line Items] | ||
Sales Revenue, Services, Net | 38,172,000 | 29,920,000 |
Cost of Services | 32,272,000 | 16,561,000 |
Operating Expenses | 15,425,000 | 9,927,000 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | ($8,518,000) | $1,516,000 |
Note_2_Variable_Interest_Entit3
Note 2 - Variable Interest Entities (Details) - Consolidated VIEs’ Assets and Liabilities | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | USD ($) | CNY | USD ($) | CNY | USD ($) | USD ($) | VIEs [Member] | VIEs [Member] | ||
USD ($) | USD ($) | |||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $5,037 | $3,442 | $5,483 | $4,239 | $3,326 | |||||
Term deposit | 3,465 | 3,467 | 3,465 | 3,467 | ||||||
Accounts receivable, net | 2,407 | 7,673 | 2,407 | 7,637 | ||||||
Other receivables, net | 8,392 | 4,299 | 8,349 | 3,416 | ||||||
Prepayment and deposit to suppliers | 8,092 | 14,692 | 8,091 | 14,690 | ||||||
Due from related parties | 51 | 502 | 174 | |||||||
Other current assets | 61 | 27 | 58 | 27 | ||||||
Deferred tax assets-current | 176 | 153 | 107 | 118 | ||||||
Total current assets | 27,681 | 34,255 | 26,716 | 32,855 | ||||||
Long-term investments | 909 | 845 | 865 | 801 | ||||||
Property and equipment, net | 943 | 1,057 | 869 | 918 | ||||||
Intangible assets, net | 9,238 | 6,015 | 9,238 | 6,013 | ||||||
Deposit and prepayment for purchasing of software technology | 850 | 2,453 | 850 | 2,453 | ||||||
Goodwill | 6,772 | 11,450 | 11,083 | 6,772 | 11,450 | |||||
Deferred tax assets-non current | 1,037 | 759 | 795 | 482 | ||||||
Total Assets | 47,430 | 56,834 | 46,105 | 54,972 | ||||||
Current liabilities: | ||||||||||
Short-term bank loan | 817 | [1] | 5,000 | 818 | [1] | 5,000 | 817 | 818 | ||
Accounts payable | 782 | [1] | 421 | [1] | 782 | 421 | ||||
Advances from customers | 832 | [1] | 995 | [1] | 832 | 995 | ||||
Accrued payroll and other accruals | 585 | [1] | 676 | [1] | 357 | 279 | ||||
Due to Control Group | 11 | 11 | ||||||||
Due to noncontrolling interest of VIE * | 638 | [1] | [1] | 638 | ||||||
Payable for purchasing of software technology | 2,826 | 2,826 | ||||||||
Taxes payable | 3,332 | [1] | 7,029 | [1] | 2,846 | 6,542 | ||||
Other payables | 602 | [1] | 288 | [1] | 580 | 142 | ||||
Total current liabilities | 10,414 | 10,227 | 9,689 | 9,208 | ||||||
Deferred tax Liabilities-non current | 964 | [1] | 1,439 | [1] | 964 | 1,439 | ||||
Total Liabilities | $11,521 | $11,809 | $10,653 | $10,647 | ||||||
[1] | All of the VIEs' assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEsdo not represent additional claims on the Company's general assets (Note 2). |
Note_3_Summary_of_Significant_2
Note 3 - Summary of Significant Accounting Policies (Details) | 12 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | |
USD ($) | USD ($) | CNY | Shanghai Borongdingsi [Member] | Sheng Tian Hubei [Member] | Sheng Tian Hubei [Member] | Minimum [Member] | Maximum [Member] | |
USD ($) | ||||||||
Note 3 - Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||
Consolidated Subsidiary Ownership Percentage | 51.00% | |||||||
Maturity of Time Deposits | 3 months | 12 months | ||||||
Equity Method Investment, Ownership Percentage | 20.00% | 50.00% | ||||||
Other than Temporary Impairment Losses, Investments | $0 | $0 | ||||||
Impairment of Long-Lived Assets Held-for-use | 989,000 | 0 | ||||||
Goodwill, Impairment Loss | 4,650,000 | 0 | ||||||
Deconsolidation, Gain (Loss), Amount | 266,000 | -543,000 | ||||||
Percentage Of Voting Interests Acquired | 49.00% | |||||||
Gain Or Loss Changes In Parent's Ownership Interest In A Subsidiary | 260,000 | |||||||
Advertising Expense | 3,938,000 | 450,000 | ||||||
Research and Development Expense | 2,659,000 | 1,995,000 | ||||||
Statute Of Limitations Special Circumstances Underpayment Of Taxes Threshold (in Yuan Renminbi) | 100,000 | |||||||
Unrecognized Tax Benefits | $0 | $0 |
Note_3_Summary_of_Significant_3
Note 3 - Summary of Significant Accounting Policies (Details) - Exchange Rates Used to Translate Amounts in RMB into US$ (Balance Sheet Items Except Equity Accounts [Member]) | Dec. 31, 2014 | Dec. 31, 2013 |
Balance Sheet Items Except Equity Accounts [Member] | ||
Note 3 - Summary of Significant Accounting Policies (Details) - Exchange Rates Used to Translate Amounts in RMB into US$ [Line Items] | ||
Balance sheet items, except for equity accounts | 6.119 | 6.114 |
Note_3_Summary_of_Significant_4
Note 3 - Summary of Significant Accounting Policies (Details) - Exchange Rates Used to Translate Amounts in RMB into US$ (Statements of Income, Comprehensive Income and Cash Flows [Member]) | Dec. 31, 2014 | Dec. 31, 2013 |
Statements of Income, Comprehensive Income and Cash Flows [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Items in the statements of income and comprehensive income, and statements of cash flows | 6.1428 | 6.1982 |
Note_3_Summary_of_Significant_5
Note 3 - Summary of Significant Accounting Policies (Details) - Estimated Useful Lives of Property, Plant, and Equipment | 12 Months Ended |
Dec. 31, 2014 | |
Automobiles [Member] | |
Note 3 - Summary of Significant Accounting Policies (Details) - Estimated Useful Lives of Property, Plant, and Equipment [Line Items] | |
Property, plant and equipment useful life | 5 years |
Office Equipment [Member] | Minimum [Member] | |
Note 3 - Summary of Significant Accounting Policies (Details) - Estimated Useful Lives of Property, Plant, and Equipment [Line Items] | |
Property, plant and equipment useful life | 3 years |
Office Equipment [Member] | Maximum [Member] | |
Note 3 - Summary of Significant Accounting Policies (Details) - Estimated Useful Lives of Property, Plant, and Equipment [Line Items] | |
Property, plant and equipment useful life | 5 years |
Electronic Devices [Member] | |
Note 3 - Summary of Significant Accounting Policies (Details) - Estimated Useful Lives of Property, Plant, and Equipment [Line Items] | |
Property, plant and equipment useful life | 5 years |
Note_3_Summary_of_Significant_6
Note 3 - Summary of Significant Accounting Policies (Details) - Intangible Assets Amortization Schedule | 12 Months Ended |
Dec. 31, 2014 | |
Contract Backlog [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets amortization period | 219 days |
Contract Backlog [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets amortization period | 255 days |
Customer Relationships [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets amortization period | 5 years |
Customer Relationships [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets amortization period | 9 years |
Noncompete Agreements [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets amortization period | 5 years |
Noncompete Agreements [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets amortization period | 6 years |
Software Technologies [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets amortization period | 5 years |
Note_3_Summary_of_Significant_7
Note 3 - Summary of Significant Accounting Policies (Details) - Assets Measured at Fair Value on a Nonrecurring Basis by Level within the Fair Value Hierarchy (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Note 3 - Summary of Significant Accounting Policies (Details) - Assets Measured at Fair Value on a Nonrecurring Basis by Level within the Fair Value Hierarchy [Line Items] | |
Impairment charge | $5,639 |
Fair Value, Inputs, Level 3 [Member] | Intangible Assets [Member] | Fair Value, Measurements, Nonrecurring [Member] | |
Note 3 - Summary of Significant Accounting Policies (Details) - Assets Measured at Fair Value on a Nonrecurring Basis by Level within the Fair Value Hierarchy [Line Items] | |
Carrying value | 392 |
Fair Value, Inputs, Level 3 [Member] | Goodwill [Member] | Fair Value, Measurements, Nonrecurring [Member] | |
Note 3 - Summary of Significant Accounting Policies (Details) - Assets Measured at Fair Value on a Nonrecurring Basis by Level within the Fair Value Hierarchy [Line Items] | |
Carrying value | 6,772 |
Intangible Assets [Member] | Fair Value, Measurements, Nonrecurring [Member] | |
Note 3 - Summary of Significant Accounting Policies (Details) - Assets Measured at Fair Value on a Nonrecurring Basis by Level within the Fair Value Hierarchy [Line Items] | |
Carrying value | 392 |
Impairment charge | 989 |
Goodwill [Member] | Fair Value, Measurements, Nonrecurring [Member] | |
Note 3 - Summary of Significant Accounting Policies (Details) - Assets Measured at Fair Value on a Nonrecurring Basis by Level within the Fair Value Hierarchy [Line Items] | |
Carrying value | 6,772 |
Impairment charge | $4,650 |
Note_3_Summary_of_Significant_8
Note 3 - Summary of Significant Accounting Policies (Details) - Quantitative Information about Level 3 Fair Value Measurements (Fair Value, Measurements, Nonrecurring [Member], USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Multi-period Excess Earning [Member] | Fair Value, Inputs, Level 3 [Member] | Intangible Assets [Member] | Minimum [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Intangible assets | 1 year 62 days |
Discount rate | 24.40% |
Multi-period Excess Earning [Member] | Fair Value, Inputs, Level 3 [Member] | Intangible Assets [Member] | Maximum [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Intangible assets | 5 years 62 days |
Discount rate | 26.20% |
Multi-period Excess Earning [Member] | Fair Value, Inputs, Level 3 [Member] | Intangible Assets [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Intangible assets (in Dollars) | 392 |
10.00% | |
15.00% | |
Goodwill (in Dollars) | 392 |
Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | Goodwill [Member] | Minimum [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Discount rate | 24.40% |
Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | Goodwill [Member] | Maximum [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Discount rate | 26.20% |
Discounted Cash Flow [Member] | Fair Value, Inputs, Level 3 [Member] | Goodwill [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Intangible assets (in Dollars) | 6,772 |
3.50% | |
Goodwill (in Dollars) | 6,772 |
Goodwill | 6 years |
Fair Value, Inputs, Level 3 [Member] | Intangible Assets [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Intangible assets (in Dollars) | 392 |
Goodwill (in Dollars) | 392 |
Fair Value, Inputs, Level 3 [Member] | Goodwill [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Intangible assets (in Dollars) | 6,772 |
Goodwill (in Dollars) | 6,772 |
Intangible Assets [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Intangible assets (in Dollars) | 392 |
Goodwill (in Dollars) | 392 |
Goodwill [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Intangible assets (in Dollars) | 6,772 |
Goodwill (in Dollars) | 6,772 |
Note_4_Term_Deposit_Details
Note 4 - Term Deposit (Details) | Jul. 05, 2014 |
Term Deposit [Abstract] | |
Time Deposits, Weighted Average Interest Rate, Maturities Year One | 3.30% |
Note_5_Accounts_Receivable_Net2
Note 5 - Accounts Receivable, Net (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Note 5 - Accounts Receivable, Net (Details) [Line Items] | ||
Provision for Doubtful Accounts | ($861,000) | $2,702,000 |
Internet Advertising and TV Advertising [Member] | ||
Note 5 - Accounts Receivable, Net (Details) [Line Items] | ||
Allowance for Doubtful Accounts Receivable, Current | 3,022,000 | 5,685,000 |
Number of Months Past Due | 6 months | |
Provision for Doubtful Accounts, Reversal | 1,023,000 | |
Provision for Doubtful Accounts | 1,910,000 | |
Decrease In Accounts Receivable Due To Deconsolidation Of VIE | 2,700,000 | |
Decrease In Allowance For Doubtful Accounts Receivable Due To Deconsolidation Of VIE | $1,600,000 |
Note_5_Accounts_Receivable_Net3
Note 5 - Accounts Receivable, Net (Details) - Accounts Receivable, Net (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Note 5 - Accounts Receivable, Net (Details) - Accounts Receivable, Net [Line Items] | ||
Accounts receivable | $5,429,000 | $13,358,000 |
Accounts receivable, net | 2,407,000 | 7,673,000 |
Internet Advertising and TV Advertising [Member] | ||
Note 5 - Accounts Receivable, Net (Details) - Accounts Receivable, Net [Line Items] | ||
Allowance for doubtful debts | ($3,022,000) | ($5,685,000) |
Note_6_Other_Receivables_Net_D
Note 6 - Other Receivables, Net (Details) | 12 Months Ended | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
USD ($) | USD ($) | CNY | Internet Advertising And TV Advertising Contractual Deposit [Member] | Internet Advertising And TV Advertising Contractual Deposit [Member] | |
USD ($) | USD ($) | ||||
Note 6 - Other Receivables, Net (Details) [Line Items] | |||||
Loans and Leases Receivable, Net Amount | $4,100,000 | 25,000,000 | |||
Proceeds from Refunds from Suppliers | 200,000 | ||||
Allowance for Doubtful Accounts Receivable | 856,000 | 968,000 | |||
Provision for Doubtful Accounts | -861,000 | 2,702,000 | 163,000 | 793,000 | |
Modification of Overdue Deposits and Related Allowances Due to Disposal of VIE | ($270,000) |
Note_6_Other_Receivables_Net_D1
Note 6 - Other Receivables, Net (Details) - Other Receivables, Net (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Note 6 - Other Receivables, Net (Details) - Other Receivables, Net [Line Items] | ||
Allowance for doubtful debts | ($856) | ($968) |
Other receivables, net | 8,392 | 4,299 |
Short-term loan to unrelated entities | 790 | |
Term deposit interest receivable | 56 | 57 |
Short-term Loan Made for Marketing Campaign [Member] | ||
Note 6 - Other Receivables, Net (Details) - Other Receivables, Net [Line Items] | ||
Other receivables, gross | 65 | 1,636 |
Disposal of Fixed Assets [Member] | ||
Note 6 - Other Receivables, Net (Details) - Other Receivables, Net [Line Items] | ||
Other receivables, gross | 98 | |
Disposal of Subsidiaries [Member] | ||
Note 6 - Other Receivables, Net (Details) - Other Receivables, Net [Line Items] | ||
Other receivables, gross | 1,611 | |
Staff Advances [Member] | ||
Note 6 - Other Receivables, Net (Details) - Other Receivables, Net [Line Items] | ||
Other receivables, gross | 73 | 107 |
TV Advertisement Deposit and Prepayment [Member] | ||
Note 6 - Other Receivables, Net (Details) - Other Receivables, Net [Line Items] | ||
Other receivables, gross | 8,034 | |
Overdue Deposits [Member] | ||
Note 6 - Other Receivables, Net (Details) - Other Receivables, Net [Line Items] | ||
Other receivables, gross | $1,020 | $968 |
Note_7_Prepayments_and_Deposit2
Note 7 - Prepayments and Deposit to Suppliers (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Note 7 - Prepayments and Deposit to Suppliers (Details) [Line Items] | ||
Prepayment And Deposit To Suppliers | $8,092,000 | $14,692,000 |
Number of Largest Internet Resources Suppliers | 2 | |
Two Largest Internet Resources Suppliers [Member] | ||
Note 7 - Prepayments and Deposit to Suppliers (Details) [Line Items] | ||
Prepayment And Deposit To Suppliers | 3,100,000 | |
Purchasing TV Time Slots [Member] | ||
Note 7 - Prepayments and Deposit to Suppliers (Details) [Line Items] | ||
Prepayment And Deposit To Suppliers | 2,000,000 | |
Prepayment and Deposit to Suppliers Transferred | 8,000,000 | |
Internet Resources Suppliers Prepayment [Member] | ||
Note 7 - Prepayments and Deposit to Suppliers (Details) [Line Items] | ||
Prepayment And Deposit To Suppliers | $2,500,000 | |
Number of Years TV Station Partnered with Company | 5 years |
Note_7_Prepayments_and_Deposit3
Note 7 - Prepayments and Deposit to Suppliers (Details) - Prepayments and Deposit to Suppliers (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Note 7 - Prepayments and Deposit to Suppliers (Details) - Prepayments and Deposit to Suppliers [Line Items] | ||
Prepayments and deposit to suppliers | $8,092 | $14,692 |
Deposits To TV Ad And Internet Ad Resources Providers [Member] | ||
Note 7 - Prepayments and Deposit to Suppliers (Details) - Prepayments and Deposit to Suppliers [Line Items] | ||
Prepayments and deposit to suppliers | 3,575 | 8,907 |
Prepayment to TV Ad and Internet Ad Resources Providers [Member] | ||
Note 7 - Prepayments and Deposit to Suppliers (Details) - Prepayments and Deposit to Suppliers [Line Items] | ||
Prepayments and deposit to suppliers | 4,451 | 5,292 |
Other Deposits and Prepayments [Member] | ||
Note 7 - Prepayments and Deposit to Suppliers (Details) - Prepayments and Deposit to Suppliers [Line Items] | ||
Prepayments and deposit to suppliers | $66 | $493 |
Note_8_Due_from_Related_Partie2
Note 8 - Due from Related Parties (Details) - Due from Related Parties (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Related Party Transaction [Line Items] | ||
Due from related parties, current | $51 | $502 |
Beijing Fengshangyinli Technology [Member] | ||
Related Party Transaction [Line Items] | ||
Due from related parties, current | 36 | |
Beijing Saimeiwei Food Equipment Technology [Member] | ||
Related Party Transaction [Line Items] | ||
Due from related parties, current | 51 | 295 |
Beijing Telijie Century Environmental Technology [Member] | ||
Related Party Transaction [Line Items] | ||
Due from related parties, current | $171 |
Note_9_Longterm_Investments_De
Note 9 - Long-term Investments (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Note 9 - Long-term Investments (Details) [Line Items] | ||
Income (Loss) from Equity Method Investments | $47,000 | ($183,000) |
Cost Method Investments | 18,000 | |
Cost Method Investment, Ownership Percentage | 10.00% | |
Shenzhen Mingshan [Member] | ||
Note 9 - Long-term Investments (Details) [Line Items] | ||
Equity Method Investment, Ownership Percentage | 23.18% | 25.50% |
Income (Loss) from Equity Method Investments | -4,000 | -40,000 |
Zhao Shang Ke Hubei [Member] | ||
Note 9 - Long-term Investments (Details) [Line Items] | ||
Equity Method Investment, Ownership Percentage | 25.50% | |
Income (Loss) from Equity Method Investments | 51,000 | -143,000 |
Beijing Saturday [Member] | ||
Note 9 - Long-term Investments (Details) [Line Items] | ||
Cost Method Investments | $18,000 | |
Cost Method Investment, Ownership Percentage | 10.00% |
Note_9_Longterm_Investments_De1
Note 9 - Long-term Investments (Details) - Summary of Investment in and Advance to Equity Investment Affiliates (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Equity method investments: | |||
Investment in equity method investees | $806 | $760 | |
Advance to equity method investees | 85 | 85 | |
891 | 845 | 959 | |
Cost method investments: | |||
Investment in cost method investees | 18 | ||
Total long-term investments | $909 | $845 |
Note_9_Longterm_Investments_De2
Note 9 - Long-term Investments (Details) - Movement of Investment in and Advance to Equity Investment Affiliates (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Equity Method Investments [Line Items] | ||
Balance | $845,000 | $959,000 |
Share of (loss)/gain in equity investment affiliates | 47,000 | -183,000 |
Advance to equity method investees | 41,000 | |
Exchange translation adjustment | -1,000 | 28,000 |
Balance | 891,000 | 845,000 |
Shenzhen Mingshan [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Balance | 466,000 | 492,000 |
Share of (loss)/gain in equity investment affiliates | -4,000 | -40,000 |
Exchange translation adjustment | -1,000 | 14,000 |
Balance | 461,000 | 466,000 |
Zhao Shang Ke Hubei [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Balance | 379,000 | 467,000 |
Share of (loss)/gain in equity investment affiliates | 51,000 | -143,000 |
Advance to equity method investees | 41,000 | |
Exchange translation adjustment | 14,000 | |
Balance | $430,000 | $379,000 |
Note_10_Property_and_Equipment2
Note 10 - Property and Equipment, Net (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $385,000 | $561,000 |
Note_10_Property_and_Equipment3
Note 10 - Property and Equipment, Net (Details) - Property and Equipment, Net (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Note 10 - Property and Equipment, Net (Details) - Property and Equipment, Net [Line Items] | ||
Property and equipment, gross | $3,729 | $3,543 |
Less: accumulated depreciation | -2,786 | -2,486 |
Property and equipment, net | 943 | 1,057 |
Leaseholds and Leasehold Improvements [Member] | ||
Note 10 - Property and Equipment, Net (Details) - Property and Equipment, Net [Line Items] | ||
Property and equipment, gross | 180 | |
Vehicles [Member] | ||
Note 10 - Property and Equipment, Net (Details) - Property and Equipment, Net [Line Items] | ||
Property and equipment, gross | 890 | 865 |
Office Equipment [Member] | ||
Note 10 - Property and Equipment, Net (Details) - Property and Equipment, Net [Line Items] | ||
Property and equipment, gross | 1,415 | 1,433 |
Electronic Devices [Member] | ||
Note 10 - Property and Equipment, Net (Details) - Property and Equipment, Net [Line Items] | ||
Property and equipment, gross | $1,244 | $1,245 |
Note_11_Intangible_Assets_Net_1
Note 11 - Intangible Assets, Net (Details) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | |
USD ($) | CNY | USD ($) | USD ($) | Trade Names [Member] | Customer Relationships [Member] | Noncompete Agreements [Member] | |
USD ($) | USD ($) | USD ($) | |||||
Note 11 - Intangible Assets, Net (Details) [Line Items] | |||||||
Amortization of Intangible Assets | $1,052,000 | $1,056,000 | |||||
Software Purchase Agreement | 5,000,000 | 32,290,000 | |||||
Gain (Loss) on Disposition of Intangible Assets | -315,000 | -320,000 | |||||
Impairment of Intangible Assets, Finite-lived | -993,000 | 510,000 | |||||
Impairment of Intangible Assets (Excluding Goodwill) | 0 | 479,000 | |||||
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | 1,297,000 | 1,297,000 | |||||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 1,291,000 | 1,291,000 | |||||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 789,000 | 789,000 | |||||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 737,000 | 737,000 | |||||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $679,000 | $679,000 |
Note_11_Intangible_Assets_Net_2
Note 11 - Intangible Assets, Net (Details) - Intangible Assets, Net (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Intangible assets subject to amortization: | ||
Finite-lived intangible assets | $13,935,000 | $8,665,000 |
Less: accumulated amortization | -3,704,000 | -2,650,000 |
Less: accumulated impairment losses | -993,000 | |
Intangible assets, net | 9,238,000 | 6,015,000 |
Domain Name [Member] | ||
Intangible assets not subject to amortization: | ||
Domain name | 1,579,000 | 1,580,000 |
Contract Backlog [Member] | ||
Intangible assets subject to amortization: | ||
Finite-lived intangible assets | 202,000 | 203,000 |
Customer Relationships [Member] | ||
Intangible assets subject to amortization: | ||
Finite-lived intangible assets | 3,545,000 | 3,548,000 |
Less: accumulated impairment losses | 510,000 | |
Noncompete Agreements [Member] | ||
Intangible assets subject to amortization: | ||
Finite-lived intangible assets | 1,402,000 | 1,403,000 |
Software Technologies [Member] | ||
Intangible assets subject to amortization: | ||
Finite-lived intangible assets | 335,000 | 335,000 |
SMEs Operation Management Applications [Member] | ||
Intangible assets subject to amortization: | ||
Finite-lived intangible assets | 5,277,000 | |
Cloud-computing Based Software Platforms [Member] | ||
Intangible assets subject to amortization: | ||
Finite-lived intangible assets | 1,517,000 | 1,518,000 |
Other Computer Software [Member] | ||
Intangible assets subject to amortization: | ||
Finite-lived intangible assets | $78,000 | $78,000 |
Note_12_Deposit_and_Prepayment1
Note 12 - Deposit and Prepayment for Purchasing of Software Technology (Details) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 |
USD ($) | CNY | Computer Software, Intangible Asset [Member] | Computer Software, Intangible Asset [Member] | |
USD ($) | CNY | |||
Note 12 - Deposit and Prepayment for Purchasing of Software Technology (Details) [Line Items] | ||||
Deposits Assets, Noncurrent | $2.45 | 15 | ||
Software Technology Contract | 2 | 13 | ||
Payments for Software | $0.85 | 5.2 |
Note_13_Goodwill_Details
Note 13 - Goodwill (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure Text Block Supplement [Abstract] | ||
Goodwill, Impairment Loss | $4,650,000 | $0 |
Note_13_Goodwill_Details_Goodw
Note 13 - Goodwill (Details) - Goodwill (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2011 |
US$(’000) | |||
Balance | $11,450 | $11,083 | |
Goodwill impairment losses | -4,668 | ||
Exchange translation adjustment | -10 | 367 | |
Balance | $6,772 | $11,450 | $11,083 |
Note_14_Shortterm_Bank_Loan_De
Note 14 - Short-term Bank Loan (Details) | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | USD ($) | CNY | USD ($) | CNY | Peoples Republic of China [Member] | ||
Note 14 - Short-term Bank Loan (Details) [Line Items] | |||||||
Short-term Bank Loans and Notes Payable | $817 | [1] | 5,000 | $818 | [1] | 5,000 | |
Debt Instrument, Basis Spread on Variable Rate | 40.00% | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.40% | 8.40% | |||||
[1] | All of the VIEs' assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEsdo not represent additional claims on the Company's general assets (Note 2). |
Note_15_Accrued_Payroll_and_Ot2
Note 15 - Accrued Payroll and Other Accruals (Details) - Accrued Payroll and Other Accruals (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Note 15 - Accrued Payroll and Other Accruals (Details) - Accrued Payroll and Other Accruals [Line Items] | ||||
Accrued payroll and other accruals | $585 | [1] | $676 | [1] |
Accrued Payroll and Staff Welfare [Member] | ||||
Note 15 - Accrued Payroll and Other Accruals (Details) - Accrued Payroll and Other Accruals [Line Items] | ||||
Accrued payroll and other accruals | 388 | 382 | ||
Accrued Operating Expenses [Member] | ||||
Note 15 - Accrued Payroll and Other Accruals (Details) - Accrued Payroll and Other Accruals [Line Items] | ||||
Accrued payroll and other accruals | $197 | $294 | ||
[1] | All of the VIEs' assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEsdo not represent additional claims on the Company's general assets (Note 2). |
Note_17_Payable_for_Purchasing1
Note 17 - Payable for Purchasing of Software Technology (Details) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Apr. 15, 2015 | Apr. 15, 2015 | ||
USD ($) | USD ($) | Payable for Purchasing Software [Member] | Payable for Purchasing Software [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |||
USD ($) | CNY | Computer Software, Intangible Asset [Member] | Computer Software, Intangible Asset [Member] | |||||
USD ($) | CNY | |||||||
Note 17 - Payable for Purchasing of Software Technology (Details) [Line Items] | ||||||||
Accounts Payable, Current | $782,000 | [1] | $421,000 | [1] | $2,800,000 | 17,290,000 | ||
Payments to Acquire Intangible Assets | $1,100,000 | 7,000,000 | ||||||
[1] | All of the VIEs' assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEsdo not represent additional claims on the Company's general assets (Note 2). |
Note_18_Taxation_Details
Note 18 - Taxation (Details) (USD $) | 12 Months Ended | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2012 | |
Note 18 - Taxation (Details) [Line Items] | ||||
Federal Income Tax Expense (Benefit), Continuing Operations (in Dollars) | $0 | $0 | ||
Profits, Assessable (in Dollars) | 0 | 0 | ||
Income Tax Withholding Rate Pursuant to EIT Law | 10.00% | |||
Preferential Withholding Tax Rate | 5.00% | |||
Deferred Tax Liabilities Reversal (in Dollars) | -474,000 | -306,000 | ||
Standard Rate [Member] | PRC [Member] | Business Opportunity Online Hubei [Member] | ||||
Note 18 - Taxation (Details) [Line Items] | ||||
Enterprise Income Tax Rate in PRC | 25.00% | |||
Preferential EIT Rate [Member] | PRC [Member] | Business Opportunity Online Hubei [Member] | ||||
Note 18 - Taxation (Details) [Line Items] | ||||
Enterprise Income Tax Rate in PRC | 12.50% | |||
Tax Treaty Agreement [Member] | ||||
Note 18 - Taxation (Details) [Line Items] | ||||
Income Tax Withholding Rate Pursuant to EIT Law | 5.00% | |||
British Virgin Islands [Member] | ||||
Note 18 - Taxation (Details) [Line Items] | ||||
Other Tax Expense (Benefit) (in Dollars) | 0 | |||
Hong Kong [Member] | ||||
Note 18 - Taxation (Details) [Line Items] | ||||
Federal Income Tax Expense (Benefit), Continuing Operations (in Dollars) | 0 | 0 | ||
Profits, Assessable (in Dollars) | 0 | 0 | ||
Other Tax Expense (Benefit) (in Dollars) | 0 | |||
PRC [Member] | After 2015 [Member] | Business Opportunity Online Hubei [Member] | ||||
Note 18 - Taxation (Details) [Line Items] | ||||
Enterprise Income Tax Rate in PRC | 25.00% | |||
PRC [Member] | Scenario, After Deducting the VAT Paid for the Services from Suppliers [Member] | ||||
Note 18 - Taxation (Details) [Line Items] | ||||
PRC Value Added Tax Rate For Modern Service Provided | 6.00% | |||
PRC [Member] | Scenario, Without Any Deduction of VAT Paid for the Services from Suppliers [Member] | ||||
Note 18 - Taxation (Details) [Line Items] | ||||
PRC Value Added Tax Rate For Modern Service Provided | 3.00% | |||
PRC [Member] | Provision of Modern Services Small Scale Tax Payer [Member] | ||||
Note 18 - Taxation (Details) [Line Items] | ||||
PRC Value Added Tax Rate For Modern Service Provided Small Scale Tax Payer | 3.00% | |||
PRC [Member] | Maximum [Member] | Business Opportunity Online [Member] | ||||
Note 18 - Taxation (Details) [Line Items] | ||||
Enterprise Income Tax Rate in PRC | 25.00% | |||
PRC [Member] | Maximum [Member] | ||||
Note 18 - Taxation (Details) [Line Items] | ||||
Enterprise Income Tax Rate in PRC | 25.00% | |||
PRC [Member] | Minimum [Member] | Business Opportunity Online [Member] | ||||
Note 18 - Taxation (Details) [Line Items] | ||||
Enterprise Income Tax Rate in PRC | 15.00% | |||
PRC [Member] | Minimum [Member] | ||||
Note 18 - Taxation (Details) [Line Items] | ||||
Enterprise Income Tax Rate in PRC | 12.50% | |||
PRC [Member] | Rise King WFOE [Member] | ||||
Note 18 - Taxation (Details) [Line Items] | ||||
Reduction in Applicable EIT Rate | 50.00% | |||
Applicable Income Tax Rate | 25.00% | 12.50% | 25.00% | |
Preferential Withholding Tax Rate | 5.00% | |||
PRC [Member] | Business Opportunity Online [Member] | ||||
Note 18 - Taxation (Details) [Line Items] | ||||
Enterprise Income Tax Rate in PRC | 15.00% | |||
Applicable Income Tax Rate | 15.00% | 15.00% | ||
PRC [Member] | Business Opportunity Online Hubei [Member] | ||||
Note 18 - Taxation (Details) [Line Items] | ||||
Reduction in Applicable EIT Rate | 50.00% | |||
Applicable Income Tax Rate | 12.50% | 12.50% | ||
PRC [Member] | ||||
Note 18 - Taxation (Details) [Line Items] | ||||
Enterprise Income Tax Rate in PRC | 25.00% | |||
Number of Years Entitled to EIT Reduction | 3 | |||
PRC Value Added Tax Rate For Modern Service Provided | 6.00% | |||
Amortization of Acquired Intangible Assets [Member] | ||||
Note 18 - Taxation (Details) [Line Items] | ||||
Deferred Tax Liabilities Reversal (in Dollars) | 226,000 | 226,000 | ||
Intangible Assets Impariment Loss [Member] | ||||
Note 18 - Taxation (Details) [Line Items] | ||||
Deferred Tax Liabilities Reversal (in Dollars) | 248,000 | |||
Disposal of Trade Name [Member] | ||||
Note 18 - Taxation (Details) [Line Items] | ||||
Deferred Tax Liabilities Reversal (in Dollars) | 80,000 | |||
Maximum [Member] | ||||
Note 18 - Taxation (Details) [Line Items] | ||||
PRC Value Added Tax Surcharge Rate | 14.00% | |||
Minimum [Member] | ||||
Note 18 - Taxation (Details) [Line Items] | ||||
PRC Value Added Tax Surcharge Rate | 12.00% | |||
Parent Company [Member] | ||||
Note 18 - Taxation (Details) [Line Items] | ||||
Operating Loss Carryforwards (in Dollars) | 12,161,000 | 6,840,000 | ||
PRC Subsidiary and VIEs [Member] | ||||
Note 18 - Taxation (Details) [Line Items] | ||||
Operating Loss Carryforwards (in Dollars) | 12,401,000 | 7,253,000 | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount (in Dollars) | $590,000 | $585,000 |
Note_18_Taxation_Details_Taxes
Note 18 - Taxation (Details) - Taxes Payable (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Note 18 - Taxation (Details) - Taxes Payable [Line Items] | ||||
Taxes payable | $3,332 | [1] | $7,029 | [1] |
Turnover Tax and Surcharge Payable [Member] | ||||
Note 18 - Taxation (Details) - Taxes Payable [Line Items] | ||||
Taxes payable | 1,173 | 2,343 | ||
Enterprise Income Tax Payable [Member] | ||||
Note 18 - Taxation (Details) - Taxes Payable [Line Items] | ||||
Taxes payable | $2,159 | $4,686 | ||
[1] | All of the VIEs' assets can be used to settle obligations of their primary beneficiary. Liabilities recognized as a result of consolidating these VIEsdo not represent additional claims on the Company's general assets (Note 2). |
Note_18_Taxation_Details_Recon
Note 18 - Taxation (Details) - Reconciliation of the Provison for Income Taxes (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Reconciliation of the Provison for Income Taxes [Abstract] | ||
Pre-tax (loss)/income | ($14,592) | $716 |
U.S. federal rate | 35.00% | 35.00% |
Income tax benefit/(expense) computed at U.S. federal rate | 5,107 | -251 |
Rate differential for domestic earnings | -927 | 119 |
Preferential tax treatments and tax holiday effects | -176 | 754 |
Change in tax rate for loss recognized as deferred tax assets | 144 | |
Valuation allowance on deferred tax assets | -2,281 | -1,426 |
Goodwill impairment loss | -1,162 | |
Loss not recognized as deferred tax assets | -2 | |
Other non-taxable income/(non-deductible expenses) | 92 | -154 |
Effective income tax benefit/(expense) | $653 | ($816) |
Note_18_Taxation_Details_Incom
Note 18 - Taxation (Details) - Income Tax Expense (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income Tax Expense [Abstract] | ||
Current-PRC | ($197) | ($1,302) |
Deferred-PRC | 850 | 486 |
$653 | ($816) |
Note_18_Taxation_Details_Defer
Note 18 - Taxation (Details) - Deferred Tax Liabilities (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2011 |
US$(’000) | |||
Balance | $1,439 | $1,689 | |
Reversal during the period | -474 | -306 | |
Exchange translation adjustment | -1 | 56 | |
Balance | $964 | $1,439 | $1,689 |
Note_18_Taxation_Details_Defer1
Note 18 - Taxation (Details) - Deferred Tax Assets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Tax Assets [Abstract] | ||
Tax effect of net operating losses carried forward | $6,655 | $3,899 |
Bad debts provision | 943 | 1,594 |
Valuation allowance | -6,385 | -4,581 |
$1,213 | $912 |
Note_18_Taxation_Details_Defer2
Note 18 - Taxation (Details) - Deferred Tax Assets - Reclassification (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Tax Assets - Reclassification [Abstract] | ||
Deferred tax assets reclassified as current asset | $176 | $153 |
Deferred tax assets reclassified as non-current asset | 1,037 | 759 |
$1,213 | $912 |
Note_20_Warrants_Details_Warra
Note 20 - Warrants (Details) - Warrants Issued and Outstanding (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 |
Warrants Outstanding [Member] | |||
Class of Warrant or Right [Line Items] | |||
Warrants outstanding number of underlying shares | 2,363,456 | 2,363,456 | -2,363,456 |
Warrants outstanding weighted average exercise price (in dollars per share) (in Dollars per share) | $3.52 | $3.52 | |
Warrants outstanding average remaining contractual life (years) | 229 days | 1 year 229 days | |
Warrants outstanding number of underlying shares | 2,363,456 | 2,363,456 | -2,363,456 |
Warrants Exercisable [Member] | |||
Class of Warrant or Right [Line Items] | |||
Warrants outstanding number of underlying shares | 2,363,456 | 2,363,456 | -2,363,456 |
Warrants outstanding weighted average exercise price (in dollars per share) (in Dollars per share) | $3.52 | $3.52 | |
Warrants outstanding average remaining contractual life (years) | 229 days | 1 year 229 days | |
Warrants outstanding number of underlying shares | 2,363,456 | 2,363,456 | -2,363,456 |
Note_21_Restricted_Net_Assets_
Note 21 - Restricted Net Assets (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Note 21 - Restricted Net Assets (Details) [Line Items] | ||
Amount of Restricted Net Assets for Consolidated and Unconsolidated Subsidiaries (in Dollars) | 7,300,000 | |
Withholding Tax Rate Pursuant To EIT Law | 10.00% | |
Preferential Withholding Tax Rate | 5.00% | |
Retained Earnings (Accumulated Deficit) (in Dollars) | 5,222,000 | 18,965,000 |
Statutory Accounting Practices, Retained Earnings Not Available for Dividends (in Dollars) | 2,607,000 | 2,602,000 |
WFOE [Member] | ||
Note 21 - Restricted Net Assets (Details) [Line Items] | ||
Minimum Percentage of Annual After-tax Profit for General Reserve | 10.00% | |
Minimum Required Reserve as Percent of Registered Capital | 50.00% | |
Domestic Enterprise [Member] | ||
Note 21 - Restricted Net Assets (Details) [Line Items] | ||
Minimum Percentage of Annual After-tax Profit for General Reserve | 10.00% | |
Minimum Required Reserve as Percent of Registered Capital | 50.00% | |
PRC Subsidiary and VIEs [Member] | ||
Note 21 - Restricted Net Assets (Details) [Line Items] | ||
Retained Earnings (Accumulated Deficit) (in Dollars) | 30,800,000 | 39,300,000 |
Statutory Accounting Practices, Retained Earnings Not Available for Dividends (in Dollars) | 2,800,000 |
Note_22_Related_Party_Transact2
Note 22 - Related Party Transactions (Details) - Revenue from Related Parties (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Related Party Transaction [Line Items] | ||
Revenue from Related Parties | $353 | $361 |
Beijing Saturday Education Technology Co., Ltd. [Member] | ||
Related Party Transaction [Line Items] | ||
Revenue from Related Parties | 91 | |
Beijing Saimeiwei Food Equipment Technology [Member] | ||
Related Party Transaction [Line Items] | ||
Revenue from Related Parties | 260 | 239 |
Beijing Fengshangyinli Technology [Member] | ||
Related Party Transaction [Line Items] | ||
Revenue from Related Parties | 2 | 7 |
Beijing Telijie Century Environmental Technology [Member] | ||
Related Party Transaction [Line Items] | ||
Revenue from Related Parties | $115 |
Note_23_Employee_Defined_Contr1
Note 23 - Employee Defined Contribution Plan (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ||
Defined Contribution Plan, Cost Recognized | $574,000 | $477,000 |
Note_24_Concentration_of_Risk_
Note 24 - Concentration of Risk (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Supplier 1 [Member] | Cost of Sales, Total [Member] | Supplier Concentration Risk [Member] | ||
Note 24 - Concentration of Risk (Details) [Line Items] | ||
Concentration Risk, Percentage | 71.00% | 35.00% |
Supplier 2 [Member] | Cost of Sales, Total [Member] | Supplier Concentration Risk [Member] | ||
Note 24 - Concentration of Risk (Details) [Line Items] | ||
Concentration Risk, Percentage | 19.00% | 20.00% |
Supplier 3 [Member] | Cost of Sales, Total [Member] | Supplier Concentration Risk [Member] | ||
Note 24 - Concentration of Risk (Details) [Line Items] | ||
Concentration Risk, Percentage | 18.00% | |
Customer 1 [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | ||
Note 24 - Concentration of Risk (Details) [Line Items] | ||
Concentration Risk, Percentage | 27.00% | |
Customer 1 [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||
Note 24 - Concentration of Risk (Details) [Line Items] | ||
Concentration Risk, Percentage | 19.00% | 13.00% |
Customer 2 [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | ||
Note 24 - Concentration of Risk (Details) [Line Items] | ||
Concentration Risk, Percentage | 17.00% | |
Customer 2 [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||
Note 24 - Concentration of Risk (Details) [Line Items] | ||
Concentration Risk, Percentage | 18.00% | 12.00% |
Customer 3 [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||
Note 24 - Concentration of Risk (Details) [Line Items] | ||
Concentration Risk, Percentage | 10.00% | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | ||
Note 24 - Concentration of Risk (Details) [Line Items] | ||
Number of Major Customers | 2 | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||
Note 24 - Concentration of Risk (Details) [Line Items] | ||
Number of Major Customers | 2 | 3 |
Cost of Sales, Total [Member] | Supplier Concentration Risk [Member] | ||
Note 24 - Concentration of Risk (Details) [Line Items] | ||
Number of Major Suppliers | 2 | 3 |
Note_25_Commitments_and_Contin2
Note 25 - Commitments and Contingencies (Details) | 1 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | 15 Months Ended | |||||||||||
Nov. 18, 2014 | Nov. 18, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Apr. 15, 2015 | Apr. 15, 2015 | Feb. 28, 2015 | Feb. 28, 2015 | Oct. 19, 2013 | |
USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | USD ($) | CNY | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Xuanfu Liu [Member] | |
USD ($) | CNY | USD ($) | CNY | |||||||||||||
Note 25 - Commitments and Contingencies (Details) [Line Items] | ||||||||||||||||
Operating Leases, Rent Expense | $500,000 | $512,000 | ||||||||||||||
Purchase Obligation | 5,000,000 | 32,290,000 | 3,330,000 | 20,400,000 | ||||||||||||
Contractual Obligation Amount Paid | 850,000 | 5,200,000 | 2,500,000 | 15,000,000 | 3,600,000 | 22,000,000 | ||||||||||
Contractual Obligation | 2,100,000 | 13,000,000 | ||||||||||||||
Minority Interest Ownership Percentage | 34.00% | |||||||||||||||
Loss Contingency, Damages Sought, Value | 92,100 | 560,000 | ||||||||||||||
Litigation Settlement, Amount | $3,300 | 20,000 |
Note_25_Commitments_and_Contin3
Note 25 - Commitments and Contingencies (Details) - The Company’s Contractual Obligations | Oct. 31, 2013 | Oct. 31, 2013 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | USD ($) | CNY | Office Rental [Member] |
USD ($) | |||
Note 25 - Commitments and Contingencies (Details) - The Company’s Contractual Obligations [Line Items] | |||
-2015 | $381 | ||
-2016 | 135 | ||
Total | $2,100 | 13,000 | $516 |
Note_26_Segment_Reporting_Deta
Note 26 - Segment Reporting (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting [Abstract] | ||
Allocated Share-based Compensation Expense | $4,840,000 | $125,000 |
Note_26_Segment_Reporting_Deta1
Note 26 - Segment Reporting (Details) - Summary of Segment Reporting Information (Unaudited) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | |||
Segment Reporting Information [Line Items] | ||||
Revenue | $38,897,000 | $30,293,000 | ||
Cost of sales | 32,275,000 | 16,563,000 | ||
Total operating expenses | 21,256,000 | 13,118,000 | ||
Gain on disposal of VIE | 266,000 | -543,000 | ||
Loss on disposal of intangible asset included in total operating expenses | -315,000 | |||
Goodwill impairment loss included in total operating expenses | 4,650,000 | 0 | ||
Intangible assets impairment loss included in total operating expenses | 989,000 | 0 | ||
Depreciation and amortization expense included in total operating expenses | 1,437,000 | 1,617,000 | ||
Operating income (loss) | -14,634,000 | 612,000 | ||
Share of income/(losses) in equity investment affiliates | 47,000 | -183,000 | ||
Net income (loss) | -13,892,000 | -283,000 | ||
Total assets | 47,430,000 | 56,834,000 | ||
Internet Ad [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 31,261,000 | 20,672,000 | ||
Cost of sales | 25,645,000 | 8,643,000 | ||
Total operating expenses | 12,575,000 | 8,452,000 | ||
Gain on disposal of VIE | -266,000 | |||
Goodwill impairment loss included in total operating expenses | 3,750,000 | |||
Intangible assets impairment loss included in total operating expenses | 442,000 | |||
Depreciation and amortization expense included in total operating expenses | 1,005,000 | 1,024,000 | ||
Operating income (loss) | -6,959,000 | 3,577,000 | ||
Expenditure for long-term assets | 1,113,000 | 2,486,000 | ||
Net income (loss) | -6,380,000 | 2,638,000 | ||
Total assets | 43,851,000 | 51,324,000 | ||
TV Ad [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 6,429,000 | 6,801,000 | ||
Cost of sales | 6,014,000 | 6,463,000 | ||
Total operating expenses | 450,000 | 1,216,000 | ||
Depreciation and amortization expense included in total operating expenses | 30,000 | 42,000 | ||
Operating income (loss) | -35,000 | -878,000 | ||
Net income (loss) | -92,000 | -881,000 | ||
Total assets | 13,228,000 | 17,022,000 | ||
Bank Kiosk [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 276,000 | 251,000 | ||
Cost of sales | 13,000 | 1,000 | ||
Total operating expenses | 124,000 | 192,000 | ||
Depreciation and amortization expense included in total operating expenses | 124,000 | 192,000 | ||
Operating income (loss) | 139,000 | 58,000 | ||
Net income (loss) | 139,000 | 57,000 | ||
Total assets | 296,000 | 420,000 | ||
Brand Management and Sales Channel Building [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 931,000 | 2,569,000 | ||
Cost of sales | 603,000 | 1,456,000 | ||
Total operating expenses | 1,974,000 | 1,936,000 | ||
Gain on disposal of VIE | 543,000 | |||
Loss on disposal of intangible asset included in total operating expenses | 315,000 | |||
Goodwill impairment loss included in total operating expenses | 900,000 | |||
Intangible assets impairment loss included in total operating expenses | 547,000 | |||
Depreciation and amortization expense included in total operating expenses | 201,000 | 217,000 | ||
Operating income (loss) | -1,646,000 | -823,000 | ||
Share of income/(losses) in equity investment affiliates | 51,000 | -143,000 | ||
Expenditure for long-term assets | 2,000 | 2,000 | ||
Net income (loss) | -1,423,000 | -899,000 | ||
Total assets | 2,989,000 | 4,524,000 | ||
Others [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total operating expenses | 6,133,000 | [1] | 1,322,000 | [2] |
Depreciation and amortization expense included in total operating expenses | 77,000 | 142,000 | ||
Operating income (loss) | -6,133,000 | -1,322,000 | ||
Share of income/(losses) in equity investment affiliates | -4,000 | -40,000 | ||
Expenditure for long-term assets | 12,000 | 11,000 | ||
Net income (loss) | -6,136,000 | -1,198,000 | ||
Total assets | 6,558,000 | 7,065,000 | ||
Inter Segment and Reconciling Item [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | -19,492,000 | -23,521,000 | ||
Report Total [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 38,897,000 | 30,293,000 | ||
Cost of sales | 32,275,000 | 16,563,000 | ||
Total operating expenses | 21,256,000 | 13,118,000 | ||
Gain on disposal of VIE | -266,000 | 543,000 | ||
Loss on disposal of intangible asset included in total operating expenses | 315,000 | |||
Goodwill impairment loss included in total operating expenses | 4,650,000 | |||
Intangible assets impairment loss included in total operating expenses | 989,000 | |||
Depreciation and amortization expense included in total operating expenses | 1,437,000 | 1,617,000 | ||
Operating income (loss) | -14,634,000 | 612,000 | ||
Share of income/(losses) in equity investment affiliates | 47,000 | -183,000 | ||
Expenditure for long-term assets | 1,127,000 | 2,499,000 | ||
Net income (loss) | -13,892,000 | -283,000 | ||
Total assets | $47,430,000 | $56,834,000 | ||
[1] | Including approximately US$4,840,000 share-based compensation expenses. | |||
[2] | Including approximately US$125,000 share-based compensation expenses. |
Note_27_Loss_Per_Share_Details
Note 27 - Loss Per Share (Details) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Note 27 - Loss Per Share (Details) [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,666,667 | ||
Warrant [Member] | |||
Note 27 - Loss Per Share (Details) [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,172,015 | 2,363,456 | |
Equity Option [Member] | |||
Note 27 - Loss Per Share (Details) [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 928,224 | 939,440 |
Note_27_Loss_Per_Share_Details1
Note 27 - Loss Per Share (Details) - Basic and Diluted Earnings Per Share (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Basic and Diluted Earnings Per Share [Abstract] | ||
Net loss attributable to ChinaNet Online Holdings, Inc. (numerator for basic and diluted earnings per share) (in Dollars) | ($13,738) | ($234) |
Weighted average number of common shares outstanding – Basic | 22,414,523 | 22,284,485 |
Weighted average number of common shares outstanding – Diluted | 22,414,523 | 22,284,485 |
Loss per share-Basic and diluted (in Dollars per share) | ($0.61) | ($0.01) |
Note_28_Sharebased_Compensatio2
Note 28 - Share-based Compensation Expenses (Details) (USD $) | 1 Months Ended | 12 Months Ended | 0 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 30, 2014 | |
Note 28 - Share-based Compensation Expenses (Details) [Line Items] | ||||
Share Price (in Dollars per share) | $0.91 | $0.91 | ||
Allocated Share-based Compensation Expense (in Dollars) | $4,840,000 | $125,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 200,000 | |||
Number Of Independent Directors | 3 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Multiple | 2.5 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 5 years | |||
Stock Issued During Period, Shares, Share-based Compensation, Forfeited | 155,190 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | 190,500 | -54,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars) | 3,237,000 | 3,237,000 | ||
Restricted Stock [Member] | Vested on August 1, 2014 [Member] | Technical Services Provider [Member] | ||||
Note 28 - Share-based Compensation Expenses (Details) [Line Items] | ||||
Share-based Goods and Nonemployee Services Transaction, Quantity of Securities Issued | 150,000 | |||
Restricted Stock [Member] | Vested on February 1, 2015 [Member] | Technical Services Provider [Member] | ||||
Note 28 - Share-based Compensation Expenses (Details) [Line Items] | ||||
Share-based Goods and Nonemployee Services Transaction, Quantity of Securities Issued | 150,000 | |||
Restricted Stock [Member] | Upon Issuance [Member] | Executive Officer [Member] | ||||
Note 28 - Share-based Compensation Expenses (Details) [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,533,333 | |||
Restricted Stock [Member] | Next Year [Member] | Executive Officer [Member] | ||||
Note 28 - Share-based Compensation Expenses (Details) [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,333,333 | |||
Restricted Stock [Member] | In Two Years [Member] | Executive Officer [Member] | ||||
Note 28 - Share-based Compensation Expenses (Details) [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,333,334 | |||
Restricted Stock [Member] | Management, Employees and Directors [Member] | ||||
Note 28 - Share-based Compensation Expenses (Details) [Line Items] | ||||
Share Price (in Dollars per share) | $1.17 | $1.17 | ||
Allocated Share-based Compensation Expense (in Dollars) | 2,830,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 2,418,780 | |||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share) | $2.50 | |||
Restricted Stock [Member] | Executive Officer [Member] | ||||
Note 28 - Share-based Compensation Expenses (Details) [Line Items] | ||||
Share Price (in Dollars per share) | $1.17 | $1.17 | ||
Allocated Share-based Compensation Expense (in Dollars) | 1,794,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 4,200,000 | |||
Restricted Stock [Member] | Investor Relations Services Provider [Member] | ||||
Note 28 - Share-based Compensation Expenses (Details) [Line Items] | ||||
Share-based Goods and Nonemployee Services Transaction, Quantity of Securities Issued | 40,000 | 40,000 | ||
Share Price (in Dollars per share) | $0.84 | $0.84 | $1.05 | |
Allocated Share-based Compensation Expense (in Dollars) | 33,600 | 42,000 | ||
Restricted Stock [Member] | Technical Services Provider [Member] | ||||
Note 28 - Share-based Compensation Expenses (Details) [Line Items] | ||||
Share-based Goods and Nonemployee Services Transaction, Quantity of Securities Issued | 300,000 | 150,000 | ||
Share Price (in Dollars per share) | $0.67 | $0.67 | $0.55 | |
Allocated Share-based Compensation Expense (in Dollars) | 83,750 | 82,500 | ||
Options Issued to Three Directors [Member] | Director [Member] | ||||
Note 28 - Share-based Compensation Expenses (Details) [Line Items] | ||||
Allocated Share-based Compensation Expense (in Dollars) | $99,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 200,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 5 years | |||
Options Issued to Three Directors [Member] | ||||
Note 28 - Share-based Compensation Expenses (Details) [Line Items] | ||||
Share-based Compensation Arrangements by Share-based Payment Award Options Exercise Price (in Dollars per share) | 1.23 |
Note_28_Sharebased_Compensatio3
Note 28 - Share-based Compensation Expenses (Details) - Fair Value Assumptions of Options Granted (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Note 28 - Share-based Compensation Expenses (Details) - Fair Value Assumptions of Options Granted [Line Items] | |
Applicable stock price | $0.91 |
Exercise multiple | 2.5 |
Tenor (years) | 5 years |
Risk-free interest rate | 1.67% |
Expected volatility | 98.68% |
Value per option | $0.50 |
Employee Stock Option [Member] | |
Note 28 - Share-based Compensation Expenses (Details) - Fair Value Assumptions of Options Granted [Line Items] | |
Exercise price of the option | $1.23 |
Note_28_Sharebased_Compensatio4
Note 28 - Share-based Compensation Expenses (Details) - Options Issued and Outstanding (USD $) | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Options Issued and Outstanding [Abstract] | ||||
Option outstanding, Number of underlying shares | 894,940 | 894,940 | 939,440 | 939,440 |
Option outstanding, Weighted average remaining contractual life (Years) | 6 years 175 days | 7 years 186 days | 8 years 186 days | |
Option outstanding, Weighted average exercise price | $1.21 | $1.21 | $1.42 | $1.42 |
Option exercisable, Number of underlying shares | 894,940 | 894,940 | 939,440 | 939,440 |
Option exercisable, Weighted average remaining contractual life (Years) | 6 years 175 days | 7 years 186 days | 8 years 186 days | |
Option exercisable, Weighted average exercise price | $1.21 | $1.21 | $1.42 | $1.42 |
Option outstanding, Number of underlying shares | 200,000 | |||
Option outstanding, Weighted average remaining contractual life (Years) | 5 years | |||
Option outstanding, Weighted average exercise price | $1.23 | |||
Option exercisable, Number of underlying shares | 200,000 | |||
Option exercisable, Weighted average remaining contractual life (Years) | 5 years | |||
Option exercisable, Weighted average exercise price | $1.23 | |||
Cancelled | -190,500 | |||
Cancelled | $1.20 | |||
Cancelled | -190,500 | |||
Cancelled | $1.20 | |||
Expired | 190,500 | -54,000 | ||
Expired | $5 | |||
Expired | -54,000 | |||
Expired | $5 |
Note_29_Subsequent_Event_Detai
Note 29 - Subsequent Event (Details) | 12 Months Ended | 1 Months Ended | 0 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Jan. 31, 2015 | Apr. 15, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 29, 2015 | Jan. 29, 2015 | Feb. 28, 2015 | Feb. 28, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Feb. 28, 2015 | Feb. 28, 2015 | |
USD ($) | USD ($) | CNY | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |
Subsequent Event [Member] | Subsequent Event [Member] | Scenario, Forecast [Member] | Scenario, Forecast [Member] | Investor Relations Services Provider [Member] | Investor Relations Services Provider [Member] | Technical Services Provider [Member] | Technical Services Provider [Member] | Chuangshi Meiwei [Member] | Chuangshi Meiwei [Member] | TV Ad [Member] | TV Ad [Member] | Internet Ad [Member] | Internet Ad [Member] | USD ($) | CNY | ||||
Investor Relations Services Provider [Member] | Technical Services Provider [Member] | Investor Relations Services Provider [Member] | Investor Relations Services Provider [Member] | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | ||||||
USD ($) | USD ($) | USD ($) | USD ($) | ||||||||||||||||
Note 29 - Subsequent Event (Details) [Line Items] | |||||||||||||||||||
Cost Method Investments | $18,000 | $160,000 | 1,000,000 | ||||||||||||||||
Cost Method Investment, Ownership Percentage | 10.00% | 10.00% | 10.00% | ||||||||||||||||
Share-based Goods and Nonemployee Services Transaction, Quantity of Securities Issued (in Shares) | 50,000 | 150,000 | 40,000 | 40,000 | 300,000 | 150,000 | |||||||||||||
Share Price (in Dollars per share) | $0.91 | $1.20 | $0.67 | $0.84 | $1.05 | $0.67 | $0.55 | ||||||||||||
Allocated Share-based Compensation Expense | 4,840,000 | 125,000 | 100,500 | 60,000 | 60,000 | 33,600 | 42,000 | 83,750 | 82,500 | ||||||||||
Deposits Assets, Current | 330,000 | 2,000,000 | 520,000 | 3,200,000 | |||||||||||||||
Purchase Obligation | $5,000,000 | 32,290,000 | $3,330,000 | 20,400,000 |